KENDRIYA VIDYALAYA SANGATHAN, AGRA REGION

PRE - BOARD EXAM-2024-25

SUBJECT - ACCOUNTANCY (055 )
TIME 3 HOURS MAX. MARKS 80
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Part - A & Part - B is compulsory for all candidates.
4. Question 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions 17 to 20, 31and 32 carries 3 marks each.
6. Questions from 21 ,22 and 33 carries 4 marks each
7. Questions from 23 to 26 and 34 carries 6 marks each
8. 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)
S.No Question Marks
.
1 In a firm, 10% of net profit after deducting all adjustments, including reserve in 1
transferred to general reserve.
The net profit after all adjustments but before transfer to general reserve is
₹44,000.The amount to be transferred to reserve is……….. .
(A) ₹4000
(B) ₹4,400
(C) ₹2,500
(D) ₹2,200
2 Assertion (A): The fixed capital account balance of partner may change due to 1
additional capital introduced or capital withdrawn or both, during the year.
Reason (R): Under fixed capital method, the partner’s capital accounts balance always
remains same.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation
of Assertion.
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct
explanation of Assertion.
(C) Assertion (A) is true, Reason (R) is false.
(D) Assertion (A) is false, Reason (R) is true.
3 Uncalled capital is that portion of the ……… which has not been yet called up and the 1
portion of such uncalled capital to be called only in the event of winding up of the
 Company is called …………
(A) Authorized capital; capital reserve
(B) Subscribed capital; reserve capital
(C) Registered capital; capital reserve
(D) Issued capital; reserve capital
OR

Star ltd. issued 20,000, 10% debentures of ₹100 each at 10% discount and were
to be redeemed at certain rate of premium. Exiting balance of Securities
Premium before issuing of these debentures was ₹10, 00,000 and after writing off loss
on issue of debentures, the balance in Securities Premium was ₹4, 00,000. At what
rate of premium these debentures were redeemed?
A. 10%
B. 20%
C. 5%
D. 15%

4 At the time of admission of new partner Priya, Old partners Archi and Shivam had 1
debtors of ₹ 5, 30,000 and a provision for doubtful debts (PDD) of ₹ 30,000 in their
books. As per terms of admission, assets were revalued, and it was found that debtors
worth ₹ 20,000 had turned bad and hence should be written off. Which journal entry
reflects the correct accounting treatment of the above situation?
(A) Bad Debts A/c Dr. 20,000
To Debtors A/c 20,000
Prov for D. debts A/c Dr. 20,000
To Bad Debts A/c 20,000
(B)
Bad Debts A/c Dr. 20,000
To Debtors A/c 20,000
Revaluation A/c Dr. 20,000
To Provision for doubt debts A/c 20,000
C.
Revaluation A/c Dr. 20,000
To Debtors A/c 20,000
D.
Bad Debts A/c Dr. 20,000
To Revaluation A/c 20,000
OR
 Ram and Shyam were partners sharing profits and losses in the ratio of 4:1. Their
balance sheet shows Machinery at ₹ 2,50,000. They admitted Mohan as a new
partner for 1/5th share. In additional information it is given that Machinery is
overvalued by 25%. The share of loss/gain of revaluation of Shyam is &
current value of Machinery shown in new balance sheet is .
A. Gain ₹ 10,000, Value₹ 3,12,500
B. Loss ₹ 12,500, Value₹ 2,00,000
C. Gain ₹ 12,500, Value₹ 1,87,500
D. Loss ₹ 10,000, Value₹ 2,00,000

5 On 1st April, 2024, a firm had Rs. 1,20,000 worth of fixed assets and Rs. 80,000 as 1
current assets. Creditors of the firm on this date were Rs. 20,000. The goodwill of the
firm is valued at Rs. 40,000 on the basis of 4 years’ purchase of super profit on the
basis of 10% return on capital employed. Average profit of the firm is :
(A) Rs.28,000
(B) Rs.58,000
(C) Rs.30,000
(D) Rs.18,000
6 Shyam had allotted for 1200 shares, and was allotted in the ratio 4 : 3. He had paid 1
application money of ₹ 2 per share and couldn’t pay allotment money of ₹ 5 per share.
First and Final call of ₹ 3 per share was not yet made by the company. His shares
were forfeited. The following entry will be passed
Share Capital A/c Dr. X
To Share Forfeited A/c Y
To Share Allotment A/c Z

Here X, Y and Z are:

A. ₹ 8,400; ₹ 2,400; ₹ 6,000 B. ₹ 9,600; ₹ 3,000; ₹ 6,000
C. ₹ 8,400; ₹ 3,200; ₹ 5,200 D. ₹ 8,400; ₹ 5,200; ₹ 3,200
OR
X Ltd. Forfeited 100 shares of Rs.10 each, Rs. 8 called up, on which the shareholders
had paid application and allotment money of Rs. 5 per share. Out of these 75 Shares
were reissued to Y @ Rs. 7 per share Rs. 8 paid- up.
(A) Rs. 375
(B) Rs. 225
(C) Rs. 300
(D) Rs. 150
7 On 1st April 2023, T.T. Ltd. issued 500, 9% Debentures of ₹ 500 each at a discount of 1
4% redeemable at a premium of 5% after three years. Debenture interest is payable on
30th September and 31st March.On 31st March every year, the company closes its
books. What amount of interest payable to debenture holders on 30 th September
2023?

