ACCOUNTS

Maximum Marks: 80
Time Allowed: Three Hours
Reading Time: Additional Fifteen Minutes

Instructions to Candidates
1. You are allowed an additional fifteen minutes for only reading the paper.
2. You must NOT start writing during reading time.
3. This Question Paper has 16 printed pages.
4. It is divided into three sections and has 18 questions in all.
5. Section A is compulsory and has ten questions.
6. You are required to attempt all questions either from Section B or Section C.
7. Section Band Section C have four questions each.
8. Internal choices have been provided in five questions in Section A and in
two questions each in Section B and Section C.
9. While attempting Multiple Choice Questions in Sections A, Band C, you are
required to write only ONE option asfhe answer.
I 0. All calculations should be shown clearly.
11. All workings, including rough work, should be done on the same page as, and
adjacent to, the rest of the answer.
~
12. The intended marks for questions or parts of questions are given in the
brackets [].
Instruction to Supervising Examiner
I. Kindly read aloud the instructions given above to all the candidates present in
the examination hall. '

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1225•858 Tur-. over
© Copyright reserved.
SECTION A (60 Marks)
Answer all questions.
Question 1
r the questions
In subparts (i) to (v) choose the correct options and in subparts (vi) to (x) answe
as instructed.
fixed capital method. [1]
(i) Shiv, Ravi and Roshan are partners in a firm following the
year;
During the year 2023-24, Shiv withdrew , 15,000 in the middle of each half
policy ;
Ravi withdrew , 20,000 to pay for premium of his life insurance
Roshan withdrew , 12,000 from his capital.
year, if
What is the interest on drawings charged from the partners at the end of the
?
the rate of interest on drawings mentioned in the partnership deed is 6% per annum
(a) Shiv - , 900; Ravi - Nil; Roshan - , 360
(b) Shiv - , 900; Ravi - , 600; Roshan - Nil
(c) Shiv - , 1,800; Ravi - , 1,200; Roshan - , 720
(d) Shiv - , 900; Ravi - , 1,200; Roshan - J 360
which one (11
(ii) To value the goodwill of a partnership finn at the time of its reconstitution,
find the normal
-- of the following items is added back to the previous year's profit to
profit?
(a) Gain from sale of shares
(b) Insurance premium paid
(c) Undervaluation of closing stock
(d) Overvaluation of closing stock
and [1]
(iii) Read the following news item regarding issue of shares by TVS Supply Chain
answer the question that follows:
TVS Supply Chain IPO
subscrjbed 2.8 times
(Sou~ce: The Hindu, Business Line,15 August, 2023)
with its
Which of the following options can TVS Supply Chain avail to deal
over-subscribed shares?
p Reject all the over-subscribed shares and refund the excess application
money.
Q Allot all shares applied for on
a pro-rata basis.
R Allot all shares applied for.
S Allot in full to some applicants, allot shares on a pro-rata basis to a few
applicants and refund the application money to some applicants.
(a) P, Q andR
(b) Q, Rand S
(c) P, Rand S
(d) P, Q and S

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1225-858 2
(iv) Premium on Redemption of Debentures is debited to:
[1)
(a) Debentures Account
(b) Loss on issue of Debentures Account
(c) Debenture holders' Account
(d) Debenture Application and Allotment Account
(v) Assertion: A partnership firm is said to maintain its accounts
by the fixed capital (11
...... ,......._ account method when it has a separate capital account and current
account
for every partner.
Reason: A fixed capital account method is maintained to ensur
e that the balance in
the current account of any partner is not overdrawn at any point
of time.
Which one of the following is correct?
(a) Both Assertion and Reason are true and Reason
is the correct explanation for
Assertion.

-~ -
(b) Both Assertion and Reason are true but Reason is not the corre
for Assertion.
ct explanation

(c) Assertion is true and Reason is false.

