SOP Code:PB-1/15 Series i-Succeed 1-25/15 Roll No.

Sampla (Ouestion Paper 01

Accountancy 12" (Code 055)
General Instructions
1. This question paper contains 34 questions. Allquestions are compulsory.
2. This question paper is divided into two parts-Part Aand Part B. Time:3 Hrs.
3. Part Aand Bare compulsory for all candidates.
4.Questions no. 1 to 16 and 27 to 30 carry 1 mark each. Max. Marks:80
5.Questions no. 17 to 20, 31 and 32 carries 3 marks each.
6.Questions no. 21, 22 and 33 carries 4marks each.
7.Questions no. 23 to 26 and 34 carries 6 marks each.
s. There is no overall choice. However, an internal choice has been provided in 7questions of 1mark,
2questions of 3 marks,1question of 4marks and 2questions of 6marks.

Part A Accounting for Partnership Firms and Companies

1. Tia, Pia and Sia are partners sharing profits 2. Ashish and Avnish are partners sharing profits
equally. Tia drew regularly ? 2,000 in the in the ratioof 10 : 2. Ankit is admitted and the
beginning of every month for the six months new profit sharing ratio is now 10:6:4. At the
ended 30th Septemnber, 2022. Calculate interest date of admission, general reserve appears in
on Tia's drawings @5% p.a. (1) the books at 48,000. Avnish's share in the
reserve will be 1)
(a) ? 100 (b) ? 600
(a) 8,000 (b) 40,000
(c)? 175 (d) ? 350
(c) 14,400 (d) None of these
Or A, Band C are partners sharing profits in the
Or With context to debit side of partners' current
ratio of 5:3:2. They have admittedZ into the account, pick the odd one out.
partnership for 1/6th share. Investment
fluctuation fund appears in the balance sheet (a) Drawings (b) Interest on drawings
at? 13,500and investment (cost) at 1,50,000 () Salary (d) None of these
Ifthe market value of investments is 1,45,000, 3. X' Limited purchased the assets fromn Y
investment fluctuation fund will be shown at Limited for 16,20,000.'X Limited issued 10%
******** in new balance sheet. debentures of 10 each at 10% discount
(a) 13,500 against the payment. The number of
(b) Nil debentures issued by XLimited will be (1)

(c) 5,000 (a) 16,200 (b) 18,000

(d) 6,500 (c) 1,80,000 (d) 1,62,000
 Suc

44
partners sharing
8. A,B, C and D were 1:2:3:4. Dretired
voting rightson its of
profits in the ratioacquired
4. ... shares confer (1) was by A and B
his share
holders. and goodwill was valued
equally. D's share of
(a) Equity journalentry passed for
(b) Redeemable preference at 48,000. In the D, the Bscapital will
(c) Participatory preference share of goodwill of (1)
be
(d) None of the above 24,000
(a) debited by
issued 50,000 shares of 20
5. Acompanypremium. (b) debited by
9,600
each at 5% 10 were payable ?48,000
balance on allotment. (c) credited by
on application and received on (d)credited by 9,600
What willbe the amount (1) sharing profits
allotment? 9. X, Yand Z are partners
ratio of 1/2: 1/8: 3/8.Z
(a)5,00,000 (b)? 4,75,000 and losses inthe of hisshare in
(c)R5,50,000 (d) 5,25,000 retire and surrenders 4/9 th in favour
appeared in favour of X and the remaining sharing
Or The following journal entry is of Y. What will be the new profit (1)
Chanda Ltd. ratio?
Bank A/c
Dr 2,00,000 (b) 1:3
(a) 1:1
Loss on Issue of (c) 4:5 (d) 2:1
Debentures A/c Dr 1,00,000
correct in
To 12% Debentures 2,50,000 10. Which of the following is not (1)
Redemption 50,000 relation to right of a partner?
To Premium on of the firm.
Debentures are issued at adiscount of
(i) Right to inspect the books
affairs of the
(b) 10% (c) 15% (d) 20% (i) Right to take part in the
(a) 5%
company.
6. On the retirement of a partner, reserve (iii) Right to share the profits/losses of the
should be transferred to the capital firm.
(1) of
accountof (iv) Right to receive salary at the end
(a) remaining partners (b) retiring partner each month.
(c) all the partners (d) None of these Codes
(a) (i) and (ii) (b) (i) and (iv)
7. X,Y and Z are partners in afirm sharing
profitsand losses in the ratio of 5: 3:2. (c) Only (iv) (d) Only (i)
As per partnership deed,Z is to geta 11. At the time of forfeiture of shares, the
SP-01 minimum amount of1,000 as profit. Net
share capital account is debited with (1)
profit for the year is 4,000. Calculate
deficiency (if any) to Z. (1) (a) face value
(a) 75 (b) 200 (b) called-up value
(c) ?150 (d) None of these (c) paid-up value
Or (d) issued value
Asha and Nisha are partners sharing Or A company invited application for
profits in the ratio of 2 : 1. Kashish was 1,00,000 shares and it received
admitted for 1/4th share of which 1/8 was applications for 1,50,000 shares.
gifted by Asha. The remaining was Application for 30,000 shares were
contributed by Nisha. Goodwill of the rejected and the remaining were allotted
firm was valued at 40,000. shares on pro rata basis.
How much amount for goodwill will be How many shares an applicant for 3,000
credited to Nishas capital account? shares be allotted?
(a) 2,500 (b) 5,000 (a) 2,500 (b) 3,600
(c) 20,000 (d) ? 40,000 (c) 4,500 (d) 2,000
Sample Question Paper 01 45

