Time :- 3 Hrs Accounts Tutelage F.M.

:- 80 Marks
Revision Test Paper [RTP]

General Instructions :-
1. This question paper contains 34 questions. All questions are compulsory.
2. Questions 1 to 16 and 27 to 30 carries 1 marks each.
3. Questions 17 to 20, 31 and 32 carries 3 marks each.
4. Questions 21, 22 and 33 carries 4 marks each.
5. Questions 23 to 26 and 34 carries 6 marks each.

1. If a fixed amount is withdrawn by a partner on the first day of every month, interest on the total
amount is charged for ……..months.
(a) 6 (b) 6 ½ (c) 5 ½ (d) 12
2. Assertion (A) It is important to compute sacrificing and gaining ratio at the time of change in
profit sharing ratio.
Reason (R) Sacrificing partner compensates the gaining partners by paying him proportionate
amount of goodwill.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the coorect explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the coorect explanation of
Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.
3. Kharido Co. purchased a running business from Becho Co. for a sum of ₹60,00,000. Company
received from vendor following assets and liabilities in this running business.
Plant and machinery ₹40,00,000; Furniture ₹5,00,000; Debtors ₹8,00,000; Land and building
₹20,00,000 and Creditors ₹3,00,000. What will be the amount of goodwill or capital reserve, as
per the given information?
(a) Goodwill ₹10,00,000 (b) Capital reserve ₹10,00,000
(c) Goodwill ₹3,00,000 (d) Capital reserve ₹3,00,000
4. In a firm, 10% of net profit after deducting all adjustments, including reserve is transferred to
general reserve. The net profit after all adjustments but before transfer to general reserve is
₹22,000. Calculate the amount which is to be transferred to reserve.
(a) ₹1,250 (b) ₹2,000 (c) ₹2,200 (d) ₹1,100
5. On an equity share of ₹50, the company has called-up ₹40 but only ₹30 have been received by
the company and the share is forfeited. In this case, share capital account should be debited by
(a) ₹50 (b) ₹40 (c) ₹30 (d) ₹10
6. If the debit side of the realisation account exceeds the credit side, then it signifies
(a) profit on realisation (b) loss on realisation
(c) Neither profit nor loss (d) None of the above
7. ……on re-issue of forfeited shares cannot be more than the amount received on forfeited shares.
(a) Discount (b) Premium (c) Forfeiture (d) None of these
8. Need for valuation of goodwill arises for a partnership firm in which of the following
situation(s)?
(i) At the time of change in profit sharing ratio.
(ii) At the time of death/retirement of a partner.
(iii) At the time of admission of a partner.
Codes
(a) Only (i) (b) (i) and (ii) (c) (ii) and (iii) (d) All of these
9. Average profit of a business over the last five years was ₹30,000. The normal yield on capital
invested in such a business is estimated at 10% p.a. The net capital invested in the business is
₹2,50,000. Amount of goodwll will be
(a) ₹50,000 (b) ₹90,000 (c) ₹15,000 (d) ₹75,000
10. Dividends are usually paid on
(a) authorised capital (b) issued capital (c) paid-up capital (d) called-up capital
11. What will be the entry for receiving application and allotment of money on 1,200, 10%
debentures of ₹100 each issued at premium of 10% and redeemable at a premium of 5%?
(a) Debenture App. & allot. A/c Dr. 1,32,000 (b) 10% Debentures A/c Dr. 1,32,000
To Bank A/c 1,32,000 To Bank A/c 1,32,000
(c) Bank A/c Dr. 1,32,000 (d) None of the above
To Debenture App. & Allot. A/c 1,32,000
12. Goodwill of the firm is ₹53,750. Find the number of year’s purchase if the average profits are
₹21,500.
(a) 1 (b) 1.5 (c) 2 (d) 2.5
13. Following amounts were payable on issue of shares by a company ₹3 on application, ₹3 on
allotment, ₹2 on first call and ₹2 on final call. X holding 250 shares paid only application and
allotment money whereas Y holding 200 shares did not pay final call. Amounts of calls-in-
arrear will be
(a) ₹1,900 (b) ₹1,400 (c) ₹900 (d) ₹3,100
14. Which of the following statements is incorrect?
(a) Claim of the retiring partner is payable fully in cash
(b) Claim of the retiring partner is fully transferred to loan account to be paid later with some
interest on it.
