NAVODAYA VIDYALAYA SAMITI

HYDERABAD REGION
Pre – Board-2 Examination – 2024-25
Answer Key cum Marking Scheme
SET – 1
CLASS: XII Subject: Accountancy (055)

Ques. Answer Marks

1. b) [Link] 1
2. c) A is true but R is false 1
3. a) ₹12,000; Capital Reserve 1
OR
b) 4%
4. d) 3:4 1
5. c) Bad Debts A/c Dr. 2,000 1
To Debtors A/c 2,000

Provision for doubtful debts A/c Dr. 1,500

Revaluation A/c Dr. 500
To Bad Debts A/c 2,000
6. a) Application money must be at least 6% of the nominal value of shares. 1
OR
d) ii, i, iv, iii
7. c) [Link] 1
OR
b) Sitar’s Capital A/c Dr. 500
To Veena’s Capital A/c 500
8. c) ₹50,00,000 1
9. a) ₹1,50,000 1
10. c) Credited with ₹5,000
OR 1
b) (A) – (iii); (B) – (i); (C) – (iv); (D) – (ii)
11. c) Statement I is true while Statement is false. 1
12. b) 10,000
OR 1
d) 5%
13. c) Dick claimed that he should be provided with Interest on Loan advanced by him to the firm 1
@ 6% p.a.
14. a) ₹3,000 1
15. b) ₹2,00,000 1
16. d) Credited to Profit & Loss Appropriation Account 1
17. Working Notes:
i) Interest on capital:
Sanyam = 50,000 x 10/100 = 5,000
Utsah = 60,000 x 10/100 = 6,000 (1/2 mark)
 ii) Interest on Utsah’s Drawings = 10,000 x 6/100 x 6/12 = 300 (1/2 mark)
iii)Interest on loan advanced by Sanyam = 20,000 x 6/100 x 9/12 = 900 (1/2 mark)

Profit & Loss appropriation A/c

Particulars Amount (₹) Particulars Amount (₹)
To Interest on capital: By Net profit 29,100
Sanyam 5,000 before all
Utsah 6,000 appropriations
To profit transferred to: 11,000 (30,000 – 900)
Sanyam’s current A/c By Interest on
11,040 Utsah’s Drawings 300 1½
Utsah’s current A/c
7,360 18,400
29,400 29,400
OR
Statement showing adjustment of capital accounts
Particulars Badal Barkha Bijli Firm
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Interest on capital to be 2,400 2,000 1,6 6,000
debited @ 2% p..a 00
Interest on drawings to be 660 810
debited @6% p.a. 150
Profit to be credited equally 2,270 2,270 2,2 6,810
70 2
790 270
520

Adjustment Entry:

Badal’s Capital A/c Dr. 790

To Barkha’s Capital A/c 270
To Bijli’s Capital A/c 520
(Being adjustment entry passed) 1
18. Year Profits Adjustments Adjusted profits
2020-21 25,000 (25,000 + 5,000) 30,000
2021-22 32,000 (32,000 – 17,000) 15,000
2022-23 45,000 --- 45,000

Total Profits = 90,000

Average Profits = 90,000/3 = 30,000 2 marks

Goodwill = Capitalised value of average profits – Capital employed

= (30,000 x 100/10) – 2,50,000 = 50,000 1 mark 3
19 Notes to Accounts: 2
Particulars Amount (₹)
1. Share Capital
i) Authorised Share Capital
(1,05,000 Equity Shares of ₹10 each) 10,50,000
ii) Issued Share Capital
(80,000 Equity Shares of ₹10 each) 8,00,000
iii) Subscribed Share Capital
Subscribed but not Fully Paid up
 (80,000 equity shares of ₹8 each) 6,40,000
Less: Calls in Arrears (3,000) 6,37,000

Balance – Sheet of New India Limited

(as on 31.03.________)
Particulars Note Current Previous 1
No. Year Year
I Equity and Liabilities
a) Shareholders’ Fund
(i) Share Capital 1 6,37,000

OR
1.4.21 Bank A/c Dr. 63,00,000
To Debenture application & allotment A/c 63,00,000
1.4.21 Debenture application & allotment A/c Dr. 63,00,000
Loss on issue of debentures A/c Dr. 4,80,000
To 10% Debentures A/c 60,00,000
To Securities Premium 3,00,000
To Premium on Redemption 4,80,000 ½x6
30.9.21 Debenture Interest A/c Dr. 3,00,000
To Debenture holders A/c 3,00,000
30.9.21 Debenture holders A/c Dr. 3,00,000
To Bank A/c 3,00,000
31.3.22 Debenture Interest A/c Dr. 3,00,000
To Debenture holders A/c 3,00,000
31.3.22 Debenture holders A/c Dr. 3,00,000
To Bank A/c 3,00,000

