CHENNAI SAHODAYA SCHOOLS COMPLEX

COMMON EXAMINATION
Class-12
(Accountancy 055/1)
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 - Accounting for Partnership Firms and Companies.
4. Part – B- Analysis of Financial Statements
5 Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
6. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21 ,22 and 33 carries 4 marks each
8. Questions Nos. 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.
Roll No.: Maximum Marks:80
Date: 08/01/2024 Time allowed: 3 hours
PART-A
(Accounting for Partnership Firms and Companies)
1 Muruga and Ganapathy are partners in a firm sharing profits and losses in the ratio 1
of 5:1
Balance Sheet(Extract)
Liabilities Amount(Rs.) Assets Amount(Rs.)
Machinery 40,000
If value of machinery in the balance sheet is undervalued by 20%,then at what value will
machinery is shown in new balance sheet.
(a)Rs.44,000 (b)Rs.48,000 (c) Rs.32,000 (d)Rs.50,000
Assertion(A): Partner’s capital account will not show a debit balance in spite of
2 1
losses year after year when Partners’ capitals’ are fixed.
Reason(R): Partners capital remains fixed unless there is addition or withdrawal
of capital. Under this method, the ‘share of loss’ is debited to the
partner’s current account.
Alternatives:
(a) Both assertion (A) and reason(R) are true and reason (R) Is the correct explanation
of Assertion(A)
( b) Both assertion(A) and reason(R) are true and reason (R) Is not the correct explanation
of Assertion(A)
(c) Assertion(A) is correct but reason(R) is false+
(d) Assertion(A) is false but reason(R) is correct
3 Gama Ltd. Invited applications for issuing 2,00,000 shares of Rs.10 each payable Rs.3 per share 1
on application. Rs.5 per share on allotment and Rs.2 per share on first and final call. The issue
was oversubscribed and the company received Rs.9,60,000 as application money. The company
rejected some applications and pro rata allotment was made to the remaining applicants in the
ratio of 5:4. For how many share Applications were rejected?
(a)50,000 (b)1,30,000 (c)70,000 (d)1,20,000
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 (or)
Zenath Ltd acquired the business of Agarwal Ltd. consisting sundry assets of Rs.3,60,000 and
sundry creditors Rs.1,00,000 for a consideration of Rs.3,07,200. Payment was made by a cheque
in favor of Agarwal Ltd. of Rs.38,400 and remaining it issued 14% Debentures of Rs.100 each
fully paid at a discount of 4% . The amount by which Goodwill A/c will be debited is ______
and the number of debentures issued to Agrwal Ltd. will be _______.
(a)Rs.47,200 :2,800 (b) Rs.47,200 : 2,688 (c) Rs.52,800 :3,072 (d) Rs.52,800 : 2,800
4 Asha ,Nisha and Disha shared profits and losses in the ratio of 3:2:1 respectively .With effect
from 1st April 2022,they agreed to share profits equally. The goodwill of the firm was valued at 1
Rs 18,000.Journal entry to record this effect will be:
(a) Asha‘s capital A/C…….Dr 3,000
To Disha‘s capital A/c 3,000
(b)Disha‘s capital A/C…….Dr 3,000
To Asha‘s capital A/c 3,000
(c) Asha‘s capital A/c ….Dr 9,000
Disha‘s capital A/c ….Dr 6,000
Nisha‘s capital A/c….Dr 3,000
To Goodwill A/c 18,000
(d)Disha‘s capital A/C…….Dr 3,000
To Nisha‘s capital A/c 3,000
(or)
Which of the following statements are correct?
(i)The liability of a partner for acts of the firm is unlimited.
(ii)Private assets of a partner can also be used for paying the debts of the firm.
(iii)Each partner is liable jointly with all other partners and also severally to the
third parties for all the acts of the firm done, while he is a partner.
(iv)The liability of a partner is limited to the extent of his capital contribution.
(a)(iii) and (iv) (b) (i) and (ii)
(c) (i) ,(ii) and (iii) (d) (i) ,(ii) , (iii) and (iv).
5 Which of the following items can’t be recorded in the Profit & Loss Appropriation A/c: 1
(a) Interest on capital ( b)Rent paid to partners
(c) Interest on drawings (d)Partner’s Salary
6 When 1,000 debentures of Rs.100 each were issued at 5% discount, redeemable at a premium of 1
8%, how much amount will be credited to premium on redemption of debentures account?
(a)Rs.3,000 (b)Rs.13,000 (c)Rs.8,000 (d) Rs.5,000
(or)
Which of the following statement is correct?
(a)A debenture holder is an owner of the company
(b)A debenture holder can get his money back only on the liquidation
of the company.
(c)A debenture issued at a discount can be redeemed at a premium.
(d) A debenture holder receives interest only in the event of profits.
7 Assertion(A): Securities Premium cannot be utilised for meeting the 1

