SCHEME OF VALUATION

Sub: Accountancy [30] June-2019

Marks
Q.No.
Allotted
SECTION-A
01 Building donation [or anyother ] 01
02 (b) Two persons 01
03 Average profits method [or any other] 01
04 False 01
05 (b) Owners 01
06 Debenture Redemption Reserve 01
07 Equity/Shareholders Funds 01
08 To assess current profitability and operational efficiency of firm 01
[or any other one]
09 Liquid/Acid Test Ratio 01
10 Cash flows implies the movement of cash in cash out due to some 01
non-cash items
SECTION-B
11 Organisation which isestablished not for earning profit, but to 02
provide services to the public is known as not for profit
organisation
12 a)Agreement: It is an agreement to share profit or loss of the
business
02
b)Liability: The liability of partners in partnership is unlimited
[or any other two, each 1 mark]
13 Goodwill = Ave. profits x No. of years to purchase 02
Average profits = Total profits =80000
No of years 4 years
= 20000
Goodwill = 20000 x 2 = 40000
14 Such partners capital A/c …… dr 02
To Realisation A/c
[Being assets taken over] [1+1]
15 a)It is an artificial legal person 02
b) The liability of members is limited
[or any other two] [1+1]
16 a) Do not reflect current situation 02
b) No Qualitative information
[or any other two] [1+1]
17 a) Ratio Analysis 02
b) Comparative Statements
[or any other two] [1+1]
18 Activities relating to purchase and sale of long term or fixed assets and 02
transactions relating to long term investments are known as investing
activities
SECTION-C
19 Profit and loss Appropriation A/c
Particulars Amount Particulars Amount
To interest on By profit & loss A/c 80,400
capital (net profit Tr.)
Anil 20000 By interest on
(200000x10/100) drawings
Sunil 16000 Anil 2000
(160000x10/100) Sunil 1600 3600
To Salary to Anil 6000
To Commission to 4000
Sunil
To partners Capital
A/c’s 38000
Anil
(38000x ½)19000
Sunil
(38000x ½)19000
Total 84000 Total 84000
20 Calculation of Gain Ratio
Gain Ratio = NS – OS

Gain Ratio of Arun = - = =

06
Gain Ratio of Kiran = - = =

.: Gain Ratio = 5:2 [1+2+2+1]

