Class 12 Sample Paper 2023 Accountancy (Hindi Medium)

Class 12 Sample Paper 2023 Accountancy

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अभ्यासप्रश्न पत्र
Practice Paper
कक्षा – XII
Class – XII
ले खाांकन(कोड:055)
ACCOUNTANCY (Code: 055)
FINAL EXAMINATION (2022-23)
समय: 3 घांटे अशधकतम अांक: 80
Time: 3 Hours Maximum Marks: 80
सामान्य निदेश:
1. इस प्रश्न पत्र में 34 प्रश्न हैं। सभी प्रश्न अनिवायय हैं।
2. यह प्रश्न पत्र दो भागों में नवभानजत है, भाग ए और बी।
3. भाग - ए साझेदारी और कं पिी खाते है और भाग - बी नवत्तीय नववरणों का नवश्लेषण है
4. प्रश्न 1 से 16 और 27 से 30 तक प्रत्येक के निए 1 अंक है।
5. प्रश्न 17 से 20, 31 और 32 प्रत्येक के निए 3 अंक हैं।
6. 21, 22 और 33 में से प्रत्येक प्रश्न के निए 4 अंक हैं
7. 23 से 26 और 34 के प्रत्येक प्रश्न में 6 अंक हैं
8. समग्र रूप से कोई नवकल्प िहीं है। तथानप, एक अंक के 7 प्रश्नों में, तीि अंकों के 2 प्रश्नों में, चार अंकों के 1 प्रश्न में
और छह अंकों के 2 प्रश्नों में आंतररक नवकल्प प्रदाि ककया गया है।
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Part - A is Partnership and Company Accounts and Part-B is Analysis of Financial Statements
4. Question 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions 17 to 20, 31and 32 carries 3 marks each.
6. Questions from 21 ,22 and 33 carries 4 marks each
7. Questions from 23 to 26 and 34 carries 6 marks each

8. There is no overall choice. However, an internal choice has been provided in 7 questions of
one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six
marks.
PART A

(Accounting for Partnership Firms and Companies)

S.No. Question Marks
Part A :- Accounting for Partnership Firms and Companies
1. N and R were partners sharing profits and losses in the ratio of 3:1. S was 1
admitted for 1/5th share in the profits. S was unable to bring her share of
goodwill premium in cash. The journal entry recorded for goodwill premium is
given below:
Date Particular LF Debit Credit
(₹) (₹)
S’s Current A/c. Dr. 72,000
To N’s Capital A/c. 24,000
To R’s Capital A/c 48,000
(Being entry for goodwill treatment passed)

The new profit-sharing ratio of N, R and S will be:
a) 41: 7: 12
b) 13:12: 10
c) 3:1: 1
d) 5:3: 2

2. Assertion (A):- Rent provided to partner is shown in Profit and Loss A/c. Reason 1
(R):- Rent provided to partner is charge against profits and is tobe provided at
fixed rate.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)

3. A share of ₹ 10 each, issued at ₹ 4 premium out of which ₹ 8 (including ₹ 2 1
premium) was called up and paid up. The uncalled Capital will be .
a) ₹ 7 per share b) ₹ 4 per share
c) ₹ 8 per share d) ₹ 3 per share
OR
While issuing type of Debentures, company doesn’t give any
undertaking for the conversion by issuing such debentures.
a) Zero Coupon Rate Debentures b) Non-Convertible Debentures
c) Secured Debentures d) Non-Redeemable Debentures

4. S, A and D were partners in a firm sharing profits and lossesin the ratio of 5: 3: 1
2. With effect from 1st April 2022, they agreed to share future profits and
losses in the ratio of 2: 5: 3. Their Balance Sheet showed a debit balance of ₹
25,000 in the Profit and Loss Account and a balance of ₹ 20,000 in the
Investment Fluctuation Fund. The market value of an investment is ₹15,000
against the book value of ₹25,000. Partners have decided, not to show revised
valued in the balance sheet and to pass an adjusting entry for it.
Which of the following is the correct treatment of the above?
a) S’s Capital A/c. Dr. 4,500
To A’s Capital A/c. 3,000
To D’s Capital A/c 1,500
b) A’s Capital A/c. Dr. 2,500
To S’s Capital A/c. 1,000
To D’s Capital A/c. 1,500
c) A’s Capital A/c. Dr. 1,000
D’s Capital A/c. Dr. 500
To S’s Capital A/c 1,500
d) A’s Capital A/c. Dr. 3,000
D’s Capital A/c. Dr. 1,500
To S’s Capital A/c 4,500

