KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

FIRST PREBOARD EXAMINATION 2024-25

CLASS: XII
SUBJECT: ACCOUNTANCY
TIME: 3 HOURS MAXIMUM MARKS: 80
GENERAL INSTRUCTIONS:
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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.
1 K, L and M were partners in a firm with capitals of ₹6,00,000, ₹4,00,000 and 1
₹2,00,000 respectively. They were sharing profits in the ratio of 2:3:1. The partnership
deed provided for interest on capital @10%p.a. K personally guaranteed that L’s share
of profit after charging interest on capital would not be less than ₹1,00,000 in any year.
The profits for the year ending 31st March 2024 amounted to ₹3,00,000 before
providing interest on capital.
The total profit of the firm after adjustment of guaranteed amount will be distributed
among the partners as
a) K- ₹60,000 , L- ₹40,000 and M-₹20,000
b) K-₹50,000 , L- ₹1,00,000 and M- ₹30,000
c) K- ₹60,000 , L- ₹90,000 and M-₹30,000
d) K- ₹60,000 , L- ₹1,00,000 and M-₹20,000
2 Given below are two statements, one labelled as Assertion (A) and the other 1
labelled as Reason (R)
Assertion (A): It is considered desirable to have a partnership deed in writing.
Reason (R): It helps in settling any disputes with regard to the terms of partnership
and act as an evidence in the court of law . ).
In the context of the above two statements which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of
A.
c) Assertion (A) is true , but Reason (R) is false
d) Assertion (A) A is false , but Reason (R) is true
3 Which of the following statement is/are true? 1
i) Authorised Capital ≤ Issued Capital ii) Authorised Capital ≥ Issued
Capital
iii) Subscribed Capital ≤ Issued Capital iv) Subscribed Capital ≥ Issued
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 Capital

a) Only( i) b) ( i) and( iv) c) (ii) and (iii) d) Only (ii)

4 Aman and Biman are partners in a firm sharing profits in the ratio of 3:1. Charan is 1
admitted in to the firm with 1/4th share in profits. Charan acquires 2/3 of his share
from Aman and the remaining from Biman. The new profit sharing ratio among Aman,
Biman and Charan will be:
a) 3:2:4 b) 4:3:2 c) 2:1:1 d) 7:2:3
OR
X and Y are partners in a firm sharing profits in the ratio of 3:2. They admitted Z for
1/6th share in profits. On the date of Z’s admission the following balance were found in
the Balance sheet of the firm
Balance sheet(extract)
Liabilities Amount assets Amount
Investment Fluctuation 2,70,000 Investments 30,00,000
Fund
If the market value of investments is ₹29,00,000, then Investment fluctuation fund will
be shown in the Balance sheet of the firm will be
a) 30,00,0000 b) 2,70,000 c) 29,00,000 d) Nil
5 Anand, Gulab and Thulasi were partners in a firm sharing profits in the ratio of 5:3:2. 1
From 1st April 2024, they decided to share the profits equally. For this purpose the
goodwill of the firm was valued at ₹2,40,000.
What will be journal entry for the treatment of goodwill on change in the profit
sharing ratio of Anand, Gulab and Thulasi?
a) Anand’s Capital A/c Dr 8,000
Gulab’s Capital A/c Dr 32,000
To Thulasi’s Capital 40,000