21 Dr. Mahesh’s Executors A/c Cr
Particulars Amount Particulars Amount
To Balance c/d 153000 BY Mahesh’s Capital 100000
A/c (t/s)
By interest on capital 5000
By salary 24000
By Goodwill 20000 06
By P&L Suspense A/c 4000
Total 153000 Total 153000
Note: Goodwill of deceased partner may be directly adjusted through
Capital Accounts of partners. Then the following Journal entries
passed for adjustment of goodwill
Mohan Capital A/c ----------Dr. 13333
Naresh Capital A/c ----------Dr. 6667
To Mahesh Captial A/c --- 20000
[Each entry 1 mark]
22 Journal entries in the books of sunlight Ltd
Date Particulars LF Debit Credit
01 Bank A/c Dr (20000x10) - 200000 -
To 10% Debenture Application 200000
A/c
02 10% Debenture Application A/c 200000
Dr
To 10% Debenture A/c 200000
03 10% Debenture Allotment A/c Dr. 800000 06
(20000 x 40)
To 10% Debenture A/c 800000
04 Bank A/c Dr (20000x40) 800000
To 10% Debenture Allotment A/c 800000
05 10% Debenture I & Final Call A/c 1000000
Dr. (20000x50)
To 10% Debenture A/c 1000000
06 Bank A/c --- Dr. (20000x50) 1000000
To 10% Debenture I & Final Call
A/c 1000000
[Each entry 1 mark with narration]
23 Statement of profit and loss for the year ending 31.03.2017 [As per schedule
IIIrd of the companies Act, 2013]
Particulars NoteNo Rs.
Revenue from Operations 500000
Add: Other incomes -----
Total Revenues[A] 500000
Less: Expenses
Purchases 300000
Salary 10000
Interest on loan 5000 06
Depreciation 8000
Total Expenses (B) 323000
Profit before tax [A- b] 177000
Less: Income Tax 54000
Profit after tax 123000
(each 1 mark)
24 Calculation of Ratios
a) Current Ratio = Current Assets
Current liability
Current Assets = Trade Receivables 50000
Inventory 30000
Prepaid expenses 5000
Cash 25000
110000
Current liabilities = Creditors 60000
Bank Overdraft 5000
Bills Payable 25000
90000
Current Ratio = 110000 = 11 or 11:9
9000 9
b) Quick Ratio = Quick Assets
Current Liabilities 06
Quick Assets = Current Assets – (Inventory + Prepaid expenses)
= 110000 – (30000 + 5000)
= 110000 – 35000
= 75000
Quick Ratio = 75000 = 5 = 5 : 6
90000 6
[3 + 3]
25 Books of Moon Ltd
Cash Flow Statement [Indirect method)
Particulars Amount Amount
Net Profit before tax and extradinary items 100000
Add: Non – Cash expenses: Depreciation 20000
Cash flow before working capital changes 120000
Add: 1. Decrease in Trade Receivables 20000
2. Increase in Trade Payables 10000
 3. Increase in outstanding expenses 10000 31000
Less: Increase in prepaid expenses 151000
Cash flow operating expenses before 4000
Tax and extraordinary items 147000 06
Less: Income tax ----
Net cash flow from operating activities 147000
[each item 1 mark]
SECTION-D
26 Income and expenditure A/c of Karawali Sports club Karwar for the year
ending 31/03/2018
Amou
Expenditures Amount Income
nt
To Salary 22000 By subscriptions 70000
Less:O/S for 16-17 5000 Add O/s for 17-18 5000
17000 75000
Add: O/s for 17-18 4000 21000 Less O/S 16-17 2000
73000
To postage 1500 Less; Adv.for18-19- 2000 71000
To lighting charges 2000 By Entrance fees 5000
To Depreciation on sports 8000 By sale of Old sports materials 2000
materials
To surplus 61300 By sale of old news papers 800
By rent 15000
Total 93800 Total 93800
Balance sheet as 31/03/2018
Amoun
Liabilities Amount Assets
t
O. Capital Fund 64000 Cash at Bank 27300
Add: Surplus 61300 Sports materials 30000
E-Fees 5000 130300 Add: Purchase 10000
Subscription received in 2000 40000
advance (18-19) Less Dep. 8000 32000
O/S Salary 17-18 4000 Investment 30000
Fixed Deposit 20000
Furniture’s 22000
O/S subscription (17-18) 5000
Total 136300 Total 136300
27 Revaluation A/C
Amou
Particulars Amount Particulars
nt
To Furniture 5000 By Building 16000
To Debtors 3000
 To Old partners Capital A/c
Anand 4800
Vinod 3200 8000
Total 16000 Total 16000
Partners Capital Accounts
Pram
Particulars Anand Vinod Pramod Particulars Anand Vinod
od
To Bank A/c 12000 8000 - By Balance b/d 100000 80000 -
Goodwill withdrawn
To Balance c/d 107800 85200 50000 By Revaluation 4800 3200 --

By Reserve t/s 3000 2000

By Goodwill 12000 8000

By Bank A/c - - 50000

Total 119800 93200 50000 Total 119800 93200 50000

Balance Sheet as on 01/04/2017

Liabilities Amount Assets Amount
Capitals Cash at Bank 60000
Anand 107800 Debtors 30000
Vinod 85200 Less: PBD 6000 24000
Pramod 50000 243000 Stock 43000
Creditors 15000 Building 80000
Bills Payable 10000 Add: Appn 16000 96000
Furniture 50000
Less Dep 5000 45000
Total 268000 268000
Realisation A/c
28 Particulars Amount Particulars Amount
To Debtors 50000 By creditors 40000
To Stock 60000 By Bills payable 10000
To Furniture 28000 By Bank A/c
To Machinery 45000 (Sale amount of asset)
To Building 50000 Debtors 45000
To Bank A/c Stock 69000
(Liabilities Paid) Building 60000 174000
Creditors 40000 By Vinay Capital A/c 25000
B/P 10000 50000
To Bank A/c 3000 By Vaibhav Capital A/c 40000
(R expenses paid ) (Machinery taken)
To Partners Capitals A/c
 Vinay 1500
Vaibhav 1000
Naveen 500 3000
Total 289000 Total 289000
Partners Capital Accounts
Pram
Particulars Vinay Vaibhav Naveen Particulars Anand Vinod
od
To Realisation 25000 40000 - By balance b/d 80000 6000 4000
0 0
TO Bank A/c 59500 23000 41500 By Realisation 1500 1000 500
By G/R 3000 2000 1000

