Oswal 36 Sample Question Papers CBSE Class 12 Accountancy Solutions
1. (d) 9 : 6 : 5
Ram : Shyam
Sacrificing Ratio = 15,000 : 10,000 = 3 : 2
New ratio of Ram =
$$\frac{3}{5} × \frac{3}{4}\space =\space \frac{9}{20}$$
New ratio of Shyam =
$$\frac{2}{5} × \frac{3}{4} \space = \space \frac{6}{20}$$
Ram : Shyam : Laxman
$$\frac{9}{20} : \frac{6}{20} : \frac{1×5}{4×5}$$
9 : 6 : 5
2. (a) (A) is correct but (R) is wrong
Salary provided to a partners is an appropriation of profit and is debited to profit and loss appropriation account.
3. (a) ₹15 per share
Uncalled capital = ₹(20 – 5) = ₹15 per share
OR
(b) 20,000
No. of debentures issued =
$$\frac{₹19,00,000}{₹100-(100×5\%)} = \space \frac{19,00,000}{95} =\space ₹20,000$$
= 20,000 debentures
4. (b)
Particulars | L. F. | Debit (₹) | Credit (₹) |
Kunal’s Capital A/c Dr. | 12,000 | ||
To Vansh’s Capital A/c | 8,000 | ||
To Divyansh’s Capital A/c | 4,000 |
Total adjustment amount loss = (80,000)
= (40,000)
S.R. = Old Ratio – New Ratio
$$ Kunal=\space \frac{5}{10}-\frac{2}{10}=\space \frac{3}{10} ×\space (40,000) = \space (12,000)$$ $$ Vansh\space =\space \frac{3}{10}-\frac{5}{10}=\space \frac{-2}{10} ×\space (40,000) = \space (8,000) $$ $$ Divyansh\space =\space \frac{2}{10}-\frac{3}{10}=\space \frac{-1}{10} ×\space (40,000) = \space (4,000) $$
OR
(d) Loss of ₹4,000 each partner
Interest on loan = ₹12,00,000 ×(6/100)×(6/12)
= ₹36,000
Profit after charging interest on loan = ₹(24,000 – 36,000)
= ₹12,000 (loss)
Loss distributed among partners =(₹12,000/3)
= ₹4,000 each partners
5. (b) ₹29,500
Interest on capital of X:
1st April – 30th April = ₹5,00,000 ×(6/100)×(1/12)
= ₹2,500
= ₹15,000
= ₹12,000
= ₹(2,500 + 15,000 + 12,000)
= ₹29,500
6. (c) 2,700
Purchase consideration = 4,08,000 – 48,000 = 3,60,000
Paid by cheque = 3,60,000 × 10% = 36,000
No. of debenture issued =(3,24,000/120)=2,700
OR
(b) 5%
Total premium use = 50,00,000 – 10,00,000 = ₹40,00,000
Premium on Redemption = 16,00,000 × 100 ×(20/100)=₹32,00,000
Discount on Issue of Debenture = 40,00,000 – 32,00,000
= ₹8,00,000
Rate of Discount =(8,00,000×100/16,00,000)=5%
7. (c) ₹60,000
A company must receive minimum subscription of 90% of the shares for subscription before it allots the share i.e., (24,000 × 3 × 90%) = ₹64,800.
Amount less than 64,800 will restrict the company to proceed with the allotment of shares.
8. (a) ₹22,500 and ₹13,500
B’s Goodwill = 1,08,000 ×(3/9)=₹36,000
Gaining Ratio = 5 : 3
A’s share = 36,000 ×(5/8)=₹22,500
B’s share = 36,000 ×(3/8)=₹13,500
OR
(d) A ₹50,000; B ₹50,000; C ₹50,000
Explanation:
If the deed is silent, then salary is not paid to any partner. Then, the profit will be distributed among all the 3 partners in equal ratio i.e., A ₹50,000; B ₹50,000; C ₹50,000
Read the following hypothetical situation, Answer Question No. 9 and 10
Dharya, Dhanvi and Pawna and partners in a firm trading in Toys. Marshwash were sharing profit in the ratio of 3 : 3 : 2. Their fixed capital on 01-04-2021 were ₹2,00,000; ₹3,00,000 and ₹6,00,000 respectively.
