Series RAC–DS2 Code No.

RSPL /1
Candidates must write the Code on
Roll No. the title page of the answer-book.

 Please check that this question paper contains 24 printed pages.

 Code number given on the right hand side of the question paper should
be written on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the Serial Number of the question before
attempting it.

ACCOUNTANCY

Time Allowed: 3 hours Maximum Marks: 80

General Instructions:

(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper is divided into two parts, Part A and B.
(iii) Part A is compulsory for all candidates.
(iv) Part B has two options i.e. (i) Analysis of Financial Statements and
(ii) Computerised Accounting. Students must attempt only one of the given options.
(v) Questions 1 to 16 and 27 to 30 carry 1 mark each.
(vi) Questions 17 to 20, 31 and 32 carry 3 marks each.
(vii) Questions 21, 22 and 33 carry 4 marks each.
(viii) Questions 23 to 26 and 34 carry 6 marks each.
(ix) 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.

RSPL/1 1 P . T .O.
 PART – A
(Accounting for Partnership Firms and Companies)

1. Kanika, Ketan and Kusum are partners in the ratio of 5 : 3 : 2. If Ketan’s

share of profit at the end of the year amounted to ` 1,50,000. What will be
Kanika’s share of profit?

(a) ` 5,00,000 (b) ` 1,50,000

(c) ` 3,00,000 (d) ` 2,50,000 1

2. Assertion (A): It is necessary to revalue assets and liabilities of a firm in

case of admission of a partner.

Reason (R): It is because the incoming partner is neither put to an

advantage nor to a disadvantage due to change in the value of assets and
liabilities

(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).

(b) Both (A) and (R) are correct but (R) is not the correct explanation
of (A).

(c) (A) is correct but (R) is incorrect.

(d) (A) is incorrect but (R) is incorrect. 1

3. If 500 shares of ` 10 each, ` 9 called (including a premium of ` 2) are

forfeited due to non-payment of first call of ` 2 per share then share capital
will be debited by:

(a) ` 2,500 (b) ` 4,000

(c) ` 3,500 (d) ` 5,000 1

RSPL/1 2
 OR

10% Debentures of ` 4,00,000 are issued as collateral security against

bank loan on October 1, 2023. Interest on these debentures will be paid at

(a) 6% p.a. for 6 months

(b) Market rate of interest

(c) 10% p.a. for full year

(d) No interest will be paid 1

4. Arun and Vijay are partners in a firm sharing profits and losses in the ratio

of 5 : 1.

Find out the value of Machinery to be shown in the new Balance Sheet

if the value of machinery reflected in the Balance Sheet of ` 40,000 is

1
overvalued by 33 %.
3
(a) ` 44,000 (b) ` 48,000

(c) ` 32,000 (d) ` 30,000 1

OR

A partner withdraws ` 4,000 at end of every alternate month, first

drawing being made on 31st May 2022. What will be interest on drawings

for the year ending 31st March 2023 @ 6% p.a.?

(a) ` 1,000 (b) ` 600

(c) ` 1,200 (d) ` 800 1

RSPL/1 3 P . T .O.
 5. Which section of Indian Partnership Act 1932 defines partnership as

“Partnership is the relation between persons who have agreed to share the

profits of a business carried by all or any of them acting for all”.

(a) Section 4 (b) Section 2

(c) Section 40 (d) Section 42 1

6. A company has issued 4,000; 7% debentures of ` 100 each at a price of ` 94.

It will credit 7% Debenture Account by _________________.

(a) ` 3,76,000 (b) ` 4,00,000

(c) ` 4,40,000 (d) ` 4,24,000 1

OR

Loss on Issue of Debentures is written off:

(a) In the year of the issue of debentures

(b) During the life of the debentures

(c) Within 3 years of the issue of debentures

(d) In the year of redemption of debentures 1

7. Assertion (A): If any company is unable to receive minimum subscription

amount, it cannot make the allotment of shares and amount received on

application will be refunded to the applicants.

Reason (R): As per provision of SEBI a company must receive 90% or

above subscription of the shares offered for subscription.

RSPL/1 4
 (a) Both (A) and (R) are correct and (R) is the correct explanation of (A).