~
(d) Both Assertion and Reason are false. • .
(vi) What does ·a new partner_ acquire by C~J:tributing his share
to the self-generated (II
goodwill of the firm?
(vii) At the time of dissolution of a partnership firm on 31 st March, 2024
, its Bills Payable fl]
oft 42,000 due to be paid on 31 st July, 2024, was settled at a rebat
e of~ 350.
Calcu late the per annu m perce ntage of rebat e at whic h the
Bills Paya ble was
settled.
. --......,...... '{viii) At the time of the dissolution of the partnership firm of
Sanjay and Mitali, its (1)
Balance Sheet show ed Deferred Revenue Expenditure oft 30,00
....-..,i;::
0.
Give the journ al entry to treat this item.
(ix) Read the following news item and answer the questions
which follow: (ll
In a strong display of innovation, IIT Kanpur filed a total of 122
intellectual property
rights (IPR) applications in 2023. To date, it has 1,039 successful
IPRs. The patents
;r• for inventions are from varied domains such as MedTech and Nano
Technology.
(Source (edited): Financial Express. 11. January, 202-1)
(a) Mention the sub-head under which patents would be shown In the
Balance Sheet of a company prepared as per Schedule III of
the Companies
Act, 2013.
(b) Give any one other item under the same sub-head1
(x) Why is it advisable for an unlisted manufacturing company to
start tra_nsferring !ts (11
profits to 'Debenture Redemption Reserve from the year
of the issue of its
non-convertible debentures?

1225-858 3 Turn over

'
L

Question 2 [3]

Ajay and Bijoy are two partners sharing profits and losses in the ratio of 2: 1.
Balance Sheet of Ajay and Bljoy (extract)
As at 31 st March, 2024

Liabilities Assets (f)

(')
Workmen Compensation Reserve 1,200
Additional information:
(a) On 1st April, 2024, they admitted Sujay as a partner with ¼ share in the profits.
(b) The Workmen Compensation Reserve to be reduced tot 900 in the reconstituted
firm.
You are required to give the accounting treatment of Workmen Compensation Re~erve
on the date of Sujay's admission.
OR
Gita 3:1d Mita are partners in a firm sharing profits and losses in the ratio of 3:2. An extract [3J ~
of their Balance Sheet as at 31 st March, 2024, is as follows:
Balance Sheet of Gita and Mita (extract)
As at 31 st March, 2024
(f) Assets (f)
Liabilities
15,000 Plant & Machinery 1,20,000
Creditors
Sundry Debtors 1,50,000
.
Less Provision for ~

Doubtful Debts (15,000) .1,35,000

On the admission of Rita as a third partner for ¼

share in the profits, the assets and liabilities
of the firm were revalued as under:
(i) Creditors include an amount of t 5,000 received as commission from Ajay.
The necessary adjustment to be made.
(ii) Creditors include f 1,000 due to Nikhil paid by partner Gita privately for which she is
not to be reimbursed.
(iii) The value of machinery, overvalued by t 20,000 in the Balance Sheet, to be revised.
(iv) Out of the total insurance premium paid, t 6,000 to be treated as prepaid insurance.
The amount was earlier debited to Profit & Loss Ale.

(v) t 20,000 for damages claimed by a customer had been disputed by the firm. It was
agreed at 70% by a compromise between the customer and the firm.
to~ 20,000.
(vi) The provision for doubtful debts to be increased
You are required to prepare the Revaluation Account.

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4
122S-8S8
j
Question 3
On l st April, 2023, Vishcsh Co. Ltd. made 011 issue, which wns fully 1mbscr
ibcd, of 8,000, (3J
5% Debentures of, l 00 each at a premium of l 0% rcpnyRble nt pnr ot the end
of I0. years,
The debentures were allotted on 31 "' August, 2023, suhscriptiun!I being pnyablc:
l 0% with Application
50% (along with premium) on Allotment
20% with First Call
Balance on the Second & Final Call
One debenture holder holding 200 debentures paid the First Call with Allotment.
You are required to prepare the Cash Book for the year 2023-24 to record
the above
issue of debentures. (Ignore interest on debentures).

