KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION

Ist PRE-BOARD – SET II (2023-24)

SUBJECT:- ACCOUNTANCY (055)
TIME:- 3 Hrs. MM:- 80

General instructions :
1 This question paper contains 34 questions.
2. This question paper is divided into two parts. PART A and PART B.
3. Question Nos.1 to 16 and 27 to 30 carries 1 Mark each.
4. Question Nos.17 to 20 and 31 & 32 carries 3 Marks each..
5. Question Nos.21,22 and 33 carries 4 Marks each.
6. Question Nos.23 to 26 and 34 carries 6 Marks each..
7. Attempt all parts of the questions together.
1. Charu, a partner guaranteed that her share of profits will not be less than 60000 p.a. Deficiency, 1
if any was to be borne by other partners Arohi and Bhavi equally. For the year ended 31st
March,2023 the firm incurred loss of ₹180000. What amount will be debited to Arohi’s Capital
Account in total at the end of the year?
(a) ₹60000 (b) ₹120000
(c )₹90000 (d)₹80000
2. Assertion (A) : P,Q and R are partners in a firm. R has invested Rs.2,00,000 more in 1
comparison of other partner. R claims 6% interest on his excess capital.
Reason (R) : Interest on Loan is treated as Charged not Appropriation.
Choose one of the correct alternatives given below:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is Not the correct explanation
of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is true
3. If ‘T’ has withdrawn equal amount at the end of each quarter and Interest on Drawing is charged 1
@ 12% p.a. and amount of interest is Rs. 1,080 Amount of Drawing will be
(i)12,000 (ii)24000
(iii)36,000 (iv) 48,0000
OR
A and B are two partners in a firm sharing profits in 4:3. Profits was not sufficient to pay salary
to A ₹ 27000 and to pay commission to B ₹ 18000. If commission paid to B was Rs.12,000 then
Salary payable to ‘A’ was
(i)10,000 (ii)21,000
(iii)18,000 (iv)30,000.
4. A company issued 1000 7% Debentures of Rs 100 at 5% Discount and Repayable at 10 % 1
Premium .What will be the amount of Loss on issue of Debentures.:
(a) Rs 10,000
(b) Rs 20,000
(c ) Rs 15,000
(d) Rs 30,000
5. Omi, Leela and Amber who were partners sharing profits in the ratio of 5:3:2 now decided to 1
share future profits in 2:1:1. At the time of reconstitution there was a balance of General
Reserve. If Leela got Rs. 15,000 then the amount of General Reserve was: :
(a)60,000 (b)50,000
(c)40,000 (d)30,000
OR
If the goodwill of a firm was valued at ₹90000 according to two-year purchase of super profit.
Normal profit earned by other firm are ₹50000 then actual profit of that firm are:
(a)135000 (b)120000 (c)95000 (d)150000
6. On dissolution of a firm, outside liabilities are ₹210000; Partner’s capitals are ₹360000; Cash is 1
₹30000. Other assets realized for ₹450000. Gain/Loss on realization will be –
(a ) ₹90000 (Gain) (b) ₹90000 (Loss)
(c) ₹80000 (Gain) (d) ₹80000 (Loss)
8. X,Y and Z are partners sharing profits in 7:2:1. Y retires on 1st April,2023 and amount 1
transferred to his loan A/c is Rs.108000 which is payable in three equal annual instalments
together with interest @6% p.a. The total amount paid for the last instalment along with interest
will be –
(a ) ₹38160 (b) ₹38100
(c ) ₹ 37800 (d) ₹36000
OR
Goodwill brought by new admitted partner is shared by old partners in old ratio. (True/False)
9. In case of admission of a partner, the entry for unrecorded investments will be: 1
(a) Debit Partners Capital A/c and Credit Investments A/c
(b) Debit Revaluation A/c and Credit Investment A/c
(c)Debit Investment A/c and Credit Revaluation A/c
(d) Debit Partners Capital A/c and Credit Revaluation A/c
10. A company Forfeited 1,000 shares of Rs 10 each, Rs 7 called up; for the non-payment of Rs 2 1
First call . All these shares were reissued at Rs 5 per share. What will the amount transferred to
capital Reserve account:
a) 2,000
b) 3,000
c) 4,000
d) 5,000
11. Which one is not correct statement: 1
(i)Reserve Capital is not shown in Balance Sheet
(ii)Calls in Advance is not a part of Share Capital
(iii)Issued Capital can not be more than Subscribed Capital
(iv)Share Forfeiture Amount is added to Share Capital

