CLASS 12 ACCOUNTANCY

SAMPLE QUESTION PAPER-2

MARKING SCHEME
Time Allowed: 3 Hours Max. Marks:80
Q.N PART A Mark
o (Accounting for Partnership Firms and Companies s
1.

a) 3:3:1 OR (B) 19 : 11 : 10 1

2. B 1
3.

d) ₹ 5,200 1
Explanation:
(Rs 7000x800) – 400 =₹ 5200
1000
OR
4.
A) Capital Reserve
a) Chaman’s Capital A/c ……..Dr. ₹ 4,000 1
Anmol’s Capital A/c ……….Dr. ₹ 2,000
To Janak’s Capital A/c ₹6,000
Explanation:
Calculation of Gain/Sacrifice of Partners:
Janak Chaman Anmol
New Profit Share 2/5 2/5 1/5
Old Profit Share 3/62/61/6
Difference – 3/30 2/ 30 1/30
Sacrifice Gain Gain
Compensation payable by Chaman to Janak = ₹ 60,000 × 2/30 = ₹ 4,000.
Compensation payable by Anmol to Janak = ₹ 60,000 × 1/30 = ₹ 2,000.

OR
d)₹ 16000 and ₹ 8,000
Explanation:
Total interest on capital = (₹ 2,00,000 + ₹ 1,00,000) × 10/100 = ₹ 30,000. However, profit
available = ₹ 24,000.
Therefore, interest on capital will be given ₹ 24,000 divided in the ratio of their interest on
capital, i.e., 2 : 1.
Share of each partner in interest on capital will be:
A—₹ 24,000 × 2/3 = ₹ 16,000; B—₹ 24,000 × 1/3 = ₹ 8,000.
5.

B 1
6.

c) 30,00,000 1
Explanation: Total face value = 1000
Discount = 1000 10% = 100
Value remain for allotment = 1000 - 300 - 100 = 600
Amount Received on Allotment ₹.30,00,000 i.e. 5,000x 600 = 30,00,000
OR
 a) All of these
Explanation: All of these
7.

a) Both A and R are true and R is the correct explanation of A. 1

8.

c) ₹ 2,40,000 OR D) ₹ 19,500 and ₹ 16,500 1

9.

d) It is very easy to place an exact value on goodwill. 1

10.

d) ) Interest on Partner’s Capital 1

11.

12.
C 1
c) Bank A/c …………………………Dr. 50,500 1
Calls-in-arrear A/c (500x2)……Dr. 1,000
To Equity Share Fi₹t Call A/c (25000x2) 50,000
To Calls-in-advance A/c (375x4) 1,500
13.

c) 2,000 shares 1
Explanation:
Forfeited share A/c (3000x4)=₹ 12000
No.of shares forfeited =3000
No. of shares reissued=y
Amount transferred to Capital Reserve=
(₹ 12,000 x y)- discount(yx1)=₹ 6000
3000
(₹4y-1y)=₹ 6000
₹3y=₹ 6000
14.
Y= 2000 shares
(c) ₹ 500 1
15.
Explanation: A's share in profit = 1,500 = ₹ 500
c) ₹6,000 1
Explanation:
Quarterly drawings of Ajay were=y
Y x 4 x 6/12 x 10/100=₹1200
2y=₹12000
y=₹ 6000
OR
c) 10% p.a.
Explanation:
₹10000 x12 x R/100 x 6/12 = ₹ 6000
600 x R= ₹ 6000
R = 10%
16.

B 1
17.

Journal 3
Date Particulars L.F Debit Credit
Amount(₹ Amount(₹
) )
 X’s Capital A/c……………… Dr 30,000
Y’s Capital A/c ………………Dr 20,000
Z’s Capital A/c ………………Dr 10,000
To Goodwill A/c 60,000
(Goodwill written off)

X’s Capital A/c ….……………Dr

Z’s Capital A/c ……………….Dr 14,000
To Y’s Capital A/c 14,000
(Adjustment of Y’s share of 28,000
goodwill)
Working Notes:
WN1: Calculation of Gaining Ratio
X :Y :Z=3:2:1(Old ratio)
X :Z = 2:1(New ratio)
Gaining Ratio = New Ratio - Old Ratio
X's Gain=2/3−3/6=1/6
Z's Gain = 1/3 -1/6 = 1/6
X:Z=1:1.
Y’s share of goodwill= ₹ 84000*2/6= ₹ 28000
18.

