PB SAMPLE PAPERS SOLUTION MOCK PAPER 1
SOLUTIONS MOCK PAPER 1. (b) 2008 2. (c) 28200 3. ProfitandlossAdjustmentA/c 4. (a) ` 1,00,000 5. (b)C’sAccountwillbedebitedwith` 10,000 6. ` 12,000 7. (c) ` 1,32,000 8. GainingRatioB:D=1:1 9. Purchased 10. Endowmentfind 11. (a)AddedtoSubscribedshareCapital 12. (c)DebenturescarryfixedRateofinterest. 13. (c)Debitinghiscurrentaccount 14. An extract of Balance Sheet
Liabilities Amount (`) Assets Amount (`)
Capitalfind 20,00,000Addtransferfrom Pavilionfind 6,00,000 Pavilionfind 8,00,000Adddonationless transferto 10,00,000Capitalfund (6,00,000)
26,00,000
12,00,000
PavilioninProgress 6,00,000
(6×1/2=3)
OrHonorarium: Revenue Expenditure:ItistobedebitedtoIncomeandExpenditureAccount.Sale of Fixed Assets: ProfitonsalesiscreditedtoIncomeandExpenditureAccount.LossonsaleisdebitedtoIncome&ExpenditureAccount.Donations:GeneralDonationsCreditedtoIncomeandExpenditureAccount.Specificdonationsarecapitalized.
15.
Date Particulars L.F. Debit Credit
SundryAssetsA/c Dr.GoodwillA/c(bal.fig.) Dr. ToSundryliabilities ToUrvashiLtd.(Beingbusinesspurchased)
1,80,00020,000 (1)
40,0001,60,000
UrvashiLtd.(bal.fig.) Dr.DiscountsissueofdebenturesA/c Dr. To12%debentures To15%debentures ToSecurityPremiumReserveA/c ToBankA/c(draft)(beingpaymentmade)
1,60,0004,000
40,00040,000
(2)4,000
80,0001+2=
2 SAMPLE PAPERS SOLUTION MOCK PAPER 3
16. Robin’s Executor Account
Date Particulars L.F. Amount Date Particulars L.F. Amount
2018March31 ToBankA/c
(3,29,234 × 60,000)19,754
2015April01 ByRobin’sCapital
A/c60,000
(1)
March31 ToBalanceA/c 47,446 2016March31
ByInterestA/c 7,200
67,200 67,200
2017March31 ToBankA/c 19,734
2016April01 Bybal.b/d 47,446
(1)
Tobalancec/d 33,386 March31 ByInterestA/c 5,694
53,140 53,140
2018March31
ToBankA/c 19,754 April01 Bybalanceb/d 33,386 (1)
Tobalancec/d 17,638 2018March31
ByInterestA/c 4006
37,392 37,392
2019March31
ToBankA/c 19,754 2018April01
Bybalancec/d 17,638 (1)
2019March31
ByInterestA/c 2,116
19,754 19,754
OrAverageProfit =70,000+60,000+50,000+40,000+(70,000Loss)=` 1,50,000 1,50,000/5years=` 30,000Firm’sGoodwill =30,000×3purchaseyears=` 90,000
(i) B’sShareofGoodwill=`90,000×5/10=` 45,000 (ii) B’sShareofProfit=`70,000×3/12×5/10=`8,750(Loss)
B’s Capital Account
Particulars Amount Particulars Amount
ToP&LSuspenseToProfit&LossA/cToB’sExecutor’sA/c
8,75035,00076,250
ByBalanceB/dByGeneralResByCByD
40,00035,00027,00018,000
1,20,000 1,20,000
2 SAMPLE PAPERS SOLUTION MOCK PAPER 3
17. Journal
Date Particulars L.F. Debit Credit
(a) RealisationA/c Dr. ToAman’sCapitalA/c(beingwife’sloanpaidbyAman)
60,000 (1)60,000
(b) RealisationA/c Dr. ToBankA/c(beingcreditorsof` 30,000paidat10%discount)
27,000 (1)27,000
(c) ProfitandlossA/c Dr. ToAman ToHarsh(being credit balance of profit/loss distributedequally)
15,000 (1)7,5007,500
(d) RealisationA/c Dr. ToHarsh(RemunerationpaidtoHarsh)
7,000 (1/2)7,000
Harsh’sCapitalA/c Dr. ToBankA/c(beingRealisationexpensespaidbyfirmonbehalfofHarsh)
5,000 (1/2)5,000
18. Profit/Loss Appropriation Account for the year ending March 31, 2017
Particulars Amount Particulars Amount
ToInterestonCapital
A 4 40 000 10100
, , ×
