MARKING SCHEME: 1

CSSC COMMON EXAMINATION (2022 – 2023)

CLASS – 12
ACCOUNTANCY (055)
MAX MARKS :80

1. B) 2:3 (1 mark)
2. D) Both Assertion(A) and Reason (R) are correct and Reason is the correct explanation of Assertion(A)
(1 mark)
3. A) Share capital account is debited with a called up amount of shares forfeited. (1 mark)
OR
(A)
4. 4. C) To write a goodwill existing in a balance sheet. (1 mark) or (D) (1 mark)
5. B) (1 mark)
6. C) or (C) (1 mark)
7. D) (1 mark)
8. D) OR (B) (1 mark)
9. D) (1 mark)
10. D) (1 mark)
11. C) (1 mark)
12. D) (1 mark)
13. C) (1 mark)
14. D) (1 mark)
15. C) OR (C) (1 mark)
16. D) (1 mark)

17. Tanish current A/c Dr 1,000 (3 marks)

Manish current A/c Dr 4,000
To Harish current A/c 5,000
(OR)
Deficiency= Guaranteed Amount – Rs 38,250(3/10th of Rs1,27,500)
= Rs40000-Rs38,250=Rs1,750 borne by A
Net Profit A=Rs51,000-Rs1,750=Rs49,250
B=Rs1,27,500*3/10=Rs38,250
C=Rs38,250+1,750=Rs40,000
18. Working notes: (3 marks)
Capital contribution
Sahil: Rs60,000 for 6 months = Rs3,60,000
Rs40,000 for 6 months = Rs2,40,000
Total = Rs6,00,000
Sukesh Rs50,000 for 4 months = Rs2,00,000
Rs60,000 for 4 months = Rs2,40,000
Rs40,000 for 4 months = Rs1,60,000
Total = Rs6,00,000 (1 mark)
Mohan Rs50,000 for 7 months = Rs3,50,000
Rs90,000 for 5 months = Rs4,50,000
Total = Rs8,00,000
Therefore, profit sharing ratio=6:6:8 or 3:3:4
Profit and Loss Appropriation
Particulars Rs Particulars Rs
To profit transferred By profit and loss net 45,000
capital accounts profit
Sahil 13,500
Sukesh 13,500
Mohan 18,000

Total 45,000 Total 45,000 (2 mark)

(OR)
JOURNAL
Date Particulars Rs Rs
31-03-2022 Interest on capital A/c Dr 3,000
To John’s capital A/c 1,200
To Robert’s capital A/c 1,800 (1/2 mark)
(interest on capital at 6% is credited
to partners capital A/c)
John’s capital A/c Dr 360
Robert’s capital A/c Dr 360
To interest on drawings A/c 720 (1/2 mark)
(interest on drawings at 8% p.a
charged)
Profit and loss appropriation A/c Dr 3,000
To interest on capital A/c 3,000 (1/2 mark)
(transfer of interest on capital to
profit and loss Appropriation A/c)
Interest on drawings A/c Dr 720
To profit and loss appropriate A/c 720 (1/2 mark)
(transfer of interest on drawings to
profit and loss appropriation A/c
Profit and loss appropriate A/c Dr 17,000
 To John’s capital A/c 6,800
To Robert’s capital A/c 10,200 (1 mark)
(profit transferred to partners A/c in
their profit sharing ratio)

19. (3 marks)
Date Particulars Rs Rs
01-01-2022 Machinery A/c Dr 10,00,000
To Prabhat A/c 10,00,000 (1/2 mark)
(Machinery purchased)
Prabhat A/c Dr 6,75,000
Loss on issue of Debenture A/c Dr 1,50,000
To 7% Debentures A/c 7,50,000
To premium on redemption of 75,000 (1 mark)
Debentures A/c
(7500,7%Debentures of Rs100 each
issued at discount of 10%
redeemable at 10% premium)
01-03-2022 Prabhat A/c Dr 3,25,000
To bank A/c 3,25,000 (1/2 mark)
(check issued to Prabhat)
Statement of profit and loss Dr 1,50,000
To loss on issue of Debentures A/c 1,50,000 (1 mark)
(loss of issue on Debentures written
off)