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 working capital requirements of the business.
Reason(R): Securities Premium may be applied only for the purpose mentioned in
Section 52(2) of the Companies Act,2013.
Alternatives:
a) Both assertion (A) and reason(R) are true and reason (R) Is the correct explanation of
Assertion(A)
b) Both assertion(A) and reason(R) are true and reason (R) Is not the correct explanation of
Assertion(A)
c) Assertion(A) is correct but reason(R) is false+
d) Assertion(A) is false but reason(R) is correct
8 Anbu, Babu and Charu were partners in a firm sharing profits and losses in the ratio of 5:3:2. 1
Charu retired and his capital balance after adjustment regarding reserves, accumulated
profits/losses and his share of gain on revaluation was Rs.2,50.000. Charu was paid Rs.3,22,000
including his share of goodwill . The amount credited to Charu’s capital account, on his
retirement, for goodwill will be :
(a)Rs.72,000 (b)Rs.7,200 (c)Rs.24,000 (d) Rs. 36,000
(or)
X,Y and Z are partners, sharing profits in the ratio 3:2:1. Z is guaranteed a minimum profit of
Rs.60,000 p.a . During the year the firm incurred a loss of Rs.1,20,000. The
share of profit(loss) of partners is:
(a) X (Rs.1,08,000), Y(Rs 72,000), Z Rs.60,000
(b) X (Rs.1,0,000), Y(Rs 80,000), Z Rs.60,000
(c) X (Rs.1,20,000), Y(Rs 60,000), Z Rs.60,000
(d) X (Rs.60,,000), Y(Rs 40,000), Z Rs(.20,000)
Read the following hypothetical situation, answer question no.9 to 11 1
Preethi and Ramkey are partners in a firm. Their capitals were Rs.3,00,000 and Rs.2,00,000
respectively. Preethi was to get a commission of 10% on the net profits before charging any
commission. However, Ramkey was to get a commission of 10% on the net profits after
charging all commissions. Following Profit and Loss Appropriation Account for the year
ended 31st March 2022 Is given to you:
Profit and Loss Appropriation Account
for the year ended 31st March 2022
Dr. Cr.
Particulars Rs. Paticulars Rs.

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 To Partner’s Commission ______ By Profit &Loss
A/c
Preethi Capital
(Rs._____x 10/100)Rs.44,000
Ramkey Capital ______
Rs._____ ________
To Profit c/d ________
Preethi Capital
Rs._____ ___________
___________
Ramkey Capital
Rs._____

9 Ramkey’s commission will be: 1

(a)Rs.40,000 (b) .44,000 (c)36,000 (d)36,364
1 Ramkey’s share of Profit will be_______________ 1
0 (a)Rs.1,80,000 (b) 1,44,000 (c)Rs.2,16,000 (d)Rs.1,60,000
1 What will be the profit sharing ratio 1
1 (a)1:1 (b) 3:2 (c) 2:3 (d) 2:1
1 Bobby Ltd. forfeited 500 shares of Rs.10 each, Rs.7 called up, issued at premium of Rs.2 per 1
2 share to be paid at the time of allotment, for non-payment of
first call of Rs.2 per share. The entry of forfeiture will be:
Particulars LF Debit(Rs.) Credit(Rs.)
(a) Share Capital A/c Dr. 3.500
Securities Premium A/c Dr. 1,000 1,000
To Share First Call A/c 3,500
To Forfeiture A/c
(b) Share Capital A/c Dr. 4,500
Securities Premium A/c Dr. 1,000
To Share First Call A/c 1,000
To Forfeiture A/c 4,500
(c) Share Capital A/c Dr. 4,500
To Share First Call A/c 1,000
To Forfeiture A/c 3,500

