ACC 12 Set - 1 Pre-Board 1 (2023-24)
ACC 12 Set - 1 Pre-Board 1 (2023-24)
ACC 12 Set - 1 Pre-Board 1 (2023-24)
PART –A
(Partnership and Company Accounts)
1. P and S are partners sharing profits in the ratio of 3:2. R is admitted with 1/5 th share and he brings in 1
Rs. 84,000 as his share of goodwill which is credited to the Capital Accounts of P and S respectively
with Rs. 63,000 and Rs. 21,000. New profit sharing ratio will be:
(a) 3:1:5 (b) 9:7:4
(c) 3:2:5 (d) 7:9:4
2. Assertion (A): Interest @ 6% p.a. is to be allowed on loans/advances provided by a partner to the 1
partnership firm in the absence of a partnership deed.
Reason (R): Partnership deed always prescribes interest @ 6% p.a. on loans and advances provided
by a partner.
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.
3. 600 shares of Rs. 10 each were forfeited for non-payment of Rs. 2 per share on first call and Rs. 5 per 1
share on final call. Share Forfeiture Account will be credited with:
(a) Rs. 1,200 (b) Rs. 1,800
(c) Rs. 3,000 (d) Rs. 4,200
OR
Globe Ltd. issues 20,000, 9% debentures of Rs. 100 each at a discount of 5% redeemable at the end of
five years at a premium of 6%. For what amount Loss on issue of Debenture Account will be debited?
(a) Rs. 1,00,000 (b) Rs. 1,20,000
(c) Rs. 2,80,000 (d) Rs. 2,20,000
4. A, B and C who were sharing profits and losses in the ratio of 2:2:1 decided to share the future profits 1
and losses in the ratio to 3:2:1 with effect from 1 st April, 2023. An extract of their Balance Sheet as at
31st March, 2023 is:
Liabilities Rs. Assets Rs.
Workmen Compensation Reserve 60,000
At the time of reconstitution, a certain amount of claim on workmen compensation was determined for
which B’s share of loss amounted to 12,000. The Claim for workmen Compensation would be:
(a) Rs. 30,000 (b) Rs. 90,000
(c) Rs. 50,000 (d) Rs. 80,000
OR
Green and Orange are partners. Green draws a fixed amount at the beginning of every month. Interest
on drawings is charged @ 8% p.a. At the end of the year interest on Green's drawings amounts to Rs.
2,600. Monthly drawings of Green were:
(a) Rs. 8,000 (b) Rs. 60,000
(c) Rs. 7,000 (d) Rs. 5,000
5. Which of the following items, does not appear in the P & L appropriation account? 1
(a) Salaries to partners (b) Interest on capital
(c) Interest on drawings (d) Drawings
6. 'A' Limited purchased the assets from 'B' Limited for Rs. 5,40,000. 'A' Limited issued 10% debentures 1
of Rs. 100 each at 10% discount against the payment. The number of debentures received by 'B'
Limited will be:
(a) 54,000 (b) 5,400
(c) 60,000 (d) None of the above
OR
Which of the following statements is false?
(a) At maturity, debenture holders get back their money.
(b) Debentures can be forfeited for non-payment of call money.
(c) In company's balance sheet, debentures are shown under the head Long term- Borrowings.
(d) Interest on debentures is a charge against profits.
7. Assertion (A): Reserve capital and capital reserve are synonymous i.e. they mean the same. 1
Reason (R): Reserve capital is the capital which the company resolves to call on its winding up.
Capital reserve is a reserve to which capital profits are transferred.
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is incorrect but Reason (R) is correct.
(d) Assertion (A) is correct but Reason (R) is incorrect
8. A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balance 1
are Rs. 50,000 for A, Rs. 70,000 for B, Rs. 35,000 for C. B decided to retire from the firm and balance
in reserve on the date was Rs. 25,000. If goodwill of the firm was valued at Rs. 30,000 and profit on
revaluation was Rs. 7,500 then, what amount will be payable to B?
(a) Rs. 70,820 (b) Rs. 76,000
(c) Rs. 75,000 (d) Rs. 95,000
OR
E, F and G share profits in the ratio of 4:3:2. G is given a guarantee that his share of profits will not be
less than Rs. 75,000. Deficiency if any, would be bome by E and F equally Firm's profit was Rs.
2,70,000. F's share of profit will be:
(a) Rs. 90,000 (b) Rs. 82,500
(c) Rs. 97,500 (d) Rs. 75,000
Read the following hypothetical situation and answer question number (i) to (ii):
Puneet and Raju are partners in a clay toys making firm. Their capitals were Rs. 5,00,000 and Rs.