(A) Rs. 11,250

(B) Rs.10125

(C) Rs. 22,500

(D) Rs.9,720

8 Mohan, a partner took over Investment of ₹ 43,000 and accepted cash ₹45,000 in full 1
settlement of her Loan of ₹ 90,000. Investment was already transferred to Realization
Account. How it will effect the Realisation Account?
A. Realisation Account will be debited by ₹ 43,000
B. Realisation Account will be debited by ₹ 88,000
C. Realisation Account will be credited by ₹ 45,000
D. No effect on Realisation Account
OR
Daya, Yash and Viraj were partners sharing profits and losses in the ratio 3:2:1. Daya
one of the partner was paid only ₹ 5,000 for his loan to the firm which amounted to ₹
5,500. Daya’s loan amount already transfer in her loan account. How it will affect the
books of Accounts at the time of dissolution of firm?

A. Only ₹ 5,000 (Bank A/c) will be transfer in Dr. side Daya’s Loan A/c.
B. ₹ 5,000 (Bank A/c) will be transfer in Dr. side Daya’s Loan A/c and ₹ 500 will be
credited (Daya’s Loan A/c) in Realisation Account.
C. ₹ 5,000 will be credited in Realisation Account and ₹ 5, 00 will be transfer in Dr. side
Daya’s Loan A/c.
D. ₹ 5,000 (Bank A/c) & ₹ 500 (Realisation A/c) will be transfer in Dr. side Daya’s
Loan A/c. and ₹ 500 will be credited (Daya’s Loan A/c) in Realisation Account.
s
9 Ashok and Vijay are partners in the ratio of 3:2 their fixed capital were Rs. 3,00,000 1
and Rs.4,00,000 respectively. After the close of accounts for the year it was observed
that the Interest on Capital which was agreed to be provided at 5% p.a. was
 erroneously provided at 10% p.a. By what amount will Ashok’s account be affected if
partners decide to pass an adjustment entry for the same?
(A) Ashok’s Current A/c will be Debited by ₹ 20,000.
(B) Ashok’s Current A/c will be Credited by ₹ 6,000.
(C) Ashok’s Current A/c will be Credited by ₹15,000.
(D) Ashok’s Current A/c will be Debited by ₹ 35,000.
10 At the time of dissolution Machinery appears at ₹ 80,000.60% of them have been sold 1
at a profit of ₹ 2,000. 20% of the remaining were sold at a discount of 30% and
remaining were taken over by P( a partner)at book value. How much amount realized
from machinery?
A. ₹ 80,400.
B. ₹ 53,840.
C. ₹ 58.480.
D. ₹ 64040 .
11 P, Q and R were partners sharing profits and losses in the ratio of 2:1:1. In the profit 1
and loss appropriation account net profit ₹ 70,000 as on March 31, 2024 . Which of
the following items would have affected this net profit ?
A. Rent paid to partner
B. Interest on partner’s loan
C. Partner’s commission
D. Both B and C
12 The auditor’s advice must have been based on the provisions of section 52(2) of the 1
Companies Act, 2013 which prescribes the purposes for which Securities Premium
Reserve can not be utilized.
(A) Issuing fully paid bonus shares to the members;
(B) Written off preliminary expenses;
(C) Reserve for payment of dividend;
(D) Purchasing its own shares;
13 4,000 shares allotted to Ms. Regal, on which ₹ 80 each called up and ₹ 50 paid were 1
forfeited and reissued 3,000 shares for ₹ 70 each as ₹ 90 paid up. Amount transferred
to capital reserve A/c is
A. ₹ 1,50,000
B. ₹ 90,000
C. ₹ 60,000
D. ₹ 40,000
14 Arun , Babita and Charu are partners in a firm sharing profits in the ratio of 3:3:2.They 1
decided to share future profits and losses in the ratio of 1:1:1 with effect from 1st April
 2024. They decided to record the effect of the following without affecting their book
values.
(i) Profit and loss account (Cr) ₹ 8,000
(ii) General reserve ₹ 4,000

(A) Charu’s capital A/c Dr. 1,000

To Arun’s Capital A/c 500
To Babita’s Capital A/c 500

(B) Arun’s Capital A/c Dr. 500

Babita’s Capital A/c Dr. 500
To Charu’s capital A/c Dr. 1,000

(C) Charu’s capital A/c Dr. 1,000

To Babita’s Capital A/c 1,000
(D) Charu’s capital A/c Dr. 3,000
To Arun’s Capital A/c 1,500
To Babita’s Capital A/c 1,500
15 Riya, Parth and Khushi were partners sharing profits and losses in the ratio 3:2:1. 1
Their Capital balance as on March 31, 2024 was ₹ 3, 00,000; ₹ 2, 00,000 and ₹ 1,
00,000 respectively. On the same date, they admitted Shubh as a new partner for 1/4
share. Shubh was to bring ₹ 50,000 for his share of goodwill and 25% of the
combined capital of all the partners in the firm. What will be the amount of capital
brought in by Shubh on his admission as a new partner?
A. ₹ 1,40,000
B. ₹ 1,50,000
C. ₹ 1,62,500
D. ₹ 2,05,000
OR
X, Y and Z were partners sharing profits and losses in the ratio 2:1:1. Y died on 31
October, 2023 and total amount transferred to Y’s executors was ₹ 10,60,000. Y’s
executors were being paid ₹ 60,000 immediately and balance was to be paid in four
equal quarterly installments together with interest @ 10% p.a. Total amount of interest
to be credited to Y’s executors Account for the year ended March 31, 2024 will be?
A. ₹ 50,000
B. ₹ 47,500
C. ₹ 40,000
 D. ₹ 37,500

