Seen MPS : XIE “nee Pre Board Examination, 2022 oe Paper ; Accountancy MM :§ neral (nvtructions : The question paper contains 34 questions. All questions are compiilsor) paper is divided into two parts, Part A and Part B. {0 16 and 27 t0 30 carries I mark each 2 carries & marks each, w This quest Questions ) Questions 27 0 20, 3) and 3 Questions from 21, 22 and 33 carries 4 marks each, Wi) Questions from 23 0 26 and 34 carries 6 marks each. "0 There is Ro overall choice. However, an internal choice has been provided in question of one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks wii) This paper has 10 printed pages Part—A_(1 *16=16) rr Ascounting for Partnership Firms and Companies Pitals of Rs. 600,000 and RS. 4,00,000 respectively, C A and B were partners with cay in profits. The journal entry recorded for premium for ven below was admitted for 1/Sth shan goodwill brought in by C } | Premium for Goodwill A/c { | To A’s Capital Ave | To Bs Capital Ave | (Adjustment for premium for goodwill brought in L__| bye ae The new profit sharing ratio will be: 21:19:10 bp 19:21:10 ¢) dd) 137 <5. a) Assertion (A) : Rent provided to partner for use of | Loss A/c. Reasons (R): Salary provided to partner is charge against profits a) Als correct but R is wrong. — Both A and R are correct, but R is not the correct explanation of A. b) °) Both A and R are incorrect. Both A and R are truc, but R is the correct explanation of A. (Rs. 75 called-up) issued at a premium of Y Lid. forfeited 500 shares of Rs., 100 each per share has been paid. Out of these 200 5% on which application money of Rs. 45 shares were re-issued to Z as Rs. 75 paid up for Rs. 60 per share. What is the amount to be transferred to Capital Reserve ? a) Rs. 19.500 b) Rs. 7,000) Rs. 6,000 d)—CRs, 22,000 OR P.T.O. his property is shown in Profit andMPS. yA NIVAcents/B ; » KIA Limited purchased the assets from HTYU NPAL Limited fOr Rs. 540,000, KI, ee ‘i of RS. cach at 20% discount againyt the... ed issued 10% debentures of ate d “g4inst the payme: Bane eaba cat scbenturce recelved ty HY UNDAT LIER G win igs di he number of d +400 ol 67360 bs a) $4,000 b) Which of the following transactions is debited to Revaluation Accoun, 9 in the value of Furniture a) {ne ; ») Increase in Provision for pont Debts — €) Creditors discharged ata rick 4) Loss on revaluation ofall assets reassessment oF al Habitticg OR < following : Pick the odd one out from the fol interest allowed on a oan taket BY the fin from a partner, a) Ik b the firm for Using py Partn b) Rent due to a partner of the ng his premises for i : ¢) Salary due to the manager of the firm, lusiness purposes, d) Salary due to a partner of the firm, On dissolution, goodwill account is transferred tg - Dr. side of Realisation Ave — Cr side of Realisation Ave a) ) °) Dr. side of Partner's Capital AY d) Cr side of Partner's capital Ales Ronaldo Lud. forfeited 300 equity shares of Rs. 10 each, fully called up, on which Re 5 per share (including premium of Rs, | per share) was received. It later reise these shares at a discount. The maximum discount per share, which the company could have given on their reissue would be : b) Rs. 5 per share a) —_Rs.6 per share ©) Rs. per share d) —_Rs.3 per share OR IF Rs. 5,00,000, 7% debentures are issued for consideration other than Cash; Rs, 6,00,000, 8% debentures are issued as collateral security and Rs, 7,00,000, 9% debentures for Cash, what will be interest on debentures for the year? Which of the following is not to be disclosed in the Balance Sheet of a Company ? b) Issue Capital a) Authorised Capital ¢) Reserve Capital d) Subscribed Capital Shipra paid the