Or

Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3

with the capitals of ₹ 10,00,000 and ₹ 12,00,000 respectively. On 1st January
2022, Sohan and Mohan granted loans of ₹ 40,000 and ₹ 20,000 respectively to

the firm. Determine the amount of loss to be borne by each partner for the
year ended 31st March 2022 if the loss before interest for the year amounted
to ₹ 5,000.
a) Share of Loss Sohan –₹ 2,500 Mohan – ₹ 2,500
b) Share of Loss Sohan –₹ 2,000 Mohan – ₹ 3,000
c) Share of Loss Sohan –₹ 1,640 Mohan – ₹ 2,460
d) Share of Loss Sohan –₹ 2,360 Mohan – ₹ 3,540

5. V and M are partners sharing profits and losses in the ratio of 3:2. The firm 1
maintains fluctuating capital accounts and the balance of the same as on 31st
March 2022 is ₹ 8,00,000 and ₹ 9,30,000 for V and M respectively. Drawings
during the year were ₹ 1,30,000 each. As per the partnership Deed, Interest on
capital @ 10% p.a. on Opening Capital has been allowed to them. Calculate the
opening capital of V given that the divisible profits during the year 2021-22
was ₹ 4,50,000.
a) ₹ 6,60,000
b) ₹ 8,80,000
c) ₹ 8,00,000
d) ₹ 6,00,000

6. S Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of premium 1
and to be redeemed at 10% premium. At the time of writing off Loss on Issue of
Debentures, Statement of Profit and Loss was debited with ₹ 4,00,000. At what
rate of premium, these debentures were issued?
a) 10% b) 2%
c) 6% d) 4%

Or

D Ltd. issued 80,000, 10% Debentures of ₹ 100 each at certain rate of discount
and were to be redeemed at 20% premium. Existing balance of Securities
Premium before issuing of these debentures was ₹ 25,00,000 and after writing
off Loss on Issue of Debentures, the balance in Securities Premium was ₹
1,00,000. At what rate of discount, these debentures were issued?
a) 10% b) 5%
c) 25% d) 15%

7. A Ltd, issued a prospectus inviting applications for 24,000 shares of ₹10 each 1
payable ₹3 on application, ₹ 5 on allotment and balance on call. Public had
applied for certain number of shares and application money was received.
Which of the following application money, if received restricts the company to
proceed with the allotment of shares, as per SEBI guidelines?
a) ₹ 72,000 b) ₹ 90,000
c) ₹ 60,000 d) ₹ 64,800

8. A, B and C are partners in a firm with capital balances of ₹ 1
25,000, ₹ 35,000 and ₹ 40,000 respectively on 31st March, 2022. A decides

to retire from the firm on 31st March, 2022. With the help of the information
provided, calculate the amount to be paid to A on his retirement. There
existed a general reserve of ₹ 3,750 in the balance sheet on that date.
The goodwill of the firm was valued at ₹ 15,000.
Gain on revaluation was ₹12,000.
a) ₹ 44,250 b) ₹ 45,250
c) ₹ 32,688 d) ₹ 35,250

Or

A, B and C are partners. A‘s capital is ₹ 1,50,000 and B‘s capital is ₹ 50,000. C
has not invested any amount as capital but he alone manages the whole
business. C wants 15,000 p.a. as salary, though the deed is silent. Firm earned a
profit of ₹75,000. How much will each partner receives as an appropriation of
profits?
a) A ₹ 30,000; B ₹ 30,000; C ₹ 15,000
b) A ₹ 45,000; B ₹ 15,000; C ₹ 15,000
c) A ₹ 20,000; B ₹ 20,000 and C ₹ 35,000
d) A ₹ 25,000; B ₹ 25,000 and C ₹ 25,000

