Board Question Paper: July 2025 - Book Keeping & Accountancy
Q.1. Objective Questions
(A) Select the most appropriate alternatives from the following and rewrite the sentences:
- In tally, Fixed Deposit Account comes under (a) Investments group.
- Before acceptance the bill is called a/an (c) draft.
- If asset is taken over by the partner, (b) capital account is debited.
- Donation for building fund is (c) capital receipt.
- The Indian Partnership Act is enforced since (a) 1932.
(B) Write a word / term / phrase which can substitute each of the following sentences:
- Issue of shares at its face value.
Ans: Issue at Par - Money value of business reputation earned by the firm over a number of years.
Ans: Goodwill - Capital employed × \(\frac{NRR}{100}\) = _________.
Ans: Normal Profit - The receipts which are recurring in nature.
Ans: Revenue Receipts - Under this method, capital balances of partners remain constant.
Ans: Fixed Capital Method
- Accounts - March 2025 - English Medium Download Answer Key
- Accounts - March 2025 - Marathi Medium Download Answer Key
- Accounts - March 2025 - Hindi Medium Download Answer Key
- Accounts - July 2025 - English Medium Download Answer Key
- Accounts - March 2024 English Medium Download Answer Key
- Accounts - March 2024 - Marathi Medium Download Answer Key
- Accounts - March 2024 - Hindi Medium Download Answer Key
- Accounts - July 2024 - English Medium Download Answer Key
- Accounts - July 2023 - English Medium Download Answer Key
- Accounts - March 2022 View
- Accounts - July 2022 Download Answer Key
- Accounts - March 2021 Download Answer Key
- Accounts - March 2020 View
- Accounts - March 2014 View
- Accounts - October 2014 View
- Accounts - March 2015 View
- Accounts - July 2015 View
- Accounts - March 2016 View
- Accounts - July 2016 View
- Accounts - July 2017 View
- Accounts - March 2017 View
- Accounts - March 2018 View
- Accounts - July 2018 View
- Accounts - March 2019 View
(C) Answer in one sentence only:
- To which account profit is to be transferred upto the date of death of a partner?
Ans: Usually transferred to Profit and Loss Suspense Account. - How many days of grace are allowed to honour a bill?
Ans: Three days of grace are allowed. - Who should bear the capital deficiency of insolvent partner?
Ans: Solvent partners (having credit balance) should bear the deficiency in their profit sharing ratio. - What is Entrance Fees?
Ans: Entrance fees are the fees paid by a person who intends to become a member of a Not for Profit concern. - What do you mean by pre-received income?
Ans: Income which is received during the current year but relates to the next accounting year is called pre-received income.
(D) Do you agree or disagree with the following statements:
- On dissolution, cash/bank account is closed automatically.
Ans: Agree - Financial statement includes only Balance Sheet.
Ans: Disagree - On retirement of a partner, sacrifice ratio is considered.
Ans: Disagree - Receipts and Payments Account is a Real Account.
Ans: Agree - Current Account always shows debit balance.
Ans: Disagree
Q.2. Admission of Partner (Nishant, Yogesh and Niharika)
Working Notes:
1. Calculation of Goodwill:
Average Profit = (30,000 + 22,500 + 37,500 + 15,000 + 22,500) / 5 = 1,27,500 / 5 = ₹ 25,500.
Goodwill = Average Profit × 4 = 25,500 × 4 = ₹ 1,02,000.
Niharika's Share (1/5) = 1,02,000 × 1/5 = ₹ 20,400.
2. Cash Balance:
Opening Cash: 37,500 + Capital (60,000) + Goodwill (20,400) = ₹ 1,17,900.
1. Calculation of Goodwill:
Average Profit = (30,000 + 22,500 + 37,500 + 15,000 + 22,500) / 5 = 1,27,500 / 5 = ₹ 25,500.
Goodwill = Average Profit × 4 = 25,500 × 4 = ₹ 1,02,000.
Niharika's Share (1/5) = 1,02,000 × 1/5 = ₹ 20,400.
2. Cash Balance:
Opening Cash: 37,500 + Capital (60,000) + Goodwill (20,400) = ₹ 1,17,900.
