AN JOHNSON

GRAMMAR SCHOOL
The Jey ot belng
TGS/EXAMJF-02/R00

Mallapur, Hyderabad-76.
Class: XII PRE- BOARD -2 EXAMINATION 2024- 2025
Marks: 80 ACCOUNTS Date: 06.01.2025
Time: 3 Hrs
(Candidates are allowed additional 15 minutes for only reading the
The Question Paper contains TWO sections. paper)
Section is compulsory for all candidates.
A
Candidates have to attempt al questions from Section B
There are intenal choices provided in each
The intended marks for questions or parts ofsection.
questions are given in the brackets [}
All calculations should be shown
clearly.
All working, including rough work, should bedone on the same page as, and adjacent to, the rest of the
answer.
SECTIONA J60 Marks]
Answer allquestions.
Question 1
) Gokul Lid. Forfeited 1l,000shares of 10each (8 called -up) for non-payment of allotment money of 5 per
share including 2 as premium. Out of these few shares were re-issued to Ranmesh at 7 per share as 8 called
up and 3,200 were transferred to capital reserve. Numbers of shares reissued were
a) 500Shares b) 600 Shares c) 700 Shares d) 800shares

i) Raghu and Rishu are in partnership sharing profits and losses in the ratio of 3:2. Their capitals before
adjustments are Z69,000 and 51,000 respecttively. Fim's Goodwill250,000, loss on revaluation of assets and
liabilities S,000, General reserve15,000.They admit Rishab as apartner who has to contribute adequate
capital to acquire 1/5h share of profits to be sacrificed equally by Raghu and Rishu.
Calculate the amount of capital to be brought in by Rishabh. [1]

iü) Assertion (A): Profit and loss Account credit balance in the balance sheet at the time of retirement is
distributed among all the partners in their old ratio.
Reason (R): Accumulated profits existing on retirement had been earned by all the partners of the firm.
In the context of above two statements, which of the following is correct? [1]
a) Both A and Rare true, andR is the correct explanation ofA.
b) BothA and R are true, but R is not the correct explanation of A.
c)A is true, but R is false.
d) A is false, but R is true.

iv) Creditors in the balance sheet before dissolution were2,00,000. Half of the creditors accepted furniture of
Z1,20,000 at an agreed value of 10% less than the book value and cash of 8,000 in settlement of their clain.
Remaining creditors were paid at a discount of 5%.
Calculate the amount by which bank account will be credited to realisation account for payment to creditors.

v) How Debenture Redemption reserve is shown in the company's balance sheet?

certain rate of
vi) Rechna Ltd. issued 40,000;10% debentures of 100 each at 10%premium to be redeemed at debited
was with
premium. Atthe timeof writing off loss on issue of Debentures, Statement of profit &loss [1]
2,00,000. At what rate of premium, these debentures are redeemed?
a) 11% b) 10% c) 5% d) 15%

Page 1 of9
ISC-XIV PB-2/Accounts
 partnership its balancesheet showed investment
thetime of dissolutionof (being book value less 10%).
vii) At 7,200
partners takes certain
investment at
remaining investment at 90% of book value less 100
takes the
Sanjay another partnerinvestment at which it is taken by
Calculate the value of
Fiza Itd, issucd 9% debentures
Sanjay.

of
a3,00,l0ow00aance.
{100each amounting to
premium account of I3 ta
.a iscount of
viii)On 1# April ,2024, 4%, Ithas a balance in securities
6%redeemable at apremium of equally over five instalments.
be redeemed
The debentures are to prepare account
You are required to loss on issue of debentures

