hours

TimeAllowed: 3 Maximum Marks: 80

GeneralInstructions :
This question paper contains 34 questions. All questions are compulsory.
dividedintotwo parts, Part Aand B.
2. This question paper is
Part- A iscompulsory for all the candidates.
APart -Bhas two options i.e. (1) Analysis of Financial Statements and (ü) Computerised Accounting.
Students must attempt only one of the given options as per thesubject opted.
s Ouestion Nos.1 to 16 and 27 to 30 carries 1 mark each.
6Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21,22 and 33 carries 4 marks each
8 Ouestions Nos. from 23to 26 and 34 carries 6 marks each
oThere is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2
Questions of three marks, 1question of four marks and 2questions of six marks.
Part A
Accounting for Partnership Firms and Companies
0.1. An unrecorded asset of 55,000 was given to an unrecorded creditor of 50,000 in
settlement of his claim of 740,000and the balance was paid to him after deducting 10%
discount. Realisation A/c will be:
(A) Debited by 50,000 (B) Debited by 79,000
(C) Credited by 1,000 (D) Credited by 79,000 1

Q.2. A company issued 20,000 equity shares of 10 each at par payable as under : On
application 3; on allotment R2; on first call 4 and on final call 1per share.
Applications were received for 65,000 shares. Applications for 15,000 were rejected and
pro-rata allotment was made to the applicants for 50,000 shares. How much amount will
be received in cash on first call? Excess application money is adjusted towards amount due
on allotment and calls.
(A) 80,000 (B) 50,000
(C) 30,000 (D) Nil 1

OR
ABC Ltd. offered 60,000 shares of 10each to the public. The public applied for 1,00,000
shares. The company made pro-rata allotment in the ratio of 3 : 2 and the remaining
applications were rejected and money refunded to the applicants. On how many shares did
the company refunded the application money?
(A) 40,000Shares (B) 10,000 Shares
(C) 30,000Shares (D) 20,000 Shares (1.S.C. 2023)
0.3. A. Band Cwere equal partners. They decided toto cchange the profit sharing ratio
For this purpose the goodwill of the firm was valued at 4,50,000. to 4:3:2.
The journal entry for the treatment of Goodwill on change in profit sharing ratio
Purticulars
will be:
Dr
Amoin
Amout
(A) C's Capital A/. Dr. 50,000
To A's Capital A/c.
(B) Cs Capital A/c. Dr.
50,00
4,50,000|
To A's Capital A/c.
(C) A's Capital A/c. Dr.
4,50,000
4,50,000
To C'sCapital A/.
4,50,0o
(D) A'sCapital A/c. Dr. S0,000
To C's Capital A/c.
50,000
1
0.4. Computer of book value of 60,000 and Patents of the book value of 20,000 have been
transferred to Realisation A/c. If nothing is mentioned about the realisation of these assets.
they will be realised at :
(A) Nil (B) 60,000
(C) T80,000 (D) 20,000 1
OR
Atthe time of dissolution of firm, bank overdraft is
(A) Credit side of Bank A/c transferred to :
(B) Debit side of Partner's Capital Alc
(C) Credit side of Realisation A/c (D) Debit side of Realisation A/c
Q.5. X and Yare partners in the ratio of 2:1. Their
capitals are 3,00,000 and ?2,00,000
respectively. Interest on capitals is allowed @ 9% p.a. Firm earned a profit of 30,000 for
the year ended 31Ist March 2022. Interest on
(A) X*27,000; Y18,000 Capital will be:
(C) X*18,000; Y12,000 (B) X*20,000; YR10,000