10,00,000 respectively. The firm allowed Puneet to get a commission of 10% on the net. Profit before
charging any commission and Raju to get a commission of 10% on the net profit after charging all
commission. Following is the Profit and Loss Appropriation Account for the year ended 31 st March,
2022.
Profit and Loss Appropriation Account
(for the year ended 31st March 2022)
Particulars Rs. Particulars Rs.
To Puneet’s Capital A/c By Profit and Loss A/c
(Commission ) ( ......x 10/100) 44,000 ...........
To Raju's Capital A/c
(Commission ) ...........
To Profit share transferred to:
Puneet's Capital A/c ...........
Raju's Capital A/c ...........
93,000 93,000
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following
terms:
a) Vaishali will bring Rs. 20,000 for her capital and Rs. 4,000 for her share of goodwill premium.
b) All debtors were considered good.
c) The market value of investment was Rs. 15,000.
d) There was a liability of Rs. 6,000 for workmen compensation.
e) Capital A/c of Charu and Harsha are to be adjusted on the basis of Vaishali’s capital by
opening current A/c.
Prepare Revaluation A/c and Partner’s Capital A/c.
OR
Leena, Madan and Naresh were partners in a firm sharing profits and losses in the ratio of 2:2:3. On
31st March, 2015, their Balance Sheet was as under:
Liabilities Rs. Assets Rs.
On 31st March, 2015, Madan retired from the firm and the remaining partners decided to carry on the
business. It was decided to revalue assets and liabilities as under:
i) Land and Building be appreciated by Rs. 2,40,000 and Machinery be depreciated by 10%.
ii) 50% of investments were taken by the retiring partner at the book value.
iii) An old customer Mohit whose account was written off as bad debt has promised to pay Rs.
7,000 in settlement of his full debt of Rs. 10,000.
iv) Provision for Doubtful Debts was to be made at 5% on debtors.
v) Closing stock will be valued at market price which is Rs. 1,00,000 less than the book value.
vi) Goodwill of the firm was to be valued at Rs. 5,60,000 and Madan’s share of goodwill be
adjusted in the accounts of Leena, and Naresh. Leena and Naresh decided to share future
profits and the losses in the ratio of 3:2.
vii) The total capital if the new firm will be Rs. 32,00,000 which will be in proportion of the profit
sharing ratio of Leena and Naresh.
viii) Amount due to Madan was settled by accepting a bills of exchange in his favour
payable after 4 months.
Prepare Revaluation Account and Partners’ Capital Accounts after Madan’s retirement.
25. Hiren, Suren and Chaman were partners sharing profits and losses in the ratio of 2:1:1. They closed 6
their books on 31st March each year. Hiren died on 31 st August, 2023 when their Balance Sheet was as
follows:
Liabilities Rs. Assets Rs.
Creditors 4,550 Bank 22,000
General Reserve 6,400 Sundry Debtors 6,600
Profit for 5 months 4,050 Advertisement Suspense 6,400
From 1.4.23 to 31.8.23 A/c
(before interest and salaries)
Capital A/c:
Hiren 6,000 20,000
Suren 10,000
Chaman 4,000
35,000 35,000
According to partnership deed:
a) Interest on capital was allowed to all partners @ 6% p.a.
b) Hiren and Chaman were entitled to salaries at Rs. 100 and Rs. 50 per month respectively.
c) In the event of death of a partner goodwill was to be valued at 3 year’s purchase of average net
profits of 2 completed years preceding death. The net profits for the years 2021-22 and 2022-
23 were Rs. 4,000 and Rs. 6,000 respectively.
Hiren’s share was paid to his executors.
You are required to prepare:
a) Hiren’s capital A/c b) Hiren’s executor’s A/c.
26. On July 01, 2022, Sonakshi Ltd. issued 30,000, 9% Debentures of 100 each at 8% premium and 6
redeemable at a premium of 15% in four equal instalments starting from the end of the third year. The
balance in Securities Premium on the date of issue of debentures was Rs. 1,20,000. Interest on
debentures was to be paid on March 31 every year.
Pass Journal entries for the financial year 2022-23. Also prepare Loss on Issue of Debentures
Account.
