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ZONAL INSTITUTE OF EDUCATION AND TRAINING, CHANDIGARH

Practice question Paper

Term– 2 Session– 2021-22

ACCOUNTANCY– XII

KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING

SECTOR-33C, CHANDIGARH
E-MAIL– [email protected], Website- zietchandigarh.kvs.gov.in
Ph– 0172 2621302 & 2621364

KVS ZONAL INSTITUTE OF EDUCATON AND TRAINIG, CHANDIGARH

OUR PATRONS

1 Mrs. Nidhi Pandey (IIS) Commissioner, KVS

2. Dr. E. Prabhakar Addl. Commissioner (Acad)

3. Mrs. Piya Thakur Joint Commissioner (Acad)

4. Sh. N.R. Murali Joint commissioner (Trg.)

5. Sh. S.S. Rawat Joint Commissioner (Pers.)

6 Sh. Satya Narayan Joint commissioner (fin.)

Gulian

KVS ZONAL INSTITUTE OF EDUCATON AND TRAINIG, CHANDIGARH

DIRECTOR’S MESSAGE

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KVS ZONAL INSTITUTE OF EDUCATON AND TRAINIG, CHANDIGARH

INDEX

S NO PARTICULARS PAGE NO

1 CBSE SQP 2021-22 1-8

2 CBSE MS 2021-22 9-17

3 SAMPLE PAPER 1 18-22

4 MARKING SCHEME 1 23-28

5 SAMPLE PAPER 2 29-34

6 MARKING SCHEME 2 35-41

7 SAMPLE PAPER 3 42-46

8 MARKING SCHEME 3 47-54

SAMPLE QUESTION PAPER
Class -XII
Term -II (2021-22)
Subject: Accountancy (055)

Time Allowed: 2 Hours Max.Marks:40

General Instructions:
1. This question paper comprises two Parts – A and B. There are 12
questions in the question paper. All questions are compulsory.
2. Part-A is compulsory for all candidates.
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial
Statements and (ii) Computerized Accounting. Students must
attempt only one of the given options.
4. Question nos. 1 to 3 and 10 are short answer type–I
questions carrying 2 marks each.
5. Question nos. 4 to 6 and 11 are short answer type–II questions
carrying 3 marks each.
6. Question nos. 7 to 9 and 12 are long answer type questions carrying
5 marks each.
7. There is no overall choice. However, an internal choice has been
provided in 3 questions of three marks and 1 question of five marks.

Part A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)
1. Following information has been provided by M/s Achyut Health Care.
You are required to calculate the amount of medicines consumed
during the year 2020-21:
Particulars Amount (₹)
Stock of medicines as on April 1, 2020 15,00,000
Creditors for medicines as on April 1, 2020 3,50,000
Stock of medicines as on March 31, 2021 10,00,000
Creditors for medicines as on March 31, 2021 4,20,000
Cash purchases of medicines during the year
2020-21 2,00,000
Credit purchases of medicines during the year
2020-21 6,00,000

(2)

2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of

Partnership Firm’ based on:
(i) Settlement of assets and liabilities
(ii) Economic relationship (2)
3. Suresh, Ramesh and Tushar were partners of a firm sharing profits in
the ratio of 6:5:4. Ramesh retired and his capital after making
adjustments on account of reserves, revaluation of assets and
reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar
agreed to pay him ₹ 2,90,000 in full settlement of his claim.
Pass necessary journal entry for the treatment of goodwill. Show
workings clearly. (2)

4. From the following information given by Modern Dance Academy,

calculate the amount of Subscription received during the year 2020-
21.

(i) Subscription credited to Income & Expenditure A/c for the year
ending 31st March ,2021 amounted to ₹3,00,000 and each
member is required to pay an annual subscription of ₹ 3,000.
(ii) Subscription in arrears as on 1st April 2020 amounted to ₹ 16,000.
(iii) During the year 2020-21, 10 members made partial payment of
₹26,000 towards subscription, 8 members failed to pay the
subscription amount and 5 members paid the subscription amount
for the year2021-22.
(iv) During the year 2019-20, 12 members paid the subscription
amount for the year 2020-21.
OR
Following information is given by Alchemy Medical College, Library
department for the year 2020-21.

Particulars Amount (₹)

Books and Journals Fund as on 1.4.2020 4,50,000

7% Books and Journals Fund Investments as on

1.4.2020 4,00,000

Interest on Books and Journals Fund

Investments 13,000

Donations for Books and Journals 20,000

Books Purchased 70,000

General Fund as on 1.4.2020 10,00,000

Show the accounting treatment of the above-mentioned items in the

Balance Sheet of the Alchemy Medical College as at 31st March,2021.
(3)
5. Harihar, Hemang and Harit were partners with fixed capitals of
₹3,00,000, ₹ 2,00,000 & ₹ 1,00,000 respectively. They shared profits
in the ratio of their fixed capitals. Harit died on 31st May, 2020,
whereas the firm closes its books of accounts on 31 st March every
year. According to their partnership deed, Harit’s representatives
would be entitled to get share in the interim profits of the firm on the
basis of sales. Sales and profit for the year 2019-20 amounted to
₹8,00,000 and ₹2,40,000 respectively and sales from 1st April, 2020
to 31st May 2020 amounted to ₹ 1,50,000. The rate of profit to sales
remained constant during these two years. You are required to:
(i) Calculate Harit’s share in profit.
(ii) Pass journal entry to record Harit’s share in profit.
(3)

6. Vedesh Ltd. purchased a running business of Vibhu Enterprises for a

sum of ₹ 12,00,000. Vedesh Ltd. paid ₹ 60,000 by drawing a
promissory note in favour of Vibhu Enterprises., ₹1,90,000 through
bank draft and balance by issue of 8% debentures of ₹ 100 each at a
discount of 5%. The assets and liabilities of Vibhu Enterprises
consisted of Fixed Assets valued at ₹ 17,30,000 and Trade Payables
at ₹ 3,20,000.
You are required to pass necessary journal entries in the books of
Vedesh Ltd.
OR
Youth Ltd. took a loan of ₹ 15,00,000 from State Bank of India against
the security of tangible assets. In addition to principal security, it
issued 10,000 11% debentures of ₹ 100 each as collateral security.

Pass necessary journal entries for the above transactions, if the

company decided to record the issue of 11% debentures as
collateral security and show the presentation in the Balance Sheet
of Youth Ltd. (3)

7. Madhav, Madhusudan and Mukund were partners in Jaganath

Associates. They decided to dissolve the firm on 31st March 2021.
Pass necessary journal entries for the following transactions after
various assets (other than cash) and third-party liabilities have been
transferred to realization account:
(i) Old machine fully written off was sold for ₹ 42,000 while a
payment of ₹ 6,000 is made to bank for a bill discounted being
dishonoured.
(ii) Madhusudan accepted an unrecorded asset of ₹80,000 at
₹75,000 and the balance through cheque, against the payment
of his loan to the firm of ₹1,00,000.
(iii) Stock of book value of ₹30,000 was taken by Madhav,
Madhusudan and Mukund in their profit sharing ratio.
(iv) The firm had paid realization expenses amounting to ₹5,000 on
behalf of Mukund.
(v) There was a vehicle loan of ₹ 2,00,000 which was paid by
surrender of asset to the bank at an agreed value of ₹ 1,40,000
and the shortfall was met from firm’s bank account.

OR
Gini, Bini and Mini were in partnership sharing profits and losses
in the ratio of 5:2:2. Their Balance Sheet as at 31st March, 2021
was as follows:

Balance Sheet as at 31 st March,2021

Liabilities Amount Assets Amount
(₹) (₹)
Sundry Creditors 56,500 Cash 1,17,300
Bank Overdraft 61,500
Workmen’s Debtors 38,000
Compensation Reserve Less: Provision For
32,000 Doubtful Debts (2,300)
Capitals: 35,700
Gini 4,60,000 Inventories 1,34,000
Bini 3,00,000 Machinery 1,00,000
Mini 2,90,000 Furniture 1,80,000
10,50,000 Building 5,70,000
Goodwill 63,000

12,00,000 12,00,000

On 31st March, 2021, Gini retired from the firm. All the partners agreed to
revalue the assets and liabilities on the following basis:
(i) Bad debts amounted to ₹ 5,000. A provision for doubtful debts was
to be maintained at 10% on debtors.
(ii) Partners have decided to write off existing goodwill.
(iii) Goodwill of the firm was valued at ₹ 54,000 and be adjusted into
the Capital Accounts of Bini and Mini, who will share profits in future
in the ratio of 5:4.
(iv)The assets and liabilities valued as: Inventories ₹1,30,000;
Machinery ₹ 82,000; Furniture ₹1,95,000 and Building
₹ 6,00,000.
(v) Liability of ₹23,000 is to be created on account of Claim for
Workmen Compensation.
(vi)There was an unrecorded investment in shares of ₹ 25,000. It was
decided to pay off Gini by giving her unrecorded investment in full
settlement of her part payment of ₹ 28,000 and remaining amount
after two months.
Prepare Revaluation Account and Partners’ Capital Accounts as on 31st
March, 2021. (5)
8. Yogadatra Ltd. (pharmaceutical company) appointed marketing expert,
Mr. Kartikay as the CEO of the company, with a target to penetrate their
roots in the rural regions. Mr. kartikay discussed the ways and means to
achieve target of the company with financial, production and marketing
departmental heads and asked the finance manager to prepare the
budget. After reviewing the suggestions given by all the departmental
heads, the finance manager proposed requirement of an additional fund
of ₹52,50,000.
Yogadatra Ltd. is a zero-debt company. To avail the benefits of financial
leverage, the finance manager proposed to include debt in the capital
structure. After deliberations, on April1,2020, the board of directors had
decided to issue 6% Debentures of ₹100 each to the public at a premium
of 5%, redeemable after 5 years at ₹110 per share.

You are required to answer the following questions:

(i) Calculate the number of debentures to be issued to raise additional
funds.
(ii) Pass Journal entry for the allotment of debentures.
(iii) Pass Journal entry to write off loss on issue of debentures.
(iv)Calculate the amount of annual fixed obligation associated with
debentures.
(v) Prepare Loss on Issue of Debentures Account. (5)

9. From the following Receipts and Payments Account and additional

information provided by Ramanath Club, Prepare Income and
Expenditure Account for the year ending on 31st March 2021.

