ACCOUNTS SAMPLE PAPER CLASS 12

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                                                         PART A
                     ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
                               PARTNERSHIP FIRMS AND COMPANIES

1.    loan by Partners have to be paid at the time of dissolution of partnership firm before
repayment of Partners' Capitals. Is it correct?

9. Interest on debentures is a charge against--------- and not an---------

3 Gary and Hary are partners sharing profits in the ratio of 3 : 2. They admit Mary as
partner for 1/5th share on 1st April, 2019. On that date, goodwill existed in the Balance
Sheet at 1,00,000
Pass the necessary Journal entry,

4. Harman, partner of the firm had given loan of 1,00,000 on 1st April, 2018. Interest
on loan was agreed at 10% p.a. as against 6% p.a. prescribed in the Partnership Act,
1932. What will be the amount of interest payable to Harman for the year ended
31st March, 2019?

5. Subscription received during the year ended 31st March, 2019 was 3,00,000.
Subscription Receivable (Opening) was 25,000 and Subscription Receivable (Closing)
was 45,000. What will be the amount of subscription credited to Income and
Expenditure Account for the year ended 31st March, 2019?

6. A partnership firm has 45 partners. It has to admit 7 more partners into partnership
It cannot admit more than 5 partners because-----------------

7. Amar, Raman and Sharvan are partners sharing profits in the ratio of 5: 3:2. They
decide to share profits equally w.e.f. Ist April 2019. They prepare Revaluation Account
as on that date which showed a loss of 1,35,000.
Pass the Journal entry to distribute the loss.

8. Kavita. Savita and Ritika are partners sharing profits in equal proportion Savita
retired from the firm on 1st April, 2019 on which date investments existed in the books
at 1.10,000 and had market value at 1,00,000. It also had Investment Fluctuation
Reserve of 70,000. How much amount will be credited to Savita's Capital Account?

9. Unrecorded asset of 30,000 is taken by a partner and also undertakes to pay his wife's
loan of? 10,000 in settlement of her loan of 40,000 at the time of firm's dissolution
How much amount will be transferred to Realisation Account?

10. When a partner is admitted, he is entitled to share of
(a) past profits.
(b) present profits.
(c) future profits.
(d) reserve appearing in the balance sheet of the firm.

11. Gaining ratio is calculated at the time of
(a) retirement of a partner only.
(b) death of a partner only.
(c) admission of a partner only.
(d) change in profit-sharing ratio/retirement/death of a partner.

12. Mother Ltd. forfeited 300 shares of 10 each, fully called-up, held by Ram for
non-payment of allotment money of 3 per share and final call money of 4 per share.
Out of these shares, 250 shares were reissued to Shyam for 2,000 as fully paid-up.
The gain on reissue is
(a) 900.
(b) 400.
(c) 750
(d) 250.

13. Nimit is admitted into partnership for 1/4th share. Capitals are to be proportionate
to profit-sharing ratio. If total capital of the firm is 4,50,000, Nimit will bring
(a)  1,50,000.
(b) 1,20,000.
(c) 1,12,500.
(d) 1,00,000.

14. Show how will be the following items dealt while preparing final accounts of Queen's
Club for the year ending 31st March, 2019:
Expenditure on construction of Building 3,60,000. The construction work is in progress
and has not yet completed.
Opening Capital Fund                                        10,80,000
Opening Building Fund                                       4,80,000
Donation received for Building                            6,00,000
Opening 10% Building Fund Investments           4,80,000
Interest received on Building Fund Investments : 48,000
Or
Distinguish between Receipts and Payments Account and Income and Expenditure
Account on the basis of
(a) Purpose;
(b) Nature of Items shown, and
(c) Adjustments.

15. A, B and C were partners sharing profits and losses in the ratio of 4: 3:2.
B retired when the capitals of A, B and C before the adjustments were
2,19,500,1.14,000 and 1,16,500 respectively. On the date of retirement, firm's
goodwill was valued at 2,16,000 and Loss on Revaluation of Assets and Reassessment
of Liabilities was 27,000, General Reserve 63,000 and the Cash and Bank Balance
on that date was 1,86,000. B was to be paid by amount brought by A and C in a
manner that their capitals become proportionate to their new profit-sharing ratio of
5:3. Calculate the amount to be paid or to be brought by the continuing partners if
minimum Cash and Bank Balance of 1,00,000 was to be maintained. All transactions
are through Bank. Pass the necessary Journal entries.

