Practice 1

Part A
(Accounting for Partnership Firms and Companies)
1. Prem, Rajesh, and Om were partners in a firm sharing profits and losses equally. Shiva was
admitted as a partner for an equal share. Shiva brought his share of capital and premium for
goodwill by cheque. The premium for goodwill amount will be distributed among
(a) Old partners in Old Profit-sharing Ratio.
(b) New partners in New Profit-sharing Ratio.
(c) New partners in Sacrificing Ratio.
(d) Old partners in Sacrificing Ratio.
2. Shiv and Mohan are partners in a firm sharing profits and losses in the ratio of 2:1. They
admitted Ram as a partner for a 2/7 share, for which ₹8,000 and ₹4,000 are credited as a
premium for goodwill to Shiv and Mohan, respectively. The new profit-sharing ratio of Shiv,
Mohan, and Ram will be
(a) 3:2:2
(b) 4:2:1
(c) 10:5:6
(d) 4:1:2
3. Nakul, Mukul, and Vipul are partners in a firm sharing profits in the ratio of 2:1:1. It is
provided in the deed that Vipul’s share of profit will not be less than ₹70,000 per annum. The
loss for the year ended 31st March, 2024, was ₹2,00,000 before allowing interest ₹9,000 on
Nakul’s Loan, which is due for the current year. What amount will be debited to Nakul’s
Capital Account at the end of the year?
(a) ₹1,00,000
(b) ₹1,50,000
(c) ₹1,70,000
(d) ₹1,86,000
or
If average capital employed in a firm is ₹10,00,000, Average profit is ₹1,40,000 and Normal
Rate of Return is 10%, then Super Profit is
(a) ₹80,000
(b) ₹60,000
(c) ₹1,00,000
(d) ₹40,000
4. Assertion (A): Interest on Loan by Partner is transferred to the credit of Partner Loan
Account.
Reason (R): Interest on Partner’s Loan is a gain to a partner as a lender and not as a partner.
In the context of the above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is incorrect.
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are incorrect.
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation
of Assertion (A).
5. Tushar Ltd. forfeited 600 shares of ₹10 each issued at a premium of 10% for non-payment
of first and final call money of ₹3 (including premium). Out of these 400 shares were
reissued to Mohan as ₹10 paid-up for ₹11 per share. What is the minimum amount that the
company should collect at the time of reissue of the remaining 200 shares?
(a) ₹800
(b) ₹600
(c) ₹400
(d) ₹200
Or
An offer of securities or invitation to subscribe securities to a select group of persons is
termed as:
(a) Buy Back of Shares.
(b) Employee Stock Option Plan.
(c) Private Placement of Shares.
(d) Sweat Equity.
6. X, Y, and Z, who presently share profits and losses in the ratio of 5:3:2, decide to share
profits and losses in the ratio of 2:3:5 with effect from 1st April, 2024. An extract of their
Balance Sheet as of 31st March, 2024 is as follows:
Liabilities ₹ Assets ₹
Investments (at
Investment Fluctuation Reserve 7,500 1,00,000
cost)
At the time of reconstitution, a certain amount of loss due to the fall in market value of
investments was determined, for which Y’s share of loss was ₹750. Market value of
investments was
(a) ₹80,000
(b) ₹85,000
(c) ₹90,000
(d) ₹95,000
7. On reconstitution of a firm, Deferred Revenue Expenditure in the Balance Sheet is
(a) Debited to Partners’ Capital Accounts in Old Profit-sharing Ratio.
(b) Credited to Partners’ Capital Accounts in Old Profit-sharing Ratio.
(c) Transferred (Debited) to Revaluation Account.
(d) Realised in cash.
8. X Ltd. purchased business of Y Ltd. for ₹ 9,60,000 payable 25% by cheque and balance by
issue of 9% Debentures of ₹ 100 each at a discount of 4% redeemable at a premium of 6%.
9% Debentures Account is credited with
(a) ₹ 9,60,000.
(b) ₹ 10, 00,000.
(c) ₹ 7, 50,000.
(d) ₹ 7, 20,000.
Or
Vipin Ltd. took over assets of ₹ 3,00,000 and liabilities of ₹ 10,000 of Deepak Ltd. for ₹
2,70,000 payable by issue of 9% Debentures of ₹ 100 each at 20% premium. Which of the
following statement is correct?
(a) Goodwill Account is to be debited with ₹ 20,000.
(b) Capital Reserve is to be debited with ₹ 20,000.
(c) Goodwill Account is to be credited with ₹ 20,000.
(d) Capital Reserve is to be credited with ₹ 20,000.
9. Assertion (A): Tetra Ltd. had issued 20,000 Equity Shares which were subscribed. All the
calls were made except ₹ 25 per share which was resolved to be 'Reserve Capital'. Share
capital shown in Balance Sheet as ‘Subscribed and Fully Paid-up’ will be nil.
Reason (R): Reserve Capital can be called at the time of winding up.
