Q2
mcq
1 mark
A and B were partners in a firm. They admitted C as a new partner for $\frac{1}{3}$rd share in the profits of the firm which he acquired
- A. $\frac{2}{1}$
- B. $\frac{4}{1}$
- C. $\frac{3}{1}$
- D. $\frac{6}{1}$
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Q2
mcq
1 mark
will be :
- A. $\frac{3}{2}$
- B. $\frac{3}{1}$
- C. $\frac{2}{1}$
- D. $\frac{4}{3}$
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Q3
mcq
1 mark
B and D were partners. According to the provisions of partnership deed, interest on B's capital for the year ended 31.03.2022 was calculated at $\lt 4{,}000$. The necessary journal entry for transfer of this interest to Profit and Loss Appropriation Account will be :
- A. Profit and Loss Appropriation A/c Dr. $\lt 4{,}000$ To B Capital A/c $\lt 4{,}000$
- B. Profit and Loss Appropriation A/c Dr. $\lt 4{,}000$ To A/c $\lt 4{,}000$
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Q4
mcq
1 mark
In which of the following cases is the business of a firm not dissolved compulsorily ?
- A. When all but one partner becomes insolvent.
- B. When the business of the firm becomes illegal.
- C. When there is a change in profit sharing ratio between existing partners.
- D. When a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India.
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Q5
mcq
1 mark
K and L were partners in a firm. Their partnership deed provided that interest on drawings was calculated at $\langle 900$. The necessary journal entry for charging interest on drawings will be :
- A. Profit and Loss Appropriation A/c Dr. $\langle 900$ To Interest on Drawings A/c $\langle 900$
- B. Interest on Drawings A/c Dr. $\langle 900$ To Profit and Loss Appropriation A/c $\langle 900$
- C. A/c Dr. $\langle 900$ To Interest on Drawings A/c $\langle 900$
- D. Interest on Drawings A/c Dr. $\langle 900$ To A/c $\langle 900$
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Q5
mcq
1 mark
C and D were partners in a firm. E was admitted as a new partner for $\frac{1}{6}$ share. E acquired $\frac{1}{3}$rd of his share from C and the remaining from D. The sacrificing ratio of C and D was :
- A. 1 : 2
- B. 1 : 1
- C. 16 : 9
- D. 2 : 1
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Q6
mcq
1 mark
S and T were partners in a firm sharing profits and losses in the ratio of 3 : 2. There existed a provision for bad and doubtful debts of $\langle$ 7,000. It was decided to write off $\langle$ 3,000 as bad debts. The remaining debtors were considered as good. The amount to be debited/credited to Revaluation Account on account of the above treatment will be :
- A. Debit $\langle$ 3,000
- B. Credit $\langle$ 4,000
- C. Debit $\langle$ 7,000
- D. Debit $\langle$ 4,000
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Q7
mcq
1 mark
A partner firm's books at the time of dissolution had sundry creditors of $\langle 45,000$ and provision for doubtful debts of $\langle 8,000$. The amount that will be credited in the cash account for closing sundry creditors account is :
- A. $\langle 45,000$
- B. $\langle 37,000$
- C. $\langle 8,000$
- D. $\langle 53,000$
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Q7
mcq
1 mark
On the dissolution of a partnership firm there existed a balance of $\langle$ 45,000 in Sundry Debtors Account and a balance of $\langle$ 8,000 in Provision for Bad Debts Account in the books of the firm. The amount by which Sundry Debtors Account will be closed by transferring to Realisation Account will be :
- A. $\langle$ 45,000
- B. $\langle$ 37,000
- C. $\langle$ 8,000
- D. $\langle$ 53,000
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Q8
mcq
1 mark
After doing the adjustments regarding drawings $\langle$ 40,000, share of profit $\langle$ 24,000 and the additional capital introduced $\langle$ 32,000, the capital of Ashok, a partner, as on 31.03.2022 was $\langle$ 5,00,000. His capital as on 01.04.2021 was :
- A. $\langle$ 4,84,000
- B. $\langle$ 5,16,000
- C. $\langle$ 4,46,000
- D. $\langle$ 5,96,000
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Q9
mcq
1 mark
