Model Paper 2 Accountancy - Model Paper 2

_________ is prepared at the time of dissolution.

The formula for calculating the sacrificing ratio is:

A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at ₹ 3,00,000 and C brings ₹ 30,000 as his share of goodwill in cash which is entirely credited to the Capital Account of A. New profit sharing ratio will be:

A, B and C are partners sharing profits in 3 : 2 : 1 ratio. C was guaranteed that he will get minimum of ₹ 20,000 as his share of profit every year. Firm's profit was ₹ 90,000. Any deficiency in C profit will be compensate by A and B in the ratio of 4 : 1. A's share of Profit after meeting deficiency will be:

Persons who start a company are called _________.

A Ltd. forfeited 600 Equity Shares of ₹ 10 each issued at a premium of 20% to Rajat who had applied for 720 Equity Shares, for non-payment of allotment money of ₹ 5 per equity share (including premium) and the first and final call of ₹ 5 per equity share. Out of these, 200 Equity Shares were reissued to Sanjay credited as fully paid for ₹ 9 per equity share. As per the terms of issue, company was to retain the excess application money to adjust against calls. Pass Journal entries to record forfeiture and reissue of shares.

Z Ltd purchased machinery from K Ltd, Z Ltd, paid K Ltd as follows
i. By issuing 5,000 equity shares of ₹ 10 each at a premium of 30%.
ii. By issuing 1,000, 8% debentures of ₹ 100 each at a discount of 10%.
iii. Balance by giving a promissory note of ₹ 48,000 payable after two months.
Pass necessary journal entries for the purchase of machinery and payment to K Ltd in the books of Z Ltd.

Yogesh and Raju are partners in firm sharing profits and losses in the ratio of 3 : 2. Their fixed capitals as on 1^st April, 2022, were ₹ 6,00,000 and ₹ 4,00,000 respectively.
Their partnership deed provided for the following :
i. Partners are to be allowed interest on their capitals @ 10% per annum.
ii. They are to be charged interest on drawings @ 4% per annum.
iii. Yogesh is entitled to a salary of ₹ 2,000 per month.
iv. Raju is entitled to a commission of 5% of the correct net profit of the firm before charging such commission.
v. Yogesh is entitled to rent of ₹ 3,000 per month for the use of his premises by the firm.
The net profit of the firm for the year ended 31^st March, 2023, before providing for any of the above clauses was ₹ 4,00,000. Both partners withdrew ₹ 5,000 at the beginning of every month for the entire year.
You are required to prepare a Profit and Loss Appropriation Account for the year ended 31^st March, 2023.

Gaurav, Saurabh and Vaibhav were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. They decided to dissolve the firm on 31^st March, 2018. After transferring Sundry assets (other than cash in hand and cash at Bank) and third party liabilities to realisation account, the assets were realized and liabilities were paid off as follows:
i. A machinery with a book value of ₹ 6,00,000 was taken over by Gaurav at 50% and stock worth ₹ 5,000 was taken over by a creditor of ₹ 9,000 in full settlement of his claim.
ii. Land and building (book value ₹ 3,00,000) was sold for ₹ 4,00,000 through a broker who charged 2% commission.
iii. The remaining creditors were paid ₹ 76,000 in full settlement of their claim and the remaining assets were taken over by Vaibhav for ₹ 17,000.
iv. Bank loan of ₹ 3,00,000 was paid along with interest of ₹ 21,000.
Pass necessary journal entries for the above transactions in the books of the firm.

The authorised capital of Suhas Ltd is Rs. 50,00,000 divided into 25,000 shares of Rs. 200 each. Out of these, the company issued 12,000 shares of Rs. 200 each at a premium of 10%. The amount per share was payable as follows
Rs. 60 on application
Rs. 60 on allotment (including premium)
Rs. 30 on first call and balance on final call.
Public applied for 11,000 shares. All the money was duly received.
Prepare an extract of balance sheet of Suhas Ltd as per Revised Schedule III, Part I of the Companies Act, 2013 disclosing the above information. Also prepare 'Notes to accounts' for the same.

Pass the necessary journal entries for the issue of debentures for the following transactions:
i. Anand Ltd. issued 800, 9% Debentures of ₹ 500 each at a premium of 20%, to the vendors for machinery purchased from them costing ₹ 4,80,000.
ii. Dawar Ltd. issued 5,000, 7% Debentures of ₹ 200 each at a premium of 5%, redeemable at a premium of 10%.
iii. Novelty Ltd. issued 1,000, 8% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10%.

Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2019, their balance sheet was as follows:

Balance Sheet of Gita, Radha & Garv as on 31st March, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	60,000	Cash	50,000
General Reserve	40,000	Stock	80,000
Capitals :		Debtors	40,000
Gita 3,00,000		Investments	30,000
Radha 2,00,000		Buildings	5,00,000
Garv 1,00,000	6,00,000
	7,00,000		7,00,000

Radha retired on the above date and it was agreed that:
a. Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Garv.
b. Stock was to be appreciated by 20%.
c. Buildings were found undervalued by ₹ 1,00,000.
d. Investments were sold for ₹ 34,000.
e. Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.
Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on Radha's retirement.

Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31^st March 2023 their Balance Sheet was as follows:

Balance Sheet of Akul, Bakul and Chandan as on 31-3-2023
Liabilities		Amount(₹)	Assets		Amount (₹)
Sundry Creditors		45,000	Cash at Bank		42,000
Employees Provident Fund		13,000	Debtors	60,000
General reserve		20,000	Less: Provision for doubtful debts	(2,000)	58,000
Capitals:			Stock		80,000
Akul	1,60,000		Furniture		90,000
Bakul	1,20,000		Plant and Machinery		1,80,000
Chandan	92,000	3,72,000
		4,50,000			4,50,000

Bakul retired on the above date and it was agreed that:
i. Plant and Machinery was undervalued by 10%.
ii. Provision for doubtful debts was to be increased to 15% on debtors.
iii. Furniture was to be decreased to ₹ 87,000.
iv. Goodwill of the firm was valued at ₹ 3,00,000 and Bakul's share was to be adjusted through the capital accounts of Akul and Chandan.
v. Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.
Prepare Revaluation account, Partners' Capital accounts and the Balance Sheet of the reconstituted firm.

Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On 1^st April, 2012, they admitted Nusrat as a partner in the firm. The balance sheet of Mohan and Mahesh on that date was as under

Balance Sheet
as at 1st April, 2012
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Creditors		2,10,000	Cash in Hand	1,40,000
Workmen's Compensation Fund		2,50,000	Debtors	1,60,000
General Reserve		1,60,000	Stock	1,20,000
Capital A/cs			Machinery	1,00,000
Mohan	1,00,000		Building	2,80,000
Mahesh	80,000	1,80,000
		8,00,000		8,00,000

It was agreed that
i. The value of building and stock be appreciated to Rs 3,80,000 and Rs 1,60,000 respectively.
ii. The liabilities of workmen's compensation fund was determined at Rs 2,30,000.
iii. Nusrat brought in her share of goodwill Rs 1,00,000 in cash.
iv. Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
v. The future profit sharing ratio will be Mohan 2/5th, Mahesh 2/5th, Nusrat 1/5th. Prepare revaluation account, partners' capital accounts and balance sheet of the new firm. Also, show clearly the calculation of capital brought by Nusrat.

Anmol India Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On Application	₹ 2 per share
On Allotment	₹ 5 per share (including premium)
On First and Final call	Balance

Applications for 1,50,000 shares were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Monu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Manav who was allotted 2,400 shares failed to pay the first and final call. Shares of both Monu and Manav were forfeited. The forfeited shares were reissued at ₹ 9 per share as fully paid-up. Pass necessary journal entries for the above transactions in the books of Anmol India Ltd.

Value of copyrights was Rs.68,000 in the year 31st March 2015 but after one year on 31st March 2016 value of copyrights was Rs. 1,00,000. How it will affect the cash flow statement?

Which of the following item is not added or deducted while preparing a cash flow statement?

The objectives of Cash Flow Statement are
A. Analysis of cash position
B. Short-term cash planning
C. Evaluation of liquidity
D. Comparison of Operating Performance

The ratio of Current Assets (₹ 10,00,000) to Current Liabilities (₹ 4,00,000) is 2.5 : 1. The accountant of the firm is interested in maintaining a Current Ratio of 1.8 : 1, by acquiring some Current Assets on Credit. Current asset acquired will be:

Under which heading the item bills discounted but not yet matured will be shown in the balance sheet of a company?

Working Capital ₹ 9,00,000; Total Debts (Liabilities) ₹ 19,50,000; Long-Term Debts ₹ 15,00,000. Calculate Current Ratio.

Name any two items that are shown under the head 'other current liabilities and any two items that are shown under the head 'other current assets' in the balance sheet of a company as per Schedule III of the Companies Act, 2013.

From the following Statement of Profit and Loss of PP Ltd. prepare a Common Size Statement of Profit and Loss for the year ended 31.3.2021 and 31.3.2022:

Particulars	2021-2022 (₹)	2020-2021(₹)
Revenue from operations	20,00,000	10,00,000
Other Income	5,00,000	5,00,000
Expenses	10,00,000	7,00,000
Tax Rate 50%

From the following Statement of Profit and Loss, prepare Common-size Statement of Profit and Loss and give comments:

	Particulars	Note No.	31st March, 2023 (₹)	31st March, 2022 (₹)
I.	Income
	Revenue from Operations (Net Sales)		12,50,000	10,00,000
II.	Expenses
	Purchases of Stock-in-Trade		8,70,000	7,20,000
	Change in Inventories of Stock- in-Trade		(20,000)	30,000
	Depreciation and Amortisation Expenses		30,000	20,000
	Other Expenses		50,000	30,000
	Total		9,30,000	8,00,000
III.	Profit before Tax (I - II)		3,20,000	2,00,000
IV.	Income Tax		96,000	60,000
V.	Profit after Tax (III - IV)		2,24,000	1,40,000

Calculate Cash Flow from Operating Activities from the following information:

Particulars	Opening Balances (₹)	Closing Balances (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	30,000	35,000
General Reserve	10,000	15,000
Provision for Depreciation on Machinery	30,000	35,000
Outstanding Expenses	5,000	3,000
Goodwill	20,000	10,000
Trade Receivables (Sundry Debtors)	40,000	35,000

Machinery costing ₹ 20,000 having book value of ₹ 14,000 was sold for ₹ 18,000 during the year.

Assertion (A): The security premium amount can be used to issue partially paid up bonus shares.
Reason (R): According to Section 52(2) of the Companies Act, 2013, the amount of Securities Premium Reserve can be used only for some specific purposes.

Assertion (A): Partnership firm is an organisation where seven or more persons carry on some business activity on the basis of agreement among them.
Reason (R): The profit or loss arising from the partnership business is shared by the partners in the agreed ratio.