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Accountancy (055) · Class XII · Chapter-wise Board Questions

CBSE Board papers 2022 to 2026, plus CBSE Sample Question Papers. Chapters as per CBSE Curriculum 2026-27. 1629 questions. Click Reveal answer under any question to see the official marking scheme.

Marks
Part A · Partnership

1. Accounting for Partnership: Basic Concepts

Q1.2026 Main 67/1/1 · Q21 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Partnership Agreement becomes the basis of relationship among the partners.

Reason (R) : Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q2.2026 Main 67/1/1 · Q4(a)1 mark

Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, Tej had given a loan of ₹50,000 to the firm. The net profit of the firm before charging interest on loan was ₹3,75,000. The firm closes its books on 31st March every year. The amount of profit transferred from Profit and Loss Account to Profit and Loss Appropriation Account will be :

  1. ₹3,75,000
  2. ₹3,72,000
  3. ₹4,25,000
  4. ₹3,78,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) ₹3,72,000

Q3.2026 Main 67/1/1 · Q4(b)1 mark

Ashok and Vasu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their capitals on 31st March, 2025 were ₹3,00,000 and ₹3,75,000 respectively. During the year ended 31st March, 2025 Vasu withdrew ₹40,000 for his personal use and introduced ₹1,50,000 as additional capital in the business. Profit of the firm for the year ended 31st March, 2025 was ₹1,40,000. Vasu’s capital in the beginning of the year was :

  1. ₹2,75,000
  2. ₹4,25,000
  3. ₹2,05,000
  4. ₹3,45,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹2,05,000

Q4.2026 Main 67/1/1 · Q81 mark

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025 Madhvi withdrew ₹40,000 at the end of every month for her personal use. Interest on Madhvi’s drawings will be :

  1. ₹19,200
  2. ₹4,800
  3. ₹2,400
  4. ₹1,600
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹2,400

Q5.2026 Main 67/1/1 · Q101 mark

Nidhi and Kunal were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their capitals were ₹3,00,000 and ₹2,00,000 respectively. They were entitled to interest on capital @ 6% p.a. The firm earned a profit of ₹15,000 during the year.

Interest on partners’ capitals will be :

  1. Nidhi ₹18,000 ; Kunal ₹12,000
  2. Nidhi ₹7,500 ; Kunal ₹7,500
  3. Nidhi ₹9,000 ; Kunal ₹6,000
  4. Nidhi ₹12,000 ; Kunal ₹3,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) Nidhi ₹9,000; Kunal ₹6,000

Q6.2026 Main 67/2/1 · Q11 mark

Navya, Kartik and Samir were partners in a firm sharing profits and losses in the ratio of 4:3:1. Samir was given a guarantee that his share of profit in any year will not be less than ₹ 57,000. Any deficiency on this account was to be borne by Navya and Kartik equally. The firm earned a profit of ₹ 4,00,000 during the year ended 31st March, 2025. The amount of deficiency borne by Kartik was :

  1. ₹ 3,500
  2. ₹ 4,000
  3. ₹ 3,000
  4. ₹ 7,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) ₹ 3,500

Q7.2026 Main 67/2/1 · Q21 mark

Nandita and Prabha were partners in a firm manufacturing furniture. They were sharing profits and losses in the ratio of 8:7. During the year ended 31st March 2025, Nandita withdrew ₹ 80,000 in cash and ₹ 20,000 as furniture for her personal use. The partnership deed provided for charging interest on partner's drawings @ 6% p.a. The amount of interest on Nandita's drawings for the year ended 31st March 2025 was :

  1. ₹ 6,000
  2. ₹ 1,200
  3. ₹ 2,400
  4. ₹ 3,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) ₹ 3,000

Q8.2026 Main 67/2/1 · Q4(a)1 mark

Dilshad, Ajit and Deepna were partners in a firm sharing profits and losses in the ratio of 2:2:1. Their fixed capitals were : ₹ 5,00,000, ₹ 4,00,000 and ₹ 1,00,000 respectively. After closing the accounts for the year ended 31st March 2025, it was discovered that interest on partners' capitals was provided @ 6% p.a. instead of 7% p.a. The adjustment entry to rectify the above error will be :

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Deepna's Current A/c Dr.
To Dilshad's Current A/c
1,000
1,000
(B)Dilshad's Current A/c Dr.
To Deepna's Current A/c
1,000
1,000
(C)Deepna's Capital A/c Dr.
To Dilshad's Capital A/c
1,000
1,000
(D)Dilshad's Capital A/c Dr.
To Deepna's Capital A/c
1,000
1,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A)

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
Deepna's Current A/c Dr.
To Dilshad's Current A/c
1,000
1,000
Q9.2026 Main 67/2/1 · Q91 mark

Shiv, Riya and Rohit were partners in a firm. On 1st October, 2024 Rohit had given a loan of ₹ 2,00,000 to the firm, at an interest rate of 10% p.a. as per the partnership agreement. The accountant of the firm is emphasizing that interest on loan will be paid at 6% p.a. The amount of interest on loan paid to Rohit for the year ended 31st March, 2025 will be :

  1. ₹ 20,000
  2. ₹ 10,000
  3. ₹ 12,000
  4. ₹ 6,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) ₹ 10,000

Q10.2026 Main 67/2/1 · Q111 mark

Amita, Shivani and Tarush were partners in a firm sharing profits and losses in the ratio of 4:3:2. Tarush's share of profit at the end of the year amounted to ₹ 1,80,000. Amita's share of profit at the end of the year was :

  1. ₹ 2,70,000
  2. ₹ 3,60,000
  3. ₹ 1,80,000
  4. ₹ 2,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) ₹ 3,60,000

Q11.2026 Main 67/3/1 · Q3(a)1 mark

Atul, Bajaj and Madan were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 5. The partnership deed provides that interest on a partner’s drawings shall be charged @ 18% per annum. During the year ended 31st March, 2025, Bajaj withdrew ₹7,000 at the end of each quarter. Interest on Bajaj’s drawings will be :

  1. ₹1,890
  2. ₹3,150
  3. ₹420
  4. ₹5,040
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) ₹1,890

Q12.2026 Main 67/3/1 · Q3(b)1 mark

Damodar, Rao and Shridharan were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their fixed capitals were ₹4,00,000; ₹3,00,000 and ₹2,00,000 respectively. Interest on capital is allowed at the rate of 6% per annum. Journal entry for allowing interest on Rao’s capital will be :

ParticularsDebit Amount (₹)Credit Amount (₹)
(A)Profit & Loss Appropriation A/c Dr.
To Rao’s Capital A/c
18,000
18,000
(B)Profit & Loss Appropriation A/c Dr.
To Rao’s Current A/c
18,000
18,000
(C)Interest on Capital A/c Dr.
To Rao’s Current A/c
18,000
18,000
(D)Interest on Capital A/c Dr.
To Rao’s Capital A/c
18,000
18,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C)

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Interest on Capital A/c Dr.
To Rao’s Current A/c
18,000

18,000
Q13.2026 Main 67/3/1 · Q81 mark

Divya and Bholi were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 1st April, 2024, their fixed capitals were ₹8,00,000 and ₹6,00,000 respectively. On 30th September, 2024, Bholi introduced ₹50,000 as additional capital. Partnership deed provided that interest on capital will be allowed @ 12% p.a. Interest on Bholi’s capital for the year ended 31st March, 2025 was :

  1. ₹78,000
  2. ₹75,000
  3. ₹72,000
  4. ₹3,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) ₹75,000

Q14.2026 Main 67/3/1 · Q9(a)1 mark

Persons who have entered into partnership with one another are collectively called :

  1. Firm
  2. Partnership
  3. Partners
  4. Partners’ firm
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) Firm

Q15.2026 Main 67/3/1 · Q9(b)1 mark

In the absence of partnership deed, partners are entitled to :

  1. Interest on Capital
  2. Share of profits/losses in the ratio of their capitals
  3. Interest @ 6% p.a. on loans/advances by them to the firm
  4. Remuneration for the firm’s work
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C) Interest @ 6% p.a. on loans/advances by them to the firm

Q16.2026 Main 67/3/1 · Q101 mark

When capitals of the partners are fluctuating, then the adjustments for drawings, interest on drawings, interest on capital, partners’ salary, etc. are shown in the _________.

  1. Current Account of partners
  2. Capital Account of partners
  3. Drawings Account
  4. Profit and Loss Appropriation Account
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Capital Account of Partners

Q17.2026 Main 67/4/1 · Q1(a)1 mark

Reena and Teena were partners in a firm sharing profits and losses in the ratio of 2 : 1. Teena withdrew ₹ 20,000 at the beginning of each month during the year ended 31st March, 2025. Interest on drawings was to be charged @ 6% per annum. Interest on Teena’s drawings for the year ended 31st March, 2025 will be :

  1. ₹ 7,800
  2. ₹ 7,200
  3. ₹ 9,600
  4. ₹ 6,600
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) ₹ 7,800

Q18.2026 Main 67/4/1 · Q1(b)1 mark

Rohan and Sohan were partners in a firm sharing profits and losses equally. Rohan withdrew ₹ 15,000 at the beginning of each quarter during the year ended 31st March, 2025. Interest on Rohan’s drawings will be calculated for an average period of :

  1. 6 months
  2. 4 ½ months
  3. 7 ½ months
  4. 6 ½ months
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) 7 ½ months

Q19.2026 Main 67/4/1 · Q71 mark

Ankur and Angad were partners in a firm sharing profits and losses in the ratio of 8 : 7. On 1st July, 2024, Angad advanced a loan of ₹ 8,00,000 to the firm. There is no partnership deed. Angad demands interest on loan @ 10% p.a. On 31st March, 2025, the amount of interest on loan due to Angad will be :

  1. ₹ 36,000
  2. ₹ 48,000
  3. ₹ 80,000
  4. ₹ 60,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) ₹ 36,000

Q20.2026 Main 67/4/1 · Q161 mark

Anita and Priyal were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024, their capital accounts showed balances of ₹ 3,00,000 and ₹ 4,00,000 respectively. The partnership deed provided for interest on capital @ 8% p.a. The firm earned a profit of ₹ 28,000 for the year ended 31st March, 2025.

Interest on capital allowed to Anita and Priyal was :

  1. Anita ₹ 24,000, Priyal ₹ 32,000
  2. Anita ₹ 16,000, Priyal ₹ 12,000
  3. Anita ₹ 12,000, Priyal ₹ 16,000
  4. Anita ₹ 16,800, Priyal ₹ 11,200
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) Anita ₹ 12,000, Priyal ₹ 16,000

Q21.2026 Main 67/5/1 · Q11 mark

Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1st October, 2024 Arora withdrew ₹30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora’s drawings for the year ended 31st March, 2025 was :

  1. ₹1,800
  2. ₹2,700
  3. ₹450
  4. ₹3,600
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) ₹2,700

Q22.2026 Main 67/5/1 · Q81 mark

Alok, Sarah and Aditya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st January, 2025 Alok advanced a loan of ₹2,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on loan due to Alok on 31st March, 2025 will be :

  1. ₹20,000
  2. ₹12,000
  3. ₹3,000
  4. ₹5,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) ₹3,000

Q23.2026 Main 67/5/1 · Q101 mark

Munna and Sonu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their fixed capitals were ₹40,00,000 and ₹30,00,000 respectively. During the year ended 31st March, 2025, Munna withdrew ₹50,000 for personal use. Interest on drawings was to be charged @ 6% p.a. The journal entry for charging interest on Munna’s drawings will be :

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Interest on Drawings A/c ……Dr.1,500
To Munna’s Capital A/c1,500
(B)Munna’s Capital A/c ……Dr.1,500
To Interest on Drawings A/c1,500
(C)Interest on Drawings A/c ……Dr.1,500
To Munna’s Current A/c1,500
(D)Munna’s Current A/c ……Dr.1,500
To Interest on Drawings A/c1,500
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D)

ParticularsDr. Amount (₹)Cr. Amount (₹)
(D)Munna’s Current A/c ……Dr.1,500
To Interest on Drawings A/c1,500
Q24.2026 Supp. 67/7/1 · Q8(a)1 mark

Reema and Leena were partners in a firm, sharing profits and losses in the ratio of 4 : 1. On 1st April, 2024, Maya was admitted as a new partner for 1/4th share in the profits of the firm. Maya was guaranteed a minimum profit of ₹ 1,20,000. Any deficiency on this account was be borne by Reema and Leena in the ratio of 3 : 2. During the year ended 31st March, 2025, the firm earned a net profit of ₹ 4,00,000. The amount of deficiency borne by Leena will be :

  1. ₹ 10,000
  2. ₹ 8,000
  3. ₹ 4,000
  4. ₹ 12,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ₹8,000

Q25.2026 Supp. 67/7/1 · Q91 mark

Kartik and Yogesh were partners in a firm, sharing profits and losses in the ratio of 2 : 1. Their capitals were ₹ 6,00,000 and ₹ 4,00,000 respectively. Interest on capital is allowed @ 8% p.a. The firm earned a profit of ₹ 60,000 for the year ended 31st March, 2025. Interest on capital credited to the partners will be :

  1. Kartik ₹ 36,000; and Yogesh ₹ 24,000
  2. Kartik ₹ 30,000; and Yogesh ₹ 30,000
  3. Kartik ₹ 40,000; and Yogesh ₹ 20,000
  4. Kartik ₹ 48,000; and Yogesh ₹ 32,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) Kartik ₹ 36,000; and Yogesh ₹ 24,000

Q26.2026 Supp. 67/7/1 · Q111 mark

Adish, Bina and Chand were partners in a firm, sharing profits and losses in the ratio of 4 : 2 : 1. Bina’s share of profit at the end of the year amounted to ₹ 1,40,000. Adish’s share in the profit was :

  1. ₹ 70,000
  2. ₹ 2,10,000
  3. ₹ 2,80,000
  4. ₹ 1,40,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) ₹2,80,000

Q27.2025 Main 67/1/1 · Q11 mark

Sara and Tara were partners in a firm. Their capitals as on 1st April, 2023 were ₹ 6,00,000 and ₹ 4,00,000 respectively. On 1st October, 2023, Tara withdrew ₹ 1,00,000 for personal use. According to the partnership deed, interest on capital was allowed @ 8% p.a.

The amount of interest allowed on Tara's capital for the year ended 31st March, 2024 was :

  1. ₹ 28,000
  2. ₹ 30,000
  3. ₹ 48,000
  4. ₹ 32,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) ₹ 32,000

Q28.2025 Main 67/1/1 · Q21 mark

Assertion (A) : Each partner carrying on the business of the firm is the principal as well as the agent for all the other partners of the firm.

Reason (R) : There exists a relationship of mutual agency between all the partners.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q29.2025 Main 67/1/1 · Q91 mark

Anuj and Kartik were partners in a firm sharing profits and losses in the ratio of 5 : 4. Anuj withdrew ₹ 20,000 in the beginning of every alternate month starting from 1st April, 2023 during the year ended 31st March, 2024. Interest on Anuj's drawings @ 6% p.a. for the year ended 31st March, 2024 will be :

  1. ₹ 8,400
  2. ₹ 1,200
  3. ₹ 4,200
  4. ₹ 3,600
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) ₹ 4,200

Q30.2025 Main 67/1/1 · Q111 mark

When the partners' capitals are fixed, the drawings made by a partner are recorded on the :

  1. Debit side of Partner's Capital Account.
  2. Credit side of Partner's Capital Account.
  3. Debit side of Partner's Current Account.
  4. Credit side of Partner's Current Account.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) Debit side of Partner's Current Account.

Q31.2025 Main 67/2/1 · Q21 mark

Eliza, Fenn and Garry were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Fenn was guaranteed ₹ 25,000 as his share in the profits. Any deficiency arising on that account was to be met by Eliza. The firm earned a profit of ₹ 80,000 for the year ended 31st March, 2024. The amount of profit credited to Fenn's capital account will be :

  1. ₹ 30,000
  2. ₹ 40,000
  3. ₹ 25,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) ₹30,000

Q32.2025 Main 67/2/1 · Q61 mark

Assertion (A) : The maximum number of partners in a partnership firm is 50.

Reason (R) : By virtue of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm. The Central Government has prescribed the maximum number of partners in a firm to be 50.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, but Reason (R) is false.
  4. Both Assertion (A) and Reason (R) are false.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of assertion (A).

Q33.2025 Main 67/2/1 · Q71 mark

Nandita and Prabha were partners in a firm. Nandita withdrew ₹ 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10% p.a. Interest on Nandita's drawings for the year ended 31st March, 2024 will be :

  1. ₹ 9,000
  2. ₹ 30,000
  3. ₹ 18,000
  4. ₹ 15,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) ₹15,000

Q34.2025 Main 67/2/1 · Q81 mark

Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. If Radhika's share of profit at the end of the year amounted to ₹ 5,40,000, Shubha's share of profit will be :

  1. ₹ 5,40,000
  2. ₹ 4,80,000
  3. ₹ 60,000
  4. ₹ 4,20,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) ₹4,20,000

Q35.2025 Main 67/4/1 · Q21 mark

Emily, Flora and Ginni entered into a partnership on 1st October, 2023 with capitals of ₹ 10,00,000 each. The partnership deed provided for interest on capital at 10% p.a. The firm earned a net profit of ₹ 7,50,000 for the year ended 31st March, 2024. The amount of profit transferred to Emily’s capital account was :

  1. ₹ 2,00,000
  2. ₹ 1,50,000
  3. ₹ 6,00,000
  4. ₹ 2,50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) ₹ 2,00,000

Q36.2025 Main 67/4/1 · Q61 mark

Assertion (A) : Partners’ salary is debited to Profit and Loss Appropriation Account and not to Profit and Loss Account.

Reason (R) : Partners’ salary is an appropriation of profit, it is not a charge against profits.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Both Assertion (A) and Reason (R) are incorrect.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q37.2025 Main 67/4/1 · Q81 mark

Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8 : 7 : 5. On 1st October, 2023, Reema advanced a loan of ₹ 5,00,000 to the firm. There is no partnership deed. The firm’s profit for the year ended 31st March, 2024 before charging interest on Reema’s loan amounted to ₹ 2,15,000. The amount of profit credited to Shikha’s capital account was :

  1. ₹ 80,000
  2. ₹ 70,000
  3. ₹ 50,000
  4. ₹ 42,500
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) ₹ 50,000

Q38.2025 Main 67/4/1 · Q91 mark

‘The business of a partnership firm may be carried on by all the partners or any of them acting for all.’

The above statement highlights which of the following feature of partnership ?

  1. Agreement
  2. Business
  3. Sharing of profit
  4. Mutual agency
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Mutual Agency

Q39.2025 Main 67/5/1 · Q11 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : The partners’ fixed capital accounts always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital.

Reason (R) : When captials are fixed, then various items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in partners’ capital accounts.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) Assertion (A) is correct, but Reason (R) is incorrect.

Q40.2025 Main 67/5/1 · Q41 mark

Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 5,00,000 each. After the accounts for the year ended 31st March, 2024 were prepared, it was discovered that interest on capital @ 10% p.a. was not credited to the partners’ current accounts as provided in the partnership deed.

The rectifying adjustment entry for the same will be :

ParticularsDebit Amount (₹)Credit Amount (₹)
(A)No Entry
(B)Sun’s Current A/c Dr.
To Moon’s Current A/c
50,000
50,000
(C)Moon’s Current A/c Dr.
To Sun’s Current A/c
50,000
50,000
(D)Sun’s Current A/c Dr.
Moon’s Current A/c Dr.
To Profit and Loss Appropriation A/c
50,000
50,000


1,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) No entry

Q41.2025 Main 67/5/1 · Q51 mark

John and Harry were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2023, they admitted Dinesh as a new partner for 1/4th share in the profits of the firm with a guarantee that his share in the profits shall be at least ₹ 1,00,000. The net profit of the firm for the year ended 31st March, 2024 was ₹ 2,80,000. John’s share in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be :

  1. ₹ 1,40,000
  2. ₹ 1,20,000
  3. ₹ 1,00,000
  4. ₹ 70,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) ₹1,20,000

Q42.2025 Main 67/5/1 · Q8(a)1 mark

Sudha, a partner withdrew ₹ 12,000 on 31st October, 2023 for her personal use. Interest on drawings is charged @ 6% p.a. The interest on Sudha’s drawings for the year ended 31st March, 2024 will be :

  1. ₹ 300
  2. ₹ 30
  3. ₹ 3,000
  4. ₹ 150
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) ₹300

Q43.2025 Main 67/5/1 · Q8(b)1 mark

The partnership deed should be prepared as per the provisions of which of the following Acts ?

  1. The Companies Act, 2013
  2. The Indian Partnership Act, 1932
  3. The Indian Stamp Act
  4. The Cooperative Societies Act
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) The Indian Stamp Act

Answer reproduced exactly as printed in the official marking scheme.

Q44.2025 Main 67/5/1 · Q91 mark

Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were ₹ 10,00,000, ₹ 8,00,000 and ₹ 6,00,000, respectively. The partnership deed provided for interest on partners’ drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners’ drawings ?

  1. Partners’ Capital Account
  2. Profit and Loss Appropriation Account
  3. Interest on Drawings Account
  4. Profit and Loss Account
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Partners’ Current A/c

Note: As there is no option in MCQ for the correct answer, therefore, 1 mark is to be awarded to all the examinees.

Q45.2025 Main 67/6/1 · Q21 mark

Ravi, Mohan and Vinod were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The partnership deed provided that interest on partners' drawings will be charged @ 12% p.a. Starting from 1st July, 2023, Mohan withdrew ₹20,000 every month for his personal use. For the year ended 31st March, 2024 interest on Mohan's drawings will be charged for ___________ months.

  1. 6½
  2. 6
  3. 5½
  4. 5
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) 5

Q46.2025 Main 67/6/1 · Q31 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

Reason (R) : Partnership agreement should always be in written form.

Choose the correct alternative from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) Assertion (A) is correct, but Reason (R) is incorrect.