PROFIT AND LOSS APPROPRIATION ACCOUNT 3

for the year ended 31stMarch, 2023
Dr Cr
Particulars ₹ Particulars ₹
To Salary A/c (Govind) 3,60,000 By Profit & Loss 9,60,000
To Salary A/c (Kavita) 50,000 A/c(Note)
To Commission A/c (Govind) (₹ 9,60,000 96,000
*10/100)
To Commission A/c (Kavita) [(₹ 9,60,000 -
₹ 96,000) *8/108] 64,000
To Profit transferred to Capital A/cs:
Govind:1,95,000
Kavita: 1,95,000

3,90,000

9,60,000 9,60,000

Note: Salary to partners is an appropriation of profit, hence is debited in Profit & Loss
Appropriation Account. Thus,profit transferred from Profit & Loss Account to Profit &
Loss Appropriation Account would be ₹ 9,60,000 [i.e., ₹5,50,000 + ₹ 3,60,000 (Salary
to Govind) + ₹ 50,000 (Salary to Kavita)].
OR

TABLE SHOWING ADJUSTMENTS

A B C Total
 Dr Cr Dr Cr Dr Cr Dr Cr
Profit reversed 60000 60000 30000 150000
Salary 6,000 6,000 12000
Commission 18000 18,000
Profit guaranteed 50,000 50,000
to B
Remaining Profit
70,000
will be divided
between A and C
in
3:2

42,000 28,000 70,000

60000 48000 60000 56000 30000 46,000 150000 150000
Dr Cr Dr Cr Dr Cr
(Dr.) (Dr.) (Cr.)
12,000 4,000 16,000

Adjustment Entry
Date Particulars L.F Dr.(₹) Cr.(₹)
2023 A's Capital A/c……………..Dr. 12,000
March 31 B's Capital A/c……………....Dr. 4000
To C's Capital A/c 16000
(Adjustment for omissions corrected and
provided for in the books)

W.N:
Profit remaining after allowing salary and commission will be
₹ 1,50,000 - ₹ 12,000 – ₹ 18,000 = ₹ 1,20,000
B's Share = 1,20,000*3/8 = ₹ 45,000
Since it is less than guaranteed amount of ₹ 50,000 he will be entitled to
₹ 50,000.

19.

Case- i 3
Journal
Date Particulars L. Debit Credit
F (₹) (₹)
Bank A/c......................................Dr. 1,05,000
To Debenture Application & 1,05,000
Allotment A/c
( Being application money received.)

Debenture Application & Allotment A/c...Dr. 1,05,000

Loss On Issue Of DebentureA/c…….....Dr. 10,000
To 7% Debenture A/c 1,00,000
To Security Premium Reserve A/c
 To Premium OnRedemption Of
Debenture A/c
( Being application money transferred.) 5,000

Case- ii

Journal

Dat Particulars L.F Debit Credit

e (₹) (₹)
Bank A/c.............................Dr. 95,000
To Debenture Application &Allotment A/c 95,000
( Being application money received.)

Debenture Application & Allotment A/c.....Dr. 95,000

Discount On Issue Of Debenture A/c........Dr. 5,000
To 7% Debenture A/c 1,00,000
( Being application money transferred.)

OR

Books of the Madhur Ltd.

