JAINENDRA PUBLIC SCHOOL

SUBJECT- ACCOUNTANCY (055)

CLASS XII (2023-24)
TIME 3 HOURS MAX. MARKS 80

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Part - A & Part - B are compulsory for all the candidates.

Q. PART A Mar
N0. (Accounting for Partnership Firms and Companies) ks
1 Vihaan and Mann are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating capital 1
accounts and the balance of the same as on 31st March 2022 is ₹ 4,00,000 and ₹ 4,65,000 for Vihaan and Mann
respectively. Drawings during the year were ₹ 65,000 each. As per the partnership Deed, Interest on capital @ 10%
p.a. on Opening Capital has been allowed to them. Calculate the opening capital of Vihaan given that the divisible
profits during the year 2021-22 was ₹ 2,25,000.
a) ₹ 3,30,000
b) ₹ 4,40,000
c) ₹ 4,00,000
d) ₹ 3,00,000

2 A& B are partners sharing profits and losses in the ratio of 3:2. C is admitted for ¼ and for which 1
₹30,000 and ₹10,000 are credited as a premium for goodwill to A and B respectively. The new profit-sharing ratio
of A:B:C will be:
a) 3:2:1
b) 12:8:5
c) 9:6:5

d) 33:27:20

3 If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 of 1
these shares were re-issued @₹ 11 per share as fully paid up, then what is the minimumamount that company
must collect at the time of re-issue of the remaining 3,000 shares?
a) ₹ 21,000
b) ₹ 9,000
c) ₹ 16,000
d) ₹ 30,000
OR

On 1st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During the year
company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance amount to
write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each at adiscount
of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P&L for the year for Loss on
issue of Debentures would be:

a) ₹30,00,000.
b) ₹22,00,000.
c) ₹24,00,000.
d) ₹20,00,000.
4 A, B and C who were sharing profits and losses in the ratio of 4:3:2 decided to share the future profitsand losses 1
in the ratio to 2:3:4 with effect from 1st April 2023. An extract of their Balance Sheet as at 31st March 2023 is:

Liabilities Amount(₹) Assets Amount(₹)

Workmen Compensation 65,000
Reserve
At the time of reconstitution, a certain amount of Claim on workmen compensation was determined forwhich B’s
share of loss amounted to₹5,000. The Claim for workmen compensation would be:

a) ₹15,000
b) ₹70,000
c) ₹50,000
d) ₹80,000
OR
A, B and C are in partnership business. A used ₹2,00,000 belonging to the firm without the informationto other
partners and made a profit of ₹35,000 by using this amount. Which decision should be taken by the firm to
rectify this situation?

a) A need to return only ₹2,00,000 to the firm.

b) A is required to return ₹35,000 to the firm.
c) A is required to pay back ₹35,000 only equally to B and C.
d) A need to return ₹2,35,000 to the firm.

5 Interest on Partner’s loan is credited to: 1

a) Partner’s Fixed capital account.
b) Partner’s Current account.
c) Partner’s Loan Account.
d) Partner’s Drawings Account.

6 Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of premium and to be redeemed at 10% 1
premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and Loss was debited with ₹
2,00,000. At what rate of premium, these debentures were issued?

a) 10%
b) 16%
c) 6%
d) 4%
7 Assertion (A) :- A Company is Registered with an authorised Capital of 5,00,000 Equity Shares of ₹10each of 1
which 2,00,000 Equity shares were issued and subscribed. All the money had been called up except ₹2 per share
which was declared as ‘Reserve Capital’. The Share Capital reflected in balance sheet as ‘Subscribed and Fully
paid up’ will be Zero.

Reason ( R ) :- Reserve Capital can be called up only at the time of winding up of the company.

