r e ” = PRACTICE PAPER - 4 Accountancy (Class Xi) Max, Marks: 80 (Marks: 60) i is admitted as a partner for 1/4th (@) 17:13:10 () 19:11:10 Coa cadre aas . ie the time of admission of a partner, decrease in the value ofa liability is credited to Reason (R): Increase in value of assets is also credited to Revaluation A/c. Select which option is true: (a) Both Assertion (A) and Reason (R) are true and Ris the correct ‘explanation of Assertion (A). (®) Both A and R are true but Ris not the correct explanation of A. (c) Ais true but R is false. (a) Ais false but Ris true. @ . A share of € 10 each, issued at a premium of & 4 of which @7 (including @3 premium) was called up and paid up. The uncalled capital will be: (a) &7 per share (b) %6 per share (0) 84 per share (a) %3 per share @ OR Which of the following is untrue to debenture? (a) Debenture represents long-term borrowing of the company. (b) Debentures are redeemed on maturity. (©) Debentures can be purchased from open market. (a) Debentures can be forfeited for non-payment of call money. w X,Y and Zare partners sharing profits in the ratio of 4: 3: 2. They decided to share profits equally in future, Workanen ‘Compensation Reserve appeared in Balance Sheet as & 80,000 and Claim against workers is ® 20,000. 60,000 should be distributed among partners in their: (a) Sacrificing Ratio (b) Gaining Ratio : (©) Old Profit Sharing Ratio (a) New Profit Sharing Ratio @ OR i rtners in a firm, Farad was admitted as a new partner for 1/5th share in the eee proportionate capital. Capitals of Disha and Abha afterall adjustments sy 2 64,000 and & 46,000 respectively. Capital brought by Farad was: (C.B.S.E,, 2020) (1) (a) €22,000 (6) & 27,500 Cee iS 28,000 saa firm sharing profits and losses in the ratio of 3: 2. Their capital as on 31st . and B A omar 9, soo and& 240,000 respectively. Their drawings during the year were % 70,000 on vr deed, interest on opening capital @ 10% ned allowed to them. Compute the opening capital of p if divisible profit during 2021-22 was €2,25,000, (a) 3,00,000 (b) %2,00,000 (©) 3,30,000 (@) %2,20,000 ‘ aM irares of € 100 each at a premium and redeemab i X Ltd. issued 30,000 8% Debent ‘Debentures if Statement of Profit and Lo le at 10% premium. 8s ied While writing off ees aed Teoued at a premium of: 'S was debited with % 1,80,000, the debentures oe 9 * ; () 5% (2) 4% (@) 3% 125 @OR Y Ltd. issued 20,000 8% Debentures of ® 100 each at a discount and redeemable at a premium o after 4 years. If Loss on Issue of Debentures written off from Statement of Profit and Lo % 2,80,000, the debentures must be issued at a discount of: (a) 3% (b) 4% (c) 5% (a) 6% 7. Vanya Ltd. forfeited 20,000 equity shares of 100 each for non-payment of first and final call ofz per share. The maximum amount of discount at which these shares can be re-issued will be: (a) %8,00,000 (b) % 12,00,000 (c) %20,00,000 (a) % 20,000 (CBSE, 2020), 8. Incase of retirement of a partner profit or loss on revaluation of assets and reassessment of liabilitt, 109, 88 Weg y 0 is distributed among .. partners in their atio. (a) old; old profit sharing (b) remaining; new profit sharing (c) remaining; gaining (d) remaining; sacrificing nN OR X and Y were partners ina firm. Z was admitted as a new partner for 1/4th share in the profits ofthe firm. Z brought proportionate capital. Capitals of X and Y after all adjustments were & 70,000 and % 50,000 respectively. Capital brought by Z was: (a) % 30,000 (b) % 40,000 (c) 50,000 (d) % 35,000 Read the following extracts and answer the Question No. 9 and 10. X and Y were partners in a firm sharing profits in the ratio of 3 : 2. X was allowed to get 10% commission of Net Profit while Y was allowed a commission of 10% after charging all commission. Following is the Profit and Loss Appropriation A/c, for the year ended 31-3-2022. Dr Profit and Loss Appropriation A/c a {for the year ended 31-3-2022 Particulars ® Particulars i) ‘To X’s Capital A/c (Commission) 44,000 || By Profit and Loss A/c i (oereenees % 10/100) ‘To Y's Capital A/c (Commission) ‘To Profit transferred: X's Capital A/c ‘Y's Capital A/c Bae as 9. Y's share of commission will be: (a) % 44,000 (b) % 40,000 (c) % 36,000 (a) 35,000 a 10. X's share of profit will be: (a) 71,44,000 (b) %2,16,000 (c) %1,80,000 (d) %1,60,000 @ 11. Choose the correct sequence in context of division of profit among partners of a firm. (i) Salary of Partners (ii) Guarantee by Firm to Partners (iii), Guarantee by Partner to Firm 7 (iv) Guarantee by Partner to Partner (a) (i), (ii), (iii), (io) (b) (i), (iii), (i), (iv) (©) (i), (iii), (iv), (ii) (a) (i), (ii), (iv), (iti) a 42. Gama Lid. forfeited 200 shares of 100 each, 80 called-up due to non-payment of Share Ist calle Share Final Call has not been made so far. These shares can be reissued by the compat * ee per share fully paid up. (a) © 100 (b) &80 () 60 (d) 750 awe 13. ccd 15. 16. W. 18. 19. On forfeiture of shares, Share Capital A/c is debited with: (a) Face Value of Share (b) Paid-up Vah ’aid-up Value of Share led-up Value of St (¢) Called-up Value of Share (@) None of these @ Which of the following item is not recorded — ae oeca on the credit side of current account of partners? (b) Salary of Partner (c) Interest on Partner's Loan ee : (d) Profit Share of Partner @ amount at the beginning of each - : i t quarter. If interest on his drawings durin; Game ° nor P.a. amounts to & 5,000, his quarterly drawing was: nee uns (a) 20, (b) 24,000 (c) % 30,000 (a %25,000 @ OR Partner, Q drew fixed amount at the end of each month i i di -22. fo pa amounts to 4400, his monthly drewine one luring 2021-22. If interest on drawing at 8% (a) % 11,000 (b) % 10,000 (c) 12,000 (d) 714,000 @ On the basis of the following data, how much final payment will be made to a partner on firm's dissolution? Credit balance of capital account of the partner was & 50,000. Share of loss on Realisation amounted to € 10,000. Firm’s liability taken over by him was for ® 8,000. (a) %32,000 (b) & 48,000 (o) % 40,000 (a) % 52,000 . (C.B.S.E., Sample Paper 2020-21) (1) Chander, Tara and Ravi were partners in a firm sharing profits in the ratio of 2: 1 : 2. On 15-2-2022, Chander died and the new profit sharing ratio between Tara and Ravi was 4: 11. On Chander’s death, the goodwill of the firm was valued at 90,000. Calculate gaining ratio and pass necessary journal entry for the treatment of goodwill on Chander’s death without opening goodwill account. (C.BS.E., 2008 Set I- modified) (3) On 3ist March, 2022, the balance in the capital accounts of Asha, Nisha and Disha after making adjustments for profits and drawings were 1,50,000,® 1,20,000 and ® 90,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 10% p.a. Interest on drawings was also to be charged @ 10% p.a. The drawings during the year were: Asha € 50,000, Nisha € 60,000 and Disha % 30,000. The net profit for the year ending 3ist March, 2022 amounted to € 1,00,000. The profit sharing ratio was 2: 2:1. Pass the necessary adjustment entry. Also show your workings clearly (C.B.S.E,, 2020-C- modified) (3) oR ina fi i i } € 80, 1d & 40,000 respectively. Theit artners in a firm having capitals of € 80,000; 80,000 an« respectively aa ae Palances were A & 10,000; B & 5,000 and C ¥ 2,000 (Dr). According to partnership deed, the partners were entitled to interest on capital @ 5% p.a. C being the working ea aes entitled to a salary of € 6,000 p.a- partner ‘The profits were to be divided as follows: (a) First @ 20,000 in proportion of capitals. (&) Next ® 30,000 in the ratio of 5:3:2- ini i shared equally. Remaining profits to bes ee firm a "profit of 156,000 during 2021-22 before charging any of these above items. Prepare Profit and Loss Appropriation A/c. (CBSE, 200-1 modified) 0) oe ined a loan of © 10,00,000 from State Bank of India @ 9% interest. Th KK Limited 9,000 ‘ie debentures of € 100 each in favour of State Bank of India as collateral oeceette ay Journal entries for the above transactions: security. 127() When company decided not to record the issue of 9% Debentures as collateral security, (ii) When company decided to record the issue of 9% Debentures as collateral security. (C.B.S.E., Sample Paper 2017-18) ¢y OR Madhur Ltd. took over the assets of € 3,90,000 and Liabilities of € 40,000 of Rasova Ltd. for 4 consideration of € 4,00,000. 