12. A and B are partners in a firm sharing (b) Current account can have a positive or a
profits and losses in the ratio of 3:2. An negative balance
extract of their balance sheet is as follows (c) Fluctuating capital account can have a
Liabilities Amt () Assets Amt () positive or negative balance
(d)All of the above
Investments 40,000
Ifhalf of the investments are taken 16. Aand Bare partners sharing profits and
over losses in the ratio of 2:1 with capitals of
by Aand Bin their profit sharing ratio at
25,000,what anmount of investments will 1,00,000 and 80,000 respectively.
be shown in revised balance sheet? (1) The interest on capital has been provided
(a) ?40,000 (b) 20,000 tothem at 8% instead of 10%. In the
(c) 10,000 (d) 80,000 rectifying adjustment entry, B willbe
(1)
13. Assertion (A) Forfeited shares may be
re-issued by the company at a discount (a) debited by ? 400
also. (b) credited by ? 400
(c) debited by 1,600
Reason (R)Amount of discount on
re-issue of forfeited shares cannot exceed (d) credited by ? 1,600
the amount forfeited on re-issued shares. 17. Ajay, Pranav and Vijay are in partnership
(1) sharing profits and losses in the ratio of
Alternatives 4:3:1.Pranav takes retirement on
(a) Both Assertion (A) and Reason (R) are 30th June,2023. The firm's profits for
true and Reason (R) is the correct various years were:2018(profits
explanation of Assertion (A) T3,24,444), 2019 (profits 80,000), 2020
(b) Both Assertion (A) and Reason (R) are
true, but Reason (R) is not the correct
(profits 10,000), 2021 (losses 10,000),
explanation of Assertion (A) 2022 (profits 40,000) and 2023 (profits
(c) Assertion (A)is true, but Reason (R) is
50,000).
false Ajay and Vijay decided to share future
(d) Assertion (A) is false, but Reason (R) is profits in the ratio of 3 : 2. Goodwill is to
true be valued on the basis of 2 years' purchase
14. At the time of retirement of Mahesh, of average profit of 4 completed years
value of stock is given 60,000 in the immediately preceding the year of
retirement of a partner.
balance sheet of the firm. Pass a journal
entry when found stock is undervalued The accountant passed the following SP-01
by 15,000. (1) journal entry to record Pranav's share of
(a) Revaluation A/c Dr 15,000 goodwill and missed some information.
To Stock A/c 15,000 Fill in the missing figures in the following
(b) Stock A/c Dr 15,000 journal entry and give working notes. (3)
To Revaluation A/c 15,000 JOURNAL
(c) Stock A/c Dr 45,000 Date Particulars LF Amt (Dr) Amt (Cr)
To Revaluation A/c 45,000 2023
(a) Revaluation A/c Dr 45,000 Jun 30 Ajay's Capital A/e Dr
To Stock A/c 45,000 Vijay's Capital A/e Dr
15. Which of the following statements is true To Pranav's Capital A/c
about fixed and fluctuating capital |(Being Pranav's share of
account? (1 goodwill credited to
Pranav and debited to
(a) Fixed capital account will always have a Ajay and Vijay in their
Credit balance gaining ratio)
46 iSucceed Accountancy Class 1)

