ISC Class 12 Sample Paper 2025 Accounts

isc
specimen paper
2025
ISC Study Material

ACCOUNTS
___________________________________________________________________
Maximum Marks: 80
Time Allowed: Three Hours
Reading Time: Additional 15 Minutes
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Instructions to Candidates
➢ You are allowed an additional 15 minutes for only reading the paper.
➢ You must NOT start writing during reading time.
➢ The question paper has 17 printed pages.
➢ The Question Paper is divided into three sections and has 18 questions in all.
➢ Section A is compulsory and has ten questions.
➢ You are required to attempt all questions either from Section B or Section C.
➢ Section B and Section C have four questions each.
➢ Internal choices have been provided in five questions in Section A and in
two questions in Section B and Section C.
➢ While attempting Multiple Choice Questions in Sections A, B and C, you are
required to write only ONE option as the answer.
➢ The intended marks for questions or parts of questions are given in the brackets [].
➢ All calculations should be shown clearly.
➢ All workings, including rough work, should be done on the same page as, and
adjacent to, the rest of the answer.
Instruction to Supervising Examiner
➢ Kindly read aloud the instructions given above to all the candidates present in
the examination hall.

ISC SPECIMEN QUESTION PAPER 2025
1

SECTION A (60 Marks)
Answer all questions.

Question 1
In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions
as instructed.
(i) The commission due to a partner is closed by: (Understanding) [1]
(a) Debiting it to Partner’s Capital A/c
(b) Crediting it to Partner’s Capital A/c
(c) Debiting it to P/L Appropriation A/c
(d) Crediting it to P/L Appropriation A/c
(ii) On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all [1]
adjustments, were ₹ 50,000 and ₹ 40,000. Their capitals before Adil’s admission were
₹ 45,000 and ₹ 48,000.
The capital account of the partner having surplus capital was adjusted through his
current account by passing the journal entry: (Application)
(a) Debit Rohan’s Capital A/c ₹ 5,000; Credit Rohan’s Current A/c ₹ 5,000
(b) Debit Pavan’s Capital A/c ₹ 8,000; Credit Pavan’s Current A/c ₹ 8,000
(c) Debit Rohan’s Current A/c ₹ 5,000; Credit Rohan’s Capital A/c ₹ 5,000
(d) Debit Pavan’s Current A/c ₹ 8,000; Credit Pavan’s Capital A/c ₹ 8,000
(iii) Choose the components required to calculate goodwill of a firm by Capitalisation of [1]
Average Profits Method. (Recall)
P The normal profits of a similar firm in the industry
Q The average profits of the firm
R The number of years’ purchase
S The actual capital employed in the business
(a) P, Q, R
(b) Q, R, S
(c) P, Q, S
(d) P, R, S

ISC SPECIMEN QUESTION PAPER 2025
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(iv) Given below is a fictitious scenario. Read the information and answer the question [1]
that follows:
Bhim International Ltd., in order to raise additional funds for expansion purpose, took
a loan of ₹ 10,00,000 at a rate of 12% per annum from NZ Bank on 1st July, 2023,
against which it offered ₹ 15,00,000, 8% Debentures of ₹ 100 each as a collateral
security.
Calculate the finance cost to the company for the year 2023-24.
(Application)
(a) ₹ 1,20,000
(b) ₹ 2,40,000
(c) ₹ 90,000
(d) ₹ 1,80,000
(v) Ira (a partner in a firm) was allowed to retain the whole of the stock as her [1]
remuneration for services rendered by her in the course of dissolution of the firm. The
value of stock was ₹ 10,000 which had been transferred to the Realisation Account.
Complying with the accounting principle of full disclosure, record the above
transaction in the books of the partnership firm at the time of its dissolution.
(Application)
(vi) Aman and Vinod are partners in a firm. Their Balance Sheet showed: [1]
Gross Debtors: ₹ 1,52,000
Provision for doubtful debts: ₹ 1,000
On Milin’s admission as a new partner, the assets and liabilities are to be revalued as:
• Unaccounted accrued income of ₹ 10,000 to be provided for
• Bills Payable of ₹ 10,000 which were recorded, to be discharged at a rebate of
10%
• Debtors of ₹ 2,000 to be irrecoverable
• Provision for doubtful debts to be provided @ 2% of the debtors
What is the net effect of revaluation of assets and liabilities? (Application)
(vii) Assertion: A company can reissue a forfeited share at an amount which is less than [1]
the amount not received on it.
Reason: A company can write off the net loss made on the reissue of a forfeited share
from its capital reserve.
Which one of the following is correct?
(a) Both Assertion and Reason are true and Reason is the correct explanation for
Assertion.
(b) Both Assertion and Reason are true but Reason is not the correct explanation
for Assertion.
(c) Assertion is false and Reason is true.
(d) Both Assertion and Reason are false. (Evaluate)
(viii) Mention the liability of a partnership firm which is not shown in its Balance Sheet, [1]
but is paid off at the time of the dissolution of the firm. (Understanding)

ISC SPECIMEN QUESTION PAPER 2025
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(ix) The Adani family has raised their stake in Ambuja Cements by the conversion of [1]
21·20 crore warrants into shares in a transaction that will see them infusing nearly
₹ 6,661 crore.
(Source: The Telegraph, Kolkata, 29 March, 2024) (Recall)
(a) What is a share warrant?
(b) Mention the head under which Money received against Share Warrants is
shown in the Balance Sheet of a company prepared as per Schedule III of the
Companies Act, 2013.
(x) On 1st April, 2023, Zara Ltd. issued 10,000, 6% Debentures of ₹ 100 each at a discount [1]
of 5%. On 31st March, 2024, the company had ₹ 40,000 in its Capital Reserve A/c and
₹ 30,000 as balance of Securities Premium.
Give the journal entry to write off the discount on issue of issue of debentures on
31st March, 2024. (Application)

Question 2 [3]
Mita, Sita and Rita are partners in a firm. Rita retires from the firm on 31st March, 2024.
Her claim, including her capital and her share of goodwill, is determined at ₹ 2,50,000.
On this date the firm’s books showed:
(a) An unrecorded investment valued at ₹ 60,000 which was given to an unrecorded
creditor of ₹ 1,16,000 in settlement of his claim of ₹ 70,000.
(b) An unrecorded vehicle which was given to Rita at the market value of ₹ 46,000 in part
settlement of her claim.
The balance of Rita’s claim was discharged by cheque.
You are required to pass journal entries to record the above transactions in the books
of the firm on 31st March, 2024. (Application)
OR
Akshat, Javed and Gaurav are partners in a firm sharing profits in the ratio of 5:3:7.
Akshat died on 31st March, 2024.
Javed and Gaurav decided to share the profits in reconstituted firm in the ratio 2:3.
The capital accounts of the partners on 31st March, 2024, before considering the firm’s
goodwill were:
Akshat ₹ 1,66,000
Javed ₹ 66,000
Gaurav ₹ 1,41,000
After considering the adjustment for goodwill, Akshat’s share was determined to be
₹ 1,81,000. It was decided that this amount would be paid to Akshat’s executor immediately
by the firm through a cheque, the amount being contributed by Javed and Gaurav in such a
manner that their capitals would become proportionate to their new profit-sharing ratio.
You are required to pass journal entries to record:
(i) The adjustment for self-generated goodwill of the firm.
(ii) Cash brought in by Javed and Gaurav to pay off Akshat’s executor.
(iii) Payment made to Akshat’s executor. (Application)

