Series RAC–DS2 Code No.

RSPL /3
Candidates must write the Code on
Roll No. the title page of the answer-book.

 Please check that this question paper contains 24 printed pages.

 Code number given on the right hand side of the question paper should
be written on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the Serial Number of the question before
attempting it.

ACCOUNTANCY

Time Allowed: 3 hours Maximum Marks: 80

General Instructions:

(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper is divided into two parts, Part A and B.
(iii) Part A is compulsory for all candidates.
(iv) 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.
(v) Question 1 to 16 and 27 to 30 carries 1 mark each.
(vi) Questions 17 to 20, 31 and 32 carries 3 marks each.
(vii) Questions 21, 22 and 33 carries 4 marks each.
(viii) Questions 23 to 26 and 34 carries 6 marks each.
(ix) 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.

RSPL/3 1 P . T .O.
 PART – A
(Accounting for Partnership Firms and Companies)

1. Shiv and Shakti are partners sharing profits and losses in the ratio of
3 : 2. Shiv surrendered 1/5th from his share and Shakti surrendered 1/5th
of his share in favor of new partner Mohan. What will be the Mohan’s
share?

(a) 2/25 (b) 7/25

(c) 6/25 (d) 3/25 1

2. Assertion (A): In order to compensate a partner for contributing capital to

the firm in excess of the profit sharing ratio, firm pays interest on partner’s
capital.

Reason (R): Interest on capital is treated as a charge against profits.

(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).

(b) Both (A) and (R) are correct but (R) is not the correct explanation
of (A).

(c) (A) is correct but (R) is incorrect.

(d) (A) is incorrect but (R) is correct. 1

3. One of the conditions, in addition to others, for allotment of shares is

(a) Resolution in general meeting

(b) Receiving minimum subscriptions

(c) Full subscription by public

(d) Full payment on application 1

RSPL/3 2
 OR

Uncalled capital is that portion of the _______________ which has not yet
been called up, and the portion of such uncalled capital to be called only in
the event of winding up of the company is called__________

(a) Subscribed Capital, Reserve Capital

(b) Issued Capital, Reserve Capital

(c) Authorised Capital, Capital Reserve

(d) None of the above 1

4. Rahul, Sahil and Ketan are partners sharing profits and losses in the ratio
of 5 : 3 : 2. Rahul had drawn ` 20,000 at the beginning of every month, Sahil
had drawn ` 60,000 at the beginning of every quarter, Ketan had drawn
` 2,40,000 during the year. Interest on drawings was to be charged @ 10%
p.a. Who will be charged with highest interest on drawings?

(a) Rahul

(b) Sahil

(c) Ketan

(d) Equal interest on drawing for all 1

OR

Tiger, a partner carries on the business that is competitive in nature with

the firm and profit of ` 50,000 earned from it, then profit of ` 50,000:

(a) Shall be retained by the Tiger, partner

(b) Shall be paid to the firm

(c) Can be retained or paid to the firm

(d) Both (a) and (b) 1

RSPL/3 3 P . T .O.
 5. Which of the following statements is correct?

(a) Interest on Partner’s Loan is always credited to Partner’s Capital

Account.

(b) Drawings against Capital is considered while calculating interest on

Capital.

(c) A partner who has invested more capital in the firm will get interest
on excess capital.

(d) If Partnership Deed is silent, interest @ 6% p.a. will be charged on the

drawings made by the partner. 1

6. Rex Ltd. issued 1,000, 10% Debentures of ` 100 each at premium of 5%.
What will be the total amount of interest for one year?

(a) ` 10,500 (b) ` 10,000

(c) ` 5,250 (d) ` 5,000 1

OR

At time of issue of debentures at discount, Debentures A/c is

(a) Credited by issue price of debentures

(b) Credited by face value of debentures

(c) Credited by amount received

(d) None of above 1

7. Assertion (A): In case of shares issued on pro-rata basis, excess money

received at the time of application can be utilized till allotment only.

Reason (R): Company has to pay interest on calls in advance @ 12% p.a.

for amount adjusted towards calls (if any).

RSPL/3 4
 (a) Both (A) and (R) are correct and (R) is the correct explanation of (A).

(b) Both (A) and (R) are correct but (R) is not the correct explanation

of (A).

(c) (A) is incorrect but (R) is correct.

(d) (A) is correct but (R) is incorrect. 1

8. Sandeep, Gajanan and Tarun are partners in a firm sharing profits in the

ratio of 3 : 3 : 2. They decided to share future profits and losses in the ratio

of 1 : 1 : 1 with effect from 1st April 2023. They decided to record the effect

of the following without affecting their book values.