During their COVID pandemic all partners decided to help the poor daily worker personally for this Dharya withdraw ₹20,000 from the firm on 15-09-2021. Dhanvi instead of withdrawing cash from the firm daily amounting to ₹24,000 from the firm and distributed to fixed workers families, on the other hand, Pawna withdraw ₹1,00,000 from her capital on 1/1/2020 and provided a mobile medical van in containment zone.
The partnership deed provide for changing interest on drawings @ 6% p.a. and allowing interest on capital @ 9% p.a. The net profit of the firm for the year ended on 31-01-2022 before providing for any of the above adjustment was ₹1,57,500 partners also decided to divide 10% of net profit to Chief Minister Relief Fund.
Based on the above information you are required to answer the following questions.
9. (d) ₹360
Interest on drawings = 24,000 ×(6/100)×(3/12)=₹360
10. (c) ₹51,750
(01-04-2021 to 01-01-2022)
Pawan interest capital’s = 6,00,000 × (9 /100)×(9/12)=40,500
(01-01-2022 to 31-03-2022)
Pawan interest capital’s = 5,00,000 × (9/ 100) × (3/ 12) = 11,250
Total interest on capital = 42,500 + 11,250 = 51,750
11. (b) (ii), (iii), (i), (iv)
12. (a) ₹7,500
Amount debited to securities premium reserve account will be = 500 × 15 = ₹7,500
13. (b) ₹350
Share capital will be debited by = 50 × 7 = ₹350
14. (b) ₹12,000
Average profit =(6,000+12,000+18,000/3)= 12,000
Goodwill = 12,000 × 1 = 12,000
15. (b) ₹8,000 and ₹4,000
B = 1,00,000 × 8% = 8,000
Total appropriations are more than profit, thus profit will be distributed in the ratio of appropriations
16,000 : 8,000
2 : 1
Ratio of appropriation, 2 : 1
A’s share = 12,000 × (2 /3)=8,000
B’s share = 12,000 ×(1/3)=4,000
OR
(b) ₹6,240
Interest on Rohit’s drawing = (12,000 × 12) ×(8/100)×(6.5/12)=₹6240
16. (d) ₹45,000
Value of debtors = 60,000
Bad debts = 10,000
Remaining value = 60,000 – 10,000 = 50,000
Realised value = 50,000 × 90% = 45,000
17. Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Land and Building A/c | Dr. | 1,50,000 | |||
To Revaluation A/c | 1,50,000 | ||||
(Being increase in the value of assets recorded) | |||||
Revaluation A/c | Dr. | 65,000 | |||
To Debtors A/c | Dr. | 15,000 | |||
To Investment A/c | 10,000 | ||||
To Creditors A/c | 40,000 | ||||
(Being decrease in the value of assets and increase in the amount of liability recorded) | |||||
Revaluation A/c | Dr. | 85,000 | |||
To X’s Capital A/c | 42,500 | ||||
To Y’s Capital A/c | 34,000 | ||||
To Z’s Capital A/c | 8,500 | ||||
(Being profit on revaluation i.e., ₹1,50,000 – ₹65,000 transferred to partners capital a/cs in 5 : 4 : 1 ratio) |
18. (i) Calculation of Gaining Ratio:
Gaining share = New share – Old share
$$Y = \space \frac{7}{15}-\frac{1}{3} =\space \frac{7-5}{15} =\space \frac{2}{15} $$ $$Z = \space \frac{8}{15}-\frac{1}{3} =\space \frac{8-5}{15} =\space \frac{3}{15} $$
Gaining ratio = 2 : 3
$$(ii)\space X’s\space share\space of\space profit \space =\space \frac{Last\space Year’s\space Profit}{Last\space Year’s\space Sale}\space ×\space Sales \space till\space death\space ×\space X’s\space profit\space share $$ $$ =\space \frac{₹50,000}{₹2,00,000} × ₹75,000 × \frac{1}{3}$$
