Q1
mcq
1 mark
Keshav and Karan were partners in a firm sharing profits equally. The capitalised value of average profits of the firm was $18,00,000$. Assets of the firm were $20,00,000$ (excluding goodwill) and Liabilities were $5,00,000$. The value of goodwill of the firm by capitalisation of average profits method will be :
- A. $2,00,000$
- B. $3,00,000$
- C. $4,00,000$
- D. $3,50,000$
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Q2
mcq
1 mark
A and B were partners in a firm sharing profits and losses in the ratio of $3:2$. On 1st April, 2021 the balances in their capital accounts were $1,50,000$ and $2,00,000$ respectively. The partnership deed provided that interest on partners capital will be allowed @ $10\%$ per annum. During the year ended 31st March, 2022, the firm incurred a loss of $10,000$. A's share of loss will be :
- A. $15,000$
- B. $9,000$
- C. Nil
- D. $6,000$
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Q2
mcq
1 mark
_________ is the basis of relationship between the partners to run the partnership business.
- A. Offer
- B. Agreement
- C. Understanding
- D. Acceptance
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Q2
mcq
1 mark
At the time of change in profit sharing ratio among existing partners, Reserves are transferred to Partners
- A. Sacrificing ratio
- B. Gaining ratio
- C. Old profit sharing ratio
- D. New profit sharing ratio
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Q3
mcq
1 mark
(i) Mehak and Ravish were partners in a firm. On dissolution of the firm, the loan given by Mehak to the firm was < 30,000, by Ravish was < 15,000, and by Mrs. Ravish was < 10,000. The first payment will be made for :
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Q3
mcq
1 mark
(ii) Surbhi and Leena were partners in a firm sharing profits and losses in the ratio of 5 : 3. Ashi was admitted as a new partner for 1/4 share in the profits of the firm. Ashi acquired 3/5 of her share from Surbhi. From the following, how much share did Ashi acquire from Leena :
- A. 1/10
- B. 3/20
- C. 2/5
- D. 3/8
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Q4
mcq
1 mark
Sunbeam Ltd. issued 20,000, 11% debentures of < 100 each at a premium of 10%, redeemable at a premium of 5%. The Loss on Issue of Debentures Account will debited by :
- A. < 3,00,000
- B. < 2,00,000
- C. < 1,00,000
- D. < 22,00,000
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Q4
mcq
1 mark
(ii) Nargis Ltd. purchased assets of < 8,00,000 and took over liabilities of < 2,00,000 from Gauri Ltd. The payment was made by issue of 8% Debentures of < 100 each at a premium of 20%. Number of debentures issued will be :
- A. 50,000
- B. 5,000
- C. 6,000
- D. 6,00,000
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Q5
mcq
1 mark
Which of the following statements about subscribed capital is true?
- A. It is a portion of the uncalled capital to be called only in the event of winding up of the company.
- B. It is a part of the subscribed capital which has been called-up on the shares.
- C. It is that portion of the called-up capital which has been actually received from the shareholders.
- D. It is that part of the authorised capital that is actually issued to the public for subscription.
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Q5
mcq
1 mark
It is a portion of the uncalled capital to be called only in the event of winding up of the company.