Receipts and Payments Account

for the year ending 31st March, 2021
Receipts Amount (₹) Payments Amount(₹)
To Balance b/d 48,000 By Salaries and Wages:
To Subscription 95,000 2019-20 10,600
To Entrance Fee 1,56,000 2020-21 1,03,200 1,13,800
To Locker rent 50,000 By Sundry expenses 47,000
To Interest on 8% govt. By Refreshment expenses 60,400
Securities 5,400 By Telephone bill 5,000
To Revenue from refreshment 52,000 By Rent & Rates 24,000
To Sale of old newspapers 4,600 By Library Book 25,000
To Sale of furniture By 8% Govt. Securities 30,000
By Honorarium to Secretary
(Book value: ₹ 11,000) 12,000 5,000
By Balance c/d
1,12,800
4,23,000 4,23,000
Additional Information:
(i) Subscription received during the year includes ₹ 25,000 as donation
for Building.
(ii) Telephone bill unpaid as on March 31, 2020 was ₹ 4,000 and on March
31, 2021 ₹ 2,600.
(iii) Value of 8% Government Securities on March 31, 2020 was ₹
80,000.
(iv) Additional Government Securities worth ₹ 30,000 were purchased on
March 31, 2021. (5)

Part-B
Option-I
(Analysis of Financial Statements)

10. State whether the following transactions will result in inflow, outflow or
no flow of cash while preparing cash flow statement:
(i) Decrease in outstanding employees benefits by ₹3000
(ii) Increase in Current Investment by ₹ 6,000. (2)

11. From the following details provided by Kumud Ltd., prepare

Comparative Statement of Profit & Loss for the year ended 31 st March
2021:

Particulars 31.03.20 31.03.21

(₹) (₹)
Revenue from operations 30,00,000 35,00,000
Other Income 3,00,000 4,50,000
Cost of materials Consumed 20,00,000 23,00,000
Other Expenses 1,00,000 1,20,000
Tax rate 40% 40%

OR
From the following Balance Sheets of Vinayak Ltd. as at 31st March,2021,
Prepare a Common-size Balance Sheet.
Vinayak Ltd.
Balance Sheet as on 31st March, 2021

Particulars Note 31.3.2021 31.3.2020

no. (₹) (₹)
I EQUITY AND LIABILITIES
1. Shareholder’s Funds:
a. Share Capital 30,50,000 20,00,000
b. Reserve and Surplus 2,80,000 6,00,000
2. Current Liabilities:
a. Trade Payable 6,70,000 4,00,000
Total 40,00,000 30,00,000

II ASSETS
1. Non-Current Assets:
a. Fixed Assets:
i. Tangible Assets 16,00,000 12,00,000
ii. Intangible Assets 2,00,000 3,00,000
2. Current Assets
a. Inventories 8,00,000 3,00,000
b. Trade Receivables 12,00,000 10,00,000
c. Cash and Cash Equivalents 2,00,000 2,00,000
Total 40,00,000 30,00,000
(3)
12. On the basis of information given by Aradhana Ltd., prepare Cash Flow
Statement for the year ending 31st March, 2021:
Aradhana Ltd.
Balance Sheet as on 31st March, 2021

Note 31st March, 31st March,

Particulars
No. 2020 2021

I. Equity and Liabilities

1. Shareholder’s Funds
(a) Share Capital 5,00,000 7,30,000
(b) Reserves and Surplus 1 3,50,000 3,70,000
2. Non-current Liabilities
Long-term Borrowings 2 4,00,000 2,00,000
3. Current Liabilities
(a) Trade Payables 3 3,60,000 4,60,000
(b) Short Term provisions 4 3,25,000 3,20,000
Total 19,35,000 20,80,000

II. Assets
1. Non-current Assets
(a)Fixed Assets
(i) Tangible Assets 5 4,50,000 5,00,000
(ii) Intangible Assets 6 3,10,000 3,02,000
(b) Long-term Loans and Advances 4,00,000 4,30,000
2. Current Assets
(a) Inventories 2,70,000 2,90,000
(b) Trade Receivables 2,40,000 2,60,000
(c) Cash and Cash Equivalents 2,65,000 2,98,000
Total 19,35,000 20,80,000

Note to Accounts

31st
31st March
Particulars March
2021
2020
1. Reserves and Surplus
Statement of Profit and loss 3,50,000 3,70,000
2. Long-term Borrowings
10% Debentures 4,00,000 2,00,000
3. Trade Payables
Creditors 2,40,000 2,60,000
Bills Payable 1,20,000 2,00,000
3,60,000 4,60,000
4. Short-Term Provisions
Provision for Tax 3,25,000 3,20,000
5. Tangible Fixed Assets
Machinery 5,50,000 6,60,000
Less: Provision for Depreciation 1,00,000 1,60,000
4,50,000 5,00,000
6. Intangible Fixed Assets
Patents 3,10,000 3,02,000

Additional Information:
1. Debentures were redeemed on 1st April,2020.
2. Tax paid during the year ₹2,80,000. (5)

Part -B
Option-II
(Computerized Accounting)
10. What do you understand by terms ‘primary key’ and ‘secondary key’ in
a database? (2)

11. State any three features of computerized accounting system.

Or
State any three advantages of computerized accounting system. (3)
12. Name and explain the function which returns the future value of an
investment which has constant payment and interest. (5)
MARKING SCHEME (2021-22)
Accountancy (055)
CLASS-XII
Term – II
Part A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)

1. Amount of medicines consumed during the year 2020-21:

Particulars Amount (₹)

Cash Purchases of medicines 2,00,000
Add: Credit Purchases of medicines 6,00,000
Total Purchases 8,00,000 1/2
Add: Opening Stock 15,00,000 1/2
Less: Closing Stock 10,00,000 1/2
Medicines consumed during the year 13,00,000 1/2

Alternative Solution:

Stock of Medicines A/c

Dr. Cr.

Particulars Amount(₹) Particulars Amount(₹)

Balance b/d 15,00,000 1/2 Income and
Bank A/c 2,00,000 1/4 Expenditure A/c 13,00,000 1/2
Creditors A/c 6,00,000 1/4 Balance c/d 10,00,000 1/2
23,00,000 23,00,000

2.

Basis of Distinction Dissolution of Partnership Dissolution of Partnership Firm

Settlement of Assets Assets are revalued and liabilities Assets are sold and liabilities are
and Liabilities are reassessed. paid off.
Economic relationship Economic relationship between Economic relationship between
the partners continues, though in the partners comes to an end.
a changed form.
(1x2=2)

3. JOURNAL ENTRY
Date Particulars L.F. Dr. Amount Cr. Amount
Suresh’s Capital A/c Dr. 23,760
Tushar’s Capital A/c Dr. 15,840
Ramesh’s Capital A/c 39,600
(Being goodwill adjusted)
𝟏
(𝟏 𝟐)
Working Note:
𝟏
Ramesh’s share of Goodwill= ₹2,90,000 - ₹2,50,400 = ₹39,600 (𝟐)
4. Calculation of amount of Subscription received during the year 2020-21

Particulars Amount(₹)
Subscription credited to Income & Expenditure A/c 3,00,000
Add : Outstanding for 2019-20 16,000
Less : Outstanding for 2020-21
For 10 members (10 x 3000 – 26,000) 4,000
For 8 members (8 x3000) 24,000 (28,000)
Less : Advance during 2019-20 (36,000)
Add : Advance during 2020-21 15,000

Amount of subscription Received During the Year 2,67,000

𝟏
(𝟐x6=3)

OR

An Extract of Balance Sheet as at 31st March, 2021

Liabilities ₹ Assets ₹
General Fund 10,00,000 7% Books & Journals Fund
Add: Books and Journals Fund 70,000 10,70,000 (𝟏⁄𝟐) Investment 4,00,000 (𝟏⁄𝟐)
Accrued Interest on Books and
Books & Journals Fund 4,50,000 Journals Fund Investment 15,000 (𝟏⁄𝟐)
Add : Donations for Books & Journals 20,000 Books 70,000 (𝟏⁄𝟐)
Interest on Books & Journals
Investment 13,000
Accrued Interest 15,000 28,000
Less : Books purchased 70,000 4,28,000 (1)

Working Note:

Interest on Books and Journals Investments = 4,00,000 x 7/100 = 28,000

Accrued Interest = 28,000 – 13,000= 15,000

5. (i) Ratio of Profit to sales= 2,40,000/8,00,000 X 100 = 30% (𝟏⁄𝟐)

Profit upto the date of death= 1,50,000 X 30% = ₹45,000 (𝟏⁄𝟐)

Profit sharing Ratio = 3:2:1

Harit’s Share of Profit = 45,000 X 1/6 = ₹7,500 (1)

Alternative: Harit’s Share of Profit = 2,40,000/8,00,000 X 1,50,000 X 1/6=₹7,500

Journal
Date Particulars L.F. Dr. Amount (₹) Cr. Amount (₹)
Profit & Loss Suspense A/c 7,500
To Harit’s Current A/c 7,500
(Being Harit’s share in profit transferred to his
current account)
(1)
6. In the Books of Vedesh Ltd.
Journal
Date Particulars L.F. Dr. Amount (₹) Cr. Amount (₹)
Fixed Assets A/c Dr. 17,30,000
To Trade Payables A/c 3,20,000
To Vibhu Enterprises 12,00,000
To Capital Reserve A/c 2,10,000
(Being assets purchased and liabilities taken over of
Vibhu Enterprises)
_____________________________________________

Vibhu Enterprises Dr. 12,00,000

Discount on Issue of Debentures A/c Dr. 50,000
To Bills Payable A/c 60,000
To Bank A/c 1,90,000
To 8% Debentures A/c 10,00,000
(Being issue of bank draft, acceptance of bill and issue
of 8% debentures in settlement of purchase
consideration}
(1+2=3)

Working Note:

Number of Debentures issued = 9,50,000 / 95 = 10,000

OR

In the Books of Youth Ltd.