18. Partners X, Y, Zand W

have apartnership firm.The capital contributions are: X{ 40,000,
Y 60,000, Z 80,000 and W20,000. The firm earns a profit of 1,00,000 in the current
financial year. PartnerXretires from the firm before the accounts are settled and the profit
sharing ratiowas based on capital contribution. The firm settled the accounts with the
retiring partner after three months. The profit earned during these 3 months was 25,000.
Whatshould be done about the retiring partner'sshare of the profit and their capital
contribution under section 37 of the Partnership Act? (3)
Or Josh and Krish are partners sharing profits and losses in the ratio of 3:1.Their capitals at the
end of the financiaí year 2021-2022 were ? 1,50,000 and ?75,000. During the year 2021-2022,
Josh'sdrawings were ? 20,000 and the drawings of Krish were ?5,000.
Profit before charging interest on capital for the year was ?16,000 which was duly credited to
their accounts. Krish had brought additionalcapital of 16,000 on 1st October, 2021.
Calculate interest on capital ® 12% per annum for the year 2021-2022.
19. ALtd.makes an issue of 10,000 shares of ? 100 each, payable as follows
On First Call 725 On Final Call 25
On Application and Allotment 50
Ashareholder holding 400 shares did not pay the second call and the shares are duly
forfeited, 300 shares are re-issued as fully paid at 80 per share. Show how share capital will
be presented in balance sheet of the company. (3)
X Ltd. purchased assets of Y Ltd. as follows
Plant and machinery of 2,00,000 at 1,80,000; land and building of 3,00,000 at 4,20,000 for
purchase consideration of 5,50,000 and paid 1,00,000 in cash and remaining by issue of 8%
debentures of ? 100 each ata premium of 20%. Pass necessary journal entries in the books of X.
20. Raj and Motiwere partners in a firm sharing profits in the ratio of 7:5. Their fixed capitals
were Raj 1,00,000 and Moti-70,000. The partnership deed provides for the following
(i) Interest on capital @12% p.a.
(ii) Raj's salary 600 per month and Moti's salary ?6,000 per annum.
The profit for the year ended 31st March, 2023 was 50,400 which was distributed equally
without providing for the above. Pass an adjustment entry. (3)

21. Savita Ltd. had 20,00,000, 10% debentures outstanding as on 1st April, 2022. During the
year, company took a loan of ? 4,00,000 for 5 years from Bank of Punjab for which the
company placed with the bank, debentures for ? 5,00,000 as collateral security. Show how
SP-01 the debentures and bank loan will appear in the company's balance sheet. (4
22. A, Band C were partnersina firm sharing profitsand losses in the ratio of 2:2:1. Their
balance sheet as on 31st March, 2023 was as follows
Balance Sheet
as at 31st March, 2023
Liabilities Amt () Assets Amt ()
Capitals A/cs Plant and Machine 5,00,000
A 3,00,000 Stock 1,00,000
B 2,00,000 |Sundry Debtors 60,000
1,00,000 6,00,000Cash at Bank 40,000
General Reserve 50,000
Creditors 50,000
7,00,000 7,00,000

Adied on 31st July, 2023. According to deed, the executors of deceased partner are entitled to
(i) Balance in his capital account.
(ii) Salary @60,000p.a.
Sample Question Paper 01 47

(ii) Share of goodwill calculated on the basis of twice the average profits of past3 years.
(iv) His share of profits from the closure of last accounting year tilldate on the basis of last
year'sprofit less 10%.
(v) Awithdrew ? 20,000 for personal use.
Profit for last 3years were 1,00,000, 1,50,000 and ?2,00,000respectively.
Prepare A'scapital account to be rendered to his executors. (4)

23. 'XYZ Ltd.' issued 25,000, 10% debentures of 100 each at 10% premium to the public on Ist
April, 2022,which are redeemable after 5 years of issue at a premium of 20%. Pass journal
entry for the issue of debentures, for writing-off 'loss on issue of debentures' in the same year
of issue and prepare 'loss on issue of debenture account' also. 16)

24. Ritu, Mitu and Shitu are partners with profit sharing ratio of 2:2 :1. Their balance sheet is
given below
Balance Sheet
as at 31st December, 2022
Liabilities Amt () Assets Amt ()
Creditors 1,00,000 Bank 60,000
Bills Payable 70,000 Debtors 52,000
Reserve Fund
40,000(-) Provision for Doubtful Debts (2,000) 50,000
Workmen Compensation Fund 30,000 Building 2,00,000
Profit and Loss 20,000 Furniture 1,30,000
Provident Fund 20,000 Investment 30,000
Capital A/cs Prepaid Insurance 10,000
Ritu 80,000 Goodwill 20,000
Mitu 80,000
Shitu 60,000 2,20,000
5,00,000 5,00,000

Additional Information
(i) Chintu comes as a new partner and bringst 66,750 as capital and his share of goodwillin
cash.
(iü) New ratio is 3:3:2:2. (iii) Goodwill of the firm is 50,000.
(iv) Prepaid insurance is no more required. SP-01
(v) Provision for doubtful debts is to be increased to 5,000.
(vi) Investment is valued at ?20,000 and is taken over by Ritu.
(vii) Furniture valued at 1,00,000. (vii) Building valued at 120%.
Prepare revaluation and partners' capital account. (6)

Or Manish, Nirjhar and Kshitij are partners with ratio of 5:3:2.