= ₹6,250
Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Y’s Capital A/c (2/5 of ₹6,250) | Dr. | 2,500 | |||
Z’s Capital A/c (3/5 of ₹6,250) | 1,50,000 | ||||
(Being increase in the value of assets recorded) | Dr. | 3,750 | |||
To X’s Capital A/c | 6,250 | ||||
(Being X’s share of profit adjusted to gaining partner’s capital A/cs) |
OR
Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
A’s Current A/c | Dr. | 6,867 | |||
B’s Current A/c | Dr. | 750 | |||
To C’s Current A/c | 3,850 | ||||
To D’s Current A/c | 3,767 | ||||
(Being rectification made for omission of interest on capital and interest on drawings) |
Working Note:
Particulars | A | B | C | D | |
Interest on capital allowed | (Cr.) | (+) 7,200 | (+) 10,800 | (+) 14,400 | (+) 10,800 |
Interest on drawings debited | (Dr.) | (–) 2,000 | (–) 2,500 | (–) 1,500 | (–) 1,000 |
Loss distributed (43,200 – 7,000 = 36,200) in 4 : 3 : 3 : 2 | (–) 12,067 | (–) 9,050 | (–) 9,050 | (–) 6,033 | |
Net effect | (–) 6,867 | (–) 750 | (+) 3,850 | (+) 3,767 |
19.
Journal
OR
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Interest on Debenture A/c | Dr. | 1,00,000 | |||
To Debentureholder’s A/c | 1,00,000 | ||||
(Being interest on debenture due on 10,00,000 @ 10% p.a.) | |||||
Debentureholder’s A/c | Dr. | 1,00,000 | |||
To Bank A/c | 1,00,000 | ||||
(Being payment of interest after deducted 10% TDS) | |||||
Statement of Profit & Loss A/c | Dr. | 1,00,000 | |||
To Interest on Debentures A/c | 1,00,000 | ||||
(Being interest transferred of profit & loss) |
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Sundry Assets A/c | Dr. | 3,20,000 | |||
To Sundry Liabilities A/c | 30,000 | ||||
To Yogesh Ltd. A/c | 2,70,000 | ||||
To Capital Reserve A/c (balancing figure) | 20,000 | ||||
(Being purchase of assets and liabilities taken over of Yogesh) | |||||
Yegesh Ltd. A/c | Dr. | 2,70,000 | |||
Loss on Issue of Debenture A/c (30,000 + 15,000) | Dr. | 45,000 | |||
To 11% Debenture A/c | 3,00,000 | ||||
To Premium on Redemption of Debenture Issued A/c | 15,000 | ||||
(Being 30,000; 11% debenture ₹100) |
20.
Journal
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Z’s Capital A/c | Dr. | 16,000 | |||
To X’s Capital A/c | 8,000 | ||||
To Y’s Capital A/c | 8,000 | ||||
(Being adjustment entry made for goodwill reserve and revaluation effect) |
X’s sacrifice =(1/15); Z’s gain=(2/15)
$$X’s\space gain \space = \space \frac{1}{3}-\frac{2}{5} \space =\space \frac{5-6}{15} =\space \frac{1}{15} \space (Sacrifice) $$ $$ Y’s\space gain \space = \space \frac{1}{3}-\frac{2}{5} \space =\space \frac{5-6}{15} =\space \frac{-1}{15} \space (Sacrifice) $$ $$ Z’s\space gain \space = \space \frac{1}{3}-\frac{1}{5} \space =\space \frac{5-3}{15} =\space \frac{2}{15} \space (Gain)$$
Calculation of effective profit
General Reserve = 60,000
Goodwill = 30,000
Revaluation profit = 30,000
Total effective profit = 1,20,000
$$X’s \space =\space 1,20,000× \space \frac{2}{15}\space =\space ₹16,000 $$ $$ Y’s \space =\space 1,20,000× \space \frac{1}{15}\space =\space ₹8,000 $$ $$ Z’s \space =\space 1,20,000× \space \frac{1}{15}\space =\space ₹8,000 \\$$
21.
Balance Sheet of Janta Ltd.
