= General Instructions : Read the following instructions very carefully and strictly follow them : w@ i (iii) (iv) (vo) (vi) (vii) (viii) (ix) 67/C/1 This question paper contains 34 questions, All questions are compulsory. This question paper is divided into two parts — Part A and Part B. Part Ais compulsory for all candidates. Part B has two options ie. (1) Analysis of Financial Statements, and (2) Computerised Accounting. Candidates must attempt only one of the given options as per the subject opted in Part B. Questions no. 1 to 16 and 27 to 30 carry 1 mark each. Questions no. 17 to 20, 31 and 32 carry 8 marks each. Questions no. 21, 22 and 38 carry 4 marks each. Questions no. 23 to 26 and 34 carry 6 marks each. 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. PART A (Accounting for Partnership Firms and Companies) () Persons who have entered into partnership with one another are individually called as : 1 (a) Partners (b) | Members (c) Firm (d) | Owners OR (ii) Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of 3 : 2. Madhu withdrew = 20,000 in each quarter during the year ended 31.03.2023. Interest on drawings was to be charged @ 6% p.a. Interest on Madhu’s drawings will be : 1 (a) = 3,000 (b) = 2,400 (c) = 1,800 (d) = 4,800 ~~~ Page 3 P.T.O.Es 67/C/1 @ (ii) w@ A and B were partners in a firm. They admitted C as a new partner for ial share in the profits of the firm which he acquired from A. A’s new share in the profit will be : 1 1 1 i w + (a) 2 ) 4 1 1 i a i (c) 3 (d) é OR P, Q and R were partners in a firm, On 31.03.2022, R died. R's share was taken over by P. P’s new share in the profits of the firm will be : 1 2 1 yoo (b) = (a 3 3 1 3 i a 2 (c) 2 (d) 7 B and D were partners. According to the provisions of partnership deed, interest on B's capital for the year ended 31.03.2022 was calculated at & 4,000. The necessary journal entry for transferring interest on B's capital to Profit and Loss Appropriation Account will be : 1 (a) Profit and Loss Appropriation Ae. Dr. & 4,000 To B's Capital A/e = 4,000 (b) Profit and Loss Appropriation A/c Dr. = 4,000 To Interest on B’s Capital A/e = 4,000 (©) Interest on B's Capital A/c Dr. 4,000 To Profit and Loss Appropriation A/c = 4,000 (@ Profit and Loss Appropriation Ale Dr. & 4,000 To B’s Current A/e = 4,000 OR ~~~~ Page 5 P.T.O.e7/c/1 Gi) K and L were partners in a firm. Their partnership deed provided that interest on partner's drawings will be charged @ 12% per annum. Interest on L’s drawings for the year ended 31.03.2022 was calculated at 2 900. ‘The necessary journal entry for charging interest on L’s drawings will be : 1 (a) Profit and Loss Appropriation Ae Dr. % 900 To Interest on Drawings Ale = 900 (b) Interest on Drawings A/e Dr. = 900 To Profit and Loss Appropriation A/e = 900 (©) L's Capital/Current Ale Dr. = 900 To Interest on Drawings Ale = 900 (a) Interest on Drawings Ale Dr. = 900 To Partner's Capital/Current A/e = 900 In which of the following cases is the business of a firm not dissolved compulsorily ? (a) (b) (c) (d) @ When alll but one partner becomes insolvent When the business of the firm becomes illegal. When there is a change in profit sharing ratio between existing partners. When a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India. C and D were partners in a firm. E was admitted as a new partner for : share. E acquired pel of his share from C and the remaining from D, 1 The sacrificing ratio of C and D was : (a) 1:2 (b) 1:1 (c) 16:9 (d) 2:1 OR ~~ Page 7 P.T.O.67/C/1 (ii) A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. With effect from 01.04.2023, they agreed to share profits and losses equally. Due to change in the profit sharing ratio, B's gain or sacrifice will be : 1 1 - (@) Gain 55 (b) Sacrifice — © Gain & (@) Sacrifice + 30 30 S and T were partners in a firm sharing profits and losses in the ratio of 3:2. They admitted U as a new partner in the firm. On U’s admission there existed a provision for bad and doubtful debts of & 7,000. It was decided to write off 3,000 as bad debts. The remaining debtors were considered as good. The amount to be debited/eredited to Revaluation