realization expenses of R.s 25,000 out of her pocket and she was to get a fixed remuneration of Rs. 15,000 for completing the dissolution process, Pass necessary journal entry. OR How the goodwill is valued under the Capitalisaiton of Super Profit method ? Contd. p/3...MPS/XII/Acents./B ; 4 Case Based Questions or draws Rs. 1 e1 A partner draws Rs, 10,000 pet mouth. Under partnership deed, interest on drawing to be charged @ 15% pa. Answer Q.9 and Q.10 in respect of sume. What will be interest on drawings jf drawings are made regularly in the middle of every month ? a) Rs. 9,750 b) Rs, 8,250 ©) Rs. 9,000 d) Rs, 9250 What will be average period if drawings are made regularly at the end of each quarter? ‘ay 7%months b) 6% months ©) 5% months d) 4° months Match the following On dissolution of a partnership firm; i) | Creditors of Rs. 1,20,000 took over [A] CashAle Dr Re 10,000 the stock of Rs. 70,000 in full | To Realisation A/c Rs. 10,000 |__| settlement of his debt | ik ii) | Credi Rs. 1,20,000 took over | B | No Entry = the stock of Rs. 1,10,000 oat iii) | Creditor of Rs. 1,20,000 took over | C] Rea the stock of Rs. 1,30,000 and paid To Cash Ale | the balance to A company issues Rs. 15,00,000 12% Debentures on 01.04.2021 and pays half-yearly interest. What will be the interest payable by the company on 30.09.2021 if the debentures are to be redeemed afier 4 years at 10% premium. a) Rs. 1,80,000 b) —Rs.99,000 c) Rs. 90,000 d) Rs. 1,98,000 V7 500 shares of Rs. 10 each issued at 40% premium were forfeited for non-payment of allotment money of R.s 7 (including premium) and first & final call of R's 3 per sbae. Share Forfeiture Account will be credited with : a) Rs.4,000 by) ~—Rs.3,000c) Rs. 2,000 -—d)_—«Rs. 1,500 P, Q, Rand S were partners sharing profits in the ratio of 2:3. 5: 2. S retires and 4 sells his share of goodwill to Q for Rs. 60,000 and to R for Rs. 40,000, New profit sharing ratio will be : aoe 16:19:25 b) N4521225 c) 10:21:29 d) 10:19:31 Oth On dissolution of a firm, out of the proceeds received from the sale of assets _ b) Partner's Loan to Firm d) Outside Creditors P.T.O.= MPSINIVAcents 4, ‘ Which of the following items are added to previous year profits for finding normal profits for valuation of goodwill ? a) Loss on sale of fixed asset L) Loss duc to fire, earthquake ete ©) Undervaluation of closing stock = 4) Al of these ‘On dissolution of a firm, debtors were Rs. 1,00,000. OF these Rs. 10,000 bee: anu the rest reatised 60%, Which account Will be debited and how much at a) Realisation Ave by Rs. $0,000 6) Realisation Ave by Rs. 36,000 > {e) Bank A/c by Rs. $4,000 4) Realisation A/e by Rs. 54,000 A. B and C were partners in a firm sharing Profits in 3; 2: 1 ratio. The firm closes its books on 31°! March every year. B died on 12-06-2022 and A and C decided to share future profits in the ratio of $ : 4. On B's death his share in the profits of the firm till the time of his death was to be calculated 0” the basis of previous year's profit which Was R.s 6,30,000. Calculate B's share in the profit of the firm. Pass necessary journal entry for B's share of profit at the time of his death 3 Zand B were in partnership sharing profits in the ratio of 2 : 3. With effect from I" 7, 2021 they agreed to share profits in the ratio of 1 : 2. For this purpose the goodwill of the firm is to be valued at 1.5 Year's purchase of the average profive of last three years, which were Rs. 1,90,000, Rs. 30,000 (loss) and Rs, 2,00,000 respectively, Reserves appear in the books at Rs. 1,20,000. Partners do not want to distribute the reserves. You are required to give effect to the change by passing a single journal