12. Tushar Ltd. Settled the application by allotting the shares in ratio of 5:3. Mahesh applied for 1
2000 shares. The number of shares allotted to Mahesh is:
(a) 1000 shares (b)1200 Shares
(c) 1500 shares (d)1800 Shares
13. Daisy Limited forfeited 200 shares ₹10 each of R, issued at a premium of 10% (with 1
Allotment) for non-payment of final call of ₹3 per share. Out of these 100 shares were
issued as fully paid up for ₹15. The amount transferred to capital reserve is :
(a) ₹700 (b) ₹6,400
(c) ₹300 (d) ₹400
14. Assertion (A) : Interest on drawings increases profits of a firm. 1
Reason (R) : Product method is used to calculate the interest on same amount withdrawn by
partners at regular interval of time.
(a) (A) is correct but (R ) is wrong.
(b) Both (A) and (R ) are correct, but (R ) is not correct explanation of (A).
(c) Both (A) and (R ) are incorrect.
(d) Both (A) and (R ) are correct, and (R ) is correct explanation of (A).

15. M, P and A are partners in a firm having fixed capitals of ₹80000; ₹40000 and ₹50000 1
respectively sharing profits in the ratio of 7:6:4. The rate of interest on capital was agreed
@10% p.a., but was wrongly credited to them as 12% p.a. By what amount P’s Current a/c will
be –
(a) Cr. P’s Current a/c ₹400 (b) Dr. P’s Current a/c ₹400
(c) Dr. P’s Current a/c ₹200 (d) Cr. P’s Current a/c ₹200

16. The partnership should be drafted and prepared as per the provisions of the – 1
(a ) Partnership Act 1932 (b) Companies Act 2013
(c ) Partnership Act 1956 (d) Stamp Act
17. Anju, Manju and Sanju were partners in a firm running a successful business of car accessories. 3
They had agreed to share profits and losses in the ratio of 1/2: 1/3: 1/6 respectively. After
running business successfully and without any disputes for 10 years, Manju decided to retire
due to old age. Anju and Sanju decided to share future profits and losses in the ratio of 3:2. The
accountant passed the following journal entry for Manju share of goodwill and missed some
information. Fill in the missing figures in the following Journal entry and calculate the gaining
ratio.
Anju’s Capital A/c Dr. ………..
Sanju’s Capital A/c Dr. 21000
To Manju’s Capital A/c …….
(Manju’s share of Goodwill debited to the amounts of continuing partners in their gaining ratio)

18. Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio of 2:3:1. 3
With effect from 1st April, 2022 they decided to share future profits and losses in the ratio of
3:2:1. On that date, their balance sheet showed a debit balance of ₹ 24,000 in Profit and Loss
A/c and a balance of ₹ 1,44,000 in General Reserve. It was also agreed that:
(i) The goodwill of the firm be valued at ₹ 180,000.
(ii) The land (having book value of ₹ 3, 00,000) will be valued at ₹ 4, 80,000.
Pass the necessary journal entries for the above changes.
OR
Arun and Arora were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals on
1.4.2022 were: Arun ₹ 60,000 and Arora ₹ 80,000. They agreed to allow interest on capital @
12% p.a. and to charge on drawings @15% p.a. The profit of the firm for the year ended 31st
March, 2023 before all above adjustments was ₹ 12,600. The drawings made by Arun were₹
2,000 and by Arora ₹ 4,000 during the year.
Prepare Profit and Loss Appropriation A/c of Arun and Arora. Show your calculations clearly.
The interest on capital will be allowed even if the firm incurs loss.