In the books of Partnership Firm
Profit and Loss Adjustment Account (Revaluation A/c)
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Furniture A/c (Depreciation) | 7,500 | By Bills Receivable A/c (Increase) | 15,000 |
| To Stock A/c (Depreciation) | 15,000 | By Partners' Capital A/c (Loss): | |
| To R.D.D. A/c (Increase 15k-7.5k) | 7,500 | Nishant (3/4) | 16,875 |
| To Bills Payable A/c (Omitted) | 7,500 | Yogesh (1/4) | 5,625 |
| Total | 37,500 | Total | 37,500 |
Partners' Capital Accounts
| Particulars | Nishant | Yogesh | Niharika | Particulars | Nishant | Yogesh | Niharika |
|---|---|---|---|---|---|---|---|
| To P&L Adj. (Loss) | 16,875 | 5,625 | - | By Balance b/d | 75,000 | 81,000 | - |
| To Balance c/d | 91,425 | 86,475 | 60,000 | By Reserve Fund | 18,000 | 6,000 | - |
| By Cash A/c (Goodwill) | 15,300 | 5,100 | - | ||||
| By Cash A/c (Capital) | - | - | 60,000 | ||||
| Total | 1,08,300 | 92,100 | 60,000 | Total | 1,08,300 | 92,100 | 60,000 |
Balance Sheet of New Firm as on 1st April, 2022
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Capital Accounts: | Cash in Hand | 1,17,900 | |||
| Nishant | 91,425 | Bills Receivable | 60,000 | ||
| Yogesh | 86,475 | Debtors | 75,000 | ||
| Niharika | 60,000 | 2,37,900 | Less: R.D.D. | 15,000 | 60,000 |
| Creditors | 45,000 | Stock (45k - 15k) | 30,000 | ||
| Bills Payable (Omitted) | 7,500 | Furniture (30k - 7.5k) | 22,500 | ||
| Total | 2,90,400 | Total | 2,90,400 |
OR
Q.2. Retirement of Partner (Journal Entries)
Journal Entries in the books of the Firm
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2020 Apr 1 |
Goodwill A/c ... Dr. | 50,000 | ||
| To Riddhi's Capital A/c | 30,000 | |||
| To Siddhi's Capital A/c | 10,000 | |||
| To Kirti's Capital A/c | 10,000 | |||
| (Being Goodwill raised in the books) | ||||
| Apr 1 | Profit and Loss Adjustment A/c ... Dr. | 18,000 | ||
| To Debtors A/c (65k-57k) | 8,000 | |||
| To Motor Truck A/c (110k-100k) | 10,000 | |||
| (Being decrease in value of assets recorded) | ||||
| Apr 1 | Live Stock A/c ... Dr. (65k-55k) | 10,000 | ||
| Building A/c ... Dr. (82k-80k) | 2,000 | |||
| Plant and Machinery A/c ... Dr. (41k-40k) | 1,000 | |||
| To Profit and Loss Adjustment A/c | 13,000 | |||
| (Being increase in value of assets recorded) | ||||
| Apr 1 | Riddhi's Capital A/c ... Dr. | 3,000 | ||
| Siddhi's Capital A/c ... Dr. | 1,000 | |||
| Kirti's Capital A/c ... Dr. | 1,000 | |||
| To Profit and Loss Adjustment A/c | 5,000 | |||
| (Being Revaluation Loss distributed) | ||||
| Apr 1 | Bank A/c ... Dr. | 85,000 | ||
| To Riddhi's Capital A/c | 55,000 | |||
| To Siddhi's Capital A/c | 30,000 | |||
| (Being additional capital contributed) | ||||
| Apr 1 | Kirti's Capital A/c ... Dr. | 75,000 | ||
| To Kirti's Loan A/c | 75,000 | |||
| (Being Kirti's balance transferred to her loan account) Calculation: 55,000 (Op) + 11,000 (Gen Res) + 10,000 (GW) - 1,000 (Loss) = 75,000 |
Q.3. Dissolution of Partnership Firm (All Partners Insolvent)
Analysis: Since all partners are insolvent, external liabilities (Creditors) are not transferred to Realisation Account. Available cash is distributed to creditors, and the unpaid balance is transferred to Deficiency Account.
