BANGALORE SAHODAYA SCHOOLS COMPLEX ASSOCIATION

PRE-BOARD EXAMINATION 1 (2024-2025)

Class: - GRADE XII SUBJECT: ACCOUNATANCY Date: - 18.12.2024

Time: - 3hours (Code -055) SET 1 MARKING SCHEME Marks: - 80

ANSWERS:

A1] c] only (iii) [1m]

OR

A1] b] agreement [1m]

A2] d] (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b) [1m]

OR

A2] c] (i)-(b); (ii)-(d); (iii)-(a); (iv)-(c)

[1m] A3] b] complete goodwill of the

firm [1m] A4] a] 41:7:12 [1m]

A5] b] Rs.12,00,000 [1m]

OR

A5] a] Rs.40 [1m]

A6] a] Rs.40,000 [1m]

OR

A6] b] (i)-(c); (ii)-(a); (iii)-(d); (iv)-(b) [1m]

A7] b] (ii), (iii), (i), (iv) [1m]

A8] d] (i)-(d); (ii)-(b); (iii)-(a); (iv)-(c) [1m]

A9] a] Rs.3,000 credit [1m]

A10] c] 01.01.2022 [1m]

Page 1 of 16
A11] b] 45:32:23 [1m]

OR

A11] d] 1/7th [1m]

A12] b] Rs.12,00,000 [1m]

OR

A12] b] Rs.4,000 [1m]

A13] b] Assertion and Reason both are correct but Reason is not the correct explanation of
Assertion. [1m]

A14] a] Rs.8,000 [1m]

OR

A14] c] Rs.30,000 [1m]

A15] b] Rs.18,000 [1m]

A16] b] (iii), (ii), (iv), (i) [1m]

A17] Journal [1.5m]

Date Particulars LF Dr. (Rs.) Cr. (Rs.)

Raina's Capital A/c Dr. 11,410
To Rohit's Capital A/c 10,150
To Raman's Capital A/c 1,260
(Being adjustment entry passed)

Analytical Table [1.5m]

Rohit Raman Raina

A. Profit already taken 24,000 24,000 24,000

B. Should get:
10,000 6,000 8,000
Interest on Capital
(300) (300) (300)

Page 2 of 16
 Rohit Raman Raina

Interest on Drawings 24,450 19,560 4,890

Share of Profit (72,000 + 900 − 24,000)
34,150 25,260 12,590
Total (B)

C. Net Effect A – B 10,150 Cr. 1,260 Cr. 11,410 Dr.

A18] 1. (b) Debit by Rs. 24,000 [1m]

2. (b) Rs. 48,000 [1m]
3. (d) Rs. 4,00,000 [1m]
OR
A18] 1. (d) 30,000 [1m]
2. (d) 80,000 Loss [1m]
3. (d) 6,00,000 [1m]

A19] JOURNAL [1/2, ½, 1, ½,1/2]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

Bank A/c Dr. 7,00,000
To Debenture Application A/c 7,00,000
(Being Application money received)

Debenture Application A/c Dr. 7,00,000

To 9% Debenture A/c 7,00,000
(Being Debentures issued)

Debenture Allotment A/c Dr. 2,00,000

Loss on issue of Debentures A/c Dr. 1,50,000
To 10% Debentures A/c 3,00,000
To Premium on Redemption of Debenture A/c 50,000
(Being debentures issued at discount)

Bank A/c Dr. 2,00,000

To Debenture Allotment A/c 2,00,000
(Being allotment money received)

Statement of Profit & Loss Dr. 1,50,000

To Loss on issue of Debentures A/c 1,50,000
(Being Discount and loss written off)

Page 3 of 16
 OR
A19] Journal [1/2, ½, 1,1]
Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)
Land A/c Dr. 20,00,000
To JSS Ltd. A/c 20,00,000
(Land purchased from JSS Ltd.)

