VELAMMAL VIDYALAYA

MOGAPPAIR WEST, CHENNAI – 37

CLASS: XII – D MARK: 80
SUBJECT: ACCOUNTANCY PRE HALF YEARLY - I TIME: 2.30 HRS.

SECTION – A
I. CHOOSE THE BEST ANSWER: 20 x 1 = 20
1. While using _______ company does not give any undertaking for the
Repayment of money Borrowed by issuing such debentures.
a) Zero Coupon Rate b) Non-Convertible
c) Secured debentures d) Non-Redeemable debentures
2. Financial Analysis can be used for
a) Security Analysis b) Credit Analysis
c) Dividend Decisions d) All of these
3. Which of the following is not a tool of financial statement analysis.
a) Comparative income statement b) Comparative position statement
c) Statement of P & L d) CFS
4. If the operating cycle can’t be identified, it is assumed to be a period of
a) 10 months b) 12 months c) 9 months d) 11 months
5. In the following case operating cycle = ?

a) 3.5 month b) 4.5 month c) 5 month d) 6 month

6. Net Assets minus capital reserve
a) Purchase consideration b) Goodwill
c) Total Assets d) Liquid Assets
7. Freedom to choose method of depreciation refers to which Limitation of
Financial Statement Analysis.
a) Historical Analysis b) Qualitative Aspect Ignored
c) Not free from Bias d) Ignored price changes

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8. Calls in Advance is shown in the company’s Balance Sheet under the
head of
a) Non Current Assets b) Current Liabilities
c) Shareholders fund d) Non-current Liabilities
9. Savi Ltd issued 50,000, 8% debentures of ₹100 each at a certain rate of
premium & to be redeemed at 10% premium. At the time of writing off
Loss on issue of debentures, statement of P and L was debited with
₹200000. At what rate of premium, these debentures were issued?
a) 10% b) 16% c) 6% d) 4%
10. Rohit Ltd issued 2000, 9% debentures of ₹100 each at 95 per debenture
9% debentures A/C will be credited by
a) ₹190000 b) ₹110000 c) ₹200000 d) ₹10000
11. Which of the following heads/sub.heads is forfeited shares presented in
the Balance Sheet of a company.
a) Reserve & Surplus b) Share Capital
c) Other Long term liabilities d) Other Current Liabilities
Read the following hypothetical question and give answer. The
information related to statement of P & L for the 2 years.
Particulars NN 2022-23
2023-24
RFO (% cost of material consumed) 200% 125%
Cost of Materials consumed 150000 336000
Other expenses (% of operating revenue) 10% 10%
Income Tax 30% 30%
12. What will be the absolute and percentage change in RFO?
a) 100000, 30% b) 105000, 35%
c) 110000, 38% d) 120000, 40%
13. What is the percentage change in cost of materials consumed.
a) 100% b) 110% c) 120% d) 124%
14. What is the amount of change in PBT?
a) (70,000) b) (75000) c) (78000) d) 82000
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15. What is the percentage change of PAT.
a) (50%) b) (55%) c) (60%) d) (65%)
16. When debentures are issued at discount, the discount write off
a) After debenture redeemed b) in the year debenture are allotted
c) during the life of debenture d) In the year debenture are issued
17. Cash & Cash equivalent does not include.
a) Cheques b) Balance with Banks c) Inventories
d) Bank deposits with more than 12 months maturity
18. Which of the following in incorrect.
a) Interest on debentures is a charge & not an Appropriate
b) Debentures can be issued at discount
c) Debentures do not have voting rights
d) Debentures can’t be converted into shares
The Below two statement one labelled on (A) and other (R)
a) Both A and R are correct, But R is not the correct explanation of
A.
b) Both A and R are correct, R is the correct explanation of A.
c) Only A is correct d) Both A and R are incorrect
19. Assertion (A) – debentures certificate evidence that the company has
borrowed amount from the debenture holder.
Reason (R) – debenture is the written acknowledge by a company a
debt.
20. Assertion (A) – Company has issued 100000, 8% debentures of ₹200
each to a bank as collateral security. It may or may not record in the
Books of Accounts by passing journal.
Reason (R) – Debenture suspense 20000000
To 8% debenture 20000000
SECTION – B
II. ANSWER THE FOLLOWING QUESTIONS: 6 x 3 = 18
21. Agam Ltd issued 40,000, 9% debentures of ₹100 each on 01.04.2023 at
a discount of 10% redeemable at a premium of 10%.
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 Assuming that the interest was paid half yearly on 30 th September &
31.03. Give journal entries relating to Debenture interest.
22. Random Ltd took over Running Business of mature ltd comprising of
Assets ₹45,00,000 & Liabilities of ₹640000 for a purchase consideration
of ₹36,00,000. The Amount settled by Bank draft of ₹150000 & Balance
by issuing 12% preference shares of ₹100 each at a premium of 15%
pass journal.
23. Under which heads & subheads will be the following items shown in the
balance sheet of a company as per schedule III, Part I of the companies
Act 2013?
a) Securities Premium b) Cash & Bank balance c) Mining
rights
d) Provision for tax e) Building
f) Premium on redemption of debentures
24. Difference between Horizontal & vertical analysis.
25. Prepare comparative statement of P & L for the year ended 31.3.17 &
31.3.18
Particulars 2017-18 2016-17
Revenue from operations 15,00,000 10,00,000
Other income (% Revenue from operations) 60% 50%
Employee Benefits Expenses (% of total Revenue) 40% 30%
Tax rate 40% 40%
26. Calculate cost of materials consumed.
Opening inventory of materials 500000, Purchase of material 25,00,000
closing inventory of materials 400000.
SECTION – C
III. ANSWER THE FOLLOWING QUESTIONS: 3x4=
12
27. From the following Balance Sheet of Sanchi Ltd as at 31.3.19. Prepare
common size Balance Sheet.
Sanchi
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 Common Size Balance Sheet 31.3.18 & 19
Particulars Note No. 31.3.19 31.3.18
I. Equity & Liabilities
1. Shareholder fund
a) Share Capital 400000 200000
b) Reserve & Surplus 100000 70000
2. Non-current Liabilities.
Long term Borrowings 300000 430000
3. Current Liabilities
Trade Payable 200000 300000
10,00,000 10,00,000
II. Assets
1. Non-current Assets
a) Property, Plant & Equipment 600000 500000
& Intangible Assets
2. Current Assets
a) Inventories 250000 200000
b) Cash & Cash Equivalents 150000 300000
10,00,000 10,00,000
28. SSS Ltd, issued 25000, 10% debentures of ₹100 each give journal.
i) The debenture were issued at a premium of 20%.
ii) The debenture were issued as a collateral security to bank against a
loan of ₹20,00,000.
iii) The debenture were issued to a supplier of machinery costing
₹28,00,000 as his full & final payment.
29. From the following information compute the amount to be shown in
notes to accounts.
Wages 540000, salaries 720000, Bonus 105000 staff welfare expenses
60,000 and Business promotion expenses 50,000.
SECTION – D
IV. ANSWER THE FOLLOWING QUESTIONS: 5x6=
30
30. Pass Journal entries to issue of debenture in the Book of x ltd for the
following transactions:
a) 3000, 7% debentures of ₹100 each are issued at 10% premium,
Redeemable at a premium of 5%.