Realisation Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Sundry Assets A/c: | By Bank A/c (Assets Realised): | ||
| Building | 1,56,000 | Building | 80,000 |
| Furniture | 90,000 | Furniture | 60,000 |
| Goodwill | 70,000 | Debtors | 20,000 |
| Debtors | 40,000 | By Partners' Capital A/c (Loss): | |
| To Bank A/c (Expenses) | 4,000 | Virat (2/5) | 80,000 |
| Rohit (2/5) | 80,000 | ||
| Hardik (1/5) | 40,000 | ||
| Total | 3,60,000 | Total | 3,60,000 |
Partners' Capital Accounts
| Particulars | Virat | Rohit | Hardik | Particulars | Virat | Rohit | Hardik |
|---|---|---|---|---|---|---|---|
| To Realisation A/c (Loss) | 80,000 | 80,000 | 40,000 | By Balance b/d | 52,000 | 44,000 | 36,000 |
| By Bank A/c (Recovered) | 4,000 | 4,000 | - | ||||
| By Deficiency A/c | 24,000 | 32,000 | 4,000 | ||||
| Total | 80,000 | 80,000 | 40,000 | Total | 80,000 | 80,000 | 40,000 |
Bank Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 16,000 | By Realisation A/c (Exp) | 4,000 |
| To Realisation A/c (Assets) | 1,60,000 | By Creditors A/c (Bal. fig) | 1,80,000 |
| To Virat's Capital A/c | 4,000 | ||
| To Rohit's Capital A/c | 4,000 | ||
| Total | 1,84,000 | Total | 1,84,000 |
Creditors Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Bank A/c (Paid) | 1,80,000 | By Balance b/d | 2,40,000 |
| To Deficiency A/c (Unpaid) | 60,000 | ||
| Total | 2,40,000 | Total | 2,40,000 |
Deficiency Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Virat's Capital A/c | 24,000 | By Creditors A/c | 60,000 |
| To Rohit's Capital A/c | 32,000 | ||
| To Hardik's Capital A/c | 4,000 | ||
| Total | 60,000 | Total | 60,000 |
OR
Q.3. Bills of Exchange
In the books of Disha
Priya's Account
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
|---|---|---|---|---|---|
| 2022 Apr 1 |
To Sales A/c | 50,000 | 2022 Apr 1 |
By Bills Receivable A/c | 50,000 |
| Jun 30 | To Bills Receivable A/c (Bill Cancelled) |
50,000 | Jun 30 | By Cash A/c | 20,000 |
| Jun 30 | To Interest A/c | 600 | Jun 30 | By Bills Receivable A/c (New Bill) |
30,600 |
| Total | 1,00,600 | Total | 1,00,600 |
Q.4. Death of Partner (Leena)
Working Notes:
1. Revaluation Profit:
Profit on Land & Building (30,100 - 16,000) = +14,100
Loss on Stock (17,000 - 16,700) = -300
Loss on Furniture (18,000 - 16,200) = -1,800
Net Profit = 14,100 - 2,100 = 12,000.
Leena's Share (1/4) = ₹ 3,000.
2. Goodwill:
Average Profit = (30k+25k+25k+40k)/4 = 120k/4 = 30,000.
Goodwill of Firm = 30,000 × 3 = 90,000.
Leena's Share = 90,000 × 1/4 = ₹ 22,500.
3. Profit Suspense (Apr 1 to Jun 30 = 3 months):
Based on last year's profit (40,000).
Leena's Profit = 40,000 × 3/12 × 1/4 = ₹ 2,500.
4. Interest on Capital:
Leena's Capital = 12,000.
Interest = 12,000 × 10% × 3/12 = ₹ 300.
1. Revaluation Profit:
Profit on Land & Building (30,100 - 16,000) = +14,100
Loss on Stock (17,000 - 16,700) = -300
Loss on Furniture (18,000 - 16,200) = -1,800
Net Profit = 14,100 - 2,100 = 12,000.
Leena's Share (1/4) = ₹ 3,000.
