Class: XII Max Marks: 80

Subject: Accountancy Duration: 3hrs

PERIODIC ASSESSMENT-4 (30%)
Section-A Q. No 1 to 20 consists of 1 mark internal choices provided
Section-B Q. No 21 to 26 consists of 3 mark internal choices provided
Section-C Q. No 27 to 29 consists of 4 mark internal choices provided
Section-D Q. No 30 to 34 consists of 6 mark internal choices provided
1.A company forfeited 400 shares of Rs 10 each, Rs 8 per share called up for non-payment of first call of Rs
2 per share. On forfeiture of these shares share capital will be debited with
(a) Rs 4,000 (b) Rs 800 (c) Rs 3,200 (d) Rs 2,000
2.Xyle Ltd. forfeited 700 shares of Rs 10 each issued at a premium of 10% for non-payment of allotment
money of Rs 5 per share (including premium) and first and final call of Rs 3 per share. On forfeiture of
these shares share forfeiture account will be credited with
(a) Rs 7,000 (b) Rs 1,400 (c) Rs 4,900 (d) Rs 2,100
3. That part of the authorised capital which is actually issued to the public for subscription is called
(a) Subscribed capital (b) Issued capital (c) Authorised capital (d) Reserve capital
4.a) Zinki Limited forfeited a share of Rs 100 issued at a premium of 20% for non-payment of first call of
Rs 30 per share and final call of Rs 10 per share. The minimum price at which this share can be reissued is :
(a) Rs 40 (b) Rs 60 (c) Rs 20 (d) Rs 10
OR
(b) Which of the following equations is correct :
(a) Cost of Revenue from Operations = Revenue from Operations + Gross Profit
(b) Cost of Revenue from Operations = Opening Inventory Net Purchases + Direct Expenses Closing
Inventory
(c) Cost of Revenue from Operations = Opening Inventory + Closing Inventory
(d) Cost of Revenue from Operations = Revenue from Operations Gross Profit
5. Which of the following transactions are shown under financing activities while preparing cash flow
statement :
(i) Issue of Equity Shares (ii) Cash Received from Debtors
(iii) Redemption of Debentures (iv) Cash Paid Against Trade Payables
Choose the correct option :
(a) (i) (b) (i) and (ii)
(c) (i) and (iii) (d) (i), (ii) and (iv)

6. Which of the following is not a profitability ratio

(a) Gross Profit Ratio (b) Return on Investment (c) Proprietary Ratio (d) Operating Ratio

7.Which of the following transactions would result in inflow of cash and cash equivalents :
(a) Furniture costing Rs 80,000 sold for Rs 75,000 (b) Issue of bonus shares Rs 5,00,000
(c) Payment to trade payables Rs 15,000 (d) Provided depreciation on fixed assets Rs 11,000
8. Which of the following transactions is not related to cash flows from investing activities :
(a) Purchase of marketable securities Rs 25,000 (b) Sale of land Rs 2,80,000
(c) Sale of investments Rs 3,00,000 (d) Purchase of equipment Rs 1,00,000
9.Capital to be called only in the event of winding up of the company. Such uncalled amount is called
(a)Authorized Capital (b) Issued Capital
(c) Uncalled Capital (d) Reserve Capital
 Or
It is to be noted that ‘minimum subscription’ of capital cannot be less than -------- of the issued amount
(A) 90 (B) 60
(C) 120 (D) All the above
10.Assertion (A) :Sale of property is operating activity for real estate company
Reason (R) :It is the principle revenue producing activity for real estate company
Choose the correct option from the following :
(A) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(C) Assertion (A) is correct, but Reason (R) is incorrect.
(D) Assertion (A) is incorrect, but Reason (R) is correct.

