ACCOINTANCY
TIME 3 HOURS MAX. MARKS 80
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions 17 to 20, 31and 32 carries 3 marks each.
5. Questions from 21 ,22 and 33 carries 4 marks each
6. Questions from 23 to 26 and 34 carries 6 marks each
Part - A
1.A partner’s capital account was credited with ₹80,000 during the year. Which of the following can be the possibility
for such a credit in his capital account?
A. Opening Balance
B. Drawings during the year
C. Loss during the year
D. Capital introduced.
[Link] (A):- Fluctuating Capital Account can show debit balance. Reason (R) :- Losses and Drawings can be more
than Capital Balance.
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. Both A and R are incorrect.
3. On 1st July, 2024, A, B and C entered into partnership sharing Profits & Losses in the ratio [Link]. C was guaranteed
that his share of profits will not be less than 60,000 p.a. Deficiency if any will be borne by A and B equally. For the
year ended March 31, 2025, firm incurred loss of ₹ 1,25,000. Deficiency will be borne by A and B will be:
A. A ₹ 30,000 and B ₹ 30,000
B. A ₹ 43,750 and B ₹ 26,250
C. A ₹ 42,500 and B ₹ 42,500
D. A ₹ 35,000 and B ₹ 35,000.
4. Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for
1,95,000 shares, which were duly allotted. The amount was payable as ₹3 on Application (including ₹1 premium), ₹ 6
on Allotment (including ₹1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money
and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share
as fully paid up. The amount of Capital Reserve will be:
A. ₹ 16,000
B. ₹ 12,000
C. ₹ 8,000
D. ₹ 18,000.
5. Prafful Limited forfeited 15,000 shares of ₹ 20 each on which ₹ 8 (including ₹ 2 premium) was paid. Out of these
13,000 shares were re-issued @ ₹ 19 per share as fully paid up. Determine the amount of Share Forfeited balance.
A. ₹ 90,000
B. ₹ 91,000
C. ₹ 12,000
D. ₹ 16,000.
6. Dawn Ltd. purchased Equipment and paid ₹ 2,20,000 by cheque and issued 16,000 equity shares of ₹ 10 each at
25% premium. The purchase consideration will be:
A. ₹ 3,40,000
B. ₹ 4,20,000
C. ₹ 3,80,000
D. ₹ 2,00,000.
7. Bala and Lala were partners in a firm with Capitals of ₹ 24,00,000 and 16,00,000. They admitted Mala as a new
partner for 1/3 share for which Mala brings ₹ 20,00,000 as capital. There was Investment and Investment Fluctuation
Reserve appearing in the books of ₹ 2,50,000 and ₹ 50,000 respectively. Bala took over 40% of the Investments at ₹
80,000 and remaining Investments were valued at ₹ 1,10,000. By what amount Revaluation account will be affected
for the above information?
A. Debited ₹ 60,000
B. Credited with ₹ 60,000
C. Debited ₹ 10,000
D. Credited ₹ 10,000.
8. Jai and Veeru were in a partnership sharing Profit &Loss in the ratio 5:3. Their Capitals were ₹ 10,00,000 and ₹
8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of return was 10%. Firm made
average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after adjustment of loss of machinery of book value
of ₹2,00,000 by fire against which insurance claim of ₹1,50,000 was admitted). Value of goodwill as per Capitalisation
of super profits will be:
A. ₹ 10,00,000
B. ₹ 3,00,000
C. ₹ 18,00,000
D. Nil.
9. On 1st August, 2024 Tom, Jerry and Tyke entered into partnership with capitals of ₹5,00,000 each. Interest on
Drawings was to be charged @ 6% p.a. For the year ended March 31, 2025, Tyke withdrew ₹ 80,000. What amount of
Interest on drawings will be charged from Tyke?
A. ₹ 4,800
B. ₹ 1,600
C. ₹ 3,200
D. ₹ 2,400
10.A, B and C were partners sharing Profits &Losses in the ratio [Link]. B died. A took over 1/20 from his share and
remaining share was taken over by C. Determine the new Profit sharing Ratio.
A. 4 : 1
B. 7 : 1
C. 71 : 29
D. 3 : 1
11. X, Y and Z were partners sharing Profit & Losses in the ratio [Link]. Y retired, and he gifted half of his share to X
and remaining half was taken over equally by X and Z. Determine the new Profit-sharing Ratio.