Balance Sheet
as at ...,
Liabilities Amt () Assets Amt ()
Creditors 1,00,000 Cash in Hand 40,000
Expenses Owing 20,000 Debtors 60,000
Reserve Fund 30,000 Building 1,00,000
Workmen Compensation Fund 10,000 Bills Receivable 40,000
 48 i Succeed Accountancy Class 1D

Liabilities Amt () Assets Amt (?)

Captal AVes Goodwill
20,000
Manish 60,000 Profit and Loss 30,000
Nirhar 60,000 Patents 30,000
Kshitij 40,000 1,60,000
3,20,000 3,20,000
Balance Sheet Extract of Namnita Ltd.
Additional Information
as at 3lst March, 2024
() Manish takes retirement. Particulars
|Note 31st March, 31st March.
(ii) New ratio of Nirjhar and Kshitij is No. 2023 (?) 2024 (* )
1:1and goodwill of the firm is I. EQUITY AND
valued at 60,000. LIABILITIES
1. Shareholders'
(iii) Expenses owing increased by 10,000. Funds
(iv) Creditors increased to 1,05,000. (i) Share Capital 1 31,00,000 35,50,000
(v) 10,000 bills receivable dishonoured (ii) Reserves and
and are not recoverable. Surplus 2 13,00,000 16,00,000
(vi) Patents are now value less. Notes to Accounts for the year ending 31st March, 2023
Particulars Amt ()
(vii) 20,000 unrecorded investment
brought into books. 1. Share Capital
Authorised Share Capital
(viii) ? 10,000 paid to Manish in cash and 5,00,000 Equity Shares of 10 each 50,00,000
balance is transferred to his loan
Issued Share Capital
account. 3,00,000 Equity Shares of 10 each 30,00,000
Prepare revaluation and partners' capital Subscribed Share Capital
account.
Called-up and Fully Paid 28,00,000
25. Pass the necessary journal entries for the Called-up but not Fully Paid 2,00,000
following transactions on dissolution of Forfeited Shares Account 1,00,000
the firm of Arjun and Vivek after various 31,00,000
assets (other than cash) and outside
liabilities were transferred to realisation 2. Reserves and Surplus
account General Reserve 8,00,000

(i) Arjun paid creditors 18,500 in full Surplus in Profit and Loss 5,00,000
13,00,000
SP-O1 settlement of their claim of ? 20,000.
(ii) Vivek agreed to pay his wife's loan of Notes to Accounts for the year ending 31st March, 2024
770,000. Particulars Amt()
(iü) The firm had unrecorded investment 1. Share Capital
of 2,00,000 which were sold at a loss
Authorised Share Capital
of 20%. 50,00,000
5,00,000 Equity Shares of 10 each
(iv) Reema, a debtor whose account for Issued Share Capital
7 2,000 was written-off as a bad debt
3,50,000 Equity Shares of 10 each 35,00,000
in the previous year, paid 70% of the
amount. Subscribed Share Capital
Called-up and Fully Paid 34,00,000
(v) The firm had stock of 1,00,000. 1,00,000
Vivek took over the stock at a Called-up but not Fully Paid
Forfeited Shares Account 50,000
discount of 10%.
35,50,000
(vi) Expenses of realisation 400 were
paid by Vivek. (6) 2. Reserves and Surplus
General Reserve 9,00,000
26. Answer the questions based on the extract Surplus in Profit and Loss 7,00,000
of the balance sheet given below (6) 16,00,000
Sample Question Paper 01 49