(b) Both (A) and (R) are correct but (R) is not the correct explanation

of (A).

(c) (A) is incorrect but (R) is correct.

(d) (A) is correct but (R) is incorrect. 1

8. Arpan and Darpan are partners in the ratio of 3 : 2. Their fixed capital

were ` 6,00,000 and ` 8,00,000 respectively. After closing accounts for the

year it was observed that the interest on capital which was agreed to be

provided at 5% p.a. was erroneously provided at 10% p.a. By what amount

will Arpan’s account be affected if partners decide to pass an adjustment

entry for the same?

(a) Arpan’s Current A/c will be debited by ` 30,000.

(b) Arpan’s Current A/c will be credited by ` 12,000.

(c) Arpan’s Current A/c will be credited by ` 70,000.

(d) Arpan’s Current A/c will be debited by ` 20,000. 1

9. ‘X’ a partner agreed to take over the responsibility of completing

dissolution at an agreed remuneration of ` 12,000. X agreed to bear the

dissolution expenses. Actual dissolution expenses ` 8,000 were paid by X.

What correct Journal entry will be passed?

RSPL/1 5 P . T .O.
 (a) Realisation A/c Dr. 8,000

To X’s Capital A/c 8,000

(b) Realisation A/c Dr. 12,000

To X’s Capital A/c 12,000

(c) Realisation A/c Dr. 20,000

To X’s Capital A/c 20,000

(d) No entry will be passed  1

Read the following hypothetical case study and answer the questions 10

and 11.

The directors of ATCCOS Pvt Ltd. Issued 50,000 equity shares of ` 10 each at

` 12 per share, payable as ` 5 on application including premium, ` 4 on

allotment and the balance on final call. Applications were received for 70,000

shares out of which application for 8,000 shares were rejected and their money

was refunded. Money overpaid on application was applied towards sums due

to allotment. All the money was duly received except from one shareholder

holding 500 shares who failed to pay the final call money.

10. What is the amount received on application of shares?

(a) ` 3,50,000 (b) ` 2,80,000

(c) ` 1,50,000 (d) ` 60,000 1

RSPL/1 6
11. What amount will be transferred to the securities premium account?

(a) ` 1,50,000

(b) ` 1,00,000

(c) ` 60,000

(d) ` 40,000 1

12. Rent Paid to partner is shown on:

(a) Dr. side of Profit and Loss Appropriation A/c

(b) Cr. side of Profit and Loss A/c

(c) Dr. side of Profit and Loss A/c

(d) Cr. side of Profit and Loss Appropriation A/c 1

OR

Meenu and Renu are partners in the ratio of 3  :  2. Before profit

distribution, ‘Meenu is entitled to 5% commission of the net profit (after

charging such commission). Before charging commission, firm’s profit was

` 42,000. Renu’s share of profit will be:

(a) ` 16,000

(b) ` 24,000

(c) ` 26,000

(d) ` 16,400 1

RSPL/1 7 P . T .O.
13. Amar, Akbar and Anthony were partners sharing profits and losses in the

ratio of 2 : 2 : 1. Akbar retires on 1st April 2023, amount transferred to

his loan account is ` 2,16,000 which is payable in three equal instalments

together with interest @ 6% p.a. Total amount paid for last instalment

along with interest will be:

(a) ` 72,000 (b) ` 75,600

(c) ` 76,320 (d) ` 76,200  1

14. The firm of Sahil and Manju earned a profit of ` 3,25,000 during the year

ending on 31st March 2023. They have decided to donate 10% of this profit

to an NGO working for visually challenged children. Pass the Journal

entry for distribution of Profit.

