Accountancy Class XII Session 2023-24 ‘Time: 3 Hours Max. Marks: 80 General Instructions: LIThis 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 forall candidates 4. Part - B has two options ic, ()) Analysis of Financial Statements and (i Students must attempt only one of the given options, 5.Question 1 10 16 andl 27 to 30 carries 1 atk each. 6.Questions 17 to 20, 31 and 32 carries 3 marks each. 7.Questions from 21, 22 and 33 carries 4 marks cach 8.Questions from 23 to 26 and 34 carries 6 marks each 9.There is no overall choice. However, ai iernal 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 The ‘share of premium for goodwill’ brought in by the new partner is divided in which rat (a) In old ratio (b) In sacrificing ratio (©) In new ratio (a) None of these ______if provided for in the partnership deed. Interest on capital will be paid to the partner only out of _, (a) accumulated profits (b) pi (6) goodwill (a) reserves Ans (b) In sacrificing ratio (b) profits Ravi, Dhoni and Tony are partners sharing profits in the ratio of 3 : 3: 2. As per the partnership agreement, ‘Tony is to get a minimum amount of 8,000 as his share of profits every year and any deficiency on this account is to be personally borne by Ravi. The net profit for the year ended 31st March, 2021 amonnted to % 31,200, Calculate the amount of deficieney to be borne by Ravi. (a) % 800 (b) 2 200 (©) T100 (a) % 400 Ams : ) Net profit for the year = & 31,200 ‘Tony's share in profits = 31,200 x 2/8 = % 7,800 Guaranteed to Tony = ® 8,000 Deficiency to be borne by Tony = 8,000 ~ 7,800 = € 200 Which of the following is/are methods) of valuation of goodwill? (Average profit method (i) Super profit method (Gi) Capitalisation method (a) (i) and (ii) (b) (0, (i) ana Gi) (©) Only (i) (2) ( and Gi) AnsCalculate the interest for the year 2021, when 6% debentures are issued for € 20,00,000 of € 100 each, (a) 12,000 (b) © 12,00,000 (©) 1,609,000 (a) 120.000 Ans: (a) Annual Interest = 6 0,00,000 xB = & 1,20,000 A shareholder to whom 9,000 shares of €10 per share allotted, failed to pay first and final eall of €2 per share. How will it be recorded in the books of comps (a) % 18,000 will be credited to Calls-in-arrear A/e (b). © 18,000 will he credited to Share Forfeiture A/e (c) 18,000 will be debited to Callsin-arrear A/e (@)_ © 18,000 will be debited to Share Forfeiture A/e I vendors are issued fully paid shares of € 1,00,000 in consideration of net assets of € 1,20,000 the balance of & 20,000 will be_ (a) credited to Vendor's Account (b) credited to Goodwill Account (6) credited to Profit and Loss Account (a) credited to Capital Reserve Account Ans: (€) & 18,000 will be a ited to Call arrear A/e (d) credited to Capital Reserve Account Jhunjlnn, a partner paid loan of the firm of & 1,00,000 at the time of dissolution, Pass the journal entry for this transaction. (a) Realisation A/e Dr 1,00,000 ‘To Thunjlun’s Capital A/e 1,00,000, (b) Shunjinun’s Capital A/e Dr 1,00,000 ‘To Realisation A/e 1,00,000 (©). Realisation A/e Dr 100,000 ‘To Loan A/e 1.00,000 (A) None of the above (a) Realisation A/e Dr 1,00,000 ‘To Jiunjlun’s Capital A/e 1,00,000 If equal arount is withdrawn by a partner at the end of each month during a period of 6 months, interest on the total amount will be charged for_ ‘months. (@) 35 (b) 6 (©) 25 as A partner withdraws @ 1,600 each on Ist April and Ist October. Interest on his drawings @ 6% p.a. on S1st ‘March will be (a) T48 (b) % 192 (©) %96 (a) Rt10. Ans : (25 @ Interest on drawings = 1,600 6% x43 = 96 00x 693 = 48 =96-+48= 144 A firm having the assets of € 