SAMPLE QUESTION PAPER - 1 SUBJECT- ACCOUNTANCY (055) CLASS Xil (2023-24) ( ( ( ( ( ( Time Allowed: 3 hours Maximum 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 - Ais compulsory for all candidates. ( 4, Part - B has two options i.e. (i) Analysis of Financial Statements and (i { Computerised Accounting. Students must attempt only one of the given options. I 5. Question 1 to 16 and 27 to 30 carries 1 mark each. 6. Questions 17 to 20, 31and 32 carries 3 marks each. ! 7, Questions from 21 ,22 and 33 carries 4 marks each l 8. Questions from 23 to 26 and 34 carries 6 marks each ( 9, There is no overall choice. However, an internal choice has been provided in 7 ( questions of ane 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 a i] 1. Aand Bare partners sharing profits in the ratio of 3 : 2. They decided to admit Casa [1] || ( cl ( ( ( l ( ( ( ( ( ( ( ( ( ( l new partner and profit sharing ratio become 3 : 2 : 3. C brought 45000 as his capital. c Partners capitals are fixed, their capitals are : A 45000 and 8 10000. C's share of goodwill will be: a) 10,000 b) 28,125 <) 7,500 d} 20,000 2. Assertion (A): Personal assets of the partners can be used to meet the firm's (1) liability, if firm's assets are insufficient to meet its liabilities. Reason (R): As per Law, a partnership firm is not a separate legal entity from its partners. a) Both A and R are true and Ris b) Both A and R are true but Ris the correct explanation of A. not the correct explanation of A. c) Ais true but R is false. d) Ais false but Ris true. 3. A Building was purchased for 8 9,00,000 and payment was made in 100 shares at [1] 20% premium. Securities Premium A/c will be Panata) Credited by % 1,80,000 ¢) Credited by % 1,50,000 a) 16,000 ¢) 18,000 a) Cr. A by % 6,000; Dr. B by % 2,000; Dr. C by 8 4,000 ¢) Cr. A by % 6,000; Dr. B by % 4,000; » Dr. C by 2,000 a) Interest in capital ¢) Partner's Commission 5. Match the followi b) Debited by % 150,000 d} Debited by % 1,80,000 OR b) 2,000 d) 16,00,000 4. A,Band C were partners sharing profits and losses in the ratio of 7: 3:2 from 1st January 2023 they decided to share profits and losses in the ratio of 8: 4: 3. Goodwill is valued for 1,20,000. In Adjustment entry for goodwill: b) Dr. A by % 6,000; Cr. B by = 4,000; Cr. C by % 2,000 d) Dr. A by 8 6,000; Cr. B by % 2,000; Cr. C by 8 4000 OR Which of the following will not be recorded in the Current Account? b) Interest on drawings d) Additional capital brought by a partner {a) Loan given by partner to the firm [2 an extension of Profit and Loss Account, (b) Loan given by the firm to a partner ility (c) given by the firm to a partner (iii) When there is no partnership deed (d) Profit and Loss Appropriation Account tiv) Asset a) (a) - (i), (b) - (ii), (c) - (iv), (d) - () ) fa) - (i), (B) - (i), (c)- (ii, (4) - iv) b) (a) - (i), (b) - (iv), (c)- Citi), (2) - (@) 4) (a) - (i), (b) - (iv), (€) - (i), (a) - LMN Limited acquired assets of Rs.18,00,000 and took over creditors of %2,00,000 from Vidhi Enterprises, LMN Limited issued 8% Debenture of Rs.100 each at par as purchase consideration. Find out how many debentures issued by the company? 1 [al Lt6. Debentures for a longer period which are secured by either fixed charge or floating [1] charge on assets they are called a) Secured Debentures b) Unsecured Debentures I c) Un-registered Debentures d) Bearer Debentures | OR On 1 April 2021, Narmada Ltd, issued 5,000, 8% Debentures of ¥ 100 each at a I premium of 10%. The total amount of interest on debentures for the year ending 315¢ | March, 2022 will be: | a) % 25,000 b) % 40,000 ¢)% 20,000 d) 250,000 7. Assertion (A): Shares cannot be allotted unless minimum subscription is received. [1] | Reason (R): SEBI has prescribed that a company