OR
Mint Ltd. issued 5,000, 6% Debentures of~ 100 each to be redeemed at par after
five years.
The issue price was payabl e as follows:
f 25 on Applic ation payable on 1st May, 2023
f 25 on Allotm ent payabl e on 1st July, 2023
t 20 on First Call payabl e on 1st October, 2023

Balance on Secon d & Final Call payable on 1st February, 2024

All these debentures were subscribed and amounts due on them duly received.
One debenture holder holdin g 1,000 debentures, paid the amount of both
the calls with
allotment
According to the Articles of Association of the company, interest @ 12%
per annuP} is
payable on calls-in-advance. The interest on calls-in-advance was paid by the compa
ny to the
debenture holder on 1st February, 2024.
r---
The company follow s the financial year and closes its books accordingly.
You are requir ed to prepa re the following for the year 2023-24:
(I) Intere st on Calls- in-Adv ance Accou nt.
(11
(ii) Secon d & Final Call Accou nt.
(21

Question 4
Shyla Ltd., an unliste d manufacturing company, had 30,000, 6% Debentures
of,
~ - • due for redemption at par on 31 st March, 2024. On this date, the company had 100 each
the required
amount in its Deben ture Redemption Reserve.
Investment, as requir ed by the law, made on 1st Ap~l, 2023, earnin
g interest
@ 5% per annum , was realise d at 97% on the date of redempt10n and the debent
ures were
redeemed on the due date.
Tax @ 10% on the interest was deducted at the source of the investment.
You are requir ed to prepa re the following for the year 2023-24:
{I) Deben ture Redem ption Invest ment Accou nt.
(l ½]
(ii) Intere st on Deben ture Redem ption Invest ment Accou nt.
( l ½)

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1225-858 5 --------over
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Question S
Anu, Benu and Sara are partners in n finn sharing profits 'and •losses in the ratio of
4/9 : 2/ : 1/ . Anu retires from the finn on 1'1 At,ril, 2024. She gives half
9 3 1
of her share to
Benu and the ren1aining half to Sara. • • • ; ' .- ' • • • ••

On Anu's retiren1ent, it is decided that goodwill of the firm be valued at two years' purchase
of the average profits of the preceding four years which were as follows: •
Year Profit
- 2020-21 , 40,000 (including gain from speculation t 4,000)
2021-22 , 80,000 (excluding repairs of machinery t 6,000)
2022-23 , 1,10,000 .'
'.

'· .•

2023-24 , 40,000 (loss)

You are required to calculate:
",._.(i) The new profit-sharing ratio of the remaining partners [Link] r_econstituted firm. [JJ
(ii) The firm's goodwill on the date of Anu's retirement. ,. [2)
(Sit ow tl,e workings clearly with the formula) -

Question 6 . [6)
...-
• '

Hoody Ltd. made the following borro~ings ·in the year 2023-24: .
On } st April, 2023: _- _. . _ _
Ten year: 10% Bank Loan from AZ Bank secured by a primary security ana t '2~,00.000
20,000, 6% Debentures oft 100 each as collateral security; the issue of which
was recorded in the books.
On }61 October, 2023:
5 ' 000, 8% Debentures oft 100 each, redeemable [Link] in five equal annual t 5,00,000
instalments.
The tenns of the borrowings were:
• The redemption of 8% Debentures to begin from 30th September, 2024.
• Interest on Bank Loan and Debentures to be paid annually.
Additional information:
In the year 2023-24, the company defaulted on the payment of the interest on bank loan.
You are required to shaw the above Items in Notes to Accounts accompanying the.
Balance Sheet of Boody Ltd, prepared as per Schedule 111 of the Companies Act, 2013~
as at 31 st [Link], 2024.

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1225-858 -~'
Question 7
Uma and Aman were partners in a finn sharing profits and losses in the ratio of 2: J.
They closed their books on 31 st March every year. Uma died on 31 st July, 2024, when the
Balance Sheet of the finn was as follows:
Balance Sheet of Umn and Aman
As at 315t July, 2024
-
Liabilities (t) Assets (t)
Sundry Creditors --
30,000 Cash at Bank 84,000
Loan from U ma 10,000 Fixed Assets 78,000
General Reserve 24,000 Goodwill 24,000
Profit for four months
(before any interest and
appropriations) 62,000
Capital Accounts:
Uma 36,000
Aman 24,000 60,000
1,86,000 1,86,000
According to the terms of their partnership deed:
(a) Interest on capital to be allowed to the partners @4% per annum.
(b) Uma to be allowed a salary oft 250 per month.
The firm's non-purchased goodwill on the date of Uma's death was valued at t 12,000.
The amounts due to Uma were transferred to her representative's loan account.
You are required to prepare:
(i) Uma's Capital Account. (5)
(ii) Uma's Loan Account. (1)
OR ~

