From the following information, prepare a Common Size Statement of Profit and Loss of A Ltd. and B Ltd. for the year ended 31st March, 2023:
Official Solution
Correct Option: (1)
Common Size Statement of Profit and Loss: Explanation: Common size percentages are calculated by expressing each item as a percentage of Revenue from Operations: 1. Other Income: For A Ltd: For B Ltd: 2. Expenses: For A Ltd: For B Ltd: 3. Profit Before Tax:
02
PYQ 2024
medium
accountancyID: cbse-cla
From the following Statement of Profit and Loss of Shikha Ltd., prepare Comparative Statement of Profit and Loss for the year ended 31st March, 2023:
Official Solution
Correct Option: (1)
Comparative Statement of Profit and Loss:Explanation: For each item: 1. Revenue from Operations: 2. Employee Benefit Expenses: 3. Other Expenses:
03
PYQ 2024
medium
accountancyID: cbse-cla
Under which major heads and sub-heads will the following items be placed in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(i) Stores and Spares
(ii) Calls-in-Advance
(iii) Income received in advance
Official Solution
Correct Option: (1)
(i) Stores and Spares: Major Head: Current Assets Sub-Head: Inventories (ii) Calls-in-Advance: Major Head: Equity and Liabilities Sub-Head: Other Current Liabilities (iii) Income Received in Advance: Major Head: Equity and Liabilities Sub-Head: Other Current Liabilities
04
PYQ 2024
medium
accountancyID: cbse-cla
Shyam Sunder Ltd. is a financing company. Under which of the following activity will the amount of โInterest paid on loanโ be shown:
1
Investing activity
2
Financing activity
3
Both Financing \& Operating activity
4
Operating activity
Official Solution
Correct Option: (4)
As per the AS-3 (Revised) guidelines, interest paid by a financing company is considered an operating activity because it directly relates to the core operations of the business.
05
PYQ 2024
medium
accountancyID: cbse-cla
Total Assets โ Rs.3,00,000
Non-current Assets โ Rs.2,60,000
Non-current Liabilities โ Rs.80,000
Shareholders' Funds โ Rs.2,00,000
Current ratio calculated on the basis of the above information will be:
1
0.5 : 1
2
2 : 1
3
1.5 : 1
4
1 : 1
Official Solution
Correct Option: (2)
Step 1: Calculate Current Assets: Step 2: Calculate Current Liabilities:
The firmโs total liabilities are derived as:
Out of this, the non-current liabilities are Rs.80,000. Hence:
Step 3: Calculate Current Ratio:
The current ratio is calculated as:
Substitute the values:
Conclusion:
The current ratio calculated based on the given information is .
06
PYQ 2024
medium
accountancyID: cbse-cla
Which of the following is not a tool of Analysis of Financial Statements?
1
Ratio Analysis
2
Comparative Statement
3
Statement of Profit \& Loss
4
Cash Flow Statement
Official Solution
Correct Option: (3)
The Statement of Profit \& Loss is a financial statement that reports a companyโs financial performance, not a tool for analyzing financial statements. Tools such as Ratio Analysis, Comparative Statements, and Cash Flow Statements are specifically used for analysis.
07
PYQ 2024
medium
accountancyID: cbse-cla
Pass the necessary journal entries for the following transactions on disSolution of the firm of Avyan and Shruti after various assets (other than cash) and third-party liabilities have been transferred to Realisation Account:
(i) Sundry creditors amounting to Rs.40,000 were settled at a discount of 10\%.
(ii) An unrecorded computer of Rs.50,000 was taken over by Shruti. (iii) Creditors of Rs.5,000 agreed to take over debtors of Rs.8,000 in full settlement of their claim.
(iv) The firm had a debit balance of Rs.42,000 in the Profit and Loss Account on the date of disSolution. (v) There was an old furniture with the firm which had been written off completely from the books. This was sold for Rs.9,000. (vi) Realisation expenses amounting to Rs.11,000 were paid by Shruti.
