CA.

SUMIT GUPTA

SET - G

CODE
055

(ACCOUNTANCY) Roll No.

Time: 3 Hr. M.M: 80
General Instructions:
 This question paper contains 34 questions. All questions are compulsory.
 This question paper is divided into two parts, Part – A and B.
 Part – A is compulsory for all candidates.
 Part – B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerized Accounting.
Student must attempt only one of the given options.
 Question 1 to 16 and 27 to 30 carries 1 mark each.
 Questions 17 to 20 and 31 and 32 carries 3 marks each.
 Questions from 21, 22 and 33 carries 4 marks each.
 Questions from 23 to 26 and 34 carries 6 marks each.
 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 for four marks and 2 questions of six marks.

PART – A
ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

1. In case of fluctuating capital a Partner‟s Capital Account shows:

(a) Debit balance (b) Credit Balance
(c) Debit or Credit Balance (d) None of these
2. Assertion (A): Balance of Profit or loss should be transferred to old partners‟ capital or current accounts
in old ratio on admission of a partner.
Reason (R): Undistributed profit or loss belongs to old partners only as new partner has no contribution
in it.
(a) (A) is correct but (R) is wrong.
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(c) Both (A) and (R) are incorrect.
(d) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
3. Discount on issue of debentures is written off:
(a) In the year of issue of debentures (b) During lifetime of debentures
(c) In the year of redemption (d) None of these
Or
Which of the following shares can be issued at discount?
(a) Fresh Shares (b) Forfeited Shares (c) Both (a) and (b) (d) Neither (a) nor (b)
4. Smriti and Sudha are partners sharing profits and losses in the ratio of 2 : 1. They decide to share
future profits and losses equally. At that time General Reserve balance was D 3,00,000 which was
not to be distributed. Journal entry for adjustment will be:
(a) Dr. General Reserve A/c by D 3,00,000 and Cr. Smriti‟s Capital A/c and Sudha‟s Capital A/c by D
2,00,000 and D 1,00,000 respectively.

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(b) Dr. Smriti‟s Capital A/c and Sudha‟s Capital A/c by D 2,00,000 and D 1,00,000 respectively and Cr.
General Reserve A/c by D 3,00,000.
(c) Dr. Smriti‟s Capital A/c and Cr. Sudha‟s Capital A/c by D 50,000.
(d) Dr. Sudha‟s Capital A/c and Cr. Smriti‟s Capital A/c by D 50,000.
Or
Net Profit before commission is D 12,00,000. Partner Shyam‟s Commission is 20% of net profit
after charging such commission. The commission is:
(a) D 2,00,000 (b) D 2,40,000 (c) D 2,50,000 (d) D 2,20,000
5. Nitesh withdrew D 4,00,000 at the end of each quarter during 2022-23. Interest onhis drawings @
6% p.a. will be:
(a) D 42,000 (b) D 75,000 (c) D 36,000 (d) D 10,000
6. Gaytri Ltd. issued 10,000, 10% Debentures of D 100 each at a certain rate of premium to be
redeemed at 10% premium. Statement of Profit and Loss debited with D 40,000 for writing off loss
on issue of debentures. Debentures were issued at premium of:
(a) 12% (b) 10% (c) 6% (d) 4%
Or
RKSV Ltd. issued 20,000, 10% Debentures of D 100 each at a certain rate of discount to be
redeemed at 10% premium. Balance in Securities Premium was D 3,00,000 before writing off loss
on issue of debentures. Statement of Profit and Loss debited with D 1,00,000 for writing off loss on
issue of debentures. Find the rate of discount at which these debentures were issued.
(a) 5% (b) 10% (c) 15% (d) 20%
7. Reserve capital is a part of:
(a) Subscribed and called up capital (b) Subscribed and uncalled capital
(c) Unsubscribed and called up capital (d) Unsubscribed and uncalled capital
8. Banu, Giri and Mura were partners sharing profits and losses in the ratio of 7 : 5 : 3. On 1 st April
2023, Giri decided toretire from firm. Goodwill was valued D 6,00,000 and revaluation profit
amounted D 75,000. Total amount due to Giri was D 4,00,00 after all adjustments. Find his capital
balance before these adjustments.
(a) D 4,00,000 (b) D 10,75,000 (c) D 6,75,000 (d) D 1,75,000
OR
On March 31, 2023 after closing the books of accounts balance in the capital accounts of Arjun and
Bhim were D 6,00,000 and D 8,00,000 respectively. Profit during the year was D 3,60,000. Their
drawings are D 20,000 and D 40,000 respectively. Opening Capital of Bhim was:
(a) D 4,40,000 (b) D 2,20,000 (c) D 6,60,000 (d) D 8,80,000