2,00,000 and liabilities of € 84,000 earns the annual profit of € 18,000. The rate of normal profit being 12%, the amount of goodwill by capitalisation of super profit method, will be (a) ©3000 (b) % 4.080 (©) 8 18.290 (a) % 36,000 Ans : @ Normal Profit = (Assets — Liabilities) x Normal Rate of Return 200,000 ~ 84,000 x 12/100 = % 13,920 Super Profit = Average Profit ~ Normal Profit, 18,000 ~ 13,920 = % 4.080 i 100. Goodwill = Super Profit = € 18.960 Interest om Rajiv’ pital = (60,000 5) + (16.000 « 3, f5) = 7.200 + 960 = € 8.160 Interest on Parth’s eapital =a. United India Limited purchased machinery from Berger Technologies Limited for & 10,00,000 to start a business of manufacturing low cost school dresses for children belonging to low income group. It made the payment as follows © 2,00,000 hy chequ 5,00 ‘You are required to pass the journal entries for the transactions. ‘Ans: 10% preference shares of % 100 each at par. and 3,000, 10% debentures of % 100 each at par. Journal Date Particulars LP.[De@®_ [cr @ Machinery A/e Dr. 10.00,000 ‘To Berger Technologies Limited :10,00,000 (Being the machinery purchased from Bvergreen Ltd.) Berger Technologies Limited Dr, 10,00,000 ‘To Bank A/c 2,00,000 ‘To 10% Preference Share Capital A/e (5,000 x 100) 5,00,000, ‘To 10% Debentures A/e (8,000 x 100) 3,00,000 (Being the consideration paid by issue of cheque for ® 2,00,000, 5,000, 10% preference shares of & 100 each and 3,000, 10% debentures of % 100 each) Daksh and Kavya are partners in a firm sharing profits in the ratio of 2: 3. The balance shect of the firm fas on 3st March, 2021 is given below Balance Sheet fas at lst March, 2021 Liabilities Amount. Assets @ Creditors 6,20,000 | Bills Receivable Bills Payable 1,80,000 | Stock 16,00,000 Capital A/es Machinery 18,40,000 Daksh 16,00,000, Land and Building 10,00,000 Kavya 224,00,000 | 40,00,000 448,00,000 48,00,000 The partners decided to share profits in equal ratio with effect from 1st April, 2021. The following aadjustinents were agreed spot (Land and building was valued at % 16,00,000 and machinory at 16.10,000 and were to appear at rovalued amounts in the balance sheet. (ii) The goodwill of the firm was valued at € 80,000 but it was not to appear in books, Prepare revaluation account, partners’ capital account and balance sheet. Ans: Dr. Revaluation A/e Particulars Amount Particulars @ ‘To Machinery 2,00,000 | By Land and Bull 6,00,00 ‘To Profit Transferred to Capital A/es Daksh 1.60,000Kavya 2.40,000 | 4.00.00 6.00.00 6.00.000 Dr. Partners’ Capital Account ce. Particulars Daksh | Kavya Particulars Daksh | Kavya @ @ ® @ ‘To Kavya’s Capital A/e 8.000) —] By Balance 67a 16,00.000 | 24,00,000 To Balance ¢/d 17,52,000 | 26,148,000 | By Revaluation A/e (Profit) | 1,60,000 2,40,000 By Daksh’s Cxpital A/e —|__s000 17,60,000 | 26.48,000 17,60,000 | 26.48,000 Balance Sheet as at 1* April, 2021 Liabilities Amount ‘Assets Amount @ @ Capial Aes Bills Receivable 3.60.00 Dash 17.52.00 Stock 16,00,000 Kavya 26,48,000 | 44,00,000 | Machinery 18,40,000 Creditors 6.20.00 (-) Depreciation (2,00,000) | 16,410,000 Bills Payable 180.000 | Land and Building 10,00,000 (4) Appreciation 6,00,000 | 16,00,000 52,00,000 52,00,000 Working Note Sacrificing Ratio = OM Share ~ New Share fi (1h) cain; Kanye 1 ah Sacrifice 23, Nikita Services Private Limited iseued 50,000, 10% debentures of € 100 each at 10% premium to the publie fon Ist April, 2019, which are redeemable after 5 years of issue at a premiun of 20%. Pass journal entry for the isme of debentures, for writing-off “loss on issue of debentures’ in the same year of issue