wm General iructians | Kaa Bale Read the following instru As SQvwnent — Oly AccOumboncs dawn, 2 tions carefully and follow them : (This question Paper contains 34 questions. All questions are computls. (i) This question paper is divided into two parts — Part A and Part B. (ut) Part A is compulsory for all candidates. () Part B has two options, Candidates have to attempt only one of the given options, Option I: Analysis of Financial Statements Option 1; Computerised Accounting (©) Questions number 1 to 16 (Part A) and Questions number 27 to 30 (Part B) are multiple choice questions. Each question carries 1 mark (0) Questions number 17 to 20 (Part A) and Questions number 31 and $2 (Part B) Gre short answer type questions, Each question carries 3 marks. (it) Questions number 21, 22 (Part A) and Question number 38 (Part B) are Long answer type-I questions. Each question carries 4 marks, (ii) Questions number 23 to 26 (Part A) and Question number 34 (Part B) are Long answer type-I questions, Each question carries 6 marks, (=) There is no overall! choice, However, an internal choice has been provided in few questions in each of the parts. PARTA (Accounting for Partnership Firms and Companies) 1. Piyush, Rajesh and Avinash were partners in a firm sharing profits and losses equally. Shiva was admitted as a new partner for an equal share Shiva brought his share of capital and premium for goodwill in cash. The premium for goodwill amount will be divided among : 1 (A) Old partners in old ratio (B) New partners in new ratio (C) New partners in sacrificing ratio (D) Old partners in sacrificing ratio 2, Alex, Benn and Cole were partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. They admitted Dona as a new partner for im share in the future profits, Dona agreed to contribute proportionate capital. On the date of admission, capitals of Alex, Benn and Cole after all adjustments were € 1,20,000; © 80,000 and & 1,00,000 respectively. ‘The amount of capital brought in by Dona will be I (A) & 75,000 (B) = 60,000 (©) & 65,000 (D) = 70,000 67/1/2-11 —_Page3of39_ Hee(b) 67/1/2-11 Dan, Elf and Furhan were partners in a firm sharing profits in the ratio of 6:3: 2, fh i 3:2. With effect from 18 April, 2023, they decided to change their profit, sharing ratio to 2:3:5, ‘There existed a General Reserve of 90,000 on the date of change in. profit sharing ratio. The partners decided not to distribute General Reserve, [be necessary adjustment entry to show the effect of the above will jel a al 1 Date | Particulars Ory ae ue (A) Dan's Capital A/e Dr. 27,000 _To Furhan’s Capital Ale |__ 27,000 ‘B) Dan’s Capital A/e Dr. 90,000 __‘To Furhan’s Capital A/e 90,000 (Cc) Furhan’s Capital A/e Dr. 27,000 To Dan's Capital Alc | 27,000 (D) Furhan’s Capital Ae Dr. 90,000 i ‘To Dan's Capital Ale 90,000 | OR Sia, Tom and Vidhi were partners in a firm sharing profits in the ratio of 3:2: 1. With effect from 1 April, 2023, they decided to share profits and losses in the future in the ratio of 1; 2: 3, There existed a Debit Balance of © 60,000 in Profit and Loss Account on that date. ‘The necessary journal entry for distribution of the balance in the Profit and Loss Account will be: ai 1 . Dr. Amount | Cr. Amount | Date | Particulars Pee) (2 (A) Sia’s Capital A/e Dr. 30,000 Tom's Capital A/e Dr. 20,000 Vidhi's Capital Ave Dr. 10,000 ‘To Profit and Loss A/c 60,000 (B) Sia’s Capital A/c Dr. 10,000 ‘Tom's Capital A/e Dr. 20,000 Vidhi's Capital A/c Dr. 30,000 ‘To Profit and Loss A/c 60,000 (c) Sia’s Capital A/e Dr. 20,000 ‘To Vidhi's Capital A/c 20,000 (D) Vidhi’s Capital Ave Dr. 20,000 To Sia's Capital A/e 20,000 Page 9 of 39 PTO.aN 10. (a) A share of €100 on which % 80 is received is forfeited for non-payment of final call of 20. The minimum price at which this share can be reissued is (A) © 120 (B) = 100 (© = 80 (D) & 20 OR (b) Shiv Ltd. forfeited 500 shares of = 10 each on which & 7 per share was paid. These shares were reissued for € 9 per share fully paid Amount transferred to Capital Reserve Account will be : (A) = 3,000 B) = 5,000 (©) = 4,500 (D) = 3,500 11. (a) Anju, Divya and Bobby were partners in a firm sharing profits and losses in the ratio of 3 : 2; 1, Bobby retired. The new profit sharing ratio between Anju and Divya after Bobby’s retirement was The gaining ratio of remaining partners will be : (A) 3:2 (B) 5:3 (©) 831 @M) 2 OR (b) Mita, Veena and Atul were partners in a firm sharing profits and losses in the ratio of 3:2; 1. Atul retired and his share was taken over by Mita and Veena in the ratio of 1 : 4. The new profit sharing ratio between Mita and Veena after Atul’s retirement will be (A) 3:2 (B) 8:7 {C) 7:3 @) 2:3 12. Alfa Ltd. invited applications for 50,000 equity shares of € 10 each at a Premium of 30%, The whole amount was payable on application Applications were received for 2,60,000 shares, The company decided to allot the shares on a pro-rata basis refunded by the company was : to all the applicants, The amount (A) & 32,50,000 (B) © 15,60,000 (C) & 39,00,000 (D) = 26,00,000 67/1/2-11 Page 11 of 39 P.O.14, 15. 