ISC SPECIMEN QUESTION PAPER 2025
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Question 3 [3]
On 1st April, 2023, Ruth Ltd. purchased Plant and Machinery for ₹ 11,00,000 from Pablo Ltd.
payable as to ₹ 1,00,000 by accepting a promissory note and the balance by an issue of 11%
Debentures of ₹ 100 each at a premium of 10% to be redeemed at a premium of 2 % after six
years.
You are required to pass journal entries in the books of Ruth Ltd. only to record the
payment made to Pablo Ltd. (Application)
OR
A limited company made an issue, which was fully subscribed, of 2,000, 5% Debentures of
₹ 100 each at ₹ 96, to be redeemed at par after five years. The debentures were allotted on
31st May 2023, subscriptions being payable:
15% on application
30% on allotment
30% on 30th June, 2023
Balance on 30th September 2023
One debenture holder holding 100 debentures paid the allotment with the first call along with
interest on calls-in-arrears @ 10% per annum.
You are required to:
(i) Give the amounts in rupees payable with: [2]
1. Allotment
2. Second and Final Call
(ii) Prepare the Interest-on-Calls in Arrears A/c. [1]
(Application)

Question 4 [3]
1. Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹ 100
each at a premium of 5 % in instalments, as follows:
Date of Redemption Debentures to be redeemed
31st March, 2022 2,000
31st March, 2023 3,000
31st March, 2024 2,000
You are required to prepare for the year 2023-24:
(i) General Reserve Account.
(ii) Debenture holders’ Account. (Ignore interest on Debentures)
(Application)

ISC SPECIMEN QUESTION PAPER 2025
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Question 5 [3]
Kriti and Atif are partners sharing profits and losses equally. On 31st March, 2024, they
admitted David as a third partner for 1⁄5 share in the profits.
It is decided that on David’s admission:
• Atif would retain his original share
• Goodwill would be valued by the super profit method on the basis of the following
information:
(a) Balance Sheet of Kriti and Atif (an extract)
As at 31st March, 2024
Liabilities Amount (₹) Assets Amount (₹)
General Reserve 25,000 Current A/c
Capital A/c Atif 10,000
Kriti 2,50,000
Atif 1,75,000
4,25,000
Current A/c
Kriti 40,000
(b) The normal rate of return is 12% per annum.
(c) Average profits of the firm for last four years are ₹ 74,000.
(Application)
You are required to calculate:
(i) The sacrificing ratio of the partners.
(ii) The value of goodwill of the firm at four years’ purchase of the super profit.

Question 6 [6]
The following balances have been extracted from the books of Nirvana Ltd, as at
31st March, 2024:
Particulars (₹) Particulars (₹)
Security deposit for electricity Uncalled amount on partly
for ten years 30,000 paid-up shares 8,00,000
Underwriting commission 20,000 10% Debentures 5,00,000
General Reserve 70,000 Statement of P/L (Dr) 10,000
Fixed Deposits 2,00,000 Calls-in arrears @ ₹1 per share 40,000
Premium on redemption of Securities Premium 2,00,000
Debentures 20,000
Equity Share Capital
(1,00,000 shares of ₹ 10 each) 10,00,000
You are required to show the above items in Notes to Accounts accompanying the
Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013
as at 31st March, 2024. (Application)

ISC SPECIMEN QUESTION PAPER 2025
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Question 7 [6]
Anita and Anil are partners in a firm. On 1st April, 2024, they admitted Jia as a third partner.
The capital accounts of the partners after considering the following adjustments on Jia’s
admission are given below:
(a) Loss on revaluation due to depreciation on machinery @ 20% per annum.
(b) The General Reserve maintained in the old firm was not to be disturbed in the
reconstituted firm.
Partners’ Capital Accounts
Particulars Anita Anil Jia Particulars Anita Anil Jia
(₹) (₹) (₹) (₹) (₹) (₹)
To Goodwill 10,000 10,000 By Balance b/d 90,000 80,000
A/c
To P&L A/c 5,000 5,000 By Bank A/c 75,000
To Revaluation 7,500 7,500 By Premium 25,000 25,000
A/c for Goodwill
A/c
To Balance c/d 1,17,500 1,07,500 75,000 By Jia’s 25,000 25,000
Current A/c
1,40,000 1,30,000 75,000 1,40,000 1,30,000 75,000

Additional information:
On 31st March, 2024, the firm of Anita and Anil, apart from plant and machinery and a bank
balance of ₹ 2,15,000, had no other asset.
You are required to prepare the Balance Sheet of the reconstituted firm on the date of
Jia’s admission after considering the information given above.
(Show your workings clearly) (Application)
OR
Alfa and Beta are partners in a firm. Their Balance Sheet as at 31st March, 2024, is given
below:
Balance Sheet of Alfa and Beta
As at 31st March, 2024
Liabilities (₹) Assets (₹)
Sundry Creditors 1,16,000 Cash at Bank 93,600
Workmen’s Compensation 24,000 Sundry Debtors 76,400
Reserve Stock 1,10,000
Capital Accounts: Investment 20.000
Alfa 1,00,000 Goodwill 20,000
Beta 80,000
1,80,000
3,20,000 3,20,000
(Application)
On 1st April, 2024, they admit Beta’s son Gama, as a partner on the following terms:
(a) Gama to have 1⁄4 share of profits, half of which is to be gifted to him by his father and
the remaining half to be purchased from Alfa.

ISC SPECIMEN QUESTION PAPER 2025
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(b) Gama to bring in ₹ 60,000 as his capital but would be unable to bring in cash his share
of goodwill.
(c) Goodwill of the firm to be valued at ₹ 40,000.
(d) 50% of the investment to be taken over by Alfa and Beta in their profit-sharing ratio.
(e) The liability on account of Workmen’s Compensation Claim to be ₹ 30,000.
You are required to:
(i) Calculate the new profit-sharing ratio of all the partners. [1]
(ii) Prepare the Partners’ Capital Accounts. [5]
(Application)

Question 8 [6]
Atul and Peter were partners in a firm sharing profits and losses in the ratio of 3:5. They
dissolved their firm on 31st March, 2024, when their Balance Sheet showed the following
balances:
Particulars (₹)
Atul’s Capital 40,000
Peter’s Capital 35,000
Atul’s Current Account 3,000 (Dr)
General Reserve 22,000
Loan from Atul 12,000
On the date of dissolution of the firm:
(a) Peter paid the realisation expenses of ₹ 2,000 on behalf of the firm.
(b) Atul discharged his wife’s loan of ₹ 5,000 which she had given to the firm.
(c) The dissolution resulted in a profit of ₹ 24,000 from the realisation of assets and
settlement of liabilities.
You are required to pass journal entries to close the books of the firm (including the
entries to show the final settlement of the amount due from the partners / due to the
partners by the firm). (Application)

Question 9
(A) Deb, Riza and Ved entered into a partnership on 1st July, 2023, without any agreement
as to profit sharing, except that Deb guaranteed that Ved’s share of profit, after
considering interest into account, would not be less than ₹ 8,500 per annum.
The initial capital provided by the partners was as follows:
Deb ₹ 60,000;
Riza ₹ 20,000;
Ved ₹ 12,000 (increased on the following 1st January, 2024, to ₹ 16,000)
In addition to the above capital, Deb and Riza gave temporary loans to the partnership
firm as follows:
• Deb advanced ₹ 18,000 on 1st October, 2023, and was repaid on 1st April
following.

