Model Paper 5 Accountancy - Model Paper 5

On dissolution of the firm, amount received from sale of unrecorded asset is credited to:

The document that contains the terms of partnership is called:

X Ltd. issued a prospectus inviting applications for 10,000 shares of ₹ 50 each at a premium of ₹ 20 per share, payable as follows:
On Application - ₹ 10 (including ₹ 4 premium)
On Allotment - ₹ 20 (including ₹ 5 premium)
On First Call - ₹ 30 (including ₹ 6 premium)
On Second & Final Call - Balance Amount
A shareholder holding 1,000 shares failed to pay the first call and second & final call money and his shares were forfeited after the final call.
In the entry for forfeiture of shares, Share Capital Account will be debited with:

Calculate capital employed by Liabilities Side Approach and Assets Side Approach from the following Balance Sheet:

Liabilities		₹	Assets	₹
Capital A/cs:			Land and Building	3,00,000
Gaurav	2,00,000		Goodwill	60,000
Ashish	2,00,000	4,00,000	Investments (Trade)	1,00,000
Reserves		1,80,000	Stock	1,00,000
Sundry Creditors		1,80,000	Sundry Debtors	1,40,000
Outstanding Expenses		20,000	Cash at Bank	60,000
			Deferred Revenue Expenditure: Advertisement Suspense	20,000
		7,80,000		7,80,000

What is the minimum time interval between two consecutive calls according to Table F of Schedule I?

Raj Ltd. purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchange and for the balance the company issued 9% Debentures of ₹ 100 each at a premium of 10% in favour of M/s. Furniture Mart.
Pass necessary Journal entries in the books of Raj Ltd.

Rahul and Mohit were partners in a firm. Their partnership deed provided that the profits shall be divided as follows:
First ₹ 20,000 to Rahul and the balance in the ratio of 4 : 1. The profits for the year ended 31^st March, 2023 were ₹ 60,000 which had been distributed among the partners. On 1-4-2022 their capitals were Rahul ₹ 90,000 and Mohit ₹ 80,000. Interest on capital was to be provided @ 6% p.a. While preparing the profit and loss appropriation interest on capital was omitted.
Pass necessary rectifying entry for the same. Show your workings clearly.

D, E and F were partners in a firm sharing profits in the ratio of 5 : 7 : 8. Their fixed capitals on 1^st April, 2022 were D - ₹ 5,00,000, E - ₹ 7,00,000 and F - ₹ 8,00,000.
Their partnership Deed provided for the following:
i. Interest on capital @10% p.a.
ii. Salary of ₹ 10,000 per month to F.
iii. Interest on drawing @12% p.a.
D withdrew ₹ 40,000 on 30^th April, 2022; E withdrew ₹ 50,000 on 30th June 2022 and F withdrew ₹ 30,000 on 31^st March, 2023.
During the year ended 31^st March, 2023 the firm earned a profit of ₹ 3,50,000.
Prepare the Profit and Loss Appropriation Account for the year ended 31^st March, 2023.

Record necessary journal entries to realize the following unrecorded assets and liabilities in the books of Paras and Priya:
i. There was old furniture in the firm which had been written off completely in the books. This was sold for ₹ 3,000,
ii. Ashish, an old customer whose account for ₹ 1,000 was written-off as bad in the previous year, paid 60%, of the amount,
iii. Paras agreed to take over the firm's goodwill (not recorded in the books of the firm), at a valuation of ₹ 30,000,
iv. There was an old typewriter that had been written off completely from the books. It was estimated to realize ₹ 400. It was taken away by Priya at an estimated price less 25%,
v. There were 100 shares of ₹ 10 each in Star Limited acquired at a cost of ₹ 2,000 which had been written off completely from the books. These shares are valued @ ₹ 6 each and divided among the partners in their profit sharing ratio.

A Company invited applications for 5,000 shares of ₹ 100 each. The amount is payable as follows:

On Application	₹ 20 per share
On Allotment	₹ 30 per share
On First Call	₹ 20 per share
On Second and Final Call	₹ 30 per share

Applications were received for 8,000 shares. Applications for 1,000 shares were rejected and pro-rata allotment was made to the remaining applicants.
All calls were made and duly paid except:
i. Govind, the holder of 200 shares paid the two calls with allotment.
ii. Sanjay, the holder of 300 shares failed to pay the first and second call money.
Pass necessary journal entries to record the above transactions.

P Ltd. issued 10,000, 8% debentures of ₹ 100 each at a premium of 10% on 1-4-2022 It purchased Property, Plant & Equipment of the value of ₹ 2,50,000 and took over current liabilities of ₹ 40,000 and issued 8% debentures at a premium of 5% to the vendor. On the same date it took loan from the Bank for ₹ 1,00,000 and issued 8% debentures as Collateral Security. Record the relevant journal entries in the books of P Ltd. and prepare the extract of balance sheet on 31-3-2023. Ignore interest.

Anita, Gaurav and Sonu were partners in a firm sharing profits and losses in proportion to their capitals. Their Balance Sheet as at 31^st March, 2019 was as follows:

Balance Sheet of Anita, Gaurav and Sonu as at 31st March, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capitals:			Land and Building		5,00,000
Anita	2,00,000		Investments		1,20,000
Gaurav	2,00,000		Debtors	1,50,000
Sonu	1,00,000	5,00,000	Less: Provision for doubtful debts	10,000	1,40,000
Investment Fluctuation Fund		40,000	Stock		1,00,000
General Reserve		30,000	Cash at Bank		1,70,000
Creditors		4,60,000
		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 and Anita's share of goodwill was adjusted in the capital accounts of the remaining partners, Gaurav and Sonu
ii. Land and Building was to be brought up to 120% of its book value.
iii. Bad debts amounted to ₹ 20,000. A provision for doubtful debts was to be maintained at 10% on debtors.
iv. Market value of investments was ₹ 1,10,000.
v. ₹ 1,00,000 was paid immediately by cheque to Anita out of the amount due and the balance was to be transferred to her loan account which was to be paid in two equal annual instalments along with interest @ 10% p.a
Prepare the Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm on Anita's retirement.