(a) Profit and Loss Appropriation A/c Dr. 2,92,500

To Sahil’s Capital A/c 1,46,250

To Manju’s Capital A/c 1,46,250

(b) Sahil’s Capital A/c Dr. 1,46,250

Manju’s Capital A/c Dr. 1,46,250

To Profit and Loss Appropriation A/c 2,92,500

(c) Profit and Loss Appropriation A/c Dr. 32,500

To Sahil’s Capital A/c 16,250

To Manju’s Capital A/c 16,250

(d) None of these  1

RSPL/1 8
 OR

A and B were partners in a firm. They share their profits in the ratio of
2 : 1. A withdraws an amount of ` 2,000 on 1st July 2022. Journal entry for
this will be:

(a) Profit and Loss Appropriation A/c Dr. 2,000

To A’s Capital A/c 2,000

(b) A’s Capital A/c Dr. 2,000

To Profit and Loss A/c 2,000

(c) A’s Drawings A/c Dr. 2,000

To Cash/Bank A/c 2,000

(d) A’s Capital A/c Dr. 2,000

To A’s Drawings A/c 2,000  1

15. Harry and Potter are partners sharing profits in the ratio of 3 : 2. They
decide to share profits equally w.e.f 1st April 2023. Their Balance Sheet
as at 31st March 2023 shows a balance of advertisement suspense of
` 40,000. What will be the correct Journal entry at the time of change in
profit sharing ratio?

(a) Harry’s Capital A/c Dr. 20,000

Potter’s Capital A/c Dr. 20,000

To Advertisement Suspense A/c 40,000

(b) Harry’s Capital A/c Dr. 24,000

Potter’s Capital A/c Dr. 16,000

To Advertisement Suspense A/c 40,000

RSPL/1 9 P . T .O.
 (c) Harry’s Capital A/c Dr. 40,000

To Potter’s Capital A/c 40,000

(d) None of these  1

16. At the time of admission of a partner, what will be the effect of the
following information?

Balance in Investment Fluctuation Reserve of ` 40,000 when investment

(market value ` 1,90,000) appears in the books at ` 2,00,000.

(a) ` 40,000 Debited to Investment Fluctuation Reserve A/c

(b) ` 40,000 Debited to Partners’ Capital A/cs

(c) ` 10,000 Debited to Revaluation A/c

(d) ` 10,000 Credited to Revaluation A/c 1

17. Calculate goodwill of the firm on the basis of 3 years’ purchase of the
average profit of the last 5 years. The profits of the last 5 years are:

Year Amount

2018-19 ` 4,25,000 (including gains of ` 25,000 from sale of

fixed asset)

2019-20 ` 5,00,000

2020-21 (` 60,000)

2021-22 ` 1,50,000

2022-23 ` 2,50,000

RSPL/1 10
 Additional Information:

On 1st January 2021, a fire broke out which resulted into a loss of goods of
` 3,00,000. A claim of ` 70,000 was received from the insurance company.

During the year ended 31st March 2023, the firm received an unexpected
tax refund of ` 80,000. 3

18. X, Y and Z are partners sharing profits and losses in the ratio of 6 : 3 :
1. Y is guaranteed that his share of profit will not be less than ` 22,000.
Any deficiency will be borne by X and Z in 2 : 3. Firm incurred profit of
` 40,000 for the year ended 31st March 2023. Prepare Profit and Loss
Appropriation Account. 3

OR

Teena, Meena and Beena are partners doing a paper business in Agra.
After the accounts of partnership have been drawn up and closed, it was
discovered that for the years ending 31st March 2022 and 2023, interest
on capital has been allowed to partners @ 6% p.a. although there is no
provision for interest on capital in the partnership deed. Their fixed
capitals were ` 1,00,000, ` 80,000 and ` 60,000 respectively. During the
last two years they had shared the profits as under:

Year Ratio

31st March 2022 3:2:1

31st March 2023 5:3:2

Pass necessary adjusting entry. 3

RSPL/1 11 P . T .O.
19. Explain with an imaginary example how issue of debentures as collateral
security is shown in the balance sheet of a company when it is recorded in
the books of accounts. 3

OR

Bhushan Ltd. forfeited 150 shares of ` 10 each issued at a premium of ` 4 per

share payable with allotment for non-payment of allotment money of ` 8 per
share including premium. The first and final call of ` 4 per share were not
made. The forfeited shares were reissued at ` 15 per share fully paid up.

Pass necessary Journal entries. 3

20. E, F, G and H were partners sharing profits in the ratio of 1 : 2 : 3 : 4.

H retired and his share was acquired by E and F equally. Goodwill was
valued at 3 years’ purchase of average profit of last 4 years which was
` 40,000. General Reserve showed a balance of ` 1,30,000 and H’s capital
in the Balance Sheet was ` 3,00,000 at the time of H’s retirement.