(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanationof
Assertion (A)
(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct explanationof
Assertion (A)
(c) Assertion (A) is incorrect, but Reason (R) is Correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect

8 G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues towards the firmincluding 1
Capital balance, Accumulated profits and losses share, Revaluation Gain amounted to ₹5,80,000. G was being
paid ₹ 7,00,000 in full settlement. For giving that additional amount of ₹ 1,20,000, S was debited for ₹ 40,000.
Determine goodwill of the firm.
a). ₹ 1,20,000b).
₹80,000 c).
₹2,40,000
d). ₹ 3,60,000

OR
Annu, Banu and Chanu are partners, Chanu has been given a guarantee of minimum profit of ₹8,000 bythe firm.
Firm suffered a loss of ₹5,000 during the year. Capital account of Banu will be
by₹ .
a) Credited, ₹6,500.
b) Debited, ₹6,500.
c) Credited, ₹1,500.
d) Debited, ₹1,500.

Read the following hypothetical situation, answer question no. 9 and 10.

Richa and Anmol are partners sharing profits in the ratio of 3:2 with capitals of ₹2,50,000 and
₹1,50,000 respectively. Interest on capital is agreed @ 6% p.a. Anmol is to be allowed an annual salaryof 12,500.
During the year ended 31st March 2023, the profits of the year prior to calculation of interest on capital but after
charging Anmol’s salary amounted to ₹62,000. A provision of 5% of this profit is to be made in respect of
manager’s commission.

Following is their Profit & Loss Appropriation Account

Particulars (₹) Particulars (₹)
To Interest on CapitalRicha By Profit & loss (2) _
Anmol --------- account (After
--------- manager’s
commission)
To Anmol’s Salary a/c 12,500

To Profit transferred to: Richa’s

Capital A/C (1) (1) _

Anmol’s Capital A/c -----------

---------- ------------
9 The amount to be reflected in blank (1) will be: 1
a) ₹37,200
b) ₹44,700
c) ₹22,800
d) ₹20,940
10 The amount to be reflected in blank (2) will be: 1
a) ₹62,000.
b) ₹74,500.
c) ₹71,400.
d) ₹70,775.
11 In the absence of an agreement, partners are entitled to: 1
i) Profit share in capital ratio.
ii) Commission for making additional sale.
iii) Interest on Loan & Advances by them to the firm.
iv) Salary for working extra hours.
v) Interest on Capital.
Choose the correct option:
a) Only i), iv) and v).
b) Only ii) and iii).
c) Only iii).
d) Only i) and iii).

12 Rancho Ltd. took over assets worth ₹ 20,00,000 from PK Ltd. by paying 30% through bank draft and balance by 1
issue of shares of ₹ 100 each at a premium of 10%. The entry to be passed by Rancho Ltdfor settlement will be
:-

A. PK Ltd. Dr. 20,00,000

To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
ToBank A/c 6,00,000
To Statement of P&L 30
(Being settlement of amount due tovendors)

B. PK Ltd. Dr. 20,00,000

To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
ToBank A/c 6,00,030
(Being settlement of amount due to
vendors)

C. PK Ltd. Dr. 20,00,000

To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,300
To BankA/c 6,00,000
(Being settlement of amount due to
vendors)

D. PK Ltd. Dr. 20,00,000

To Share Capital A/c 12,73,000
To Securities Premium A/c 1,27,300
ToBank A/c 5,99,700
(Being settlement of amount due to
vendors)
13 A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) hasbeen paid. 1
Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital
Reserve. How many shares were re-issued?
a) 3,000 shares
b) 1,000 shares
c) 2,000 shares
d) 1,500 shares

14 X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share ofgoodwill 1
and he is required to bring proportionate capital for 1/3rdshare in profits. The capital contribution of Z will be:
a) ₹24,000.
b) ₹19,000.
c) ₹12,667.
d) ₹14,000.

15 A and B are partners. B draws a fixed amount at the end of every quarter. Interest on drawings is charged @15% 1
p.a. At the end of the year interest on B’s drawings amounted to ₹9,000. Drawings of B were:

a) ₹24,000 per quarter.

b) ₹40,000 per quarter
c) ₹30,000 per quarter
d) ₹80,000 per quarter

OR

Shyam, Gopal & Arjun are partners carrying on garment business. Shyam withdrew ₹ 10,000 in the beginning of
each quarter. Gopal, withdrew garments amounting to ₹ 15,000 to distribute it to flood victims, and Arjun
withdrew ₹ 20,000 from his capital account. The partnership deed provides for interest on drawings @ 10% p.a.
The interest on drawing charged from Shyam, Gopal & Arjun at theend of the year will be
a) Shyam- ₹ 4,800; Gopal- ₹ 1,000; Arjun- ₹ 2,000.
b) Shyam- ₹ 4,800; Gopal- ₹ 1,000; Arjun- ₹ 2,000.
c) c) Shyam- ₹ 2,500; Gopal- ₹ 750; Arjun- Nil.
d) d) Shyam- ₹ 4,800; Gopal- Nil; Arjun- Nil.