16. Xeno Lid. issued payable as follows : 000 equity shares of € 10 each. The amount was On Application — & 4pershare On Allotment — & 5 per share On First and Final call -— Balance All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment, First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by : (A) = 15,000 (B) = 24,000 (C) © 13,500 (D) = 18,000 Reserve capital is that part of _ capital which cannot be called except at the time of winding up of the company. (A) Issued (B) Called up (C) Uncealled (D) Nominal Assertion (A): Irredeemable debentures are also known as perpetual debentures. Reason (R): The company does not give any undertaking for the repayment of money borrowed by issuing such debentures, They are repayable on the winding up of the company or on the expiry of a long period. Choose the correct option from the following : (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. (a) Money received in advance from shareholders before it is actually called up by the directors is : (A) _ debited to calls in advance account (B) credited to calls in advance account (C) _ debited to share capital account (D) credited to share capital account OR 67/1/2-11 Page 13 of 39An offer of securities or invitation to subseribe securities to a select group of persons is termed (A) Buy back of shares (B) Employee stock option plan (C) Private placement of shares eat Equity t and Cizan were partners in a firm sharing profits and losses in the ratio of 2: 8:3. Akshay re share profits and losses in future in the ratio of 2:1. On the day of 70,000. $ necessary journal entry to record the red. Baljeet and Cizan decided to Akshay's retirement, goodwill of the firm was valued at = io and Calculate gaining treatment of goodwill (without opening goodwill account), on Aksha retirement, 3 18. Norah and Mallika were partners in a firm with a combined capital of % 2,00,000, The normal rate of return was 10%, The profits of the last four years were as follows : z 2019 - 20 20,000, 2020 - 21 30,000, 2021 - 22 27,000 2022-23 35,000 ‘The closing stock for the year 2022 — 23 was undervalued by % 4,000. Calculate goodwill of the firm based on two years’ purchase of the last four years’ average super profit. 3 e partners in a firm sharing profits 8:2:1. Their fixed capi juhaan and Adit w 19. (a) Mohan, and losses in the ratio of Is were Z 2,00,000, & 1,00,000 and ® 1,00,000 respectively. For the year ended 31% March, 2023, interest on capital was credited to their accounts @ 8% p.a. instead of 5% p. Show your workings clearly. 3 sary adjusting journal ent OR Page 15 of 39 67/1/2-11Manoj and Nitin were partners in a firm sharing profits and losses im the ratio of 2:1. On $19 March, 2023, the balances in their capital accounts after making adjustments for profits and drawings were Z 90,000 and & 80,000 respectively. The net profit for the year ended 31" March, 2023 amounted to 30,000. During the year Manoj withdrew % 40,000 and Nitin withdrew © 20,000, Subsequently, it was noticed that Interest on Capital @ 10% p.a. Was not provided to the partners. Also Interest on Drawings to Manoj = 3,000 and to Nitin 2,000 was not charged Pass necessary adjusting journal entry. Show your workings clearly. 20. (a) Sunrise Ltd. acquired assets of € 3,60,000 and took over creditors of € 1,00,000 from Moonlight Ltd. for an agreed purchase consideration of ¢ 4,80,000. Sunrise Ltd. issued 9% Debentures of ¥ 100 each at a discount of 4% in satisfaction of the purchase consideration, Pass necessary journal entries in the books of Sunrise Ltd. Show your workings clearly. 3 OR Grapple Ltd. took over assets of £ 25,00,000 and liabilities of = 5,00,000 from Allore Ltd, for an agreed purchase consideration of = 18,00,000. Grapple Ltd. issued 11% Debentures of & 100 each at 20% premium in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Grapple Ltd. Show your warkings clearly. 