Marking Scheme
(1) 60000
(2) Ratio of interest on capital
(3) 70000
(4) 9:4:3:4
(5) 1:1
(6) 600
(7) 5000 Cr
(8) 8 per Share
(9) Dissoulation of Partnership
(10) Profit & Loss Suspence Account
(11) 120 Days
(12) All of the above
(13) True
(14) Stationary Purchased Rs 16500 (1.5 marks)
Stationary Consumed Rs 17500 (1.5 marks)
Or
1 mark each for correct feature
(15) (i) Interest on Capital A/c......Dr. 12,600
To A’s Current A/c 5,400
To B’s Current A/c 7,200
(Interest on capital credited to Partners’ Current A/c)
(ii) P& L Appropriation A/c......Dr. 12,600
To Interest on Capital A/c 12,600
(Interest on capital transferred to P& L Appropriation A/c) (1+1)
Working Notes:
Interest on Capital:
A= 12% of 60,000= 7,200
B= 12% of 80,000=9,600
Total interest=16,800 (1)
Since profits are insufficient Interest on capital will be distributed in the ratio of 7,200:9,600
i.e.3:4
A= 3/7 of 12,600=5,400
B=4/7 of 12,600=7,200 (1)
OR
Bhanu’s Capital A/c Dr 11,000
To Chand’s Capital A/c 3,000
To Alia’s Capital A/c 8,000
(Being Salary, profit share incorrectly distributed, now adjusted) (1 mark for entry 3 marks for
workings)
(16) C’sCapitalA/C Dr. 16000
ToA’scapitalA/C 8000
ToB’sCapitalA/C 8000
(beingadjustmententrymade)
(1) 2marksforworkingnote&2marksforjournalentry.
(17) Total of share capital Rs. 39,70,000 (1 mark for balance sheet +3 marks for notes
to accounts)
(18) (A) one mark for correct meaning
(B) Machinery A/c ….Dr. 252000
To B India Ltd. 252000
(Being the machinery purchased from B India Ltd).
B India Ltd. …Dr. 120000
To Equity Share Capital A/c 100000
To Securities Premium Reserve A/c 20000
(Being 10,000 equity shares of Rs 10 each issued at 20% premium).
B India Ltd. Dr. 95000
Discount on Issue of Debentures A/c Dr. 5000
To 9% Debentures A/c 100000
(Being 1,000,9 % Debentures of Rs 100 each issued at 5% discount)
B India Ltd. ….Dr.37000
To Bank A/c 37000
(Being the Payment by bank draft) 1+ 1 + ½ + ½ = 3 Marks
Working Note:
Value of Machinery purchased by C India Ltd. from B India Ltd = Amount Payable by C India Ltd.
to B India Ltd.
Amount payable by C India Ltd.