b) Anand’s Capital A/c Dr 8,000

Thulasi’s Capital A/c Dr 32,000
To Gulab’s Capital A/c 40,000

c) Gulab’s Capital A/c Dr 8,000

Thulasi’s Capital A/c Dr 32,000
To Anand’s Capital A/c 40,000

d) Gulab’s Capital A/c Dr 1,20,000

Thulasi’s Capital A/c Dr 72,000
Anand’s Capital A/c Dr 48,000
To Goodwill 2, 40,000
6 Given below are two statements, one labelled as Assertion (A) and the other 1
labelled as Reason (R)
Assertion (A): In case of shares issued on pro- rata basis, excess money received at the
time of application can be utilised till allotment only.
Reason (R) : Company has to pay interest on calls in advance @12% p.a. for amount
adjusted towards calls (if any).
In the context of the above two statements which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of
Page No.2
 A.
c) Both Assertion (A) and Reason (R) are false
d) Assertion (A) A is false, but Reason (R) is true
7 Which of the following will be transferred to Realisation Account at the time of 1
dissolution of firm.
(i) Provision for doubtful debts (iii) Partner’s loan
(ii) General Reserve (iv) Goodwill
a) Only (i)&(iv) b) (i),(ii) and (iv)
b) c) (i),(iii) and (iv) d) (i),(ii) and (iii)
8 X Ltd issued fully paid shares of ₹10,00,000 in purchase consideration of net assets of 1
₹9,00,000. The balance of ₹1,00,000 is ---------------- to ---------------- Account.
a) Debited, Goodwill
b) Debited, Capital Reserve
c) Credited, Capital Reserve
d) Credited , General Reserve
OR
Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R)
Assertion (A): Forfeited shares may be re-issued by the company at a a discount also.
Reason ( R ): The amount of discount on re-issue of forfeited shares cannot exceed the
amount received on forfeited shares.
In the context of the above two statements which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of
A.
c) Both Assertion (A) and Reason (R) are false
d) Assertion (A) A is false, but Reason (R) is true
9 Reshma, Swetha and Yamuna were partners in the ratio of 5:3:2. On 31st March 2024, 1
their books showed a net profit of ₹4,20,000. As per the partnership deed they were
entitled to interest on capital which amounted to ₹1,60,000, ₹1,20,000 and ₹80,000
respectively. Besides this a salary of ₹1,20,000 each was payable to Reshma and
Swetha.
Calculate the ratio in which the profits would be appropriated.
a) 1:1:1 b) 5:3:2 c) 7:6:2 d) 4:3:2
10 On the death of a partner, his share in the profits of the firm till the date of death is 1
transferred to ---------------------
a) Debit P/L Account
b) Debit P/L Appropriation Account
c) Debit P/L Suspense Account
d) Credit P/L Suspense Account
OR
At the time of retirement of Mohan, value of Furniture is given ₹6,00,000 in the
Balance sheet. Pass journal entry when stock is undervalued by ₹15,000
a) Revaluation A/c Dr 15,000
To Stock 15,000
b) Stock A/c Dr 15,000
To Revaluation 15,000
c) Revaluation A/c Dr 45,000
To Stock 45,000
d) Stock A/c Dr 45,000
To Revaluation 45,000
Page No.3
11 Wolf Ltd, issued 1,00,000 equity shares of ₹10 each, payable as 1
On application -₹3 per share
On allotment-₹2 per share
On first & final call- the balance amount.
Applications for 90,000 shares were received and the shares were allotted to all the
applicants. Radha to whom 500 shares were allotted, paid her entire money at the time
of allotment, whereas Padma did not pay the first & final call on 300 shares. The
amount received at the time of making the first & final call was
a) ₹4,50,000 b) ₹4,48,500 c) ₹4,21,000 d) ₹4,46,000
12 Anil and Mohan are partners in the ratio of 3:2. Their fixed capitals were ₹3,00,000 and 1
₹4,00,000 respectively. After the close of accounts for the year it was discovered that
interest on capital which was agreed to be provided @5%p.a was erroneously provided
@10%p.a. By what amount will Anil’s Account be affected if partners decided to pass
an adjustment entry for the same?
a) Anil’s Current Account will be debited by ₹15,000
b) Anil’s Current Account will be credited by ₹6,000
c) Anil’s Current Account will be credited by ₹8,000
d) Anil’s Current Account will be debited by ₹20,000
OR
Which of the following statements is true about fixed and fluctuating capital Accounts?
a) Fixed Capital Account always shows a credit balance.
b) Current Account can have a positive or negative balance.
c) Fluctuating capital account can have a positive or negative balance.
d) All of the above
13 If average capital employed in a firm is ₹10,00,000, average actual profits is ₹2,00,000 1
and normal rate of return is 10%, then the value of goodwill as per capitalisation of
average profits is:
a) ₹10,00,000
b) ₹18,00,000
c) ₹80,00,000
d) ₹78,20,000
14 At the time of admission of a partner, what will be the effect of the following 1
transaction?
Balance in Workmen Compensation Fund-₹80,000; Claim for Workmen Compensation
₹85,000.
a) ₹85,000 debited to Partners’ Capital Accounts
b) ₹80,000 debited to Revaluation Account.
c) ₹5,000 debited to Revaluation Account.
d) ₹5,000 credited to Revaluation Account
OR
Which of the following is not correct in relation to right of a partner?
i) Right to inspect the books of the firm
ii) Right to take part in the affairs of the firm
iii) Right to share the profits/losses of the firm.
iv) Right to receive salary at the end of each month
a) Only (i) b) (i) and (ii) c) Only (iv) d) (i), (ii) and (iii)