(D) No Interest will be allowed. 1
Q.6. A and B are partners ina firm. They admit C as a
the firm. Cbrings ?1,50,000 as his share of partner with 1/5th share in the proiS o
is 5,50,000 and outside liabilities are capital, The value ofthe total assets of the frm
valued at 70,000 on that date. C's share of hidaen
goodwill will be:
(A) 2,70,000
(C) ?1,20,000 (B) 54,000
(D) 24,000 1
Q.7. X Ltd. forfeited 1,000shares of 10
reissue of 600 of these shares,3,000each for non-payment of final call of 3
were each. A
reissued for: transferred to Capital Reserve. Shares
(A) 1,200
(C) 3,600 (B) 4,800
(D) 4,000
 OR
Given below are two statements, one labelled as Assertion (A)and the other labelled as
Reason (R)
Assertion (A): Transfer to reserves is shown in P &L Appropriation A/c.
Reason (R) :Reserves are charge against the profits.
Inthe context of the above statements, which one of the following is correct?
Codes :
(A) (A)is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A)is wrong, but (R) is correct. (D) Both (A) and (R) are wrong.
0.8. A, B and C are partners in a firm. At the time of C's retirement, A takes over furniture of
z50.000 at 740,000. Choose the correct entry from the following :
(A) Debit A's Capital A/c 40,000; Credit C'sCapital A/c 40,000.
(B) Debit A's Capital Alc 40,000; Debit Revaluation A/c 10,000; Credit Cs Capital
Alc 50.,000.
(C) Debit A's Capital A/c 40,000; Credit Furniture A/c 40,000.
(D) Debit 4's Capital A/c 40,000; Debit Revaluation A/c 10,000; Credit Furniture A/c
1
F50.000.
Read the following hypothetical situation and answer Question No. 9 and 10.
Harshit, Krishna and Rahul are partners in a firm. Their capital balances as on lst April
2022 were 5,00,000; 4,00,000 and 1,00,000 respectively.
6% p.a. while
As per partnership deed, partners were entitled to interest on capital @
March 2023,
interest on drawings was to be charged @ 8% p.a. During the year ended 31st of Krishna
Harshit withdrew RI,00,000 from his capital on lst October 2022 and drawings
for the year was
and Rahul during the year amounted to 30,000 each. Net profit
74,17,600.
Q.9. Divisible profit credited to Harshit's Capital Alc will be:
(B) 1,82,700
(A) ?1,81,500 1
(D) 1,21,800
(C) 1,21,000
Q. 10. Balance of Rahul's Capital A/c on 31st March 2023 will be:
(B) 1,10,140
(A) 1,11,100 1
(D) 1,95,800
(C) 195,400
and interest on his
Q11. Aayush withdrew a fixed amount at the beginning of each month
interest on drawings is
drawings amounted to 3,900 at the end of the year. If the rate of
6% p.a. his total drawings were :
(B) 1,20,000
(A) 65,000 (D) 130,000 1
(C) Z10,000
Q. 12. Ifnothing is stated in partnership deed:
(A) Interest on Drawings will be charged @6% p.a. for full year. period of six months.
(B) Interest on Drawings will be charged @6% p.a. for an average
 (C) No interest will be charged on Drawings.
(D) Interest on Drawings will be charged @12% p.a. 1
Q. 13. A and B are partners sharing profits in 3 : 2 with capitals of 6,00,000 and 4.00 000
respectively. They are entitled to interest on their capitals @10% p.a. and Ais also entitle
to a rent of T10,000 per month for use of his property by the firm. Net Profit earned by the
firm for the year ended 31st March 2022 was 3,00,000. B's share of profit will be :
(A) 80,000 (B) 72,000
(C) 32,000 (D) 1,20,000 1
OR