(i) Profit and Loss A/c (Cr.) ` 24,000

(ii) General Reserve ` 12,000

The necessary adjusting entry for the same will be:

(a) Tarun’s Capital A/c Dr. 3,000

To Sandeep’s Capital A/c 1,500

To Gajanan’s Capital A/c 1,500

(b) Sandeep’s Capital A/c Dr. 1,500

Gajanan’s Capital A/c Dr. 1,500

To Tarun’s Capital A/c 3,000

(c) Tarun’s Capital A/c Dr. 3,000

To Gajanan’s Capital A/c 3,000

(d) None of these 1

RSPL/3 5 P . T .O.
 OR

Bunty and Babli were partners sharing profits and losses in the ratio of
5 : 3. On 1st April, 2023 they admitted Rani as a new partner and new
ratio was decided as 3 : 2 : 1.

Goodwill of the firm was valued as ` 3,60,000. Rani couldn’t bring any
amount for goodwill. Amount of goodwill share to be credited to accounts of
Bunty and Babli will be:

(a) ` 37,500 and ` 22,500 respectively

(b) ` 30,000 and ` 30,000 respectively

(c) ` 36,000 and ` 24,000 respectively

(d) ` 45,000 and ` 15,000 respectively 1

Read the following hypothetical case study and answer questions

9 and 10.

The capital balances of Havi and Ravi before crediting premium for goodwill
` 15,000 brought by new partner Tanvi, were ` 45,000 and ` 30,000 respectively.
Tanvi brings proportional capital to 1/3rd of total capital of new firm. Their
Balance Sheet showed Furniture at ` 2,00,000, Stock at ` 1,40,000, Debtors at
` 1,62,000 and Creditors at ` 60,000. After Tanvi’s admission, Stock was
revalued at ` 1,00,000, Creditors of ` 15,000 are not likely to be claimed,
Debtors of ` 2,000 have been irrecoverable and provision for doubtful debts to
be provided @ 10%. Havi’s share in loss on revaluation amounted to ` 30,000.

9. What will be the revalued value of furniture?

(a) ` 2,17,000 (b) ` 1,03,000

(c) ` 3,03,000 (d) ` 1,83,000 1

RSPL/3 6
10. What is Tanvi’s share of Capital?

(a) ` 40,000 (b) ` 15,000

(c) ` 12,500 (d) ` 30,000 1

11. Which of the following statements is true if goodwill is not a purchased

goodwill?

(a) It is not shown in the Balance Sheet.

(b) It is shown in the Balance Sheet.

(c) It may or may not be shown in the Balance Sheet.

(d) It is partly shown in the Balance Sheet. 1

12. V Ltd. forfeited 200 shares of ` 100 each held by Devi for non-payment
of allotment money of ` 40 per share (including premium of ` 10 per
share). The first and final call of ` 20 per share was not yet called. In the
forfeiture entry, share capital account will be:

(a) Debited by ` 20,000

(b) Debited by ` 18,000

(c) Debited by ` 16,000

(d) Credited by ` 16,000 1

13. Akash Ltd. acquired assets of ` 10,00,000 and took over creditors of
` 10,000 from Sona Ltd. Akash Ltd. issued 8% Debentures of ` 100 each at
a discount of 10% as purchase consideration. What will be the number of
debentures issued?

(a) 9,000 (b) 10,000

(c) 11,000 (d) 10,100 1

RSPL/3 7 P . T .O.
14. U, V and W share profits in the ratio of 5 : 4 : 3. W retires and the new

ratio is 5 : 3. If W is given ` 12,000 as goodwill, Journal entry will be:

(a) U’s Capital A/c Dr. 2,000

V’s Capital A/c Dr. 10,000

To W’s Capital A/c 12,000

(b) U’s Capital A/c Dr. 10,000

V’s Capital A/c Dr. 2,000

To W’s Capital A/c 12,000

(c) U’s Capital A/c Dr. 7,500

V’s Capital A/c Dr. 4,500

To W’s Capital A/c 12,000

(d) U’s Capital A/c Dr. 6,666

V’s Capital A/c Dr. 5,334

To W’s Capital A/c 12,000  1

15. P and Q are partners in a firm. P is to get commission of 10% of net profit

before charging any commission. Q is to get a commission of 10% on net

profit after charging all commissions. Net profit for the year ended 31st

March 2023, was ` 1,10,000. Find out the commission of Q.