Read the following hypothetical situation, Answer Question No. 9 and 10

P and R are partners in a clay toys making firm. Their capitals were ₹ 15,00,000
and ₹ 30,00,000 respectively. The firm allowed P to get a commission of 10%
on the net profit before charging any commission and R to get a commission of
10% on the net profit after charging all commission. Following is the Profit and
Loss Appropriation Account for the year ended 31st March 2022.
Dr. Profit and Loss Appropriation Account for the year ended 31st March
2022 Cr.
Particulars Amount Particulars Amount (₹)
(₹)
To P’s Capital A/c By Profit and Loss ……………
(Commission) 1,32,000 a/c
( ------ x10/100)
To R’s Capital A/c -----------
(Commission)
To Profit share transferred
to :-
P’s Capital A/c -----------
R’s Capital A/c ------------
========= ==========

9. R’s commission will be:- 1
a) ₹ 1,20,000 b) ₹ 1,32,000

c) ₹ 1,08,000 d) ₹ 1,09,320
10. P’s share of profit will be :- 1
a) ₹ 5,40,000 b) ₹ 4,32,000
c) ₹ 6,48,000 d) ₹ 4,80,000

11. Choose the correct sequence of the following transactions in context of 1
Division of Profits.
(i) Guarantee by Firm to Partners
(ii) Guarantee by Partners to Firm
(iii) Transfer of Profits to Profit and Loss Appropriation Account
(iv) Guarantee by Partner to Partner
a) (i); (iii) ; (iv) ; (ii) b) (iii); (i) ; (ii) ; (iv)
c) (iii) ; (ii) ; (i); (iv) d) (ii); (iii); (iv); (i)

12. If 20,000 shares of ₹10 each were forfeited for non-payment of final call money 1
of ₹ 3 per share and only 14,000 shares were re-issued @ ₹ 11 per share as
fully paid up, then what is the amount of maximum possible discount that
company can allow at the time of re-issue of the remaining 6,000 shares?
a) ₹ 56,000 b) ₹ 42,000
c) ₹ 18,000 d) ₹ 32,000

13. As per Companies Act 2013, Securities Premium Balance cannot be utilised 1
forwhich of the following purpose?
a) Issuing fully paid-up b) Providing for Premium payable
bonus shares. on issue of Debentures.

c) Writing off preliminary d) Buy Back of shares
Expenditures

14. G and J are partners sharing profits in the ratio of 2:1. They admit S for 1/5th 1
share in future profits. On the date of admission, G’s capital was ₹ 2,04,000 and
J’s capital was ₹ 1,46,000. S brings ₹ 50,000 as her share of goodwill and she
agrees to contribute proportionate capital of the new firm. How much capital
will be brought by S?
a) ₹ 87,500
b) ₹ 75,000
c) ₹ 1,00,000
d) ₹ 80,000

15. G and O are partners. G draws a fixed amount at the beginning of every month. 1
Interest on drawings is charged @8% p.a. At the end of the year interest on G's
drawings amounts to ₹ 7,800. Monthly drawings of G were:

a) ₹ 24,000

b) ₹ 1,80,000
c) ₹ 21,000
d) ₹ 15,000

Or

G, a partner withdrew ₹ 15,000 in the beginning of each quarter and interest
on drawings was calculated as ₹ 4,500 at the end of accounting year 31 March
2022. What is the rate of interest on drawings charged?
a) 6% p.a.
b) 8% p.a.
c) 10% p.a.
d) 12% p.a.