and prepare ‘loss on issne of debenture account” also, Ans: In the Books of Nikita Services Private Limited Journal Date Particulars LP] Dr. @ | ce. @) 2020 Mar 31 | Bank A/e Dr. 55,00,000 ‘To Debenture Application A/e (60.000 X 110) 55,00,000 (Being the application money received) Mar 31 | Debenture Application A/e Dr 55,00,000 Loss on Issue of Debentures A/e Dr 10,00,000 ‘To 10% Debentures A/e (50,000 100) +50,00,000 ‘To Sceurities Premium Reserve A/e (50,000 * 10) 500,000‘To Premium on Redemption of Debentures A/e (50,000 10,00,000 x 20) (Being the issue of debentures at 10% premium, redeemable at 20% premium) Mar 31 | Securities Premium Reserve A/c Dr. 5,00,000 Statement of Profit and loss Dr. 5,00,000 ‘To Loss on Issue of Debentures A/e 110,00,000 (Being loss on issue of debentures is written-off from available balance of SPR and profit and loss account) Working Note Securities premium reserve (By issue of 50,000, 10% debentures of € 100 each at 10% premium) = 50,000 x 10 = % 5,00,000 Loss on issue of debentures = 50,000 x 20 = % 10,00,000 Dr. Loss on Issue of Debentures A/c Cr. Date Particulars Amount] Date Particulars Amount ®@ @ 2019 2020 Apr 1|'To Premium on Redemption of| 10,00.000| Mar 31 |By Securities. Premium _5,00,000 Debentures A/e Reserve A/e Mar 31 | By Statement of Profit and | 5.00,000 Loss A/e 10,00,000 10,00,000 the firm on 31st March, 2020. Their balance sheet is as follows Riyaz and Imran, who were sharing profits and losses in the ratio of 3 : 1 respectively decided to dissolve Balance Sheet as at 3lst March, 2020 Liabilities Amount (2) Assets Amount (%) ‘Trade Croditors 15,000 | Cash at Bank 1,000 Loan from Mrs. Riyaz 5,000 | Imran’s Capital 5,000 Capital 50,000 | Profit and Loss A/c 4,000 Other Sundry Assets 60,000 70,000 70,000 The assets (other than cash at bank) realised & 55,000 and all creditors including loan from Mrs. Riyaz were paid-off less 5% discount. Realisation expenses amounted to % 500. Prepare the realisation account, bank account and the capital account of the partners assuming that both the partners are solvent. Ans: Dr. Realisation A/c Cr. Particulars Amount Particulars Amount (2) ®@ To Sundry Assets A/e 60,000 | By Sundry Liabilities A/e ‘To Bank A/c (Trade creditors) 14,250 | Trade Creditors 15,00025. To Bank A/e (Loan from Mrs.| 4,750| Loan from Mrs. Riyaz 5,000 20,000 Riyaz) — ‘To Bank A/c (Expenses) 500 |By Bank A/e (Sundry assets 55,000 realised) By Loss on Realisation ‘Transferred to Riynz's Capital A/e 3.875 Imran’s Capital A/c 1,125, 4,500 79,500 79.500 Dr, Partners’ Capital Account cr. Particulars Riyaz | Imran Particulars ara @ @ ®. To Balance b/d =| 9,000 | By Balance b/a = ‘To Profit and Loss A/c (Loss) 8,000] 1,000] By Bank A/e (Cash brought —| 7125 in) To Realisation A/e (Loss) 387%5| 1,125 ‘To Bank A/c (Final payment) | 43,625, = 30,000] 7,125 0,000] 7,125 Dr. Bank A/e ce. Particulars Amount Particulars Amonnt (@) ®@ ‘To Balance b/d 1,000 | By Realisation A/e (Trade Creditors) 14,250 To Realisation A/c (Assets realised) | 55,000 By Realisation A/e (Loan from Mrs. 4.750 Riyaz) ‘To Imran's Capital A/e (Cash| 7,125] By Realisation A/e (Expenses) 500 Drought in) By Riyas's Capital A/e (Pinal payment) 43.625 63.125 63.125 Note Calculation of sundry assets (except cash at bank) as at Bist March, 2020. Johnson Textiles and Industries Limited invited applications for iss at a promium of & 30 per share. The amount was payable as follows (On application and allotment ~ € 85 per share (ineluding premium) On first and final call ~ the balance account Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess mouey received on application and allotment was adjusted towards suum due on first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at € 150 per share fully paid-up. Pass necessary journal entries for the above transactions in the books of Johnson Textiles and Industries Limited ng 75,000 equity shares of & 100 each Zigzak Technologies Limited has been registered with an authorised eapital of & 2,00,000 divided into 2,000 shares of 8 100 each of which 1,000 shares were offered for public subscription at a premium of 2 5 per sharepayable as under On application & 10; on allotment & 25 (including premium); on first call € 40 and on final call € 30, Applications were received for 1,800 shares of which applications for 300 shares were rejected outright, the rest of the applications were allotted 1,000 shares on pro-rata basis. Excess application money was transferred to allotment. All the money were duly received except from Naveen, a holder of 200 shares, who failed to pay allotment and first call money. His shares were later on forfeited and re-issued to Sohan at & 60 per share, as & 70 paid-up, Final call has not been made. Record necessary journal entries. Ans: Journal Date Particulars LE] Dr@ | Ce Bank A/e (1,27.500 x 85) Dr. 1,08.37,500 ‘To Equity Share Application and Allotment A/e 1,08.37,500 (Being the application and allotment money received for 1.27,500 shares @ & 85 per share) Equity Share Application and Allotment A/c Dr. 1,08.37,500 ‘To Equity Share Capital A/e (75,000 X 55) 41,25,000, ‘To Securities Premium Reserve A/e (75,000 x 30) 22,50,000, ‘To Equity Share First and Final Call A/e (25,000 85) 21.25,000, ‘To Bank A/e (27,500 x 85) 28.37,500, (Being the shares allotted; applications for 27,500 shares rejected and the balance applicants issued shares on pro- rata) Equity Share First and Final Call A/e (75,000 * 45) Dr. 33.75,000 ‘To Equity Share Capital A/e 33,75,000 (Being the first and final call due on 75,000 shares @ @ 45 per share) Bank A/e (WN 2) Dr. 12,37,500 ‘To Equity Share First and Final Call A/e 12.87,500, (Being the amount due on shares first and final eall received except on 750 shares) Equity Share Capital A/e (750 * 100) Dr. 75,000 ‘To Equity Share First and Final Call A/e 12,500 ‘To Forfeited Shares A/e 62,500 (Being 750 shares forfeited for non-payment of first and final call) Bank A/e (750 x 150) Dr. 1.12,500 ‘To Equity Share Capital A/e 75,000 ‘To Securities Premium Reserve A/e 37,500 (Being 750 forfeited shares re-issued @ % 150 per shares as fully paid-up) Forfeited Shares A/e Dr. 62,500 ‘To Capital Reserve A/e 62,500 unt of forfeited shares credited to capital wie) (Being the an reserve upon reWorking Notes 1. Share application and allotment money (1,000 x. 85) Share alloted 3 shares against 4 applied, ic. 750 Appropriation of share application money (-) Towards share eapital (750 * 95) (©) Towards securities premium reserve (750 X 30) Excess application and allotment money received Amount due towards first and final eall (750 X 45) Amount not received on 750 shares (38.750 ~ 21,250) 2. Amount Received on First and Final Call Due (75,000 * 45) (O) Received-in-advance* (©) Not Received on 750 Shares (WN 1) Received on first and final eall Received in Adv ce Adjusted in Capital and Securities Premium Reserve ‘= 1,08,37,500 — 23,37,500 ~ 41,25,000 - 22,50,000 = © 21,25,000 or Journal ‘Total Amount Received on Application - Amount Refi Amount ®@ $5,000 (41,250) (22.500) (63.750) 21.250 33,750 12.500 38,75,000 (21.25,000) 12.50,000 (12.500) 12.87.50 led — Amount Date Particulars LP.