SHAIL PUBLIC SCHOOL

Pre board (2022-23)

Class-10th
Subject: accountancy
Time: 3Hrs. MM: 80

General Instructions:
1. This question paper comprises two Parts – A and B. There are 34 questions in the question paper. All
questions are compulsory.

2. Part A is compulsory for all candidates.

3. Question nos. 1 to 16 and 27 to 30 are very short answer type questions carrying 1 mark each.

4. Question nos. 17 to 20 and 31 to 32 are short answer type–I questions carrying 3 marks each.

5. Question nos. 21,22 and 33 are short answer type–II questions carrying 4 marks each.

6. Question nos. 23 to 26 and 34 are long answer type–I questions carrying 6 marks each.

PART- A
(Accounting for Partnership Firms and Companies)
Q. Questions Mar
No. ks
1 A and B are partners in a partnership firm without any agreement. A devotes more time 1
for the firm as compare to B. A will get the following commission in addition to profit in
the firm‘s profit:
(A) 6% of profit
(B) 4% of profit
(C) 5% of profit
(D) None of the above

2 A and B are partners in partnership firm without any agreement. A has given a loan of ` 1
50,000 to the firm. At the end of year loss was incurred in the business. Following
interest may be paid to A by the firm:
(A) @5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) As there is a loss in the business, interest can‘t be paid

3 X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was 1
dispute between the partners. Profit before interest on partner‘s capital was `Rs. 6,00,000
and Z demanded minimum profit of `Rs. 5,00,000 as his financial position was not good.
However, there was no written agreement on this point.
(A) Other partners will pay Z the minimum profit and will share the loss equally.
(B) Other partners will pay Z the minimum profit and will share the loss in capital ratio.
(C) X and Y will take `Rs. 50,000 each and Z will take `Rs. 5,00,000.
 (D) `Rs. 2,00,000 to each of the partners.
OR

Mohit and Rohit were partners in a firm with capitals of Rs. 80,000 and Rs. 40,000
resepctively. The firm earned profit of Rs. 30,000 during the year. Mohit’s share in the
profit will be:
(a) Rs. 20,000 (b) 10,000 (c) 15,000 (d) 18,000.

4 Match the following: 1

Statement I Statement II
1.Assurance of profit a. Rectifying the past error
2.Manager’s commission b. Calculated on opening capital
3.Past Adjustment c. Guarantee of profit
4.Interest on capital d. Debited to profit & loss A/c
A. 1-b, 2- d, 3 – c, 4 – a
B. 1-d, 2- c , 3 – a , 4 – b
C. 1-c, 2- b , 3 – a , 4 – d
D. 1-c, 2- d , 3 – a , 4 – b

5 Assertion: Goodwill is an intangible asset since it has no physical existence and cannot be 1
seen or touched.
Reasoning: It is internally generated over a long period of time.
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
c) (A)is true, but (R) is false
d) (A)is false, but (R) is true
OR
In the absence of Partnership Agreement, interest on drawings of a partner is charged:
(a) @ 8% per annum (b) @ 9% per annum
(c) @12% per annum (d) No interest in charged.

Read the following case study and answer the Q. No. 6 and 7
Feelgood enterprise is a partnership business with Gyan, Manya and Sania as partners
engaged in trading business of Readymade Garments. They sharing profits and losses in the
ratio of 3: 2:1. They want to change profit sharing ratio rest of the partners agreed upon
and the new profit sharing ratio will be 1:1:1.
For this purpose, goodwill is to be valued at two year‘s purchase of the average profit of
last four years which were as follows:
Year ending on 31st March 2017 `Rs. 1,00,000 (Profit)
Year ending on 31st March 2018 ` Rs.2,40,000 (Profit)
Year ending on 31st March 2019 `Rs. 3,60,000 (Profit)
Year ending on 31st March 2020 `Rs. 1,60,000 (Loss)

6 What will be the Gaining ratio of Sania? 1

a) 1/6 b) 1/3
c) ¼ d) 1/12

7 What will be amount of Goodwill of firm? 1

a) `Rs. 2,80,000 b) `Rs. 2,66,667
c) `Rs. 2,70,000 d) `Rs. 3,25,000
8 Assertion (A): The ratio in which old partners sacrifice their share of profit in favour of 1
new partner is called Sacrificing Ratio.‘
Reason (R): Old partners get goodwill share from new partner in sacrificing ratio.
(A) Both Assertion (A) and Reason(R) are true and Reason(R) is correct explanation of
Assertion (A).
(B) Both Assertion (A) and Reason(R) are true and Reason(R) is not correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

