KENDRIYA VIDYALAYA SANGATAHAN, MUMBAI REGION

FIRST PRE BOARD – 2022-23

SUBJECT: ACCOUNTANCY(055)
Marking Scheme
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1.
(d). C’s Current A/c Dr 20.000
To A’s Capital A/c 15.000
To B’s Capital A/c 5.000
(1)
2. (c) A is true but R is false. (1)

3. (a) Rs 2,000 (1)

OR
(d) Non-Redeemable Debentures

4. (b) Rs. 1,000 (1)

OR
(c) 10% p.a.

5. (b) Rs 20,000 (1)

6. (a) 1,50,000 (1)

OR
(a) 10%

7. (b). 1,200 Shares

(1)

8. (c) Nil (1)

OR
(c) Rs. 28,800

9. (a) Shown on Liability side of the Balance Sheet Rs. 1,50,000 (1)

10. (a) Credited to Partners Capital A/c Rs. 40,000 (1)

11. (c) Rs. 48,000 (1)

12. (b) Rs 50,000 (1)
13. (d) Rs.3,00,000 (1)
14. (c) A= Rs.11,600, B= Rs.10,500 and C= Rs.2,700 (1)
OR
(b). Dr. A Rs. 1,200; Cr. B Rs. 800 and Cr. C Rs. 400

15. (b) Providing for Premium payable on Redemption of Debentures. (1)

16. (b) Loss Rs. 27,000 (1)
17.
Date Particulars LF Dr Amt Cr Amt
2022 Profit and Loss Suspense A/c Dr. 15,000
July 1 To Udit’s Capital A/c 15,000
(Being Udit’s share of profit allowed
till the death of his death)
Workings: Profit % to sales turnover for the year ended 31st
March,2022=1,20,000/10,00,000 X100= 12%
Estimated sales for the year ended 31st March,2022=Rs. 10,00,000+20% of Rs.
10,00,000 = Rs.
12,00,000
Estimated sales till 01st July,2022 = Rs. 12,00,000 x 3/12 = Rs. 3,00,000
Profit percentage 12-2=10%
Profit amount till 01st July, 2022 = 10% of Rs. 3,00,000 = Rs. 30,000
Udit’s share of profit till 1st July, 2022= 30,000 X 4/8 = Rs. 15,000 (1+2=3 marks)
18. Profit and Loss Appropriation Account
Particulars Amount Particulars Amount
To Net Profit to Capital a/c: By Net Profit b/d 1,40,000
Pratap 70,000 -
1,000 69,000
Ravi 42,000 –
1,000
Shyam 28,000 + 41,000
2,000
30,000

1,40,000 1,40,000
(3)
OR
Analytical Statement of Adjustment
Particulars Kashyap Bharadwaj Vishwamitra Total
Dr Cr Dr Cr Dr Cr
Profit 40,000 40,000 40,000 120,000
wrongly
given
Interest on 10,800 9,600 8,400 (28,800)
capital
Balance 34,200 34,200 22,800 (91,200)
profit
Total 40,000 45,000 40,000 43,800 40,000 31,200 Nil
Net adjt. 5,000 3,800 8,800
Journal Entries
Date Particulars Lf Dr.Amt Cr.Amt
2022 Vishwamitra a/c Dr 8,800
April 1 To Kashyap a/c 5,000
To Bharadwaj a/c 3,800
(being the rectification entry passed or
the errors)
(2+1=3 marks)
19. Capital reserve Rs.40,000
No.of Debentures-6,000
Journal entries-1.5 marks each (1.5 x2 =3 marks)
OR
Date Particulars LF Dr Amt Cr Amt
Plant A/c Dr. 4,00,000
Furniture A/c Dr. 3,00,000
Building A/c Dr. 4,00,000
Inventory A/c Dr. 3,00,000
To Sundry Creditors A/c 1,00,000
To P Ltd. A/c 12,00,000
To Capital Reserve A/c 1,00,000
(Being purchased running business from
P Ltd for Rs.12,00,000)
 P Ltd A/c 12,00,000
To Equity Share Capital A/c 10,00,000
To Securities Premium A/c 2,00,000
(Being purchase consideration paid
Issue of Equity Shares of Rs.10 at
Premium of Rs.2 per share)
(1.5 x 2 =3 marks)
20. Journal entry
C’s Capital Account Dr 26,667
To A’s Capital Account 26,667

Workings:
(i) Calculation of gaining ratio and sacrificing ratio:
A’s gain or sacrifice = 3/6-2/6= 1/6 (sacrifice)
B’s gain or sacrifice = 2/6-2/6 =0
C’s gain or sacrifice = 1/6 – 2/6 = -1/6 (gain)
(ii) Calculation of goodwill:
Year Profit/Loss Adjustments Normal Profit
31st March, 2019 50,000 50,000
31st March, 2020 1,20,000 1,20,000
31st March, 2021 1,80,000 1,80,000
31st March, 2022 (70,000) 50,000-10,000 (30,000)
Total 3,20,000