16 At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. 1
Other assets realised ₹ 1,50,000. Gain/Loss in the realisation account will be:
a) ₹ 30,000 (Gain)
b) ₹ 40,000 (Gain)
c) ₹ 40,000 (Loss)
d) ₹ 30,000 (Loss)
17 Amay, Anmol and Rohan entered into partnership on 1st July, 2021 to share profits and losses in the ratio of 3:2:1. 3
Amay guaranteed that Rohan’s share of profit after charging interest on capital @ 6% p.a would not be less than ₹
36,000 p.a. Their fixed capital balances are: ₹ 2,00,000, ₹ 1,00,000 and ₹ 1,00,000 respectively. Profit for the year
ended 31st March, 2022 was ₹1,38,000.
Prepare Profit and Loss Appropriation A/c.

18 P, Q and R were partners with fixed capital of ₹ 40,000, ₹32,000and ₹24,000.After distributing the profit of 3
₹48,000 for the year ended 31st March 2022 in their agreed ratio of 3 : 1 : 1it was observedthat:
(1) Interest on capital was provided at 10% p.a. instead of 8% p.a.
(2) Salary of ₹ 12,000 was credited to P instead of Q.
You are required to pass a single journal entry in the beginning of the next year to rectify the aboveomissions.
OR
Cheese and Slice are equal partners. Their capitals as on April 01, 2022 were Rs. 50,000 and Rs. 1,00,000
respectively. After the accounts for the financialyear ending March 31, 2023 have been prepared, it is observed
that interest on capital @ 6% per annum and salary to Cheese @ ₹5,000 per annum, as provided in the partnership
deed has notbeen credited to the partners’ capital accounts beforedistribution of profits.
You are required to give necessary rectifying entries using P&L adjustment account.

19 Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of ₹10,00,000and 3
liabilities of ₹ 1,70,000 by:
a) Issuing 8,000 8% Debentures of ₹ 100 each at 5% premium redeemable after 6 years @ ₹ 110;and
b) Cheque for ₹ 50,000.
Pass the Journal entries in the books of Pioneer Fitness Ltd.
OR
Lilly Ltd. forfeited 100 shares of ₹10 each issued at10% premium (₹8 called up ) on which a shareholder did not
pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60 shareswere reissued to Ram as fully
paid for ₹8 per share and 20 shares to Suraj as fully paid up @ ₹12 per share at different intervals of time.
Prepare Share Forfeiture account.

20 Calculate goodwill of a firm on the basis of three years purchases of the Weighted Average Profits ofthe last four 3
years. The profits of the last four years were:

Years (ending 31st march) 2020 2021 2022 2023

Amount 28,000 27,000 46,900 53,810

a) On 1st April, 2020 a major plant repair was undertaken for ₹10,000 which was charged to revenue. The said
sum is to be capitalized for goodwill calculation subject to adjustment of depreciation of 10% on reducing
balance method.
b) For the purpose of calculating Goodwill the company decided that the years ending 31.03.2020 and
31.03.2021 be weighted as 1 each (being COVID affected) and for year ending 31.03.2022 and 31.03.2023
weights be taken as 2 and 3 respectively.