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Q6
mcq
1 mark
Gopal, Krishna and Govind are partners sharing profits and losses in the ratio of 5 : 4 : 3. Krishna retired on 1st April, 2022. Gopal and Govind purchased her share of profits by paying < 1,20,000. Gopal and Govind contributed < 80,000 and < 40,000 respectively. The gaining ratio will be :
- A. 5 : 3
- B. 4 : 3
- C. 1 : 1
- D. 2 : 1
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Q6
mcq
1 mark
Gopal, Krishna and Govind are partners sharing profits and losses in the ratio of 5 : 4 : 3. Krishna retired on 1st April, 2022. Gopal and Govind purchased her share of profit by giving her $1,20,000, $80,000 being paid by Gopal and $40,000 by Govind. The gaining ratio will be :
- A. 5 : 3
- B. 4 : 3
- C. 1 : 1
- D. 2 : 1
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Q8
mcq
1 mark
A share of $100 on which $70 has been received is forfeited for non-payment of final call of $30. The minimum price at which this share can be re-issued is :
- A. $70
- B. $30
- C. $100
- D. $130
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Q11
mcq
1 mark
Vikram and Sumit were partners in a firm sharing profits and losses in the ratio of 2 : 1. The capitals of Vikram and Sumit after all adjustments were $50,000$ and $40,000$ respectively. They admitted Jayant as a partner for $\frac{1}{3}$ share in the profits of the firm. Jayant brought proportionate capital in the firm. The amount of capital brought in by Jayant was :
- A. < 45,000
- B. < 30,000
- C. < 60,500
- D. < 90,000
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Q12
mcq
1 mark
Rhythm Ltd. took over assets of $30,00,000$ and liabilities of $12,00,000$ of Shyam Ltd. for a purchase consideration of $23,00,000$. Excess value of purchase consideration of $5,00,000$ over net assets will be :
- A. Debited to Goodwill Account
- B. Credited to Capital Reserve Account
- C. Credited to V Account
- D. Debited to Capital Reserve Account
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Q13
mcq
1 mark
Isha and Naman were partners in a firm sharing profits and losses in the ratio of 2 : 3. With effect from 1st April, 2022 they agreed to share profits or sacrifice will be :
- A. Sacrifice $\frac{1}{10}$
- B. Gain $\frac{1}{10}$
- C. Sacrifice $\frac{2}{5}$
- D. Gain $\frac{2}{5}$
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Q14
mcq
1 mark
A partnership firm has capital employed of $6,00,000$. Its average profits are $80,000$. The normal rate of return in similar type of business is 10%. The amount of super profits are :
- A. < 60,000
- B. < 8,000
- C. < 20,000
- D. < 52,000
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Q15
mcq
1 mark
On 1st April, 2021, Narmada Ltd. issued 5,000, 8% Debentures of $\langle 100$ each at a premium of 10%. The total amount of interest on debentures for the year ending 31st March, 2022 will be :
- A. $\langle 25,000$
- B. $\langle 20,000$
- C. $\langle 50,000$
- D. $\langle 40,000$
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Q16
mcq
1 mark
Sunbeam Limited issued 4,000, 6% Debentures of $\langle 100$ each at $\langle 95$ per debenture. 6% Debentures account will be credited by :
- A. $\langle 3,80,000$
- B. $\langle 4,40,000$
- C. $\langle 4,00,000$
- D. $\langle 20,000$
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Q17
short answer
3 marks
Kanak, Kamal and Kanha are partners in a firm. Their fixed capitals were $\langle 5,00,000$, $\langle 10,00,000$ and $\langle 15,00,000$ respectively. They share profits in the ratio of their fixed capitals. Firm closes its books of accounts on 31st March every year. Kanak died on 30th September, 2021. Kanak's share of profit till the date of death from the last Balance Sheet date, was to be calculated on the basis of sales. Sales and Profit for the year 2020-21 were $\langle 20,00,000$ and $\langle 2,00,000$ respectively. Sales from 1st April, 2021 to 30th September, 2021 were $\langle 6,00,000$.
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Q18
short answer
3 marks
(a) M Ltd. issued 10,000, 8% Debentures of $\langle 100$ each at 6% discount. The amount was payable as $\langle 60$ on application and the balance on allotment. All money was duly received. Pass necessary journal entries in the books of M Ltd.
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Q18
short answer
3 marks
OR (b) A company forfeited 4,000 shares of $\langle 10$ each fully called-up, on which application money of $\langle 3$ each has been paid. Out of these, 2,000 shares were reissued as fully paid up for $\langle 18,000$. Pass necessary journal entries for above transactions.
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Q19
long answer
3 marks
(a) Raman, Manan and Naman were partners sharing profit in the ratio of 2 : 1 : 1. Raman withdrew $\langle 3,000$ every month and Manan withdrew $\langle 4,000$ every month. Interest on drawings @ 6% p.a. was charged whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error.
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Q19
short answer
3 marks
Arun and Barun were partners sharing profits in the ratio of 3 : 2. Their capitals were $50,000 and $30,000 respectively. Partnership deed provided for interest on capital @ 6% p.a. to Arun and Barun and quarterly salary of $1,000 to Barun. Arun had given a loan of $1,00,000 on 1st October, 2021 to the firm without any agreement about interest. For the year 2021-22, the profits earned were $26,800. Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.
