CHENNAI SAHODAYA SCHOOLS COMPLEX

(General Instructions)
 This question paper contains 15 printed pages.
 This question paper contains 34 questions.
 Write down the question number before attempting.
 An additional reading time of 15 minutes.
 All questions are compulsory.
 This question paper is divided into two parts, part A and part B.
Part-A is compulsory for all candidates.
Part -B has two options:(i) ANALYSIS OF FINANCIAL STATEMENTS and
(ii) COMPUTERISED ACCOUNTING.
 Students must attempt ONLY ONE of the given options
 Question 1 to16 and 27 to 30 carries 1 mark each.
Question 17 to 20 ,31and 32 carries 3 marks each.
Questions from 21,22 and 33 carries 4 marks each.
Questions from 23 to 26 and 34 carries 6marks each
There is no overall choice, However, an internal choice has been provided in 7 questions
of one mark, 2 questions of three marks, 1 Question of four marks and 2 questions of
six marks.

COMMON EXAMINATION
Class-12
ACCOUNTANCY 055
Time Allowed: 3 hours Maximum Marks: 80
Roll No.: Date:25/01/2023
Part-A:
Accounting for Partnership Firms and Companies
1.A and B are partners in a firm sharing profits and losses in the ratios of 3:2. They admit C as a
partner for 1/5th share. A and B decide to share future profits and losses in the ratio of
13:7.Sacrificing ratio of A and B will be
a)3:2 b)2:3 c)4:1 d)1:4 (1)
2. Assertion (A):Partners are the agents as well as principals of each other
Reason(R): Partnership is the relationship between two or more person who has agreed to
share profit of a business carried on by all or any one of them acting for all.
In the context of above two statements which of the following is true.
a)Assertion(A) is correct but reason(R) is wrong
b) both Assertion(A) and reason(R) are correct but reason(R) is not the correct explanation
of assertion(A).
c)Both Assertion(A) and Reason(R) are incorrect.
d)Both Assertion(A) and Reason(R) are correct and Reason(R) is the correct explanation
of Assertion(A). (1)
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3.At the time of forfeiture of shares issued at a premium

a)ShareCapital account is debited with the called-up amount of shares forfeited.
b)Share Capital account is debited with nominal value of shares forfeited.
c)Share Capital account is debited with called-up amount (including premium) of shares
forfeited.
d)Share Capital account is credited with the called-up amount of shares forfeited.
OR
G limited had allotted 10000, 7% debentures of Rs.100 each to the applicants of 14000,
7% debentures on pro rata basis. Application money payable was Rs.20 per debenture. Aravind had
applied for 420 debentures.
The number of debentures allotted and the excess application money adjusted against allotment
money due from Aravind are
a)60 debentures, Rs1200 b)320 debentures, Rs2000
c)340 debentures, Rs1000 d)300 debentures, Rs2400 (1)

4)For which of the following situations old profit-sharing ratio of partners is used at the time
of Admission of a partner.
a) When new partner brings only a part of his share of goodwill.
b) When a new partner is not able to bring his share of goodwill.,
c)To write off goodwill existing in the Balance sheet.
d) When the new partner brings his share of goodwill in cash.
OR
A,D and K were equal partners. They decided to change the profit-sharing ratio to 4:3:2.
For this purpose Goodwill of the firm was valued at Rs.90000. The journal entry for the treatment
of goodwill on change in Profit-sharing ratio will be
a) K’s Capital A/c Dr. Rs10000
‘ To A s Capital A/c Rs10000
b) D’s Capital A/c Dr. Rs.10000
To A’s Capital Rs10000
c) A’s Capital A/c Dr. Rs90000
To K’s Capital A/c Rs90000
d) A’s Capital A/c Dr. Rs10000
To K’s Capital A/c Rs10000 (1)

5)Amen, Raman and Namen are equal partners in a firm. Amen gave a loan of Rs500000 to the
firm on 1st July 2021. By the end of the year on 31-03-2022 firm incurred loss of Rs37500
before interest on loan. The effect of this will be
a) Interest on Amen’s loan Rs30000 and loss of Rs22500 to each partner.
b) Interest on Amen’s loan Rs22500 and loss of Rs20000 to each partner.
c) No interest on Amen’s loan and loss of Rs12500 to each partner.
d) No interest on Amen’s loan and loss of Rs37500 will be distributed between Raman and Namen
Equally. (1)

