GUESS PAPER 2

Time Allowed: 3 hours Maximum Marks: 80

General Instructions:
(i)This question paper contains 34 questions. All questions are compulsory. (ii) This question
paper is divided into two parts, Part A and B.
(iii) Part A is compulsory for all candidates.
(iv) Part B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised
Accounting. Students must attempt only one of the given options.
(v) Questions 1 to 16 and 27 to 30 carry 1 mark each. (vi) Questions 17 to 20, 31 and 32 carry
3 marks each.
(vii) Questions 21, 22 and 33 carry 4 marks each.
(viii) Questions 23 to 26 and 34 carry 6 marks each.
(ix) There is no overall choice. However, an internal choice has been provided in 7 questions
of one 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)
QUESTION 1.
A partner withdrew a fixed amount every month at the beginning of every month from the
firm for his private use. Firm charges interest on drawings of ₹3,900 from his Capital A/c. The
rate of interest on drawings is 10% p.a. The amount withdrawn every month will be:
(a) ₹5,000 (b) ₹6,000 (c) ₹7,000 (d) ₹6,500

QUESTION 2.
Assertion. (A): Partnership Deed is a legal document signed by all the partners.
Reason (R): Any type of charitable institution running as a not-for-profit organization will
not be considered as a business.
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) (A) is correct but (R) is incorrect.
(d) (A) is incorrect but (R) is correct.

QUESTION 3.
Space Ltd. took over the Assets of ₹18,50,000 and Liabilities of₹ 2,35,000 from Ridhi Ltd. 80%
of purchase consideration was settled by issuing 80,000 equity shares of ₹10 each at 25 %
premium and balance paid by cheque.
The value of purchase consideration was:
(a) ₹10,00,000 (b) ₹12,50,000
(c) ₹18,50,000 (d) ₹16,15,000
OR
Preeti Ltd. has 8,000; 8% Debentures of ₹50 each, issued at a discount of 8%. The interest on
debentures to be paid half yearly on 30th September and 31st March every year. Find out the

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

amount of interest credited to debenture holders as on 31st March 2023:
(a) ₹32,000 (b) ₹16,000
(c) ₹29,440 (d) ₹14,720

QUESTION 4.
X is a partner in a firm. He is entitled to a commission of 10% of net profit after all
adjustments including his commission. The profit for the year after all adjustments but before
charging his commission was ₹4,40,000. X's commission is:
(a) ₹44,000 (b) ₹40,000
(c) ₹30,000 (d) None of the above
OR
Sawan and Raman are equal partners in a firm. Sawan has given a guarantee to Raman that
his share of profit would not be less than ₹30,000 in any year. At the end of the year 31st
March, 2023, the firm suffered a loss of ₹90,000. Calculate the amount of deficiency to be
borne by Sawan.
(a) ₹30,000 (b) ₹20,000
(c) ₹90,000 (d) ₹75,000

QUESTION 5.
Rent to Partner is debited to:
(a) Profit and Loss A/c (b) Profit and Loss Appropriation A/c
(c) Revaluation (d) Realisation A/c

QUESTION 6.
Which of the following statements is incorrect?
(a) A debenture holder gets dividend from the company.
(b) Debenture holders are not entitled to participate in the management of the company.
(c) There are no restrictions on the issue of debentures at a discount.
(d) Debentures can be converted into shares.
OR
Preeti Ltd. issued 20,000; 8% Debentures of ₹100 each at certain rate of discount and were to
be redeemed at 10% premium. Existing balance of Securities Premium before issuing of these
debentures was ₹4,00,000 and after writing off Loss on Issue of Debentures, the balance in
Securities Premium was ₹80,000. At what rate of discount, these debentures were issued?
(a) 5% (b) 6% (c) 10% (d) 12%