9 A and B are partners sharing profits and losses in the ratio of 7 : 5. They agree to admit C, 1
their manager, into partnership who is to get 1/6th share in the profits. He acquires this
share as 1/24th from A and 1/8th from B, The new profit sharing ratio will be:
(A) 13 : 7 : 4 (B) 7 : 13 : 4
(C) 7 : 5 : 6 (D) 5 : 7 : 6
OR
P,Q and R are partners sharing profits in the ration of 3:2:1. They agree to admit Z into the
firm. P,Q, and R agreed to give 1/3 rd , 1/6th and 1/9th share of their profit. The share of
profit of Z will be:
(a) 11/54, (b) 13/54, (c) 1/10 (d) 12/54

10 Kumar, Verma and Naresh were partners in a firm sharing profit and loss in the ratio of 1
3:2:2. On 23rd January, 2022 Verma died. Verma’s share of profit till the date of his death
was calculated at Rs. 2,350. Pass necessary journal entry for the same in the books of the
firm.
OR
A, B, and C are partners with capital Rs. 1,00,000, Rs. 75,000 and Rs. 50,000 respectively.
On C’s Retirement, his share is acquired by A and B in ration of 5:3. Gaining ratio will be:
(a) 3:2, (b) 2:2 (c) 5:3 (d) None of these.

11 There are two statements marked as Assertion (A) and Reason (R.). Read the statement and 1
choose the appropriate option from the options given below:
Assertion (A): Loan from spouse of a partner is considered as external liability.
Reason (R): It is shown on the debit side of Realisation.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false (d) A is false but R is true

12 The directors of Pragya Ltd. forfeited 20,000 equity shares of Rs.10 each, due to non 1
payments of first call of Rs.2 per share. Final call of Rs.2 per share has not been yet called.
Half of the forfeited shares were reissued as fully paid up for Rs.15 per share. The amount
transferred to Capital Reserve will be :
(a) Rs.2,00,000
(b) Rs.1,20,000
(c) Rs. 60,000
(d) Rs. 40,000
13 Given below are two statements, One labelled as Assertion (A) and the other labelled as 1
Reason (R)
Assertion (A) Amount of securities premium can be returned to equity shareholders in cash
Reason (R) Securities premium is usually charged when market price of the shares is more
than their face value.
In the context of the above two statements, which of the following is correct ?
(a) Both (A) and (R)are correct and (R)is the correct reason of (A).
(b) Both (A) and (R)are correct but (R)is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R)are wrong.

14 Reserve Capital is not a part of : 1

(i) Authorised Capital
(b) Subscribed Capital
(c) Unsubscribed Capital
(d) Issued Share Capital

15 A Company issued Capital. A shareholder paid all money on allotment while first call is not 1
called by the company. You are required to show this advance in Balance sheet of the
company as :
(a) Current Liability
(b) Long term Liability
(c) Current Assets
(d) None of the Above

16 Free Ltd. agreed to pay purchase consideration of Rs. 1, 30,000 by issuing fully paid up 1
debentures of Rs. 100 at Rs. 120. How many debentures will be issued?
(a) 1,083
(b) 1,084
(c) Can’t be determined
(d) None of these