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6) A company issued 50000,4% debentures of Rs100 each at a discount of 5% redeemable after 5

years at a premium of 10%. It received applications for 40000 debentures along with application
money.
Which of the following statements in the context of above is not correct.
a) Pro rata allotment is not applicable since number of debentures applied is less than the number
of debentures issued for subscriptions.
b) Debentures applied will be allotted to all the applicants.
c) Debentures will not be allotted since minimum subscription is not received
d) Debentures can be issues at discount redeemable at premium.
OR
Following journal entries are passed in the books of be limited on issue of Debentures
i) Bank A/c Dr. Rs.384000
To Debentures Application
And Allotment A/c Rs384000
(Application money received)
ii) Debentures Application and Allotment A/c Dr. Rs.384000
Loss on issue of Debentures A/c Dr. Rs.40000
To 8% Debentures A/c Rs.400000
To Premium of Redemption of Debenture A/c
(8% Debentures issued) Rs.24000
Based on the above journal entries identify the amount of discount on issue of Debentures
a) Rs.40000
b) Rs.24000
c) Rs.16000
d) Nil ( 1)

7) Choose the correct option in respect of the following statement

i) Preference shares can be issued at Premium redeemable at Premium
ii) Preference shares can be issued at Discount redeemable at par.
iii) Preference shares can be issued at discount redeemable at Premium.
iv) Preference shares can be issued at premium redeemable at par.

a) (i) and (ii) are correct

b) (i) and (iii) are correct
c) (i), (iii) and (iv) are correct
d) (i) and (iv) are correct.

8.Arun,Varun and Vijai were Partners in a firm sharing profits and losses in the ratio of 5:1 .
Extract of Balance sheet is as follows
Balance sheet ( Extract )
Liabilities ₹ Assets ₹
Machinery 40,000 If the
value of Machinery in the Balance sheet on Varun’s retirement is under valued by 20% ,then
at what value Machinery will be shown in the Balance sheet
(a) ₹ 44,000 ( b) ₹ 48,000 ( c) ₹ 32,000 ( d) ₹ 50,000
OR
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D ,F and L were Partners in a firm sharing profits in the ratio of 3:2:1. On 28th February
2022,F retired from the firm. On F ‘s retirement, there was a balance of ₹ 12,000 in
workmen’s compensation Reserve against which claim does not exist. On F ‘ s retirement,
this amount will be:
( a)Debited to the Capital accounts of all the Partners including Retiring Partner, in their profit
sharing ratio.
( b) Credited to the Capital accounts of all the Partners including Retiring Partner, in their profit
sharing ratio.
( c) Credited to the Capital accounts of D and L in their profit sharing ratio.
( d) Credited to the Capital accounts of F. 1

Read the following hypothetical situation and answer question number 9 and 10
Josh and Krishentered in to a partnership on 1.4.21 and contributed ₹ 8,00,000 and ₹ 6,00,000
respectively as their Capitals. On 1.10.21 Josh gave loans of ₹ 2,00 000 to the firm. The
terms of the Partnership agreement are as follows
( A) 20% of profit before charging interest on drawings but after making appropriations to be
transferred to General Reserve.
( B )Interest on Capital at 12% p.a and Interest on Drawings @ 10%p.a
( c ) Josh to get monthly salary of ₹ 50,000.
( d )Krish is entitled to commissions of ₹ 70,000 p.a
( e) Drawings of Josh and Krish were ₹ 4,00,000 and ₹ 5,00,000 respectively.
Profits for the year ended 31stMarch 22 was ₹ 18,44,000. Before adjustments.