Total 84500 63000 41500 Total 84500 6300 4150

0 0

Bank A/c
Dr. Cr
Particulars Amount Particulars Amou
nt
To Balance B/d 15000 By Realisation 50000
To Realisation 174000 By Realisation 3000
By Naveen’s Loan 12000
By Partners Capital A/c
Vinay 59500
Vaibhav 23000
Naveen 41500
Total 189000 Total 189000 12
[6+3+3]

29 Journal Entries in the books of Murdeshwar Tiles Ltd

Credit
Debit
Date Particulars l.F Amoun
Amount
t
01 Bank A/c …………………………………………….Dr 100000 ----
To E.Share application A/c (50000 x 2) 100000
(Being application money received)
02 E. Share Application A/c ……………………………Dr 100000 ----
To E.Share Capital A/c 100000
(Being application money transferred)
03 E. Share Allotment A/c (50000x6)……………. Dr 300000
To E. Share Capital (50000x4) 200000
To Security Premium (50000x2) 100000
(Being allotment money due)
 04 Bank A/c …………………Dr. (50000x6) 300000
To E.Share allotment A/c 300000
(Being allotment money, including premium received)
05 E. Shares I & Final Call A/c (50000x4)………… Dr. 200000
To E Share Capital A/c 200000
(Being I & Final Call money due)
06 Bank A/c ……………….Dr (45000x4) 180000
To E. Share I & Final Call 180000
(Being I & Final Call money received)
07 E. Share Capital A/c….Dr (5000x10) 50000
To E. Share I & Final Call (5000x4) 20000
To Forfeited shares (5000x6) 30000
(Being for feature of 5000 shares for nonpayment of I &
Final call money)
08 Banks A/c………..Dr. (5000x7) 35000
Forfeited Shares A/c ….Dr. (5000x3) 15000
To E. Share Capital (5000x10) 50000
(being forfeited shares re-issued)
09 Forfeited Sahres Ac/ …………Dr. 15000
To Capital Reserve 15000
(Being profit on reissue of forfeited shares transferred) 12
[1+1+2+1+1+1+2+2+1]
30 Journal entries in the books Sahyadri Ltd
Credit
L. Debit
Date Particulars Amoun
F Amount
t
1.4.17 Bank A/c …..Dr. (5000x90) 450000
To 12% Debenture Application & Allotment A/c 450000
(Being application money received)
1.4.17 12% Debenture Application and Allotment A/c…..Dr 450000
Loss on Issue of Debenture A/c………Dr 100000
To 12% Debenture A/c (5000x100) 500000
To Premium on Redemption of debenture (5000x10) 50000
(Being settlement of debenture at a discount and
Redeemable at a premium)
30.9.17 Debenture interest A/c……Dr. (500000x12/100x6/12) 30000
To Debenture holders A/c (30000-3000) 27000
To Income Tax payable (30000x10/100) 3000
(being interest due for six months and tax deducted at
source)
30.9.17 Debenture holders A/c…………………….…Dr. 27000
To Bank A/c 27000
 (Being debenture interest paid)
31.3.18 Debenture interest A/c ..Dr.(500000x12/100x6/12) 30000
To Debenture holders A/c (30000-3000) 27000
To Income Tax payable (30000x10/100) 3000
(being interest due for six months and tax deducted at
source)
31.3.18 Debenture holders A/c…………………….…Dr. 27000
To Bank A/c 27000
(Being debenture interest paid)
31.3.18 Income Tax payable A/c ..Dr (3000+3000) 6000
To Bank A/c 6000
(Being tax deducted at source paid to the government)
31.3.18 Statement of profit and loss A/c….Dr. (30000+30000) 60000
To Debenture interest A/c 60000
(Being debenture interest transferred)
[1+3+2+1+2+1+1+1] 12
31 Comparative Balance Sheet of Samudra Ltd as on 31.3.2017 and 31.3.2018
% of
Increase/
Particulars 31.3.17 31.3.18 increase/
Decrease
decrease
I. Equity and Liabilities
1. Shareholders fund
a)Share Capital 800000 1000000 200000 25%