QUESTION 7.
Assertion (A): A company normally cannot issue shares at a discount.
Reason (R): A company can issue shares at discount only in cases such as 'reissue of forfeited
shares' and 'issue of sweat equity shares'.
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) Assertion (A) is incorrect but (R) is correct.
(d) Assertion (A) is correct but (R) is incorrect.
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11
QUESTION 8.
X, Y and Z are partners with a capital of ₹6,00,000, ₹4,00,000 and ₹2,00,000, respectively.
Interest on capital is payable @ 8% p.a. but it was omitted and profit was distributed among
partners. To rectify this omission, the entry will be:
Particulars Dr.(₹) Cr.( ₹)
(A) Z's Capital A/c Dr. 16,000
To X's Capital A/c 16,000
(B) Z's Capital A/c Dr. 16,000
To Y's Capital A/c 16,000
(C) X's Capital A/c Dr. 16,000
To Z's Capital A/c 16,000
(D) Y's Capital A/c Dr. 16,000
To Z's Capital A/c 16,000
OR
A, B and C are partners, sharing profits in the ratio 3: 2:1 with capital of ₹30,000, ₹60,000 and
₹90,000 respectively. Partners are entitled to interest on their capital @ 10% p.a. During the
year firm earned a profit of ₹12,000. The amount of interest on capital payable to A, B and C
will be:
(a) ₹6,000, ₹4,000, ₹ 2,000
(b) ₹3,000, ₹ 6,000, ₹9,000
(c) ₹8,000, ₹6,000, ₹2,000
(d) ₹2,000, ₹4,000, ₹ 6,000

Read the following hypothetical situation, answer Question No. 9 and 10.
X, Y and Z are partners sharing profits in 3: 2: 1. During the year, Y fell ill. After diagnose, he
was advised by doctors to take 6 months bed rest. Finally He decided to retire from the firm
and the remaining partners decided to carry on the business. His capital and other balances
transferred to his loan A/c, which was ₹75,000. It was also decided that the amount will be
payable in three equal annual instalments together with interest @ 12% p.a.

QUESTION 9.
The amount of interest paid in 2nd year was:
(a) ₹7,500 (b) ₹6,000 (c) ₹2,500 (d) ₹10,000

QUESTION 10.
The amount of final instalment including interest was:
(a) ₹2,500 (b) ₹52,500 (c) ₹28,000 (d) ₹75,000

QUESTION 11.
(i) The maximum number of partners in the partnership business is 60 as per Section 464 of
the Companies Act, 2013.
(ii) Partnership deed is a written or oral agreement containing the terms and conditions
agreed by the partners.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

(iii) A sleeping partner is liable to the acts of other partners.
(iv) Rent paid to a partner and interest on partner's loan are charge against profits.
Choose the correct option:
(a) Only (i), (iii) and (iv) (b) Only (ii), (iii) and (iv)
(c) Only (iii) (d) Only (iv)

QUESTION 12.
Zara Ltd. forfeited 50 shares of ₹10 each, ₹6 called up, on which Ramesh had paid only
application money of ₹2 per share. Of these, 35 shares were reissued to Suresh as fully paid
up for ₹8 per share. What is the balance in the Share Forfeiture Account after the relevant
amount has been transferred to Capital Reserve Account?
(a) ₹200 (b) ₹50 (c) ₹100 (d) ₹30

QUESTION13.
X Ltd. made first call of ₹3 per share on 80,000 equity shares, one shareholder failed to pay
the amount on 1,500 shares held by him and another shareholder with 3,000 shares, paid
second and final call of ₹4 along with first call. Amount debited in bank account at the time of
first call will be:
(a) ₹2,47,500 (b) ₹ 2,40,000 (c) ₹2,35,500 (d) ₹ 2,52,000

QUESTION 14.
An unrecorded assets found at the time of retirement of a partner is:
(a) Debited to revaluation account
(b) Credited to revaluation account
(c) Debited to old partners' capital accounts
(d) Credited to old partners' capital accounts

QUESTION 15.
A, B and C are equal partners in a firm. C retires and his capital account after making
adjustment for reserves and profit on revaluation exists at ₹90,000. A and B have agreed to
pay him ₹1,20,000 in full settlement of his claim. A and B also decided to share profit in
future in the ratio of 1: 2. Journal entry for treatment of goodwill will be:
Particulars Dr.(₹) Cr.(₹)
(A) C's Capital A/c Dr. 30,000
To A's Capital A/c 15,000
To B's Capital A/c 15,000
(B) A's Capital A/c Dr. 15,000
B's Capital A/c Dr. 15,000
To C's Capital A/c 30,000
(C) C's Capital A/c Dr. 30,000
To B's Capital A/c 30,000
(D) B's Capital A/c Dr. 30,000
To C's Capital A/c 30,000
OR

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

Plant of ₹3,00,000 were already transferred in realisation account. It was given to a creditor
of ₹2,90,000 at 10% discount and balance paid by cash. to him. The Journal entry for this
transaction will be:
Particulars Dr.(₹) Cr.(₹)
(A) Realisation A/c Dr. 30,000
To Cash A/c 30,000
(B) Cash A/c Dr. 2 ,00,000
To Realisation A/c 2,00,000
(C) Realisation A/c Dr. 2,90,000
To Creditor A/c 2,70,000
To Cash A/c 20,000
(D) Realisation A/c Dr. 20,000
To Cash A/c 20,000

