Pre Board II Ffgs
Pre Board II Ffgs
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correctexplanationofAssertion(A)
(c) Assertion(A)isincorrectbut Reason(R)iscorrect
(d) Assertion(A)iscorrectbutReason(R)isincorrect
3 BalanceinShareforfeitureaccountis shownintheBalanceSheetundertheheadof: 1
(a) reservesandsurplus
(b) longtermborrowings
(c) sharecapital
(d) othercurrentliabilities
OR
Premiumonredemptionofdebenturesaccountisa account
(a) real
(b) nominal
(c) personal
(d) noneofthese
4 A and B were partners in a firm sharing profit or loss in the ratio of 3 : 1. With effect 1
from Jan. 1, 2019 they agreed to share profit or loss in the ratio of 2 : 1. Due to
change in profit-loss sharing ratio, B‟s gain or sacrifice will be :
(a) Sacrifice1/12
(b) Gain1/12
(c) Gain1/3
(d) Sacrifice1/3
OR
Whichoneof thefollowingis NOT anessentialfeatureofapartnership?
(a) Theremust beanagreement
(b) Theremust beabusiness
(c) Thebusiness mustbecarriedonforprofits
(d) Thebusiness mustbe carried on byallthepartners
5 What will be the interest on drawing @12.5% p.a. for Ashish if he withdrew ₹ 5000 1
once in a month?
(a) ₹ 3500
(b) ₹ 7500
(c) ₹ 3750
(d) Noneof theabove
6 Thedebentures which are payable on the expiryof aspecified periodeitherin lump 1
sumor ininstallmentsduringthelifetime ofthe companyareknown as
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(a) secureddebentures
(b) specificcouponrate debentures
(c) redeemabledebentures
(d) convertibledebentures
OR
Whichofthefollowingstatementsisincorrectwithrespectto debentures?
(a) debentures can beissuedforcash
(b) debenturescannotbeissuedatdiscount
(c) debenturescanbeissuedascollateralsecurity
(d) debentures canbeissuedat premium
7 Assertion(A):ManojLtd.gavesharesworth₹150000tothevendorfromwhomit bought 1
machinery.
Reason(R):Thecompanycan issuesharesas againstthepayment tothevendors.
(a) BothAssertion(A)andReason(R)arecorrectandReason(R)isthecorrect
explanation of Assertion(A)
(b) BothAssertion(A)andReason(R)arecorrectbutReason(R)isnotthe
correct explanation of Assertion(A)
(c) Assertion(A)isincorrectbut Reason(R)iscorrect
(d) Assertion(A)iscorrectbutReason(R)is incorrect
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8 Akshita, Shraddha and Pooja were partners sharing profits and losses in the ratio of 1
4:3:1.ShraddharetiresandgiveshershareofprofittoAkshitafor3600andPoojafor 3000.
The gaining ratio of Akshita and Pooja will be:
(a) 4:5
(b) 6:5
(c) 2:1
(d) 4:1
OR
A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was
guaranteedaprofitof₹2,00,000Duringthe yearthefirmearnedaprofitof₹84,000,
Calculate the net amount of Profit or Loss transferred to the Capital Accounts of A
and C.
(a) ₹ 87,000&₹ 29,000
(b) ₹ 77,000 &₹ 39,000
(c) ₹ 25,000&₹ 75,000
(d) ₹ 27,000&₹ 89,000
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10 Whatistheamount ofinterest ondrawingsofXand Y? 1
(a) ₹120 and ₹ 1800 respectively
(b) ₹800 and ₹ 1200 respectively
(c) ₹1200 and ₹ 800 respectively
(d) ₹1600 and ₹ 2400 respectively
11 X,Yand Zweredoingbusinessinpartnershipwithcapitalinvestmentof₹40000,₹ 1
40000and₹80000ascapitals.Deedissilentregardingtheprofitsharingratioofthe partners.
During the year they earned a profit of ₹ 120000. How much amount of profit will be
given to Z assuming that the whole business is managed by Z alone?
(a) ₹ 60000
(b) ₹ 40000
(c) ₹ 120000
(d) Noneof theabove
12 Anequityshareof₹10fullycalled uponwhich₹ 6hasbeen paidwas forfeitedfor the 1
non-payment of the balance amount. At which of the following minimum price can
it be re issued?