Account on account of the above treatment will be : 1 (a) Debit & 3,000 (b) Credit & 4,000 (©) Debit = 7,000 (a) Debit 4,000 On the dissolution of a partnership firm there existed a balance of % 45,000 in Sundry Debtors Account and a balance of % 8,000 in Provision for Bad Debts Account in the books of the firm. The amount: by which ‘Realisation Account’ will be debited for closing Sundry Debtors Account will be : 1 (a) = 45,000 (b) = 37,000 (c) = 8,000 (d) = 53,000 After doing the adjustments regarding drawings % 40,000, share of profit % 24,000 and the additional capital introduced % 32,000, the capital of Ashok, a partner, as on 31.03.2022 was & 5,00,000. His capital as on 01.04.2021 was : 1 (a) = 4,84,000 (b) — & 5,16,000 () = 4,46,000 (d@) = 5,96,000 ~~~~ Page 9 P.T.O.a 10. ll. 12, 67/C/1 Josh and Jeevan were partners in a firm. During the year ended 31.03.2022 Jeevan withdrew € 5,000 per month starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which interest on Jeevan’s total drawings will be charged is : (a) 6 months Oo) 62 months (© 4}months (@) 5 months X and Z were partners in a firm with capitals of € 45,000 each. They admitted ¥ as a new partner for Ld share in the profita of the firm. Y brought & 60,000 as his capital. Based on Y's share in the profits of the firm and his capital contribution, the goodwill of the firm will be : (a) © 1,80,000 (b) & 1,50,000 (© — & 30,000 (a) & 90,000 C, D and E were partners in a firm sharing profits and losses in the ratio of 5: 3: 2, They admitted F as a new partner for ~ share in the profits which was sacrificed by C, D and E in the ratio of 2: 1 in the profits will be : : 2. C’s new share (a) (b) 3 5 A Jeo otto (d) (c) 10 20 () —_K.C. Ltd. took over office furniture of & 90,000, office equipment of 1,80,000 from J.C. Ltd. and its liabilities of & 20,000 for a purchase consideration of 3,60,000. The payment to J.C. Ltd. was made by issue of 9% debentures of = 50 each at a discount of 10%. The amount to be debited to ‘Discount on Issue of Debentures Account’ will be : (a) = 36,000 (b) = 40,000 (c) = 27,000 (d) = 90,000 OR ~~~ Page 11 P.T.O.(ii) Raja Ltd. purchased machinery for 2 25,00,000 from Sharma Ltd. ‘The payment to Sharma Ltd. was made by issue of equity shares of % 10 each at a premium of 25%. The amount to be credited to the ‘Securities Premium Reserve Account’ on issue of equity shares will be : 1 (a) % 25,000 (b) = 50,000 (c) = 62,500 (d) = 5,00,000 18. Assertion (A): Interest on bearer debentures is paid to a person who produces the interest coupon attached to such debentures. Reason (R): Bearer debentures are debentures which can be transferred by way of delivery and the company does not keep any record of the debenture holders. 1 Select the correct answer from the following : (a) Assertion (A) is correct, but Reason (R) is wrong. (b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A). (c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A). (da) Both Assertion (A) and Reason (R) are wrong. Read the following hypothetical situation and answer questions number 14 and 15 on the basis of given information. On 1% April, 2022, Zaira Ltd. issued 5000, 8% Debentures of = 100 each at 5% premium, redeemable at a premium of 10% after 3 years. 14, The total interest due on debentures for the year ending 315t March, 2023 will be : 1 (a) = 40,000 (b) & 25,000 (©) = 50,000 (d) = 75,000 15. ‘Loss on Issue of Debentures Account’ will be debited by which of the following amount ? 1 (a) & 75,000 (b) — & 40,000 (©) = 50,000 (@) = 25,000 67/C/1 ~~~ Page 13 P.T.O.16. 17. 18. 