                                                    Or
A, B and C are partners in a firm. Net profit of the firm for the year ended 31st March,
2019 is 30,000, which was distributed among the partners in their agreed ratio of
3:1:1. It is noticed on 10th April, 2019 that the undermentioned transactions were not
passed through the books of account of the firm for the year ended 31st March, 2019.
(a) Interest on Capital @ 6% per annum, the capitals of A, B and C being 50,000;
40,000 and 30,000 respectively.
(b) Interest on drawings: A 350; B 250; C 150.
(c) Partners' Salaries: A 5,000; B 7,500.
(d) Commission due to A (for some special transaction) 3,000.

You are required to pass a Journal entry, which will not affect Profit and Loss Account
of the firm and rectify the position of partners inter se.

16. Sure Ltd. has an authorised capital of 20,00,000 divided into equity shares of
10 each. The company invited applications for 60,000 shares. Applications were
received for 58,000 shares.
All calls were made and were duly received except the final call of 3 per share on
2,000 shares. These shares were forfeited.
Present the share capital in the Balance Sheet of the company as per Schedule III of
the Companies Act, 2013.

17. (a) Kumar and Raja are partners in a firm sharing profits in the ratio of 7: 3. Their
fixed capitals were: Kumar 9,00,000 and Raja 4,00,000. The Partnership Deed
provided following:
(i) Interest on Capital @ 9% per annum.
(ii) Kumar's salary 50,000 per year and Raja's salary 3,000 per month.
But the profit for the year was distributed without providing for the above.
Profit for the year ended 31st March, 2019 was 2,78,000. Pass adjustment entry,
(b) Give any one distinction between sacrificing ratio and gaining ratio.

18. X and Y were partners in a firm, sharing profits in the ratio of 2 : 3. On 31st March,
2019, their Balance Sheet was as follows:

Liabilities	AMOUNT	Assets	AMOUNT
Creditors Workmen Compensation Reserve Capital A/cs  x                2,00,000  y               3,00,000	1,05,000 1,00,000 5,00,000 ---------------- 7,05,000	Bank Stock Furniture Computers Land and Building	1,55,000 1,00,000 1,00,000 50,000 3,00,000 ----------------- 7,05,000

The partners decided to dissolve the firm on 1st April, 2019. The assets and liabilities
were settled as follows:
(i) X agreed to take Land and Building at 3,50,000 against payment.
(ii) Stock was sold for 90,000.
(iii) Creditors accepted furniture and computers in full settlement of their claims.
Pass necessary Journal entries for dissolution of the firm.

19. On 1st June, 2018, Max Ltd. issued 6,000; 10% Debentures of 100 each at a discount
of 6% redeemable at a premium of 4%. It has a balance of 40,000 in Securities
Premium Reserve. Pass the Journal entries for issue of debentures and writing off
loss and prepare Loss on Issue of Debentures Account.

                                                              Or
(a) State the provisions of Debentures Redemption Reserve for companies that are
not exempt.
(b) State Bank of India issued 6,000; 10% Debentures of 100 each at a premium
of 5% on 1st June, 2019 redeemable at par on 31st August, 2020. The issue was
fully subscribed. Pass the necessary entries for issue and redemption of
debentures.

20. Following is the Receipts and Payments Account of Literacy Club for the year ended
31st March, 2019:.
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019

Receipts		Payments
To Balance b/f To Donation TO life membership fees To receipts from matches To subscriptions To locker rent To intersest on investment To sale of furniture (book value 1600) To entrance fees	20,000 1,00,000 8000 16000 10400 800 480 2000 6000 163680	By Building By Match Expenses by furniture By 10% investment By salaries 2018  4000                   2019  10000 By insurance By sundry expenses By balance c/f	1,08,000 900 5100 32000 14000 700 1940 1040 163680

.