entry OR stha and Gomti are partners in_a firm sharing profits and losses in the ratio of 2: 1. Their capital accounts as on 1" April, 2021 stang OR Ms offered to the public 1,00,000 equity shares of Rs, 10 cach at a rt of Rs. 2 per share, payable as follows: On Applications Rs. 3 On Allotment QL Rs. 4 (including premium) On First Call Rs, 3 & On Second and Final Call Rs. 2 Applications were received for 1,60,000 shares, . All applications were placed under four categories and allotment was made as follows: - Category A : To applicants of 40,000 shares in full Category B : To applicants of 60,000 sharés 40,000 shares Category C : To applicants of 30,000 shares 20,000 shares Category D : To applicants of 30,000 shares NIL Except in the case where applications were wholly rejected, excess application money \was not to be refunded but to be adjusted against moncy due on allotment and calls. Avsun, an applicant under category B who applied for 2,400 shares failed to pay the allotment money and on his failure to pay the first call his shares were forfeited. . Bimal, an applicant under category C who applied for 1,200 shares failed to pay both the calls and his shares were also forfeited after the second and final call. All the forfeited shares were reissued to Charan as fully paid for R.s 8.50 per share. Show Cash-book and Journal entries 6 ox. Y and Z are sharing profits in the ratio of 1/2 : 1/3 and 1/6. Following is their Balance Sheet as at 31% March, 2022: Sundry Creditors Capital Accounts: x 3,20,000 Y 2,00,000 Z 1,70,000 6,90,000 | Less: Provision for Doubtful Debts 10,000 Cash at Bank Profit & Loss A 8,00,000= - MPS/XII/ Accents. 7 retires and X and Z decide to share future profits in the ratio of 254. Tt wag agreed x that ot, Value of patents is to be reduced by 40% and that of machinery to 90%, pf The Provision for Doubtful Debs to be maintained 157 on Debtor r “s) Rent outstanding was Rs. 15,000, A liability for claim, included jn creditors for Rs, 20,000 is settled at be Rs. 15,000 ‘Accrued income of Rs, 10,000 is to be recorded in. the books, Goodwill of the firm is valued at Rs. 1,20,000, Prepare Revaluation A/c and Partner's Capital Accounts. OR Nebd“and Tara are partners in 4 firm sharing profits and losses in the ratio of 3 © 2 ir Balance Sheet as at 31” march,, 2922 stood as follows: Amount Ee | “7 1,20,000 | Land & Builipa—~ | 1,40,000 | 1,80,000 | Debtors 1,90,000 120,000 | Less: Provision for | Doubtful debts (40,000) | 1,50,000 60,000 | ‘They agreed to admit Prachi into partnership for 1/5" share of profits on 1" April, as Fi 22R,onthe followingtems. a . wy All the debtors to be considered as good and therefore the provision for ‘debts to be written back. = 000 in cash J equal to 20% of the P.T.O.MPS/XIVAcents 1 Liabilities [LF [Debit (Rs) | Creait (Rs) B's Capital Ave Del 180,000 Dr, | 120,000 C's Capital Ave | To A's Capital A/c 3,00,000 (Entry for goodwill treaiment passed at the time of death of partner) | A’s profit till date of death was estimated 48 Rs. 1,20,000, based on the average profits of past three years. Final ducs payable © A's executors on the date of death was calculated as Rs. 8,40,000 outofwhich RS. 240,000 was paid immediately by giving him Fumiture valued for the same and balance was to be paid in three equal areal orga ester with interest rate as specified in installments starting form 30" June, of Indian Partnership A ry entry for profit share (0 Be credited to A’s Capital ani so prepare A’s 6 executors account till final settlement On I" April, 2020 X Ltd. in order to raise additi ssue 8% debentures of Rs. 50 each to the py alter 6 years at a premium of 5%. CALE