ISC SPECIMEN QUESTION PAPER 2025
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• Riza advanced ₹ 40,000 on 1st September, 2023, and was repaid along with
interest, on 1st December, 2023.
The profit of the firm for the year ended 31st March, 2024, before providing for any
interest was ₹ 21,000.
You are required to prepare for the year 2023-24:
(i) Profit and Loss Appropriation Account. [4½]
(ii) Riza’s Loan Account. [1½]
(iii) Ved’s Capital Account. [2]
(Application)

(B) Krish and Tarun are partners in a firm with capitals of ₹ 40,000 and ₹ 60,000. As per
their partnership deed:
(a) Interest on capital is to be allowed to them @ 5% per annum.
(b) Profits are to be shared in the ratio of 3:2.
The trading profits for the year 2023-24 was ₹ 3,600.
You are required to calculate the interest on capital allowed to the partners in the [2]
year 2023-24. (Application)
OR
Deepa, Ridhi and Adit are partners in a firm. Following are the particulars of their Capital
and Drawings Accounts for the year 2023-24:
Particulars Deepa Ridhi Adit
(₹) (₹) (₹)
Capital as on 1st April, 2023 1,00,000 80,000 20,000 (Dr)
Drawings (in two instalments of ₹ 7,500 ----- 15,000 -----
each made at the end of every half year)
Interest free loan from the firm ----- ----- 5,000

According to their partnership deed:
• Profits were to be shared in the ratio of 2:2:1
• Interest on capital to be allowed @ 5% per annum
• Interest on drawings to be charged @ 8% per annum
The trading profits of the firm for the financial year 2023-24 were ₹ 50,000, before
considering the discrepancy of having recorded the inventory at ₹ 10,000 when its realisable
value was ₹ 4,000.
(i) You are required to give:
1. The adjusting entry and closing entry for Drawings made by Ridhi [2]
(Recall)
2. The adjusting entry and closing entry for Interest on Drawings [2]
(Application)
3 The adjusting entry and closing entry for Interest on Capital [2]
(Application)
4. The entry to close the Adit’s Loan A/c (Application) [2]
(ii) The accountant of the firm distributed the divisible profit among the partners in the [2]
ratio 2:1:2 instead of in the ratio mentioned in the deed.
You are required to rectify the lapse in accounting by passing a single adjusting
entry. (Application)

ISC SPECIMEN QUESTION PAPER 2025
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Question 10 [10]
Hero Ltd. was registered with a capital of ₹ 5,00,000 divided into 20,000 shares of ₹ 25 each,
payable as:
On Application ₹ 5 per share
On Allotment ₹ 10 per share
On Call The Balance
The company offered to the public for subscription 10,000 shares. It received applications for
11,100 shares.
From amongst the applicants:
(i) Vimal, who had applied for 1,200 shares, paid ₹ 6,000 on application. but was allotted
only 600 shares.
(ii) Mohan applied for 1,000 shares, paid the full amount of ₹ 25,000 with his application
but was allotted only 500 shares.
(iii) Vineet, who had applied for 1,500 shares, paid his application and allotment money in
order but did not pay the call money.
(iv) The remaining applicants paid as and when due.
The surplus money paid by both Vimal and Mohan was used towards allotment and call and
any surplus beyond the call was refunded.
The company forfeited Vineet’s shares and later re-issued 500 of the forfeited shares @ ₹ 20
per share fully paid up.
You are required to pass journal entries in the books of Hero Ltd.
(Application)
OR
Stem Ltd. came up with an IPO inviting the public to subscribe to its Equity shares of ₹ 10
each. The issue was over-subscribed. The company allotted 80,000 shares to all the applicants
making a pro-rata allotment in the ratio of 3:2.
The face value of the share was payable in three instalments.
Based on the information given above and the following extract of ledger accounts and
Cash Book (Bank Column), answer the questions that follow:
Cash Book (Bank Column) (extract)
Particulars Amount (₹) Particulars Amount (₹)
To Share Application A/c 4,80,000 By Balance c/d ………..
To Share Allotment A/c …………

Share Capital A/c (extract)
Particulars Amount (₹) Particulars Amount (₹)
To Share Forfeiture A/c ………. By Share Application A/c …..…….
To Call-in arrears A/c ………. By Share Allotment A/c 4,00,000
By Share Final Call A/c ……….
Calls-in-Arrears A/c (extract)
Particulars Amount (₹) Particulars Amount (₹)
To Share Allotment A/c 6,000
(i) What are the number of shares applied for by the public? [1]
(ii) What is the amount payable per share with application? [1]
(iii) What is the amount payable per share with first and final call? [1]

ISC SPECIMEN QUESTION PAPER 2025
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(iv) Stem Ltd. did not receive the allotment money and call money due from the [2]
shareholder Rehan, who had applied for 3,000 shares.
What is the amount received by Stem Ltd. with allotment?
(v) Stem Ltd. forfeited Rehan’s shares after the final call. It reissued 1,500 forfeited
shares fully called up @ ₹ 13 per share
Give the journal entries passed by the company for:
(a) Forfeiture of these shares [2]
(b) Reissue of the forfeited shares. [3]
(Application)

SECTION B (20 Marks)
Question 11

In subparts (i) and (ii) choose the correct options and in subparts (iii) to (v) answer the
questions as instructed.
(i) According to the ratings agency Chrisil, healthy demand for grocery items and [1]
expansion into tier II and III cities will help organized brick-and-mortar food and
grocery (F&G) retailers log a revenue of 14-15% in FY25. The agency further said
the debt raising will be capped to ensure healthy key debt protection metrics.
Source (edited): Financial Express, 23 December, 2023
From the following ratios:
• Choose the formula of the ratio to be used by the F&G retailers as a debt
protection metrics (Analysis)
• Mention the name of the ratio so chosen (Recall)
(a) Revenue from Operations
Working Capital
(b) Cost of Revenue from Operation + Operating Expenses
× 100
Revenue from Operations
(c) Net Profit before interest and taxes
Fixed Interest Charges
(d) Net Profit after Tax and Preference Dividend
No. of Equity Shares
(ii) Read the following news item of ITC Ltd. and answer the question that follows: [1]
The company’s board declared an interim dividend of ₹ 6·25 per share for the financial
year ending March, 2024. The dividend will be paid between February 26-28, 2024,
to the eligible shareholders.
(Source: The Hindu, Financial Express, 30 January, 2024)
Which of the following are the attributes of interim dividend? (Understanding)
P It is a charge against profits.
Q It is an appropriation of profits.
R Its declaration and payment will decrease the company’s Current Ratio.
S Its declaration and payment will increase the company’s Debt Equity Ratio.