ix) The commission due to a partncr is closed by b)Crediting it to partner's capital account.
a) Debiting it to partner's capital account. d) Crediting it to profit &loss Appropriation account.
c) Debiting it to profit &loss Appropriation account.
BO
x) Write any four uses of securities premium account.
M
Question 2
The balance sheet of Hari, Jacob and james as at 31 march,2023, stood as follows:
Liabilities Assets
Capitals a/c s: Fixed assets 3,50,000
Harbi 3,40,000 Debtors 2,50,000
Jacob 1,90,000 Bank 1,50,000
James 2,20,000 7,50,000
7,50,000 |7,50,000
Jacob died on 30th June,2023
His drawings from 1" April ,2023up to the date pf his death amounted to 1,00,000.
According to the partnership deed, Jacob was:
a) To be charged with interest on drawings @4% per annum.
b) Entitled to his share of interin profits for which his capital account was credited with 1,10,000.
c) Entitled to his share in the non-purchased goodwill of the firm.
The firm's non-purchased goodwill on the date of Jacob's death had no value.
The final amount due to Jacob by the firm was transferred to his executor loan account.
You are required to prepare interim balance sheet of the reconstituted firm as at 30th June,2023. I31
Question 3
Neon Ltd. Purchased asset_ of? 18,00,000 and took over liabilities of 2,00,000 of Zenith ltd. For a purchase
consideration of 15,00,000.
Neon Ltd. Paid half amount by issue of equity shares of 100 each at premium of 20% and balance half by
issuing 10% Debentures of 100 cach at par redeemable at apremium of 10%.
Pass necessary journal entries for the above transactions in the books of Neon Ltd. (including writing off
Loss on Issue of Debentures). [3)
(OR)
On 1 April 2023 Harbour Ltd. issued50,000,6% debentures of 100 each to the public at adiscount of S%to
be redeemed after three years at a premium of 7%.
On 31" December, 2023 the company also issued 1,00,000 equity shares of ?1 0each at apremium of 2 per
share.
Both the issues were fully subscribed.
You are required to prepare the following accounts for the year 2023-2024in the books of Harbour Itd..
) 6% Debentures account
i) Loss on issue of debentures account.

Page2 of 9
 on 4
April,2023, Resorts Lad.(a listed construction company) had 60,000,5% Debentures of 100
redemption at par on 31" March, 2024. each due
per the law, investment was made in a fixed deposit of abank on 30th April, 2023, earning interest (a5% per
Ainum.
Tax a10% was deducted by the bank on the interest.
You are required to pass necessary journalentries in theyear if redemption of debentures, including
entries for interest on Debenture Redemption Investment.
(ignore the interest on debentures) (3|

Question 5
31
Anitha, Asha and Amrit are partners in a fim sharing rofits inthe ratio of 2:2:1 respectively. Asha died on
march,2024, Anitha and Amrit decided to share future profitsofin the
goodwill
the firm
ratioonofthe1:1.basis of 3 years purchase of
On the dateof Ashas death, it was decided to value
average super profit. Average net profit earned by firm is 21,22,500per annum.
to be 22,500 p.a. On the date of
Kemuneration of the partners considercd as management cost, is estimated 2,00,000.
death, firm had assets of ?5,50,000 including cash of 50,000. Its creditors were
Normal Rate of Return in the industry is 20%.
You are required to: (2]
i) Caleulate the value of goodwill of the firm. [1|
i) Pass journal entry for adjusting Ashas share of goodwilI.
Question6 books of Meadow Ltd as at 31 march, 2024
Following balances have been extracted from theParticulars
Particulars 40,000
Capital rescrve 1,20,000 Bank overdraft 20,000
6,00,000 Bills receivables
Plant and machinery (at cost) 80,000
6,80,000 Patents
Land and building 90,000
1,70,000 Sundry debtors
Statementof profit and loss (Dr) Provision for doubtful debts 10,000
Short term loans and advances 50,000 30,000
Cash and bank balances 1,60,000 Inventories 20,000
90,000 Calls in arrears
Trade payables Share capital 12,00,000
Forfeited shares 40,000 5% debentures (1/5 of the 3,00,000
Accumulated depreciation on plant 1,00,000 debentures to be redeemed on
and machinery 31 march,2025)

Additional information: applied and allotted.

company had received 1,25,000 cquity shares of {10each to public which were all
a) The
These Shares were fully called up by the company.
15,000 shares out of which 5,000 shares were forfeited by the
@2 per share on
b) Therewere calls in arrears
company.
You are requlred to:
) Showthe share capital in the notes to accounts.
1i) Givethe amount for each of the following:
) Short term borrowings.
b) Current assets. 16)
) Property, plaut and equipment and intangibleassets.