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Q20
short answer
3 marks
Vanshika and Shikha were partners in a firm with capitals of $1,00,000$ and $80,000$ respectively. They admitted Nisha on 1st April, 2022 as a new partner for $1/4$ share in the future profits of the firm. Nisha brought $90,000$ as her capital. Nisha acquired her share equally from Vanshika and Shikha. Calculate the value of goodwill of the firm and pass necessary entries for her admission, if Nisha did not bring her share of goodwill premium in cash. Show the working clearly.
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Q21
short answer
4 marks
Pawan Ltd. was registered with an authorised capital of $10,00,000$ divided into 1,00,000 equity shares of $10 each. The company offered to the public for subscription, 80,000 equity shares. The amount per share was payable as follows: On application $3$, On allotment $2$, On first call $3$ and On second and final call the balance. The issue was fully subscribed and all amounts due were received except the first and final call money on 2,000 shares allotted to Chavi. Her shares were forfeited. Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.
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Q22
short answer
Pass necessary journal entry for recording Kanak's share of profit.
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Q22
short answer
Ravi, Kavi and Chand were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2022, their Balance Sheet was as follows: Balance Sheet of Ravi, Kavi and Chand as on 31st March, 2022 Liabilities Amount Assets Amount Sundry Creditors 70,000 Land and Building 3,50,000 Chand 20,000 Stock 3,00,000 Mrs. Chand's Loan 20,000 Debtors 2,00,000 Capital: Provision for Doubtful Debts 10,000 1,90,000 Ravi 4,00,000 Kavi 3,00,000 Chand 1,00,000 8,00,000 9,10,000 9,10,000
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Q22
long answer
4 marks
The firm was dissolved on the above date.
(i) Land and Building and Stock were sold for $6,00,000. Debtors were realised at 10% less than the book value.
(ii) Mrs. Chand settled her debt by giving a computer worth $22,000 which was not recorded in the books.
(iii) Ravi paid off one of the creditors amounting to $20,000 in settlement of his amount of $30,000.
(iv) Remaining creditors were paid in cash.
Prepare Realisation Account.
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Q23
long answer
6 marks
(b) Tulip Ltd. invited applications for issuing 2,40,000 equity shares of $10 each at a premium of $4 per share. The amount was payable as under:
On application $4 per share (including premium $2)
On allotment $4 per share
On first and final call $6 per share (including premium $2)
Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money received with applications was adjusted towards sums due on allotment. All moneys were duly received except from Rohini who had applied for 7,500 shares, and failed to pay allotment and first and final call.
Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-arrears and Calls-in-advance account, wherever necessary.
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Q24
long answer
6 marks
(a) On 31st March, 2022 the Balance Sheet of partners A and B, who were sharing profits in the ratio of 3 : 2 was as follows:
Balance Sheet of A and B as at 31st March, 2022
Liabilities Amount < Assets Amount <
Creditors 30,000 Cash at Bank 20,000
Investment Fluctuation Fund 12,000 Debtors 85,000
Less provision 5,000 80,000
General Reserve 25,000
Capitals : Stock 1,30,000
A 1,60,000
Investments 60,000
B 1,40,000
3,00,000 Furniture 77,000
3,67,000
3,67,000
On 1st April 2022, they decided to admit C as a new partner for $\tfrac{1}{5}$ share in the profits on the following terms:
(i) C brought $1,00,000 as his Capital and $50,000 as his share of Premium for Goodwill.
(ii) One month salary $2,000 was outstanding.
(iii) The market value of investments was $50,000.
(iv) A debtor, whose dues were written off as bad debts, paid $12,000 in full settlement.
Prepare Revaluation Account and Partners Capital Accounts.
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Q24
short answer
6 marks
Anita, Geeta and Sita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follow : Balance Sheet of Anita, Geeta and Sita as at 31st March, 2022 Liabilities Amount < Assets Amount < Capitals : Land and Building 4,80,000 Anita 2,00,000 Investments 1,20,000 Geeta 2,00,000 Sita 1,00,000 5,00,000 Debtors 1,50,000 General Reserve 30,000 Less Provision 10,000 1,40,000 Creditors 5,00,000 Stock 1,20,000 Cash at Bank 1,70,000 10,30,000 10,30,000 On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities as follows : (i) Goodwill of the firm was valued at < 3,00,000. (ii) Land and Building was to be appreciated by < 1,23,000. (iii) Bad debts amounted to < 20,000. A provision for doubtful debts was to be maintained at 10% on debtors. (iv) Anita was paid < 80,000 immediately by cheque. The balance amount was transferred to her loan account which was to be paid in two equal annual instalments along with interest @ 10% p.a.