20% amount was paid by cheque and the balance by issue of fully paig equity shares of € 100 each at a premium of 60%. Show necessary journal entries for these transactions in the books of Madhur Ltd. (C.B.S.E., 2017-C) (3 20, Bhavya and Sakshi are partners in a firm, sharing profits and losses in the ratio of 3 : 2. On 31st March, 2022 their Balance Sheet was as under: Balance Sheet of Bhavya and Sakshi sat 31st March, 2022 Tabane ® ‘Assets ® Sundry Cratitors 13,800 |) Furniture 16900 Geom) Reserve 23400 || Land and Building 56000 Anwestment Froctuaton Fund 20,000 |} Investments 30000 Bhavya's Capital 50,000 |} Trade Receivables 1850 ‘Seta's Capital 40,000 |) Cash in Hand 26700 17200 Tart The partners have decided to change their profit sharing ratio 1 : 1 with immediate effect. For the purpose, they decided that: (i) Investments to be valued at ® 20,000. (Gi) Goodwill of the firm valued at % 24,000. ii) General Reserve not to be distributed between the partners. You are required to pass necessary journal entries in the books of the firm. Show workings. (C.B.S.E., Sample Paper, 2018-19 - modified) (3) 21. Bliss Products Ltd. registered with capital of € 90,00,000 divided into 90,000 equity shares of & 100 each. The company issued prospectus inviting applications for 44,000 equity shares of < 100 each payable as @ 20 on application, ® 30 on allotment, @ 20 on first call and balance on second call. Applications were received for ® 40,000 shares. Raman 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 f& issued to Sukhman, credited as fully paid for 90 per share. Present the share capital in the Balance Sheet of the company as per Schedule Il of the Companies Act, 2013 along with Notes to Accounts. (C.B.S.E., Sample Paper 2019-20) () 22. Give the necessary journal entries for the following transactions on dissolution of the firm of Anita and Ravi on 31st March, 2022, after the various assets (other than cash) and the third party liabilities are transferred to Realisation Account. They shared profits and losses in the ratio of 3:2. (a) Ravi was to geta remuneration of & 23,000 for completing the dissolution process. He also agreed to Bear Realisation expenses, Realisation expenses of & 10,000 were paid by Ravi from the firm's cash. () Amitesh, an old customer whose. year, paid 90%, account for & 60,000 was written off as bad debt in the previous (©) Creditors of & 40,000, accepted furniture valued at 38,000 in full settlement of their claim. were 500 shares of € 40 each in Vision Ltd. acquired at a cost of € 22,000 and had best off completely from the books. These shares are now valued at € 50 each and divid : the patners in their profit sharing ratio. (C.B.S.E,, 2017-AI-C) fadtg.invited applications for issuing 1 1 Se am of 5 per share. The amount on Application and Allotment — (On the First and Final call . 00,000 equity she ty shares of &1 Capes (O each. The shares were issued at a % 8 per share (including premium 3) Balance including premium Applications for 1,50,000 shares were received. Aj rataallotment was made to the remaining appli plications for 10,000 shares were rejected and pro- : icants on the following basis: () Applicants for 80,000 shares were allotted 60,000 shares, and 7 o Applicants for 60,000 shares were allotted 40,000 shares. | amount received on application and allotment was to be adjusted against sums due on call. X,who belons 7 : the first category and was allotted 300 shares, failed to pay the first and final call money. Y, who belonged to the second category and was allotted 200 shares, also failed to pay the first and final call money. Their shares were forfeit : ) share as fully paid-up. rfeited. The forfeited shares were reissued @ @ 12 per Prepare Cash Book and pass necessary journal entries for the above transactions in the books of the company. (CB.S.E,, 2019) (6) OR Radha Mohan Ltd. Invited applications for issuing 4,00,000 equity shares of % 50 each. The amount was payable as follows: On Application -¥ 15 per share On Allotment - 25 per share On First and Final Call -€ 10 per share. Applications for 6,00,000 shares were received and pro-rata allotment was made to all the applicants on