(d) ) Share Capital A/c Dr. 3,500

To Share First Call A/c 1.00t
To Forfeiture A/c 2,500
1 Anjan Ltd. forfeited 4,000 shares of Rs.20 each, fully called up, on which only application 1
3 money of Rs.6 has been paid . One of these 2,000 shares were reissued and Rs.8,000 has been
transferred to capital reserve. Calculate the rate at which these shares were reissued.
(a) Rs.20 per share (b) Rs.18 per share (c) Rs.22 per share (d) Rs.8 per share.
1 Anil and Cendralla were partners in a firm. Their Balance Sheen showed Furniture at 1
4 Rs.2,00,000; Stock at Rs.1,40,000 :Debtors at Rs.1,62,000 and Creditors at Rs.60,000. Sundar

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 was admitted and new profit sharing ratio was agreed at 2:3:5. Stock was revalued at
Rs.1,00,000;Creditors of Rs.15,000 are not likely to be claimed. Debtors for Rs.2,000 have
become irrecoverable and Provision for doubtful debs to be provided @10%. Anil’s share in loss
on revaluation amounted to Rs.30,000. Revalued value of Furniture will be:
(a)Rs.2,17,000 (b) Rs.1,03,000 (c) Rs.3,03,000 (d) Rs.1,83.000
1 On 1-4-2022, Babu and Neranjan entered into partnership to construct toilets in government girls 1
5 schools in the remote area of Salem. They contributed capitals of Rs.10,00,000 and Rs.15,00,000
respectively . Their profit sharing ratio was 2:3 and interest allowed on capital as provided in
the Partnership Deed was 12% per annum. During the year ended 31.3.2023, the firm earned a
profit of Rs.2,00,000.The interest on partners’ capitals will be:
(a) Babu Rs.80,000 and Neranjan Rs.1,20,000
(b) Babu Rs.1,20,000 and Neranjan Rs.1,80,000
(c) Babu Rs.1,00,000 and Neranjan Rs.1,00,000
(d)None of the above.
(or)
Ramkey and Sundaram are partners. On 1st April 2020 Their capitals are Rs.2,50,000 and
1,50,000 respectively. On 1st October 2020 they decided that their Capitals should be
Rs.2,00,000 each. The necessary adjustments in the capitals were made. As per the partnership
deed interest on capital is allowed to all the partners.
Interest on capital allowed@ 8% p.a. How much interest on capital is to be
allowed to Ramkey?
(a)Rs.17,000 (b) Rs.20,250 (c) Rs.15,000 (d) Rs.22,500
1 On dissolution of a partnership firm, furniture appearing in the Balance Sheet was Rs.2,00,000. 1
6 50% of the furniture was taken over by a partner at Rs.65,000 and balance 50% was sold at 20%
less than the book value. The amount _______ ___to bank account was _________.
(a)credited: Rs.80,000 (b) debited : Rs 80,000
(c) credited : Rs 1,00,000 (d) debited : Rs 1,00,000
1 Ananth,Bindu and Nandan are partners sharing profits in the ratio of 4/9:1/3:2/9. Bindu retires . 3
7 Ananth and Nandan decide to share profits in the ratio of 1:2.
It was decided to adjust Bindu’s share of goodwill in the accounts of continuing partners. Fill in
the missing figures in the following Journal Entry.
Journal
Particulars LF Debit(Rs.) Credit(Rs.)
Nandan’s capital A/c _______
To Ananth Capital A/c ______
To Bindu Capital A/c 30,000
(Nandan Compensates Ananth and
Bindu for the loss in the share of
profits)
1 A,B and C are partners sharing profits in the ratio of 2:3:5. Their Fixed Capitals on 3
8 31-03-2022 were Rs.1,00,000;Rs.1,50,000 and Rs.2,00,000 respectively. The firm earned a
profit of Rs.1,80,000 during the year ended 31-03-2022 which have been already distributed to
them. It was subsequently found that in the next financial year.(i) The profits were distributed
equally (ii)A was entitled get a annual salary of Rs.6,000 but it was given to B (iii)Interest on
Capital is given to partners @10% p.a. instead of 8% p.a. You are required to pass a single
journal entry in the beginning of the next year to rectify the above mistakes.
(or)

