ae SAMPLE PAPERS 3 ‘Time Allowed : 90 Minutes PART -1 Section - A Instructions : ; > From question number Ito 18, attempt any 15 questions. payable to Partner is (A)_ Appropriation of Pro (B) Charge against Profit (C) Credited to Profit & Loss Account (D) Debited to Profit & Loss Appropriation Account ‘Salary payable to partners is of Profit (Charge against Profit, Debited to Profit & Loss Account Credited to Profit & Loss Appropriation Account Milan, Khilan and Silam were partners sharing profits inthe ratio of 2: to share future profits in the ratio of ith effect fom Ist Apri (CBSE. 2020, Chennai) BC error of 43,271, They anh se proses ye hat CD wren ei gl hrs Wa vil bbe New profit sharin ratio? (0) 4:32:11 (B) 24218:14:7:7 (© 7:5:4:2:2 () 36:27:18:9:10 5. A Company purchased building fr €1,80,000 and issued as payment equity shares at 20% premium. Joumal Eaty willbe (A) Building Ave Dr 2,00,000 ‘To Share Capital Ale 1,60,000 To Securities Premium Reserve Alc 40,000 —_ _ SAMPLE PAPER — 3 (B) Share Capital Ale Dr. 2,00,000 To Building Alc 1,80,000 ‘To Securities Premium Reserve A/c 20,000 (© Building 1,80,000 1,50,000ek editing her capital account with €1,200 of £10 each issued ata premium of 40% to Kiran who had having paid 6 (including €2 premium) on application, she to ‘Forfeited ” “applied for 480 shares. Af a snt and first and final call. The amount to ‘be Credit 880 920 600 Ifa shareholder does nt pay his dues on allotment, forthe amount due; there willbe 8 balance in the Share Forfeiture Account lance in the Share Forfeiture Account lance inthe Share Allotment Acvount ‘lance inthe Share Allotment Account Q.14, Moti Ld. forfeited 2,000 shares of €10 each, €8 Called up, for non payment of firs call of &2 per share, Out ofthese, 1500 shares were reissued for €10,500 as €8 paid up. What is the amount to be transfered to Capital Reserve? @®) 70,500 (D) €14,500 Q.15, and B were partners Cjoins them and itis decided that 4's share willbe half of Bs share ‘and C’s share wil be one third of 4s share, find sharing ratio. (Q.16. 4, Band C sharing profits and losses inthe ratio of |, decide to share future profits tnd loses inthe ratio of 4=3:2. Investment Fh 7 Reserve’ appeared in the books 1's Capital Ae wll be Credited by %40,000 21 A panes ih anil of £30.00 and 200,00 respectively. Norma rate of em 15% and endl clei at 2 years purchase of super pois valued at Wat ere the average profi of the fm? (B) 725,000 ©) 60,000 SAMPLE PAPER — 3 Cr. PX 60,000 and Dr. R® 60,000 (D) Dr. P% 60,000 and Cr. R & 60,000 Instructions : (D) Cr. PX 30,000; Cr. QF 30,000; Dr. RX 60,000 a.fee? >> 021, £90,000 Q.21, The pariners ofa firm distributed the profits forte year ended 31 March 2 in equal proportion without providing forthe following adjustment Profits were to be shared in the ratio of 3:21 the adjustment entry ®4,000; Dr. B &4,000; Cr. C 88,000 F an E Q.22. 4, B and Care partners sharing profits inthe ratio of S: 3:2, With effect 2021 they decided to share profits in the ratio of 2: 2 1. Goodwill of the firm Q.23. Ltd. purchased the following asets from ¥ Ltd. Book Value Agreed Value z Ei Plant and Machinery 10,00,000 20% Stock 2,50,000 60% more Payment was made 20% by Cheque and the remaining amount by equity shares of €10 cach, €6 paid. [Number of equity shares issued will be: (A) %2,00,000 (B) © 96,000 (© 21,20,000 (D) €1,60,000 (Q.24, Gupta Lid, forfeited 4,000 shares of €10 each for non-payment of Final Call of 3 per share, Out ofthese, 3,000 shares were re-issued as fully paid up in such a way that 29,000 Were transferred to capital reserve, Shares were reissued for... (A) © 4 pershare (B) 6 per share (D) ©3 per share (Q.25, X Ltd forfeited 1,000 shares of 810 each, issued at 30% premium (to be paid atthe time ‘of allotment) for non-payment of first call of €2 per share. The second and final call of 23, ‘has not yet been called. Out ofthese, 600 shares were re-issued as &7 paid up for 7 per share, Amount ransferred to Capital Reserve Account willbe (a) 21.200 i Ya 3s weeny est09, © e430 SAMPLE PAPER — 3 Q.26. 