JOURNAL
Date Particulars L.F Debit Credit
(₹) (₹)
(i) Sundry Assets A/c…………………….. Dr. 3,90,000
Goodwill A/c (Balancing Figure)……… Dr. 50,000
To Liabilities A/c 40,000
To Rasova Ltd. 4,00,000
(Assets and Liabilities of Rasova Ltd. taken over)

(ii) Rasova Ltd………………………….… Dr. 4,00,000

80,000
To Bank A/c
2,00,000
To Equity Share Capital A/c
(2,000 × ₹ 100)
1,20,000
To Securities Premium Reserve A/c
(20% Payment made by cheque and balance settled
by issue of 2.000 equityshares at a premium of 60
%)

Working Note:
₹
Total Amount Payable 4,00,000
Less: Payment made by Cheque 80,000
3,20,000
 Number of Equity Shares issued =3,20,000= 2,000 shares
160
20.

Goodwill = Super Profit x Number of Years of Purchase 3

Normal Profit = Capital Employed x Normal Rate Return
100
= 50,000 x 15/100= ₹ 7,500
Average Profit = ₹ 16,000
Super Profit = Average Profit - Normal Profit
= 16,000 - 7,500 = ₹ 8,500
Number of yea₹' purchase = 4
Goodwill of firm = 8,500x 4 =₹ 34,000
21.

In the Books of Apurva Ltd Balance sheet as at 1 st April 2022 1

Particulars Not Amt(₹) +
e 3=4
No.
I EQUITY AND LIABILITIES
1) Shareholders fund
a) Share capital 1 6,77,000

Notes to Accounts
1. Share capital
Authorised share capital: 10,00,000
1,00,000 Equity shares of ₹ 10 each
Issued share capital:
9,00,000
90,000 Equity shares of ₹ 10 each
Subscribed share capital
Subscribed but not fully paid up
84,500 shares of ₹ 10 each;₹ 8 called up: 6,76,000
Less: calls in arrears (1000x2)(2000)
6,77,000
6,74,00
0
22.
Add: forfeited shares(500x6)3000
Journal 4
Dat Particulars L.F Dr. (₹.) Cr. (₹.)
e
i) Gourav's Capital A/c.............Dr. 3,00,000
To Realisation A/c 3,00,000
(Being 50% of machinery taken over by partner.)
No entry for Stock taken by Creditor

Bank A/c...........................Dr.
ii) 3,92,000
To Realisation A/c
(Being Land and Building sold.)
3,92,000

iii) Realisation A/c………......Dr 76,000

a) To Bank A/c 76,000
(Being payment made to creditor₹)
 Vaibhav's Capital A/c......Dr.
To Realisation A/c
(Being assets taken over by partner.)

Realisation A/c 17,000

To Bank A/c
b) (Being bank loan paid along with interest ₹.
21,000.) 17,000
23.

JOURNAL 3,21,000
Journal 6
Date Particulars L.F Dr. (₹.) Cr. (₹.)
1. Bank A/c (1,00,000 x 10) ……Dr. 10,00,000
To Equity Share Application 10,00,000 ½
and Allotment A/c
(Being application money received on 1,00,000
shares)

2. Equity Share Application and Allotment

A/c……………………Dr 10,00,000
To Equity Share Capital A/c 4,00,000
(80,000 x 5) 1
To Securities Premium 4,00,000
Reserve A/c (80,000 x 5)
To Equity Share First and 1,00,000
Final Call A/c
To Bank A/c (10,000 x 10) 1,00,000
(Being application money transferred to share
capital account and excess money is adjusted in
final call account)
3. 8,00,000
Equity Share First and Final Call A/c.Dr 4,00,000
To Equity Share Capital A/c
(80,000 x 5) 4,00,000
To Securities Premium
Reserve A/c (80,000x 5) (Being
amount due on first and final call)
4.
6,86,000
Bank A/c ……………………Dr.
6,86,000
To Equity Share First and ½
Final Call A/c
(Being amount received on first and final call)
5. 16,000
Equity Share Capital A/c …….. Dr.
(1,600 x 10) 8,000
Securities Premium Reserve A/c (1,600 x 5) 1
…………………….. Dr. 10,000
To Equity Share Forfeiture A/c 14,000
To Equity Share First and
 Final Call A/c
(Being Kumar's share forfeited)

Bank A/c (1,600 x 9) ………..Dr.