Working notes:
i) Discount on issue of debentures=Rs75,000
Premium payable on redemption of debentures=Rs75,000
Total loss on issue of debentures=Rs1,50,000
ii) Purchase price of Machinery=Rs10,00,000
Less 7,500, 7% Debentures of Rs100 each at 10% discount=Rs6,75,000
Balance paid by check=Rs32,500
(OR)
Date Particulars Rs Rs
Star world ltd. A/c Dr 11,00,00,000
Discount on issue of Debentures A/c 50,00,000
Dr 5,00,00,000
To share capital A/c 1,50,00,000
To bank A/c 5,00,00,000
To 8% Debentures A/c
(payment was made by issuing
10,00,000 equity shares of Rs50
each, 5,00,000,8%Debentures of
Rs100 each at 10% discount and by
way of check Rs1,50,00,000)
Working notes:
No. of Debentures issued 11,00,00,000
Less shares issued 5,00,00,000
Less checks issued 1,50,00,000 6,50,00,000
Balance 4,50,00,000
Issue price Rs90 per Debenture
No. of Debentures issued 4,50,00,000/90=Rs5,00,000
20. (3 marks)
Date Particulars Rs Rs
Bank A/c Dr 3,45,000
To Guru’s Capital A/c 3,00,000
To premium for goodwill A/c 45,000 (1 1/2mark)
(amount brought in towards capital and
goodwill)
Kavi’s capital A/c Dr 37,500
Premium for goodwill A/c Dr 45,000
To Harish capital A/c 67,500
To Ravi’s capital A/c 15,000 (1 1/2mark)
(new partners share of goodwill
credited to sacrificing partners)

Working notes:
Harish’s sacrifice=3/6-2/7=9/42
Ravi’s sacrifice=2/6-2/7=2/42
Therefore, sacrificing ratio=9:2
Kavi’s gain=1/6-2/7=5/42
Firms’ goodwill=45000*7=Rs315000
21. (4 marks)
Particulars Note Number Current year
Rs.
Equities and liabilities 1 1,14,65,000 (2 mark)
i)shareholders fund
share capital
Notes to Account
Particulars Rs
i) share capital
Authorized capital
20,00,000 equity share of 10 each 2,00,00,000
Issued capital
11,50,000 equity shares of Rs10 each 1,15,00,000
Subscribed capital
Subscribed and fully paid up
11,40,000 equity shares of Rs10 each 1,14,00,000
(50,000 equity shares are issued to promoters for consideration other than cash)
Subscribed but not fully paid up
5000 equity shares of Rs10 each Rs8 paid up 40,000
Shares forfeited A/c 25,000

Total 1,14,65,000
(2 mark)

22. Loss on realisation A/c =Rs81,200 (4 marks)

Parul’s share of loss =Rs40,600
Gaurav’s share of loss=Rs40,600
23. (6 marks)
Date Particulars Rs Rs
Bank A/c Dr 10,03,000
To share application A/c 10,03,000
(application money received on 1 lakh shares at (1/2 mark)
Rs10 per share with full amount on 300 shares)
Equity share application A/c Dr 10,03,000
To share capital A/c 5,00,000
To share Allotment A/c 3,000
To security premium A/c 5,00,000 (1mark)
(application money adjusted)
Equity share allotment A/c Dr 10,00,000
To share capital A/c 5,00,000
To security premium A/c 5,00,000 (1 mark)
(allotment money due on 1 lakh shares)
Bank A/c Dr 9,95,000
To share allotment A/c 9,95,000 (1 mark)
(share allotment money received)
Equity share capital A/c Dr 2000
Security premium A/c Dr 1000
To forfeited shares A/c 1000
To share allotment A/c 2000 (1 mark)
(200 shares were forfeited for non-payment of
allotment money)
Bank A/c Dr 4000
To share capital A/c 2000
To security premium A/c 2000 (1 mark)
(200 shares were reissued for Rs20 per share as
fully paid up)
Forfeited shares A/c Dr 1000
To capital reserve 1000 (1/2mark)
(gain on reissue transferred to capital A/c)

(OR)
Date Particulars Rs Rs
Buildings A/c Dr 60,000
To vendor’s A/c 60,000
(building’s purchased)
Vendor’s A/c Dr 60,000
To share capital A/c 60,000 (1 ½ mark)
 (issued 6000 equity shares of Rs10 each as
purchase consideration)
Bank A/c Dr 16,000
To share application A/c 16,000 (1/2 mark)
(Application money received)
Share application A/c Dr 16,000
To share capital A/c 16,000 (1/2 mark)
(application money transferred)
Share allotment A/c Dr 8,000
To share capital 8,000 (1/2 mark)
(allotment money due on 8000 shares)
Bank A/c Dr 7,250
To share allotment A/c 7,250 (1/2 mark)
(allotment money received on 7250 shares)
Share first call A/c Dr 16000
To share capital A/c 16,000 (1/2 mark)
(first call money due)
Bank A/c Dr 14,500
To share first call A/c 14,500 (1/2 mark)
(first call money on 7250 shares received)
Equity share capital A/c Dr 3,750
To forfeited shares A/c 1500
To share allotment A/c 750
To share call A/c 1,500 (1 ½ mark)
(750 shares were forfeited)

