Marking Scheme – Accountancy XII (SQP 2023-24)

1 d) 33:27:20 1
2 a) A is incorrect but R is correct 1
3 b) ₹ 9,000 1
or
c) ₹ 24,00,000
4 d) ₹ 80,000 1
or
d) A need to return ₹2,35,000 to the firm.
5 c) Partner’s Loan Account 1
6 b) ₹ 10,00,000 1
or
a).Interest on debentures is an appropriation of profits.
7 a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation of 1
Assertion (A)
8 c) ₹ 2,40,000 1
or
b) Debited, ₹6,500.
9 d). ₹20,940. 1
10 c). ₹71,400. 1

11 c). Only (iii) 1

12 B. PK Ltd. Dr. 20,00,000 1
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
To Bank A/c 6,00,030
(Being settlement of amount due to
vendors)
13 c). 2,000 Shares 1
14 a). ₹24,000. 1
15 b). ₹40,000. 1
Or
c). Shyam - ₹ 2,500; Gopal- ₹ 750; Arjun- Nil.
16 d). ₹1,50,000 1
17 Date Particulars L.F Dr (₹) Cr (₹) 3
Anshul’s Capital A/c Dr 9,000
Chander’s Capital A/c Dr 21,000
To Babita’s Capital A/c 30,000
(Chander’s share of Goodwill
debited to the amounts of continuing
partners in their gaining ratio)

Gaining Ratio is 3:7

18 Partners Interest on Salary Paid Payable Salary Excess / 3

Capital Paid (wrong credit) Payable Deficiency
(2%) (ii) (iii) (iv)
(i)
P 800 12,000 1152 ---- 11,648
(Excess)
Q 640 ---- 384 12,000 11,744
(Deficiency)
 R 480 ---- 384 ---- 96
(excess)

Date Particulars L.F Dr (₹) Cr (₹)

P’s Capital A/c Dr 11,648
R’s Capital A/c Dr 96
To Q’s Capital A/c 11,744
(Being entry passed for adjustment of
interest on capital and salary)

Or

Date Particulars L.F Dr (₹) Cr (₹)

P&L Adjustment A/c Dr. 9,000
To Cheese Capital A/c 3,000
To Slice Capital A/c 6,000
(Being Interest on capital omitted
earlier now provided)

P&L Adjustment A/c Dr. 5,000

To Cheese Capital A/c 5,000
(Being salary omitted earlier now
provided)

Cheese Capital A/c Dr. 7,000

Slice Capital A/c Dr. 7,000
To P&L Adjustment A/c 14,000
(Being Loss on Adjustment
transferred to partners)

19 Date Particulars L.F Dr (₹) Cr (₹) 3

Assets A/c Dr. 10,00,000
Goodwill A/c Dr. 60,000
To Liabilities A/c 1,70,000
To Healthy World ltd. 8,90,000
(Being assets and liability taken
over)

Healthy World Ltd. Dr. 8,90,000

Loss on issue of Debentures A/c Dr. 80,000
To 8% Debentures A/c 8,00,000
To Securities Premium A/c 40,000
To Premium on redemption A/c 80,000
To Bank A/c 50,000
(Being Purchase consideration
discharged by issue of Debentures
and in Cash)

Or
 Share Forfeiture A/c

Particulars Amt(₹) Particulars Amt(₹)

To Share Capital A/c 120 By Share Capital A/c 400
To Capital Reserve A/c 120
To Capital Reserve A/c 80
To Balance c/d 80
400 400

20 Years (ending 31st Adjusted Profit (₹) Weights Product (₹) 3

March)
2020 28,000 1 28,000
2021 36,000 1 36,000
2022 46,000 2 92,000
2023 53,000 3 1,59,000
Total 7 3,15,000

Adjusted Profits 2020 2021 2022 2023

Given Profits 28,000 27,000 46,900 53810
Add Capital Expenditure
Charged to Revenue 10,000
Less: Unprovided Depreciation (1,000) (900) (810)