Ravi, Ali and Siya are partners in a firm sharing profits and losses in the ratio of [Link]. (6]
Ali retired from the firm on 31 st March, 2024, when the capitals of the partners before the
following necessary adjustments stood at:
Ravi t 23,000
Ali t 12,000
Siya t 9,000
Adjustments:
(a) The firm's goodwill to be valued at~ 21,600.
(b) Loss on revaluation of assets and liabilities to be t 2,700.
On the date of Ali's retirement, the firm had:
General Reserve oft 6,300
Cash & Bank Balance oft 18,600
It was decided that Ali be paid through cash brought in by Ravi and Siya in such a manner
so as to make their capjtals proportionate to their new profit-sharing ratio and a minimum
Cash & Bank Balance oft l 0,000 to be maintained in the reconstituted firm.
You are required to pass journal entries to record the above transactions.

1225-858 7 Turn over

Question 8
• • I d
th · and Farhan
Mihir . were partners n1 a finn sharing profits and losses equally. They disso ve
e1r partners hip firm on 31st March 2024
•
· finn
Balance Sheet of' their 'd
On • . date ' the
1· b ·this apart from the realisable assets and outsi e
ia i1it1es, showed the following: '
Particulars (f)
Mihir's Capital 60,000 (Cr)
Farhan' s Capital 20,000 (Dr)
Workme n Compen sation Reserve 12,000
Profit & Loss Account 6,000 (Cr)
Bank Accoun t .
'?'

On the date of dissolution:

/(a) The firm, upon realisation of assets and settlement of liabilities, suffered a loss
of~ 10,000.
/(b) The amount paid to settle the liabilities exceeded the amount realised from the
sale of the assets by ~ 8,000.
..l(c) Stock worth~ 3,000 was taken over by Farhan .
./(d) Mihir discharg ed the Bills Payable, recorded in the books at~ 5,000, at a rebate
oft 100.
~ e) There was a workme n compensation claim of~ 4,000.
You are require d to prepare on the date of dissolution of the firm:
(i) The Partner s' Capital Accounts.
(ii) The Bank Accoun t to determi ne its balance at bank as shown in the Balance Sheet
as at 31 st March, 2024, represented by'?'.

Questio n 9 [l0J
Tim and Leena started a partnership business on pt July, 2023, with fixed capital
contribu tions oft 3,00,000 and t 2,50,000 respectively.
On 1st January, 2024, they decided that:
The total fixed capital of the firm to be ~ 6,00,000. contributed ?Y the partners in the
profit-sharing ratio. Accordi ngly on 1st January, 2024, Tim and Leena introduced or withdrew
capital.
Their partnership deed contained the following clauses:
(a) Interest on capital to be allowed @10% per annum to both the partners.
(b) Rent @ t 2,000 per month to Tim for the use of his premises for business purposes.
(c) I 0% of the Trading Profit to be transferred to General Reserve.
(d) The profit-sharing ratio of the partners to be 3 :2.
The trading profit of the finn for the first year of the partnership after considering all charges
against profits was , 1,50,000.
You are required to pass journal entries for the year 2023-24.
OR

