Guess Paper 1

PART – A
(Accounting for Partnership Firms and Companies)

Question 1.
Lal and Bal are partners in a firm sharing profits and losses in the ratio of 2: 1. Their capitals
were ₹ 1,20,000 and ₹80,000 as on April 01, 2022. Lal withdrew ₹6,000 at the end of each
month. Interest charged by the firm on his drawing was ₹2,640. Interest rate on drawing will
be:
(a) 6% p.a. (b) 9% p.a. (c) 8% p.a. (d) 12% p.a.

Question 2.
Assertion (A): The Capital Account of partner, in case of fluctuating capital method, always
shows a credit balance.
Reason (R): All losses are debited to Capital Accounts of the partners, so Capital Account may
also show the debit balance.
(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.

Question 3.
The Directors of a Company forfeited 200 shares of ₹10 each, for the non- payment of first call
of ₹3 per share. The Final call of ₹4 per share has not been made. These shares were reissued
at ₹7 per share as fully paid. The amount to be transferred to capital reserve is:
(a) ₹1,400 (b) ₹800 (c) Nil (d) ₹1,200
OR
Alok Ltd. issued 10,000, 8% debentures of ₹100 each at a discount of 5%. The debentures are
redeemable at a premium of 10% after 5 years. The company has the following balances
appeared in the balance sheet:
Securities premium ₹40,000
Capital Reserve ₹60,000
Statement of Profit and Loss ₹6,50,000
The amount of loss on redemption of debentures should be charged from:
(a) ₹1,50,000 from Statement of Profit and Loss
(b) ₹40,000 from Securities Premium, ₹60,000 from Capital Reserve and ₹50,000 from
Statement of Profit and Loss.
(c) ₹40,000 from Securities Premium and ₹1,10,000 from Statement of Profit and Loss.
(d) ₹40,000 from Securities Premium and ₹60,000 from Statement of Profit and Loss.

Question 4.
P and Q are partners sharing profits and losses in the ratio of 5: 2. R is admitted as a new
partner for 1/3th share of profit. He brings ₹80,000 for his share of premium which is
distributed between P and Q as ₹40,000 each. The new profit sharing ratio between P, Q and
R will be:
(a) 19:6:12 (b) 23:5:14 (c) 1:1:1 (d) 5:2:1
OR

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Diwaker and Harman are equal partners in a Firm. Diwaker has given a guarantee to Harman
that his share of profit would not be less than ₹45,000 in any year. At the end of the year 31st
march, 2023, the firm suffered a loss of ₹80,000. Calculate the amount of deficiency to be
borne by Diwaker.
(a) ₹ 45,000 (b) ₹85,000 (c) ₹80,000 (d) ₹1,25,000

Question 5.
Tina and Leena are partners in a firm sharing profit in the ratio of 3: 2. With effect from 1st
April 2023 they decided to share future profit in the ratio of 2 3. Goodwill of the firm was
valued on that date at ₹60,000. Adjustment entry was:
(a) Dr. Tina's Capital A/c, Cr. Leena's Capital A/c by ₹12,000
(b) Dr. Leena's Capital A/c, Cr. Tina's Capital A/c by ₹60,000
(c) Dr. Tina's Capital A/c, Cr. Leena's Capital A/c by ₹60,000
(d) Dr. Leena's Capital A/c, Cr. Tina's Capital A/c by ₹12,000

Question 6.
Zora Ltd. purchased assets of the value of ₹5,50,000 from vendor and settled purchase
consideration 50% by cheque and balance by issuing 12% Debentures of ₹50 each at a
premium of 10%. The number of debentures issued by Zora Ltd were:
(a) 5,500 debentures (b) 5,000 debentures
(c) 10,000 debentures (d) 11,000 debentures
OR
Which of the following statements is incorrect about debentures?
(a) Bearer debentures are the debentures which can be transferred by way of delivery.
(b). There are no restrictions on the issue of debentures at a discount.
(c) Debentures can be issued for consideration other than cash.
(d) A debenture is an oral acknowledgement of debt by a company.

Question 7.
Assertion (A): The company has to get minimum subscription within 120 days from the date
of the issue of the prospectus.
Reason (R): If the company fails to receive the minimum subscription, the company can
proceed for the allotment of shares and application money only after 130 days of
the date of issue of prospectus.
(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) (A) is correct but (R) is incorrect.