| Dr. @) | Cr @), Bank A/c (1,800 x 10) ‘To Share Application A/e (Being application money on 1,800 @ T 10 each received) Dr. Share Application A/c ‘To Share Capital A/e (1,000 10) ‘To Bank A/e (800 x 10) To Share Allotment A/c (500 X 10) (Being share application money transferred to share capital account on 1,000 shares @ & 10 each on the pro-rata basis) Share Allotment A/e ‘To Share Capital A/c (1,000 x 20) ‘To Securities Premium Reserve A/c (1,000 X 5) (Being share first call money due) Bank A/e To Share Allotment A/e (Being share allots 4000) nt money received with exception of & Dr. Share First Call A/e Dr. 18,000 18,000 18,000 10,000 3,000 5,000 25,000 20,000 5,000 16,000 16,000 40,000‘To Share Capital A/e (1,000 * 40) (Being share first call money received) ‘To Share First Call A/e (Being share first call money received with the exception of 000) Bank A/c (800 x 40) Dr. ‘To Share Allotment A/e ‘To Share First Call A/e (200 * 40) ‘To Share Forfeiture A/e (Being 200 shates forfeited for the non-payment of allotment and share first call) Share Capital A/e (200 70) Dr. Securities Premium Reserve A/e (200 X 5) Dr. ‘To Share Capital A/e (200 * 70) (Being reissned of forfeited shares at % 60 per share @ 70 paid-up) Bank A/c (200 x 60) Dr. Share Forfeited A/e (200 X 10) Dr. To Capital Reserve A/e (Being transfer of share forfeited to capital reserve account) Share Forfeited A/e Dr. 2,000 14,000 1,000 12,000 2,000 1,000 40,000 82,000 4,000 8,000 3,000 14,000 1,000 Working Notes 1 300 Nutr of hares applied ty Navn = 200% 1520-00 stars Calculation of Amount of Calls-in-arrears Amount ® Amount received on application (200 % 10) 3,000 Amount due on application (200 * 10) = (2,000) Excess amount to be adjusted on allotment 1,000, Amount die om allotment (200 % 25) = 5,000 () Amount to be adjusted Calls-in-arrears at allotment Callssin-arrears at Ist eall (200. 40) Calenlation of Amount Received at Allotment (1,000 x 25) = Amount due on allot () Amount received at application to be adjusted (Calls arrears at allotment Amount received at allotment 8,000 20,000) (4.000) 16,00026. Geeta, Sita and Reeta are partners with profit sharing ratio of 2; 2: 1. Their balance sheet is given below Balance Sheet as at 8lst December, 2021 Liabilities Amount ‘Assets ‘Amount @ ® Creditors 100,000 | Bank 60,000 Bills Payable 70,000 | Debtors 52,000 Reserve Fund 40,000| (-) Provision for (2,000)| 50,000 Doubtful Debts Workinen Compensation Fund 30,000 | Buieing 2.00,000 Profit and Loss 20,000 | Furnituxe 130,000 Provident Fund 20,000 | Investment 30,000 Capital A/es Prepaid Insurance 10,000 Geeta 80,000 Goodwill 20,000 Sita 80,000 Recta 60,000 | 2.20.00 500,000, 5,00,000 Additional Information (i) Sangeeta comes as a new partner and brings € 66,750 as capital and his share of goodwill in eash. (ii) New ratio ix 3:3: 2:2. (iii) Goodwill of the firm is & 50,000. (iv) Prepaid insurance is no more required. (v) Provision for doubtful debts is to be increased to & 5,000. (vi) Investment is valued at % 20,000 and is taken over by Geeta. (vii) Furniture valued at & 1,00,000. (viii) Building valued at 120%. Prepare necessary accounts and balance sheet. Aryan, Shyam and Dalbir are partners with ratio of 5: 3 : 2 Balance Sheet st Liabilities Amount Assets Amount @ @ Creditors 1,00,000 | Cash in Hand 40,000 Expenses Owing 20,000 | Debtors 60,000 Reserve Fund 30,000 | Building 100,000 Workmen Compensation Fund 10,000 | Bills Receivable 40,000 Capital A/es Goodwill 20,000 Aryan 60,000 Profit and Loss 30,000 Shyam 60,000 Patents 30,000 Dalbir 40,000 | 160,000 3,20,000 3.20,000 Additional Information (i) Aryan takes retirement. (ii) New ratio of Shyam and Dalbir is 1: 1 and goodwill of the firm is valued at & 60,000. (iii) Expenses owing increased by & 10,000. (iv) Creditors increased to @ 1,05,000.