(a) ₹ 4
(b) ₹ 10
(c) ₹ 16
(d)₹ 6
13 Theallowedamountofdiscountonre-issueofshareswillbe . 1
(a) @10%of issueprice
(b) uptotheamount offorfeitedmoney
(c) could not issueat discount
(d) noneofthese
14 P, Q and R are partners in a firm sharing profits and losses in the ratio 2:2:1. They 1
admitted L as a new partner for 1/5th share in the profits. L was given a guarantee
that his share of profit shall be ₹ 100000. Any deficiency arising on account of
guaranteeto LwillbebornebyQ.Theprofitofthefirmduringthe yearended31st March
2023 was ₹ 4 lakh. The amount of deficiency borne by Q was:
(a) ₹ 80000
(b) ₹ 20000
(c) ₹ 6667
(d) ₹10000
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15 ManojandManisharepartners.Manishdrawsafixedamountinthebeginningof every 1
quarter. Interest on drawings is charged @12% p.a. At the end of the year interest on
Manish‟s drawings amounted to ₹4500. Drawings of Manish were:
a) ₹14,000perquarter.
b) ₹15,000perquarter
c) ₹20,000perquarter
d) ₹10,000perquarter
OR
A, D and K were equal partners. Theydecided to change the profit sharing ratio to
4:3:2.ForthispurposetheGoodwillofthefirmwasvaluedat₹90000.Thejournal entries for
the treatment of goodwill on change in profit sharing ratio will be:
(a) debitK‟scapitalaccount;creditA‟scapitalaccount₹10000
(b) debitD'scapitalaccount;creditA‟scapitalaccount₹10000
(c) debitA‟scapitalaccount;creditK‟scapitalaccount₹90000
(d) debitA‟scapitalaccount;creditK‟scapitalaccount₹10000
16 OndissolutionofthepartnershipfirmofA,BandC,theaccumulatedprofitsof₹ 40000 will 1
be transferred to which of the following accounts?
(a) Revaluationaccount
(b) Realizationaccount
(c) Partner‟scapitalaccounts
(d)Bankaccount
17 A,BandCarepartnerssharingprofitandlossintheratioof2:2:1.Bretiresfromthe firm on 3
31st March, 2023. On the date of B's retirement, the following balances appeared in
the books of the firm.
Advertisementsuspenseaccount₹50,000
Contingency reserve ₹30000
Workmen'scompensationreserve₹40,000 Loss
in business account ₹ 30,000
Passthenecessaryjournal entriesforthe adjustmentoftheseitems onB's retirement.
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18 Sonu,MonuandTinaarepartnersinafirm.Theyhadomitted InterestonCapital@ 10% p.a. 3
for three years ended 31st March, 2023. Their fixed capitals on which interest was to
be calculated were:
Sonu: ₹ 1,00,000
Monu: ₹ 80,000
Tina:₹ 70,000
Givethe necessaryadjustingjournalentryand showyour workingnotesclearly.
OR
A,BandCwerepartnersinafirm.On1stApril,2022,theirfixedcapitalsstoodat₹ 50,000, ₹
25,000 and ₹ 25,000 respectively. As per the provisions of the partnership deed
(i) Awasentitled toa salaryof₹5,000 perannum.
(ii) Allthepartnerswereentitledtointerest oncapital@5%per annum.
(iii) Profitsweretobeshared intheratioof capitals.
Thenetprofitsforthe yearending31stMarch,2022of₹33,000and31stMarch, 2023 of ₹
45,000 were divided equally without providing for the above terms.
Passan adjustment journal entryto rectifytheaboveerror.
19 KaranLtd.issued1,00,000Equitysharesof₹10each.Theamountwasduly 3
receivedexcepton5,000Equitysharesonwhich ₹5per sharewasreceived.These
shareswereforfeitedand 2,500Equityshareswerereissued for₹9 eachfullypaid- up.
You are required to prepare Share Forfeiture Account
OR
Gagan Ltd. took over the running business of Madan Ltd. having assets of ₹
22,00,000andliabilitiesof₹6,00,000byissuing20,000,11%Debenturesof₹100 each at
5% discount.
Youarerequiredtopassthejournal entriesinthebooksofGlenLtd. ifdebentures
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21 Mahir Ltd., an helicopter manufacturing company, is registered with an authorised 4
capital of ₹ 1,00,00,000 divided into equity shares of 100 each. The subscribed and
paid up capital of the company is ₹ 50,00,000. The company decided to open
technical schools in the Jhalawar district of Rajasthan to train the especially abled
children of the area. It is planning to provide them employment in its various
production units and industries in the neighborhood area. To meet the capital
expenditure requirements of the project, the company offered 20,000 shares to the
public for subscription. The shares were fully subscribed and paid.
Presentthesharecapital in theBalance Sheet ofthecompanyas pertheprovisions of
Schedule III of the Companies Act, 2013.
22 Pass the necessary journal entries in the following cases on the dissolution of a 4
partnership firm of partners X, Y, A and B:
(i) Realization expenses of₹ 5,000 wereto beborne byX, apartner.However,it was
paid by Y.
