SOLUTIONS MOCK PAPER - CTF

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


17. Journal


(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


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


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


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


2017March31

DebentureholdersA/c Dr. ToBankA/c(beingpaymentmadeofdebentureholders)

50, 00050,000

2017March31

DebentureRedemptionReserveA/c Dr. ToGeneralReserveA/c(beingDRRtransferredtogeneralreserve)

15,50012,500

OrJournal


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


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.


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


21. Revaluation Account


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


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)


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


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


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


22. Journal


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


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


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)


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


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

Documents

SOLUTIONS MOCK PAPER - CTF