Official Solution
Correct Option: (1)
Journal Entries:
08
PYQ 2024
medium
accountancyID: cbse-cla
Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of Rs.10 each at a premium of 10% and a bank draft of Rs.50,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.
Official Solution
Correct Option: (1)
The journal entry for purchase consideration:
09
PYQ 2024
medium
accountancyID: cbse-cla
Mahesh, Ramesh, and Naresh were partners in a firm sharing profits in the ratio of 5 : 3 : 2. From 1st April, 2023, they decided to share profits equally. On that date, there was a balance of Rs.3,60,000 in General Reserve and a debit balance of Rs.1,80,000 in the Profit and Loss Account. Pass a single adjustment Journal entry for the above on account of the change in the profit-sharing ratio.
Official Solution
Correct Option: (1)
The profit-sharing ratio is changed from 5:3:2 to equal sharing (1:1:1). General Reserve and Profit and Loss Account balances are adjusted in the partnersโ capital accounts: The adjustment entry:
10
PYQ 2024
easy
accountancyID: cbse-cla
Anand, Ridhi, and Shyam were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their fixed capitals were Rs.1,00,000, Rs.60,000, and Rs.40,000 respectively. For the year ended 31st March, 2023, interest on capital was credited to their capital accounts @ 9% p.a. instead of 7% p.a. Pass the necessary adjusting Journal entry.
Official Solution
Correct Option: (1)
Excess interest on capital credited:Adjust the excess by passing a journal entry to transfer the amounts:
11
PYQ 2024
medium
accountancyID: cbse-cla
Depreciation is generated from which of the following Accounting information system?
1
Tax accounting sub-system
2
Expense accounting sub-system
3
Final accounts sub-system
4
Fixed assets accounting sub-system
Official Solution
Correct Option: (4)
Depreciation is related to the reduction in value of fixed assets over time, and it is calculated and tracked in the fixed assets accounting sub-system.
12
PYQ 2025
medium
accountancyID: cbse-cla
In โCommon size income statementโ each item is expressed as a percentage of ____.
1
Total Income
2
Total Expenses
3
Profit After Tax
4
Revenue from Operations
Official Solution
Correct Option: (4)
In a Common Size Income Statement, every item is represented as a percentage of Revenue from Operations (Net Sales). This helps in analyzing the trend or comparison among companies by eliminating size differences.
13
PYQ 2025
medium
accountancyID: cbse-cla
Which of the following is a part of Asset group โCurrent Assetsโ in account group of Assets?
1
Duties and Taxes
2
Miscellaneous Expenditures
3
Reserves & Surplus
4
Direct Expenses
Official Solution
Correct Option: (1)
In computerised accounting systems like Tally, โDuties and Taxesโ is classified under Current Liabilities, not Assets. So the correct current asset from typical groups would include Stock-in-hand, Sundry Debtors, Cash-in-hand, etc. But among the given options, none perfectly match a typical current asset classification. However, if we refer to Tally groupings, Duties and Taxes is most commonly associated with receivables/payables within current classifications. In certain localized settings (like TDS receivable), it may appear under Current Assets temporarily.
14
PYQ 2025
hard
accountancyID: cbse-cla
On March, 2024, following is the Balance Sheet of Bhavik Limited :
Bhavik Ltd.
Balance Sheet as at March 2024
I. Equity and Liabilities :
Particulars
Note No.
(โน)
(โน)
1. Shareholders funds
(a) Share Capital
12,00,000
10,00,000
(b) Reserves and Surplus
1
4,00,000
3,00,000
2. Non-current liabilities
Long-term borrowings
2
6,00,000
10,00,000
3. Current Liabilities
5,00,000
1,00,000
(a) Trade Payables
3
3,00,000
4,00,000
(b) Short-term provisions
Total
30,00,000
28,00,000
II. Assets :
1. Non-current Assets
(a) Property, Plant and Equipment and Intangible Assets
Property plant and equipment
4
19,00,000
15,00,000
(b) Non-current Investments
3,00,000
4,00,000
2. Current Assets
(a) Inventories
4,50,000
3,50,000
(b) Trade Receivables
2,50,000
4,50,000
(c) Cash and Cash Equivalents
1,00,000
1,00,000
Total
30,00,000
28,00,000
Notes to Accounts :
Note
Particulars
(โน)
(โน)
No.