Sarvesh, Sriniketan and Srinivas are partners in the ratio of 5:3:2.If Sriniketan's share
of profit at the end of the year amounted to 1,50,000, what will be Sarvesh's share of
profits?
(A) 75,00,000 (B) 1,50,000
(C) 3,00,000 (D) 2,50,000
Q. 14. Employee Stock Option Plan is a :
(A) Obligation to buy shares at a predetermined price on a future date.
(B) Obligation to buy shares at a unknown price on a future date.
(C) Option to buy shares at a unknown price on a future date.
(D) Option to buy shares at a predetermined price on a future date. 1
0. 15. ALtd. issued 50,000, 6% Debentures of 100 each at a discount of 4%
redeemable at a
certain rate of premium. Existing balance in Securities Premium before issuing these
debentures is 1,50,000. Loss on issue of debentures was immediately written off and
3,00,000 were charged to Statement of Profit and LOss. At what rate of premium these
debentures are redeemable?
(A) 3% (B) 4%
(C) 5% (D) 6% 1
Q. 16. Interest on debentures is paid on:
(A) Issue Price (B) Either on Issue Price or on Nominal Value
(C) Nominal Value (D) None of the above 1

OR
When debentures are issued as collateral security, which
(A) Loss on issue of debenture A/c account is debited?
(B) Debenture Suspense A/c
(C) Bank Alc (D) Debenture A/c
Q. 17. A, B and Cwere partners in a firm. On
1-4-2021 their capitals stood at 4,00,000,
2,00,000 and 2,00,000 respectively. As per the provisions of the partnership deed:
(a) Awas entitled for a salary of 5,000 p.m.
(b) Partners were entitled to interest on
capital at 5% p.a.
(c) Profits were to be shared in the ratios of
capitals.
 The net profit for the year ended 31-3-2022 of R3,00,000 was divided equally without
providing for the above terms.
Pass an adjustment entry to rectify the above erro. 3
o 18, Manu, Kavita and Om were partners sharing profits and losses in the ratio of 3:2:1.
Kavita died on 30th June, 2022 and Manu and Om decided to share future profits in the
ratio of 3:2. Her share of profit for the intervening period was based on the sales during
that period, which were 7,20,000. The rate of profit during the past four years had been
10% on sales. The firm closes its books on 31st March every year. Calculate Kavita's
share of profit and pass the necessary journal entry. 3

OR
A. B and C are partners in a firm. Their Capital Accounts stood at 8,00,000; T6,00,000
and 4,00,000respectively on 1stApril, 2021. They shared profits and losses in the ratio
of 3:2: lrespectively. Partners are entitled to interest on capital @6% per annum and
salary to B and C @R4,000 per month and T6,000 per quarter respectively as per the
provisions of Partnership Deed.
B's share of profit including interest on capital but excluding salary is guaranteed at a
minimum of 82,000p.a. Any deficiency arising on that account shall be met by C. Profit
for the year ended 31st March, 2022 amounted to 3,12,000. Prepare Profit and Loss
Appropriation Account for the year ended 31st March, 2022.
Q. 19. Voltas Ltd. purchased plant & machinery from Euro Products Ltd. and paid the
consideration as follows:
i) Issued a cheque for 15,00,000;
(ii) Issued a Billof Exchange for 3 months for 78,00,000;
premium after 5
(ii) Issued 7,000; 8% Debentures of 100 each at par redeemable at 5%
years.
3
Pass journal entries.
OR
April, 2019, During the
A Company had 25,00,000, 7% Debentures outstanding as on lst of
Bank India for which the
year company took a loan of 5,00,000 from the State Security. Pass
Company placed with the bank debentures for 6,00,000 as Collateral appear in the
journal entries. Also show how the Debentures and Bank Loan will
Company's Balance Sheet as at 31st March, 2020.
Q. 20. Charu, Divya and Esha were partners in a firm. Pass journal entries for the following
liabilities have been
transactions on dissolution of the firm after various assets and external
transferred to Realisation A/c:
unrecorded creditor of 60,000 in
() An unrecorded asset of 740,000 was given to an him in cash.
settlement of his claim of 45,000 and the balance was paid to
taken over by Charu at
(u) A Motorbike which was not recorded in the books was
10,000, whereas its expecied value was 15,000.
 (ii) Creditors, to whom the firm owved 50,000, accepted stockk of 30,000 at a
of 20% and the balance in cash.
account for 720,000 was written off as bad|in
discount
(i) X, an old customer, whose the
year, paid 40% of the amount written off. previous
(v) Esha paid the realisation expenses of 20,000 out offher pocket and she was to get a
fixed remuneration of 25,000 for completing the dissolution process.
(vi) Divya's loan of 40,000 was discharged at 42,000. 3
0. 21. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. D was admitted
into the firm with 1/4th share in profits, which he got 3/16th from Aand 1/16th from B.
The total capital of the firm as agreed upon was 1,20,000 and D brought in Cask
equivalent to 1/4th of this amount as his capital. The capital of other partners also had to
be adjusted in the ratio of their respective share in profits by bringing in or paying cash.
The capitals of 4, B and C after all adjustments related to revaluation of assets and
reassessment of liabilities were 40,000; 35,000 and ?30,000 respectively.
Calculate the new capitals of 4, B and C and record the necessary journal entries for the
above transactions. 4

Q.22. Shivpriya Ltd. was formed with a nominal Share Capital of 50,00,000 divided into
50,000 shares of 100each. The Company offers 30,000 shares to the public payable 30
per share on Application, 30per share on Allotment and the balance on First and Final
Call. Applications were received for 28,000 shares. All money payable on allotment was
duly received, except on 500 shares held by X. First and Final Call was not made by the
Company.
How wouldyou show the 'Share Capital' in the Balance Sheet of Shivpriya Ltd.? Also
prepare notes to accounts for the same. 4