20.
Z’s Capital Account

Particulars Amount Particulars Amount

To Z’s Executor’s A/c 2,84,500 By Balance b/d 2,50,000
By X’s Capital A/c 10,000 3
By Y’s Capital A/c 20,000
By P&L Suspense A/c 4,500
2,84,500 2,84,500
21. (i) General Reserve A/c Dr. 1,20,000
To Humpty’s Capital A/c 48,000
To Dumpty’s Capital A/c 72,000
(Being General Reserve distributed in the old ratio i.e. 2:3) 1 mark

(ii) Workmen Compensation Reserve A/c Dr. 80,000

Revaluation A/c Dr. 10,000
To Provision for outstanding claim A/c 90,000 1 mark
(Being a claim for compensation met against Workmen Compensation reserve and profits)

(iii) Dumpty’s Capital A/c Dr. 3,750

To Humpty’s Capital A/c 3,750 1 mark
 (Being goodwill of the firm adjusted between the partners in their gaining and sacrificing
ratio)

(iv) Stock A/c Dr. 5,000

Building A/c Dr. 50,000
To Revaluation A/c 55,000
(Being increase in stock and Building credited to Revaluation A/c) ½
mark

(v) Revaluation A/c Dr. 45,000

To Humpty’s Capital A/c 18,000
To Dumpty’s Capital A/c 27,000
(Being profit on revaluation credited in the ratio 2:3) ½
mark

22. Net worth of the business = 7,50,000 – 2,00,000 = 5,50,000

Purchase Consideration = 5,20,000 1
Capital Reserve = 5,50,000 – 5,20,000 = 30,000
No. of equity shares = 3,30,000/11 = 30,000

In the books of Naveen Ltd.

Particulars L Debit (₹) Credit (₹)
F
(i) Sundry Assets A/c Dr. 7,50,000
To Liabilities A/c 2,00,000 1½
To Puratan Ltd. 5,20,000
To Capital Reserve A/c 30,000
(Being Sundry Assets and Liabilities
taken over from Puratan Ltd.)
(ii) Puratan Ltd. Dr. 5,20,000
To Bank A/c 90,000
To Bills Payable A/c 1,00,000
To Equity Share Capital A/c 3,00,000 1½
To Securities Premium A/c 30,000
(Being the purchase consideration
duly made to Puratan Ltd.)

23. Realisation Account

Particulars Amount (₹) Particulars Amount (₹)
To Building 6,20,000 By Sundry Creditors 2,50,000
To Furniture 2,50,000 By Mrs. C’s Loan 1,50,000
To Machinery 3,30,000 By Investment Fluctuation
To Patents 50,000 Fund 1,20,000
To Goodwill 69,000 By A’s Capital A/c 10,000
To Stock 3,00,000 By C’s Capital A/c 80,000
To Debtors 1,00,000 By B’s Capital A/c 80,000
To C’s Capital A/c 1,50,000 By Bank: 3
To A’s Capital A/c 8,000 i) Stock 1,80,000
ii) Debtors 75,000
iii) Building 3,50,000
iv) Patents 40,000
 v) Furniture 1,40,000
vi) Machinery 3,30,000 11,15,000
By Loss transferred to:
A’s Capital A/c
28,800
B’s Capital A/c 28,800 72,000
C’s Capital A/c 14,400
18,77,000 18,77,000

Capital Accounts of A, B and C

Particulars A B C Particulars A B C
To P&L A/c 40,000 40,000 20,000 By Balance b/d 5,00,000 4,00,000 3,00,000 3
To Realisation By Realisation
(loss) 28,800 28,800 14,400
To Realisation 8,000 --- 1,50,000
To Bank A/c
10,000 80,000 80,000
4,29,200 2,51,200 3,35,600
5,08,000 4,00,000 4,50,000 5,08,000 4,00,000 4,50,000

In the books of Pantaloon Ltd.