Additional Information:
(i) Subscriptions outstanding on 31st March, 2018 were 200 and on 31st March,
2019 were 1,380.
(ii) Outstanding salaries for the year ended 31st March, 2019 were 800 and
outstanding sundry expenses were 600.
iii) Donation includes 20,000 for general donations and balance for building.
iv) 10%. Investments were purchased on 1st July, 2018
Prepare Income and Expenditure Account of the Club for the year ended
31st March, 2019

21. A. B and C are partners in a firm sharing profits and losses in the ratio of 3: 2:1
Their Balance Sheet as at 31st March, 2019 is as under:

Liabilities	Amount	Assests	amount
Creditors Bills payable General reserve Capital A/C A                               40000 B                               40000 C                               30000	30000 16000 12000 110000 168000	Cash Debtor                    25000 (-)provision              3000 Stock Furniture Machinery goodwill	18000 22000 18000 30000 68000 12000 168000

B retired on 1st April, 2019 on the following terms:
(1) Provision for Doubtful Debts will be raised by 1,000.
(ii) Stock will be reduced by 10% and Furniture by 5%.
(ii) There is an outstanding claim for damages of 1,100 and it is to be provided in
the books.
(iv) Creditors will be written back by 6,000.
(U) Machinery be reduced by 5%.
(ui) Out of the fire insurance premium paid during the year, 3,400 be carried forward
as prepaid.
(vii) Goodwill of the firm is valued at 24,000.
(viii) B is paid his dues with the amount brought in by A and C in a manner that their
capitals are in proportion to their new profit-sharing ratio of 3: 2.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of
the New Firm. An adjustment for goodwill is made at the time of retirement of B.

                                              Or
A and B are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet
as at 31st March, 2019 stood as under:

Liabilities	amount	Assets	amount
Capital A/C A                   35000 B                   30000 General reserve Bank loan creditors	65000 10000 9000 36000 120000	Machinery Furniture Investment Stock Debtor                                         19000 (-)provision for doubtful debt         2000 cash	33000 15000 20000 23000 17000 12000

On 1st April, 2019, they admitted C into partnership for 1/4th share in the profits on
the following terms:
(i) C brings capital proportionate to his share. He brings 7,000 in cash as his share
of goodwill.
(ii) All debtors are good.
(iii) Depreciate stock by 5% and furniture by 10%.
(iv) An outstanding bill for repairs 1,000 will be brought in the books.
(u) Half of the investments were to be taken over by A and B in their profit-sharing
ratio at book value.
(vi) Bank loan is paid off.
(vii) Partners agreed to share future profits in the ratio of 3 : 3:2.
(viii) A and B decided to allow a salary of 50,000 per annum for the extra efforts and
time devoted by him to the business,
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet after
admission of C into the partnership.

22. Sun Ltd. invited applications for 2,00,000 Equity Shares of 100 each at a premium
of 10 per share. The amount was payable as follows:
On application 40 per share (including premium), on allotment  30 per share and
the balance on first and final call.
Applications for 3,00,000 shares were received. Applications for 40,000 shares were
rejected and pro rata allotment was made to the remaining applicants. Ramesh who was
allotted 2,000 shares, failed to pay the allotment and first and final call money. His shares
were forfeited. The forfeited shares were reissued at 90 per share as fully paid-up.
Pass necessary Journal entries in the books of company if Calls-in-Arrears Account
is maintained

                                                                   Or
Sangam Ltd. invited applications for 80,000 equity shares of 10 each at par. The
amount was payable as follows:
On Application   : 2;
On Allotment     :  4; and
On First and Final Call  :4
Applications for 1,00,000 shares were received. Allotment was made on pro rata basis
to all the applicants. Excess money received on applications was adjusted on sums due
on allotment. Satnam, who had applied for 1,000 shares, failed to pay the allotment
money and his shares were immediately forfeited. Harnam did not pay the first and
final call on 800 shares allotted to him. His shares were also forfeited. All the forfeited
shares were reissued at 12 per share as fully paid-up.
Pass necessary Journal entries in the books of Sangam Ltd. for the above transactions
if Calls-in-Arrears Account is maintained.

                                                  PART B
                               ANALYSIS OF FINANCIAL STATEMENTS
23. What is the effect of Provision for Doubtful Debts on Quick Ratio?