Josh and Jeevan were partners in a firm. During the year ended 31.03.2022 Jeevan withdrew $\langle 5,000$ per month starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which interest is to be charged is:
- A. 6 months
- B. 6$\frac{1}{2}$ months
- C. 4$\frac{1}{2}$ months
- D. 5 months
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Q10
mcq
1 mark
X and Z were partners in a firm with capitals of $\langle$ 45,000 each. They admitted Y as a new partner for $\frac{1}{3}$rd share in the profits of the firm. Y brought $\langle$ 60,000 as his capital contribution. On the basis of the firm’s profit share and his capital contribution, the goodwill of the firm will be :
- A. $\langle$ 1,80,000
- B. $\langle$ 1,50,000
- C. $\langle$ 30,000
- D. $\langle$ 90,000
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Q10
mcq
1 mark
X and Z were partners in a firm with capitals of $\langle 45,000$ each. They admitted Y as a new partner for $\frac{1}{3}$rd share in the profits of the firm. Y brought $\langle$ amount not fully visible in the excerpt. On admitting Y in the firm and his capital contribution, the goodwill of the firm will be:
- A. $\langle 1,80,000$
- B. $\langle 1,50,000$
- C. $\langle 30,000$
- D. $\langle 90,000$
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Q11
mcq
1 mark
C, D and E were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted F as a new partner for $\frac{1}{4}$ share in the profits. The new profit sharing ratio of C, D, E and F will be:
- A. 5 : 2
- B. 5 : 3
- C. 10 : 3
- D. 20 : 4
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Q12
mcq
1 mark
K.C. Ltd. took over office furniture of $\langle 90,000$, office equipment of $\langle 1,80,000$ from J.C. Ltd. and its liabilities of $\langle 20,000$ for a purchase consideration of $\langle 3,60,000$. The payment to J.C. Ltd. was made by issue of 9% debentures of $\langle 50$ each at a discount of 10%. The number of debentures issued will be:
- A. $\langle 36,000$
- B. $\langle 40,000$
- C. $\langle 27,000$
- D. $\langle 90,000$
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Q14
mcq
1 mark
On 1st April, 2022, Zaira Ltd. issued 5000, 8% Debentures of $\langle 100$ each at 5% premium, redeemable at a premium of 10% after 3 years. The total interest due on debentures for the year ending 31st March, 2023 will be:
- A. $\langle 40,000$
- B. $\langle 25,000$
- C. $\langle 50,000$
- D. $\langle 75,000$
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Q14
mcq
1 mark
The total interest due on debentures for the year ending 31st March, 2023 will be:
- A. $40,000
- B. $25,000
- C. $50,000
- D. $75,000
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Q15
mcq
1 mark
On redemption of debentures, in the name of the debit side of the Profit and Loss Account, which of the following amount will be transferred?
- A. $\langle 75,000$
- B. $\langle 40,000$
- C. $\langle 50,000$
- D. $\langle 25,000$
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Q15
mcq
1 mark
which of the following amount ?
- A. $75,000
- B. $40,000
- C. $50,000
- D. $25,000
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Q18
short answer
3 marks
On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of $6,00,000$, $6,00,000$ and $3,00,000$ respectively. The partnership deed provided for the following:
(i) Interest on capital @ 10% per annum.
(ii) Interest on drawings @ 12% per annum.
(iii) An annual salary of $1,20,000$ to Avi.
(iv) Profits and losses were to be shared in the ratio of their capitals.
The net profit of the firm for the year ended 31.03.2023 was $3,08,000$.
$4,800$, Kavi $4,200$ and Avi $3,000$.
Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023.
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Q20
long answer
3 marks
On 01.04.2021, Aman Ltd. purchased from Kamal Ltd. Machinery $5,00,000, Furniture $3,00,000 and Land and Building $40,00,000. It also took over the sundry creditors of Kamal Ltd. of $8,00,000. The purchase consideration was $36,00,000. Payment to Kamal Ltd. was made by issue of 9% Debentures of $100 each at a discount of 10%. On 31.03.2022, the company decided to write off the provisions of Companies Act, 2013.