You are required to record necessary Journal entries in the books of the
firm and prepare H’s Capital A/c on his retirement. 3

21. GDPL Ltd. with a registered capital of 10,00,000 equity shares of

` 10 each, issued 1,00,000 equity shares payable ` 3 on Application, ` 2 on
Allotment, ` 3 on First Call and ` 2 on Second and Final Call. The amount
due on Allotment was duly received except Mr. A holding 6,000 shares.
His shares were immediately forfeited. On the first call being made, Mr. B
holding 5,000 equity shares paid the entire balance on his holding. Second
Call was not made.

Show how will the Share Capital be presented in the Balance Sheet of the
Company. Also prepare notes to accounts. 4

RSPL/1 12
22. Eena, Meena and Deeka were partners in a firm sharing profits in the
ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On
31-12-2022, Deeka died. On that date her capital account showed a credit
balance of ` 3,80,000 and Goodwill of the firm was valued at ` 1,20,000.
There was a debit balance of ` 50,000 in the Profit and Loss Account.
Deeka’s share of profit in the year of her death was to be calculated on the
basis of the average profit of last five years. The average profit of last five
years was ` 75,000. Pass necessary Journal entries in the books of the firm
on Deeka’s death. 4

23. Ashok and Ankit were partners in a firm. They share profits in the ratio
3 : 2. Sometimes they find it difficult to run the business on their own.
Anjali, a common friend decides to help them. Therefore, they admit her
into partnership for 1/4th share in profits. She brings his share of goodwill
in cash and proportionate capital. At the time of Anjali’s admission, the
Balance Sheet of Ashok and Ankit was as under:

Balance Sheet

Amount Amount
Liabilities Assets
(`) (`)

Capitals: Cash at Bank 20,000

Ashok 1,20,000 Debtors 1,30,000

Ankit 80,000 2,00,000 Less: Provision for

General Reserve 64,000 Doubtful Debts 10,000 1,20,000

Creditors 56,000 Stock 60,000

Investment 1,00,000

Patents 20,000

3,20,000 3,20,000

RSPL/1 13 P . T .O.
 On 1st April 2023 Anjali was admitted on the following terms:

(a) The goodwill of the firm was to be valued at ` 1,00,000.

(b) The unaccounted accrued income of ` 1,000 was to be provided for.

(c) The market value of investments was ` 90,000.

(d) A debtor whose dues of ` 2,000 were written off as bad debts paid `

1,600 in full settlement.

(e) Patents were overvalued by ` 10,000.

Prepare Revaluation Account and Capital Accounts of the partners. 6

OR

Khushboo, Leela and Teena were partners in a firm sharing profits in the

ratio 5 : 3 : 2. Their Balance Sheet on March 31, 2023 was as follows:

Balance Sheet
as at March 31, 2023

Amount Amount
Liabilities Assets
(`) (`)

Creditors 70,000 Bank 44,000

Capitals: Debtors 24,000

Khushboo 90,000 Stock 60,000

Leela 56,000 Buildings 1,40,000

Teena 60,000 2,06,000 Profit and Loss A/c 8,000

2,76,000 2,76,000

RSPL/1 14
 On April 1, 2023, Leela retired on the following terms:

(i) Building was to be depreciated by ` 10,000.

(ii) A Provision of 5% was to be made on Debtors for doubtful debts.

(iii) Salary outstanding was ` 4,800.

(iv) Goodwill of the firm was valued at ` 1,40,000.

(v) Leela was to be paid ` 20,800 through cheque immediately and the

balance was to be paid in two equal quarterly installments (starting

from June 30, 2023) along with interest @ 10% p.a.

Prepare Revaluation Account, Leela’s Capital Account and her Loan

Account till it is finally paid. 6

24. P Ltd. invited applications for issuing 2,00,000 equity shares of ` 10 each

at premium of ` 3 per share. The amount was payable as follows:

On Application and Allotment : ` 8 per share (including premium)

On First and Final Call: Balance

Applications were received for 3,00,000 shares.