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Q25
short answer
6 marks
Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows : Balance Sheet of Trisha, Anisha and Rishika as at 31st March, 2022 Liabilities Amount < Assets Amount < Capitals : Plant and Machinery 5,00,000 Trisha 3,00,000 Stock 1,00,000 Anisha 2,00,000 Rishika 1,00,000 6,00,000 Debtors 60,000 General Reserve 50,000 Cash at Bank 40,000 Creditors 50,000 7,00,000 7,00,000 Trisha died on 31st July, 2022. According to the partnership deed, the executors of the deceased partner were entitled to : (i) (ii) Salary @ < 15,000 per quarter. (iii) Share of goodwill calculated on the basis of twice the average of past (iv) Share of profits from the closure of the last accounting year 2019 20, 2020 21 and 2021 22 were < 1,00,000, < 2,00,000 and < 1,50,000 respectively. (v) Trisha withdrew < 20,000 on 1st May, 2022 for her personal use. Showing rendered to her executors. 6
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Q27
mcq
1 mark
From the following a legend can be repositioned on a chart :
- A. On the corner only
- B. Anywhere
- C. On right-side only
- D. On the bottom of x-axis
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Q27
mcq
1 mark
Which of the following are the five pillars of computerised accounting system :
- A. Data, Report, Ledger, Hardware, Software
- B. Data, People, Procedure, Hardware, Software
- C. People, Procedure, Ledger, Data, Chart of Accounts
- D. Data, Coding, Procedure, Rules, Output
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Q28
mcq
1 mark
During the year ended 31st March, 2022, Shradha Ltd. earned net profit of $<15,00,000$ before interest and tax. The company has a 10% long term debt of $<50,00,000$. The tax rate is 40%. The Interest Coverage Ratio of the company will be :
- A. 2 times
- B. 3 times
- C. 1.2 times
- D. 1.5 times
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Q28
mcq
1 mark
Which of the following menu is used to create a group :
- A. Gateway to Tally > master > accounting information > display
- B. Gateway to Tally > master > edit > accounting information
- C. Gateway to Tally > master > accounting information > create
- D. Gateway to Tally > master > alter > accounting information
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Q29
mcq
1 mark
Which of the following transactions would result in inflow of cash and cash equivalents :
- A. Furniture costing $<80,000$ sold for $<75,000$
- B. Issue of bonus shares $<5,00,000$
- C. Payment to trade payables $<15,000$
- D. Provided depreciation on fixed assets $<11,000$
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Q29
mcq
1 mark
From the following, identify the Accounting information sub-system which generates periodic reports about sales and collections made :
- A. Cash and Bank sub-system
- B. Sales and Accounts Receivable sub-system
- C. Inventory sub-system
- D. Budget sub-system
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Q30
mcq
1 mark
Which of the following transactions is not related to cash flows from investing activities :
- A. Purchase of marketable securities $<25,000$
- B. Sale of land $<2,80,000$
- C. Sale of investments $<3,00,000$
- D. Purchase of equipment $<1,00,000$
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Q30
mcq
1 mark
Absence of data items is represented by one of the special values from the following i.e. :
- A. Single value
- B. Stored value
- C. Multi value
- D. Null value
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Q30
mcq
1 mark
The process of comparing input data with some unknown data is called :
- A. Storage data
- B. Information data
- C. Data entry
- D. Data validation
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Q31
long answer
6 marks
Lotus Ltd. invited applications for issuing 80,000 equity shares of $10 each at a premium of $4 per share. The amount was payable as follows:
On application $5 per share and
On allotment $9 per share (included premium).
Applications were received for 1,40,000 shares and allotment was made to all applicants on pro-rata basis. Money overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for 1,400 shares, failed to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at $9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Lotus Ltd.
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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. (i) Mining Rights (ii) Income received in advance (iii) Capital work in progress
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Q32
short answer
3 marks
Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective utilisation of resources.