24. Comparison of values of one period with those of another period for the same firm is
(a) Intra-firm comparison.
(b) Inter-firm comparison.
(c) Pattern comparison.
(d) Trend comparison.

25. While preparing Common-size Balance Sheet, each item of Balance Sheet is expressed as % of
(a) Non-current Assets.
(b) Current Assets.
(c) Non-current Liabilities.
(d) Total Assets.

26. Vertical analysis is conducted for two or more accounting periods. Is it correct? (1)

27. Why is short-term solvency of an enterprise important for creditors?

28. Is it correct that Dividend Paid is a Financing Activity for both Financial Companies
and Non-financial Companies?

29. In Cash Flow Statement, match the following activities:
(i) Receipt of Dividend.                       (a) Financing Activities
(ii) Purchase and sale of Securities,   (b) Investing Activities
by a Financing Company.
(iii) Buy-back of Own Shares.             (c) Operating Activities

30. (a) Calculate values of Opening and Closing Inventories from the following information:
Revenue from Operations: 6,00,000; Gross Profit Ratio = 25%. Inventory Turnover
Ratio = 5 Times. Closing Inventory is 12,000 more than the Opening Inventory.
(b) Net profit after interest and tax  1,00,000; Current Assets 4,00,000; Current
Liabilities 2,00,000; Tax Rate 20%; Fixed Assets 6,00,000; 10% Long-term debt
7 4,00,000.
Calculate Return on Investment.
                                                 Or
(a)  1,00,000 is Cost of Revenue from Operations (Cost of Goods Sold); Inventory
Turnover Ratio 4 times; Inventory in the beginning is 1.5 times more than the
Inventory at the end. Calculate values of Opening and Closing Inventory.
(b) From the following information, calculate Trade Receivables Turnover Ratio:
Cost of Revenue from Operations (Cost of Goods Sold): 6,00,000
Gross Profit on Cost: 25%
Cash Sales: 20% of Total Sales
Opening Debtors: 1,00,000
Closing Debtors : 2,00,000.

31. Prepare Common-size Balance Sheet from the following information:
                                  31st March( 2019)               2018

Shareholders' Funds    9,00.000                            6,00,000
Non-current Liabilities   3,00,000                           3,00,000
Current Liabilities         300000                              1,00,000
Non-current Assets      1050000                             700000
Current Assets             450000                               300000

                                                      Or
From the following Statement of Profit and Loss of the Sakhi Ltd. for the year ended
31st March, 2019, prepare Comparative Statement of Profit and Loss:

PARTICULAR	31 MARCH 2018	31 MARCH 2019
I REVENUE FROM OPERATIONS IIEXPENSES: EMPLOYEE BENEFIT EXPENSES (5% OF REVENUE FROM OPERATIONS ) OTHER EXPENSES III RATE OF TAX  35%	2500000 590000	4000000 680000

32. (a) From the following information, calculate Cash Flow from Investing Activities:

PARTICULAR	CLOSING BALANCES	OPENING BALANCES
Machinery (At cost) Accumulated Depreciation Patents	4,20,000 1,10,000 1,60,000	4,00,000 1,00,000 2,80,000

Additional Information:
(1) During the year, a machine costing 40,000 with its accumulated depreciation of
24,000 was sold at a profit of 25% of book value.
(ii) Patents were written off to the extent of 40,000 and some patents were sold at
a profit of 20,000.

(b) From the following information, calculate Cash Flow from Financing Activities:

Particulars	31st March, 2018)	31st March 2019)
Equity Share Capital 10% Debentures 8% Debentures	15,00,000 -- 2,00.000	10.00.000 1,00.000 ---

Additional Information:
(1) Interest paid on Debentures 10,000
(ii) Dividend paid 50,000.
(iii) During the year 2018-19, company issued bonus shares in the ratio of 2 : 1 by
capitalising reserve.

SAMPLE PAPER 2

                                                           PART A
ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
PARTNERSHIP FIRMS AND COMPANIES

1. Premium for Goodwill paid privately by the gaining partner to the sacrificing partner
is not recorded in the books of account of the firm because

2. At the time of dissolution of afirm, entry is not passed for asset given in settlement
of liability because--------------------

3. Ankur, who retired as partner of the firm took firm's car valued at 5,00,000
(Book Value) against his dues. Pass the Journal entry.