QUESTION 16.
A, B and C are partners sharing profits and losses in the ratio of 5:3: 2. C died on 1st July,
2023. According to the agreement the share of profits of a deceased partner up to the date of
the death is to be calculated on the basis of the average profits for the last three years which
worked out ₹2,40,000.
C's share of profit till the date of death will be:
(a) ₹80,000 (b) ₹12,000 (c) ₹14,000 (d) ₹15,500

QUESTION 17.
Ishu, Nisha and Tisha are partners in a firm. Ishu retires and 40% of per Total Claim was
settled by paying a cheque for ₹80,000 and balance transferred to her loan account carrying
6% p.a. interest. Her capital after all adjustment of revaluation and reserve was ₹1,55,000.
Nisha and Tisha decided to share profit and losses in future in ratio of 2: 1. Fill in the blanks
the following Journal entries on the basis of above information.
Date Particulars L.F Dr.(₹) Cr.(₹)
(i) ………………………. Dr. ………….
To Ishu's Capital A/c …………..
(Being adjustment entry for goodwill)
(ii) Ishu's Capital A/c Dr. …………
To Bank A/c 80,000
To ………………….. ………….
(Being 40% of Ishu's claim paid by cheque
and balance transferred to her loan A/c)

QUESTION 18.
Tani, Ansh and Pooja are partners in a firm. Their capital accounts showed the balance on 1st
April 2022 as ₹80,000; ₹65,000 and ₹90,000 respectively. During the year Tani withdrew
₹4,000 at the beginning of the each quarter. Ansh withdrew ₹1,200 at the end of the each
month. Pooja withdrew ₹2,500 at the end of each half year. Interest on drawing is to be
charged @ 6% p.a. Calculate interest on drawings of each partner.
OR
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11
Jolly and Molly are partners in a firm sharing profit and losses in the ratio of 2 :1. They decide
to admit Tina as a new partner for 1/3rd share on 1-4-2023. For this purpose goodwill of the
firm is to be valued on the basis of two and half years' purchases of the average profits for the
last 3 years.
The profits of the firm for the last three years were:
Year ending 31st March Profit/(Loss) (₹)
2020-21 2,00,000
2021-22 (80,000)
2022-23 2,50,000
Additional Information:
(a) Installation cost on second hand machinery purchased on 1st October 2021 amounting
To ₹40,000 was debited to repair account. Depreciation is charged @ 10% p.a. on
diminishing balance method.
(b) Closing Stock as on 31st March, 2023 was overvalued by ₹10,000.
Calculate the value of Goodwill.

QUESTION 19.
Sun Ltd. issued 40,000 equity shares of ₹20 each payable ₹4 on application; ₹8 on allotment
and balance on first & final call. Application were received for 46,000 shares. All the shares
were allotted on pro-rata basis.
Later the company forfeited shares of Monu, who applied for 1,840 shares, due to non-
payment of first & final call. Later on 40% of the forfeited shares were reissued for ₹22 per
share as fully paid-up. Give Journal entries for forfeiture, reissue of shares and amount
transferred to capital reserve account.
OR
Mittal Ltd. purchased a running business of Jyoti Ltd. for a consideration price of ₹21,00,000,
payable 50% by cheque and the balance by issuing 6% debentures of ₹50 each at a premium
of 5%. The assets and liabilities consisted of the following:
Land ₹15,00,000
Furniture ₹7,00,000
Trade Receivable ₹ 8,00,000
Loan ₹6,00,000
Give necessary Journal entries in the books of Mittal Ltd.