(v)_ 10.000 bills receivable dishonoured and are not recoverable. (vi) Patents are now value less. (vii) % 20,000 unrecorded investment brought into hooks, c accounts and balance sheet, Ans: }) F 10,000 paid to Aryan in cash and balance is transferred to his loan account. Prepare necessary Dr. Revaluation A/e ce. Particulars ‘Amount Particulars Amount ® ®, ‘To Prepaid Insurance A/e 10,000 | By Bi 40,000 To Provision for Doubtful Debts Afe | 3,000|By Revaluation Loss ‘Transferred to To Investment A/c 10,000 | Geeta’s Capital A/e 5.200 ‘To Furniture A/e 30,000 | Sita’s Capital A/e 5,200 Recta’s Capital A/e 2,600| 13,000 53,000 53,000 Dr. Partners’ Capital Account Cr. Particulars | Geeta | Sita | Recta | Sugete | Particulars | Geeta | sita | Recta | sangocte @), @), @) ® ®@) @) ®) ®) ‘To Goodwitl | 8,000] 8,000] 4,000! — —|By Balance | $0,000] 80,000] 60.000] — Ale b/d To Investment | 20,000 =| = —|By Profit and | 8,000] 8,000] 4,000] — Ale Loss A/e To 5.200} 5.200] 2.600] —| By Workmen| 12.000] 12.000] 6,000) — Revaluation Compensation Afc (Loss) Fund A/e To Balance | 87,800] 1,07,800| 71,400] 66,750|By Reserve 16,000] 16,000] 8,000] — ofa Fund A/e By Premium| 5,000] 5,000} = —| for Goodwill Ae By Bank A/e = =| =| 66.250 1,21,000 | 1,21,000| 78.000 | 66,750 121,000 | 1.21,000| 78,000] 66.750 Dr. Bank Account Ce. Particulars Amount (%) Particulars Amount (®) To Balance b/d 60,000 | By Balance c/a 1,36,750 ‘To Premium for Goodwill A/e 10,000 ‘To Sangeota’s Capital A/e 66,750 136.750 136,750Balance Sheet fas at 31 December, 2021 ‘Amount ‘Assets “Amount ® ® Creditors 100,000 | Bank 136,750 Bills Payable 70.000 | Debtors Provident Fund 20,000 (~) Provision for Doubtfial Debts 47,000 Capital A/es Building (2,00,000 + 40,000) 2.40,000 Geeta 87.800 Furniture (1,30,000 ~ 30,000) 100,000 Sita 107,800 Reta 71.400 Sangeeta 66.750| 333.750 528.750 5,28.750 Working Note Calculation of Sacrificing Ratio Sacrificing Ratio = Old Share ~ New Share a. iy iSita= 2 1s ratio = Geeta : 1 Dr. Revaluation A/c Cr. Particulars Amount ) Particulars Amount (2) ‘To Bills Receivable A/c 10,000 | By Investment A/c (Unrecorded) 20,000 To Patents A/e 30,000 | By Revaluation Loss Transferred to ‘To Expenses Owing A/e 10,000 | Aryan's Capital A/e 17,500 "To Creditors A/e 5,000| — Shyamn’s Capital A/e 10,500 Dalbir’s Capital A/e 7.000 35,000 155,000 55,000 Dr. Partners’ Capital Account cr, Particulars Aryan | Shyam | Dalbir Particulars Aryan | Shyam | Dalbir ® @ ®@ ® ®) @ ‘To Goodwill A/e 10,000] 6,000] 4,000] By Balance b/d 60,000] 60,000] 40,000 To Profit and Loss} 15,000) 9,000} 6,000] By Shyam’s Capital! 12,000] — - Ale Ale To Aryan’s Capital —| 12,000] 18,000) By Dalbir's Capital | 18,000] — - Ale Ae To Revaluation A/c} 17,500] 10,500] 7,000| By Reserve Fund! 15,000 9,000] 6,000 (Loss) Ae ‘To Cash Afe 10,000) = —|By Workmen| 5,000] 3.000] 2,000 Compensation Fund Ase To Aryan’s Loan Afe | 57,500) — = To Balance e/d —| 31,500] 13,000 1,10,000 | 72,000 48,000 1,10,000| 72,000 48,000Dr. Cash, Accom Cr Particulars Amount (3) Particulars Amount (3) To Balance b/d 440,000 | By Aryan’s Capital A/e 10,000 By Balance e/d 30,000 40,000 40,000 Balance Sheet as at Liabilities Amount Assets Amount ®@), ®@ Creditors (1,00,000 + 5.000) 1,05,000 | Debtors 60,000 Expenses Owing (20,000. + 30,000 | Building 1,00,000 10,000) Aryan’s Loan A/e £57,500 | Bills Receivable (40,000 ~ 