4. Loan by the spouse of the partner is not transferred to Realisation Account. Is it
correct?

5. Chaman withdrew 2,00,000 against capital besides withdrawing 10,000 every month
at the end of the month. If interest on drawings is charged @ 8% p.a., what will be the
amount of interest?

6. Hari and Pari are partners sharing profits in the ratio of 3 : 2. Their Partnership Deed
provided as follows:
(i) Salary to each partner 1,00,000 p.a.
(ii) Transfer to General Reserve 10% of net profit.
Net profit for the year was 2,50,000. How much amount will be transferred to General
Reserve?

7. Rohit and Virat were partners sharing profits equally. They admit Rishab as partner
for equal share who is unable to bring his share of goodwill of 1,00,000. Pass the
Journal entry

8. Sunil and Sudhir sharing profits in the ratio of 3 : 2. They admit Sanju as partner and
decide to share future profits equally. What will be the sacrifice and/or gain of Sunil and
Sudhir?

9. Minimum price at which forfeited shares can be reissued is-----

10. Subscription received during the year is  20,000; amount received in advance for the
next year is  1,200; amount outstanding for the current year is 1,600. Amount of
Subscription to be credited to the Income and Expenditure Account is
(a)  16.000.
(b) 20,400.
(c) 16,800.
(d) 18,400.

11. X and Y are partners with capitals of 1,30,000 and 90,000 respectively. They admit
Z as a partner for 1/5th share in the profits of the firm. Z brings  80,000 as his capital
for his share. Value of goodwill is
(a)  4,00,000.
(b)  1.80,000.
(c) 1,00.000.
(d) 2,40,000.

12. Sagar Ltd. has 8,00,000, 9% Debentures of 100 each of which half the amount is due
for redemption at a premium of 5%. The company has in its Debentures Redemption
Reserve Account a balance of 40,000. State the amount required to be transferred
to Debentures Redemption Reserve.
(a)  4.00,000
(b) 2,00,000
(c) 1,60,000
(d) 8,00,000

13. Firm's assets shall be applied first in payment of
(a) Partner's debts to third parties.
(b) Partner's Loans.
(c) Partner's Capital.
(d) Firm's Debt.

14. How are the following items dealt while preparing the final accounts of Youth Club
for the year ending 31st March, 2019:
Expenditure on construction of Building 6,00,000. The construction work is in progress
and has not yet completed.

Particular	amount
(a)Openeing building fund	800000
(b)opening 10%building fund investment	800000
(c)donation for building fund	1000000
(d)interest received on building fund investment	80000
(e)opening capital fund	1800000
(f)Subscription for governer party received	40000
(g)outsding subscription for governer party	10000

(Or
From the following information, determine the amount to be debited to Stationery
Account in Income and Expenditure Account for the year ended 31st March, 2019:
Stock of Stationery on 1st April, 2018                                                    60.000

Creditors for Stationery on 1st April, 2018                                             40,000

Amount paid for Stationery during the year ended 31st March, 2019   2,16,000
Stock of Stationery on 31st March, 2019                                                10,000

Creditors for Stationery on 31st March, 2019                                         26,000

Also, show the above items in the Income and Expenditure Account for the year ended
31st March, 2019 and in the Balance Sheet as at that date.

15. Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of
3:2:2: 1. On 1st February, 2019, Guru retired and the new profit-sharing ratio
decided among Kavi, Ravi and Kumar was 3:1:1. On Guru's retirement, goodwill of
the firm was valued at 3,60,000.
Showing your working notes, pass necessary Journal entry in the books of the firm
for the treatment of goodwill on Guru's retirement.