JSS Ltd. A/c Dr. 15,00,000

To Bank A/c 10,00,000
To Bills Payable A/c 5,00,000
(Cheque issued and Promissory note drawn)

JSS Ltd. A/c Dr. 5,00,000

Loss on issue of 10% Debentures A/c Dr. 50,000
To 10% Debentures A/c 5,00,000
To Premium on redemption of
Debentures A/c 50,000
(10% Debentures redeemable at a premium issued
for the balance purchase consideration)

Statement of Profit & Loss Dr. 50,000

To Loss on issue of Debentures A/c 50,000
(Being Discount written off)

A20] Journal [1,1,1]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)
Ana’s Capital A/c Dr. 18,000
Pranjal’s Capital A/c Dr. 12,000
To Danish’s Capital A/c 30,000
(Being Danish’s share of goodwill adjusted in capital
accounts of Ana and Pranjal)

Profit and Loss Suspense A/c Dr. 5,400

To Danish’s Capital A/c 5,400
(Being Danish’s share of profit up to the date of his
death transferred to his capital account)

Danish’s Capital A/c Dr. 5,35,400

To Danish’s Executor’s A/c 5,35,400

Page 4 of 16
 (Being amount due to Danish transferred to his
executor’s account)

Working Notes:
Sales Calculation:
Sales = ₹2,00,000 + 20% of ₹2,00,000 = ₹2,00,000 + ₹40,000 = ₹2,40,000
Profit Percentage:
Profit % = 10% - 1% = 9%
Danish’s Share of Profit:
₹2,40,000 × 9/100 ×5/10 × 6/12 = ₹5,400

A21] Journal [1/2,1/2,1,1/2,1/2,1]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

General Reserve A/c Dr. 1,20,000

To Krishna’s Capital A/c 90,000
To Suresh’s Capital A/c 30,000
(Being General Reserve Distributed)

Krishna’s Capital A/c Dr. 45,000

Suresh’s Capital A/c Dr. 15,000
To Profit and Loss A/c 60,000
(Being loss distributed)

Workmen Compensation Reserve Dr. 1,50,000

Revaluation A/c Dr. 20,000
To Provision for Workmen Compensation 1,70,000
Claim A/c
(Being compensation adjustment made)

Krishna’s Capital A/c Dr. 15,000

Suresh’s Capital A/c Dr. 5,000
To Revaluation A/c 20,000
(Being loss on revaluation distributed)

Cash/Bank A/c Dr. 1,98,000

To Rahul’s Capital A/c 1,50,000
To Premium for Goodwill A/c 48,000

Page 5 of 16
 (Being capital and premium brought in by Rahul)

Premium for Goodwill A/c Dr. 48,000

To Krishna’s Capital A/c 36,000
To Suresh’s Capital A/c 12,000
(Being premium for goodwill adjusted in 3:1 ratio)

A22]
(i) Madhav applied for 300 shares [1/2m]
(ii) Satish applied for 195 shares [1/2m]
(iii) Shares allotted to Satish 163 [1/2m]
(iv) Amount is to be adjusted on allotment on Madhav’s shares ₹ 300 [1/2m]
(v) Amount is to be adjusted on allotment on Satish’s shares ₹ 192 [1/2m]
(vi) Application Money received ₹ 90,000 [1/2m]
(vii) Amount refunded ₹18,000 [1/2m]
(viii) Securities Premium ₹ 20,000 [1/2m]

A23] Journal [1/2,1,1,1,1/2,1/2,1/2]

Date Particulars L.F Dr. (Rs.) Cr. (Rs.)