16 A and B are partners sharing profits in the ratio of 3:2.C is admitted into partnership.A 1
sacrifices 1/3rd of his share and B sacrifices 1/10th from his share in favour of C.New
profit sharing ratio will be:
(A) 10:9:6
(B) 4:3:3
(C) 8:9:13
(D) 3:3:4
17 Rajan, a partner of a firm under dissolution was to get a remuneration 3 % of the total 3
assets realised including cash and 5 % of the amount distributed to the partners.
Sundry assets (excluding Cash ₹ 10,000) realised at ₹ 1, 20,000 and sundry liabilities
to be paid ₹ 25,800.Calculate Rajan’s remuneration and Show your workings clearly.
Also pass necessary journal entry for remuneration.
18 A, B and C were partners sharing profits, and losses in the ratio of 3:2:1. B died on 3
31st July, 2023 on which date the capitals of A, B and C after all necessary
adjustments stood at ₹71,000, ₹ 53,850 and 36,700 respectively. A and C continued to
carry on the business for Four months without settling the accounts of B. During the
period of four months from 31-7-2023, a profit of ₹ 21,900 is earned using the firm’s
property. State which of the two options available u/s 37 of the Indian Partnership Act,
1932 should be exercised by executors of B and why?.
OR
A and K are partners sharing profits and losses in the ratio 2:1. They decided to admit
S for 1/4 share in the profits. For this purpose, the goodwill of the firm was to be
valued at two years' purchase of super profits.
The Balance Sheet of the firm on Saurabh's admission was as follows:
Liabilities Amount (₹) Assets Amount(₹)
Capital Accounts Fixed Assets (Tangible) 85,000
A 80,000 Furniture 15,000
K 40,000 1,20,000 Stock 30,000
Creditors 15,000 Debtors 20,000
General Reserve 30,000 Cash 50,000
Profit & Loss 10,000
Bills payable 25,000

2,00,000 2,00,000

The normal rate of return is 12% p.a. Average profit of the firm for the last four years
 was ₹50,000. Calculate S’s share of goodwill.
19 Pass necessary Journal Entries for the following transactions in the books of L Ltd. : 3

L Ltd. purchased a running business from O Ltd. for a sum of Rs. 2,50,000 payable as
Rs. 2,20,000 in fully paid equity shares of Rs. 10 each at 10% premium and balance
by a bank draft. The assets and liabilities consisted of the following :Plant and
Machinery Rs. 90,000; Building Rs. 90,000; Sundry Debtors Rs. 30,000; Stock Rs.
50,000; Sundry Creditors Rs. 20,000
OR
M Ltd. Forfeited 180 shares of Rs. 100 each, Rs. 80 called up, share issued at a
premium of Rs. 20 per share to R for non-payment of allotment money of Rs. 50 Per
share (including premium). Out of these 160 shares were reissued to S as Rs. 80
called up for Rs.100 per share fully paid-up. Pass journal entries.
20 X,Y and Z were partners sharing profits and losses in the ratio 4:3:2. Cat 3
retired and on that date there was a balance of Workmen Compensation Reserve of ₹
63,000 Investment of ₹ 2,00,000 and Investment Fluctuation Reserve of
₹ 18,000 was appearing in the balance sheet. Pass necessary journal entries for
Workmen Compensation Reserve & Investment Fluctuation reserve in the following
cases.
(i) if a claim on account of workmen compensation is estimated at ₹18,000.
(ii) Market Value of Investments was ₹ 1, 91,000.
(iii) Market Value of Investments was ₹ 1, 73,000.