10,000) 30,000 Capital A/es Investment 20,000 Shy 34.500 Cas 30,000 Dalbir 13,000] 47,500 240,000 240,000 Working Note Gaining ratio = New share ~ Old share 3 ear ah ~ Shyam = 5 — Hy = Sig8 = hi Dalbic = Fy = Fg = Hh Gainning rat 3 wSH Bo Aryans share of goodil = 60,000% fr = 0,00, toe ame by Shyam and Dai inthe gaining ratio, Le. 2:3 Part B (Financial Statement Analysis) 27. If current assets are € 1,00,000, current liabilities are & 50,000, inventories & 6,000 and prepaid expenses & 10,000, what is the value of quick assets? (a) 70.000 (b) 84.000 (c) 58.000 (a) % 64.000 Ans : (b) % 84.000 Quick Assets = Current Assets ~ Inventories ~ Prepaid Expenses ,00,000 ~ 6,000 ~ 10,000 = % $4,000 28. For a company manufacturing garments, procurement of raw material , incurrence of mannfaeturing expenses, sale of garments are classified as, _ activity (a) investing (b) operating (©) finan (a) None of these Which of the follow! (Cash flow staten or 4 statement(s) is/are true? nt is not a replacement of fund flow statementCash flow statement is a substitute of income statement (ii) Cash flow statement records only cash items Gv) Cash flow statement records only cash equivalents items Select the correct option from the below options ’) and (i) are correct (b) Only (ii) is correct (2) Allof these (b) operating (c) Only @) is correct Balance Sheet (Extract) Particulars Note No. | 31 March 2020 (%) | 31 March 2019 (%) Share Capital 4,50,000 350,000 Reserves and Surplus i 125,000 50,000 Notes to Accounts Particulars Note No. | 31 March 2020 (@) 31 March 2019 (@) 1. Reserve and Surplus Surplus 1,25,000 50,000 Additional Information Proposed Dividend - 2020 % 1,00,000; 2019 % 62,500 Based on above extraordinary items’ to be used while preparing eash flow statement. (a) %2,25,000 (b) 71,387,500 (©) 1.25.00 (a) % 50,000 Ans ® Amt @) Profit as per Statement of Profit and Loss (1,25,000~ 50,000) = 8 75,000 62,500 formation given, you are required to find out the value of ‘net profit before tax and 137,500 Share option outstanding account Interest accrued and due on secured loans (fii) Advances recoverable in cash Jer which head and sub-head will the following items appear in the balance sheet of a company? Ans : Items Major heads Sub-heads (i) | Share option outstanding account Shareholder’s funds Reserves and surplus (ii) | Interest accrued and due on secured loans | Current liabilities Other current liabilities Advances recoverable in eash Current assets Other current assetsBL. Livestock is a item of __assets tunder sub-head fixed assets and the major head non-eurrent assets, (a) trade receivables (b) tangible (©) intangible (a) inventories or Ratio analysis under financial statement analysis is significant as it (a) ignores qualitative factors (b) helps in locating weak points of the firm (6) helps in window-dressing (d) does not requires any standards Ans (b) tangible (b) helps in locating weak points of the Hanuman Group Limited has a current ratio at 3 1. Its management is interested in maintaining this ratio at 41, What are the two choices to do so? Ans: Choices to do so are (any three) (i) To pay a current liabili (Gi) To sell stock-in-trade at profit. (iii) To issue equity /debt for cash. (iv) To sell fixed assets. 33. From the following balance sheet of Pratap Foods Limited as at 31st March, 2020 and additional information, calculate the debtors’ turnover ratio and debt collection period. Balance Sheet as at Bist March, 2020 Particulars Bist March 2020 (%) 1 EQUITY AND LIABILITIES 1. Shareholder’s Funds (i) Share Capital 500,000 (Gi) Reserves and Surplus 2,00,000 2, Non-Current Liabilities (i) Long Term Borrowing 2,00,000 (ii) Deferred Tax Liabilites (Net) 50,000 3. Current Liubilities (i) Trade Payables 2,00,000 (ii) Short-term Provisions 10,000 Total 11,60,000 IL ASSETS. 