67/C/1 BB Ltd. forfeited 4000 shares of = 10 each for non-payment of final call of = 5 per share. The forfeited amount was = 20,000. The minimum amount per share at which these shares can be re-issued will be : (a) 76 (b) 27 (c) z5 dd) 4 (a) On 01.04.2021, Aman Ltd. purchased from Kamal Ltd. Machinery = 5,00,000, Furniture % 3,00,000 and Land and Building = 40,00,000. It also took over the sundry creditors of Kamal Ltd. of = 8,00,000. The purchase consideration was & 36,00,000. Payment to Kamal Ltd. was made by issue of 9% Debentures of = 100 each at a discount of 10%. On 31.03.2022, the company decided to write off ‘Discount on Issue of Debentures Account’ according to the provisions of Companies Act, 2013. Pass necessary journal entries for the above transactions in the books of Aman Ltd. oR (b) On 01.04.2021, Bain Ltd. purchased from Cayres Ltd., Machinery at & 17,00,000 and Land and Building at % 40,00,000. It also took over its liabilities amounting to 7,00,000. The purchase consideration of € 60,00,000 was paid as follows : = 5,00,000 through a cheque and the balance by issue of 9% debentures of = 100 each at a premium of 10%. Pass necessary journal entries for the above transactions in the books of Bain Ltd. On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of % 6,00,000, = 6,00,000 and = 3,00,000 respectively. The partnership deed provided for the following : (i) Interest on capital @ 10% per annum. (ii) Interest on drawings @ 12% per annum. (iii) An annual salary of & 1,20,000 to Avi. (iv) Profits and losses were to be shared in the ratio of their capitals. The net profit of the firm for the year ended 31.03.2023 was & 3,08,000. Interest on partners’ drawings was Ravi = 4,800, Kavi = 4,200 and Avi = 3,000. Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023. 3 <3 Page 15, PT.O.19. 20. 67/C/1 P and Q were partners in a firm sharing profits and losses in the ratio of 2:1. On 01.04.2022, they admitted R as a new partner for 1/10 share of profits with a guaranteed minimum of € 50,000. P and Q continued to share profits as before but agreed to share any deficiency on account of guarantee to R in the ratio of 3 : 2. The net profit of the firm for the year ended 31.03.2023 was & 3,00,000. Pass necessary journal entries in the books of P and Q for the above transactions. 3 (a) (b) Nisha, Priya and Rajat were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes its books on 31% March every year. Priya died on 1* July 2022. On Priya’s death, the goodwill of the firm was valued at & 3,00,000 and her share in the profits of the firm till the time of her death was to be calculated on the basis of previous year’s profit which was = 6,00,000. Pass necessary journal entries for the treatment of goodwill and Priya’s share of profit at the time of her death. 3 OR Sharma and Verma were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were = 14,00,000 and = 10,00,000 respectively. The partnership deed provided for the following (i) Interest on capital @ 10% per annum. (ii) Interest on drawings @ 12% per annum. During the year ended 31.03.2023, Sharma withdrew = 2,00,000 and Verma withdrew = 1,00,000. After preparing the accounts for the year ended 31.03.2023, it was realised that interest on capital was not allowed and interest on drawings was not charged. Showing your working notes clearly pass necessary journal entries in the books of the firm to rectify the above error. 3 ~~~ Page 17 P.T.O.21. 22. MM Ltd. is registered with an authorised share capital of €10,00,00,000 was divided into 1,00,00,000 equity shares of € 10 each. The company invited applications for issuing 10,00,000 equity shares. The amount per share was payable as follows : On Application - & 3 per share On Allotment - & 4 per share On First and Final Call - = 3 per share The issue was fully subscribed. All calls were made and were duly received except the first and final call on 1000 shares. Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III Part I of the Companies Act, 2013 and also prepare ‘Notes to Accounts’. 4 B, C and D were partners in a firm sharing profits and losses in the ratio of 3:5: 2. On 31.03.2022 their Balance Sheet was as follows : Balance Sheet of B, C and D as at 31%t March, 2022 Liabilities <_| Assets . Amount Amount Creditors 1,10,000 | Building 2,00,000 Reserve Fund 60,000 | Machinery 3,00,000 Capitals : Stock 2,10,000 B 3,00,000 Debtors. 80,000 Cc 2,50,000 Bank 80,000 D 1,50,000 | 7,00,000 8,70,000 8,70,000 67/C/1 C died on 01.10.2022. On C’s death, goodwill was valued at = 1,87,500. ‘The revaluation of assets and reassessment of liabilities resulted into a loss of = 10,000. The partnership deed provided that on the death of a partner, goodwill will be treated without opening goodwill account. C’s share of profit till the date of his death was calculated at & 70,000. Prepare C’s Capital account to be presented to his executors at the time of his death and also C’s Executor’s account, assuming that half the amount due to him was paid immediately on C’s death. 4 ~~~~ Page 19 P.T.O.23. 24, Pass necessary journal entries for the issue of debentures in the books of YK Ltd. : w@ par. (ii) par. (iii) 2%, redeemable at a premium of 4%. Issued 500, 9% debentures of = 1,000 each at par, redeemable at Issued & 20,00,000, 10% debentures at 6% discount, redeemable at Issued 2000, 8% debentures of = 100 each at a discount of M, S and R were partners in a firm sharing profits and losses in the ratio of 2:1: 2. On 31.03.2022, their Balance Sheet was as follows Balance Sheet of M, S and R as at 31%t March, 2022 Amount Liabilities 2 Assets Amount = Capitals : Creditors 80,000 M 60,000 Ss 50,000 R 30,000 | 1,40,000 Profit and Loss A/c 50,000 2,70,000 Fixed Assets Stock Debtors: Bank 1,20,000 70,000 20,000 60,000 67/C/1 2,70,000 On the above date the firm was dissolved. Fixed assets realised = 1,20,000 and stock realised = 10,000. Debtors were realised at their book value and liabilities were paid in full. Prepare Realisation Account and Partners’ Capital Accounts. ~~ Page 21, P.O.25. 67/C/1 (a) (b) CCL Ltd. invited applications for issuing 75,000 equity shares of 10 each at a premium of & 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 1,20,000 shares were received. Application for 45,000 shares were rejected and the excess application money was refunded. Full allotment was made to remaining applicants. All moneys due were received except for Harish, a shareholder holding 2000 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. 6 OR Pass necessary journal entries for the forfeiture and reissue of shares in the following cases : (i) CC Ltd. forfeited 10,000 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, 2000 shares were reissued for 2 7 per share, & 8 paid up. (ii) GG Ltd. forfeited 2000 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, 500 shares were re-issued at & 11 per share, fully paid up. 6 ~~~ Page 23 P.T.O.= 26. (a) A and B were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 31.03.2022, their Balance Sheet was as follows : Balance Sheet of A and B as at 31%t March, 2022 Liabilities Amount | a cots Amomt Outstanding Expenses | 3,000 | Bank 40,000 Bills Payable 20,000 | Stock 60,000 Sundry Creditors 1,40,000 | Bills Receivable 70,000 General Reserve 80,000 | Debtors 1,00,000 Less : Provision for Camitelat doubtful Debts 5,000 | 95000 A 2,00,000 Furniture 85,000 B 3,00,000 | 5,00,000 | Machinery 1,10,000 Land and Building 2,83,000 7,483,000 7,43,000 On the above date, C was admitted as a new partner for z share in the profits on the following terms : (i) Cwill bring & 2,00,000 as her capital and © 1,60,000 as her share of goodwill premium. (ii) Stock will be appreciated by & 1,500. (iii) Debtors of = 5,000 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’ Capital Accounts. 6 OR 67/C/1 ~~~ Page 25 P.T.O.(b) _B, P and T were partners in a firm sharing profits and losses in the ratio of 5 : 8 : 2. On 31.03.2022, their Balance Sheet was as follows : Balance Sheet of B, P and T as at 31% March, 2022 Amount Amount Liabilities ‘¢. | Assets . Creditors 1,40,000 | Bank 1,44,000 General Reserve 2,00,000 | Stock 66,000 workmen . 90,000 | Debtors 1,50,000 ‘ompensation Fund Less : Provision for Capitals : Doubtful Debts 20,000 4. 39.999 Furniti B 400,000 ‘urniture 70,000 7 2,00,000 Machinery 2,20,000 T 1,00,000 | 7,00,000 Land and Building 5,00,000 11,30,000 11,30,000 On the above date, B retired from the firm on the following terms : Goodwill of the firm will be valued at * 3,60,000 and B’s share will be adjusted without opening goodwill account. @ (i) (ii) A compensation. (iv) Furniture will be reduced to = 60,000. transferred to his loan account. claim of % 1,00,000 was admitted for workmen's B was paid & 20,000 through a cheque and the balance was Prepare Revaluation Account and Partners’ Capital Accounts. 67/C/1 Page 2727. Wi) (ii) 28. (i) (ii) PARTB OPTION -I (Analysis of Financial Statements) Which of the following is a tool of ‘Analysis of Financial Statements’ ? (a) Statement of Profit and Loss (b) Balance Sheet (c) Ratio Analysis (d) Both (a) and (b) OR If the Operating Ratio of Pathway Ltd. is 30%, its Operating Profit Ratio will be : (a) 100% (b) 30% (c) 130% (d) 70% Which of the following is not a Solvency Ratio ? (a) _ Interest Coverage Ratio (b) Return on Investment (©) Debt to Capital Employed Ratio (a) Total Assets to Debt Ratio OR Which of the following are known as Efficiency Ratios ? (a) Liquidity Ratios (b) Solvency Ratios (©) Activity Ratios (a) Profitability Ratios 29. Which of the following transaction does not result in ‘Inflow or outflow of cash and cash Equivalents’ ? (a) (b) (c) (d) Collection of cash from trade receivables Payment to trade payables Cash received on maturity of marketable securities Payment to employees 30. Which of the following is not included in ‘Cash and Cash Equivalents’ ? (a) (b) (c) (d) 67/C/1 Demand deposits with banks Short-term marketable securities Cheques in hand Trade receivables ante Page 29, PTO.31. 32. 33. 34, 67/C/1 Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 : 3 (a) Computer Software (b) — Work-in-Progress (c) Calls in Advance ‘These ratios are calculated to determine the ability of the business to service its debt in the long run.’ Identify and state the significance of three such ratios. 3 (a) (i) From the following information, calculate Operating Ratio : z Revenue from Operations 2 10,00,000 Cost of Revenue from Operations : 4,00,000 Selling expenses : 80,000 Administrative expenses 2 1,20,000 (i) From the following details, calculate Interest Coverage Ratio : Net Profit before Tax : 2,00,000 10% Long term debt : = 5,00,000 Tax rate 40% 24+2=4 OR (b) The Current Ratio of Zenith Ltd. is 2: 1. State giving reasons, which of the following transactions will improve, reduce or not change the current ratio : 4 (Payment to creditors 20,000 (ii) Purchased goods on credit = 80,000 (iii) Cash received from debtors & 15,000 (iv) Issue of equity shares 5,00,000 Read the following hypothetical text and answer the given questions on this basis : Shobha started a small enterprise selling hand-knitted sweaters under ‘Skill India Scheme’. As the business grew, the revenue started increasing. On 15t April 2020, she decided to form ‘Shobha Ltd.’ along with twelve other like-minded persons. The Balance Sheet of Shobha Ltd. as at 31° March, 2022, is given below. ante Page 31 PTO.From the figures given in the Balance Sheet and additional information, calculate ‘Cash Flows from Investing Activities’ and ‘Cash Flows from Financing Activities’. Balance Sheet of SHOBHA Ltd. as at 315 March, 2022 67/C/1 Particulars Note | 31.3.2022 | 31.3.2021 No. z z 1 - Equity and Liabilities : 1. Shareholders’ Funds (a) Equity Share Capital 8,00,000 | 6,00,000 (b) Reserves and Surplus 1 2,00,000| 50,000 2. Non-Current Liabilities Long-term Borrowings 2 4,00,000 | 3,00,000 3. Current Liabilities (a) Trade Payables 40,000| 45,000 (b) Bank Overdraft 1,00,000| 85,000 (c) Short-term Provisions 3 30,000| 20,000 Total 15,70,000 | 11,00,000 II- Assets : 1. Non-Current Assets Fixed Assets (i) Tangible Assets 4 6,00,000 | 5,00,000 (ii) Intangible Assets 5 50,000 2. Current Assets (a) Inventories 5,00,000| 4,00,000 (b) Trade Receivables 4,00,000| 90,000 (c) Cash and Cash Equivalents 70,000 | __60,000 Total 15,70,000 | 11,00,000 _——~~ Page 33 P.T.O.Notes to Accounts : Note Particul: 31.3.2022 | 31.3.2021 No. articulars z = 1 | Reserve and Surplus Surplus i.e. Balance in Statement of Profit and Loss 2,00,000 | _50,000 2,00,000| 50,000 2 | Long-term Borrowings 10% Debentures 4,00,000 | _3,00,000 4,00,000 3,00,000 3 | Short-term Provisions Provision for tax 20,000 20,000 4 | Tangible Assets Machinery 7,00,000 | 6,50,000 Less : Accumulated Depreciation | _(1,00,000) | (1,50,000) 6,00,000 | _5,00,000 5 | Intangible Assets Goodwill = 50,000 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 31.3.2022.