16. At the time of dissolution of a firm, Creditors are ₹ 2,80,000; Firm’s Capital is ₹ 1
4,80,000; Cash Balance is ₹ 40,000. Other assets realised ₹ 6,00,000. Gain/Loss
in the realisation account will be:
a) ₹ 30,000 (Gain)
b) ₹ 40,000 (Gain)
c) ₹ 40,000 (Loss)
d) ₹ 30,000 (Loss)

17. N, D and S were partners in a firm sharing profits and losses in the 3:4:3. Books 3
were closed on 31st March every year. S died on 1st February, 2022. As per the
partnership deed S's executors are entitled to her share of profit till the date of
death on the basis of Sales turnover. Sales for the year ended 31st March 2021
was ₹ 40,00,000 and profit for the same year was ₹ 4,80,000. Sales show a
positive trend of 20% and percentage of profit earning is reduced by 2%.
Journalise the transaction along with the working notes.

18. A, B and C entered into partnership on 1st July, 2021 to share profits and losses 3
in the ratio of 3:2:1. A guaranteed that Rohan’s share of profit after charging
interest on capital @ 6% p.a would not be less than ₹ 72,000 p.a. Their fixed
capital balances are: ₹ 4,00,000, ₹ 2,00,000 and ₹ 2,00,000 respectively. Profit
for the year ended 31st March, 2022 was
₹2,76,000.
Prepare Profit and Loss Appropriation A/c.

Or

A, M and S were partners sharing profits in the ratio 5:3:2. Their Capitals were
₹ 18,00,000; ₹ 24,00,000 and ₹ 33,00,000 as on April 01, 2021. As per
Partnership deed, Interest on Capitals were to be provided @ 10% p.a. For the

year ended March 31, 2022, Profits of ₹ 6,00,000 were distributed without
providing for Interest on Capitals.
Pass an adjustment entry and show the workings clearly.

19. A Ltd. issued 40,000, 9% Debentures of ₹ 100 each at 10% discount to M Ltd. 3
from whom Assets of ₹ 47,00,000 and Liabilities of ₹ 12,00,000 weretaken over.
Pass entries in the books of A Ltd. if these debentures were to be redeemed at
5% premium.

Or

R Ltd. took over running business of Mature Ltd. comprising of Assets of
₹ 90,00,000 and Liabilities of ₹ 12,80,000 for a purchase consideration of ₹
72,00,000. The amount was settled by bank draft of ₹ 3,00,000 and balance by
issuing 12% preference shares of ₹ 100 each at 15% premium. Pass entries in
the books of Random Ltd.

20. D, S and N are partners sharing profits and losses in the ratio of 3:2:1. With 3
effect from 1st April, 2022 they agree to share profits equally. For this purpose,
goodwill is to be valued at two year’s purchase of the average profit of last four
years which were as follows:
Year ending on 31st March,2019 ₹ 1,50,000 (Profit)
Year ending on 31st March,2020 ₹ 3,60,000 (Profit)
Year ending on 31st March,2021 ₹ 5,40,000 (Profit)
Year ending on 31st March,2022 ₹ 2,10,000 (Loss)

On 1st April, 2021 a Motor Bike costing ₹ 1,50,000 was purchased and debited
to travelling expenses account, on which depreciation is to be charged @ 20%
p.a by Straight Line Method. The firm also paid an annual insurance premium of
₹ 60,000 which had already been charged to Profit and Loss Account for all the
years.
Journalise the transaction along with the working notes.

21. A Ltd. was registered with an authorised Capital of ₹ 8,00,00,000 divided in 4
50,00,000 Equity Shares of ₹ 10 each and 3,00,000, 9% Preference Shares of ₹
100 each. The company issued 16,00,000 Equity Shares for public subscription
at 20% premium, payable ₹ 3 on application; ₹ 7 on allotment (including
premium) and balance on call. Public had applied for 20,00,000 shares. Excess
Applications were sent letters of regret.

All the dues on allotment received except on 30,000 shares held by S. Another
shareholder R paid his call dues along with allotment on his holding of 50,000
shares. You are required to prepare the Balance Sheet of the company as per
Schedule III of Companies Act, 2013, showing Share Capital balance and also
prepare Notes to Accounts.