Q47.2025 Main 67/6/1 · Q8(a)1 mark

Mohan, a partner, withdrew ₹80,000 from the business for his personal use during the year ended 31st March, 2024. Interest on drawings was to be charged @ 12% per annum. Interest on Mohan's drawings will be :

  1. ₹9,600
  2. ₹4,800
  3. ₹800
  4. ₹1,600
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) ₹4,800

Q48.2025 Main 67/6/1 · Q8(b)1 mark

The following account is debited for allowing interest on partners' capital :

  1. Profit and Loss Account
  2. Partners' Current Account
  3. Interest on Capital Account
  4. Partners' Capital Account
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) Interest on Capital Account

Q49.2025 Main 67/6/1 · Q111 mark

Ashok and Avinash were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2023, their capitals were ₹10,00,000 and ₹15,00,000 respectively. After the accounts for the year ending 31st March, 2024 were prepared, it was discovered that interest on capital at the rate of 10% per annum, as provided for in the partnership deed, was not credited to the partners' capital accounts before distribution of profits. Had the interest on capital been duly provided, the firm's divisible profit would have :

  1. Reduced by ₹2,50,000
  2. Increased by ₹2,50,000
  3. No change in the profits
  4. Reduced by ₹25,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Reduced by ₹2,50,000

Q50.2025 Main 67/7/1 · Q11 mark

Pooja and Kumari were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2023, Noori was admitted for a new partner 1/4th share in the profits of the firm. Noori was guaranteed a minimum profit of ₹1,20,000. Any deficiency on this account was to be borne by Pooja and Kumari in their profit sharing ratio. During the year ended 31st March, 2024, the firm earned a net profit of ₹3,60,000. The amount of deficiency borne by Pooja will be :

  1. ₹20,000
  2. ₹1,20,000
  3. ₹10,000
  4. ₹1,60,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) ₹20,000

Q51.2025 Main 67/7/1 · Q21 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Private assets of a partner can also be used for paying off the firm’s debts.

Reason (R) : Liability of a partner for acts of the firm is limited.

Choose the correct alternative from the following :

  1. Assertion (A) is incorrect, but Reason (R) is correct.
  2. Assertion (A) is correct, but Reason (R) is incorrect.
  3. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  4. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) Assertion (A) is correct, but Reason (R) is incorrect.

Q52.2025 Main 67/7/1 · Q91 mark

Usha and Mohak were partners in a firm. Usha withdrew a fixed amount at the end of every half-year for the year ended 31st March, 2024. Interest on drawings is charged at 9% p.a. Interest on Usha’s drawings will be charged for _____ months.

  1. 3
  2. 6
  3. 9
  4. 12
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) 3

Q53.2025 Main 67/7/1 · Q111 mark

Saloni and Mohini were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024, Saloni’s capital was ₹1,50,000. During the year, she withdrew ₹10,000 and introduced additional capital of ₹32,000. For the year ended 31st March, 2024, the firm earned a profit of ₹50,000. Saloni’s capital as on 1st April, 2023, was :

  1. ₹1,30,000
  2. ₹2,02,000
  3. ₹1,08,000
  4. ₹98,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) ₹98,000

Q54.2025 Supp. 67/S/1 · Q11 mark

Kamal, Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their fixed capitals were ₹ 3,00,000, ₹ 2,00,000 and ₹ 1,00,000 respectively. Interest on capital was credited to them @ 10% p.a. instead of 8% p.a. The Adjustment Entry to rectify the error will be :

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Kamal’s Current A/c ... Dr.400
    To Vimal’s Current A/c200
    To Nirmal’s Current A/c200
(B)Kamal’s Current A/c ... Dr.400
    To Nirmal’s Current A/c400
(C)Vimal’s Current A/c ... Dr.400
    To Nirmal’s Current A/c400
(D)Vimal’s Current A/c ... Dr.200
Nirmal’s Current A/c ... Dr.200
    To Kamal’s Current A/c400
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C)

ParticularsDr. Amount (₹)Cr. Amount (₹)
(C)Vimal’s Current A/c ... Dr.400
    To Nirmal’s Current A/c400
Q55.2025 Supp. 67/S/1 · Q21 mark

There are two statements, Assertion (A) and Reason (R).

Assertion (A) : Under the fluctuating capital method, only one account, i.e., capital account is maintained for each partner.

Reason (R) : All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, salary or commission to partners, etc. are recorded directly in the capital accounts of the partners.

Choose the correct alternative from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q56.2025 Supp. 67/S/1 · Q91 mark

Ranjeet and Ranvijay started a partnership firm on 1st April, 2023. According to the partnership deed, interest on drawings was to be charged @ 10% per annum. Ranjeet withdrew a fixed amount at the end of each month. The total yearly interest on Ranjeet’s drawings was ₹ 6,600. The amount of Ranjeet’s drawings for the year ended 31st March, 2024 was :

  1. ₹ 1,32,000
  2. ₹ 1,44,000
  3. ₹ 1,21,846
  4. ₹ 1,20,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) ₹1,44,000

Q57.2025 Supp. 67/S/1 · Q111 mark

Mathur, Jain and Verma were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Jain was guaranteed that his share of profit will not be less than ₹ 80,000. The firm’s profit for the year ended 31st March, 2024 was ₹ 1,80,000. The amount of deficiency borne by Verma was :

  1. ₹ 15,000
  2. ₹ 5,000
  3. ₹ 20,000
  4. Nil
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) ₹5,000

Q58.2025 Supp. 67/S/1 · Q141 mark

Divya and Saurabh are partners in a firm. On 1st October, 2023, Saurabh advanced a loan of ₹ 5,00,000 to the firm. There is no partnership deed. On 31st March, 2024, Saurabh was entitled to get the following amount as interest on loan :

  1. ₹ 25,000
  2. ₹ 30,000
  3. ₹ 15,000
  4. Nil
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) ₹15,000

Q59.2024 Main 67/1/1 · Q21 mark

Abhay, Boris and Chetan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Boris was guaranteed a profit of ₹95,000. Any deficiency on account of this was to be borne by Abhay and Chetan equally. The firm earned a profit of ₹2,00,000 for the year ended 31st March, 2023. The amount given by Abhay to Boris as guaranteed amount will be :

  1. ₹17,500
  2. ₹35,000
  3. ₹25,000
  4. ₹10,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) ₹17,500

Q60.2024 Main 67/1/1 · Q61 mark

Assertion (A) : Each partner is a principal as well as an agent for all the other partners.
Reason (R) : As per the definition of Partnership Act, partnership business may be carried on by all the partners or any of them acting for all.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q61.2024 Main 67/1/1 · Q71 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information.

Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2 : 1. On 1st April, 2023, their capital accounts showed balances of ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for interest on capital @ 10% p.a. The firm earned a profit of ₹90,000 during the year.

The amount of interest on capital allowed to Abha will be :

  1. ₹50,000
  2. ₹1,00,000
  3. ₹60,000
  4. ₹30,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) ₹30,000

Q62.2024 Main 67/1/1 · Q81 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information.

Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2 : 1. On 1st April, 2023, their capital accounts showed balances of ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for interest on capital @ 10% p.a. The firm earned a profit of ₹90,000 during the year.

Babita’s share in profit will be :

  1. ₹60,000
  2. ₹30,000
  3. Nil
  4. ₹1,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Nil

Q63.2024 Main 67/2/1 · Q21 mark

Which of the following items cannot be recorded in the capital account of partners if the capital accounts of partners are fixed ?

  1. Drawings
  2. Withdrawal of capital
  3. Introduction of additional capital
  4. Opening balance of capital
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) Drawings

Q64.2024 Main 67/2/1 · Q4(i)1 mark

On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹ 3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31st March, 2023 will be :

  1. ₹ 18,000
  2. ₹ 4,500
  3. ₹ 9,000
  4. No interest will be provided
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) ₹ 4,500

Q65.2024 Main 67/2/1 · Q4(ii)1 mark

If a partner withdraws a fixed amount at the end of each quarter, interest on drawings will be charged for __________ months.

  1. 9
  2. 7½
  3. 6
  4. 4½
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) 4½

Q66.2024 Main 67/2/1 · Q5(ii)1 mark

Neeru and Meetu are partners in a firm with capitals of ₹ 2,00,000 and ₹ 1,50,000 respectively. If the firm earned a profit of ₹ 17,500 for the year ended 31st March, 2023, then interest on capital @ 10% p.a. would be :

  1. Neeru ₹ 15,000; Meetu ₹ 20,000
  2. Neeru ₹ 8,750; Meetu ₹ 8,750
  3. Neeru ₹ 20,000; Meetu ₹ 15,000
  4. Neeru ₹ 10,000; Meetu ₹ 7,500
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) Neeru ₹10,000; Meetu ₹7,500

Q67.2024 Main 67/2/1 · Q8(ii)1 mark

Raju, Sohan and Tina are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Tina is guaranteed a minimum amount of ₹ 40,000 as share of profit every year. Any deficiency arising on that account shall be borne by Raju. If profit of the firm for the year ended 31st March, 2023 is ₹ 1,60,000, Raju will bear a deficiency of :

  1. ₹ 8,000
  2. ₹ 40,000
  3. ₹ 48,000
  4. ₹ 4,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) ₹8,000

Q68.2024 Main 67/2/1 · Q141 mark

Read the following hypothetical situation and answer Questions No. 14 and 15 on the basis of the given information.

Vivek and Nisha were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022, their capitals were ₹ 8,00,000 and ₹ 4,00,000 respectively. On 1st July, 2022, Vivek introduced additional capital of ₹ 2,00,000. During the year, Vivek’s drawings were ₹ 40,000 while drawings of Nisha were ₹ 80,000. As per the partnership agreement, interest on capital is allowed @ 6% p.a., interest on drawings will be charged @ 5% p.a. The net profit for the year ended 31st March, 2023 amounted to ₹ 6,50,000.

14. Interest on capital payable to Vivek will be :

  1. ₹ 48,000
  2. ₹ 60,000
  3. ₹ 57,000
  4. ₹ 24,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) ₹57,000

Q69.2024 Main 67/2/1 · Q151 mark

Read the following hypothetical situation and answer Questions No. 14 and 15 on the basis of the given information.

Vivek and Nisha were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022, their capitals were ₹ 8,00,000 and ₹ 4,00,000 respectively. On 1st July, 2022, Vivek introduced additional capital of ₹ 2,00,000. During the year, Vivek’s drawings were ₹ 40,000 while drawings of Nisha were ₹ 80,000. As per the partnership agreement, interest on capital is allowed @ 6% p.a., interest on drawings will be charged @ 5% p.a. The net profit for the year ended 31st March, 2023 amounted to ₹ 6,50,000.

15. The amount of interest on drawings of Nisha would be :

  1. ₹ 2,000
  2. ₹ 1,000
  3. ₹ 4,000
  4. ₹ 4,800
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) ₹2,000

Q70.2024 Main 67/3/1 · Q1(a)1 mark

Shrikant and Ajay were partners in a firm sharing profits and losses in the ratio of 5 : 3. Shrikant withdrew ₹ 10,000 in the beginning of each quarter during the year ended 31st March, 2023. Interest on Shrikant’s drawings @ 6% p.a for the year ended 31st March, 2023 will be :

  1. ₹ 2,400
  2. ₹ 1,200
  3. ₹ 1,500
  4. ₹ 900
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) ₹ 1,500

Q71.2024 Main 67/3/1 · Q1(b)1 mark

Abha, Manju and Rhea were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. During the year ended 31st March, 2023, Rhea withdrew ₹ 30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10% p.a. for the year ended 31st March, 2023 will be :

  1. ₹ 6,000
  2. ₹ 4,500
  3. ₹ 3,000
  4. ₹ 1,500
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) ₹ 4,500

Q72.2024 Main 67/3/1 · Q61 mark

Assertion (A) : Partners’ current accounts maintained under ‘Fixed Capital Method’ may show a debit or a credit balance.

Reason (R) : In the ‘Fixed Capital Method’, all items like share of profit or loss, interest on capital, drawings, interest on drawings etc. are recorded in the partners’ capital accounts.

Choose the correct option from the following :

  1. Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is not correct.
  4. Both Assertion (A) and Reason (R) are not correct.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) Assertion (A) is correct, but Reason (R) is not correct.

Q73.2024 Main 67/3/1 · Q71 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information :

Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Richa, Sheena and Tapti during the year ended 31st March, 2023 amounted to ₹ 50,000, ₹ 40,000 and ₹ 30,000 respectively. The net profit for the year ended 31st March, 2023 was ₹ 57,000.

Sheena’s interest on drawings will be :

  1. ₹ 5,000
  2. ₹ 4,000
  3. ₹ 3,000
  4. ₹ 2,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(D) ₹ 2,000

Q74.2024 Main 67/3/1 · Q81 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information :

Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Richa, Sheena and Tapti during the year ended 31st March, 2023 amounted to ₹ 50,000, ₹ 40,000 and ₹ 30,000 respectively. The net profit for the year ended 31st March, 2023 was ₹ 57,000.

Tapti’s share of profit will be :

  1. ₹ 11,500
  2. ₹ 34,500
  3. ₹ 10,500
  4. ₹ 23,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) ₹ 10,500

Q75.2024 Main 67/4/1 · Q11 mark

Kanha, Resham and Nisha were partners in a firm. Nisha had given a loan of ₹ 1,00,000 to the firm @ 10% p.a. The accountant of the firm is emphasizing that interest on loan will be paid @ 6% p.a. At what rate the interest on loan will be paid to Nisha ?

  1. 6% p.a.
  2. 10% p.a.
  3. 8% p.a.
  4. No interest on loan will be paid.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) 10% p.a.

Q76.2024 Main 67/4/1 · Q51 mark

Assertion (A) : Under the fixed capital method, partners’ capital accounts always show a credit balance.
Reason (R) : Under the fixed capital method, all items like share of profit or loss, interest on capital, drawings, interest on drawings are recorded in a separate account called partners’ current account.

Choose the correct alternative from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) Both Assertion(A) and Reason(R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q77.2024 Main 67/4/1 · Q6(a)1 mark

Vanya and Aanya were partners in a firm sharing profit and losses in the ratio of 3:2. Their capital were ₹ 5,00,000 and ₹ 1,00,000 respectively. Vanya was entitled to interest on capital @ 8% p.a. and Aanya was entitled to salary @ ₹ 5,000 per month. The net profit before any appropriation was ₹ 1,75,000. Vanya’s share in divisible profit will be :

  1. ₹ 45,000
  2. ₹ 30,000
  3. ₹ 37,500
  4. ₹ 40,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) ₹45,000

Q78.2024 Main 67/4/1 · Q6(b)1 mark

Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of ₹ 20,000 p.a. while Shiva was entitled to a salary of ₹ 50,000 p.a. Net profit for the year ended 31st March, 2023 after charging salary of Omkar and Shiva was ₹ 5,60,000. The total amount credited to Omkar’s capital account will be :

  1. ₹ 2,45,000
  2. ₹ 2,65,000
  3. ₹ 3,15,000
  4. ₹ 3,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) ₹3,00,000

Q79.2024 Main 67/4/1 · Q101 mark

Read the following hypothetical situation and answer questions 10 and 11 :
Aditi and Saurabh were partners in a firm sharing profits and losses in the ratio of 2:1. On 1st April, 2022 their capitals were ₹ 5,00,000 and ₹ 4,00,000 respectively. Before any appropriation, the firm earned a Net profit of ₹ 81,000 for the year ended 31st March, 2023. According to the partnership deed, interest on capital was to be provided @ 10% p.a.

Interest on capital will be provided to Aditi and Saurabh in which of the following ratio ?

  1. 5:4
  2. 2:1
  3. 1:1
  4. 8:1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) 5:4

Q80.2024 Main 67/4/1 · Q111 mark

Read the following hypothetical situation and answer questions 10 and 11 :
Aditi and Saurabh were partners in a firm sharing profits and losses in the ratio of 2:1. On 1st April, 2022 their capitals were ₹ 5,00,000 and ₹ 4,00,000 respectively. Before any appropriation, the firm earned a Net profit of ₹ 81,000 for the year ended 31st March, 2023. According to the partnership deed, interest on capital was to be provided @ 10% p.a.

Interest on Aditi’s capital will be :

  1. ₹ 50,000
  2. ₹ 45,000
  3. ₹ 40,500
  4. ₹ 54,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) ₹45,000

Q81.2024 Main 67/4/1 · Q121 mark

Vishnu and Mishu are partners in a firm. Mishu draws a fixed amount at the end of every quarter. Interest on drawings is charged @ 15% p.a. At the end of the year interest on Mishu’s drawings amounted to ₹ 9,000. Interest on drawings was charged on drawings of Mishu for :

  1. 6 months
  2. 7 ½ months
  3. 4 ½ months
  4. 4 months
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) 4 ½ months

Q82.2024 Main 67/4/1 · Q14(a)1 mark

Which one of the following items is not dealt through Profit and Loss Appropriation Account ?

  1. Interest on Capital
  2. Interest on Drawings
  3. Rent paid to partners
  4. Partner’s salary
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) Rent paid to partners

Q83.2024 Main 67/5/1 · Q11 mark

A partnership firm has 45 partners. It wants to admit 7 more partners into partnership. Only ______ more partners can be admitted in the partnership firm according to Companies Act, 2013.

  1. 1
  2. 6
  3. 5
  4. 3
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) 5

Q84.2024 Main 67/5/1 · Q41 mark

Assertion (A) : In partnership firm, the private assets of the partners can also be used to pay off the firm's debts.
Reason (R) : The liability of the partners for acts of the firm is limited.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is false, but Reason (R) is true.
  4. Assertion (A) is true, but Reason (R) is false.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) Assertion (A) is true, but Reason (R) is false.

Q85.2024 Main 67/5/1 · Q5(a)1 mark

Ridhima and Kavita were partners sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 1,50,000 and ₹ 2,00,000 respectively. The partnership deed provides for interest on capital @ 8% p.a. The net profit of the firm for the year ended 31st March, 2023 amounted to ₹ 21,000. The amount of interest on capital credited to the capital accounts of Ridhima and Kavita will be :

  1. ₹ 12,000 and ₹ 16,000 respectively.
  2. ₹ 10,500 and ₹ 10,500 respectively.
  3. ₹ 9,000 and ₹ 12,000 respectively.
  4. ₹ 16,000 and ₹ 5,000 respectively.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) ₹9,000 and ₹12,000 respectively

Q86.2024 Main 67/5/1 · Q5(b)1 mark

Ruchika and Harshita were partners in a firm. Ruchika had withdrawn ₹ 9,000 at the end of each quarter, throughout the year. The interest to be charged on Ruchika's drawings at 6% p.a. will be :

  1. ₹ 540
  2. ₹ 2,160
  3. ₹ 1,080
  4. ₹ 810
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) ₹810

Q87.2024 Main 67/5/1 · Q101 mark

Read the following hypothetical situation and answer question numbers 10 and 11 :

Keshav and Hitesh are partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 after division of profit of ₹ 15,000, their capitals were ₹ 55,000 and ₹ 45,000 respectively. During the year Keshav's drawings were ₹ 1,500 at the beginning of each quarter and Hitesh withdrew ₹ 9,000 on 1st November, 2022.

After the final accounts have been prepared, it was discovered that interest on capital @ 5% p.a. and interest on drawings @ 8% p.a. have not been taken into consideration.

10. Opening capital of Keshav was :

  1. ₹ 35,000
  2. ₹ 39,000
  3. ₹ 43,000
  4. ₹ 52,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) ₹52,000

Q88.2024 Main 67/5/1 · Q111 mark

Read the following hypothetical situation and answer question numbers 10 and 11 :

Keshav and Hitesh are partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 after division of profit of ₹ 15,000, their capitals were ₹ 55,000 and ₹ 45,000 respectively. During the year Keshav's drawings were ₹ 1,500 at the beginning of each quarter and Hitesh withdrew ₹ 9,000 on 1st November, 2022.

After the final accounts have been prepared, it was discovered that interest on capital @ 5% p.a. and interest on drawings @ 8% p.a. have not been taken into consideration.

11. Amount of interest to be charged on Hitesh's drawings will be :

  1. ₹ 225
  2. ₹ 4,500
  3. ₹ 300
  4. ₹ 7,200
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) ₹300

Q89.2024 Main 67/5/1 · Q151 mark

Mahi, Ruhi and Ginni are partners in a firm sharing profits and losses in the ratio of 6 : 4 : 1. Mahi guaranteed a profit of ₹ 50,000 to Ginni. Net profit for the year ending 31st March, 2023 was ₹ 1,10,000. Mahi's share in the profit of the firm after giving guaranteed amount to Ginni will be :

  1. ₹ 20,000
  2. ₹ 60,000
  3. ₹ 40,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A) ₹20,000

Q90.2024 Supp. 67/S/1 · Q21 mark

Nikhil and Sharat were partners in a firm sharing profits and losses in the ratio of 4 : 3. Nikhil withdrew ₹ 6,000 on the first day of every quarter for the year ended 31st March, 2023. Interest on drawings is to be charged @ 5% p.a. Interest on Nikhil’s drawings will be calculated for :

  1. 6 months
  2. 4.5 months
  3. 7.5 months
  4. 3 months
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) 7.5 months

Q91.2024 Supp. 67/S/1 · Q61 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : The maximum number of partners in a partnership firm are 50.

Reason (R) : The maximum number of partners are prescribed by the Partnership Act, 1932.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) Assertion (A) is correct, but Reason (R) is incorrect.

Q92.2024 Supp. 67/S/1 · Q71 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information :

Daksh and Ekansh are partners in a firm sharing profits and losses in the ratio of 3 : 1. Their capitals were ₹ 1,60,000 and ₹ 1,00,000 respectively. As per partnership deed, they were entitled to interest on capital @ 10% p.a.. The firm earned a profit of ₹ 13,000 for the year ended 31st March, 2023.

7. Daksh’s interest on capital will be :

  1. ₹ 5,000
  2. ₹ 8,000
  3. ₹ 16,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) ₹8,000

Q93.2024 Supp. 67/S/1 · Q81 mark

Read the following hypothetical situation and answer questions No. 7 and 8 on the basis of the given information :

Daksh and Ekansh are partners in a firm sharing profits and losses in the ratio of 3 : 1. Their capitals were ₹ 1,60,000 and ₹ 1,00,000 respectively. As per partnership deed, they were entitled to interest on capital @ 10% p.a.. The firm earned a profit of ₹ 13,000 for the year ended 31st March, 2023.