21 X Ltd. forfeited certain number of shares of Face Value ₹ 10 each, for nonpayment of 4
final call money of ₹ 3. These shares were reissued at ₹ 6 per share fully paid up and
amount of ₹ 3,000 was transferred to capital Reserve account. Calculate number of
shares and Pass necessary Journal entries to show the above transactions.
22 X, Y and Z were partners sharing profits and losses equally. X died on 1st April, 2023 4
and total amount transferred to X’s executors was ₹ 7, 80,000. X’s executors were
being paid ₹ 1,80,000 immediately and balance was to be paid in four equal quarterly
installments, together with Interest @ 8% p.a. Pass entries till payment of first
Installment.
23 Aryan Ltd. issued 30,000 shares of Rs. 10 each at a Premium of Rs. 2 per share, 6
payable as follows:
On Application Rs.2 per share
On Allotment Rs.5 per share (Including Premium)
On First Call Rs.3 per share
On Second & Final Call Balance
 Applications were received for 50,000 shares. Applications for 10,000 shares were
rejected. Applicants for 35,000 shares were allotted 25,000 shares pro-rata basis.
The remaining applicants were allotted the remaining shares. Money overpaid on
application was adjusted to allotment. ‘Raju’ to whom 750 shares were allotted failed
to pay the allotment money and on his subsequent failure to pay the first call. After first
call his shares were forfeited. The forfeited shares were re-issued at Rs. 12.50 per
share fully paid up after the final call.
Pass the necessary Journal Entries in the books of Aman Ltd.
OR
(a) Pass the necessary journal entries for “Issue of Debenture” for the following
(i) Z Ltd. issued of Rs.70,000, 12% debentures of Rs. 100 each issued at a premium
of 5% redeemable at Rs. 110 per debenture.
(ii) P Ltd. issued 500, 10% Debentures of Rs. 100 each at a 10% discount redeemable
at a premium of Rs.15 per debenture.
(b) Y Ltd. obtained a loan of Rs. 12,00,000 from State Bank of India. The company
Issue 15,000, 12% debentures of Rs. 100 each as collateral in favour of State Bank of
India. Show how these items will be presented in the Balance Sheet of the company.
24 A, B and C were partners in a firm sharing Profits in the ratio of 3:2:1. On 31 st March, 6
2024, their Balance Sheet was as follows:
Balance Sheet
Liabilities Amount Assets Amount
Sundry creditors 30,000 Cash at Bank 18,000
Reserve Fund 12,000 Debtors 25,000
Bills Payable 16,000 Less: Provision for doubtful Debts 3,000 22,000
Capital Account Furniture 30,000
A 40,000 Stock 18,000
B 40,000 Machinery 70,000
C 30,000 1,10,000 Goodwill 10,000
1,68,000 1,68,000
On the above date B retired from the firm on following terms:
(1) Stock will be depreciated by 10% and Furniture by 5%.
(2) Provision for Doubtful Debts will be raised by ₹ 1,000.
(3) Creditors of ₹ 6,000 is not likely to be claimed.
(4) There was an outstanding book of repair for ₹ 1,100.
(5) Goodwill of the firm was valued at ₹ 22,000, which is not be to shown in the books
of new firm.
 (6) `B’ is paid in full with the cash brought in by A and C in such a manner that their
capitals are in proportion in their profit sharing ratio of 3:2.
Prepare Revaluation A/c and Partners’ Capital A/c of A and C after B’s retirement.
OR
Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio
of 3:3:4. Their partnership deed provided for the following
(i) Interest on capital @ 5% per annum.
(ii) Interest on partners' loan @ 6% per annum.
(iii) Interest on drawings @ 12% per annum.
(iv) Ram was allowed an annual salary of ₹4,000, Shyam was allowed a commission
of 10% of net profit as shown by profit and loss account.
Their fixed capitals were: Ram ₹5,00,000; Shyam ₹8,00,000 and Mohan ₹4,00,000.
On 1st April, 2024 Shyam extended a loan of ₹ 1,00,000 to the firm. The net profit of
the firm for the year ended 31st March, 2024 before interest on Shyam's loan was
₹3,06,000.
Prepare profit and loss appropriation account and current accounts of Ram, Shyam
and Mohan for the year ended 31st March, 2024 assuming that Shyam withdrew
₹5,000 at the end of each month, Ram withdrew ₹10,000 at the end of each quarter
and Mohan withdrew₹ 40,000 at the end of each half year.
25 Following is the balance sheet of X and Y as on 31st March, 2024. 6
Balance Sheet
as at 31st March, 2024
Liabilities Amount Assets Amount
(₹) (₹)
Creditors 3,60,000 Bank 80,000
Mrs X's Loan 60,000 Stock 70,000
Y's Loan 1,00,000 Investments 1,00,000
Investment Fluctuation Fund 30,000 Debtors 2,00,000
Capital A/cs (-) Provision for
X 2,00,000 Bad Debts (20,000) 1,80,000
Y 1,00,000 3,00,000 Fixed Assets 3,80,000
Profit and Loss A/c 40,000
8,50,000 8,50,000

The firm was dissolved on 31st March, 2024. The assets were realized and the
liabilities were paid as under
(i) X promised to pay-off Mrs X's loan and took away stock at 20% discount.
 (ii) Y took away 90% of the investments at 10% discount.
(iii) S, a debtor of 50,000 had to pay the amount due 3 months after the date of
dissolution. He was allowed a discount of 5% for making payment immediately. The
remaining debtors were collected in full
(iv) Creditors were paid ₹ 3,50,000 in full settlement of their claim.
(v) Fixed assets realized ₹ 2,82,000 and remaining investment realized ₹ 7,500.
(vi) There was an old furniture which had been written-off completely from the books.
Y took away the same for 4,000.
(vii) Realization expenses ₹ 2,000 were paid by X.
Prepare Realization account..
26 Balance Sheet (Extract) 6
Of YESH Ltd as at 31.03.2024 (as per schedule -III of Companies Act 2013)
Note no. 31.03.2023 31.03.2024

I- Equity & Liabilities

1. Shareholders Funds
a) . Share Capital 1 47,70,000 57,70,000
b). Reserves and Surplus 2 2,50,000 4,50,000

Note no.1 (For year ending 31.03.2023)

Share Capital
1). Authorised Share Capital
10,00,000 Equity Shares of Rs. 10 each 1,00,00,000
2). Issued Share Capital
4,80,000 Equity Shares of Rs. 10 each 48,00,000
3). Subscribed Share Capital
a). Subscribed and Fully paid
Rs.10 per share on 4,70,000 Equity Shares 47,00,000
b). Subscribed and not Fully paid
Rs. 10 per share on 10,000 Equity shares 1,00,000
Less not paid: Rs.3 per share on 10,000 Equity shares -30,000 47,70,000

Note no.1 (For year ending 31.03.2024)