Read the following hypothetical situation, answer Question No. 9 and 10:
X, Y and Z are partners sharing profit and losses in the ratio of 3 : 5 : 2 with capital of D 12,00,00, D
10,00,00 and D 8,00,000 respectively on 1st April 2022. Z is entitled D 70,000 as salary. Y is entitled for
commission of 10% of net profit after charging all commissions and X is entitled for commission of 12%
of net profit before charging any commission. 12% of net profit to be transferred to general reserve. Net
profit of the firm for the year ended 31st March 2023 was D 15,00,000.

9. Commission of X will be:

(a) D 1,00,000 (b) D 1,25,000 (c) D 1,50,000 (d) D 1,75,000
10. Y‟s Share in divisible profit will be:
(a) D 3,00,000 (b) D 5,00,000 (c) D 2,00,000 (d) D 2,50,000
11. Choose the correct sequence of following transactions:
(i) Interest on loan (ii) Distribution of divisible profit
(ii) Transfer to general reserve
(iii) Transfer of net profit to Profit and Loss Appropriation A/c

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(a) (ii), (iii), (i), (iv) (b) (i), (iii), (ii), (iv) (c) (ii), (iv), (i), (iii) (d) (i), (iv), (iii), (ii)
12. A certain amount was payable to PCL Limited for purchase of furniture. Purchase consideration
was paid by issuing shares of D 100 each at 20% premium. If total 450 shares were issued to PCL
Limited, amount payable was:
(a) D 54,000 (b) D 45,000 (c) D 50,000 (d) D 36,000
13. While purchasing business of other company, surplus of liabilities over assets is called:
(a) Goodwill (b) General Reserve (c) Capital Reserve (d) None of these
14. A and B are partners in the ratio of 2 : 1. C is admitted for 1/4 th share in profits and losses and he
brings D 2,00,000 as his capital. Capital of A and B after all adjustments are D 4,50,000 and D
1,50,000 respectively. It is agreed that partners‟ capitals should be in new profit sharing ratio. To
adjust capital in new ratio, A will:
(a) Bring D 20,000 (b) Take Back D25,000 (c) Bring D 45,000 (d) Take Back D 50,000
15. Annual profit of a firm is D 4,80,000 and capital employed is D 30,00,000. Normal rate of return in
similar business is 15%. Goodwill by Capitalisation of Average Profit Method will be:
(a) D 4,50,000 (b) D 4,80,000 (c) D 2,00,000 (d) D 18,00,000
OR
Goodwill of a firm on the base of 2 years‟ purchase of average profit is D 84,000. The average profit
of the firm is:
(a) D 39,000 (b) D 45,000 (c) D 60,000 (d) D 42,000
16. Fictitious Assets are transferred to __________ at the time of dissolution of a firm.
(a) Realisation A/c (b) Bank A/c (c) Revaluation A/c (d) Partners‟ Capital A/cs

17. Guru, Yam and Zen were partners sharing profits and losses in the ratio of 5 : 3 : 2. Zen died on 30 th
September, 2023. Amount due to Zen‟s executor after all adjustments was D 9,30,000. The executor was
paid D 1,30,000 through cheque immediately and the balance in two equal annual instalments with
interest @ 8% per annum starting from 31st March 2025. Accounts are closed on 31st March every year.
Prepare Zen‟s Executor‟s A/c till he is finally paid.

18. Raja, Meru and Fahad are partners sharing profits and losses in the ratio of 5 : 4 : 1. Fahad is given a
guarantee that his share of profit will not be less than D 50,000 in any year. Deficiency if any, is to be
borne by Raja and Meru in the ratio of 3 : 2. Profit for the year ended March 31, 2023 was D 3,50,000.
Record necessary Journal entries to show distribution of profit among all the partners.
OR
Prince, Queen and Rocky were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The
partnership deed provides for charging interest on drawings @ 10% p.a. Drawings of Prince, Queen and
Rocky during the year ending 31st March 2023 were D 2,00,000, 2,00,000, 3,00,000 and D 5,00,000
respectively. After closing final accounts, it was found that interest on drawings were not charged. Pass
necessary adjustment entry by showing your working notes clearly.