the following basis: Applicants for 4,00,000 shares were allotted 3,00,000 shares. Applicants for 2,00,000 shares were allotted 1,00,000 shares. It was decided that excess amount received on applications will be adjusted towards sums due on : ; i allotted 6,000 shares out of the grou allotment and surplos if any willbe refunded. Vibhuti who was ellotted 6, : group uae jay 00, TP ares did not pay theallotment money and his shares were forfeited immediately. PO ree ted at & 30 per share fully paid up. Later on, first and nese forfeited shares were reissu een say Shahid, ‘who had applied for 2,000 shares out of the group applying for 2,00,000 shares failed to pay first and final call ‘and his shares were also forfeited. These shares were afterwards issued at % 60 per shares fully paid up- a 7 al entries in the books of Radha Mohan Ltd. for the above. (C.B.S.E., 2016 AI-C) (6) 24, On 31st March, 2022, the Balance Sheet of Madan and Mohan who share profits and losses in the ratio, . st March, ‘i follows: nee? ween Balance Sheet of Madan and Mohan as at 31st March, 2022 © Assets Tables “ 24,000 [| Cash at Bank = i 1 Creditors 10,000 |} Debtors 65,000 one General Reserve 22,000 |] _Less:Provision for Doubtful Debts 5, 8 ful 5, Employees Provident Fund oa 500: oe Capitals: 60,000 Patents ae Madan 40000 | _1,00,000 a Mohan 760,000 [see 760,000They decided to admit Gopal on 1st April, 2022 for 1/5th share which Gopal acquired wholly from Mohan on the following terms: (i) Gopal shall bring % 10,000 as his share of premium (ii) A debtor whose dues of 3,000 were written off as Gii)_Aclaim of 85,000 on account of workmen's compensation was 0 be provided for. 1 € 200. Stock in the books was valued 10% more than its marke, for Goodwill. bad debt paid € 2,000 in full settlement, (jo) Patents were undervalued b value. (o) Gopal was to bring & 23,200 as capital afterall adjustments. Prepare Revaluation A/c and Capital Accounts of the Partners. (C.B.S.E., 2019-C- modified) ( OR ‘A, Band C were partners in a firm sharing profits in rati March, 2022 was as below: 0 3: 3: 2 whose balance sheet as on 31st Liabilities ie One ‘Assets ae ® Creditors 35,000 |} Cash at Bank , 6.000 General reserve 4,000 || Debtors 28,000 Capitals: @ ‘Stock 30,000 A 16,000 Furniture 12,000 B 15,000 Patent 400 ic 10,000 41,000 w0000 0 B retired on that date and in this connection, it was decided to make the following adjustments: (a) Toreduce stock and furniture by 5% and 10% respectively. (b) To provide for doubtful debts at 5% on debtors. (c) Expenses outstanding ® 300 was not yet recorded. (a) Goodwill was valued at 12,000. AandC decided: (i) To share profits and losses in ratio 5 :3 respectively; (ii) Tobring in sufficient cash to pay off Bimmediately and to leave a balance of € 1,000 in the bank ‘A brought 8,000 and C brought the balance amount. B was paid off. Give Journal entries to record the above transactions. o 25, The following is the Balance Sheet of Ram, Mohan and Sohan as on 31st December, 2017. Liabilities © ie ‘Sundry Creditors 10,000 |] Tools ree 7,500 || Furniture | Capital Accounts: Pee (Ram 20,000 |} Debtors =e 10,000 |} Cash at Bank _— 10000 |] Cash in hand 37500 Ram, i Dae and Sohan share profits and losses in the ratio of 2:2: 1. Sohan died on 31st March ao \e partnership agreement, the executor of Sohan was entitled to: (a) i a a ‘standing to the credit to his Capital Account. Yerest on Capital which amounted to € 150.(@) His share of goodwill 85,000, (4) His share of profit from th in ” 7 Oe e closing of the last financial year to the date of death which amounted Sohan's executor was paid & 1,400 on Ist April, i ; peniereareen tere e An al 2018 and the balance in 4 equal yearly instalments Dawe up eum Account to be rendered to his executors and Sohan’s Executors Account till it is ly paid. ' (C.B.S.E., 2000 - modified) (6) 26, On1-4-2021, J.K. Ltd. issued 8,000, 9% debentures of 1,000 each at a discount of 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest ‘on 9% debentures is payable on 30th September and 31st March every year. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31-3-2022 and also prepare Loss on Issue of Debentures A/c. __(C.B.S.E., 2017-AI~-_modified) (6) Part B: Analysis of Financial Statements (Marks: 20) 27, Change in Inventories shown in Statement of Profit and Loss refers to: (a) Difference between (Opening ~ Closing) Stock of Raw Material (®) Difference between (Closing - Opening) Stock of Raw Material (0) Difference between (Opening - Closing) Stock of Work-in-Progress and Finished Goods (@) Difference between (Closing - Opening) Stock of Work-in-Progress and Finished Goods (1) OR If the Current Ratio of a company is 2 : 1, state whether the redemption of debentures will . . the ratio. (a) improve (b) reduce (o) not change (d) can't say @ 28. From the following information, Proprietory Ratio will be: Share Capital = € 6,00,000; Reserve and Surplus = € 2,00 000; Total Debts = €7,00,000, Non-current 8,00,000. (a) 053:1 (b) 04:1 (c) 0-66:1 (a) 05:1 @ 29. Tax refund received during year is treated while preparing Cash Flow Statement as: (a) Add in Net Profit before Tax and deduct from Operating Activities as extra-ordinary item (@) Subtract from Net Profit before Tax and also deduct from Tax Paid in Operating Activities (c) Subtract from Net Profit before Tax and add in Investing Activities (d) Subtract from Net Profit before Tax and add in Financing Activities w OR Dividend received by a Mutual Fund Company $2 sa activity. Operating (b) Investing ae (a) Cash and Cash Equivalent - () Financing 31- 30. Particulars 1-3-2021 545000 | 390,000 “Machinery achine costing & 90,000 (BOOK Value €80,000) was sold at aloss of 40%, Compute the amount of Machinery purchased during year: Is it: ‘omp' 2% 245,000 (b) %2,35,000 (c) %2,25,000 255, “ ich maj i ing it ill be presented i jez wich major heading, the following items wil be Presented inthe a igang 05 pet Revised Schedule Part I of the Companies Act, 2013? Balance Sheet of a 131 During yea"(i) Trade Marks (ii) Capital Redemption Reserve (iii) Income Received in Advance (iv) Stores and Spares (v) Office Equipment (vi) Current Investments (CBSE, 2014 Al-C- modified 32. What is meant by Debt Service Ratio? 6) 33. Net profit after interest and tax © 1,00,000; Current Assets & 4,00,000; Current Liabilities © 2,00 gp, Tax Rate 20%; Fixed Assets & 6,00,000; 10% Long-term Debt & 4,00,000; Long-term Debt 4,00,000 ang Revenue from Operations € 24,00,000. Calculate Return on Investment and Net Assets Turnover Ratio. ry OR ‘A.Company’s Stock Turnover is 5 times. Stock at the end is € 20,000 more than that at the beginning Revenue from Operations i.e, Sales are & 8,00,000. Rate of Gross Profit on Cost 4, Current Liabilities %2,40,000 and Acid Test Ratio = 0-75. Calculate Current Ratio. (C.B.S.E., Sample Paper Il, 2008-Terminology Modified) 4) 34, Following is the Balance Sheets of Akash Ltd. as at 31-3-2022. Particulars ‘NoteNo.| 2021-22 | 202021 1. EQUITY AND LIABILITIES ® ® () Shareholders’ Fund (a) Share Capital 15,00,000 | 14,00,000 (@) Reserves and Surplus ‘ 1 250000 | 110000 (@) Non-current Liabilities (a) Long-term Borrowings 2,00,000 | 1,25,000 ) Current Liabilities (@) Short-term Borrowings 2 12,000 | 10900 (b) Trade Payables 15,000 83,000 (©) Short-term Provisions 3 18,000 11,000 ‘Total 19,95,000_|_17,39,000_ U._ASSETS () Non-current Assets Fixed Assets (@ Tangible Assets 4 | 18460000 |° 1610000 (i) Intangible Assets 5 50,000 | 30000 @) Current Assets (@) Current Investments 8,000 5000 () Inventories 37000 | 59/0) (©) Trade Receivables 26000 | 23000 (@) Cash and Cash Equivalents 4000 | 12000 ea 19,95,000_|_ 17.5900. Notes to Accounts Particulars zona | 20m 1. Reserves and Surplus ® © Surplus (Balance in Statement of Profit and Loss) 250,000 | 11000 2. Short-term Borrowings eee | Bank Overdraft 12,000 100% 3. Short-term Provisions Provision for Tax re ee 1324, Tangible Assets es reciati 20,00,000 | 17,00,000 ee (140,000) (90,000) 18,60,000 | 16,10,000 5. Intangible Assets 50,000 30,000 BS fi OO rT ET —— Additional Informations: (i) Tax paid during the year amounted to ® 16,000. (ii) Machine with a net book value of % 10,000 (Accumulated Depreciation % 40,000) was sold for % 2,000. Prepare Cash Flow Statement. (C.B.S.E., Sample Paper 2016 & 2017 - modified) (6)