2. Goodwill:
Average Profit = (30k+25k+25k+40k)/4 = 120k/4 = 30,000.
Goodwill of Firm = 30,000 × 3 = 90,000.
Leena's Share = 90,000 × 1/4 = ₹ 22,500.
3. Profit Suspense (Apr 1 to Jun 30 = 3 months):
Based on last year's profit (40,000).
Leena's Profit = 40,000 × 3/12 × 1/4 = ₹ 2,500.
4. Interest on Capital:
Leena's Capital = 12,000.
Interest = 12,000 × 10% × 3/12 = ₹ 300.
Leena's Capital Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Drawings A/c | 2,700 | By Balance b/d | 12,000 |
| To Leena's Executor's Loan A/c (Balancing Figure) |
41,600 | By General Reserve A/c (16k × 1/4) | 4,000 |
| By P&L Adjustment A/c (Profit) | 3,000 | ||
| By Goodwill A/c (Share) | 22,500 | ||
| By P&L Suspense A/c | 2,500 | ||
| By Interest on Capital A/c | 300 | ||
| Total | 44,300 | Total | 44,300 |
(b) Leena's share of goodwill: ₹ 22,500.
Q.5. Issue of Shares (Saraswati and Sons Ltd.)
Journal Entries in the books of Saraswati and Sons Ltd.
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 1. | Bank A/c ... Dr. | 1,50,000 | ||
| To Equity Share Application A/c | 1,50,000 | |||
| (Being application money on 50,000 shares @ ₹3 received) | ||||
| 2. | Equity Share Application A/c ... Dr. | 1,50,000 | ||
| To Equity Share Capital A/c | 1,50,000 | |||
| (Being application money transferred to share capital) | ||||
| 3. | Equity Share Allotment A/c ... Dr. | 1,50,000 | ||
| To Equity Share Capital A/c | 1,50,000 | |||
| (Being allotment money on 50,000 shares @ ₹3 due) | ||||
| 4. | Bank A/c ... Dr. | 1,50,000 | ||
| To Equity Share Allotment A/c | 1,50,000 | |||
| (Being allotment money received) | ||||
| 5. | Equity Share First & Final Call A/c ... Dr. | 2,00,000 | ||
| To Equity Share Capital A/c | 2,00,000 | |||
| (Being call money on 50,000 shares @ ₹4 due) | ||||
| 6. | Bank A/c ... Dr. (45,000 × 4) | 1,80,000 | ||
| Calls in Arrears A/c ... Dr. (5,000 × 4) | 20,000 | |||
| To Equity Share First & Final Call A/c | 2,00,000 | |||
| (Being call money received except on 5,000 shares) | ||||
| 7. | Equity Share Capital A/c ... Dr. (5,000 × 10) | 50,000 | ||
| To Calls in Arrears A/c (5,000 × 4) | 20,000 | |||
| To Share Forfeiture A/c (5,000 × 6) | 30,000 | |||
| (Being 5,000 shares forfeited for non-payment of call) |
OR
Q.5. Common Size Statement (Olam Ltd.)