A. 29 : 11
B. 13 : 7
C. 1 : 1
D. 5 : 2.
[Link] and Barun were partners sharing Profits &Losses in the ratio 3:2. They admitted Charan into partnership for
20% share. Charan was to bring proportionate Capital and he brought ₹ 3,50,000 (including ₹ 50,000 for goodwill
share) in firm. If adjusted capital of Arun after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill
treatment was ₹ 8,40,000. What was Barun’s Capital after Revaluation Gain/Loss, Accumulated Profits/Losses and
Goodwill treatment?
A. ₹ 5,60,000
B. ₹ 3,60,000
C. ₹ 12,00,000
D. ₹ 6,60,00012.
13. Raghav and Sahil were partners sharing Profit &Loss in the ratio 5:3. Their capital balances were ₹ 7,20,000 and ₹
2,80,000 respectively. There were balances of General Reserve of ₹ 5,00,000 and Deferred Revenue Expenditure of ₹
4,00,000 in the books of the firm. They admitted Ojasv into partnership for 20% share for which he brings ₹ 4,00,000
as capital. Determine the goodwill share of Ojasv.
A. ₹ 5,00,000
B. ₹ 1,00,000
C. ₹ 1,20,000
D. ₹ 60,000.
14. Building was appearing in the books at ₹ 20,00,000 which was overvalued by 25%. What amount will be shown in
the Balance Sheet of a reconstituted firm for building?
A. ₹ 25,00,000
B. ₹ 16,00,000
C. ₹ 24,00,000
D. ₹ 15,00,000.
[Link] and Sourabh were partners sharing Profit &Loss equally. They decided to share future Profit &Loss in the
ratio 3:2. Their manager Arya met with an accident in the office itself and his claim for compensation amounted to ₹.
50,000. The firm had a Workmen Compensation Reserve of ₹. 80,000. Which of the following statement holds true at
the time of reconstitution?
A. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be
distributed amongst partners in old ratio.
B. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be
distributed amongst partners in new ratio.
C. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be
credited to Revaluation Account.
D. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be
carried forward in the books of the firm without any treatment.
Q16. As per section 52 of Companies Act 2013, securities premium can be utilized for which of the
following purpose:
(I) Writing off discount allowed to debtors
(II) Providing for premium payable on redemption of debentures
(III) Issuing fully paid debentures as bonus
(IV) Issuing fully paid shares as bonus
(V) Buyback of shares
Choose the correct options:
(a) Only (I), (II) and (III)
(b) Only (II), (III) and (IV)
(c) Only (II), (IV) and (V)
(d) Only II and IV
Q17. Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio [Link]. They admitted Chunni into
partnership for 1/5 share. It was decided that Munni will have 1/4 share in future profits. Goodwill of the firm was
valued at ₹ 3,20,000 and Chunni was unable to bring anything. Calculate New Ratio, Sacrificing Ratio and journalise
for goodwill at the time of admission of Chunni.(3)
Q18. Yashasvi, Nitish and Harshit were partners sharing Profit &Loss in the ratio [Link]. W.e.f 01 April, 2025, they
decided to share future Profit &Loss in the ratio [Link]. On the date of reconstitution Goodwill was appearing in the
books of ₹ 4,00,000. Goodwill of the firm was valued at ₹ 7,20,000 on the date of reconstitution. Determine gain or
sacrifice for each partner and pass necessary journal entries.(3)
Q19. Ankur and Vikram were partners sharing Profits &Losses in the ratio 3:2. They decided to share future
Profits & Losses equally. On the date of reconstitution there was Investment Fluctuation Reserve of ₹ 4,00,000
in the books of accounts. Pass entries in the following cases
A. Value of Investment reduced by ₹ 2,50,000.
B. Value of Investment increased by ₹ 5,00,000.
C. There was no change in value of investments.(3)
Q20. A business earned an average profit of Rs. 8,00,000 during the last few years. The normal rate of
profits in the similar type of business is 10%. The total value of assets and liabilities of the business
were Rs. 22,00,000 and Rs. 5,60,000 respectively. Calculate the value of goodwill of the firm by
super profit method if it is valued at 2.5 years purchase of super profits.(3)
Q21. Sapphire Ltd. Was registered with an authorised capital of ₹ 80,00,000 divided into 4,00,000 shares of ₹ 20
each. Company offered and issued 1,50,000 shares at a premium of ₹ 4 per share payable as ₹ 7 on application
(including ₹ 1 premium), ₹ 12 on allotment (including ₹ 2 premium) and balance on first call. Rancho, holding 10,000
shares failed to pay allotment and call money. Another shareholder Sultan holding 5,000 shares failed to pay the call
money. All the shares held by Rancho were forfeited and of these 8,000 were reissued at ₹ 22 per share as fully paid.