Q.23. Pioneer Ltd. invited applications for 11,000shares of 100 each to be issued at apremium
of 10% payable as follows :
On Application 725
On Allotment 740
On First & Final Call 735
Applications were received for 10,000 shares and all of these were accepted. All e
money due was received except the first and final call on 100 shares which were forreiteu
60 of these forfeited shares were reissued @R90 per share
credited as fully paid.
You are required to Pass the necessary Journal 6
Entries.
OR
XLtd. issued shares of 50 each at a premium of 12 per share. Amount was payableas
follows :
On Application 10
On Allotment (includingpremium 3)
On First Call (including premium 4)
20 (including premium 5)
On Final Call
17
 Ani1. who held 500 shares did not pay allotment and first call and his
shares were
forfeited.
*) Bimal, who held 800shares did not pay first call and his shares were forfeited.
(i) Chander, who held 1,000 shares failed to pay final call and his shares were forfeited.
S0% shares of Anil and Bimal were reissued at 10% discount. Give journal entries for
forfeiture and reissue of shares.
o 24. Aand Bshare the profits of abusiness in the ratio of 2:1. They admit Cinto the firm for
a 1/5th share in the profits which he acquires from Aand Bin the ratio of3:2. On the date
of admission of C, the Balance Sheet of the firm was as follows :
Liabilities Assets
Creditors 3,00,000| Machinery 6,20,000
A's Capital 7,00,000 Land arnd Building 5,00,000
B'sCapital 5,00,000 Stock 2,00,000
Debtors 1,60,000
Bank 20,000
15,00,000 15,00,000

From the information given below, complete Revaluation Account, Partners' Capital
Accounts and the new Balance Sheet of A, B and C.
REVALUATION ACCOUNT

Particulars Particnlars
To Stock A/c By Land &Building Ale
To Profit transferred to Capital A/cs:
A
B
2,00,000

CAPITAL ACCOUNTS

Particulars B Particula

ToBal. cld By
By Revaluation
Alc 1,00,000
By Bank Alc
By Premium for
Goodwill Alc 60,000
3.00,000
BALANCE SHEET (After Admission)
Assets
Liabilities
Creditors Bank
Capitals : Debtors
 A
Stock
Land and Building
C Machinery

OR
A, Band Cwere partners inafirm sharing profits in the ratio of 3:2:1. Their Balance
Sheet as at 31st March, 2023 was follows :
Assets
Liabiliries
1,80,000Cash at Bank
Sundry Creditors
1,00,000 Debtors
S0,000
Workmen Compensation Reserve 2,40,000
Capitals: Stock 3,70,000
A 4,50,000 Plant &Machinery 5,80,00
B 3,30,000 Goodwill 90,000
2,70,000 10,50,000
13,30,000 13,30,000

Cretired on that date and Aand Bagreed toshare future profits in 5:3. Following terms
were agreed:
() There was an unrecorded creditor of 30,000
(i) There is aaclaim for Workmen Compensation amounting to 40,000.
(iii) Cis to be paid 73,00,000 in full settlement of his account.
(iv) Cis to be paid immediately and for this sufficient cash is to be brought in by A and B
in such a way that their capitals are proportionate to their profit sharing ratio and
leave a balance of 720,000 in the bank.
Prepare Capital Accounts of the partners and draft the Balance Sheet of the new firm.
Q. 25. Karan and Vijay are partners in a firm sharing profits and losses in the ratio of 4:3. They
admit Shrey for 1/3 share in the profits.
On the date of Shrey's admission :
(a) The capitals of Karan and Vijay
are:40,000 and 30,000 respectively.
(b) Profit and Loss Account has a debit balance of
7,000.
(c) General Reserve shows abalance of 721,000
which is not to be disturbed.
(d) Goodwill of the firm is valued at
(e) The cash at bank is
42,000.
715,000.
() Shrey brings in proportionate capital and his
shareof goodwillin cash.
You are required to
() prepare:
Partner's Capital Accounts.
 (i) Cash at Bank Account of the reconstituted firm on thedate of Shrey's admission. 6
(1SC SamplePaper 2023)
0.26. On 1.7.2021,Mehta Ltd. issued 8,000, 9% debentures of ?1,000 each at adiscount of 6%.
redeemable at a premium of 5% after three years. The company closes its books on 31st
March every year. Interest on 9%debentures is payable half-yearly.Balance in Security
Premium A/c is 10,00,000.
Pass necessary journal entries for the year ended 31.3.2022. 6

