Greater Heights Public School

ANNUAL EXAM
Class 12 - Accountancy
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 - A is compulsory for all candidates.

4. 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.

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

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 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

1. Puneet and Deepak were in partnership sharing profits and losses in the ratio of 2 : 1. They admitted Manya as a [1]
new partner. Manya brought ₹ 1,00,000 as her share of goodwill premium, which was entirely credited to
Puneet's capital account. On the date of admission, goodwill of the firm was valued at ₹ 3,00,000. Calculate the
new profit sharing ratio of Puneet, Deepak and Manya.

a) 2 : 2 : 1 b) 1 : 1 : 1

c) 3 : 2 : 1 d) 2 : 1 : 1
2. Which of the following is a charge against profit? [1]

a) Partners' Salary b) Interest on Partners' Capital

c) Interest on Partners' Loan d) Interest on Partners' Drawings

3. Money received in advance from shareholders before it is actually called up by the directors is: [1]

a) debited to calls in advance account b) credited to share capital account

c) credited to calls in advance account d) debited to share capital account

OR
The debentures which are payable on the expiry of a specified period either in lump-sum or in instalments during the
life time of the company are known as:

a) Convertible debentures b) Redeemable debentures

c) Secured debentures d) Specific coupon rate debentures

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4. S and T were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted U as a new partner [1]
in the firm. On U's admission there existed a provision for bad and doubtful debts of ₹ 7,000. It was decided to
write off ₹ 3,000 as bad debts. The remaining debtors were considered as good. The amount to be
debited/credited to Revaluation Account on account of the above treatment will be:

a) Debit ₹ 3,000 b) Debit ₹ 7,000

c) Debit ₹ 4,000 d) Credit ₹ 4,000

OR
Rita and Usha were partners in a firm sharing profits and losses in the ratio of 3 : 5. During the year Usha withdrew ₹
15,000 at the end of each month. Interest on drawings is to be charged @ 8% p.a. The average period for the
calculation of interest on drawings will be:

a) 4 1

2
months b) 6
1

2
months

c) 6 months d) 5
1

2
months

5. P, Q and R are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. For the year ended 31st March, [1]
2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were ₹
2,00,000; ₹ 1,00,000; ₹ 50,000 respectively. The necessary adjustment entry to rectify the error will be:

a) Debit Credit b) Debit Credit

Particulars Particulars
Amt. (₹) Amt. (₹) Amt. (₹) Amt. (₹)

P's Current P's Current

(A) Dr. 2,000 (C) Dr. 2,000
A/c A/c

To Q's To Q's
1,000 1,000
Current A/c Current A/c

To R's To R's
1,000 1,000
Current A/c Current A/c

c) Debit Credit d) Debit Credit

Particulars Particulars
Amt. (₹) Amt. (₹) Amt. (₹) Amt. (₹)

P's Current P's Current

(D) Dr. 3,000 (B) Dr. 3,000
A/c A/c

To Q's To Q's
2,000 2,000
Current A/c Current A/c

To R's To R's
1,000 1,000
Current A/c Current A/c

6. The debentures which do not have a specific charge on the assets of the company are called: [1]

a) Zero Coupon Rate Debentures b) Non-Convertible Debentures

c) Redeemable Debentures d) Unsecured Debentures

OR
Elite Ltd. issued 20,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. On issue of
these debentures, Loss on issue of debentures account was debited with ₹ 4,00,000. The premium on redemption of

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 debentures is:

a) ₹ 10,00,000 b) ₹ 4,00,000

c) ₹ 2,00,000 d) ₹ 6,00,000

7. Starbucks Ltd. issued 50,000 shares of ₹ 100 each payable ₹ 20 on application (on 1st May 2022); ₹ 30 on [1]

allotment (on 1st January 2023); ₹ 20 on first call (on 1st July 2022) and the balance on final call (on 1st
February 2023). Shiv, a shareholder holding 5,000 shares did not pay the first call on the due date. The second
call was made and Shiv paid the first call amount along with the second call. All sums due were received.
Total amount received on 1st February was:

a) ₹ 15,00,000 b) ₹ 16,00,000

c) ₹ 11,00,000 d) ₹ 10,00,000

8. Anu, Monu and Sonu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Monu died on 1st January, [1]
2022. Anu and Sonu will acquire Monu's share in the ratio of:

a) 3 : 2 b) 5 : 3

c) 5 : 2 d) 1 : 1
OR
Which of the following items cannot be recorded in the capital account of partners if the capital accounts of partners
are fixed?