Question 8.
Astha, Nishtha and Misha are partners sharing profits and losses in the ratio of 3:4: 5. Misha
retires and it is decided that Astha and Nishtha will take the share of Misha in the ratio of 4: 3,
new profit sharing ratio will be:
(a) 4:3 (b) 35:47 (c) 41:43 (d) 3:4
OR
A, B and C are equal partners in a firm. C retires and his capital account after making
adjustment for reserves and profit on revaluation exists at ₹80,000. A and B have agreed to
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10/11
pay him ₹95,000 in full settlement of his claim. A and B also decided to share profit equally in
future. Journal entry for treatment of goodwill will be:
(a) C's Capital A/c Dr. 95,000
To A's Capital A/c 42,500
To B's Capital A/c 42,500
(b) A's Capital A/c Dr. 45,000
B's Capital A/c Dr. 45,000
To C's Capital A/c 90,000
(c) C's Capital A/c Dr. 15,000
To A's Capital A/c 7,500
To B's Capital A/c 7,500
(d) A's Capital A/c Dr. 7,500
B's Capital A/c Dr. 7,500
To C's Capital A/c 15,000

Read the following hypothetical situation, answer Question No. 9 and 10.
Vikram, Lander and Pargyan are partners sharing profits in the ratio of 3:21. Their capitals
were ₹3,00,000, ₹2,00,000 and ₹1,00,000 as on April 01, 2022. Partners are entitled to
interest on capital @ 8% per annum. Pargyan is given a guarantee that his share of profit, in
any year will not be less than ₹38,000. Shortfall if any, to be borne by Vikram. Following is the
Profit and Loss Appropriation Account for the year ended 31st March 2023.

Profit and Loss Appropriation A/c

Dr. for the year ending 31st March, 2023 Cr.
Particulars Amount () Particulars Amount ()
To Interest on Capital: By Profit and Loss A/c ………………..
Vikram 24,000
Lander 16,000
Pargyan 8,000 48,000
To Profit transferred to:
Vikram …………..
Lander 60,000
Pargyan …………… ……………………

……………………. ………………….

Question 9.
Net profit of the year is:
(a) ₹1,45,000 (b) ₹2,80,000 (c). ₹2,28,000 (d) ₹5,26,000

Question 10.
Deficiency borne by Vikram will be:
(a) ₹8,000 (b) ₹12,000 (c) ₹16,000 (d) ₹6,000

Question 11.
(i) Dissolution of partnership firm does not result into reconstitution of a firm.
(ii) Dissolution of partnership means economic relationship among partners comes to an end.
(iii) At the time of dissolution of partnership firm, provision against assets are not to be paid.
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(iv) Final payments of the partners on their capital accounts are to be paid first at the time of
dissolution.
Choose the correct option:
(a) Only (i) and (ii) (b) Only (ii) and (iii)
(c) Only (iii) and (iv) (d) Only (i) and(iii)

Question 12.
RFS Ltd. issued a prospectus inviting applications for₹ 20,000 shares of ₹20 each payable ₹5
on application, ₹7 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) ₹1,00,000 (b) ₹1,10,000 (c) ₹90,000 (d) ₹80,000

Question 13.
On dissolution of a firm, its Balance Sheet shows the following balances:
Liabilities Amount (₹) Assets Amount (₹)
Outsider Liabilities 70,000 Tangible Assets 2,00,000
Capitals 2,80,000 Intangible Assets 1,50,000

3,50,000 3,50,000

Find the profit/loss on realisation if no information is given about the

realised value of assets and payment of liabilities:
(a) NIL (b) Profit ₹1,50,000
(c) Loss ₹1,50,000 (d) Profit ₹2,80,000

Question 14.
Yuvi Ltd. has issued 40,000 Equity Shares of ₹10 each. When the final call of ₹3 was made, all
the money were received except the final call on 1,200 Equity Shares. These 1,200 Equity
Shares will be shown as
(a) Subscribed and Fully Paid-up (b) Capital Reserve
(c) Share Forfeiture (d) Subscribed but not Fully Paid-up