Adjusted Profits 28,000 36,000 46,000 53,000

Weighted Average Profit = 3,15,000/7
=₹45,000
Goodwill = 45,000 × 3 = ₹1,35,000

Notes to Solution
(i) Depreciation of 2021= 10% of 10,000
= 10,000 × 10/100 =₹1,000
(ii) Depreciation of 2022 = 10% of 9000
= 9,000x10/100= ₹900
(iii) Depreciation of 2022 = 10% of 8,100
= ₹8,100
21 Balance Sheet (Extract) as at 4

Particulars Note No Amount

I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds
(a) Share Capital 1 7,78,000

Notes to Accounts
Note 1:
Particulars Details Amount
1. Share Capital
Authorised Capital
2,00,000 Equity shares of Rs.10 each 20,00,000
Issued Capital
80000 Equity shares of 10 each 8,00,000
Subscribed capital
 Subscribed and fully paid up
74,000 equity shares of 10 each 7,40,000
Subscribed but not fully paid-up
4,000 equity shares of 10 each 40,000 32,000
Less: calls in arrears (4,000x2) (8,000)
Add Forfeited Shares
2,000 equity shares@3 6,000
7,78,000

22 Journal 4
Date Particulars LF Dr. (₹) Cr. (₹)
a) Realisation A/c Dr 40,000
To Sun’s Capital A/c 40,000
(Being Remuneration and expenses payable to
Sun)
b) Sun’s Capital A/c Dr 14,000
Kiran’s Capital A/c Dr 14,000
To Deferred Advertisement Suspense A/c
(Being Advertisement Suspense A/c has been 28,000
debited in partner’s capital account in their profit
sharing ratio)
c)(1) Kiran’s Capital A/c Dr 30,000
To Realisation A/c 30,000
(Being 1/3 of Stock has been taken over by Kiran
at 25% discount))
c)(2) No Entry
c)(3) Bank A/c Dr 25,000
To Realisation A/c 25,000
(Being Stock Realised)
d) Cash/Bank A/c Dr 7,000
To Realisation A/c 7,000
(Being amount realised from unrecorded assets
after payment of outstanding bill)

23 Journal Entries in the Books of Rockstar Ltd. 6

Date Particulars L.F Debit (₹ Credit (₹)
i) Bank A/c Dr. 16,00,000
To Share Application A/c 16,00,000
(Being Application money received)
ii) Share Application A/c Dr. 16,00,000
To Share Capital A/c 10,00,000
To Share Allotment A/c 5,00,000
To Bank A/c 1,00,000
(Being Application money utilised)
iii) Share Allotment A/c Dr. 8,00,000
To Share Capital A/c 4,00,000
To Securities Premium A/c 4,00,000
(Being allotment due with premium)
iv) Bank A/c Dr. 2,85,000
Calls in Arrears A/c Dr. 15,000
To Share Allotment A/c 3,00,000
(Being allotment received except of Simba)
v) Share First and Final Call A/c Dr. 6,00,000
 To Share Capital A/c 6,00,000
(Being call money due)
vi) Bank A/c Dr. 5,70,000
Calls in Arrears A/c Dr. 30,000
To Share First and Final Call A/c 6,00,000
(Being call money received except of Simba)
vii) Share Capital A/c Dr. 1,00,000
Securities Premium A/c Dr. 15,000
To Share Forfeited A/c 70,000
To Calls in Arrears A/c 45,000
(Being Simba’s shares forfeited)
viii) Bank A/c Dr. 48,000
Share Forfeited A/c Dr. 12,000
To Share Capital A/c 60,000
(Being forfeited shares re-issued)
ix) Share Forfeited A/c Dr. 30,000
To Capital Reserve A/c 30,000
(Being gain on re-issue transferred to Capital Reserve)
Or
Journal Entries in the Books of Shaktimaan Ltd.
Date Particulars L.F Debit (₹) Credit (₹)
i) Share Application A/c Dr. 6,00,000
To Share Capital A/c 2,00,000
To Securities Premium A/c 2,00,000
To Share Allotment A/c 2,00,000
(Being Application money utilised)
ii) Share Allotment A/c Dr. 5,00,000
To Share Capital A/c 5,00,000
(Being allotment due with premium)
iii) Share First and Final Call A/c Dr. 3,00,000
To Share Capital A/c 3,00,000
(Being call money due)
iv) Calls in Arrears A/c Dr. 15,000
To Share First and Final Call A/c 15,000
(Being call money received except of Simba)
v) Share Capital A/c Dr. 50,000
To Share Forfeited A/c 35,000
To Calls in Arrears A/c 15,000
(Being Simba’s shares forfeited)
vi) Share Forfeited A/c Dr. 14,000
To Capital Reserve A/c 14,000
(Being gain on re-issue transferred to Capital Reserve)