15 On dissolution of the firm A& B Sons, partner A took over 50% of the stock at 20% 1
discount( book value of stock is ₹20,00,000). The value at which the stock was taken
over by A is
a) ₹10,00,000 b) ₹5,00,000 c) ₹1,00,000 d) ₹4,00,000
Page No.4
16 Akash Ltd issued10,000 10% Debentures of ₹100 each at a discount of 8% and 1
repayable at a premium of 6%. The amount of profit required to write off Loss on issue
of Debentures will be
a) ₹1,40,000
b) ₹80,000
c) ₹60,000
d) Nil
17 X, Y and Z were partners in a firm. As the profits of the firm increased, Y demanded 3
that his share in the profits is to be increased since he is contributing more time than
other partners and X and Z agreed to this.
The new profit sharing ratio was decided to be 1:2:1. For this purpose, the goodwill of
the firm was valued at 2 years’ purchase of the average profits of last 5 years.
The profits of last 5 years were as follows.
Year 2019-20 2020-21 2021-22 2022-23 2023-24
Profit (₹) 4,00,000 4,80,000 7,33,000 (33,000) 2,20,000
Loss
You are required to
i) Calculate Goodwill of the firm
ii) Pass necessary journal entry for the treatment of Goodwill on change in
profit sharing ratio.
18 Mukul, Akshaya and Kanishka were partners sharing profits and losses in the ratio of 3
5:3:2. Goodwill appeared in the books of the firm at a value of ₹1,20,000 and General
Reserve at ₹40,000. Akshaya decided to retire from the firm. On the date her
retirement, the Goodwill of the firm was valued at ₹4,80,000. The new profit-sharing
ratio decided between Mukul and Kanishka was 2:3. Pass necessary journal entries on
Akshaya’s retirement.
19 Achu and Kichu were partners in a firm sharing profits and losses in the ratio of 3:2. 3
Their fixed capitals were ₹4,00,000and ₹2,00,000respectively. After the accounts for
the year were prepared, it was discovered that interest on capital @6%p.a as provided
in the partnership deed, was not credited to the capital accounts of partners before
distribution of profits.
Pass necessary adjustment entry showing your workings clearly.
OR
Sreehari and Athulya were partners in a firm sharing profits and losses in the ratio of
4:1. Their Capitals on 1st April 2023 were ₹2,40,000 and ₹1,60,000 respectively. On 1st
December 2023 the total Capital of the firm was fixed at ₹6,00,000 to be contributed
by them in the ratio of 3:2
According to the partnership deed, interest on capital is allowed to the partners
@6%p.a
Calculate interest on capital to be allowed for the year ending 31st March 2024
20 Poineer Ltd purchased Plant & machinery from Queen Ltd for ₹45,00,000. ₹5,00,000 3
was paid by accepting a Bills payable and the balance by issuing 6% Debentures of
₹100 each at a discount of 20%.
Pass journal entries in the books of purchasing Company.
OR
Neon Ltd forfeited 700 shares of ₹10 each at a premium of ₹2 per share for the non-
payment of allotment money of ₹5 per share (including premium) and first & final call
money of ₹3 per share. Of these 500 shares were reissued at ₹12 per share as fully paid.
Pass journal entries for the forfeiture and reissue of shares.
21 Sudheet. Keertish and Raghav were partners in a firm sharing profits in the ratio of 4
3:2:1. On 31st March 2024, their Balance sheet was as follows:
Page No.5
 Liabilities Amount Assets Amount
Capitals: Land & Building 2,10,000
Sudheer 4,00,000 Machinery 1,90,000
Keertish 1,50,000 Stock 30,000
Raghav 1,40,000 Investments 1,70,000
General Reserve 1,20,000 Cash 2,60,000
Loan 1,20,000 Advertisement 1,20,000
Creditors 50,000 Suspense A/c
Total 9,80,000 Total 9,80,000
th
Sudheer died on 30 June 2024. The partnership deed provided for the following on
the death of a partner:
i) Goodwill of the firm was to be valued at 21/2 years purchase of average
profits of past four years which were ₹3,60,000.
ii) Sudheer’s share of profits or loss till the date of death was to be calculated
on the basis of sales. Sales for the year ended 31st March 2023 amounted to
₹4,00,000 and that from1st April 2024 to 30th June 2024 amounted to
₹1,50,000. The profits for the year ended 31st March 2023 was ₹1,00,000.
iii) Interest on capital was to be provided @7% p.a
Prepare Sudheer’s Capital Account to be rendered to his Executors.
22 Pass Journal entries for the issue of debentures for the following transactions: 4
i) Issued 6,000 , 15% Debentures of ₹100 each at a premium of 5%,
redeemable at 10% premium.
ii) Issued ₹3,00,000 ,10% Debentures of ₹100 each at a discount of 8% ,
redeemable at 5% premium.
iii) Issued ₹7,00,000, 12% Debentures of ₹100 each at par, redeemable at 5%
premium
iv) Issued ₹10,00,000, 15% Debentures of ₹100 each at a discount of 8%,
redeemable at par.
23 JK Ltd invited applications for issuing 50,000 equity shares of ₹10 each at a premium 6
of 20%. The amount was payable as follows:
On application: ₹2 per share
On allotment: ₹6 per share including premium.
On first & final call- Balance amount.
The issue was over- subscribed by 1,00,000 shares. Applications for 30% shares were
rejected and money returned. Allotment was made to the remaining applicants as
follows on pro-rata basis.
Category-I To the applicants of 80,000 shares- 40,000 shares
Category -II To the applicants of 20,000 shares – 10,000 shares.
Excess money paid by the applicants who were allotted shares was adjusted towards
the sums due on allotment.
Deepak, a shareholder who had applied for 1,000 shares (belongs to category-I) failed
to pay the allotment and call money. Raju to whom 100 shares were allotted (belongs
to Category -II) paid the entire share money along with allotment. Deepak’s shares
were forfeited after the first & final call. The forfeited shares were re-issued at ₹15 per
share fully paid.
Pass necessary journal entries for the above transactions in the books of the company.
OR
a) Y Ltd. took a loan of Rs.15,00,000 from Canara Bank of India against the
security of tangible assests. In addition to principal security, it issued 10,000
11% debentures of Rs.100 each as collateral security. Pass necessary journal
entries for the above transactions, if the company decided to record the issue of
Page No.6
 11% debentures as collateral security and show the presentation in the Balance
Sheet of Y Ltd.
b) G Ltd is registered with an authorised Capital of ₹10,00,000 divided into
1,00,000 equity shares of ₹10 each. The company offered to the public for
subscription 80,000 shares. The amount per share was payables as follows:
On application: ₹5
On allotment: ₹3.
On first & final call- Balance amount.
The issue was fully subscribed and all amounts due were received except the
allotment and call money on 1,000 shares allotted to Mukul.
Show 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.
24 X and Y are partners in a firm sharing profits in the ratio of 4:1. On 31st March 2024, 6
their Balance sheet was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Creditors 80,000 Bank 48,000
Outstanding Salary 12,000 Debtors 72,000
General Reserve 20,000 Less: Prov.for
Capitals: Doubtful debts 8,000 64,000
X 2,40,000 Stock 80,000
Y 1,60,000 Furniture 1,60,000
Plant & Machinery 1,60,000
Total 5,12,000 Total 5,12,000
On the above date, Z was admitted for 1/4th share in the profits on the following terms:
a) Z will bring ₹2,00,000 as his capital and ₹40,000 for his share of goodwill
premium.
b) Debtors of ₹2,000 will be written off as bad debts and a provision of 5% will be
created on debtors for bad & doubtful debts
c) Stock will be reduced by ₹2,000, furniture will be depreciated by 4,000 and
Plant & Machinery will be depreciated by 10%.
d) Investments of ₹10,000 not shown in the Balance sheet will be taken into
account.
e) There was an outstanding bill for repairs of ₹2,000.
Prepare Revaluation Account and Partners Capital Accounts on Z’s admission.
OR
Abhishek and Atul and Gowrinath were partners in a firm sharing profits and losses in
the ratio of 4:3:3. On 31st March 2024, their Balance sheet was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Capitals: Bank 1,60,000
Abhishek 6,00,000 Debtors 1,80,000
Atul 5,00,000 Less: Prov. for
Gowrinath 3,00,000 Doubtful debts 20,000 1,60,000
General Reserve 1,20,000 Stock 2,00,000
Creditors 2,20,000 Machinery 6,00,000
Building 4,00,000
Patents 1,20,000
P/L A/c 1,00,000
Total 17,40,000 Total 17,40,000
On the above date, Abhishek retired due to ill health and it was agreed that:
a) Debtors of ₹10,000 will be written off as bad debts and provision for doubtful
debts is to be maintained @5% on debtors.
Page No.7
 b) An unrecorded creditor of ₹20,000 will be recorded.
c) Patents will be completely written off and 5% depreciation will be charged on
stock, machinery and building.
d) Atul and Gowrinath will share future profits in the ratio of 3:2.
e) Goodwill of the firm on Abhishek’s retirement was valued at ₹10,00,000.
f) Amount due to Abhishek will be transferred to his loan Account.
Prepare Revaluation Account and Partners Capital Accounts on Abhishek’s
retirement.
25 Amal and Bala were partners in a firm sharing profits in the ratio of their capitals. On 6
31st March 2024, their Balance sheet was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Capitals: Bank 4,00,000
Amal 20,00,000 Debtors 6,80,000
Bala 10,00,000 Stock 3,00,000
Amal’s Current A/c 50,000 Furniture 9,20,000
General Reserve 1,50,000 Machinery 16,40,000
Workmen’s compensation Bala’s Current A/c 1,60,000
Reserve 6,00,000
Creditors 3,00,000
Total 41,00,000 Total 41,00,000