In the context of above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is incorrect.
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are incorrect.
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation
of Assertion (A).
10. Ram, Mohan and Sohan are partners sharing profits in the ratio of 2 : 2 : 1. On retirement
of Mohan, goodwill was valued at ₹ 60,000. Ram and Sohan will respectively compensate
Mohan with
(a) ₹ 24,000 and ₹ 20,000.
(b) ₹ 16,000 and ₹ 8,000.
(c) They will not contribute anything.
(d) ₹ 40,000 and ₹ 20,000.
11. Hari, an old customer whose account for ₹ 10,000 was written off as bad debt last year,
paid 70% of the amount at the time of dissolution of firm. The entry to record the transaction
will be:
(a) Debtor’s A/c Dr. 7,000
To Bad Debts Recovered A/c
(b) Bank A/c Dr. 7,000
To Bad Debts Recovered A/c
(c) Bank A/c Dr. 7,000
To Realisation A/c
(d) Realisation A/c Dr. 7,000
To Bad Debts Recovered A/c
12. Which of the following statements is correct?
(i) Liability of a partner for the acts of the firm is unlimited.
(ii) Personal assets of a partner can also be used for paying debt of the firm.
(iii) Partners are liable for firm’s debt jointly with other partners and also individually.
(iv) Business of partnership firm must be carried on by all the partners.
(a) Only (iii).
(b) (i) and (iii).
(c) (i), (ii) and (iii).
(d) (i), (ii), (iii) and (iv)
13. Moon Ltd. purchased machinery from Star Ltd. for ₹4,96,000, payable 20% by a cheque,
and the balance by the issue of fully paid Equity Shares of ₹100 each at a premium of 10%.
The entry to be passed by Moon Ltd. for settlement will be:
(a) Star Ltd. A/c .... Dr. ₹4,96,000
To Share Capital A/c ₹3,60,700
To Securities Premium A/c ₹36,700
To Bank A/c ₹99,200
To Statement of Profit & Loss ₹30
(b) Star Ltd. A/c .... Dr. ₹4,96,000
To Share Capital A/c ₹3,60,700
To Securities Premium A/c ₹36,700
To Bank A/c ₹99,230
(c) Star Ltd. A/c .... Dr. ₹4,96,000
To Share Capital A/c ₹3,60,700
To Securities Premium A/c ₹36,700
To Bank A/c ₹99,200
(d) Star Ltd. A/c .... Dr. ₹4,96,000
To Share Capital A/c ₹3,60,500
To Securities Premium A/c ₹36,050
To Bank A/c ₹99,450
14. Tushar Ltd. forfeited 1,000 shares of ₹10 each (₹8 called-up) for the non-payment of the
allotment money of ₹5 per share, including ₹2 as a premium. Out of these, few shares were
reissued to Ramesh at ₹7 per share as ₹8 called-up, and ₹3,200 were transferred to Capital
Reserve. The number of shares reissued were:
(a) 500 shares
(b) 600 shares
(c) 700 shares
(d) 800 shares
15. A and B were in partnership, sharing profits and losses in the ratio of 3:2. They admitted
C for a 1/5th share in profits. Capitals of A and B, after adjustments, are ₹50,000 and ₹40,000
respectively. C is to bring 25% of the total capital of the new firm. The capital contribution of
C will be:
(a) ₹15,000
(b) ₹20,000
(c) ₹25,000
(d) ₹30,000
Or
Tarang and Tanmay are partners in a firm. Tarang draws a fixed amount at the end of each
quarter. Interest on drawings is charged @ 10% p.a. At the end of the year, interest on
Tarang’s drawings was ₹ 900. Drawings of Tarang per quarter were
(a) ₹ 4,000.
(b) ₹ 5,000.
(c) ₹ 6,000.
(d) ₹ 8,000. [1]
16. At the time of dissolution of a firm, creditors are ₹ 3, 20,000; firm’s capital is ₹ 4,80,000;
Bank Balance is ₹ 50,000. Other assets realised ₹ 6, 00,000. Gain/Loss in the Realisation
Account will be
(a) ₹ 1,50,000 (Gain).
(b) ₹ 1, 60,000 (Gain).
(c) ₹ 2, 00,000 (Gain).
(d) ₹ 1, 50,000 (Loss).
Or
Vijay, a partner, took machinery of ₹ 80,000 in settlement of his loan of ₹ 90,000. Machinery
was already transferred to Realisation Account.
How it will affect the Realisation Account?
(a) Realisation Account will be credited by ₹ 10,000.
(b) Realisation Account will be credited by ₹ 90,000.
(c) Realisation Account will be credited by ₹ 80,000.
(d) No effect on Realisation Account. [1]
17. Adil, Bhavya and Cris are partners sharing profits and losses in the ratio of 4 : 3 : 2.
Bhavya retired from the firm and Adil and Cris decided to share profits and losses in the ratio
of 5 : 3 in reconstituted firm. The accountant passed the following Journal entry for adjusting
Bhavya’s share of Goodwill and missed some information. Complete the missing values in
the following Journal entry and calculate the gaining ratio:
Date Particulars L.F. Dr. (₹) Cr. (₹)
Adil’s Capital A/c Dr. ...