16. Kumar, Kanwar and Kavita were partners in a firm sharing profits and losses equally.
The firm was engaged in the storage and distribution of canned juice and its godowns
were located at three different places in the city. Each godown was being managed
individually by each partner. Because of increase in business activities at the godown
managed by Kanwar, he had to devote more time. Kanwar demanded that his share
in the profits of the firm be increased, to which Kumar and Kavita agreed. The new
profit-sharing ratio was agreed to be 1:2:1. For this purpose, goodwill of the firm was
valued at two years' purchase of the average profits of last five years. The profits of
the last five years were as follows:

Year	I	II	III	IV	V
Profit	4,00,000	4,80,000	7,33,000	(33,000) Loss	2,20,000

You are required to:
(a) Calculate the goodwill of the firm.
(6) Pass necessary Journal entry for the treatment of goodwill on change in
profit-sharing ratio of Kumar, Kanwar and Kavita.
(c) Give the Working of Gaining/Sacrificing Ratio.
                                          Or

X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5: 3: 2.
As there was lack of faith and understanding among the partners, the firm was
continuously running into losses. As a result, they decided to dissolve partnership firm
on 31st March, 2019. X was deputed to realise the assets and pay the liabilities. X was
paid ? 10,000 as remuneration for his services. The financial position of the firm was
as follows:

Liabilities	Amount	Assets	amount
Creditors Investment fluction reserve Capital a/c X   400000 Y   300000	100000 45000 700000 845000	Furniture Stock Investment Cash at bank Z,s capital	370000 55000 150000 90000 180000 845000

Following was agreed upon:
(1) X took over investments for 1,25,000. Stock and furniture realised ? 4,15,000
(it) There was an old furniture which had been written off from the books. Y ageed
to take the same at the value of 30,000.
(ii) Compensation paid to the employees was ? 80,000. This liability was not provided
in the above Balance Sheet.
(iv) Realisation expenses were 10,000.
Prepare Realisation Account and Partners' Capital Accounts.

17. (a) Mohan Ltd. took over assets of 10,80,000 and liabilities of 80,000 of Sohan Ltd.
at a value of 9,60,000 payable as ? 2,40,000 by cheque and the balance by
issuing 10% Debentures of 100 each at a premium of 20%. Calculate the number
of Debentures to be issued.

(b) X Ltd. purchased machinery from Y Ltd. and payment was made as follows:
(i) By issuing 10,000 equity shares of 10 each at a premium of 10%;
(ii) By issuing 200, 9% Debentures of 100 each at a discount of 10%;
(iii) Balance by accepting a bill of exchange of 50,000 payable after one month.
Journalise these transactions in the books of X Ltd.

18. On 31st March, 2019, the Balance Sheet of Pooja, Qureshi and Ross, who were partners
in a firm was as under:

Liabilities	Amount	Assets	amount
Capital           pooja 150000                    Quershi 100000                        Ross 100000 General reserve  Sundry creditors	350000 200000 250000 800000	Building Investment Quesrshi loan Debtor Stock cash	260000 110000 100000 150000 120000 60000 800000

Qureshi died on 1st July, 2019. Profit-sharing ratio of the partners was 2:1:1. On
the death of a partner, the Partnership Deed provided for the following:
(1) His share in the profits of the firm till the date of his death will be calculated on
the basis of average profits of last three completed years.
(ii) Goodwill of the firm will be calculated on the basis of total profit of last two years.
(iii) Interest on loan given by the firm to a partner will be charged at the rate of
6% p.a. or 4,000, whichever is more.
(iv) Profits for the last three years were  45,000; 18,000 and 33,000.
Prepare Qureshi's Capital Account to be rendered to his executors.

19. On 31st March, 2019, Green Ltd. had the following balances in its books:
9% Debentures                                                          6,00,000
Debentures Redemption Reserve                                 50,000
Debentures Redemption Investment                             45,000
General Reserve                                                        1,00,000

On that date, the company decided to transfer ? 50,000 to Debentures Redemption
Reserve out of General Reserve and balance from Surplus, i.e., Balance in Statement
of Profit and Loss to redeem debentures of ? 3,00,000. The company also decided to
 transfer proportionate amount out of Debentures Redemption Reserve to General
Reserve after redemption.
Pass necessary Journal entries in the books of the company.

                                                              Or
Strong Ltd. issued 10,000; 10% Debentures of 100 each at 5% premium, repayable at
10% premium after two years. It has balance in Securities Premium Reserve of 20,000.
Pass the Journal entries for issue and redemption of debentures in the books of
company.