Part B
Analysis of Financial Statements
0.27. Inventory 3,00,000 (excluding loose tools 90,000); Trade Receivables 1,10,000;
Trade Payables 1,80,000; Prepaid Expenses 40,000 and Goodwill is 45,000. Current
Ratio will be :
(A) 2.75:1 (B) 2.5:1
(C) 3: 1 (D) 3.25:1 1

Q. 28. Atransaction involving decrease in Debt-Equity Ratio and increase in Current Ratio is
(A) Issue of Debentures against the purchase of Machinery
(B) Redemption of Preference Shares for Cash.
(C) Issue of Equity Shares for Cash.
(D) Issue of Debentures for Cash. 1

OR
Calculate fixed assets from the following :
Share Capital 7,00,000; Reserve & Surplus 3,00,000; Current Assets 1,50,000;
Proprietary Ratio 0.8:1.
(A) 12,50,000 (B) 11,00,000
() 14,00,000 (D) 6,50,000
Q. 29. X Ltd. is carrying on a Mutual fund business. It invested 20,00,000 in shares and
78,00,000 in debentures of various companies during the year. Itreceived 1,20,000 as
dividend andinterest. Find out cash flows from investing activities. 1

Q. 30. While preparing cash flow statement, where would you show Cash withdrawn from
Bank'? 1

OR
Kevenue from Operations 8,00,000; Inventory Turnover Ratio 5; Gross Profit 25%.Find
out the value of Closing Inventory, if Closing Inventory is 20,000 more than the Opening
Inventory :
(A) 1,40,000 (B) 1,18,000
(C) 1,30,000 (D) 1,38,000
 0.31. Under which major headings and sub-headings will the following items be
Balance Sheet of a company as per Schedule III Part I of the Companies Act,
() Balance of the Statement of Profit and Loss.
shown in
2013: the
(i) Loan of 1,00,000 payable after three years.
(ii) Short-term deposits payable on demand.
(iv) Trade marks.
(v) Provision for warranties.
(v) Capital advances.
3

Q.32. Compute Current Liabilities from the following:

Goodwill
Inventory (excluding loose tools 30,000) 1,50,00
Trade Receivables I,70,000
1,70,00d
Less : Provision for Doubtful Debts 10,000
Cash at Bank 1,60,000
Current Ratio 30,000
1.8:
3
OR
From the following information, calculate Debt to Capital
Employed Ratio :
Total Debt
4,00,000
8% Long term Debt
Non Current Assets 3,60,000
9,60,000
Current Assets
2,80,000
Cash and Cash Equivalents 1,20,000

Q. 33. From the following extract of the

Statement of Profit and
March, 2022 and 2023 of XYZ Ltd., prepare Comparative Loss for of the years ended Tis
Statement Profit and Loss:
Particulars 31.3.2023 31.5.2022
Revenue from Operations 40,00,000 30,00,00|
Employees Benefit Expenses 22,00,000 18,00,000
Other Expenses
Tax Rate 2,00,000 4,00,000;
40%
4096)

OR
From the following Balance Sheet of RLtd..
Prepare a Common Size Statement:
 BALANCE SHEET
as at 31st March, 2023
Particulars Note 3Í.3.2023 313.2022
No.
. EQUITY AND LIABILITIES :
1. Shareholder's Funds :
(a) Share Capital
(6) Reserves and Surplus 5,00,000 4,00,000
2, Current Liabilities :
1,60,000 1,20,000
(a) Trade Payables 1,40,000 80,000
Total 8,00,000 6.00,000:
II. ASSETS:
1. Non-Current Assets :
(a) Property, Plant and Equipment and Intangible Assets
() Property, Plant and Equipment 3,60,000 3,00,000
2. CurrentAssets :
(a) Inventories 4,00,000 2,60,000
(b) Cash and Cash Equivalents 40,000 40,000;
Total 8,00,000 6,00,000

Q. 34. From the following information, calculate Cash Flow from Operating Activities :
Partictlars 31st March. 3isf March,
2022 2021

Surplus (i.e., Balance in the Statement of 71,000 89,000

Profit and Loss) 12,000 4,000
Inventory 58,000 45,000
Trade Receivables 14,600 10,0003
Outstanding Expenses 57,000 27,000
Goodwil1 9,000 12,000
Cash in Hand 82,000 56,000
Machinery
50,000 on which depreciation of 20,000 had been
costing
() A piece of machinery Depreciation charged during the year was 18,000.
charged was sold for 10,000.
Income Tax 23.000 was paid during the year. 6
(ii) 36,000.
was
(ii) Dividend paid during the year