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Q32
short answer
3 marks
Explain the following two features of Computerised Accounting System : (i) Simple and integrated (ii) Accuracy and speed
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Q33
long answer
4 marks
(a) Calculate Gross Profit Ratio from the following information : Average Inventory $<1,60,000$; Inventory Turnover Ratio 8 times, Average Trade Receivables $<2,00,000$; Trade Receivables Turnover Ratio 6 times and Cash Sales 25% of Total Sales. OR (b) From the following information, calculate Working Capital Turnover Ratio : Capital Employed $<1,00,000$ Non-Current Assets $<80,000$ Cost of Revenue from Operations $<3,20,000$ Gross Profit Ratio 20%
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Q33
long answer
4 marks
(a) State the steps to be taken in preparation of a chart.
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Q33
long answer
4 marks
(b) What is meant by Accounting Cycle ? State its basic phases.
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The company has been earning good revenue consistently. The financial position of Azad Ltd. as at 31st March, 2022 was as follows : Balance Sheet of Azad Ltd. as at 31st March, 2022 Particulars Note No. 31.3.2022 31.3.2021 I Equity and Liabilities : 1. (a) Share Capital 19,00,000 17,00,000 (b) Reserves and Surplus 1 6,00,000 3,00,000 2. Non-Current Liabilities Long-term Borrowings 2 5,00,000 4,00,000 3. Current Liabilities (a) Short-term Borrowings 3 1,70,000 1,75,000 (b) Short-term Provisions 4 2,00,000 1,65,000 Total 33,70,000 27,40,000 II Assets : 1. Non-Current Assets (a) Fixed Assets (i) Tangible Assets 5 24,00,000 19,00,000 (ii) Intangible Assets 6 4,00,000 3,00,000 (b) Non-current Investments 1,00,000 2,00,000 2. Current Assets (a) Current Investments 1,40,000 1,70,000 (b) Inventories 2,60,000 1,30,000 (c) Cash and Cash Equivalents 70,000 40,000 Total 33,70,000 27,40,000 Notes to Accounts: (1) Reserves and Surplus 6,00,000 3,00,000 (Surplus i.e. Balance in Statement of Profit and Loss) (2) Long-term Borrowings 12% Debentures 5,00,000 4,00,000 (3) Short-term Borrowings Bank Overdraft 1,70,000 1,75,000 (4) Short-term Provisions Provision for Tax 2,00,000 1,65,000 (5) Tangible Assets Machinery 26,00,000 20,00,000 Less Accumulated Depreciation (2,00,000) (1,00,000) 24,00,000 19,00,000 (6) Intangible Assets Goodwill 4,00,000 3,00,000 Additional Information : (i) 1,00,000, 12% Debentures were issued on 1st April, 2021. (ii) A piece of machinery costing 80,000 on which accumulated depreciation was 40,000, was sold at a gain of 10,000.
Q34
long answer
6 marks
Read the following hypothetical text and answer the given question on this basis: The company has been earning good revenue consistently. The financial position of Azad Ltd. as at 31st March, 2022 was as follows: Balance Sheet of Azad Ltd. as at 31st March, 2022. Calculate cash flows from Investing Activities and Financing Activities.
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Q34
long answer
6 marks
Name the financial function which returns accrued interest on a bond with 5% coupon rate and where issue and settlement date of investment is also given. Also explain its syntax.
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Q36
long answer
3 marks
On 1st October, 2021 Pihu Ltd. issued 15,00,000, 9% Debentures of <20 each at a discount of <6 per debenture. The company had a balance of < on the same date. On 31st March, 2022 the company decided to write off discount on issue of debentures according to the provisions of Companies Act, 2013.
Pass necessary journal entries for issue of debentures and writing off discount on issue of debentures.
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Q37
long answer
3 marks
On 1st April, 2021, Soma Ltd. purchased land from Mona Ltd. Soma Ltd. issued a cheque of <10,00,000 and accepted a bill of exchange payable after 6 months for <5,00,000 in favour of Mona Ltd. The balance amount was paid by issuing 5,000, 10% Debentures of <100 each at par.
Pass the necessary journal entries in the books of Soma Ltd. for the above transactions.
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Q38
mcq
1 mark
The Debt-Equity Ratio of a company is 2 : 1. Which of the following transactions will increase the Debt-Equity Ratio ?
- A. Issue of shares of <1,00,000
- B. Issue of 9% debentures of <4,00,000
- C. Issue of bonus shares of <3,00,000
- D. Payment of creditors of <50,000
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