Particulars | Note No. | Current Year (₹) | Previous Year (₹) |
EQUITY AND LIABILITIES : | |||
Shareholders' Funds : | |||
Share Capital | 1 | 5,79,600 | |
Total | 5,79,600 |
Notes to Accounts:
22. Journal Entries
Particulars | Amount (₹) |
1. Share Capital : | |
Authorised Capital | |
2,00,000 Equity Shares of ₹10 each | 20,00,000 |
Issued Capital | |
1,00,000 Equity Shares of ₹ 10 each | 10,00,000 |
Subscribed Capital: | |
Subscribed Capital but not Fully Paid | |
96,400 Shares of ₹ 10 each, ₹6 called up 5,78,400 | |
Add: Share Forfeited A/c 1,200 | 5,79,600 |
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Profit & Loss A/c | Dr. | 12,000 | |||
To Rohan’s Capital A/c | 7,200 | ||||
To Sohan’s Capital A/c | 4,800 | ||||
(Being profit & loss account balance transferred to capital A/cs) | |||||
Rohan’s Capital A/c | Dr. | 4,800 | |||
Sohan’s Capital A/c | Dr. | 3,200 | |||
Sohan’s Capital A/c | Dr. | 3,200 | |||
To Advertisement Suspense A/c | 8,000 | ||||
(Being advertisement suspence account balance transferred to capital account) | |||||
Rohan’s Loan A/c | Dr. | 20,000 | |||
To Bank A/c | 20,000 | ||||
(Being payment of Rohan;s loan made) | |||||
Workmen Compensation Reserve A/c | Dr. | 15,000 | |||
To Rohan’s Capital A/c | 9,000 | ||||
To Sohan’s Capital A/c | 6,000 | ||||
(Being balance of workmen compensation reserve transferred to capital account) | 6,000 |
23.
In the Books of Devam Ltd.
Journal
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Bank A/c (45,000 × 3) | Dr. | 1,35,000 | |||
To Equity Share Application A/c | 1,35,000 | ||||
(Being application money received on 45,000 shares) | |||||
Equity Share Application A/c | Dr. | 1,35,000 | |||
To Equity Share Capital A/c (30,000 × 2) | 60,000 | ||||
To Securities Premium Reserve A/c (30,000 × 1) | 30,000 | ||||
To Equity Share Allotment A/c | 18,000 | ||||
To Bank A/c | 27,000 | ||||
(Being application money on 30,000 shares transferred to share capital account and securities premium reserve account, on 9,000 share refended and excess amount adjusted to share allotment account) | |||||
Equity Share Allotment A/c | Dr. | 1,20,000 | |||
To Equity Share Capital A/c | 90,000 | ||||
To Securities Premium Reserve A/c | 30,000 | ||||
(Being allotment amount due to 30,000 shares @ ₹4 per share including premium) | |||||
Bank A/c | Dr. | 1,00,300 | |||
Calls in Arrears A/c | Dr. | 1,700 | |||
To Equity Share Allotment A/c | 1,02,000 | ||||
(Being allotment amount received after adjusting excess money received on application except share to Gaganpreet) | |||||
Equity Share Capital A/c | Dr. | 2,500 | |||
Securities Premium Reserve A/c | Dr. | 500 | |||
To Calls in Arrears A/c | 1,700 | ||||
To Share Forfeited A/c | 1,300 | ||||
(Being forfeited of 500 shares of Sudhir) | |||||
Equity Share First Call A/c | Dr. | 1,18,000 | |||
To Equity Share Capital A/c | 88,500 | ||||
To Securities Premium Reserve A/c | 29,500 | ||||
(Being first call amount due on 29,500 shares) | |||||
Bank A/c | Dr. | 1,15,000 | |||
Calls in Arrears A/c (750 × 4) | Dr. | 3,000 | |||
To Equity Share First Call A/c | 1,18,000 | ||||
(Being first call amount received on 28,750 shares) | |||||
Equity Share Capital A/c (750 × 8) | Dr. | 6,000 | |||
Securities Premium Reserve A/c | Dr. | 750 | |||