8. Ekansh’s share of profit/loss will be :

  1. Nil
  2. ₹ 9,750 (Loss)
  3. ₹ 3,250 (Loss)
  4. ₹ 9,750 (Profit)
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) Nil

Q94.2023 Main 67/1/1 · Q1(i)1 mark

Hina and Neena are partners in a firm. Neena withdrew ₹ 10,000 per month at the beginning of each month during the year ended 31st March, 2022. Interest on drawings was to be charged @ 6% per annum.

Interest on Neena’s drawings for the year ended 31st March, 2022 will be :

  1. ₹ 3,900
  2. ₹ 325
  3. ₹ 3,600
  4. ₹ 3,300
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) ₹ 3,900

Q95.2023 Main 67/1/1 · Q1(ii)1 mark

Vibha and Asha are partners in a firm. Asha withdrew ₹ 1,000 at the end of each quarter during the year ended 31st March, 2022. Interest on drawings will be calculated for an average period of :

  1. 6 months
  2. 4½ months
  3. 7½ months
  4. 6½ months
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) 4½ months

Q96.2023 Main 67/1/1 · Q21 mark

Aman and Chaman are partners in a firm. On 1st July, 2021 Aman advanced a loan of ₹ 6,00,000 to the firm. There is no partnership deed. On 31st March, 2022, Aman was entitled to get the following amount as interest on loan :

  1. ₹ 36,000
  2. ₹ 18,000
  3. ₹ 9,000
  4. ₹ 27,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) ₹ 27,000

Q97.2023 Main 67/1/1 · Q41 mark

Read the following hypothetical situation and answer questions number 4 and 5 on the basis of the given information :

Kavita, Savita and Madhu were partners in a firm with capitals of ₹ 6,00,000, ₹ 4,00,000 and ₹ 2,00,000 respectively. After providing interest on capital @ 10% p.a., the profits are divisible as follows : Kavita 1/3, Savita 1/2 and Madhu 1/6. Kavita personally guaranteed that Savita’s share of profit after charging interest on capital would not be less than ₹ 1,00,000 in any year.

The profit for the year ending 31st March, 2022 amounted to ₹ 3,00,000 before providing interest on capital.

4. Savita’s share of profit is short of the guaranteed amount by :

  1. ₹ 40,000
  2. ₹ 70,000
  3. ₹ 20,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) ₹ 10,000

Q98.2023 Main 67/1/1 · Q51 mark

Read the following hypothetical situation and answer questions number 4 and 5 on the basis of the given information :

Kavita, Savita and Madhu were partners in a firm with capitals of ₹ 6,00,000, ₹ 4,00,000 and ₹ 2,00,000 respectively. After providing interest on capital @ 10% p.a., the profits are divisible as follows : Kavita 1/3, Savita 1/2 and Madhu 1/6. Kavita personally guaranteed that Savita’s share of profit after charging interest on capital would not be less than ₹ 1,00,000 in any year.

The profit for the year ending 31st March, 2022 amounted to ₹ 3,00,000 before providing interest on capital.

5. The total profits of the firm after adjustment of guaranteed amount will be distributed between the partners as :

  1. Kavita ₹ 60,000, Savita ₹ 40,000 and Madhu ₹ 20,000
  2. Kavita ₹ 50,000, Savita ₹ 1,00,000 and Madhu ₹ 30,000
  3. Kavita ₹ 60,000, Savita ₹ 90,000 and Madhu ₹ 30,000
  4. Kavita ₹ 60,000, Savita ₹ 1,00,000 and Madhu ₹ 20,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) Kavita ₹ 50,000, Savita ₹ 1,00,000, Madhu ₹ 30,000

Q99.2023 Main 67/1/1 · Q111 mark

‘A’ and ‘B’ were partners in a firm sharing profits and losses in the ratio of 7 : 1. ‘A’ withdrew a fixed amount of ₹ 12,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. The journal entry for charging interest on drawings at the end of the year will be :

  1. Interest on drawings A/c Dr. ₹ 1,800
        To A’s Capital A/c ₹ 1,800
  2. Interest on drawings A/c Dr. ₹ 1,800
        To A’s Current A/c ₹ 1,800
  3. A’s Capital A/c Dr. ₹ 1,800
        To Interest on drawings A/c ₹ 1,800
  4. Profit and Loss Appropriation A/c Dr. ₹ 1,800
        To Interest on drawings A/c ₹ 1,800
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) A’s Capital A/c Dr. ₹ 1,800
    To Interest on drawings A/c ₹ 1,800

Q100.2023 Main 67/2/1 · Q1(a)1 mark

Ram and Mohan were partners with fixed capitals of ₹3,00,000 and ₹2,00,000 respectively. As per their partnership deed, interest on capital was allowed @ 10% p.a. Net profit for the year ended 31st March, 2022 was ₹30,000. The amount of interest on capital was credited to each partner's current account for the year ended 31st March, 2022 was :

  1. Ram ₹30,000 and Mohan ₹20,000
  2. Ram ₹20,000 and Mohan ₹10,000
  3. Ram ₹18,000 and Mohan ₹12,000
  4. Ram ₹30,000 and Mohan Nil
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) Ram ₹18,000 and Mohan ₹12,000

Q101.2023 Main 67/2/1 · Q1(b)1 mark

Anu, Bindu and Siya were partners in a firm sharing profits and losses in the ratio of 2:2:1. Siya was guaranteed that her share of profit will not be less than ₹50,000. The firm's profit for the year ended 31st March, 2022 was ₹2,00,000. The amount of deficiency to be borne by Anu was :

  1. ₹10,000
  2. ₹2,500
  3. ₹75,000
  4. ₹5,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) ₹5,000

Q102.2023 Main 67/2/1 · Q41 mark

Suchi and Ruchi were partners in a firm sharing profits and losses equally. Throughout the year Ruchi withdrew ₹12,000 in the middle of each month. Interest on drawings is to be charged @ 6% p.a. as per partnership agreement. The average period for calculation of interest on drawings will be :

  1. 6½ months
  2. 6 months
  3. 5½ months
  4. 1 month
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) 6 months

Q103.2023 Main 67/2/1 · Q8(a)1 mark

A partnership firm has four partners. How many additional partners can be admitted into the business as per the provisions of the Companies Act, 2013 ?

  1. 50
  2. 46
  3. 100
  4. 96
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) 46

Q104.2023 Main 67/2/1 · Q141 mark

Read the following hypothetical situation and answer question no. 14 and 15 on its basis :

Rudra, Dev and Shiv were partners in a firm sharing profits in the ratio of 5:3:2. Their fixed capitals were ₹6,00,000, ₹4,00,000 and ₹2,00,000 respectively. Besides his capital Shiv had given a loan of ₹75,000 to the firm. Their partnership deed provided for the following :

  1. Interest on capital @ 9% p.a.
  2. Interest on partner's drawings @ 12% p.a.
  3. Salary to Rudra ₹30,000 per month and to Dev ₹40,000 per quarter.
  4. Interest on Shiv's loan @ 9% p.a.

During the year Rudra withdrew ₹50,000 at the end of each quarter; Dev withdrew ₹50,000 in the beginning of each half year and Shiv withdrew ₹70,000 at the end of each half year.

The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv's loan was ₹7,06,750.

14. How much amount of net profit will be transferred to Profit and Loss Appropriation A/c ?

  1. ₹7,06,750
  2. ₹7,02,250
  3. ₹7,00,000
  4. ₹7,13,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) ₹7,00,000

Q105.2023 Main 67/2/1 · Q151 mark

Read the following hypothetical situation and answer question no. 14 and 15 on its basis :

Rudra, Dev and Shiv were partners in a firm sharing profits in the ratio of 5:3:2. Their fixed capitals were ₹6,00,000, ₹4,00,000 and ₹2,00,000 respectively. Besides his capital Shiv had given a loan of ₹75,000 to the firm. Their partnership deed provided for the following :

  1. Interest on capital @ 9% p.a.
  2. Interest on partner's drawings @ 12% p.a.
  3. Salary to Rudra ₹30,000 per month and to Dev ₹40,000 per quarter.
  4. Interest on Shiv's loan @ 9% p.a.

During the year Rudra withdrew ₹50,000 at the end of each quarter; Dev withdrew ₹50,000 in the beginning of each half year and Shiv withdrew ₹70,000 at the end of each half year.

The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv's loan was ₹7,06,750.

15. What will the amount of interest on drawings of the partners ?

  1. Rudra ₹2,250; Dev ₹4,500 and Shiv ₹2,100
  2. Rudra ₹9,000; Dev ₹9,000 and Shiv ₹4,200
  3. Rudra ₹4,500; Dev ₹4,500 and Shiv ₹2,100
  4. Rudra ₹24,000; Dev ₹12,000 and Shiv ₹16,800
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Rudra ₹9,000; Dev ₹9,000 and Shiv ₹4,200

Q106.2023 Main 67/2/1 · Q161 mark

Assertion (A) : Under the fluctuating capital method, the balance in the capital account fluctuates from time to time.

Reason (R) : Under the fluctuating capital method, all the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings etc. are recorded directly in the capital accounts of the partners.

  1. (A) is correct but (R) is wrong.
  2. Both (A) and (R) are correct but (R) is not the correct explanation of (A).
  3. Both (A) and (R) are incorrect.
  4. Both (A) and (R) are correct and (R) is the correct explanation of (A).
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) Both (A) and (R) are correct and (R) is the correct explanation of (A).

Q107.2023 Main 67/3/1 · Q1(ii)1 mark

A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2021 the balances in their capital accounts were ₹ 1,50,000 and ₹ 2,00,000 respectively. The partnership deed provided that interest on partners capital will be allowed @ 10% per annum. During the year ended 31st March, 2022, the firm incurred a loss of ₹ 10,000. Interest on A’s capital will be :

  1. ₹ 15,000
  2. ₹ 9,000
  3. Nil
  4. ₹ 6,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Nil

Q108.2023 Main 67/3/1 · Q2(i)1 mark

_______ is the basis of relationship between the partners to run the partnership business.

  1. Offer
  2. Agreement
  3. Understanding
  4. Acceptance
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Agreement

Q109.2023 Main 67/3/1 · Q71 mark

Assertion (A) : Interest on partners’ loan is debited to Profit and Loss Account.

Reason (R) : Interest on partners’ loan is a charge against profits.

On the basis of the above Assertion (A) and Reason (R), choose the correct option from the following :

  1. Assertion (A) is correct and Reason (R) is wrong.
  2. Assertion (A) is wrong and Reason (R) is correct.
  3. Both Assertion (A) and Reason (R) are correct.
  4. Both Assertion (A) and Reason (R) are wrong.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Both Assertion (A) and Reason (R) are correct.

Q110.2023 Main 67/3/1 · Q91 mark

Read the following hypothetical situation and answer questions number 9 and 10 on the basis of information given :

Anu, Charu and Divya are partners sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were ₹ 5,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Anu personally guaranteed that in any year, Divya’s share of profit after allowing interest on capital to all partners @ 5% p.a. would not be less than ₹ 75,000. The profit for the year ending 31st March, 2022 amounted to ₹ 2,00,000.

Divya’s amount of guarantee is short by the following amount :

  1. ₹ 75,000
  2. ₹ 5,000
  3. ₹ 15,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) ₹ 15,000

Q111.2023 Main 67/3/1 · Q101 mark

Read the following hypothetical situation and answer questions number 9 and 10 on the basis of information given :

Anu, Charu and Divya are partners sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were ₹ 5,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Anu personally guaranteed that in any year, Divya’s share of profit after allowing interest on capital to all partners @ 5% p.a. would not be less than ₹ 75,000. The profit for the year ending 31st March, 2022 amounted to ₹ 2,00,000.

The final amount of profit distributed among the partners after adjustment of guaranteed amount will be :

  1. Anu ₹ 50,000; Charu ₹ 25,000; Divya ₹ 75,000
  2. Anu ₹ 55,000; Charu ₹ 30,000; Divya ₹ 65,000
  3. Anu ₹ 57,000; Charu ₹ 28,000; Divya ₹ 65,000
  4. Anu ₹ 45,000; Charu ₹ 30,000; Divya ₹ 75,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) Anu ₹45,000; Charu ₹30,000; Divya ₹75,000

Q112.2023 Main 67/4/1 · Q11 mark

Vijay and Ajay are partners in a firm. The partnership agreement provides for interest on drawings @ 12% per annum. Which of the following account will be debited to transfer interest on drawings to Profit and Loss Appropriation A/c ?

  1. Interest on Drawings Account
  2. Bank Account
  3. Partners’ Current Account
  4. Partners’ Capital Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) Interest on Drawings Account

Q113.2023 Main 67/4/1 · Q4(i)1 mark

On 1st October 2020, Amit, a partner, advanced a loan of ₹ 1,20,000 to the firm. In the absence of partnership deed, the amount of interest on loan to be paid on 31st March, 2021 will be :

  1. ₹ 3,600
  2. ₹ 7,200
  3. ₹ 12,000
  4. ₹ 6,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) ₹3600

Q114.2023 Main 67/4/1 · Q131 mark

Read the following hypothetical situation and answer questions number 13 and 14 on the basis of the given information :

Keshav, Krishna and Murari were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their fixed capitals were : ₹ 12,00,000, ₹ 10,00,000 and ₹ 8,00,000 respectively. It was agreed that interest on capital will be allowed at 10% per annum. Partners were entitled to salaries as follows :
Keshav ₹ 5,000 per month and Krishna ₹ 3,000 per quarter.
Profit of the firm for the year ended 31st March, 2022 was ₹ 6,72,000.

13. Amount credited to the Partners’ Current Accounts on account of ‘interest on capital’ and ‘salary’ was :

  1. Keshav ₹ 1,20,000, Krishna ₹ 1,00,000 and Murari ₹ 80,000
  2. Keshav ₹ 1,80,000, Krishna ₹ 1,12,000 and Murari ₹ 80,000
  3. Keshav ₹ 60,000, Krishna ₹ 12,000 and Murari ₹ Nil
  4. Keshav ₹ 3,30,000, Krishna ₹ 2,12,000 and Murari ₹ 1,30,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) Keshav ₹1,80,000, Krishna ₹1,12,000 and Murari ₹80,000

Q115.2023 Main 67/4/1 · Q141 mark

Read the following hypothetical situation and answer questions number 13 and 14 on the basis of the given information :

Keshav, Krishna and Murari were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their fixed capitals were : ₹ 12,00,000, ₹ 10,00,000 and ₹ 8,00,000 respectively. It was agreed that interest on capital will be allowed at 10% per annum. Partners were entitled to salaries as follows :
Keshav ₹ 5,000 per month and Krishna ₹ 3,000 per quarter.
Profit of the firm for the year ended 31st March, 2022 was ₹ 6,72,000.

14. Amount of profit transferred to Partners’ Current Accounts was :

  1. Keshav ₹ 1,00,000, Krishna ₹ 1,50,000 and Murari ₹ 50,000
  2. Keshav ₹ 50,000, Krishna ₹ 1,50,000 and Murari ₹ 1,00,000
  3. Keshav ₹ 1,50,000, Krishna ₹ 1,00,000 and Murari ₹ 50,000
  4. Keshav ₹ 1,51,500, Krishna ₹ 1,01,000 and Murari ₹ 50,500
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) Keshav ₹1,50,000, Krishna ₹1,00,000 and Murari ₹50,000

Q116.2023 Main 67/5/1 · Q21 mark

Assertion (A) : Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any of them acting for all.

Reason (R) : If a partner carries on any business of the same nature and competing with that of the firm, he/she shall account for and pay to the firm all profit made by him/her in that business.

Choose the correct option from the following :

  1. Both (A) and (R) are correct.
  2. Both (A) and (R) are incorrect.
  3. Both (A) and (R) are correct and (R) is the correct explanation of (A).
  4. Both (A) and (R) are correct and (R) is not the correct explanation of (A).
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) Both (A) and (R) are correct and (R) is not the correct explanation of (A)

Q117.2023 Main 67/5/1 · Q91 mark

Read the following hypothetical situation and answer Question Nos. 9 and 10 on the basis of the same.

Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter.

The average number of months for which interest on drawings will be calculated, will be :

  1. 3½ months
  2. 4½ months
  3. 7½ months
  4. 6 months
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) 4½ months

Q118.2023 Main 67/5/1 · Q101 mark

Read the following hypothetical situation and answer Question Nos. 9 and 10 on the basis of the same.

Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter.

The partnership deed provided that interest on capital will be allowed @ 10% p.a. The amount of interest on Ishita’s capital will be :

  1. ₹ 18,000
  2. ₹ 16,000
  3. ₹ 20,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) ₹20,000

Q119.2023 Main 67/5/1 · Q15(a)1 mark

Amit, Sumit and Kiara are partners sharing profits and losses in the ratio 2 : 2 : 1. Sumit is entitled to a commission of 15% on the net profit after charging such commission. The net profit before charging commission is ₹ 9,20,000. The amount of commission payable to Sumit will be :

  1. ₹ 1,20,000
  2. ₹ 1,38,000
  3. ₹ 48,000
  4. ₹ 55,200
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) ₹1,20,000

Q120.2023 Main 67/5/1 · Q15(b)1 mark

P, Q and R are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. For the year ended 31st March, 2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were ₹ 2,00,000; ₹ 1,00,000; ₹ 50,000 respectively. The necessary adjustment entry to rectify the error will be :

JOURNAL

ParticularsDebit Amt. (₹)Credit Amt. (₹)
(A)P’s Current A/c Dr.2,000
To Q’s Current A/c1,000
To R’s Current A/c1,000
(B)P’s Current A/c Dr.3,000
To Q’s Current A/c2,000
To R’s Current A/c1,000
(C)P’s Capital A/c Dr.2,000
To Q’s Capital A/c1,000
To R’s Capital A/c1,000
(D)P’s Capital A/c Dr.3,000
To Q’s Capital A/c2,000
To R’s Capital A/c1,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B)

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
P’s Current A/c Dr.3,000
To Q’s Current A/c2,000
To R’s Current A/c1,000
Q121.2023 Supp. 67/C/1 · Q1(a)1 mark

Persons who have entered into partnership with one another are individually called as :

  1. Partners
  2. Members
  3. Firm
  4. Owners
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) Partners

Q122.2023 Supp. 67/C/1 · Q1(b)1 mark

Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of 3 : 2. Madhu withdrew ₹ 20,000 in each quarter during the year ended 31.03.2023. Interest on drawings was to be charged @ 6% p.a. Interest on Madhu’s drawings will be :

  1. ₹ 3,000
  2. ₹ 2,400
  3. ₹ 1,800
  4. ₹ 4,800
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) ₹2,400

Q123.2023 Supp. 67/C/1 · Q3(a)1 mark

B and D were partners. According to the provisions of partnership deed, interest on B’s capital for the year ended 31.03.2022 was calculated at ₹ 4,000.

The necessary journal entry for transferring interest on B’s capital to Profit and Loss Appropriation Account will be :

  1. Profit and Loss Appropriation A/c Dr. ₹ 4,000
    To B’s Capital A/c ₹ 4,000
  2. Profit and Loss Appropriation A/c Dr. ₹ 4,000
    To Interest on B’s Capital A/c ₹ 4,000
  3. Interest on B’s Capital A/c Dr. ₹ 4,000
    To Profit and Loss Appropriation A/c ₹ 4,000
  4. Profit and Loss Appropriation A/c Dr. ₹ 4,000
    To B’s Current A/c ₹ 4,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B)
P & L Appropriation A/c Dr. ₹4,000
To Interest on B’s Capital A/c ₹4,000

Q124.2023 Supp. 67/C/1 · Q3(b)1 mark

K and L were partners in a firm. Their partnership deed provided that interest on partner’s drawings will be charged @ 12% per annum. Interest on L’s drawings for the year ended 31.03.2022 was calculated at ₹ 900.

The necessary journal entry for charging interest on L’s drawings will be :

  1. Profit and Loss Appropriation A/c Dr. ₹ 900
    To Interest on Drawings A/c ₹ 900
  2. Interest on Drawings A/c Dr. ₹ 900
    To Profit and Loss Appropriation A/c ₹ 900
  3. L’s Capital/Current A/c Dr. ₹ 900
    To Interest on Drawings A/c ₹ 900
  4. Interest on Drawings A/c Dr. ₹ 900
    To Partner’s Capital/Current A/c ₹ 900
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C)
L’s Capital / Current A/c A/c ₹900
To Interest on Drawings A/c ₹900

Q125.2023 Supp. 67/C/1 · Q81 mark

After doing the adjustments regarding drawings ₹ 40,000, share of profit ₹ 24,000 and the additional capital introduced ₹ 32,000, the capital of Ashok, a partner, as on 31.03.2022 was ₹ 5,00,000. His capital as on 01.04.2021 was :

  1. ₹ 4,84,000
  2. ₹ 5,16,000
  3. ₹ 4,46,000
  4. ₹ 5,96,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) ₹4,84,000

Q126.2023 Supp. 67/C/1 · Q91 mark

Josh and Jeevan were partners in a firm. During the year ended 31.03.2022 Jeevan withdrew ₹ 5,000 per month starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which interest on Jeevan’s total drawings will be charged is :

  1. 6 months
  2. 6½ months
  3. 4½ months
  4. 5 months
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) 4 ½ months

Q127.SQP 2025-26 · Q1(a)1 mark

A partner’s capital account was credited with ₹80,000 during the year. Which of the following can be the possibility for such a credit in his capital account?

  1. Opening Balance
  2. Drawings during the year
  3. Loss during the year
  4. Capital introduced
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) Capital introduced

Q128.SQP 2025-26 · Q1(b)1 mark

Assertion (A) :- Fluctuating Capital Account can show debit balance.

Reason (R) :- Losses and Drawings can be more than Capital Balance.