Common Size Balance Sheet as on 31st March, 2021
| Particulars | Amount (₹) | % |
|---|---|---|
| I. Equity and Liabilities | ||
| Equity Share Capital | 4,50,000 | 50.56 |
| Preference Share Capital | 40,000 | 4.49 |
| Reserves and Surplus | 75,000 | 8.43 |
| Secured Loans | 1,50,000 | 16.85 |
| Unsecured Loans | 1,00,000 | 11.24 |
| Current Liabilities | 75,000 | 8.43 |
| Total | 8,90,000 | 100.00 |
| II. Assets | ||
| Fixed Assets | 4,50,000 | 50.56 |
| Investments | 75,000 | 8.43 |
| Current Assets | 3,65,000 | 41.01 |
| Total | 8,90,000 | 100.00 |
Q.6. Not for Profit Concern (Gajanan Charitable Hospital)
Income and Expenditure Account for the year ended 31st March, 2021
| Expenditure | Amount (₹) | Amount (₹) | Income | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| To Drugs Consumed: | By Subscriptions | 1,11,000 | |||
| Op. Stock | 21,000 | By Hospital Receipts | 2,55,200 | ||
| Add: Purchases | 80,000 | (By Deficit) | 24,550 | ||
| (100k - 20k old) | |||||
| Less: Cl. Stock | (11,000) | 90,000 | |||
| To Staff Salary | 42,500 | ||||
| To Honorarium to Doctors | 2,00,000 | ||||
| To Repairs | 9,000 | ||||
| To General Expenses | 8,000 | ||||
| To Depreciation on: | |||||
| Building (5%) | 26,250 | ||||
| Ambulance | 15,000 | 41,250 | |||
| Total | 3,90,750 | Total | 3,90,750 |
Balance Sheet as on 31st March, 2021
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Capital Fund | 5,50,000 | Building | 5,25,000 | ||
| Add: Life Mem. Fees | 15,000 | Less: Depreciation | 26,250 | 4,98,750 | |
| Less: Deficit | (24,550) | 5,40,450 | Ambulance | 2,00,000 | |
| Bank Loan | 3,25,000 | Less: Depreciation | 15,000 | 1,85,000 | |
| Outstanding Bill for drugs | 5,000 | Hospital Equipment | 1,52,000 | ||
| (25k Old - 20k Paid) | Furniture | 22,500 | |||
| Stock of drugs | 11,000 | ||||
| Cash in hand | 1,200 | ||||
| Total | 8,70,450 | Total | 8,70,450 |
Q.7. Final Accounts (Ram and Shyam)
Working Notes:
1. Insurance: Paid 30,000 for 15 months. Prepaid for 3 months = 30,000 × 3/15 = 6,000. Expense = 24,000.
2. Depreciation on Building:
Opening 60,000 (10% for 12 months) = 6,000.
Addition 40,000 (10% for 9 months from 1st July) = 3,000.
Total = 9,000.
3. Interest on Loan: 60,000 × 10% × 6/12 = 3,000. (Entirely outstanding as no debit in TB).
1. Insurance: Paid 30,000 for 15 months. Prepaid for 3 months = 30,000 × 3/15 = 6,000. Expense = 24,000.
2. Depreciation on Building:
Opening 60,000 (10% for 12 months) = 6,000.
Addition 40,000 (10% for 9 months from 1st July) = 3,000.
Total = 9,000.
3. Interest on Loan: 60,000 × 10% × 6/12 = 3,000. (Entirely outstanding as no debit in TB).
Profit and Loss Account for the year ended 31st March, 2022
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Insurance (30k - 6k) | 24,000 | By Gross Profit b/d | 69,000 |
| To Salaries | 10,000 | By Interest (Received) | 3,000 |
| To Export Duty | 5,000 | ||
| To Rent | 2,000 | ||
| To Depreciation on: | |||
| Land & Building | 9,000 | ||
| Furniture (5% of 80k) | 4,000 | ||
| To Bad Debts (New) | 2,000 | ||
| To R.D.D. (New 5% on 50k) | 2,500 | ||
| To Interest on Bank Loan (O/S) | 3,000 | ||
| To Net Profit (Trf to Capital): | |||
| Ram (1/2) | 5,250 | ||
| Shyam (1/2) | 5,250 | ||
| Total | 72,000 | Total | 72,000 |
Balance Sheet as on 31st March, 2022
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Capital Accounts: | Land and Building | 1,00,000 | |||
| Ram (100k + 5.25k) | 1,05,250 | Less: Depreciation | 9,000 | 91,000 | |
| Shyam (100k + 5.25k) | 1,05,250 | 2,10,500 | Furniture | 80,000 | |
| 10% Bank Loan | 60,000 | Less: Depreciation | 4,000 | 76,000 | |
| Add: O/S Interest | 3,000 | 63,000 | Debtors | 52,000 | |
| Bills Payable | 16,000 | Less: Bad Debts | 2,000 | ||
| Less: R.D.D. | 2,500 | 47,500 | |||
| Closing Stock | 69,000 | ||||
| Prepaid Insurance | 6,000 | ||||
| Total | 2,89,500 | Total | 2,89,500 |