1.
Reserves and Surplus i.e. Balance in Statement of Profit and Loss
4,00,000
3,00,000
2.
Long-term borrowings
10% Debentures
6,00,000
10,00,000
3.
Short-term provisions
Provision for tax
3,00,000
4,00,000
4.
Property plant and equipment
Plant and Machinery
21,50,000
16,00,000
Less : Accumulated Depreciation
2,50,000
1,00,000
19,00,000
15,00,000
Additional Information :
During the year, a piece of machinery costing โน 8,00,000 with accumulated depreciation of โน 50,000 was sold for โน 6,50,000.
Debentures were redeemed on March, 2024.
Calculate :
Cash flows from Investing Activities
Cash flows from Financing Activities
Official Solution
Correct Option: (1)
Let's calculate the cash flows from investing and financing activities.
Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at March, 2024 along with Notes to accounts:
Vikalp Ltd.
Balance Sheet as at March, 2024
Particulars
Note No.
(โน)
(โน)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share capital
1
59,60,000
50,00,000
โNotes to accountsโ as at March, 2023:
Note
Particulars
(โน)
No.
1.
Share Capital :
Authorised capital
9,00,000 equity shares of โน 10 each
90,00,000
Issued capital :
5,00,000 equity shares of โน 10 each
50,00,000
Subscribed capital :
Subscribed and fully paid up
5,00,000 equity shares of โน 10 each
50,00,000
Subscribed but not fully paid up
Nil
50,00,000
โNotes to accountsโ as at March, 2024:
Note
Particulars
(โน)
No.
1.
Share Capital :
Authorised capital
9,00,000 equity shares of โน 10 each
90,00,000
Issued capital :
6,00,000 equity shares of โน 10 each
60,00,000
Subscribed capital :
Subscribed and fully paid up
5,80,000 equity shares of โน 10 each
58,00,000
Subscribed but not fully paid up
20,000 equity shares of โน 10 each,
fully called up
2,00,000
Less : calls in arrears
20,000 equity shares @ โน 2 per share
40,000
59,60,000
The total face value of equity shares issued during the year 2023-2024 was :
The number of shares on which the called up amount was not received were :
On April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, โShare Capital Accountโ will be debited by :
On forfeiture, โShare Forfeiture Accountโ will be credited with :
If all the forfeited shares are reissued at โน 8 per share fully paid up, the amount credited to โCapital Reserve A/cโ will be :
If the forfeited shares are reissued at the minimum permissible price, the amount credited to โCapital Reserve Accountโ will be :
Official Solution
Correct Option: (1)
Analysis of Vikalp Limited's Share Capital
Given Information:
Authorized Capital: 9,00,000 shares of โน10 each
Issued Capital (31-03-2023): 5,00,000 shares of โน10 each (โน50,00,000)
Issued Capital (31-03-2024): 6,00,000 shares of โน10 each (โน60,00,000)
Subscribed Capital (31-03-2024):
5,80,000 shares fully paid up: โน58,00,000
20,000 shares fully called up, but with calls in arrears:
Called up amount: โน2,00,000
Calls in Arrears: โน40,000 (20,000 shares @ โน2 per share)
Share Capital (31-03-2024): โน59,60,000 (58,00,000 + 1,60,000)
(i) The total face value of equity shares issued during the year 2023-2024 was:
Issued Capital (31-03-2024) - Issued Capital (31-03-2023) = New issued capital for the year 60,00,000 - 50,00,000 = โน10,00,000
Answer: (A) โน10,00,000
(ii) The number of shares on which the called up amount was not received were:
This is given directly as the number of shares in arrears: 20,000 shares.