ISC SPECIMEN QUESTION PAPER 2025
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(a) Only P
(b) Only Q
(c) P, R and S
(d) Q, R and S
(iii) Bajaj Hindustan Sugar, one of the largest sugar and ethanol producers, in order to [1]
revive the company, has offered to invest ₹ 2,500 crore as fresh equity of which
₹ 1,000 crore has already been infused.
(Source (edited): Economic Times, Mumbai Edition 08, August, 2023)
What will be the effect of this decision of Bajaj Hindustan Sugar on its Debt-
Equity Ratio? (Analysis)
(iv) Jubilant Food Works Ltd., the company that operates Domino’s restaurants in India, [1]
reported a net profit of ₹ 65·7 crore for the three months ending, 31st December, 2023,
against ₹ 80 crore for the three months ending, 31st December, 2022.
(Source (edited): Mint, 01 February, 2024)
You are required to give, for the three months ending, 31st December, 2023, as
compared to the same period ending, 31st December, 2022:
(a) The formula to calculate the percentage change in net profit of the
company.
(b) The percentage change in the net profit of Jubilant Food Works Ltd. of the
three months ending 31st December, 2023 vis-a-vis the three months ending,
31st December, 2022, mentioning the increase / decrease.
(Analysis)
(v) Read the news item given below and answer the questions which follow: [1]
Tata Consultancy Services ₹ 17,000 crore share buyback programme will open on
December 1 and close on December 7, India’s largest software exporter said on
Tuesday.
“The company believes that the buyback is not likely to cause any material impact on
the profitability or earnings of the company except to the extent of reduction in the
amount available for investment, which the company could have otherwise deployed
towards generating investment income”, TCS said in a regulatory filing.
(Source: Economic Times, December 29, 2023)
How would the Cash Flow from Investing Activities of TCS be affected, if instead
of buying back its shares, the company had proceeded with its investing
programme? (Application)

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Question 12 [3]
From the following information, you are required to prepare a Common Size Balance
Sheet of Super Ltd. as at 31st March, 2024.
Particulars
Non-Current Liabilities ₹ 2,00,000
Shareholders’ Fund 2·5 times more than the Non-Current Liabilities
Current Liabilities ₹ 1,00,000
Current Assets ₹ 3,00,000
Non-Current Assets 70% of the Equity & Liabilities
(Application)

Question 13
Anand Ltd. reported a loss of ₹ 80,000 for the year ended 31st March, 2024, after considering
the depreciation charged on Plant & Machinery represented by ‘??’ and the following items:
(₹)
(a) Tax provided during the year 84,000
(b) Loss on sale of Plant & Machinery 15,000
(c) Interest on Short-term Loans and Advances 2,000
(d) Depreciation on Plant & Machinery
??
Additional information:
1. During the year 2023-24:
• A machine having a book value ₹ 40,000, was disposed of for ₹ 25,000 and a
machine costing ₹ 2,20,000 was purchased.
• Credit sales were ₹ 1,00,000
2. An extract of the balance sheet of the company as at 31st March, 2023, and as at
31st March, 2024:
Particulars 31st March, 2024 31st March, 2023
(₹) (₹)
Trade Receivable 20,000 15,000
Cash at Bank 8,000 10,000
Short-term Loans and Advances 49,000 11,000
Trade Payables 5,000 2,000
Plant & Machinery (At Net Value) 6,00,000 4,90,000
Provision for depreciation 1,50,000 1,10,000
(Evaluate)
(i) You are required to calculate for the year 2023-24: (Show the workings clearly)
1. The net operating profit of the company before working capital changes. [2]
2. Cash from Investing Activity. [2]

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(ii) Taking the information of credit sales into consideration, state with reason, [2]
whether the increase in Trade Receivables in the year 2023-24 over the year
2022-23 will cause the cash from operating activities before tax paid to be more
or less then the net operating profit of the company before its working capital
changes.
OR
From the following Balance Sheets of Ronald Ltd., you are required to prepare a Cash [6]
Flow Statement (as per AS 3) for the year 2023-24.
Balance Sheets of Ronald Ltd.
As at 31st March, 2024 and 31st March, 2023
Particulars Note 31.03.2024 31.03.2023
No. (₹) (₹)
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,00,000 6,00,000
(b)Reserves and Surplus 80,000 (60,000)
(Statement of P &L)
2. Non- Current Liabilities
Long Term Borrowings 1,00,000 1,50,000
3. Current Liabilities
(a) Short –term borrowings 1,75,000 22,000
(Bank overdraft)
(b) Short Term Provisions 15,000 28,000
(Provision for Tax)
TOTAL 9,70,000 7,40,000
II ASSETS
1. Non- Current Assets
(a)
Property, Plant & Equipment &
Intangible Assets
(i) Property, Plant & Equipment 5,50,000 6,40,000
(Plant &Machinery)
(b) Non- Current Investments 1,40,000 50,000
(7% Debentures of Violet Ltd.)
2. Current Assets
Cash & Bank Balance (Bank) 2,80,000 50,000
TOTAL 9,70,000 7,40,000
Additional information:
(i) The Debentures of Violet Ltd. were purchased on 31st March, 2024.
(ii) During the year 2023-24:
(a) Tax of ₹ 20,000 was paid.
(b) Interest on all borrowings due and paid was ₹ 25,000.
(Application)

ISC SPECIMEN QUESTION PAPER 2025
14

Question 14 [6]
Answer any three of the following questions:
(i) Calculate Interest Coverage Ratio of Criss Cross Ltd. (up-to two decimal places)
from the following information:
Particulars
Net Profit after Interest and Tax ₹ 80,000
Tax Rate 50 %
12% Debentures ₹ 3,00,000
9% Bank Loan ₹ 1,00,000
(Application)
(ii) Calculate the Operating Ratio of Zen Ltd. (up-to two decimal places) from the
following information:
Particulars
Revenue from Operations ₹ 9,00,000
Gross Profit 20 % of cost
Operating Expenses ₹ 60,000
(Application)
(iii) A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50,000,
having a current Ratio of 2:1.
What will be its revised Current Ratio after it endorses a bills receivable of
₹ 40,000 to one of its creditors? (Application)
(iv) From the following particulars of NB Ltd., calculate its Cost of Revenue from
Operations for the year 2023-24.
Particulars
Current Assets ₹ 6,80,000
Current Liabilities ₹ 3,40,000
Quick Ratio 1·5 :1
Inventory Turnover Ratio 4 times
(Application)
SECTION C (20 Marks)