Page 3 of 9
C-XIW /PB 2/Accounts
 Adit andShiv were partnerssharing profits and losses in the ratio of 5:4. They dissolved heit sortte
Question 7 balances;
balance sheet showed the following
when their
on 31 march, 2024, 40,000
Particulars
Aditis capital 30,000
Shiv'scapital 3,000
Aditi's current account (Cr) 6,000
Shiv's current account (Dr) 22,000
Loan by the firm to Shiv 4,500
Profit and loss account (Dr)
On the date of dissolution of the firm:
and settlement of liabilities.
a) The firm incurreda loss of I8.000 on realisation of assets were paid by the firm on his behaif.
by Shiv,
O) 1he expenses of the dissolution of 3,000 tobe borne
some pieces ofthe furniture at 9,000(Being 10%less than
C) The fim had furniture of 15,000. Adit took over
the book value ).Shiv took over the remaining furniture at 80% of its book value. [6]
You are required to prepare the partners capital accounts.
Question 8
Raghu and Rishu are partners sharing profits in the ratio of 3:2.Their balance sheet as at 31" march,2024 was
as follows: (6]
Liabilities Assets
Creditors 76,000 Cash in hand 80,000
General reserve 30,000 Debtors 42,000
Less: provision for d.debts 7,000 35,000
Capital alcs: Stock 28,000
|Raghu 1,35,000 Building 98,000
Rishu 90,000 Machinery 85,000
Advertisement expenditure 5,000
3,31,000 3,31,000
Rishabh was admitted on that date for Y th share of profit on the following terms:
i) Rishabh will bring 1,00,000 as his share of capital but was not able to bring premium for goodwill to
compensate the sacrificing partners.
ii)Goodwill of thefirm is valued at 1,20,000.
iii) Machinery was undervalued by 15,000. Building was to be brought up to }1,08,000.
iv) Alldebtors are good.
v) Capital accounts of the partners will be adjusted on the basis of Rishabh's capital in their profit-sharing ratio
by opening current accounts.
You are required to prepare:
a)Revaluation account
b) Partners capital accounts.
(OR)
Mitu and Ritu are partners sharing profits and losses in the ratio of 2:3 An extract of their balance sheet as at
31" march,2024 is given below:
Balance sheet of Mitu and Ritu as at 31st march,2024
Liabilities Assets
Workmen compensation reserve 30,000 Investments (market value 76,000) 80,000
General reserve 40,000 Sundry debtors 1.00,000
Investment fluctuation reserve 10,000 Profit &loss a/c $5.000
 April,2024they admit