  1. Both A and R are correct and R is the correct explanation of A
  2. Both A and R are correct but R is not the correct explanation of A
  3. A is correct but R is incorrect
  4. Both A and R are incorrect.
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(A) Both A and R are correct, and R is the correct explanation of A

Q129.SQP 2025-26 · Q21 mark

On 1st July, 2024, A, B and C entered into partnership sharing Profits & Losses in the ratio 5:3:2. C was guaranteed that his share of profits will not be less than ₹ 60,000 p.a. Deficiency if any will be borne by A and B equally. For the year ended March 31, 2025, firm incurred loss of ₹ 1,25,000. Deficiency will be borne by A and B will be:

  1. A ₹ 30,000 and B ₹ 30,000
  2. A ₹ 43,750 and B ₹ 26,250
  3. A ₹ 42,500 and B ₹ 42,500
  4. A ₹ 35,000 and B ₹ 35,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) A ₹ 35,000 and B ₹ 35,000

Q130.SQP 2025-26 · Q71 mark

On 1st August, 2024 Tom, Jerry and Tyke entered into partnership with capitals of ₹5,00,000 each. Interest on Drawings was to be charged @ 6% p.a. For the year ended March 31, 2025, Tyke withdrew ₹ 80,000. What amount of Interest on drawings will be charged from Tyke?

  1. ₹ 4,800
  2. ₹ 1,600
  3. ₹ 3,200
  4. ₹ 2,400
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 1,600

Q131.SQP 2026-27 · Q21 mark

Aman and Suman are partners sharing profits and losses in the ratio of 3:2. Their capitals as on 1st April 2025 were ₹2,00,000 and ₹3,00,000 respectively. After the division of Net profits of ₹3,00,000 for the year 2025-26 among the partners, and adjustment of drawings, their capital balances on 31st March 2026 were: Aman ₹3,00,000 Suman ₹4,00,000. The accountant omitted to charge interest on drawings. If the firm wants to charge interest on drawings @10% p.a. Interest on Aman’s drawings would be:

  1. ₹ 4,000
  2. ₹ 8,000
  3. ₹ 40,000
  4. ₹ 80,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) ₹ 4,000

Q132.SQP 2026-27 · Q51 mark

R and S are partners sharing profits and losses in the ratio of 3:2. Their capitals are ₹3,00,000 and ₹1,00,000 respectively.

On 1st January 2026, the firm granted loans of ₹24,000 to R and ₹6,000 to S at 10% p.a.

The loss before charging interest for the year ended 31st March 2026 was ₹2,650.

Calculate the share of loss to be borne by each partner after accounting for interest on loans.

  1. Share of loss R ₹ 2,040, and S ₹ 1,360
  2. Share of loss R ₹ 3,390, and S ₹ 2,260
  3. Share of loss R ₹ 1,590, and S ₹ 1,060
  4. Share of loss R ₹ 1,140, and S ₹ 760
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(D) Share of loss R ₹ 1,140, and S ₹ 760

Q133.SQP 2026-27 · Q71 mark

X, Y, and Z are partners in a firm sharing profits and losses in the ratio 4:3:3. Z is guaranteed a minimum profit of ₹ 50,000 per annum, the deficiency, if any, is to be borne by X and Y equally. The firm's profit for the year ended 31st March 2026 is ₹40,000. The amount of deficiency to be borne by X and Y respectively will be:

  1. X ₹25,000 & Y ₹25,000
  2. X ₹21,714 & Y ₹16,286
  3. X ₹19,000 & Y ₹19,000
  4. X ₹5,000 & Y ₹5,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(C) X ₹19,000 & Y ₹19,000

Q134.2026 Main 67/1/1 · Q18(a)3 marks

Sultan, Singh and Tulsi were partners in a firm sharing profits and losses in the ratio of 9 : 7 : 4. Their fixed capitals were ₹6,00,000, ₹5,00,000 and ₹4,00,000. The partnership deed provided that interest on partners capital accounts will be allowed at 10% per annum. After the final accounts for the year were prepared, it was found that interest on capital was allowed @ 12% per annum.

Pass the necessary adjusting journal entry.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Sultan, Singh and Tulsi
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Tulsi’s Current A/c ……Dr.2,000
To Sultan’s Current A/c1,500
To Singh’s Current A/c500
(Interest on capital provided at a higher rate, now rectified) [1 mark]

Adjustment Table

PartnersDr. Interest on capital @ 2% (₹)Cr. Profits (₹) 9:7:4Net Effect
Dr. (₹)Cr. (₹)
Sultan12,00013,500-1,500
Singh10,00010,500-500
Tulsi8,0006,0002,000-
30,00030,0002,0002,000

(1 mark for journal entry + 2 marks for adjustment table = 3 marks)

(Note: If an examinee has shown the correct working in any other form, full credit should be given)

Q135.2026 Main 67/1/1 · Q18(b)3 marks

Sameer and Manveer were partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st April, 2024, they admitted Sandeep as a new partner for 1/5th share in the profits with a guaranteed minimum amount of ₹80,000. Sameer and Manveer continue to share profits as before but agreed to bear any deficiency on account of guarantee to Sandeep in the ratio of 3 : 5. The net profit of the firm for the year ended 31st March, 2025 was ₹3,20,000.

Prepare Profit and Loss Appropriation Account of Sameer, Manveer and Sandeep for the year ended 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Sameer, Manveer and Sandeep
Profit and Loss Appropriation A/c
for the year ended 31st March 2025

Dr. ParticularsAmount (₹)Particulars Cr.Amount (₹)
To Profit transferred to:
Sameer’s Capital A/c 1,60,000 ½
Less Share of deficiency (6,000) ½
1,54,000By Profit and Loss A/c (Net Profit)3,20,000
Manveer’s Capital A/c 96,000 ½
Less Share of deficiency (10,000) ½
86,000
Sandeep’s Capital A/c 64,000 ½
Add Share of deficiency from:
Sameer 6,000
Manveer 10,000 ½
80,000
3,20,0003,20,000

(Note: No marks for Net profit)

Q136.2026 Main 67/1/1 · Q203 marks

Shree and Hari were partners in a firm sharing profits and losses in the ratio of 2 : 3. Their fixed capitals were ₹4,00,000 and ₹3,00,000 respectively. The partnership deed provided that Hari is to be allowed a commission of 5% of net profit.

The net profit of the firm for the year ended 31st March, 2025 was ₹1,00,000.

Pass the following journal entries in the books of the firm :

  1. For crediting Hari’s commission to his current account.
  2. For transferring the commission to Profit and Loss Appropriation Account.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Shree and Hari
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025 Mar.31(i) Hari’s Commission A/c / Partner’s Commission A/c ……Dr.5,000
To Hari’s Current A/c5,000
(Hari’s commission credited to his current account) [1½ marks]
”(ii) Profit and Loss Appropriation A/c ……Dr.5,000
To Hari’s Commission A/c / Partner’s Commission A/c5,000
(Hari’s commission transferred to Profit and Loss Appropriation Account) [1½ marks]
Q137.2026 Main 67/2/1 · Q173 marks

Bose and Roy were partners in a firm sharing profits and losses in the ratio of 2:1. Bose withdrew the following amounts from the firm for personal use during the year ending 31st March, 2025 :

  1. For the first three months, he withdrew ₹ 3,000 at the beginning of every month.
  2. For the remaining months, he withdrew ₹ 4,000 at the end of every month.

Interest on drawings was to be charged @ 6% p.a. The books of the firm are closed on 31st March every year. Calculate interest on Bose's drawings for the year ending 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Calculation of Bose's interest on drawings: Rate of interest on drawings = 6% p.a.

Interest on drawings = Total amount of drawings × Average time period/12 × Rate/100

Average time period:
For first three months = (12+10)/2 = 11 months
For remaining nine months = (8+0)/2 = 4 months ……… ½

Interest on drawings:
For first three months = 9,000 × 6/100 × 11/12 = ₹ 495 ……… 1
For remaining nine months = 36,000 × 6/100 × 4/12 = ₹ 720 ……… 1
Total interest on drawings = 495 + 720 = ₹ 1,215 ……… ½

Alternatively,
Interest on drawings = Sum of product × rate/100 × 1/12

DateDrawings (₹)No. of MonthsProduct
01.04.243,0001236,000
01.05.243,0001133,000
01.06.243,0001030,000
31.07.244,000832,000
31.08.244,000728,000
30.09.244,000624,000
31.10.244,000520,000
30.11.244,000416,000
31.12.244,000312,000
31.01.254,00028,000
28.02.254,00014,000
31.03.254,00000
2,43,000

(First three rows: ½ mark; remaining rows: 1½ marks)

Interest on drawings = 2,43,000 × 6/100 × 1/12 = ₹ 1,215 ……… 1

NOTE: Full credit is to be given for Interest on drawings correctly calculated using any other correct method

Q138.2026 Main 67/2/1 · Q18(a)3 marks

Sarita and Veena were partners in a firm sharing profits and losses in the ratio of 3:2. The balance in their capital and current accounts as on 1st April, 2024 were as under :

ParticularsSarita (₹)Veena (₹)
Capital Accounts4,00,0003,00,000
Current Accounts80,000 (Cr.)60,000 (Dr.)

The partnership deed provided that Sarita was to be paid salary @ ₹ 2,000 per month whereas Veena was to get commission of ₹ 30,000 for the year. Interest on capital was to be allowed @ 8% p.a. The drawings of Sarita and Veena for the year ended 31st March, 2025 were ₹ 20,000 and ₹ 15,000 respectively. After preparing Profit and Loss Appropriation Account for the year ended 31st March, 2025, ₹ 36,000 and ₹ 24,000 were credited respectively to the current accounts of Sarita and Veena as their share of divisible profit. Prepare Current Accounts of Sarita and Veena.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Partners' Current Accounts

Dr.Cr.
ParticularsSarita (₹)Veena (₹)ParticularsSarita (₹)Veena (₹)
To Balance b/d-60,000By Balance b/d80,000-
To Drawings A/c ½20,00015,000By Salary A/c ½24,000-
To Balance c/d ½1,52,0003,000By Commission A/c ½-30,000
By Interest on Capital A/c ½32,00024,000
By Profit & Loss Appropriation A/c ½ (share of profit)36,00024,000
1,72,00078,0001,72,00078,000

[Note: No marks for Balance b/d]

Q139.2026 Main 67/3/1 · Q18(a)3 marks

Laxmi, Rani and Priya were partners in a firm sharing profits and losses in the ratio of 5 : 7 : 8. Their fixed capitals were ₹8,00,000; ₹7,00,000 and ₹5,00,000 respectively. The partnership deed provided interest on capital @ 9% per annum. For the year ending 31st March, 2025, interest on capital was provided @ 12% per annum.

Showing your workings clearly, pass a single adjustment entry to rectify the error.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Laxmi, Rani, and Priya
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
March 31
Laxmi’s Current A/c Dr.
To Priya’s Current A/c
(Interest on capital provided in excess by 3%, now rectified)
9,000

9,000

(1)

Working Note: Adjustment Table (2)

PartnersDr. (Interest on Capital @ 3% p.a.) (₹)Cr. (Profit in 5:7:8) (₹)Net Effect Dr. (₹)Net Effect Cr. (₹)
Laxmi24,00015,0009,000-
Rani21,00021,000--
Priya15,00024,000-9,000
60,00060,0009,0009,000

Alternative:

Statement of Adjustment

ParticularsLaxmi (₹)Ravi (₹)Priya (₹)Total (₹)
Amount to be taken back (excess Interest on Capital)(24,000)(21,000)(15,000)(60,000)
Amount to be given (Profit in 5:7:8)15,00021,00024,00060,000
Adjustment(9,000) Dr-9,000 Cr

(3 Marks)

Q140.2026 Main 67/3/1 · Q18(b)3 marks

Sukesh and Surbhi were partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st April, 2024, they admitted Suman, as a new partner for 1/5th share in the profits of the firm with a minimum guaranteed profit of ₹1,20,000. Any deficiency arising on that account will be borne by Sukesh. The net profit of the firm for the year ended 31st March, 2025 was ₹5,50,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Sukesh, Surbhi and Suman
Profit & Loss Appropriation A/c
for the year ended 31st March 2025

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Capital A/c (Profit):By P & L A/c (Net Profit) (½)5,50,000
Sukesh2,75,000(½)
Less: guarantee to Suman10,000(½)2,65,000
Surbhi1,65,000(½)1,65,000
Suman1,10,000(½)
Add: guarantee from Sukesh10,000(½)1,20,000
5,50,0005,50,000

(3 Marks)

Q141.2026 Main 67/4/1 · Q18(a)3 marks

Rohit, Ashish and Sameer entered into a partnership on 1st October, 2024 with capitals of ₹ 12,00,000; ₹ 6,00,000 and ₹ 6,00,000 respectively. They decided to share the profits and losses in the ratio of 3 : 1 : 1. Partners were entitled to interest on capital @ 5% per annum as per the provisions of the partnership deed.

Sameer was given a guarantee that his share of profit, after charging interest on capital, will not be less than ₹ 1,50,000 per annum. Any deficiency arising on that account shall be met by Rohit. The profit for the year ended 31st March, 2025 amounted to ₹ 5,60,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Rohit, Ashish and Sameer
Profit and Loss Appropriation A/c
for the year ended 31st March, 2025

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Interest on Capital: (1)
Rohit
Ashish
Sameer

30,000
15,000
15,000
60,000By Profit and Loss A/c
(Net profit) (½)
5,60,000
To Profit transferred to capital A/c: (1½)
Rohit
Ashish
Sameer

3,00,000
1,00,000
1,00,000
5,00,000
5,60,0005,60,000

= 3 marks

Q142.2026 Main 67/4/1 · Q18(b)3 marks

Tara, Dev and Ishaan were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Tara, Dev and Ishaan during the year ending 31st March, 2025 amounted to ₹ 30,000; ₹ 18,000 and ₹ 12,000 respectively. After the final accounts were prepared, it was discovered that interest on drawings was not taken into consideration. Give necessary adjusting journal entry to correct the omission. Show your workings clearly.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Tara, Dev and Ishaan
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2025
March 31
Ishaan’s Capital A/c ... Dr.
To Dev’s Capital A/c
(Adjustment of interest on drawing omitted being recorded) (1)
225

225

Working Note:

Table of Adjustment

Partner’s Capital A/cDr.Cr.Net Effect
Interest on Drawings (₹)Profits (4:3:1) (₹)Dr. (₹)Cr. (₹)
Tara1,5001,500--
Dev9001,125-225
Ishaan600375225-
3,0003,000225225

(2 marks for working note)

(Note: If an examinee has shown the correct working in any other form, full credit should be given)

1 + 2 = 3 marks

Q143.2026 Supp. 67/7/1 · Q173 marks

The Capital Accounts of Mala and Vaibhav stood at ₹ 3,00,000 and ₹ 2,00,000 respectively, after the necessary adjustments in respect of drawings and net profits for the year ended 31st March, 2025. It was later discovered that interest on drawings @ 6% p.a. was not taken into account while calculating the net profit. The drawings of the partners were : Mala ₹ 10,000 drawn at the beginning of each quarter and Vaibhav ₹ 10,000 drawn at the end of each half year. The profits for the year ended 31st March, 2025 amounted to ₹ 3,00,000. The profit sharing ratio of Mala and Vaibhav was 3 : 2.

Pass the necessary adjusting entry. Show your working clearly.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Mala and Vaibhav
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Mala’s Capital A/c  Dr.
    To Vaibhav’s Capital A/c
(Interest on drawings omitted, now rectified)
420

420

(1 mark)

Adjustment Table

PartnersDr. Interest on drawings (₹)Cr. Profits (₹)Net Effect
Dr. (₹)Cr. (₹)
Mala1,5001,080420-
Vaibhav300720-420
1,8001,800420420

(2 marks)

(Note: If an examinee has shown the correct working in any other form, full credit should be given)

1 + 2 = 3 marks

Q144.2025 Main 67/1/1 · Q18(a)3 marks

The firm of Amish, Nitish and Misha, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for some years. Misha wanted that she should get equal share in the profits with Amish and Nitish and she further wished that the change in the profit sharing ratio should come into effect retrospectively for the last three years. Amish and Nitish had agreement for this.

The profits for the last three years were :

YearProfit (₹)
2021 – 22₹ 1,15,000
2022 – 23₹ 1,24,000
2023 – 24₹ 2,11,000

Show adjustment of profits by means of a single adjustment journal entry. Show your working clearly.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Amish, Nitish and Misha — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Amish's Capital A/c ... Dr.
Nitish's Capital A/c ... Dr.
To Misha's Capital A/c
(Adjustment of profit for the last three years on account of change in profit sharing ratio)
30,000
30,000


60,000

(1½ marks)

Adjustment Table

PartnersDr. Profits (₹)Cr. Profits (₹)Net Effect
2:2:11:1:1Dr. (₹)Cr. (₹)
Amish1,80,0001,50,00030,000
Nitish1,80,0001,50,00030,000
Misha90,0001,50,00060,000
4,50,0004,50,00060,00060,000

(1½ marks)

(1½ + 1½ = 3 marks)

(If an examinee has shown the correct working in any other form, full credit should be given)

Q145.2025 Main 67/1/1 · Q18(b)3 marks

Vidhi, Manas and Ansh were partners sharing profits and losses in the ratio of 2 : 3 : 5. Ansh was given a guarantee that his share of profits in any given year would not be less than ₹ 1,20,000. Deficiency, if any, would be borne by Vidhi and Manas equally. Profits for the year ended 31st March, 2024 amounted to ₹ 2,00,000.

Pass necessary journal entries in the books of the firm for division of profits.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Vidhi, Manas and Ansh — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Mar. 31
Profit & Loss Appropriation A/c ... Dr.
To Vidhi's Capital A/c
To Manas's Capital A/c
To Ansh's Capital A/c
(Profit distributed among the partners in their profit sharing ratio)
2,00,000



40,000
60,000
1,00,000
”Vidhi's Capital A/c ... Dr.
Manas's Capital A/c ... Dr.
To Ansh's Capital A/c
(Deficiency for Ansh borne by Vidhi and Manas equally)
10,000
10,000


20,000

(1½ + 1½ = 3 marks)

Alternate Answer:

Books of Vidhi, Manas and Ansh — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Mar. 31
Profit & Loss Appropriation A/c ... Dr.
To Vidhi's Capital A/c
To Manas's Capital A/c
To Ansh's Capital A/c
(Profit distributed among the partners in their profit sharing ratio with guaranteed amount to Ansh)
2,00,000



30,000
50,000
1,20,000

(3 marks)

Q146.2025 Main 67/2/1 · Q20(a)3 marks

Aakash and Baadal entered into partnership on 1st October, 2023 with the capitals of ₹ 80,00,000 and ₹ 60,00,000 respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ 10% per annum as per the provisions of the partnership deed.

Baadal is given a guarantee that his share of profit, after charging interest on capital will not be less than ₹ 7,00,000 per annum.

Any deficiency arising on that account shall be met by Aakash. The profit of the firm for the year ended 31st March, 2024 amounted to ₹ 13,00,000.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Aakash and Baadal
Profit and Loss Appropriation A/c
for the year ended 31st March 2024

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Interest on Capital:By Profit and Loss A/c (Net Profit)13,00,000
Aakash 4,00,000 (½)
Baadal 3,00,000 (½)7,00,000
To Profit transferred to capital accounts:
Aakash 3,00,000 (½)
Less: Share of deficiency 50,000 (½)
2,50,000
Baadal 3,00,000 (½)
Add deficiency Received from Aakash 50,000 (½)
3,50,000
13,00,00013,00,000

(3 Marks)

Q147.2025 Main 67/2/1 · Q20(b)3 marks

Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of 5 : 3. The balance in their fixed capital accounts on 1st April, 2023 were : Parul ₹ 6,00,000 and Rajul ₹ 8,00,000. The partnership deed provided for allowing interest on capital at 12% per annum. The net profit of the firm for the year ended 31st March, 2024 was ₹ 1,26,000.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024. Show your working clearly.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Parul and Rajul
Profit and Loss Appropriation A/c
for the year ended 31st March 2024

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Interest on Capital:By Profit and Loss A/c (Net Profit) (½)1,26,000
Parul 54,000 (½)
Rajul 72,000 (½)1,26,000
1,26,0001,26,000

(1½ marks)

Interest on Capital @12% p.a.
Parul: ₹6,00,000 x 12/100 = ₹72,000
Rajul: ₹8,00,000 x 12/100 = ₹96,000
Ratio of Interest on Capital 3:4

Net Profit ₹1,26,000
Interest on Capital in the ratio 3:4 will be:
Parul: ₹1,26,000 x 3/7 = ₹54,000
Rajul: ₹1,26,000 x 4/7 = ₹72,000

(1½ marks; 1½ + 1½ = 3 marks)

Q148.2025 Main 67/4/1 · Q20(a)3 marks

Abhay and Sujoy entered into partnership on 1st April, 2024 with capitals of ₹ 80,00,000 and ₹ 60,00,000 respectively. The partners decided to share profits in the ratio of their capital contribution. They withdrew ₹ 6,00,000 and ₹ 4,00,000 respectively during the year. The partners were charged interest on drawings @ 10% per annum as per the provisions of the partnership deed. Abhay’s share of profit was guaranteed by Sujoy at a minimum of ₹ 3,50,000 per annum.