JOURNAL

Particulars LF Debit (₹) Credit (₹)

Bank A/c Dr. 3,00,000
To Equity Share application A/c 3,00,000
(Being application money received)
Equity Share Application A/c Dr. 3,00,000
24. To Equity Share Capital A/c 2,00,000
To Equity Share allotment A/c 1,00,000
(Being application money transferred to
share capital and excess money being
adjusted to share allotment)
Equity Share Allotment A/c Dr. 2,50,000
To Equity Share capital A/c 1,50,000
To Securities Premium A/c 1,00,000
(Being allotment money due with
premium)
Bank A/c Dr. 1,48,000
Calls in arrears A/c Dr. 2,000
To Equity Share allotment A/c 1,50,000
(Being allotment money received
Equity Share capital A/c Dr. 14,000
Securities Premium A/c Dr. 4,000
To Calls in arrears A/c 2,000 6
To Equity Share forfeiture A/c 16,000
(Being 2,000 shares of Raghu forfeited
due to non-payment of allotment)
Bank A/c Dr. 8,000
Share forfeiture A/c Dr. 6,000
To Share Capital A/c 14,000
(Being 2,000 shares of Raghu reissued
for ₹4, ₹7 paid – up)
 Equity Share forfeiture A/c Dr. 10,000
To Capital Reserve A/c 10,000
(Being balance in Share forfeiture A/c
transferred to Capital Reserve)
Equity Share 1st & final call A/c Dr. 1,50,000
To Equity Share Capital A/c 1,50,000
(Being equity share 1st & final call
money due on 50,000 Equity shares)
Bank A/c Dr. 1,47,000
Calls in Arrears A/c Dr. 3,000
To Equity Share 1st & final call A/c 1,50,000
(Being equity share 1st & final call
money received)
Equity Share Capital A/c Dr. 10,000
To Calls in Arrears A/c 3,000
To Equity Share forfeiture A/c 7,000
(Being 1,000 equity shares of Somu
forfeited for non-payment of 1st & final
call)
Bank A/c Dr. 6,400
Equity Share forfeiture A/c Dr. 1,600
To Equity Share Capital A/c 8,000
(Being 800 forfeited equity shares of
Somu reissued for ₹8 per share, fully
paid-up.)
Equity Share forfeiture A/c Dr. 4,000
To Capital Reserve A/c 4,000
(Being the balance in Equity Share
forfeiture account transferred to Capital
Reserve)

Working Notes:
1) Amount received on allotment:
Amount due on allotment of 50,000 shares = 2,50,000
Less: Calls in advance = 1,00,000
Less: Calls in arrears:
Amount due on allotment on 2,000 shares = 2,000 x 5 = 10,000
Less: Excess app. money adjusted towards allotment = (4,000-2,000) x 4 = (8,000)
Calls in arrears = 2,000
Amount received on allotment =1,48,000

2) Balance in Share forfeiture account transferred to Capital Reserve:

= (7,000/1000 x 800) – 1,600 = 4,000

OR
(i)
Particulars LF Debit (₹) Credit (₹)
Share capital A/c Dr. 50,000
To Share allotment A/c 9,000
To Share 1st & final call A/c 20,000
To Share forfeiture A/c 21,000
 (Being 5,000 shares of Hardik forfeited
for the non-payment of allotment and
1st & final call)
Bank A/c Dr. 60,000
To Share Capital A/c 50,000
To Securities Premium A/c 12,000
(Being the forfeited shares reissued for
₹12 per share, fully paid-up)
Share forfeiture A/c Dr. 21,000
To Capital Reserve A/c 21,000
(Being the balance in Share forfeiture
account transferred to Capital Reserve) 3

(ii)
Particulars LF Debit (₹) Credit (₹)
Share capital A/c Dr. 70,000
Securities Premium A/c Dr. 14,000
To Share allotment A/c 35,000
To Share 1st & final call A/c 21,000
To Share forfeiture A/c 28,000
(Being 7,000 shares of Rishabh
forfeited for the non-payment of 3
allotment and 1st & final call)
Bank A/c Dr. 21,000
Share forfeiture A/c Dr. 14,000
To Share Capital A/c 35,000
(Being half of the forfeited shares
reissued for ₹6 per share, fully paid-up)

25.
Revaluation Account
Particulars Amount (₹) Particulars Amount (₹)
To Bad debts 500 By unrecorded 8,000
To Machinery 1,000 investments
To profit transferred 2
to:
Aryan 2,600
Aakash 1,950
Ansh 1,950 6,500
8,000 8,000