Share Capital
1). Authorised Share Capital
10,00,000 Equity Shares of Rs. 10 each 1,00,00,000
 2). Issued Share Capital
5,80,000 Equity Shares of Rs. 10 each 58,00,000
(Out of these 50,000 shares were issued to the vendors as
consideration for Capital asset purchased)
3). Subscribed Share Capital
a). Subscribed and Fully paid
Rs.10 per share on 5,70,000 Equity Shares 57,00,000
b). Subscribed and not Fully paid
Rs. 10 per share on 10,000 Equity shares 1,00,000
Less not paid: Rs. 3 per share on 10,000 Equity shares - 30,000 57,70,000

Note no. 2 - Reserves and Surplus

31.03.2023 31.03.2024
Capital Reserve Nil 50,000
Securities Premium 2,50,000 4,00,000

During the year the company took over the business of Sun Ltd. with Assets of Rs.
12,50,000/- and Liabilities of Rs.7,10,000. Purchase consideration was paid in cash
and by issue of equity shares at par. The entire transaction resulted in Capital
reserve of Rs.50,000.
Q1. What is the total face value of Shares issued by the Company during the year
2023-24.
A) . Rs.6,00,000
B) Rs. 10,00,000
C). Rs. 9,50,000
D). Rs. 11,20,000
Q2. If 6,000 of the forfeited shares were issued at Rs. 12 per share, what will be the
amount of securities premium as on April 1, 2024?
A). Rs,4,20,000
B). Rs.4,28,000
C). Rs.4,12,000
D). Rs.4,22,000
Q3. On April 1, 2024, the company forfeited all the defaulting shares. What amount
will appear in the Share Forfeiture account at the time of forfeiture?
A). Rs.40,000
B). Rs.60,000
C). Rs.30,000
 D). Rs.70,000
Q4. What will be the number of Issued shares, as on April 1,2024, after the forfeiture
of these shares?
A). 5,75,000 shares
B). 5,80,000 shares.
C). 4,75,000 shares.
D). 5,35,000 shares.
Q5. If 6,000 of the forfeited shares were issued at Rs. 12 per share, what will be the
amount of Capital reserve as on April 1, 2024?
A). Rs.82,000
B). Rs.86,000
C). Rs.92,000
D). Rs.90,000
Q6. What will be the amount in the "Subscribed and Fully paid" after the reissue of
these 6000 shares?
A). Rs.57,60,000
B). Rs.58,00,000
C). Rs.57,00,000
D). Rs.57,80,000
PART - B
Analysis of Financial Statements
27 Which analysis is considered as static: 1
(A) Horizontal analysis
(B) Vertical analysis
(C) Internal analysis
(D) External analysis
OR
Which of the following transactions will improve the current ratio:
(A) Cash collect from trade receivables
(B) Purchase of goods for cash
(C) Payment to trade payables
(D) Credit purchase of goods
28 Assuming liquid ratio 1.2:1.Cash collected from debtors would: 1
(A) Increase liquid ratio
(B) Have no effect on liquid ratio
(C) Decrease liquid ratio
(D) Increase gross profit ratio
29 Which of the following transactions are shown under financing activities while 1
preparing cash flow statement?
(I) Issue of equity shares
(II) Cash received from debtors
(III) Redemption of debentures
(IV) Cash paid against trade payables
(A) Only I
(B) I and II
(C) I and III
(D) I,II and IV
OR
Which of the statement is correct?
(A) Cash flow statement is not a replacement of fund flow statement
(B) Cash flow statement is a substitute of income statement
(C) Cash flow statement records only cash items
(D) Cash flow statement records only cash equivalent items

30 Statement-I: ‘S Ltd.’ was carrying on a business of packaging in Delhi and earned 1

good profits in the past years. The company wanted to expand its business and
required additional funds. To meet its requirements the company issued debentures of
₹20,00,000. It purchased a computerized machine of ₹10,00,000. During the current year
the Net Profit of the company was ₹5,00,000. Cash flows from operating,
investing and financing activities from the above transactions will be ₹5,00,000:
(₹10,00,000); ₹20,00,000 respectively.
Statement-II: The goodwill of X Ltd. decreased from ₹3,00,000 in 2022-23 to
₹2,50,000 in 2023-24. It will be taken as sold of goodwill of 50,000 and will be shown
under Cash outflow from Investing Activities.
A. Both the statements are true.
B. Both the statements are false.
C. Only Statement-I is true.
D. Only Statement-II is true.

31 Find the heads and sub-heads under which the following items will appear in the 3
balance sheet of a company as per Schedule III, Part I of Companies Act, 2013?
(A) Interest of calls in advance
(B) Security premium
(C) Provision for employees earned leave payable on retirement
 (D) Live stock
(E) Advance to suppliers
(F) Share forfeiture accounts
32 Following information is extracted from the Statement of Profit and Loss of Crypto 3
Finance Ltd. For the year ended 31st March 2023 and 31st March 2024. Fill in the
missing figures Comparative Statement of Profit and Loss for the years ended 31st
March 2023 and 31st March 2024
Particulars 2022-23 2023-24 Absolute
Percentage
(₹) (₹) Increase/Decrea
Increase/Decr
se
ea se (%)
(₹)
Revenue from 5,00,000 6,00,000 ? ?
Operations
Add other Income 40,000 ? (10000) ?
Total Revenue 5,40,000 ? 90,000 16.67%
Less Employee 40,000 ? 20,000 ?
Benefit Expenses
Profit before tax 5,00,000 ? 70,000 ?