9. Amount transferred to General Reserve will be

( a ) ₹ 2,50,000 ( b) ₹ 2,00,000 ( c) ₹ 3,00,000 ( d) ₹ 1,75,000. 1

10.Distributable profit after all adjustments will be

( A) ₹ 8 50 000 ( b) ₹ 8,60,000 ( c) ₹ 8,72 500 ( d) ₹ 8,45,000 1

11.Shiv,one of the Partner was to receive 2% of the value of net assets realized as
remuneration for completing the dissolution process and was to bear realization expenses.
Realization expenses ₹ 2500 were paid by Shiv . The assets ( excluding Cash at Bank₹
7500) were realized for ₹ 3,75, 000 and Cash paid to Outside Liabilities amounted to ₹
1,00,000. Realization Account for remuneration to Shiv is debited with
( a) ₹ 5650 ( b) ₹ 7,500 ( c) ₹ 5,500 (d) ₹ 6,500. 1

12. P.Ltd had invited applications for 80,000 ,8% Preference shares of ₹100 each.
Applications were received for 1,20,000 shares and allotment was made on pro rata basis to
all applicants. Viral applied for 2400 shares, the number of sharesallotted to him is
( a) 3200 Shares ( b) 2400 shares ( c) 3000 shares ( d ) 1600 shares. 1

13.Assertion ( A) : B Ltd issued for subscription 2,00,000 equity shares of ₹ 5 each at a

premium price ₹ 5 per share payable along with application. Applications were received
for
3 00,000 equity shares and allotment was made to all the applicants on pro rata basis. Amit
had applied for 600 Equity shares and will be alloted 200 Equity shares
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Reason ( R ) : Pro rata allotment will be made in the ratio of 3:2.Since Amit had applied for
600 Equity shares he will be alloted 900 Equity shares.
In the context of above two statements, which of the following is correct ?
( a) Assertion ( A) is correct but Reason ( R ) is wrong
( b ) Both Assertion ( A ) and Reason ( R) are correct but Reason ( R) is not the correct
explanation of Assertion ( A).
( c) Both Assertion (A ) and Reason ( R ) are incorrect
( d) Both Assertion ( A) and Reason ( R) are correct, and Reason ( R ) is the correct
explanation of Assertion ( A). 1

14. Angel and simian were partners in a firm. Their Balance sheet showed Furniture at
₹ 2,00,000;stock at ₹ 1,40,000 ; Debtors at ₹ 1,62 000 and creditors ₹ 60,000 .Tina was
admitted and new profit sharing ratio was agreed as 2:3:5. Stock was revalue at ₹ 1,00,000
Creditors of ₹ 15,000 are not likely to be claimed, Debtors for ₹ 2000 have become
irrecoverable and provision for doubtful debts to be provided at 10%. Angel ‘s share in
loss on Revaluation amounted to ₹ 30,000. Revaluation value of Furniture will be
( a ) ₹ 2,17,000 ( b) ₹ 1,03,000 ( c )₹ 3,03,000 ( d) ₹ 1,83,000 1

15. Gross profit of a partnership firm is ₹ 20,50,000 and indirect expenses other than
Manager’s commission is ₹70,000. The manager is entitled to commission of 10% on Net
profit after changing such commission which amounted to
( a) ₹ 1,95,000 (b) ₹ 2,00,000 ( c) ₹ 1,80,000 ( d) ₹ 1,98 000
OR
The Interest on Ram's drawings for the year is ₹ 6000. He withdrew fixed amount in each
quarter for the year ended 31.3.22 Interest on drawings is charged at 10% p.a. His quarterly
drawings is ( a) ₹ 25,000 ( b) ₹ 20,000 ( c) ₹ 30,000 ( d)₹ 35,000 1

16. At the time of dissolution of a firm creditors are ₹ 3,50,000; Firm’s Capital is ₹
6,00,000; Cash Balance is ₹ 50,000. Other assets realised ₹ 7,50,000. Gain/Loss in the
Realization Account will be (a) ₹ 1,50,000 ( Gain ) ( b )₹ 2,00,000 ( Gain ) ( c) ₹
2,00,000 ( loss)
( d) ₹ 1,50,000 ( loss) 1