Capital Accounts of Aryan, Aakash, Ansh & Arpit

Particulars Aryan Aakash Ansh Arpit Particulars Aryan Aakash Ansh Arpit
To Invest. 3200 2400 2400 By
To ---- Bal.b/d 35000 20000 30000 ----
Goodwill 3200 2400 2400 By Cash 20,000 2
To Cash 9200 650 10,650 ---- By
To Bal.c/d 24,000 18,000 18,000 20,000 Premium 2000 1500 1500 ----
By Rev. 2600 1950 1950 ----
39,600 23,450 33,450 20,000 39,600 23450 33,450 20,000
 Cash Account
Particulars Amount (₹) Particulars Amount ( ₹)
To Balance b/d 10,500 By Aryan 9,200
To Arpit 20,000 By Aakash 650
To Premium 5,000 By Ansh 10,650
By Balance c/d 15,000
35,500 35,500
Balance Sheet of Aryan, Aakash, Ansh and Arpit

Liabilities Amount (₹) Assets Amount (₹)

Capital A/cs: Furniture 24,000
Aryan 24,000 Machinery 21,000
Aakash 18,000 (-) dep. (1,000) 20,000
Ansh 18,000 Debtors 28,000 2
Arpit 20,000 80,000 (-) bad debt (3,000) 25,000
Bills payable 15,000 Stock 32,000
Provident Fund 16,000 Cash 15,000
Outstanding salary 5,000
1,16,000 1,16,000

OR
Revaluation Account
Particulars Amount (₹) Particulars Amount (₹)
To Patents 5,000 By Sundry Creditors 4,000
To Investment 20,000 By loss transferred to:
Neeti 10,500 2
Preeti 6,300
Parineeti 4,200 21,000
25,000 25,000

Capital Accounts of Neeti, Preeti & Parineeti

Particulars Neeti Preeti Parineeti Particulars Neeti Preeti Parineeti

To Rev. 10,500 6,300 4,200 By Bal.b/d 1,20,000 80,000 1,00,000
To Neeti --- 12,500 12,500 By Preeti 12,500
To Bank 1,49,500 ---- ---- By Parineeti
By General 12,500
To Bal.c/d --- 1,53,4 1,25,550 Reserve 2
50 By Bank
15,000 9,000 6,000
--- 83,250 36,250
1,60,000 1,72,2 1,42,250 1,60,000 1,72,2 1,42,250
50 50

Working Notes:
1) Total capital of the new firm:
Adjusted capital of the partners + Amount to be contributed by the continuing partners
= 70,200 + 89,300 + (1,49,500 – 30,000) = 2,79,000
Preeti’s New capital = 2,79,000 x 11/20 = 1,53,450
Parineeti’s New Capital = 2,79,000 x 9/20 = 1,25,550
 Bank Account
Particulars Amount (₹) Particulars Amount (₹)
To Balance b/d 60,000 By Neeti’s Capital 1,49,500
To Preeti’s Capital 83,250 By Balance c/d 30,000
To Parineeti’s 36,250
Capital
1,79,500 1,79,500

BALANCE SHEET OF PREETI & PARINEETI

Liabilities Amount (₹) Assets Amount (₹)
Capital A/cs: Building 1,00,000
Preeti 1,53,450 Stock 50,000 2
Parineeti 1,25,550 2,79,000 Debtors 40,000
Sundry Creditors 66,000 Patents 45,000
Investments 40,000
Bank 30,000
Cash 40,000
3,45,000 3,45,000
26.
In the books of Chaitanya Global Limited
JOURNAL

Date Particulars LF Debit (₹) Credit (₹)

01.04.21 Bank A/c Dr. 15,62,500
To Debenture application & 15,62,500
allotment A/c
(((Being application and
al allotment money received)
01.04.21 Debenture application &
allotment A/c Dr. 15,62,500
To 7% Debentures A/c 12,50,000
To Securities Premium 3,12,500
(Being application & allotment 6
money transferred to 7%
Debentures A/c)
30.9.21 Sundry Assets A/c Dr. 8,00,000
Goodwill A/c Dr. 75,000
To Liabilities A/c 2,00,000
To Roopani Techno Ltd. 6,75,000
(Being business of Roopani
Techno Ltd. took over)
30.9.21 Roopani Techno Ltd. Dr. 6,75,000
To Bills payable A/c 1,50,000
To 8% Debentures A/c 5,00,000
To Securities Premium A/c 25,000
30.9.21 Debenture Interest A/c Dr. 43,750
43,750
 To Debenture holders A/c
(Being interest due on 7%
Debentures)
30.09.21 Debenture holders A/c Dr. 43,750
To Bank A/c 43,750
(Being interest paid to
debenture holders)
31.03.22 Debenture Interest A/c Dr. 63,750
To Debenture holders A/c 63,750
(Being interest due on 7% and
8% debentures)
31.03.22 Debenture holders A/c Dr. 63,750
To Bank A/c 63,750
(Being interest paid to
debenture holders)
31.03.22 Statement of P&L Dr. 1,07,500
To Debenture Interest A/c 1,07,500
(Being interest on debentures
for the year transferred to
Statement of Profit and Loss)