Goodwill =Average Profits X No. of years Purchase

Average Profits = Total Normal Profits/Number of years
= 3,20,000/4 = 80,000
Goodwill= 80,000 X 2= Rs.1,60,000
A’s share of goodwill= 1,60,000 X 1/6= Rs.26,667
(1 mark for Journal & 2 marks for working)
st
21. In the Books of Vishwas Ltd Balance sheet as at 1 April 2022
Particulars Note no Amt(Rs)
I EQUITY AND LIABILITIES
1) Shareholders fund
a) Share capital 1 6,77,000
Notes to Accounts
1 Share capital
Authorised share capital:
1,00,000 Equity shares of Rs 10 each 10,00,000
Issued share capital:
90,000 Equity shares of Rs 10 each 9,00,000
Subscribed share capital
85,000 shares of Rs 10 each 8,50,000
Subscribed but not fully paid up
84,500 shares of Rs 10 each, Rs 8 called up
6,76,000
Less calls in arrears(1000x2) 6,77,000
(2000)
Add forfeited shares(500x6) 3000
1 mk for Balance sheet , 3 mks for notes – 4 marks
22. Realisation A/c
Particulars Amount Particulars Amount
To Debtors 36,000 By Creditors 30,000
To Inventory 35,000 By Bills Payable 10,000
To Plant & Mach 20,000 By EPF 25,000
To Building 40,000 By Cash(Drs & 49,000
Inventory)
To Goodwill 10,000 By Ajay Capital 10,000
To Ajay Capital 10,000 By Vijay Capital 36,000
To Vijay Capital 24,000 By Loss Transferred
To Cash (EPF) 26,000 Ajay Capital 26,400
To Cash (exp) 3,000 Bijay Capital 17,600
2,04,000 2,04,000
4 marks
23.
Particulars LF Dr(Rs) Cr(Rs)
1. Bank a/c Dr 24,00,000
To Equity share application & allotment a/c 24,00,000
2. Share application & allotment a/c Dr 24,00,000
To share capital a/c 10,00,000
To Securities premium a/c 6,00,000
To Bank a/c 4,00,000
To share first and final call(calls in 4,00,000
advance)
3. Share first and final call a/c Dr 10,00,000
To share capital a/c 10,00,000
4. Bank a/c Dr 594000
Calls in advance a/c Dr 400000
To share first and final call 9,94000
5. Share capital a/c Dr 20,000
14000
To share forfeiture a/c 6000
To Call in arrears a/c
6. Bank a/c Dr 14000
Share forfeiture a/c Dr 6000
To share capital a/c 20,000
7. Share forfeiture a/c Dr 8000
To capital reserve a/c 8000
(0.5+1.5+0.5+1+1+1+0.5= 6 marks)
OR
(a)
1. Share capital a/c Dr 12,000
7,500
To share forfeiture a/c 4,500
To first and final call a/c

2. Bank a/c Dr 5400

Share forfeiture a/c Dr 1800
To share capital a/c 7200
3. Share forfeiture a/c Dr 2700
To capital reserve a/c 2700

Calculation of Forfeited Share Account to be transferred to Capital Reserve:

Forfeited Shares for 1500 shares =
7,500
Forfeited shares for 900 shares = 7,500/1,500 x 900 =
Rs.4,500
Amount utilized towards difference in called up and received
= 7,200-5,400 = Rs.1,800
Therefore amount to be transferred to capital reserve = 4,500 – 1,800 =Rs.2,700

(1x3=3 marks)
(b)
1. Share capital a/c Dr 35,000
25,000
To share forfeiture a/c 10,000
To Call in arrears a/c
2. Bank a/c 20,000
Dr 20.000
To share capital a/c
3. Share forfeiture a/c Dr 10.000
To capital reserve a/c 10,000
(1x3=3 marks) 24.
Revaluation account
Particulars Rs Particulars Rs
To Claim for damages 800 By creditors 500
To Provision for doubtful 250 By Loss transferred to
debts capital accounts-
 B- 330
C-220 550
1050 1050
Capital accounts
Particulars B C D Particulars B C D
P/L a/c 6000 4000 Bal b/d 60,000 40,000
Revaluation 330 220 Cash a/c 30,000
Cash a/c 7500 Premium for 15,000
goodwill a/c
To cash a/c 1170 By cash a/c 24,220
Bal c/d 60,000 60,000 30,000
75,000 64,220 30,000 75,000 64,220 30,000
OR

Revaluation a/c
To Provision 2,000 By Building 20,000
To Machinery 10,000
To Profit transferred 8,000
A 4000
B 2000
C 2000
20,000 20,000

Partners’ capital account

Particular A B C Particular A B C
By Balance 80,000 40,000 40,000
To B’s Cap 12,000 --- 6,000 By Gen Res. 10,000 5,000 5,000
To B’s Loan a/c - 65000 - By A’s cap ….. 12,000 …
To Balance c/d 82,000 41,000 By C’s Cap ….. 6,000 …
By 4,000 2,000 2,000
Revaluation
94,000 65,000 47,000 94,000 65,000 47,000

(2+4=6 marks)