required to answer the following questions assuming that the company closes its books on 31™ March every year : - Find out the number of debentures to be issued, 2 Pass Journal entry for the allotment of debentures. ¥ Pass Journal entry to write off loss on issue of debentures. I funds Of R.s 78,00,000, decided aa premium of 4%, redeemable Prepare Loss on Issue of Debentures Account. } Calculate the interest on debentures for the year ended 31" March 2021. Sy Pass journal entry to close the Interest on Debentures A/c. Part-B Financial Statement Analysis enue from Operations Rs, 9,00,000; Trade Receivables Turnover Ratio 6 sy 6 "times; Closing ‘Trade Receivables were 1.5 times than that in the beginning. Closing trade Receivables will be: a) Rs. 1,20,000 b) Rs. 60,000 c) Rs, 1,80,000 d)_ Rs. 90,000 7 OR e “Forfeited Shares Account” appears in the Balance Sheet of the company under the subhead: = a) Reserves and Surplus b) Long-term Provisions d) Other Current Liabilities 1 c) Share Capital Revenue form Operations Rs. 9,60,000; Current Liabilities Rs. 20,000; Working Capital Turnover Ratio 8 times, Current Assets will be: a) Rs. 1,40,000b) Rs. 1,20,000 ¢) Rs, 1,00,000 d) Rs. 1,60,000 1 Contd.p/9..._aj MPSixil/Acents (Ay Ie C— Give two examples of "significant non-cash transactions" OR von deposits by customers in HDPC Bank will be © a) Cash flow from operating activities. b) Cash flow from investing activities. c) _ Cash flow from financial aetiyities. d) —_ Nocash flow ‘Capital gain tax paid on sale of building by a Company” will be shew under which type of activity While preparing the Cash Flow Statement 7 ‘ (Classify the following. items under Major Head and Sub-Head (if any) in the 3 Balance Sheet of a company as per Schedule II of the Companies Act, 2013 i) Uncalled Liability on partly paid shares, i Capital Work in Progress, iii) Provision for Warranties, ix) Income received in advance, y) Capital Advances; 1 vi) Advances recoverable in cash within the operating cycle; 3 ge i the given Reaper tion, ealeults the inventory tumover ratio. { Revenue from Operations : Rs. 6.00.000; GP : 20% on cost: Opening Inventory 2/3" of the value of Closing Inventory. Closing Inventory was 254 of Reeve from ‘Assuming that Proprietary Ratio of Meta Ltd. is 0.9 -1, ji ‘the ratio will increase, decrease or will not change in cach one of the following cases Issue of new equity shares for cash. Purchase of machinerya mse : #4 Prepare a Cash Flow Statement from the folloy fe shect of Dry Fruits Ld Particulars | 31.03.2033 | Toso M | N Rs. R 1. Equity and Liabilities | [at r | | | 2,00,000 2,00,000 1 4,000 2 2 Non-Current Liabilities ee! SE900) 135,000} 1,00,000 | | ) Long-Term Borrowings | 3. Current Liabilities | 4) Trade Payables | roTAL | = j AL Assets + | | PoNou-Curveat Asestes | @) Property, Plant and Equipment ang Intangible Assets | i) Pre Plant and Equipmery | 2iCarrent Asse: ae |3 | 120,000 | 130,000 Current Investments (Marketable a See &) Inventories 225500) NN \000 ©) Trade Receivables 40,000 23,000 | d) Cash & Bank M ,000 nk Balance ra = TOTAL » 4.87,000 3.54,000 31.03.2022 31.03.2021 Reserve & surplus (Rs.) (Rs.) General Reserve 24,000 - d Profit & Loss Balance (8.000) (8,000) (2) Long-term Borrowings: 12% Mortgage Loan 1,35,000 1,00,000 (3) Property, Plant and Equipment : Machine} 1,45,000 1,60,000 cumulated Depreciation 25,000 30,000 1,20,000 1,30,000 Additional Information : iE Interest paid on mortgage loan amounted to Rs. 14,100. I. Interim Dividend paid during the year Rs. 20,000. 5 Ill. Machinery costing Rs. 40,000 (accumulated depreciation thereon being Rs. 18,000) was sold for Rs. 5,000. 6 GJ