To Equity Share First Call A/c | 3,000 | ||||
To Share Forfeited A/c | 3,750 | ||||
(Being forfeited of 750 shares of Muskan) | |||||
Bank A/c | Dr. | 4,000 | |||
Share Forfeited A/c | Dr. | 1,000 | |||
To Equity Share Capital A/c | 5,000 | ||||
(Being re-issued of 500 forfeited shares of Sudhir) | |||||
Share Forfeited A/c | Dr. | 300 | |||
To Capital Reserve A/c | 300 | ||||
(Being profit on 500 re-issued shares transferred to capital reserve) | |||||
Equity Share Second & Final Call A/c | Dr. | 86,250 | |||
To Equity Share Capital A/c | 57,500 | ||||
To Securities Premium Reserve A/c | 28,750 | ||||
(Being second and final call money due on 28,750 shares) | |||||
Bank A/c | Dr. | 83,250 | |||
Calls in Arrears A/c (1,000 × 3) | Dr. | 3,000 | |||
To Equity Share Second & Final Call A/c | 86,250 | ||||
(Being second and final call amount received on 27,750 shares) | 86,250 | ||||
Equity Share Capital A/c | Dr. | 10,000 | |||
Securities Premium Reserve A/c | Dr. | 1,000 | |||
To Equity Share Second and Final Call A/c | 3,000 | ||||
To Share Forfeited A/c | 8,000 | ||||
(Being forfeited of 1,000 shares of Amit) | |||||
Bank A/c | Dr. | 18,000 | |||
To Equity Share Capital A/c | 15,000 | ||||
To Securities Premium Reserve A/c | 3,000 | ||||
(Being re-issued of 1,500 forfeited shares including 1,000 shares of Amit and 500 shares of Muskan) | |||||
Share Forfeited A/c | Dr. | 10,500 | |||
To Capital Reserve A/c | 10,500 | ||||
(Being profit on 1,500 re-issued shares transferred to capital shares) |
Working Notes:
1.
(a) Amount received on allotment | |
Amount due on allotment 30,000 share × ₹4 per share | 1,20,000 |
Less: Excess application amount applied for allotment | 18,000 |
Amount actually due on allotment | 1,02,000 |
(b) Share alloted to Sudhir = (30,000 / 36,000)×600=500 shares | |
Allotment money due from Sudhir (500 shares × ₹4 per share) | 2,000 |
Less: Excess application money paid (100 × ₹3) | (300) |
Allotment money due from Sudhir | 1,700 |
(c) Amount actually due on allotment | 1,02,000 |
Less: amount unpaid by Sudhir | (1,700) |
Amount received on allotment | 1,00,300 |
2. 1,500 shares have been re-issued including 1,000 share of Amit and balance 500 shares of Muskan.
Profit on 1,000 shares | 8,000 |
Profit on 500 shares of Muskan ((3,750/750)×750) | 2,500 |
Profit on forfeited shares transferred to capital reserve | 10,500 |
OR
(i)
Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Furniture A/c | Dr. | 2,50,000 | |||
To M/s Furniture Gallary A/c | 2,50,000 | ||||
(Being purchased furniture) | |||||
M/s Furniture Gallary A/c | Dr. | 2,50,000 | |||
To Equity Share Capital A/c | 2,00,000 | ||||
To Security Premium Reserve A/c | 50,000 | ||||
(Being (2,50,000/12.5)=20,000) |
(ii)
Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
Plant A/c | Dr. | 3,50,000 | |||
Stock A/c | Dr. | 4,50,000 | |||
Land & Building A/c | Dr. | 6,00,000 | |||
Goodwill A/c (Balancing figure) | Dr. | 2,00,000 | |||
To Sundry Creditor A/c | 1,00,000 | ||||
To Gupta Ltd. A/c | 15,00,000 | ||||
(Being business purchased) | |||||
Gupta Ltd. A/c | Dr. | 15,00,000 | |||
To Share Capital A/c | 12,00,000 | ||||
To Bank A/c | 3,00,000 | ||||
(Being payment made to Gupta Ltd. through bank draft and issue of shares) |
24.