17. Harsh Tanish and Manish are partners. They have omitted Interest on Capital at 10% p.a
for
three years ended 31st March 2022 .Their fixed Capital on which interest to be
calculated throughout the year were
Harsh ₹ 1,00,000
Tanish ₹ 80,000
Manish ₹ 70,000
Give the necessary journal entry with working notes. 3
OR
A, B and C entered into partnership on 1.4.21 to share profits and losses in the ratio of 4:3:3.
A guaranteed that C ‘ s share of profit after allowing interest on Capital @5% p.a would not
be less than ₹ 40,000 in any year. The Capital contributions were A ₹ 3,00,000 ; B

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₹2,00,000 ;C ₹ 1,50,000.Profit for the year ended on 31.3.22 was ₹ 1,60,000. Prepare the
profit and loss Appropriation Account.
18.On 1st April 2021,Sahil,Sukesh and Mohan start a business in partnership.Sahil invests ₹60000
at first instance but withdraws ₹20000 at the end of six months.Sukesh introduces ₹50000 at
first and increases it to ₹60000 at the end of four months but withdraws ₹20000 at the end of
eight months.Mohan invests first ₹50000 but increases it by ₹40000 at the end of seven
months.During the year ended 31st march 2022,net profit was ₹45000.Show how the partners
should distribute profit on the basis of the capital employed by each partner.
(Or)
On 1st April 2021,John and Robert started business with initial capital of ₹ 20000 and ₹30000
respectively.The partnership Deed provides as follows:
i.Profits and losses will be shared in the ratio of 2:3 as between John and Robert.
ii.Partners will be entitled to interest on capital @6% p.a.
iii.Interest on drawings will be charged at 8%p.a.
During the year ended 31st march 2022, the firm earned net profit of ₹19280.The partners withdrew
during the year ₹3000 each at the end of every quarter commencing from 30thJune.You are
required to pass necessary Journal entries for interest and distribution of profit. (3m)
19. Apple Orchards Ltd. Purchased Apple Grading Machinery for ₹10,00,000 from Prabhat on 1st
January 2022.It paid the amount as follows:
i.By issuing 7500, 7%p.a. Debentures of ₹100 each at 10% Discount ,redeemable at 10% premium
after 5 years.
ii.balance by cheque dated 1st March 2022.
It does not have balance in Securities Premium Account.Pass the journal entries in the books of
Apple Orchards Ltd.
(Or)
Prime Channels Ltd.took over the running business of star Word Ltd.having assets of ₹5,00,00,000
and liabilities of ₹ 5,00,000 for a consideration of ₹11,00,00,000.The consideration was paid by
i.issuing 10,00,000 Equity Shares of ₹50 each at par;
ii.cheque for ₹1,50,00,000;and
iii.balance by issuing 8% Debentures of ₹100 each at a discount of 10% redeemable at par after 5
years.
Pass the journal entry in the books of Prime Channels Ltd.for payment of consideration giving the
working. (3m)
20.Hari,Ravi and Kavi were partners in a firm sharing profits in the ratio of 3:2:1.They admitted
Guru as a partner for 1/7th share in the profits.New profit-sharing ratio will be 2:2:2:1.Guru
brought ₹3,00,000as his capital and ₹45,000 for his 1/7th share of Goodwill.

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Pass the necessary Journal entries in the books of the firm. (3m)
21.Hp Computers Ltd is a company incorporated on 1st July 2021 with authorised capital of
₹2,00,00,000 divided into 20,00,000 Equity shares of ₹10 each.The Promoters made enormous
efforts in promoting the company incurring expenses from their pockets.Their service were
recognised by the company and issued 50,000 Equity shares of ₹10 each at par to them.The
promoters subscribed 1,00,000 Equity shares at par paying the amount by cheque.It issued for
subscription 10,00,000 Equity shares at a premium of ₹2 each payable ₹ 5 on application and
balance on allotment.Amount due on allotment was received except on 10,000 shares held by
Karan which were forfeited.Out of this,5000 shares were reissued for ₹10 per share as ₹8 paid
up.Show the share capital in the balance sheet of company prepared as per schedule III of the
companies Act 2013. (4m)
22. M and N were partners in a firm .They decided to dissolve the firm on 31st march 2022.The
financial position of the firm as on the date was as follows:
LIABILITIES Rs ASSETS Rs
creditors 80,000 Bank 79,000
Workmen 25,000 Debtors 1,70,000
Compensation
Reserve
Parul’s Current 24,000 Stock 34,000
Account
Capital A/cs: Machinery 79,000
Parul 1,50,000
Gaurav 1,00,000
Gaurav’s Current A/c 17,000
Total 3,79,000 Total 3,79,000
On the above date the firm was dissolved:
i.Parul took 50% of the stock at 10% less than its book value.The remaining stock was sold for
₹10,000.
ii.Debtors were realised 5% less.
iii.An unrecorded asset was sold for ₹9,000 and machinery was sold for ₹18,000.
iv.Creditors were paid in full.
v.There was an outstanding bill for repairs amounting to ₹14,000 which was settled at ₹12,000.
Prepare Realisation Account. (4m)
23.’BMY Ltd’ invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium of
₹10 per share.The amount was payable as follows:

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On application-₹10 per share(including ₹5 premium)

On allotment- balance.
The issue was fully subscribed.A shareholder holding 300 shares paid the full share money with
application.Another shareholder holding 200 shares failed to pay the allotment money.His shares
were forfeited.Later on these shares were re-issued for ₹4000 as fully paid up.Pass necessary
Journal Entries for the above transactions in the book of BMY Ltd.
(Or)
‘Blue star Ltd’was registered with an authorised capital of ₹2,00,000 divided into 20,000 shares of
₹10 each.6000 of these shares were issued to the vendor for building purchased.8000 shares
were issued to the public and ₹5 per share were called up as follows:
On Application-₹ 2 per share
On allotment -₹1 per share
On first Call-Balance of the called up amount
The amount received on these shares were as follows :
On 6,000 shares-Full amount called
On 1,250 shares-₹3 per share
On 750 shares-₹per share .
The directors forfeited 750 shares on which ₹2 per share were received.Pass necessary Journal
Entries for the above transaction in the books of Blue Star Ltd. (6m)
24.Sonu and Monu are partners in a fire sharing profits and losses in the ratio of 3:1. They admit
Gopal for 1/4th share on 31st March 2022 when their Balance Sheet was as follows:
Liabilities Rs Assets Rs
Employee’s 17,000 Stock 15,000
provident fund
Workmen 6,000 Debtors 50,000
Compensation
Reserve
Investment 4100 Less:Provision 48,000
Fluctuation 2,000
Reserve
Capital A/cs: Investments 7000
Sonu 54000
Monu 35000
Cash 6100

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Profit and loss 40,000

account
Total 1,16,100 Total 1,16,100
The following adjustments were agreed upon:
i.Gopal brings in ₹16,000 as goodwill and proportionate capital.
ii.Bad debts amounted to ₹3000.
iii.Market value of investments is ₹4,500.
iv.Liability on account of Workmen Compensation Reserve amounted to ₹2,000.
Prepare Revaluation Account and Partners’Capital Accounts.
(Or)
Following is the Balance Sheet of Aruna,Karuna and Varuna as at 31st March 2022,who have
agreed to share profits and losses in proportion of their capitals:
Liabilities Rs Assets Rs
Capital A/cs: Building 2,00,000
Aruna 2,00,000
Karuna 3,00,000
Varuna 2,00,000 7,00,000
Bills Payable 50,000 Machinery 3,00,000
Sundry Creditors 50,000 Closing Stock 1,00,000
Sundry Debtors
1,10,000
Less:Provision
10,000 1,00,000
Cash at bank 1,00,000
Total 8,00,000 Total 8,00,000

On the above data Aruna retired the firm and the remaining partners decided to carry on the
business.It was agreed to revalue the assets and reassess the liabilities on the following basis:
i.Building to be appreciated by 30%
ii.Machinery to be depreciated by 20%
iii.There were bad debts of ₹17,000.