3 21, Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5 : 3 ; 2. Their Balance Sheet on 318 March, 2023 tb) was as follows : Balance Sheet of Archana, Vandana and Arti as at 315 March, 2023 Liabilities Amount assets | ee Capitals : | Investments 80,000 | Archana —80,000 Plant 1,00,000 Vandana ——_70,000 Stock 40,000 Arti 60,000 | 2,10,000 | Debtors 50,000 General Reserve 30,000 | Cash at Bank 30,000 Creditors 60,000 3,00,000 3,00,000 The firm was dissolved on the above date 67/1/2-11 Page 17 of 39 Pa@ Assets were realised as follows Debtors — % 40,000 Stock = = 50,000 Plant & 60,000 Gi) 25% of the Investments were taken over by Vandana at & 18,000. Remaining Investments were taken over by Archana at 10% less than its book value, Gia) Expenses of realisation @ 20,000 were paid by Arti Prepare Realisation Account, 22. Shivalik Limited was ‘registered with an authorized capital of & 10,00,000 divided into equity shares of & 10 each. It offered 50,000 equity shares to the public. The amount was payable as follows On Application — % 2per share On Allotment ~ = 6pershare On First and Final call — Balance The issue was fully subscribed. All the amounts were duly received except the allotment and first and final call money on 4,000 equity shares. These equity shares were forfeited. Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same. 23, Gagan, Harsh and Ishan were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. Their Balance Sheet as at 318 March, 2023, was as follows : Balance Sheet of Gagan, Harsh and Ishan as at 315 March, 2023 Peer ir | Amount |, m1 Liabilities ne | Adsots J Amount Se le Mae Bills Payable 20,000 | Bank 10,000 General Reserve 15,000 | Stock 20,000 Capitals Debtors 25,000 Gagan 25,000, | Fixed Assets | 30,000 Harsh 15,000 Ishan 10,000) 50,000 85,000 85,000 67/1/2-11 Page 19 of 39 PTO.aN Gagan died on 30 tune, 2023, According to the partnership deed, Gagan’s legal representatives were entitled to the following : (i) Balance in his Capital Account. (ii) Interest on capital @ 12% p.a. (iii) His share of goodwill. Goodwill of the firm was valued on the basi: of twice the average of the past four years’ profits. (iv) His share in the profits up to the date of death on the basis of the average profit for the preceding three years. Profits for the previous four years were z 2019 - 20 12,000 2020-21 (15,000) 2021-22 45,000 2022-23 18,000 Prepare Gagan’s Capital Account to be rendered to his legal representatives. 6 On 1 April, 2022, Ahilaan Ltd. issued 10,000, 9% Debentures of 100 each at a premium of 7%, redeemable at a premium of 3% after five years. The company had a balance of & 20,000 in Securities Premium Account. {a) Pass necessary journal entries for issue of debentures and for writing off ‘Loss on Issue of Debentures’ utilising Securities Premium Account at the end of first year itself. (b) Prepare ‘Loss on Issue of Debentures Account’ for the year ended 318t March, 2023. 67/3/21 L Pope 21.039 oe27. (a) (b) 28. (a) (b) 67/1/2-11 PARTB OPTION -1 (Analysis of Financial Statements) The transaction ‘Acquisition of machinery by issue of equity shares of = 5,00,00,000' will result in 1 (A) Cash inflow of = 6,00,00,000 from financing activities (B) Cash outflow of £ 5,00,00,000 from financing activities (C) Cash outflow of & 5,00,00,000 from investing activities (D) No flow ofcash OR ‘The transaction ‘Capital Gains Tax paid on sale of fixed assets’ is classified under which of the following : f (A) Operating Activities (B) Investing Activities (©) Financing Activities (D) Cash and Cash Equivalents Analysis of Financial Statements is useful and significant to different users, Which of the following users is particularly interested in the firm’s ability to meet their claims over a very short period of time ? 1 (A) Labour Unions (B) Trade Payables (C) Top Management (D) Finance Manager oR ratios are calculated to determine the ability of the business to service its debt in the long run 1 (A) Liquidity (B) Turnover (C) Solvency (D) Profitability Page 29 of 39 P.T.O.rr 33. (a) (b) 67/1/2-11 From the given Balance Sheet of Geox Ltd., prepare Common Size Balance Sheet 4 Balance Sheet of Geox Ltd. as at 31“ March, 2023 Baviniies Note | 31.3.2023 | 31.3.2022 No. z z 1- Equity and Liabilities : 1, Shareholders’ Funds (a) Share Capital 4,00,000 | 2,50,000 Non-Current Liabilities (a) Long-term Borrowings | 2,00,000| 1,50,000 Current Liabilities | (a) ‘Trade Payables 2,00,000 Total 8,00,000 | Ir- Assets : | 1, _Non-Current Assets (a) Fixed Assots/Property, | Plant and Equipment } | and Intangible Assets 4,00,000 | 3,50,000 2, Current Assets (a) Inventories 2,00,000/ 70,000 | (b) Trade Receivables 2,00,000 | _ 80,000 IL Total 8,00,000 | _5,00,000 oR From the following information, prepare a Comparative Statement of Profit and Loss for the year ended 31% March, 2022 and 2023: 4 . Note | 2022-23 | 2021-22 Particulars No. () (z) Revenue from operations 10,00,000 | —_8,00,000 Employee benefit expenses 2,50,000| —1,00,000 Other expenses 5,50,000 | 4,00,000 | Tax rate 60% J Page 33 of 39 PTO.