Journal
Date Particulars L.F. Dr. Cr.
Amount(₹) Amount(₹)
Bank A/c Dr. 15,00,000
To Bank Loan A/c 15,00,000
(Being Loan taken from State Bank of India)

Debenture Suspense A/c Dr. 10,00,000

To 11% Debentures A/c 10,00,000
(Being 11% debentures deposited as collateral
security)

(1x2=2)

Balance sheet of Youth Ltd. (An extract)

Particulars Note No. Amount (₹)

I. Equity and Liabilities
1. Non-current Liabilities
Long term borrowings 1 15,00,000
(𝟏⁄𝟐)

Notes to Accounts:1

Particulars Amount (₹)

I. Long term borrowings
Secured Loan from State Bank of India 15,00,000
10,000, 11% debentures of ₹100 each 10,00,000
Less: - Debenture Suspense 10,00,000 NIL
(deposited as collateral security) 15,00,000
(𝟏⁄𝟐)

7.

Books of Jaganath Associates

Date Particulars L.F. Dr. Cr.

Amount(₹) Amount(₹)
31.03.2021 Bank A/c Dr. 42,000
To Realization A/c 42,000
(Being old machinery realised)
Realization A/c Dr.
To Bank A/c 6,000
(Being payment made to bank for bill discounted) 6,000
31.03.2021 Madhusudan’s Loan A/c Dr. 1,00,000
To Realisation A/c 75,000
To Bank A/c 25,000
(Being payment made against Madhusudan’s
loan through an unrecorded asset and cheque)
31.03.2021 Madhav’s Capital A/c Dr. 10,000
Madhusudan’s Capital A/c Dr. 10,000
Mukund’s Capital A/c Dr. 10,000
To Realisation A/c 30,000
(Being unrealized stock taken by partners in
their profit sharing ratio)
31.03.2021 Mukund’s Capital A/c Dr. 5,000
To Bank A/c 5,000
(Being realization expenses paid on behalf of
Mukund)
31.03.2021 Realization A/c Dr. 60,000
To Bank A/c 60,000
(Being payment of vehicle loan made)

(1X5)

OR

REVALUATION A/C

Dr. Cr.

Particulars Amount(₹) Particulars Amount(₹)

To Baddebt A/c 2700 By Furniture A/c 15,000
To Provision for doubtful debts A/c 3300 By Building A/c 30,000
To Inventories A/c 4000 By Investment A/c 28,000
To Machinery A/c 18000
To Partner’s Capital A/c:
Gini 25,000
Bini 10,000
Mini 10,000 45,000
73,000 73,000
(2)

Partner’s Capital A/c

Dr. Cr.

Particulars Gini Bini Mini Particulars Gini Bini Mini

To Goodwill A/c 35,000 14,000 14,000 By Balance b/d 4,60,000 3,00,000 2,90,000
To Gini’s Capital A/c 18,000 12,000 By Workmen Compensation
To Investment A/c 28,000 Reserve A/c 5,000 2,000 2,000
To Gini’s Loan A/c 4,57,000 By Bini’s Capital A/c 18,000
To Balance c/d 2,80,000 2,76,000 By Mini’s Capital A/c 12,000
By Revaluation A/c 25,000 10,000 10,000

5,20,000 3,12,000 3,02,000 5,20,000 3,12,000 3,02,000

(1X3=3)

8. (i) Number of Debentures to be issued = 52,50,000/105 = 50,000

(ii) In the Books of Yogadatra Ltd.

Journal

Date Particulars L.F. Dr. Amount (₹) Cr. Amount (₹)

2020 Debenture Application & Allotment A/c Dr. 52,50,000
April 1 Loss on Issue of Debentures A/c Dr. 5,00,000
To 6% Debentures A/c 50,00,000
To Securities Premium Reserve A/c 2,50,000
To Premium on Redemption of Debentures A/c 5,00,000
(Being allotment of debentures made)

(iii) Journal

Date Particulars L.F. Dr. Amount Cr. Amount

(₹) (₹)
2021 Securities Premium Reserve A/c Dr. 2,50,000
March 31 Statement of Profit & Loss Dr. 2,50,000
To Loss on Issue of Debentures A/c 5,00,000
(Being Loss on Issue of Debentures A/c written off)

(iv) Interest on 6% debentures = 50,00,000 x 6 /100 = ₹3,00,000

(v) Loss on Issue of Debentures A/c

Dr. Cr.

Date Particulars Amount (₹) Date Particulars Amount (₹)

1.4.20 To Premium on Redemption 31.3.21 By Securities Premium Reserve 2,50,000
of Debentures A/c 5,00,000 A/c 2,50,000
By Statement of Profit & Loss A/c
5,00,000 5,00,000
(1X5=5)

9. Income & Expenditure A/c

Dr. For the year ended March 31, 2021 Cr.
Expenditure ₹ Income ₹
To Salary and Wages 1,03,200 By Subscription 95,000
To Sundry Expenses 47,000 Less: Donations for
To Refreshment Expense 60,400 Building 25,000 70,000
To Telephone Bill 5,000 By Entrance Fee 1,56,000
Add : O/S for 2020-21 2,600 By Locker Rent 50,000
Less : O/S for 2019-20 4,000 3,600 By Interest on 8% Govt.
To Rent and Rates 24,000 Securities 5,400
To Honorarium to Secretary 5,000 Add: Accrued Interest 1,000 6,400
By Revenue from Refreshment 52,000
To Surplus(Excess of Income over 96,800 By Sale of old Newspapers 4,600
Expenditure) By Profit on Sale of Furniture 1,000
3,40,000 3,40,000
(1/3X15=5)

Part-B
Option -I
ANALYSIS OF FINANCIAL STATEMENTS
10.(i) Outflow
(ii) No Flow (1X2=2)

11.
COMPARATIVE STATEMENT PROFIT AND LOSS
FOR THE YEAR ENDED 31st March, 2021
Particulars Not 31.03.20 31.03.21 Absolute Percentage
e (₹) (₹) Change Change
No. (Increase/ (Increase/
Decrease) ` Decrease) %
(A) (B) (C= B-A) 𝐶
(D=𝐴x 100)
1.Revenue from operations 30,00,000 35,00,000 5,00,000 16.67
2.Other Income 3,00,000 4,50,000 1,50,000 50.00
3. Total Revenue 33,00,000 39,50,000 6,50,000 19.69
4. Expenses
a) Cost of materials
Consumed 20,00,000 23,00,000 3,00,000 15.00
b) Other Expenses 1,00,000 1,20,000 20,000 20.00
Total Expenses 15.24
21,00,000 24,20,000 3,20,000
Profit Before Tax
12,00,000 15,30,000 3,30,000 27.50
Less: Tax @40%
4,80,000 6,12,000 1,32,000 27.50
Profit After Tax
7,20,000 9,18,000 1,98,000 27.50

(1/3 x 9=3 marks)

OR
COMMON SIZE BALANCE SHEET OF SURAKSHA LTD. as at 31st March, 2020 and 2021

Absolute Amounts % Of Balane Sheet total

Particulars Note 31.3.2020 31.3.2021 31.3.2020 31.3.2021
no. (`) (`) (%) (%)
I EQUITY AND LIABILITIES
1. Shareholder’s Funds:
a. Share Capital 20,00,000 30,50,000 66.67 76.25
b. Reserve and Surplus 6,00,000 2,80,000 20.00 7.00

2. Current Liabilities: 16.75

a. Trade Payable 4,00,000 6,70,000 13.33
Total 30,00,000 40,00,000 100.00 100.00

II ASSETS
1. Non-Current Assets:
a. Fixed Assets:
i. Tangible 12,00,000 16,00,000 40.00 40.00
Assets
ii. Intangible 3,00,000 2,00,000 10.00 5.00
Assets
2. Current Assets
a. Inventories 3,00,000 8,00,000 10.00 20.00
b. Trade Receivables 10,00,000 12,00,000 33.33 30.00
c. Cash and Cash
Equivalents 2,00,000 2,00,000 6.67 5.00
Total 30,00,000 40,00,000 100.00 100.00
(1/3 x 9=3 marks)

12 Aradhana Ltd.

Cash Flow statement for the year ended 31.3.21

Particulars Details Amount

(`)
A) Cash flow from Operating Activities
Net Profit Before Tax and Extraordinary Items 2,95,000
(W.Note No. 1)
Adjustments for non-cash and non-operating items
Add :- Depreciation of the year 60,000
Amortisation of patents 8,000
Interest on Debentures 20,000 88,000
Operating Profit Before working capital changes 3,83,000
Add:- Increase in creditors 20,000
Increase in Bills Payable 80,000
Less:- Increase in Inventories 20,000
Increase in Trade Receivables 20,000 60,000
Cash generated from operations 4,43,000
Less:- Payment of Tax (2,80,000)
Cash Flow from operating Activities(A) 1,63,000
B) Cash Flow From Investing Activities
Purchase of Machinery (1,10,000)
Investment in long term loans and advances (30,000)
Cash used in Investing Activities (B) (1,40,000)
C) Cash Flow From Financing Activities
Issue of Equity shares 2,30,000
Payment of Interest (20,000)
Redemption of Debentures (2,00,000) 10,000
D) Net Increase in cash and cash equivalents (A+B+C) 33,000
Add:- Opening Cash and Cash Equivalents 2,65,000
Closing Cash and Cash Equivalents 2,98,000
(1/3X15=5)
Working Notes:-
1. Net Profit as per statement of Profit and 20,000
Loss
Add: Tax provided during the year 2,75,000
2,95,000

2. Provision for Tax A/c

Dr. Cr.

Particulars Amount Particular Amount

Bank A/c 2,80,000 Balance b/d 3,25,000
Balance C/d 3,20,000 Statement of Profit and Loss 2,75,000
6,00,000 6,00,000
Part-B
Option-II
Computerized Accounting
10. A primary key is a field that identifies each record in a database table
admitting that the primary key must contain its UNIQUE values.
A secondary key shows the secondary value that is unique for each
record. It can be used to identify the record and it is usually indexed.
It is also termed as Alternate key. (2)
11. Simple and Integrated: It helps all businesses by automating and
integrating all the business activities. Such activities may be sales,
finance, purchase, inventory, and manufacturing etc. It also facilitates
the arrangement of accurate and up-to-date business information in
a readily usable form.