Bad Debts A/c Dr. 6,000
To Debtors A/c 6,000
(Beng Bad Debts written off)

Revaluation A/c Dr. 9,000

To Bad Debts A/c 6,000
To Provision for doubtful debts A/c 3,000
(Being transfer of bad debt and
provision to Revaluation Account)

P’s Capital A/c Dr. 4,500

Q’s Capital A/c Dr. 3,000
R’s Capital A/c Dr. 1,500
To Revaluation A/c 9,000
(Being loss on revaluation distributed)

General Reserve Dr. 60,000

To P’s Capital A/c 30,000

Page 6 of 16
 To Q’s Capital A/c 20,000
To R’s Capital A/c 10,000
(Being General Reserve distributed)
P’s Current A/c Dr. 1,14,900
To P’s Capital A/c 1,14,900
(Being capital account adjusted)

Q’s Current A/c Dr. 23,400

To Q’s Capital A/c 23,400
(Being capital account adjusted)

R’s Current A/c Dr. 1,38,300

To R’s Capital A/c 1,38,300
(Being capital account adjusted)

Working Note: [1m]

Capital Adjustment
P = 2, 00,000 Capital + 30,000 General Reserve - 4,500 Revaluation Loss = 2, 25,500
Q = 3, 00,000 Capital + 20,000 General Reserve - 3,000 Revaluation Loss = 3, 17,500
R = 3, 00,000 Capital + 10,000 General Reserve - 1,500 Revaluation Loss = 3, 08,500
Combined adjusted capital = 2, 25,000 + 3, 17,500 + 3, 08,500 = 8, 51,000
Now divide 8, 51,000 in profit sharing ratio i.e. 2:2:1 and adjust the difference through Current
A/c
P = 8, 51,000 X 2/5 = 3, 40,400; Q = 8, 51,000 X 2/5 = 3, 40,400 and
R = 8, 51,000 X 1/5 = 1, 70,000
OR
A23]
Dr. Revaluation Account [1m] Cr.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Plant & Machinery A/c 20,000 By Provision for Doubtful debts 750
Distribution of gain: By Lan & Building A/c 90,000
To A’s Current A/c 35,375
To B’s Current A/c 31,225
To C’s Current A/c 14,150 70,750
90,750 90,750

Page 7 of 16
 Dr. Partners’ Current Accounts [1.5m] Cr.

Particulars A (Rs.) B (Rs.) C (Rs.) Particulars A (Rs.) B (Rs.) C (Rs.)

To C’s Current A/c 38,250 22,950 - By Revaluation A/c 35,375 21,225 14,150
To Profit & Loss A/c 1,20,500 72,300 48,200 By A’s Current A/c - - 38,250
To C’s Capital A/c - - 42,150 By B’s Current A/c - - 22,950
By General Reserve 37,500 22,500 15,000
A/c
By Balance c/d 85,875 51,525 --
1,58,750 95,250 90,350 1,58,750 95,250 90,350

Dr. Partners’ Capital Accounts [1.5m] Cr.

Particulars A(₹) B(₹) C(₹) Particulars A(₹) B(₹) C(₹)
To Bank A/c - - 35,500 By Balance b/d 5,00,000 3,00,000 2,00,000
To C’s Loan A/c - - 2,06,500 By C’s Current
To Balance c/d 5,00,000 3,00,000 - A/c 42,150
5,00,000 3,00,000 2,42,150 5,00,000 3,00,000 2,42,150

Balance Sheet as at …. [2m]

Liabilities Amount Asset Amount (Rs.)

(Rs.)
Capitals: Bank 21,000
A 5,00,000 Stock 9,000
B 3,00,000 8,00,000 Debtors 15,000
C’s Loan 2,06,650 Less: Provision 750 14,250
Creditors 23,000 Plant and Machinery 1,80,000
Outstanding Salary 7,000 Land and Building 6,90,000
B’s Loan 15,000 A’s Current A/c 85,875
B’s Current A/c 51,525

10,51,650 10,51,650
Note: Goodwill = 4,00,000 + 3,00,000 - 2,41,000 = 4,59,000/3= 1,53,000
1,53,000 x 2 = 3,06,000 and C’s Share = 3,06,000 x 2/10 = 61,200

A24] In the books of Satish Ltd.