On the above date the firm was dissolved:

a) Debtors were realised at a discount of 5%. 50% of the stock was taken over by
Amal at 10% less than the book value. Remaining stock was sold for ₹1,40,000.
b) Furniture was taken over by Bala for ₹7,00,000. Machinery was sold at
₹10,00,000.
c) Creditors were paid in full.
d) Expenses on realisation ₹20,000 were paid by Amal.
Prepare Realisation Account.
26 In the books of Finance Ltd 6
Balance sheet as at 31st March 2024 (Extract)
Particulars Note No 31st March
2024(₹)
I Equity & Liabilities:
i) Share holders’ funds
a) Share Capital 1 6,48,40,000
Notes to Accounts:No.1
Particulars Amount (₹)
Share Capital
Authorised capital
(1,00,00,000 equity shares of ₹10 each) 10,00,00,000
Issued Capital
(70,00,000 shares of ₹10 each) 7,00,00,000
Subscribed capital:
Subscribed and fully paid up share capital
(5,00,000 shares of ₹10 each) 50,00,000
Subscribed but not fully paid up
(65,00,000 shares of ₹10 each 6,50,00,000
Less: calls in arrears
40,000 shares @4 per share 1,60,000 6,48,40,000

Page No.8
 The company purchased a machinery for ₹ 2,50,00,000 from M/s Machinery Ltd and
payment was made by issue of equity shares of ₹10 each at a premium of 25%.
i) The number of shares issued to the Vendor of the machinery is
a) 2,50,000 b) 2,00,000 c) 20,00,000 d) 25,00,000
ii) Calculate the amount received on 40,000 shares
a) ₹2,40,000 b) ₹1,60,000 c) ₹4,00,000 d)₹ 6,50,000
iii) The paid -up capital per share at the time of forfeiture of shares was
a) ₹100 b)₹80 c)₹8 d)₹10
iv) The company decided to forfeit the shares on which calls in arrears was
existing and subsequently re-issued at ₹12 per share, fully paid up.
Calculate the Share forfeiture Account transferred to Capital Reserve.
a) ₹1,60,000 b) ₹2,40,000 c) ₹6,50,000 d) ₹4,00,000
v) What is the amount of paid up capital after the re-issue of forfeited shares?
a) ₹7,00,00,000 b) 70,00,000 c) 50,00,000 d) 6,50,00,000
vi) The amount of purchase consideration payable to the vendors of
machinery is
a) ₹2,50,000 b) ₹2,00,000 c) ₹20,00,000 d) ₹2,50,00,000

PART- B FINANCIAL STATEMENT ANALYSIS

27 The tool of financial statement analysis which helps to assess the profitability, 1
efficiency, liquidity and solvency position of an enterprise is
a) Cash flow statement
b) Comparative statement
c) Common size statement
d) Ratio analysis
28 Quick ratio of a company is 2:1. Which of the following transactions will result in 1
decrease in the ratio.
i) Sale of goods costing ₹10,000 for ₹12,000
ii) Cash collected from trade receivables ₹48,000.
iii) Purchase of goods for cash ₹38,000
iv) Payment to creditors ₹12,000
a) I),ii) and iii) b) Only i) c) Only iii) d) None of
these
OR
Calculate the cost of material consumed:
Opening inventory of material- ₹30,00,000 ; Opening stock in trade- ₹8,00,000,
Material purchased -₹1,00,00,000, Purchase of stock in trade -₹60,00,000; Closing
inventory of materials -₹10,00,000 and Closing inventory of materials -₹6,00,000
a) ₹60,00,000 b) ₹1,20,00,000 c) ₹80,00,000 d) None of
these
29 Which of the following is not correct about Cash flow statement? 1
i) It provides information about the cash receipts and cash payments of an
enterprise.
ii) It reconcile the ending cash balance with the balance as per bank statement.
iii) It provides information about the operating, investing and financing
activities.
iv) It explains the deviation of cash from earnings.
a) Only i) b) Only ii) c) Only iii) d) Only iv
30 Statement -I Cash flow statement is a substitute of Income statement. 1
Statement -II Cash flow statement records only Cash items.
Page No.9
 Alternatives
a) Both the statements are correct.
b) Statement -I is correct and Statement -II is incorrect.
c) Statement -I is incorrect and Statement -II is correct.
d) Both the statements are incorrect.
31 Under which Main heading and sub- heading will you classify the following items 3
while preparing the Balance sheet as per Schedule III of the Companies Act 2013?
a) Security premium Reserve
b) Stock of work in progress
c) Patents
d) Mortgage loan
e) Investments
f) General Reserve.
32 Complete the Comparative Statement of Profit&Loss 3
Particulars 2022-23 2023-24 Absolute % Change
Change
Revenue from Operation 20,00,000 40,00,000 ? ?
Other income ? 80,000 40,000 ?
Total income 20,40,000 ? 20,40,000 50%
Less: Expenses 10,00,000 20,00,000 ? 50%
Profit before Tax ? 20,80,000 10,40,000 ?
Less: Tax 5,20,000 ? 5,20,000 ?
Profit after tax ? ? ? 50%