The profit of the firm for the year ended 31st March, 2024 amounted to ₹ 6,50,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2024.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Profit and Loss Appropriation Account
for the year ended 31st March 2024

Dr. ParticularsAmount (₹)ParticularsCr. Amount (₹)
To Profit transferred to
  Abhay’s Capital 4,00,000
  Sujoy’s Capital 3,00,000


7,00,000
By P&L A/c
  (Net Profit)
By Interest on Drawings
  Abhay 30,000
  Sujoy 20,000

6,50,000


50,000
7,00,0007,00,000

(1 x 3) = 3 marks

Q149.2025 Main 67/4/1 · Q20(b)3 marks

Sonia and Shruti were partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st April, 2023 the balance in their fixed capital accounts were ₹ 25,00,000 and ₹ 15,00,000 respectively. The profit of the firm for the year ended 31st March, 2024 was ₹ 24,00,000. Calculate their share of profit if :

  1. the partnership deed is silent as to the payment of interest on capital.
  2. the partnership deed provides for interest on capital @ 10% per annum.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(i)
Sonia’s share of profit = 5/8 x 24,00,000 = ₹ 15,00,000
Shruti’s share of profit = 3/8 x 24,00,000 = ₹ 9,00,000
(Note – No Interest on Capital will be provided) (1½)

(ii)
Sonia’s share of profit = 5/8 x (24,00,000 – 4,00,000) = ₹ 12,50,000
Shruti’s share of profit = 3/8 x (24,00,000 – 4,00,000) = ₹ 7,50,000 (1½)

Working :
Sonia’s Interest on Capital = 10/100 x 25,00,000 = ₹ 2,50,000
Shruti’s Interest on Capital = 10/100 x 15,00,000 = ₹ 1,50,000
₹ 4,00,000

Note: Full credit to be given if a student has calculated share of profit by preparing P/L Appropriation A/c

(1½) + (1½) = 3 marks

Q150.2025 Main 67/5/1 · Q173 marks

Suman and Lata were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2023, their capital accounts showed balances of ₹ 1,50,000 and ₹ 2,00,000, respectively. The partnership deed provided for interest on capital @ 8% p.a. Show the treatment of interest on capital in the following cases if :

  1. The firm earned a profit of ₹ 14,000 for the year ended 31st March, 2024.
  2. The firm earned a profit of ₹ 60,000 for the year ended 31st March, 2024.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(i)

Profit & Loss Appropriation A/c for the year ended 31st March, 2024

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
Interest on Capital:
Suman
Lata (1½)

6,000
8,000


14,000
P & L A/c (Net Profit)14,000
14,00014,000

(ii)

Profit & Loss Appropriation A/c for the year ended 31st March, 2024

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
Interest on Capital:
Suman
Lata (1½)

12,000
16,000


28,000
P & L A/c (Net Profit)60,000
Profit transferred to capital accounts:
Suman
Lata

19,200
12,800


32,000
60,00060,000

(1½ x 2 = 3 marks)

Alternatively,

(i) As the profit for the year is ₹14,000, which is less than the amount of interest on capital due to partners, i.e. ₹28,000 (₹12000+₹16000), therefore, interest will be paid to the extent of available profits i.e. ₹14,000 in the ratio of interest on capital (3:4).
Suman’s interest on capital = 14000 x 3/7 = ₹6,000
Lata’s interest on capital = 14000 x 4/7 = ₹8,000

(ii) As the profit for the year is ₹60,000, which is sufficient to pay the amount of interest on capital due to partners, therefore, Full interest will be paid.
Suman’s interest on capital = ₹12,000
Lata’s interest on capital = ₹16,000

(1½ x 2 = 3 marks)

Q151.2025 Main 67/6/1 · Q173 marks

On 1st April, 2023, Jain and Gupta started a partnership firm with fixed capitals of ₹15,00,000 and ₹12,00,000 respectively. They decided to share profits and losses in the ratio of 3 : 2. On 1st July, 2023, Jain withdrew ₹1,00,000 from this capital and Gupta introduced further capital of ₹2,00,000. Partnership deed provided for interest on capital @ 10% p.a. During the year Jain withdrew ₹50,000 and Gupta withdrew ₹60,000 for their personal use. Interest on drawings was to be charged @ 18% p.a. After preparing Profit and Loss Appropriation Account for the year ended 31st March, 2024, ₹72,000 and ₹48,000 were credited respectively to the current accounts of Jain and Gupta as their share of divisible profit.

Prepare Current Accounts of Jain and Gupta.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Partners' Current A/c

Dr.Cr.
ParticularsJain (₹)Gupta (₹)ParticularsJain (₹)Gupta (₹)
To Drawings A/c (½)50,00060,000By Interest on capital A/c (1)1,42,5001,35,000
To Interest on drawings A/c (½)4,5005,400By Profit & Loss Appropriation A/c (½)72,00048,000
To balance c/d (½)1,60,0001,17,600
2,14,5001,83,0002,14,5001,83,000

(3 marks)

Q152.2025 Main 67/6/1 · Q18(a)3 marks

Aman, Raj and Suresh were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 8. Suresh was guaranteed a minimum profit of ₹5,00,000 per year. Any deficiency on this account was to be borne by Aman and Raj equally. The net profit of the firm for the year ended 31st March, 2024 was ₹8,00,000.

Prepare Profit and Loss Appropriation Account of Aman, Raj and Suresh for the year ended 31st March, 2024.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Aman, Raj and Suresh
Profit and Loss Appropriation A/c
For the year ending 31 March, 2024

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Profit transferred to:
Aman's capital A/c 2,50,000
Less: Deficiency borne (50,000)


2,00,000 (½)
By Profit and Loss A/c (Net Profit) (1)8,00,000
Raj's capital A/c 1,50,000
Less: Deficiency borne (50,000)

1,00,000 (½)
Suresh's capital A/c 4,00,000
Add: Deficiency recovered from
Aman 50,000
Raj 50,000



5,00,000 (1)
8,00,0008,00,000

(3 marks)

Q153.2025 Main 67/6/1 · Q18(b)3 marks

Jay and Vijay were partners in a firm sharing profits and losses in the ratio of 7 : 3. Their respective fixed capitals were ₹9,00,000 and ₹7,00,000. The partnership deed provided for interest on capital @ 8% per annum. After preparing the accounts for the year ended 31st March, 2024, it was discovered that interest on capital was allowed @ 9% per annum.

Showing your workings clearly, pass the necessary journal entry to rectify the error.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Jay and Vijay
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2024
April 1
Vijay's Current A/c ... Dr.
To Jay's Current A/c
(Rectification entry for interest on capital provided at 9% instead of 8%)
2,200
2,200
1½

Working notes:

Adjustment Table

ParticularsJay (₹)Vijay (₹)Total (₹)
1% Excess Interest on capital taken back9,000 Dr.7,000 Dr.16,000 Cr.
Profit of ₹16,000 distributed in the profit sharing ratio 7:311,200 Cr.4,800 Cr.16,000 Dr.
Net Effect2,200 Cr.2,200 Dr.------

(1½ marks for working notes; 1½ + 1½ = 3 marks)

(Note: Full credit is to be given if an examinee has shown working notes correctly in any other manner)

Q154.2024 Main 67/1/1 · Q20(a)3 marks

Mohan, Suhaan and Adit were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their fixed capitals were : ₹2,00,000, ₹1,00,000 and ₹1,00,000 respectively. For the year ended 31st March, 2023, interest on capital was credited to their accounts @ 8% p.a. instead of 5% p.a.

Pass necessary adjusting journal entry. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the Books of Mohan, Suhaan and Adit
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Adit’s Current A/c ... Dr.
  To Suhaan’s Current A/c
(Adjustment entry for Interest on Capital credited at a higher rate)
1,000
1,000

(1)

Working Notes:
Statement of Adjustment

ParticularsMohan ₹Suhaan ₹Adit ₹
Interest on capital to be debited(6,000)(3,000)(3,000)
Profit to be credited now (₹12,000 in 3:2:1)6,0004,0002,000
Adjustment-1,000
Cr.
(1,000)
Dr.

(2)

(NOTE: Full credit be given if working notes are prepared in any other form)

= 3 marks

Q155.2024 Main 67/1/1 · Q20(b)3 marks

Manoj and Nitin were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2023, the balances in their capital accounts after making adjustments for profits and drawings were ₹90,000 and ₹80,000 respectively. The net profit for the year ended 31st March, 2023 amounted to ₹30,000. During the year Manoj withdrew ₹40,000 and Nitin withdrew ₹20,000. Subsequently, it was noticed that Interest on Capital @ 10% p.a. was not provided to the partners. Also Interest on Drawings to Manoj ₹3,000 and to Nitin ₹2,000 was not charged.

Pass necessary adjusting journal entry. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the Books of Manoj and Nitin
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Manoj’s Capital A/c ... Dr.
  To Nitin’s Capital A/c
(Adjustment entry for omission of Interest on Capital and Interest on Drawings)
2,000
2,000

(1)

Working Notes:
Calculation of Opening Capital

ParticularsManoj ₹Nitin ₹
Closing Capital90,00080,000
Add: Drawings40,00020,000
Less: Profit (₹30,000 in 2:1)(20,000)(10,000)
Opening Capital1,10,00090,000

(½)

Statement of Adjustment

ParticularsManoj ₹Nitin ₹
Amount to be credited
 Interest on Capital11,0009,000
 Less: Interest on Drawings(3,000)(2,000)
8,0007,000
Amount to be debited now (₹15,000 in 2:1)(10,000)(5,000)
Adjustment(2,000)
Dr
2,000
Cr

(1½)

(NOTE: Full credit be given if working notes are prepared in any other form)

= 3 marks

Q156.2024 Main 67/2/1 · Q17(b)3 marks

Chaman, Burman and Aman were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Aman was guaranteed a minimum amount of ₹ 60,000 as his share of profit every year. The net profit for the year ended 31st March, 2023 amounted to ₹ 1,20,000.

Pass necessary journal entries in the books of the firm showing the distribution of profit amongst the partners.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Chaman, Burman and Aman — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2023
March 31
(i) Profit & Loss A/c Dr.
To Profit & Loss Appropriation A/c
(Net profit transferred to Profit & Loss Appropriation Account) [1]
1,20,000

1,20,000
2023
March 31
(ii) Profit & Loss Appropriation A/c Dr.
To Chaman’s Capital A/c
To Burman’s Capital A/c
To Aman’s Capital A/c
(Distribution of profit among partners in the ratio of 3:2:1) [1]
1,20,000



60,000
40,000
20,000
2023
March 31
(iii) Chaman’s Capital A/c Dr.
Burman’s Capital A/c Dr.
To Aman’s Capital A/c
(Deficiency of Aman, met by Chaman and Burman in the ratio of 3:2) [1]
24,000
16,000


40,000

Alternate combined entry for (ii) & (iii)

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Profit & Loss Appropriation A/c Dr.
To Chaman’s Capital A/c
To Burman’s Capital A/c
To Aman’s Capital A/c
(Distribution of profit among partners after adjustment for guarantee)
1,20,000



36,000
24,000
60,000

= 3 marks

Q157.2024 Main 67/3/1 · Q20(a)3 marks

Misha and Prisha were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022, their capital accounts showed balances of ₹ 50,000 and ₹ 30,000 respectively. During the year, Misha withdrew ₹ 12,900 while Prisha withdrew ₹ 9,600. They were allowed interest on capital @ 10% p.a. Interest on drawings of ₹ 660 was charged on Misha’s drawings and ₹ 540 on Prisha’s drawings. Prisha had advanced a loan of ₹ 20,000 to the firm on 1st August, 2022. The net profit for the year ended 31st March, 2023 amounted to ₹ 22,600.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2023.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Profit and Loss Appropriation Account for the year ended 31st March 2023

Dr. ParticularsAmount (₹)ParticularsAmount (₹) Cr.
To Interest on Capital (1)
Misha’s Capital 5,000
Prisha’s Capital 3,000
8,000By P&L A/c (Net Profit) (1/2)22,600
To Profit transferred to (1)
Misha’s Capital 9,480
Prisha’s Capital 6,320
15,800By Interest on Drawings (1/2)
Misha’s Capital 660
Prisha’s Capital 540
1,200
23,80023,800

Note - Interest on Loan is not considered as NET PROFIT is given.

3 marks

Q158.2024 Main 67/3/1 · Q20(b)3 marks

On 31st March, 2023, the capitals of Raghav and Diya stood at ₹ 4,00,000 and ₹ 3,00,000 respectively, after the necessary adjustment in respect of drawings and net profit. Subsequently, it was discovered that interest on capital @ 10% p.a had been omitted. The Net Profit for the year ended 31st March, 2023 amounted to ₹ 1,00,000.

During the year ended 31st March, 2023, Raghav’s drawings were ₹ 2,000 drawn at the beginning of each month, while Diya’s drawings were ₹ 3,000 drawn at the beginning of each quarter. Pass the necessary adjustment entry.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Diya’s Capital A/c Dr.
To Raghav’s Capital A/c
(Omission of interest on capital rectified.)
5,600
5,600
(1½)

Working Notes -

Opening Capital = Closing Capital + Drawings – Profit

For Raghav, Opening Capital = 4,00,000 + 24,000 – 50,000 = ₹ 3,74,000

For Diya, Opening Capital = 3,00,000 + 12,000 – 50,000 = ₹ 2,62,000

Adjustment Table (1½)

ParticularsRaghavDiya
Dr (₹)Cr (₹)Dr (₹)Cr (₹)
Interest on Capital37,40026,200
Loss31,80031,800
Net Effect5,6005,600

Note – If an examinee has passed the correct journal entry without showing the working notes, full credit is to be given.

= 3 marks

Q159.2024 Main 67/4/1 · Q203 marks

Atul and Gita were partners in a firm sharing profits and losses in the ratio of 3:2. Their fixed capitals were ₹ 4,00,000 and ₹ 2,00,000 respectively. After the accounts for the year were prepared, it was noticed that interest on capital @ 6% p.a., as provided in the partnership deed, was not credited to the capital accounts of partners before distribution of profits.

Pass the necessary adjusting Journal entry. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Atul and Gita
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Gita’s Current A/c ... Dr
To Atul’s Current A/c
(Adjustment for omission of Interest on Capital) (1)
2,400
2,400

Note:- If an examinee has written Capital A/c instead of Current A/c, full credit is to be given.

Working Notes:-

Adjustment Table

ParticularsAtulGita
Dr (₹)Cr (₹)Dr (₹)Cr (₹)
Interest on Capital to be credited24,00012,000
Loss to be debited in the ratio of 3:221,60014,400
Net Effect2,4002,400

(2) (= 3 Marks)

Note:- Full credit to be given if working notes are given in any other form.

Q160.2024 Main 67/5/1 · Q173 marks

Anand, Ridhi and Shyam were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their fixed capitals were ₹ 1,00,000, ₹ 60,000 and ₹ 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.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Anand, Ridhi and Shyam
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Anand’s Current A/c Dr.4001½
To Ridhi’s Current A/c400
(Excess Interest allowed on capital, now rectified)

Note: If an examinee has written Capital Account instead of Current Account, full credit is to be given

Working Notes:

Table showing adjustment

PartnersDr. Interest on Capital @2% (₹)Cr. Profits (₹)Net Effect
Dr. (₹)Cr. (₹)
Anand2,0001,600400-
Ridhi1,2001,600-400
Shyam800800--
4,0004,000400400

(1½ marks for the table; total = 3 marks)

Note: In case an examinee has given only the journal entry correctly and has not shown the working, full credit should be given

Q161.2024 Supp. 67/S/1 · Q20(a)3 marks

Jatin, Keshav and Lalit were partners in a firm with fixed capitals of ₹ 1,20,000, ₹ 1,00,000 and ₹ 80,000 respectively. As per the partnership deed, there was a provision for allowing interest on capitals @ 10% p.a., but entries for the same had not been made for the last two years.

The profit sharing ratio during the last two years was as follows :

YearJatinKeshavLalit
2021 – 22532
2022 – 23111

Pass an adjustment entry of the beginning of the third year, i.e., on 1st April, 2023.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Jatin, Keshav and Lalit
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2023
April 1
Jatin’s Current A/c Dr.
    To Keshav’s Current A/c
(Omission of Interest on Capital, now rectified)
1,000

1,000
1

Working Notes:-

Adjustment Table

ParticularsJatinKeshavLalit
Dr. (₹)Cr. (₹)Dr. (₹)Cr. (₹)Dr. (₹)Cr. (₹)
Interest on Capital to be credited
2021-22
2022-23

12,000
12,000

10,000
10,000

8,000
8,000
Profits of ₹30,000 reversed in ratio of 5:3:2 for 2021-2215,0009,0006,000
Profits of ₹30,000 reversed in ratio of 1:1:1 for 2022-2310,00010,00010,000
Net Effect1,0001,000

(2 marks for working notes)

Note:- Full credit to be given if working notes are given in any other form.

=3 Marks

Q162.2024 Supp. 67/S/1 · Q20(b)3 marks

Meera, Neena and Ojas were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Meera, Neena and Ojas during the year ended 31st March, 2023 amounted to ₹ 60,000, ₹ 50,000 and ₹ 40,000 respectively. After the final accounts had been prepared, it was discovered that interest on drawings had not been taking into consideration.

Pass the necessary adjustment entry.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Meera, Neena and Ojas
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2023
March 31
Neena’s Capital A/c Dr.
Ojas’s Capital A/c Dr.
    To Meera’s Capital A/c
(Omission of Interest on Drawings, now rectified)
250
500


750
1

Working Notes:-

Adjustment Table

ParticularsMeeraNeenaOjas
Dr. (₹)Cr. (₹)Dr. (₹)Cr. (₹)Dr. (₹)Cr. (₹)
Interest on Drawings to be debited3,0002,5002,000
Profits of ₹7,500 credited in ratio of 5:3:23,7502,2501,500
Net Effect750250500

(2 marks for working notes)

Note:- Full credit to be given if working notes are given in any other form.

=3 Marks

Q163.2023 Main 67/1/1 · Q20(b)3 marks

Rakshit and Malik are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st April, 2021, their capitals were ₹ 1,20,000 and ₹ 80,000 respectively. On 1st December, 2021, they decided that the total capital of the firm should be ₹ 3,00,000 to be contributed by them in the ratio of 2 : 1.

According to the partnership deed, interest on capital is allowed to the partners @ 6% p.a.

Calculate interest on capital to be allowed for the year ending 31st March, 2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Calculation of Interest on Capital

Particulars₹Marks
Rakshit
Interest on Capital from 1 April 2021 to 30 Nov. 2021
6/100 × 8/12 × 1,20,000
4,8001½
Interest on Capital from 1 Dec. 2021 to 31 March 2022
6/100 × 4/12 × 2,00,000
4,000
Interest on Capital8,800
Malik
Interest on Capital from 1 April 2021 to 30 Nov. 2021
6/100 × 8/12 × 80,000
3,2001½
Interest on Capital from 1 Dec. 2021 to 31 March 2022
6/100 × 4/12 × 1,00,000
2,000
Interest on Capital5,200

(1½ + 1½ = 3 marks)

(Note: Full credit to be given for workings shown correctly in any other manner)

Q164.2023 Main 67/2/1 · Q18(a)3 marks

Mohan, Sohan and Suresh were partners in a firm sharing profits in the ratio of 2:2:1. Suresh was guaranteed a profit of ₹70,000. Any deficiency on account of guarantee to Suresh was to be borne by Mohan and Sohan in 3:2 ratio. The profit of the firm for the year ended 31.3.2022 amounted to ₹2,00,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31.3.2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Profit and Loss Appropriation A/c
for the year ended 31.3.2022

Dr
Particulars
Amount (₹)ParticularsCr
Amount (₹)
To Profit transferred to Partners' Capital A/c's:
Mohan 80,000
Less: Guarantee to Suresh (18,000) [½]


62,000
By Profit & Loss A/c (Net Profit) [½]2,00,000
Sohan 80,000
Less: Guarantee to Suresh (12,000) [½]

68,000
Suresh 40,000
Add: Guarantee from Mohan 18,000
Add: Guarantee from Sohan 12,000 [1½]


70,000
2,00,0002,00,000

(3 Marks)

Q165.2023 Main 67/3/1 · Q19(a)3 marks

Raman, Manan and Naman were partners sharing profit in the ratio of 2 : 1 : 1. Raman withdrew ₹ 3,000 every month and Manan withdrew ₹ 4,000 every month. Interest on drawings @ 6% p.a. was charged whereas the partnership deed was silent about interest on drawings.

Showing your working clearly, pass the necessary adjustment entry to rectify the error.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Books of Raman, Manan and Naman — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Raman’s Capital A/c ... Dr.
Naman’s Capital A/c ... Dr.
  To Manan’s Capital A/c
(Adjustment entry for Interest on Drawings wrongly charged) (1)
180
630


810

Working Notes:

ParticularsRaman ₹Manan ₹Naman ₹
Interest on Drawings, now credited1,0801,440-
Loss to be debited (₹2,520 in 2:1:1)(1,260)(630)(630)
Adjustment180 Dr810 Cr630 Dr

(2) = 3 marks

(NOTE: Full credit be given if working notes are prepared in any other form)

Q166.2023 Main 67/3/1 · Q19(b)3 marks

Arun and Barun were partners sharing profits in the ratio of 3 : 2. Their capitals were ₹ 50,000 and ₹ 30,000 respectively. Partnership deed provided for interest on capital @ 6% p.a. to Arun and Barun and quarterly salary of ₹ 1,000 to Barun. Arun had given a loan of ₹ 1,00,000 on 1st October, 2021 to the firm without any agreement about interest. For the year 2021 – 22, the profits earned were ₹ 26,800.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Profit & Loss Appropriation A/c for the year ended on March 31, 2022

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Interest on Capital A/c
  Arun – 3,000
  Barun – 1,800 (1)
4,800By P & L A/c
(₹26,800 – ₹3,000) (½)
23,800
To Salary A/c
  Barun (½)
4,000
To Profit transferred to Partners’ Capital A/c:
  Arun – 9,000
  Barun – 6,000 (1)
15,000
23,80023,800

= 3 marks

Q167.2023 Main 67/4/1 · Q18(a)3 marks

Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of 6 : 4 : 1. Kamolika is guaranteed a minimum amount of ₹ 3,00,000 as her share in profits. The firm earned a net profit of ₹ 22,00,000 for the year ended 31st March 2022.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Profit & Loss Appropriation A/c
for the year ended 31st March 2022

Dr.
Particulars
Amount (₹)ParticularsCr.
Amount (₹)
To Profit transferred to Partners’ Capital A/c:

Monika 12,00,000
Less: Guarantee to Kamolika 60,000



11,40,000 (½)
By P & L A/c (Net Profit) (½)22,00,000
Bhoomika 8,00,000
Less: Guarantee to Kamolika 40,000

7,60,000 (½)
Kamolika 2,00,000
Add: Guarantee from Monika 60,000
Add: Guarantee from Bhoomika 40,000


3,00,000 (1½)
22,00,00022,00,000

3 marks

Q168.2023 Main 67/4/1 · Q18(b)3 marks

Ananya, Bhavi and Chandni were partners in a firm with capitals of ₹ 3,00,000, ₹ 2,00,000 and ₹ 1,00,000 respectively.