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b) 2000, 8% debentures of ₹100 each are issued at 10% premium,
Redeemable at par.
c) 1000, 9% debentures of ₹100 each are issued at 10% discount,
Redeemable at 10% premium.
31. A2B had share capital of ₹80,00,000 divided in share of ₹100 each
20,000, 8% debentures of 100 each as part of capital employed.
The company needed a additional fund of ₹55,00,000 for which they
decide to issue debenture in such a way that they got required funds
after issuing debentures of the same class as earlier at 10% premium.
These debentures were to be redeemed at 20% premium After 4 years.
1. Pass Journal 2. Prepare Loss on issue of debentures securities
premium existing
3. Pass interest on debentures as on 31.3.2022 Assuming interest is
payable as 30th September & 31.3. every year.
32. a) State giving reason whether
Balance Sheet of a company as per schedule III of the companies.
a) Case 1 – Current asset or Non current asset.
b) Case 2 – Current liabilities or Non current liabilities.
Calculate both case
Operating Cycle Periods Expected Realisation Period
Case
(Month) (Month)
1 10 11
2 10 12
3 10 13
4 14 13
5 15 16
33. a) Explain the limitation of financial statement analysis.
OR
b) D/B premium on issue of debentures & premium on Redemption of
debentures.

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34. X ltd took loan of 300000 from ICICI bank. The company issued 40,000,
10% debenture of ₹100 each as a collateral security for the same. Show
how these items will be shown in the Balance Sheet of the company.
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