a) Drawings b) Introduction of additional capital

c) Opening balance of capital d) Withdrawal of capital

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
Ankit and Vinod are partners sharing profits in the ratio of 3:2. Ankit is a non-working partner and contributes ₹
20,00,000 as his capital. Vinod is a working partner of the firm. The Partnership Deed provides for interest on capital @
8% p.a. and salary to every working partner @ ₹ 8,000 p.m. Profit before providing for interest on capital and partner’s
salary for the year ended 31st March, 2021, was ₹ 80,000.
9. How much interest on capital is payable to Ankit?

a) ₹ 50,000 b) ₹ 1,60,000

c) ₹ 80,000 d) ₹ 1,00,000
10. What is the amount of salary payable to Vinod?

a) ₹ 80,000 b) ₹ 30,000

c) ₹ 60,000 d) ₹ 96,000
11. If a fixed amount is withdrawn by a partner at the beginning of each month, interest on drawings on the total [1]
amount will be calculated for:

a) 5 1

2
months b) 6 months

c) 7 months d) 6
1

2
months
12. Excess value of net assets over purchase consideration at the time of purchase of business is: [1]

a) Debited to Goodwill Account b) Credited to Vendor's Account

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 c) Credited to the General Reserve Account d) Credited to Capital Reserve
13. Manmohan Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount payable [1]
per share was as follows:
On application ₹ 3; on allotment ₹ 4 and on first and final call ₹ 3.
Applications were received for 1,45,000 equity shares. Applications for 20,000 equity shares were rejected and
remaining applicants were allotted shares on a pro-rata basis. Excess application money received with
application was adjusted towards sums due on allotment and first and final call. Amount credited to calls-in-
advance account was:

a) ₹ 25,000 b) Nil

c) ₹ 2,25,000 d) ₹ 1,75,000
14. K and L were partners in a firm. Their partnership deed provided that interest on partner's drawings will be [1]
charged @ 12% per annum. Interest on L's drawings for the year ended 31.03.2022 was calculated at ₹ 900.
The necessary journal entry for charging interest on L's drawings will be:

a) ₹ b) Profit and Loss ₹

L's Capital/Current A/c Dr. Dr.
900 Appropriation A/c 900

To Interest on Drawings ₹ To Interest on Drawings ₹

A/c 900 A/c 900

c) ₹ d) ₹
Interest on Drawings A/c Dr. Interest on Drawings A/c Dr.
900 900

To Profit and Loss ₹ To Partner's ₹

Appropriation A/c 900 Capital/Current A/c 900

15. Monu and Sonu were partners sharing profits in the ratio of 2 : 3. They admitted Ram as a new partner for 3

5
th [1]
share in profits which he acquired 1

5
th from Monu and 2

5
th from Sonu. The new profit sharing ratio of Monu,
Sonu and Ram will be:

a) 3 : 1 : 1 b) 2 : 3 : 1

c) 2 : 3 : 3 d) 1 : 1 : 3
OR

Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. On 30th June,
2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of
death was to be calculated on the basis of average profit of last three years less ₹ 10,000.
Profits for the last three years were:

Year ended Profits/Loss (₹)

31st March, 2020 1,20,000

31st March, 2021 (50,000)

31st March, 2022 1,70,000

Khushi's share of profit till the date of her death was:

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 a) ₹ 35,000 b) ₹ 9,583

c) ₹ 28,750 d) ₹ 8,750
16. At the time of dissolution of a partnership firm, a creditor worth ₹ 90,500 took away stock worth ₹ 77,775 in full [1]
settlement. Which of the following will be the accounting entry for the same?