19. Akbar Ltd. issued 10,000; 12% Preference shares of D 100 each at premium of 10% to Birbal Ltd. from
whom assets worth D 22,50,000 and liabilities worth D 8,00,000 were taken over. Pass Journal entries in
the books of Akbar Ltd.
Or
Sky Drivers Ltd. purchased Building worth D 15,00,000, Plant and Machinery worth D 14,00,000 and
Furniture worth D 6,00,000 and also took over liabilities worth D 2,00,000 from Earth Drivers Ltd.
Purchase consideration D35,00,000 to be paid by issuing a cheque of 10% amount and rest by issuing
10% Debentures at 5% premium.
Pass Journal Entries in the books of Sky Drivers Ltd.

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20. Kabira and Fakira were partners in a firm sharing profits in the ratio of 3 : 1. On 1 st April 2023 they
decided to share profits and losses equally. Goodwill of the firm for this purpose valued on the basis of 2
years‟ purchase of last 2 years‟ average profits which were as follows:
2020 – 21 D 9,00,000
2021 – 22 D 13,00,000
2022 – 23 D 6,60,000
During the year 2022-23 there was a loss of D 2,00,000 due to fire.
Calculate value of goodwill and pass necessary Journal entries for the treatment of goodwill.

21. Eckost Ltd. was registered with an authorized capital of D 2,00,00,000 divided in 12,50,000 Equity
Shares of D 10 each and 75,000, 10% Preference Shares of D 100 each. The company issued 4,00,000
Equity Shares for Public subscription at 10% premium payable D 3 on application, D 6 on allotment
(including premium) and balance on call. Public applied for 5,00,000 shares. Excess applications were
sent letters of regret.
All the dues on allotment received except on 7,500 shares held by Dinesh. Another shareholder Kartik
paid his call dues along with allotment on his holding of 12,500 shares.
You are required to prepare Balance Sheet of the company as per Schedule II of Companies Act, 2013,
showing Share Capital balance and also prepare Notes to Accounts.

22. Rishabh, Kartik and Rahul were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The
firm was dissolved on 31st March 2023 by the order of court. After transfer of assets (other than cash) and
outsiders liabilities to Realisation Account, the following transactions took place:
(i) An unrecorded liability of the firm of D 30,000 was paid to him.
(ii) Rishabh had given a loan of D 1,25,000 to the firm which was paid to him.
(iii) Expenses on dissolution amounted to D 60,000 which was paid by Rahul.
(iv) Creditors to whom D76,000 were due, accepted furniture at D 35,000 and the balance was paid to
them by cheque.
You are required to pass necessary Journal Entries for all the above transactions.

23. Money Plant Ltd. invited applications for issuing 30,000 shares of D 10 each at a premium of D 3 per
share. The amount was payable as follows:
D 7 on application and allotment
Balance on first and final call (including premium)
Applications were received for 40,000 shares and allotment was made as follows:
(i) To applicants for 8,000 shares  8,000 shares.
(ii) To applicants for 4,000 shares  Nil
(iii) Balance of the applicants were allotted shares on pro-rata basis.
Excess money received with applications were adjusted towards sums due on first and final call.
Maheshwari who belonged to category (i) and was allotted 400 shares and Vinita who belonged to
category (iii) and was allotted 440 shares failed to pay the first and final call money. Their shares were
forfeited. These shares were reissued at D 7 per share fully paid up.
Pass necessary Journal entries in the books of the company.
Or
SMB Ltd. issued for public subscription 4,00,000 shares of D 10 each at premium of D 2 per share
payable as follows:
Application  D 4 per share
Allotment  D 5 per share
First and Final Call  Balance
Applications received for 6,00,000 shares. Allotment was made on pro-rata basis for 4,80,000 shares and
remaining applications were rejected. Excess money received on application was applied for allotment.

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Chetna, who was allotted 16,000 shares, failed to pay allotment money and Jagriti to whom 20,000 shares
were allotted, failed to pay the call money. These shares were forfeited.
Record the necessary journal entries in the books of the company.