QUESTION 20.
A, B and C are partners sharing profit in the ratio of 2:3: 5. On 1st April
2023 they decide to share profit in the ratio of 5:3: 2. The extract of the Balance Sheet on that
date was as follows:
Liabilities Amt (₹) Assets Amt(₹)
Investment Fluctuation Reserve 85,000 Investment 4,65,000
General Reserve 15,000
Investment was to be recorded at its market value which was considered ₹3,65,000.
Give necessary Journal entries for the above.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

QUESTION 21.
Rocy & Vista were partners in a firm sharing profit ratio of 3: 1. On 31st March, 2023, their
firm was dissolved with following terms:
(i)The Land and Building (Book Value ₹3,00,000) was sold through a broker at 120% of book
value. A commission of 2% on the selling price of Land and Building was paid to the
broker.
(ii) Creditors of ₹40,000 were to be paid on an average of 2 months for the date of dissolution.
On discharging the creditors on the date of dissolution, they allowed a discount of 6% p.a.
(iii) An unrecorded liability of ₹40,000 was settled through an unrecorded asset which was
valued at ₹36,000 and balance was settled by Cash.
(iv) Unrecorded 1,000 shares of Accounts Guru Ltd. were valued at ₹90 each and divided
among the partners in their profit sharing ratio at an agreed value of ₹60 per share.
Pass Journal entries only for realisation account in the book of the form.

QUESTION 22.
Pargyan Ltd. was registered with an authorized capital of ₹80,00,000 divided into 8,00,000
Equity Shares of ₹10 each. The company offered 6,00,000 shares for public subscription,
payable ₹2 on application, ₹4 on allotment and balance in two equal calls. Application were
received for 6,60,000 shares and the company allotted shares to all applicants on pro rata
basis. When the calls were made all the money was duly received except from Rohan who
applied 1,320 shares. Company forfeited his shareafter the final call.
Show the following:
(i) 'Share Capital' in the Balance Sheet of A Ltd. as per Schedule III, Part I of the Companies
Act, 2013.
(ii) 'Notes to Accounts' for the same.

QUESTION 23.
VIKRAM Ltd. invited applications for issuing 40,000 equity shares of ₹10 each at a premium
of ₹3 per share. The amount was payable as follows:
On Application ₹4 per share (including ₹1 premium)
On Allotment ₹5 per share (including ₹1 premium)
On First and Final Call ₹4 per share (including ₹1 premium)
The issue was fully subscribed.
Rishi, holder of 250 shares did not pay the allotment money and Raj the holder of 500 shares
paid his entire share money along with allotment money. Rishi's shares were forfeited
immediately after allotment. Afterwards first call was made. Gupta a holder of 150 shares
failed to pay the first call money and his shares were forfeited. Later 300 shares out of the
forfeited shares (including all shares of Gupta) were reissued at ₹7 per share fully paid up.
Pass necessary Journal entries for the above transactions in the books of the company.
OR
Ritu Ltd. invited applications for 60,000 shares of ₹10 each payable as ₹2
per share on application, ₹2 per share on allotment and the balance on First and Final Call.
Applications for 95,000 shares were received which were allotted by the directors as follows:
Applications for 30,000 shares-Full
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11
Applications for 60,000 shares-50%
Application for 5,000 shares - Nil.
₹50,000 was realised on account of allotment money (excluding the amount carried from
Application Money) and ₹ 3,18,000 on account of call. The directors decided to forfeit shares
on which allotment money was overdue. The forfeited shares were reissued to M for ₹8 per
share as fully paid-up. Pass Journal entries in the company's books.

QUESTION 24.
A, B and C were partners in a firm sharing profits in the ratio of 2:3: 5. On 31-3-2023 their
Balance Sheet was as follows:
Balance Sheet
Liabilities Amt (₹) Assets Amt (₹)
Capital A/cs: Building 90,000
A 30,000 Leasehold Premises 35,000
B 40,000 Investment 45,000
C 60,000 1,30,000 Plant and Machinery 12,000
Creditors 42,000 Stock 15,000
Bills Payable 15,000 Debtors 20,000
Bank Loan 28,000 Less: provision for
Investment Fluctuation Reserve 10,000 Doubtful debts 800 19,200
Bank Overdraft 1,200 Bank 10,000
2,26,000 2,26,000
On the above data A retired and B and C agreed to continue the business on the following
terms:
(i) Goodwill of the firm was valued at ₹ 48,000.
(ii) Provision for doubtful debts was reduce to ₹ 500.
(iii) Outstanding Repair bill of ₹ 4,000 is still unpaid.
(iv) Building was appreciated by ₹ 10,000.
(v) Market value of investment was ₹ 40,000.
A will be paid ₹1,860 through cheque and the balance will be transferred in his loan account
which will be paid in two equal yearly instalments together with interest @ 10% p.a.
You are required to record the necessary Journal entries at the time of retirement of A.
OR