Cash Book (with Bank Column only)

Date Particulars LF Amount Date Particulars LF Amount
(₹) (₹)
i) To Share Application A/c 7,20,000 ii) By Share Application A/c 1,20,000
iii) To Share Allotment A/c 3,00,000
iv) To Share First and Final 2,85,000
Call A/c
v) To Share Capital A/c 20,000 vi) By Balance c/d 12,11,000
To Securities Premium 6,000
A/c
 13,31,000 13,31,000

24 Journal Entries in the Books of Rajinder, Vijay and Ranvijay 6

Date Particulars L.F Debit (₹ Credit (₹)
i) Revaluation A/c Dr. 52,000
To Prov. For Doubtful Debts A/c 2,000
To Outstanding Bill for Repairs A/c 50,000
(Being increase in PDD and O/S bill accounted)
ii) Accrued Interest A/c Dr. 7,500
Stock A/c Dr. 8,000
To Revaluation A/c 15,500
(Being increase in Stock and Accrued Interest
accounted)
iii) Rajinder’s Current A/c Dr 21,900
Vijay’s Current A/c Dr 14,600
To Revaluation A/c 36,500
(Being loss on revaluation transferred to partner’s
current A/c)
iv) Bank A/c Dr. 40,000
To Investment A/c 40,000
(Being Investment sold at book value)
v) Rajinder’s Current A/c Dr. 42,000
To Stock A/c 42,000
(Being stock taken over by Rajinder)
vi) General Reserve A/c Dr. 60,000
To Rajinder’s Current A/c 36,000
To Vijay’s Current A/c 24,000
(Being General Reserve distributed)
vii) Rajinder’s Current A/c Dr. 30,000
Vijay’s Current A/c Dr. 20,000
To Goodwill A/c 50,000
(Being Goodwill written off)
viii) Bank A/c Dr. 1,60,000
To Ranvijay’s Capital A/c 1,00,000
To Premium for Goodwill A/c 60,000
(Being new partner brings capital and share of
goodwill)
ix) Premium for Goodwill A/c Dr. 60,000
To Rajinder’s Current A/c 30,000
To Vijay’s Current A/c 30,000
(Being premium distributed in Sacrificing Ratio)
OR
Partner’s Capital A/c
Particulars L M N Particulars L M N
Def. Rev. Exp.A/c 20,000 20,000 30,000 Balance b/d 6,25,000 4,00,000 5,25,000
Investments A/c 50,000 Revaluation A/c 30,000 30,000 45,000
M’s Capital A/c 64,000 96,000 L’s Capital A/c 64,000
M’s Loan A/c 5,20,000 N’s Capital A/c 96,000
Balance c/d 12,80,000 19,20,000 Bank A/c 7,09,000 14,76,000
13,64,000 5,90,000 20,46,000 13,64,000 5,90,000 20,46,000
 Balance Sheet of Reconstituted Firm as at March 31,2023
Liabilities Amount(₹) Assets Amount(₹)
Creditors 80,000 Land and Building 7,40,000
Bank overdraft 22,000 Machinery 2,25,000
Long term debts 2,00,000 Furniture 3,50,000
Capital A/C s: Investments 50,000
L- 12,80,000 Stock 3,00,000
N - 19,20,000 32,00,000 Debtors 2,00,000
Employees provident fund 38,000 Less: prov. (10,000) 1,90,000
M’s Loan A/c 5,20,000 Bank 22,05,000
40,60,000 40,60,000