24. Worry and Rest are Partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31 st
March 2023 was as follows:
Balance Sheet
Liabilities Amount Assets Amount
(D) (D)
Capitals: Bank 50,000
Worry 4,00,000 Debtors 2,00,000
Rest 3,00,000 7,00,000 Less: Provision for
Creditors 2,00,000 Doubtful debts 7,000 1,93,000
General Reserve 1,50,000 Stock 2,50,000
Plant and Machinery 3,50,000
Trademarks 2,07,000
10,50,000 10,50,000
On 1st April, 2023, Bindas was admitted for 4/15th share.
(i) Bindas brought D 3,00,000 as his capital on the base of which other partners have to adjust their
capitals by bringing or taking back required amount.
(ii) Bindas who brought his share of goodwill on the base of 2.5 years‟ purchase of average profit of
last 4 years which was D 1,65,000.
(iii) Debtors valued at book value less 5% provision for doubtful debts, Stock valued at D 2,00,000,
Plant and Machinery valued at D 4,00,000.
Prepare Revaluation Account and Partners‟ Capital Accounts.
OR
Abhi, Bedi and Charu are part ners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. A decides
to retire on 31st March, 2023. The Balance Sheet of the firm was as under:
Liabilities Amount Assets Amount
(D) (D)
Creditors 2,40,000 Bank 1,20,000
General Reserve 50,000 Debtors 2,00,000
Capital Accounts: Less: Provision for
Abhi 3,10,000 Doubtful debts 4,000 1,96,000
Bedi 3,00,000 Stock 2,50,000
Charu 2,20,000 8,30,000 Investments 1,00,000
Patent 25,000
Building 4,00,000
Goodwill 29,000
11,20,000 11,20,000
On retirement of Abhi, following terms were agreed upon:
(i) Abhi sacrificed his share of goodwill to Bedi for D 60,000 and to Charu for D 30,000.
(ii) Provision for doubtful debts @ 5% and provision for discount on debtors and creditors @ 2% to be
maintained.
(iii) Outstanding expenses were D 5,000 and prepaid expenses were D 9,000.
(iv) Patents were wrothless.
(v) Half investments were taken over by all the partners in profit sharing ratio and remaining
investments were valued @ 40% over the book value which were taken by Abhi.
(vi) Abhi was paid D 1,16,000 immediately.

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Prepare Revaluation Account and Partners‟ Capital Accounts.

25. Jatil and Sahaj were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as on 31st
March 2023 was as follows:
Balance Sheet
As at 31st March, 2023
Liabilities Amount Assets Amount
(D) (D)
Creditors 14,80,000 Bank 14,05,000
General Reserve 1,35,000 Stock 10,75,000
Capitals: Debtors 12,15,000
Jatil 13,25,000 Less: Provision for
Sahaj 21,15,000 34,40,000 Doubtful Debts 5,000 12,10,000
Fixed Assets 13,65,000
50,55,000 50,55,000
The firm was dissolved on the same day.
(i) Debtors realized at 5% less. (ii) Stock realized at D 12,70,000
(iii) Fixed Assets realised at D 14,20,000 (iv) Realisation expenses were D 25,000
Prepare Realisation A/c and Partner‟s Capital A/cs.

26. Accounts Guru Ltd. issued D 4,00,000, 10% Debentures of D 100 each at par to be redeemed at 10%
premium after 5 years. Balance in securities premium was D 40,000.
Answer the following questions on the basis of above information:
(i) Find the application money received.
(ii) What amount will be debited to „Loss on Issue of Debentures A/c?
(iii) What is the annual obligation in the form of interest on debentures?
(iv) By what amount will Statement of Profit and Loss be debited for writing off loss on issue of
debentures.
(v) Pass Journal entry for writing off loss on issue of debentures.

PART – B
ANALYSIS OF FINANCIAL STATEMENT

27. Which is not the objective of financial statement analysis?

(a) To know the profitability (b) To know the qualitative advantages
(c) To know the trend of the business (d) To know the managerial efficiency.
OR
Which statement is/are correct?
(i) Debt to Capital Employed Ratio shows the portion of total capital employed financed through
interest bearing debt.
(ii) Debt Equity Ratio 1 : 2 is considered to be safe.
(iii) A low Working Capital Turnover Ratio indicates efficiency in use of working capital.
(a) All are correct (b) Only (i) and (iii) are correct
(c) Only (ii) and (iii) are correct (d) Only (i) and (ii) are correct
28. Net Assets Turnover Ratio is 8 times. Current Liabilities are D 1,00,000, Current assets are D
3,00,000 and Net Fixed assets are D 3,00,000. Revenue from Operations is:
(a) D 20,00,000 (b) D 40,00,000 (c) D 30,00,000 (d) D 28,00,000
29. Statement – I: Accounts Guru Ltd. has a balance in provision for tax account of D 1,00,000 and D
1,50,000 as on 31st March, 2022 and 2023 respectively. It made a provision for tax during the year of D
1,30,000. The amount of tax paid during the year is D 80,000.