33 Calculate Opening and closing inventory from the following information: 4

Revenue from operation-₹5,00,000 ; Gross profit-20% of Revenue from operation,
Return inwards -₹20,000 ; Return outwards -₹50,000 ; Purchases -₹2,50,000 ; Opening
inventory is 2 times of the closing inventory.
OR
From the following information Calculate
(i) Current ratio
(ii) Working capital Turn over ratio.

Particulars Amount (₹)

Non-current assets 2,50,000
Share holders’ funds 3,00,000
Revenue from operations 7,50,000
Total assets 5,00,000
Non- current liabilities 1,00,000

34 Following information of A Ltd is available 6

Particulars 31st March 2024 31st March 2023
Machinery at cost 84,00,000 80,00,000
Accumulated depreciation 22,00,000 20,00,000
Patents 32,00,000 56,00,000
Additional information:
i) During the year 2023-24, a machine costing ₹8,00,000, on which
accumulated depreciation provided ₹4,80,000 was sold for ₹4,00,000
ii) Patents were written off to the extent of ₹8,00,000 and some patents were
sold at a profit of ₹4,00,000

Page No.10
From the above information, calculate
a) Machinery purchased during the year 2023-24
b) Depreciation charged during the year
c) Amount of patents sold
d) Cash flow from Investing activities

Page No.11
Marking Scheme

1 b) K-₹50,000 , L- ₹1,00,000 and M- ₹30,000 1

2 a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of A 1

3 c) (ii) and (iii) OR 1

b) 5%

4 d) 7:2:3 1

OR

d)Nil

5 c)Gulab’s Capital A/c Dr 8,000 1

Thulasi’s Capital A/c Dr 32,000
To Anand’s Capital A/c 40,000
6 d) Assertion (A) A is false , but Reason (R) is true 1

7 a)Only (i)&(iv) 1

8 a)Debited, Goodwill 1
OR
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation
of A .
9 c) 7:6:2 1

10 c) Debit P/L Suspense Account 1

OR
b)Stock A/c Dr 15,000
To Revaluation 15,000
11 d) ₹4,46,000 1

12 c)Anil’s Current Account will be credited by ₹8,000 1

OR
d) All of the above
13 a)₹10,00,000 1

14 c)₹5,000 debited to Revaluation Account. 1

OR
c) Only (iv)
15 d)₹4,00,000 1

16 a)₹1,40,000 1

17 Calculation of goodwill: 3
Average profit= 4,00,000+4,80,000+7,33,000+(33,000)+2,20,000
3

= 3,60,000 (1/2) mark

Goodwill= Average profit X no. of years’ purchase
= 3,60,000X2=7,20,000 (1/2) mark
Calculation of sacrifice/ gain
X- 1 -1 = 4-3 = 1/12 (sacrifice)
3 4 12

Page No: 1
 Y – 1/3-2/4 = 4-6 = (2/6) Gain
12
Z - 1 -1 = 4-3 = 1/12 (sacrifice) (1 mark)
3 4 12
Particulars LF Amount Dr(₹) Amount Cr(₹)
Y’s Capital A/c Dr 2,40,000
To X’s Capital 1,20,000
To Z’s Capital 1,20,0000
(Adjustment of goodwill on change in
profit sharing ratio) (1 mark)

18 Particulars LF Amount Dr(₹) Amount Cr(₹) 3

Mukul’s Capital A/c Dr 60,000
Akshaya’s Capital A/c Dr 36,000
Kanishka’s Capital A/c Dr 24,000
To Goodwill 1,20,000
(Old goodwill written off to partners)
General Reserve A/c Dr 40,000
To Mukul’s Capital A/c 20,000
To Akshaya’s Capital A/c 12,000
To Kanishka’s Capital A/c 8,000
(Distribution of General Reserve)
Kanishka’s Capital A/c Dr 1,92,000
To Mukul’s Capital A/c 1,44,000
To Akshaya’s Capital A/c 48,000
(Adjustment of goodwill on
Akshaya’s retirement)

Calculation of gaining ratio

Mukul – 2/5-5/10 = 4-5 = (1/10)sacrifice
10

Kanishka - 3/5-2/10 =6-2 = 4/10 (gain)

10
Therefore Kanishka has to compensate to both Mukul and Akshaya in 1: ratio.

Page No: 2
19 Adjustment Table 3
Particulars Achu Kichu Total
Interest on capital @6%p.a 24,000 12,000 36,000
Profit already been distributed in 21,600 14,400 ( 1 mark)
3:2 ratio 36,000
(1/2 mark)
Surplus/ deficiency 2,400 (2,400) 0 (1/2
mark)
Journal entry
Particulars LF Amount Dr(₹) Amount Cr(₹)
Kichu’s Capital A/c Dr 2,400
To Achu’s Capital 2,400
(Omission of interest on capital (1 mark)
rectified)
OR
Opening capital of Sreehari and Athulya =2,40,000 and 1,60,000 =4,00,000
Remaining amount to be brought in by
Sreehari and Athulya = 2,00,000 ( to be brought in 3:2)