Accuracy & Speed: Computerised accounting has customized

templates for users which allows fast and accurate data entry. Thus,
after recording the transactions it generates the information and
reports automatically.

Scalability: It has the flexibility to record the transactions with the

changing volume of business.

OR

Advantages of Computerised Accounting

1. Better Quality Work: The accounts prepared with the use of

computerized accounting system are usually uniform, neat, accurate,
and more legible than a manual job.
2. Lower Operating Costs: Computer is a reliable and time-saving device.
The volume of job handled with the help of computerized system
results in economy and lower operating costs. The overall operating
cost of this system is low in comparison to the traditional system.
3. Improves Efficiency: This system is more efficient in comparison to
the traditional system. The computer makes sure speed and accuracy
in preparing the records and accounts and thus, increases the
efficiency of employees. (1X3=3)

12. PMT: The PMT function calculates the periodic payment for an annuity
assuming equal payments and a constant rate of interest. The syntax of
PMT function is as follows: =PMT (rate, nper, pv, [fv], [type]) where
Rate is the interest rate per period,
Nper is the number of periods,
Pv is the present value or the amount the future payments are worth
presently, future value or cash balance that after the last payment is
made (a future value of zero when we omit this optional argument) Type
is the value 0 for payments made at the end of the period or the value
1 for payments made at the beginning of the period.
The PMT function is often used to calculate the payment for mortgage
loans that have a fixed rate of interest. (5)
PRACTICE QUESTION PAPER 1
Class -XII
Term -II (2021-22)
Subject: Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the
question paper. All questions are compulsory.
2. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks
each.
3. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks
each.
4. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks
each.
5. There is no overall choice. However, an internal choice has been provided in 3
questions of three marks and 1 question of five marks.

Part A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)

S.N QUESTIONS MARK

O S
1 How will you deal with the following Items while preparing final accounts of a 2
school for the year ending 31st March 2017:
Match Fund Rs 45000
Match Expenses Rs 53000
Donation Received for Match Fund Rs 4000
Sales of Match Tickets Rs7500
2 In case of dissolution of firm, which liabilities are to be paid first? 2
3 Kriti, Asma and Ayyar are partners sharing profits in the ratio 4:3:3. On Ayyar’s 2
retirement, the value of firm’s goodwill was agreed at Rs.30,000. Kriti and Asma
agreed to share profits and losses in future in the ratio of 7:3 respectively. Give
necessary journal entry in relation to goodwill, without opening its accounts.
4 On the basis of the information mentioned below, calculated the stationery amount 3
to be debited to income and expenditure account of a Good Health Sports Club for
the year end 31st March 2019. Amount paid for Stationery during the year is
4,70,000

Particulars 1st April 2018 31st March 2019

Stock of Stationery 80,000 60,000

Creditors for Stationery 90,000 1,10,000
OR
Show how would you deal with the following items while preparing the Balance
Sheet of a Club as at 31st March 2019.
Particulars
Sports Fund on 1st April, 2018 5,00,000

18 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

10% Sports Fund Investment on 1st April, 2018 5,00,000
Interest received on Sports Fund Investments 37,500
Donation for Sports Fund 1,20,000
Sports Prize Awarded 1,00,000
Expenses on Sports events 15,000
5 Ramesh, Toni and Roni are partners sharing profits in the ratio 3:2:1. Ramesh died 3
on 10 April, 2021. The sales and profit of 2020-21 were Rs.3,00,000 and Rs.45,000
respectively. Sales from 1st January, 2021 to April 10 was Rs.1,20,000. Find share
of Ramesh’s profit and pass necessary journal entry if:
(i)There is no change in profit sharing ratio of Toni and Roni.
(ii)Toni and Roni decided to share future profits in ratio 3:2.
6 CNC Ltd. Acquired assets worth ₹ 2,90,000 and liabilities worth ₹ 40,000 of Alpha 3
ltd. For ₹ 2,40,000 and issued 10% debentures at a premium of 20% to vendor on
1st April 2021. On 1st June 2021 it took bank loan for ₹ 1,30,000 from Dena bank
and issued debentures worth ₹ 1,50,000 as collateral security.
Record these transactions in the books of CNC ltd.
OR
Pass journal entries for issue of 1,000, 7% debentures of ₹ 100 each in the following
case:
a) Issued at 5% premium redeemable at a premium of 10%.
7 Following in the Balance Sheet of X, Y and Z as on 31st March, 2020. They 5
shared profits in the ratio of 3:3:2.
Liabilities Rs. Assets Rs.
Creditors 2,50,000 Cash at Bank 50,000
General Reserve 80,000 Bills Receivables 60,000
Partner’s Loan A/cs: Debtors 80,000
X 50,000 Less: Prov. For B.D.4,000 76,000
Y 40,000 Stock 1,24,000
Capital A/cs: Fixed Assets 3,00,000
X 1,00,000 Advertisement Suspense 16,000
A/c
Y 60,000 Profit & Loss A/c 4,000
Z 50,000
Total 6,30,000 Total 6,30,000
On 1st April, 2020, Y decided to retire from the firm on the following terms:
(a)Stock to be depreciated by Rs.12,000
(b)Advertisement Suspense A/c to be written off
(c)Provision for Bad and doubtful debts to be increased to Rs.6,000
(d)Fixed Assets be appreciated by 10%
(e)Goodwill of the firm be valued at Rs.80,000 and amount due to retiring partner
be adjusted in X’s and Z’s capital A/cs
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet to
give effect to the above.
Or
P, Q and R are partners in a firm sharing profit in the ratio of 2:2:1. On 31st
December, 2021, the firm was dissolved. On dissolution, the following particulars
are available:
(i) Assets realized Rs 1,80,000 after a loss of Rs 20,000.
(ii) Liabilities were paid Rs 52,000 including an unrecorded liability of Rs
2,000.

19 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

(iii) Realization expenses paid Rs 3,000.
(iv) On the date of dissolution, partners’ capital was in the ratio of 2:2:1.
Prepare Realization Account
8 i. Meghnath Ltd. took a loan of ₹ 1,20,000 from the bank and deposited 5
1,400, 8% Debentures of ₹ 100 each as collateral security along with
primary security worth ₹ 2 lakh. Record necessary journal entries.
How would you show the issue of Debentures and Bank loan in the
Balance Sheet of the Company?
ii. Give journal entries for the issue of debentures in the following
conditions:
a. Issued 2,000, 12% Debentures of ₹ 100 each at a discount of 2%,
redeemable at par.
b. Issued 2,000, 12% Debentures of ₹ 100 each at a premium of 5%,
redeemable at a premium of 10%.
9 Following is the Receipt and Payment Account of St Sofia club for the Year 5
ended 31st March 2021
Receipt Rs Payment Rs
Cash 1-4-2020 8,000 Match expenses 18,000
Subscription (including Rent 20,400
2,000 for2019-20) 51,000 10% Investment 40,000
Interest 2,500 Charity Show Expenses 9,600
Donation for Building 1,00,000 Salaries 50,400
Donation 20,000 Honorarium 10,500
Life membership fee 10,500 Sport Equipment 30,000
Match Fund 20,000 Printing and Stationary 5,000
Proceeds for Charity Show 10,500 Furniture 35,000
Entrance Fee 8,000 Cash 31-3-2021 11,600

2,30,500 2,30,500
On 1-4-2020, Club owned Land and Building valued Rs 1,10,000 and Sports
Equipment Rs 20,000. Subscription due on 31-3-2020 were Rs 3,000 and
subscription unpaid on 31-3-2021 was Rs 6000.
Prepare Income and Expenditure account and Balance sheet assuming that 50%
entrance fees and donation be capitalised and sports equipment as on 31-3-2021
valued at Rs 42,000.
Part-B
Option-I
(Analysis of Financial Statements)
10 Cash advances and loans made by financial enterprises will be shown under which 2
type of activity while preparing cash flow statement? Give reason in support of
your answer.

11 From the following information, prepare comparative income statement for the 3
year ended 2020 and 2021
Particulars 2021(Rs) 2020(Rs)
Revenue from Operation 9,00,000 6,00,000
Other Incomes 1,08,000 1,20,000
Cost of Material consumed 5,40,000 3,00,000
Other expenses 90,000 60,000
Tax rate 40% 40%
OR

20 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Ramanuja ltd decided to set up a charitable dispensary to provide free medical
facilities to weaker sections of the society. Following data is derived from the
company books:
Particulars 31.3.2021 31.3.2020
(₹) (₹)
Share Capital 3,00,000 2,40,000
Reserve and Surplus 80,000 70,000
Trade Payable 1,00,000 1,10,000
Trade Receivables 1,90,000 180000
Short term Provisions 40,000 15,000
Fixed Assets 2,90,000 2,30,000
Long term Provisions 80,000 65,000
Current Investments 10,000 8,000
Inventories 1,01,000 72,000
Cash and Cash Equivalents 9,000 10,000
You are required to Prepare a Common Size Balance Sheet.
12 Following is the Balance Sheet of Sultan Chand Ltd as at 31-03-2021 5
Sultan Chand Ltd.
Balance Sheet as at 31-03-2021
Particulars Note 2020-21 2019-20
No. (Rs.) (Rs.)
I. EQUITY AND LIABILITIES
(1) Shareholders Funds
(a) Share Capital 12,00,000 11,00,000
(b) Reserves and Surplus 1 3,00,000 2,00,000
(2) Non-Current Liabilities
Long-term Borrowings 2,40,000 1,70,000
(3) Current Liabilities
(a) Trade Payables 1,79,000 2,04,000
(b) Short Term-Provisions 50,000 77,000
Total 19,69,000 17,51,000
II. ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 10,70,000 8,50,000
(ii) Intangible Assets 40,000 1,12,000
(2) Current Assets
(a) Current Investments 2,40,000 1,50,000
(Marketable Sucrities)
(b) Inventories 1,29,000 1,21,000
(c) Trade Receivables 1,70,000 1,43,000
(d)Cash and Caxh 3,20,000 3,75,000
Equivalents
Total 19,69,000 17,51,000

Notes to Accounts:
S.No. Particulars 2020-21 2019-20
(Rs.) (Rs.)
Reserves and Surplus:
Surplus, i.e., Balance in 3,00,000 2,00,000
Statement of Profit and loss
Tangible Assets:

21 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Machinery 12,70,000 10,00,000
Less: Accumulated (2,00,000) (1,50,000)
Depreciation 10,70,000 8,50,000
Intangible Assets:
Goodwill 40,000 1,12,000
Additional information:
During the year a piece of machinery, costing RS. 24,000 on which accumulated
depreciation was Rs. 16,000, was sold for Rs. 6,000.
Prepare Cash Flow Statement.