() How much share capital wasreissued (a) Increase 6,000

from forfeited shares during the year? (b)Decrease 6,000
(a) 50,000 (b) 1,00,000 (c) Increase 6,00,000
(c) 1,50,000 (d) 2,50,000 (d) Increase 34,00,000
(ii) Calculate the total increase in issued
share capital from 31st March, 2023 to Or Jatin Ltd. has been registered with arn
31st March, 2024. authorised capital of 2,00,000 divided
(a) 5,00,000 into 2,000 shares of? 100 each of which
(b) 10,00,000
(c) 5,50,000 (d) 35,00,000
1,000 shares were offered for public
(iii) What could be the reason for this subscription at a premium of ?5 per
increase as indicated in question (ii)? share payable as under
On application 10;on allotment 25
(a) Issuing new shares (including premium); on first call ?40
(b) To raise additional funds and on final call ? 30.
(c) To replace forfeited shares
Applications were received for 1,800
(d) All of the above
(iv) What is the total subscribed capital of
shares of which applications for 300
shares were rejected outright, the rest
the year ending 2024? of the applications were allotted 1,000
(a) 34,00,000 (b) 1,00,000 shares on pro-rata basis.
(c) 35,00,000 (d) ? 35,50,000 Excess application money was transferred
(v) What will be the number of issued to allotment. Allthe money were duly
shares,as on 1st April, 2024? received except from Sachin, a holder of
(a) 40,000 (b) 50,000 200shares, who failed to pay allotment
(c) 5,00,000 and first call money.
(d) 5,50,000
(vi) What is the change in the number of His shares were later on forfeited and
shares of total called-up and fully re-issued to Shyam at 60 per share, as
paid capital from 31st March, 2023 to 70paid-up. Final call has not been made.
31st March, 2024? Record necessary journal entries.

Part B Financial Statements Analysis

27. Which of the following statements is not (a) 6,00,000 o (b) 5,00,000
correct about ratio analysis? (1) (c) 6,25,000 (d) 6,50,000
(a) Ratio analysis is useful in financial 29. Statement I Dividend paid is always SP-01
analysis shown as operating activity.
(b) Ratio analysis is helpful in communication Statement II Depreciation and
and coordination
amortisation, being non-cash expenses,
(c) Ratio analysis is not helpful in identifying are deducted from net profit before tax
weak spots of the business and extraordinary items. (1)
(d) Ratio analysis is helpful in financial
Alternatives
planning and forecasting (a) Both the statements are true
Or Recipes or formulae are shown under (b) Both the statements are false
which sub-head? (c) Statement I is true and Statement II false
(b) Inventories (d) Statement II is true and Statement I is false
(a) Intangible assets
(c) Trade receivables (d) Tangible assets 30. Which of the following is not an investing
cash flow? (1)
28. Gross profit is 20% of the net sales. (a) Purchase of marketable securities for cash
Calculate the value of net revenue from
operation, if cost of revenue from (b) Sale of land for cash
(c) Sale of shares (held as investment)
operation5,00,000. (1)
(d) Purchase of equipment for cash
 50 iSuceeed Accountancy Class 1)
Or

Which of the following is/are not example(s) of cash flows from investing activity?
1. Cash revenue from operations - 50,000
II. Commission received - 30,000
II. Payment of cash for purchase of fixed assets - 5,00,000
IV. Dividend paid -5,000
Codes
(a) Only I (b) II and I|| (c) I, IIand IV (d) Only II
31. XYZ Ltd. is in the process of preparing its balance sheet as per Schedule I, Part I of the
Companies Act, 2013 and provides its true and fair view of the financial position. (3)

(i) Under what head andsub-head willthe company show stores and spares and loose tools
in its balance sheet?
(ii) What is the accounting treatment of stores and spares and loose tools, when the company
willcalculate its inventory turnover ratio?
(ii) What is the objective of this analysis?
32. (i) From the following information, calculate inventory turnover ratio.
Net sales 20,000; average inventory 2,750; gross loss on sales is 10%.
(ii) From the following information, calculate inventory turnover ratio.
Totalsales 11,000; sales return 1,000,gross profit 2,500; closing inventory 3,000;
excessof closing inventory over opening inventory ? 1,00. (3)

33. Prepare common size balance sheet fromn the following balance sheet of MLtd. as at 31st
March 2023. (4)

Balance Sheet
as at 31st March, 2023

Particulars Note31st Match,31st March,

No. 2023 () 2022 (3)
I. EQUITY AND LIABILITIES
1, Shareholders' Funds
Share Capital 30,50,000 20,00,000
2. Non-current Liabilities
8P-01 Long-term Borrowings 2,80,000 6,00,000
3. Current Liabilities
Trade Payables 6,70,000 4,00,000
Total 40,00,000 30,00,000
II. ASSETS
1. Non-current Assets
i) Property, Plant & Equipment and Intangible Assets
(a) Property,Plant and Equipment 16,00,000 12,00,000
(b) Intangible Assets 2,00,000 3,00,000
2. Current Assets
(i) Inventories 8,00,000 3,00,000
(6i) Trade Receivables 12,00,000 10,00,000
(üii) Cash and Cash Equivalents 2,00,000 2,00,000
Total 40,00,000 30,00,000