issuing shares to public cannot allot shares unless it receives subscription of 90% of the shares issued, al a) Both A and Rare true and Ris b) Both A and Rare true but Ris >» the correct explanation of A. not the correct explanation of A. ( 1 | c) Ais true but Ris false. d) Ais false but Ris true. li 8. Pappu, Ram and Harish were partners sharing profits equally. Pappu died on 31st [1] | July, 2023. Journal entry passed for Pappu's share of loss for the intervening period | will be: Pappu's Capital A/c |Dr b)|Pappu's Capital A/c [To Ram's Capital A/c’ To Profit and Loss A/c| & ¢) [Profit & Loss Suspense A/c|Dr. 4) | Pappu's Capital A/c Dr. {To Pappu's Capital A/c To Profit & Loss Suspense Alc oR Interest on capital is calculated on a) Closing capital b) Profit c) Both Closing capital and Profit d) Opening capital Page 3Question No, 9 to 10 are based on the given text. Read the text carefully and answer [2] the questions: Mohit, Dev and Sumit are equal partners with capitals of € 5,00,000, € 3,00,000 and & 2,00,000 respectively. Mohit withdrew & 60,000 in the beginning of each quarter for the year ended 31st March, 2020. Dev withdrew % 60,000 at the end of each quarter for the year ended 31st March, 2020. Sumit withdrew % 90,000 in the middle of each quarter for the year ended 31st March, 2020, Interest on drawings is charged @ 10% p.a. 9, What is the total amount of drawings of all the partners? a) % 9,00,000 b} %8,60,000 ¢)9,20,000 4} % 8,40,000 10, What is the average period of Dev’s drawings? a) 6 months b} 12 months ¢)7.5 months 4) 4.5 months 11, _ Ramesh, piya and Mohit are partners sharing profits in the ratio of 2:2:1. Mohit is [1] guaranteed that his share of profit will not be less than 3 50,000. Any deficiency will be borne by Ramesh and Piya equally. The profit of the firm for the year ending was % 2,00,000, What will be the share of Piya? IL ‘ a) 70,000 b) 85,000 oy ¢) 75,000 d) 80,000 12. When will following entry takes place during the issue of shares: 11) Bank A/c... Dr. To Share Application A/c a) Allotment money is received b) When application money is received c) Application money is adjusted d) Application money is refunded 13, Ankit Ltd, Forfeited 1000 equity share of = 100 each issued at a premium of 20% for [1] non payment of final call of 8 30 per share. State the maximum amount of discount which can be offered at the time of reissue: a) 70,000 b) 1,30,000 <) 1,00,000 d} 30,000 — ee14, Aand B started a new partnership business on 1st October 2020. They have decided. [1] to share the profits losses in the ratio of 1 : 2. They have contributed capital of € 1,00,000 and & 1,60,000 respectively. Calculate the amount of profit or loss to be distributed among the partner, if partnership deed provides interest on capital @ 10% p.a. and profit for the year ending 31st March 2021 is € 52,000. a) B= 13000 A = 26000 b) B = 34667 A= 17333 ¢) B = 26000 A = 13000 d) B = 17333 A = 34667 | 45, In the absence of Partnership Deed, a new partner can be admitted only with the: [1] a) New accounting period b) Permission of court c) Consent of all existing partners d) Premium for goodwill OR In case of admission of a partner, the entry for unrecorded investments will be: | a) None of these b) Debit Partners Capital A/cs and Credit Investments A/c ¢) Debit Investment A/cand Credit —_d) Debit Revaluation A/c and Credit Revaluation A/c Investment A/c ‘One Creditor worth 24,500 took over stock valued at Rs.5,200 in full satisfaction of [11] his claim, a) No Entry is required b) Creditors |. |a.500 A/c [To Bank aye | 4,500 ©} |creditors 4) | creditor Ale Dr. 4,500 ale pr. [5,400 To To Assets Realisation 4,500 Ac | a Ale 17, D, Eand Fare sharing profits and losses in the ratio of 5: 3:2. They