25 Maheep dues to be transferred to executors = 1,15,000 + 5,000 + 20,000 + 60,000 – 20,000 = 1,80,000 6

Maheep’s Executors Account

Date Particulars LF Amount Date Particulars LF Amount
(₹) (₹)
31/03/21 To Balance c/d 1,93,500 30/06/20 By Maheep’s Cap. A/c 1,80,000
31/03/21 Interest (9 months) 13,500
1,93,500 1,93,500
30/06/21 To Bank (I Instalment) 78,000 01/04/21 By Balance b/d 1,93,500
31/03/22 To Balance c/d 1,29,000 30/06/21 By Interest (3 months) 4,500
31/03/22 By Interest (9 months) 9,000
2,07,000 2,07,000
30/06/22 To Bank (II Instalment) 72,000 01/04/22 By Balance b/d 1,29,000
31/03/23 To Balance c/d 64,500 30/06/22 By Interest (3 months) 3,000
31/03/23 By Interest (9 months) 4,500
1,36,500 1,36,500
30/06/23 To Bank (III Instalment) 66,000 01/04/23 By Balance b/d 64,500
30/06/23 By Interest (3 months) 1,500
66,000 66,000

26 Journal Entries in the Books of Panther Ltd. 6

Date Particulars L.F Debit (₹ Credit (₹)
July 1 Bank A/c Dr. 21,60,000
2022 To Debenture Application and Allotment A/c 21,60,000
(Being Application money received)
July 1 Debenture Application and Allotment Dr. 21,60,000
2022 Loss on Issue of Debentures A/c Dr. 3,00,000
To 9% Debentures A/c 20,00,000
To Securities Premium A/c 1,60,000
To Premium on Redemption of Debentures A/c 3,00,000
(Being Debentures issued)
Mar. 31 Debenture Interest A/c Dr. 1,35,000
2022 To Debenture holders A/c 1,35,000
(Being Interest due on debentures)
Mar. 31 Debenture holders A/c Dr. 1,35,000
2022 To Bank A/c 1,35,000
(Being interest paid to debenture holders)
Mar. 31 Statement of Profit and Loss Dr. 1,35,000
2022 To Debenture Interest A/c 1,35,000
(Interest on Debentures charged from Statement of Pnl)
Mar. 31 Securities Premium A/c Dr. 2,40,000
2022 Statement of Profit and Loss Dr. 60,000
 To Loss on Issue of Debentures A/c 3,00,000
(Loss on Issue of Debentures written off)

Loss on Issue of Debentures A/c

Date Particulars Amount Date Particulars Amount
(₹) (₹)
01 July To Premium on Redemption 3,00,000 31 Mar. By Securities Premium A/c 2,40,000
2022 of Debentures A/c 2023 By Statement of Profit and Loss 60,000
3,00,000 3,00,000

Part – B (Analysis of Financial Statements)

27 c). Not Free from Bias 1

OR
c). Loose Tools and Stores and Spares
28 d) Issue of Equity Shares 1
29 c) Statement I is correct, and Statement II is incorrect 1
Or
A. No effect
30 d) ₹ 1,80,000 1
31 S.No. Item Heading Sub-heading 3
i. Loose Tools Current Assets Inventories
ii. Loan repayable on demand Current Liabilities Short Term Borrowings
iii. Provision for Retirement Non-Current Long Term Provisions
benefits Liabilities
iv. Pre-paid Insurance Current Assets Other Current Assets
v. Capital advances Non-Current Assets Long Term Loans and
Advances
vi. Shares in Listed Companies Non-Current Assets Non-Current Investments

32 (a).Current Ratio = Current Assets / Current Liabilities 3

2 = 8,00,000 / Current Liabilities

So, Current Liabilities = ₹ 4,00,000

Liquid Ratio = Liquid Assets / Current Liabilities

1.5 = Liquid Assets / 4,00,000

So, Liquid Assets = ₹ 6,00,000

Inventory = Current Assets - Liquid Assets
Inventory = 8,00,000 – 6,00,000 = ₹ 2,00,000
Inventory Turnover Ratio = Cost of Revenue From Operations / Average Inventory
6 = Cost of Revenue from Operations / 2,00,000

Cost of Revenue from Operations = ₹ 12,00,000

Gross Profit = 25% of Cost i.e ₹ 3,00,000

Revenue From Operations = Cost of Revenue from Operations + Gross Profit = 12,00,000 + 3,00,000
Revenue From Operations = ₹ 15,00,000