17 A and B are partners in a firm sharing profits and losses in the ratio of 7:3. Their fixed 3
capitals were: A Rs. 9, 00,000 and B Rs. 4, 00,000. The partnership deed provided the
following:
(i) Interest on Capital @ 10% p.a
(ii) A’s salary Rs. 50,000 per year and B’s salary Rs. 3,000 per month.
Profit for the year ended 31st March, 2019 Rs. 2, 78,000 was distributed without
providing for interest on capital and partners’ salary.
Showing your working clearly, pass the necessary adjustment entry for the above omission.
OR
Ajay,Bhanu and Chetan entered into partnership on 1st July, 2021 to share profits and
losses in the ratio of 3:2:1. Ajay guaranteed that Chetan’s share of profit after charging
interest on capital @ 6% p.a would not be less than Rs. 36,000 p.a. Their fixed capital
balances are: Rs. 2,00,000, Rs. 1,00,000 and Rs. 1,00,000 respectively. Profit for the year
ended 31st March, 2022 was Rs.1,38,000.
Prepare Profit and Loss Appropriation A/c.
18 X, Y and Z were partners in a firm sharing profits in the ratio of 3:2:1. The firm closes its 3
books
on 31st March every year. Y died on 12th June, 2022. On Y’s death, the goodwill of the firm
was valued at Rs. 60,000. His share of profit of the firm till the time of his death was to be
calculated on the basis of previous year’s profit which was Rs. 1, 50,000. According to Y’s
will the executors should donate his share to an orphanage for girls.
Pass the necessary journal entries for the treatment of goodwill and Y’s share of profit at
19 the Ltd. purchased from C. Ltd., computers of Rs. 3,00,000 and software for Rs. 5,00,000
Lemon 3
payable Rs. 80,000 by cheque and balance by issue of 7% Debentures of Rs. 100 each at a
discount of 10%.
Pass the journal entries in the books of Lemon Ltd.
OR
Y Ltd took over the assets of Rs. 15, 00,000 and liabilities of Pvt. Ltd. for purchase
consideration of Rs.13, 50,000; Rs. 1,00,000 were paid by issuing a promissory note in
favour of P Ltd. payable after two months and the balance was paid by issue of Equity
shares of Rs.
100 each at a premium of 25%.
20 Pass necessary
Amit and Kartikjournal entriessharing
are partners for theprofits
aboveand
transaction I the books
losses equally. They of Y Ltd to admit
decided 3
Saurabh for an equal share in the profits. For this purpose, the goodwill of the firm was to
be valued at four years‘ purchase of super profits. The Balance Sheet of the firm on
Saurabh‘s admission was as follows:
Liabilities Amount Assets Amount
Capitals : 1,40,000 Machinery 75,000
Amit 90,000 Furniture 15,000
Kartik 50,000 Stock 30,000
Reserve 20,000 Sundry Debtors 20,000
Sundry Creditors 5,000 Cash 50,000 50,000
Loan 25,000
1,90,000 1,90,000
The normal rate of return is 12% per annum. Average profits of the firm for the last four
years were `Rs. 30,000. Calculate the Goodwill of the firm .
21 Newbie Ltd. was registered with an authorized capital of Rs. 5, 00,000 divided into 50,000 4
equity shares of Rs. 10 each. Since the economy was in robust shape, the company decided
to offer to the public for subscription 30,000 equity shares of Rs. 10 each at a premium of
Rs.
20 per share. Applications for 28,000 shares were received and allotment was made to all
the applicants. All calls were made and duly received except the final call of Rs. 2 per share
on 200 shares.
Show the 'Share Capital in the balance sheet of Newbie Ltd, as per Schedule II of the
22 Companies
P, Q and R were Act, 2013, Alsoinprepare
partners a firm notes toprofits
sharing accounts
andfor the same
losses in the ratio of 2:2:1. The firm 4
was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and