21 Altaur Ltd. was registered with an authorised Capital of ₹ 4,00,00,000 divided in 25,00,000 Equity Shares of ₹ 10 4
each and 1,50,000, 9% Preference Shares of ₹ 100 each. The company issued 8,00,000 Equity Shares for public
subscription at 20% premium, payable ₹ 3 on application; ₹ 7 on allotment (including premium) and balance on call.
Public had applied for 10,00,000 shares. Excess Applications were sent letters of regret.
All the dues on allotment received except on 15,000 shares held by Sanju. Another shareholder Rocky paid his
call dues along with allotment on his holding of 25,000 shares. You are required to prepare the Balance Sheet of
the company as per Schedule III of Companies Act, 2013, showing Share Capital balance.

22 Charu, Dhwani, Iknoor and Paavni were partners in a firm. They had entered into partnership firm last year only, 4
through a verbal agreement. They contributed Capitals in the firm and to meet other financial requirements, few
partners also provided loan to the firm. Within a year, their conflicts arisen due to certain disagreements and they
decided to dissolve the firm. The firm had appointed Ms. Kavya, who is a financial advisor and legal consultant,
to carry on the dissolution process. In the first instance, Ms. Kavya had transferred various assets and external
liabilities to Realisation A/c. Due to her busy schedule; Ms. Kavya has delegated this assignment to you, being an
intern in her firm. On the date of dissolution, you have observed the following transactions:
(i) Dhwani’s Loan of ₹ 50,000 to the firm was settled by paying ₹ 42,000.
(ii) Paavni’s Loan of ₹ 40,000 was settled by giving an unrecorded asset of ₹ 45,000.
(iii) Loan to Charu of ₹ 60,000 was settled by payment to Charu’s brother loan of the same amount.
(iv) Iknoor’s Loan of ₹ 80,000 to the firm and she took over Machinery of ₹ 60,000 as part payment.

You are required to pass necessary entries for all the above mentioned transactions.

23 The Directors of Rockstar Ltd. invited applications for 2,00,000 Shares of ₹ 10 each, issued at 20% premium. 6
Share was payable as ₹ 5 on application, ₹ 4 (including premium) on allotment and balanceon call. Public had
applied for 3,20,000 shares out of which applications for 20,000 shares were rejected and remaining were alloted
on pro-rata basis.
Simba, an applicant of 15,000 shares failed to pay allotment and call money. His shares were forfeitedand out of
these 6,000 shares were reissued at a discount of ₹2 per share.
Journalise.

OR

Shaktimaan Ltd. invited applications for issuing 1,00,000 Shares of ₹ 10 each at a premium of ₹2 pershare. The
amount was payable as₹ 4 on application (including premium); ₹ 5 on Allotment and balance on call.
Applications were received shares for 1,80,000 of which Applications for 30,000 shares were rejected and
remaining applicants were allotted on pro-rata basis.
Manthan, holding 5,000 shares failed to pay call money and his shares were forfeited. Out of these2,000 shares
were re-issued at premium of ₹ 3 per share.
Prepare Cash Book and pass necessary entries.
24. Rajinder and Vijay were partners in a firm sharing profits in the ratio 3:2. On 31st March 2023 their balance sheet 6
was as follows:
Liabilities Amount (₹) Assets Amount(₹)
Capital A/cs: Fixed Assets (Tangible) 3,60,000

RajinderVijay 3,00,000 Goodwill 50,000

1,50,000 4,50,000
Investments 40,000
Current A/cs: Stock 74,000
Rajinder 50,000 Debtors 1,00,000
Vijay 10,000 60,000 Less: Provision for 96,000
Doubtful Debts
4,000

Creditors 75,000 Bank 25,000

General Reserve 60,000

6,45,000 6,45,000

With an aim to expand business it is decided to admit Ranvijay as a partner on 1st April 2023 on thefollowing
terms:
a) Provision for doubtful debts is to be increased to 6% of debtors.
b) An outstanding bill for repairs ₹ 50,000 to be accounted in the books
c) An unaccounted interest accrued of ₹ 7500 be provided.
d) Investments were sold at book value.
e) Half of stock was taken by Rajinder at ₹42,000 and remaining stock was also to be revalued atthe same
rate.
f) New profit-sharing ratio of partners will be 5:3:2.
g) Ranvijay will bring ₹ 1,00,000 as capital and his share of goodwill which was valued at twicethe
average profit of the last three years ended 31st March 2023, 2022 and 2021 were ₹ 1,50,000, ₹
1,30,000 and ₹ 1,70,000 respectively.
Pass necessary journal entries.
OR
L, M and N were partners in a firm sharing profit & losses in the ratio of 2:2:3 . On 31st March 2023,their Balance
Sheet was as follows:

Liabilities Amount(₹) Assets Amount(₹)

Creditors 80,000 Land and Building 5,00,000
Bank overdraft 22,000 Machinery 2,50,000
Long term debts 2,00,000 Furniture 3,50,000
Capital A/C s: Investments 1,00,000
L-6,25,000
M -4,00,000
N -5,25,000 15,50,000
Employees provident fund 38,000 Stock 4,00,000
Debtors 2,00,000
Bank 20,000
Deferred Advertisement 70,000
Expenditure
18,90,000 18,90,000

On 31st March 2023 , M retired from the firm and remaining partners decided to carry on business. Itwas decided
to revalue assets and liabilities as under :
a) Land and Building be appreciated by₹ 2,40,000 and Machinery be depreciated 10%.
b) 50% of investments were taken by the retiring partner at book value.
c) Provision for doubtful debts was to be made at5% on debtors.
d) Stock will be valued at market price which is ₹1,00,000 less than the book value.
e) Goodwill of the firm be valued at ₹5,60,000. L and N decided to share future profits and lossesin the
ratio of 2:3.
f) The total capital of the new firm will be ₹32,00,000 which will be in proportion of profit -sharing
ratio of L and N.
g) Gain on revaluation account amounted to ₹1,05,000.

Prepare Partner’s Capital accounts and Balance sheet of firm after M’s retirement.
25 A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 2019. Entry for treatment of goodwill 6
after his death was passed as follows:-
Date Particulars L.F Debit Credit
(₹) (₹)
B’s Capital A/c Dr. 1,80,000
C’s Capital A/c Dr. 1,20,000
To A’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at the time of
death of partner)

A’s profit till date of death was estimated as ₹ 1,20,000, based on the average profits of past three years.
Final dues payable to A’s executors on the date of death was calculated as ₹ 8,40,000 out of which ₹
2,40,000 was paid immediately by giving him Furniture valued for the same and balance was to be paid in
three equal annual instalments starting from 30 June, 2020, together with interest rate as specified in
Section 37 of Indian Partnership Act, 1932..
Pass necessary entry for profit share to be credited to A’s Capital and also
prepare A’s executors account till final settlement.

26 On July 01, 2022, Panther Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 8% premium and redeemable at a 6
premium of 15% in four equal instalments starting from the end of the third year. Thebalance in Securities
Premium on the date of issue of debentures was ₹ 80,000. Interest on debentures was to be paid on March 31 every
year.
Pass Journal entries for the financial year 2022-23. Also prepare Loss on Issue of Debentures account.

PART B

(Analysis of Financial Statements)

27 ‘Freedom to Choose of method of depreciation’ refers to which limitation of financial statementanalysis. 1

a) Historical analysis.
b) Qualitative aspect ignored.
c) Not free from bias.
d) Ignore Price level Changes.
OR
. ............ is included in current assets while preparing balance sheet as per revised Schedule III butexcluded from
current assets while calculating Current Ratio
a) Debtors.
b) Cash and Cash Equivalent.
c) Loose tools and Stores and spares.
d) Prepaid Expense.

28 Debt-Equity Ratio of Dhamaka Ltd is 3 : 1. Which of the following will result in decrease in this ratio? 1
a) Issue of Debentures for Cash of ₹2,00,000.
b) Issue of Debentures of ₹3,00,000 to Vendors from whom Machinery was purchased.
c) Goods purchased on Credit of ₹1,00,000.
d) Issue of Equity Shares of ₹2,00,000.
29 Statement I:- Sale of Marketable Securities will result in no flow of Cash. 1
Statement II:- Debentures issued as collateral security will result in inflow of cash.

