CBSE

ADDITIONAL PRACTICE QUESTIONS

Accountancy (055)
Class XII | 2023–24
Maximum marks: 80 Time Allowed: 3 hours

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. Part - A is compulsory for all the candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised
Accounting. Students must attempt only one of the given options as per the subject opted.
5. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
6. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21 ,22 and 33 carries 4 marks each
8. Questions Nos. from 23 to 26 and 34 carries 6 marks each
9. 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. Accounting Standard-26 requires that goodwill is to be recorded in the books of accounts only
when money or money’s worth has been paid for it. At the time of admission, Vivaan, a new
partner was unable to bring in his share of goodwill in cash, so according to Accounting
Standard-26 his:
(a) Current A/c will be credited
(b) Current A/c will be debited
(c) Capital A/c will be debited
(d) Capital A/c will be credited

2. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative
from those given below.
Assertion: Michael, Mike and Stephen were partners sharing profits and losses in the ratio 3:2:1.
Stephen being a partner wants that he should be exempted from sharing the losses in the firm.
Reasoning: According to Partnership Act 1932,”It may be agreed between the partners that one
or more of them shall not be liable for losses.”
Alternatives:
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

3. According to Sec 50 of the Companies Act 2013, the amount of Calls in Advance can be
accepted by the Company only when it is authorised by:
(a) Board of Directors
(b) Equity Shareholders
(c) Articles of Association
(d) Memorandum of Association
OR
Tulip Ltd. took up a loan from a Punjab National Bank and issued its’ Debentures as Collateral
Security. The bank to whom these debentures are issued:
(a) will be entitled to interest on such debentures.
(b) will not be entitled to interest on such debentures.
(c) will be entitled to interest on primary security.
(d) will not be entitled to interest on loan taken up from the bank.

4. Danish, Zaid and Mihir who were sharing profits and losses equally decided to share the future
profits and losses in the ratio to 5:4:3 with effect from 1 st April 2023. An extract of their Balance
Sheet as at 31st March 2023 is:
Liabilities Amount Assets Amount
Investment Fluctuation 85,0000 Investments( At 8,00,000
Reserve Cost)
At the time of reconstitution, if the market value of Investment was Rs. 7,06,000, the
Revaluation A/c will be:
(a) Debited with 15,000
(b) Debited with 9,000
(c) Credited with 2,000
(d) Credited with 12,000
OR
Sam, Tom and Jerry were partners sharing profits and losses equally. Sam sold a land costing
Rs.5,00,000 belonging to the firm, without informing other partners and made a profit of
Rs.50,000 on sale of such land. Which decision should be taken by the firm to rectify this
situation?
(a) Sam needs to return only Rs.5,00,000 to the firm.
(b) Sam is required to return Rs.50,000 to the firm.
(c) Sam is required to pay back Rs.50,000 only equally to Tom and Jerry.
(d) Sam needs to return Rs.5,50,000 to the firm

5. Mike and Ken were two partners sharing profits and losses in the ratio 4:3. Ken was in need of
funds so he took a loan of Rs.50, 000 from the firm at an agreed rate of interest being 10% p.a. If
Interest is charged on loan to the partner it will be:
(a) Debited to Profit and Loss A/c
(b) Credited to Profit and Loss A/c
(c) Debited to Profit and Loss Appropriation A/c
(d) Credited to Profit and Loss Appropriation A/c

6. Cadilla Ltd. allotted 2,000 8% Debentures of Rs. 100 each to their underwriters to pay their
commission.
Which of the following journal entry is correct, if 8% Debentures are allotted to underwriters?
(a) 8% Debentures A/c Dr
To Underwriting Commission A/c
(Commission due to them)
(b) 8% Debentures A/c Dr
To Underwriter’s A/c
(Commission due to them)
(c) Underwriter’s A/c Dr
To Underwriting Commission A/c
(Commission due to them)
(d) Underwriter’s A/c Dr
To 8% Debentures A/c
(Commission due to them)

OR
Which of the following statements is correct about debentures?
(a) Interest on debentures is an appropriation of profits.
(b) Debenture holders are the creditors of a company.
(c)Debentures cannot be issued to vendors at discount.
(d) Interest is paid on Debentures issued as Collateral Security.

7. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative
from those given below.
Assertion (A) :- Under Section 62(1)(b) of the Companies Act, 2013, a Company may offer
shares to its employees under a scheme of ‘Employees Stock Option’ which means the option
(right) given to the whole-time directors, officers or permanent employees of a company to
purchase or subscribe the securities offered by the company at a future date, at a pre-determined
price, which is lower than the market price.
Alternatives:
Reason (R) :- The company need not to pass a special resolution to this effect.
(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct explanation
of Assertion (A)
(c) Assertion (A) is incorrect, but Reason (R) is Correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect

8. Neil, Nitin and Nitesh were partners in the firm sharing profits and losses equally. Neil retires
from the firm and on his retirement, he is entitled for the payment due to him after all the
adjustments.
At the time of retirement, if nothing is mentioned about the payment made due to him, in
which account, the amount will be transferred:
(a) Retiring Partner’s Current A/c
(b) Retiring Partner’s Capital A/c
(c) Retiring Partner’s Loan A/c
(d) Retiring Partner’s Bank A/c
OR
Stella, Grace and Carol were partners in the firm sharing profits and losses in the ratio 3:2:1.
Carol was guaranteed a profit of 15,000 after making all adjustments. Any deficiency is to be
borne by Grace. The net profit for the year 31st March 2023 was Rs.60,000.
Grace will be ________ by Rs.________.
(a) Credited, Rs.6,500.
(b) Debited, Rs.5,000.
(c) Credited, Rs.7,500.
(d) Debited, Rs. 2,500.

Read the following hypothetical situation and answer question no. 9 and 10.
Ana and Anne started a partnership business on 1st April, 2022. Their capital contributions were
Rs. 3, 00,000 and Rs. 1, 00,000 respectively. Ana rented her property to carry on business for
Rs.2, 500 p.m. Interest on capitals @12% p.a. Ana, to get a salary of Rs. 4,000 p.m. Anne to get
a commission of 2% of the net profit. Profits are to be shared in the ratio of 3:2. The profits for
the year ended 31st March, 2023 before providing for rent was Rs. 2, 00,000.
Dr. Profit and Loss Appropriation Account Cr.
st
for the year ended 31 March, 2023
Particulars Rs. Particulars Rs.
To Interest on capital: By Profit and Loss A/c _______(2
Ana _______ )
_______
Anne
To Partner’s Salary: 48,000
Ana _______(1
To Anne’s commission )
To Profit transferred to
Ana’s Capital A/c _______
Anne’s Capital A/c _______
_______ _______
9. The amount to be reflected in blank (1) will be:
(a) Rs.3,720
(b) Rs.3,400
(c) Rs. 2,800
(d) Rs.2,940

10. The amount to be reflected in blank (2) will be:

(a) Rs.1,62,000
(b) Rs. 1,74,500
(c) Rs. 1,71,400
(d) Rs.1,70,000

11. Which of the following is a right of a partner?

(a) sharing profits and losses with other partners in the agreed ratio
(b) inspecting and having a copy of the books of accounts
(c) retiring from the firm without giving proper notice
(d) taking part in the misconduct of the business
Choose the correct option:
(i) Only (b) and (c)
(ii) Only (c)
(iii) Only (a) and (b)
(iv) Only (a) and (d)

12. Skyline Ltd. took over running business worth Rs. 70,00,000 from Grand Ltd. by paying
20% through bank draft and balance by issue of shares of Rs.100 each at a premium of 10%. The
entry to be passed by Skyline Ltd for settlement will be :-
(a)
Grand Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 509090
To Bank A/c 14,00,000
To Statement of Profit and Loss 1
(Settlement of amount due to vendors)

(b)
Grand Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 5,09,090
To Bank A/c 14,00,001
(Settlement of amount due to vendors)

(c)
Grand Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 5,00,090
To Bank A/c 14,00,000
(Settlement of amount due to vendors)

(d)

Grand Ltd. Dr. 70,00,000

To Share Capital A/c 50,00,000
To Securities Premium A/c 5,09,090
To Bank A/c 14,00,000
(Settlement of amount due to vendors)
13. Mayfair Ltd. forfeited 2,000 shares of Rs.10 each, Rs.7 called up, on which only Rs. 4 per
share (including Rs.2 premium) and Rs.2 per share on first call has not been paid. Out of these
500 shares were re-issued as fully paid that Rs. 750 was transferred to Capital Reserve. On re-
issue, how much amount will be transferred to Bank A/c?
(a) Rs. 3,250
(b) Rs. 4,250
(c) Rs. 2,250
(d) Rs. 5,500

14. David and Garry are partners in a firm with capitals of Rs. 90,000 and Rs. 80,000
respectively. Zenith brings Rs.70,000 as his capital for 1/4 th share in profits. Zenith’s share of
goodwill will be:
(a) Rs. 34,000.
(b) Rs. 29,000.
(c) Rs.10,000.
(d) Rs.14,000.

