The Choice School ,Tripunithura

Revision Paper Term II

Sub : Accountancy Marks
:40
Time : 2 Hrs

General Instructions:

 This question paper comprises two Parts – A and B.

 There are 12 questions in the question paper.
 All questions are compulsory
 Question nos. 1 to 3 and 1 0 are short answer type–I questions carrying 2 marks each.
 Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3
marks each.
 Question nos. 7 to 9 and 12 are long answer type questions carrying 5 markseach.
There is no overall choice. However, an internal choice has been providedin 3 questions of three marks and 1 question
of five marks

1 From the following information, calculate the amount of sports material that will be debited to the Income 2
and Expenditure Account of Vikas Welfare Club for the year ended
31-3-2021

Particulars 1 st April, 2020 (`) 31st March, 2021(`)

Stock of Sports Material 6,000 15,000

Creditors for Sports Material 18,200 22,000

Additional Information :
Payment to suppliers for the sports material during the year was `2,00,000 and there were cash
purchases of sports material for `50,000 during the year.
2 a. Distinguish between Revaluation A/c and Realisation A/c 2
b. A and B are partners in a firm sharing profits in the ratio of 3:2 .Mrs A has given a loan of `20,000 to
the firm and the firm had also taken a loan of `10,000 from B. The firm was dissolved and its assets
were realised for `25,000.
State the order of payment of Mr’s A’s Loan and B’s Loan, if there were no creditors of the firm.
3 Alok, Narendra and Shiv were partners in affirm sharing profits in the ratio of 5:3:2. Goodwill appeared at 2
`90,000 and General reserve at `50,000 in the books of the firm. Narendra decided to retire from the firm.
On the date of his retirement goodwill of the firm was valued at `2,40,000. The new profit sharing ratio of
Alok and Shiv was 2:3. Record necessary journal entries.

4 Royal Club has provided the following information. 3

Details Amount
Capital fund 1 April 2020 9,50,000

Building fund on 1 April 2020 5,00,000

6% Building Fund Investment 5,00,000

Donation received for Building 3,00,000

Interest received on Building Fund Investment 30,000
Additional information : Expenditure on Construction of Building `6,50,000. Construction work is in
progress and has not been completed.
Present the above information in the Balance Sheet of Royal Club.

OR

Subscription credited to Income & Expenditure A/c was `4,00,000. Subscription outstanding at the end
of the previous year was `20,000 and outstanding at the end of the current year was `25,000.
Subscription received in advance for next year was `8,000 and received in advance during previous year
was `7,000. What was the amount recorded in Receipt & Payment amount.
5 Danish, Anish and Praveen were partners in a firm sharing profits and loses in the ratio of 4:3:1 Their 3
books are closed on 31 March every year.
Danish died on 30 June 202 and it was decided that the new profit sharing ratio between Anish and
Praveen will be equal The executors of Danish are entitled to :
i) Goodwill is valued on the basis of two years purchase of the average profit of the last three
years (I year `2,00,000, II year `3,00,000 and III year-`4,00,000).
ii) His share of profit upto his date of death was to be calculated on the basis of sales. Sales
for the year ended 31 March 2021 was `21,00,000 and profit earned during the year was
`84,000. From 1 April to 30 June 2021 the firm’s sales were `2,00,000.
Pass journal entries and show the workings clearly.
6 Accer Ltd purchased assets of `4,20,000 and took over liabilities of `40,000 of XYZ Ltd at a value of 3
`3,60,000. Accer issued 10% Debentures of `100 each at a discount of 10% in full settlement of the
purchase consideration.
Pass the journal entry in the books of Accer Ltd.
OR
VK Ltd. took a loan of `20,00,000 from HDFC Bank for 23,000, 7% Debentures of `100 each as Collateral
Security. How the company will show this in Balance Sheet and also pass journal entry.
7 Charu , Divya and Esha were partners n a firm. The following transactions on dissolution of the firm 5
after various assets and external liabilities have been transferred to Realisation A/c.
i) An unrecorded asset of `40,000 was given to an unrecorded creditor of `60,000 in settlement
of his claim of `45,000 and the balance was paid to him in cash.
ii) A Motorbike was not recorded in the books was taken over by Charu at `10,000, whereas its
expected value was `15,000.
iii) Creditors to whom the firm owed `50,000, accepted stock of `30,000 at a discount of 20%
and the balance in cash.
iv) Esha paid the realisation expenses of `20,000 out of her pocket and she was to get a fixed
remuneration of `25,000 for completing the dissolution process,
v) Divya’s loan of `40,000 was discharged at `42,000.
Pass journal entries
or
A, B and C are partners sharing profits and losses in 4:3:2. C retires from the business and A and B
decided to share future profits in the ratio of 3:2. The Balance Sheet of the firm as at 31 arch 2020
stood as follows:
Liabilities ` Asset `
S.Creditors 1,05,000 Land and Building 5,00,000
Workmen compensation Reserve 45,000 Machinery 3,20,000
Capital A/c Stock 1,05,000
A 5,00,000 Debtors 1,50,000
B 4,00,000 Less : Provision
C 1,50,000 For doubtful debts 15,000 1,35,000
Cash at Bank 1,40,000
10,50,000
12,00,000 12,00,000
i) Goodwill of the firm is valued at `1,80,000
ii) Land and Building to be increased to `5,40,000 and Machinery is to be reduced by `60,000.
iii) The claim on account of Workmen’s Compensation is estimated at `27,000
iv) There were bad debts amounting to `22,000
v) C is to be paid `1,00,000 on retirement and the balance after one year @12% p.a
Prepare Revaluation A/c , Capital Account of Partners and Balance Sheet.