22 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

MARKING SCHEME
PRACTICE PAPER 1
ACCOUNTANCY
CLASS XII
Q.N ANSWER MAR
O KS
1 Match fund 45000 2
+Donation received for Match Fund 4000
+ Sales of Match Tickets 7500
-Match Expenses 53000
Amount to be shown in balance sheet 3500
2 Outside liabilities are to be paid first. 2
3 (i)Kriti’s Gain 3/10 2
(ii)Ayyar’s Share of Goodwill 9,000
(iii)Kriti’s Capital A/c Dr. 9,000
To Ayyar’s Capital A/c Dr. 9,000
4 Income & Expenditure Account 3
For the year ended on 31st March, 2019
Expenditure Amount Income Amount
To Stationery: (1.5 Mark for 2
Purchase of
Amount Paid 4,70,000
Stationery + 1.5
Add Closing Creditors 1,10,000 marks for Stationery
Consumed)
Less Opening Creditors 90,000
(Only ½ Mark shall
Purchase of Stationery 4,90,000 be deducted in case
only have
Add Opening Stock 80,000
mathematical error
Less Closing Stock 60,000 5,10,000 but concept is
right)

OR
Balance Sheet
As at 31st March, 2019
Liabilities Amount Assets Amount
Sports Funds 5,00,000 Sports Fund Investments
Add: Interest Received on Interest Accrued 5,00,000
Sports Fund Investments 12,500
37,500 (Only ½ Mark shall be
Add: Interest Accrued 12,500 deducted in case only 1 Mark
Add: Donations for Sports have mathematical
Funds 1,20,000 error but concept is
6,70,000 2 Marks right)
Less: Sports Prize
Awarded 1,00,000
5,70,000
Less: Expenses on Sports 5,55,000
Events 15,000

23 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

5 Ramesh’s share of profit 9,000 3
(i)Profit and Loss Suspense A/c Dr. 9,000
To Ramesh’s Capital A/c 9,000
(ii)Toni’s Capital A/c Dr. 4,800
Roni’s Capital A/c Dr. 4,200
To Ramesh’s Capital A/c 9,000
6 Journal 3

date Particulars l.f Dr. Cr.

2021 Sundry assets a/c Dr. 2,90,000
April To creditor a/c 40,000
1 To alpha ltd. 2,40,000
To capital reserve a/c 10,000
(balancing figure)
(for business of alpha ltd. Purchase
for ₹. 2,40,000)
Or
Journal

Date Particulars Dr.( ₹) Cr.( ₹)

(a) Bank a/c Dr. 1,05,000

(i) To debenture app. & allot. a/c 1,05,000
(for application mpney received)

(ii) Debenture appl. & allot. a/c Dr. 1,05,000

Loss on issue of debentures a/c Dr. 10,000
To 7% debentures 1,00,000
To securities premium reserve a/c 5,000
To premium on redemption a/c 10,000
(for 1,000 7% debenture of ₹ 100 issued
at 5% premium & redeemable at 10%
premium)
7 a. Profit on Revaluation will be 5
X 6,000
Y 6,000
Z 4,000
b. Balance of Partners’ Capital A/cs
X 1,10,500
Z 57,000
c. Amount transferred to Y’s Loan A/c 1,18,500
Total of Balance Sheet 6,26,000
Or
Memorandum Balance Sheet

Liabilities Rs Assets Rs
Sundry Liabilities Sundry Assets 2,00,000
(Rs 52,000-2000) 50,000 (Rs 1,80,000 + Rs
Capital A/c (Balance fig) 20,000)

24 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

P 2/5 60000
Q 2/5 60,000
R 1/5 30,000 1,50,000
2,00,000 2,00,000

Realization Account
Particular Rs Particular Rs
To Sundry Assets Ac 2,00,000 By Sundry Liabilities A/c 50,000
To Cash A/c 3,000 By Cash A/c (Assets 1,80,000
(Expenses Paid) Realised)
To Cash A/c By Capital A/c (Loss)
Creditors P 10,000
50,000 52,000 Q 10,000 25,000
Unrecorded Liabilities paid R 5,000
2000

2,55,000 2,55,000
8 i. Journal of Meghnath Ltd. 5

Date Particulars L.F. Credit (₹) Debit (₹)

Amount Amount
i. Bank A/c Dr. 1,20,000
To Bank Loan 1,20,000
(Being taken loan from bank)
Debenture Suspense A/c Dr. 1,40,000
ii. To 8% Debentures 1,40,000
(Being issues 1,400 8%
Debentures of ₹ 100 each as
Collateral Security )

Date Particulars Credit (₹) Debit

Amount (₹)
Amount
a. Bank A/c Dr. 1,96,000
To Deb. Appl. &Allotment 1,96,000
(Being received application
money)
1,96,000
Deb. Appl. & Allotment A/c Dr. 4,000
Disc. On Issue of Deben A/c
Dr.
To 12% Debentures 2,00,000
b. (Being transfer of application
money to Debentures A/, issued at 2,10,000
a discount of 2%)

25 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Bank A/c Dr.
To Deb. Appl. & Allotment
(Being received application 2,10,000
money)
2,10,000
Deb. Appl. & Allotment A/c Dr. 20,000
Loss On Issue of Deben. A/c Dr.
To 12% Debentures 2,00,000
To Securities Prem.Reserve 10,000
To Prem. On Red. Of deb. 20,000
(Being transfer of application
money to Debentures A/, issued at
a discount of 2%)
9 Deficit 21400:Capital Fund 1,41,000 Total of balance sheet 2,46,100 5
10 Operating activity. Reasons: Advances and Loan made by financial enterprises is 2
their main operating activity
11 3
Particulars 31.3.2020 31.3.2021 Absolute %
(Rs) (Rs) Change Change
Revenue from 6,00,000 9,00,000 3,00,000 50%
Operation(A)
Other
Incomes(B) 1,20,000 1,08,000 (12,000) (10%)
Total(A+B=C) 7,20,000 10,08,000 2,88,000 40%
Expenses:-
Cost of
Material 3,00,000 5,40,000 2,40,000 80%
consumed (D)

Other 60,000 90,000 30,000 50%

expenses(E)
Total Expenses 3,60,000 6,30,000 2,70,000 75%
(F=D+E)

Profit Before 3,60,000 3,78,000 18,000 5%

Tax (C-F=G)
Tax(H) (1,44,000) (1,51,200) (7,200) 5%
Profit After 2,16,000 2,26,800 10,800 5%
Tax
(G-H)

OR
Ramanuja ltd.
Common Size Balance Sheet
As at 31st march 2017 and 2018
Particulars Note Absolute Amounts Percentage of
No. Balance Sheet
Total
2020 2021 2020 2021
EQUITY & LIABILITIES:

26 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Shareholder’s Funds
(a) Share Capital 2,40,000 3,00,000 48.00 50.00
(b) Reserve & Surplus 70,000 80,000 14.00 13.33
Non Current Liabilities
Long term provisions 65,000 80,000 13.00 13.33
Current Liabilities
(a) Trade Payables 1,10,000 1,00,000 22.00 16.67
(b) Short Term
Provisions 15,000 40,000 3.00 6.67
Total 5,00,000 6,00,000 100.00 100.00
ASSETS:
Non Current Assets
(a) Fixed Assets 2,40,000 2,90,000 46.00 48.33
Current Assets:
(a) Current 8,000 10,000 1.60 1.67
investments 72,000 1,01,000 14.40 16.83
(b) Inventory 1,80,000 1,90,000 36.00 31.67
(c) Trade
Receivables 10,000 9,000 2.00 1.50
(d) Cash & Cash
Equivalents
Total 5,00,000 6,00,000 100.00 100.00
12
Cash flow from operating activity=Rs.1,53,000

Cash flow from Investing activity=Rs.(2,88,000)

Cash flow from Financing activity=Rs1,70,000

Net increase in Cash and cash equivalent=

Rs.35,000
Opening Balance Of cash and cash Equivalent:-
Current Investments=1,50,000 Rs.5,25,000
Cash and Cash equivalents=3,75,000

Closing balance of cash and cash equivalents:

Current Investments 2,40,000
Cash and Cash equivalents 3,20,000
Rs.5,60,000
Machinery Account
Particulars Amount Particulars Amount
(Rs.) (Rs.)
To Balance b/d 10,00,000 By Bank A/c 6,000
To Bank A/c (Bal. 2,94,000 By Accumulated
Figure) Depreciation 16,000
By Loss on sale of
machinery 2,000
By Balance c/d 12,70,000
12,94,000 12,94,000
Accumulated Depreciation Account

27 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Particulars Amount Particulars Amount
(Rs.) (Rs.)
To Machinery A/c 16,000 By Balance b/d 1,50,000
To Balance c/d 2,00,000 By Statement of Profit 66,000
and Loss (Bal. Fig.)
2,16,000 2,16,000

28 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

MARKING SCHEME
PRACTICE PAPER 2
ACCOUNTANCY
CLASS XII
Q.NO ANSWER MARKS
1 Case (i) Dr Income and Expenditure account Rs 10,000. 2
Case (ii) Tournament Fund Rs 10200 (23,000-12,800)
Case (iii) Tournament Fund 23,400:8 % tournament fund Investment
Rs 23,000
2 Dissolution of partnership Dissolution of firm 2
Dissolution of Partnership refers Dissolution of Partnership firm
to change in existing agreement refers to complete close down of
among partners. the business.
Firm continue with the Dissolution of the firm means
dissolution of the partnership. dissolution of partnership as
well.
Same book of accounts will Books of accounts are closed
continue as well. with the dissolution of firm.
3 Journal Entries 2

Manoj’s Capital A/c Dr. 1,35,000

Alok’s Capital A/c Dr. 1,35,000
Amit’s Capital A/c Dr. 90,000
Nidhi’s Capital A/c Dr. 90,000
To Goodwill A/c 4,50,000
Manoj’s Capital A/c Dr. 1,20,000
Alok’s Capital A/c Dr. 20,000
To Amit’s Capital A/c 20,000
To Nidhi’s Capital A/c 1,20,000
4 3
Particulars Amount (Rs.)