According to the provisions of the partnership deed :

  1. Ananya and Chandni were each entitled to a monthly salary of ₹ 1,500.
  2. Bhavi was entitled to a salary of ₹ 4,000 per annum.

The profit for the year ended 31st March, 2022, ₹ 80,000 was divided between the partners in their profit sharing ratio of 3 : 3 : 2 without providing for the above adjustments.

Pass the necessary adjustment entry to rectify the above omissions in the books of the firm. Show your working notes clearly.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Ananya, Bhavi and Chandni
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2022
March 31
Bhavi’s Capital A/c   Dr.
   To Ananya’s Capital A/c
   To Chandani’s Capital A/c
(Adjustment entry passed for omission of salary to partners)
[1 mark]
11,000


3,000
8,000

Table Showing Adjustments [2 marks]

ParticularsAnanya(₹)Bhavi(₹)Chandni(₹)Firm(₹)
Salary to be credited18,0004,00018,00040,000
₹40,000 to be debited in 3:3:215,00015,00010,00040,000
Difference3,00011,0008,000-
Cr.Dr.Cr.-

1+2=3 marks

Note: Full credit to be given to the examinees if the working has been done in some other format or through P & L Adjustment A/c.

Q169.2023 Main 67/4/1 · Q203 marks

A, B and C were partners in a firm sharing profits and losses equally. Their respective capitals were ₹ 10,00,000, ₹ 9,00,000 and ₹ 8,00,000. The partnership deed provided for the following :

  1. Interest on capital @ 9% per annum.
  2. Interest on drawings @ 12% per annum.
  3. Interest on partners loan to the firm @ 10% per annum.

During the year, B had withdrawn ₹ 20,000 for his personal use. On 30.9.2021, A had given a loan of ₹ 70,000 to the firm.

Pass the necessary journal entries in the books of the firm for the following for the year ended 31st March, 2022 :

  1. Allowing interest on C’s Capital.
  2. Providing interest on A’s Loan.
  3. Charging interest on B’s Drawings.

Also give transfer entries in the Profit and Loss Account/Profit and Loss Appropriation Account, as the case may be.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of A, B and C
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)(a)
Interest on capital A/c   Dr.
   To C’s Capital A/c
(Interest on capital provided to C @ 9% p.a.)

72,000

72,000
(i)(b)
Profit & Loss Appropriation A/c   Dr.
   To Interest on capital A/c
(Interest on capital transferred to Profit & Loss Appropriation Account)

72,000

72,000
(ii)(a)
Interest on A’s Loan A/c   Dr.
   To A’s Loan A/c
(Interest on Loan provided to A @ 10% p.a.)

3,500

3,500
(ii)(b)
Profit & Loss A/c   Dr.
   To Interest on A’s Loan A/c
(Interest on Loan transferred to Profit & Loss Account)

3,500

3,500
(iii)(a)
B’s Drawings A/c / B’s Capital   Dr.
   To Interest on B’s Drawings A/c
(Interest on drawings charged from B @ 12% p.a.)

1,200

1,200
(iii)(b)
Interest on B’s Drawings A/c   Dr.
   To Profit & Loss Appropriation A/c
(Interest on Drawings transferred to Profit & Loss Appropriation Account)

1,200

1,200

½X6 =3 marks

Q170.2023 Main 67/5/1 · Q18(a)3 marks

Asha, Disha and Raghav were partners in a firm sharing profits in the ratio of 2 : 3 : 1. According to the partnership agreement, Raghav was guaranteed an amount of ₹ 40,000 as his share of profits. The net profit for the year ended 31st March, 2022 amounted to ₹ 1,20,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Profit and Loss Appropriation Account
for the year ended 31st March 2022

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Profit transferred to Partners’ Capital A/cBy P&L A/c (Net Profit) (½)1,20,000
Asha
(-) guarantee to Raghav
40,000
8,000
32,000 (½)
Disha
(-) guarantee to Raghav
60,000
12,000
48,000 (½)
Raghav
(+) guarantee from Asha
(+) guarantee from Disha
20,000
8,000
12,000
40,000 (1½)
1,20,0001,20,000

(3 marks)

Q171.2023 Main 67/5/1 · Q18(b)3 marks

Akhil and Nikhil were partners sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 1,00,000 and ₹ 80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary of ₹ 9,200. During the year 2021-22, the net profit prior to the calculation of interest on capital but after charging Nikhil’s salary amounted to ₹ 1,20,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ending 31st March, 2022.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Profit and Loss Appropriation Account
for the year ended 31st March 2022

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Salary
Nikhil’s Current A/c (½)

9,200

9,200
By P&L A/c
Net Profit
(+) Nikhil’s Salary (½)

1,20,000
9,200


1,29,200
To Interest on Capital
Akhil’s Current A/c
Nikhil’s Current A/c (1)

6,000
4,800


10,800
To Profit transferred to Partners’ Current A/c
Akhil
Nikhil (1)

65,520
43,680


1,09,200
1,29,2001,29,200

(3 marks)

Q172.2023 Supp. 67/C/1 · Q183 marks

On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of ₹ 6,00,000, ₹ 6,00,000 and ₹ 3,00,000 respectively. The partnership deed provided for the following :

  1. Interest on capital @ 10% per annum.
  2. Interest on drawings @ 12% per annum.
  3. An annual salary of ₹ 1,20,000 to Avi.
  4. Profits and losses were to be shared in the ratio of their capitals.

The net profit of the firm for the year ended 31.03.2023 was ₹ 3,08,000. Interest on partners’ drawings was Ravi ₹ 4,800, Kavi ₹ 4,200 and Avi ₹ 3,000.

Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Profit and Loss Appropriation A/c for the year ended 31.3.2023

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Partners’ Current A/c’s-
Interest on capital [½]
Ravi 60,000
Kavi 60,000
Avi 30,000
1,50,000By Profit & Loss A/c
(Net Profit) [½]
3,08,000
To Avi’s Current A/c’s-
Salary [½]
1,20,000By Partners’ Current A/c’s-
Interest on drawings [½]
Ravi 4,800
Kavi 4,200
Avi 3,000
12,000
To Partners’ Current A/c’s-
Divisible Profit [1]
Ravi 20,000
Kavi 20,000
Avi 10,000
50,000
3,20,0003,20,000

3 marks

Q173.2023 Supp. 67/C/1 · Q193 marks

P and Q were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 01.04.2022, they admitted R as a new partner for 1/10th share of profits with a guaranteed minimum of ₹ 50,000. P and Q continued to share profits as before but agreed to share any deficiency on account of guarantee to R in the ratio of 3 : 2. The net profit of the firm for the year ended 31.03.2023 was ₹ 3,00,000.

Pass necessary journal entries in the books of P and Q for the above transactions.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of P, Q and R

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2022
Apr 1
Profit & Loss A/c Dr.3,00,000
To Profit & Loss Appropriation A/c3,00,000
(Being profit transferred from Profit & Loss A/c to Profit & Loss Appropriation A/c) [1]
”Profit & Loss Appropriation A/c Dr.3,00,000
To P’s Capital A/c1,80,000
To Q’s Capital A/c90,000
To R’s Capital A/c30,000
(Being Net profit distributed among the partners) [1]
”P’s Capital A/c12,000
Q’s Capital A/c8,000
To R’s Capital A/c20,000
(Being adjustment of guaranteed amount to R) [1]

= 3 marks

Q174.2023 Supp. 67/C/1 · Q20(b)3 marks

Sharma and Verma were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 14,00,000 and ₹ 10,00,000 respectively. The partnership deed provided for the following :

  1. Interest on capital @ 10% per annum.
  2. Interest on drawings @ 12% per annum.

During the year ended 31.03.2023, Sharma withdrew ₹ 2,00,000 and Verma withdrew ₹ 1,00,000. After preparing the accounts for the year ended 31.03.2023, it was realised that interest on capital was not allowed and interest on drawings was not charged.

Showing your working notes clearly pass necessary journal entries in the books of the firm to rectify the above error.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of Sharma and Verma

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
P & L Adjustment A/c Dr.2,40,000
To Sharma’s Current A/c1,40,000
To Verma’s Current A/c1,00,000
(Interest on Capital transferred to P & L Adjustment A/c) [1]
Sharma’s Current A/c Dr.12,000
Verma’s Current A/c Dr.6,000
To P & L Adjustment A/c18,000
(Interest on Drawings transferred to P & L Adjustment A/c) [1]
Sharma’s Current A/c Dr.1,33,200
Verma’s Current A/c Dr.88,800
To P & L Adjustment A/c2,22,000
(Loss on adjustment transferred to Partners’ Capital accounts) [1]

= 3 marks

Alternative Answer:

Books of Sharma and Verma

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Sharma’s Current A/c Dr.5,200
To Verma’s Current A/c5,200
(Being Interest on capital and Interest on drawings omitted, now rectified) [1]

+

Working Notes:

ParticularsCr. Interest on Capital (₹)Dr Interest on Drawings (₹)Dr. Profits (₹)Net Effect (₹)
Dr.Cr.
Sharma1,40,00012,0001,33,2005,200-
Verma1,00,0006,00088,800-5,200
2,40,00018,0002,22,0005,2005,200

2 = 3 marks

Q175.SQP 2026-27 · Q183 marks

B, C and D are partners sharing profits in the ratio of 1:1:1. As per the partnership deed salary is allowed to the partners as follows:

  • B is entitled to a salary of ₹ 2,000 per month.
  • C is entitled to salary of ₹ 16,000 p.a.
  • D is entitled to a salary of ₹ 4,000 per quarter.

Amit, an employee of the firm was entitled to a salary of ₹ 5,000 on half yearly basis which was omitted to be provided.

Calculate the amount of profits to be given to each partner by way of appropriation in each of the following cases, when the profit/loss before the above adjustments is:

Case 1. Profit of ₹ 72,000
Case 2. Profit of ₹ 45,000
Case 3. Loss of ₹ 20,000

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Annual Salary of Each Partner
B (₹2,000 per month) = 2,000×12= ₹24,000
C = ₹16,000 per annum
D (₹4,000 per quarter) = 4,000×4= ₹16,000
Total Salary = 24,000+16,000+16,000= ₹56,000
Profit-sharing ratio = 1:1:1

Case 1: Net Profit = ₹72,000 - ₹10,000 (Salary to employee)
Profit > Total Salary (₹56,000)
Remaining Profit:
62,000−56,000 = 6,000
This ₹6,000 is divided equally:
6,000÷3 = ₹ 2,000 each

Case 2: Net Profit 35,000 (45,000-10,000) < Total Salary (₹56,000)
When profit is insufficient, available profit is divided in the ratio of actual appropriations which in the given case is 24,000:16,000:16,000, i.e. 3:2:2
So ₹35,000 will be divided in 3:2:2
B’s share= 35,000*3/7= ₹ 15,000
C’s share= 35,000*2/7= ₹ 10,000
D’s share= 35,000*2/7= ₹ 10,000

Case 3: Net Loss = ₹20,000+10,000= ₹ 30,000
In case of loss, no salary is allowed.
Loss is shared equally.
30,000÷3 = ₹ 10,000 each

Q176.2026 Main 67/5/1 · Q22(a)4 marks

Jain and Gupta were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 1st April, 2024, Agarwal was admitted as a new partner for 1/5th share in the profits of the firm with a minimum guaranteed amount of ₹75,000. Any deficiency arising out of this account will be borne by Jain and Gupta in the ratio of 1 : 3. During the year ended 31st March, 2025, the firm earned a net profit of ₹3,00,000.

Prepare Profit and Loss Appropriation Account of Jain, Gupta and Agarwal for the year ended 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Jain, Gupta and Agarwal
Profit and Loss Appropriation A/c
for the year ending 31 March 2025

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Partners’ Capital A/cs:
(for share of profit)
By Profit and Loss A/c
(Net Profit) [½]
3,00,000
Jain1,80,000
Less: Deficiency(3750)1,76,250 [1]
Gupta60,000
Less: Deficiency(11,250)48,750 [1]
Aggarwal60,000
Add: Deficiency recovered from: [½]
Jain3,750
Gupta11,25075,000 [1]
3,00,0003,00,000

(4 marks)

Q177.SQP 2025-26 · Q224 marks

Amit, Sumit and Pulkit were partners sharing Profit &Loss in the ratio 5:3:2. Their Capitals were ₹ 8,00,000; ₹ 7,00,000 and ₹ 5,00,000 respectively. According to Partnership Deed:-

  1. Interest on Capital @ 10% p.a.
  2. Salary to Amit ₹ 10,000 p.m and Pulkit ₹ 15,000 per quarter.
  3. Commission to Sumit ₹ 70,000.
  4. Sumit was being guaranteed that his share of profits will not be less than ₹ 65,000. Deficiency if any will be borne by Amit and Pulkit equally.

Ignoring the above terms the profits of ₹ 6,00,000, for the year ended March 31, 2025 were divided equally between partners. You are required to pass necessary adjustment entry. Show your workings clearly.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
Mar. 31 2025Pulkit’s Capital A/c Dr.
To Amit’s Capital A/c
To Sumit’s Capital A/c
(Being adjustment entry passed for omission)
70,000
65,000
5,000

Working Notes

ParticularsAmitSumitPulkitFirm
Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.
Profits wrongly shared2,00,0002,00,0002,00,0006,00,000
IOC omitted80,00070,00050,0002,00,000
Salary omitted1,20,00060,0001,80,000
Commission70,00070,000
Profits to be shared75,00045,00030,0001,50,000
Guarantee effect10,00020,00010,000
2,10,0002,75,0002,00,0002,05,0002,10,0001,40,0006,00,0006,00,000
65,000 (Cr.)5,000 (Cr.)70,000 (Dr.)
Q178.SQP 2026-27 · Q22(a)4 marks

S, D and A are partners, sharing profits in the ratio of 5 : 2 : 3. Their fixed capitals are:

S – ₹1,00,000
D – ₹50,000
A – ₹50,000

As per the partnership deed, S is entitled to a commission of 10% of net profit after charging such commission.

However, while preparing the accounts for the year ended 31st March 2026, this commission was not provided. The net profit of the firm was ₹1,10,000.

On the basis of above information:

  1. Calculate the correct amount of commission payable to S.
  2. Pass the necessary journal entry that the accountant would have passed for distribution of profits without providing commission to S.
  3. Pass the necessary adjusting journal entry at the beginning of the next year to rectify the above-mentioned error.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

I. S’s Commission = 1,10,000*10/110 = ₹10,000

II.

JOURNAL

DateParticularsLFDr. (₹)Cr. (₹)
Profit & loss Appropriation a/c Dr.1,10,000
To S’s Current a/c55,000
To D’s Current a/c22,000
To A‘s Current a/c33,000
(Being profit distributed)

III.

TABLE SHOWING ADJUSTMENT

PARTICULARSS (₹)D (₹)A (₹)TOTAL (₹)
Commission to be credited10,000--10,000
Correct profit50,00020,00030,0001,00,000
Amount wrongly credited( 55,000)(22,000)(33,000)(1,10,000)
Net effect5,0002,0003,000Nil

JOURNAL

DateParticularsLFDr. (₹)Cr. (₹)
D’s Current a/c Dr.2,000
A’s Current a/c Dr.3,000
To S’s Current a/c5,000
(Being adjustment of omitted commission)
Part A · Partnership

2. Goodwill: Meaning, Factors and Valuation

Q1.2026 Main 67/1/1 · Q11 mark

The books of Mehul and Barkha showed that their capital employed on 31st March, 2025 was ₹6,00,000. If the normal profits are ₹60,000 and super profits are ₹20,000, then the normal rate of return is :

  1. 6%
  2. 15%
  3. 30%
  4. 10%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(D) 10%

Q2.2026 Main 67/4/1 · Q91 mark

A business earned an average profit of ₹ 2,00,000 during the last few years. The value of net assets of the business is ₹ 17,00,000 and the normal rate of return in a similar business is 10%. The value of goodwill of the business by capitalisation of super-profits method will be :

  1. ₹ 17,00,000
  2. ₹ 2,00,000
  3. ₹ 3,00,000
  4. ₹ 30,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 3,00,000

Q3.2026 Main 67/4/1 · Q151 mark

Assertion (A) : Goodwill is an intangible asset.

Reason (R) : Goodwill is the value of the reputation of a firm in respect of profits expected in future over and above the normal profits.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) is incorrect.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).

Q4.2026 Main 67/5/1 · Q51 mark

Mansi and Uma were partners in a firm and their capitals were ₹4,00,000 and ₹2,00,000 respectively. Normal rate of return in a similar business was 15% and the goodwill of the firm was valued at ₹4,00,000. If goodwill was calculated at four years purchase of super profits, the average profits of the firm were :

  1. ₹90,000
  2. ₹60,000
  3. ₹1,00,000
  4. ₹1,90,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) ₹1,90,000

Q5.2025 Main 67/4/1 · Q71 mark

Neeru and Pooja were partners in a partnership firm sharing profits and losses in the ratio of 4 : 3. The firm earned average profits of ₹ 5,00,000 during the last few years. The normal rate of return in a similar business is 10%. The average super profits of the firm were ₹ 4,00,000. The amount of capital employed by the firm was :

  1. ₹ 90,00,000
  2. ₹ 40,00,000
  3. ₹ 50,00,000
  4. ₹ 10,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) ₹ 10,00,000

Q6.2025 Main 67/6/1 · Q141 mark

Uma and Veena were partners in a firm sharing profits and losses in the ratio of 4 : 5. On 1st April, 2024 they decided to admit Usha as a new partner for 1/4th share in the profits of the firm. On Usha's admission it was decided that the goodwill of the firm will be valued equal to the previous year's profit. The profit for the year ended 31st March, 2024 were ₹5,76,000. However, to arrive at this profit, both the opening stock and closing stock were overvalued by ₹50,000. The goodwill of the firm will be :

  1. ₹5,76,000
  2. ₹6,76,000
  3. ₹4,76,000
  4. ₹7,76,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) ₹5,76,000

Q7.2025 Supp. 67/S/1 · Q51 mark

P and Q are partners in a firm sharing profits and losses equally. They admitted R into the partnership firm on 1st April, 2024. It was decided to value goodwill at 2 years’ purchase of super profits. The capital of the firm of P and Q was ₹ 5,00,000 and the normal rate of return on capital employed was 10%. During the year ended 31st March, 2024, the profit of the firm was ₹ 2,10,000. The value of goodwill of the firm was :

  1. ₹ 2,50,000
  2. ₹ 1,40,000
  3. ₹ 1,10,000
  4. ₹ 3,20,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) ₹3,20,000

Q8.2023 Main 67/1/1 · Q101 mark

Assertion (A) : Goodwill is a intangible asset.

Reason (R) : Goodwill is the value of the reputation of a firm in respect of profits expected in future, over and above the normal profits.

Select the correct answer from the following :

  1. Assertion (A) is correct, but Reason (R) is wrong.
  2. Assertion (A) is wrong, but Reason (R) is correct.
  3. Both Assertion (A) and Reason (R) are correct.
  4. Both Assertion (A) and Reason (R) are wrong.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) Both Assertion (A) and Reason (R) are correct

Q9.2023 Main 67/3/1 · Q1(i)1 mark

Keshav and Karan were partners in a firm sharing profits equally. The capitalised value of average profits of the firm was ₹ 18,00,000. Assets of the firm were ₹ 20,00,000 (excluding goodwill) and Liabilities were ₹ 5,00,000. The value of goodwill of the firm by capitalisation of average profits method will be :

  1. ₹ 2,00,000
  2. ₹ 3,00,000
  3. ₹ 4,00,000
  4. ₹ 3,50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) ₹ 3,00,000

Q10.2023 Main 67/3/1 · Q141 mark

A partnership firm has capital employed of ₹ 6,00,000. Its average profits are ₹ 80,000. The normal rate of return in similar type of business is 10%. The amount of super profits are :

  1. ₹ 60,000
  2. ₹ 8,000
  3. ₹ 20,000
  4. ₹ 52,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) ₹20,000

Q11.2023 Main 67/4/1 · Q111 mark

The goodwill of a firm was valued on the basis of 3 years purchase of average profits for the last four years. The profits of last four years ending 31st March were as follows :

YearProfit/Loss (₹)
2018 – 19(14,500)
2019 – 2015,400
2020 – 2132,900
2021 – 2216,800

The value of goodwill of the firm was :

  1. ₹ 8,885
  2. ₹ 37,950
  3. ₹ 58,950
  4. ₹ 20,690
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) ₹37,950

Q12.SQP 2025-26 · Q61 mark

Jai and Veeru were in a partnership sharing Profit &Loss in the ratio 5:3. Their Capitals were ₹ 10,00,000 and ₹ 8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of return was 10%. Firm made average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after adjustment of loss of machinery of book value of ₹2,00,000 by fire against which insurance claim of ₹1,50,000 was admitted). Value of goodwill as per Capitalisation of super profits will be:

  1. ₹ 10,00,000
  2. ₹ 3,00,000
  3. ₹ 18,00,000
  4. Nil.
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 3,00,000

Q13.2026 Main 67/1/1 · Q173 marks

Average profit of a firm during the last few years is ₹8,00,000. In similar business, the normal rate of return is 10% of the capital employed. Assets of the business were ₹60,00,000 and its external liabilities were ₹20,00,000.

Calculate the value of goodwill by :

  1. Capitalisation of super profits method
  2. Super profit method if the goodwill is valued at four years’ purchase of super profits.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i) According to Capitalisation of Super profits method:

Goodwill = Super profits × 100 / Normal Rate of return ……… ½

Super profit = Average profit − Normal profit

Normal profit = Normal Rate of return/100 × Capital Employed.