B 2 20 000 10100
, , ×
C 1 20 000 10100
, , ×
Todivisibleprofit A 98,400 B 49,200 C 24,600
44,000
22,000
12,000
1,72,200
BynetprofitByInterestondrawing
A– 60 000 12100
13242
, × ×
B– 60 000 12100
9242
, × ×
C– 60 000 12100
612
, × ×
2,40,000
39,000
27,000
36,000
2,50,000 2,50,000
OrCalculation of weighted profit
Particulars 2015-16 2016-17 2017-18 2018-19Givenprofit 1,20,000 (70,000) 50,000 2,00,000Addovervaluationofopeningstock 10,000
4 SAMPLE PAPERS SOLUTION MOCK PAPER 5
LessRemunerationof (40,000) (40,000) (40,000) (40,000)Partner(charge)AddLossbyfire 35,000Adjustedprofit 90,000 (75,000) 10,000 1,60,000Weight 1 2 3 4WeightProfit 90,000 (1,50,000) 30,000 6,40,000
WeightAverageProfit=6 10 00010, ,
=61,000
Goodwill=3×61,000 =1,83,000
19. Journal
Date Particulars L.F. Debit Credit
April012015
DebentureredemptionInvestmentA/c Dr. ToBankA/c(beingInvestmentisBRI15%ofdebtobereduced)
7,5007,500
2016March31
Surplusi.e.,balanceinstatementofprofitandlossA/c Dr. Todebentureredemptionreserve(beingtransferredtoDRR.25%of1,00,000)
25,000
25,000
March31 12%debentureA/c Dr. TodebentureholderA/c(being50%debenturedueforredemption)
50,00050,000
March31 Bank TodebentureredemptioninvestmentA/c(beingDRIsold)
75,00075,000
March31 DebentureholdersA/c Dr. ToBankA/c(beingpaymentmadetodebholders)
50,00050,000
March31 DebentureRedemptionReserveA/c Dr. TogeneralReserveA/c(beingDRRtransferredtogeneralReserve)
12,50012,500
2016April01
Deb.redemptioninvestmentA/c Dr. ToBankA/c(beinginvestmentpurchased)
7,5007,500
2017March31
12%DebentureA/c Dr. ToDebentureholdersA/c(beingdeb.transferredtodebholders)
50,00050,000
2017March31
BankA/c Dr. TodebentureRedemptionInvestment(beingInvestmentsold)
7,5007,500
4 SAMPLE PAPERS SOLUTION MOCK PAPER 5
2017March31
DebentureholdersA/c Dr. ToBankA/c(beingpaymentmadeofdebentureholders)
50, 00050,000
2017March31
DebentureRedemptionReserveA/c Dr. ToGeneralReserveA/c(beingDRRtransferredtogeneralreserve)
15,50012,500
OrJournal
Date Particulars L.F. Debit Credit
April01 BankA/c Dr. TodebentureapplicationandallotmentA/c(beingmoneyreceivedon15,000des)
15,00,00015,000
April01 DebentureapplicationandallotA/cLossonissueofdebentureA/c To9%DebenturesA/c ToPremiumonredemptionofdec(beingdebentureissued)
15,00,00075,000
15,00,00075,000
2014March31
Surplusi.e.,balanceinstatementofA/c ToDebentureRedemptionReserveA/c(beingtransfertoDRR)
1,87,5001,87,500
2015March31
Surplusi,e., balanceinstatementofprofit/loss Dr. ToDebentureRedemptionReserveA/c(beingAmounttransferredtoDRR)
1,87,5001,87,500
2015April15
DebentureRedemptionInvestmentA/c Dr. ToBankA/c(beingDRIpurchased)
2,25,0002,25,000
2016March31
BankA/c Dr.TDSCollectA/c Dr. ToDebentureRedemptionInvestment ToInterestonDRI(being deposit recordedwith interest@8% for11.5months)
2,40,5251,725
2,40,5251,725
9%DebentureA/c Dr.PremiumonredemptionofdebenturesA/c Dr. ToDebentureholderA/c(RedemptionofDebenturesdue)
15,00,00075,000
15,75,000
DebentureholdersA/c ToBankA/c(paymenttodebentureholders)
15,75,00015,75,000
6 SAMPLE PAPERS SOLUTION MOCK PAPER 7
DebentureRedemptionReserveA/c Dr. ToGeneralReserveA/c(fortransferofDRRtoGeneralReservesA/c)