Question 15
In subparts (i) and (ii) choose the correct options and in subparts (iii) to (v) answer the
questions as instructed.
(i) The fill function can be __________ to complete formulas in a range. (Recall) [1]
(a) Single clicked
(b) Double clicked
(c) Triple clicked
(d) Right clicked

ISC SPECIMEN QUESTION PAPER 2025
15

(ii) An index is clustered if: (Recall) [1]
(a) it is on a set of fields that form a candidate key.
(b) it is on a set of fields that form a primary key.
(c) the data records of the file are organized in the same order as the data entries of
the index.
(d) the data records of the file are organized not in the same order as the data entries
of the index.
(iii) Mention the symbol which specifies the fixed columns or rows in a formula. (Recall) [1]
(iv) Give the shortcut that is used to select a row in Excel. (Recall) [1]
(v) What is meant by the term Back-end as used in data applications? (Recall) [1]

Question 16 [3]
(i) How is a Formula different from a Function in Excel? (Analysis)
(ii) Why is database testing important? (Recall)

Question 17 [6]
You are required to answer any three of the following questions.
(i) Give any two reasons to show that a blank space or zero is not the same as NULL
value in SQL. (Recall)
(ii) List any two types of storage devices in DBMS. (Recall)
(iii) What are the SQL statements used in Database testing to manipulate the test table?
(iv) What is meant by date-transfer rate? (Recall)

Question 18
The spread sheet below shows the sales of Jupiter Ltd. made by four salesmen in the four
quarters of the financial year 2022-23:

A B C D E F G
1 Sales in ₹
Commission
Salesman Total
2 Qtr 1 Qtr 2 Qtr 3 Qtr 4 @ 10% of
No. Sales
sales (₹)
3 S1 6,000 7,000 ?? 9,000
4 S2 8,000 9,000 8,200 8,500 33,700
5 S3 9,600 8,400 9,200 9,500 36,700 ??
6 S4 ?? 7,600 8,000 12,000
7 Total

ISC SPECIMEN QUESTION PAPER 2025
16

Based on the above transactions and the information given in the spreadsheet, answer
any three of the following questions:
(i) Write the formula to calculate the cost of the goods sold by Salesman No. S2 in Qtr 2, [2]
if he had sold the goods at a profit of 10% of the sales. (Application)
(ii) Write the formula to calculate the sales made by Salesman No. S2 in Qtr 3 in cell D3, [2]
if he had sold the goods at a profit of 10% of the cost. (Application)
(iii) In Qtr 1, Salesman No. S4 sold goods costing ₹ 8,800 at a loss of 10% of the sales. [2]
What is the selling price of the goods in cell B6. (Application)
(iv) The company gives a commission of 10% on its total sales. Write the formula to [2]
calculate the commission earned by Salesman No. S3 in cell G5. (Application)

ISC SPECIMEN QUESTION PAPER 2025
17

ACCOUNTS
ANSWER KEY

Candidates must ensure the following while answering the questions:
• All journal entries from Question 2 to Question 10 are in the proper journal format with
‘Journal’ mentioned at the top.
• All journal entries from Question 2 to Question 10 are accompanied with narrations.
• All formulae, whether for valuation of goodwill (Question 5) or calculation of ratios
(Question 14) have been written in full form and not in abbreviations such as SP for Super
Profit; NP for Normal Profit; CA for Current Asset; CL for Current Liability; RFO for
Revenue from Operations etc.
• The only abbreviation used in the Answer Key is DRR for Debenture Redemption Reserve
(Question 4).
• Short form such as Int on C-I-A for Interest on calls-in-arrears, PFG for premium for
goodwill, PDD for provision for doubtful debts, SP for Securities Premium would not have
used.
• The formulae of the ratios in Question 14 are as per the ones given in the scope of the syllabus.
• In Question 13, the amounts to be subtracted have been put within brackets.
• The Profit and Loss Appropriation A/c (Question 9), Balance Sheet (Question 7) and Cash
Flow Statement (Question 13) are accompanied with the year/ date of their preparation.

SECTION A- 60 MARKS
Question 1

(i) (c) or Debiting it to P/L Appropriation A/c [1]

(ii) (b) or Debit Pavan’s Capital A/c ₹ 8,000; Credit Pavan’s Current A/c ₹ 8,000 [1]

(iii) (c) or P, Q, S [1]

(iv) (c) ₹ 90,000 [1]

(v) Ira’s Capital A/c Dr 10,000 [1]
To Realisation A/c 10,000

Realisation A/c Dr 10,000
To Ira’s Capital A/c 10,000

1 ISC SPECIMEN ANSWER KEY 2025

(vi) Net gain of ₹ 7,000 [1]

(vii) (d) or Both Assertion and Reason are false. [1]

(viii) Unrecorded Liability
ed [1]
Or
Contingent liability which becomes a definite liability
(ix) (a) A share warrant is a financial instrument which gives the holder the right to acquire [1]
equity shares specified therein at a specified date at a predetermined price.

(b) Shareholder’s Funds.

(x) Securities Premium A/c Dr 30,000 [1]
Statement of P/L Dr 20,000
To Discount on issue of Debentures A/c 50,000

Question 2 [3]
Journal
Date Particulars L.F. Debit (₹) Credit (₹)
Revaluation A/c Dr 46,000
To Creditors A/c 46,000
(Being creditors revalued and settled)

Vehicle A/c Dr 46,000
To Revaluation A/c Dr 46,000
(Being vehicle revalued)

Rita’s Capital A/c Dr 2,50,000
To Vehicle A/c 46,000
To Bank A/c 2,04,000
(Being Rita’s claim settled)
OR
Journal
Date Particulars L.F. Debit (₹) Credit (₹)
Javed’s Capital A/c Dr 9,000
Gaurav’s Capital A/c Dr 6,000
To Akshat’s Capital A/c 15,000
(Being Akshat compensated for his share
of goodwill)

Bank A/c Dr 1,81,000

2 ISC SPECIMEN ANSWER KEY 2025

To Javed’s Capital A/c Dr 89,200
To Gaurav’s Capital A/c 91,800
(Being Cash brought in by Javed and
Gaurav to pay off Akshat’s Executor)

Akshat’s Executor’s A/c Dr 1,81,000
To Bank A/c 1,81,000
(Being Akshat’s executor paid off)

Question 3 [3]
In the Books of Ruth Ltd.
Journal
Date Particulars L.F. Debit (₹) Credit (₹)
Pablo Ltd. A/c Dr 1,00,000
To Bills Payable A/c 1,00,000
(Being part payment made by accepting
a bill of exchange)

Pablo Ltd. A/c Dr 10,00,000
Loss on issue of Debentures A/c Dr 18,180
To 11% Debentures A/c 9,09,000
To Securities Premium A/c 90,900
To Premium on Redemption of 18,180
Debentures A/c
To Bank A/c 100
(Being 9,090, 11% Debentures issued at
a premium of 10%)
Working notes:
10,00,000
No. of Debentures = 110 = 9090·9090
OR
(i) 1. ₹ 30 [2]