Pass necessary journal entries for the above transactions in the books of Aman Ltd.
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Q21
long answer
3 marks
On 01.04.2021, Bain Ltd. purchased from Cayres Ltd., Machinery at $17,00,000 and Land and Building at $40,00,000. It also took over its liabilities amounting to $7,00,000. The purchase consideration of $60,00,000 was paid as follows: $5,00,000 through a cheque and the balance by issue of 9% debentures of $100 each at a premium of 10%.
Pass necessary journal entries for the above transactions in the books of Bain Ltd.
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Q21
long answer
4 marks
MM Ltd. is registered with an authorised share capital of $10,00,00,000$ divided into 1,00,00,000 equity shares of $10$ each. The company invited applications for issuing 10,00,000 equity shares. The amount per share was payable as follows:
On Application - $3$ per share
On Allotment - $4$ per share
On First and Final Call - $3$ per share
The issue was fully subscribed. All calls were made and were duly received except the first and final call on 1000 shares.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III Part I of the Companies Act, 2013 and also prepare the Notes to Accounts.
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Q22
long answer
4 marks
B, C and D were partners in a firm sharing profits and losses in the ratio of $3:5:2$. On 31.03.2022 their Balance Sheet was as follows:
Balance Sheet of B, C and D as at 31st March, 2022
Liabilities Amount $\ $ Assets Amount $\ $
Creditors 1,10,000 Building 2,00,000
Reserve Fund 60,000 Machinery 3,00,000
Capitals: Stock 2,10,000
B 3,00,000 Debtors 80,000
C 2,50,000 Bank 80,000
D 1,50,000
7,00,000 8,70,000 8,70,000
On 01.10.2022, C's share was valued at $1,87,500$. The revaluation of assets and reassessment of liabilities resulted into a loss of $10,000$. The partnership deed provided that on the death of a partner, his share of profit till the date of his death was calculated at $70,000$.
Prepare C's Capital Account to be presented to his executors at the time of his death.
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Q23
short answer
6 marks
Pass necessary journal entries for the issue of debentures in the books of YK Ltd. :
(i) Issued 500, 9% debentures of $1,000 each at par, redeemable at par.
(ii) Issued $20,00,000, 10% debentures at 6% discount, redeemable at par.
(iii) Issued 2000, 8% debentures of $100 each at a discount of 2%, redeemable at a premium of 4%.
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Q24
long answer
6 marks
M, S and R were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31.03.2022, their Balance Sheet was as follows :
Balance Sheet of M, S and R as at 31st March, 2022
Liabilities Amount $ Assets Amount $
Creditors 80,000 Fixed Assets 1,20,000
Capitals : Stock 70,000
M 60,000 Debtors 20,000
S 50,000 Bank 60,000
R 30,000 1,40,000
Profit and Loss A/c 50,000
2,70,000 2,70,000
On the above date the firm was dissolved. Fixed assets realised $1,20,000 and stock realised $10,000. Debtors were realised at their book value and liabilities were paid in full.
Prepare Realisation Account and Partners' Capital Accounts.
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Q26
long answer
6 marks
26.(a)A and B were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 31.03.2022, their Balance Sheet was as follows :
Balance Sheet of A and B as at 31st March, 2022
Liabilities Amount < Assets Amount <
Outstanding Expenses 3,000 Bank 40,000
Bills Payable 20,000 Stock 60,000
Sundry Creditors 1,40,000 Bills Receivable 70,000
General Reserve 80,000 Debtors 1,00,000
Capitals : Less : Provision for doubtful Debts 5,000 95,000
A 2,00,000 Furniture 85,000
B 3,00,000 5,00,000 Machinery 1,10,000
Land and Building 2,83,000
7,43,000 7,43,000
On the above date, C was admitted as a new partner for 5/1 share in the profits on the following terms :
(i) C will bring < 2,00,000 as her capital and < 1,60,000 as her share of goodwill premium.
(ii) Stock will be appreciated by < 1,500.
(iii) Debtors of < 5,000 will be written off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.
Prepare Revaluation Account and Partners 6
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Q26
long answer
(b) B, P and T were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.03.2022, their Balance Sheet was as follows :
Balance Sheet of B, P and T as at 31st March, 2022
Liabilities Amount < Assets Amount <
Creditors 1,40,000 Bank 1,44,000
General Reserve 2,00,000 Stock 66,000
Compensation Fund 90,000 Debtors 1,50,000
Capitals : Less : Provision for Doubtful Debts 20,000 1,30,000
B 4,00,000 Furniture 70,000
P 2,00,000
T 1,00,000 7,00,000
Machinery 2,20,000
Land and Building 5,00,000
11,30,000 11,30,000
On the above date, B retired from the firm on the following terms :
(i) Goodwill of the firm will be valued at
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Q27
long answer
6 marks
CCL Ltd. invited applications for issuing 75,000 equity shares of $10 each at a premium of $3 per share.
The amount was payable as follows :
On Application $2 per share
On Allotment $6 per share (including premium)
On First Call $3 per share
On Second and Final Call Balance
Applications for 1,20,000 shares were received. Application for 45,000 shares were rejected and the excess application money was refunded. Full allotment was made to remaining applicants. All moneys due were received except for Harish, a shareholder holding 2000 shares, who failed to pay the first and second and final call money.
Pass necessary journal entries for the above transactions in the books of the company.
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Q27
mcq
1 mark
Which of the following is a method of financial statement analysis?
- A. Statement of Profit and Loss
- B. Balance Sheet
- C. Ratio Analysis
- D. Both (a) and (b)
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Q27
mcq
1 mark
If the Operating Ratio of Pathway Ltd. is 30%, its Operating Profit Ratio will be:
- A. 100%
- B. 30%
- C. 130%
- D. 70%
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Q27
mcq
1 mark
Computer-related peripherals and their network is known as which of the following components of Computerised Accounting System?
- A. Procedure
- B. Data
- C. Hardware
- D. Software
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Q27
mcq
1 mark
Which of the following functions automatically totals a column or row of values?
- A. AVG
- B. TOTAL
- C. SUM
- D. ADD
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Q28
long answer
6 marks
Pass necessary journal entries for the forfeiture and reissue of shares in the following cases :
(i) CC Ltd. forfeited 10,000 shares of $10 each, $8 called up, for non-payment of allotment money of $3 per share and first call of $3 per share. Out of these, 2000 shares were reissued for $7 per share, $8 paid up.
(ii) GG Ltd. forfeited 2000 shares of $10 each fully called up, issued at a premium of 10% on which only application money of $3 per share was received. Out of these, 500 shares were re-issued at $11 per share, fully paid up.
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Q28
mcq
1 mark
Which of the following is not a Solvency Ratio?
- A. Interest Coverage Ratio
- B. Return on Investment
- C. Debt to Capital Employed Ratio
- D. Total Assets to Debt Ratio
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Q28
mcq
1 mark
Which of the following are known as Efficiency Ratios?
- A. Liquidity Ratios
- B. Solvency Ratios
- C. Activity Ratios
- D. Profitability Ratios
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Q28
mcq
1 mark
Which of the following menu is used to create a ledger in Tally?
- A. Gateway of Tally > Master > Accounting information > Ledger > Alter
- B. Gateway of Tally > Master > Accounting information > Ledger > Create
- C. Gateway of Tally > Master > Accounting information > Ledger > Display
- D. Gateway of Tally > Create > Master > Edit > Accounting information > Ledger
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Q29
mcq
1 mark
Which of the following transaction does not result in inflow or outflow of cash and cash equivalents?
- A. Collection of cash from trade receivables
- B. Payment to trade payables
- C. Cash received on maturity of marketable securities
- D. Payment to employees
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Q29
mcq
1 mark
A sequential code refers to code applied to some documents where:
- A. account heads are assigned to documents.
- B. special names are given to documents.
- C. documents are arranged in special sequence.
- D. numbers and letters are assigned in consecutive order.
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Q30
mcq
1 mark
Which of the following is not included in cash and cash equivalents?