Capital Employed = Assets − External Liabilities
= ₹60,00,000 − ₹20,00,000
= ₹40,00,000

Normal profit = Normal Rate of return/100 × Capital Employed
= 10/100 × ₹40,00,000
= ₹4,00,000 ……… ½

Average profit = ₹8,00,000

Super profit = Average profit − Normal profit
= ₹8,00,000 − ₹4,00,000
= ₹4,00,000 ……… ½

Goodwill = ₹4,00,000 × 100 / 10
= ₹40,00,000 ……… ½

(ii) According to Super profit method:

Goodwill = Super profits × Number of years purchase ……… ½

Super profit = Average profit − Normal profit
Normal profit = Normal Rate of return/100 × Capital Employed.
Capital Employed = Assets − External Liabilities = ₹60,00,000 − ₹20,00,000 = ₹40,00,000
Normal profit = 10/100 × ₹40,00,000 = ₹4,00,000
Average profit = ₹8,00,000
Super profit = ₹8,00,000 − ₹4,00,000 = ₹4,00,000

Goodwill = ₹4,00,000 × 4
= ₹16,00,000 ……… ½

[Note: if an examinee has calculated Super profit in part (i), there is no need for calculation of Super profit in part (ii)]

Q14.2026 Main 67/2/1 · Q20(a)3 marks

Average profits of a firm during the last few years were ₹ 1,60,000. The normal rate of return in a similar business is 10%. If the goodwill of the firm is ₹ 4,00,000 at four years purchase of super profit, find the capital employed by the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Goodwill = Super profit × Number of years' purchase ……… ½

₹ 4,00,000 = Super profit × 4

Super Profit = 4,00,000/4 = ₹ 1,00,000 ……… ½

Average profit = ₹ 1,60,000

Super Profit = Average Profit – Normal Profit

Normal Profit = Average Profit – Super profit

Normal Profit = ₹ 1,60,000 – ₹ 1,00,000 = ₹ 60,000 ……… 1

Normal Profit = Normal Rate of Return/100 × Capital Employed

₹ 60,000 = 10/100 × Capital Employed

Capital Employed = 100/10 × ₹ 60,000
= ₹ 6,00,000 ……… 1

(3 Marks)

Q15.2026 Main 67/2/1 · Q20(b)3 marks

A business earned average profits of ₹ 60,000 during the last three years. The normal rate of return on similar business is 12%. The value of net assets of the business is ₹ 4,00,000.

Calculate the value of goodwill by :

  1. Capitalisation of average profits method.
  2. Capitalisation of super profits method.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(i) Capitalization of average profits method:

Goodwill = Capitalised Value of the firm on the basis of average profits – Net Assets ……… ½

Capitalised Value of the firm = Average Profits × 100/Normal rate of return
= ₹ 60,000 × 100/12
= ₹ 5,00,000 ……… ½

Net Assets = ₹ 4,00,000

Goodwill = ₹ 5,00,000 - ₹ 4,00,000
= ₹ 1,00,000 ……… ½

(ii) Capitalisation of super profits method :

Goodwill = Super Profits × 100/Normal rate of return ……… ½

Normal profit = Normal rate of Return/100 × Capital Employed

Normal Profit = 12/100 × ₹ 4,00,000
= ₹ 48,000

Average Profit = ₹ 60,000

Super Profit = Average Profit - Normal Profit

Super Profit = ₹ 60,000 - ₹ 48,000
= ₹ 12,000 ……… ½

Goodwill = ₹ 12,000 × 100/12
= ₹ 1,00,000 ……… ½

(3 marks)

Q16.2026 Main 67/3/1 · Q203 marks

Dhruv and Seema were partners in a firm sharing profits and losses in the ratio of 2 : 3. Their capitals were ₹18,00,000 and ₹12,00,000 respectively. The normal rate of return was 15%.

The profits of the last four years were :

Year(₹)
2021 – 227,75,000
2022 – 235,00,000
2023 – 24(75,000)
2024 – 257,00,000

The closing stock for the year 2024 – 25 was undervalued by ₹1,00,000. Goodwill of the firm is to be valued at three years’ purchase of last four years’ average super-profits.

Calculate the value of goodwill of the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Goodwill = Super Profit × Number of years’ purchase (½)

Super Profit = Average Profit − Normal Profit (½)

Corrected Profit of 2024-25 after adjustment of undervaluation of closing stock
= 7,00,000 + 1,00,000
= ₹8,00,000

Average Profit = [7,75,000 + 5,00,000 + (75,000) + 8,00,000] / 4
= 20,00,000 / 4
= ₹5,00,000 (½)

Capital Employed = 18,00,000 + 12,00,000
= ₹30,00,000

Normal Profit = Capital Employed × Normal Rate of Return / 100
= 15/100 × 30,00,000
= ₹4,50,000 (½)

Super Profit = 5,00,000 − 4,50,000
= ₹50,000 (½)

Goodwill = 50,000 × 3
= ₹1,50,000 (½)

(3 Marks)

Q17.2026 Supp. 67/7/1 · Q20(a)3 marks

Vidur and Kavita were partners in a firm. Their capitals were ₹ 5,00,000 and ₹ 4,00,000 respectively. The business earned average profits of ₹ 1,20,000 during the last few years. The normal rate of return in a similar business is 10%. Calculate the value of goodwill of the firm by capitalisation of super-profits method.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Goodwill = Super Profits × 100 / Normal rate of return …… ½

Average Profits = ₹1,20,000

Normal profits = Normal rate of Return × Capital Employed / 100

Normal Profits = 10/100 × ₹9,00,000
= ₹90,000 …… 1

Super Profits = Average Profits − Normal Profits

Super Profit = ₹ 1,20,000 − ₹ 90,000
= ₹ 30,000 …… 1

Goodwill = ₹30,000 × 100/10
= ₹3,00,000 …… ½

(3 marks)

Q18.2026 Supp. 67/7/1 · Q20(b)3 marks

The books of partners Nitish and Anshul showed that their capital employed on 31st March, 2025 was ₹ 5,00,000. The average profit of the last five years was ₹ 60,000. The normal rate of return in a similar business is 10%. Calculate the value of goodwill of the firm on the basis of capitalisation of average profit method.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Goodwill = Capitalised Value of the firm − Net Assets or Capital Employed …… 1

Capitalised Value of the firm = Average Profits × 100 / Normal rate of return
= ₹ 60,000 × 100 / 10
= ₹ 6,00,000 …… 1½

Net Assets or Capital employed = ₹ 5,00,000

Goodwill = ₹6,00,000 − ₹5,00,000
= ₹ 1,00,000 …… ½

(3 marks)

Q19.2025 Main 67/1/1 · Q203 marks

The capital of the firm of Rajat and Karan is ₹ 15,00,000 and the market rate of interest is 12%. Annual salary of Rajat and Karan is ₹ 20,000 and ₹ 30,000 respectively. The profits for the last three years were ₹ 2,40,000, ₹ 2,80,000 and ₹ 3,20,000.

Goodwill of the firm is to be valued on the basis of two years purchase of last three years' average super profits. Calculate the goodwill of the firm.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Goodwill = Super profit × Number of years' purchase

Normal profit = Normal Rate of return/100 × Capital Employed
= 12/100 × ₹15,00,000
= ₹1,80,000 ... ½

Average profit = (₹2,40,000 + ₹2,80,000 + ₹3,20,000)/3
= ₹2,80,000

Average profit less partners' salary = ₹2,80,000 − ₹50,000
= ₹2,30,000 ... 1

Average Super profit/ Super profit = Average profit − Normal profit
= ₹2,30,000 − ₹1,80,000
= ₹50,000 ... ½

Goodwill = Super profit × Number of years' purchase
= ₹50,000 × 2
= ₹1,00,000 ... 1

(3 marks)

Alternate answer:

Interest on capital employed = 12/100 × ₹15,00,000 = ₹1,80,000

Partners salary = ₹20,000 + ₹30,000 = ₹50,000

Normal Profit = Interest on capital employed + Partners' salary = ₹1,80,000 + ₹50,000 = ₹2,30,000 ... 1

Average profit = (₹2,40,000 + ₹2,80,000 + ₹3,20,000)/3
= ₹2,80,000 ... ½

Average Super profit = Average profit − Normal profit
= ₹2,80,000 − ₹2,30,000
= ₹50,000 ... ½

Goodwill = Super profit × Number of years purchase
= ₹50,000 × 2
= ₹1,00,000 ... 1

(3 marks)

Q20.2025 Main 67/5/1 · Q18(a)3 marks

Abha and Sara were partners in a firm. Their capitals were : Abha ₹ 3,00,000 and Sara ₹ 2,00,000. The normal rate of return in similar business is 10%. The profits of the firm of Abha and Sara for the last three years were :

2021 – 22–₹ 60,000
2022 – 23–₹ 90,000
and 2023 – 24–₹ 1,20,000

Calculate goodwill of the firm on the following basis :

  1. Four years purchase of the average profits for the last three years.
  2. Capitalisation of super-profits.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(i) Goodwill = No. of years’ purchase x Average Profits
Total Profits = ₹60,000 + ₹90,000 + ₹1,20,000 = ₹2,70,000
Average Profits = 2,70,000/3 = ₹90,000
Goodwill = 4 x 90,000 = ₹3,60,000

(ii) Goodwill = Super Profits x 100/ Rate of return
Capital Employed = ₹3,00,000 + ₹2,00,000 = ₹5,00,000
Normal Profit = 10% of ₹5,00,000 = ₹50,000
Super Profit = Average Profit − Normal Profit
Super Profit = ₹90,000 − ₹50,000 = ₹40,000
Goodwill = ₹40,000 x 100/10 = ₹4,00,000

(1½ + 1½ = 3 marks)

Q21.2025 Main 67/6/1 · Q203 marks

Jeevan and Kavi were partners in a firm with capitals of ₹12,00,000 and ₹15,00,000 respectively. Annual salary of the partners was ₹2,00,000 each. The market rate of interest was 10%. During the previous three years the profits were ₹8,00,000, ₹9,00,000 and ₹7,00,000. The goodwill of the firm is to be valued at 2 years' purchase of the last 3 years' average super profits.

Calculate the goodwill of the firm.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Goodwill = Average Super profit/Super Profit × Number of years' purchase

Super Profits = Average Profits – Normal Profits

Average profits = (8,00,000 + 9,00,000 + 7,00,000) / 3 = ₹8,00,000
Average profits after salary to partners = 8,00,000 – 4,00,000 = ₹4,00,000

Normal Profits = Capital employed × normal rate of return/100
Normal profits = (12,00,000 + 15,00,000) × 10/100 = ₹2,70,000 (1½)

Average Super Profit/Super Profit = 4,00,000 – 2,70,000 = ₹1,30,000

Goodwill = 1,30,000 × 2 = ₹2,60,000 (1½)

Alternatively,

Interest on capital employed = (12,00,000 + 15,00,000) × 10/100 = 27,00,000 × 10/100 = ₹2,70,000
Add: Partner's salary = 2,00,000 × 2 = ₹4,00,000
Normal Profits = 6,70,000 (1½)

Average profits = (8,00,000 + 9,00,000 + 7,00,000) / 3 = ₹8,00,000
Average Super profit/Super Profit = Average Profit – Normal Profit = 8,00,000 – 6,70,000 = ₹1,30,000
Goodwill = Average Super profit/Super profit × Number of years' purchase = 1,30,000 × 2 = ₹2,60,000 (1½)

(3 marks)

Q22.2025 Main 67/7/1 · Q18(b)3 marks

Sana and Rajesh were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Sonu into partnership for 1/5th share in the profits of the firm. Goodwill of the firm was to be valued at three years’ purchase of super-profits. Average net profit of the firm was ₹80,000. Capital employed in the business was ₹2,00,000 and normal rate of return was 10%. Calculate the amount of goodwill premium brought by Sonu.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Average Net Profit = ₹80,000

Normal Profit = Capital Employed × Normal Rate of Return
= 2,00,000 × 10%
= ₹20,000 ……… 1

Super Profit = Average Profit − Normal Profit
= 80,000 − 20,000
= ₹60,000 ……… 1

Goodwill of the firm = Number of years’ purchase × Super Profit
= 3 × 60,000
= ₹1,80,000 ……… ½

Sonu’s share of Goodwill = 1,80,000 × 1/5 = ₹36,000 ……… ½

(3 Marks)

Q23.2025 Supp. 67/S/1 · Q18(a)3 marks

From the following information, calculate the value of goodwill of the firm :

  1. On the basis of capitalisation of super profits, and
  2. On the basis of capitalisation of average profits.

Average profit for the last four years − ₹ 20,00,000
Capital Employed − ₹ 25,00,000
Normal Rate of Return − 20%
Net Assets of the business − ₹ 25,00,000

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(i) On the basis of capitalisation of super profits

Normal Profit = Capital Employed x Normal Rate of Return / 100
Normal profits = 20% of ₹25,00,000 = ₹5,00,000

Super profits = Average profits − Normal profits
= ₹20,00,00 − ₹5,00,000
= ₹15,00,000

Goodwill = Super profits x 100/ Normal rate of return
= ₹15,00,000 x 100/20
= ₹75,00,000 [1½ marks]

(ii) On the basis of capitalisation of average profits

Goodwill = Capitalised value of the firm − Net assets or Capital Employed

Capitalised value of the firm = Average profits x 100/ Normal rate of return
= ₹20,00,000 x 100/20
= ₹1,00,00,000

Net assets = ₹25,00,000
Goodwill = ₹1,00,00,000 − ₹25,00,000
= ₹75,00,000 [1½ marks]

1½ + 1½ = 3 marks

Q24.2024 Main 67/1/1 · Q183 marks

Pearl and Ruby were partners in a firm with a combined capital of ₹2,50,000. The normal rate of return was 10%. The profits of the last four years were as follows :

Year₹
2019 – 2035,000
2020 – 2125,000
2021 – 2232,000
2022 – 2333,000

The closing stock for the year 2022 – 23 was overvalued by ₹5,000.

Calculate goodwill of the firm based on three years’ purchase of the last four years’ average super profit.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Calculation of Normal Adjusted Profit

YearProfit (₹)Adjustment (₹)Adjusted Profit (₹)
2019-2035,000-35,000
2020-2125,000-25,000
2021-2232,000-32,000
2022-2333,000(5,000)28,000
TOTAL1,20,000

Average Profit = (Total Adjusted Profit) / No. of years
= 1,20,000/4 = ₹30,000 (1)

Normal Profit = Capital Employed × Normal Rate of Return / 100
= 2,50,000 × 10/100 = ₹25,000 (½)

Super Profit = Average Profit – Normal Profit
= 30,000 – 25,000 = ₹5,000 (½)

Goodwill = Super Profit × No. of years’ purchase (1)
= 5,000 × 3 = ₹15,000

= 3 marks

Q25.2024 Main 67/2/1 · Q203 marks

On 1st April, 2023, a partnership firm had assets of ₹ 2,00,000 including cash of ₹ 6,000 and bank balance of ₹ 14,000. The partners’ capital accounts showed a balance of ₹ 1,90,000 and reserves constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is valued at ₹ 60,000 at 4 years purchase of super profits, find the average profits of the firm.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Goodwill = No. of years’ purchase × Super Profits
₹60,000 = 4 × Super Profits
Super Profits = ₹15,000 (1)

Capital Employed = Total Assets − Outside Liabilities
= ₹2,00,000 − Nil = ₹2,00,000
Normal Profit = 10% of ₹2,00,000 = ₹20,000 (1)

Super Profit = Average Profit − Normal Profit
₹15,000 = Average profit − ₹20,000
Average Profit = ₹35,000 (1)

= 3 marks

Q26.2024 Main 67/3/1 · Q183 marks

Rishi and Suman were partners in a firm. Their capitals were : Rishi ₹ 1,20,000 and Suman ₹ 80,000. The normal rate of return in similar business is 12%. The profits of the last four years were :

Year₹
2019 – 2033,000
2020 – 2122,000
2021 – 2231,000
2022 – 2334,000

Calculate goodwill of the firm based on :

  1. Three years’ purchase of the last four years’ average profits.
  2. Capitalisation of super profit.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Average Profit = (33,000 + 22,000 + 31,000 + 34,000) / 4

= ₹ 30,000 (1/2)

Normal Profit = Normal Rate of Return × Capital Employed / 100

Normal Profit = 12 × 2,00,000 / 100 (1)

= ₹ 24,000

Super Profit = Average Profit – Normal Profit (1/2)

= 30,000 – 24,000

= ₹ 6,000

(i) Goodwill of the firm = Average Profit × Number of Years’ Purchase

= 30,000 × 3

= ₹ 90,000 (1/2)

(ii) Goodwill of the firm = Super Profit × 100 / Normal rate of return

= 6,000 × 100 / 12 (1/2)

= ₹ 50,000

= 3 marks

Q27.2024 Main 67/4/1 · Q19(a)3 marks

Aayush and Krish are partners sharing profits and losses equally. They decided to admit Vansh for an equal share in the profits. For this purpose, the goodwill of the firm was to be valued at four years purchase of super profits.

The balance sheet of the firm on 31.3.2023 before admission of Vansh was as follows :

Balance Sheet of Aayush and Krish as on 31.3.2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Aayush 90,000
Krish 50,000


1,40,000
Machinery
Furniture
Stock
75,000
15,000
30,000
General Reserve20,000Debtors20,000
Loan25,000Cash50,000
Creditors5,000
1,90,0001,90,000

The normal rate of return is 12% per annum. Average profit of the firm for the last four years was ₹ 30,000. Calculate Vansh’s share of Goodwill.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Capital Employed = Aayush’s Capital + Krish’s Capital + General Reserve
= ₹90,000 + ₹50,000 + ₹20,000
= ₹1,60,000

Or

Capital Employed = Total Assets - External Liabilities (Loan + Creditors)
= ₹1,90,000 - ₹25,000 - ₹5,000
= ₹1,60,000

Capital Employed = ₹1,60,000 ............ ½

Normal Profit = 12% of Capital Employed
= 12/100 × ₹1,60,000
= ₹19,200 ............ ½

Average Profit = ₹30,000

Super Profit = Average Profit - Normal Profit
= ₹30,000 - ₹19,200
= ₹10,800 ............ 1

Goodwill = Super Profit × No. of years of purchase
Firm’s Goodwill = ₹10,800 × 4
= ₹43,200 ............ ½

Vansh’s share of Goodwill = ₹43,200 × 1/3
= ₹14,400 ............ ½

(3 Marks)

Q28.2024 Main 67/5/1 · Q203 marks

Sunny and Rohan were partners in a firm sharing profits and losses in the ratio of 2 : 1. Their books showed that the capital employed on 31st March, 2023 was ₹ 7,00,000. The average profits earned by the firm were ₹ 90,000. Calculate the value of goodwill on the basis of 5 years purchase of super profits assuming that the normal rate of return is 10%.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Average Profits = ₹90,000

Normal Profits = Normal rate of return × Capital Employed / 100
= 10/100 × ₹7,00,000
= ₹70,000 ……… 1

Super Profits = Average Profits − Normal Profits
= ₹90,000 − ₹70,000
= ₹20,000 ……… 1

Goodwill = Super Profits × Number of years purchase
Goodwill = ₹20,000 × 5
= ₹1,00,000 ……… 1

(3 marks)

Q29.2024 Supp. 67/S/1 · Q183 marks

Asha and Babita were partners in a firm. Their capitals were ₹ 15,00,000 and ₹ 10,00,000 respectively. The normal rate of return was 15%.

The profits of the last four years were :

Year₹
2019 – 202,50,000
2020 – 21(50,000)
2021 – 228,00,000
2022 – 235,00,000

The closing stock for the year 2022 – 23 was undervalued by ₹ 1,00,000. Goodwill is to be valued at two years purchase of the last four years’ average super profits. Calculate the value of goodwill.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Capital employed = Asha’s capital + Babita’s capital
= 15,00,000 + 10,00,000
= ₹ 25,00,000

Normal Profits = Normal Rate of return / 100 x Capital Employed
= 25,00,000 x 15/100
= ₹3,75,000 ……½

YearAdjusted profit (₹)
2019-202,50,000
2020-21(50,000)
2021-228,00,000
2022-235,00,000+1,00,000=6,00,000
Total16,00,000

Average profit = 16,00,000/4 ……½
= ₹ 4,00,000

Super Profit = Average profit – Normal profit
Super Profits = 4,00,000 - 3,75,000 ……1
= ₹25,000

Goodwill = Super Profits x Number of years’ purchase
= 2 x 25,000 ……1
= ₹50,000

3 Marks

Q30.2023 Main 67/1/1 · Q20(a)3 marks

On 1st April, 2022, the capital of the firm of Ashu and Madhav is ₹ 1,50,000. The normal rate of return on capital employed is 10%. Average profits of the firm are ₹ 23,500. Calculate goodwill of the firm based on three years purchase of super profits.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Normal Profit = 10/100 × 1,50,000 = ₹ 15,000 [1]
Average Profit = ₹ 23,500
Super Profit = Average Profits – Normal Profit
= 23,500 – 15,000
= ₹ 8,500 [1]

Goodwill = Super Profits × Number of years’ purchase [½]
= 8,500 × 3
= ₹ 25,500 [½]

(1 + 1 + ½ + ½ = 3 marks)

Q31.2023 Main 67/2/1 · Q18(b)3 marks

A and B were partners in a firm sharing profits equally. Their capitals were : A ₹1,20,000 and B ₹80,000. The annual rate of interest is 20%. The profits of the firm for the last three years were ₹34,000; ₹38,000 and ₹30,000. They admitted C as a new partner. On C's admission the goodwill of the firm was valued at 2 years purchase of the super profits.

Calculate the value of goodwill of the firm on C's admission.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Normal Profit = 20% of Capital Employed
= 20/100 × ₹2,00,000 = ₹40,000 …… [1]

Average Profit = (34,000 + 38,000 + 30,000)/3 = 102000/3 = ₹34,000 …… [1]

(i) Super Profit = Average Profit − Normal Profit
= ₹34,000 − ₹40,000 = − ₹6,000 …… [½]

Note- Since there is no super profit, hence the firm does not have any goodwill. [½]

(3 Marks)

Q32.SQP 2026-27 · Q203 marks

Calculate goodwill of the firm on the basis of 3 years’ purchase of the average profits of the last five years which were as follows:

YearAmount (₹)
31st March 2022(1,00,000)
31st March 202330,00,000
31st March 202416,00,000
31st March 202517,50,000
31st March 202618,50,000

Additional Information:

(i) On 1st January 2025, a fire broke out which resulted into a loss of goods of ₹3,00,000. A claim of ₹ 70,000 was received from the insurance company.