Cris’s Capital A/c Dr. 3,300
To Bhavya’s Capital A/c ...
(Bhavya’s share of goodwill adjusted in the Capital Accounts of gaining partners in their
gaining ratio) [3]
18. X, Y and Z are partners. Their fixed capitals as on 31st March, 2024 were: X—₹ 1,
00,000; Y—₹ 80,000 and Z—₹ 60,000. After distributing profits for the year 2023-24 in the
ratio of 3: 1: 1, it was noticed that:
(i) Interest on capital was credited @ 10 p.a. instead of 8% p.a.
(ii) Salary of ₹ 30,000 was credited to X instead of Y.
Pass the necessary adjusting entry to rectify the above errors in the beginning of the next
year.
Or
P, Q, and R are partners in a firm. Their capitals were ₹ 3,00,000; ₹ 1,50,000 and ₹ 1,50,000
respectively on 1st April, 2023.
As per the provisions of the Partnership Deed:
(i) R was to be allowed remuneration of ₹ 36,000 per annum.
(ii) Interest @ 5% p.a. was to be allowed on capital, and
(iii) Profits were to be distributed in the ratio of 2 : 2 : 1.
Ignoring the above terms, net profit of ₹ 1, 80,000 for the year ended 31st March, 2024 was
distributed among the three partners equally.
Pass the Journal entries to rectify the errors. [3]
19. Sunrise Ltd. took over the business of Venus Ltd. having assets of ₹ 25,00,000 and
liabilities of ₹ 4,25,000 by:
(i) Issuing 20,000, 9% Debentures of ₹ 100 each at 5% premium redeemable at 10%
premium after 4 years, and
(ii) Cheque for ₹ 1,25,000.
Pass the Journal entries in the books of Sunrise Ltd.
Or
Mehar Ltd. forfeited 2,500 shares of ₹ 10 each issued at 10% premium (₹ 8 called-up)
on which a shareholder did not pay ₹ 3 on allotment (including premium) and first call of ₹ 2
per share. Out of these 1,500 shares were reissued to Vijay as fully paid-up for ₹ 8 per share
and 500 shares to Sanjay as fully paid-up @ ₹ 12 per share on different dates.
Prepare Share Forfeiture Account
20. Calculate the value of firm’s Goodwill at 2 years’ purchase of super profit of the
last 3 years. Profits for the last 3 years are ₹ 3, 00,000; ₹ 3, 30,000 and ₹ 3, 60,000.
Normal profits for similar firms are ₹ 1, 80,000.
Pass Journal entry for treatment of goodwill on Shyam’s admission into firm for 1/5th share
of profit, assuming that he is unable to bring premium for goodwill. The old partners Om and
Ravi shared profits in the ratio of 3: 2
21. Janta Ltd. had an authorised capital of 2, 00,000 equity shares of ₹ 10. The company
offered to the public for subscription 1, 00,000 shares. Applications were received for 90,000
shares. The amount was payable as follows:
• On application ₹ 3 per share
•₹6 on allotment (including ₹ 1 premium)
• Balance on first & final call
All the money was duly called and received except allotment and call money on 5,000 shares
held by Mohan and call money on 4,000 shares held by Ashok.
• Mohan’s shares were forfeited, and out of these, 3,000 shares were reissued for ₹ 9 per
share as fully paid-up.
Present the Share Capital in the Balance Sheet of the company as per Schedule III of the
Companies Act, 2013. Also, prepare Note to Accounts
22. Priya, Riya, and Siya are partners sharing profits in the ratio of 2: 2: 1. Riya died on 30th
June, 2022. It is provided in the Partnership Deed that on the death of any partner, her
executors will be entitled to the following:
(i) Balance in her Capital Account which is ₹ 2, 00,000 and interest on capital till date of
death which is calculated as ₹ 10,000.
(ii) Her share in the profit of the firm till the date of her death is ₹ 30,000.
(iii) Her share in the goodwill of the firm. Goodwill of the firm on Riya’s death is valued at
₹2, 00,000.
(iv) Loan to Riya is ₹ 20,000.
It was agreed that the amount will be paid to her executor in two equal yearly instalments
along with interest @ 10% p.a. First instalment was to be paid on 30th June, 2023. The firm
closes its books on 31st March every year.
Calculate the amount to be transferred to Riya’s Executor’s Account. Prepare Riya’s
Executor’s Account till it is finally closed. [4]
23. Sangita Ltd. invited applications for issuing 1, 00,000 Equity Shares of ₹ 10
each. The amount was payable as follows:
(i) On Application - ₹ 3 per share
(ii) On Allotment - ₹ 2 per share
(iii) On First & Final Call - Balance
Applications were received for 2, 20,000 shares. Applications for 20,000 shares were refused
allotment and their application money was refunded. Shares were allotted to the remaining
applicants as follows:

• I. Allotted 50% shares to Sun, who had applied for 40,000

shares.
• II. Allotted in full to Moon, who had applied for 20,000

shares.
• III. Allotted the balance of the shares on pro rata basis to

the other applicants.

Excess application money was utilised in payment of allotment and final call. All calls were
made and were duly received except the first and final on 600 shares allotted to an applicant
in category III.
His shares were forfeited. The forfeited shares were reissued for ₹ 9 per share fully paid-up.
Pass the necessary Journal entries in the books of Sangita Ltd. to record the above, assuming
that Calls-in-Arrears Account is maintained.
Or
On 1st July, 2023, Moon Craft Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a
premium of 4%, redeemable at a premium of ₹ 15 per debenture in two equal annual
instalments starting from the end of third year.
Company has a balance of ₹ 60,000 in Securities Premium on the date of issue of debentures.
Pass the necessary Journal entries for the financial year 2023-24. Also, prepare Loss on Issue
of Debentures Account. [6]
24.
Usha and Asha are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet
as at 31st March, 2024 was as follows:

BALANCE SHEET OF USHA AND ASHA as at 31st March,

2024
Liabilities ₹ Assets ₹
Creditors 27,000 Cash 24,000
General Reserve 18,000 Debtors 48,000
Less: Provision for
Bills Payable 5,000 4,800
Doubtful Debts
Capital A/cs: Stock 30,000
Usha 40,000 Patents 7,400
Asha 35,000 Building 20,400
Total 75,000 Total 1,25,000
Neelam is admitted into the partnership, giving her 1/5th share in the profits. Neelam is to
bring in ₹ 30,000 as her Capital and her share of Goodwill in cash subject to the following
terms:
(i) Goodwill of the firm is valued at ₹ 50,000.
(ii) Stock to be reduced by 10% and Provision for Doubtful Debts to be reduced by ₹ 2,400.
(iii) Patents are of nil value.
(iv)There was a claim against the firm for damages of ₹ 2,000, which has now been accepted.
(v) The partners have decided that General Reserve will continue in the books of the new
firm at its original value.
Pass the necessary Journal entries to give effect to the above arrangement.
Or
Kavya, Manya, and Navita were partners sharing profits as 50%, 30%, and 20%, respectively.
On 31st March, 2024, their Balance Sheet stood as follows:

BALANCE SHEET OF KAVYA, MANYA, AND NAVITA as at

31st March, 2024
Liabilities ₹ Assets ₹
Capital A/cs: Fixed Assets 8,90,000
Kavya 6,00,000 Investments 2,00,000
Manya 5,00,000 Stock 1,30,000
Navita 4,00,000 Debtors 4,00,000
General Less: Provision for Doubtful
1,00,000 30,000
Reserve Debts
Creditors 1,40,000 Bank 1,50,000
Total 17,40,000 Total 17,40,000
On the above date, Kavya retired, and Manya and Navita agreed to continue the business on
the following terms:
(i) Firm’s goodwill was valued at ₹ 60,000, and it was decided to adjust Kavya’s share of
goodwill in the capital accounts of continuing partners.
(ii) There was a claim for workmen’s compensation to the extent of ₹ 4,000.
(iii) Investments were revalued at ₹ 2, 13,000.
(iv) Fixed Assets were to be depreciated by 10%.
(v) Kavya was to be paid ₹ 20,000 through a bank draft and the balance was transferred to
her loan account which will be paid in two equal annual instalments together with interest @
10% p.a.
Prepare Revaluation Account, Kavya’s Capital Account, and Kavya’s Loan Account till it is
finally paid. [6]
25. Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5:3:2.
Their Balance Sheet as at 31st March, 2024 was as follows:

Liabilities ₹ Assets ₹

Sundry Creditors 50,000 Cash at Bank 7,000

Workmen Compensation Reserve 5,000 Sundry Debtors 65,000

Less: Provision for Doubtful

Employees’ Provident Fund 5,000 (5,000)
Debts
Bank Loan 55,000 Goodwill 50,000

Capital A/cs: Furniture 1,00,000

- Susan 2,20,000 Building 3,80,000

- Geeta 1,70,000

- Rashi 1,35,000

Total 6,60,000 Total 6,60,000

The partners decided to dissolve their partnership on 1st April, 2024.

Following transactions took place at the time of dissolution:
1. Realisation expenses of ₹ 2,000 were paid by Susan on behalf of the firm.
2. Geeta took over goodwill for her own business at ₹ 40,000.
3. Building was taken by Rashi at ₹ 3,00,000.
4. Only 80% of the debtors paid their dues.
5. Bank Loan was paid along with interest of ₹ 5,000.
6. The firm retrenched their employees before the dissolution and it had to pay ₹ 15,000
as compensation. This liability was not appearing in the Balance Sheet.
7. An unrecorded asset of ₹ 6,900 was given for an unrecorded liability of ₹ 6,000 in
settlement.
Prepare the Realisation Account.

26. Victoria Ltd. invited applications for 1,00,000 Equity Shares of ₹ 10 each.
• Payable ₹ 2 on application, ₹ 3 on allotment, and balance on first and final call.
• Applications were received for 3,00,000 shares, and shares were allotted on pro rata
basis.
• Excess application money was adjusted against allotment.
• Mohan, a shareholder, had applied for 3,000 shares but did not pay the call money, and
his shares were forfeited and later reissued at ₹ 8 per share as fully paid.
I. State the amount of excess application money refunded to the applicants:
(a) ₹ 50,000
(b) ₹ 1, 00,000
(c) ₹ 1, 20,000
(d) ₹ 1, 50,000
II. State the excess application money adjusted in Shares Allotment Account:
(a) ₹ 1, 50,000
(b) ₹ 2, 00,000
(c) ₹ 2, 50,000
(d) ₹ 3, 00,000
III. State the amount received towards Shares Allotment Account:
(a) ₹ 2, 00,000
(b) ₹ 2, 50,000
(c) ₹ 3, 00,000
(d) NIL
IV. State the amount forfeited at the time of forfeiture of Mohan’s shares:
(a) ₹ 4,000
(b) ₹ 4,500
(c) ₹ 5,000
(d) ₹ 6,000
V. State the amount credited to ‘Calls-in-Arrears’ at the time of forfeiture of shares:
(a) ₹ 4,000
(b) ₹ 4,200
(c) ₹ 4,500
(d) ₹ 5,000
VI. State the amount transferred to Capital Reserve:
(a) ₹ 2,000
(b) ₹ 2,500
(c) ₹ 3,000
(d) ₹ 3,500
Part B: (Analysis of Financial Statements)
27. Which of the following objective of Financial Analysis indicates the efficiency with
which resources are utilised in generating revenue?
(a) To determine Liquidity.
(b) To determine Long-term Solvency.
(c) To determine Operating Efficiency.
(d) To determine Profitability.
OR
Which of the following is not correct?
(a) Operating Profit = Revenue from Operations – Operating Cost.
(b) Operating Profit = Net Profit + Non-operating Expenses – Non-operating Income.
(c) Operating Profit = Gross Profit – Other Operating Expenses + Other Operating Income.
(d) Operating Profit = Revenue from Operations – Cost of Revenue from Operations
28. . Assertion (A): Purchase of Fixed Assets is shown as Investing Activity in case of all
enterprises.

