1. (d) 2. (d) 3. (a) 4.

(d) OR (2)
5. (d) 6. (a) 7. (b) 8. (b)
9. (b) 10. (d) 11. (a) OR (b) 12. (b)
13. (b) 14. (d) OR (2) 15. (d) OR (c) 16. (c) OR (d)
17. Adjustment Entry
Date Particulars LR D. )
Dr. 11,100
2022 Kumar's Current A/c 11,100
31 Mar. To Rajas Current Alc
(Being adjustment made which was omitted earlier)
Working Notes: Adjustment Table
Kumar ) Raja ) Total
Details 1,94,600 83,400 2,78,000
Amount already distributed Dr.
|Amount should have been distributed: 81,000 36,000 1,17,000
(i) Cr.
Interest on capital C. 50,000 36,000 86,000
(G1) Salary 52,500 22,500 75,000
Cr.
(iii) Divisible profit 1,83,500 94,500 2,78,000
Total Cr.
11,100 Dr. 11,100 Cr.
Net Efect
 OR
Dr.
Profit And Loss Appropriation A/e for the year ending 31st March, 2022 Cr.
Particulars Amount O Particulars |Amount )
|To Profit tr. to Partners' Capital Alc: By Profit and Loss Alc (net profit) 9,00,000
Vikas 4,72,500
Less: Deficiency (15.000) 4,57,500
Vivek 3,15,000
Less: Deficiency (22,.500) 2,92,500
Vandana 1,12,500
Add: Deficiency received:
From Vikas 15,000
From Vivek 22,500 1,50,000
9,00,000 9,00,000
3,00,000
18. Firm's profit till 30th June, 2022 = 24,00,000 -x4,00,000 =50,000

Fs share in the profit=x50,000

10
=20,000
Journal
Date Particalars LE Dr. Cr )
2022 Profit and Loss Suspense A/c Dr. 20,000
June 30 To Fs Capital Alc 20,000
Fs share in che profits transferred to his Capital Account at the time
|of his death)
19. Journal
Date Particulars LE D. Cr O
Realisation A/c Dr. 44,000
()
To Bank Alc 44,000
(Payment made to creditors)
(ü) Rivik's loan Alc Dr. 21,000
To Bank Cash Alc 19,000
To Realisation A/c 2,000
(Ritvik's loan sertled)
Disha's Current Ac Dr. 60,000
(iii)
Cash/ Bank Alc Dr. 12,000
To Realisation A/c 72,000
(Stock taken over by Disha and remaining sold)
20. Journal of Disha Ltd.

Date Particulars LR Dr. )

|Sundry Assets Alc Dr. 8,00,000
Goodwill Alc Dr 1,00,000
To Sundry Liabilities A/c 3,00,000
To Kriti Lrd. Alc 6,00,000
(Assets and liabilities taken over from Kriti Ltd.)
Dr. 6,00,000
|Kriti Ltd.'s Alc
To 9% Debentures Alc 5,00,000
To Securities Premium Alc 1,00,000
(Purchase consideration discharged by issuing 9% Debentures at a premium)
 OR
Books of the Madhur Ltd.
Journal
Date Pariculars LR Dr. ) Cr. )
(i) |Assets Ac Dr. 3,90,000
Goodwill A/c Dr. 50,000
To Liabilities A/c 40,000
To Rasova Ltd. 4,00,000
(Being assets and liabilities of Rasova Ltd. taken over)
(iü) Rasova Ltd Dr. 80,000
To Bank Alc 80,000
(Being 20% payment made to Rasova Lrd. by cheque)
(iii) Rasova Ltd. Dr. 3,20,000
To Equity Share Capital A/c 2,00,000
To Securities Premium Alc 1,20,000
(Being balance due to Rasova Ltd. sertled by issue of equity shares at
apremium of 60%)
Working Notes: No. of equity shares issued =3,20,000/ I60 = 2,000
21, Dr. Revaluation A/c Cr.

Particulars Amount OParticulars Amount )

|Provision for doubtful debts Alc 6,000 Land && Building a/c 15,000
Stock Alc 5,000 Partners' Capital Acs- loss on Revaluation:
Furnirure A/c 2,000 X 5,400
20,000 Y 5,400
Machinery Alc 18,000
Z Z.200
33,000 33,000
Cr.
Dr. Z3 Capital Alc
Amount Particulars Amount )
Particulars
7,200 Balance B/d 4,00,000
Revaluation A/c (loss) 80,000
4,72,800 General Reserve Ac
|Z's Loan A/c (Balancing figure)
4,80,000 4,80,000

22. Balance Sheet of Surya Ltd. as at

Note No Amount )
|Particulars
I. EQUITY AND LIABILITIES 7,70,000
1. Shareholder's Funds
Share Capital
Notes to Accounts:
Amount ()
Note No.Particulas
1 Share Capital 1.00.00.000
|Authorised Share Capital: 10,00,000 Equity Shares of 10 cach 10,00,000
|Issued Share Capital: 1,00,000 Equity Shares of 10 each
Subscribed Share capital:
Subscribed but nÍt fully paid-up 7,52,000
94.000 cquity shares of 10 each, 8 Called up
18.000 7,70,000
Add: Share Forfeited Account
Cr.
23. D. Revaluation Account

Particulars Amount ()
Particulars Amount
4,000
To Stock Alc 20,000 By Bank A/c(Bad debts recovered)
To Salaries Outstanding Alc 12,000 By Partners' capital Acs (Los)
Abhir 21,000
Z000 28,000
Divya
32,000
32,000
Partner's Capital Account Cr.
Dr.
Particulars Diy VIbbor Particula Abhir Divya Vibhor
Abhir

To Revaluation Ac 21,000 7,000 By Balance b/d 6,00,0004,00,000

To Balance cld 7,59,0004,53,000|3,03,000 By General Reserve 90,000 30,000
By Premium for
Goodwill Alc 60,000 20,000
By Investment
Fluct. Fund 30,000 10,000
By Bank Ac 3,03,000
7,80,0004,60,0003,03,000 7,80,0004,60,000 3,03,00o
Balance Sheet of the Reconstituted firm

Liabilities Amount OAssets Amount )

Creditors 2,20,000 Cash at Bank 5,27,000
Outstanding Salary 12,000 (1,40,000 + 3,03,000+ 80,000 + 4,000)
Employees Provident Fund 1,00,000 Stock 2,80,000
Partners' Capital accounts: Debtors 6.50,000
Abhir 7,59,000 Less: Provision (50.000) 6,00,000
Divya 4,53,000 Investments 4,40,000
Vibhor 3.03.000 15,15,000
18,47,000
18,47,000
Worling Notes: Vibhoicapital - (7,59,000 +4,53,000) × S/4 x 1/5 =3,03,000
 24. Journal
Date Particulars LR Dr. () Ct. ()
2022 Realisation Alc Dr. 1,56,360
31 Dec. Io Fixed Assets Ac 81,000
To Stock Alc 56,760
To Debtors A/c 18,600
(Being assets transferred to Realisation A/c)
Bank Loan Alc Dr. 20,000
Creditors Alc Dr. 37,000
Provision for Depreciation A/c Dr. 1200
To Realisation A/c 58,200
(Being external liabilities induding provision transferred to Realisacion A/c)
Bank A/c Dr. 1,36,300
To Realisation A/c 1,36,300
|(Beingassets realised: Stock 14,000; Debtors (R8000 +4300);
Land 1,10,000]
Shilpa's Capital A/c Dr. 35,000
To Realisation Alc 35,000
|(Being stock taken over by Shilpa)
Realisation Alc Dr. 31,000
To Bank Alc
31,000
(Being creditors paid off at ?37000 -6000)
Realisation A/c Dr. 20,000
To Shilpa's Capital A/c 20,000
|(Being bank loan paid by Shilpa)
Realisation Alc Dr. 1,200
To Bank Alc
1,200
(Being realisation expenses paid)
|Realisation A/c Dr. 20,940
ToShilpa's Capital Alc 10,470
To Meena's Capital Alc 6,980
To Nanda's Capital Alc 3,490
(Being proht on realisation 20,940divided in 3: 2: 1)
General Reserve Alc Dr. 12,000
To Shilpas Capital Alc 6,000
To Meenas Capital Ac 4,000
ToNanda's Capital Ac 2,000
J(Reserve distributed in 3:2: 1)
Shilpas capital A/c Dr.
81,470
|Meena's capital A/c Dr.
50,980
To Bank A/c
(Sertlement of partner capital through payment of cash) 1,32,450
Bank A/c Dr. 17,510
To Nanda's Capital Alc
(Cash brought in by Nanda)
17,510
 OR
Dr. Revaluation Account Cr.
Particulars JAmount ) Particulars |Amount ()
To Machinery A/c 50,000 By Land and Building A/c 2,40,000
To Provision for Doubtful Debts 20,000 By Debtors A/c (Bad debts recovered) 7,000
To Stock Alc 1,00,000
To Profit transferred to:
Leena's Current A/c 12,833
Madan's Current A/c 25,667
Naresh's Current Alc 38,500 77,000
2,47,000 2,47,000
Dr. Partners' Current A/as Cr.

Particulars Leena Madon Pardaalars Leena M Naresh

To Balance b/d 1,00,000 By Balance b/d 2,00,000 1,00,000

To Investments 1,00,000 By Revaluation A/c 12,833 25,667 38,500
To Deferred Adv. 16,667 33,333 50,000 By Leena's Current A/c |2,00,000 60,000
Expenditure By Madan's Capital Ac 7,666
To Madan's Current 2,00,000 By Balance dd 63,834
Alc
To Narcshs Curent Ac 60,000
To Balance cdd 1,48,500
2,76,667|2,33,333|1,98,500 2,76,667|2,33,333|1,98,s00
Dr. Partners Capital As Cr.

Particulars Leena Madan Naresh (OParticulars Leena ( Madan

To Madan's Current Ad 7,666 By Balance bld| 10,50,000 9,00,000 9,50,000
To Bills Payable 8,92,334
To Balance dd 10,50,000 9,50,000

10,50,000 9,00,000 9,50,000 10,50,0009,00,000 9,50,000

Working Notes: Madan's share of goodwill =R6,00,000 x 2/6 =*2,00,000.
Leena's gain =3/5 - 1/6 = 13/30; Naresh's gain = 2/5 - 3/6 =-3/30 (sacrifice)
Naresh's Current A/c willbe credited proportionately by 60,000 (i.e. 6,00,000 %3/30)
Since an old customer Mohit whose account was written off as bad debt promised to pay 7,000, therefore,
debtors will increase by 7,000. However, provision is not calculated on good debt, so provision for doubhul
debts = 5% of 4,00,000 =20,000.
 25. (i) Journal

Date Particulars LE Dr. () C. ()

2021 Bank A/c Dr. 5,70,000
lApril To 124% Debenture Application and Allotment Ac 5,70,000
(Being money received on issue of decbentures)
9% Debenture Application and Allotment Alc Dr. S,70,000
Loss on lssue of Debentures A/c Dr. 72,000
To 99% Debentures A/c 6,00,000
To Premium on Redemption of Debentures A/c 42,000
(Being debentures alloted at 59% discount, redeemable at 7% premium)
(ii) Journal
Date Particulars LE Dr. )Cr. )
2022 Debenture Interest Ac Dr. 27,000
To Deben tureholders Ac 27,000
31
March (nterest due for 6 months)
Dr. 27,000
Debentureholders Ale
To Bank Ac 27,000
(Payment of interest)
|Statement of Profit & Loss Dr. 54,000
To Debenrure Interest Ac 54,000
l(Debenture interest for 12 months transferred to statement of Profit & Los)

(iüi) Journal
LE Dr. ) Cr. )
Date Particulars
2022 Securities Premium A/c Dr. 50,000
31 Mat.|Statement of Profit and Loss Dr. 22,000
To Loss on Lssue of Debentures Alc 72,000

(Being los on issue of debentures writen-of)

Loss on Isue of Debentures Account Cr.
D.
Particulans Amt. () Date Particulan Amt.
Date
30,000 2022 By Securities Premium Alc 50,000
2021 To 12% Debentures Alc
22,000
April 1 To Premium on Redemption Ac 42,000 Mar 31 |By Statement of Profit and Loss
72,000 72,000

26. Book of X Ltd.

Journal
LE D. ) Cr. (
Date Particulars
2022
Feb.10 Bank A/c Dr. 3,50,000
3.50,000
To Equitry Share Application Alc
(Being amount reccived on application for 70,000 shares @S per
share Including Premium)
Feb.l6 Equity Share Application Ac Dr. 3,50,000
1,50,000
To Equity Share Capital Ac 1,00,000
ToSecurities Premium Alc 40,000
To Bank A/c 60,000
To Equity Share Allotment A/c
(Transfer of application moncy)
 Allotnent A/e Dr
Share
Feb. 16
Equity
To Equity Share Capiral A/c 2,00,000
(Amount due on allotment of 50,000 shares D {4 per share) 2,00,000
BankA/c Allotment A/c
Dr. 1,40,000
Feb.16 ToEquity Share allotmen)
l(Money received on
1,40,000
Alc
First and Final Cal
May I Equicy Sharc Share Capital A/c
Dr. 1,50,000
To Equity 1,50,000
l(First call money due)
A/e
May 1 Bank
Dr. 1,48,500
JCalls-in-Arrears Alc Dr. 1,500
To Equity Share First and Final Call A/c
l(Moncy received on first cal) 1,50,000

Sept. 29 |Equity Share Capital A/c Dr. 5,000

To Shares Forfeiture A/c
To Calls-in-Arrears Alc 3,500
1,500
Forfeited of 500shares for non-payment of call)
Nov. 1 Bank A/c Dr. 4,000
Shares Forfciture Ac Dr. 1,000
To Equity Share Capital A/c
5,000
(Reissue of 500 forfeited shares as fully paid at 8 per share)
Nov. 1 Shares Forfeirure A/c Dr. 2,500
To Capital Reserve Ac 2,500
lProft on reissue of Forfeited Shares Accounts transferred to capital reserve)
OR
Books of Garima Limited
Journal
Date Pariculars LE D. C )
Bank A/c Dr. 80,000
To Share Application A/c 80,000
|(Application money received on 4,000 shares @20 per share)
|Share Application A/c Dr. 80,000
To Share Capital A/c 60,000
To Share Allotment A/c
12,000
To Bank Wc
8,000
(Transfer of application money on 3,000 shares to Share Capital Account,
on 600 shares to Allotment Account, and on of 400 shares refunded)
Share Allotment A/c Dr. 1,50,000
To Share Capital A/c 90,000
To Securities Prermium A/c 60,000
(Money due on allotment 50 per share on 3,000 shares including 20
|on account of share premium)
Bank A/c Dr. 1,21,440
To Share Allotment Alc 1,21,440
|(Money received on share allotment)
Share First and Final Call Alc Dr. 1,50,000|
ToShare Capital A/c 1,50,000
(Money due on call on 3,000 shares 50 per share)
Bank Alc Dr. 1,22,000
To Share First and Final Call Alc 1,22,000
(Callmoney received on 2,440 shares)
Share Capital Alc Dr. 56,000
|Securiies
To
Premium Alc Dr. 7,200
16,560
Share Allotment Alc
To Share First Call Alc 11,200
To Share Second and 16,800
To Share Forfeiture AcFinal Alc 18,640
(Forfeiure of 560 shares)
Bank A/c Dr. 44,800
Shares Forfeiture A/c Dr. 11,200
56,000
To Share Capital Alc
(Reissue of 560 forfeited shares)
|Shares Forfeiture A/c Dr. 7,440
7,440
To Capital Reserve
Profit on reissue of 560Alcforfeited shares transferred to Capital reserve)
27. (d) OR () 28. (c) 29. (a) 30. (b) OR (2)

Net Pr ofit after Tax 1,00,000 x 100 =I,25,000

31. Net Profit before Tx = x100 =
100-Tax Rate 100- 20

Therefore, Net profit before interest and tax = Net profit before tax + Interest on long-term debt
-1,25,000 + 10% of34,00,000 -1,25,000 +40,000 = 1,65,000
Capital Employed = Fixed Assets + Working Capital (Current assets - Current liabilities)
- 6,00,000 + (4,00,000 2,00,000) =8,00,000
Net Profit before interest and tax 1,65,000 x100 = 20.62%
Return on Investment = x 100 =
Capital Employed Z8,00,000
which ar
32. () Moncy Reccived against share warrants: It is the amount received by the companythe amount
against
converted into shares at a specified date on a specified rate. The instrument issued
to be disclosed as a separate line
O rcceived as share warrants. Money received against share warrants'
item under 'shareholder's fund'.
account has been recognised as a
ae options Qutstanding account: Share oprions outstanding Employee share
Guidance Note on Accounting for
L e m under "Reserve and Surplus'. ICAl's outstanding Account to be discdosed
c payments requires a credit balance in che 'Stock option
capital and reserves and surplus 2s a part of
heading' berween share
esheet under separate
shareholders fund. money not exceeding the issued
(ü) Share Share application
application moncy pending allorment: non-current. lt will be shown on this
shall be cassified as
ato the extent non-refundable
ace of balance sheet as share application money pending allotment.
 33. Quick ratio = Quick assets/Current liabilities = 1:1
Efect on Quick Ratio Reason
(i) Decrease As quick assets will decrease (by the amount of prepaid insurance premium
R10,000) with no change in current liabilities.
(it) Decrease |As current liabilities will increase with no change in quick assets.
(ü) No change |As neither quick assets nor current liabilities are changing.
(iv) No change |Since quick assets and current liabiliies are decreasing by che same amount and
che quick ratio is 1, it will remain the same i.e. 1 : 1.
OR
Net Profit before Interest & Tax
(i) Interest Coverage Ratio =
Interest on Long Term Debts
Net Profit before Interest and Tax = Net Profit before tax+ Interest on Long-term debts
- 3,51,000 + 13% of 3,00,000- 3,51,000 + 39,000 3,90,000
3,90,000 - 10 times
Therefore, Interest Coverage Ratio
39,000
(ii) Inventory Turnover Ratio = Cost of Revenue from Operations
Average Inventory
Gross profit = 20%6 (1/5) on cost = 1/6 of revenue from operations = 1/6 x 6,00,000 =1,00,000
Cost of revenue from operations =Revenue from operations -Gross proit =6,00,000- 1,00,000 =5,00,000
5,00,000 5 tims
Therefore, Inventory Turnover Ratio
1,00,000
34. Cash Flow Statement of Pioneer Ltd. for the year ending 31.3.2022
Details OAmount ()
Prticnlas
ACTIVITIES
I. CASH FLOWS FROM OPERATING 2,70,000
Net Profit before Taaion and Extraordinary Items
Adjustments for non-cash and non-operating items:
15,000
+ Depreciation on equipment 30,000
+ Depreciation on furniture 5,000
+ Patents writen off
5,000
+ Loss on sale of cquipment 10,000
+ Iaterest on bank loan (10% of
1,00,000)
(i,00,000 x 8/100 x 6/12) (4,000)
( Inteest received on gov. bonds
3,31,000
changes
- Operating profit before working apital (5,000)
() Decrease in Trade Payables 2,000
+ Increase in Outstanding rent (80,000)
- Increse in Inventories
Receivables
(40,000)
- Increase in Trade 2,08,000
before tax
= Cash generated from Operations (30,000)
- Income Tx Paid 1,78,000
Activitics
A Net Cash from Operating
FROM INVESTING ACTIVITIES
II. CASH FLOWVS 30,000
Proceeds from Sale of Equipments (80,000)
Purchase of new Equipment (1,00,000)
Investments (89% govt. bonds)
Purchase of Non-Current 4,000
govt. bonds
Interest received on (1,46,000)
Inyerting Activities
B. Net Cash wed in ACTIVITIES
FROM FINANCING 2,00,000
IIL CASH FLOWS Capital
Proceeds from issue of Equity Share (50,000)
(50,000)
Repayment of bank loan
Payment of dividend (10,000)
bank loan
Payment of interest on 90,000
Financing Activities 1,22,000
C. Net Cash from (A+B+C)
CASH EOUNALENTS 2,05,000
INET INCREASE IN CASH AND
Equivalents in the beginning 3,27,000
Add: Cash and Cash
at the end year +
Cash and Cash Equivalent the year + Provision for tax made during the
Net profit during 2,70,000
before tax =
Working Notes: Net profit
=(4,20,000 -2,50,000)+50,000+50,000 C.
Dividend paid Equipments Wc
Amt. ()
DE. Amt. ( Particulans 15,000
Particulan 2,00,000 By Depreciation 30,000
Bank A/c- Sale of
equipment(Balfig) 5,000
To Balance b/d
purchased) 80,000 By Statement ofProfit & Loss
To Bank Ac (Equipment By
(Los on sale of equipmene) 2,30,000
By Balance dd 2,80,000
2,80,000