(a) ` 9,900 (b) ` 9,000

(c) ` 10,000 (d) ` 11,000 1

RSPL/3 8
 OR

Harry, Potter and Ali are partners sharing profit in the ratio of 5 : 4 : 1. Ali
is given a guarantee that his minimum share of profit in any given year
would be at least ` 10,000. Any Deficiency would be borne by Harry and
Potter equally. Profit for the year was ` 80,000. What will be the Harry’s
share in the profit of the firm?

(a) ` 40,000 (b) ` 39,000

(c) ` 38,000 (d) ` 41,000 1

16. Which of these will be paid first at the time of dissolution of partnership
firm?

(a) Partner’s Capital (b) Partner’s Loan

(c) Partner’s Wife’s Loan (d) All to be paid ratebly 1

17. Anmol and Gagan were partners sharing profits in the ratio 3 : 2. Indu
was admitted into the firm for 1/4th share of profits. Indu brought ` 40,000
as her capital. The capitals of Anmol and Gagan after all adjustments
relating to goodwill, revaluation of assets and liabilities etc are ` 60,000
and ` 40,000 respectively. It is agreed that capitals should be according to
the new profit sharing ratio.

Pass the necessary Journal entries for the amount of actual cash to be paid
off or brought in by the old partners. 3

18. Sun, Moon and Star are partners in a firm sharing the profit and loss in
the ratio of 4/9 : 1/3 : 2/9. Earth joins the firm as a new partner for 1/9
share in profits. Sun would retain his original share. Calculate the new
profit sharing ratio and sacrificing ratio. 3

RSPL/3 9 P . T .O.
 OR

Varun and Kuber are partners in a business. Balance in Capital and

Current Accounts on 31st March 2023 were:

Capital Account Current Account

Varun ` 5,00,000 ` 80,000

Kuber ` 3,50,000 ` 20,000 (Dr.)

Profits of the last five consecutive years ending 31st March were: 2019
` 60,000; 2020 Loss ` 40,000; 2021 ` 1,30,000; 2022 ` 2,00,000 and 2023
` 2,50,000.

General Reserve appeared in the books at ` 50,000.

If the normal rate of return is 10%, find the value of Goodwill by

Capitalization of Average Profit Method. 3

19. Fill in the blanks in the following entries:

In the books of GDP Ltd.

Journal

Date Particulars L.F. Dr. (`) Cr. (`)

? Dr. ?
To ? ?
(Being application and allotment money
received on 2,000, 12% Debentures of
` 100 each issued at a premium of 5% and
redeemable at a premium of 10%)

? Dr. ?
? Dr. ?
To ? ?
To ? ?
To ? ?
(?) 3

RSPL/3 10
 OR

Fill in the blanks in the following entries:

In the book of ZX Ltd.

Journal

Date Particulars L.F. Dr. (`) Cr. (`)

Sundry Assets A/c Dr. 18,00,000

To Sundry Creditors A/c 2,10,000
To ? ?
To ? ?
(Being business of Mohan and Co. purchased
for a consideration of ` 15,00,000)

? Dr. ?
? Dr. ?
To 9% Debentures A/c ?
(Being purchase onsideration paid to Mohan
and Co. by issue of 9% Debentures of ` 150
each at a discount of ` 50 per debenture) 3

20. Rupali and Anvika were partners in a firm sharing profits in the ratio of
7 : 5. Their respective fixed capitals were Rupali ` 10,00,000 and Anvika
` 7,00,000. The partnership deed provided for the following:

(i) Interest on capital @ 12% p.a.

(ii) Rupali’s salary ` 6,000 per month and Anvika’s salary ` 60,000 per
year.

The profit for the year ended 31.3.2023 was ` 5,04,000 which was
distributed equally without providing interest on capital and salary. Pass
an adjustment entry. 3

RSPL/3 11 P . T .O.
21. Max India Ltd. is registered with an authorized capital of ` 5,00,000

divided into 50,000 equity shares of ` 10 each. The company issued 25,000

equity shares at a premium of ` 5 per share. ` 2 per share were payable

with application. ` 8 per share including premium on allotment and the

balance amount on first and final call. The issue was fully subscribed and

all the amount due was received except the first and final call money on

500 shares allotted to Ram.