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Statement – II: TPT Ltd. purchased machinery of D 8,00,000 by issuing a cheque of D 3,00,000 and 12%
Debentures of D 5,00,000. In the cash flow statement, the transaction will be shown as outflow under
investing activity D 3,00,000 and inflow under financing activity D 5,00,000.
(a) Both Statements are correct (b) Both Statements are incorrect
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct.
OR
Which item is added to Net Profit while calculating cash flow from operating activities?
(a) Increase in Debtors (b) Decrease in Prepaid Expenses
(c) Increase in Stock (d) Decrease in Creditors

30. Calculate cash flow from financing activities from the following information:
Particulars 31st March, 31st March,
2023 (D) 2022 (D)
Share Capital 30,00,000 21,00,000
8% Debentures 8,00,000 5,00,000
st
Debentures were issued on 1 April, 2022.
(a) D 12,00,000 (b) D 12,64,000 (c) D 11,36,000 (d) D 12,36,000

31. Classify the following items under major head and sub-head in the Balance Sheet.
(i) Live Stock (ii) Furniture
(iii) Outstanding Salary (iv) Debtors
(v) Provision For Tax (vi) Trade Investment

32. (a) Calculate Return on Investment from the following information:

D
(i) Shareholders‟ Funds 1,00,000
(ii) 10% Debentures 4,00,000
(iii) Long-Term Provisions 50,000
(iv) Current Liabilities 1,40,000
(v) Fixed Assets 4,50,000
(vi) Non-Current Investments 40,000
(vii) Current Assets 2,00,000
(viii) Profit before Tax 1,20,000

(b) Debt Equity Ratio is 2 : 1. State giving reasons whether following transactions will increase,
decrease on not change the ratio:
(i) Purchase of furniture on credit of 3 months.
(ii) Issue of new shares for cash
(iii) Payment to creditors.

33. From the information extracted from the Statement of Profit and Loss of K Ltd.for the years ended 31 st
March, 2022 and 31st March 2023, prepare a Common-size Statement of Profit and Loss:
Particulars Note No. 2022-23 2021-22
Revenue from Operations D 40,000 D 5,00,000
Cost of materials consumed D 2,40,000 D 35,000
Other Expenses D 1,10,000 D 1,30,000
Tax Rate 50% 50%
OR

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st
Balance Sheets of Blue Bell Ltd. as at 31 March, 2022 and 2023 are given below:
Balance Sheet as at 31st March, 2023 and 2022
Particulars 31st March, 31st March,
2023 (D) 2022 (D)
I. EQUITY AND LIABILITIES
1. Shareholders‟ Funds
Share Capital 3,44,000 4,26,000
2. Non-Current Liabilities
Long-Term Borrowings 4,38,000 6,96,000
3. Current Liabilities 78,000 2,98,000
Total 8,60,000 14,20,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets 4,30,000 5,68,000
(b) Investments 4,000 6,000
2. Current Assets 4,26,000 8,46,000
Total 8,60,000 14,20,000
Prepare Comparative Balance Sheet showing percentage changes from 2022 to 2023.

34. (a) Calculate cash flow from investing activities with the following information:
Particulars Purchase (D) Sale (D)
Plant 44,00,000 5,00,000
Investments 18,00,000 10,00,000
Goodwill 20,00,000 ---
Patents --- 10,00,000
Additional Information:
(i) Interest received on holding debentures as investments D 6,00,000.
(ii) Dividend received on holding shares as investments D 1,00,000.
(iii) A plot of land had been purchased for investment purpose and let out on which rent received
D 3,00,000.

(b) Calculate operating profit before working capital changes on the base of following information:
(D)
(i) Net Profit before tax 85,00,000
(ii) Depreciation 14,00,000
(iii) Loss on Sale of Furniture 3,00,000
(iv) Profit on Sale of Investments 2,00,000
(v) Dividend received on Investments 60,000

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