a) Particulars L.F. Dr. (₹) Cr. (₹) b) Particulars L.F. Dr. (₹) Cr. (₹)

Creditor A/c Dr. 77,775 Realisation A/c Dr. 77,775

To Bank A/c 77,775 To Bank A/c 77,775

c) No Entry d) Particulars L.F. Dr. (₹) Cr. (₹)

Realisation A/c Dr. 90,500

To Bank A/C 90,500

17. Anu, Manu, Tanu and Kanu were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2 : 1. They [3]
decided to share profits and losses in the ratio of 4 : 2 : 3 : 1 with effect from 1st April, 2022. On this date,
goodwill of the firm was valued at ₹ 1,20,000 and General Reserve appeared in the books at ₹ 36,000.
Pass necessary journal entries for the above transactions. Show your workings clearly.
18. X and Y are partners in a firm sharing profits and losses in the ratio of 2 : 1. Their fixed capitals are ₹ 5,00,000 [3]
and ₹ 3,00,000 respectively. Interest on capital is allowed @ 9% p.a. while interest on drawings is charged @
12% p.a. X is allowed a salary of ₹ 4,000 per month. Interest on Y's loan of ₹ 2,00,000 is to be provided @ 6%

p.a. During the year ended 31st March, 2023, X's drawings were ₹ 60,000 and Y's drawings were ₹ 72,000. 5%
of the Net Profit is to be transferred to General Reserve. Incomplete Profit & Loss Appropriation Account for

the year ended 31st March, 2023 prepared by the firm is given below:
PROFIT & LOSS APPROPRIATION ACCOUNT
for the year ended 31st March, 2023

Dr. Cr.

Particulars ₹ Particulars ₹

To Interest on Capital: By Profit & Loss A/c:

X's Current A/c ? Net Profit b/d ?

Y's Current A/c ? ? By Interest on Drawings:

To Salary: X's Current A/c ?

X's Current A/c ? Y's Current A/c ? ?

To General Reserve 15,000

To Profit transferred to:

X's Current A/c ?

Y's Current A/c ? ?

? ?

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 Complete the Profit & Loss Appropriation Account of X and Y for the year ended 31st March, 2023.
OR
A and B are partners in a firm sharing profits in the ratio of 3: 2. On 31st March, 2014, the balance sheet of the firm
was as follows
Balance Sheet
as at 31st March, 2014

Liabilites Amt(Rs) Assets Amt(Rs)

Capital A/cs Sundry Assets 80,000

A 60,000

B 20,000 80,000

80,000 80,000

The profit of Rs 80,000 for the year ended 31st March, 2014 was divided between the partners without allowing
interest on capital @12% per annum and a salary to A at Rs 1,000 per month. During the year A withdrew Rs 10,000
and B Rs 20,000.
Pass a single journal entry to rectify the error.
19. Vimal Ltd. purchased assets worth ₹ 5,00,000 and took over liabilities of ₹ 1,00,000 of Kapil Ltd. for a purchase [3]
consideration of ₹ 4,50,000. Vimal Ltd. paid one third of the amount by cheque and balance was settled by
issuing 11% debentures of ₹ 100 each at a premium of 20%.
Pass necessary journal entries in the books of Vimal Ltd. for the above transactions.
OR
Samprag Ltd has an authorised capital of ₹ 20,00,000 divided into equity shares of ₹ 10 each. The company invited
applications for issuing 60,000 shares. Applications for 58,000 shares were received.
All calls were made and were duly received except the final call of ₹ 3 as share on 2,000 shares. These shares were
forfeited.
i. Present the share capital m the balance sheet of the company as per Schedule III of the Companies Act, 2013.
ii. Also prepare ‘Notes to accounts’ for the same.
20. Kabir and Farid are partners in a firm sharing profits in the ratio of 3 : 1 on 1-4-2019 they admitted Manik into a [3]
partnership for th share in the profits of the firm. Manik brought his share of goodwill premium in cash.
1

Goodwill of the firm was valued on the basis of 2 years purchase of the last three years average profits. The
profits for the last three years were:

2016-17 ₹ 90,000

2017-18 ₹ 1,30,000

2018-19 ₹ 86,000

During the year 2018-19 there was a loss of ₹ 20,000 due to fire which was not accounted for while calculating
the profit.
Calculate the value of goodwill and pass the necessary journal entries for the treatment of goodwill.
21. K Ltd. took over the assets of ₹ 15,00,000 and liabilities of ₹ 5,00,000 of P Ltd. for a purchase consideration of ₹ [4]
13,68,500. ₹ 25,500 were paid by issuing a promissory note in favour of P Ltd. payable after two months and the

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 balance was paid by issue of equity shares of ₹ 100 each at a premium of 25%. Pass necessary Journal entries for
the above transactions in the books of K Ltd.
22. Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their [4]
Balance Sheet on 31st March, 2023 was as follows:
Balance Sheet of Archana, Vandana and Arti as at 31st March, 2023

Liabilities Amount (₹) Assets Amount (₹)

Capitals: Investments 80,000

Archana 80,000 Plant 1,00,000

Vandana 70,000 Stock 40,000

Arti 60,000 2,10,000 Debtors 50,000

General Reserve 30,000 Cash at Bank 30,000

Creditors 60,000

3,00,000 3,00,000

The firm was dissolved on the above date.

i. Assets were realised as follows:
Debtors - ₹ 40,000
Stock - ₹ 50,000
Plant - ₹ 60,000
ii. 25% of the Investments were taken over by Vandana at ₹ 18,000. Remaining Investments were taken over by
Archana at 10% less than its book value.
iii. Expenses of realisation ₹ 20,000 were paid by Arti.
Prepare Realisation Account.
23. Dharam Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount was payable as [6]
follows:
On Application and Allotment - ₹ 4 per share,
On First call - ₹ 3 per share,
On Second and Final call - balance.
Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro-rata basis and
excess money received with applications was transferred towards sums due on first call. Vaishali who was
allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call
was made. The amount due on second call was also received except on 1,000 shares, applied by Manisha. Her
shares were also forfeited. All the forfeited shares were reissued to Manoj for ₹ 9,000 as fully paid up. Pass
necessary Journal entries in the books of Dharam Ltd. for the above transactions.
OR
Radha Mohan Ltd. invited applications for issuing 4,00,000 equity shares of Rs. 50 each. The amount was payable as
follows
On application - Rs. 15 per share
On allotment - Rs. 25 per share
On first and final call - Rs. 10 per share

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 Applications for 6,00,000 shares were received and pro-rata allotment was made to all the applicants on 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 allotment and
surplus if any, will be refunded. Vibhuti, who was alloted 6,000 shares out of the group applying for 4,00,000 shares
did not pay the allotment money and his shares were forfeited immediately. Afterwards, these forfeited shares were
reissued at Rs. 30 per share fully paid up. Later on, first and final call was made. 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 reissued at Rs. 60 per share fully paid up.
Pass necessary journal entries in the books of Radha Mohan Ltd for the above transactions.

24. Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3 : 2. On 31st March 2022 their [6]
Balance Sheet was as follows :
Balance Sheet of Sanjana and Alok as on 31-3-2022

Amount Amount
Liabilities Assets
(₹) (₹)

Creditors 60,000 Cash at bank 1,66,000

Workmen's Compensation Fund 60,000 Debtors 1,46,000

Less: Provision for doubtful debts 2,000 1,44,000

Capitals: Stock 1,50,000

Sanjana 5,00,000 Investments 2,60,000

Alok 4,00,000 9,00,000 Furniture 3,00,000

10,20,000 10,20,000

On 1st April 2022, they admitted Nidhi as a new partner for

th
1

4
share in the profits on the following terms:
i. Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share
of goodwill premium, half of which was withdrawn by the old partners.
ii. Stock was to be increased by 20% and furniture was to be reduced to 90%.
iii. Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
iv. Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit
sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm on
Nidhi’s admission.
OR
Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March,
2019 was as under:
Balance Sheet of Prem, Kumar and Aarti
as at 31st March, 2019