(i) 10,000 Equity shares of Rs 10 each issued at Rs 12(10,000 × Rs 12) 1,20,000
(ii) 1,000; 9% Debentures of Rs100 each issued at Rs 95(1,000× Rs 95) 95,000
(iii) Bank Draft 37,000
Amount Payable 2,52,000
(19) Surplus = 24750
Opening capital fund = 58500
Total of balance sheet =89500
(20) Profit tranfer M current a/c 19250
B current a/c 19250
R current a/c 150000
IOC = M=25000 , B=40000, R=20000
M salary 4000
B commission 4000
IOD M=1800 , B=3300, R=2400
Or
1 Mark for each correct entry.
(21) Loss of revaluation Rs. 42,000 (3 marks)
BAL of capital account Raman 161600
Rohit 102400 (3 marks)
Saloni 132000
Balance sheet Total 569500 ( 2 marks)
OR
Loss of revaluation Rs. 1,00,000 (2 marks)
BAL of capital account
Gautam Rs. 2,40,000
Kanika Rs. 3,60,000
Payment to sushma Rs. 4,82,000 (4 marks)
Balance sheet Total Rs. 7,00,000 ( 2 marks)
(22) (i) Equity Share Application & Allotment A/c Dr. 11,20,000
To Equity Share Capital A/c 5,00,000
To Securities Premium Reserve A/c 3,00,000
To Calls in Advance A/c 3,20,000
(Being application & Allotment money transferred)
(ii) Equity Share First & Final Call A/c Dr. 7,00,000
To Equity Share Capital A/c 5,00,000
To Securities Premium Reserve A/c 2,00,000
(Being share First & Final Call money due)
(iii) Calls In arrear A/c...................Dr. 1,900
Calls In Advance A/c .............Dr. 3,20,000
To Equity Share First & Final Call A/c 3,21,900
(Calls in advance adjusted and amount not received transferred to Calls--‐ in--‐arrear A/c)
Or
Calls In Advance A/c .............Dr. 3,20,000
To Equity Share First & Final Call A/c 3,20,000
(Calls in advance adjusted On first and final call)
(iv)Equity Share Capital A/c Dr. 5,000
Securities Premium Reserve A/c Dr. 1,000
To Shares Forfeited A/c 4,100
To Calls in Arrear A/c 1,900
(Being shares forfeited )
(v)Shares Forfeited A/c Dr. 4,100
To Capital Reserve A/c 4,100
(Gain on reissue of forfeited shares transferred to Capital Reserve)
(1*5 marks)
OR
(a) Equity Share Capital A/c Dr 70
To Equity Share Forfeited A/c 50
To Calls in Arrears A/c 20
( Being forfeiture of 10 shares executed)
Bank A/c Dr 64
To Share Capital A/c 64
(Being eight shares reissued to Y as Rs. 8 per share paid up for Rs. 8 per share)
Equity Share Forfeited A/c Dr. 40
To Capital Reserve A/c 40
(Being gain on reissue of forfeited shares transferred to Capital Reserve) (1*3 marks)
(b) Equity Share Capital A/c Dr 1,600
Security Premium A/c Dr 800
To Equity Share Forfeited A/c 1,200
To Calls in Arrears A/c 1,200
(Being Mr. M’s shares forfeited) (2marks)
(c) Equity Share Capital A/c Dr 500
To Equity Share Forfeited A/c 350
To Calls in Arrears A/c 150
(Being 50 shares forfeited for nonpayment of calls)
Bank A/c Dr 160
Equity Share Forfeited A/c 40
To Share Capital A/c 200
(Being 20 shares reissued for Rs. 8 pershare)
Equity Share Forfeited A/c Dr. 100
To Capital Reserve A/c 100
(Being gain on reissue of forfeited shares transferred to Capital Reserve) (1*3 marks)
(23) A
Q 24 800000
Q 25 NO FLOW
Q 26 NO CHANGE
Q 27 SECURITY ANALYSIS
Q 28 B
Q 29TOTAL ASSESTS
(30) I. Revenue from operations 90.48
II. Expenses:
a) Cost of material consumed 66.67
b) Other expenses 90.48
Total expenses 68.58
III. Net profit before tax [I-II] 126.42
Less : tax 126.42
IV. Net profit after tax 126.42
OR
1.5 EACH for correct explanation
(31) (i) Current Liabilities – Short term borrowings
(ii) Shareholders’ funds- reserve and surplus (.5 Each)
(b) Total Assets to debt Ratio = 15,40,000/3,00,000= 5.13 (1+1+1)
(32) Net profit before tax Rs. 1,98,000(1 mark)
Operating profit before working capital changes Rs. 1,62,000(1 Mark)
Cash flows from operating activities Rs. 20,000(1 Mark)
Cash flows from investing activities Rs.(76,000) (1 Mark)
Cash flows from fiannacing activities Rs.70,000(1/2 Mark)
Opening /closing cash equivalents (1/2 Mark)
Machinery and Accumulated depreciation account (1/2 Mark+1/2 Mark)