8 On 1 Oct ,2020 . G C Ltd decided to issue 7% 80,000 Debentures of `100 each to the public at a 5
discount of 4% redeemable after 5 years at `105 per debenture.
You are required to answer the following questions( Company closes its book on 31 March every year)
Pass journal entries
a) for issue of debentures
b) for payment of interest on debentures and for closing the interest on debenture account.
c) To write off Loss on Issue of Debenture A/c.
d) Prepare Loss on issue of Debentures
9 From the following Receipts and Payments, A/c of Youth Club and from the given additional information; 5
prepare Income and Expenditure A/c for the year ending 31st March, 2021
 Receipt and Payment Account for the year ended 31 March 2021 from the following information:
Receipt Amt Payment Amt
Balance b/d 25,000 By Honaraium 71,000
Subscription By Music Instrument 40,000
2019-2020 13,000 By Electricity Bill 31,000
2020-2021 2,00,000
2021-2022 17,000 2,30,000
To Sale of Old furniture ( Book By Balance c/d
value `10,000) 15,000 2,05,500
Locker Rent 8,000
Donation for Building 45,000
To Life Membership Fees 19,500
To Admission Fees
5,000

3,47,500 3,47,500
The following additional information is provided to you:
i) The Club had 225 members each paying an annual subscription of `1,000.
ii) Musical instrument were purchased on 1-10-2020.
iii) Depreciation @15% p.a was to be charged on musical instrument.
Part B 2
State whether the following transaction will result in inflow, outflow or no flow of cash while preparing
10 cash flow statement.
i) Increase in current investment
ii) Decrease in outstanding employees benefits by `3,000
iii) A company sold inventory costing `2,00,000 at a loss of `10,000.
iv) Redemption of Debentures

11 From the following Statement of Profit and Loss of Skills India Ltd. for the year ended 31st March, 2021 3
and 2022, prepare a Comparative Statement of Profit and Loss.
Particulars NoteNo 2021-22 (`) 2020-21 (`)
Revenue from Operations 20,00,000 10,00,000
Employee benefit expenses 70% of revenue 60% of revenue
from operation from operation
Other Expenses 40,000 60,000
Tax Rate 50%
Or
Prepare Common Size Balance Sheet of M Ltd. from the following information

Particulars No 31.3.2021 31.3.2022

I Equity & Liabilities

1. Shareholders funds 20,00,000 40,00,000
2. Non current liabilities 10,00,000 25,00,000
3. Current liabilities 10,00,000 15,00,000

Total 40,00,000 80,00,000

II Assets
1. Non current Assets 25,00,000 50,00,000
2 Current Assets 15,00,000 30,00,000

Total 40,00,000 80,00,000

12 5
Following are the Balance Sheet of SRS Ltd for the year ended 31st March 2021 and 2022
Particulars Note 31.3.2022 31.3.2021
No. ` `
I EQUITY AND LIABILITIES
1. Shareholders Funds
(a)Share Capital 19,00,000 17.00,000
(b)Reserves & Surplus 1 6,00,000 3,00,000
 2. Non-Current Liabilities
Long term borrowings 2 5,00,000 4,00,000
3 Current Liabilities
(a)Short term borrowings 3 70,000 5,000
(b)Short term Provisions 4 3,00,000 1,65,000
( c) Trade Payables 1,00,000 1,00,000
(d)Other Current Liabilities 5 ------ 1,70,000
Total 34,70,000 28,40,000
II Assets
Non-Current Assets:
a) Fixed Asset
i. Tangible 6 24,00,000 19,00,000
ii. Intangible 7 2,00,000 3,00,000
(b) 10%Non current investment 3,00,000 2,00,000
2. Current Assets
b) Current Investment 1,40,000 2,00,000
c) Inventories 3,60,000 2,00,000
d) Cash & Cash Equivalents 70,000 40,000
Total 34,70,000 28,40,000
Notes to Accounts
Note Particulars 31/3/2022 31.3.2021
No ` `
1. Reserves and Surplus 6,00,00 3,00,000
Surplus i.e Balance in the Statement of Profit & Loss
2. Long term borrowings
12% Debentures 5,00,000 4,00,000
3. Short term borrowings
Bank overdraft 70,000 5,000
4. Short term Provision
Provision for Tax 3,00,000 1,65,000
5. Other Current Liabilities -----
Outstanding expense 1,70,000
5. Tangible Assets
Machinery 26,00,000 20,00,000
Accumulated Depreciation (2,00,000) (1,00,000)
-------------- -------------
24,00,000 19,00,000
====== =====
6. Intangible Assets:
Computer Software 80,000 2,20,000
Goodwill 1,20,000 80,000
Contingent Liabilities: 31/3/2022 31/3/2021
Proposed Divided 20,000 10,000
Additional information:
a) Fresh Debentures were issued on 1 April 2021 `1,00,000
b) During the year a piece of machinery costing ` 80,000 on which
accumulated depreciation was ` 40,000 was sold at a gain
of ` 10,000.
c) Interim dividend ` 5,000