- A. Demand deposits with banks
- B. Short-term marketable securities
- C. Cheques in hand
- D. Trade receivables
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Q30
mcq
1 mark
Entries required to make Trading account and Profit and Loss account are known as:
- A. Opening entries
- B. Adjustment entries
- C. Closing entries
- D. (a) and (b) both
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Q31
short answer
3 marks
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013: (a) Computer Software (b) Work-in-Progress (c) Calls in Advance
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Q31
short answer
3 marks
areclassified in accounting software.
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Q32
short answer
3 marks
Explain three features of Computerised Accounting System.
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Q33
long answer
4 marks
(a) Correct # the computer screen while working on a spreadsheet ? How can it be corrected ?
OR
(b) State the steps to be taken in preparation of a chart.
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Shobha started a small enterprise selling hand-knitted sweaters under increasing. On 1st April, 2020, she along with twelve other like-minded persons decided to form Shobha Ltd. The Balance Sheet of Shobha Ltd. as at 31st March, 2022, is given below. Balance Sheet of SHOBHA Ltd. as at 31st March, 2022 Particulars Note No. 31.3.2022 31.3.2021 I Equity and Liabilities: 1. (a) Equity Share Capital 8,00,000 6,00,000 (b) Reserves and Surplus 1 2,00,000 50,000 2. Non-Current Liabilities Long-term Borrowings 2 4,00,000 3,00,000 3. Current Liabilities (a) Trade Payables 40,000 45,000 (b) Bank Overdraft 1,00,000 85,000 (c) Short-term Provisions 3 30,000 20,000 Total 15,70,000 11,00,000 II Assets: 1. Non-Current Assets Fixed Assets (i) Tangible Assets 4 6,00,000 5,00,000 (ii) Intangible Assets 5 50,000 2. Current Assets (a) Inventories 5,00,000 4,00,000 (b) Trade Receivables 4,00,000 90,000 (c) Cash and Cash Equivalents 70,000 60,000 Total 15,70,000 11,00,000 Notes: 1. Surplus in Statement of Profit and Loss 2,00,000 50,000 2. 10% Debentures 4,00,000 3,00,000 3. Tax Provisions 30,000 20,000 4. Tangible Assets: Machinery 7,00,000 6,50,000; Less: Accumulated Depreciation (1,00,000) (1,50,000); 6,00,000 5,00,000 5. Intangible Assets: Goodwill 50,000 (i) A machine costing $1,60,000$ was sold at a loss of $20,000$. During the year, depreciation of $40,000$ was charged. (ii) $1,00,000$, 1
Q34
long answer
6 marks
Read the following hypothetical text and answer the given questions on this basis: Shobha started a small enterprise selling hand-knitted sweaters under increasing. On 1st April, 2020, she along with twelve other like-minded persons decided to form Shobha Ltd. The Balance Sheet of Shobha Ltd. as at 31st March, 2022, is given below. From the figures given in the Balance Sheet and additional information, calculate the following ratios.
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Q34
long answer
6 marks
Name and explain the financial function which will be used to know the constant payments and rate of interest.
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Q38
short answer
2 marks
From the following information, calculate Operating Ratio: Revenue from Operations: $10,00,000$ Cost of Revenue from Operations: $4,00,000$ Selling expenses: $80,000$ Administrative expenses: $1,20,000$
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Q39
short answer
2 marks
From the following details, calculate Interest Coverage Ratio: Net Profit before Tax: $2,00,000$ 10% Long term debt: $5,00,000$ Tax rate 40%
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Q40
short answer
4 marks
The Current Ratio of Zenith Ltd. is 2 : 1. State giving reasons, which of the following transactions will improve, reduce or not change the current ratio: (i) Payment to creditors $20,000$ (ii) Purchased goods on credit $80,000$ (iii) Cash received from debtors $15,000$ (iv) Issue of equity shares $5,00,000$
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Q47
mcq
1 mark
A cell reference that holds either row or column constant when the formula or function is copied to another location is known as :
- A. Range
- B. Absolute cell reference
- C. Relative cell reference
- D. Mixed cell reference
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