Question 15.
A, B and C are partners sharing profits and losses in the ratio of 5:3:2. A died on 1st January,
2023. According to the agreement the share of profits of a deceased partner up to the date of
the death is to be calculated on the basis of the average profits for the last four years which is
₹1,80,000. A's share of profit till the date of death will be:
(a) ₹90,000 (b) ₹67,500 (c) ₹60,000 (d) 35,600
OR
A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. On June 17,
2023 C died. Accounts are closed on March 31 every year. The sales for the year 2022-23
were ₹12,00,000 and the profits were 1,44,000. The sales for the period from April 1, 2023 to
June 17, 2023 were ₹2,21,000. The share of deceased partner in the current year's profits on
the basis of sales is:
(a) ₹35,000 (b) ₹20,000 (c) ₹4,420 (d) ₹1,800
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Question 16.
Tina and Ansh are partner in a firm sharing profit in the ratio of 5: 2. Their capitals on 31st
March, 2023 are ₹2,50,000 and ₹1,70,000 respectively. On that date they decided to admit
Pooja as a new partner for 1/3 share of profit and she brought her proportionate capital. Find
out the amount of capital brought by Pooja.
(a) ₹2,00,000 (b) ₹2,40,000 (c) ₹1,25,000 (d) ₹2,10,000

Question 17.
L, M and N are partners sharing profit and losses in the ratio of 5:3: 2. L retires from the firm
on 1st April, 2023. His capital account showed a credit balance of ₹84,000 after all necessary
adjustment. It was decided to pay in two equal annually instalments together with interest @
8% p.a. Prepare L's loan account till it is finally closed.

Question 18.
A business has earned average profits of ₹1,50,000 during the last year and the normal rate of
return in similar business is 15%. The assets of the business were ₹14,00,000 and its external
liabilities ₹6,00,000.
Find out the value of goodwill by
(i) Capitalisation of super profit method.
(ii) Super profit method if the goodwill is valued at 2 years' purchase of super profit.
OR
Nick, Peter and Paul were partners sharing profits and losses in the ratio of 3:2:1. They
decided to share future profits and losses equally with effect from 1.4.2023. The goodwill of
the firm was valued on that date ₹2,10,000. Pass necessary Journal Entry for the treatment of
goodwill on change in profit sharing ratio of Nick, Peter and Paul.

Question 19.
Rower Ltd. made the first call of ₹4 per share on its ₹1,60,000 equity shares. Kamal, a
shareholder, holding 2,400 shares paid the second and final call amount along with the first
call money and another shareholder Mohan holding 500 shares did not paid both the calls.
The second and final call amount was ₹3 per share. Pass necessary Journal entries for first call
and second and final call using the 'Calls-in-Arrears Account' and 'Calls-in- Advance Account'.
OR
Lona Ltd. purchased a running business of a company and paid 20% of total purchase
consideration price by cheque of ₹8,00,000 and the balance by issuing 8% Debentures of
₹100 each at a premium of 25%. The assets and liabilities consisted of the following:
Plant ₹16,50,000
Stock ₹11,50,000
Debtors ₹12,50,000
Creditors ₹4,70,000
Give necessary Journal entries in the books of Lona Ltd.

Question 20.
A, B and C were partners sharing profit in proportionate to their capital. Their fixed capitals
were ₹90,000; ₹60,000 and ₹30,000 respectively. According to the partnership deed they
were entitled:
(a) Interest on capital at 8% p.a.
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10/11
(b) A was entitled to a commission of ₹6,000.
(c) In addition, B was also entitled to draw a salary of ₹1,200 per month.
The net profits for the year were ₹1,20,000, distributed equally without providing the salary
and interest on capital.
Pass the necessary adjustment entry showing the workings clearly.