2. ₹ 21
(ii) Interest on Calls-in-Arrears A/c [1]
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31.03.24 To Statement of 25 30.06.23 By Debenture 25
P/L holders’ A/c
25 25

3 ISC SPECIMEN ANSWER KEY 2025

Question 4 [3]
General Reserve A/c
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31.03.24 To Balance c/d 70,000 01.04,23 By Balance b/d 50,000
31.03.24 By DRR 20,000
70,000 70,000

Debenture holders’ A/c
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31/3/24 To Bank A/c 2,20,000 31/03/24 By 10% Debentures A/c 2,00,000
01/04/24 By Premium on 20,000
Redemption of
Debentures A/c
2,20,000 2,20,000

Question 5 [3]
(i) Sacrificing Ratio = 1⁄5: 0

(ii) Normal Rate of Return
Normal profit = Capital employed × 100
Capital employed = ₹ 4,80,000
12
Normal profit = 4,80,000 × 100 = ₹ 57,600
Super profit = Average Profit – Normal Profit
= 74,000 – 57600 =16,400
Goodwill = 16,400 × 4 = ₹ 65,600

Question 6 [6]
Notes to Accounts:
Particulars (₹)
1. Share Capital
Authorised Capital
………. Equity shares @ ₹ 10 each ……….

Issued Capital
………. Equity shares @ ₹ 10 each ……….

4 ISC SPECIMEN ANSWER KEY 2025

Subscribed Capital
Subscribed and fully paid
60,000 Equity shares @ ₹ 10 each
Subscribed but not fully paid 6,00,000
40,000 Equity shares @ ₹ 10 each 4,00,000
Less Calls-in-arrears (40,000) 3,60,000
-------------
9,60,000
2. Reserves & Surplus
Securities Premium 2,00,000
Less Underwriting commission (20,000)
General Reserve 70,000
Statement of P/L (Dr) (10,000) 2,40,000
3. Long-term Borrowing
10% Debentures 5,00,000
Premium on Redemption of Debentures 20,000
Fixed Deposits 2,00,000 7,20,000
4. Long-term Loans and Advances
Security deposit for electricity for ten years 30,000
5. Contingent Liabilities & Capital Commitments
Capital Commitments
Uncalled amount on partly paid-up shares 8,00,000

Question 7 [6]
Balance Sheet of Anita, Anil and Jia
As at 1st April, 2024
Liabilities (₹) Assets (₹)
Capital Accounts: Cash at Bank 3,40,000
Anita 1,17,500 Plant & Machinery 60,000
Anil 1,07,500 Jia’s Current A/c 50.000
Jia 75,000 3,00,000
General Reserve 1,50,000
4,50,000 4,50,000

Working notes:
100
Value of Machinery = 15,000 × 20 = 75,000
Amount of General Reserve = 50,000 × 3 = 1,50,000

OR

5 ISC SPECIMEN ANSWER KEY 2025

(i) New Ratio = 7 : 7 : 2 [1]

(ii) Partners’ Capital Accounts
[5]
Particulars Alpha Beta Gama Particulars Alpha Beta Gama
To Goodwill 10,000 10,000 By Bal b/d 1,00,000 80,000
To Investment 5,000 5,000 By Cash / Bank 60,000
To 3,000 3,000 By Gama’s 5,000
Revaluation Current A/c
To Bal c/d 87,000 62,000 60,000
1,05,000 80,000 60,000 1,05,000 80,000 60,000

Working Notes:
1 1 1
Gifted by Beta = 2 of 4 = 8
1
Purchased from Alfa = 8
1 7 1 7 1
New Ratio= Alfa = 1 - 8 = 8 Beta = 1 − 8 = 8 Gama = 4
New Ratio = 7 : 7 : 2
1
Sacrificing Ratio = 0 : 8
1
Gama’s share of Goodwill = 8 of 40,000 = ₹ 5,000

Question 8 [6]
Journal
Date Particulars L.F. Debit (₹) Credit (₹)
Atul’s Capital A/c Dr 3,000
To Atul’s Current A/c 3,000
(Being Atul’s Current A/c closed)

Atul’s Loan A/c Dr 12,000
To Bank A/c 12,000
(Being workmen compensation claim met out
of the reserve)

General Reserve A/c Dr 22,000
To Atul’s Capital A/c 8,250
To Peter’s Capital A/c 13,750
(Being balance of GR transferred to partners’
capital accounts)

Realisation A/c Dr 2,000
To Peter’s Capital A/c 2,000
(Being realisation expenses paid by Peter)

6 ISC SPECIMEN ANSWER KEY 2025

Realisation A/c Dr 5,000
To Atul’s Capital A/c 5,000
(Being Atul’s wife’s loan discharged by Atul)

Realisation A/c Dr 24,000
To Atul’s Capital A/c 9,000
To Peter’s Capital A/c 15,000
(Being profit on realisation transferred to
partners’ capital accounts

Atul’s Capital A/c Dr 59,250
Peter’s Capital A/c Dr 65,750
To Bank A/c 1,25,000
(Being partner’s capital accounts settled)

Question 9
(A) Profit & Loss Appropriation Account
(i) For the year ending 31st March, 2024
[4½]
Particulars Particulars (₹)
(₹)
To Deb’s Capital A/c By Profit & Loss A/c 21,000
6,620 Less Interest on Loan
(1,880) 4,740 Deb 540
Riza 600 (1,140) 19,860
To Riza’s Capital A/c
6,620 6,620
To Ved’s Capital A/c
6,620
+1,880 8,500
19,860 19,860
Working Notes:
Interest on loan:
6 6
Deb= 18,000 × 100 × 12 = 540
6 3
Riza = 40,000 × 100 × 12 = 600
Riza’s Loan Account
[1½]
(ii) Date Particulars Amount Date Particulars Amount
(₹) (₹)
1.12.2023 To Bank 40,600 1.9.2023 By Bank A/c 40,000
1.12.2023 By Interest on 600
Loan
40,600 40,600

7 ISC SPECIMEN ANSWER KEY 2025

(iii) Ved’s Capital Account [2]
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31.3.2024 To Balance c/d 24,500 1.7.2023 By Bank A/c 12,000
1.1.2024 By Bank A/c 4,000
31.3.2024 By P/L App 6,620
31.3.2024 By Deb’s 1,880
Capital
24,500 24,500
(B) Interest on Capital: [2]
Krish= ₹ 1440
Tarun= ₹ 2,160

OR
(i) 1. Journal [2]
Date Particulars L.F. Debit (₹) Credit (₹)
30.9.2023 Ridhi’s Capital A/c Dr 7,500
To Cash / Bank A/c 7,500
(Being drawings made by Ridhi)