Er
Nitu as a new partner for 1/5
eatment ofthe reserves and
accumulated share in the profit on the following terms regarding
ocumulated losses, if any, to be written off.losses
workmen compensation claim of Z10,000 to be
alance of the rescrve is not to be distributed. adjusted against the workmen compensation reserve. The
Provision for doubtful debts to be created to t6he extent of
10% of the
You are required to pass necessary journalentries to
admission. recordthe abovedebtors.
adjustments at thetime of Nitu's
Question 9
Mohan and Sohan are partners in a firm, sharing profits and losses in the ratio of 3:2.
1 April ,2023 were Their fixed capitals as on
I5,00,000 and R10,00,000
Their partnership deed provides for the respectively.
following:
i)Partners are to be allowed interest on their
ii) They are to charged interest on drawings capitals (@10% per annum.
iii) Mohan is to get salary of 25,000 per @4% per annum.
month.
)Sohan is to get commission @S%of the corrected net profit of the fin before charging such commission.
V) Mohan is to get rcnt of 7,500 per month for the use of his premises by the firm.
Mohan withdrew afixed amount in the beginning of every month on which he was charged interest of 3,250 at
the rate mentioned in the decd.
Sohan withdraw a fixed amount at the end of every month on which he was charged interest of 2,750 at the
rate mentioned in the deed.
On 31" march,2024 Sohan introduced further capital of 5,00,000.
Profit for the year cnded 31" march,2024 before providing for any of the above was 10,00,000.
You are required to :
i) Calculate the drawings made by Mohan every month. EEETEE
ii) Caleulate the drawings madc by Sohan cvery month. [1]
ii) Pass the journalentry for capital introduced by Sohan.
iv) Pass the adjusting entry and closing entry for Sohan's Commission.
v) Pass the journal entry for transfer of credit balance of profit &loss appropriation a/. [1|
vi) Preparethe Profit &loss Appropriation account of the firm for the year 2023-2024. [4|
(OR)
a) Capitals of Kajal, Neerav and Alisha as on 31" march,2024 were 290,000, 3,30,000 and 6,60,000
respectively. Profit of 1,80,000for the year ended 31" march, 2024 was distributed in the ratio of 4:1:1after
allowing interest on capital @10%p.a during the year, cach partner withdrew*3,60,000.The partnership decd
was silent as to profit -sharing ratio but provided for interest on capital @12%.
You are required to pass the necessary adjustment entry showing the working clearly.
b) Raman and Rohit are partners in a firm. The terns of the partnership deed are as given under:
i)Interest on capital will be allowed (@5% per annum.
ii) Interest on drawings will be charged @4% per annum.
ii) Each partner willbe given a salary of 10,000 per month.
iv) Partners will share profits and losses in the ratio of 2:1.
Following are the particulars ofthe capitals and drawings of the partners:
Particulars Raman Rohit
Capital (14 April,2023) 6,00,000 5,00,000
Drawings (made on 1" June,2023) 90,000

Ranan had taken aloan of ?1,00,000 from the firm on which interest of 2,000 was due by him to the firm.
Duringthe year 2023-2024 firm had made aprofit of 7,70,000 before taking into account any interest, salaries
and managers salary of ?1,80,000.
) You are required to prepare profit &loss appropriation account for the year ended 31 march, 2024.
) Pass adjusting entry and Closing entry for drawings by Rohit.
Question 10
Tushar Ltd. Invited applications for issuing 20,000 cquity shares of ?10cach at a premium of 20%,.
The amount payable as followS:
On application ---.25 per share
On allotment-4 per share (including premium)
On call
-Balance.
APplicationS were received for 35,000 shares, out of which applications for 5,000 shares were rejected and
remaining applicants were allotted shares on pro rata basis.
ma an applicant of 1,500 shares did not pay allotment and call money. His shares were forfcited. At different
ntervals of time, out of these, 600shares were reissued at a discount of 2 per share as fully paid-up and 400
shares as R8 paid-up for 9 per sharc.
TOu are required to pass journalentrics in the books of the company to record theabove
transactions.
(OR)
A) Following is an extract from the journal of Bruno Ltd. You are
hlling up the information represented by? which is missing required to complete the journal entries
from these journal cntries.
Date
Journal of Bruno Itd.
Particulars Lf Dr () |Cr(3)
Share capital alc Dr ?
Securities
To
premium alc Dr ?
Forfeited shares alc 2
To Calls in -arrcars alc
2
(Being the forfeiture of 2,500
had applied for 5,000 shares forshares allotted toofVinay who
and first call) non-payment allotment
Bank a/c
Dr
Forfeited shares a/c Dr 2
To Share capital a/c
(Being -forfeited shares reissued (@7 per share as 29
paid)
Forfeited shares a/c Dr
To capital reserve alc 6,000
(Being the gain on reissued shares transferred to capital 6,000
reserve)
Additional information:
Baruno Ltd. Issued 50,000 Equity shares of 10 each at 50%
On application 25 per share premium. Payable:
On allotment 6 (including
On first call 3 per share premium) share
per
Final call was not made.
You are required to complete:
a) The journal entry for forfeiture of shares.
b) The journal entry for reissue of shares,
showing the number of shares reissued by the conpany. (8]
B) Pushkar Ltd. Invited applications for 40,000
On application shares of10each at a premium of 10%payabale as follows:
On allotment
2(1 January )
24 (including premium)(1" April)
On first call 3 (1" June)
On second &final call12 (1"
August).