25. Akbar’s Capital A/c

Particulars Amount Particulars Amount
To Drawings 12,000 By Balance b/d 50,000
To Interest on Drawings 600 By Interest on Capital 3,750
To Akbar’s By General Reserve 9,000
Executor’s Ac 85,150 By WCR 3,000
By Akshay Capital 24,000
By P& L Suspense 8,000

97,750 97,750
Akbar’s Executor’s Account

To Bank A/c 85,150 By Akbar Cap A/c 85,150

85,150
85,150
(5+1=6 marks)
26.(a).

a. Bank a/c Dr 55,00,000

To debenture application and allotment a/c 55,00,000
 (Being debenture application received)
b. Debenture application and allotment a/c Dr 55,00,000
Loss on issue of debenture a/c Dr 10,00,000
To 9% debenture a/c 50,00,000
To premium on redemption of debenture a/c 10,00,000
To security premium reserve a/c 5,00,000
(being debenture application transferred to
debenture account)

(b) Loss on issue of Debentures Account

Date Particulars Dr. Amount Date Particulars Cr. Amount
2021 To premium on 10,00,000 2022 By Securities
Oct. 1 redemption of debenture a/c Mar 31 Premium A/C 7,80,000
By Statement of P
&L A/c 2,20,000
10,00,000 10,00,000
(c).
Date Particulars LF Dr Amt Cr Amt
2022 Debenture Interest A/c Dr. 2,25,000
Mar 31 To Debentureholders A/c 2,25,000
2022 Debentureholders A/c Dr. 2,25,000
Mar 31 To Bank 2,25,000
2022 Statement of P &L A/c Dr 2,25,000
Mar 31 To Debenture Interest A/c 2,25,000
(2+2+2 =6 marks)
27 (c) 2 times (1)

OR
(c) Postulates

28.The current ratio will remain the same as there is no change in the current assets.(1)

29. (c) Cash Equivalents (1)

OR
(a) Financing Activity

30. (a) Only D (1)

31.
Item Major headings Sub-head
(i) Loose tools Current Assets Inventories
(ii) Long term Provisions Non – Current Long term Provisions
Liabilities
(iii) Provision for Warranties Non – Current Long term Provisions
Liabilities
(iv) Income received in Current Other Current
advance Liabilities Liabilities
(v) Capital Advances Current Assets Long Term Loan and
Advances
(vi) Advances recoverable in Current Assets Short Term Loan and
cash within the operation Advances
cycle
(0.5 marks for correct main and sub head)

32. Variations of Accounting Practice as Limitation is highlighted in the given

statement
Two Other Limitations (Any two of the following with suitable explanation)
(a) Limitations of Accounting Data
(b) Ignores Price-level Changes
(c) Ignore Qualitative or Non-monetary Aspects
(d) Forecasting (1+2=3 marks)

33. Inventory Turnover Ratio =Cost of revenue from operation

Average Inventory
 6 = 3,00,000

Average Inventory

Therefore, Average Inventory = 3,00,000/6

= Rs. 50,000
Average Inventory = Opening Inventory + Closing Inventory

Let Opening Inventory be Rs. X

Average Inventory = X + X + 15,000

X = 50,000 x 2 – 15,000
2
X = Rs.42,500 = Opening Inventory
Therefore, Closing Inventory = Opening Inventory + 15,000
= 42,500 + 15,000

Opening Inventory = Rs.42,500 & Closing Inventory = Rs.57,500 (4marks)

OR
Return on Investment = EBIT / Capital Employed x 100
= 15,00,000/1,20,00,000 x 100 = 12.5%
Capital Employed = 12% Preference Share Capital + Equity Share Capital + Reserves
and
Surplus + 15% Debentures + 10% Bank Loan = 30,00,000 + 40,00,000 + 10,00,000 +
20,00,000 + 20,00,000 = ₹ 1,20,00,000
EBIT = Profits after Tax + Tax + Interest = 6,00,000 + 4,00,000 + 5,00,000 = ₹ 15,00,000
Net Assets Turnover ratio = Revenue from Operations/Capital Employed
= 3,60,00,000/1,20,00,000 = 3 times (4marks)

34. Cash flow statement (AS-3)

Net profit 1,00,000
Add provision for depreciation 66,000
Provision for tax 50,000
2,16,000
Add non operating expenses and
non cash items-
Goodwill written off 72,000
Loss on sale of machinery 2000
Less non operating income -
Net profit before changes in the
working capital
Add Increase in CL -
Decrease in CA -
Less Decrease in CL(Trade payable) (25000)
Increase in CA - Inventories (8000)
Trade receivable (27000)
Net profit before tax 230,000
Less tax paid (77000)
Cash generated from operating 1,53,000
activities(A)
Sale of Machinery 6000
Purchase of Machinery (294000)
Cash used from Investing (2,88,000)
activities(B)
Issue of shares 1,00,000
Long term borrowings raised 70,000
1,70,000
NET CASH FLOW(A+B+C) 35000
Add opening balance of cash 525000
equivalent(1,50,000+3,75,000)
Closing balance of cash
equivalent(2,40,000+3,20,000) 5,60,000
(4+1+1= 6 mks)
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