19. A ltd took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of B Ltd for an agreed 3
purchase consideration of
₹ 6,00,000 payable 10% in cash and the balance by issue of 15% debentures of ₹100 each at
10% discount
Pass necessary journal entries in the books of A Ltd.
 OR
Pass the necessary journal entries for ‘Issue of Debentures’ for the following:
(i) Jain Ltd. issued 800, 12% Debentures of Rs. 100 each at a discount of 10% redeemable at a
premium of 5%
(ii) Sohan Ltd. issued 900, 9% Debentures of Rs. 100 each at a premium of Rs. 20 per debenture
redeemable at a premium of Rs. 10 per Debenture.

20. The average net profit of Electronics Home depot expected in the future is ₹ 1,08,000 per year. 3
Average capital employed in the business ₹ 6,00,000. Normal profit expected from capital
invested in this type of business is 10%. The remuneration of the partners is estimated to be ₹
18,000 p.a. Calculate the value of goodwill on the basis of two years’ purchase of super profit.

21. ABC Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 4
each, The Company issued 25,000 equity shares for subscription. Subscription was received for
23,750 shares and all the due amount was duly received, except the first and final call of ₹ 20
per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.

22. Give the necessary Journal entries in each of the following alternative cases: 4
i) Realisation expenses amounted to ₹5,000.
ii) Realisation expenses of ₹1,000 paid by a partner X.
iii) X, a partner, agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ₹1,000 and to bear all Realisation expenses. Actual Realisation expenses
amounted to ₹800 were paid by firm.
iv) ₹2,000 for damages claimed by a customer had been disputed by the firm. It was agreed at
75% by a compromise between the customer and the firm.
v) X, a partner’s loan of ₹50,000 to the firm was settled by giving an unrecorded asset of
₹28,000 and the remaining amount settled at ₹22,000.
vi) Y’s loan of ₹65,000 to the firm and she took over furniture of ₹40,000 as part payment

23. Dinesh Ltd. invited applications for issuing 1,50,000 equity shares of ₹ 10 each at a premium of 6
₹ 3 per share. The amount was payable as follows:
On Application ₹ 2 per share
On Allotment ₹ 6 per share (including premium)
On First Call ₹ 3 per share
On Second and Final Call Balance
Applications for 2,40,000 shares were received. Application for 90,000 shares were rejected and
the excess application money was refunded. Full allotment was made to remaining applicants.
All moneys due were received except from Harish, a shareholder holding 4,000 shares, who
failed to pay the first and second and final call money. Pass necessary journal entries for the
above transactions in the books of the company.
OR
Pass necessary journal entries for the forfeiture and reissue of shares in the following cases:
(i) Ashima Ltd. forfeited 20,000 shares of ₹ 10 each, ₹ 8 called up, for non-payment of
allotment money of ₹ 3 per share and first call of ₹ 3 per share. Out of these, 4,000 shares were
reissued for ₹ 7 per share, ₹ 8 paid up.
(ii) Gaurav Ltd. forfeited 4,000 shares of ₹ 10 each fully called up, issued at a premium of
10% on which only application money of ₹ 3 per share was received. Out of these, 1,000 shares
were re-issued at ₹ 11 per share, fully paid up.

24. A Ltd., issued 2,000, 10% debentures of ₹ 100 each on October 01, 2021 at a discount of 10% 6
redeemable at a premium of 10%. Give journal entries relating to the issue of debentures and
debenture interest for the period ending March 31, 2022 assuming that interest was paid half
yearly on September 30 and March 31
 You are required to –
(a) Pass entries for issue of Debentures.
(b) Prepare Loss on Issue of Debentures Account .
(c) Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30
September and 31 March every year.