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 The Capital Accounts of Amar and Harsh stood at Rs.2,00,000 and Rs.3,00,000 respectively
after the necessary adjustments in respect of drawings and net profit for the year ended 31st
March 2023. It was subsequently ascertained that interest on capital@12% p.a was not taken
into account while arriving at the divisible profits for the year. During the year 2022-2023, Amar
had withdrawn Rs.20,000 and Harsh’s drawing were Rs.10,000. The net profit for the year
amounted to Rs.1,50,000. The partners shared profits and losses in the ratio of 3:2. You are
required to give necessary rectifying entries using P&L adjustment account.
1 On 1st April 2022 Rinitha Ltd. took over assets of Rs.8,40,000 and liabilities of Rs.30,000 of 3
9 Swetha Ltd. for a purchase consideration of Rs.8,00,000. Rinitha Ltd. accepted a Bills of
Exchange for Rs.3,80,000 and the balance was settled by issuing 10% Debentures of Rs.100
each at a premium of 5% and Redeemable after 6 years at a premium of 15% . Show the journal
entries in the book of Rinitha Ltd.
(or)

Give the journal Entries to record the following transactions of forfeiture and reissue of shares
and open Share Forfeited Account.
AMT Ltd. forfeited 470 Equity Shares of Rs.10 each issued at a premium of Rs.5 per share for
non-payment of allotment money of Rs.8 per share (including share premium Rs.5 per share)
and first and final call of Rs.5 per share. Out of these,
60 Equity shares were subsequently reissued at Rs.14 per share.
2 It wash agreed to calculate the value of goodwill of firm at three year’s purchase of the 3
0 weighted average profits of the past four years. The appropriate weights to be used to each year
ended on 31st March are

2018 Weights 2019 Weights 2020 Weights 2021 weights

(Rs) (Rs) (Rs) (Rs)
20,200 1 24,800 2 20,000 3 30,000 4
On a scrutiny of the accounts the following matters are revealed:-
(i)On 1st December,2019 a major repair was made in respect of the plant incurring
Rs.6,000 which amount was charged to revenue. The paid sum is agreed to be
capitalized for goodwill calculation subject to adjustment of deprecation of 10% p.a on
reducing balance method.
(ii)The closing stock for the year ending on 31st March 2019 was overvalued by
Rs.2,400.
(iii)To cover management cost as annual charge of Rs..4,800 should be made for the
purpose of goodwill calculation. Compute the value goodwill.