Question 21.
Karn and Monu were partners in a sport shoes manufacturing firm. sharing profits and losses
in the ratio of 3: 2. During current year Karn invested some cash from firm for his personal
benefit. Monu raises a strong objection on this transaction but Karn refuses to return the
profit derived from this transaction which cause a lack of faith between the partners. Finally,
after two months they decided to dissolve the firm on the following terms:
(i) Karn was deputed to realise the assets and to pay the liabilities. He agreed to bear all
realisation expenses and he was paid commission of ₹12,500 for his service. Actual expenses
was ₹6,000 paid by Monu on behalf of Karn.
(ii) The firm had Stock of ₹2,40,000. 25% of the stock was taken over by an unrecorded
creditor of ₹70,000 in full settlement of his claim and the remaining stock was taken over
by Monu at 80% of cost.
(iii) The Balance Sheet shows Debtors at ₹60,000 and provision for doubtful debts at ₹8,000.
Debtors of ₹12,000 proved bad and remaining realised 75% of its value.
(iv) Monu had given a loan of ₹75,000 to the firm for which he was paid ₹72,000 in full
settlement.
Based on the above information you are required to pass Journal entries in the books of the
firm.

Question 22.
Priya Ltd. company was registered with an authorized capital of ₹30,00,000 divided into
30,000 Equity Shares of ₹100 each. The company offered 20,000 shares for public
subscription, payable ₹40 on application, ₹60 on allotment (including ₹20 premium) and
balance on call. All the money has been duly called and received except allotment money on
500 shares and call money on 700 shares (including 500 shares failed on allotment).
Company forfeited 500 shares on which both allotment and call money was not received.
Show 'Share Capital' in the books of the company. Also prepare notes to accounts.

Question 23.
ITC Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹2
per share. The amount was payable as follows:
On Application ₹4 per share
On Allotment ₹ 3 per share along with premium
On First & Final Call Balance Amount
Applications were received for 1,30,000 shares and pro-rata allotment was made on
applications for 1,20,000 shares and the remaining applications were refused and letters of
regret were sent to them.
Nimisha, who was allotted 1,600 shares, failed to pay the allotment money and her shares
were forfeited immediately after the allotment. Afterwards the final call was made and duly
received. Pass Journal entries for the above transactions by opening calls-in-arrears account.
OR

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Bufee Ltd. invited applications for issuing 50,000 equity shares of ₹10 each at a premium of
₹2 per share. The amount was payable as follows:
On Application ₹4 per share
On Allotment ₹5 per share (including 2 premium)
On First Call ₹2 per share
On Second and Final Call Balance Amount
Applications were received for 70,000 shares and pro-rata was made on 60,000 applications
for shares and the remaining applications were refused and letters of regret were sent to
them.
Tani who was allotted 500 shares, failed to pay the allotment money and first call money and
her shares were forfeited immediately after the first call.
Ansh, who applied for 1,200 shares, failed to pay the two calls and his shares were forfeited
after the second call.
Of these forfeited shares, 1,000 shares were reissued as fully paid up for ₹7 per share, the
whole of Tani's shares being included.
Pass Journal entries for the above transactions and prepare the cash book.

Question 24.
Arun, Varun and Tarun are partners in a firm sharing profits and losses in the ratio of their
capital. Their Balance Sheet as at 31st March, 2023 is as under:
Balance Sheet
Liabilities Amt (₹) Assets Amt (₹)
Capital A/cs: Bank 42,000
Arun 1,20,000 Debtors 85,000
Varun 80,000 Less: Provision for
Tarun 40,000 2,40,000 Doubtful Debts 12,000 73,000
Loan 36,000 Stock 46,000
Bills Payable 32,000 Equipment 80,000
Creditors 35,000 Building 1,05,000
Workmen Compensation Profit & Loss A/c 9,000
Reserve 12,000
3,55,000 3,55,000
Arun retired on 1st April, 2023 on the following terms:
(i) Provision for Doubtful Debts was found in excess by ₹2,000.
(ii) Liability against Workmen compensation was determined ₹3,000.
(iii) There is an outstanding claim for damages of ₹1,300 and it is to be provided in the books.
(iv) Creditors will be paid ₹4,000 more.
(v) Stock was reduced by ₹3,500 and Building was appreciated by 20%.
(vi) Out of the fire insurance premium paid during the year, ₹1,700 to be carried forward as
unexpired.
(vii) Goodwill of the firm is valued at ₹24,000.
(viii) Arun is paid his dues with the amount brought in by Varun and Tarun in a manner that
their capitals are in proportion to their new profit-sharing ratio of 2: 1 and cash in hand
remains for working capital ₹30,000.
Prepare Revaluation Account and Partners' Capital Accounts.
OR