20. From the following information prepared from Cash Book of Gymkhana Club, prepare
Income and Expenditure Account for the year ended on 31st March, 2019 and Balance
Sheet as on that date:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Adjustments:

Receipts	Amount	Payments	amount
To balance b/d To annual subscription To life membership fess To entrance test To interest on investment (investment on 31st march 2018 10000) To sundry receipts	4800 6520 1000 4960 570 320 18170	By general expenses By salaries and wages By furniture By rent and taxes By stationery By balance c/d	2160 2200 3200 2240 500 7870 18170

(a) Annual Subscription 1,200 is outstanding.
(b) General expenses 450 is outstanding and wages 800 outstanding.
(c) The opening and closing balances of stationery are 2,000 and 750 respectively.
(d) Depreciate furniture by 500.
(e) Life Membership Fee will be capitalised.
(f) Accrued interest on investment 190.

21. Sun & Moon Ltd. having a nominal capital of 30,00,000, divided into shares of 100
each. It offered for public subscription 20,000 shares payable as 20 on application;
30 on allotment and the balance in two calls of  25 each. Applications were received
by the company for 24,000 shares. Applications for 20,000 shares were accepted in full
and the shares allotted. Applications for the remaining shares were rejected and the
application money was refunded.
Amounts due were received with the exception of the final call on 600 shares which
were forfeited after legal formalities were fulfilled. 400 shares of the forfeited shares
were reissued at 90 per share.
Record necessary Journal entries and prepare the balance sheet showing the amount
transferred to Capital Reserve and the balance in Forfeited Shares Account. Assume
that company maintains Calls-in-Arrears Account,
                                 Or
Record the Journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of 10 each,  7 called up on which the shareholder had
paid application and allotment money of 5 per share. Amount not received on call
is transferred to Calls-in-Arrears Account Out of these, 15 shares were reissued
to Naresh as 7 per share paid-up for 8 per share.
5/5
(b) Y Ltd. forfeited 90 shares of 10 each,  8 called-up issued at a premium
2 per share to 'R' for non-payment of allotment money of  5 per share (including
premium). Out of these, 80 shares were reissued to Sanjay as  8 called-up for
 10 per share.
(e) Z Ltd. forfeited 50 shares of 100 each issued at 10% premium (to be paid at the
time of allotment) for non-payment of first call of 30 per share. The second and
final call of 20 per share was not yet made. 20 of these shares were reissued at
80 paid-up for 30 per share. .

22. Mada and Mo are partners in a firm sharing profits and losses in the ratio of
3:2. Their Balance Sheet as on 31st March, 2019 is as follows:

Liabilities	Amount	Assets	Amount
Creditors Workmen compensation reserve General reserve Madan’s capital Mohan capital	28000 12000 20000 60000 40000 160000	Cash at bank Debtor                                        65000 (-)provision for doubtful debt        5000 Stock Investment patent	10000 60000 30000 50000 10000 160000

The partners agreed to take Gopal as a partner for 1/4th share with effect from
1st April, 2019 on the following terms:
(a) Gopal shall bring * 25,000 as his share of premium for goodwill.
(b) That unaccounted accrued income of 500 be provided for.
(c) Market value of the investments was 45,000.
(d) A debtor whose dues of 1,000 were written off as bad debts paid  800 in full
settlement.
(e) A claim of 2,000 on account of workmen's compensation to be provided for.
() Patents are undervalued by 5,000.
(g) Gopal to bring in capital equal to 1/4th of the total capital of the new firm after
all adjustments.
Prepare Revaluation Account, Capital Accounts of the Partners and the Balance Sheet
of the new firm.

                                           Or
A, B and C were partners in a firm sharing profits in 3:2:1 ratio. On 31st March
2016, B retired. On the date of his retirement, the balance in his Capital Account was
33,50,000. The other assets and liabilities of the firm on that date were as follows:
Cash  1,50,000; Building  10,00,000; Plant and Machinery ?4,00,000; Stock
2,00,000; Debtors2,00,000; and Investments 3,00,000.