2 Galaxy Ltd. has an Authorized capital of Rs.80,00,000 divided into 5,00,000 equity shares of 4
1 Rs.10 each and 3,00,000 9% preference share of Rs.10 each. The company invited applications
for all the preference shares but only 4,00,000 equity shares.
All the preference shares were subscribed ,called up and paid while subscription were received
for only 3,70,000 equity shares. During the first year Rs.7 per share
were called.
Varun holding 4,000 shares and Ashwin holding 6,000 shares did not pay the first call of
Rs.2( They paid Rs.5 for application and allotment). Varun shares were forfeited after the first
call and later on 3,000 of the forfeted shares were reissued at Rs.6 per share Rs.7 called up.
Show the following:
(a) Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the
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 Companies Act , 2013.
(b) Also prepare ‘Note to Accounts’ for the same.
2 Give the necessary journal entries for the following transactions on the dissolution 4
2 of the partnership firm of Teena and Ramaya after the various assets(other than cash) and
external liabilities have been transferred to Realization Account:
(i) An Unrecorded asset of Rs.2,000 and cash Rs.3,000 was paid for liability of Rs.6,000 in full
settlement.
(ii)100 shares of Rs.10 each have taken over by partners at market value of Rs.20 per shares in
their profit sharing ratio which is 3:2
(iii)Stock of Rs.30,000 was taken over by a creditor of Rs.40,000 at a discount of 30% in full
settlement. .
(iv)Expenses of realization Rs.40,000 were to be borne by Ramya. Ramya used the firms cash
for paying these expenses.
2 Zimzamb Ltd issued a prospectus inviting applications for 5,00,000 equity shares of Rs.10 each 6
3 issued at a premium of 10% payable as:
Rs.3 on Application,Rs.5 on Allotment(including premium) and Rs.3 on call. Application were
received for 6,60,000 shares.
Allotment was made as follows:
(a)Applications of 4,00,000 shares were allotment in full
(b)Applications of 2,00,000 shares were allotted 50% on pro-rata basis.
(c)Applications of 60,000 shares were issued letters of regret.
A shareholder to whom 500 shares were allotted under
category(a) paid full amount on shares allotted to him along with allotment money. Another
shareholder to whom 1,000 shares were allotted under
category (b) failed to pay the amount due on allotment. His shares were immediately forfeited.
This shares were then reissued at Rs.14 per share as Rs.7 paid up. Call has not yet been made.
Show necessary journal entries for the above transitions in the boos of the company by opening
calls-in-arrears Account.
(or)
Alfa Ltd. has offered 50,000 Equity Shares of Rs.100 each at a premium of Rs.20, payable as
follows:
Application Rs.50;Allotment Rs.40(including premium) and balance on first and final call. The
bank account of the company has received Rs.35,00,000 on account of share application money.
Alfa Ltd. decided to allot shares to all the applications on pro-rata basis. The balance in calls in
arrears account at the time of allotment and first and final call amounted to Rs.1,00,000 and
Rs.1,50,000 respectively. These shares were forfeited and reissued at Rs.90 per share as fully
paid up.
Prepare Cash Book and pass necessary entries..
2 Akil and Nikil are partners in a firm. Their balance sheet as at 6
4 31st March,2022 was as follows:.
Liabilities Rs. Assets Rs.
Provision for doubtful debts 4,000 Cash 10,000
Workmen Compensation 5,600 Sundry 80,000
Reserve Debtors
Outstanding Expenses 3,000 Stock 20,000
Creditors 30,000 Fixed Assets 38,000
Capitals Profit & Loss 4,000

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 A/c
Akil 50,000
Nikil 60,000 1,10,000
1,52,000 1,52,000
Vikil was taken into partnership as from 1st April,2022. Vikil brought Rs.40,000. as his capital
but he is unable to bring any amount for goodwill. New profit sharing ratio is 3:2:1.
Following terms were agreed upon:
1.Claim on account of Workmen Compensation is Rs.3,000
2.To write off bad debts amounting to Rs.6,000
3.Creditors are to be paid Rs.2,000 more.
4.Rs.2,000 be provided for an unforeseen liability.
5.Outstanding expenses be brought down to Rs.1,200.
6.Goodwill is valued at Rs.18,000.
Show the journal entries of the new firm.
(or)
Leela ,Madan and Naresh were partners in a firm sharing profits in the ratio of 2:2:3.
Balance Sheet as at March 31, 2022

Liabilities Rs. Assets Rs.

Creditors 1,60,000 Land and Building 10,00,000
Bank Overdraft 44,000 Machinery 5,00,000
Long-term Debts 4,00,000 Furniture 7,00,000
Employee PF 76,000 Investments 2,00,000
Closing Stock 8,00,000
Capitals:
Sundry Debtors 4,00,000
Leela 12,50,000 Bank 80,000
Madan 8,00,000 Deferred 1,00,000
Advertisement Exp.
Naresh 10,50,000 31,00,000