Less Tax (50%) 2,50,000 ? 35,000 ?

Profit after Tax 2,50,000 ? 35,000 ?
33 Opening inventory ₹60, 000, closing inventory ₹1, 00, 000, inventory turnover ratio 8 4
times and selling price 25% above cost. Calculate the gross profit ratio.
OR
From the following details obtained from the financial statements of KX Ltd. for the
year ended 31st March,2017,Calculate Interest Coverage Ratio:
Net profit after tax RS.6, 00,000
RS.40,00,000,12% Debentures of RS.100 each.
Tax Rate 40%
34 (A) From the followings information, calculate Cash flow from Operating Activities 6
Particulars 31.03.2024 (₹) 31.03.2023 (₹)
Surplus (ie., Balance in the Statement of Profit and 71,000 89,000
Loss)
Inventory 12,000 4,000
Trade Receivables 58,000 45,000
Outstanding Expenses 14,600 10,000
Goodwill 57,000 27,000
Cash in hand 9,000 12,00
Additional information:
(i) Income Tax 23,000 was paid during the year.
(ii) Dividend paid during the year was ₹ 36,000.

(B) From the followings information, calculate Cash flow from Investing Activities
Particulars 31.03.2024 (₹) 31.03.2023 (₹)
Plant & Machinery(at Cost) 3,00,000 3,20,000
Accumulated Deprecation 90,000 1,00,000
Additional information:
(i) Depreciation charged on plant and machinery Rs. 36,000.
(ii) A machine having a book value of Rs, 20,000 was sold for Rs. 16,000.

**********************************END OF PAPER********************************************
 KENDRIYA VIDYALAYA SANGATHAN AGRA REGION
PRE- BOARD EXAM-2024-2025
SUBJECT:- ACCOUNTANCY
MARKING SCHEME
PART A
(Accounting for Partnership Firms and Companies)
S.No Question Mark
. s
1 A 1
2 C 1
3 B 1
OR
B
4 A OR D 1
5 A 1
6 C 1
OR
C
7 A 1
8 C 1
OR
D
9 B 1
10 A 1
11 C 1
12 C 1
13 B 1
14 A 1
15 C 1
OR
D
16 B 1
17 Assets realised = ₹ 1,30,000 3
Commission @ 3% = 3,900
Amount payable to other partners = 1,30,000 – 25,800= 1,04,200
5% of amount payable = 5,210
Total Commission = 3,900 + 5,210= ₹ 9,110
 Realisation A/c Dr. 9,110
To Rajan’s Capital Account 9,110
(Being remuneration payable to partner)
18 (i) Share in the subsequent profits attributable to the use of his balance. 3
(₹ 53,850 x 21,900) / ₹1,61,550
= ₹ 7,300
(ii) Interest @ 6% p.a. on the use of his balance = ₹ 53,850 x 4/12 x 6/100 = ₹ 1,077B
should exercise option (i) since the amount payable to him under this option is more
as compared to the amount payable to him under option (ii).
OR

Capital of Firm = 1,40,000+30,000 (Reserve)+10,000(P/L) = ₹1,60,000

Normal Profit = 1,60,000 x 12/100 = ₹19,200
Average Profit = ₹50,000
Super Profit = Average Profit-Normal Profit = 50,000-19,200 = ₹30,800
Goodwill = 2 (Super Profit) = 2 (30,800) = ₹61,600
S's share of Goodwill = 1/4 of 61,600= ₹15,400.
19 Plant and Machinery A/c Dr. 90,000 3
Building A/c Dr. 90,000
Sundry debtors A/c Dr. 30,000
Stock A/c Dr. 50,000
Goodwill A/c Dr. 10,000
To Sundry Creditors A/c 20,000
To O Ltd. 2,50,000

O Ltd. Dr. 2,50,000

To Bank draft 30,000
To Equity share capital A/c 2,00,000
To Sec. Premium reserve A/c 20,000

No. of Equity share issue = 2,20,000/11 = 20,000

OR
Share Capital A/c Dr. 14,400
Securities Premium Reserve A/c Dr. 3,600
To Share Forfeiture A/c 9,000
To Share Allotment A/c 9,000
Bank A/c Dr. 12,800
 Share Forfeiture A/c Dr. 3,200
To Share Capital A/c 16,000
Share Forfeiture A/c Dr. 4,800
To Capital Reserve A/c 4,800
20 (I) Workmen Compensation Reserve A/c Dr. 63,000 3
To Provision for Workmen Compensation Claim A/c 18,000
To X’s Capital A/c 20,000
To Y’s Capital A/c 15,000
To Z’s Capital A/c 10,000

(II) Investment Fluctuation Reserve A/c Dr. 18,000

To Investment A/c 9,000
To X’s Capital A/c 4,000
To Y’s Capital A/c 3,000
To Z’s Capital A/c 2,000

(III) Investment Fluctuation Reserve A/c Dr. 18,000

Revaluation A/c Dr. 9,000
To Investment A/c 27,000

21 Share Capital A/c Dr. 10,000 4

To Share Forfeiture A/c 7,000
To Share final call A/c 3,000
Bank A/c Dr. 6,000
Share Forfeiture A/c Dr. 4,000
To Share Capital A/c 10,000
Share Forfeiture A/c Dr. 3,000
To Capital Reserve A/c 3,000