Applications for 50,000 shares were rejected and money refunded. Shares

were allotted on pro-rata basis to the remaining applicants. First and

final call was made and received except from Kanwar who had applied for

2,500 shares. His shares were forfeited. The forfeited shares were reissued

at ` 7 per share fully paid up. Journalise. 6

RSPL/1 15 P . T .O.
 OR

OLA Ltd. was registered with an authorized capital of 2,00,000 equity

shares of ` 100 each. The company offered 60,000 shares for public

subscription at 25% premium. The share was payable as ` 40 on

application and balance on allotment with premium. Public had applied

for 85,000 shares. Pro-rata allotment was made in the ratio of 5 : 4 and

remaining applications were sent letters of regret.

Mr. Ankur holding 4,000 shares failed to pay allotment money and

his shares were forfeited. Out of these 3,000 shares were reissued at a

discount of ` 20 per share. Pass necessary Journal entries in the books of

the OLA Ltd. 6

25. Gaurav and Amit were partners in a firm sharing profits in the ratio of

3 : 2. On March 31, 2023, their Balance Sheet was as follows:

Amount Amount
Liabilities Assets
(`) (`)

Creditors 36,000 Bank 40,000

Amit’s Wife’s Loan 60,000 Debtors 76,000

Gaurav’s Loan 40,000 Stock 2,00,000

Capitals: Furniture 20,000

Gaurav 2,00,000 Leasehold Premises 1,00,000

Amit 1,00,000 3,00,000

4,36,000 4,36,000

RSPL/1 16

On the above date the firm was dissolved. The various assets were realized

and liabilities were settled as under:

(i) Amit agreed to pay his wife’s loan.

(ii) Leasehold Premises realised ` 1,50,000 and Debtors ` 2,000 less.

(iii) Half of the creditors agreed to accept furniture of the firm as full

settlement of their claim and remaining half agreed to accept 5% less.

(iv) 50% stock was taken over by Gaurav on cash payment of ` 90,000 and

remaining stock was sold for ` 94,000.

(v) Realisation expenses of ` 10,000 were paid by Amit on behalf of firm.

Pass necessary Journal entries for the dissolution of the firm. 6

26. XYZ Ltd. issued ` 9,00,000, 10% Debentures of ` 100 each at par to be

redeemed at 10% premium after 5 years. Balance in securities premium

was ` 90,000.

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 interest on debentures.

(vi) Pass Journal entry for writing off loss on issue of debentures.  6

RSPL/1 17 P . T .O.
 PART – B

(Analysis of Financial Statement)

27. Premium on Redemption of Debentures appears on a Company’s Balance

Sheet under the sub-head:

(a) Long-Term Borrowings (b) Other Long-Term Liabilities

(c) Short-Term Borrowings (d) Short-Term Provisions  1

OR

Interest accrued and due on debentures appears in a Company’s Balance

Sheet under the sub-head:

(a) Short-Term provision (b) Other Current Liabilities

(c) Trade Payable (d) Short-Term Borrowings  1

28. Statement I: Debt-Equity Ratio of 2 : 1 is considered satisfactory.

Generally a low ratio is considered favourable.

Statement II: Debt-Equity Ratio indicates the proportionate claims of

outsiders and owners on firm’s assets.

(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. 1

RSPL/1 18
29. The Goodwill of Amrit Ltd. increased from ` 4,00,000 in 2021-22 to

` 6,50,000 in 2022-23. What will be the effect of above while preparing

Cash Flow Statement for the year ended 31st March 2023?

(a) No effect

(b) Outflow in Investing Activity

(c) Outflow in Operating Activity

(d) Outflow in Financing Activity  1

OR

If a machinery whose original cost is ` 1,40,000, having accumulated

depreciation ` 36,000, were sold for ` 98,000, then while preparing Cash

Flow Statement its effect on cash flow will be:

(a) Cash flow from financing activities ` 98,000

(b) Cash flow from financing activities ` 22,000

(c) Cash flow from investing activities ` 98,000

(d) Cash flow from investing activities ` 22,000 1

30. While calculating operating profit which will be added to net profit?

(a) Preliminary expenses written off

(b) Depreciation

(c) Loss on Sale of Asset

(d) All of above  1

RSPL/1 19 P . T .O.
31. Minda Ltd. is in the process of preparing its Balance Sheet as per

Schedule III, Part I of the Companies Act, 2013 and provides its true and

fair view of the financial position.