17,80,000 17,80.000
On April 1,2022 Madan retired on the following terms:
(i)Land and Building be appreciated by Rs.2,40,000 and Machinery
be depreciated by 10%.
(ii)50% of Investments were taken over by the retiring partner at book value.
(iii)An old customer, Mohit whose account was written off as bad debt had paid Rs.7,000 in
settlement of his full debt of Rs.10,000.
(iv) Provision for doubtful debts was to be made at 5% on debtors.
(v)Closing stock will be valued at market price which is
Rs.1,00,000 less than book value.
(vi)Goodwill of the firm be valued at Rs.5,60,000 and Madan’s share of goodwill be adjusted in
the accounts of Leena and Naresh. Leena and Naresh decided to share future profits and losses in
the ratio of 3:2.
(vii)The total capital of the new firm will be Rs.32,00,000 which will be in the proportion of the
profits sharing ratio of Leena and Naresh.
(viii)Amount due to Madan was settled by accepting a bill of exchange in the favors payable
after 4 months.
(ix) Gain on revaluation account amounted to Rs.72,000.
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 Prepare Partner’s Capital accounts and Balance sheet of firm after Madan retirement.
2 Sharma,Yamine and Zindha were partners sharing profits and losses equally. Zindha died on 1st 6
5 April 2017. After all the necessary adjustments, his capital account shows a net credit balance of
Rs.55,400. Zindha’s Executor was paid Rs.15,400 on
1st April,2017 and the balance in four equal half-yearly installments starting from 30th
September, 2017 with interest @10% p.a on the unpaid amount. The firm closes its books on31st
March of every year. Prepare Zindha’s Executors’ Account until it is final paid.
2 On 1st April, 2017, Staar Ltd. Issued 1,000, 12%Debentures of Rs.100 each at a discount of 5%,
6 repayable as follows;
On 31stMarch ,2019 Rs.20,000
On 31stMarch ,2020 Rs.60,000 6
On 31stMarch ,2021 Rs.20,000
The company pays interest on debentures annually.
You are required to:
(a)Pass the Journal entries (including interest) for the year beginning 1st April 2017 to 31st March
2018.
(b)Prepare the ‘Discount on Issue of Debentures Account’, till it is finally closed.
PART B
(Analysis of Financial Statements)
2 Which of the following is not the limitation of financial statement? 1
7 (a)Ignore qualitative aspects
(b)Personal bias
(c)Ignore price level changes
(d)Provide information about the profitability of the business.
(or)
Which one of the following statement is incorrect?
(a)Liquidity Ratios are calculated to measure short-term solvency of the business.
(b)Current Ratio is also known as Acid Test Ratio.
(c)Solvency Ratios are calculated to determine the ability of the businesses
to serve its debt in the long-run.
(d)Proprietary Ratio expresses the relationship of Proprietor’s funds
to Net Assets/Total assets.
2 Which of the following transaction will decrease Debt-Equity Ratio and will not change Current 1
8 Ratio?
(a)Issue of shares for cash
(b)Issue of Debentures against purchase of fixed asset
(c)Issue of shares against purchase of fixed asset
(d)Redemption of Preference Shares for cash.
2 Assertion(A):Interest received on Calls-in-Arrears by a company 1
9 is Financing Activities.
Reason(R): Dividend received by a financial enterprise is an Investing Activitiy.
Alternatives:
(a) Both Assertion (A) and Reason(R) are correct
(b) Both assertion(A) and reason(R) are incorrect
(c) Assertion(A) is correct but reason(R) is incorrect
(d) Assertion(A) is incorrect but reason(R) is correct
(or)

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 Which of the following transactions would not result in Cash Flow?
(a)Buy back of equity shares (b) Amortisation of a patent.
(c)Payment of cash dividend (d)Sale of equipment at book value.
3 AB Ltd provides the following information: 1
0
Particulars 1.4.2021(Rs.) 31.3.2022(Rs.)
Machinery 50,000 60,000
Accumulated depreciation 25,000 15,000
A machine of book value Rs.10,000 with accumulated depreciation Rs.8,000 was sold for
Rs.13,000. Cash flows from investing activities will be:
(a)Net cash used in investing activities Rs.28,000
(b)Net cash used in investing activities Rs.15,000
(c)Net cash from investing activities Rs.,13,000
(e)Net cash from investing activities Rs.15,000
3 Under what heads and sub-heads(if any) the following items will appear in the Balance Sheet of
1 a company as per Schedule III, of the Companies Act, 2013: 3

