Q1
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 be debited by:
- A. <3,00,000
- B. <2,00,000
- C. <1,00,000
- D. <22,00,000
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Q2
mcq
1 mark
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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Q3
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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Q4
mcq
1 mark
At the time of change in profit sharing ratio among existing partners, Reserves are transferred to Partners' Capital Accounts in the following ratio:
- A. Sacrificing ratio
- B. Gaining ratio
- C. Old profit sharing ratio
- D. New profit sharing ratio
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Q5
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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Q5
mcq
1 mark
Assertion (A) : Interest on partners' loan is transferred to Profit and Loss Appropriation Account.
Reason (R) : Interest on partners' loan is a charge against profits.
On the basis of the above Assertion (A) and Reason (R), choose the correct option from the following :
- A. Assertion (A) is correct and Reason (R) is wrong.
- B. Assertion (A) is wrong and Reason (R) is correct.
- C. Both Assertion (A) and Reason (R) are correct.
- D. Both Assertion (A) and Reason (R) are wrong.
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Q6
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. Interest on partners capital will be:
- A. <15,000
- B. <9,000
- C. Nil
- D. <6,000
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Q7
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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Q8
mcq
1 mark
A share of <10 issued at a premium of <2 per share on which <8 per share (including premium) have been called and <6 per share (including premium) is received, is forfeited. Share Capital Account
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Q8
mcq
1 mark
Sunbeam Limited issued 4,000, 6% Debentures of < 100 each at < 95 per debenture. 6% Debentures account will be credited by:
- A. < 3,80,000
- B. < 4,40,000
- C. < 4,00,000
- D. < 20,000
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Q10
mcq
1 mark
The final amount of profit distributed among the partners after adjustment of guaranteed amount will be :
- A. Anu < 50,000; Charu < 25,000; Divya < 75,000
- B. Anu < 55,000; Charu < 30,000; Divya < 65,000
- C. Anu < 57,000; Charu < 28,000; Divya < 65,000
- D. Anu < 45,000; Charu < 30,000; Divya < 75,000
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Q11
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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Q12
mcq
1 mark
Average capital employed in a firm is < 3,00,000. The normal rate of interest is 20% and the firm’s average profit is < 80,000. Value of goodwill by capitalisation of super profits method is :
- A. < 8,00,000
- B. < 1,00,000
- C. < 2,00,000
- D. < 6,00,000
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Q13
mcq
1 mark
Jeevan Ltd. forfeited 50 shares of < 100 each on which allotment money of < 30 per share (including premium of < 10 per share) and first call of < 30 per share was not received. The second and final call of < 20 per share was not received. The amount to be credited to Share Forfeiture Account will be :
- A. < 2,500
- B. < 2,000
- C. < 5,000
- D. < 1,500
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Q14
mcq
1 mark
A portion of the called-up capital which has been actually received from the shareholders is termed as :
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Q15
mcq
1 mark
If a fixed amount is withdrawn by a partner at the end of each quarter, for:
- A. 4$\frac{1}{2}$ months
- B. 9 months
- C. 6 months
- D. 3 months
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Q16
mcq
1 mark
Mehak and Chehak were partners with capitals of $\<40{,}000$ each. They admitted Aadi as a new partner for $\frac{1}{5}$ share in the profits of the firm. Aadi brought $\<40{,}000$ as his capital and $\<10{,}000$ as premium for goodwill. The Old Profit and Loss Account of the firm showed a debit balance of $\<10{,}000$. Value of goodwill of the firm was:
- A. $\<2{,}50{,}000$
- B. $\<2{,}40{,}000$
- C. $\<2{,}30{,}000$
- D. $\<4{,}00{,}000$
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Q17
short answer
3 marks
Raman, Manan and Naman were partners sharing profit in the ratio of 2 : 1 : 1. Raman withdrew $\<3{,}000$ every month and Manan withdrew $\<4{,}000$ 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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Q18
short answer
3 marks
A company forfeited 4,000 shares of $10 each fully called-up, on which application money of $3 each has been paid. Out of these, 2,000 shares were reissued as fully paid up for $18,000. Pass necessary journal entries for above transactions.
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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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Q19
long answer
3 marks
Kanak, Kamal and Kanha are partners in a firm. Their fixed capitals were $5,00,000, $10,00,000 and $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. Sales and Profit for the year 2020-21 were $20,00,000 and $2,00,000 respectively. Sales from 1st April, 2021 to 30th September, 2021 were $6,00,000. Calculate Kanak's share of profit up to the date of death and pass necessary journal entries.