4, B and C were partner January, 2021 they deci valued at €3,00,000 and Ger do not want serve appeared. te. In Adjustment entryup for non-payment of per share lpi 0.30, Lud invited applications for issuing 2,0,000 shares of €100 each ata premium of €20 per share. The amount was payable as follows (On Application £30, (including premium) Q.34. Given below are two statements, (n Allotment 350 Reason () ‘On First and Final Call €40 Assertion (A) cations were received fr 3,0,000 shares and pro-rata allosment was made to all the ‘A firm has a right to keep asses in its own Ae adel Ami pone call fom Tina who had applied for 2,400 shares were forfeited os Amount Credited to Share Forfeited Acc are joint propety ofall partners. antion Fon above two statements, which ofthe following is correct? (©) £40,000 ©) 716,000 are comect comect reason of (A) Q.31. ZL. invited applications for issuing 40,000 equity shares of £100 each at a premium of a incor ere 225 per shar. The amount was payable as follows mn of (A. (On Application £20 per share On Allotment £30 per share and (R) are wrong, Teale eo) cap he ae ate two statements, one labelled as Assertion (A) and the other labelled as ‘OnSecond and Final Call: Balance Amount Gayati, a shareholder holding 200 shares, dd not pay the fist and second and final cal ander shares were forfeited after the second and final call. ‘Any change in the existing 3 of partnership results in reconstitution ofa fim. Arrears Account willbe Credited by : Reason (R) cs0 (B) %8,200 Reconstitution ofa frm may happen in case of admission or retirement ofa partner. (© ash (D) €7,000 Inthe context ofthe above two statements, which of the following i correct? (Q.22. Given below are two statements, one labelled as Assertion (A) andthe other labelled as Reason (R) ‘Assertion (A) ‘Shares ofa private company are non-transferable. Reason (R) (D) Both (A) and (R) are wrong. ‘Preparation of articles is necessary fora private company. Q.36. Given below are two statements, one labelled as Assertion (A) and the other labelled as {Inthe context of the above two statements, which ofthe following is coreet? ay Codes : Assertion (A) Sharing of profits ial feature ofa partnership Ifa partners deprived of his right a Ae) is the correct reason of (A). (A) and (R) are correct but (R) is not the correct reason of (A). (©) Only @)iscomect. . ies. (D) Both (A) and (R) are wrong. @ Tt is essential that all partners must share losses also. the cannot be called a partner.(A) Both (A) and (R) are correct and (R) isthe correct reason of (A). (B) Both (A) and (R) are corect but (R) isnot the corect reason of (A). (©) Only (A) is comect. (D) Both (A) and (R) are wrong. PART -1 Section -C Instructions = > From question number 37 41 attempt any 4 questions. Q.37. Surys Vanaspati issued prospectus inviting application for 42,500 equity shares of €100 each payable as £10 on application, €20 on allotment. £30 on first call and balance on second and final call. Applications were received for %40,000 shares. Suresh to whom 1,600 shares were allotted failed to pay final call money and these shares were forfeited. Of the forfeited shares, 600 shares were reissued to Mahesh, credited as fully paid for 895 per share. ‘Subscribed and Fully Paid Capital will be = (a) €39,00,000 (B) 740,00,000 (©) 39,60,000 (D) 40,60,000 Q..38. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A) ‘Securities Premium Reserve is apart of Reserve and Surplus of the Company. Reason (R) ‘Securities Premium Reserve is shown under the head ‘Shareholders Funds’ in 2 (Company's Balance Sheet. In the context of the above two statements, which ofthe following is correct? Codes: ay ‘Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) Both (A) and (R) ae tue and (R) isthe comet explanation of (A). (©) Both (A) and (R) are false. (D) (A)is false, but (R) is true. Case Based MCQ ‘and O were partners ina fm sharing profits inthe ratio of 4:3. On Ist April, 2021 they mission. the Balance Shes oP una Reeve Of P and O shoved « Genel 2 Advertisement Suspense Account of € 140.000. —— Te fllowing was aged upon on fv anon {0 Res share of good is agreed at £70.00 a which esto bing half in cash n2et 30,000 and Dr. R's Capital Ale 80,000 and Q's Capital A/c by 260,000 ®40,000 and Q's Capital A/c by 21,00,000 £70,000; 0s Capital A’ by 35,000 and R's Capital Alc by (D) Dr. R's Capital A/c by €35,000 PART - Il Section - A Analysis of Financial Statements Instructions : > From question number 420 48, attempt any 5 questions Q.42. “Forfeited Shares Account” appears in the Balance Sheet of the company under the subhead : (A) Reserves and Surplus (©) Share Capital (B) Long-term Provisions (D) Other Current Liabilities (CBSE. 2020, Kolkaxay ‘mised as «new parner for 1th share in the profits ofthe firm, On the date of R'sQ.43, Match the following Debt Equity Ratio (Operating Ratio Working Capital Turmover Ratio 2.5. Thereafter, it ,000 to its creditors and its current ‘Assets of a company are %5,00,000 (0,000 from its debtors and made payment of om me eset Ea as (ii) Capital Reserve Deere Rederpion Reserve Capi Redetion Reserve Deen Redemption Reserve pial Redemption Resewe Series Premium Reserve Secuties Premium Reserve pital Redmon Reserve (@)] Current Assets (®)| Share Capital (©)| Current Liabilities (@)| Reserve and Surplus Reason (R) the correct explanation of (A), orrect explanation of (A). @) but (R) is tre, Q-48. Given below are two statements, one labelled as Assertion as pee (A) and the other labelled Assertion (A) In Vertical analysis only the figures of one year are analysed. Reason (R) {In Horizontal analysis the figures of two or more years are analysed. In the context of the above two statements, which ofthe following is corect? (D) (A)is false, but (R) is tru. PART - I Section -B Instructions > From question number 4915, atemptany 6 questions 49. Credit Revenue ftom Operstons €9,0,000; Trade Receivables Turnover Ratio 6 times; Closing Trade Receivables were 1.5 times than that i the beginning. Closing. Trade Receivables will be (A) 120,000 (8) £60,000 (©) €1,80,000 (©) £90,000{Q. 50, On the basis of following data, a Company's Gross Profit Ratio willbe: [Net Profit %80,000; Wages 10,000; Office Expenses £30,000; Selling Expenses £20,000; Total Revenue from Operations €5,00,000. (A) 28% B) 26% © 4% @) 6% Q.51. A firm has Current Ratio of 3.6 : | and Quick Ratio of 2.4 : 1. Assuming inventory at £72,000 what will be the amount of current assets? (a) 216,000 (B) T1,44,000 (©) © 24,000 (D) © 36,000 (A) 80% igs © 6% neers Long-term Debts willbe (A) © 9,60,000 (B) £60,00,000 (©) %65,00,000 (D) %62,50,000 Q.S4. If Current Assets are €12,00,000; Working Capital is €7,20,000; Inventories are £83,60,000, Liquid Ratio will be: Q. 55. Given below are two statements, one label SAMPLE PAPER — 5 a led as Assertion (A) and the other labeled as Assertion (A) Interest Coverage Ratio isa profitability ratio Reason (R) Interest Coverage Ratio isan activity ratio, als ‘context of the above two statements, which of the following is corect? the correct reason of (A) ot the correct reason of (A). (D) Both (A) and (R) are wrong,SOLUTIONS TO samt bai 1 a = 01,20,000 565 «7p = 14500 [ADIUSTMENT TABLE 4 sacrifice of Gain aiieiag ee Since A has Sacrificed, he wi since Bas Gained, be wil be Debit an, Ans. (C) De. P 30,000; Dr Q €30,000; Cr. R £60,000 2. Ams. (D) 1,60,000 Hint: i Mint: ‘TABLE SHOWING ADJUSTMENT tert stresses: 2880-15999 24, Ans, (B) &6 per share Hint: 21, Ans. (D) Cr. %6,000; Dr. B €4,000; Dr. C €2,000 Hint: ‘TABLE SHOWING ADJUSTMENT 22, Ans. tan ©) Aby £12,000; De. 8 by 212,000 ‘New Ratio —2:2:1= = 118,000 (Cr) = 6,000 Dr) = £12,000 Dr) 1, Ans. (C) £15,000 Mint: “Amount not paid on First C “Amount not paid on Second & F 22, Ans. (B) a 33, Ans. (B) 26,400 3M, Ans. (A) 38. Ans. (A) 36, Ans. (©) 37. Ans.(C) Subscribed Capital Subscribed and Fully Paid Capital 439,000 Equity Shares of €100 each 3san00 29, Aad : Forfeited Shares (1,000 shares @®60 each) eno 39,60000 A's Share of Goodwill = 21,20,000: ‘B's Share of Goodwill = €1,20,000SOLUTIONS TO amor SAMPLE pape ae : “AERA a ital Ale by €1,60,000 and Q’s Capital A/c by €1,20,009 a — ae oe oP eerie od pres in old pri sharing rat, operating Ratio 41. Ans (A) Dr. P's Capital Ale by €80,000 and Q's Capital A/c by €60,000 sg am (B) 260.0000 ee fi Hint: Analysis of Financial Statements 42, Ans. (©) Share Capital 8. a 25 Long term Debs sh, Ans. (C)1.75:1 Hint: Receipt of €2,00,000 wil not affect the Curent Ratio. But payment to Creditors wil Taree Ratio the Curent Aves aswell as Curent Liabilities. Hence, re $4000 — 00,000. 40,000. Liguid Assets Curent Ratio = og goa = 10,000 ~1,0,000 ~ 45. Ans.) Curent 46, Ans; b Ga iJe (ie ta guid Ratio 48, Ans. (A) 4. 58. Ans.(D) 50, si. ‘Current Ratio is 3.6 and Quick Ratio is 24. Difference between Current Ratio and Quick Ratio i inventory. Therefore, inventory is36—2.4= 1.2. laventoryis 1.2, Current Assets faventory is, (Curent Assets lnventory is 72,000, Current Assets 000 = 22,16,000 ‘52, Ams. (A) 80% Hint ‘Operating Ratio ~ 28 of Rerene from Operations + Operating Expenses, te Revenue from Operations Revenue fom Operations = £150,000 + £10,00,000 = €25,00,000 ‘Cost of Revenue from Operations = Revenue from Operations ~ Gross Profit = 25,00,000 — 40% of 25,00,000 Operating Expenses = Employee Benefit Expense = $3,00,000 + %2,00,000 = 25, ing and Distribution Expete+