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1115-858
(A). Nida and Pia, each doing business as sole proprietors, started a partnership on
l'tApril, 2023, with capital contributions of { 5,00,000 and, 4,00,000.
Their partnership deed contained the following clauses:
./(a) Interest on capital to be allowed@ l 0% per annum to both the partners.
-(b} Annual commission of~ 30,000 to be allowed to Nida.
-(c) Interest on drawings to be charged @ 4% per annum.
1°d) The profit-sharing ratio to be 3:2.
~ida withdrew ~ 10,000 during the year 2023-24 .
..-the trading profit of~he firm for the year ending 31 st March, 2024, was, 70,640 before
considering accrued mterest on investments of~ 1,600.
Although the accountant had recorded the drawings m;de by the partners,
he distributed the profits before charging interest on drawings from Nida but after
considering the following:.
• Accrued interest on investments oft 1,600.
• Allowing the appropriations of interest on capital and commission.
You are required to prepare the followi~g for the year 2023-24:
--{i) Profit and Loss Appropriation Account as prepared by the accountant of [S½J
', the firm. .
~) • Nida's Drawings Account. (21

'
o/ Athaving
the beginning of the next financial year, the accountant realised his error of not
charged interest on drawings from Nida. He rectified the error by passing a
(2½] --
single adjustment entry. . .
You are required to give the rectified adjustment entry passed by the accountant.
(Show your workings clearly)

Question 10
Cosmic Ltd. issued 40,000 Equity shares oft 10 each at a premium of~ 1 per share payable:
-·
On Application t3
On Allotment t 4 (including premium)
On First and Final Call Balance

The public applied for 60,000 shares. Pro-rata allotment was made to the applicants of 50,000
share,. Where no allotment was made, money was to be refunded in full.
One shareholder who had applied for 500 shares did not pay the allotment money and his
shares were (orf.s,ited after the allotmentstage. The company was ablel:o unmediately reissue
all the forfeited shares at ~ 5 per sha~
Three months later, the First and Fina.I Call was made to all the shareholders .
. You are required to:
0) Pass Journal entries to record the above transactions in the books of the company. (8½1
•
(II) Prepare the Calls-in-arrears Account. 11 ½}
OR
"4
NM ~o. Ltd. issued a pr«;>sp~ctus inviting a,ppllcations for 12,000 shares. oft· 10 each at a
prenuu1u of~ 1 per share. ' • ••• • • ·
I
The public applied tor 30,000 shares. The cotnpany made pro-rata allotment on 24,000 shares.
A shareholder who had applied for 2,000 shares, was allotted 1,000 shares. After having paid
~ 4 per share on application, he did not pay the allotment money oft S per share (including
premium). •
On his subsequent failure to pay the first call oft 1 per share, his shares were forfeited.
These shares were reissued at the rate of~ 7 per share t 9 paid up ..
The company incurred t 5,000 as share issue expenses. • • .
Based on the informati on given above and the ledger accounts given below, answer the
questions that follow: • ••
Share Issue Expenses Ale
Particula rs Amount( f) Particula rs • Amount( {)
To'?' '?' By'?' '?'
''
•

Calls-in-A rrears Ale

Particulars .
Amount (fl Particula rs Amourit m
To Share Allotment Ale ''?' •• ' Bv Share Canital Ale '?'
.
To Share First Call Ale · ' ' '?'
•
' .
Bv Securities Premium Ale ', .. '?'

You are required to:

(i) Draw the ledger . accounts given •·above,.· fillin~ •~p. the_ missing inform~tion (31
represented by '?' .··\: ••• '· •
(ii) What is the bala~ce .left in the Securities Premium Ale after all the tr~nsactions [l]
relating to the shares have been completed by NM Co. Ltd?.
(iii) Give the journal entries 'ror: • - • • •• • ··- • • .: •• '·· [6]
(a) The amount due on allotment.
(b) The amount received on allotment. -..
(c) Transfer ring the net gain_ made on reissue of shares to Capital Reserve
Account. • .... ,·
SECTIO N B (20 Marks)· .
I
-...~ .. l
Question 11
In subparts (i) and (ii) choose the correct options and in subparts (iii) to (v) answer the_~ .. •
questions as instructed. ~
(i) Red Health, an ambulance aggr~gator has ~aid its employees onl>: half their ~anuary (11
salaries. The company has gone 1n for funding., In ,response to quenes from lvl1n1, Red l
Health's founder and CEO said, "Our funding round is closed and we are waiting i
money to be wired by this week. On the basis of that, and to manage our working !
capital, we had given a choice to our old employees to hold their salaries back."
(Source (edited): Mini, 14 February, 2024)
' 1
!
The original Current Ratio and Quick Ratio of Red Health are more than one. • j
Which one of the following will be correct for the month of January 2024 if the l.
1
company had held back the salaries of its employees for the same month? f
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1225-858 10
(a) Both Cun·ent Ratio and Qu,·ck Rnt10 . . _1
w1 11 uccrease.
(b) Both Current Ratio and Qu,· ·k R . . .
c atm w1 11 mcrcase.
th
{c) No change in e Quick Ratio but the Current Ratio will increase.
(d) No change in th e Current Ratio but the Quick Ratio will increase.
(ii) O_n ~ April, 202 ~, T~rzan Ltd. purchased 7,000, 7% Debentures of~ I 00 each of (JI •
111