Reason (R): Payment of Dividend on shares is shown as Financing Activity in case of all
enterprises.

In the context of the above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is wrong.
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are incorrect.
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation
of Assertion (A).
Or
Bank overdraft and Cash Credit are shown under which head in the company’s Balance
Sheet?
(a) Current Assets.
(b) Non-current Liabilities.
(c) Cash Equivalents.
(d) Short-term Borrowings. [1]

30. Read the following Statements I and II. Choose the correct option from the options given
below:
Statement I: As per AS 3, Investing Activities are activities that result in change in the size
and composition of the owner’s capital (including preference share capital in case of a
Company) and borrowings of the enterprise.
Statement II: Purchase of shares is an operating activity for a stock broking firm while it is
investing activity in case of other enterprises.
(a) Both statements are correct.
(b) Both statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct. [1]
31. Under which major heads and sub-heads will be the following items placed in the
Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013? [3]
| I. Cheque and Bank Draft in Hand | II. Loan repayable on Demand |
| III. Provision for Retirement Benefits | IV. Securities Premium |
| V. Capital Advances | VI. Shares in Listed Companies |
32. From the information extracted from the Statement of Profit & Loss for the years ended
31st March, 2023 and 31st March, 2024, prepare a Comparative Statement of Profit & Loss:
Particulars 2023-24 2022-23
300% of Cost of Materials 200% of Cost of Materials
Revenue from Operations
Consumed Consumed
Cost of Materials
₹ 2,40,000 ₹ 2,00,000
Consumed
20% of Cost of Materials 10% of Cost of Materials
Other Expenses
Consumed Consumed
Tax Rate 50% 50%
[3 Marks]

33.
Quick Ratio 1.5, Current Ratio 2, Inventory Turnover Ratio 6 Times. Total Current Assets ₹
8, 00,000. Goods are sold at 20% profit on sales. Find out Annual Revenue from Operations.
Or
From the following information, calculate the Return on Investment (ROI):

• Net Profit after Tax: 12%

• Tax rate: 50%

• Revenue from Operations: ₹ 20,00,000

• 15% Long-term Borrowings: ₹ 8,00,000

• Equity Share Capital: ₹ 1,50,000

• Reserves and Surplus: ₹ 1,50,000

• Securities Premium: ₹ 5,00,000

• 12% Preference Share Capital: ₹ 1,00,000

[4 Marks]
34.
From the following particulars of Phantom Ltd., you are required to calculate:
1. Cash from Operating Activities
2. Cash from Investing Activities
31st March, 2024
Particulars 31st March, 2023 (₹)
(₹)
Plant and Machinery (at cost) 4,00,000 4,20,000
Accumulated Depreciation 1,30,000 1,10,000
Goodwill 70,000 90,000
Inventory 20,000 10,000
Trade Payables 15,000 25,000
Provision for Tax 30,000 20,000
Balance of Statement of Profit &
1,00,000 (90,000)
Loss
Additional Information:
1. During the year 2023–24, a machine with a book value
of ₹ 50,000 (accumulated depreciation ₹ 20,000) was
sold at a loss of ₹ 6,000.
2. The company proposed dividends of ₹ 30,000 and ₹
45,000 on equity shares for the year ended 31st March,
2023 and 2024.
[6 Marks]