1
Equity Share Forfeiture A/c ….Dr.
To Equity Share Capital A/c
(1,600 x10)
(Being forfeited shares reissued for
₹. 9 as fully paid up)
6. 14,400
Equity Share Forfeiture A/c… Dr. 1,600
To Capital Reserve A/c 16,000
(Being excess amount on forfeiture transferred to
capital reserve)
1

Working Notes:-
1. Computation Table
Categorie Shares Shares Money Money Money Equity Excess
s Applied Allotte Received Transferre Transferre Share Applicatio
d on d to Share d to First n Money
Applicatio Capital @ Securities / and Refunded
n @ ₹. 10 ₹. 5 each Premium Final 1
each Reserve Call A/c
I 10,000 - 1,00,000 - - 1,00,000
II 90,000 80,000 9,00,000 4,00,000 1,00,00
0
TOTAL 1,00,00 80,000 10,00,000 4,00,000 4,00,000 1,00,00 1,00,000
0 0

2. Calculation of Amount not Received on First and Final Call:-

Shares allotted to Kumar Shares Amount received on 1,800 shares @ ₹. 10 each = ₹

18,000
Amount transferred to share capital account (1,600 x 5)= ₹ 8,000
Amount transferred to securities premium account (1,600 x5) = ₹ 8,000
Excess money received on application = ₹ 2,000
Amount due on first and final call for 1,600 shares of Kumar @ ₹. 10 each = ₹16,000
Amount not received on securities premium =₹8,000
Amount not received on first and final call= ₹ 6,000
₹ 14000
3. Calculation of Amount Credited in Share Forfeiture Account:-

Amount received on application and allotment = ₹18,000

Less: Amount received for securities premium = ₹ 8,000
Amount to be credited in share forfeiture account = ₹10,000
 OR

a. Journal
Date Particulars L.F Dr. Cr.
(₹.) (₹.)
On Forfeiture of Shares:

Share Capital A/c (200 × ₹ 8) .......Dr. Securities 1,600

Premium A/c (200×₹ 2) ..Dr. 400
To Share Allotment A/c (WN 1 & 2) 920
To Share First Call A/c (200 × ₹ 3) 600
To Forfeited Shares A/c (240 × ₹ 2) 480
(200 shares forfeited for non payment of allotment
money and first call)

On Re-issue of Shares:
Bank A/c (100 × ₹ 9) …………….Dr. Forfeited Shares 900
A/c (100 × ₹ 1) ...Dr. 100
To Share Capital A/c 1,000
(100 Forfeited shares re-issued as fully paid for ₹ 9 per 6
share) (3+3
= 6)
140
Forfeited Shares A/c (₹240 – ₹100) Dr. 140
To Capital Reserve A/c (Transfer of gain on re-issue to
Capital Reserve)

Working Notes:
1. No. of Shares allotted to Ramesh = 200 shares.
2. Calculation of the amount due but not paid on allotment: ₹
A. Application money received on shares applied (240 × ₹₹ 2) 480
B. Less: Application money due on shares allotted (200 × ₹ 2) 400
C. Excess Application money adjusted on allotment 80

D. Allotment money due on shares allotted (200 × ₹ 5) =₹1,000

Less: Excess Application money adjusted (C) ₹80
Allotment money due but not received ₹ 920

b. Journal
Date Particulars L.F Dr. Cr.
(₹.) (₹.)
On Forfeiture of Shares:

Share Capital A/c (250 × ₹ 80) …...Dr.Securities 20,000

Premium A/c (250 × ₹10)Dr. 2,500
To Shares Allotment A/c (250×₹ 30) 7,500
To Shares First Call A/c (250 ×₹ 30) 7,500
 To Forfeited Shares A/c (250 ×₹ 30) (250 shares 7,500
forfeited for non payment of allotment and first call
money)

On Re-issue of Shares:
Bank A/c (100 × ₹ 90) ...................Dr. 9,000
To Share Capital A/c (100 × ₹ 80)
To Securities Premium A/c 8,000
(100×₹10) 1,000
(100 shares reissued as ₹ 80 paid-up for ₹ 90 per
share)
3000
Forfeited Shares A/c (₹100 x 30) Dr.
3000
To Capital Reserve A/c
(Transfer of gain on re-issue to Capital Reserve)
24.