31.3.2024 Ridhi’s Capital A/c Dr 7,500
To Cash / Bank A/c 7,500
(Being drawings made by Ridhi)

31.3.2024 Ridhi’s Capital A/c Dr 15,000
To Ridhi’s Drawings A/c 15,000
(Being drawings account closed
by transferring to capital account)
[2]
2. Journal
Date Particulars L.F. Debit (₹) Credit (₹)
31.3.2024 Ridhi’s Capital A/c Dr 300
To Interest on Drawings A/c 300
(Being interest on drawings
charged)

31.3.2024 Interest on Drawings A/c Dr 300
To P & L Appropriation A/c 300
(Being interest on drawings
account closed)

8 ISC SPECIMEN ANSWER KEY 2025

3. Journal [2]
Date Particulars L.F. Debit (₹) Credit (₹)
31.3.2024 Interest on Capital A/c Dr 9,000
To Deepa’s Capital A/c 5,000
To Ridhi’s Capital A/c 4,000
(Being interest on capital
allowed)

31.3.2024 P & L Appropriation A/c Dr 9,000
To Interest on Capital A/c 9,000
(Being interest on capital account
closed)
4. Journal [2]
Date Particulars L.F. Debit (₹) Credit (₹)
31.3.2024 Adit’s Capital A/c Dr 5,000
To Loan to Adit A/c 5,000
(Being Adit’s loan A/c closed)

(ii) Adjusting Journal Entry [2]
Date Particulars L.F. Debit (₹) Credit (₹)
31.3.2024 Adit’s Capital A/c Dr 7,060
To Ridhi’s Capital A/c 7,060
(Being error of profits distributed
in incorrect ratio rectified)

Working Notes:
Table Showing Adjustments
Partners Amount which Amount which Difference
has been credited should have been (Dr or Cr)
in the ratio 2:1:2 credited in the
44,000 + 300 - ratio 2:2:1
9,000= 35,300 44,000 + 300 -
9,000= 35,300
(₹) (₹) (₹)
Deepa 14,120 14,120 ----
Ridhi 7,060 14,120 7,060 (Cr)
Adit 14,120 7,060 7,060 (Dr)

9 ISC SPECIMEN ANSWER KEY 2025

Question 10 [10]
In the Books of Hero Ltd.
Journal
Particulars LF Debit (₹) Credit (₹)
Bank A/c Dr 75,500
To Share Application A/c 75,500
(Being share application received)

Share Application A/c Dr 75,500
To Share Capital A/c 50,000
To Share Allotment A/c 8,000
To Calls-in-Advance A/c 5,000
To Bank A/c 12,500
(Being share application transferred to share
capital and subsequent instalments)

Share Allotment A/c Dr 1,00,000
To Share Capital A/c 1,00,000
(Being share allotment due)

Bank A/c Dr 92,000
To Share Allotment A/c 92,000
(Being share allotment received)

Share 1st& Final Call A/c Dr 1,00,000
To Share Capital A/c 1,00,000
(Being share capital due)

Bank A/c Dr 80,000
Calls-in-Advance A/c Dr 5,000
Calls-in-Arrear A/c Dr 15,000
To Share 1st & Final Call A/c 1,00,000
(Being share final call received)

Share Capital A/ Dr 37,500
To Share Forfeiture A/c 22,500
To Calls-in-Arrear A/c 15,000
(Being 1,500 shares forfeited)

Bank A/c Dr 10,000
Shares Forfeiture A/c Dr 2,500
To Share Capital A/c 12,500
(Being 500 shares reissued)

Share Forfeiture A/c Dr 5,000
10 ISC SPECIMEN ANSWER KEY 2025

To Capital Reserve A/c 5,000
(Being net gain on reissued shares transferred to
Capital Reserve)
OR
(i) 1,20,000 shares [1]
(ii) ₹4 [1]
(iii) ₹ 1 [1]
(iv) ₹ 2,34,000 [2]
(v) (a) Journal [2]
Particulars L.F Debit (₹) Credit( ₹)
Share Capital A/c Dr 20,000
To Share Forfeiture A/c 12,000
To Calls-in-Arrear A/c 8,000
(Being 2,000 shares forfeited)

(b) Journal [3]
Particulars L.F Debit (₹) Credit (₹)
Bank A/c Dr 19,500
To Share Capital A/c 15,000
To Securities Premium 4,500
(Being 1,500 shares reissued)

Share Forfeiture A/c Dr 9,000
To Capital Reserve A/c 9,000
(Being net gain on reissued shares
transferred to Capital Reserve)

SECTION B - 20 Marks
Question 11
Net Profit before interest and taxes
(i) • (c) or [1]
Fixed Interest Charges
• Interest Coverage Ratio
(ii) (d) or Q, R and S [1]
(iii) The ratio will reduce/ decline [1]
(iv) [1]
𝐴𝑏𝑠𝑜𝑙𝑢𝑡𝑒 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
(a) × 100
𝐵𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 (𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟) 𝑝𝑟𝑜𝑓𝑖𝑡

(b) Decrease of 21·77 %
(v) Outflow of cash to the extent of investment made. [1]
Inflow of cash – interest income from the investments
11 ISC SPECIMEN ANSWER KEY 2025

Question 12 [3]
Common Size Balance Sheet of Super Ltd.
As at 31.3.2024
Particulars Note. 31.03.2024 (₹) % to Balance
No. Sheet Total
I. Equity & Liabilities
1. Shareholders’ Funds 7,00,000 70
2. Non-Current Liabilities 2,00,000 20
3. Current Liabilities 1,00,000 10
Total 10,00,000 100
II. Assets
1. Non-Current Assets 7,00,000 70
2. Current Assets 3,00,000 30
Total 10,00,000 100

Question 13
Working Note: 1 Provision for Depreciation A/c
Particulars Amount (₹) Particulars Amount (₹)
To Plant & Machinery A/c 30,000 By Balance b/d 1,10,000
To Balance c/d 1,50,000 By Depreciation A/c 70,000
1,80,000 1,80,000
Working Note: 2 Plant & Machinery A/c
Particulars Amount (₹) Particulars Amount (₹)
To Balance b/d 6,00,000 By Provision for 30,000
Depreciation A/c
To Bank A/c 2,20,000 By Bank A/c 25,000
By Loss on sale A/c 15,000
By Balance c/d 7,50,000
8,20,000 8,20,000

(i) 1. ₹ 87,000 [2]
Workings:
(₹)
Net Profit for the year (80,000)
Provision for Tax 84,000
Net Profit before Tax 4,000
Add Depreciation on P & M 70,000
Add Loss on sale of machine 15,000
Less Interest on Short-Term Loans and Advances (2,000)
Net Operating Profit before WC changes 87,000
12 ISC SPECIMEN ANSWER KEY 2025

2. ₹ (2,31,000) [2]
Workings:
(₹)
Purchase of P & M (2,20,000)
Sale of P & M 25,000
Short-Term Loans and Advances (38,000)
Interest on Short-Term Loans and Advances 2,000
Cash used in Investing Activities (2,31,000)