Following was agreed among the partners on B's retirement:
(a) Building to be appreciated by 20%.
(6) Plant and Machinery to be depreciated by 10%.
(c) A provision of 5% on debtors to be created for doubtful debts.
(d) Stock was to be valued at 1,80,000 and Investments at 3,50,000.
(el An old photocopier previously written off was sold for 20,000.
Partners had to pay 50,000 to the family of an employee who died in an accident.
(g) B was paid 1,00,000 in cash and the balance in three equal yearly instalments
with interest @10% p.a. starting from 31st March, 2017.

Pass the necessary Journal entries to record the above adjustments, prepare B's Loan
Account till it is finally paid. The firm closes its book on 31st March every year. (8)

                                              PART B
                    ANALYSIS OF FINANCIAL STATEMENTS
23. Analysis of Financial Statements is based on past records because------

24. Provision for Doubtful Debts is deducted from Current Assets to calculate Current
Ratio because--------------

25. The relationship between Net Profit before interest, tax and dividend and capital
employed is known from
(a) Current Ratio.
(b) Quick Ratio.
(c) ROI.
(d) Net Profit Ratio.

26. Premium received on shares issued by a finance company is shown under Operating
Activity. Is it correct?

27. Long-term solvency of a company is assessed by calculating
(a) Debt-Equity Ratio.
(b) Working Capital Turnover Ratio.
(e) Return on Investment Ratio.
(d) Current Ratio.

28. Comparative Balance Sheet is analysis of Balance Sheet which is used for comparing
Assets, Equity and Liabilities------------------for two or more accounting periods.

29. Aakash Ltd, sold building for 7,50,000 which was purchased for 5,00,000. The profit
of 2,50,000 was transferred to Statement of Profit and Loss. It is----from
Net Profit and shown as----------in Cash Flow Statement.

30.from the following information ,prepare comparative statement of profit and loss account

Particular	31st march 2018	31st march 2019
Revenue from operations Cost of material consumed Other expenses As of(revenue from operation less cost of material consumed) Income tax	600000 60% of revenue from operation 20% 40%	900000 50% of revenue from operations 15% 40%

31. (a) X Ltd. has a Current Ratio of 3 : 1 and Quick Ratio of 1.2: 1. If the Working Capital
is  1,80,000, calculate value of Current Assets and Inventory.
(b) From the following information, calculate Inventory Turnover Ratio:
Revenue from Operations : 4,00,000;
Gross Profit: 25% of Cost;
Inventory in the beginning is 1/3rd of the Closing Inventory which is 30% of
Revenue from Operations.

                                              Or
From the following information, calculate Net Profit Ratio:
Revenue from Operations                                         10,00,000
Gross Profit                                                                 4,00,000
Salaries and Wages                                                       90,000
Advertisement Expenses                                               20,000
Interest                                                                          10,000
Rent (Income)                                                             1,20,000

32.balance sheet of new light ltd for the year ended 31^st march 2019 as follows:

                                    Balance sheet of new light ltd

particular	Note no	31st march 2019	31st march2018
1.equity and liabilities   1.shareholder fund (A) share capital (b) reserve and surplus 2non current liabilities Long term borrowing 3.current liabilities (a) trade payables (b) short term provisions Total II assets 1.non current assets (a)fixed assets (tangible)  (b)non-current investment Current assets (a) current investment (b)inventories (c) trade receivables (d) cash and cash equivalent total	1 2 3 4	2250000 1890000 1350000 670000 50000 6210000 1600000 300000 85000 1050000 2275000 900000 6210000	2250000 1780000 -- 840000 375000 5245000 2000000 250000 95000 1200000 1050000 650000 5245000

Notes to account

Particular	31st march 2019	31st march 2018
1.reserve and surplus   General reserve Surplus i.e balance in statement of profit and loss 2.long term borrowing 1350;10%debentures of 1000 each 3.short term provisions     Provisions for tax 4.fixed tangible(tangible) Land and building Plant and machinery	1550000 340000 1350000 50000 800000 800000	1500000 280000 -- 375000 1000000 1000000

Additional information

(i)provision for tax made during the year was 45000

(ii) land and building of book value 400000 was sold at a profit of 10%

(iii) the rate of depreciation on plant and machinery is 10%.part of machinery was of 10%

(iv)10% debeneture have been issued on 31 st march 2019

Prepare cash flow statement