15. Edward and Hayward are partners. Edward draws a fixed amount at the beginning of every
quarter. Interest on drawings is charged @10% p.a. At the end of the year, interest on Edward’s
drawings amounted to Rs.7,500. Drawings of Edward were:
(a) Rs. 34,000 per quarter.
(b) Rs. 44,000 per quarter
(c) Rs. 30,000 per quarter
(d) Rs. 60,000 per quarter
OR
Ayan, Azan and Aqib are partners carrying on furniture business. Ayan withdrew Rs. 5,000 at
the end of each month. Azan withdrew Rs.10,000 at end of each quarter. Aqib withdrew
Rs.40,000 at the end of each month for six months. The partnership deed provides for interest on
drawings @ 12% p.a. The interest on drawing charged from Ayan, Azan and Aqib at the end of
the year will be:
(a) Ayan- Rs. 1,800, Azan- Rs.3,300, Aqib- Rs. 6,000
(b) Ayan- Rs. 2,400, Azan- Rs. 1,200, Aqib- Rs. 5,000
(c) Ayan- Rs. 1,400, Azan- Rs. 3,200, Aqib- Rs. 2,000
(d) Ayan- Rs. 3,200, Azan- Rs. 2,300, Aqib- Rs. 8,000

16. At the time of dissolution, Harry, a creditor of the firm agreed to take over the furniture of
the book value of Rs. 1, 00,000 at Rs. 89,000 and the balance in cash in full settlement of his
account of Rs.1, 10,000.
Which journal entry will be passed for the balance to be paid in cash?
(a) Realisation A/c Dr. 35,000
To Bank A/c 35,000
(b) Realisation A/c Dr. 21,000
To Bank A/c 21,000
(c) Realisation A/c Dr. 11,000
To Bank A/c 11,000
(d) Realisation A/c Dr. 15,000
To Bank A/c 15,000

17. Mac, Jack and Lac were partners in a firm sharing profits and losses in the ratio of 2:2:1
Balance Sheet (extract)
as at 31st March, 2023
Liabilities (Rs) Assets
(Rs)
Workmen’s Compensation Reserve 5,00,000
On Jack’s retirement from the firm on 1st April, 2023, he had a balance of Rs.8, 00,000 (cr.) in
his capital account. The liability of Workmen’s Compensation Reserve was Rs. 5, 75,000. You
are required to pass journal entries and show how much amount is transferred to his loan
account?

18. Viraf, Virat and Vaibhav were partners with capitals of Rs 2,30,000, Rs 1,20,000and
Rs.2,40,000. After distributing the profit of 5,20,000 for the year ended 31st March 2023 in their
agreed ratio of 3:2:1 it was observed that:
Interest on capital was provided at 14% p.a. instead of 10% p.a.
You are required to pass adjustment entry.
OR
Eden and Ivon were partners in a firm sharing profits and losses in the ratio of 5:4. Their capitals
were Rs.75,000 and Rs. 90,000 respectively. After the accounts for the financial year ending
March 31, 2023 have been prepared, it is observed that interest on capital @ 10% per annum and
salary to Eden @ Rs.9,000 per annum, as provided in the partnership deed has not been credited
to the partners’ capital accounts before distribution of profits.
You are required to give necessary rectifying entries using Profit and Loss Adjustment Account.

19. Glen Ltd. took over the running business of Hayward Ltd. having assets of Rs.22,00,000 and
liabilities of Rs.6,00,000 by issuing 20,000, 11% Debentures of Rs. 100 each at 5% discount.
You are required to pass the journal entries in the books of Glen Ltd. if debentures
were redeemed at 10% premium.
OR
Frank Ltd. issued 1,00,000 Equity shares of Rs. 10 each. The amount was duly received except
on 5,000 Equity shares on which Rs. 5 per share was received. These shares were forfeited and
2,500 Equity shares were reissued for Rs. 9 each fully paid-up.
You are required to prepare Share Forfeiture Account.

20. Kate and Vincet were partners in a firm. On 1st April, 2022, the firm had assets of Rs.90,000
including cash of Rs. 8,000. The partners’ capital accounts showed a balance of Rs. 70,000 and
reserves constituted the rest. The normal rate of return is 30% and average profits of the firm are
valued at Rs. 47,000.
You are required to find out the value of goodwill of the firm at 4 years purchase of super profits.

2 1 . K l e n Ltd. was registered with an authorized capital of R s . 1 0,00,000 divided into

Equity Shares of Rs 10. Out of these 8,000 shares were issued to vendors as fully paid as
purchase consideration for a business acquired. The company offered 20,000 shares for public
subscription and called up Rs.8 per share and received the entire amount..
You are required to prepare the Balance Sheet of the company as per Schedule III of
Companies Act, 2013, showing Share Capital balance and also prepare Notes to Accounts.

22. Carol and Lacy were partners. They decided to dissolve their firm. Pass the journal entries
for the following after various assets and external liabilities have been transferred to Realisation
A/c:
1.Carol took over half of the investments worth Rs. 30,000 at 2% discount and the remaining
investments were sold at a profit of 18% of the book value.
2.Lacy is allowed a remuneration of Rs. 13,000 for dissolution work and is to bear all the
expenses of realisation which amounted to Rs. 5,000 were paid by the firm.
3. Carol had given a loan of Rs. 89,000 to the firm which was duly paid.
4. Lacy agreed to pay off her brother’s loan of Rs. 13,000 at a discount of 5%.

23. Royal Fans Ltd. invited applications for 1,00,000 Equity Shares of Rs.100 each at a premium
of 10%. The amount was payable as follows:
On Application Rs. 50 per share
On Allotment Rs. 35 per share (including premium)
On First and Final Call Rs. 25 per share
Applications for 1,50,000 shares were received. Applicants for 25,000 shares did not get any
allotment and their money returned. Allotment was made pro-rata to the remaining applicants.
Excess application money was adjusted towards sum due on allotment. Mr. Hanoz who was
allotted 600 shares failed to pay the amount due on allotment and call money. The company
forfeited his shares and subsequently re-issued at Rs 110 per share fully paid-up.
You are required to pass journal entries to record the above transactions in the books of the
company.
OR
Phizer Ltd. invited applications for 4,000 equity shares of Rs 100 each at a premium 30 per
share. The amount was payable as follows:
On Application Rs. 40 (Including premium Rs 10)
On Allotment Rs. 60 (Including premium Rs 20)
On First and Final Call Rs. 40
Applications for 5,000 shares were received. Allotment was made to all the applicants on pro-
rata basis. Excess application money was adjusted towards sum due on allotment. Rocky, to
whom 40 shares were allotted, failed to pay allotment and call money. Ali, to whom 90 shares
were allotted, failed to pay the call money. These shares were forfeited. The forfeited shares
were re-issued @ Rs 80 per share fully paid-up.
You are required to pass journal entries to record the above transactions in the books of the
company.

24. On 31st March 2023 the Balance sheet of Zoya and Zara who were sharing profits and losses
in the ratio of 3:2 was as follows.
 Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 29,000 Cash at bank 9,000
Bills payable 6,000 Debtors 20,000
General reserves 16,000 Less : Provision 1000 19,000
Capitals Stock 15,000
Zoya 50,000 Land and Building 25,000
Zara 35,000 85,000 Plant and Machinery 30,000
Goodwill 10,000
Profit and Loss account 28,000
1,36,000 1,36,000
They decided to admit Sara for 1/5th share on 1st April, 2022 in the firm on the following terms:
(a) Goodwill of the firm is valued at Rs 28,000.
(b) Depreciate Plant and Machinery by 10%, appreciate Land and Building by 40%.
(c) The provision for doubtful debts was to be increased by Rs. 800.
(d) A liability of Rs. 1,000 included in the creditors is not likely to arise.
(e) New profit sharing ratio between Zoya, Zara and Sara shall be 5:3:2 respectively.
(f) Sara was to contribute capital equal to 1/5th of the total capital of Zoya and Zara after all
adjustments.
You are required to prepare Revaluation Account and Partners’ Capital Accounts.

OR
Mark, Musk and Alen were partners in a firm sharing profits in 2:2:1 ratio, On 31.3.2023 Alen
retires from the firm. On the date of Alen’s retirement the Balance Sheet of the firm was as
follows:
Balance Sheet of Mark, Musk and Alen
as at 31.3.2023
Liabilities (Rs.) Assets (Rs.)
Creditors 54,000 Bank 55,000
Bill Payable 24,000 Debtor 12,000
Outstanding Rent 4,400 Less: Provision for
Provision for Legal Claim 12,000 Doubtful 800 11,200
Capitals : Stock 18,000
Mark 92,000 Furniture 8,200
Musk 60,000 Premises 1,94,000
Alen 40,000 1,92,000
2,86,400 2,86,400
On Alen’s retirement it was agreed that:
(a) Premises will be appreciated by 5%.
(b) Furniture will be appreciated by Rs. 2,000.
(c) Stock will be depreciated by 10%.
(d) Provision for bad debts was to be made at 5% on debtors.
(e) Provision legal damages to be made for Rs. 14,400.
(f) Goodwill of the firm is valued at Rs. 48,000.
(g) Rs. 50,000 from Alen’s Capital A/c will be transferred to his Loan A/c and balance will be
paid by cheque.
Prepare Revaluation A/c, Partners Capital A/c’s and Balance Sheet of Mark and Musk after
Alen’s Retirement.

25. Ester, Emma and Lucy were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm
closes its books on 31st March every year. On 30th September, 2022 Lucy died. The partnership
deed provided that on the death of a partner her executors will be entitled to the following:
(a)Balance in her capital account which amounted to Rs. 3,15,000 and interest on capital @9%.
(b)Her share in the profits of the firm till the date of her death amounted to Rs.70,000.
(c) Her share in the goodwill of the firm. The goodwill of the firm on Lucy’s death was valued at
Rs. 1,50,000.
You are required to calculate the amount to be transferred to Lucy’s Capital A/c.

26. Akon Ltd issued 12,000, 14% debentures of Rs 100 each on 1st April, 2021. The issue was
fully subscribed. According to the terms of issue, interest on debentures is payable half- yearly
on 30th September and 31st March and tax deducted at source is 15%.
You are required to pass the necessary entries related to the debenture interest for the half-yearly
ending on 31st March, 2022 and transfer of interest on debentures to statement of profit and loss.