external liabilities to the realization account, the following transactions took place:
(i) A debtor whose debt of Rs. 90,000 had been written off as bad, paid Rs. 88,000 in
full settlement.
(ii) Creditors to whom Rs. 1, 21,000 were due to be paid, accepted stock at Rs. 71,000
and the balance was paid to them by a cheque.
(iii) Q had given a loan to the firm of Rs 18,000. He was paid Rs. 17,000 in full settlement
of his loan.
(iv) Profit & loss A/c were showing a debit balance of Rs. 15,000 on the date of
dissolution.
Pass necessary Journal entries for the above transactions in the books of the firm.
23 Petromax Ltd. Issued 50,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable 6
as Rs. 3 on application, Rs. 5 including premium on allotment and the balance in equal
instalments over two calls. Applications were received for 92,000 shares and the allotment
was done as under:
A- Applicants of 40,000 shares - Allotted 30,000 shares
B- Applicants of 40,000 shares - Allotted 20,000 shares
C- Applicants of 12,000 shares - Nil
Suresh who had applied for 2,000 shares (Category A) did not pay any money other than
application money. Chander who was allotted 800 shares (Category B) paid the call money
due along with allotment. Company forfeited the shares of Suresh and reissued 1,000
shares at Rs. 9 fully paid.
Pass necessary journal entries in the books of Petromax Ltd. to record the above.
OR
Arti Ltd. invited applications for issuing 80,000 shares of Rs. 100 each at a premium of Rs. 4
each. The amount was payable as follows:
On Application - Rs. 5 per share
On allotment - Rs. 9 per share (including premium)
Applications were received for 1,40,000 shares.
Allotment was made on the following basis:
i. To applicants for 80,000 shares – 60,000 shares
ii. To applicants for 60,000 shares – 20,000 shares
Money overpaid on applications was utilized towards sum due on allotment.
Rajiv, who had applied for 1,200 shares failed to pay his dues and his shares were forfeited.
Pass necessary journal entries in the books of Arti Limited to record the above transactions.
24 1) Meghnath Ltd. took a 6
Debentures of Rs. 100
Rs. 2 lakh. Record necessary journal entries. How would you show the issue of
Debentures and Bank loans in the Balance Sheet of the Company?
2) Give journal entries for the issue of debentures in the following conditions:
a )Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2%,
redeemable at par.
b)Issued 2,000, 12% Debentures of Rs. 100 each at a premium of 5%,
redeemable at a premium of 10%.
25 Vijay, Vivek and Vinay are partners in a business sharing profits as 3/4, 1/8 and 1/8 6
respectively and their Balance Sheet as at 31st March, 2022 was:
Liabilities Amount Assets Amount
Capitals : Plant 5,00,000
Vijay 5,00,000 Debtors 4,00,000
Vivek 3,00,000 Stock 2,00,000
Vinay 2,50,000 Cash 50,000
Reserve 50,000 Bank 2,50,000
Sundry Creditors 50,000
Loan by Vinay 2,50,000
14,00,000 14,00,000
Vinay died on 31st December, 2022 and the Partnership Deed provided the following:
(a) The deceased partner will be entitled to his share of profits up to the date of death,
calculated on the basis of previous year’s profits.
(b) He will be entitled to his share of goodwill of the firm, calculated on the basis of three
years’ purchase of the average profits of the four years.
The net profits for the last four years ended 31st March, 2017 – Rs. 8,00,000; 2018 – Rs.
6,00,000; 2019 – Rs. 4,00,000 and 2020 – Rs. 2,00,000.
(v) His drawing up to the date of death was Rs. 18,000.
 (vi) Determine the amount payable to the legal representatives of the deceased partner
by preparing the accounts.