(a) Debt to Capital employed ratio = Debt / Capital Employed

 Debt to Capital employed ratio = 7,50,000 / (7,50,000 + 15,00,000) = 7,50,000 / 22,50,000

Debt to Capital employed ratio = 1/3 = 0.33 : 1

33 Common Size Statement of Profit & Loss 4
Particulars 2022-23(₹) 2021-22(₹) % on revenue from % on revenue from
operations (2021-22) operations (2022-23)

Revenue from operations 8,00,000 10,00,000 100 100

Less :- Expenses
Cost of revenue 3,20,000 3,00,000 40 30
Other Expenses 2,20,000 2,60,000 27.5 26
Total Expenses 5,40,000 5,60,000 67.5 56
Profit Before Tax 2,60,000 4,40,000 32.5 44
Less:- Tax 1,30,000 2,20,000 16.25 22
Profits after Tax 1,30,000 2,20,000 16.25 22

OR
Comparative Statement of Profit & Loss
Particulars 2021-22 2022-23 Absolute Proportionate
(₹) (₹) Change (in ₹) Change (in %)
A. Revenue from operations 8,00,000 10,00,000 2,00,000 25
B. Add: Other Income 1,50,000 2,20,000 70,000 46.67
C. Total Revenue (A+B) 9,50,000 12,20,000 2,70,000 28.42
D. Less: Cost of materials 3,00,000 4,00,000 1,00,000 33.33
consumed
Change in inventories of 1,00,000 2,00,000 1,00,000 100
finished goods and work
in progress
Other Expenses 80,000 1,50,000 70,000 87.5
Total Expenses 4,80,000 7,50,000 2,70,000 56.25
E. Profits before Tax (C-D) 4,70,000 4,70,000 -- --
F. Tax Rate 1,41,000 1,41,000 -- --
G. Profits after Tax (E-F) 3,29,000 3,29,000 -- --

34 6
Cash Flow Statement for the year ended March 31, 2023
Particulars Details Amount (₹)
Cash from Operating Activities
Profits before Tax and Extraordinary Activities 1,07,000
Add :- Non-Cash and Non-Operating Expenses
Depreciation on Plant and Machinery 1,20,000
Interest on Debentures 10,000
Cash from Operating Activities before working capital changes 2,37,000
Increase in Trade Payables 18,000
Decrease in Trade Receivable 1,74,000
Increase in Inventory (2,07,000)
Cash from Operations 2,22,000
Less :- Tax Paid (15,000)
Cash from Operating Activities (A) 2,07,000
Cash from Investing Activities
Sale of Investments 40,000
 Purchase of Investments (70,000)
Purchase of Plant and Machinery (4,05,000)
Cash from Investing Activities (B) (4,35,000)
Cash from Financing Activities
Issue of Shares 2,00,000
Issue of Debentures 50,000
Interest on Debentures (10,000)
Cash from Financing Activities (C) 2,40,000
Net Cash Flow during the year (A+B+C) 12,000
Add :- Opening Cash and Cash Equivalents 33,000
Closing Cash and Cash Equivalents 45,000

Working Notes :-
Plant and Machinery Account
Particulars Amount (₹) Particulars Amount (₹)

Balance b/d 4,90,000 Depreciation A/c 1,20,000

Bank (Purchase) 4,05,000 Balance c/d 7,75,000
8,95,000 8,95,000

Investments Account
Particulars Amount (₹) Particulars Amount (₹)
Balance b/d 50,000 Bank A/c (sale) 40,000
Gain on Sale (Capital Reserve) 10,000 Balance c/d 90,000
Bank (Purchase) 70,000
1,30,000 1,30,000

Provision for Tax Account

Particulars Amount (₹) Particulars Amount (₹)
Bank (Paid) 15,000 Balance b/d 28,000
Balance c/d 30,000 Statement of Profit and Loss 17,000
45,000 45,000

Net Profits after Tax and Extraordinary Items = 20,000

+ Transfer to General Reserve = 70,000
+ Provision for Tax = 17,000
= Net Profits before Tax and Extraordinary Items = 1,07,000