22. C, D, I and P were partners in a firm. They had entered into partnership firm 4

last year only, through a verbal agreement. They contributed Capitals in the
firm and to meet other financial requirements, few
partners also provided loan to the firm. Within a year, their conflicts arisen due

to certain disagreements and they decided to dissolve the firm. The firm had
appointed Ms. K, who is a financial advisor and legal consultant, to carry on the
dissolution process. In the first instance, Ms. K had transferred various assets
and external liabilities to Realisation A/c. Due to her busy schedule; Ms. K has
delegated this assignment to you, being an intern in her firm. On the date of
dissolution, you have observed the following transactions:
(i) D’s Loan of ₹ 1,50,000 to the firm was settled by paying ₹ 1,26,000.
(ii) P’s Loan of ₹ 1,20,000 was settled by giving an unrecorded asset of
₹1,35,000.
(iii) Loan to C of ₹ 1,80,000 was settled by payment to C’s brotherloan of
the same amount.
(iv) I’s Loan of ₹ 2,40,000 to the firm and she took over Machinery of ₹
1,80,000 as part payment.

You are required to pass necessary entries for all the above mentioned
transactions.

23. O Ltd. was registered with an authorised capital of 4,00,000 equity shares of ₹ 6
100 each. The company offered 1,20,000 shares for public subscription at 25%
premium. The share was payable as ₹ 40 on application and balance on
allotment, with premium. Public had applied for 1,70,000 shares. Pro-rata
allotment was made in the ratio of 5:4 and remaining applications were sent
letters of regret.

Mr. A holding 12,000 shares failed to pay allotment money and his shares were
forfeited. Out of these 9,000 shares were re-issued at a discount of ₹ 20 per
share. Pass necessary entries in the books of the O Ltd.

Or

Pass entries for forfeiture and re-issue in both the following cases.
(a) V Ltd. forfeited 15,000 shares of Rahul, who had applied for 18,000
shares for non-payment of allotment money of ₹ 5 per share and first
and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by
him. Out of these 3,000 shares were re-issued @ ₹ 12 per share as fully
paid.

(b) R Ltd. forfeited 9,000 shares of ₹ 10 each (issued at ₹ 2 premium) for
non-payment of first call of ₹ 2 per share. Final call of ₹ 3 per share was
not yet made. Out of these 6,000 shares were re-issued at ₹ 10 per share
as fully paid.

24. X and Y were partners in the profit-sharing ratio of 3: 2. Their balance sheet as 6

at March 31, 2022 was as follows:

Balance Sheet as at March 31, 2022
Liabilities Amount (₹) Assets Amount (₹)
Creditors 28,000 Plant and Machinery 35,000
General Reserve 7,000 Buildings 49,000
Capital Accounts: Stock 10,500
X 59,500 Debtors 21,000
Y 56,000 1,15,500 (-)Provision 3,500 17,500
Cash in Hand 38,500
1,50,500 1,50,500
Z was admitted for 1/6th share on the following terms:
(i) Z will bring ₹ 28,000 as his share of capital, but was not able to bring any
amount to compensate the sacrificing partners.
(ii) Goodwill of the firm is valued at ₹. 42,000.
(iii) Plant and Machinery were found to be undervalued by ₹ 7,000 Building
was to brought up to ₹ 54,500.
(iv) All debtors are good.
(v) Capitals of X and Y will be adjusted on the basis of Z’s share and
adjustments will be done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.

Or

P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1
respectively. On March 31st, 2022, the balance sheet of the firm stood as
follows:
Balance Sheet
Liabilities Amount (₹) Assets Amount (₹)
Creditors 13,000 Cash 4,700
Bills Payable 590 Debtors 8,000
Capital Accounts: Stock 11,690
P 15,000 Buildings 23,000
Q 10,000 Profit and Loss Account 1,200
R 10,000 35,000
48,590 48,590

Q retired on the above-mentioned date on the following terms:
(i) Buildings to be appreciated by ₹7,000
(ii) A provision for doubtful debts to be made at 5 % on debtors.
(iii)Goodwill of the firm is valued at ₹ 18,000 and adjustment to be made by
raising and writing off the goodwill.
(iv) ₹ 2,800 was to be paid to Q immediately and the balance in his capital
account to be transferred to his loan account carrying interest as per the

agreement.
(v) Remaining partner decided to maintain equal capital balances, by
opening current account.