25. Atul and Bhanu were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 6
31.03.2023, their Balance Sheet was as follows :
Liabilities Amount Assets Amount
Outstanding Expenses Bank 80,000
Bills Payable 6,000 Stock 1,20,000
Sundry Creditors 40,000 Bills Receivable 1,40,000
General Reserve 2,80,000 Debtors 2,00,000
Capitals: 1,60,000 Less:PFDD 10,000 1,90,000
Atul 4,00,000 Furniture 1,70,000
Bhanu 6,00,000 Machinery 2,20,000
10,00,000 Land and Building 5,66,000
14,86,000 14,86,000
th
On the above date, Chahat was admitted as a new partner for 1/5 share in the profits on
the following terms:
(i ) Chahat will bring ₹4,00,000 as capital and ₹ 3,20,000 as share of goodwill premium.
(ii ) Stock will be appreciated by ₹ 3,000.
(iii ) Debtors of ₹ 10,000 will be written off as bad debts and a provision of 10% for bad
and doubtful debts will be maintained.
Prepare Revaluation Account and Partners Capitals’ Account.
OR
Billu, Pihu and Tinku were partners in a firm sharing profits and losses in the ratio of 5 : 3 :
2. On 31.03.2023, their Balance Sheet was as follows :
Liabilities Amount Assets Amount
Creditors 2,80,000 Bank 2,88,000
General Reserve 4,00,000 Stock 1,32,000
Workmen’s Debtors 3,00,000
Compensation Fund 1,80,000 Less: PFDD 40,000 2,60,000
Capitals: Furniture 1,40,000
Billu 8,00,000 Machinery 4,40,000
Pihu 4,00,000 Land and Building 10,00,000
Tinku 2,00,000
14,00,000
22,60,000 22,60,000
On the above date, Billu retired from the firm on the following terms:
(i) Goodwill of the firm will be valued at ₹7,20,000 share will be adjusted without
opening goodwill account.
(ii) Furniture will be reduced to ₹ 1,20,000.
(iii) A claim of ₹ 2,00,000 was admitted for workmen’s compensation.
(iv) Billu was paid ₹ 40,000 through a cheque and the balance was transferred to his
loan account.
Prepare Revaluation Account and Partners’ Capitals Accounts.

26. Ram,Shyam and Mohan were in partnership sharing profits and losses in the ratio 5:3:2. on 31st 6
 March 2022, their balance sheet was as follows:

Liabilities Amount Assets Amount

Rs. Rs.
Sundry Creditors 24,000 Cash at Bank 34,000
General Reserve 30,000 Debtors 40,000
Workmen Compensation Stock 50,000
Reserve 10,000 Plant & Machinery 30,000
Capital Ram 50,000 Building 50,000
Shyam 50,000
Mohan 40,000 1,40,000
2,04,000 2,04,000
st
0n 1 December 2022, Shyam passed away and his share was completely acquired by Mohan.
In the event of death of a partner the partnership deed inter alia provides the following:
(a) The executor of deceased partner is entitled to get his capital as per the last balance sheet
with interest on capital at 10% p.a..
(b) His share in the accumulated profit, goodwill of the firm and estimated profit till the date of
death.
(c) The goodwill of the firm is valued at 2 years’ purchase of average profit of past 3 years.
(d) The profit to be estimated on the basis of the average profit of past 3 years.
The profits of the firm for the past three years were:
31.03.2020 Rs. 36,000; 31.3.2021 Rs. 44,000 and 31.3.2022 Rs. 40,000.
(e) During the year 2022 his drawings were Rs. 12,000 and interest there on was Rs. 600.
Prepare Shyam’s capital account, Executor’s Account assuming that the entire amount was
settled immediately.

PART-B
27. An operating cycle is the time between the _________________. 1
(a) Production & Sales.
(b) Procuring of raw material & production of goods.
(c) Financing & Selling of products.
(d) Acquiring of raw material for processing and its realisation into Cash & Cash equivalents.
OR
Which of the following statements is incorrect?
(a) Intra-firm analysis is a comparison of financial statements of an enterprise for two or more
accounting periods.
(b) Inter-firm analysis is a comparison of financial statements of for two or more enterprise for
the same accounting periods.
(c) Vertical analysis provides information in absolute and percentage form.
(d) An income statement indicates the financial position of an enterprise for an accounting
period.
28. The Current ratio of a firm is 2.5:1 and its Current liabilities are ₹ 4, 00,000. Its working capital 1
will be:
(a ) ₹ 6,00,000 (b) ₹ 7,50,000 (c) ₹ 8,00,000 (d) ₹ 14,00,000