24. Revaluation loss= Rs1000 (2 mark) (6 marks)

Share of Sonu=Rs750, Share of Monu=Rs250
Capital A/c balance (4 mark)
Sonu=Rs39.450
Monu=Rs30.150
Working notes:
Excess reserve=Investment fluctuation reserve-fall in value of investment =Rs4.100-Rs2500=Rs1.600
Calculation of Gopal’s Capital
Capital of Sony and Monu after all adjustments (for 3/4th share) =Rs39.450+Rs30.150=Rs69.600
Gopal’s share of capital=Rs69.600*4/3*1/4=Rs23.200
(OR)
Revaluation Loss=7000; Share of Aruna=Rs2000; Share of Taruna=Rs3000;
Share of Varuna=Rs2000 (2 mark)
Capital A/c balance: (4 mark)
Karuna=Rs4, 00.000; Varuna=Rs3,00,000
Aruna’s loan A/c=Rs1, 88,000
Amount to be brought in by Karuna=Rs1,23,000; Varuna=Rs1,22,000
 Calculation of proportionate capital:
Total capital of the firm before Aruna’s retirement=Rs7,00,000
Karuna’s capital in new firm=Rs7,00,000*4/7=Rs4,00,000
Varuna’s Capital in the new firm=Rs7,00,000*3/7=Rs3,00,000

25. Balance transferred to Sudha’s executor’s A/c=Rs87,350 (6 marks)

Working notes
i) Calculation of Sudha’s share of goodwill
Average profit for last three years=Rs42,000
Value of firms goodwill=Rs42000*2=Rs84,000
Sudha’s share of goodwill=Rs84000*3/10=Rs25,200
Contributed by Raheem and Karthik in their gaining ratio 3:4
Raheem’s contribution=Rs25200*3/7=Rs10,800
Karthik’s contribution=Rs25200*4/7=Rs14,400
ii) Calculation of Sudha’s share of profit
Ratio of profit=Profit of last year/sales of last year*100 =1,00,000/4,00,000*100=25%
Profit from 1st April to 30th June 2022=Rs100000*25/100=Rs37,500
Sudha’s share of profit=Rs37,500*3/10=Rs11,250

26. (6 marks)
Date Particulars Rs Rs
01-07-21 Bank A/c Dr 1,00,000
To Debenture application and allotment A/c 1,00,000
(application money received on
10,000,8%debentures of Rs100 each)

Debenture application and allotment A/c Dr 10,000

Loss on issue of Debentures A/c Dr 20,000
To 8% Debentures A/c 10,000
To premium of redemption of Debentures 20,000
A/c
(10,000,8%Debentures of Rs100 each
redeemable at Rs1 or 2)
31-03-22 Securities premium A/c Dr 20,000
To loss on issue of Debentures written off 20,000 (3 mark)
Premium on redemption of Debentures A/c (2 mark)
Date Particulars Rs Date Particulars Rs
31-03-22 To balance c/d 20,000 01-07-21 By loss of issue on 20,000
Debentures A/c
Debentures issued on short term borrowings because they are to be redeemed within 12 months from the
date of balance sheet (1 mark)
 Part-B
27. D) (1 mark)
28. C) (1 mark)
29. C) (1 mark)
30. D) (1 mark)
31. (1/2 x 6) (3 marks)
Items Major heads Sub-Heads
Marketable Securities Current assets Current Investments
Stores and Spares Current assets Inventories
Interest Accrued and due on Current liabilities Other Current Liabilities
Debentures
Debentures payable within the Current liabilities Short term Borrowings
period of 12 months or Operating
Cycle period from the date of the
Balance Sheet
Debentures repayable after three Non-Current Liabilities Long term Borrowings
years
Debenture Redemption Reserve Shareholders’ funds Reserves and Surplus

32. i) Average inventory=Rs1,50,000 (3 marks)

ii)Cost of revenue from operation=Rs9,00,000 (1 mark)
iii)Revenue from operation=Rs12,00,000 (1 mark)
iv)Gross profit=Rs3,00,000
v)Gross profit ratio=25% (1 mark)

33. Debt to capital employed ratio = Rs2,00,000/Rs8,00,000=0.25*1 (4 marks)

Long term Debt= Rs1,60,000+Rs40,000=Rs2,00,000
OR
Net assets turnover ratio=Rs1,600,000/Rs5,00,000=3.2times
Non-current assets=Rs1,80,000+Rs20,000+Rs40,000=Rs2,40,000
Net Assets=Rs2,40,000+RS2,60,000=Rs5,00,000
Revenue from operation=RS12,80,000*125/100=Rs16,00,000

34. Calculation of net profit before tax=Rs1,90,000 (6 marks)

Operating profit before working capital changes=Rs4,27,000
Cash flow from operating activities=Rs1,47,000 (2 mark)
Cash used in investing activities (Rs8,50,000) (2 mark)
Cash flow from financing activities=Rs7,33,000 (2 mark)
Net increase in cash and cash equivalence=Rs30,000
Cash and cash equivalence at the end of the year=Rs90,000
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