Sreehari=2,00,000X3/5=1,20,000
Athulya= 2,00,000X2/5 = 80,000
Interest on capital 2,40,000X6/100 +1,20,000X 6/100 X4/12
Sreehari =14,400 +2,400
=16,800
Athulya 1,60,000 X6/100 + 80,000 X6/100 X4/12
=9,600 + 1,600
=11,200

20 Journal entries in the books of Pioneer Ltd

Particulars LF Amount Dr(₹) Amount Cr(₹)
3
Machinery A/c Dr 45,00,000
TO Queen Ltd 45,00,000
(Purchases of Machinery) (1/2 mark)
Queen Ltd A/c Dr 45,00,000
Discount on issue of Debenture A/c Dr 10,00,000
To B/P 5,00,000
To 6% Debentures 50,00,000
(Settlement of Quuens Ltd by (11/2 mark)
accepting a B/P and issue of
debentures at a discount)

Total amount due to Queens Ltd=45,00,000

Less : the amount paid as B/P = 5,00,000

Page No: 3
 Net amount due 40,00,000
0
No. of debentures issued= 40,00,000 = 50,000 (1 mark)
80
OR
Particulars LF Amount Dr(₹) Amount Cr(₹)
Share Capital A/c (700X10) Dr 7,000
Security Premium Reserve A/c Dr 1,400
(700X2)
To Calls in arrears A/c (700X8) 5,600
To Share forfeiture A/c (700X4) 2,800
(Forfeiture of 700 shares) (1 mark)
Bank A/c (500X12) Dr 6,000
To Share Capital (500X10) 5,000
To Security Premium (500X2) 1,000
(Re-issue of forfeited shares) (1 mark)
Share forfeiture A/c Dr 2,000
To Capital Reserve 2,000
(Transfer of gain on forfeiture to (1/2 mark)
Capital Reserve)
-------------------------------------------------
Calculation of amount transferred to Capital Reserve:
2,800 X 500 =2,000 (1/2 mark)
700
21 Sudheer’s Capital Account 4
Particulars Amount Particulars Amount
Advertisement Suspense Balance B/d 4,00,000 (1/2)
A/c 60,000 Keertish’s Capital 75,000
Sudheer’s Executors A/c 5,38,250 Raghav’s Capital 37,500
(1/2 General Reserve 60,000 (1/2)
mark) P/L Suspense A/c 18,750
Interest on capital 7,000
Total 5,98,250 Total 5,98,250
i) Calculation of Goodwill:
Goodwill= Average profit no.of years’ purchase
Average profit= 3,60,000 = 90,000
4
Therefore Goodwill= 90,000 X2.5=2,25,000
Sudheer’s share of Goodwill= 2,25,000 X3/6=1,12,500 which should be compensated by
Keertish & Raghav in 2:1 ratio (gaining ratio) 75,000 and 37,500 (1 mark)
ii) Profit up to the date of death
= Profit of the PY X Sales of the current year up to the date of death X3/6
Sales of PY
= 1,00,000 X1,50,000 X3/6 =37,500X3/6 =18,750 (1 mark)
4,00,000
iii) Interest on capital = 4,00,000X7/100 X3/12 =7,000 (1/2 mark)
22 Journal entries in the books of ------------------------------ 4
Particulars LF Amount Dr(₹) Amount
Cr(₹)
i)Bank A/c (6,000X105) Dr 6,30,000
To Debenture Application & Allotment 6,30,000
A/c

Page No: 4
(Receipt of application money on 6,000
debentures at a premium)
Debenture Application &
Allotment A/c Dr 6,30,000
Loss on issue of Debenture A/c Dr 60,000
To 15% Debenture A/c 6,00,000
To Security Premium Reserve 30,000
To Premium on Redemption 60,000
Of Debentures A/c
(Transfer of Application money to 15%
Debentures& Security premium)

Particulars LF Amount Dr(₹) Amount Cr(₹)

ii) )Bank A/c (3,000X92) Dr 2,76,000
To Debenture Application & Allotment 2,76,000
A/c
(Receipt of application money on 3,000
debentures at a premium)
Debenture Application &
Allotment A/c Dr 2,76,000
Loss on issue of Debenture A/c Dr 39,000
(Discount+ Preium on redemption)
To 10% Debenture A/c 3,00,000
To Premium on Redemption 15,000
Of Debentures A/c
(Transfer of Application money to 15%
Debentures after adjustment of loss on
issue)

Particulars LF Amount Dr(₹) Amount Cr(₹)

iii) Bank A/c (7,000X100) Dr 7,00,000
To Debenture Application & Allotment 7,00,000
A/c
(Receipt of application money on 7,000
Debentures)
Debenture Application &
Allotment A/c Dr 7,00,000
Loss on issue of Debenture A/c Dr 35,000
(Preium on redemption)
To 12% Debenture A/c 7,00,000
To Premium on Redemption 35,000
Of Debentures A/c
(Transfer of Application money to 10%
Debentures after adjustment of loss on
issue of Debentures)
Particulars LF Amount Dr(₹) Amount Cr(₹)
iv) Bank A/c (10,000X92) Dr 9,20,000
To Debenture Application & Allotment 9,20,000
A/c
Receipt of application money on 10,000
Debentures)

Page No: 5
 Debenture Application &
Allotment A/c Dr 9,20,000
Discount on issue of Debenture A/c Dr 80,000
To 15% Debenture A/c 10,00,000
Transfer of Application money to 10%
Debentures after adjustment of
discount on issue)