29. Plant costing ₹ 1,00,000, accumulated depreciation being ₹ 20,000 is sold at a profit of ₹ 8,000. 1
Amount that will be shown as inflow under Investing Activity will be ------
(i) ₹ 8,000
(ii) ₹ 80,000
(iii) ₹ 88,000
(iv) ₹ 1,20,000
 OR
Brijesh Ltd. Provides the information:
Particulars 1.4.2022(₹) 31.3.2023(₹)
Long term loans 2,00,000 2,50,000
During the year 2022-23, the company repaid a loan of ₹ 1,00,000.
Cash Flow from financing activities will be:
(i) Net cash used in financing activities Rs.50,000
(ii) Net cash used in financing activities Rs.1,50,000
(iii) Net cash from financing activities Rs.50,000
(v) Net cash from financing activities Rs.1,50,000

30. For the following two statement of Assertion (A) and Reasoning (R) indicate the correct code 1
:Assertion (A) While preparing Cash Flow Statement, Cash withdrawn from bank result in
no flow cash.
Reason (R) There is no change in Cash and Cash Equivalents.
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d)A is false, but R is true

31. Under which heads will the following items be placed in the Balance Sheet of the company as 3
per Schedule III of Companies Act,2013?
i. Cheques in hand
ii. Loose tools
iii. Securities Premium Reserve
iv. Long-term Investments with maturity period less than six months
v. Building
vi. Livestock

32. 3
From the following information, prepare comparative statement of Profit & Loss
Particular Not 2022-2023 2021-2022
e No (₹) (₹)
Revenue from operations 2000000 1600000
Other Income 440000 300000
Cost of materials consumed 800000 600000
Change in inventories of finished 400000 200000
goods and work in progress
Other Expenses (% of cost of 15% 10%
Revenue from Operations
Tax Rate 30% 30%
33. (a) From the following calculate Trade Receivables Turnover Ratio': 4
Total revenue from operation for the year ₹ 8,40,000; Cash revenue from operations 40% of
credit revenue from operations, Closing trade receivable ₹ 2,00,000, Excess of closing trade
receivables over opening trade receivables- ₹ 80,000
(b) From the following information calculate 'Interest Coverage Ratio':
Profit after Interest and Tax ₹ 4,97,000; Rate of Income Tax 30% and 12% Debentures
₹ 6,00,000

34. From the figures given in the Balance Sheet and additional information, Calculate ‘Cash 6
flow from Investing Activities’ and ‘Cash flow from Financing Activities’.
 Balance Sheet of SHANTI Ltd. as at 31st March, 2023
Particulars Note No. 31.3.2023 31.3.2022
I EQUITY AND LIABILITIES:
1. SHAREHOLDERS’ FUNDS
a) Equity Share 16,00,000 12,00,000
Capital 1 4,00,000 1,00,000
b) Reserves and
Surplus 2 8,00,000 6,00,000

2. Non-Current Liabilities 80,000 90,000

Long Term Borrowings 2,00,000 1,70,000
(ii) Current Liabilities 3 60,000 40,000
a) Trade Payables
b) Bank Overdraft
c) Short term Provisions
TOTAL 31,40,000 22,00,000
II ASSETS:
1. NON-CURRENT ASSETS:
Property,Plant &
Equipment 4 12,00,000 10,00,000
a) Tangible Assets 5 ------- 1,00,000
b) Intangible Assets
2. CURRENT ASSETS: 10,00,000 8,00,000
a) Inventories 8,00,000 1,80,000
b) Trade Receivables 1,40,000 1,20,000
c) Cash and Cash Equivalents
TOTAL 31,40,000 22,00,000

Notes to Accounts:
Note Particulars 31.3.2023 31.3.2022
No. ₹ ₹
1 Reserve and Surplus
Surplus i.e. Balance in Statement of Profit and 4,00,000 1,00,000
Loss
2 Long Term Borrowings
10% Debentures 8,00,000 6,00,000
3 Short Term Provisions
Provision for Taxation 60,000 40,000
4 Property Plant & Equipment-Tangible assets
Machinery 14,00,000 13,00,000
Less- Accumulated Depreciation (2,00,000) (3,00,000)
5 Property Plant & Equipment-Intangible Assets
Goodwill -------- 1,00,000

Additional Information:
(i) A piece of machinery costing ₹ 1,60,000 was sold at a loss of ₹ 20,000.
Depreciation charged during the year amounted to ₹ 40,000.
(ii) 1,00,000, 10% debentures were issued on 31.3.2023.