Journal [1/2x 12]
Date Particulars LF Dr. (Rs.) Cr. (Rs.)
Bank a/c Dr. 5,70,000
To Share Application a/c 5,70,000

Page 8 of 16
(Being application money received on
1,90,000 shares of Rs.3 each and
premium of Rs.1)
Share Application a/c Dr. 5,70,000
To Equity Share Capital a/c 2,00,000
To Securities Premium a/c 1,00,000
To Share Allotment a/c 1,50,000
To Bank a/c 1,20,000
(Being application money transferred;
refund for rejected applicants; excess
adjusted towards allotment)
Share Allotment a/c Dr. 4,00,000
To Equity Share Capital a/c 3,00,000
To Securities Premium a/c 1,00,000
(Being allotment money due on
1,00,000 shares of Rs.4 each including
premium)
Bank a/c Dr. 2,43,500
Calls-in-Arrears a/c Dr. 6,500
To Share Allotment a/c 2,50,000
(Being allotment money received except
on 2000 shares)
Share First Call a/c Dr. 3,00,000
To Equity Share Capital a/c 3,00,000
(Being first call money due on 1,00,000
shares of Rs.3 each)
Bank a/c Dr. 2,85,000
Calls-in-Arrears a/c Dr. 15,000
To Share First Call a/c 3,00,000
(Being first and final call money
received except on 5,000 shares)
Equity Share Capital a/c Dr. 16,000
Securities Premium a/c Dr. 2,000
To Share Forfeiture a/c 5,500
To Calls-in-Arrears a/c 12,500
(Being 2,000 shares forfeited on non-
payment of allotment and first call
money)
Share Second and Final Call a/c Dr. 1,96,000
To Equity Share Capital a/c 1,96,000
(Being second and final call money due
on 98,000 shares of Rs. 2 each)
Bank a/c Dr. 1,90,000

Page 9 of 16
 Calls-in-Arrears a/c Dr. 6,000
To Share Second and Final Call a/c 1,96,000
(Being second and final call amount
received except on 3000 shares)
Equity Share Capital a/c Dr. 30,000
To Share Forfeiture a/c 15,000
To Calls-in-Arrears a/c 15,000
(Being 3,000 shares forfeited on non-
payment of call money)
Bank a/c Dr. 32,000
Share Forfeiture a/c Dr. 8,000
To Equity Share Capital a/c 40,000
(Being 4,000 shares reissued at Rs. 8
per share fully paid up)
Share Forfeiture a/c Dr. 9,750
To Capital Reserve a/c 9,750
(Being share forfeiture a/c transferred)

OR

A24] In the books of H Ltd.

Journal [1/2,1,1/2x7,1]
Date Particulars LF Dr. (Rs.) Cr. (Rs.)
Bank a/c Dr. 10,50,000
To Share Application a/c 10,50,000
(Being application money received on
30,000 shares of Rs.30 each and
premium of Rs.5)
Share Application a/c Dr. 10,50,000
To Share Capital a/c 6,00,000
To Securities Premium a/c 1,00,000
To Share Allotment a/c 1,50,000
To Bank a/c (1,75,000+25,000) 2,00,000
(Being application money transferred;
refund for rejected applicants; excess
adjusted towards allotment)
Share Allotment a/c Dr. 3,00,000
To Share Capital a/c 3,00,000
(Being allotment money due on 20,000
shares of Rs.15 each)
Bank a/c Dr. 1,41,000
Calls-in-Arrears a/c Dr. 9,000
To Share Allotment a/c 1,50,000

Page 10 of 16
(Being allotment money received except
on 600 shares)
Share Capital a/c Dr. 27,000
To Share Forfeiture a/c 18,000
To Calls-in-Arrears a/c 9,000
(Being 600 shares forfeited on non-
payment of allotment money)
Share First and Final Call a/c Dr. 97,000
To Share Capital a/c 97,000
(Being first and final call money due on
19,400 shares of Rs.5 each)
Bank a/c Dr. 92,000
Calls-in-Arrears a/c Dr. 5,000
To Share First and Final Call a/c 97,000
(Being first and final call money
received except on 1,000 shares)
Share Capital a/c Dr. 50,000
To Share Forfeiture a/c 45,000
To Calls-in-Arrears a/c 5,000
(Being 1,000 shares forfeited on non-
payment of first and final call money)
Bank a/c Dr. 45,000
Share Forfeiture a/c Dr. 5,000
To Share Capital a/c 50,000
(Being 1,000 shares reissued at Rs.45
per share as fully paid up)
Share Forfeiture a/c Dr. 31,000
To Capital Reserve a/c 31,000
(Being transfer of share forfeiture
account)