d mtcrest of~' 7,000 on [Link] <1eben tu res on 31 ~, Marc h , 2024.

Tmtm Ltd. • h,It1 receive
. fi .
11 5 111 °nnatton be presented in the Cash Flow Statement of Tarzan Ltd. for
How WI t
the year 20 2 3- 24 1
p ~ ?O,OOO as cash outflow in Investing Activity
Q t ?O,OOO as cash outflow in Financing Activity
R t 7 ,OOO as cash inflow in Investing Activity
S t ?,OOO as cash ouflow in Operating activity
(a) Only P and R
(b) Only P and S
(c) · Only P and Q
(d) Only Rand S
-.--
(1)
(iii) . Acc~rd_i~g t~ the ratings agency' Crisil, the food and grocery players will cap their
deb! raismg m FY 25 in order to ensure that one of the key debt protecti on metrics ,
the interest cover, remains healthy in line with the previous fiscal's level of 13 times.
(Source(edited): Financial Express, 23 December, 2023)
a'ou are require d to give the formul a to calculate the interes t cover.
(iv)~ ile preparing the Cash Flow Statement, the accountant of Red Hill Co. Ltd. was [1 J
• undecided about the impact of amortisation of discoun t on issue of debentu res of
, 10,000 on the compan y's Net Operating Profit before working capital changes.
:what should the accoun tant do to resolve this issue? Give a reason for your
answer.
(1)
(v) Read the news item given below and ans~e.f the questions that follow:
Online news aggregator, InShorts, saw its loss widen by over a third during the year
ended March, 2023, tot 309·7 crore, ._ from t 231 ·8 crore in fiscal
2022, as expense
rQse faster than revenue. Advertisement income - the company gets most of its ads on
its app- increased 4 •3% to t 147 crore. The remainder of its income came from support
services. ' '
(Source: Econom ic Times,. November 26, 2023)
.
• .... .•

(a) Mention whethe r Advert ising income is • an operating income or a

non-op erating income for InShor ts.
(b) What is the percen tage inc~ease in loss of InShor ts in the fiscal year
2022-23 as compa red to 2021-22? •••• •
.. •, ~

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1225-858
Question 12 , .• 1 ; ,
l3J
Following are the particulars of RJchmond Ltd.
Particulars 31.03.2024 31.03.2023

• Revenue from Operations 5,00,000

4,00,000
Purchases of stock-in-trade 3,00,000
3,60,000
Op~ing inventory of stock-in-trade 1,40,000
l ,00,000
Ad usted urchases of stock-in-trade 4 10 000
3 20 000
You are required to calculate the absolute change and percentage change of th e
following items at the end of the year 2023-24 vis-a-vis the closing amounts of the
year 2022-23:
(i) Revenue from operations
(ii) Purchases of stock in trade •
(iii) Closing inventory of stock-in-trade

Question 13
Answer any three of the following questions:
(i) Calculate the Gross Profit of Saturn Ltd. from the partlculan given below: [2]
Particulars
Average Inventory 8,000
Inventory Turnover Ratio • 6 times
Selling Price 25% above cost
(ii) Calculate the Trade Receivables Turnover Ratio of Planet Ltd. from the [2]
particulars given below:
Particulars (')
Revenue from Operations
Cash Revenue from Operations 90}
Net Closing Trade Receivables
-·
Provision for Doubtful Debts
(iii) Bajaj Hindustan Sugar, one of the l~gest sugar and ethanol producers, in orc:1Qr to (2)
revive the company, has offered to invest , 2,500 crore as fresh equity of wlii~~
t 1,000 crore has already been infused. ~.
(Source(ediled): Economic Times, Mumbai Edition 08, August, 2023) ••
What will be the effect of this decision of Bajaj Hindustan Sugar on its following
rados? •
(a) Proprietary Ratio
(b) Debt to Total Assets Ratio