(c) Claim of the retiring partner is payable partly in cash and partly as loan repayable later
With agreed interest.
(d) Claim of the retiring partner is not paid in cash at all.
15. A manager gets 5% commission on net profit after charging such commission, gross profit
₹29,000 and expenses of indirect nature other than manager’s commission are ₹8,000. Amount
of commission will be
(a) ₹1,065 (b) ₹1,000 (c) ₹750 (d) ₹1,100
16. X, Y and Z are partners sharing profits in the ratio of [Link]. They agree to admit W into the firm
for 4/7 profit. W acquired his share 2/7 from X, 1/7 from Y and 1/7 from Z. the share of profit
of Y will be
(a) 5/56 (b) 13/56 (c) 6/56 (d) 32/56
17. X, Y and Z were partners in a firm sharing profits in [Link] ratio. The firm closes its books on
31st March every year. Y died on 12th June, 2023. On Y’s death, the goodwill of the firm was
 valued at ₹60,000. His share in the profits of the firm till the time of his death was to be
calculated on the basis of previous year’s profit which was ₹1,50,000.
Pass necessary journal entries for the treatment of goodwill and Y’s share of profit at the time
of his death.
18. On 1st April, 2022, Vishwas Ltd. was formed with an authorised capital of ₹10,00,000 divided
into 1,00,000 equity shares of ₹10 each. The company issued prospectus inviting applications
for 90,000 equity shares. The company received applications for 85,000 equity shares. During
the first year, ₹8 per share was called. Ram holding 1,000 shares and Shyam holding 2,000
shares did not pay the first call of ₹2 per share.
Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were
re-issued at ₹6 per share, ₹8 called-up. Show the following
(i) Share capital in the balance sheet of the company as per Schedule III Part 1 of the Companies
Act, 2013.
(ii) Also prepare ‘notes to accounts’ for the same.
19. The net profit for the last 3 years were: 2021-22 ₹41,000; 2022-23 ₹32,000 and 2023-24
₹70,000. On 1st October, 2022, a repair to computer amounting to ₹10,000 was wrongly debited
to computer account.
Depreciation on computer was charged @10% p.a on diminishing balance method. You are
required to calculate goodwill on the basis of 2 year’s purchase of weighted average profit.
20. Flipkart and Amazon are partners in a firm sharing profits and losses in the ratio of 3:2. They
admit Myntra as a new partner. The new profit sharing ratio of Flipkart, Amazon and Myntra
will be [Link]. Myntra contributed the following assets towards his capital and for his share of
goodwill. Stock ₹1,67,000, Debtors ₹1,40,000 (less provision for doubtful debts of 5%), Land
₹1,00,000 and Plant and Machinery ₹1,80,000.
On the date of admission of Myntra, the goodwill of the firm was valued at ₹13,00,000. Record
the necessary journal entries in the books of the firm on mytra’s admission.
21. Pandu, Kandu and Gandu were partners sharing profits and losses in the ratio [Link]. On 31st
March, 2023 their balance sheet stood as under
Balance Sheet
As at 31st March, 2023
Liabilities ₹ Assets ₹
Creditors 22,000 Cash at Bank 70,000
Profit and loss A/c 50,000 Investments 50,000
General Reserve 24,000 Patents 15,000
Capital A/cs Stock 25,000
Pandu 75,000 Debtors 20,000
Kandu 70,000 Building 75,000
Gandu 50,000 1,95,000 Machinery 36,000
2,91,000 2,91,000

Gandu died on 1st July, 2024. Goodwill is to be valued at 3 year’s purchase of the average
profits of the last 5 years, which were 2020- ₹40,000; 2021- ₹40,000; 2022- ₹30,000; 2023-
₹40,000 and 2024- 50,000. Gandu executor is entitled to share in profits on the basis of last
year’s profit. Prepare Gandu’s capital account and show working notes clearly.
22. On 28th February, 2023, the first call of ₹2 per share become due on 25,000 equity shares
allotted by Raj Ltd. Vijay a holder of 500 shares did not pay the first call money. Damm a
holder of 375 shares paid the second and final call of ₹4 per share alongwith the first call.
Pass the necessary journal entries for the amount received by opening calls-in-arrears account in
the books of the company.
23. A and B are partners sharing profits in the ratio of 3:2. They decided to dissolve their firm. Pass
journal entries for the following after various assets (other than cash and bank) and the third
party liabilities have been transferred to realisation account.