IN THE BOOKS OF THE FIRM 6

JOURNAL ENTRIES
Date Particulars L.F Dr. Cr.
(₹.) (₹.)
2023 Profit & Loss A/c………………..…… Dr. 10,000
April 1 To A's Capital A/c 4,000
To B's Capital A/c 6,000
(Transfer of credit balance of P & L A/c among old
partners in old profit sharing ratio)

Provision for Doubtful Debts A/c…… Dr. Building A/c

…………………………..Dr. 2,000
To Revaluation A/c 20,000
(Increase in the value of Assets recorded through 22,000
revaluation account)

Revaluation A/c……………………. Dr.

To Furniture A/c 7,000
To Damage Payable A/c (Decrease in the 5,000
value of Furniture and provision made for damages 2,000
recorded through revaluation account)

Revaluation A/c ………………….Dr.

To A's Capital A/c
To B's Capital A/c
15,000
(Transfer of profit on revaluation among old partners
6,000
capital account in old profit sharing ratio)
9,000

Bank A/c …………………………….Dr.

To C's Capital A/c
To Premium for Goodwill A/c (Amount for
Capital and Premium for Goodwill brought in cash by
84,000
C)
60,000
 24,000
Premium for Goodwill A/c …………..Dr.
To B's Capital A/c
(Whole of Premium for Goodwill credited to B's
Capital Account) 24,000
24,000
A's Current A/c ……………………..Dr.
To A's Capital A/c
(Shortage of capital debited to Current A/c)
10,000
B's Capital A/c ……………………….Dr. 10,000
To B's Current A/c
(Excess capital credited to Current A/c)
24,000
24,000

Working Notes:
1.
REVALUATION ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Furniture A/c 5,000 Provision for Doubtful Debts A/c Building
To Damage Payable A/c 2,000 A/c 2,000
To profit transferred to: 20,000
To A's Capital A/c
6,000
15000 22,000
To B's Capital A/c 9,000
22,000

2. PARTNERS' CAPITAL ACCOUNTS

Dr. Cr.
Particulars A (₹) B (₹) C (₹) Particulars A (₹) B (₹) C (₹)
To Balance
c/d 1,10,000 1,44,000 60,000 By Balance b/d
1,00,00 1,05,000
By Profit & Loss 0
A/c
6,000
By Revaluation 4,000
A/c
 By Bank A/c 6,000 9,000

By Premium for
Goodwill A/c

60,000

By Balance b/d
24,000
By A's Current
A/c

1,10,000 1,44,000 60,000 1,10,00 1,44,000 60,000

0
To B's
Current A/c 24,000 1,10,00 1,44,000 60,000
0
To Balance
c/d
1,20,000 1,20,000
60,000 10,000

1,20,000 1,44,000 60,000 1,20,00 1,44,000 60,000

0

OR
(a)
Dr. REVALUATION ACCOUNT Cr.
Particulars ₹ Particulars ₹
To Building A/c 1,00,00 By Land A/c 1,20,000
To Furniture A/c 0 By Loss transferred to:
To Provision for Doubtful Debts A/c (₹ 15,000 20,000 Kushal’s Capital A/c
– ₹ 10,000) 3,000
5,000 Kumar’s Capital A/c 5,000
1,25,00 1,000 1,25,000
0 Kavita’s Capital A/c
1,000

(b)
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr

Particulars Kushal Kumar Kavita Particulars Kushal Kumar Kavita

To By Balance
Revaluation 3,000 1,000 1,000 b/d 3,00,000 2,80,000 3,00,000
A/c (Loss)
By General
To Kavita’s Reserve A/c
Capital A/c 6,000 2,000 … 72,000 24,000 24,000
—Goodwill By Kushal’s
(WN 2) Capital
A/c(Goodwill)
To
 Cash/Bank ... ... 33,100 By Kumar’s ... ... 6,000
A/c (10%) Capital A/c

To Kavita’s By Kushal’s
Loan A/c ... ... 2,97,900 Current A/c
(90%) (Balancing ... ... 2,000
Figure)
To Kumar’s
Current A/c ... ...
(Balancing 1,35,00
Figure) 0 1,35,000 ... ...