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Stock A/c | 20,000 | By Loss on Revaluation Transferred to: | |
To Furniture A/c | 18,000 | Rajat A/c 26,600 | |
Ravi A/c 11,400 | 38,000 | ||
38,000 | 38,000 |
Dr. | Cr. | ||||||
Particulars | Rajat | Ravi | Rohan | Particulars | Rajat | Ravi | Rohan |
(₹) | (₹) | (₹) | (₹) | (₹) | (₹) | (₹) | |
To Rev. Loss | 26,600 | 11,400 | — | By Bank A/c | 10,000 | 80,000 | — |
To Cash A/c | — | 20,600 | — | By General Reserve | 7,000 | 3,000 | — |
To Balance c/d | 1,26,000 | 54,000 | 60,000 | By Cash | 38,600 | — | 60,000 |
By Premium for | |||||||
Godwill | 7,000 | 3,000 | — | ||||
1,52,600 | 86,000 | 60,000 | 1,52,600 | 86,000 | 60,000 |
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Balance b/d | 36,000 | By Ravi’s Capital A/c | 20,600 |
To Rohan’s Capital A/c | 60,000 | By Balance c/d | 1,24,000 |
To Premium for Goodwill A/c | 10,000 | ||
To Rajat’s Capital A/c | 38,600 | ||
1,44,600 | 1,44,600 |
Working Notes:
Total New Capital = 60,000 ×(4/1) = 2,40,000
Rajat’s New Capital = 2,40,000 ×(21/40) = 1,26,000
Ravi’s New Capital = 2,40,000 ×(9/40)=54,000
Remaining Share = 1 –(1/4)=(3/4)
Rajat’s New Share = (7/10)×(3/4)=(21/40)
Ravi’s New Share =(3/10)×(3/4)=(9/40)
New Profit Sharing Ratioi =(21/40):(9/40):(1/4) = 21:9:10
OR
Dr. | Cr. | ||||
Date | Particular’s | Amount (₹) | Date | Particular’s | Amount (₹) |
To B’s Executor’s A/c | 1,94,100 | By Balance b/d | 90,000 | ||
By Profit & Loss Suspence A/c | 10,500 | ||||
By A’s [Premium for Goodwill] | 75,600 | ||||
By General Reserve A/c | 18,000 | ||||
1,94,100 | 1,94,100 |
Dr. | Cr. | ||||
Date | Particular’s | Amount (₹) | Date | Particulars | Amount (₹) |
To B’s Executor’s A/c | 1,94,100 | By B’s Capital A/c | 1,94,100 | ||
1,94,100 | 1,94,100 |
Working Notes:
1. Profit =(42, 000 + 39, 000 + 45,000/3) =₹42,000
B’s Share = 42,000 ×(5/12)×(3/5) =₹10,500
2. Goodwill =(42,000+39,000+45000/3)×3=₹1,26,000
B’s Share = 1,26,000 ×(3/5) =₹75,600
3. General Reserve = 30,000 ×(3/5)=₹18,000
25.