26 A & B were partners sharing profits and losses in the ratio of 3:2. On 31st Marh 2022, their 6
Balance Sheet was as follows:
Liabilities Amount Assets Amount
Capitals : Plant And Machinery 40,000
A 60,000 Land and Building 80,000
B 50,000 Debtors 16,000
Reserve 20,000 Stock 22,000
Sundry Creditors 32,000 Cash 4,000

1,62,000 1,62,000
On the above date, C was admitted into partnership on the following terms:
(a) C was to pay Rs. 40,000 as capital and Rs. 20,000 as goodwill for 1/4th share in
profits
(b) Land and building were to be valued at Rs. 90,000 and Plant and Machinery at Rs.
50,000. Stock was to be written down by Rs. 4,000. Creditors included Rs. 1,000 no
longer payable.
(c) Capitals of all partners of the new firm were to be in the profit sharing ratio and for
this purpose current accounts were to be opened.
(d) Prepare Revaluation Account and Partners’ Capital Account.
OR
The Balance Sheet of A, B and C who were sharing profits and losses in the ratio of1/2,
1/3 and 1/6 respectively was as follows as on 1st April, 2022.
C retired from business on 1st April, 2022 and his share in the firm was to be ascertained

Liabilities Amount Assets Amount

Reserve fund 9,000 Cash 4,100
Sundry Creditors 12,600 Investments 10,000
Provident fund 3,000 Debtors 29,000
Capital A 40,000 Stock 25,000
B 36,500 Patent 5,000
C 20,000 Plant & Machinery 48,000
1,21,000 1,21,000
on the revaluation of assets as follows.
a) The goodwill of the firm was valued at Rs. 27,000.
b) Depreciation to be provided @10 % on machinery.
c) Patents were to be reduced by 20%.
d) Liability on account of provident fund was admitted at Rs. 2,400.
e) C took over investments at Rs. 15,800.
Prepare Revaluation A/c and Partners capital A/c.
 Part B :- Analysis of Financial Statements
27 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Profitability ratios are calculated to analysis the earning capacity of the
business.
Reason (R): Profitability ratios are calculated to determine the ability of the business to
service its debt in the long run.
In the context of the above two statements, which of the following is correct:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation
of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
28 Revenue from operations, i.e. sales ` 6,00,000, Gross Profit 25% on cost. Gross profit ratio 1
will be:
(A) 25%
(B) 20%
(C) 22%
(D) 18%
29 Z Ltd. redeemed Rs. 1, 00,000, 9% debentures at 10% premium. What will be the amount of 1
Cash flow from financing activities?
(a) Rs. 1,10,000
(b) Rs. 1,00,000
(c) Rs. 10,000
(d) None of these
OR
Dividend received by financial enterprise is shown in cash flow statement under :
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of the Above
30 Balance Sheet (Extract) 1
Assets 2013 2014
Non-current investments 40,000 45,000
Additional Information:
Investments costing Rs. 10,000 were sold at a profit of 40%
How much amount (related to above Information) for purchase of investment will be shown in investing
of cash flow statement prepared at the end of 2014:
(a) Rs. 14,000
(b) Rs. 15,000
(c) Rs. 10,000
(d) Rs. 25,000.

OR
 Balance Sheet (Extract)
Equity and liabilities 31-3- 31-3-2019 (Rs.) 31-3-2020 (Rs.)
2019 (Rs.) 31-3-2020 (Rs.)
10% Debentures 2,00,000 1,60,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March each year.
Debentures were redeemed on 30th September, 2019. How much amount (related to above information
will be shown in Financing Activity for Cash Flow Statement prepared on 31st March, 2020?
(a) Outflow Rs. 40,000.
(b) Inflow Rs. 42,000.
(c) Outflow Rs. 58,000.
(d) Outflow Rs. 64,000.

31 3
Classify the following items under Major heads and Sub-heads (if any) in the Balance Sheet
of the Company as per Schedule III of the Companies Act 2013.
(a) Security premium reserve
(b) Building under construction
(c) Publishing titles
(d) Bonds
(e) Bank Overdraft
(f) Loose Tool
32 The current rate of a company is 2:1 . State giving reasons which of the following 3
transactions would improve , reduce and not change the current ratio :
1 payment of current liability
2 purchase goods on credit
3 sale of goods costing Rs. 10000 for 110000
4 payment of dividend
5 redeemed from debtors Rs. 17000
6 cash deposited into bank
33
Calculate the following ratios- 2+2=
(a)Calculate Working Capital Turnover if 4
Cost of Revenue from Operations is Rs. 8,40,000;
Gross Profit Ratio is 20% and
excess of Current Assets over Current Liabilities is Rs. 3,50,000.
(b) From the following details, Calculate Interest Coverage Ratio.
Net Profit After Tax Rs. 7,00,000 OR
6% Debentures of Rs. 20,00,000 4
Tax Rate 30%
OR
 From the following information, Calculate total assets to debt ratio: (Rs.)

Capital Employed 22,50,000

Investment 1,20,000
Land 10,00,000,
Trade Receivables 3,00,000
Cash and Cash Equivalents 1,80,000
Equity Share Capital 10,50,000
8% Debentures 8,00,000
Capital Reserve 2,60,000
Surplus i.e., Balance in Statement of Profit and Loss (35,000)

Prepare a cash flow statement from the following balance sheet:

34 Particulars Note 31st March 31st March 6
No. 2020 (Rs.) 2019 (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserve and Surplus 4,00,000 2,00,000
2. Current Liabilities
Trade payables 2,80,000 1,80,000
--------------- ----------------
Total 12,80,000 8,80,000
II. Assets
1. Non Current Assets:
(a) Fixed Assets
(i) Plant and machinery 5,00,000 3,00,000
2. Current assets: 1,00,000 1,50,000
a) Inventories
b)Trade receivables 6,00,000 4,00,000
c)Cash and cash equivalents 80,000 30,000
--------------- ----------------
Total 12,80,000 8,80,000
Notes to Accounts:
ts: Particulars 31-03-2020 31-03-2019
(Rs.) (Rs.)
1. Reserve and Surplus: Surplus (Balance in 4,00,000 2,00,000
statement of Profit and Loss)
Additional information:
i) An old machinery having book value of Rs. 50,000 was sold for Rs. 60,000.
ii) Depreciation provided on machinery during the year was Rs. 30,000.