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iv.Goodwill of the firm was valued at ₹1,40,000 and Aruna’s share of goodwill will be adjusted by
Capital Accounts of the Partners.
v.Capital of the new firm will be same as before the retirement of Aruna and will be in the new
profit sharing ratio of 4:3 of the continuing partners.
vi.Amount due to Aruna be settled by paying ₹50,000 in cash and the balance by transferring it to
her loan account. (6m)
25.The balance sheet of Sudha ,Radha and Karthiga who were sharing profits in the rario of 3:3:4 as
on 31st march2022 was as follows:
Liabilities Rs Assets Rs
General Reserve 10,000 Cash 16,000
Creditors 15,000 Stock 44,000
Loan 12,000 Investments 47,000
Capital A/cs: Land and building 60,000
Sudha 60000 Goodwill 10,000
Radha 50,000
Karthiga 40,000 1,50,000
Sudha’s Loan 10,000

Total 1,87,000 Total 1,87,000

Sudha died on 30th June 2022.The partnership deed provides the following:
i.Goodwill of the firm be valued at 2 years purchase of average profit for the last 3 years.
ii.Average profit of the last 3 years was ₹42,000.
iii.Sudha’s share of profit till the date of her death was to be calculated on the basis of sales.Sales
for the year ended 31.3.2022 amounted to ₹4,00,000 and that from 1st April to 30th June 2022
₹1,50,000.The profit for the year ended 31.3.2022 was ₹1,00,000.
iv.Interest on capital was to be provided at 6%p.a. Prepare Sudha’s Capital Account to be rendered
to her executor. (6m)
26.’M Ltd’ issued 10,000 8% debentures on ₹100 each at par on 1st July 2021 redeemable at 2%
premium on 31st October 2022.The issue price was payable along with application.Balance in
securities premium account was ₹20,000.
i.Pass journal entries for the issue of debentures for the year rendered 31.3.2022.
ii.Prepare premium on Redemption of Debentures Account.

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iii.State whether the issue of Debentures are Long term borrowing or short term borrowing.Give
Reasons. (6m)

PART B
ANALYSIS OF FINANCIAL STATEMENTS
27) Which of the following statement shows the Financial Position of an enterprise as at a given
date?
a) Statement of Profit & Loss.
b) Cash Flow Statement.
c) Balance Sheet.
d) Profit & Loss Account.
OR
Shareholder’s Funds are known from
a) Balance Sheet.
b) Statement of Profit & Loss.
c) Common-size Statement.
d) Cash Flow Statement. 1
28) Which one of the following is correct?
I. Ratio is an arithmetical relationship of one number to another number.
II. Liquid Ratio is also known as Acid test Ratio.
III. Ideally accepted Current Ratio is 1:1
IV. Debt-Equity Ratio is the relationship between Long-term Borrowings and Shareholder’s Funds.
Which of the following option is correct?
a) All I,II III and IV are correct.
b) Only I,II and IV are correct.
c) Only II III and IV are correct.
d) Only II and IV are correct. 1
29) Sony Entertainment Ltd. Declared interim dividend of Rs 2,00,000 in the year ended 31st
March,2022 and Rs 3,00,000 in the previous year. Amount that will be adjusted in preparing the
Cash Flow Statement for the year ended 31st March,2022 will be:
a) Deduct Rs 2,00,000 from Net Profit before Tax and Extraordinary Items under Cash flow from
Operating Activities.
b) Deduct Rs 3,00,000 from Net Profit before Tax and Extraordinary Items under Cash flow from
Operating Activities.
c) Add Rs 2,00,000 to Net Profit before Tax and Extraordinary Items under Cash flow from
Operating Activities.
d) Add Rs 3,00,000 to Net Profit before Tax and Extraordinary Items under Cash flow from
Operating Activities.
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OR
Damage to machinery due to earthquake was compensated by the Government. It will be shown in
the Cash Flow Statement as:
a) Extra-ordinary item under Cash Flow from Operating Activities as outflow.
b) Extra-ordinary item under Cash Flow from Operating Activities as inflow.
c) Extra-ordinary item under Cash Flow from Investing Activities as outflow.
d) Extra-ordinary item under Cash Flow from Investing Activities as inflow. 1
30. Following is the extract of Balance sheet of Max Ltd. For the year ended 31st March,2022.
Equity and Liabilities 31st March 2022 (Rs) 31st March 2021
(Rs)
Surplus, i.e, Balance in Statement of Profit & 11,00,000 5,00,000
Loss