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Rev. Profit: | By Stock | 16,000 | |
Rohit 36,000 | By Buildings | 1,00,000 | |
Riya 60,000 | By Investment | 4,000 | |
Naman 24,000 | 1,20,000 | ||
1,20,000 | 1,20,000 |
Dr. | Cr. | ||||||
Particulars | Rohit | Riya | Naman | Particulars | Rohit | Riya | Naman |
To Riya’s Capital A/c | 90,000 | — | 60,000 | By Balance b/d | 3,00,000 | 2,00,000 | 1,00,000 |
To Riya’s Loan A/c | — | 4,30,000 | — | By General Reserve | 12,000 | 20,000 | 8,000 |
To Balance c/d | 2,58,000 | — | 72,000 | By Rev. Profit | 36,000 | 60,000 | 24,000 |
By Rohit (goodwill) | — | 90,000 | — | ||||
By Naman (goodwili) | — | 60,000 | — | ||||
3,48,000 | 4,30,000 | 1,32,000 | 3,48,000 | 4,30,000 | 1,32,000 | ||
To Balance c/d | 3,00,000 | — | 2,00,000 | By Balance b/d | 2,58,000 | — | 72,000 |
By Rohit’s Current A/c | 42,000 | — | — | ||||
By Naman’s | |||||||
Current A/c | — | — | 1,28,000 | ||||
3,00,000 | — | 2,00,000 | 3,00,000 | — | 2,00,000 |
Balance Sheet
Liabilities | Amount (₹) | Assets | Amount (₹) |
Sundry Creditors | 60,000 | Cash (50,000 + 34,000) | 84,000 |
Capital Accounts: | Stock | 96,000 | |
Rohit 3,00,000 | Debtors | 40,000 | |
Naman 2,00,000 | 5,00,000 | Buildings | 6,00,000 |
Riya’s Loan A/c | 4,30,000 | Current Account: | |
Rohit 42,000 | |||
Naman 1,28,000 | 1,70,000 | ||
9,90,000 | 9,90,000 |
26. (a)
Journal Entries
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
2022 | |||||
1 Jan. | Bank A/c | Dr. | 40,00,000 | ||
To Debenture Application & Allotment A/c | 40,00,000 | ||||
1 Jan. | Debenture Application & Allotment A/c | Dr. | 40,00,000 | ||
Loss on Issue of Debentures A/c | Dr. | 2,00,000 | |||
To 10% Debentures A/c | 40,00,000 | ||||
To Premium on Redemption of Debenture A/c | 2,00,000 | ||||
31 Mar. | Statement of Profit & Loss A/c | Dr. | 2,00,000 | ||
To Loss on Issue of Debentures A/c | 2,00,000 |
(b)
Date | Particulars | L. F. | Debit (₹) | Credit (₹) | |
(i) | Bank A/c | Dr. | 20,00,000 | ||
To Bank Loan A/c | 20,00,000 | ||||
(Being took a bank loan) | |||||
(ii) | Debentures Suspense A/c | Dr. | 25,00,000 | ||
To 10% Debentures A/c | 25,00,000 | ||||
(Being debenture issued as a collateral) |
In balance sheet loan will be shown as long-term.
Part - B
(Analysis of Financial Statement)
(Option-I)
27. (b) Other-current Liabilities
OR
(a) To decide whether or not the borrower has the ability to repay the interest and principal on borrowed funds.
28. (a) Payment of Bills payable on maturity
29. (b) 25%
Explanation:
$$Proprietary \space Ratio \space = \space \frac{Shareholder’s \space Funds }{Total \space Assets}\space = \space \left(\frac{4,00,000+1,50,000}{18,00,000+4,00,000}\right)×100$$ $$ = \space \frac{5,50,000}{22,00,000}×100 \space = \space 25 \%$$
OR
(c) Issue of shares for cash.
30. (d) Cash flow from operating activities
The amount of money which company earns from ongoing, regular business operations, such as production and sales of goods or the provision of services to clients, is known as cash flow from operating activities.
- 31. (i) Non-current Assets – Fixed Assets – Tangible
- (ii) Current Assets – Inventories
- (iii) Non-current Assets – Fixed Assets (Intangible)
- (iv) Non-current Liabilities – Long-term Borrowings
- (v) Current Liabilities – Short-term Borrowings
- (vi) Shareholder’s Funds – Reserves and Surplus
- (vii) Non-current Assets – Fixed Assets (Tangible)
- (viii) Current Assets – Cash and Cash Equivalents.
32. Yes, accounting ratio are ignore qualitative factors, which may be important in decision making and also Accounting Ratio may not be comparable because different firms follow different accounting policies and procedures. There is no single standard ratio against which accounting ratio can be compared.