Present the ‘Share capital’ in the balance sheet of Max India Ltd. Also

prepare note to accounts for the same. 4

22. M, N and O were partners in a firm sharing profits in the ratio of

4 : 5 : 1. On 31st March 2023 their firm was dissolved. On this date the

Balance Sheet showed a balance of ` 1,34,000 in Debtors Account and

a balance of ` 14,000 in Provision for Doubtful Debts Account. Both the

accounts were closed by transferring their balances to Realisation Account.

` 4,000 of the debtors became bad and nothing could be realized from them

on dissolution. N agreed to look after the dissolution work for which he

was allowed a remuneration of ` 16,000. N also agreed to bear dissolution

expenses for which he was allowed a lump sum payment of ` 4,000. Actual

dissolution expenses were ` 6,500 and the same were paid from the firm’s

cash. Loss on dissolution amounted to ` 37,000.

Pass the necessary Journal entries for the above transactions on the

dissolution of the partnership firm. 4

RSPL/3 12
23. Guru Ltd. invited applications for issuing 80,000 equity shares of ` 10
each at a premium of ` 10 per share. The amount was payable as follows:

On Application and Allotment: ` 10 (including ` 5 premium)

On First and Final Call: ` 10 (including ` 5 premium)

Applications for 1,00,000 shares were received. Applications for 10,000

shares were rejected and application money was refunded. Shares were
allotted on pro-rata basis to the remaining applicants. Excess application
money received from applicants to whom shares were allotted on pro-rata
basis was adjusted towards sums due on first and final call. All calls were
made and were duly received except the first and final call money from
Kumar who had applied for 1,800 shares. His shares were forfeited. The
forfeited shares were reissued at ` 9 per share fully paid up.

Pass necessary Journal entries for the above transactions in the books of
Guru Ltd.  6

OR

Pass the Journal entries for forfeiture and reissue of shares in both the
following cases:

(a) Janta Ltd forfeited 1,500 shares of ` 10 each at a premium of ` 2 each

due to non-payment of first call of ` 3. The final call of ` 2 is not yet
made. Out of these 900 shares were reissued at ` 6, ` 8 called up.

(b) Aakash Ltd. forfeited 5,000 shares of ` 10 each (issued at ` 2

premium) for non-payment of first call of ` 2 per share. Final call of
` 3 per share was not yet made. Out of these 2,000 shares were
rereissued at ` 10 per share as fully paid. 6

RSPL/3 13 P . T .O.
24. Following is the Balance Sheet as at 31st March 2023 of Meera and

Sarthak, who share profits and losses in the ratio of 3 : 2.

Balance sheet

Amount Amount
Liabilities Assets
(`) (`)

Capital A/cs: Plant and Machinery 1,00,000

Meera 1,00,000 Land and Building 80,000

Sarthak 1,00,000 2,00,000 Debtors 1,20,000

General Reserve 1,50,000 Less: Provision for

Workmen Compensation    Doubtful Debts 10,000 1,10,000

Reserve 50,000 Stock 1,20,000

Creditors 1,00,000 Cash 90,000

5,00,000 5,00,000

On 1st April 2023, they admit Rohit into partnership on the following terms:

(i) Provision for Doubtful Debts would be increased by ` 20,000.

(ii) Value of Land and Building would be increased to ` 1,80,000.

(iii) Value of Stock would be increased by ` 40,000.

(iv) Liability against the Workmen Compensation Reserve is determined

at ` 20,000.

(v) Rohit brought ` 1,00,000 in cash as his share of goodwill.

(vi) Rohit would bring in further cash as would make his capital equal to

20% of the total capital of the new firm after the above revaluation

and adjustments are carried out.

Pass necessary Journal entries for above adjustments. 6

RSPL/3 14
 OR

X,Y and Z were partners in firm sharing profits and losses in the ratio of
3 : 2 : 1. Their Balance Sheet as at 31st March 2023, was as follows:

Amount Amount
Liabilities Assets
(`) (`)

Capital A/cs: Machinery 4,70,000

X 2,00,000 Investments 1,10,000

Y 1,80,000 Debtors 1,20,000

Z 1,20,000 5,00,000 Less: Provision for

Workmen Compensation Doubtful Debts 10,000 1,10,000

Fund 60,000 Stock 1,40,000

Employees’ Provident Fund 1,10,000 Cash 30,000

Creditors 1,90,000

8,60,000 8,60,000

On 1st April 2023, Z retires from the firm on the following terms:

(i) Provision for doubtful debts was to be maintained at 10% on debtors.

(ii) Stock was undervalued by ` 10,000.

(iii) An old customer, whose account was written off as bad, paid ` 15,000.