23 Journal entries in the books of JK Ltd 6

Particulars LF Amount Dr(₹) Amount Cr(₹)
Bank A/c (1,50,000X2) Dr 3,00,000
To Share Application 3,00,000 (1/2)
(Receipt of Application money)
Share Application A/c (1,50,000X2) Dr 3,00,000
To Share Capital (50,000X2) 1,00,000
To Bank (45,000X2) 90,000
To Share allotment (55,000X2) 1,10,000 (1)
(Transfer of application money to Share
Capital, Share allotment and refund of
rejected application money)
Share Allotment A/c (50,000X6) Dr 3,00,000
To Share Capital (50,000X4) 2,00,000
To Security Premium (50,000X2) 1,00,000 (1/2)
(Allotment money due along with security
premium)
Bank A/c Dr 1,88,400
Calls in arrears A/c Dr 2,000*
To Share allotment
(3,00,000- 1,10,000) 1,90,000
400

Page No: 6
 To Calls in advance (100X4) (1/2)
(Receipt of allotment money and calls in
advance on 100 shares) 2,00,000
Share I & Final Call A/c (50,000X4) Dr
To Share Capital 2,00,000
(First & final call money due)
Bank A/c Dr 1,97,600
Calls in arrears A/c (500X4) Dr 2,000
Calls in advance A/c (100X4) Dr 400
To Share I & Final Call A/c 2,00,000(1)
(Receipt of call money and adjustment of
calls in advance)
Share Capital A/c (500X10) Dr 5,000
Security Premium (500X2) Dr 1,000
To Calls in arrears
To Share forfeiture 3,000
(Forfeiture of shares for the non-payment 3,000 (1)
of allotment and call money)
7,500
Bank A/c (500X15) Dr
To Share Capital (500X10)
5,000
To Security Premium (500X5)
2,500 (1)
(Re-issue of forfeited shares at a premium)
3,000
Share forfeiture A/c Dr
To Capital Reserve 3,000 (1/2)
(Transfer of Share forfeiture to Capital
Reserve)

Calculation of calls in arrears on allotment:

No. of shares applied by Deepak-1,000
Pro-rata ratio ½
Therefore No. of shares allotted to Deepak= 1,000X1/2=500
Application money received from Deepak- 1000X2 =2,000
Less: Amount transferred to Share Capital-500X2 = 1,000
Excess application money 1,000
Allotment money due from Deepak 500X6 =3,000
Less: Excess application money 1,000
Calls in arrears 2,000*

Calculation of calls in advance:

No. of shares allotted to Raju 100
Amount paid along with allotment – 100X4 = 400
OR
a) Journal entries
Date Particulars LF Amount Dr(₹) Amount Cr(₹)
Bank A/c Dr 15,00,000
To Bank Loan A/c 15,00,000
(Loan Taken from Bank)
(1/2 mark)
Debenture suspense A/c Dr 10,00,000
To 11% Debentures a/c 10,00,000
( Debentures issued as collateral (1/2 mark)

Page No: 7
 security)
--------------------------------------

Balance sheet
Particulars Note No Amount (₹)
I Equity & Liabilities:
i) Non current Liabilities
a) Long Term Borrowings 15,00,00
(1)mark)

Notes to Accounts: No.1

Particulars Amount (₹)
Long Term Borrowings
Secured loan from Canara Bank 15,00,000
10,000 11% debentures of Rs 100 each 10,00,000 (1 mark)
Less: Debenture suspense a/c Nil
10,00,000

b) In the books of K K Ltd

Balance sheet as per Schedule III Part I of Companies Act 2013
Particulars Note No Amount (₹)
I Equity & Liabilities:
ii) Share holders’ Funds
b) Share Capital 1 7,95,000
(1/2 mark)

Notes to Accounts: No.1

Particulars Amount (₹)
are Capital:
Authorised Capital
(1,00,000 equity shares of ₹10 each) 10,00,000
Issued Capital (1 mark)
(80,000 equity shares of ₹10 each) 8,00,0000
Subscribed but not fully paid Capital (1 mark)
80,000 shares of ₹10 each fully called up and paid
up 8,00,000
Less : Calls in arrears
1,000 shares @ ₹5 each (on allotment
₹3 and First & final call ₹ 2 per share) ( 5,000) 7,95,000
(1/2 mark)

Page No: 8
24 In the books of X,Y & Z 6
Revaluation Account
Particulars Amount (₹) Particulars Amount (₹)
Bad debts 2,000 Excess Provision 2,500
Stock 2,000 Investments 10,000
Furniture 4,000 Capital Accounts(loss)
Plant & Machinery 16,000 X- 10,800
O/s Repairs 2,000 Y 2,700 13,500
Total 26,000 Total 26,000
(3 marks)
Capital Accounts:
Particulars X Y Z Particulars X Y Z
Revaluatio 10,800 2,700 Balance 2,40,000 1,60,000
B/d
Bank 2,00,000
Premium 32,000 8,000
General 16,000 4,000
Reserve
Total 2,88,000 1,72,000 2,00,000 Total 2,88,000 1,72,000 2,00,000
(3 marks)

OR
In the books of Aowrinath
Revaluation Account
Particulars Amount (₹) Particulars Amount (₹)
Bad debts 4,000 Excess provision 1,500
Creditors 20,000 Capital Accounts(loss)
Patents 1,20,000 Abhishek 81,000
Stock 10,000 Atul 60,750
Machinery 30,000 Gowrinath 60,750 2,02,500
Buildings 20,000