33. Inventory Turnover Ratio = (Cost of Revenue from Operation/Average Inventory)
Let cost of revenue from operation be x
(x + 25x/ 100) = 3,00,000
x =(3,00,000/125)×100 = 2,40,000
Closing Inventory = ₹90,000 i.e., 30% of ₹3,00,000 (Revanue from operation)
Opning Inventory = ₹30,000 i.e.,(1/3) of ₹90,000 (Closing inventory)
Thus, Inventory Turnover Ratio =(₹2,40,000/₹60,000)=4 times
Average Inventory = (30,000+90,000/2)
= (1, 20, 000/2)=60,000
OR
(a) Gross Profit Ratio =(Gross Profit/Revenue from Operation)×100
=(75 ,000/2 ,00,000)×100 = 37.5%
(b) Net Profit Ratio =(Net Profit After Tax/Revenue from Operation)× 100
Profit After Tax = Gross profit + Other Income – Indirect Expenses/Losses – Tax
Other Income = ₹4,500
Indirect Expenses = Employee Benefit Expenses + Depreciation + Selling Expenses + Distribution Expenses + Finance Costs + Loss on Sale of Tangibale Fixed Assets
= 10,000 + 5,000 + 16,000 + 10,000 + 5,000 + 12,000 = ₹58,000
So, Profit After Tax = 75,000 + 4,500 – 58,000 – 1,500 (Provision for tax) = ₹20,000
Thus, Net Profit Ratio =(₹20,000/₹2,00,000)×100 = 10%
34.
Cash Flow Statement of ABC Ltd.
for the year ended 31st March 2018
Particulars | Amount (₹) |
A. Cash Flow from Operating Activities | |
Profit before tax (Working Note 1) | 3,10,000 |
Add: Adjustments for non-cash and non-operating items: | |
Depreciation on Plant 20,000 | |
Depreciation on Land and Building 40,000 | |
Goodwill written off 50,000 | 1,10,000 |
4,20,000 | |
Less: Rent Received | (20,000) |
Operating profit before working capital changes | 4,00,000 |
Add: Increase in current liabilities: | |
Trade Payables 64,000 | 64,000 |
4,64,000 | |
Less: Increase in Current Assets: | |
Inventory 64,000 | |
Trade Receivables 1,00,000 | 1,64,000 |
Cash generated from operating activities | 3,00,000 |
Less: Income Tax Paid | (70,000) |
Cash flow from operating activities | 2,30,000 |
B. Cash Flow from Investing Activities | |
Sale of Land and Building2 | 20,000 |
Purchase of Plant<3> | (2,60,000) |
Rent Received | 20,000 |
Net cash used in investing activities | (2,20,000) |
C. Cash Flow from Financing Activities | (2,20,000) |
Issue of share capital | 1,00,000 |
Payment of proposed dividend (for 2017) | (84,000) |
Interim dividend paid | (40,000) |
Net cash from financing activities | 24,000 |
Net increase in cash and cash equivalents (A + B + C) | (14,000) |
Add: Cash and Cash equivalents in the beginning of the period | 50,000 |
Cash and cash equivalents at the end of the period | 36,000 |
Working Notes:
1. Profit before Tax: | (₹) |
Profit & Loss Balance on 31st March 2018 | 96,000 |
Less: Profit & Loss Balance on 31st March 2017 | (60,000) |
36,000 | |
Add: Proposed Dividend for 2017 | 84,000 |
Interim Dividend Paid | 40,000 |
Transfer to General Reserve | 60,000 |
Provision for taxation4 | 90,000 |
3,10,000 |
2.
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Balance b/d | 4,00,000 | By Statement of Profit & Loss | 40,000 |
(Current year’s depreciation) | |||
By Bank A/c (Balancing figure being sales) | 20,000 | ||
By Balance c/d (Given) | 2,40,000 | ||
4,00,000 | 4,00,000 |
3.
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Balance b/d | 1,60,000 | By Statement of Profit & Loss | 20,000 |
To Bank A/c | 2,60,000 | (Current year’s depreciation) | |
(Balance figure, being purchase) | By Balance c/d (Give) | 4,00,000 | |
4,20,000 | 4,20,000 |
4.
Dr. | Cr. | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Bank A/c (Payment made) Given | 70,000 | By Balance b/d (Given) | 80,000 |
To Balance c/d (Given) | 1,00,000 | By Statement of Profit & Loss | 90,000 |
(Balancing figure being provision made in 2018) | |||
1,70,000 | 1,70,000 |
Note:
Rent received is deducted from profit because it is related to investment in property. It will be shown as inflow of cash under Invseting Activity.
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