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10/11

X and Y were partners in a firm sharing profits in the ratio of 3: 2. On 31-3-2023 their Balance
Sheet was as follows:
Balance Sheet
as on 31st March, 2023
Liabilities Amt (₹) Assets Amt (₹)
X's Capital A/c 50,000 Equipment 85,000
Y's Capital A/c 1,10,000 Building 73,000
Workmen Compensation Stock 16,000
Reserve 18,000 Debtors 50,000
Bank Loan 60,000 Less: Provision 5,000 45,000
Employees Provident Fund 15,000 Bill Receivable 28,000
Creditors 22,000 Cash at Bank 18,000
Profit & Loss A/c 10,000
2,75,000 2,75,000
On the above date X and Y decided to admit Z as a new partner for 1/4 share of profit, which
th

he takes equally from X & Y, on the following terms:

(i) Z is to bring ₹30,000 for his share of goodwill.
(ii) Claim on account of workmen compensation is ₹24,000.
(iii) Employees provident fund to be brought down to ₹13,500
(iv) Debtors amounted to ₹4,000 is to be written off and a provision of 10% to be created
against doubtful debts on the remaining debtors.
(v) Bank loan was paid completely.
(vi) Z is to contribute capital proportionate to his share in the firm.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of new firm.

Question 25.
Vinayak, Arnayak, and Vanya were partners in a firm sharing profits in the ratio of 3: 2: 1. The
firm closes its books on 31st March every year. On 31st July, 2023, Arnayak died. According to
provisions of partnership deed, the legal representatives of a deceased partner are entitled
for the following in the event of his death:
(i) Capital as per the last balance sheet.
(ii) His share of profit till the date of death calculated on the basis of
average profits of last three years.
(iii) Interest on Capital at 9% p.a. till date of his death.
(iv) His share of goodwill to be determined on the basis of three years purchase of the
average profits of last four years. The profits of last four years were:
Year: 2019-20 2020-21 2021-22 2022-23
Profit: ₹9,000 ₹20,000 (Loss) ₹40,000 ₹61,000
(v) Salary at the rate of 7,500 per month.
The balance in Arnayak's capital on 1.04.2023 was ₹1,20,000 and he had withdrawn ₹16,000
till the date of his death. Interest on his drawings were @2%.
Prepare Arnayak's Capital Account to be presented to her executors.

Question 26.
Lupin Ltd. issued 40,000, 8% debentures of ₹50 each at a premium of 15% on 01.04.2023.
These debentures were redeemable after 3 years at a premium of 10%. It also purchased
sundry assets of the value of ₹5,50,000 and took over the liabilities of ₹2,30,000 at an agreed
price of ₹4,60,000 and issued 8% debentures of ₹50 each at a premium of 15% to the vendor.
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10/11
On the same date, it took loan from the Bank for ₹3,00,000 and issued 4,000 , 8% Debentures
as collateral securities.
Record the relevant Journal entries in the books of Lupin Ltd. for the above transactions
(Ignore interest and writing off loss on issue of debentures).

PART-B
(Analysis of Financial Statement)
Question 27.
The process of comparing various financial factors of a company over a period of time is
known as
(a) Inter-firm comparison (b) Cash flow analysis
(c) Intra-firm comparison (d) Cross comparison
OR
Why is an investor interested in financial statement analysis?
(a) To determine the Firm's Profitability
(b) To determine the Firm's Financial Position
(c) To determine the Firm's Solvency
(d) (a) and (b) Both

Question 28.
Calculate Fixed Assets from the following information:
Share Capital ₹8,00,000
Reserves and Surplus ₹4,00,000
Current Assets ₹2,00,000
Long-term Debts ₹3,50,000
Total Debts ₹5,00,000
(a) ₹10,00,000 (b) ₹15,00,000
(c) ₹12,50,000 (d) ₹8,75,000

Question 29.
Statement I: Cash deposited into bank will result in no flow of cash.
Statement II: Purchasing of short-term investment will result in outflow of cash.
(a) Both Statements are correct.
(b) Both Statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct.
OR
What will be the effect of purchasing of goodwill on Cash Flow Statement?
(a) No effect (b) Outflow in Financing Activity
(c) Outflow in Operating Activity (d) Outflow in Investing Activity