3,75,0003,75,000
20. Sports Clubs Income and Expenditure Account Dr. For the year ended March 31, 2019 (3 Marks) Cr.
Particulars Amount Particulars Amount
Salaries 12,000 Addoutstanding 1,000GeneralexpensesNewspapersCharity
13,0001,6003,0007,000
Subscription(500×100)EntrancefeesIncomefromcharityshow(19,000 × 9,000)Saleofnewspaper
50,00010,80010,000
900
TaxesElectricitychargesDepreciationSurplus
1,0002,800
10,00034,300
InterestonInvestment
40 000 6100
512
, × ×
12 15
12
× +
surplus
1,000
72,700 72,700
Balance Sheet (2 Marks)As at March 31, 2019
Liabilities Amount (`) Assets Amount (`)
Capitalfund 2,22,300AddSurplus 33,400SubscriptionReceivedinadvanceOutstandingSalary
2,56,6001,2001,000
CashInvestmentAccountInterestLandandBuildingOutstandingSubscription2017-18 1,0002018-19 9,000
17,00040,0001,000
1,90,000
10,000
2,58,800 2,58,800
Working Note (1 Mark)Balance Sheet
as at March 31, 2018
Liabilities Amount Assets Amount
Capitalsfund 2,22,300 OutstandingSubscriptionLandandBuildingCashbalance
1,8002,00,000
20,500
2,22,300 2,22,300
6 SAMPLE PAPERS SOLUTION MOCK PAPER 7
21. Revaluation Account
Particulars Amount Particulars Amount
ToPatents 10,000 ByProvisionfordoubtfuldebitBylossonrevaluation X 4,500 Y 2,700
2,800
7,200
10,000 10,000
Partners’ Capital Accounts
Particulars X Y Z Particulars X Y Z
TolossonrevaluationToX’scapitalA/c generalreverseToX’scapitalA/c goodwillTobalancec/d
45,000
50,000
2,7002,750
4,950
1,00,000 25,000
Bybalb/dByY’scapitalA/c (generalreverse)ByZ’scurrentA/c (generalreverse)ByY’scapitalA/c (goodwill)ByZ’scurrentA/cByBankCapitalBycurrentA/c
40,0002,750
2,000
4,950
3,600
1,200
50,000
60,40025,000
54,500 1,10,400 25,000 54,000 1,10,000 25,000
Bybalanceb/d 50,000 1,00,000 25,000
Balance Sheet as at April 01, 2019
Liabilities Amount Assets Amount
CreditorsGeneralreserveCapitals X 50,000 Y 1,00,000 Z 25,000
30,00014,000
1,75,000
CashinhandCashatBank Debtors 44,000 LossProvision 2,200ShockLandandBuilding X’scurrentA/c Y’scurrentA/c Z’scurrentA/c
3,00047,000
41,80020,00040,0001,200
60,4005,600
2,19,000 2,19,000
Working Note: Z’ssharedgoodwill3,600A. Calculation of sacrificing ratio YshouldgivetoX
X= 58
27
− =–1956
(sacrifice)= 36000450
71
1150
× ×
Y= 38
47
− =–−1156
(gain)=4,950
Z=0 − = −17
856
(gain)
8 SAMPLE PAPERS SOLUTION MOCK PAPER 9
Y’scapitalA/c Dr. 2,750Z’scapitalA/c Dr. 2,000 ToY’scapitalA/c 4,750(beingadjustmentmadeofgeneralreverse)Y’scapitalA/c Dr. 4,950Z’scapitalA/c Dr. 3,600ToXscapitalA/c 8,550(beingadjustmententryforgoodwill)B. Calculation of capitals
Z’scapitals17inshareis25,00
Totalcapital=1,75,000
X’scapitalshouldbe=1,75,000× 27–50,000
Y’acapitalshouldbe=1,75,000×47=1,00,000
OrWorking Note:
Revaluation Account
Particulars Amount Particulars AmountToFurnitureToOutstandingRentToRevaluationgain P 2,000 Q 2,000 R 2,000
16,0003,000
6,000
BylandbuildingByBaddebtreverse
24,0001,000
25,000 25,000
In the book Asha Ltd.Journal
Particulars L.F. Debit Credit
RevaluationA/c Dr. TofurnitureA/c TooutstandingsentA/c
19,00016,0003,000
LandandBuildingA/c Dr.BaddebitsreserveA/c TorevaluationA/c(beinglandandbuildingappreciatedandBaddebitsreservereduced)
24,00010,000
25,000
8 SAMPLE PAPERS SOLUTION MOCK PAPER 9
RevaluationA/c Dr. To P To Q ToR(beingrevaluationgaindistributed)