(ii) Investments costing ₹ 25,000 (comprising 1,000 shares), had been written off
from the books completely. These shares are valued at ₹ 20 each and were divided
amongst the partners.
(iii) Y'sloanof ₹50,000settledat₹ 48,000.
(iv) Machinery(bookvalue ₹ 6,00,000)was giventoacreditorata discountof20%.
23 SakshamLtd.invitedapplicationsfor1,00,000EquitySharesof₹100eachata premium of 6
10%. The amount was payable as follows:
OnApplication₹50pershare
OnAllotment₹35pershare(includingpremium) On
First and Final Call ₹ 25 per share Applications
for 1,50,000 shares were received.
Applicants for 25,000 shares did not get any allotment and their money returned.
Allotment was made pro-rata to the remaining applicants. Excess application money
was adjusted towards sum due on allotment.
Mr. Harshit who was allotted 600 shares failed to pay the amount due on allotment
and call money.
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The company forfeited his shares and subsequently re-issued at ₹ 110 per share fully
paid-up.
You are required to pass journal entries to record the above transactions in the books
of the company.
OR
Qinza Ltd. invited applications for 4,000 equity shares of ₹ 100 each at a premium ₹
30 per share. The amount was payable as follows:
On Application ₹ 40 (Including premium ₹ 10) On Allotment ₹ 60 (Including
premium ₹ 20) On First and Final Call ₹ 40 Applications for 5,000 shares were
received. Allotment was made to all the applicants on pro-rata basis. Excess
application money was adjusted towards sum due on allotment.
Satvik,towhom40shareswereallotted,failedtopayallotmentandcallmoney. Ali, to
whom 90 shares were allotted, failed to pay the call money.
Theseshareswereforfeited.Theforfeitedshareswerere-issued@₹80pershare fullypaid-
up.
You are required to pass journal entries to record the above transactions in the books
of the company.
24 AandBwerepartnerssharingprofitsandlossesintheratioof3:2on31stMarch 2023 their 6
balance sheet was as follows:
BalanceSheetasat31/03/2023
162000 162000
Ontheabovedate,Cwasadmittedintopartnershiponthefollowingterms
(i) Cwastopay₹40,000ascapitaland₹20,000asgoodwillfor1/4thsharein profits.
(ii) Landandbuildingsweretoberevaluedat₹90,000andplantandmachineryat₹
50,000.Stockwastobewrittendownby₹4,000.Creditorsincluded₹1,000no longer
payable.
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(iii) Capital of all partners of the new firm were to be in the profit sharing ratio and
for this purpose
Preparerevaluationaccountandpartners'capital accounts.
OR
BalanceSheetason31stMarch2022
660000 660000
Ontheabovedate,Rahulretiredandfollowingtermswereagreed upon:
(i) Goodwillofthefirm wasvaluedat₹ 3,50,000.
(ii) An item of ₹ 10,000 included in Sundry creditors is not likely to be claimed and
hence written off. Stock was valued at ₹ 90,000.
(iii) Capital of the new firm was fixed at ₹ 2,10,000 and the same will be adjusted in
the profit-sharing ratio of the remaining partners. For this purpose the required cash
will be brought in- or paid off as the case may be.
(iv) AmountpayabletoRahulwill betransferred tohisloan account
PrepareRevaluationAccountandPartners'CapitalAccounts onRahul'sretirement.
25 Akash, Jalaj and Shobit were partners in a firm sharing profits in the ratio of 2: 2: 1. 6
Thefirm closes its books on 31st March every year.On30th September, 2022 Shobit
died. The partnership deed provided that on the death of a partner her executors will
be entitled to the following:
(a) Balance in her capital account which amounted to ₹ 3,15,000 and interest on
capital @ 9%.
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(b) Hershareintheprofitsofthefirmtillthedateofherdeathamountedto₹70,000.
(c) Her share in the goodwill of the firm. The goodwill of the firm on Shobit‟s death
was valued at ₹ 1,50,000.
YouarerequiredtocalculatetheamounttobetransferredtoShobit‟sExecutorA/c.
26 Passjournal entriesinthebookofXLtd.inthefollowingcases: 6
(i) The Companytook a loan of ₹ 1,60,000 from SBI and issued 2,000, 12%
debentures of ₹ 100 each as collateral security.
(ii) Issued 1,000,12% debenturesof ₹100 eachat10% premium,redeemable ata
premium of 5%.
(iii) Purchasedmachinery₹ 4,60,000fromBabitaLtd.Paymentwasmadebyissueof
9%debenturesof₹100eachatapremiumof15%redeemableat par.