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1225-858
(iv) Calculate the Earning per share of Hemisphere Ltd. from the particular! given (2J
below:
Particulars (t)
10% Debentures 5,00,000
8% Bank Loan 3,00,000
5% Preference Share Capital 2,00,000
Profit before Interest and Tax 2,44,000
Provision for Tax 20,000
•
Tax paid 18,000
Equity Share Capital(@, 10 each) 8,00,000

Question 14
From the following information of Realty Ltd., you are required to calculate the (6)
company's Cash and Cash Equivalent as on 315t March, 2024, by preparing a
Cash Flow Statement (as per AS ·3).
-~ Information pertaining to the year 2023-24:
'"(i) Net profit before tax wast 14,00,000.
• (ii) Tax oft 5,00,000 was paid.
(iii) The opening inventory was higher than the closing inventory by t 50,000.
(iv) The Trade Creditors showed a decrease of t 20,000 on 31 st March, 2024, when
compared to the amount of Trade Creditors on 31 st March, 2023.
(v) Plant & Machinery on 315t March 2023, and 315t March 2024, amounted to
~ 20,00,000 and t 26,00,000 respectively.

(vi) New machinery was purchased for t 9,00,000; the purchase consideration being
4% Debentures of the face value of:~ 100 each issued at a discount of 10%.
(vii) The 4% Debentures on 315t March 2023, and 315t March 2024, amounted to
t 5,00,000 and t 20,00,000 respectively. •
(viii) t 60,000 was paid by the company for interest on debentures against the amount due
oft 80,000.
th
(ix) Investments oft 5,00,000 were purchased on 30 November, 2023, on which interest
oft 40 000 was earned and received. ,
' " f f I• '

• (x) The cash and cash equivalent as on 315t March, 2023, was, 3,15,000.

OR

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1225-8S8 Turn over
Read the following information of Celestial Ltd., and answer the questions that follow:
Statement of Profit and Loss
for the ,,ear ended 31 1t Marc h•• 2024 (f)
Particulars Note No.
Revenue from operations 10,00,000
Other Income 1 40,000
Total Revenue 10,40,000
Expenses:
Employee Benefit Expenses 1,60,000
•
• Amortisation
Depree·tat·ton and 2 60,000
Expenses
Finance Cost 3 50,000
Other Expenses 2,20,000
Total Expenses 4,90,000
Profit before Tax S,50,000
Less Provision for Tax (2,00,000)
Profit after Tax 3,50,000

Notes to Accounts:
Particulars (f)
I. Other Income
Interest on Short-term Loans and Advances , 1,00,000
(including interest accrued t 10,000) . .
2. Depreciation and Amortization Expenses: ,
Depreciation on Plant & Machinery ' 60,000
3. Finance Cost
Interest on Debentures (including outstandin~ interest ~ 20,000) 50,000
Additional information: .
1. During the year 2023-24, the company paid ~ax oft 2,50,000.
2. An extract of the Balance Sheets of the company as at 31 st March, 2023, and as
at 31 st March, 2024 is as follows:
Particulars .. • 31 st March, 2024 31 st March, 2023
' (f) (f)
Plant & Machinery (At Gross Value) • 19,00,000 16,00,000
Accumulated Depreciation 4,00,000 5,00,000
Short-term Loans and Advances 5,00,000 6,50,000

(i) State the reason for a part of the accumulated depreciation being written off by [l]
the company. •. :·,;_•., .
(ii) What is the cash flow of interest on debentures? [l)
(iii) Calculate Cash from Investing Activities. (l ½]
(iv) Calculate Cash from Operating Activities. [2½]

1225-858 14