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Q20
short answer
3 marks
M Ltd. issued 10,000, 8% Debentures of $\<100$ each at 6% discount. The amount was payable as $\<60$ 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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Q20
long answer
3 marks
A and B are partners in a firm sharing profits in the ratio of 3 : 2. C is admitted into the firm for $1/4$ share in profits. The total capital of the firm is agreed upon as $2,00,000$ and C is to bring in cash equivalent to $1/4$ of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective share in profits. The capitals of A and B after all adjustments are $60,000$ and $45,000$ respectively. Calculate the new capitals of A and B and pass necessary journal entries.
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Q21
long answer
4 marks
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 20,000 Debtors 2,00,000 Capitals : Less provision 10,000 1,90,000 Ravi 4,00,000 Cash 70,000 Kavi 3,00,000 Chand 1,00,000 8,00,000 9,10,000 9,10,000 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 $22,000 not recorded in the books. (iii) Ravi paid off one of the creditors $20,000 in settlement of his amount of $30,000. (iv) Remaining creditors were paid in cash. Prepare Realisation Account.
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Q22
long answer
4 marks
On 1st April, 2021, Vishwas Ltd. was formed with an authorised capital of $10,00,000$ divided into $1,00,000$ equity shares of $10$ each. The company issued a prospectus inviting applications for $90,000$ equity shares. Applications were received for $85,000$ shares. $3,000$ shareholders holding $2$ shares each did not pay the first and final call. Their shares were forfeited. Show 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
long answer
On 1st April, 2021, Vishwas Ltd. was formed with an authorised capital of 10,00,000 divided into 1,00,000 equity shares of 10 each. The company issued a prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. Shyam, holding 3,000 shares, did not pay the first and final call of 2 per share. His shares were forfeited.
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Q23
long 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 till the date of death on the basis of last 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.
Amount to be rendered to her executors.
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Q24
long answer
6 marks
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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Q25
long answer
6 marks
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
General Reserve 25,000 Less provision 5,000 80,000
Capitals: Stock 1,30,000
A 1,60,000 Investments 60,000
B 1,40,000 Furniture 77,000
3,00,000 3,67,000 3,67,000
On 1st April 2022, they decided to admit C as a new partner for 1/5 sha
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Q25
long answer
6 marks
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
General Reserve 25,000 Less provision 5,000 80,000
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 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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Q27
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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Q27
mcq
1 mark
How many logical values can be entered into a logical function ?
- A. 255
- B. 127
- C. 31
- D. 15
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Q28
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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Q28
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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Q28
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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Q29
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 $<1,00,000$
- B. Issue of $9\%$ debentures $<4,00,000$
- C. Issue of bonus shares $<3,00,000$
- D. Payment of creditors $<50,000$
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Q29
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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Q29
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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Q29
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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Q30
mcq
1 mark
Which of the following is not:
- A. Gross Profit Ratio
- B. Return on Investment
- C. Proprietary Ratio
- D. Operating Ratio
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Q30
mcq
1 mark
Which o
- A. Cash Flow Statement
- B. Statement of Profit and Loss
- C. Balance Sheet
- D. Both (a) and (b)
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Q30
mcq
1 mark
From the following, identify the Accounting information sub-system which deals with payment of wages and salaries to employees :
- A. Tax accounting sub-system
- B. Expense accounting sub-system
- C. Cost accounting sub-system
- D. Payroll accounting sub-system
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Q31
long answer
4 marks
On 1st April, 2022, Smith Ltd. acquired assets of $80,00,000 from Bharat Ltd. and took over its liabilities of $10,00,000 for a purchase consideration of $72,00,000. $10,00,000 was paid by issuing a bank draft in favour of Bharat Ltd., $8,00,000 by accepting a Bill of Exchange drawn upon them by Bharat Ltd. payable after four months and the balance by issuing 11% debentures at a discount of 10%. Pass the necessary journal entries for the above transactions in the books of Smith 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) Public Deposits
(ii) Income received in advance
(iii) Loose Tools
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Q31
short answer
3 marks
Differentiate between generic software and specific software on any three bases.
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Q32
short answer
2 marks
On 1st April, 2021, Bingo Ltd. issued $20,00,000, 9% debentures of $100 each at a premium of 10%, redeemable at a premium of 5%. Pass the necessary journal entries for issue of debentures in the books of Bingo Ltd.
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Q32
short answer
3 marks
Identify the process and state two objectives of the process identified above.
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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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Q34
long answer
Read the following hypothetical text and answer the given question on this basis:
Azad, inspired -in- -up in the
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,
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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: 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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