b)General Reserve 100000 120000 20000 20%

2. Non Current Liabilities

30000 20000 -33.33% 12
Secured Loan -10000

3. Current Liabilities 100000 160000 60000 60%

Total Equities and Liabilities 1030000 1300000 270000 26.21%

II. Assets
1.Non Current Assets
a)Fixed Assets
Tangible Assets Building 400000 500000 100000 25%

b) Non Current Investment 300000 400000 100000 33.33%

2. Current Assets
a) Stock 200000 180000 -20000 -10%

b) Trade Receivables 130000 220000 90000 69.23%

Total Assets 1030000 1300000 270000 26.21%

[6+6]
32 Calculation of Ratios
a) Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory
Cost of Goods Sold = Sales - Gross Profit
= 400000 - 200000
= 200000
Average Inventory = OP.Stock + Cl. Stock = 40000 + 50000 = 45000
2 2
Inventory Turnover Ratio = 200000 = 4.44 or 4.44Times
45000 1
b) Trade Receivable Turnover Ratio = Net Sales
Average Trade Receivables
Average Trade Receivables = Opening Debtors and B/R + Closing Debtors and B/R
2
Note: Since opening debtors and B/R are not given, closing Debtors, and B/R is taken as
average Trade Receivables
Average Trade Receivables = 60000 + 50000 = 110000
Trade Receivable Turnover Ratio = 400000 = 3.33 or 3.33 Times
110000 1
c) Trade Payable Turnover Ratio = Net Credit Purchases
Average Trade Payables
Average Trade Payables = OP Creditors and B/P + Cl Creditors and B/P
2
Note: Since opening creditors and B/P are not given, closing Creditors, and B/P are taken as
average Trade Payables
Average Trade Receivables = 80000 + 60000 = 140000
Trade Payable Turnover Ratio = 210000 = 1.5 or 1.5 Times
140000 1
d) Gross Profit Ratio = Gross Profit x 100 = 200000 x 100 = 50%
Net Sales 400000
e) Net Profit Ratio = Net Profit x 100 = 80000 x 100 = 20%
Net Sales 400000
f) Operating Ratio = Operating Cost x 100
Net Sales
Operating cost = COGS + Operating Expenses
Operating Expenses = Administrative + Selling Expenses
= 50000 + 40000 = 90000
Operating Cost = 200000 + 90000 = 290000
Operating Ratio = 290000 x 100 = 72.5%
400000
[Each Ratio 2 Marks] 12
 SECTION-E
[Practical Oriented Questions]
33 a) Equally 5
b) No interest on capital
c) No interest on drawings
d) 6% PA
e) No remuneration to partners [each 1 mark]
34 Balance sheet of ………………company as on……………………

Particulars Note No. Amount

I. EQUITY AND LIABILITIES
1. Shareholders Fund / Equity
xxx
2. Non-Current Liabilities
xx
3. Current Liabilities
xxx
Total Equity & Liabilities Xxxx
II. ASSETS
1. Non-Current Liabilities xxx
2. Current Liabilities xxx
Total Assets
35 Cash Flow from Operating Activities
(Direct Method)
Cash receipts from customers xxxx
Less: Cash paid to suppliers and employees xx
Cash generated from operations xxx
Less: Income Tax Paid xx
Cash flow before extradinary items xxx
Add/Less: extradinary items xx
Net Cash flow from operating activities xxx

*********End**************