(a) Under which major head and sub head will the company show ‘Loose

Tools’ in its Balance Sheet?

(b) What is the accounting treatment of ‘Loose Tools’ when the Company

will calculate its Inventory Turnover Ratio?

(c) The management of Minda Ltd. want to analyze the Financial

Statement. State any two objectives of such analysis. 3

32. (a) State giving reasons, whether following transactions would increase,

decrease or not change the Inventory Turnover Ratio:

(i) Sale of goods for ` 50,000 (costing ` 40,000)

(ii) Goods costing ` 35,000 distributed as free samples

(b) Net profit before Interest and Tax ` 3,00,000

Net Fixed Assets ` 10,00,000

Net Working Capital ` 5,00,000

Current Assets ` 11,00,000

Calculate Return on Investment.  3

RSPL/1 20
33. From the following information, prepare Comparative Statement of Profit

and Loss: 4

for the year ending for the year ending

Particulars
31st March 2023 31st March 2022

Revenue from Operations 300% of Cost of 200% of Cost of

Materials Consumed Materials Consumed

Expenses:

Cost of Materials Consumed ` 12,00,000 ` 10,00,000

Other Expenses 20% of cost of 10% of Cost of

Materials Consumed Materials Consumed

Tax 50% 50%

OR

Prepare a Common-Size Statement of Profit and Loss from the following

information:  4

for the year ending for the year ending

Particulars
31st March 2023 31st March 2022
Revenue from Operations ` 60,00,000 ` 40,00,000

Purchase of Stock-in-Trade ` 43,20,000 ` 30,40,000

Change in Inventories ` 1,20,000 (` 80,000)

Other Income ` 1,50,000 ` 60,000

Other Expenses ` 3,60,000 ` 2,00,000

RSPL/1 21 P . T .O.
34. Cash flow from the operating activities of Pinnacle Ltd for the year ended

31st March 2023 was ` 28,000. The Balance Sheet along with notes to

accounts of Pinnacle Ltd as at 31st March, 2023 is given below:

Balance Sheet

as at 31st March 2023

Note 31st March 31st March

Particulars
No. 2023 (`) 2022 (`)
I. EQUITY AND LIABILITIES

1. Shareholders’ Funds:

(a) Share Capital 9,00,000 5,00,000

(b) Reserves and Surplus 1 90,000 1,10,000

2. Non-Current Liabilities:

Long-term Borrowings 2 3,00,000 2,00,000

3. Current Liabilities:

Trade Payables 60,000 80,000

Total 13,50,000 8,90,000

II. ASSETS

1. Non-Current Assets:

Property, Plant and Equipment and

Intangible Assets

(a) Property, Plant and equipment 3 7,46,000 5,24,000

(b) Intangible Assets 4 36,000 76,000

RSPL/1 22
 2. Current Assets:

(a) Current Investments 1,30,000 20,000

(b) Inventories 2,00,000 1,30,000

(c) Cash and Cash Equivalents 2,38,000 1,40,000

Total 13,50,000 8,90,000

Notes to Accounts:

31st March 31st March

Particulars
2023 (`) 2022 (`)

1. Reserves and Surplus:

Surplus i.e. Balance in Statement of Profit and Loss 90,000 1,10,000

90,000 1,10,000

2. Long-term Borrowings:

9% Debentures 3,00,000 2,00,000

3,00,000 2,00,000

3. Property, Plant and Equipment:

Plant and Machinery 8,86,000 6,04,000

(–) Accumulated Depreciation (1,40,000) (80,000)

7,46,000 5,24,000

4. Intangible Assets:

Goodwill 36,000 76,000

RSPL/1 23 P . T .O.

You are given the following additional information:

(i) A machinery of the book value of ` 90,000 (depreciation provided

thereon was ` 23,000), was sold at a profit ` 12,000.

(ii) 9% debentures were issued on 1st April 2022.

Prepare Cash Flow Statement. 6

RSPL/1 24