A, B and C were partners sharing profits in the ratio 5 : 3 : 2 respectively. Their summarised balance sheet was as follows :

Balance Sheet
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Capital Accounts			Goodwill	80,000
A	2,80,000		Machinery	3,60,000
B	2,00,000		Debtors	1,40,000
C	1,20,000	6,00,000	Stock	1,80,000
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Current Liabilities		1,84,000	Cash	24,000
		7,84,000		7,84,000

C retired on 1.4.2009. It was agreed that:
i. Machinery is revalued at Rs. 4,80,000.
ii. C's interest in the firm is valued at Rs 1,88,000 after taking into consideration revaluation of assets, liabilities and accumulated profits/losses etc.
iii. The entire sum payable to C is to be brought in by A and B in such a way that their capital should be in their new profit sharing ratio of 2 : 1.
iv. A cash balance of Rs 17,000 should be kept in the firm as a minimum balance.
Prepare revaluation account, partners' capital accounts, and balance sheet of the new firm.

Arun Ltd. was registered with a capital of ₹ 5,00,000 in shares of ₹ 10 each and issued 20,000 such shares at a premium of ₹ 2 per share, payable as ₹ 2 per share on application, ₹ 5 per share on allotment (including premium) and ₹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money. Pass Journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.

Example of cash flow from financing activity is:

Pick the odd one out:

Is payment for the purchase of fixed assets will be classified as an operating activity for both finance and non-finance company?

Inventory Turnover Ratio is calculated under -------

Assets are divide in to

From the following balance sheet of a company, calculate Debt-Equity Ratio:

Balance Sheet
Particulars	Note No.	₹
I. Equity and Liabilities
1. Shareholders' funds
(a) Share capital		8,00,000
(b) Reserves and Surplus	1	1,00,000
2. Share application money pending allotment		2,00,000
3. Non-Current Liabilities
Long-term borrowings		1,50,000
Current liabilities		1,50,000
		14,00,000
II. Assets
1. Non-Current Assets
a) Fixed assets
-Tangible assets	2	11,00,000
2. Current Assets
a) Inventories
b) Trade receivables		90,000
c) Cash and cash equivalents		1,10,000
		14,00,000

Notes to Accounts
	₹
1. Share Capital
Equity Share Capital	6,00,000
Preference Share Capital	2,00,000
	8,00,000

Fixed Assets
	₹
2. Tangible Assets:
Plant and Machinery	5,00,000
Land and Building	4,00,000
Motor Car	1,50,000
Furniture	50,000
	11,00,000

Prepare comparative statement of profit and loss from the following information:

Particulars	31st March, 2015 Amt (Rs.)	31st March, 2014 Amt (Rs.)
Revenue from Operations	12,00,000	8,00,000
Purchase of Stock-in-trade	7,80,000	5,20,000
Change in Inventories of Stock-in-trade	40,000	80,000
Other Expenses	10% of Cost of Revenue from Operations	8% of Cost of Revenue from Operations
Tax Rate	30%	40%

From the following Statement of Profit and Loss of Raman Ltd, prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2022;

Particulars	Note No.	2021-22 ₹	2020-21 ₹
Revenue from Operations		26,00,000	20,00,000
Employee Benefit Expenses		6,00,000	5,00,000
Other Expenses		12,00,000	10,00,000
Tax Rate 50%

Following is the Balance Sheet of Meena Limited as at 31st March, 2023: Prepare Cash Flow Statement when Cash Flow from Financing Activities is ₹ 2,12,500.

Particulars	Note No.	31st March, 2023	31st March, 2022
		₹	₹
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		3,00,000	1,00,000
(b) Reserves and Surplus	1	25,000	1,20,000
2. Non-Current Liabilities
Long-term Borrowings	2	80,000	60,000
3. Current Liabilities
(a) Trade Payables		6,000	20,000
(b) Short-term Provisions		68,000	70,000
TOTAL		4,79,000	3,70,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment	4	3,36,000	1,92,000
2. Current Assets
(a) Inventories		67,000	60,000
(b) Trade Receivables		51,000	65,000
(c) Cash and Bank Balances		25,000	49,000
(d) Other Current Assets		-	4,000
TOTAL		4,79,000	3,70,000

Note to Accounts:
Particulars	31st March, 2023	31st March, 2022
	₹	₹
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	25,000	1,20,000
2. Long-term Borrowings
10% Long-term Loan	80,000	60,000
3. Short-term Provisions
Provisions for Tax	68,000	70,000
4. Property, plant and equipment :
Machinery	3,84,000	2,15,000
Accumulated Depreciation	(48,000)	(23,000)
	3,36,000	1,92,000

Additional Information:
i. Additional loan was taken on 1st July, 2022,
ii. Tax of ₹ 53,000 was paid during the year
iii. Machinery of the book value of ₹ 80,000 (Accumulated Depreciation ₹ 20,000) was sold at a loss of ₹ 18,000.

Assertion (A): The equity shareholders are paid dividend on the shares held by them. 
Reason (R): As the equity shareholders are the owners and dividend form their earning.

Assertion (A): Capital account of partners generally has a credit balance.
Reason (R): Current account has either a debit or credit balance.