Page 11 of 16
A25A] Journal [1/2,1/2,1/2,1/2,1]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

Machinery A/c Dr. 2,52,000

To B India Ltd. 2,52,000
(Being machinery purchased from B India Ltd.)

i) B India Ltd. Dr. 1,20,000

To Equity Share Capital A/c 1,00,000
To Securities Premium A/c 20,000
(Being 10,000 equity shares of ₹ 10 each at 20 %
premium)

ii) B India Ltd. Dr. 95,000

Discount on Issue of Debentures A/c Dr. 5,000
To 9% Debentures A/c 100,000
(Being 1000 9% debentures of ₹ 100 each issues at 5 %
discount)
iii) B India Ltd. Dr. 37,000
To Bank A/c 37,000
(Being balance payment made by giving a bank draft)

Securities Premium A/c Dr. 5,000

To Discount on Issue of Debentures A/c 5,000
Being discount written off)

A25B] Journal [1m]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

Debenture Suspense A/c Dr. 23,00,000

To 7 % Debentures A/c 23,00,000
( Being 23,000, 7 % Debentures of ₹100 each as
Collateral Security for a Bank loan)

Balance Sheet (Extract) [1m]

Particulars Note No. Amount (₹)

I. EQUITY AND LIABILITIES
Non-Current Liabilities
Long-term Borrowings 1 20,00,000

Page 12 of 16
Notes to Accounts [1m]

Particulars Amount (₹)

1. Long-term Borrowings
Loan from HDFC Bank 20,00,000

23,000, 7% Debentures of ₹ 100 each as Collateral Security 23,00,000

Less: Debenture Suspense Account 23,00,000 -------

Total 20,00,00

A26] Journal [1x6]

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

i. Realisation A/c Dr. 800

To Cash/Bank A/c 800
(Being dissolution expenses paid)

ii. Realisation A/c Dr. 800

To Prabhu’s Capital A/c 800
(Being dissolution expenses paid by partner)

iii. Realisation A/c Dr. 10,000

To Geeta’s Capital A/c 10,000
(Being dissolution expenses paid by Geeta and
compensated by firm)

iv.a. Realisation A/c Dr. 5,000

To Janki’s Capital A/c 5,000
(Being dissolution expenses paid by Janki and
compensated by firm)

b. Janki’s Capital A/c Dr. 5,500

To Mohan’s Capital A/c 5,500
(Being Mohan paid dissolution expenses on behalf of
Janki)

v.a. Realisation A/c Dr. 9,000

To Kavita’s Capital A/c 9,000
(Being remuneration given to Kavita)

Page 13 of 16
 b. Kavita’s Capital A/c Dr. 9,000
To Realisation A/c 9,000
(Being furniture taken over by Kavita as remuneration)
Or
No Entry

vi. No Entry

A27] d] (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b) [1m]

OR
A27] c] (i)-(b); (ii)-(d); (iii)-(a); (iv)-(c) [1m]

A28] c] 2:1 [1m]

A29] c] Statement I is correct but Statement II is incorrect [1m]

OR

A29] c] Rs.2,58,000 [1m]

A30] a] bank loan taken [1m]

A31] Head [1/2x3] and Sub-Head [1/2x3]

Particulars Head Sub-Head
Loose Tools Current Assets Inventories
Calls-in-Advance Current Liabilities Other Current Liabilities
Mastheads and Publishing Non-Current Assets Property, Plant & Equipment
Titles and Intangible Assets-
Intangible Assets