To Balance 4,98,000 1,66,00 ...

c/d(WN 1) 0

5,07,000 3,04,00 3,32,000 5,07,000 3,04,00 3,32,000

0 0

Working Notes:
1. Adjustment of Capital:
Kushal’s Capital (before adjustment of capital) = ₹ 3,63,000
(₹ 3,00,000 + ₹ 72,000 – ₹ 3,000 – ₹ 6,000 )
Kumar’s Capital (before adjustment of capital) = ₹ 3,01,000
(₹ 2,80,000 + ₹ 24,000 – ₹ 1,000 – ₹ 2,000)
₹ 6,64,000

Kushal’s adjusted capital = ₹ 6,64,000 × 3/4 = ₹ 4,98,000

Kumar’s adjusted capital = ₹ 6,64,000 × 1/4 = ₹ 1,66,000

2. Kavita’s Share of Goodwill = ₹ 40,000 × 1/5 = ₹ 8,000, which is contributed by Kushal

and Kumar in their gaining ratio, i.e., 3 : 1
25.

i. Calculations of Goodwill of the firm and Bibin’s share of goodwill at the time of his 1
death.
Treatment of goodwill:
i. Calculation of Bibin's Share of Goodwill 5 years total profit =
(-) 70,000 + 70,000 + 60,000 + 50,000 + 40,000= Rs 1,50,000
Average profit = 1,50,000/ 5 = Rs 30,000
Firm's Goodwill = Average Profit × Number of Years' Purchase
= 30,000 × 3 = Rs 90,000
Bibin's share of goodwill = 90,000 × 5/ 10 = Rs 45,000, to be contributed by Chetan and
Dev in their gaining ratio i e, 3 : 2.
Chetan will contribute = 45,000 × 3 /5 = Rs 27,000;
Dev will contribute = 45,000 × 2 /5 = Rs18,000
1
ii. Calculation of Bibin's Share of Profit/loss = 70,000 × 5 /10 × 3 /12 = Rs 8,750 (Dr)
Loss

iii.
Bibin's Capital Account 4
Date Particulars Amount Date Particulars Amount
 (₹) (₹)
2023 To Profit and Loss 2023 By Balance b/d 40,000
Mar 1 A/c(70,000 × 5/10) 35,000 Jan 1 By General Reserve
To Profit and Loss A/c (70,000 × 5/10) 35,000
Mar Suspense A/c (Loss) By Chetan's Capital
31 To Bibin's Executor's 8,750 Mar 1 a/c 27,000
A/c ] Mar 31 By Dev's Capital A/c
76,250 Mar 31
Mar 18,000
31 1,20,000 1,20,000
26.

a. JOURNAL
3
Date Particulars L.F Dr. (₹) Cr. (₹)
2022 Oct. Purchases A/c …………………..Dr 17,50,000
1 To Computer Mart 17,50,000
(40 Computers purchased)

17,50,000
Computer Mart …………..……….Dr 25,000
Loss on Issue of Debentures A/c ...Dr 15,00,000
To Bank A/c 2,50,000
To 9% Debentures A/c 25,000
To Premium on Redemption
of Debentures A/c
(Consideration paid ₹ 15,00,000 by cheque
and issued 5,000, 9% Debentures of ₹ 50
2023March each for balance)
31 25,000
Statement of Profit & Loss (Finance Cost)
……………………………...Dr 25,000
To Loss on Issue of Debentures A/c
(Loss on issue of Debentures written off)

*Discount/Loss on Issue of Debentures is written off in the year debentures are allotted
from Securities Premium to the extent of balance in Securities Premium Account and
balance from Statement of Profit & Loss. Since balance of Securities Premium Account
is not given, it means it does not have a balance and therefore, Loss on Issue of
Debentures is written off from Statement of Profit & Loss as finance cost.