Question 30.
DLF Ltd. provides you the following information:
Particulars Note no. 31-3-2023 (₹) 31-3-2022 (₹)
Goodwill 50,000 40,000
Additional Information:
During the year goodwill was purchased for ₹25,000.
Find out the goodwill amortised during the year.
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(a) ₹15,000 (b) ₹20,000 (c) ₹10,000 (d) ₹NIL

Question 31.
Under what heads and sub-heads the following items will appear in the Balance Sheet of a
company as per Schedule III, Part-I of the Companies Act 2013:
(i) Fixed Deposits from Public (ii) Interest accrued and due on borrowings
(iii) Copyrights and Patents (iv) Stores and Spares
(v) Security Deposits (More than 12 months) (vi) Accrued Income

Question 32.
Bharat Ltd. adopts a policy of generating its funds for working capital from its profits and
long-term sources. This has enabled the Company to have adequate resources and meet its
obligations on time.
From the following information calculate the Working Capital Turnover Ratio.
Cost of Revenue from Operations ₹5,00,000 Gross Profit Ratio 20%
Fixed Assets ₹7,00,000 Capital Employed ₹9,50,000

Question 33.
Prepare a Common-size Income Statement from the following information:
Statement of Profit and Loss of PP Ltd.
for the year ending 31st March 2022 and 2023
Particulars Note 31 March 31 March
No. 2023 (₹) 2022 (₹)
I. Revenue from Operations 12,50,000 12,50,000
II. Expenses
(a) Purchases of Stock-in-Trade 8,70,000 7,20,000
(b) Change in Stock (40,000) 30,000
(c) Depreciation and Amortisation 30,000 20,000
(d) Other Expenses 50,000 30,000
Total Expenses
III. Profit before Tax (I-II) 9,10,000 8,00,000
IV. Income Tax 3,40,000 2,00,000
V. Profit after Tax (III-IV) 96,000 60,000
2,44,000 1,40,000
OR
Prepare Comparative Income Statement from the following information:
Particulars 31-3-2023 (₹) 31-3-2022 (₹)
Revenue from Operations 8,00,000 6,00,000
Other Income 1,00,000 50,000
Cost of material consumed 50% of revenue from 50% of total revenue
operations
Employees Benefit Expenses 1,50,000 1,00,000
Income Tax Rate
50% 50%

Question 34.
From the following Balance Sheets of Malti Ltd. as on 31-3-2022 and 31-3-2023, prepare Cash
Flow Statement:
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 Particulars Note 31st March 31st March
No. 2023 (₹) 2022 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds:
(a) Share Capital 12,00,000 8,00,000
(b) Reserves and Surplus 1,65,000 1,95,000
2. Current Liabilities:
(a) Short-term Borrowings …. 80,000
(Bank Overdraft)
(b) Trade Payables 2,80,000 1,60,000
(c) Other Current Liabilities 40,000 35,000
(d) Short-term Provisions 1 76,000 95,000
Total 17,61,000 13,65,000
II. ASSETS
1. Non-Current Assets:
(a) Property, Plant and Equipment and
Intangible Assets
(i) Property, Plant and Equipment 2 6,80,000 4,38,500
(ii) Intangible Assets 3 1,20,000 80,000
(b) Investment 3,61,000 2,30,000
2. Current Assets:
(a) Inventories (Stock) 2,56,000 3,89,000
(b) Trade Receivables 1,68,000 1,72,500
(c) Cash & Cash Equivalents 1,76,000 1,00,000
Total 17,61,000 13,65,000

Notes to Accounts:
Particulars 31.3.2023(₹) 31.3.2022(₹)
1. Short-term Provisions:
Provision for Tax 76,000 95,000
2. Property, Plant and Equipment:
Plant & Machinery 6,80,000 4,38,500
3. Goodwill 1,20,000 80,000
Additional Information:
(i) Tax was paid ₹74,000 during the year.
(ii) During the year plant costing ₹40,000 (Accumulated depreciation ₹16,000) was sold for
₹22,000.
(iii) Depreciation on plant and machinery during the year was ₹46,000.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10/11