SN Items
1 Encashment of Employees Earned Leave Payable on Retirement
2 Capital Work in Progress
3 Advance recoverable in cash within the operating cycle.
4 Unpaid/unclaimed Dividend
5 Calls-in-Arrears
6 Surplus, i.e., Balance in Statement of Profit and Loss (Dr)
3 (a)From the following information, calculate Inventory Turnover Ratio: 3
2 Purchases Rs.6,45,000;Carriage Inwards Rs.20,000; Carriage Outwards Rs.15,000;
Revenue from Operations Rs.6,00,000 ;Opening Inventory Rs.80,000;Gross Loss on 10% on
Revenue from Operations.
(b)A company has a loan of Rs.20,00,000 as part of its capital employed. The interest payable on
loan is 15% and the Return On Investment(ROI) of the company is 25%.
The rate of income tax is 40%. What is the gain to the shareholders due to the loan raised by the
company.
3 From the following Balance Sheet of Radha Ltd. 4
3 Prepare a Common Size Statement Balance Sheet As at 31st March, 2023
Particulars Note 31.3.2023(Rs.) 31.3.2022(Rs.)
no.

I EQUITY AND LIABILITIES

1. Shareholder’s Funds:
a. Share Capital 5,00,000 4,00,000
b. Reserve and Surplus 1,60,000 1,20,000
2. Current Liabilities
a. Trade Payable 1,40,000 80,000
Total 8,00,000 6,00,000
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 II ASSETS
1. Non-Current Assets:
a) Property, Plant and equipment
and intangible assets:
i. Property, Plant and equipment 3,20,000 2,40,000
ii. Intangible Assets 40,000 60,000
2. Current Assets
a. Inventories 1,60,000 60,000
b. Trade Receivables 2,40,000 2,00,000
c. Cash and Cash Equivalents 40,000 40,000
Total 8,00,000 6,00,000
(or)
From the following Statement of Profit and Loss of the Shanthi Ltd. for the year
ended 31st March 2023, prepare Comparative Statement of Profit & Loss.

Statement of Profit & Loss for the year ended 31st March, 2023
Particulars 2021-22(Rs.) ( 2022-23(Rs.)
Revenue from Operation 40,00,000 25,00,000
Expenses:
a) Employee benefit 2,00,000 1,25,000
expenses
b) Other Expenses 6,80,000 5,90,000
Rate of Tax 35%

3 6
4

Prepare a Cash Flow Statement from the following Balance Sheets of Vijay Ltd.p

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 Particulars Note 31.3.2022 31.3.2021
(Rs.) (Rs.)
I. Equity and Liabilities:
(1) Shareholders’ Funds: 5,00,000 4,50,000
a) Share Capital 1 1,18,000 70,000
b) Reserves and Surplus
Notes to Accounts:
(2) Non-Current Liabilities:
Long-term Borrowings 2 1,49,000 1,17,000
(3) Current Liabilities: 50,000 40,000
a)Trade Payables
b) Short-term Provisions
Total 8,17,000 6,71,000
II. Assets:
(1) Non-Current Assets:
(a) Property, Plant and equipment
and intangible assets:
(i)Property, Plant and Equipment 3 3,70,000 2,80,000
(ii)Intangible Assets 4 90,000 1,15,000

b)Non-current Investments
(2) Current Assets 1,09,000 77,000
(i) Inventory 2,30,000 1,80,000
(ii) Trade receivables 18,000 25,000
(iii) Cash & Cash Equivalents
Total 8,17,000 6,71,000
Particulars 31.3.2022 31.3.2021
(Rs.) (Rs.)
1.Reserves and Surplus
General Reserve 70,000 40,000
Balance in Statement of Profit &Loss 48,000 30,000
1,18,000 70,000
2. Short-term Provisions
Provision for Tax 50,000 40,000
50,000 50,000
3. Property, Plant and Equipment
Land and Building 1,70,000 2,00,000
Plant 2,00,000 80,000
3,70,000 2,80,000
4. Intangible Assets
Goodwill 90,000 1,35,000
90,000 1,35,000
Additional Information:
(a) Contingent Liability 31.3.2022(Rs) 31.3.2021(Rs)
Proposed Dividend 50,000 42,000
(b)Depreciation of Rs.10,000 and Rs.20,000 has been charged on
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 plant, land and buildings respectively.
(c)An interim dividend of Rs.20,000 has been paid.
(d) Rent received during the year Rs.10,000.
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