11. The Debt-Equity Ratio of a company is 3 : 2. Which of the following transactions will result in increase
in this ratio ?
(A) Purchase of goods on credit (B) Issue of Debentures
(C) Issue of Equity Shares (D) Cash received from Debtors
12.The Debt-Equity Ratio of a company is 2 : 1. Which of the following transactions will increase the Debt-
Equity Ratio ?
(a) Issue of shares Rs 1,00,000 (b) Issue of 9% debentures Rs 4,00,000
(c) Issue of bonus shares Rs 3,00,000 (d) Payment of creditors Rs 50,000
OR
During the year ended 31st March, 2022, Shradha Ltd. earned net profit of Rs 15,00,000 before interest and
tax. The company has a 10% long term debt of Rs 50,00,000. The tax rate is 40%. The Interest Coverage
Ratio of the company will be :
(a) 2 times (b) 3 times (c) 1·2 times (d) 1·5 times
13.An investment normally qualifies as cash equivalent only when it has a short maturity, of say, ________
from the date of acquisition.
(a) Three months or more (b) Six months or less (c) One year or less (d) Three months or less
Or
Which of the following is not a Solvency Ratio ?
(a) Return on Investment (b) Interest Coverage Ratio (c) Proprietary Ratio (d) Total Assets to Debt Ratio
14. A ratio of two variables from the balance sheet is known as -------
a) Profit & Loss b) Balance sheet c) Composite Ratio d) All the above
15. A ratio of two variables from the statement of profit and loss & Balance sheet is known as -------
a) Profit & Loss b) Balance sheet c) Composite Ratio d) All the above
16. It refers to the analysis of profits in relation to revenue from operations or funds (or assets) employed in
the business and the ratios calculated to meet this objective are known as
A) Profitability b)Activity c) solvency d) None of the above
17._____________ indicate the speed at which activities of the business are being performed.
(A) Liquidity ratios (B) Turnover ratios (C) Solvency ratios (D) Profitability ratios
18. Which of the following users is particularly interested in firms claim over short period of time
(A) Labour Unions (B) Trade Payables (C) Top Management (D) Finance Manager
19. A ratio of two variables from the statement of profit and loss is known as -------
a) Profit & Loss b) Balance sheet c) Composite Ratio d) All the above
20. ___________ ratios are calculated to determine the ability of the business to service its debt in the long
run.
(A) Liquidity (B) Turnover (C) Solvency (D) Profitability
21.Disha Ltd. forfeited 500 shares of Rs 100 each issued at 10% premium, Rs 90 called up, on which the
shareholders did not pay Rs 30 per share on allotment (including premium) and first call of Rs 20 per share.
Out of these, 300 shares were reissued for Rs 80 per share, fully paid up. Pass necessary journal entries for
forfeiture and reissue of shares.
22.Jindal and Company purchased a machine from High Life Machine Limited for Rs.3,80,000. As per
purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. What will
be the entries passed if the shares are issued :
(a) at par (b) at 20% premium
23.Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the
company as per Schedule III, Part I of the Companies Act, 2013 :
(a) Patents (b) Unpaid dividend (c) Prepaid Expenses
OR
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a company as
per Schedule III, Part I of the Companies Act, 2013 :
(a) Licenses and Franchise (b) Loans Repayable on Demand (c) Accrued Income
24.State the following into head and sub head which the following items are shown under balance sheet of
the company.
A. Finished Goods B. Bank Overdraft C. Prepaid Insurance
D. Debenture Redemption reserve E. Capital Advances F. Machinery
25. Calculate ‘Liquid Ratio’ from the following information:
Current liabilities = Rs. 50,000 Current assets = Rs. 80,000 Inventories = Rs. 20,000
Advance tax = Rs. 5,000 Prepaid expenses = Rs. 5,000
26. X Ltd., has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets
represented by inventories is Rs. 24,000, calculate current assets and current liabilities

27.Calculate Gross Profit Ratio from the following information :

Inventory Turnover Ratio 6 times Average Inventory Rs 4,00,000 Goods are sold at a profit of 25% on
cost
28. Sandesh Ltd. has an authorised capital of Rs 30,00,000 divided into equity shares of Rs 10 each. The
company invited applications for issuing 70,000 shares. Applications for 69,000 shares were received. All
calls were made and duly received except the first and final call of Rs 2 per share on 3,000 shares. These
shares were forfeited.
Present share capital in the balance and prepare notes to the accounts
(OR)
Pass necessary journal entries for the forfeiture and reissue of shares in the following cases :
 (i) BCG Limited forfeited 75 shares of Rs 10 each issued at a premium of Rs 4 per share for non-payment
of allotment money of Rs 8 per share (including premium). The first and final call of Rs 4 per share was not
made. The forfeited shares were reissued at Rs 15 per share fully paid.
(ii) Geetika Limited forfeited 1,200 shares of Rs 50 each issued at par for non-payment of final call of Rs 10
per share. Out of these, 900 shares were reissued at Rs 45 per share fully paid-up.

29. The Current Ratio of a company is 2 : 1. State giving reasons, which of the following transactions would
improve, reduce or not change the ratio :
(a) Purchased goods on credit Rs 40,000
(b) Sale of furniture of Rs 8,000 at a loss of Rs 2,000
(c) Cash received from trade receivables Rs 15,000
(d) Issued equity shares Rs 6,00,000
30. Lotus Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 4 per
share. The amount was payable as follows : On application Rs 5 per share and On allotment Rs 9 per share
(included premium). Applications were received for 1,40,000 shares and allotment was made to all
applicants on pro-rata basis. Money overpaid on applications was adjusted towards sums due on allotment.
Rajiv, who had applied for 1,400 shares, failed to pay the allotment money. His shares were forfeited. Later
on, these forfeited shares were reissued at Rs 9 per share as fully paid up. Pass necessary journal entries for
the above transactions in the books of Lotus Ltd.
31.Pawan Ltd. was registered with an authorised capital of Rs 10,00,000 divided into 1,00,000 equity shares
of Rs 10 each. The company offered to the public for subscription, 80,000 equity shares. The amount per
share was payable as follows : On application Rs 3, On allotment Rs 2 On first call Rs 3 and On second and
final call the balance The issue was fully subscribed and all amounts due were received except the first and
final call money on 2,000 shares allotted to Chavi. Her shares were forfeited. Pass Journal entries

32. From the following information, calculate Debt Equity Ratio, Total Assets to Debt Ratio, Proprietory
Ratio
Balance Sheet as at March 31, 2017
Particulars (Rs.)
1. Shareholders’ funds
a) Share capital 4,00,000
b) Reserves and surplus 1,00,000
2. Non-current Liabilities
Long-term borrowings 1,50,000
3. Current Liabilities 50,000
Total 7,00,000
1. Non-current Assets
a) Fixed assets 4,00,000
b) Non-current investments 1,00,000
2. Current Assets 2,00,000
Total 7,00,000
(OR)
A)Current Ratio is 3.5 : 1. Working Capital is Rs. 90,000. Calculate the amount of Current Assets and Current
Liabilities..
B)Shine Limited has a current ratio 4.5 : 1 and quick ratio 3 : 1; if the inventory is 36,000, calculate Current Liabilities
and Current Assets
33. Calculate Quick Ratio & Debt equity ratio
Particulars Rs.
Total Debt 8,00,000
Inventory 2,20,000
Long Term Debts 6,00,000
Working Capital 2,40,000
Share Holder funds 12,00,000

34.Tulip Ltd. invited applications for issuing 2,40,000 equity shares of Rs 10 each at a premium of Rs 4 per
share. The amount was payable as under : On application Rs 4 per share (including premium Rs 2) On
allotment Rs 4 per share On first and final call Rs 6 per share (including premium Rs 2) Applications for
3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application
money received with applications was adjusted towards sums due on allotment. All moneys were duly
received except from Rohini who had applied for 7,500 shares, and failed to pay allotment and first and final
call. Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-
arrears and Calls-in-advance account, wherever necessary.
OR
Pushkar Limited invited applications for 30,000 shares of Rs 100 each at 20% premium. The amount per
share was payable as under : On application Rs 40 (including Rs 10 premium) On allotment Rs 30
(including Rs 30 On second and final call Balance Applications were received for 40,000 shares and pro-rata
allotment was made to the applicants for 35,000 shares, the remaining applications being refused. Excess
application money was adjusted towards sums due on allotment. Yogesh, who applied for 700 shares, failed
to pay the allotment money and his shares were forfeited immediately after allotment. First call was made
thereafter and all the money due on first call was received. The second and final call was not made. Pass
necessary journal entries for the above transactions in the books of Pushkar Limited.