A32] Comparative Statement of Profit and Loss for the year ending 31st March, 2023
Particulars Note 31st 31st Absolute Percentage
No. March March Change Change (%)
2022 (Rs.) 2023 (Rs.) (Rs.)
I Revenue from Operations 5,00,000 10,00,000 5,00,000 100.00
II Other Income -- -- -- --
III Total Revenue 5,00,000 10,00,000 5,00,000 100.00
IV Expenses
a] Purchase of Stock-in-
Trade 2,00,000 6,50,000 4,50,000 225.00
b] Change in Inventories of
Stock-in-Trade 50,000 60,000 10,000 20.00

Page 14 of 16
 c] Other Expenses 50,000 71,000 21,000 42.00
Total Expenses 3,00,000 7,81,000 4,81,000 160.33
V Profit before Tax 2,00,000 2,19,000 19,000 9.50
VI Less: Tax 60,000 87,600 27,600 46.00
VII Profit After Tax 1,40,000 1,31,400 (8,600) (6.14)
[1/2, ½, 1,1]
A33]
(i) c] 2:1 [1m]
(ii) b] 2.5:1 [1m]
(iii) d] 1.6:1 [1m]
(iv) a] 4:1 [1m]
OR
A33]
(i) d] Rs.5,00,000 [1m]
(ii) a] Rs.4,50,000 [1m]
(iii) a] Rs.45,000 [1m]
(iv) c] 25% [1m]

A34] Working Notes:

Calculation of Net Profit before tax and extraordinary items:
Particulars Rs.
Difference in Surplus:
Closing Surplus 2,00,000
Less: Opening Surplus (1,00,000) 1,00,000
Add: Transfer to General Reserve 26,000
Provision for tax 24,000
Dividend 60,000
2,10,000
Dr. Plant and Machinery account Cr.
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Balance b/d 2,80,000 By Bank a/c (sale) 56,000
To Statement of Profit and By Depreciation a/c 28,000
Loss (Gain) 14,000 By Balance c/d 3,92,000
To Bank a/c (purchase)
(Bal.Fig) 1,82,000
4,76,000 4,76,000

Page 15 of 16
 Cash Flow Statement for the year ended 31st March 2021
Particulars Amount (Rs.) Amount (Rs.)
I Cash Flows from Operating Activities:
Net Profit before tax and extraordinary items 2,10,000
Adjustment for non-cash and non-operating items
Add: Depreciation 28,000
Interest on overdraft 4,000 32,000
Less: Gain on sale of machinery (14,000)
Interest received on investment (2,000) (16,000)
Operating Profit before Working Capital Changes 2,26,000
Add: Increase in CL and Decrease in CA
Trade Payable 98,000
Inventories 42,000 1,40,000
Less: Decrease in CL and Increase in CA
Trade Receivables (2,10,000)
Cash Generated from operations 1,56,000
Less: Tax (18,000)
Net Cash Flow from Operating Activities 1,38,000
II Cash Flows from Investing Activities:
Proceeds from sale of investments 6,000
Proceeds from sale of machinery 56,000
Purchase of machinery (1,82,000)
Purchase of patents (32,000)
Interest received on investments 2,000
Net Cash Flow from Investing Activities (1,50,000)
III Cash Flows from Financing Activities
Issue of Share Capital 70,000
Bank Overdraft raised 10,000
Dividend Paid (60,000)
Interest on Bank Overdraft (4,000)
Net Cash Flow from Financing Activities 16,000
IV Net Increase in Cash and Cash Equivalents 4,000
V Cash and Cash Equivalents in the beginning 1,14,000
(30,000 + 40,000 + 44,000)
VI Cash and Cash Equivalents at the end 1,18,000
(20,000 + 58,000 + 40,000)
[CF from: OA 2m; IA 1m; FA 1m; Cash Mgmt 1m; W/Notes 1m]

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