(iv) 20% of the Investments were taken by X at book value.

(v) Claim on account of workmen’s compensation amounted to ` 70,000.

(vi) Creditors included a sum of ` 27,000 which was not likely to be

claimed.

(vii) Goodwill valued at ` 60,000.

Pass necessary Journal entries on retirement of Z. 6

RSPL/3 15 P . T .O.
25. Neil, Nitin and Mukesh were partners in a firm sharing profits and losses
in the ratio 4 : 3 : 2. Their Balance Sheet as on 31st March 2023 was as
follows:

Balance Sheet of Neil, Nitin and Mukesh

as at March 31, 2023

Amount Amount
Liabilities Assets
(`) (`)

Capitals: Plant and Machinery 6,40,000

Neil 4,00,000 Stock 2,30,000

Nitin 3,00,000 Sundry Debtors 1,40,000

Mukesh 2,00,000 9,00,000 Cash at Bank 40,000

General Reserve 90,000

Creditors 60,000

10,50,000 10,50,000

Nitin died on 31st July 2023. According to the partnership deed, the
executors of the deceased partner are entitled to:

(a) Balance of Partner’s Capital Account

(b) Salary @ ` 6,000 per month

(c) Share of goodwill calculated on the basis of twice the average of

past three years’ profits and share of profits from the closure of the
last accounting year till the date of death calculated on the basis of
average of three completed years’ profits before death.

Profits for 2020-21, 2021-22 and 2022-23 were ` 80,000, ` 90,000 and
` 1,00,000 respectively.

Nitin withdrew ` 6,000 on 15th May 2023.

Prepare Nitin’s Capital Account to be redeemed to his executors. 6

RSPL/3 16
26. Edutech an educational company of ATPL Ltd. had a share capital

of ` 60,00,000 divided in Equity Shares of ` 100 each and 10,000, 9%

Debentures of ` 100 each as part of capital employed.

The company need additional funds of ` 36,00,000 for which they decided

to issue debentures in such a way that they got required funds after

issuing debentures of the same class as earlier, at 10% discount. These

debentures were to be redeemed at 15% premium after 4 years. These

debentures were issued on 1st October 2023. You are required to:

(i) Pass entries for issue of debentures.

(ii) Prepare Loss on Issue of Debentures Account assuming there was an

existing balance in Securities Premium Account of ` 6,40,000.

(iii) Pass entries for interest on debentures on 31st March 2024 assuming

interest is payable on 30th September and 31st March every year. 6

PART – B
(Analysis of Financial Statement)

27. Financial statement analysis includes _____________ and _____________ of

financial statements:

(a) Analysis, Preparation

(b) Preparation, Interpretation

(c) Preparation, Analysis

(d) Analysis, Interpretation  1

RSPL/3 17 P . T .O.
 OR

___________ ratios indicate the speed at which activities of the business

are being performed.

(a) Profitability (b) Turnover

(c) Solvency (d) Liquidity 1

28. Revenue from Operations ` 2,00,000; Inventory Turnover ratio 5 times;

Gross Profit 25%. Find out the value of Closing Inventory, if Closing
Inventory is ` 8,000 more than the Opening Inventory.

(a) ` 38,000

(b) ` 22,000

(c) ` 34,000

(d) ` 36,000  1

29. Statement I: The primary objective of Cash Flow Statement is to provide

useful information about cash flows (inflows and outflows) of an enterprise
during a particular period under various heads, i.e. operating activities,
investing activities and financing activities.

Statement II: Cash Flow Statement is a substitute of Statement of Profit

and Loss Account.

(a) Both Statements are correct.

(b) Both Statements are incorrect.

(c) Statement I is correct and Statement II is incorrect.

(d) Statement I is incorrect and Statement II is correct. 1

RSPL/3 18
 OR

Dividend paid by finance company is classified under which kind of

activity while preparing Cash Flow Statement?

(a) Operating Activity

(b) Investing Activity

(c) Financing Activity

(d) None of Above 1

30. From the following information, determine the inflow of cash from sale of

machinery:

Particulars 31-3-2023 31-3-2022

Machinery ` 5,00,000 ` 3,00,000

Additional Information:

Depreciation for the year ended 31-3-2023 was ` 50,000.

Purchase of machinery during the year ` 4,00,000.

Part of machinery was sold at a profit of ` 50,000

(a) ` 2,00,000

(b) ` 2,50,000

(c) ` 3,00,000

(d) ` 3,50,000  1

RSPL/3 19 P . T .O.
31. Classify following items under major heads and sub-heads (if any) in the
Balance Sheet of a company as per the Schedule III of the Companies Act,
2013.