(i) Old furniture which had been written off completely in the books was sold for ₹1,000.
(ii) ‘X’ an old customer whose account for ₹500 was written off as bad in the previous year,
paid 70%.
(iii) Workmen compensation reserve stood at 3,000 and liability for it was ascertained at ₹1,750.
(iv) Workmen compensation reserve stood at 3,000 and liability for it was ascertained at ₹3,750.
(v) B took over 50% of the stock at a discount of 20%. Remaining stock was sold at a profit of
30% on cost. (Book value of stock given in the balance sheet was ₹20,000).
(vi) Debtors ₹13,200. Provision for doubtful debts ₹1,200, ₹2,400 of the book debts proved bad.
24. Journalise the following transactions :-
(i) 400 debentures issued at ₹960 each (face value ₹1000), repayable at ₹1000 each.
(ii) 400 debentures issued at ₹1,040 each (face value ₹1000), repayable at ₹1,000 each.
(iii) 400 debentures issued at ₹1,000 each (face value ₹1000), repayable at ₹1,060 each.
(iv) 400 debentures issued at ₹960 each (face value ₹1000), repayable at ₹1,060 each.
25. A and Aaa are partners sharing profits in the ratio of 3:2. Their balance sheet stood as under at
31st Deccember, 2024
Balance Sheet
As at 31st December, 2024
Liabilities ₹ Assets ₹
Creditors 38,500 Cash 2,000
Employees provident fund 4,000 Stock 15,000
Workmen compensation reserve 2,500 Prepaid expense 1,500
Contingency reserve 2,500 Debtors 9,400
Capital A/cs (-) Provision for
A 26,000 Doubtful debts (400) 9,000
Aaa 13,000 39,000 Machinery 19,000
Building 35,000
Furniture 5,000
86,500 86,500
Aao is admitted as a new partner introducing a capital of ₹16,000. The new profit sharing
ratio is decided as [Link]. Aao is unable to bring in any cash for his share of goodwill i.e.
₹3,270. Following revaluations are made :-
(i) Stock was overvalued by 10%.
(ii) Furniture worth ₹500 was found unsuitable and hence to be written-off.
(iii) Building was valued 20% more than book value.
(iv) There was a claim for damages against firm for ₹1,350.
Prepare revaluation account, Partner’s capital account and Balance sheet of the new firm.
26. Balance Sheet of Hola Ltd.
As at 31st March, 2024
Particulars Note No. Amount
I. EQUITY AND LIABILITIES
1. Shareholder’s funds
Share Capital 1 31,92,800
Notes to Accounts :-
Particulars ₹
1. Share capital
Authorised Capital
36,000 Equity Shares of ₹100 each 36,00,000
Issued Capital
32,000 Equity Shares of ₹100 each 32,00,000
Subscribed Capital
Subscribed and fully Paid-up
31,760 Equity Shares of ₹100 each 31,76,000
Subscribed but not fully Paid-up
240 Equity Shares of ₹100 each 24,000
(-) Calls-in-arrears (240×₹30) (7,200) 16,800
31,92,800
The company purchased a machinery for ₹3,22,000 by issuing shares of ₹100 each at 40%
premium. The company also issued 1,000 shares of ₹100 each to the promoters for the services
rendered to incorporate the company.
(i) Calculate the number of fresh shares issued.
(a) 1,000 shares (b) 2,000 shares (c) 3,300 shares (d) 4,220 shares
(ii) Calculate the amount of issued share capital after the fresh issue of shares.
(a) ₹35,30,000 (b) ₹35,50,000 (c) ₹36,30,000 (d) ₹35,22,800
(iii) Calculate the total amount received on the defaulted shares.
(a) ₹24,000 (b) ₹16,800 (c) ₹7,200 (d) ₹31,200
(iv) The company decided to forfeit the defaulter shares. Calculate the amount to be debited to
share capital account while forfeiting the shares.
(a) ₹24,000 (b) ₹16,800 (c) ₹7,200 (d) ₹31,200
(v) 100 of the forfeited shares were re-issued at ₹70 per share as fully paid-up. Calculate the
amount to be transferred to capital reserve.
(a) ₹5,000 (b) ₹4,000 (c) ₹2,000 (d) ₹4,500
(vi) What is the balance amount left in the share forfeiture account?