Karan and Amit. were partners sharing profits and losses in the ratio of 3:2. Balance Sheet of
Karan and Amit on 31st March, 2023 was as under:
Balance Sheet
Liabilities Amt (₹) Assets Amt (₹)
Capitals: Plant and Machinery 18,000
Karan 40,000 Furniture 40,000
Amit 20,000 Profit& Loss A/c 25,000
Employees Provident Fund 10,000 Sundry Debtors 9,000
Workmen Compensation Fund 16,000 Cash in Hand 1,500
Sundry Creditors 7,500
93,500 93,500
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11
On the above date Kritika was admitted for 1/5th share with the following
terms:
(a) Kritika will bring ₹ 20,000 for her capital and ₹ 5,000 for her share of goodwill premium.
(b) Provision for doubtful debts is to be created @ 5%.
(c) There was a liability of ₹ 6,000 for workmen compensation.
(d) There was an unrecorded furniture for ₹ 5,000.
(e) Capitals of Karan and Amit to be adjusted on the basis of Kritika's capital through cash.
Prepare Revaluation A/c, Partners' Capital A/cs and Balance Sheet.

QUESTION 25.
Kirti, Priti and Suniti were partners in a firm sharing profits in the ratio of 2:1:2 respectively.
On March 31st, 2022, their Balance Sheet was as under:
Balance Sheet
Liabilities Amt (₹) Assets Amt (₹)
Capitals: Land 1,80,000
Kirti 1,00,000 Equipment 65,000
Priti 1,20,000 Furniture 48,000
Suniti 1,20,000 Stock 95,000
Reserve 21,500 Debtors 28,000
Creditors 48,000 Cash at bank 13,500
4,29,000 4,29,000
Priti died on January 1, 2023. It was agreed between his executors and the remaining
partners that:
(a) Her share of goodwill is to be valued at half of the net profits credited to her account
during the last 4 completed years. The profits for the last four years were ₹ 60,000;
₹45,000; ₹ 30,000 (Loss) and ₹ 42,000.
(b) Her share in the profits of the firm till the date of his death, calculated on the basis of sale.
The rate of net profit on sale of previous year was 12%. Sales of the firm during the last
year was ₹9,00,000.
(c) Interest on capital be provided at 6% p.a.
(d) The executor of priti was to be paid the balance in two equal annual instalments with
interest @ 8% p.a. starting from 1st January, 2024. Accounts are closed on 31st March
each year.
You are required to:
(i) Prepare Priti's Capital Account to be presented to his representatives.
(ii) Calculate the total amount paid to Priti's executor on 1-1-2024.

QUESTION 26.
On 1st April, 2022, Rosy Ltd. issued 6,000, 9% Debentures of₹ 200 each at a discount of 5%,
redeemable at par as follows:
On 31st March, 2023 2,000 Debentures;
On 31st March, 2024 3,000 Debentures;
On 31st March, 2025 Balance debentures.
Interest is paid annually on 31st March.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

You are required to pass the Journal entries for issue of debentures, writing off discount on
issue of debentures and interest for three years.

PART-B
(ANALYSIS OF FINANCIAL STATEMENT)
QUESTION 27.
The process of comparing various financial factors of a company with other company is
known as
(a) Inter-firm comparison (b) Cash flow analysis
(c) Intra-firm comparison (d) Cross comparison
OR
For whom, analysis of financial statements is not significant?
(a) Employee of the company (b) GST officer
(c) Police officer (d) Shareholder

QUESTION 28.
Revenue from Operations ₹6,00,000, Average inventory ₹ 1,60,000, Gross
Loss on cost 25%.
Find Inventory Turnover Ratio:
(a) 6 times (b) 5 times (c) 4 times (d) 8 times

QUESTION 29.
Statement I: Dividend paid on shares will result in outflow of cash.
Statement II: Issue of shares to vendor against purchasing of machine will result in no flow
of cash.
(a) Both Statements are correct.
(b) Both Statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct.
OR
Ody Ltd. sold a Plant costing ₹16,00,000 (Accumulated Depreciation ₹1,45,000) for
₹14,55,000, it also purchased a new plant for ₹11,00,000. Depreciation during the year on
plant was ₹ 3,25,000. This transaction will result in:
(a)₹ 3,25,000 addition in operating activity and ₹3,55,000 addition in investing activity
(b) ₹14,55,000 subtraction in investing activity
(c) ₹12,60,000 addition in financing activity
(d) ₹3,25,000 subtraction in operating activity and ₹ 14,55,000 subtraction in investing
activity.