6,0002,0002,0002,000
GeneralreserveA/c Dr.ProfitslossA/c Dr. To P To Q ToR(beingaccumulatedprofitdistributed)
60,00012,000
24,00024,00024,000
P’sCapitalA/c Dr.R’sCapitalA/c Dr. ToQ’sCapitalA/c(beingadjustmentmadeforgoodwill)
19,20019,200
38,400
BankA/c Dr. ToP’scapitalA/c ToR’scapitalA/c(beingcashbroughtbyPandRtopayment)
1,24,40034,20090,200
Q’scapitalA/c Dr. ToBankA/c(beingpaymentmadetoQ)
1,44,4001,44,400
Balance Sheet
Liabilities Amount Assets Amount
CreditorsBillspayableRentoutstandingCapitals P 1,61,000 R 1,61,000
80,00040,0003,000
3,22,000
Bank Debtors 90,000 Lessreserve 9,000StockFurnitureLandandBuilding
20,000
81,00040,00040,000
2,64,000
4,45,000 4,45,000
Working Note:AmountpayabletoQis 1,44,400AvailablecashtopayoffQ 20,000AmounttobebroughtbyPandR 1,24,400
Capitalthenewfirm–P’scapital+R’scapital+Amounttobebrought =126800+70800+124400=3,22,000 Pwillbring=161000–126800=34200 Rwillbring=161000–70500=90,200
10 SAMPLE PAPERS SOLUTION MOCK PAPER 11
22. Journal
Date Particulars L.F. Debit Credit
BankA/c Dr. ToequityshareapplicationandallotmentA/c(beingapplicationmoneyrecordon36,000andshares)
2,16,0002,16,000
EquityshareapplicationandallotmentA/c Dr. ToEquitysharecapitalA/c(24,050×3) TocallsinadvanceA/c TosecurityPremiumreserveA/c(beingapplicationmoneyadjustedtowardcapitals)
2,16,00072,00072,00072,000
EquityshareIstcallA/c Dr. ToEquitysharecapitalA/c(24,000×4)(beingfistcallmoneydueon24,000share)
96,00096,000
BankA/c Dr.CallsinAdvanceA/c Dr.CallinareasA/c Dr. ToEquityshareFirstcallA/c(beingcallsmoneyreceived)
23,76072,000
24096,000
EquitysharesecondfirstcallA/c Dr. ToEquityshareCapitalA/c(24,000×3)(beingsecondcallmoneydue)
72,00072,000
BankA/c Dr.CallsinareasA/c(600×3) ToEquitysharesecondcall(beingsecondcallreceived)
70,2001,800
72,000
Sh.capitalA/c Dr.(600×100) ToSh.forfeitureA/c TocallinareasA/c(beingshareforfeited)
6,0003,9602,040
BankA/c Dr.ShareforfeitureA/c Dr. TosharecapitalA/c(being300sharesincluding240shareofVibhureissued)
1,1401,800
3,000
Or 22. A.Applicationwerereceivedfor1,40,000sharesandallotmentwasmadeonunder:
ApplicationReceived Allotted Moneytransferredto AdjustedinAllotment sharecapital
(a) 20,000 – – – (b) 40,000 40,000 80,000 – (c) 80,000 60,000 1,20,000 40,000 1,40,000 1,00,00 2,00,000 40,000
10 SAMPLE PAPERS SOLUTION MOCK PAPER 11
Calculated to Amount received no allotmentAllotmentmoneydue(1,00,000×3) =3,00,000 (½)Lessalreadyreceived =(40,000) (½)Lesscallsinareas(40,000×3) =(1,20,000) (½)Addcallsinadvance(6,000×5) =30,000 (½) 1,70,000 (1)
Journal
Date Particulars L.F. Debit Credit
BankA/c Dr.Calls-in-arrearsA/c Dr. ToshareallotmentA/c TocallsinadvanceA/c(beingallotmentmoneyreceived)
1,70,0001,20,000
(1)
2,60,00030,000
B. FourwaysinwhichsecuritiesPremiumReserveAmountcanbeutilised (i) Towriteoffunderwritingcommission` 10,00,000 (ii) Towriteoffpremiumonredemptiondebenture` 12,00,000 (iii) Toutiliseremainingbalance(42,00,000–10,00,000–12,00,000) (iv) Towriteoffexpenses,commissionordiscountallowedonanyheatherissueofsharedebenture.
Part B
23. Commonsizestatement 24. (c)WS,XQ,YRandZP 25. (d) (i)and(ii) 26. CurrentAsset 27. Current liabilities or current maturities of long team debt. 28. (i)Outflowinoperatingactivities 29. Issueofshares 30. ComparativeIncomestatement
Particulars Note No.