(i) Securities Premium

(ii) Unpaid Dividend

(iii) Investment in Debentures

(iv) Stores and Spares

(v) Interest due on Calls-in-Arrears

(vi) Bills Payable  3

32. Bingo Ltd. is interested to know the return on their total investment made
in their company. The company is also interested to know what portion of
the total assets have been financed through long-term debts.

On the basis of the below information, compute Return on Capital Employed:

Net Profit after Interest and Tax ` 50,000; Current Assets ` 2,00,000;
Current Liabilities ` 1,00,000; Tax rate 20%; Fixed Assets ` 3,00,000;
10% Long-term Debt ` 2,00,000. 3

33. From the following Statement of Profit and Loss of Sky Ltd. for the years
ended 31st March 2022 and 2023, prepare a Common-size statement:

Particulars 31st March 2023 31st March 2022

Revenue from Operations ` 12,50,000 ` 10,00,000

Depreciation and Amortisation Expenses ` 5,00,000 ` 3,50,000
Other Expenses ` 1,00,000 ` 1,50,000
Tax rate 30% 30% 4

RSPL/3 20
 OR

From the following Balance sheet as at 31st March 2023 and 2022,
prepare Comparative Balance Sheet:

Note 31st March 31st March

Particulars
No. 2023 2022
I. EQUITY AND LIABILITIES

1. Shareholders’ Funds:

Share Capital 1,75,000 1,50,000

2. Non-Current Liabilities:
Long-term Borrowings 50,000 1,00,000

3. Current Liabilities:

Trade Payables 75,000 50,000

Total 3,00,000 3,00,000

II. ASSETS

1. Non-Current Assets:

Property, Plant and Equipment and

Intangible Assets 2,00,000 1,50,000

2. Current Assets:

Trade Receivables 1,00,000 1,50,000

Total 3,00,000 3,00,000 4

34. Read the following hypothetical text and answer the given questions on
the basis of the same: KFC started to provide finance training in online
and offline mode in 2019. The main objective was to improve financial
literacy in India. It has acquired funding through equity and borrowing
from banks. Balance Sheets of year ending 31st March 2022 and 2023 are
as follows:

RSPL/3 21 P . T .O.
 Note 31st March 31st March
Particulars
No. 2022 (`) 2023 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds:

(a) Share Capital 2,00,000 2,50,000

(b) Reserves and Surplus 1 50,000 70,000

2. Non-Current Liabilities:

Long-term Borrowings 2 1,00,000 80,000

3. Current Liabilities:

(a) Trade Payables 3 60,000 1,60,000

(b) Other Current Liabilities 4 25,000 20,000

Total 4,35,000 5,80,000

II. ASSETS

1. Non-Current Assets:

(a) Property, Plant and Equipment and

Intangible Assets

(i) Property, Plant and Equipment 5 1,50,000 2,00,000

(ii) Intangible Assets 6 10,000 2,000

(b) Long-term Loans and Advances 1,00,000 1,30,000

2. Current Assets:

(a) Inventories 70,000 90,000

(b) Trade Receivables 40,000 60,000

(c) Cash and Cash Equivalents 65,000 98,000

Total 4,35,000 5,80,000

RSPL/3 22
 Notes to Accounts:

31st 31st
Note
Particulars March March
No.
2022 (`) 2023 (`)

1. Reserves and Surplus:

General Reserve 50,000 70,000

2. Long Term Borrowings:

12% Debentures 1,00,000 80,000

3. Trade Payables:
Creditors 40,000 60,000
Bills Payable 20,000 1,00,000

4. Other Current Liabilities:

Outstanding Expenses 25,000 25,000

5. Property, Plant and Equipment and Machinery 2,00,000 2,60,000

Less: Provision for Depreciation (50,000) (60,000)
1,50,000 2,00,000

6. Intangible Fixed Assets:

Goodwill 10,000 2,000

Additional Information:

(a) During the year a piece of machinery with a book value of ` 30,000
and provision for depreciation on it ` 10,000 was sold at a loss of 50%
on its book value.

(b) Debentures were redeemed on 31st March 2023.

RSPL/3 23 P . T .O.

You are required to calculate:

(i) Operating profit before working capital changes

(ii) Cash flow from operating activities

(iii) Cash flow from investing activities

(iv) Cash flow from financing activities

(v) Closing cash and cash equivalents 6

RSPL/3 24