QUESTION 30.
Sobha Ltd. provides you the following information:
Particulars 31-3-2023(₹) 31-3-2022(₹)
Furniture 1,65,000 2,36,000
Additional Information:
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11
 (i) During the year depreciation on furniture was ₹ 36,000.
(ii) Furniture having book value ₹35,000 was sold for₹ 21,000.
Find out the cash flow from investing activity.
(a) Inflow ₹36,000 (b) Outflow ₹36,000
(c) Inflow ₹21,000 (d) Outflow ₹21,000

QUESTION 31.
Under what heads and sub-heads the following items will appear in the Balance Sheet of a
company as per Schedule III, Part-I of the Companies Act 2013?
(i) Premium on redemption of debentures (ii) Negative balance in bank account
(iii) Interest on calls in advance (iv) Bill payable
(v) Public deposits (vi) Share forfeited account

QUESTION 32.
Find Debts to Capital Employed Ratio from the following data of Lata Ltd:
12% Debentures ₹20,00,000
Non-current Assets ₹34,00,000
7% Long-term Loan ₹5,00,000
Total Debts ₹35,00,000
Current Assets ₹ 26,00,000

QUESTION 33.
Prepare Common-Size Balance Sheet from the following:
Particulars 31stMarch, 31st March,
2023(₹) 2022(₹)
EQUITY AND LIABILITIES:
Shareholders' Funds:
Share Capital 13,00,000 7,00,000
Non-Current Liabilities:
Long-term Borrowings 3,20,000 …….
Current Liabilities:
Trade Payables 2,80,000 2,40,000
Other Current Liabilities 2,60,000 60,000
19,00,000 10,00,000
ASSETS:
Non-Current Assets:
Fixed Assets (Tangible) 9,00,000 6,40,000
Fixed Assets (Intangible) 3,80,000 2,00,000
Current Assets:
Short-term Investment 3,60,000 ……..
Cash and Cash Equivalents 2,60,000 1,60,000
19,00,000 10,00,000
OR
Prepare Comparative Income Statement from the following information:
Particulars 2022-23 2021-22

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

Revenue from operations ₹12,00,000 ₹10,00,000
Other income ₹2,00,000 ₹1,00,000
Cost of material consumed 70% of revenue 60% of revenue
from operations from operations
Employees benefit expenses 10% of Cost of 20% of Cost of
material consumed material consumed
Income tax rate 50% 50%

QUESTION 34.
From the following Balance Sheets of Parul Ltd. as on 31-3-2022 and 31-3-2023, prepare Cash
Flow Statement:
Particulars Note.No 31.3.2023(₹) 31.3.2022(₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds:
(a) Share Capital 1 14,00,000 14,00,000
(b) Reserves and Surplus 2,34,000 1,66,000
2. Non-Current Liabilities:
(a) Long-term Borrowings 2 2,50,000 5,00,000
3. Current Liabilities:
(a) Short-term Borrowings 80,000 ……..
(Bank overdraft)
(b) Trade Payables 1,40,000 2,35,000
(c) Other Current Liabilities 5,000 …….
(d) Short-term Provisions 3 46,000 53,000
Total 21,55,000 23,54,000
II. ASSETS
1. Non-Current Assets:
(a) Property, Plant and Equipment and 4 9,30,000 12,38,000
Intangible Assets 2,26,000 3,80,000
(b) Intangible Assets (Goodwill)
2. Current Assets:
(a) Inventories 3,84,000 2,89,000
(b) Marketable Investment 2,72,000 1,27,500
(c) Trade Receivables 1,76,000 1,00,000
(d) Cash & Cash Equivalents 1,17,000 2,19,000
Total 21,55,000 23,54,000
Notes to Accounts:
Particulars 31.3.2023(₹) 31.3.2023(₹)
1.Share Capital:
Equity Share Capital 8,00,000 6,00,000
10% Preference Share Capital 6,00,000 8,00,000
2. Long-term Borrowing:
12% Loan from ICICI Bank 2,50,000 5,00,000
3. Short-term Provisions:
Provision for Tax 46,000 53,000
4. Tangible Assets:

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11

 Machinery 9,80,000 12,38,500

Additional Information:
(i) Tax provided ₹47,000 during the year.
(ii) During the year a part of machinery was sold at a loss of ₹26,000.
(iii) Depreciation on machinery during the year was ₹86,000.
(iv) Dividend paid during the year was ₹55,000.
(v) Loan was repaid on 1-10-2022.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-11