Subscriptions received during the year 50,000

(+) Subscriptions Outstanding for 31st

4,500
March, 2021 (6,000 – 1,500)

(+) Subscriptions Received in advance an

8,000
31st March, 2020

(-) Subscriptions Received in advance on

(9,000)
31st March, 2021

(-) Subscriptions Outstanding on 31st

(18,500)
March, 2020 (20,000 – 1,500)

Income from subscriptions for the year

35,000
2020-21

35 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

OR

Particulars Amt (Rs)

Payment for purchases of medicine 3,70,000

(-) Decrease in Creditors for medicines during the

(8,000)
year 2021 (25,000 – 17,000)

(-) Increase in Advance for medicines during the

(6,700)
year 2021 (18,200 – 11,500)

Purchases of medicine during the Year 2021 3,55,300

(+) Opening stock of medicines on 1st April, 2020 62,000

(-) Closing stock of medicine on 31st March, 2021 (54,000)

= Medicine consumed during the year 2021 3,63,000

5 S’s share in profit 20000 3
S’s share in goodwill to be paid by M and P 80000 and 40000
respectively.
2 marks for entries
6 Sundry Assets A/c Dr. 1,90,000 3
To Vendors 1,90,000
(Assets purchased from vendors)
Vendors A/C Dr. 1,90,000
Discount on Issue of Debenture A/c Dr. 10,000
To 10% Debentures A/c 2,00,000
(Allotment of 2,000 debentures of Rs 100 each at a discount of 5% as
purchase consideration)
Or

7 a. Profit on Revaluation will be 5

36 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Kanika 40,000
Disha 20,000
Kabir 20,000
b. Balance of Partners’ Capital A/cs
Disha 80,000
Kabir 60,000
c. Balance transferred to Kanika’s Loan A/c 3,00,000
Or
Particular Dr Cr
BankA/C Dr. 40,000
Manav Dr. 32,000
To Realisation A/c 72,000
(Being 50% stock taken over by Manav at a dis.
Of 20% and balance realized in cash)
BankA/c Dr. 54,000
To Realisation A/c 54,000
(Being debtors realized in cash)
RealisationA/c Dr. 5,000
To Vishwas 5,000
(Being expenses met by Vishwas)
RealisationA/c Dr. 1,000
To Bank A/c 1,000
(Being contingent liability met)
GeneralReserveA/c Dr. 30,000
To Abhishek 10,000
To Manav 10,000
To Vishwas 10,000
(Being distribution of general reserve among
partners)
BankA/c Dr. 1,000
To Realisation A/c 1,000
(Being sale of unrecorded computer )
8 Date Particulars LF Debit Rs. Credit 5
Rs.
2017
Apr1 Bank A/c 6,00,000
To Debenture Application &Allotment A/c 6,00,000
(Being application money received)
Apr 1 Debenture Application &Allotment A/c 6,00,000
Loss on issue of debentures A/c 30,000
To 9% Debentures A/c 6,00,000
To Premium on redemption of Debentures 30,000
(Being application money transferred)
2018 Securities Premium Reserve A/c 10,000
Statement of Profit &Loss A/c 20,000
To Loss on issue of debentures A/c 30,000
(Being Loss on issue of debentures written off)

37 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

9 Income & Expenditure Account 5
For the year ended on 31-03-2020
Expenditures Amount Incomes Amount
To Salaries 44,000 By Subscription
Add: Outstanding 48,000 96,000
4,000 18,400 Add: 1,00,000
To Drama Expenses 2,500 Outstanding for 8,000
To Newspapers 3,600 the year 2019-20
To Municipal Taxes 32,200 4,000 24,000
To Refreshments 6,000 By Entrance 150
To Lighting and Heat Fees
To Medical Consumed By Sale of
Purchased during Drama Tickets
the year 4,000 By Sale of 1,800
Less: Closing Stock 3,000 Waste Paper
1,000 By Interest on
To Depreciation on Investment
Furniture: 1,350
On ₹ 40,000 for 1 year Add: Accrued
4,000 Interest
On ₹ 10,000 for 4,250
3 months 250 450
To Excess of Income 16,000
over Expenditure 1,33,950 1,33,950
10 Net increase in working capital means that the decrease in current assets 2
and increase in current liabilities is more than the increase in current
assets and decrease in current liabilities. So the net effect is increase in
cash flow from operating activities.
11 Rajasthan Royals Ltd. 3
COMMON SIZE STATEMENT OF PROFIT & LOSS
For the year ended 31.03.2018
Particulars Note Absolute % of
No. amounts Revenue
from
Operations
₹
I. Revenue from 2,00,000 100.00
Operations
II. Other Incomes 15,000 7.50
III. Total Revenue (I+II) 2,15,000 107.5
IV. Expenses :
Cost of Material 1,10,000 55.00
Consumed
Other Expenses 5,000 2.50
1,15,000 57.50
Total Expenses

38 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

V. Profit before Tax 1,00,000 50.00
(III-IV)
VI. Less : Tax 40,000 20.00
VII. Profit after Tax (V- 60,000 30.00
VI)
12 R.S. Ltd. 5
Cash Flow Statement
(for the year ended 31st March,2021)
Amount
Particulars
(Rs)

Cash Flow from Operating

A.
Activities

Net profit before Tax and

3,50,000
Extraordinary Items (W.N)

Adjustments for Non-cash and

Non-Operating Items

(+) Goodwill Written off 50,000

(+) Interest on Debentures 42,000

(+)Depreciation 1,10,000

(+) Loss on sale of Machinery 10,000 2,12,000

Operating Profit before Working

5,62,000
Capital Changes

(-)Increase in Current Assets and

Decrease in Current Liabilities

Inventories (50,000) (50,000)

Net Cash from Operating Activities 5,12,000

Cash Flow from Investing

B.
Activities

Proceeds from Sale of Machinery 30,000

Purchase of Machinery (7,00,000)

Purchase of Non-Current
(50,000)
Investments

39 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Net Cash used in Investing
(7,20,000)
Activities

Cash Flow From Financing

C.
Activities

Proceeds from Issue of Share

2,00,000
Capital

Increase in Bank Overdraft 75,000

Interest on Debentures Paid (42,000)

Proceeds from Issue of Debentures 1,00,000

Proposed Dividend Paid (1,25,000)

Net Cash Flow From Financing

2,08,000
Activities

Net Decrease in Cash and Cash

0
Equivalents

(+) Cash and Cash Equivalents in

the Beginning of the year (Cash and
1,13,000
cash equivalents 43,000+Current
investment 70,000)

Cash and Cash Equivalents at the

End of the year (Cash and cash
1,13,000
equivalents 73,000 + current
investment 40,000)
Working Notes

1. Calculation of Net Profit before Tax and Extraordinary Items

Profits as per statement of profit and Loss

1,50,000
(2,50,000-1,00,000)

(+) Proposed dividend 2,00,000

Rs.3,50,000
2. Machinery Account
Dr. Cr

Amount
Particulars Particulars Amount (Rs.)
(Rs)

40 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

To Balance b/d 10,55,000 By Bank A/c (Sale) 30,000

To Bank A/c By Accumulated

7,00,000 40,000
(Purchases) Depreciation A/c

By Statement of
Profit and Loss (Loss 10,000
on Sale)

By Balance c/d 16,75,000

17,55,000 17,55,000
3. Accumulated Depreciation Account
Dr Cr

Amt
Particulars Particulars Amt (Rs)
(Rs)

To Machinery A/c
(Depreciation on 40,000 By Balance b/d 1,40,000
Machinery Sold)

By Depreciation
A/c
To Balance c/d 2,10,000 1,10,000
(Statement of
Profit and Loss)

2,50,000 2,50,000
4. Net Cash Flow from Operating Activities=Rs.5,12,000
Net Cash used in Investing Activities=Rs.(7,20,000)
Net Cash Flow from Financing Activities=Rs.2,08,000

5. Above Cash Flow Statement is prepared as per Accounting

Standard 3(Revised).
6. Cash and Cash Equivalents include Cash, Bank, Short Term
Deposits, Current Investment and marketable securities.
7. Dividend paid to shareholders is a financing activity as dividend is
paid on the Share Capital of the company. Share Capital is to be
shown as Financing Activity in Cash Flow Statement.
8. If between two accounting years amount of goodwill decreases it is
added to Net Profit before Tax and Extraordinary Items

41 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

SAMPLE QUESTION PAPER 3
Class -XII
Term -II (2021-22)
Subject: Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the
question paper. All questions are compulsory.
2. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks
each.
3. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks
each.
4. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks
each.
5. There is no overall choice. However, an internal choice has been provided in 3
questions of three marks and 1 question of five marks.