decide to share [3] profits and losses in the ratio of 2 : 3: S with effect from Ist April, 2019. They also decide to record the effect of the following without affecting their book values, by passing an adjustment entry: Page 5Book Values (2) General Reserve 1,50,000 (Contingency Reserve [25,000 Profit and Loss A/c (Cr.) 75,000 Advertisement Suspense A/c (Dr.) 1,00,000 Ram, Ravi and Raja are partners in a firm. Their profit-sharing ratio is 5:3 : 2. Raja is guaranteed a minimum profit of 10,000 every year, Any deficiency arising is to be met by Ravi. Profits for the two years ended 31 March, 2023 and 2024 were % 40,000 and % 60,000 respectively. Prepare Profit & Loss Appropriation Account for the two years. OR P, Qand Rare partners sharing profits in the ratio of 2 : 1: 1. Their capitals as on 15¢ April, 2022 were % 50,000, % 30,000 and % 20.000 respectively. At the end of the year ending 315 March, 202: to P - 2500 per month and R - < 1,000 per month were not adjusted from the profits. Show adjusting entry to be made in the next year for the above adjustments. X Ltd. purchased assets of %8,00,000 and liabilities of %1,00,000 from Y Ltd. on 1.4.2018. %2,00,000 were paid immediately and the balance was paid by issue of %4,75,000, 10% debentures in X Ltd. Give journal entries in the books af X Ltd. OR (3) was found out that interest on capitals @ 12% p.a,, salaries [3] S Ltd. forfeited 500 Equity Shares of € 100 each for non-payment of first call of 30 per share. The final call of § 10 per share was not yet made. Out of these, 60% shares were reissued for % 39,000 fully paid. Journalise the forfeiture and reissue of shares. M/s Aradhya having the assets of Rs 10,00,000 and Liabilities of Rs 4,20,000. The firm earns the annual profit of Rs. 90,000, The rate of interest expected from the capital having regard to the risk involved is 15%, Calculate the amount of Goodwill by Capitalisation of Super Profit method. Vikash Ltd. issued 50,000 shares of € 10 each at a premium of % 1 per share payable as follows: 3. on Application %40n Allotment (including premium) %20n 1% call Balance when required Applications were received for 46,000 shares and all of these were accepted, Directors did not make the final call. A shareholder holding 800 shares did not pay BI] [4] Dana éthe amount due on first call. The shares were forfeited and re-issued at 77 per share, 28 per share paid up. Pass Cash Book and Journal Entries. Explain the accounting treatment at the time of dissolution of a partnership firm, of [4] the assets and liabilities not already recorded in the books of the firm. Pass journal entries for the following transactions: (6] i. AXN Ltd, forfeited 2,400 shares of 10 each for non-payment of final call of © 3 per share. Out of the forfeited shares, 800 shares were reissued at © 8 per share as fully paid-up. ii, Vanya Ltd. purchased a running business from Hardik Ltd. for a sum of 18,00,000. The payment of % 10,00,000 was made by issue of equity shares of % 10 each and balance by a cheque. The assets and liabilities acquired from Hardik Ltd. consisted the following: = Machinery '9,00,000 Land and Building 13,50,000 Furniture Sundry Creditors oR The Manish Ltd. has authorised capital of © 5,00,000 divided into 50,000 shares of & 10 each. The company issued a prospectus inviting applications for 30,000 shares of = 10 each at a premium of 8 2 per share, payable as follows: On Application % 3; On Allotment 35 (including premium); On First Call 2; On Second and Final Call % 2. The Company received applications for 45,000 shares and pro-rata allotment was made in respect of applications of 40,000 shares and the remaining applications were rejected. Money overpaid on applications was employed on account of sums