1, Non-Current Assets : Fixed Assets (Tangible assets) 7,00,000 2. Current Assets (i) Trade Receivables 3,50,000 (Gi) Inventories 41,10,000 Total 11,60,000Additional Information (8) Credit sales of & 15,00,000 and cash sales of € 2,50,000. (ii) ‘Trade receivables in the beginning of the year were & 4,50,000, Calculate trade receivables turnover ratio from the following information Cost of revenue from operations € 450.000, Gross profit on sales 20%, Cash sales 25% of net exedit sales, Opening trade receivables ® 60,000, Closing trade receivables © 90.000, Ans: Debtors’ or Trade Receivables Turnover Ratio _ Credit Revenue irom Operations (Net credit sales) =" Trade Receivables or Average Debtors * = Dor bay = 875 times Average Deore = 35000 1.50.000 «65 ong — i 2 Debt Collection Period = Tyebeor's Tumaver Ratio ~ 3.75 ‘Trade Receivables Turnover Ratio = Net Gredit Seles ‘Average Trade Receivables eninig TR + Clos Average Trade Receivables = CEeBmE TRE Closing TR. _ $0,000-5 90,000 co«s = 8 4,50,000 it will be always 25% of COGS (cos). Gross Profit = COGS x 25, = 4,50,000 x 25 = €1,12,500 MOGs 1oy = 4.8 To = €1.12.8 Net Saks = COGS + Grow Profit = 4,50,000 + 1,12.500 = €5.62,500 Net Saks = Cast Sales + Credit Sales e250 = 2x25 42 502,500 = +2 75,000 When gross profit is 20% of sales, th nso = 48 = Se Net Crit Stes (2) = 5,62.500%4 = € 450,000 Now, Trade Recdvable Turnoner Rati = 222.2% 6 tiny Jaya an alumui of Apex School initiated her startup Super Moon Private Limited in 2020. The net profit after tax of Super Moon Private Limited for the year ended 31st March, 2020 was € 340,000. Following is the extract of Balance Sheet of Super Moon Private Limited as at 31st March, 2020 Particulars 31 March 2020 (%) [31 March 2019 (8) Inventories 69,00 72,000 Trade Receivables 94,000 61,000 Prepaid Expenses 14,000 3,000 ‘Trade payables 82,000 78,000 Provision for Tax 13,000 19,000 Depreciation charged on plant and machinery & 49,000, insurance claim received & 20,000 and gain on sale of investments of & 8,000 appeared in the statement of profit and loss for the year ended 31st March, 2020, You are required to (3) Calculate net profit before tax and extraordinary items, i) Calculate operating profit before working capital changes. (Gi) Calculate cash flow from operating actCash Flow from Operating Activities Particulars Amount (®) [Net Profit after Tax ax per Statement of Profit and Los (4) Provision for Tax (Current Year) (©) Extraordinary Ttem Insurance Claim Received Net Profit before Tax andl Extraordinary Items (4)/€) Non-Cash and Non-Operating Items (+) Depreciation on Plant Machin (J) Gain (Profit) on Sale of Investments Operating Profit before Working Capital Changes (4) Decrease in current Assets and Increase in Current Inventories ‘Trade Payables (9) Increase in Current Assets ‘Trade Receivables Prepaid Expenses Cash Generated from Operations (0) Income Tax Paid (Note) Cash Flow from Operating Activities before Extraordinary Hems Extraordinary Items (+) Insurance Claim Received Cash Flow from Operating Activities 340,000 13,000 3,53,000 (20,000) 3,33,000 49,000 3.82.00 (8.000) 3,00 4,000 7,000 381,000 33,000 11,000 (44,000) 3,37,000 (29,000) 3,18,000 20,000 3,358,000 Note: Previous year’s provision for tax is the amount of tax paid and current year’s provision for tax is treated as provision for tax made during the year.