A. Both Statements are correct. B. Both Statements are incorrect.

C. Statement I is correct and Statement II D. Statement I is incorrect and Statement
is incorrect. I is correct.
OR
What will be the effect of issue of Bonus shares on Cash Flow Statement?
A. No effect B. Inflow in Financing Activity
C. Inflow in Operating activity D. Inflow in Investing Activity
30 From the following information find out the inflow of Cash by sale of Office 1
equipment’s
31st March, 2022 31st March, 2021
Office Equipment ₹ 2,00,000 ₹ 3,00,000

Additional Information:
Depreciation for the year 2021-22 was Rs. 40,000
Purchase of Office Equipment purchased during the year Rs. 30,000.
Part of Office Equipment sold at a profit of Rs. 12,000.

a) ₹ 1,00,000 b) ₹ 1,02,000
c) ₹ 90,000 d) ₹ 1,12,000

31 Classify the following items under Major heads and Sub heads (If any) in the balance sheet of a 3
Company as per schedule III of the Companies Act 2013.
i. Loose Tools ii. Loan repayable on demand
iii. Provision for Retirement benefits iv. Pre-paid Insurance
v. Capital advances vi. Shares in Listed Companies
a)
32 a) A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6 times. It had total 3
current assets of ₹8,00,000. Find out annual sales if goods are sold at 25% profit on cost.
b) Calculate debt to capital employed ratio from the following information.

Shareholder funds ₹ 15,00,000

8% Debenture ₹ 7,50,000
Current liabilities ₹ 2,50,000
Non -current Assets ₹ 17,50,000
Current Assets ₹7,50,000

33 From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st March 2022 4
and 31st March 2023, prepare a common size statement of profit & loss:

Particulars Note No. 2022-23(₹) 2021-22(₹)

Revenue from operations 8,00,000 10,00,000
Gross Profit 60% 70%
Other Expenses OR 2,20,000 2,60,000
Tax Rate 50% 50%

From the following information, prepare comparative statement of Profit & Loss:
Particulars Note No. 2022-23(₹) 2021-22(₹)
Revenue from operations 10,00,000 8,00,000
Other Income 2,20,000 1,50,000
Cost of materials consumed 4,00,000 3,00,000
Change in inventories of finished goods 2,00,000 1,00,000
and work in progress
Other Expenses(% of cost of Revenue from 15% 10%
Operations
Tax Rate 30% 30%
34 Prepare a Cash Flow Statement from the following Balance Sheets of Arya Ltd.: 6
Particulars Note 31.3.2023(₹) 31.3.2022(₹)
I. Equity and Liabilities:
(1) Shareholders’ Funds:
a) Share Capital 1 10,00,000 8,00,000
b) Reserves and Surplus 2 6,40,000 5,40,000
(2) Non-Current Liabilities:
Long-term Borrowings 1,50,000 1,00,000
(3) Current Liabilities:
a) Trade Payables 30,000 12,000
b) Short-term Provisions 3 30,000 28,000
Total 18,50,000 14,80,000
II. Assets:
(1) Non-Current Assets:
a) Property, Plant and
equipment and intangible
assets:
Property, Plant and Equipment 4 7,75,000 4,90,000
b) Non-current Investments 90,000 50,000
: (2) Current Assets
a) Inventory 6,20,000 4,13,000
b) Trade receivables 3,20,000 4,94,000
c) Cash & Cash Equivalents 45,000 33,000
Total 18,50,000 14,80,000
Notes to Accounts
Particulars 31.3.2023 31.3.2022
1. Reserves & Surplus:
General Reserve 5,00,000 4,30,000
Capital Reserve 60,000 50,000
Surplus ie balance in statement of profit and 80,000 60,000
loss

2. Long-term Borrowings:
10% Debentures 1,50,000 1,00,000

3. Short-term Provisions:
Provision for tax 30,000 28,000

4. Tangible Assets:
Plant and Machinery 7,75,000 4,90,000

Additional Information:
1. Tax provided during the year is ₹17,000.
2. Depreciation charged on Plant and Machinery during the year amounted to ₹1,20,000.
3. Non-current Investments costing ₹ 30,000 were sold for ₹ 40,000 during the year. Gain on sale of
Investments was credited to Capital Reserve.
4. Additional Debentures were issued on 31.03.2023.