(b) Dr. COMPUTER MART ACCOUNT Cr. 2

Date Particulars Amount Date Particulars Amount
(₹) (₹)
2022 To Bank A/c 15,00,000 2022 By Purchases A/c 17,50,000
Oct. To 9% Debentures A/c Oct. 1
1 2,50,000
17,50,000 17,50,000
1
 (c) Dr. LOSS ON ISSUE OF DEBENTURES ACCOUNT Cr.
Date Particulars Amount Date Particulars Amount
(₹) (₹)
2022 To Premium on 2023 By Statement of 25,000
Oct. Redemption of March31 Profit & Loss
1 Debentures A/c 25,000
25,000 25,000
PART B
27.
(Analysis of Financial Statements)
a. Vertical Analysis 1
OR

28.
(d) Sales
(d) 4,00,000 1
Explanation: Let the current liabilities to be paid off = X
6,00,000 - X / 5,00,000 - X = 2/1
10,00,000 - 2X = 6,00,000 – X
29.
X = 4,00,000
(d) No Cash Flow 1
OR
(d) sale of investment by non-financial enterprise. Explanation: purchase -sale of
30.
investments are part of investing activities.
b. Cash Flow from Financing Activities 1
31.

3
Items Main Head of balance Sub-head of balance sheet
sheet
Public Deposits Non-Current Liabilities Long-Term Borrowings

Office Furniture Non-Current Liabilities Fixed Assets (Tangible

Assets)
Prepaid Rent Current Liabilities Other Current Assets

Outstanding Salaries Current Liabilities Other Current Liabilities

Computer Software Non-Current Liabilities Fixed Assets (Intangible

Assets)
Interest Accrued on Current Liabilities Other Current Assets
Investment

32.

India Ltd. 3
COMMON SIZE STATEMENT OF PROFIT & LOSS
for the year ended 31st March 2022 and 2023
Particulars Note Absolute Amounts Percentage of Revenue
No. from Operations
2021-22 2022-23 2021-22 % 2022-23 %
₹ ₹
I. Revenue from Operations 25,00,000 40,00,000 100 100
II. Other Incomes 50,000 1,60,000 2 4
 25,50,000 41,60,000 102 104

18,50,000 33,60,000 74 84

1,50,000 (2,00,000) 6 (5)

1,00,000 1,20,000 4 3
III. Total Revenue (I + II) 21,00,000 32,80,000 84 82
IV. Less: Expenses Purchase of
Stock in Trade 4,50,000 8,80,000 18 22
Changes in Inventories
Other Expenses
33.

Gross Profit = ¼ x 3,20,000 = 80,000 4

Cost of Revenue from Operations = Revenue from Operations – Gross Profit
= 3,20,000 – 80,000 = 2,40,000
Closing Inventory = Opening Inventory + Net purchases – Cost of Revenue from
operations
= 29,000 + 2,42,000 – 2,40,000 = 31,000
Average Inventory = (29,000 + 31,000) / 2 = 30,000
34.
Inventory Turnover Ratio = 2,40,000 / 30,000 = 8 Times
Cash Flow Statement 6
Particulars ₹ ₹
A. Cash Flow from Operating Activities
1,50,000
Net Profit before Tax and Extraordinary Items (WN 1)

Adjustment for Non-Cash and Non-Operative Items :

50,000
Add: Depreciation on Plant and Machinery
(3,000)
Less: Profit on Sale of Machinery (WN 2)

1,97,000
Operating Profit before Working Capital Changes
(25,000)
Less : Increase in Inventories (Stock)

CashGenerated from Operations 1,72,000

Less: Tax Paid ---

1,72,000
Cash Flow from Operating Activities

(B) Cash Flow from Investing Activities

Sale of Plant and Machinery 8,000

(3,55,000)
 3,00,000

(40,000)
(3,47,000)
Purchase of Plant and Machinery (WN 2 )

Cash Flow from Investing Activities 85,000

(C) Cash Flow from Financing Activities

The issue of Share Capital 3,15,000

Dividend Paid 4,00,000