PART B
Option - I
(Analysis of Financial Statements)
27. Operating Cycle is the time between the acquisition of assets for processing and their
realisation into:
(a) Current Assets
(b) Non- current Assets
(c) Other Current Assets
(d) Cash and Cash Equivalents
OR
Interest Accrued but not Due on Debentures will be shown under the heading:
(a) Current Assets
(b) Current Liabilities
(c) Contingent liability
(d) Non-current Assets

28. Vibgyor Ltd. has current assets worth Rs. 3,50,000 and it needs to pay off its obligations
worth Rs.2,00,000. If the firm has to make a payment of a current liability worth Rs. 50,000,
what will be the current ratio:
(a) 3:1
(b) 0.75:1
(c) 1:1
(d) 2:1

29. Statement I: Increase in provision for doubtful debts should be added back for calculating
cash from operations.
Statement II: Dividend received is a Financing Activity.
(a) Statement I is correct and Statement II is incorrect
(b) Statement I and II is correct
(c) Statement I and Statement II is incorrect
(d) Statement I is incorrect, and Statement II is correct
OR
Decrease in Bank Overdraft is shown under which heading in a Cash Flow Statement?
(a) Operating
(b) Financing
(c) Investing
(d) Cash and Cash Equivalent

30. Prayas Ltd. made a profit of Rs. 1,75,000 after considering the following items:
(i) Goodwill written off Rs. 6,000
(ii) Depreciation on Furniture Rs.3,400
(iii) Loss on sale of Building Rs. 89,000
(iv) Gain on sale of Land Rs. 4,250
Operating Profit before Working Capital changes will be:
(a) Rs. 2,25,149
(b) Rs. 2,69,150
(c) Rs. 2,35,160
(d) Rs. 2,53,145

31. Classify the following items under Major heads and Sub heads (If any) in the Balance Sheet
of Beltek Ltd. as per Schedule III of the Companies Act, 2013.
Particulars Amount
Building under construction. 80,000
Unpaid Dividend 63,000
Securities Premium 47,000
Interest Accrued and due on Unsecured Loan. 6,000
Design 49,000
Mortgage Loan 1,10,000

32. Following is the Balance Sheet of Yorkshire Ltd. as at 31st March, 2023
 Particulars 31.3.2023
I. EQUITY AND LIABILITIES:
(1) Shareholders’ funds
(a) Share capital 2,10,000
(b) Reserves and surplus 2,800
(2) Non- Current liabilities
Long term Borrowings( 12% Debentures) 60,000
(2) Current liabilities
(a) Trade Payable 20,000
(b) Other current liabilities 2,000
(c) Short-term provisions 20,000
TOTAL 3,14,800
II. ASSETS:
(1) Non-current Assets
(a) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment 1,96,400
(ii) Intangible Assets 18,800
(b)Non-current investments 14,000
(2) Current assets
(a) Inventories 31,200
(b) Trade Receivables 43,200
(c) Cash and Cash Equivalents 11,200
TOTAL 3,14,800
You are required to calculate:
(i) Debt to Equity Ratio
(ii) Current Ratio
(iii) Return on Investment

33. Following is the Balance Sheet of Meridian Ltd. as at 31 st March 2022 and 31st March 2023.
 Particulars Note 31st March2023 31st March
No. 2022
I.EQUITY AND LIABILITIES:
1. Shareholders’ Funds
a) Share Capital 10,00,000 5,00,000
b) Reserves and Surplus 2,00,000 3,00,000
2. Non–current Liabilities
Long term Borrowings 8,00,000 5,00,000
3. Current Liabilities
Trade Payables 4,00,000 2,00,000
Total 24,00,000 15,00,000
II. ASSETS:
1. Non–Current Assets
a)Property, Plant and Equipment and
Intangible Assets
(i) Property, Plant and Equipment 15,00,000 10,00,000
2. Current Assets
Cash and Cash Equivalents 9,00,000 5,00,000
Total 24,00,000 15,00,000
You are required to prepare a Common Size Balance Sheet.
OR
Prepare Comparative Statement of Profit and Loss of Gem Ltd. from the following:
Particulars Note No. 2023 2022
Revenue from operations 20,00,000 15,00,000
Other income 10,00,000 4,00,000
Expenses 21,00,000 15,0,000
Rate of income tax was 50%.
34. From the following Balance Sheet of Havels Ltd., you are required to prepare a Cash Flow
Statement:
Havels Ltd.
Balance Sheet as at 31-3-2023
Particulars Note 31-3-23 31-3-22
No. (Rs.) (Rs.)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share Capital 7,90,000 5,80,000
(b) Reserves and Surplus 1 4,60,000 1,20,000
(2) Non - Current Liabilities
Long term Borrowings 2 5,00,000 3,00,000
(3) Current Liabilities
(a) Short term borrowings 3 1,15,000 42,000
(b) Short term Provisions 4 1,18,000 46,000
Total 19,83,000 10,88,000
II. Assets 5
(1) Non-Current Assets 6
(a)Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment 9,80,000 6,35,000
(ii) Intangible Assets 2,68,000 1,70,000
(2) Current Assets
(a) Current Investments 1,40,000 70,000
(b) Trade Receivables 4,40,000 1,50,000
(c) Cash and Cash Equivalents 1,55,000 63,000
Total 19,83,000 10,88,000
Notes to Accounts:
Not Particulars 31-3-23 31-3-22
e (Rs.) (Rs.)
No.
1. Reserve and Surplus
Surplus (Balance in statement of Profit & Loss) 3,20,000 60,000
General Reserve 1,40,000 60,000
4,60,000 1,20,000
2. Long-term Borrowing
12% Debentures 5,00,000 3,00,000
5,00,000 3,00,000
3. Short-term Borrowing
Bank Overdraft 1,15,000 42,000
1,15,000 42,000
4. Short-term Provisions
Provision for Tax 1,18,000 46,000
1,18,000 46,000
5.
Plant and Machinery 11,00,000 7,50,000
Less: Accumulated Depreciation (1,20,000) (1,15,000)
9,80,000 6,35,000
6. Intangible Assets
Patents 2,68,000 1,70,000
2,68,000 1,70,000
Additional Information:
12% debentures were issued on 1st September, 2022
 CBSE PRACTICE QUESTION PAPER II 2023-24
SUBJECT ACCOUNTANCY 055 CLASS XII
TIME 3 HOURS 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. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and
(ii) Computerised Accounting.
Students must attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 6 marks each
9. 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.

Q PART A (Accounting for Partnership Firms and Companies) Marks

1 Alok and Manish were partners sharing profits and losses in the ratio of 5:3. They admitted Deepak as 1
a new partner for 1/3 share. Deepak is to bring 20% of the combined capital of all the partners.
Capitals of Alok and Manish after all the adjustments related to Revaluation Gain, Goodwill treatment
and accumulated profits/losses were ₹ 7,40,000 and ₹ 4,60,000 respectively. Determine the Capital
amount to be brought in by Deepak.
A. ₹ 4,00,000 B. ₹ 6,00,000 C. ₹ 2,40,000 D. ₹ 3,00,000

2 Arjun and Bhim were partners in a firm sharing profits in the ratio 3:2. On 31st March 2023 their 1
capitals were ₹ 1,29,000 and ₹ 1,08,000 respectively, Divisible Profits for the year ended 31st March
2023 was ₹ 50,000. Interest on capital was also provided @10% p.a. in accordance with partnership
deed. Determine interest on Arjun’s Capital for the year ended. 31.03.2023.
A. ₹ 9,900 B. ₹ 9,000 C. ₹ 12,900 D. ₹ 10,400

3 Mannat Ltd. forfeited 10,000 shares of ₹ 10 each on which ₹ 8 (including ₹ 2 premium was called) and 1
₹ 5 (including ₹ 1 premium) was paid. Out of these 6,000 shares were re-issued. Determine the
minimum amount at which these shares can be re-issued as fully paid up.
A. ₹ 24,000 B. ₹ 36,000 C. ₹ 18,000 D. ₹ 30,000
OR
Jeewan Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 5 on application, ₹ 3 on
allotment and ₹ 2 on call. Public has applied for 3,80,000 shares. Pro-rata allotment was made in the
ratio 7:4. Determine the amount to be refunded by the company at the time of allotment of shares.
A. ₹ 3,00,000 B. ₹ 9,00,000 C. ₹ 1,50,000 D. ₹ 7,50,000

4 Anmol, Bhavya and Chanakya were partners in a firm sharing profit and losses in the ratio of 5:3:2. 1
Chanakya retired and his capital balance after adjustments regarding reserves, accumulated profit &
losses and his share of gain on revaluation was ₹ 2,50,000. Chanakya was paid ₹ 3,22,000 including his
share of goodwill. The amount credited to Chanakya’s capital account on his retirement, for goodwill
will be:
A. ₹ 72,000 B. . ₹ 7,200 C. ₹ 24,000 D.₹ 36,000
 OR
Rey and Ley Associates is having three partners named as Rakesh, Leena and Sanjana. Their Capitals
were ₹ 4,00,000; ₹ 2,40,000 and ₹ 1,60,000 respectively. Sanjana retired on March 31, 2023 and sold
her share of profits by taking ₹ 30,000 from Rakesh and ₹ 20,000 from Leena. Determine the new ratio.
A. 1 : 1 B. 7 : 8 C. 3 : 2 D. 8 : 7
5 Manav and Daksh were partners sharing profits and losses in the ratio of 5:3. Their firm was dissolved 1
on March 31, 2023. On the date of dissolution, Daksh’s Loan to the firm amounted to ₹ 80,000 and was
settled at ₹ 75,000.
Assertion (A) :- Daksh’s Loan will be debited by ₹ 75,000 only.
Reason (R) :- Daksh’s Loan to be closed only by the amount paid to him.
A. Both A and R are correct and R is the correct explanation of A.
B. Both A and R are correct but R is not the correct explanation of A.
C. A is incorrect but R is correct
D. Both A and R are incorrect.
6 As per section 52 of Companies Act 2013, securities premium can be utilised for which of the 1
following purpose:
I. Writing off discount allowed to debtors
II. Providing for premium payable on redemption of debentures
III. Issuing fully paid debentures as bonus
IV. Issuing fully paid shares as bonus
V. Buyback of shares
A. Only I, II and III B. Only II, III and IV C. Only II, IV and V D. Only II and IV
OR
An issue of shares that is not a public issue but offered to a selected group of persons is called:
A. Public offer B. Private placement of shares
C. Initial Public offer D. Preferential allotment
7 Section 37 of the Partnership Act states that the outgoing partner is entitled to :- 1
A. Proportionate share in profits B. Interest on Loan dues @ 6% p.a
C. Immediate payment of dues D. Either of A or B
8 An amount of ₹50,000 was payable to the retiring partner and it was brought in by the remaining 1
partners in the ratio 3:2. What will be the effect on bank/cash balance in the reconstituted balance
sheet?
A. Increase in Balance by ₹ 50,000 B. Decrease in Balance by ₹ 50,000
C. No Change in Cash Balance D. Decrease in Balance by ₹ 1,00,000
OR
A, B and C were partners in a firm. C died on 31st July 2023. His share of profit or losses was to be
calculated on the basis of previous year’s profit or loss. Loss for the year ended 31st March 2023 was
₹8,10,000. Which of the following is correct option:
A. C to be debited by ₹ 2,70,000 B. C to be debited by ₹ 90,000
C. C to be credited by ₹ 2,70,000 D. C to be credited by ₹ 90,000
Rajesh, an applicant of 8,000 shares, was allotted 5,000 shares. He paid application money of ₹ 4
(including ₹ 1 premium) but failed to pay ₹ 6 on allotment (including ₹ 2 premium) and final call of ₹ 3
His shares were forfeited and out of these 3,000 shares were re-issued @ ₹ 12 per share as fully paid
up.
On the basis of above hypothetical situation, answer Q 9- Q10.
9 What amount would be reflected in Share forfeiture account upon forfeiture of shares held by Rajesh? 1
A. ₹ 32,000 B. ₹ 20,000 C. ₹ 15,000 D. ₹ 27,000
10 What amount will be transferred to Capital Reserve after re-issue of 3,000 shares? 1
 A. ₹ 16,200 B. ₹ 19,200 C. ₹ 10,200 D. Nil
11 From the journal entries given below, identify the entry that can be passed for issue of debentures as 1
collateral security:
A. Security premium A/c – Dr
To Debentures A/c
B. Bank loan A/c -Dr
To Debentures A/c
C. Debentures A/c--- Dr
To Debentures Suspense A/c
D. Debentures Suspense A/c –Dr
To Debentures A/c

12 Aman, Balraj and Chetan are partners sharing profits and losses in the ratio of 5:4:3. Chetan retires and 1
is credited for 9,000 as goodwill. How much will be debited to Aman in respect of goodwill
adjustment:
A. ₹ 20,000 B. ₹ 16,000 C. ₹ 5,000 D. ₹ 4,000
13 Assertion (A):- Goodwill share brought in by new partners is distributed amongst old partners in old 1
ratio.
Reason (R) :- Gaining Partner will be compensated by Sacrificing Partners in ratio of their sacrifice.
A. Both A and R are correct B. Both A and R are incorrect
C. Only A is correct D. Only R is correct
14 Realisation expenses amounted to ₹ 15,000 were paid by partner Rahul. Vijay, another partner was 1
appointed to look after dissolution process for which he was allowed remuneration of ₹ 8,000 and
Vijay was to bear realisation expenses. What amount will be debited to realisation account for the
above?
A ₹ 15,000
B ₹ 8,000
C ₹ 23,000
D ₹ 7,000
15 P, Q and R were partners sharing profits and losses in the ratio 5:3:2. With effect from 1st April 2023 1
they decided to share future profits and losses in different ratio. On that date profit and loss account
appearing on the asset side of the balance sheet was ₹ 4,00,000 and following entry was passed:
P’s Capital A/c Dr. ₹ 25,000
To Q’s Capital A/c ₹ 5,000
To R’s Capital A/c ₹ 20,000
Find new Ratio.
A. 45 : 23 : 12 B. 7 : 5 : 4 C. 2 : 1 : 1 D. 1 : 1 : 1
OR
Eena, Meena and Deeka are partners sharing profits and losses in the ratio 5:4:1. Meena retired on 31st
March 2023 and her dues came out to be ₹ 7,20,000. Amount of ₹ 1,20,000 was paid immediately and
balance was to be paid in three equal annual instalments together with interest @ 10% per annum.
Determine the amount payable to Meena on 31st March 2025.
A. ₹ 2,00,000 B. ₹ 2,60,000 C. ₹ 2,40,000 D. ₹ 2,88,000
16 Workmen Compensation Reserve was appearing in the Balance Sheet at ₹ 4,00,000. At the time of 1
admission of partner Sohail, claim for workmen compensation was ₹ 4,50,000. Determine the amount
to be shown in Revaluation Account.
A. Debited ₹ 4,50,000 B. Credited ₹ 4,00,000 C. Debited ₹ 50,000 D. Credited ₹ 50,000
17 Raju and Rinku were partners sharing profits and losses in the ratio 3:2. They admitted Sumit as a new 3
partner for 1/3 share. On the date of admission Capitals of Raju and Rinku were ₹ 5,50,000 and ₹
6,50,000 respectively, also, General Reserve of ₹ 3,00,000 and Profit and Loss (Dr.) balance of ₹
1,00,000 were appearing in the books of accounts. Firm made an average profits of ₹ 2,40,000 during
the last few years and the normal rate of earning was expected to be 12%. Calculate the Goodwill of
the firm by Capitalisation Method.
OR
Shikha, Shweta and Manisha were partners sharing profits and losses in the ratio of 5:3:2. They
admitted Pooja into partnership for 25% share. Shikha, Shweta and Manisha decided to share future
profits and losses equally. Pooja brings in Capital of ₹ 8,00,000 and ₹ 1,50,000 out of her goodwill
share of ₹ 2,50,000. Pass necessary entries at the time of Pooja’s admission.
18 Riddhi, Siddhi and Vidhi were partners sharing profits and losses in the ratio of 7:5:3, w.e.f 01 April, 3
2023 they decided to share future profits and losses in the ratio of 5:4:1. Goodwill of the firm on the
date of reconstitution was valued at ₹ 3,00,000. The following balances were also appearing on the date
of reconstitution.
General Reserve ₹ 2,40,000
Deferred Revenue Expenditure ₹ 1,80,000
Profit and Loss (Dr.) Balance ₹ 7,20,000
Partners decided to continue with above three balances in the books of the firm. Pass necessary entries
I in the books of the firm. Show your working clearly.
19 Rihaan Ltd had an authorised capital of 4,00,000 equity shares of ₹10 each. The company offered for 3
subscription 1,00,000 shares. The issue was fully subscribed . The amount payable on application was
₹2 per share, ₹4 per share were payable each on allotment and first and final call. A shareholder
holding 100 shares failed to pay the allotment money. His shares were forfeited immediately after the
allotment. Show how the 'Share Capital will be shown in the company's balance sheet (as per Schedule
III, Part I of the Company’s Act, 2013) if the final call has not yet been made. Also prepare Notes to
Accounts for same.
OR
Sapphire India Ltd. was registered with an authorised capital of ₹20,00,000 divided into 2,00,000
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. 78,000 shares were subscribed for and all amounts due were called and received except the
first and final call money on 2,000 shares allotted to Chavi. Her shares were forfeited. Present the
'Share Capital' in the Balance Sheet of the company as per Schedule III, Part I of the Company's Act,
2013. Also prepare 'Notes to Accounts'.
20 Alok and Manish were partners sharing profits and losses in the ratio of 5:3. For the year ended March 3
31, 2023 it was observed that profits of ₹80,000 were distributed equally without providing for Salary
of ₹ 5,000 p.m. to Alok and Commission of ₹ 40,000 to Manish.
You are required to pass necessary adjustment entry. Show working notes clearly.
21 Aqua Co. Ltd. took over Assets of ₹ 12,90,000 and Liabilities of ₹ 40,000 of Bangar Ltd. and in 4
consideration
a) Issued 50,000 equity shares of ₹10 each at 20% premium
b) Issued 9% Debentures of face value of ₹4,00,000 at 10% discount.
c) Balance by Cheque.
This entire purchase of Business resulted in increase in capital reserve balance from ₹90,000 to
₹1,30,000 in Balance sheet. Show necessary entries in books Aqua Co. Ltd
22 Manya ,Sanket and Roopam were partners sharing profit in the ratio of 2:2:1. On 31st March 2023 , 4
their balance sheet was as follows:
Liabilities ₹ Assets ₹
Creditors 6,00,000 Fixed Assets 14,00,000
Contingency Reserve 2,00,000 Stock 4,00,000
Capitals: Debtors 3,00,000
 Manya 8,00,000
Sanket 7,00,000
Roopam 5,00,000 20,00,000
Cash at Bank 7,00,000
28,00,000 28,00,000
Sanket died on 15th June 2023.According to partnership deed , his executors were entitled to:
a) Balance in his capital Account.
b) His share of goodwill will be calculated on the basis of thrice the average of past 4 year’s profit.
c) His share in profits up to date of death on the basis of average profits of last two years.
d) Interest on capital @ 12% p.a. up to date of death.
The firm’s profit for the last four years were:
2019-20- ₹1,20,000,
2020-21- ₹2,00,000,
2021-22 - ₹2,60,000,
2022-23 - ₹2,20,000.
Sanket’s executors were paid the amount immediately. Prepare Sanket’s Capital account to be
presented to his executors.

23 Priyanshu Ltd invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium of ₹ 10. 6
The amount was payable as follows:
On Application – ₹ 30 ; On allotment – ₹ 30 (including a premium of ₹ 10) ; On first call –balance
Applications of 2,30,000 shares were received. Allotment was made on pro rata basis to applicants of
1,80,000 shares and remaining were sent letters of regret. Excess money on application was to be
utilised towards allotment and subsequent calls.
David, who was allotted 1,600 shares, paid nothing after application. These shares were forfeited after
the first call. 1,000 of these shares were re-issued to Sundar for ₹ 95 per share as fully paid.
Pass necessary journal entries in books of Priyanshu Ltd.
OR
Pritam Ltd invited applications for issuing 1,20,000 shares of ₹10 each at a premium of ₹3. The amount
was payable as follows:
On Application – ₹ 4 (including ₹ 1 premium) ; On allotment – ₹ 5 (including ₹1 premium) ; On first
call – balance
Applications of 1,80,000 shares were received. Allotment made as under:
Applicants of 90,000 shares Alloted 80,000 shares.
Applicants of 50,000 shares Alloted 40,000 shares
Remaining application were rejected.
Ruhi, an applicant of 4,500 shares(out of group applying for 90,000 shares)and Mukti , the holder of
6,000 shares (out of group applying for 50,000 shares) failed to pay allotment money and their shares
were immediately forfeited and later on re-issued 8,000 shares @ ₹ 7 per share as ₹ 6 paid up. Re
issued shares included all shares of Ruhi .Pass necessary journal entries in books of Pritam Ltd by
opening call in arrears account.
24 Aman and Biswas were partners sharing profits and losses in the ratio of 3:2. They admitted Chetan as 6
a new partner for 25% share. Balance sheet of Aman and Biswas was as follows on March 31, 2023.
Liabilities ₹ Assets ₹
Creditors 50,000 Bank 40,000
Employee Provident Fund 60,000 Stock 60,000
General Reserve 40,000 Debtors 1,00,000
Investment fluctuation Reserve 50,000 (-) prov. for (10,000) 90,000
doubt. debts
Aman’s Capital 2,00,000 Furniture 1,20,000
Biswas’s Capital 1,50,000 Building 1,60,000
Investment 50,000
 Goodwill 30,000
5,50,000 5,50,000
.Chetan was admitted on the following terms :-
(i) Market value of Investment is ₹ 20,000.
(ii) There was a bad debts amounting to ₹ 6,000 and provision for doubt. Debts is to be maintained at
₹ 9,000.
(iii) Building was undervalued by 20%.
(iv) Stock was overvalued by 20%.
(v) Goodwill of the firm was valued at ₹ 1,00,000 and Chetan brings his share of goodwill in cash.
(vi) Chetan was to bring ₹1,30,000 as capital.
Prepare Revaluation Account and Partner’s Capital Account.
OR
1. Akum and Bakum are partners sharing profits and losses in the ratio 3:2. The Balance Sheet of the firm
on 31st March 2023 was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Creditors 60,000 Cash in Hand 10,000
Bills Payable 20,000 Debtors 70,000
Employees Provident Fund 50,000 Stock 70,000
Reserve Fund 20,000 Plant & machinery 40,000
Capital Building 80,000
Akum 90,000 Profit and Loss 20,000
Bakum 70,000 1,60,000 Loan to Rajan 20,000
3,10,000 3,10,000
The partners decided to dissolve their firm. Assets are realised as follows:
a) Debtors realised ₹ 50,000; stock realised ₹ 80,000.
b) Akum took away the machinery at an agreed value of ₹ 30,000.
c) Bakum takes over the building at a valuation of ₹ 1,00,000 and agrees to pay off creditors at a
discount of ₹ 5,000.
d) An unrecorded liability of ₹20,000 was discharged by unrecorded asset of ₹ 35,000 in full
settlement.
e) The expenses of realisation came to ₹ 5,000 and were paid by Bakum, however as per agreement
they were to be borne by Akum.
Prepare Realisation Account.
25 The Balance sheet of P,Q and R who were sharing profits and losses in the ratio 5:3:2 as at 31st 6
March 2023
Liabilities ₹ Assets ₹
Creditors 50,000 Bank 40,000
Employee Provident Fund 10,000 Stock 80,000
Profit & Loss A/c 85,000 Debtors 1,00,000
Capital A/c s: Fixed Assets 60,000
P 40,000
Q 62,000
R 33,000 1,35,000
2,80,000 2,80,000
st
P retired on 31 March 2023 and Q and R decided to share profits in future in the ratio of 2:3
respectively . The other terms on retirement were as follows:
(i) Goodwill of firm is to be valued at ₹80,000.
(ii) Fixed assets are to be depreciated by₹ 2,500.
(iii) A provision for doubtful debts on debtors was to be provided for ₹ 5,000.
(iv) A liability for claim included in creditors for ₹10,000 is settled at ₹8,000 and immediately paid
by cheque.
(v) The amount will be paid to P in the following manner: Q will contribute 1,150 and R will
 contribute the rest by cheque and maintaining a minimum balance of 15,000 in Bank account.
Pass necessary journal entries and prepare Balance sheet.
26 On 01 August, 2022, Rockstar Ltd. issued ₹ 40,00,000, 9% Debentures of ₹ 100 each at 5% Premium, 6
to be redeemed at 12% Premium on March 31, 2027. Balance in Securities Premium before issue was ₹
1,50,000. You are required to
(i) Pass entries for issue of debentures.
(ii) Pass entry for writing off loss on Issue of debentures.
(iii)Pass entries for Interest on Debentures on March 31 2023, if it is to be paid on March 31 every
year.
(iv) Prepare Loss on issue of debentures account.

PART B:- Analysis of Financial Statements

27 Current Ratio of the company is 1:1. Which of the following will not affect the Current Ratio but 1
decrease the Quick Ratio.
A. Purchase of goods on credit B. Sale of goods on credit at no profit no loss
C. Issue of debentures to vendor D. Dividend proposed by the directors
28 Which of the following is not limitation of analysis of financial statements: 1
a) Window dressing
b) Price level changes ignored
c) Subjectivity
d) Intra -firm comparison possible
OR
Which of the following is not an objective of Analysis of financial statements?

a) To judge the financial health of the firm

b) To judge the short term and long-term liquidity position of the firm
c) To judge the reason for change in the profitability of the firm
d) To judge the variations in the accounting practices of the business followed by different
enterprises
29 Read the following information: 1
31st March 2022 31st March 2023
Plant and Machinery (Cost) ₹ 20,00,000 ₹ 30,00,000
Accumulated Depreciation ₹ 4,80,000 ₹ 5,90,000
During the year a part of machinery book value ₹ 2,00,000 was sold for ₹ 1,10,000. Depreciation
charged during the year was ₹ 1,50,000.
Determine the amount to be shown under non-cash and non-operating expenses while preparing cash
flow statement.
A. ₹ 1,50,000 B. ₹ 2,00,000 C. ₹ 2,40,000 D. ₹ 50,000
OR
Read the following Statements:
Statement I: Rent received by a real estate company is an operating activity.
Statement II: Dividend paid by a finance company is financing activity.
Statement III: Current Investment is considered as Cash and Cash Equivalents while
preparing cash flow statement.
Choose the correct option:
A. Only statement I and II are correct B. Only statement II and III are correct
 C. Only statement I and III are correct D. All statements are correct
30 While preparing Cash Flow Statement, which of the following transactions will affect the cash flow 1
from Investing activities.
A. Loss on issue of debentures written off from securities premium B. Goodwill purchased
C. Building Purchased by issue of Debentures as consideration D. Issue of Bonus shares
31 Profit after tax amounted to ₹6,00,000, and tax rate was 20%. If earnings before interest and tax was ₹ 3
9,50,000 and debentures were amounted to ₹ 40,00,000 (assuming the only debt of the company),
determine Interest Coverage Ratio. Also determine the rate of interest on debentures.
32 State the head and sub head under which the following items are shown in the Balance Sheet of a 3
company as per Companies Act 2013.
a) Finished goods
b) Bank overdraft
c) Prepaid insurance
d) Debenture Redemption Reserve
e) Capital advances
f) Debentures due for redemption at the end of the year

33 Fill up the missing figures: 4

Comparative Statement of Profit & Loss
For the years ended 31st March, 2022 and 2023
Particulars Note 2022 2023 Absolute %
No. Change Change
I Revenue from Operation 40,00,000 ? 20,00,000 ?
II Less Expenses:
Cost of Material Consumed ? 30,00,000 10,00,000 ?
Other Expenses 4,00,000 ? ? 150
Total Expenses ? ? ? ?
III Profit Before Tax ? ? ? ?
OR
Prepare Common Size Statement of Profit and Loss from the following information of Amateur Ltd.
for the year ended March 31, 2023.
Particulars Amount (in ₹)
Revenue from Operations 250 % of Employee Benefit Expenses
Purchases of Stock in Trade 2,50,000
Opening Inventory 80,000
Closing Inventory 1,55,000
Employee Benefit Expenses 6,00,000
Other Income 3,00,000
10% Debentures 6,00,000
Depreciation on Tangible Assets 75,000
Amortisation of Intangible Assets 15,000
Tax rate 20%
St
34 Following is the Balance Sheet of Mevanca Limited as at 31 March 2023: 6
Particulars Note No. 31.3.2023 31.3.2022
Equities and Liabilities ₹ ₹
1. Shareholder’s fund
 a) Share Capital 3,00,000 1,00,000
b) Reserve and Surplus 25,000 1,20,000
2. Non -current liabilities
Long term Borrowings 80,000 60,000
3. Current Liabilities
a) Trade payables 6,000 20,000
b) Short term provisions 68,000 70,000
Total 4,79,000 3,70,000
Assets
1. Non -current Assets
Fixed Assets 3,36,000 1,92,000
2. Current Assets
a) Inventories 67,000 60,000
b) Trade Receivables 51,000 65,000
c) Cash and cash equivalents 25,000 49,000
d) Other Current Assets ------ 4,000
Total 4,79,000 3,70,000

Particulars 31.3.2023(₹) 31.3.2022(₹)

1. Reserves and Surplus
Surplus i.e Balance in statement of Profit and Loss 25,000 1,20,000
25,000 1,20,000
2. Long term Borrowings
10% Long term Loan 80,000 60,000
80,000 60,000
3. Short -term Provisions
Provision for Tax 68,000 70,000
68,000 70,000
4. Fixed Assets
Machinery 3,84,000 2,15,000
Accumulated Depreciation (48,000) (23,000)
Total 3,36,000 1,92,000
Additional Informations:
a) Additional loan was taken on 1st July ,2022.
b) Tax of ₹53,000 was paid during the year.

PART C:- Computerised Accounting

27 The Computerised Accounting System refers to : 1

(a) Printing of Balance Sheet and Profit and Loss Accounts using computer;
(b) Processing of accounting transaction through computer and produce records and reports;
(c) Processing of accounting related data and printing reports;
(d) None of the above.

OR

The Grouping of Accounts means the classification of data from :

(a) Asset, liabilities and capital
(b) Asset, capital, liabilities, revenue and expenses
 (c) Asset, owners equity, revenue and expenses
(d) None of the above.
28 The Ribbon allows us to: 1
(a) Create either an embedded chart or a chart sheet chart.
(b) Create only an embedded chart.
(c) Create only a chart sheet chart.
(d) Change the data values used to create the chart.
29 When navigating in a workbook, which command is used to move to the beginning of the current row? 1
a. [Ctrl]+[Home]
b. [Page Up]
c. [Home]
d. [Ctrl]+[Backspace]
30 The need of Codification is : 1
(a) The Encryption of data
(b) The Generation of mnemonic code
(c) To secure the accounts, reports, etc.
(d) Easy to process data, keeping proper records

OR

Codification of Accounts required for the purpose of :

(a) Hierarchical relationship between groups and components
(b) Data processing faster and preparing of final accounts
(c) Keeping data and information secured
(d) None of the above

31 What is the advantage of graphs over textual data? 3

32 Describe the steps to resize a chart. 3
33 How can we correct a ##### error? 4

OR

What is VLOOKUP function?

34 Define Pivot Table and explain usage? 6
 PRACTICE QUESTIONS (2022-23)
SUBJECT ACCOUNTANCY 055
CLASS XII
TIME 3 HOURS 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. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised
Accounting. Students must attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 6 marks each
9. 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)

S.No. Question Marks

Part A :- Accounting for Partnership Firms and Companies
1. Navya and Radhey were partners sharing profits and losses in the ratio of 3: 1. 1
Shreya was admitted for 1/5th share in the profits. Shreya was unable to bring
her share of goodwill premium in cash. The journal entry recorded for goodwill
premium is given below:
Date Particular LF Debit Credit
(₹) (₹)
Shreya’s Current A/c. Dr. 24,000
To Navya’s Capital A/c. 8,000
To Radhey’s Capital A/c 16,000
(Being entry for goodwill treatment passed)

The new profit-sharing ratio of Navya, Radhey and Shreya will be:
a) 41: 7: 12
b) 13:12: 10
c) 3:1: 1
d) 5:3: 2
2. Assertion (A):- Commission provided to partner is shown in Profit and Loss A/c. 1
Reason (R):- Commission provided to partner is charge against profits and is to
be provided at fixed rate.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)

3. A share of ₹ 10 each, issued at ₹ 4 premium out of which ₹ 7 (including ₹ 1 1

premium) was called up and paid up. The uncalled Capital will be ___________.
a) ₹ 7 per share b) ₹ 4 per share
c) ₹ 8 per share d) ₹ 3 per share
OR
While issuing ___________ type of Debentures, company doesn’t give any
undertaking for the repayment of money borrowed by issuing such
debentures.
a) Zero Coupon Rate Debentures b) Non-Convertible Debentures
c) Secured Debentures d) Non-Redeemable Debentures

4. Samiksha, Arshiya and Divya were partners in a firm sharing profits and losses 1
in the ratio of 5: 3: 2. With effect from 1st April 2022, they agreed to share
future profits and losses in the ratio of 2: 5: 3. Their Balance Sheet showed a
debit balance of ₹ 50,000 in the Profit and Loss Account and a balance of ₹
40,000 in the Investment Fluctuation Fund. The market value of an investment
is ₹30,000 against the book value of ₹50,000. Partners have decided, not to
show revised valued in the balance sheet and to pass an adjusting entry for it.
Which of the following is the correct treatment of the above?
a) Samiksha’s Capital A/c. Dr. 9,000
To Arshiya’s Capital A/c. 6,000
To Divya’s Capital A/c 3,000
b) Arshiya’s Capital A/c. Dr. 5,000
To Samiksha’s Capital A/c. 2,000
To Divya’s Capital A/c. 3,000
c) Arshiya’s Capital A/c. Dr. 2,000
Divya’s Capital A/c. Dr. 1,000
To Samiksha’s Capital A/c 3,000
d) Arshiya’s Capital A/c. Dr. 6,000
Divya’s Capital A/c. Dr. 3,000
To Samiksha’s Capital A/c 9,000

Or

Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3
with the capitals of ₹ 5,00,000 and ₹ 6,00,000 respectively. On 1st January
2022, Sohan and Mohan granted loans of ₹ 20,000 and ₹ 10,000 respectively to
 the firm. Determine the amount of loss to be borne by each partner for the
year ended 31st March 2022 if the loss before interest for the year amounted
to ₹ 2,500.
a) Share of Loss Sohan –₹ 1,250 Mohan – ₹ 1,250
b) Share of Loss Sohan –₹ 1,000 Mohan – ₹ 1,500
c) Share of Loss Sohan –₹ 820 Mohan – ₹ 1,230
d) Share of Loss Sohan –₹ 1,180 Mohan – ₹ 1,770

5. Vihaan and Mann are partners sharing profits and losses in the ratio of 3:2. The 1
firm maintains fluctuating capital accounts and the balance of the same as on
31st March 2022 is ₹ 4,00,000 and ₹ 4,65,000 for Vihaan and Mann
respectively. Drawings during the year were ₹ 65,000 each. As per the
partnership Deed, Interest on capital @ 10% p.a. on Opening Capital has been
allowed to them. Calculate the opening capital of Vihaan given that the
divisible profits during the year 2021-22 was ₹ 2,25,000.
a) ₹ 3,30,000
b) ₹ 4,40,000
c) ₹ 4,00,000
d) ₹ 3,00,000

6. Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of 1

premium and to be redeemed at 10% premium. At the time of writing off Loss
on Issue of Debentures, Statement of Profit and Loss was debited with ₹
2,00,000. At what rate of premium, these debentures were issued?
a) 10% b) 16%
c) 6% d) 4%

Or

Durga Ltd. issued 80,000, 10% Debentures of ₹ 100 each at certain rate of
discount and were to be redeemed at 20% 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 ₹ 5,00,000. At what rate of discount, these debentures were issued?
a) 10% b) 5%
c) 25% d) 15%

7. Attire Ltd, issued a prospectus inviting applications for 12,000 shares of ₹10 1
each payable ₹3 on application, ₹ 5 on allotment and balance on call. Public
had applied for certain number of shares and application money was received.
Which of the following application money, if received restricts the company to
proceed with the allotment of shares, as per SEBI guidelines?
a) ₹ 36,000 b) ₹ 45,000
c) ₹ 30,000 d) ₹ 32,400

8. Amay, Bina and Chander are partners in a firm with capital balances of ₹ 1
50,000, ₹ 70,000 and ₹ 80,000 respectively on 31st March, 2022. Amay decides
 to retire from the firm on 31st March, 2022. With the help of the information
provided, calculate the amount to be paid to Amay on his retirement.
There existed a general reserve of ₹ 7,500 in the balance sheet on that date.
The goodwill of the firm was valued at ₹ 30,000.
Gain on revaluation was ₹24,000.
a) ₹ 88,500 b) ₹ 90,500
c) ₹ 65,375 d) ₹ 70,500

Or

A, B and C are partners. A‘s capital is ₹ 3,00,000 and B‘s capital is ₹1,00,000. C
has not invested any amount as capital but he alone manages the whole
business. C wants 30,000 p.a. as salary, though the deed is silent. Firm earned a
profit of ₹1,50,000. How much will each partner receives as an appropriation of
profits?
a) A ₹ 60,000; B ₹ 60,000; C ₹ 30,000
b) A ₹ 90,000; B ₹ 30,000; C ₹ 30,000
c) A ₹ 40,000; B ₹ 40,000 and C ₹ 70,000
d) A ₹ 50,000; B ₹ 50,000 and C ₹ 50,000

Read the following hypothetical situation, Answer Question No. 9 and 10

Puneet and Raju are partners in a clay toys making firm. Their capitals were ₹
5,00,000 and ₹ 10,00,000 respectively. The firm allowed Puneet to get a
commission of 10% on the net profit before charging any commission and Raju
to get a commission of 10% on the net profit after charging all commission.
Following is the Profit and Loss Appropriation Account for the year ended 31st
March 2022.
Dr. Profit and Loss Appropriation Account for the year ended 31st March 2022 Cr .
Particulars Amount Particulars Amount (₹)
(₹)
To Puneet’s Capital A/c By Profit and Loss ……………
(Commission) 44,000 a/c
(------ x10/100)
To Raju’s Capital A/c -----------
(Commission)
To Profit share transferred
to :-
Puneet’s Capital A/c -----------
Raju’s Capital A/c ------------
========= ==========

9. Raju’s commission will be:- 1

a) ₹ 40,000 b) ₹ 44,000
 c) ₹ 36,000 d) ₹ 36,440
10. Puneet’s share of profit will be :- 1

a) ₹ 1,80,000 b) ₹ 1,44,000
c) ₹ 2,16,000 d) ₹ 1,60,000

11. Choose the correct sequence of the following transactions in context of 1

Division of Profits.
(i) Guarantee by Firm to Partners
(ii) Guarantee by Partners to Firm
(iii) Transfer of Profits to Profit and Loss Appropriation Account
(iv) Guarantee by Partner to Partner
a) (i); (iii) ; (iv) ; (ii) b) (iii); (i) ; (ii) ; (iv)
c) (iii) ; (ii) ; (i); (iv) d) (ii); (iii); (iv); (i)

12. If 10,000 shares of ₹10 each were forfeited for non-payment of final call money 1
of ₹ 3 per share and only 7,000 shares were re-issued @ ₹ 11 per share as fully
paid up, then what is the amount of maximum possible discount that company
can allow at the time of re-issue of the remaining 3,000 shares?
a) ₹ 28,000 b) ₹ 21,000
c) ₹ 9,000 d) ₹ 16,000

13. As per Companies Act 2013, Securities Premium Balance can be utilised for 1
which of the following purpose?
a) Issuing bonus to existing b) Providing for Premium payable
shareholders to convert partly on Redemption of Debentures.
paid up into fully paid-up
bonus shares.
c) Writing off all Capitalised d) Buy Back of Debentures
Expenditures

14. Ganga and Jamuna are partners sharing profits in the ratio of 2:1. They admit 1
Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s
capital was ₹ 1,02,000 and Jamuna’s capital was ₹ 73,000. Saraswati brings ₹
25,000 as her share of goodwill and she agrees to contribute proportionate
capital of the new firm. How much capital will be brought by Saraswati?
a) ₹ 43,750
b) ₹ 37,500
c) ₹ 50,000
d) ₹ 40,000

15. Green and Orange are partners. Green draws a fixed amount at the beginning 1
of every month. Interest on drawings is charged @8% p.a. At the end of the
year interest on Green's drawings amounts to ₹ 2,600. Monthly drawings of
Green were:
a) ₹ 8,000
 b) ₹ 60,000
c) ₹ 7,000
d) ₹ 5,000

Or

Girdhar, a partner withdrew ₹ 5,000 in the beginning of each quarter and

interest on drawings was calculated as ₹ 1,500 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. At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1
1,20,000; Cash Balance is ₹ 10,000. Other assets realised ₹ 1,50,000. Gain/Loss
in the realisation account will be:
a) ₹ 30,000 (Gain)
b) ₹ 40,000 (Gain)
c) ₹ 40,000 (Loss)
d) ₹ 30,000 (Loss)

17. Nirmala, Divisha and Sara were partners in a firm sharing profits and losses in 3
the 3:4:3. Books were closed on 31st March every year. Sara died on 1st
February, 2022. As per the partnership deed Sara's executors are entitled to
her share of profit till the date of death on the basis of Sales turnover. Sales for
the year ended 31st March 2021 was ₹ 10,00,000 and profit for the same year
was ₹ 1,20,000. Sales show a positive trend of 20% and percentage of profit
earning is reduced by 2%.
Journalise the transaction along with the working notes.

18. Amay, Anmol and Rohan entered into partnership on 1st July, 2021 to share 3
profits and losses in the ratio of 3:2:1. Amay guaranteed that Rohan’s share of
profit after charging interest on capital @ 6% p.a would not be less than ₹
36,000 p.a. Their fixed capital balances are: ₹ 2,00,000, ₹ 1,00,000 and ₹
1,00,000 respectively. Profit for the year ended 31st March, 2022 was
₹1,38,000.
Prepare Profit and Loss Appropriation A/c.

Or

Ajay, Manish and Sachin were partners sharing profits in the ratio 5:3:2. Their
Capitals were ₹ 6,00,000; ₹ 8,00,000 and ₹ 11,00,000 as on April 01, 2021. As
per Partnership deed, Interest on Capitals were to be provided @ 10% p.a. For
the year ended March 31, 2022, Profits of ₹ 2,00,000 were distributed without
providing for Interest on Capitals.
Pass an adjustment entry and show the workings clearly.
19. Anthony Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 10% discount to 3
Mithoo Ltd. from whom Assets of ₹ 23,50,000 and Liabilities of ₹ 6,00,000 were
taken over. Pass entries in the books of Anthony Ltd. if these debentures were
to be redeemed at 5% premium.

Or

Random Ltd. took over running business of Mature Ltd. comprising of Assets of
₹ 45,00,000 and Liabilities of ₹ 6,40,000 for a purchase consideration of ₹
36,00,000. The amount was settled by bank draft of ₹ 1,50,000 and balance by
issuing 12% preference shares of ₹ 100 each at 15% premium. Pass entries in
the books of Random Ltd.

20. Doremon, Shinchan and Nobita are partners sharing profits and losses in the 3
ratio of 3:2:1. With effect from 1st April, 2022 they agree to share profits
equally. For this purpose, goodwill is to be valued at two year’s purchase of the
average profit of last four years which were as follows:
Year ending on 31st March,2019 ₹ 50,000 (Profit)
Year ending on 31st March,2020 ₹ 1,20,000 (Profit)
Year ending on 31st March,2021 ₹ 1,80,000 (Profit)
Year ending on 31st March,2022 ₹ 70,000 (Loss)

On 1st April, 2021 a Motor Bike costing ₹ 50,000 was purchased and debited to
travelling expenses account, on which depreciation is to be charged @ 20% p.a
by Straight Line Method. The firm also paid an annual insurance premium of ₹
20,000 which had already been charged to Profit and Loss Account for all the
years.
Journalise the transaction along with the working notes.

21. Altaur Ltd. was registered with an authorised Capital of ₹ 4,00,00,000 divided in 4
25,00,000 Equity Shares of ₹ 10 each and 1,50,000, 9% Preference Shares of ₹
100 each. The company issued 8,00,000 Equity Shares for public subscription at
20% premium, payable ₹ 3 on application; ₹ 7 on allotment (including
premium) and balance on call. Public had applied for 10,00,000 shares. Excess
Applications were sent letters of regret.

All the dues on allotment received except on 15,000 shares held by Sanju.
Another shareholder Rocky paid his call dues along with allotment on his
holding of 25,000 shares. You are required to prepare the Balance Sheet of the
company as per Schedule III of Companies Act, 2013, showing Share Capital
balance and also prepare Notes to Accounts.

22. Charu, Dhwani, Iknoor and Paavni were partners in a firm. They had entered 4
into partnership firm last year only, through a verbal agreement. They
contributed Capitals in the firm and to meet other financial requirements, few
partners also provided loan to the firm. Within a year, their conflicts arisen due
 to certain disagreements and they decided to dissolve the firm. The firm had
appointed Ms. Kavya, who is a financial advisor and legal consultant, to carry
on the dissolution process. In the first instance, Ms. Kavya had transferred
various assets and external liabilities to Realisation A/c. Due to her busy
schedule; Ms. Kavya has delegated this assignment to you, being an intern in
her firm. On the date of dissolution, you have observed the following
transactions:
(i) Dhwani’s Loan of ₹ 50,000 to the firm was settled by paying ₹ 42,000.
(ii)Paavni’s Loan of ₹ 40,000 was settled by giving an unrecorded asset of ₹
45,000.
(iii)Loan to Charu of ₹ 60,000 was settled by payment to Charu’s brother
loan of the same amount.
(iv)Iknoor’s Loan of ₹ 80,000 to the firm and she took over Machinery of ₹
60,000 as part payment.

You are required to pass necessary entries for all the above mentioned
transactions.

23. OTUA Ltd. was registered with an authorised capital of 2,00,000 equity shares 6
of ₹ 100 each. The company offered 60,000 shares for public subscription at
25% premium. The share was payable as ₹ 40 on application and balance on
allotment, with premium. Public had applied for 85,000 shares. Pro-rata
allotment was made in the ratio of 5:4 and remaining applications were sent
letters of regret.

Mr. Anand holding 4,000 shares failed to pay allotment money and his shares
were forfeited. Out of these 3,000 shares were re-issued at a discount of ₹ 20
per share. Pass necessary entries in the books of the OTUA Ltd.

Or

Pass entries for forfeiture and re-issue in both the following cases.
(a) Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000
shares for non-payment of allotment money of ₹ 5 per share and first
and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by
him. Out of these 3,000 shares were re-issued @ ₹ 12 per share as fully
paid.

(b) Ratan Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium)

for non-payment of first call of ₹ 2 per share. Final call of ₹ 3 per share
was not yet made. Out of these 2,000 shares were re-issued at ₹ 10 per
share as fully paid.

24. X and Y were partners in the profit-sharing ratio of 3: 2. Their balance sheet as 6
at March 31, 2022 was as follows:
 Balance Sheet as at March 31, 2022
Liabilities Amount (₹) Assets Amount (₹)
Creditors 56,000 Plant and Machinery 70,000
General Reserve 14,000 Buildings 98,000
Capital Accounts: Stock 21,000
X 1,19,000 Debtors 42,000
Y 1,12,000 2,31,000 (-)Provision 7,000 35,000
Cash in Hand 77,000
3,01,000 3,01,000
Z was admitted for 1/6th share on the following terms:
(i) Z will bring ₹ 56,000 as his share of capital, but was not able to bring any
amount to compensate the sacrificing partners.
(ii) Goodwill of the firm is valued at ₹. 84,000.
(iii)Plant and Machinery were found to be undervalued by ₹ 14,000 Building
was to brought up to ₹ 1,09,000.
(iv) All debtors are good.
(v) Capitals of X and Y will be adjusted on the basis of Z’s share and
adjustments will be done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.

Or

P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1

respectively. On March 31st, 2022, the balance sheet of the firm stood as
follows:
Balance Sheet
Liabilities Amount (₹) Assets Amount (₹)
Creditors 13,000 Cash 4,700
Bills Payable 590 Debtors 8,000
Capital Accounts: Stock 11,690
P 15,000 Buildings 23,000
Q 10,000 Profit and Loss Account 1,200
R 10,000 35,000
48,590 48,590

Q retired on the above-mentioned date on the following terms:

(i) Buildings to be appreciated by ₹7,000
(ii) A provision for doubtful debts to be made at 5 % on debtors.
(iii)Goodwill of the firm is valued at ₹ 18,000 and adjustment to be made by
raising and writing off the goodwill.
(iv) ₹ 2,800 was to be paid to Q immediately and the balance in his capital
account to be transferred to his loan account carrying interest as per the
agreement.
(v) Remaining partner decided to maintain equal capital balances, by
opening current account.
 Prepare the revaluation account and partner’s capital accounts.
25. A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 6
2019. Entry for treatment of goodwill after his death was passed as follows:-

Date Particulars L.F Debit Credit

(₹) (₹)
B’s Capital A/c Dr. 1,80,000
C’s Capital A/c Dr. 1,20,000
To A’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at the
time of death of partner)

A’s profit till date of death was estimated as ₹ 1,20,000, based on the average
profits of past three years. Final dues payable to A’s executors on the date of
death was calculated as ₹ 8,40,000 out of which ₹ 2,40,000 was paid
immediately by giving him Furniture valued for the same and balance was to be
paid in three equal annual instalments starting from 30 June, 2020, together
with interest rate as specified in Section 37 of Indian Partnership Act, 1932..
Pass necessary entry for profit share to be credited to A’s Capital and also
prepare A’s executors account till final settlement.
26. Health2Wealth Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 6
each and 20,000, 8% Debentures of ₹ 100 each as part of capital employed.
The company need additional funds of ₹ 55,00,000 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% premium. These debentures
were to be redeemed at 20% premium after 4 years. These debentures were
issued on 01 October, 2021.
You are required to

(a) Pass entries for issue of Debentures.

(b) Prepare Loss on Issue of Debentures Account assuming there was
existing balance of Securities Premium Account of ₹ 2,80,000.
(c) Pass entries for Interest on debentures on March 31, 2022 assuming
interest is payable on 30 September and 31 March every year.

Part B :- Analysis of Financial Statements

(Option – I)

27. Financial statements are prepared on certain basic assumptions (pre-requisites) 1

known as___________.
a) Provision of Companies Act,2013 b) Accounting Standards
c) Postulates d) Basis of Accounting

Or

Which one of the following is correct?

 (i) Quick Ratio can be more than Current Ratio.
(ii) High Inventory Turnover ratio is good for the organisation, except when
goods are bought in small lots or sold quickly at low margins to realise
cash.
(iii) Sum of Operating Ratio and Operating Profit ratio is always 100%.
a) All are correct. b) Only (i) and (iii) are correct.

c) Only (ii) and (iii) are d) Only (i) and (ii) are correct
correct.
28. From the following calculate Interest coverage ratio 1
Net profit after tax Rs 12,00,000; 10% debentures Rs 1,00,00,000; Tax Rate 40%

a) 1.2 times b) 3 times

c) 2 times d) 5 times

29. Insurance Claim received by Albert Co. Ltd. of ₹ 5,00,000 for Loss of Machinery 1
due to theft will be recorded in Cash Flow Statement in which of the following
manner?
a) Added under Operating b) Subtracted under Operating
Activities as Extraordinary Activities as Extraordinary Item
Item and Subtracted from and Added to Operating
Operating Activities also. Activities also.
c) Added under Operating d) Subtracted under Operating
Activities as Extraordinary Activities as Extraordinary Item
Item and Outflow under and Inflow under Investing
Investing Activity also. Activities also.

Or

A company issued 20,000; 9% Debentures of ₹ 100 each at 10% Discount. These

debentures were to be redeemed at 15% Premium at the end of 5 years. The
balance in Securities Premium Account as on the date of Issue was ₹ 3,70,000.
How this transaction will be reflected in Cash Flow Statement?

a) Added ₹ 1,30,000 under b) Added ₹ 5,00,000 under

Operating Activities as Loss on Operating Activities as Loss on
Issue of Debentures written Issue of Debentures written
off and Inflow of ₹ 20,00,000 off and Inflow of ₹ 18,00,000
under Financing Activities. under Financing Activities.
c) Added ₹ 1,30,000 under d) Added ₹ 5,00,000 under
Operating Activities as Loss on Operating Activities as Loss on
Issue of Debentures written Issue of Debentures written
off and Inflow of ₹ 18,00,000 off and Inflow of ₹ 20,00,000
under Financing Activities. under Financing Activities.

30. From the following information find out the inflow of Cash by sale of Office 1
 equipment’s
31st March, 2022 31st March, 2021
Office Equipment ₹ 2,00,000 ₹ 3,00,000

Additional Information:
Depreciation for the year 2021-22 was Rs. 40,000
Purchase of Office Equipment purchased during the year Rs. 30,000
Part of Office Equipment sold at a profit of Rs. 12,000
a) ₹ 1,00,000 b) ₹ 1,02,000
c) ₹ 90,000 d) ₹ 1,12,000

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) Current maturities of long term debts
(ii) Furniture and Fixtures
(iii) Provision for Warranties
(iv) Income received in advance
(v) Capital Advances
(vi) Advances recoverable in cash within the operation cycle

32. Lala Ltd. and Bala Ltd. use different accounting policies for inventory valuation. 3
These variations leave a big question mark on the cross-sectional analysis and
comparison of these two firms was not possible.

Identify the limitation of Ratio Analysis highlighted in the above situation. Also
explain any two other limitations of Ratio Analysis apart from the identified
above.

33. Determine Return on Investment and Net Assets Turnover ratio from the 4
following information:-

Profits after Tax were ₹ 6,00,000; Tax rate was 40%; 15% Debentures were of
₹20,00,000; 10% Bank Loan was ₹ 20,00,000; 12% Preference Share Capital ₹
30,00,000; Equity Share Capital ₹ 40,00,000 ; Reserves and Surplus were ₹
10,00,000; Sales ₹ 3,75,00,000 and Sales Return ₹ 15,00,000.

Or

Debt to Capital Employed ratio is 0.3:1. State whether the following

transactions, will improve, decline or will have no change on the Debt to
Capital Employed Ratio. Also give reasons for the same.
(i) Sale of Equipments costing ₹ 10,00,000 for ₹ 9,00,000.
(ii) Purchased Goods on Credit for ₹ 1,00,000 for a credit of 15 months,
assuming operating cycle is of 18 months.
(iii) Conversion of Debentures into Equity Shares of ₹ 2,00,000.
 (iv) Tax Refund of ₹ 50,000 during the year.

34. Read the following hypothetical text and answer the given questions on the basis of the 6
same:
Aashna, an alumnus of CBSE School, initiated her start up Smartpay, in 2015.
Smartpay is a service platform that processes payments via UPI and POS, and
provides credit or loans to their clients.. During the year 2021-22, Smartpay issued
bonus shares in the ratio of 5:1 by capitalising reserves. The profits of Smartpay in the
year 2021-22 after all appropriations was ₹ 7,50,000. This profit was arrived after
taking into consideration the following items: -

Particulars Amount (₹)

Interim Dividend paid during the year 90,000
Depreciation on Machinery 40,000
Loss of Machinery due to fire 20,000
Insurance claim received for Loss of Machinery 10,000
due to Fire
Interest on Non-Current Investments received 30,000
Tax Refund 20,000

Additional Information:
Particulars 31.3.22 (₹) 31.3. 21(₹)
Equity Share Capital 12,00,000 10,00,000
Securities Premium Account 3,00,000 5,00,000
General Reserve 1,50,000 1,50,000
Investment in Marketable Securities 1,50,000 1,00,000
Cash in hand 2,00,000 3,00,000
Machinery 3,00,000 2,00,000
10% Non-Current Investments 4,00,000 3,00,000
Bank Overdraft 2,50,000 2,00,000
Goodwill 30,000 80,000
Provision for Tax 80,000 60,000

(i) Goodwill purchased during the year was ₹ 20,000.

(ii) Proposed Dividend for the year ended March 31, 2021 was ₹ 1,60,000 and for
the year ended March 31,2022 was ₹ 2,00,000.

You are required to:

1. Calculate Net Profit before tax and extraordinary items.
2. Calculate Operating profit before working capital changes.
3. Calculate Cash flow from Investing activities.
4. Calculate Cash flow from Financing activities.
5. Calculate closing cash and cash equivalents.
 Part B :- Computerised Accounting
(Option – II)

27. The syntax of PMT Function is ___________ 1

(a) PMT (rate, pv, nper, [fv], [type])
(b) PMT (rate, nper, pv, [fv], [type])
(c) PMT (rate, pv, nper, [type], [fv])
(d) PMT (rate, nper, pv, [type], [fv])

Or

In Excel, the chart tools provide three different options _________, _________ and
__________ for formatting.

(a) Layout, Format, DataMaker

(b) Design, Layout, Format
(c) Format, Layout, Label
(d) Design, DataMaker, Layout

28. Which formulae would result in TRUE if C4 is less than 10 and D4 is less than 100? 1
(a) =AND(C4>10, D4>10)
(b) =AND(C4>10, C4<100).
(c) =AND(C4>10, D4<10).
(d) =AND (C4<10, D4,100)

29. Which function results can be displayed in Auto Calculate? 1

(a) SUM and AVERAGE
(b) MAX and LOOK
(c) LABEL and AVERAGE
(d) MIN and BLANK
Or

When navigating in a workbook, which command is used to move to the beginning of

the current row?
(a) [Ctrl]+[Home]
(b) [Page Up]
(c) [Home]
(d) [Ctrl]+[Backspace]

30. What category of functions is used in this formula: =PMT (C10/12, C8, C9,1) 1
(a) Logical
(b) Financial
 (c) Payment
(d) Statistical

31. State any three types of Accounting Vouchers used for entry in Tally software. 3

32. State any three requirements which should be considered before making an investing 3
decision to choose between ‘Desktop database’ or ‘Server database’.

33. State the features of Computerized Accounting system. 4

Or

Explain the use of ‘Conditional Formatting’.

34. Describe two basic methods of charging depreciation. Differentiate between both of 6
them.