Working Note:
1) Calculation of Interest on debentures:
On 7% Debentures as on 30th Sep. 2021 = (12,50,000 x 7/100 x 6/12) = 43,750
On 7% Debentures as on 31st March 2022 = (12,50,000 x 7/100 x 6/12) = 43,750
On 8% Debentures as on 31st March 2022 = (5,00,000 x 8/100 x 6/12) = 20,000
Total Interest due on 30.09.2022 = 43,750
Total Interest due on 31.03.2023 = 63,750

27. b) ₹3,000
OR 1
c) ₹32,000
28. b) (B) – ii 1
29. d) Intangible Fixed Assets
OR 1
a) Litmus Test Ratio
30. c) (A) is false but (R) is true.
31. HEADS SUB-HEADS ½x6
(i) Short – term borrowings Current Liabilities =3
(ii) Other Current Assets Current Assets
(iii) As a deduction from paid-up
Share Capital Share Capital
(iv) Intangible Fixed Assets Non – Current Assets
(v) Inventories Current Assets
(vi) Capital Work-in-Progress Non-Current Assets
32. (i) Decline, as the shareholders’ fund will increase with a gain of ₹50,000. 1x3=3
(ii) Decline, as the Long-term debts will decrease due to the redemption of debebntures.
(iii) Decline, as the Shareholders’ Fund will increase due to the issue of preference shares at
premium.

33. Comparative Income Statement

Particulars 2022-23 2021-22 Absolute %
change change 4
I. Revenue from operations 12,00,000 10,00,000 2,00,000 20
Add: Other Incomes 2,50,000 2,00,000 50,000 25
Total Income 14,50,000 12,00,000 2,50,000 20.83
II. Expenses
Cost of materials consumed (1,20,000) (1,00,000) 20,000 20
Profit before Tax 13,30,000 11,00,000 2,30,000 20.9
Less: Tax paid (5,32,000) (4,40,000) 92,000 20.9
Profit after Tax 7,98,000 6,60,000 1,38,000 20.9

OR

Particulars 2022-23 2021-22 % of TOTAL

2022-23 2021-22
I. Equity & Liabilities 4
(i) Shareholders’ Fund
(a) Share Capital 6,00,000 3,00,000 66.67 40
(ii) Non – Current Liabilities
(a) 9% Debentures 2,40,000 4,00,000 26.67 53.33
(iii) Current Liabilities
(a) Trade Payables 60,000 50,000 6.67 6.67
TOTAL 9,00,000 7,50,000 100 100
II. Assets
(i) Non – Current Assets
(a) Fixed Tangible Assets 5,50,000 3,50,000 61.11 46.67
(b) Investments 2,50,000 3,00,000 27.77 40
(ii) Current Assets
(a) Cash at Bank 1,00,000 1,00,000 11.12 13.33
TOTAL 9,00,000 7,50,000 100 100

34. CASH FROM OPERATING ACTIVITIES

Particulars Amount (₹)
Profit after Tax 1,00,000
Add: Proposed Dividend 35,000
Add: Transfer to General Reserve 30,000
Add: Provision for tax 20,000
Profit before Tax 1,85,000
Add: Depreciation for the year 3,20,000
Add: Loss on sale of machinery 5,000 6
Add: Interest on 10% Debentures 1,25,000
Operating profit before working capital changes 6,35,000
Add: Increase in Sundry Creditors 40,000
Add: Decrease in Inventories 30,000
 Operating profit after working capital changes 7,05,000
Less: Tax paid (20,000)
Cash from operating activities 6,85,000

Working Notes:
1. Accumulated Depreciation A/c

Particulars Amount (₹) Particulars Amount (₹)

To Machinery 20,000 By Balance b/d 2,00,000
To Balance c/d 5,00,000 By Depreciation 3,20,000
5,20,000 5,20,000