Page No: 9
 Total 2,04,000 Total 2,04,000
(3 marks)
Capital Accounts
Particulars Abhishek Atul Gowrinat Particulars Abhishek Atul Gowrinat
h h
Revaluatio 81,000 60,750 60,750 Balance 6,00,000 5,00,000 3,00,000
n B/d
P/L A/c 40,000 30,000 30,000 General 48,000 36,000 36,000
Reserve
Abhishek’s 3,00,000 1,00,000 Atuls’ 3,00,000
Capital Capital
Abhishek’s 9,27,000 Gowrinat 1,00,000
Loan A/c h’s Capital
Balance 1,45,250 1,45,250
C/d
Total 10,48,000 5,36,000 5,36,000 Total 10,48,000 5,36,000 5,36,000
(3 marks)
Calculation of gaining ratio:
Atul – 3/5-3/10 =3/10
Gowrinath- 2/5-3/10=1/10
25 In the books of Amal & Bala 6
Realisation Account
Particulars Amount (₹) Particulars Amount (₹)
Debtors 6,80,000 Creditors 3,00,000
Stock 3,00,000 Bank: (1/2 mark)
Furniture 9,20,000 Debtors 6,46,000
Machinery 16,40,000 Stock 1,40,000
Bank: (1 mark) Machinery 10,00,000 17,86,000
Creditors 3,00,000 (11/2 mark)
(1/2 mark) Amal’s Capital A/c
Amal’s Capital A/c Stock 1,35,000
Expenses 20,000 (1/2 mark)
(1/2 mark) Bala’s Capital A/c
Furniture 7,00,000
Capital Accounts (loss (1/2 mark)
on Realisation)
Amal 6,26,000
Bala 3,13,000 9,39,000
(1 mark)
Total 38,60,000 Total 38,60,000
26 i) c) 20,00,000 6
ii) a)₹2,40,000
iii) d)₹10
iv) b) ₹2,40,000
v) a) ₹7,00,00,000
vi) d) ₹2,50,00,000
PART- B FINANCIAL STATEMENT ANALYSIS
27 d) Ratio analysis 1

28 c) Only iii) 1
OR
Ans: b) Cost of materials consumed= Opening stock + Purchases- Closing stock
= 30,00,000+ 1,00,00,000- 10,00,000= 1,20,00,000

Page No: 10
29 c) Only iii) 1

30 c) Statement -I is incorrect and Statement -II is correct. 1

31 Item Main head Sub-head 3

a)Security premium Shareholders fund Reserves & Surplus
Reserve
b) Stock of work in Current Assets Inventory
progress
c) Mortgage loan Non Current liabilities Long term borrowings
d) Patents Non Current assets Intangible assets
e) Investments Non Current assets Non-current investments
f) General Reserve. Shareholders fund Reserves & Surplus

32 Comparative Income Statement

Particulars 2022-23 2023-24 Absolute % Change
Change
Revenue from 20,00,000 40,00,000 2,00,000 50%
Operation
Other income 40,000 80,000 40,000 50%
Total income 20,40,000 40,80,000 20,40,000 50%
Less: Expenses 10,00,000 20,00,000 10,00,000 50%
Profit before Tax 10,40,000 20,80,000 10,40,000 50%
Less: Tax 5,20,000 10,40,000 5,20,000 50%
Profit after tax 5,20,000 10,40,000 5,20,000 50%
33 G/P= Net Revenue from Operation X20/100 3
Net Revenue from Operation=RFO- Return inwards
=5,00,000-20,000= 4,80,000
Therefore G/P= 4,80,000X20/100= 96,000 (1/2 mark)
Cost of Revenue from operation = Net Revenue from Operation- G/P
= 4,80,000-96,000= 3,84,000 (1/2 mark)
Cost of Revenue from operation= opening inventory+ Net Purchases+ Direct expenses-
Closing inventory.
Let the closing inventory be x, then opening inventory will be 2x
Now the equation will be
2x+ (250,000-50,000)- x=3,84,000
2x-x= 3,84,000-2,00,000= 1,84,000 (closing inventory) (1 mark)
Therefore opening inventory is 2x1,84,000= 3,68,000 (1 mark)
OR
i) Current ratio= Current assets
Current liabilities
Current assets= Total assets- Non- current assets
=5,00,000-2,50,000 =2,50,000
Current liabilities= Total assets- (Non-current liabilities + Shareholders’ funds)
= 5,00,000-(3,00,000+1,00,000)-=1,00,000
= 2,50,000 = 2.5:1
1,00,000
ii) Working capital Turnover ratio = Revenue from operation
Working capital

= 7,50,000 =5 times.
1,50,000

Page No: 11
34 Machinery Account
Particulars Amount Particulars Amount
Balance B/d 80,00,000 Bank (sale) 4,00,000
Statement of P/L 80,000 Accumulated 4,80,000
(Gain on sale of machinery) depreciation(
Bank(purchase) 12,00,000 depreciation of
machinery sold)
Balance C/d 84,00,000
Total 92,80,000 Total 92,80,000
Gain on sale of machinery= Sale price- Book value
=4,00,000-3,20,000=80,000
a) Machinery purchased during the year=12,00,000
Accumulated Depreciation
Particulars Amount Particulars Amount
Machinery A/c 4,80,000 Balance B/d 20,00,000
Balance C/d 22,00,000 Depreciation (Balance) 6,80,000
Total 26,80,000 26,80,000
b) Depreciation charged during the year=6,80,000

Patents Account
Particulars Amount Particulars Amount
Balance B/d 56,00,000 Bank 20,00,000
Statement of P/L 4,00,000 Amortisation 8,00,000
(Gain on sale of patent) (Patent written off)
Balance C/d 32,00,000
Total 60,00,000 Total 60,00,000
c) Sale of patent = 20,00,000
Cash Flow from Investing activities
Particulars Amount
Sale of Machinery 4,00,000
Purchase of machinery (12,00,000)
Sale of Patent 20,00,000
Cash Flow from Investing activities 12,00,000
d) Cash flow from Investing activities- 12,00,000

Page No: 12