Answer: (D) 20,000
(iii) On 1st April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, 'Share Capital Account' will be debited by:
Since the shares are fully called up, the entire face value of the forfeited shares (20,000 shares @ โน10) will be debited. 20,000 * โน10 = โน2,00,000
Answer: (C) โน2,00,000
(iv) On forfeiture, 'Share Forfeiture Account' will be credited with:
The Share Forfeiture Account is credited with the amount received on the forfeited shares. Since โน2 per share was not received, the amount received per share is โน10 - โน2 = โน8. 20,000 shares * โน8/share = โน1,60,000
Answer: (A) โน1,60,000
(v) If all the forfeited shares are reissued at โน8 per share fully paid up, the amount credited to 'Capital Reserve A/c' will be:
The entire balance of shares forfeited account will be transferred to capital reserve account. โน1,60,000
Answer: (B) โน1,60,000
(vi) If the forfeited shares are reissued at the minimum permissible price, the amount credited to 'Capital Reserve Account' will be:
The maximum permissible discount on reissue = โน2 per share (the amount not received initially). Therefore the company will be reissued at โน8. As a result same answer applies. โน1,60,000
Answer: (B) โน1,60,000
17
PYQ 2025
medium
accountancyID: cbse-cla
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a company as per Schedule-III, Part-I of the Companies Act, 2013:
Work in progress
Securities premium
Creditors
Official Solution
Correct Option: (1)
To solve the problem, we need to classify the given items under major heads and sub-heads (if any) in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013.
1. Classification of the Given Items:
Item
Major Head
Sub-Head (if any)
(i) Work in Progress
Assets
Non-Current Assets โ Fixed Assets โ Capital Work-in-Progress
(ii) Securities Premium
Equity and Liabilities
Shareholders' Funds โ Reserves and Surplus
(iii) Creditors
Equity and Liabilities
Current Liabilities โ Trade Payables
Final Answer: The above table classifies each item as per Schedule III of the Companies Act, 2013 under its appropriate major and sub-heads in the companyโs Balance Sheet.
18
PYQ 2025
medium
accountancyID: cbse-cla
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013:
(i) Outstanding Salaries
(ii) Trademarks
(iii) Loose tools
Official Solution
Correct Option: (1)
Outstanding Salaries are liabilities payable within one year, thus classified as "Other Current Liabilities" under "Current Liabilities". Trademarks are intangible in nature and provide long-term benefit to the company, thus shown as "Intangible Assets" under "Non-Current Assets". Loose Tools, though tangible, are generally used in maintenance and classified under inventories as part of "Stores and Spares". This classification aligns with Schedule III of the Companies Act which prescribes standard formats for uniformity and comparability.
19
PYQ 2025
medium
accountancyID: cbse-cla
Show the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013: (a) Prepaid Insurance (b) Capital Work-in-Progress (c) Unpaid Dividend
Official Solution
Correct Option: (1)
(a) Prepaid Insurance: - It is an item of Current Assets. - Sub-head: Other Current Assets under Current Assets. - Explanation: Prepaid insurance is an advance payment for future coverage, not yet expensed, and hence treated as an asset realizable within 12 months.
(b) Capital Work-in-Progress: - It is an item of Non-Current Assets. - Sub-head: Fixed AssetsCapital Work-in-Progress. - Explanation: This represents the cost incurred on assets currently under construction and not yet ready for intended use.
(c) Unpaid Dividend: - It is an item of Current Liabilities. - Sub-head: Other Current Liabilities under Current Liabilities. - Explanation: Unpaid dividend is a liability towards shareholders and is expected to be settled within the operating cycle.
20
PYQ 2025
medium
accountancyID: cbse-cla
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013 :
Bills payable
Loose Tools
Copyrights
Official Solution
Correct Option: (1)
Let's classify the items according to Schedule III, Part-I of the Companies Act, 2013:
(i) Bills Payable: Major Head: Current Liabilities Sub-Head: Trade Payables
(ii) Loose Tools: Major Head: Non-Current Assets Sub-Head: Property, Plant and Equipment (PPE)
(iii) Copyrights: Major Head: Non-Current Assets Sub-Head: Intangible Assets
Explanation:
Bills Payable: Represents short-term obligations to suppliers or vendors for goods or services received. Since they are typically due within a year (or the operating cycle), they are classified as Current Liabilities. Trade Payables is the specific sub-head for these obligations.