No of share forfeited = 3,000 / (7-4) =1,000 Share

22 Journal 4
Date Particulars Debit Credit
01.04.2023 X's Capital A/c Dr 7,80,000
To X's Executors A/c 7,80,000
(Being balance in capital transferred to
executors account)
01.04.2023 X's Executors A/c Dr 1,80,000
To Banks A/c 1,80,000
(Being payment made to the executor)
30.06.2023 Interest A/c Dr 12,000
To X's Executor's A/c 12,000
(Being Interest due)
30.06.2023 X's Executors A/c Dr 1,62,000
To Banks A/c 1,62,000
(Being payment made to the executor)
23 Bank a/c Dr. 1,00,000 6
To Share Application A/c 1,00,000

Share Application A/c Dr. 1,00,000

To Share capital A/c 60,000
To Bank A/c 20,000
To Share Allotment A/c
20,000

Share Allotment A/c Dr. 1,50,000

To Share capital A/c 90,000
To Sec. Premium A/c 60,000

Bank a/c Dr. 1,26,850

To Share Allotment A/c 1,26,850

Share First call A/c Dr. 90,000

To Share capital A/c 90,000

Bank a/c Dr. 87,750

To Share First call 87,750
Share Capital A/c Dr. 6,000
Sec. Premium A/c Dr 1,500
To Share Forfeiture A/c 2,100
To Share Allotment A/c 3.150
To Share first call A/c 2,250
Share Final call A/c Dr. 58,500
To Share capital A/c 58,500
Bank a/c Dr. 58,500
To Share Final call A/c 58,500
Bank A/c Dr. 9,375
To Share Capital A/c 7,500
To Sec. Premium A/c 1,875
Share Forfeiture A/c Dr. 2,100
To Capital Reserve A/c 2,100
OR
(A) Bank A/c Dr. 73,500
To Debenture Application & Allotment A/c 73,500

Debenture Application & Allotment A/c Dr. 73,500

Loss on issue of debenture A/c Dr. 7,000
To 12% Debenture A/c 70,000
To Premium on issue of Debentures A/c 3,500
To Premium on Redemption of Debentures A/c 7,000

(B) Bank A/c Dr. 45,000

To Debenture Application & Allotment A/c 45,000

Debenture Application & Allotment A/c Dr. 45,000

Loss on issue of debenture A/c Dr. 12,500
To 12% Debenture A/c 50,000
To Premium on Redemption of Debentures A/c 7,500
(C) Balance Sheet of Y Ltd.
as at ……………
Particulars Note No. (₹)
 I. EQUITY AND LIABILITIES
Non-Current Liabilities
Long-term Borrowings 1 12,00,000

Notes to Accounts
1. Long-term Borrowings (₹)
Loan from State Bank of India
(Secured by issue of 15,000; 12% Debentures of ₹ 100 each 12,00,000
as collateral security)
24 Revaluation Account 6
Particulars (₹) Particulars (₹)
To Provision for Doubtful Debts A/c 1,000 By Creditors A/c 6,000
To Stock A/c 1,800
To Furniture A/c 1,500
To Outstanding book for repairs A/c 1,100
To Profit on Revaluation trans. to
A’s Capital A/c 300
B’s Capital A/c 200
C’s Capital A/c 100 600
6,000 6,000

Partners’ Capital A/c

Particulars A(₹) B (₹) C (₹) Particulars A (₹) B (₹) C (₹)
To Goodwill 5000 3,333 1667 By balance b/d 40000 40000 30000
A/c By Gen Res. 6000 4000 2000
To B’s Capital 2200 - 5133 By Revaluation 300 200 100
A/c A/c
To Balance c/d 39100 48200 25300 By A’s Capital ----- 2200 -----
A/c
By C’s Capital ----- 5133 ------
A/c
46300 51533 32100 46300 51533 32100
To Cash A/c - 48200 - By balance b/d 39100 48200 25300
To Balance c/d 67560 - 45040 By Cash A/c 28460 - 19740
67560 48200 45040 67560 48200 45040

OR
 Profit and Loss Appropriation Account
for the year ended 31st March, 2024
Particulars Amt Particulars Amt
To Interest on Capital A/c By Net Profit from P/L A/c 3,00,000
Ram‘s Current A/c 25,000 (3,06,000-6,000)
Shyam’s Current A/c 40,000 By Interest on Drawings A/c
Mohan’s Current A/c 20,000 85,000 Ram‘s Current A/c 1,800
To Ram‘s Current A/c (Salary) 4,000 Shyam’s Current A/c 3.300
To Shyam's Current A/c 30,000 Mohan’s Current A/c 2,400 7,500
(Commission)
To Profit Transferred to
Ram‘s Current A/c 56,550
Shyam’s Current A/c 56,550
Mohan’s Current A/c 75,400 1,88,500
3,07,500 3,07,500

Partners' Current Account

Particulars Ram Shyam Mohan Particulars Ram Shyam Mohan
To Drawings 60000 40000 80000 By Interest 25000 40000 20000
A/c on Capital
To Interest on 1800 3300 2400 A/c
Drawings A/C By Salary A/c 4000 _ -
To Balance c/d 23750 83250 13000 By Com. A/c _ 30000 -
By P/L App. 56550 56550 75400
A/c (Profit)
85550 126550 95400 85550 126550 95400

25 Realization Account 6
Dr Cr
Amt (₹) Amt (₹)
Particulars Particulars
To Sundry Assets A/c By Sundry Liabilities A/c
Stock 70,000 Creditors 3,60,000
Debtors 2,00,000 Mrs X's Loan 60,000
Investments 1,00,000 Investment Fluctuation Fund
Fixed Assets 3,80,000 7,50,000 30,000 4,50,000
To X’s Capital A/c (Mrs. 60,000 By Provision for Doubtful Debts 20,000
X's loan) By X's Capital A/c (Stock)
 To Bank A/c (Creditors) 3,50,000 (70,000 -20%) 56,000
To X's Capital A/c (Exp.) 2,000 By Y's Capital A/c (Investment) 81,000
By Bank A/c (Assets realized)
Debtors 1,97,500
[(50,000-5%) + 1,50,000]
Fixed Assets 2,82,000
Investments 7,500 4,87,000
By Y's Capital A/c (Old
furniture) 4,000
By Loss on Realization
Transferred to
Capital A/c
X 32,000
Y 32,000 64,000
11,62000 11,62000
26 1. B 6
2. C
3. D
4. B
5. C
6. A
PART - B
Analysis of Financial Statements
27 B 1
OR
C
28 B 1
29 C 1
OR
A
30 C 1
31 Main head Sub head 3
(A) Current liabilities other current liabilities
(B) Shareholder’s fund Reserve and surplus
(C) Non current liabilities long term provisions
(D) Property,plant and equp. and intangible assets Property,plant and equp.
(E) Current assets short term loans and advances
 (F) Share holder’s funds subscribed capital
32 Following information is extracted from the Statement of Profit and Loss of Crypto 3
Finance Ltd. For the year ended 31st March 2023 and 31st March 2024. Fill in the
missing figures Comparative Statement of Profit and Loss for the years ended 31st
March 2023 and 31st March 2024
Particulars 2022-23 2023-24 Absolute
Percentage
(₹) (₹) Increase/Decrea
Increase/Decrea
se
se (%)
(₹)
Revenue from 5,00,000 6,00,000 1,00,000 20%
Operations
Add other Income 40,000 30,000 (10000) 25%
Total Revenue 5,40,000 6,30,000 90,000 16.67%
Less Employee 40,000 60,000 20,000 50%
Benefit Expenses
Profit before tax 5,00,000 5,70,000 70,000 14.%

Less Tax (50%) 2,50,000 2,85,000 35,000 14%

Profit after Tax 2,50,000 2,85000 35,000 14%
33 Average Inventory = (Opening Inventory + Closing Inventory) / 2 4

=(60,000+1,00,000) /2 = 80,000
Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory
8 = Cost of Revenue from Operations / 80,000
Cost of Revenue from Operations =80,000×8 = 6,40,000
Selling Price is 25% above cost
∴ Revenue from Operations =6,40,000×125100=8,00,000
Revenue from Operations - Cost of Revenue from Operations
=8,00,000−6,40,000−1,60,000
Gross Profit Ratio =( Gross Profit / Revenue from Operations )×100
=(1,60,000 / 8,00,000) ×100 = 20%

OR
Interest Coverage Ratio= Net Profit before Interest and Tax / Interest on Long Term
Debts
Net Profit after Tax = Rs. 6,00,000 Tax Rate = 40 %
Net Profit before tax = 100/(100- Tax) X Net Profit after tax
= 100/ 60 X 6,00,000 = 10,00,000
Net Profit before Interest & Tax = Net Profit before tax + Interest on Long Term Debts
 = 10,00,000+ 4,80,000 = 14,80,000
Interest Coverage Ratio= Net Profit before Interest and Tax / Interest on Long Term
Debts
= 14,80,000 / 4,80,000 = 3.08 Times
34 (A) Calculation of Cash Flow from Operating Activities 6
Particulars Rs.
Net profit before tax and extraordinary Items (WN) 41,000
Add: Non-Cash and Non Operating items: ----
Operating Profit before Working Capital Changes 41,000
Add: Increase in Current Liabilities:
Outstanding Exp (14,600-10000) 4,600
45,600
Less: Increase in Current Assets:
Inventory 8,000
Trade Receivables 13,000
Cash Flow from Operating Activities before Tax 24,600
Less : Tax Paid 23,000
Cash Flow from Operating Activities after Tax 1,600

Working Note:
Particulars Rs.
Calculation of net profit before Tax and extraordinary Items :
Surplus (i.e., balance in the statement of P/L as on 31-03- 2024) 71,000
Less :Surplus (i.e., balance in the statement of P/L as on 31-03- 2024) 89,000
Net Loss during the year (18,000)
Add: Dividend paid 36,000
Tax paid 23,000 59,000
Net profit before tax and extraordinary Items 41,000

(B) Cash flow from investing activity

Sales of machine Rs. 16,000
Purchase of machine Rs.(66,000)
Net cash used in investing activity Rs.(50,000)

Working note-
(1) Accumulated depreciation = 90,000+36,000-1,00,000
= Rs. 26,000
(2) Plant and Machinery A/c
Particulars (₹) Particulars (₹)
To balance b/d 3,00,000 By Bank A/c (Sale) 16,000
To Bank A/c (Purchase) 66,000 By Accumulated Dep.A/c 26,000
By Loss on sale of 4,000
Machinery A/c
By Balance c/d 3,20,000

3,66,000 3,66,000

**********************************END OF PAPER********************************************