due on allotment. All the calls were made. B, to whom 300 shares were allotted failed to pay the two calls. The company decided to forfeit the shares allotted to B. These shares were subsequently re-issued to C as fully paid for ® 9 per share, Pass the necessary journal entries in the books of the company. X and Y are partners sharing profits in the ratio of 2: 1. Their Balance Sheet as at [6] 315 March, 2023 was: Liabilities [Sundry Creditors z Assets = Cash/Bank 18,000 |Sundry Debtors 15,000) General Reserve Page 7Capital A/cs: stock 10,000) x 75,000 investments 8,000] Y 62,000 1,37,000] Printer 5,000] Fixed Assets 1,37,000} 1,80,000 They admit Z into partnership on 1st April, 2023 on the following terms: i. Z brings in % 40,000 as his capital and he is given 3th share in profits. iii, Investments are valued at % 10,000. X takes over Investments at this value. iv. Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%. v. An unrecarded stock on 315t March, 2023 is € 1,000. vi. By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis. Balance Sheet of the firm. OR 2015 their balance sheet was as follows i. Z brings in % 15,000 for goodwill, half of which is withdrawn by old partners. Pass Journal entries, prepare Revaluation Account, Capital Accounts and new J, Hand K were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 34st March, Balance Sheet as on 31st March, 2015 jl Amount Amount Liabilities (Rs) Assets (Rs) [Creditors 42,000 |Land and Building 1,24,000 Investment Fluctuation Fund 20,000 | Motor Vans 40,000 Profit and Loss A/c 80,000 Jinvestments 38,000 [Capital A/es Machinery 24,000 J 1,00,000] Stock 30,000 H 80,000 Debtors kK 40,000 |2,20,000 Provision for Doubtful 3,62,00025. On the above date, H retired and J and K agreed to continue the business on the following terms i. Goodwill of the firm was valued at Rs 1,02,000. ji, There was a claim of Rs 8,000 for workmen’s compensation. Provision for bad debts was to be reduced by Rs 2,000. iv. H will be paid Rs 14,000 in cash and the balance will be transferred in his loan account which will be paid in four equal yearly instalments together with interest @ 10% per annum. v. The new profit sharing ratio between J and K will be 3 : 2 and their capitals will be in their new profit sharing ratio. The capital adjustments will be done by opening, current accounts. Prepare revaluation account, partners’ capital accounts and balance sheet of the new firm, A, Band C were partners sharing profits in the ratio of 4: 3:2. Their Balance Sheet [6] as at 31st March, 2018 was as follows: Labllities z Assets R Sundry Creditor Cash 6,400 Expenses Owing Debtors 20,000 Reserve Fund Less: Provision — |400 19,600 Capitals: [stock 30,000 A {60,000 Patents 8,000 1B 50,000 Machinery 1,20,000 Ic 140,000 |1,50,000 |Goodwill }9,000 1,93,000 '1,93,000 B retired on the above date upon the following terms: i. Goodwill of the firm be valued at % 63,000. ii, Machinery be written down by 10% and the patents written up by 25%. Provision for doubtful debts be brought upto 5% on debtors and a provision of 24% on creditors be made for discount. Expenses owing are to be brought down to % 3,900. v. Bis to be paid % 30,000 immediately, which is to be contributed by A and C in ‘their new profit sharing ratio which is 3 : 2. Give journal entries to record the above and the Balance Sheet of the firm after B's retirement.4 _, te ¥ Ct 27. 28. 29, 30. Ram Ltd. purchased the following assets of E.X. Ltd.: Land and Building of © 60,00,000 at % 84,00,000; Plant and Machinery of % 40,00,000 at % 36,00,000. The purchase consideration was % 1,10,00,000. The payment was made by accepting a Bill of Exchange in favour of E.X. Ltd. of % 20,00,000 and remaining by the issue of 8.