Liabilities ₹ Assets ₹

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 Capitals: Building 25,000

Prem 30,000 Plant and Machinery 15,000

Kumar 20,000 Investments 10,000

Aarti 20,000 70,000 Debtors 10,000

General Reserve 8,000 Stock 5,000

Investment Fluctuation Reserve 2,000 Cash 25,000

Sundry Creditors 10,000

90,000 90,000

On the above date, Kumar retired. The terms of retirement were:

i. Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000
ii. Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000
iii. Investments were sold for ₹ 11,000.
iv. There was an unrecorded creditor of ₹ 7,000.
v. An amount of ₹ 30,000 was paid to Kumar in cash which was contributed by Prem and Aarti in the ratio of 2 : 1.
The balance amount of Kumar was settled by accepting a Bill of Exchange in favour of Kumar.
Prepare the Revaluation Account, Capital Accounts of partners and the Balance Sheet of the reconstituted firm.
25. Anita, Gaurav and Sonu were partners in a firm sharing profits and losses in proportion to their capitals. Their [6]
Balance Sheet as at 31st March, 2019 was as follows:

Balance Sheet of Anita, Gaurav and Sonu as at 31st March, 2019

Liabilities Amount (₹) Assets Amount (₹)

Capitals: Land and Building 5,00,000

Anita 2,00,000 Investments 1,20,000

Gaurav 2,00,000 Debtors 1,50,000

Sonu 1,00,000 5,00,000 Less: Provision for doubtful debts 10,000 1,40,000

Investment Fluctuation Fund 40,000 Stock 1,00,000

General Reserve 30,000 Cash at Bank 1,70,000

Creditors 4,60,000

10,30,000 10,30,000

On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It
was agreed to revalue the assets and reassess the liabilities as follows:
i. Goodwill of the firm was valued at ₹ 3,00,000 and Anita’s share of goodwill was adjusted in the capital
accounts of the remaining partners, Gaurav and Sonu.
ii. Land and Building was to be brought up to 120% of its book value.
iii. Bad debts amounted to ₹ 20,000. A provision for doubtful debts was to be maintained at 10% on debtors.
iv. Market value of investments was ₹ 1,10,000.

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 v. ₹ 1,00,000 was paid immediately by cheque to Anita out of the amount due and the balance was to be
transferred to her loan account which was to be paid in two equal annual instalments along with interest @
10% p.a
Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm on
Anita’s retirement.
26. i. Anand Ltd. purchased machinery worth ₹ 3,15,000 from Mahima Ltd. The payment was made by issue of [6]
10% debentures of ₹ 100 each issued at a discount of 10%.
Pass the necessary journal entries for purchase of machinery and issue of debentures in the books of Anand
Ltd.
ii. Manas Ltd. issued 10,000, 7% debentures of ₹ 100 each at a premium of 10% redeemable at a premium of
10% after 6 years.
Pass the necessary journal entries in the books of Manas Ltd. regarding issue of debentures.
Part B :- Analysis of Financial Statements
27. Identify the correct statement: [1]
i. Main purpose of analyzing the financial statements is to study the trends.
ii. Rent paid is the part of 'Revenue from Operations'.
iii. Income tax is the part of 'Revenue from Operations'.
iv. Provision for tax is shown as other expense in statement of profit and loss.

a) Option (iv) b) Option (iii)

c) Option (i) d) Option (ii)

OR
Which of the following is the element of financial statements?

a) Balance Sheet b) Fund flow statement

c) Both balance sheet and profit and loss a/c d) Profit & Loss A/c
28. If the Operating Ratio of Pathway Ltd. is 30%, its Operating Profit Ratio will be: [1]

a) 130% b) 30%

c) 70% d) 100%
29. Cash received from royalties will be considered which type of activity from the following while preparing [1]
Cash Flow Statement?

a) Both Financing and Investing Activity b) Operating Activity

c) Investing Activity d) Financing Activity

OR
Paid ₹ 7,00,000 to acquire shares in K.L. Ltd. and received a dividend of ₹ 20,000 after acquisition. These
transactions will result in

a) Cash used in Investing Activities ₹ b) Cash generated from Financing Activities ₹

7,00,000. 6,80,000.

c) Cash used in Investing Activities ₹ d) Cash generated from Financing Activities ₹

6,80,000. 7,20,000.