Show Share Capital sub head as it would in the Balance Sheet of Sapphire ltd. along with notes to Account as per the
Companies Act 2013.(4)
Q22. Amit, Sumit and Pulkit were partners sharing Profit &Loss in the ratio [Link]. Their Capitals were ₹ 8,00,000; ₹
7,00,000 and ₹ 5,00,000 respectively. According to Partnership Deed:-
(a) Interest on Capital @ 10% p.a.
(b) Salary to Amit ₹ 10,000 p.m and Pulkit ₹ 15,000 per quarter.
(c) Commission to Sumit ₹ 70,000.
(d) Sumit was being guaranteed that his share of profits will not be less than ₹ 65,000. Deficiency if any will be borne
by Amit and Pulkit equally. Ignoring the above terms the profits of ₹ 6,00,000, for the year ended March 31, 2025
were divided equally between partners. You are required to pass necessary adjustment entry. Show your workings
clearly.(4)
Q23. Extract of Financial statements of Alexa Ltd are produced below.
Balance Sheet (Extract)
Equity and Liabilities Note no. 31-03-25 31-03-24
(₹) (₹)
Shareholders’ funds
Equity Share capital 1 2,37,60,000 2,00,00,000
Reserves and Surplus 2 20,00,000 10,00,000
Note No. 1 Share Capital 31-03-25 (₹) 31-03-24 (₹)
Authorised Share Capital
Equity shares of Rs.10 each ------- -------
Issued Capital 2,37,60,000 2,00,00,000
Subscribed capital (Fully Paid) 2,37,60,000 2,00,00,000
Note No. 2 Reserves and Surplus 31-03-25 (₹) 31-03-24 (₹)
Securities Premium 20,00,000 10,00,000
During the year Alexa ltd. purchased business of Gloria ltd. with assets of Rs.50,00,000 and liabilities of Rs.20,00,000.
With regards to the following additional Information: 1) During the year 40,000 Equity Shares were issued at a
premium of Rs.4 per share for cash. 2) Besides this no shares were issued as sweat equity, bonus or as ESOP or in any
other form.
Give journal entries for issue of shares for cash and consideration other than cash. Also, prepare Share Capital A/c
and Securities Premium Account in the books of Alexa ltd.(6)
Q24. Alok, Deepak and Manish were partners sharing Profit &Loss in the ratio [Link]. Deepak retired on March 31,
2025. On this date his dues after all adjustments related to Revaluation Gain/Loss, Accumulated Profits/Losses and
Goodwill treatment came out to be ₹ 6,40,000. He was paid ₹ 40,000 through Furniture on retirement and it was
agreed to pay balance in three equal annual instalments together with interest as per the rate permissible by act, in
the absence of any agreement. First instalment being paid on March 31, 2026. You are required to pass entry for
immediate payment to Deepak on retirement and prepare Deepak’s Loan Account till it is finally closed.(6)
Q25. Aman, Barman and Raman were partners sharing Profits & Losses in the ratio [Link]. Their Balance Sheet on
March 31, 2025 was as follows
Liabilities Amount (Rs.) Assets Amount (Rs.)
Aman’s Capital 80,000 Bank 30,000
Barman’s Capital 70,000 Building 1,00,000
Raman’s Capital 50,000 Furniture 60,000
Workmen Compensation Reserve 50,000 Debtors 50,000
Accumulated Depreciation on Building 20,000 Stock 40,000
Profit and Loss 40,000 Prepaid Expenses 20,000
Creditors 25,000 Deferred Revenue Expenditure 20,000
Outstanding Expenses 15,000 Goodwill 30,000
3,50,000 3,50,000
On the above date Barman retired and his share was acquired by Aman and Raman equally. Following agreements
were agreed upon:-
a) Create Provision for doubtful debts @ 10%.
b) Market value of Building is ₹1,00,000 and Furniture was overvalued by 20%.