PART – B
(Analysis of Financial Statements)
27. Which analysis is considered as dynamic: 1
(a) Horizontal Analysis (b) Vertical Analysis
(c) Internal Analysis (d) External Analysis
OR
Quick Assets do not include:
(a) Cash in Hand (b) Prepaid Expenses
(c) Marketable Securities (d) Trade Receivable
28. Debts equity ratio of a company is 1:2. Which of the following transactions will increase it: 1
(a) Issue of new shares for cash (b) Redemption of Debentures
(c) Issue of Debentures for Cash (d) Goods purchased on Credit
29. How will you treat Bank Overdraft in Cash Flow Statement? 1
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalent
OR
Statement I: Repayment of Cash Credit is a part of investing activity.
Statement II: Debenture issued as a collateral security will result in no flow of cash.
(a) Both statements are correct
(b) Both statements are incorrect
(c) Statement I is correct and statement II is incorrect
(d) Statement I is incorrect and statement II is correct
30. Balance Sheet (Extract only) 1
Assets Note No. 31.03.2019 31.03.2020
Machinery 5,22,500 8,37,500
Depreciation on Machinery for the year 2019-20 amounted to Rs. 1,20,000.
How much amount will be shown in investing activity in cash flow statement for the year ending 31 st
March, 2020
(a) Inflow Rs. 3,15,000 (b) Outflow Rs. 3,15,000
(c) Inflow Rs. 4,35,000 (d) Outflow Rs. 4,35,000
31. Under which major head and sub-head (if any), the following items will be presented in the Balance 3
Sheet of the company as per Schedule III Part I of Companies Act, 2013?
a) Loan repayable on demand b) Goodwill
c) Loose tools d) Cheques
e) General Reserve f) 9% debentures repayable after 3 years
32. A. Compute ‘Working Capital Turnover Ratio’ from the following information: 3
Cash Sales Rs. 1,30,000; Credit sales Rs. 3,80,000; Sales Return Rs. 10,000; Liquid Assets Rs.
1,40,000; Current Liabilities Rs. 1,05,000 and Inventory Rs. 90,000.
B. Calculate ‘Debt to Equity Ratio’ from the following Information:
Total Assets Rs. 3,50,000; Total Debts Rs. 2,50,000 and Current Liabilities Rs. 80,000.
33. Prepare Common Size Statement of Profit & Loss from the following: 4
Particulars Note No. 31.3.2021 31.3.2020
Revenue from Operations 25,00,000 20,00,000
Other Income 1,00,000 1,00,000
Cost of Material Consumed 17,00,000 14,00,000
Finance Cost 2,00,000 1,60,000
Other Expenses 1,00,000 1,40,000
OR
Prepare a Comparative Statement of Profit & Loss from the following:
Particulars 31.3.2021 31.3.2020
Revenue from Operations 8,00,000 5,00,000
Purchase of Stock in Trade 4,20,000 2,40,000
Change in Inventories 80,000 60,000
Employee Benefit Expenses 20,000 40,000
Other Expenses 40,000 30,000
Income Tax 50% 40%
34. From the following balance sheet of Vikas Limited as at 31.3 .2023 and 31.3.2022 prepare a cash flow 6
statement:
Particulars Note No. 31.03.2023 31.03.2022
Rs. Rs.
1. EQUITY & LIABILITIES:
(1) Shareholder’s Funds:
(a) Share Capital 1,05,000 75,000
(b) Reserves and Surplus 1 85,000 50,000
(2) Current Liabilities:
(a) Short-term borrowings 2 25,000 15,000
(b) Trade Payables 3 22,000 17,400
Total 2,37,000 1,57,400
II.ASSETS:
(1) Non-Current Assets:
(a) Property, Plant, Equipment
and intangible Assets
(i) Property, Plant & Equipment 1,66,000 93,400
(2) Current Assets:
(a) Inventory 27,000 24,000
(b) Trade Receivables 39,000 36,000
(c) Cash and cash equivalents 5,000 4,000
Total 2,37,000 1,57,400
Notes: (1) Reserve & Surplus: 31.03.2023 31.03.2022
General Reserves 55,000 30,000
Balance of statement of Profit & Loss 30,000 20,000
85,000 50,000
(2) Short-term Borrowings:
Bank Overdraft 25,000 15,000
(3) Trade Payables:
Sundry Creditors 20,000 14,000
Bills Payables 2,000 3,400
22,000 17,400
(4) Trade Receivables:
Sundry Debtors 36,000 36,000
Bills Receivables 3,000 ----------
39,000 36,000
Additional Information:
1. Depreciation charged on fixed tangible assets for the year 2022-2023 was Rs. 20,000.
II. Income Tax Rs. 5,000 has been paid during the year.