Prepare the revaluation account and partner’s capital accounts.
25. A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 6
2019. Entry for treatment of goodwill after his death was passed as follows:-

Date Particulars L.F Debit Credit
(₹) (₹)
B’s Capital A/c Dr. 90,000
C’s Capital A/c Dr. 60,000
To A’s Capital A/c 1,50,000
(Entry for goodwill treatment passed at the
time of death of partner)

A’s profit till date of death was estimated as ₹ 60,000, based on the average
profits of past three years. Final dues payable to A’s executors on the date of
death was calculated as ₹ 4,20,000 out of which ₹ 1,20,000 was paid
immediately by giving him Furniture valued for the same and balance was to be
paid in three equal annual instalments starting from 30 June, 2020, together
with interest rate as specified in Section 37 of Indian Partnership Act, 1932..
Pass necessary entry for profit share to be credited to A’s Capital and also
prepare A’s executors account till final settlement.
26. H Ltd. had share capital of ₹ 40,00,000 divided in shares of ₹ 100 each and 6
10,000, 8% Debentures of ₹ 100 each as part of capital employed.
The company need additional funds of ₹ 27,50,000 for which they decided to
issue debentures in such a way that they got required funds after issuing
debentures of the same class as earlier, at 10% premium. These debentures
were to be redeemed at 20% premium after 4 years. These debentures were
issued on 01 October, 2021.
You are required to

(a) Pass entries for issue of Debentures.
(b) Prepare Loss on Issue of Debentures Account assuming there was
existing balance of Securities Premium Account of ₹ 1,40,000.
(c) Pass entries for Interest on debentures on March 31, 2022 assuming
interest is payable on 30 September and 31 March every year.

Part B :- Analysis of Financial Statements
(Option – I)

27. Financial statements are prepared on certain basic assumptions (pre-requisites) 1
known as .
a) Provision of Companies Act,2013 b) Accounting Standards
c) Postulates d) Basis of Accounting

Or

Which one of the following is incorrect?

(i) Quick Ratio can be less than Current Ratio.
(ii) Low Inventory Turnover ratio is good for the organisation, except when
goods are bought in small lots or sold quickly at low margins to realise
cash.
(iii) Sum of Operating Ratio and Operating Profit ratio is always 100%.
a) All are correct. b) Only (i) and (iii) are correct.

c) Only (ii) and (iii) are d) Only (i) and (ii) are correct
correct.
28. From the following calculate Interest coverage ratio 1
Net profit after tax Rs 24,00,000; 10% debentures Rs 2,00,00,000; Tax Rate 40%

a) 1.2 times b) 3 times
c) 2 times d) 5 times

29. Insurance Claim received by A Co. Ltd. of ₹ 15,00,000 for Loss of Machinery 1
due to theft will be recorded in Cash Flow Statement in which of the following
manner?
a) Added under Operating b) Subtracted under Operating
Activities as Extraordinary Activities as Extraordinary Item
Item and Subtracted from and Added to Operating
Operating Activities also. Activities also.
c) Added under Operating d) Subtracted under Operating
Activities as Extraordinary Activities as Extraordinary Item
Item and Outflow under and Inflow under Investing
Investing Activity also. Activities also.