Figure for 2018
Figure for 2019
Absolute change
% Change
I.Revenuefromoperation 12,00,000 16,80,000 4,80,000 40 (½)
II.Express (a)costofmaterialconsumed (b)otherexpenses
6,00,0001,20,000
13,44,0001,68,000
7,44,00048,000
12440
(½)(½)
III.Totalexpenses 7,20,000 15,12,000 7,92,000 110 (½)
IV.Profitbeforetax 4,80,000 1,68,000 (3,12,000) (65) (½)
V.Tax 2,40,000 84,000 (1,56,000) (65) (½)
VI.Profitaftertax 2,40,000 84,000 (1,56,000) (65) (½)
12 SAMPLE PAPERS SOLUTION MOCK PAPER 13
OrCommon Size Balance Sheet31St March, 2018 And 2019
Particulars
Note No.
Liabilities Amount % to Balance sheet Total
2018 2019 2018 2019
1. Equity&Liabilities
ShareholdersFund
a)Sharecapital 8,00,000 12,00,000 53.34 50
2 NonCurrentLiabilities
longtermborrowings 5,00,000 8,00,000 33.33 33.33
3 CurrentLiabilities
Tradepayables 2,00,000 4,00,000 13.33 16.67
TOTAL 15,00,000 2,40,000 100 100
1.Assets
1-NoneCurrentAssets
FixedAssets.TangibleAssets 10,00,000 15,00,000 66.67 62.5
2.CurrentAssets
Cash&cashEquivalent 5,00,000 9,00,000 33.33 37.5
TOTAL 15,00,000 2,40,00,000 100 100
31. GrossProfitRatio=25%
Grossprofit=Revenuefromoperation× 25100
=3,00,000× 25100
=75,000
CostofRevenuefromoperation=Revenuefromoperation–GrossprofitCostofrevenuefromoperation =3,00,000–75,000=2,25,000
Inventoryturnoverratio = Cost of revenue from operationAverage Inventory
4= 2,25,000Agerage Inventory
⇒ Averageinventory=2 25 000
4, ,
=56,250Letsinventoryinthebeginning =x
12 SAMPLE PAPERS SOLUTION MOCK PAPER 13
Theninventoryattheend =x × 20,000
Averageinventory = x x+ + 20 0002, =x+10,000=56250
x=46,250Inventoryinthebeginning =46,250Inventoryattheend =66,250
Quickratio=75:1=l= Quick AssetsCurrent liabilities
= y40 000,
=75
QuickAssets:75×40,000=30,000CurrentAssets =QuickAssets+Inventoryattheend =30,000+66,250=96,250
32. Working Note:
Machinery Account AC calculated Depreciation A/c
Tobalanceb/dTobankpurchase
10,00,000
2,94,000
bybankA/cbyAccumulateddepreciationA/cBylossonsaleBybalancec/d
6,00016,000
2,00012,70,000
ToMachineryA/cTobalancec/d
16,000
2,00,000
By balancedb/dBy statementofprofitsloss
1,50,000
66,000
12,94,000 12,94,000 2,16,000 2,16,000
Cash flow statement (As per As-3 Revised)For the year ended March 31, 2017
Particulars Amount Amount
A. Cash flow from operating activities
Profitmadedrawingtheyear(3,00,000–2,00,000)AddproposeddividendAddprovisionfortax
1,00,00030,00060,000
ProfitbeforetaxAddnoncashnonoperatingexpensesInterestondebenture(14,400+10,200)AccumulateddepreciationLossonsaleofMachinery
1,90,000
24,60066,0002,000
OperatingprofitbeforeworkingcapitalchangeslessdecreaseintradepayableAdddecreaseininventorieslessincreaseintradereceivablesCashfromoperatingactivitiesbeforetaxlesstaxpaid
2,82,600(70,000)
65,000(27,000)
Cashgeneralinoperatingactivities 2,50,600
14 SAMPLE PAPERS SOLUTION MOCK PAPER PB
B. Cash flow from inventory activities (70,000) 1,80,600
PurchaseofMachineryPurchaseofgoodwillSaleofMachinery
(2,94,000)(28,000)
6,000
CashusedininventingActivities (3,16,000)
C. CashflowfromfinancingActivitiesProceedsfromsharecapitalProceedsfromissueofdebenturesProceedsfromBankoverdraftPaymentofInterestPaymentofdivided
1,00,00070,0003,000
(24,600)(30,000)
CashgeneratedinfinancingActivities 1,45,400
D. NetcashgeneratedfromvariousActivities 10,000
E. Openingbalanceofcashandcashequivalent(3.00,000+1,50,000)
4,50,000
F. Closingbalanceofcashandcashequivalent(3,20,000 + 1,40,000)
4,60,000