(ii) Less [2]
Reason- Although the operating profit increased by ₹ 1,00,000 because of the credit sales,
the increase in cash was only ₹ 95,000 (1,00,000 + 15,000 – 20,000).
OR
Working Note :1 Provision for Tax A/c [6]
Particulars Amount Particulars Amount
(₹) (₹)
To Bank A/c 20,000 By Balance b/d 28,000
To Balance c/d 15,000 By Statement of P/L 7,000
35,000 35,000
Working Note :2 (₹)
St of P/L 1,40,000
Provision for Tax 7,000
Net Profit before Tax 1,47,000

Cash Flow Statement of Ronald Ltd.
For the year ending 31st March, 2024 / For the year 2023-24
Particulars (₹) (₹)
I. Cash from Operating Activities
NP before Tax (WN 3) 1,47,000
Add non op / non cash exp
Depreciation on Plant & Machinery 90,000
Interest on Borrowings 25,000
Less Interest on Investment received (3,500)
Net Op Profit before WC changes/ Cash from 2,58,500
Operating Activities before Tax paid
Less Tax paid (20,000)
Cash Flow from Operating Activities 2,38,500

II. Cash from Investing Activities
Purchase of Investments (90,000)
Interest on Investments received 3,500
Cash used in Investing Activities (86,500)
III. Cash from Financing Activities
Repayment of long-term borrowings (50,000)
13 ISC SPECIMEN ANSWER KEY 2025

Interest on borrowings paid (25,000)
Bank overdraft taken 1,53,000
Cash Flow from Financing Activities 78,000
Net increase in Cash as per I, II and III 2,30,000
Add Op Cash and Cash Equivalents
Bank 50,000
Closing Cash and Cash Equivalents
Bank 2,80,000
2,80,000 2,80,000

Question 14 (Any three) [6]
(i) 𝑵𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒂𝒏𝒅 𝒕𝒂𝒙𝒆𝒔
Interest Coverage Ratio = 𝑭𝒊𝒙𝒆𝒅 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑪𝒉𝒂𝒓𝒈𝒆𝒔
𝟐,𝟎𝟓,𝟎𝟎𝟎
= 𝟒𝟓,𝟎𝟎𝟎
= 4·56 times
(ii) 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔+𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔
Operating Ratio = × 𝟏𝟎𝟎
𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔

Or
𝑪𝒐𝒔𝒕 𝒐𝒇 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔+𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔− 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑰𝒏𝒄𝒐𝒎𝒆
× 𝟏𝟎𝟎
𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔
𝟖,𝟏𝟎,𝟎𝟎𝟎
= 𝟗,𝟎𝟎,𝟎𝟎𝟎 × 100
= 90 %
(iii) 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
Current Ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑙𝑖𝑡𝑖𝑒𝑠
𝟐,𝟔𝟎,𝟎𝟎𝟎
= 𝟏.𝟏𝟎,𝟎𝟎𝟎
= 2·36:1
(iv) 𝑸𝒖𝒊𝒄𝒌 𝑨𝒔𝒔𝒆𝒕𝒔
Quick Ratio = 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒍𝒊𝒕𝒊𝒆𝒔
OR
𝑨𝒍𝒍 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕𝒔 − 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒊𝒆𝒔 (𝒆𝒙𝒄𝒍𝒖𝒅𝒊𝒏𝒈 𝑳𝒐𝒐𝒔𝒆 𝑻𝒐𝒐𝒍𝒔 & 𝑺𝒑𝒂𝒓𝒆 𝑷𝒂𝒓𝒕𝒔) − 𝑷𝒓𝒆𝒑𝒂𝒊𝒅 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔
=
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
𝟔,𝟖𝟎,𝟎𝟎𝟎−𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
1·5 : 1 = 𝟑,𝟒,𝟎𝟎𝟎

Inventory = ₹ 1,70,000
𝑪𝒐𝒔𝒕 𝒐𝒇 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔
Inventory Turnover Ratio = 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
𝑪𝒐𝒔𝒕 𝒐𝒇 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝒐𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔
4= 𝟏,𝟕𝟎,𝟎𝟎𝟎

Cost of revenue from operations = ₹ 6,80,000

14 ISC SPECIMEN ANSWER KEY 2025

SECTION C - 20 Marks
Question 15

(i) (b) or Double clicked [1]

(ii) (c) or the data records of the file are organized in the same order as the data entries [1]
of the index.

(iii) $ [1]

(iv) Shift + Spacebar [1]

(v) Back-end: It is an application where data is stored. For example: MS Access, Oracle, [1]
Excel

Question 16 [3]
(i)
Formula Function
1. The formula is like an equation in A function in Excel is a predefined
Excel which the user types. It can be calculation which is in-built in Excel.
any type of calculation depending on
the user’s choice.
2. Manually typing out a formula every Performing calculations are more
time a calculation needs to be comfortable and faster while working
performed is time consuming, Eg.= with functions. Eg.=SUM(A1:A3)
A1+A2+A3

(ii) The database testing process ensures that the correct and unique data (without bugs) is
delivered to the correct location. These bugs may cause serious issues like deadlock,
data corruption, poor performance, inconsistency, etc.

Question 17 (Any three) [6]
(i) = C4*90%
Or
= C4*0·9
Or
= (C4 - C4*10%)
Or
= (C4-C4*0·1)

(ii) = 9,000 + 9,000*10%
Or
= 9,000 + 9,000*0·1
Or
= 9,000 * 1·1
15 ISC SPECIMEN ANSWER KEY 2025

Or
110
= 9,000 * 100
(iii) 8,000* 110 = ₹ 8,000
100
(iv) = (B5 + C5 +D5 + E5) *10%
Or
= F5*10%

Question 18 (Any three)
(i) [2]
NULL value Zero and blank space
1. A NULL value is a value, which is Zero is a number, and a blank space
unavailable, unassigned, unknown or is treated as a character.
not applicable. It is used in the
absence of any value. Arithmetic
operations can be performed on it.
2. The NULL value can be treated as an A zero is a number and blank spaces
unknown and missing value. are treated as characters.
3. One NULL may not be the same as A blank space or a zero can be
another NULL. NULL indicates that compared to another blank space or a
no data has been provided or that no zero.
data exists.
(ii) 1. Primary storage [2]
2. Secondary storage
3. Tertiary storage
(iii) The statements like SELECT, INSERT, UPDATE, DELETE are used to manipulate [2]
the table.
(iv) The data-transfer rate is the rate at which data can be retrieved from or stored to the [2]
disk.

16 ISC SPECIMEN ANSWER KEY 2025

CISCE STUDY MATERIAL

ICSE ISC

INFORMATION CLASS STUDY MATERIAL

1 Time Table 9 Specimen Paper
10 Specimen Paper
2 Result
11 Specimen Paper
3 Syllabus 12 Specimen Paper

OTHER RESOURCES
10 Question Paper
Maps of India, Maps of World
Writing Skill Formats 12 Question Paper
Periodic Table
9/10 Lab Manuals
BOOKS 11/12 Lab Manuals
ICSE Class 10 Prescribed Books
ISC Class 12 Prescribed Books
ISC Class 12 Project Work

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