PARTB OPTION–I(Analysisof FinancialStatements)
27 WhichofthefollowingitemsshownincompaniesBalanceSheetas“Contingent liabilities” 1
(i) claimsagainstthecompanynotacknowledged asdebts
(ii) guaranteegivenbythe company
(iii) billsreceivablesdiscountedfromBank
(a) (i)only
(b) (i)and (ii)
(c) (i)and (iii)
(d) (i),(ii)and (iii)
OR
Fromthefollowingwhichitemappearsinthesubhead„ShorttermProvisions‟ofa
Company's Balance Sheet
(a) callsinadvance
(b) prepaidexpenses
(c) provisionfortax
(d) outstandingexpenses
28 Workingcapitalratioofacompanyis2.5.Ifcurrentliabilitiesare₹60000,then current 1
assets are
(a) ₹ 120000
(b) ₹ 150000
(c) ₹ 3 lakh
(d) ₹24000
29 Statement I: 'Cash Flows'impliesmovement ofcashin and outduetosomenon-cash 1
items.
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StatementII:Receiptofcashfromanon-cashitemistermedascashinflowwhile cash
payment in respect of such items as cash outflow.
Choosethecorrect optionfromoptionsgivenbelow:
(A) StatementIiscorrectandstatementIIiswrong.
(B) StatementIIiscorrectandstatementIiswrong.
(C) Boththestatements arecorrect.
(D) Boththestatementsarewrong.
OR
Whichofthefollowingtransactions willresult into'InflowofCash'?
(A) Deposited₹ 10,000into bank
(B) Withdrewcashfrombank₹14,500
(C) Saleofmachineryofthebookvalue of₹ 74,000 ataloss of ₹9,000
(D) Converted₹2,00,000;9%debenturesintoequityshares
30 Mohan Limited purchased the machinery for ₹ 9 lakh. It received a dividend of ₹ 1
70000 on investment in shares. The company also sold an old machine of the book
value of ₹ 79000 at a loss of ₹ 10000. Cash flow from investing activities are:
(a) ₹ 761000 outflow
(b) ₹ 761000 inflow
(c) ₹ 901000 outflow
(d) ₹ 901000 inflow
31 Under which heads and subheadings the following items will be shown in the 3
BalancesheetofcompanyasperscheduleIIIpart1ofTheCompaniesAct,2013
(a) securitypremiumreserve
(b) callsinadvance
(c) storesandspares
(d) tax reserve
(e) miningrights
(f) vehicles
32 (a) Calculatetheinventoryturnoverratiowiththehelpofthefollowinginformation: 3
Revenue from operations ₹ 8 lakh; Average inventory ₹ 110000 ; Gross Loss 10%
(b) A company earns a Gross Profit of 20% on cost. Its credit revenue from
operationsistwiceitscashRevenuefromoperations.Creditrevenuefrom operations
is₹8lakh.Calculatethe Gross Profitratio.
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33 PrepareCommon-sizestatementBalanceSheetfromthefollowinginformation: 3
IEquityandliabilities 1
Shareholders fund
(a) EquityshCap 10,00,000 5,00,000
(b) Reserves&Surplus 2,00,000 3,00,000
2 Non- current liabilities
Long term borrowings 8,00,000 5,00,000
3Currentliabilities
Trade Payables 4,00,000 2,00,000
IIAssets
1Non-currentAssets
(a) FixedAssets
(i)Tangibleassets 2 15,00,000 10,00,000
Current Assets
(a)Cashandcashequivalents 9,00,000 5,00,000
24,00,000 15,00,000
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OR
PrepareComparativestatementofProfit andLossfromthefollowinginformation:
34 Readthefollowinghypotheticaltextandanswerthegivenquestiononthebasisof 6
thesame.
Khyati started a small enterprise under the 'Skill India Scheme‟, As the business
grew, the revenue started increasing and she decided to form Khyati Limited to
achieve her objectives with 10 other like-minded persons the financial position of the
company is given in its Balance Sheet as at 31.03.2022
BalanceSheet asat31.03.2022
IEquityandliabilities
1Shareholdersfund
Particulars Note 31-03-2022 31-03-2023
(c)EquityshCap 2000000 1700000
(d)Reserves&Surplus no. 300000 400000
2Non-current liabilities
Revenuefromoperations
Longtermborrowings ₹ 2000000
300000 ₹ 2500000
200000
3Currentliabilities
Costofmaterialconsumed(%of
TradePayables RFO) ₹ 1000000
50000 ₹ 1300000
25000
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2 Current Assets 400000 500000
(b) Inventories 150000 125000
(c) TradeReceivables 500000 200000
(d) Cashandcashequivalents
2650000 2325000
Additionalinformation:
Depreciationof₹100000 waschargedontangibleassetsduringtheyear.
OnthebasisoftheaboveinformationpreparethecashflowstatementofKhyati Limited.
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