Part A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)

S.N QUESTIONS MARK

O S
1 Calculate amount of subscription to be shown in Income and Expenditure 2
Account as on March 31, 2019:
Subscription received during 2018-19 Rs. 30,000
Subscription due as on April 01, 2018 Rs 4,000
Subscription due as on March 31, 2019 Rs 5,000
Subscription received in advance as on April 01, 2018 Rs 3,000
Subscription received in advance as on March 31,2019Rs 2500
2 Record the necessary journal entries : 2
(a) Creditors worth Rs 85,000 accepted, 40,000 in cash and investment woth
Rs 43,000 in full settlement of their claim.
(b) Creditors worth Rs 16,000 accepted machinery value at Rs 18,000 in
settlement of their claim.
3 Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 2
6:5:4. Ramesh retired and his capital after making adjustments on account of
reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400.
Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim.
Pass necessary journal entry for the treatment of goodwill. Show workings clearly
4 Calculate the amount of sports material to be transferred to Income and 3
Expenditure account of SHIVANIS ports Club, Ludhiana, for the year ended 31st
March, 2018:-
Particulars Amount (₹)
i. Sports Material sold during the year (Book Value ₹ 50,000) =56,000
ii. Amount paid to creditors for sports material = 91,000
iii. Cash purchase of sports material = 40,000
iv. Sports material as on 31.3.17 = 50,000
v. Sports Material as on 31.3.18 = 55,000
vi. Creditors for sports material as on 31.3.17 = 37,000
vii. Creditors for sports material as on 31.3.18 = 45,000

42 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

OR
Prepare Receipt and Payments Account of sports club, Jaipur for the year ending
31st March , 2020 from the following information:
Cash balance on 1-4-2019 Rs.11,000; subscription fee of 2,000 members @ Rs.
50 each received, 100 members paid subscription for next year.
Salary paid @ Rs. 1,000 p.m. up to February 2020 salary for march, 2020 is
outstanding. Furniture purchased Rs. 8,500, investments Rs. 80,000. Rent @Rs.
10,000 p.a. has been paid up to June, 2020.
5 A, B and C are partners in a firm whose books are closed on March 31st each 3
year. A died-on 30th June 2018 and according to the agreement the share of
profits of a deceased partner up to the date of the death is to be calculated on the
basis of the average profits for the last five years. The net profits for the last 5
years have been: 2014 Rs. 14,000: 2015 Rs. 18,000: 2016 Rs. 16,000; 2017 Rs.
10,000 (loss) and 2018 Rs. 16,000. Calculate A’s share of the profits up to
the date of death and pass necessary journal entry assuming:
(a) there is no change in the profit-sharing ratio of remaining partners:
(b) There is change in the profit-sharing ratio of remaining partners, new ratio
being 3: 2.
6 XYZ Industries Ltd., issued 2,000, 10% debentures of Rs 100 each, at a premium 3
of Rs 10 per debenture payable as follows:
On application Rs 50
On allotment Rs 60
The debentures were fully subscribed and all money was duly received.
Record the journal entries in the books of a company.
Or
Blue Prints Ltd., purchased building worth Rs 1,50,000, machinery worth Rs
1,40,000 and furniture worth Rs 10,000 from XYZ Co., and took over its
liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. Blue Prints
Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each
at a premium of 5%. Record necessary journal entries.
7 P, Q and R are partners sharing profits and losses in the ratio of 3:2:1 respectively. 5
The balance sheet of the firm as on 1st April, 2021 was as under:
Liabilities Rs. Assets Rs.
Creditors 24,000 Bank 10,000
Outstanding Salary 10,000 Debtors 25,000
Reserve 18,000 Less: Provisions 1,000 24,000
Capital A/cs: Stock 30,000
A Furniture 16,000
59,000
B 40,000 Plant & Machinery 48,000
C 21,000 1,20,000 Building 44,000
Total 1,72,000 Total 1,72,000
Q retires on the above date and it was agreed that:
(i)The goodwill of the firm is valued at Rs.24,000
(ii)Furniture, Plant and Machinery are depreciated by 10% and 6% respectively
(iii)Bills receivables of a customer Rs.5,000 discounted from bank was decided
to create provision for doubtful debts on debtors @ 5%
(iv)Stock is appreciated by 10% and building is valued at Rs.53,000
(v)Revaluation expenses Rs.750 were paid by the firm
(vi)The amount due to Q is to be transferred to his loan account
Pass journal entries, Prepare Revaluation Account, Capital Accounts and Opening
Balance Sheet of the new firm.

43 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Or
Ram and Shyam were partner in a firm sharing profit in the ratio of 2:3
respectively. They became old and no one was there to look after their business.
Therefore, they decided to dissolve the business and donate the amount available
to an N.G.O who are providing the service for growing trees in urban areas to
control pollution. On 31st January, 2021, their Balance Sheet was as follows:

Liabilities Rs Assets Rs
Creditors 65,000 Land 1,20,000
Bill Payable 35,000 Machinery 65,000
Capital Accounts: Goodwill 10,000
Ram 75,000 Stock 25,000
Shyam 75,000 2,50,000 Debtors 20,000
Cash 10,000
Ram paid the creditors at a discount of 15 % and Shyam paid bills payable in full.
Assets realized : Land at 20 % less, Machinery Rs 35,000; Stock 25 %
less;Debtors Rs14,000. Expenses of realization paid by Shyam were Rs 1,750.
Prepare Realization Account, and Capital Account of partners to close the books
of the firm.
8 Animesh Ltd. issued 1,000, 12 % Debenture of 100 each in the following manner: 5
1. For cash at par at Rs. 50,000 nominal value.
2. For creditors of Rs. 45,000 against purchase of machinery at nominal
value of Rs. 35,000.
3. To S.B.I. bank against a loan of Rs. 10,000 as collateral security at
nominal value of Rs. 15,000.
Pass Journal entries.
9 Following is the Receipts and Payments Account of Modern Club, New Delhi for 5
the year ending 31stDecember ,2021.
Receipts Amount(Rs.) Payments Amount(Rs.)
To Balance b/d 1-1- 2,300 By Match Expenses 6,800
2021
To Subscriptions 56,400 By Rent 9,600
To Interest 300 By Salaries 24,000
To Donations 6,000 By Sundry Expenses 3,600
To Donations for 50,000 By Investments 30,000
Building Fund purchased
To Match Fund 10,000 By Newspapers 750
To Miscellaneous 430 By Sports Equipment 32,000
Receipts
To Sale of Grass 100 By Balance c/d 31-12- 18,780
2021
1,25,530 1,25,530
Subscriptions outstanding at the end of 2016 were Rs.4,000 and at the end of
2021 were Rs.6,000. Salaries outstanding on 31st December 2020 and 31st
December 2021 were Rs.2,000 and Rs.2,500 respectively.
On 31st December 2020 the club had investments worth Rs.12,000; Furniture
10,000 and Sports Equipment valued at Rs.20,000.
Prepare Income and Expenditure A/c for the year ended 31st Dec 2021
Part-B
Option-I
(Analysis of Financial Statements)

44 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

10 State the category of the following items for a financial as well as non-financial 2
company
(i) Dividend received (iii) Interest paid
(ii) Dividend paid (iv) Interest received
11 From the following information, prepare a Comparative Statement of Profit and 3
Loss:
Particulars 31st March, 21 31st March, 20
Revenue from Operations 24,00,000 18,00,000
Other Incomes (% of Revenue from 15% 25%
Operations) 60% 50%
Expenses (% of Revenue from Operations) 40% 40%
Tax Rate
OR
From the following Balance Sheet of R Ltd., Prepare a Common Size Statement.
Balance Sheet
as at 31st March, 2019
Particulars Note No. 31-03-19 31-03-18
I EQUITY AND LIABILITIES
(1) Shareholder’s Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves & Surplus 1,60,000 1,20,000
(2) Current Liabilities
(a) Trade Payables 1,40,000 80,000
Total 8,00,000 6,00,000
II. ASSETS:
(1) Non Current Assets
(a) Fixed Assets
(i) Tangible Assets
3,20,000 2,40,000
(ii) Intangible Assets
40,000 60,000
(2) Current Assets
(a) Inventories
1,60,000 60,000
(b) Trade Receivables
2,40,000 2,00,000
(c) Cash and Cash Equivalents
40,000 40,000
Total
8,00,000 6,00,000
12 From the following summarized Balance Sheet of a company, prepare cash flow 5
statement as on 31st March, 2021:
Particulars Note 2020-21 2019-20
no
A) Equity and liabilities: (Rs.) (Rs.)
Shareholder’s funds:
Share capital 15,00,000 4,00,000
Reserve and surplus (profit and 2,50,000 1,10,000
loss balance)
Non current liabilities:
Long term borrowings 2,00,000 1,25,000
Current liabilities:
a) Short-term borrowings 12,000 10,000
b) Trade payables 15,000 83,000
c) Short-term Provisions 18,000 11,000
Total 19,95,000 17,39,000
45 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH
B) Assets:
1) Non-current Assets :
Fixed assets:
Tangible assets
Intangible assets 18,60,000 16,10,000
2.Current Assets: 50,000 30,000
i) Current Investment
ii) Inventories 8,000 5,000
iii) Trade Receivables 37,000 59,000
iv)Cash and cash equivalents 26,000 23,000
14,000 12,000
Total
19,95,000 17,39,000

Notes to Accounts:
PARTICULARS 2017-18 2016-17
Reserves and Surplus
Surplus(Balance in Statement of Profit 2,50,000 1,10,000
and Loss
Short-term Borrowings 12,000 10,000
Bank Overdraft
Short-term Provisions 18,000 11,000
Provision for Tax
Tangible Assets 20,00,000 17,00,000
Machinery (1,40,000) (90,000)
Accumulated Depreciation
Intangible Assets 50,000 30,000
Patents

Additional Information:
Tax paid during the year amounted to Rs. 16,000.
Machine with a net book value of Rs.10,000(Accumulated Depreciation
Rs.40,000) was sold for Rs.2,000
Prepare a Cash Flow Statement.