50,000 40,000
Dividend Payable
Additional Information:
Proposed Dividend in the years ended 31st March 2021 and 2022 were Rs 7,00,000 and Rs 6,00,000
respectively.
Which of the following options is correct as Net Profit before Tax and Extraordinary Items?
a) Rs 6,40,000
b) Rs 8,40,000
c) Rs 11,40,000
d) Rs 13,00,000 1
31) Classify the following Items under Major-heads and Sub-heads (if any) in the Balance Sheet of
a Company as per Schedule III of the Companies Act,2013: 3
I. Marketable Securities.
II. Stores and Spares.
III. Interest Accrued and due on Debentures.
IV. Debentures payable within the period of 12 months or Operating Cycle period from the date of
Balance Sheet.
V. Debentures Repayable after three years.
VI. Debentures Redemption Reserve.
32 Opening Inventory Rs 1,20,000; Closing Inventory 1.5 times of opening inventory; Inventory
Turnover Ratio 6 times; Selling Price 33 1/3 % above cost. Calculate the Gross Profit ratio. 3

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33) Following is the Balance Sheet of X Ltd. As at 31st March,2022: 4

Particulars Note No Rs
EQUITY AND LIABILITIES:
1.Shareholder’s Funds
Share Capital 5,00,000
Reserves and Surplus 1,00,000

2.Non-Current Liabilities
Long-term Borrowings 1,60,000
Long-term Provisions 40,000

3.Current Liabilities 50,000

TOTAL 8,50,000

ASSETS
1.Non-Current Assets 5,20,000
2.Current Assets 3,30,000

TOTAL 8,50,000

Calculate Debt to Capital Employed Ratio.

OR
Calculate Net Assets Turnover Ratio from the following information:
Rs
Plant & Machinery 1,80,000
Intangible Assets (Goodwill) 20,000
Non-Current Investments 40,000
Inventory (including Loose tools for Rs 20,000) 1,50,000
Trade Receivables 1,00,000
Cash and Cash Equivalents 40,000
Trade Payables 30,000
Cost of Revenue from Operations (Cost of Sales) 12,80,000
Gross Profit 25% on Cost

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34) Following are the Balance Sheets of Krishna Ltd as on 31st March,2022 and 2021. 6
Particulars Note No 31st March 31st March
2022 2021(Rs )
(Rs)
EQUITY AND LIABILITIES:
1.Shareholder’s Funds
a) Share Capital 1 14,00,000 10,00,000
b) Reserves and Surplus 2 5,00,000 4,00,000
2.Non-Current Liabilities
Long-term Borrowings (10% Debentures) 5,00,000 1,40,000

3.Current Liabilities

a) Trade Payables 1,00,000 60,000

b) Short-term Provisions 3 80,000 60,000

TOTAL 25,80,000 16,60,000

ASSETS
1.Non-Current Assets
a) Property, Plant &Equipment and Intangible 4 16,00,000 9,00,000
Assets
(i)Property, Plant and Equipment 1,40,000 2,00,000
b) Intangible Assets (Goodwill)

2.Current Assets 2,50,000 2,00,000

a) Inventories 5,00,000 3,00,000
b) Trade Receivables 90,000 60,000
c) Cash and Cash equivalents
TOTAL 25,80,000 16,60,000

Notes to Accounts
Particulars 31.03.2022 31.03.2021
(Rs) (Rs)
1.Share Capital
Equity Share Capital 12,00,000 6,00,000
10% Preference Share Capital 2,00,000 4,00,000
14,00,000 10,00,000
2.Reserve & Surplus:
Surplus i.e. Balance in Statement of Profit and Loss 5,00,000 4,00,000
3.Short-term Provisions
Provision for Tax 80,000 60,000
4. Property, Plant and Equipment
Machinery 17,60,000 10,00,000
Less: Accumulated Depreciation (1,60,000) (1,00,000)
16,00,000 9,00,000
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Prepare a Cash Flow Statement after taking into account the following adjustments
I. Tax paid during the year amounted to Rs 70,000.
II. During the year, a machine costing Rs 1,40,000 (depreciation provided thereon Rs 60,000) was
sold for Rs 50,000.
III. 10% Preference shares were redeemed at par at the end of the year.
IV. New Debentures have been issued on 1st July,2021.

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