Or

A company issued 40,000; 9% Debentures of ₹ 100 each at 10% Discount. These
debentures were to be redeemed at 15% Premium at the end of 5 years. The
balance in Securities Premium Account as on the date of Issue was ₹ 7,40,000.
How this transaction will be reflected in Cash Flow Statement?

a) Added ₹ 2,60,000 under b) Added ₹ 10,00,000 under
Operating Activities as Loss on Operating Activities as Loss on
Issue of Debentures written Issue of Debentures written
off and Inflow of ₹ 40,00,000 off and Inflow of ₹ 36,00,000
under Financing Activities. under Financing Activities.
c) Added ₹ 2,60,000 under d) Added ₹ 10,00,000 under
Operating Activities as Loss on Operating Activities as Loss on
Issue of Debentures written Issue of Debentures written
off and Inflow of ₹ 36,00,000 off and Inflow of ₹ 40,00,000

under Financing Activities. under Financing Activities.

30. From the following information find out the inflow of Cash by sale of Office 1

equipment’s
31st March, 2022 31st March, 2021
Office Equipment ₹ 4,00,000 ₹ 6,00,000

Additional Information:
Depreciation for the year 2021-22 was Rs. 80,000
Purchase of Office Equipment purchased during the year Rs. 60,000
Part of Office Equipment sold at a profit of Rs. 24,000
a) ₹ 2,00,000 b) ₹ 2,04,000
c) ₹ 1,80,000 d) ₹ 2,24,000

31. Classify the following items under Major heads and Sub-head (if any) in the 3
Balance Sheet of a Company as per schedule III of the Companies Act 2013.
(i) Long term debts
(ii) Machinery
(iii) Provision for Gratuity
(iv) Rent paid in advance
(v) Capital Advances
(vi) Calls in Advances

32. Ratio analysis compares line-item data from a company's financial statements to reveal 3
insights regarding profitability, liquidity, operational efficiency, and solvency.

Do you agree?Explain.

33. A company earns Gross Profit of 25% on cost. For the year ended 31st March, 2017 its 4
Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000;
Reserves and Surplus ₹ 2,00,000; Long-term Loan ₹ 3,00,000 and Non-current Assets
were ₹ 10,00,000.
Compute the 'Working Capital Turnover Ratio' of the company.
.Or

Gross Profit Ratio of a company is 25%. State giving reason, which of the following
transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio.
(i) Purchases of Stock-in-Trade ₹50,000.
(ii) Purchases Return ₹15,000.
(iii) Cash Sale of Stock-in-Trade ₹40,000.
(iv) Stock-in-Trade costing ₹20,000 withdrawn for personal use.

34. Read the following hypothetical text and answer the given questions on the basis of the 6
same:
A, an alumnus of CBSE School, initiated her start up Smartpay, in 2015. Smartpay is a
service platform that processes payments via UPI and POS, and provides credit or
loans to their clients.. During the year 2021-22, Smartpay issued bonus shares in the
ratio of 5:1 by capitalising reserves. The profits of Smartpay in the year 2021-22 after
all appropriations was ₹ 3,75,000. This profit was arrived after taking into
consideration the following items: -

Particulars Amount (₹)
Interim Dividend paid during the year 45,000
Depreciation on Machinery 20,000
Loss of Machinery due to fire 10,000
Insurance claim received for Loss of Machinery 5,000
due to Fire
Interest on Non-Current Investments received 15,000
Tax Refund 10,000

Additional Information:
Particulars 31.3.22 (₹) 31.3. 21(₹)
Equity Share Capital 6,00,000 5,00,000
Securities Premium Account 1,50,000 2,50,000
General Reserve 75,000 75,000
Investment in Marketable Securities 75,000 50,000
Cash in hand 1,00,000 1,50,000
Machinery 1,50,000 1,00,000
10% Non-Current Investments 2,00,000 1,50,000
Bank Overdraft 1,25,000 1,00,000
Goodwill 15,000 40,000
Provision for Tax 40,000 30,000

(i) Goodwill purchased during the year was ₹ 10,000.
(ii) Proposed Dividend for the year ended March 31, 2021 was ₹ 80,000 and for
the year ended March 31,2022 was ₹ 1,00,000.

You are required to:
1. Calculate Net Profit before tax and extraordinary items.
2. Calculate Operating profit before working capital changes.
3. Calculate Cash flow from Investing activities.
4. Calculate Cash flow from Financing activities.
5. Calculate closing cash and cash equivalents.