46 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

MARKING SCHEME
PRACTICE PAPER 3
ACCOUNTANCY
CLASS XII
Q.N ANSWER MARK
O S
1 Calculate amount of subscription to be shown in Income and 2
Expenditure Account as on March 31, 2019:
Subscription received during 2018-19 Rs. 30,000
Subscription due as on April 01, 2018 Rs 4,000
Subscription due as on March 31, 2019 Rs 5,000
Subscription received in advance as on
April 01, 2018 Rs 3,000
Subscription received in advance as on
March 31, 2019 Rs 2500
2 Particular Dr Cr 2
Realization A/c 40,000
To Cash A/c 40,000
(Being Rs 40,000 paid and investment of Rs
43,000 accepted by Creditors worth Rs 85,000
in full settlement)

Cash A/c 30,000

To Realization A/c 30,000
(Being Creditors settled)
3 JOURNAL ENTRY 2
Suresh’s Capital A/c Dr. 23,760
Tushar’s Capital A/c Dr. 15,840
Ramesh’s Capital A/c 39,600
(Being goodwill adjusted)
4 Calculate the amount of sports material to be transferred to Income and 3
Expenditure account of SHIVANIS ports Club, Ludhiana, for the year
ended 31st March, 2018:-
Particulars Amount (₹)
Payment to creditors of sports material 91,000
Add: Closing creditors of sports material 45,000
Less: Opening creditors of sports material (37,000)
Add: Cash purchases of sports material 40,000
Total purchases 1,39,000
Less: Sports material sold during the year (Book Value) (50,000)
Add: Opening stock of sports material 50,000
Less: Closing stock of sports material (55,000)
Amount to be shown to Income and Expenditure Account 84,000
Or
SPORTS CLUB
RECEIPTS AND PAYMENTS ACCOUNT
For the year ended 31st March, 2020

47 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Receipts Payments
To balance b/d 11,000 By salaries 11,000
1000x11

To subscription 1,05,000 By furniture 8,500

2019-2020
(2000x50) 1,00,000
2020-2021
(100x50) 5,000

By investment 80,000

By rent (15 12,500

month)
By balance c/d 4,000

1,16,000 1,16,000

5 3

6 Bank A/c Dr. 1,00,000 3

To 10% Debenture Application A/c
1,00,000
(Application money Rs 50 per debentures received)
10% Debenture Application A/c Dr. 1,00,000
To 10% Debentures A/c
1,00,000
(Transfer of application money )
10% Debenture Allotment A/c Dr. 1,20,000
To 10% Debentures A/c
1,00,000
To Securities Premium A/c
20,000
(Allotment money due on debentures including the premium)
Bank A/c Dr. 1,20,000

48 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

To 10% Debenture Allotment A/c
1,20,000
(Allotment money received)
Or
Building A/c Dr. 1,50,000
Plant & Machinery A/c Dr. 1,40,000
Furniture A/c Dr. 10,000
Goodwill A/c Dr. 35,000
To Liabilities 20,000
To XYZ Co. 3,15,000
(Purchase of assets and taking over of liabilities of XYZ Co.)
XYZ Co. A/C Dr. 3,15,000
To 12% Debentures A/c 3,00,000
To Securities Premium A/c 15,000
(Issue of 3,000 debentures at a premium of 5%)
Note: 1. Since the purchase consideration is more than net assets taken
over, the difference has been debited to goodwill account.
2. No. of debentures issued = Purchase Consideration/Issue Price of a
Debenture = Rs 3,15,000/105 = 3,000
7 Journal Entries
Reserve A/c Dr. 18,000
To P’s Capital A/c 9,000
To Q’s Capital A/c 6,000
To R’s Capital A/c 3,000
Debtors A/c Dr. 5,000
To Bank A/c 5,000
Revaluation A/c Dr. 5,730
To Furniture A/c 1,600
To Plant & Machinery A/c 2,880
To Provision for Doubtful Debts A/c 500
To Bank A/c (Exps.) 750
Stock A/c Dr. 6270
To P’s capital a/c 3135
To Q’s capital a/c 2090
To R’s capital a/c 1045

P’s capital a/c Dr. 6000

R’s capital a/c Dr. 2000
To Q’s capital a/c 8000

Q’s capital a/c Dr. 56090

To Q’s capital a/c 56090
Revaluation Account
Particulars Amount Particulars Amount
To Furniture a/c 1600 By Stock A/c 3000
To Plant and By Building A/c 9000
Machinery a/c 2880
To prov. For 500
D.D.A/c 750
To Bank A/c (Exp.)

49 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

To Profit transferred
to capital a/c
P 3125
Q 2090 6270
R 1045

12000 12000

Partner’s capital Accounts

Particulars P Q R Particulars P Q R
Rs. Rs. Rs. Rs. Rs. Rs.
ToQ’s cap 6000 - 2000 By Bal.b/d 59000 40000 21000
To Q’s Loan - 56090 - By Reserve 9000 6000 3000
a/c
To Bal. c/d 65135 - 23045 By Reval. 3135 2090 1045
a/c
By P’s cap - 6000 -
a/c
By R’s cap - 2000 -
a/c
71135 56090 25045 71135 56090 25045
Or
Realization A/c
Particular Rs Particular Rs
To Land 1,20,000 By Creditors A/c 65,000
To Machinery A/c 65,000 By Bills Payable A/c 35,000
To Goodwill A/c 10,000 By Cash A/c (Assets
To Stock A/c 25,000 realized)
To Debtors A/c 20,000 Land
To Rams Capital A/c 96,000
(Crs taken over) 55,250 Machinery 1,63,750
To Shyam Capital 35,000
A/c 35,000 Stocks
(B/P taken over) 18,750 68,250
To Shyan Capital 1,750 Debtors
A/c 14,000
(Expenses paid) By Loss trans to
Capital A/c
Ram 2/5
27,300
Shyam 3/5
40,950
3,32,000 3,32,000
Partners Capital Accounts

Particular Ram Shyam Particular Ram Shyam

To 27,300 40,950 By Balance 75,000 75,000
Realization b/d
A/c (Loss) By 55,250 35,000
To Cash 1,02,950 70,800 Realization
A/c A/c -- 1,750

50 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

(Final (Liabilities
Payment) taken)
By
Realization
A/c
(Expenses
paid)

1,30,250 1,11,750 1,30,250 1,11,750

8 5
Dr. Cr.
Particulars
(Rs.) (Rs.)

Debentures application and allotment a/c Dr. 50,000 …..

To 12% Debentures a/c ….. 50,000

(Being 12% Debentures issued at par) ….. …..

Bank A/c Dr. 50,000 …..

To Debentures application and allotment

….. 50,000
a/c

(Being money received on 500

….. …..
debentures @ Rs. 100)

Machinery a/c Dr. 45,000 …..

To Vendor’s a/c ….. 45,000

(Being machinery purchased) ….. …..

Vendor a/c Dr. 45,000 …..

To 12% Debentures a/c ….. 35,000

To Securities Premium a/c ….. 10,000

(Being Debentures issued to vendors at a

….. …..
premium)

Bank a/c Dr. 10,000 …..

To Bank Loan a/c ….. 10,000

(Being Loan borrowed) ….. …..

Debentures suspense a/c Dr. 15,000 …..

51 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

To 12% Debentures a/c ….. 15,000

(Being Debentures issued as collateral

….. …..
security)
9 Surplus = Rs. 11,780 (4 Marks) 5
Capital Fund = Rs.46,300;
Total of Opening Balance Sheet = 48,300 (1Mark)
10 Payment of interest and dividend is classified as Financing Activity. 2

Receipt of interest and dividend is classified as Investing Activity.

11 Comparative Statement of Profit and Loss 3

For the year ended on 31st March, 2020 and 2021
Particulars Note 31st 31st Absolute %
No. March, March, Change Change
2020 2021
Revenue from 18,00,000 24,00,000 6,00,000 33.33
Operations 4,50,000 3,60,000 (90,000) (20)
Add: Other
Income
Total Revenue 22,50,000 27,60,000 5,10,000 22.67
(i+ii)
Less: Expenses 9,00,000 14,40,000 5,40,000 60
Profit before 13,50,000 13,20,000 (30,000) (2.22)
Tax (iii-iv) 5,40,000 5,28,000 (12,000) (2.22)
Less: Tax @ 40
%
Profit after Tax 8,10,000 7,92,000 (18,000) (2.22)
OR
Balance Sheet
as at 31st March, 2019
Particulars Note Absolute Figures % of /Total
No. 31-03- 31-03- 2018 2019
18 19

I EQUITY AND
LIABILITIES

52 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

(1) Shareholder’s Funds 4,00,000 5,00,000 66.7 62.5
(a) Share Capital 1,20,000 1,60,000 20.0 20.0
(b) Reserves &
Surplus 80,000 1,40,000 13.3 17.5
(2) Current Liabilities 6,00,000 8,00,000 100 100
(a) Trade Payables
Total
II. ASSETS:
(1) Non Current Assets 2,40,000 3,20,000 40.0 40.0
(a) Fixed Assets 60,000 40,000 10.0 5.0
(i) Tangible
Assets 60,000 1,60,000 10.0 20.0
(ii) Intangible 2,00,000 2,40,000 33.3 30.0
Assets 40,000 40,000 6.7 5.0
(2) Current Assets 6,00,000 8,00,000 100 100
(a) Inventories
(b) Trade Receivables
(c) Cash and Cash
Equivalents
Total

12 CASH FLOW STATEMENT 5

for the year ended 31st March, 2021
Particulars Mark
A. Cash flow from operating
activities 2,00,000 ¼
Net profit as per P& L 2,00,000 ¼
statement 4,00,000
Add;- Proposed dividend 80,000 ¼
Net Profit before Tax 2,000 ¼
Add;- Depreciation on 2,00,000 ¼
fixed assets 6,82,000 ½
Loss on sale of
machinery 1,00,000 ¼
Miscellaneous 7,82,000 ¼
expenditure w/o (5,00,000) 2,82,000 ½
Operating profit before
working capital changes
Add :- increase in current ¼
liabilities 10,000 ¼
(6,92,000) (6,82,000) ½
Less :- increase in current
assets

53 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

Net cash generated from 5,00,000 ¼
operating activities (1,00,000) ¼
B. Cash flow from investing 4,00,000 ½
activities
Sale of fixed assets
Purchase of fixed assets ¼
Net cash used in investing NIL
activities
C. Cash Flow from financing
activities
Issue of share
Dividend paid
Net cash generated from
financing activities
D. Net increase in cash and
cash equivalents
( A+B+C)

Working Note:-
Fixed Assets A/c
(1 Mark)

Particulars Amt Particulars Amt

To Balance b/d 12,00,000 By Depreciation 80,000
To Bank (purchase) 6,92,000 A/c 10,000
(Bal. fig) By Bank A/c (sale) 2,000
By Statement of P& 18,00,000
LA/c
18,92,000 By Balance c/d 18,92,000

54 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH