poe ee et i Time Allowed: 3 hours Maximum 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 1. Xand Y are partners with capitals of € 39,000 and % 27,000. They admit Z as partner [1] with 2) share in profit of the firm. Z brings % 24,000 as capital. 2's Share for premium for goodwill: a) 8,000 b) 12,000 <) 6,000 d) 7,000 2. Assertion (A): Partners are both Agents and Principals. ret] Reason (R): As an agent, a partner represents other partners and binds them through his acts. As a principal, he is bound by the act of other partners. a) Both A and R are true and R is b) Both A and R are true but R is the correct explanation of A. not the correct explanation of A. c) Ais true but R is false. d) A is false but R is true. 3. Y Ltd. forfeited 400 shares of € 10 each, 87 called up, for non-payment of the first [1] call of %2 per share. Out of these, 300 shares were reissued for % 6 per share as % 7 paid up. What is the amount to be transferred to Capital Reserve Account? A a a aa) % 300 b) % 2,100 c) 81,200 d) % 1,700 oR A Co.Ltd. issued % 40,000; 12% Debentures at a discount of 10% redeemable at par. Pass Journal Entries a) Bank A/c Dr. 40,000 b) Bank A/c Dr. 36,000 To 12% Debentures A/c 36,000 Discount on Issue of Debentures To Discount on Issue of Alc Dr. 4,000 Debentures A/c 4,000 To 12% Debentures A/c 40,000 ¢) 12% Debenture Application A/c —_d) Bank A/c Dr. 36,000 Dr. 36,000 To 12% Debenture Application Discount on Issue of Debentures A/c 36,000 A/c Dr. 4,000 To 12% Debentures A/c 40,000 Isha and Naman were partners in a firm sharing profits and losses in the ratioof 2: [4] 3. With effect from 15t April, 2022 they agreed to share profits and losses equally. Due to change in the profit sharing ratio, Isha's gain or sacrifice will be: a) Sacrifice b) Sacrifice 2 ¢) Gain +5 d) Gain 2 oR Which of the following is legally qualified to start a partnership business? a) A person disqualified by Law b) Lunatic person ¢) Solvent person d) Minor Partner ‘A and B were partners in a firm sharing profits and losses in the ratio of 3:2.0n15t_ [4] April, 2021 the balances in their capital accounts were € 1,50,000 and € 2,00,000 respectively. The partnership deed provided that interest on partners capital will be allowed @ 10% per annum. During the year ended 31° March, 2022, the firm incurred a loss of X 10,000. Interest on A's capital will be: a) % 6,000 b) Nil c) = 15,000 d) 9,0006. What type of debentures can be issued by an Indian company? rea] a) Unsecured b) Secured c) Convertible d) Redeemable oR Interest on Debentures issued as Collateral Security is a) None of these b) paid ) may or may not be paid d) not paid 7. Assertion (A): A company may forfeit the shares for non-payment of calls amount —_ [1] depend upon the Articles of Association of the company. Reason (R): Shares can be forfeited only if itis allowed by the Articles of Association of the company. a) Both A and R are true and Ris b) Both A and R are true but R is the correct explanation of A. not the correct explanation of A. ¢) Ais true but Ris false. d) Ais false but R is true. 8 Gaining Ratio is applicable in the calculation of: a) a) For the distribution of Reserves _b) For distribution of existing and profits goodwill among partners c) Retiring partner's share of d) For the Calculation of profit goodwill only oR Zis a partner in a firm. He withdrew regularly % 2,000 every month for the six months ending 315t March, 2023. If interest on drawings is charged @ 8% p.a, the interest charged will be: a) 240 b) 8 280 c) = 200 d) = 480 Question No. 9 to 10 are based on the given text. Read the text carefully and answer [2] the questions: A, Band C started a firm on 1st October, 2020 sharing profits equally. A drew regularly % 4,000 in the beginning of every month for the six months ended 31st March, 2021. B drew regularly € 4,000 at the end of every month for the six months ended 31st March,2021. C drew regularly % 4,000 in the middle of every month for the six months ended 31st March, 2021. OD is charged at 5% p.a. 9. What is the total amount of drawings of the partners? a) 96,000 b) &1,44,000 c) 8 24,000 d)& 72,000 10. What is the interest on drawings of B? a) % 300 b) 250 c) 8350 d)% 200 11. _ In the absence of a partnership deed, partners, are not entitled to receive: (a) a) Salaries b) Commission c) Interest on Capital 4d) All of these ( i i ( i ( ( i l ( i i i i i ( 12, Neeraj Ltd. forfeited 1,000 shares of € 10 each issued at 20% premium (88 Called [1] | up) on which application of each and allotment of € 5 each (including premium) has i been received. Out of these, 700 shares were reissued for & 6 per share (28 paid tl up). What is the amount transferred to Capital Reserve? { i l ( ( i i ( i ( i i ( i i ( i i l ( i a) % 3,500 b)%700 ¢) 1,400 d) %2,100 13. can be used to write off Capital losses. (a) a) Capital Reserve b) Discount on issue of Sweat Equity Shares ) Reserve Capital d) Issued Capital 14. _ Ifa fixed amount is withdrawn by a partner at the end of each quarter, interest on [1] drawings on the total amount withdrawn will be calculated for: a) 6 months b) 3 months c) 9months d) 45 months 15. Girish and Balwant share profits in the ratio of 2 : 1. Vinod is admitted with 1/5 (4) share in profits. Vinod acquires 2/3 of his share from Girish and 1/3 of his share from Balwant. The new ratio will be:16. 17. 18. a)8:4:3 by2:1:1 ¢) 13:23:12 d) 23:13:12 oR A and B are partners sharing profits in the ratio of 7 : 3. They decided to admit Rishi as a new partner and new profit sharing ratio is 4 : 3 : 3, Rishi Paid % 12,000 as his share of goodwill. Amount of goodwill transfer to the capital account of B: a) 4800 b) 3600 ¢) 1200 d) Nil Total creditors of the firm (already transferred to Realisation Account) were €30,000. [1] Out of this, creditors waived their claim of 85,000 while the rest agreed to allow discount @ 10% of their respective claim. Journal Entry would be a) b) Realisation |, | 95,000 Bank A/c |Dr. |22,500 Ale To To Bank Realisation 22,500 Ale 25,000) lave c) d) Mohan's | 12.500 Bank A/c _|Dr. |25,000 Capital A/c To To Realisation 25,000 Realisation 22,500 Alc Alc The capital of the firm of Amit and Sonu is € 10,00,000 and the market rate of Bl interest is 15%. Annual salary to the partners is € 60,000 each. The profit for the last three years were % 2,80,000, € 3,80,000 and € 4,20,000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profits. Calculate the goodwill of the firm. Arun and Barun were partners sharing profits in the ratio of 3 : 2. Their capitals were [3] % 50,000 and & 30,000 respectively. Partnership deed provided for interest on capital @ 6% p.a. to Arun and Barun and quarterly salary of € 1,000 to Barun. Arun had given a loan of € 1,00,000 on 15* October, 2021 to the firm without any agreement about interest. For the year 2021-22, the profits earned were % 26,800. Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.19. 20. 21. oR List any two items that may appear on the debit side of the Capital Account of a partner when the capitals are fluctuating. X Ltd. purchased assets of ¥ Ltd. as under: (3) Plant and Machinery '88,00,000 Land and Building '872,00,000 The purchase consideration was %80,00,000. €20,00,000 were paid through bank and the remaining by issue of 6% debentures of €100 each at a premium of 20%. Pass necessary journal entries in the books of X Ltd. oR State any three purposes other than ‘issue of bonus shares’ for which securities premium can be utilised. Harshit and Himanshu are partners sharing profits equally. They admit Sunil into [3] partnership for equal share. Goodwill was agreed to be valued at two years! purchase of average profit of last four years, Profits for the last four years were: Year Ended Normal Profit/(Loss) (X) 31%t March, 2020 70,000; 315t March, 2021 1,00,000; 31%t March, 2022 55,000 (Loss); 31%t March, 2023 1,45,000. The books of account of the firm revealed as follows: i. Firm had abnormal gain of € 10,000 during the year ended 315 March, 2020. ii, Firm incurred abnormal loss of € 20,000 during the year ended 315* March, 2021. ili, Repairs to car amounting to % 50,000 was wrongly debited to vehicles on 15¢ May, 2022. Depreciation was charged on vehicles @ 10% on Straight Line Method. Calculate the value of Goodwill. Eastern Company Limited issued 40,000 shares of 10 each tothe publicfor the [4] subscription out of its share capital, payable as € 4 on application, €3 on the allotment, and the balance on 1st and final call. Applications were received for 40,000 shares. The company made the allotment to the applicants in full. All the amounts due on the allotment and first and final call were duly received. Give the journal entries in the books of the company.23. 24, Nisha, Kishor and Rohan were partners in a firm sharing profits and losses in the [4] ratio of 5 : 3 : 2. The firm was dissolved on 315t March, 2023 by the order of the court. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place: a. An unrecorded liability of the firm of € 45,000 was paid by Nisha. b. Creditors, to whom ® 67,000 were due to be paid, accepted furniture at * 35,000 and the balance was paid to them in cash. c. Kishor had given a loan of % 18,000 to the firm which was paid to him. d, Stock worth % 85,000 was taken over by Rohan at € 72,000. ¢. Expenses on dissolution amounted to € 6,000 and were paid by Kishor. £. Loss on dissolution amounted to € 40,000. Pass the necessary journal entries for the above transactions in the books of the firm. Instant Tools Ltd. invited applications for issuing 2,00,000 equity shares of &10 each [6] at a premium of ® 2 per share. The amount was payable as follows: On Application 8S per share (including premium) ‘On Allotment &3 per share ‘On First and Final Call Balance Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment. All calls were made and duly received except allotment and first and final call from Neeraj who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ¥ 48,000 as fully paid. Pass the necessary journal entries for the above transactions in the books of Instant Tools Ltd. Open calls-in-arrears account wherever required. OR Spencer Paints Ltd. was registered with an authorised capital of < 50,00,000 divided in 5,00,000 equity shares of € 10 each. Company issued 2,00,000 equity shares at a premium of & 3 per share, payable as follows: € 4 on Application; £5 on Allotment (including premium); % 2 on First Call and < 2 on Second and Final Call. All shares were subscribed and all the money was duly received. Share issue expenses amounted to 75,000 which were fully written off against Securities Premium. Prepare necessary Journal Entries and Bank Account. The Balance Sheet of Sunder and Chand who share profits and losses in the ratio of [6] 3: 2.as at 31st March, 2007 as follows :BALANCE SHEET as at 31.3.2007 [ Liabilities | (Rs) Assets | (Rs) (Creditors 40,000 Bank '800 Profit and Loss A/c 5,000 Debtors 10,000 [Sunder’s Capital [50,000 Stock [57,200 [chand's Capital [75,000 Furniture [37,000 | | Machinery [45,000 | | Goodwill [20.000 1,70,000 1,70,000 On 1.4.2007 Vishwash was admitted into partnership on the following terms : a. The new profit sharing ratio shall be 1:2: 2. b. Vishwash is to bring his capital of Rs 50,000 and to pay Rs 20,000 as his share of goodwill in the firm. c. Existing goodwill is to be written off. d. The other assets be revalued as under : Machinery Rs 50,200; Furniture Rs 30,000; Stock Rs 62,000; Debtors Rs 12,000. Prepare Revaluation Account, Partners’ Capital Accounts, Bank Account and Balance Sheet of the new firm as at 1.4.2007. OR Lokesh, Mansoor and Nihal were partners in a firm sharing profits as 50%, 30% and 20% respectively. On 31st March, 2014, their balance sheet was as follow: Amount Amount Liabilities (Rs) Assets (Rs) Creditors Cash 68,000 Provident Fund Stock 38,000 Investment Fluctuation Fund Debtors 94,000 Capital A/cs: (-) Provision 6,000 88,000 Lokesh 1,40,000 Investments 80,000 Mansoor 80,000 ‘Goodwill 40,000 Nihal 50,000 2,70,000 | Profit and Loss 20,000 3,34,000 3,34,00025, On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms: i. Firm’s goodwill was valued at Rs 1,02,000 and it was decided to adjust Mansoor’s share of goodwill into the capital accounts of the continuing partners. ji, There was a claim for workmen's compensation to the extent of Rs 12,000 and investments were brought down to Rs 30,000. rovision for bad debts was to be reduced by Rs 2,000. iv, Mansoor was to be paid Rs 20,600 in cash and the balance will be transferred to his loan account which was paid in two equal instalments together with interest @ 10% per annum. v. Lokesh’s and Nihal's capitals were to be adjusted in their new profit sharing ratio by bringing in or paying off cash as the case may be. Prepare revaluation account and partners’ capital accounts. X, Y, and Z were partners sharing profits in the ratio 3: 2: 1. On 31st March 2008, [6] their Balance Sheet stood as under : Liabilities ‘Amt(Rs.) Assets Amt(Rs.) Capitals: (cash at Bank 70,000 xX 75,000 Investments | 50,000 y 70,000 Patents 15,000 Zz 50,000 | 1,95,000 stock 25,000 Creditors Debtors 20,000 General Reserve Buildings Machinery 36,000 2,91,000 2,91,000 Z died on May 31st, 2008. It was agreed that a. Goodwill was valued at 3 years’ purchase of the average profits of the last five years, which were 2003: Rs. 40,000; 2004: Rs. 40,000; 2005: Rs. 30,000; 2006: Rs. 40,000 and 2007: Rs. 50,000. b. Machinery was valued at Rs. 70,000, Patents at Rs. 20,000 and Buildings at Rs. 66,000. ¢. For the purpose of calculating 2’s share of profits until the date of death, it was agreed that the same be calculated based on the average profits for the last 2 years. d. The executor of the deceased partner is to be paid the entire amount due by means of a cheque.26. 27. 28. 29, Prepare Z's Capital Accounts to be rendered to the executor and also a journal entry for the settlement of the amount due to 2's executor. Govind Ltd. issued 20,000, 11% Debentures of & 100 each, payable as follows: [6] 25 on application; % 35 on allotment and % 40 on first and final call. All the debentures were applied. A, the holder of 500 debentures paid the entire amount on his holding on allotment and B, the holder of 100 debentures failed to. pay the allotment and final call. Pass entries. Part B :- Analysis of Financial Statements For whom, analysis of financial statements is not significant? (1) i. Share Market ii. Taxing Officer ili, Chief Military Officer iv. Shareholder a) Option (ii) b) Option (i) ¢) Option (iii) d) Option (iv) OR Securities Premium Reserve is shown under: a) Current Liabilities b) Share Capital c) Reserve and Surplus d) Short term provisions Revenue from Operations (Sales) X 8,00,000; G.P. 25% on Cost; Office Exp. % 25,000; [1] Selling Exp. % 15,000; Loss on Sale of Plant % 10,000. Operating Ratio will be: a) 81.25% b) 86.25% c) 85% d) 80% As per Accounting Standard-3, Cash Flow is classified into ( a) Operating activities and b) Investing activities and financing financing activities activities ©) Operating activities and investing _d) Operating activities, financing activities activities and investing activities OR Which of the following is not source of cash?a) Dividend received b) Issue of shares c) Purchase of machinery d) Sale of asset 30. _ Which of the following transactions are shown under financing activities while fet] preparing cash flow statement: i. Issue of Equity Shares ii, Cash Received from Debtors ili, Redemption of Debentures iv. Cash Paid Against Trade Payables Choose the correct option: a) (i), (ii) and (iv) b) (i) and (iii) ¢) (i) and (ii) d) (i) 31. Under which major heads and sub-heads the following items will be placed inthe [3] Balance Sheet of a company as per revised Schedule VI, Part | of the Companies Act, 1956 (Schedule Ill, Part | of the Companies Act, 2013)? i. Accrued Incomes ii, Loose Tools ili, Provision for Employees Benefits iv, Unpaid Dividend v. Short-term Loan vi. Long-term Loans 32. Operating Cost & 3,40,000; Gross Profit Ratio 20%; Operating Expenses % 20,000. [3] Calculate Operating Profit Ratio. 33. _ From the following Statement of Profit and Loss of PP Ltd. prepare aCommon Size [4] Statement of Profit and Loss for the year ended 31.3.2021 and 31.3.2022: 2021-2022 2020-2021 Particulars ss a Revenue from operations 20,00,000 10,00,000 Other income |s,00,000 5,00,000 Expenses 10,00,000 7,00,000 Tax Rate 50% oR Prepare a Common Size Balance Sheet of X Ltd. from the following information:31-3-2023, prepare a Cash Flow Statement: 31.3.2023 | 31.3.2022 |Current Assets 28.80 22.80 Non-Current Investments 180 1.20 Property, Plant and Equipment and intangible Assets 41.40 36.00 ‘Share Capital 30.00 30.00 Reserves & Surplus 12.00 7.20 Non-Current Liabilities 12.60 12.00 (Current Liabilities 17.40 10.80 From the following Balance Sheet of Ravi Ltd. and the additional information ason [6] Ravi Ltd. Balance Sheet as at 31-3-2023 ardleulars, Note |31-3-23 |31-3-22 No. (3) (2) 1. [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 1.| Assets (1) Non-Current Assets Property, Plant and Equipment and Intangible |Assets: (i) Property, Plant and Equipment 5 '9,80,000 |6,35,000 (ii) Intangible Assets 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 Note No, Particulars '31-3-23 () |31-3-22(%) 1. Reserves 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 Borrowings 12% Debentures 5,00,000 |3,00,000 '5,00,000 _|3,00,000 Short-term Borrowings Bank Overdraft 1,15,000 _|42,000 1,15,000 _|42,000 4. Short-terms Provisions Provision for Tax 1,18,000 _ [46,000 1,18,000 _|46,000 5. ‘Tangible Assets Plant and Machinery 11,00,000 |7,50,000 Less: Accumulated Depreciation (220,000) [(1,15,000) '9,80,000 _|6,35,000 6. Intangible Assets Goodwill 2,68,000 _[1,70,000 2,68,000 _|1,70,000 Additional Information: 12% debentures were issued on 1%t September, 2022.