Loose Tools: While used in operations, loose tools are considered part of the company's fixed assets as they are used over multiple accounting periods and aren't meant for immediate sale.
Copyrights: A copyright grants the holder exclusive rights to reproduce, distribute, and display creative works. Because they lack physical substance and provide long-term benefits, they are classified as Intangible Assets under Non-Current Assets.
21
PYQ 2025
medium
accountancyID: cbse-cla
_____ is not a tool of 'Analysis of Financial Statements'.
Official Solution
Correct Option: (1)
An Income Statement is itself a financial statement, not a tool used to analyze financial statements. The other options are all analysis techniques:
Ratio Analysis: Calculates financial ratios to assess performance
Comparative Statements: Compares financial data across periods
Cash Flow Statement: While a financial statement itself, it's also used as an analytical tool
The Income Statement presents revenues and expenses, but requires other tools to properly analyze its data.
22
PYQ 2025
medium
accountancyID: cbse-cla
From the following Balance Sheet of GGM Ltd., prepare a Comparative Balance Sheet.
Official Solution
Correct Option: (1)
Comparative Balance Sheet of GGM Ltd. as at 31st March, 2024 and 2023
Particulars
31.03.2024 (โน)
31.03.2023 (โน)
Change (โน)
% Change
I โ Equity and Liabilities
Share Capital
4,50,000
3,00,000
1,50,000
Long-term Borrowings
1,50,000
1,00,000
50,000
Trade Payables
30,000
20,000
10,000
Total Equity and Liabilities
6,30,000
4,20,000
2,10,000
II โ Assets
Property, Plant and Equipment & Intangible Assets
4,50,000
3,00,000
1,50,000
Inventories
1,50,000
1,00,000
50,000
Cash and Cash Equivalents
30,000
20,000
10,000
Total Assets
6,30,000
4,20,000
2,10,000
23
PYQ 2025
medium
accountancyID: cbse-cla
Under which major headings and sub-headings (if any) will the following items be shown in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013? (a) Calls-in-Advance (b) Loose tools (c) Trade marks
Official Solution
Correct Option: (1)
(a) Calls-in-Advance: Major Heading: Equity and Liabilities Sub-heading: Other Current Liabilities Explanation: Calls-in-advance is a liability as the company has received an amount not yet due. Hence, it is shown under current liabilities.
(b) Loose tools: Major Heading: Assets Sub-heading: Current Assets โ Inventories Explanation: Loose tools are consumed in the normal course of business and hence treated as inventory.
(c) Trade Marks: Major Heading: Assets Sub-heading: Non-Current Assets โ Intangible Assets Explanation: Trademarks are identifiable non-monetary assets without physical substance used in the business.
24
PYQ 2025
medium
accountancyID: cbse-cla
Which of the following is not contained in Account group โ Current Liabilities in the Balance Sheet?
1
Bank Overdraft
2
Duties and Taxes
3
Provisions
4
Sundry Creditors
Official Solution
Correct Option: (3)
In accounting, under Schedule III of the Companies Act, the Balance Sheet classifies:
- Current Liabilities to include items like: - Bank Overdraft - Sundry Creditors - Duties and Taxes - Other Payables However, Provisions โ such as Provision for Tax, Provision for Dividend, etc. โ are not grouped under โCurrent Liabilitiesโ directly. They form a separate major heading under โProvisionsโ โ either Current or Non-Current depending on when they are due. Thus, Provisions are not listed under the group โCurrent Liabilitiesโ in the strict sense.
25
PYQ 2025
medium
accountancyID: cbse-cla
From the following Balance Sheet of Vinayak Ltd., prepare a Comparative Balance Sheet.
Official Solution
Correct Option: (1)
Comparative Balance Sheet of Vinayak Ltd. as at 31st March, 2024 and 2023