(a) 12,500 (b) ₹11,200 (c) ₹10,000 (d) ₹9,800
27. A company reported the following information for the past year.
Net profit ₹2,00,000 Depreciation expenses ₹30,000
Gain on sale of Truck ₹5,000 Proceeds from sale of Truck ₹8,000
Decrease in accounts receivable ₹10,000
What amount will the company reports as the cash provided by operating activities in the cash
flow statement?
(a) ₹2,35,000 (b) ₹2,25,000 (c) ₹2,30,000 (d) ₹2,20,000
28. Statement I A ratio is an arithmetical relationship of one number to another number.
Statement II Liquid ratio is also known as acid test ratio.
Alternatives
(a) Both the statement are correct (b) Both the statement are incorrect
(c) Statement I is correct and Statement II is incorrect
(d) Statement II is correct and Statement I is incorrect
29. While computing cash flow from financial activities, which of the following items(s) are
added?
I. Increase in bank overdraft.
II. Proposed dividend of current year.
III. Proposed dividend of previous year.
IV. Redemption of debentures.
Codes
(a) Only I (b) I and II (c) II and III (d) I and IV
30. A company’s revenue from operation is ₹20,00,000, cost of revenue from operations is
₹14,00,000 and indirect expenses are ₹2,00,000, then what is the amount of the gross profit?
(a) ₹3,00,000 (b) ₹5,00,000 (c) ₹6,00,000 (d) ₹16,00,000
31. Under what sub-headings will you show the following items?
(i) Loans repayable on demand (ii) Sinking Fund
(iii) Tax reserve (iv) Mining rights
(v) Interest on calls-in-advance (vi) Proposed dividend
32. From the following, Calculate
(i) Current Ratio (ii) Working capital turnover ratio
Non-current Assets ₹25,000; Total Assets ₹50,000;
Shareholder’s Fund ₹30,000; Non-current Liabilities ₹10,000
Revenue from operations ₹75,000
33. Prepare common size balance sheet from the following balance sheet of Tik-Tik Ltd.
Balance Sheet
as at 31st March, 2023
Particulars Note No. 31.03.2023 31.03.2022
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds
(i) Share Capital 2,00,000 1,00,000
(ii) Reserve and Surplus 3,00,000 2,50,000
2. Non-current Liabilities
Long term borrowings 5,00,000 6,00,000
3. Current Liabilities
(i) Trade payables 50,000 1,50,000
(ii) Short term Provisions 1,50,000 4,00,000
Total 12,00,000 15,00,000
II. ASSETS
1. Non-current Assets
(i) Property, Plant & Equipment and Intangible Assets
(a) Property, Plant and Equipment 5,00,000 8,00,000
 2. Current Assets
(i) Inventories 3,00,000 6,00,000
(ii) Cash and Cash Equivalent 4,00,000 1,00,000
Total 12,00,000 15,00,000
34. From the following balance sheets of The Last Account Ltd. Prepare cash flow from operating
activities for the year ended 31st March, 2025
Balance Sheet
As at 31st March, 2025
Particulars Note No. 31.03.2025 31.03.2024
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds
(i) Share Capital 1,40,000 1,20,000
(ii) Reserve and Surplus 1 88,000 14,000
2. Non-current Liabilities
Long term borrowings (12% debentures) 1,00,000 84,000
3. Current Liabilities
(i) Trade payables 50,000 34,000
Total 3,78,000 2,52,000
II. ASSETS
1. Non-current Assets
(i) Property, Plant & Equipment and Intangible Assets
(a) Property, Plant and Equipment 2 1,64,000 1,28,000
(b) Intangible Assets 32,000 40,000
(ii) Non-current Investments 32,000 12,000
2. Current Assets
(i) Inventories 98,000 24,000
(ii) Cash and Cash Equivalent 52,000 48,000
Total 3,78,000 2,52,000
Notes to Accounts :-
1. Reserve and Surplus
General reserve 60,000 40,000
Statement of profit and loss 28,000 (26,000)
88,000 14,000
2. Property, Plant and Equipment
Machinery 2,16,000 1,64,000
(-) Provisions for Depreciation (52,000) (36,000)
1,64,000 1,28,000
Additional Information :-
(i) Debentures were issued on 31st March, 2025.
(ii) Non-current investments were purchased on 31st March, 2025.
(iii) Rate of interest on investments is 10% p.a.