c) Stock was valued at ₹ 55,000. Creditors of ₹ 15,000 took over stock of ₹ 10,000 in settlement of their claims.
d) Goodwill of the firm was valued at ₹ 80,000.
e) Prepaid Expenses are worthless and Outstanding Expenses are now ₹20,000.
f) ₹ 20,000 was immediately paid to Barman on retirement brought in Aman and Raman in ratio 3:2. Prepare
Revaluation Account and Partner’s Capital Account at the time of retirement of partner. (6)
Q26. Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment
(including ₹ 1 premium) and balance on call. Applications were received for 3,00,000 shares out of which 20%
applications were rejected and remaining were allotted on pro-rata basis. Rohan, an applicant of 12,000 shares failed
to pay allotment money and Mohan holding 8,000 shares paid the entire money along with allotment. Subsequently
the call was made, all the money was duly received except from Rohan. Later on, company issued a notice to Rohan
to pay the balance in 15 days failing which his shares would be forfeited. Rohan cleared his dues within the stipulated
time period. Journalise. (6)
Part – B
Q27. Inventory Turnover Ratio of company was 5 times. The firm had Revenue from operations of ₹ 5,00,000
and Gross Profit was 25% of Cost of Revenue from Operations. Determine the amount of Opening Inventory if
Closing Inventory was ₹ 60,000.
A. ₹ 80,000
B. ₹ 60,000
C. ₹ 1,00,000
D. ₹ 50,000.
Q28. Assertion (A) :- Gross Profit Ratio is always higher than Net Profit Ratio.
Reason (R) :- To calculate Net Profit, Indirect Expenses are subtracted from Gross Profit and Indirect Incomes
are added to Gross Profit.
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
Q29. Provision for Tax for the year ended March 31, 2025 and 31 March 2024 were ₹ 3,00,000 and ₹ 2,80,000
respectively. During the year Tax paid was ₹ 2,50,000. Determine the amount of Tax proposed during the year
by the firm.
A. ₹ 3,00,000
B. ₹ 2,30,000
C. ₹ 2,80,000
D. ₹ 2,70,000
Q30. Which of the following is cash flow from Operating activities for a finance company:?
A. Conversion of debentures into shares
B. Dividend received
C. Building purchased
D. Dividend paid
Q31. Prepare Common Size Statement of Profit and Loss for the year ended March 31, 2025.
PARTICULARS 31st March, 2025
Revenue from Operations 40,00,000
Other Expenses 4,00,000
Other Income 6,00,000
Employee Benefit Expenses 8,00,000
Purchase of Stock in Trade 10,00,000
Change in Inventory (2,00,000)
Tax rate 50% (3)
Q32Under which sub-headings, will the following items be placed in the Balance
Sheet of a company as per Schedule III Part I of the Companies Act, 2013 :
a) Capital Reserve
b) Bonds
c) Loans repayable on demands
d) Vehicles
e) Goodwill
f) Loose tools. (3)
Q33. From the following information, calculate Trade Receivables Turnover Ratio:
Cost of Revenue from Operations (Cost of Goods Sold) : Rs. 6,00,000 Gross Profit on Cost : 25%
Cash Sales: 20% of Total Sales Opening Debtors: Rs. 1,00,000 Closing Debtors : Rs. 2,00,000. Provision for
Doubtful Debts: Opening Rs. 10,000 and Closing Rs.20,000. (4)
Q34. Extracts of the Balance Sheets of M/s Agrawal Ltd. as on 31st March,2024 and 31st March 2025alonwith
additional information are given below. You are required to calculate:
(i) Operating profit before changes in working capital.
(ii) Cash Flows from Financing Activities.
31.03.2025 31.03.2024
Equity Share Capital 12,00,000 9,00,000
10% Preference Capital 4,00,000 5,00,000
Cash credit 2,50,000 1,00,000
Profit & Loss (Cr) 8,00,000 6,00,000
12% Debentures 4,00,000 3,00,000
Bank Overdraft 1,00,000 75,000
Outstanding Interest on Debentures 3,000
Additional Information:
a) New equity shares and debentures were issued on last day the current accounting year ended 31st March,
2025. Debentures were issued at a discount of 5% which was written off at the end of the year.
b) Dividend on preference shares and interim dividend @ 15% were paid on equity shares on 31st March, 2025
c) Preference Shares were redeemed on 1st April, 2025 at a premium of 5%. The premium was provided out of
profits.