% debentures of % 100 each at a premium of 20 %, Record the necessary journal entries for the above Ltd. Part B :- Analysis of Financial Statements The analysis of a financial statement by a shareholder is an example of: a) Internal Analysis b) Vertical Analysis ) External Analysis d) Horizontal Analysis OR Where operating cycle cannot be identified it is assumed to be a period of a) 6 months b) 3 months d)9 months ¢) 12 months The net income of the company should ideally be times of the fixed interest charges. a)3or4 b)6 or? )Sor6 d)4or5 ‘An example of Cash Flows from Financing Activity is: a) Interest Received b} Cash receipts from issue of share ¢) Credit Revenue from Operations _d) Sale of Investments or Which activity are the main revenue-generating activities of the enterprises? a) Cash flow from investment b) Cash flow from operating activities activities d) Cash flow from management activities ¢) Non Cash transactions Increase of decrease in the Bank balance is transactions in the books of Ram [6] )31. 32. a) Operating Activity b) Investing Activity ¢) Financing Activity d) Cash and Cash Equivalents Under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule Ill Part | of the Companies Act, 20137 i. Loans provided repayable on demand Ti, Goodwill iti, Copyrights and Patents iv. Cheques v. General Reserve vi. Goods acquired for trading, and vii 9% Debentures repayable after three years Calculate Return on Investment and Debt to Equity Ratio from the following information: BI BI Net Profit after Interest and Tax %3,00,000 10% Debentures = 5,00,000 Tax Rate 40% Capital Employed % 40,00,000 : Following is the Balance Sheet of Shine Ltd. as at 31st March, 2023: (4 Particulars No. 2023 (%) 2022 (3) Note | 31stMarch, | 34st March, I. Equity and Liabilities 1. Shareholders’ Funds (a) Share Capital 15,00,000 /10,00,000 (b) Reserves and Surplus 10,00,000 10,00,000 2. Non-Current Liabilities: Long-term Borrowings #.09,000 2,00,000 3. Current Liabilities Trade Payables >.90,000, 2.00,000 Total '38,00,000 [25,00,000 Ul, ASSETS: 1. Non-Current Assets Page 1134, Note | 3istMarch, | 31st March, Particulars No. [ 2023 (3) 2022 (8) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment 25,00,000 15,00,000 (i) Intangible Assets 5,00,000 5,00,000 2. Current Assets (a) Trade Receivables 6,00,000 '3,50,000 (b) Cash and Cash Equivalents 2,00,000 2,50,000 Total '38,00,000 [25,00,000 You are required to prepare Comparative Balance Sheet on the basis of the information given in the above Balance Sheet. OR From the following information, prepare Comparative Statement of Profit and Loss of X Ltd: Particulars 31-3-2023 31-3-2022 x x Revenue from Operations 25,00,000 20,00,000 [Cost of Materials Consumed 21,00,000 16,00,000 lOther Expenses 25% of Gross Profit | 20% of Gross Profit Income Tax 50% 50% i, From the following information of Nitro Ltd., calculate the cash flaw from investing activities: [6] pardeatiars 31.3.2023 | 31.3.2022 @) () Machinery (At cost) 5,00,000 | 3,00,000 [Accumulated Depreciation on machinery 1,00,000 | 80,000 Goodwil 1,50,000 | 1,00,000 Land 70,000 | 1,00,000 Additional Information: During the year, a machine costing © 50,000 on which the accumulated depreciation was € 35,000, was sold for % 12,000.The profit of Jeep Ltd. for the year ended 31st March, 2023 after appropriation was € 2,50,000. Additional Information: S.No. [Particulars Amount () ol [Goodwill written off 9,000 (i) Loss on sale of Furniture 2,000 (ii Transfer to General Reserve 22,500 The following was the position of its Current Assets and Current Liabilities as at 3ist March 2022 and 2023. 31.3.2022 31.3.2023 Particulars ®) ®) Income Received in Advance 8,000 Inventory 12,000 8,000 Calculate the Cash flow from operating activities.