JSC-XIV PB 2/Accounts Page 6 of 9

 Question 13
From the following balance sheet of Jazz Itd. you are required to prepare cash flow statement (as per A.
the year 2023-2024:
Balance sheet of Jazz Ltd. as at 31" march, 2024 and 31" march,2023
Particulars Note no 31 march,2024 31" march,20,
IEQUITY AND LIABILITIES
1.Share holders funds
a) Share capital
7,00,000 6,00,000
b) Reserves and suplus (Balance in statement of P&L)
2.Non current liabilities 2,00,000 1,10,000
Long tem bomowings (10edebentures)
|3.Current liabilities 3,00,000 2,00,000
Trade payables
Total 30,000 25,000
II ASSETS 12,30,000 9,35,000
1. Non-curent assets
Property plantand equipment and intangible assets:
Property ,plant and equipment
2. CuTent assets 11,00,000 8,00,000
a) Inventories
b) Trade receivables 70,000 60,000
c) Cash and bank balance (cash at 32,000 40,000
Total barnk) 28,000 35,000
12,30,000 9,35,000
Additional information:
1. Interim dividend paid during the
2. During the year, a piece of year amount to 790,000.
provided on machinery duringmachinery
of the book value of
the year amounted to 2,00,000.Z80,000 was sold for 65,000. Depreceiation
3. Equity shares were issued at a premium of
4. Additional debentures were issued on 1$ 5%on 1 April ,2023.
October ,2023at a discount of 5%o.
(OR) (6]
Read the following information of Blue bell Ltd. and
Particulars answer the questions that follow:
31st 31st
Share capital (equity shares of Z10each) march,2024 march,2023
Securities premium 6,00,000 5,00,000
| Surplus (balance in statement of profit& loss) 1,10,000
1,00,000 1,75,000
6%Debentures
Short term 3,00,000 2,00,000
provision -provision for tax 50,000
Propertyplant &equipment 25,000
Non -current investments 5,00,000 3,00,000
Goodwill 2,00,000 1,40,000
80,000 20,000
Additional information:
During the year 2023-2024:
a) Machinery costing1,00,000 on which depreciation charged was
70,000 was sold at a profit of 20%on book
value, depreciation charged during the year was 70,000.
b) Issued bomus shares to the share holders at the beginning of the year in the ratio of 1:5
for every 5 shares held) by capitalising securities premium. (that is 1bonus share
c) New debentures were issued on 1 April,2023, at a discount of 10%. The discount was written off from
securities premium.

SC-XW PB-2/Accounts Page 8 f9

 company declared and paid interim dividend of 48,000.
rent invest1ment costing 60,000 was sold at a profit of 20%.
Tncome tax 245,000 was provided.
How many bonus shares have been issued by the company to the share holders?
n Cempute the amount of net profit before tax.
EEE,.EEE
ii) State the amount of plant and machinery purchased during the year.
iv) How will the increase in the amount of goodwillbe treated while preparing cash Mow statemeut,
v) What is the net cash flow from or used in investing activities?
v) State the amount of tax paid during the year?
Question 14 (6]
Answer any three of the following questions:
) Caleulate the net profit ratio (up to two decimal places ) from the following information:
Particulars
Gross profit 80,000
Salary and Rent 30,000
Interest on debentures 5,000
Gain on sale of funiture 2,000
Revenue from operations 4,00,000

above cost
ii) Net profit ratio 10%; Cost of revenue from operations ¿20,00,000; Gross profit 25%
;9%debentures 18,00,000; Capital employed 332,00,000.
You are required to calculate return on investment(ROI) equity
ii)Capital employed 10,00,000; interest on long term borrowings @10%Z60,000. Compute debt to
ratio.
iv)Calculate the working capital turnover ratio of moonlight Ltd., (up to two decimal places)from the
foilowing particulars:
Particulars
Cash 10,00,000
Short term loans and advances 3,00,000
Inventory 2,00,000
Trade payables 5,00,000
Cost of revenue from operations 12,00,000
Gross profit on cost of revenue from operations 25%