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30. The transaction Acquisition of machinery by issue of equity shares of ₹ 5,00,00,000 will result in: [1]

a) Cash outflow of ₹ 5,00,00,000 from b) No flow of cash

financing activities

c) Cash inflow of ₹ 5,00,00,000 from financing d) Cash outflow of ₹ 5,00,00,000 from

activities investing activities
31. It is the process of identifying the financial strengths and weaknesses of the firm by properly establishing [3]
relationships between the various items of the Balance Sheet and the Statement of Profit and Loss. Identify the
process and state two objectives of the process identified.
32. These ratios are calculated for measuring the efficiency of operations of business based on effective utilisation of [3]
resources.
a. Identify the types of ratios being discussed above.
b. Explain any two ratios of the types of ratios identified in (a) above.
33. From the following information, prepare a Comparative Statement of Profit and Loss of Y Ltd. for the year [4]
ended 31st March, 2022:

2021-22 2020-21
Particulars
(₹) (₹)

Revenue from Operations 40,00,000 30,00,000

Other Income 10,00,000 10,00,000

Employees Benefit Expenses 5,00,000 5,00,000

Othere Expenses 35,00,000 20,00,000

Tax Rat @ 50%

OR

From the following information, prepare a Comparative Statement of Profit and Loss for the year ended 31st March,
2022 and 2023:

2022 - 23 2021 - 22
Particulars Note No.
(₹) ₹

Revenue from operations 10,00,000 8,00,000

Employee benefit expenses 2,50,000 1,00,000

Other expenses 5,50,000 4,00,000

Tax rate 50%

34. The following is the Balance Sheet of R.M. Ltd. as at 31st March, 2017. Prepare a Cash Flow Statement: [6]

R.M. Ltd.

Balance Sheet as at 31st March, 2017

31.3.2017 31.3.2016
Particulars Note No.
₹ ₹

I- Equity and Liabilities:

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1. Shareholder's Funds:

(a) Share Capital 15,00,000 10,00,000

(b) Reserve and surplus

7,50,000 6,00,000
(Balance in Statement of Profit and Loss)

2. Non-Current Liabilities:

Long-term Borrowings 1 1,00,000 2,00,000

3. Current Liabilities:

(a) Trade Payables 1,00,000 1,10,000

(b) Short-term Provision 2 95,000 80,000

Total 25,45,000 19,90,000

II- Assets:

1. Non-Current Assets:

(a) Fixed Assets

(i) Tangible Assets 3 10,10,000 9,00,000

(ii) Intangible Assets 4 2,80,000 2,00,000

(b) Non-Current Investments: 5,00,000 -

2. Current Assets:

(a) Inventories 1,80,000 1,00,000

(b) Trade Receivables 2,00,000 1,50,000

(c) Cash and Cash Equivalents 5 3,75,000 6,40,000

Total 25,45,000 19,90,000

Notes to Accounts:

31.3.2017 31.3.2016
Note No. Particulars
₹ ₹

1. Long-term Borrowings:

9% Debentures 1,00,000 2,00,000

1,00,000 2,00,000

2. Short-term Provisions:

Provision for Tax 95,000 80,000

95,000 80,000

3. Tangible Assets:

Plant and Machinery 12,10,000 11,40,000

Accumulated Depreciation (2,00,000) (2,40,000)

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 10,10,000 9,00,000

4. Intangible Assets:

Goodwill 2,80,000 2,00,000

2,80,000 2,00,000

5. Cash and Cash Equivalents:

(i) Cash in Hand 70,000 3,50,000

(ii) Bank Balance 3,05,000 2,90,000

3,75,000 6,40,000

Additional information:
i. During the year, a machine costing ₹ 80,000 on which accumulated depreciation was ₹ 50,000 was sold for ₹
30,000.
ii. 9% Debentures were released on 31st March, 2017.

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