(ii) During the year ended 31st March 2026, the firm realised ₹ 80,000 from sale of scrapped machinery.

(iii) For the year ending 31st March 2026, wages of ₹ 50,000 were debited twice inadvertently by the accountant of the firm.

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CBSE Sample Question Paper 2026-27 · Marking Scheme
Year ending 31st MarchProfitAdjusted Profit
2022(1,00,000)(1,00,000)
202330,00,00030,00,000
202416,00,00016,00,000
202517,50,000+3,00,000-70,00019,80,000
202618,50,000-80,000+50,00018,20,000
83,00,000

Average Profit = 83,00,000 ÷ 5 = ₹ 16,60,000
Goodwill = Average Profit × 3 years = 16,60,000 x 3 = ₹ 49,80,000

Part A · Partnership

3. Change in Profit-Sharing Ratio among Existing Partners

Q1.2026 Main 67/1/1 · Q7(a)1 mark

Chandan, Ravi and Mahesh were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2025 they decided to share the future profits in the ratio of 3 : 2 : 1. On that date there existed a general reserve of ₹7,00,000 in the books of the firm which they decided to distribute among themselves.

In which ratio will the general reserve be distributed among the partners ?

  1. New profit sharing ratio
  2. Old profit sharing ratio
  3. Sacrificing / Gaining ratio
  4. Equally
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) Old profit sharing ratio

Q2.2026 Main 67/1/1 · Q7(b)1 mark

Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st April, 2025, they decided to share the profits equally. On that date furniture was appearing in the books of the firm at ₹4,50,000. At the time of change in the profit sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at :

  1. ₹4,05,000
  2. ₹4,50,000
  3. ₹4,95,000
  4. ₹5,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(D) ₹5,00,000

Q3.2026 Main 67/2/1 · Q4(b)1 mark

Kabir, Divya and Mansha were partners in a firm sharing profits and losses in the ratio of 5:4:1. With effect from 1st April 2025, they decided to share the future profits and losses in the ratio of 4:1:5. For this purpose, the goodwill of the firm was valued at ₹ 3,00,000. The necessary journal entry for the treatment of goodwill because of change in profit sharing ratio will be :

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Kabir's Capital A/c Dr.
Divya's Capital A/c Dr.
To Mansha's Capital A/c
75,000
2,25,000


3,00,000
(B)Mansha's Capital A/c Dr.
To Kabir's Capital A/c
To Divya's Capital A/c
3,00,000
75,000
2,25,000
(C)Mansha's Capital A/c Dr.
To Kabir's Capital A/c
To Divya's Capital A/c
1,20,000
30,000
90,000
(D)Kabir's Capital A/c Dr.
Divya's Capital A/c Dr.
To Mansha's Capital A/c
30,000
90,000


1,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C)

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
Mansha' Capital A/c Dr.
To Kabir's Capital A/c
To Divya's Capital A/c
1,20,000
30,000
90,000
Q4.2026 Main 67/3/1 · Q51 mark

Chaman, Raman and Suman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2025, they decided to share the future profits in the ratio of 2 : 3 : 5. For this purpose, it was agreed that the goodwill of the firm be valued at ₹1,00,000. The treatment of goodwill without opening goodwill account will be :

  1. Debit Chaman’s Capital A/c by ₹30,000 and Credit Suman’s Capital A/c by ₹30,000
  2. Debit Suman’s Capital A/c by ₹30,000 and Credit Chaman’s Capital A/c by ₹30,000
  3. Debit Chaman’s Capital A/c and Suman’s Capital A/c by ₹15,000 each and credit Raman’s Capital A/c by ₹30,000
  4. Debit Raman’s Capital A/c by ₹30,000 and Credit Chaman’s Capital A/c and Suman’s Capital A/c by ₹15,000 each
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Debit Suman’s Capital Account by ₹30,000 and Credit Chaman’s Capital A/c by ₹30,000

Q5.2026 Main 67/3/1 · Q7(a)1 mark

Anup, Bharti and Manoj were partners in a firm sharing profits and losses in the ratio of 11 : 8 : 1. From 1st April, 2025, they decided to share the future profits in the ratio of 2 : 2 : 1. The gain or sacrifice of each partner due to change in profit sharing ratio will be :

  1. Anup’s gain 3/20, Manoj’s sacrifice 3/20
  2. Anup’s sacrifice 3/20, Manoj’s gain 3/20
  3. Anup’s gain 3/20, Manoj’s gain 3/20
  4. Anup’s sacrifice 3/20, Manoj’s sacrifice 3/20
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Anup’s sacrifice 3/20, Manoj’s gain 3/20

Q6.2026 Main 67/4/1 · Q101 mark

Asha, Manan and Niyati were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April, 2025, they agreed to share profits and losses equally. Due to change in the profit sharing ratio, Asha’s gain or sacrifice will be :

  1. Sacrifice 1/6
  2. Gain 1/6
  3. Sacrifice 1/12
  4. Gain 1/12
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Sacrifice 1/6

Q7.2026 Supp. 67/7/1 · Q4(a)1 mark

Kamya, Inaya and Lokesh were partners in a firm, sharing profits and losses in the ratio of 3 : 2 : 4. With effect from 1st April, 2025, they decided to share profits and losses in the ratio of 4 : 2 : 3. The goodwill of the firm was valued at ₹ 9,00,000.

The necessary journal entry to show the effect of the above transaction will be :

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Kamya’s Capital A/c  Dr.
    To Lokesh’s Capital A/c
1,00,000
1,00,000
(B)Lokesh’s Capital A/c  Dr.
    To Kamya’s Capital A/c
1,00,000
1,00,000
(C)Kamya’s Capital A/c  Dr.
    To Lokesh’s Capital A/c
9,00,000
9,00,000
(D)Lokesh’s Capital A/c  Dr.
    To Kamya’s Capital A/c
9,00,000
9,00,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A)

ParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Kamya’s Capital A/c  Dr.
    To Lokesh’s Capital A/c
1,00,000

1,00,000
Q8.2026 Supp. 67/7/1 · Q4(b)1 mark

Isha, Pallavi and Manoj were partners in a firm, sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2025, they decided to share future profits in the ratio of 3 : 1 : 1. After revaluation of assets and reassessment of liabilities, revaluation account showed a loss of ₹ 5,00,000. Isha’s Capital Account will be debited by ____________ due to the loss on revaluation.

  1. ₹ 1,50,000
  2. ₹ 2,00,000
  3. ₹ 1,00,000
  4. ₹ 5,00,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ₹2,00,000

Q9.2025 Main 67/1/1 · Q4(a)1 mark

Kartik, Inder and Lalit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 2 : 3 : 4. For this purpose, the goodwill of the firm was valued at ₹ 1,80,000.

The necessary journal entry to show the effect of the above will be :

  1. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Lalit's Capital A/c ... Dr.
    To Kartik's Capital A/c
    40,000

    40,000
  2. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Kartik's Capital A/c ... Dr.
    To Lalit's Capital A/c
    40,000

    40,000
  3. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Lalit's Capital A/c ... Dr.
    To Kartik's Capital A/c
    1,80,000

    1,80,000
  4. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Kartik's Capital A/c ... Dr.
    To Lalit's Capital A/c
    1,80,000

    1,80,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A)

ParticularsDr. Amount (₹)Cr. Amount (₹)
Lalit's Capital A/c ... Dr.
To Kartik's Capital A/c
40,000

40,000
Q10.2025 Main 67/1/1 · Q4(b)1 mark

Nidhi, Pranav and Ishu were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 4 : 1 : 5. On that date, there was a debit balance of ₹ 4,00,000 in the Profit and Loss Account. The necessary journal entry to show the effect of the above will be :

  1. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Ishu's Capital A/c ... Dr.
    To Nidhi's Capital A/c
    To Pranav's Capital A/c
    1,60,000


    40,000
    1,20,000
  2. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Profit & Loss A/c ... Dr.
    To Nidhi's Capital A/c
    To Pranav's Capital A/c
    To Ishu's Capital A/c
    4,00,000



    2,00,000
    1,60,000
    40,000
  3. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Nidhi's Capital A/c ... Dr.
    Pranav's Capital A/c ... Dr.
    Ishu's Capital A/c ... Dr.
    To Profit & Loss A/c
    2,00,000
    1,60,000
    40,000



    4,00,000
  4. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Nidhi's Capital A/c ... Dr.
    Pranav's Capital A/c ... Dr.
    To Ishu's Capital A/c
    40,000
    1,20,000


    1,60,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C)

ParticularsDr. Amount (₹)Cr. Amount (₹)
Nidhi's Capital A/c ... Dr.
Pranav's Capital A/c ... Dr.
Ishu's Capital A/c ... Dr.
To Profit & Loss A/c
2,00,000
1,60,000
40,000



4,00,000
Q11.2025 Main 67/1/1 · Q8(a)1 mark

Misha, Sarita and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April 2024, they decided that they will share profits and losses equally. The gain or sacrifice by the partners due to change in profit sharing ratio will be :

  1. Misha's sacrifice 1/6, Isha's gain 1/6
  2. Misha's gain 1/6, Isha's sacrifice 1/6
  3. Misha's sacrifice 1/6, Sarita's gain 1/3, Isha's sacrifice 1/6
  4. Misha's sacrifice 1/3, Isha's gain 1/3
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Misha's sacrifice 1/6, Isha's gain 1/6

Q12.2025 Main 67/2/1 · Q15(a)1 mark

Anisha, Deepa and Charu were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2024, they decided to change their profit-sharing ratio to 2 : 3 : 5. Each partner's gain or sacrifice due to change in profit-sharing ratio will be :

  1. Anisha's sacrifice 3/10; Charu's gain 3/10
  2. Anisha's gain 3/10; Charu's sacrifice 3/10
  3. Anisha's sacrifice 3/10; Deepa's gain 3/10
  4. Deepa's gain 3/10; Charu's sacrifice 3/10
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Anisha's sacrifice 3/10; Charu's gain 3/10

Q13.2025 Main 67/2/1 · Q15(b)1 mark

Preet and Saral were partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024 they decided to change their profit sharing ratio to 1 : 1. On the date of reconstitution goodwill of the firm was valued at ₹ 1,00,000. The journal entry for treatment of goodwill on account of change in profit-sharing ratio will be :

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Preet's Capital A/c ........ Dr.1,00,000
    To Saral's Capital A/c1,00,000
(B)Saral's Capital A/c ........ Dr.1,00,000
    To Preet's Capital A/c1,00,000
(C)Preet's Capital A/c ........ Dr.10,000
    To Saral's Capital A/c10,000
(D)Saral's Capital A/c ........ Dr.10,000
    To Preet's Capital A/c10,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D)

ParticularsDr. Amount (₹)Cr. Amount (₹)
(D)Saral's Capital A/c……… Dr.10,000
    To Preet's Capital A/c10,000
Q14.2025 Main 67/5/1 · Q141 mark

A, B and C were partners in a firm sharing profits and losses in the ratio of 8 : 5 : 3. It was decided that with effect from 1st April, 2024, profits and losses will be shared in the ratio of 6 : 5 : 5. Due to change in the profit sharing ratio, A’s gain or sacrifice will be :

  1. 1/8 gain
  2. 2/8 gain
  3. 1/8 sacrifice
  4. 2/8 sacrifice
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) 1/8 sacrifice

Q15.2025 Main 67/5/1 · Q15(b)1 mark

Which of the following events does not result in reconstitution of a firm ?

  1. Dissolution of partnership
  2. Dissolution of partnership firm
  3. Death of a partner
  4. Change in profit sharing ratio of existing partners
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) Dissolution of partnership firm

Q16.2025 Main 67/6/1 · Q5(a)1 mark

Manav, Mayank and Manish were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2024, their Balance Sheet showed a debit balance of ₹60,000 in the Profit and Loss Account. They decided that from 1st April, 2024 they will share profits in the ratio of 2 : 2 : 1. The journal entry for writing off the debit balance of Profit and Loss Account on reconstitution of the firm will be :

Manav, Mayank and Manish
JOURNAL

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Manav's Capital A/c ... Dr.
Mayank's Capital A/c ... Dr.
Manish's Capital A/c ... Dr.
    To Profit and Loss A/c
30,000
18,000
12,000
 



60,000
(B)Manav's Capital A/c ... Dr.
Mayank's Capital A/c ... Dr.
Manish's Capital A/c ... Dr.
    To Profit and Loss A/c
24,000
24,000
12,000
 



60,000
(C)Mayank's Capital A/c ... Dr.
    To Manav's Capital A/c
6,000
 

6,000
(D)Manav's Capital A/c ... Dr.
    To Mayank's Capital A/c
6,000
 

6,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A)

ParticularsDr. Amount (₹)Cr. Amount (₹)
Manav's Capital A/c ... Dr.
Mayank's Capital A/c ... Dr.
Manish's Capital A/c ... Dr.
To Profit and Loss A/c
30,000
18,000
12,000



60,000
Q17.2025 Main 67/7/1 · Q5(a)1 mark

Jayant, Vijayant and Anant were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April, 2024, they decided to share the profits in the ratio of 5 : 3 : 2. For this purpose, the goodwill of the firm was valued at ₹6,00,000. The partners decided to treat goodwill without opening goodwill account. By what amount will the partners’ accounts be debited or credited ?

  1. Debit Anant by ₹6,00,000 and Credit Vijayant by ₹6,00,000.
  2. Debit Vijayant by ₹6,000 and Credit Anant by ₹6,000.
  3. Debit Vijayant by ₹20,000 and Credit Anant by ₹20,000.
  4. Debit Anant by ₹20,000 and Credit Vijayant by ₹20,000.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) Debit Anant by ₹20,000 and Credit Vijayant by ₹20,000

Q18.2025 Main 67/7/1 · Q5(b)1 mark

Akshay, Reet and Manya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided that in future, they will share the profits and losses in the ratio of 2 : 4 : 3. Identify the gain or sacrifice by the partners due to change in the profit sharing ratio from the following :

  1. Akshay’s sacrifice 1/9, Reet’s sacrifice 1/9, Manya’s gain 2/9
  2. Akshay’s gain 1/9, Reet’s gain 1/9, Manya’s sacrifice 2/9
  3. Akshay’s sacrifice 2/9, Reet’s gain 1/9, Manya’s gain 1/9
  4. Akshay’s gain 2/9, Reet’s sacrifice 1/9, Manya’s sacrifice 1/9
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Akshay’s sacrifice 2/9, Reet’s gain 1/9, Manya’s gain 1/9

Q19.2025 Supp. 67/S/1 · Q8(a)1 mark

Rima, Seema and Atul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 3 : 1 : 4. Due to change in the profit sharing ratio, Seema’s gain or sacrifice will be :

  1. Sacrifice 1/8
  2. Sacrifice 2/8
  3. Gain 3/8
  4. Gain 2/8
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Sacrifice 2/8

Q20.2024 Main 67/1/1 · Q15(a)1 mark

Dan, Elf and Furhan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. With effect from 1st April, 2023, they decided to change their profit sharing ratio to 2 : 3 : 5. There existed a General Reserve of ₹90,000 on the date of change in profit sharing ratio. The partners decided not to distribute General Reserve.

The necessary adjustment entry to show the effect of the above will be :

DateParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Dan’s Capital A/c ... Dr.
  To Furhan’s Capital A/c
27,000

27,000
(B)Dan’s Capital A/c ... Dr.
  To Furhan’s Capital A/c
90,000

90,000
(C)Furhan’s Capital A/c ... Dr.
  To Dan’s Capital A/c
27,000

27,000
(D)Furhan’s Capital A/c ... Dr.
  To Dan’s Capital A/c
90,000

90,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1
DateParticularsDr. Amount (₹)Cr. Amount (₹)
(C)Furhan’s Capital A/c ... Dr.
  To Dan’s Capital A/c
27,000

27,000
Q21.2024 Main 67/1/1 · Q15(b)1 mark

Sia, Tom and Vidhi were partners in a firm sharing profits in the ratio of 3 : 2 : 1. With effect from 1st April, 2023, they decided to share profits and losses in the future in the ratio of 1 : 2 : 3. There existed a Debit Balance of ₹60,000 in Profit and Loss Account on that date.

The necessary journal entry for distribution of the balance in the Profit and Loss Account will be :

DateParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Sia’s Capital A/c ... Dr.
Tom’s Capital A/c ... Dr.
Vidhi’s Capital A/c ... Dr.
  To Profit and Loss A/c
30,000
20,000
10,000



60,000
(B)Sia’s Capital A/c ... Dr.
Tom’s Capital A/c ... Dr.
Vidhi’s Capital A/c ... Dr.
  To Profit and Loss A/c
10,000
20,000
30,000



60,000
(C)Sia’s Capital A/c ... Dr.
  To Vidhi’s Capital A/c
20,000

20,000
(D)Vidhi’s Capital A/c ... Dr.
  To Sia’s Capital A/c
20,000

20,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1
DateParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Sia’s Capital A/c ... Dr.
Tom’s Capital A/c ... Dr.
Vidhi’s Capital A/c ... Dr.
  To Profit & Loss A/c
30,000
20,000
10,000



60,000
Q22.2024 Main 67/2/1 · Q5(i)1 mark

Bhim, Arjun and Nakul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they agreed to share profits equally. Due to change in the profit sharing ratio, Arjun’s gain or sacrifice will be :

  1. Sacrifice 1/30
  2. Gain 1/30
  3. Sacrifice 1/15
  4. Gain 1/15
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) Gain 1/30

Q23.2024 Main 67/3/1 · Q51 mark

Manu, Sonu and Rahul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2023, they decided to share profits and losses in the future in the ratio of 3 : 2 : 1. Their Balance Sheet showed Workmen Compensation Reserve of ₹ 84,000. The claim on account of Workmen Compensation is estimated at ₹ 75,000. The journal entry to give effect to the above transaction will be :

  1. ParticularsDr Amount (₹)Cr Amount (₹)
    Workmen Compensation Reserve A/c Dr
    To Workmen Compensation Claim A/c
    To Manu’s Capital A/c
    To Sonu’s Capital A/c
    To Rahul’s Capital A/c
    84,000
    75,000
    4,000
    3,000
    2,000
  2. ParticularsDr Amount (₹)Cr Amount (₹)
    Workmen Compensation Reserve A/c Dr
    To Workmen Compensation Claim A/c
    To Manu’s Capital A/c
    To Sonu’s Capital A/c
    To Rahul’s Capital A/c
    84,000
    75,000
    4,500
    3,000
    1,500
  3. ParticularsDr Amount (₹)Cr Amount (₹)
    Manu’s Capital A/c Dr
    To Rahul’s Capital A/c
    500
    500
  4. ParticularsDr Amount (₹)Cr Amount (₹)
    Workmen Compensation Reserve A/c Dr
    To Workmen Compensation Claim A/c
    To Manu’s Capital A/c
    To Sonu’s Capital A/c
    To Rahul’s Capital A/c
    84,000
    75,000
    3,000
    3,000
    3,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A)

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Workmen Compensation Reserve A/c Dr.
To Workmen Compensation Claim A/c
To Manu’s Capital A/c
To Sonu’s Capital A/c
To Rahul’s Capital A/c
84,000
75,000
4,000
3,000
2,000
Q24.2024 Main 67/3/1 · Q15(b)1 mark

Nikhil, Arun and Mansi were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they decided to share profits and losses in the ratio of 5 : 3 : 2. Due to change in the profit sharing ratio, Mansi’s gain or sacrifice will be :

  1. Gain 1/10
  2. Sacrifice 3/10
  3. Sacrifice 1/10
  4. Gain 3/10
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) Sacrifice 1/10

Q25.2024 Main 67/5/1 · Q141 mark

Isha and Manish were partners in a firm sharing profits and losses in the ratio of 3 : 2. With effect from 1st April, 2023, they agreed to share profits equally. On this date the goodwill of the firm was valued at ₹ 3,00,000. The necessary journal entry for the treatment of goodwill without opening Goodwill Account will be :

Date 2023ParticularsDr. Amount (₹)Cr. Amount (₹)
(A) April, 1Manish's Capital A/c. Dr.30,000
To Isha's Capital A/c.30,000
(B) April, 1Isha's Capital A/c. Dr.30,000
To Manish's Capital A/c.30,000
(C) April, 1Manish's Capital A/c. Dr.3,000
To Isha's Capital A/c.3,000
(D) April, 1Isha's Capital A/c. Dr.3,000
To Manish's Capital A/c.3,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A)

DateParticularsDr. Amount (₹)Cr. Amount (₹)
2023
April 1
Manish’s Capital A/c Dr.30,000
To Isha’s Capital A/c30,000
Q26.2024 Supp. 67/S/1 · Q15(a)1 mark

Deepa, Elton and Frank were partners in a firm sharing profits in the ratio of 2 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio as 1 : 2 : 2. There existed a Debit Balance of Profit and Loss Account of ₹ 50,000 in the books of the firm on the date of change in profit sharing ratio. The partners decided to retain the Debit Balance of Profit and Loss Account in the books. The adjustment entry will be :

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Deepa’s Capital A/c Dr.10,000
    To Frank’s Capital A/c10,000
(B)Deepa’s Capital A/c Dr.5,000
    To Frank’s Capital A/c5,000
(C)Frank’s Capital A/c Dr.10,000
    To Deepa’s Capital A/c10,000
(D)Frank’s Capital A/c Dr.5,000
    To Deepa’s Capital A/c5,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A)

ParticularsDr (₹)Cr (₹)
Deepa’s Capital A/c Dr.
    To Frank’s Capital A/c
10,000

10,000
Q27.2024 Supp. 67/S/1 · Q15(b)1 mark

Som, Pam and Ron were partners in a firm sharing profits in the ratio of 7 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio to 1 : 2 : 7. There existed a Credit Balance in the Profit and Loss Account of ₹ 1,00,000 on the date of change in profit sharing ratio in the books of the firm. The partners decided to retain the Credit Balance in Profit and Loss Account in the books. The adjustment entry will be :

Journal

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Ron’s Capital A/c Dr.20,000
    To Som’s Capital A/c20,000
(B)Ron’s Capital A/c Dr.60,000
    To Som’s Capital A/c60,000
(C)Som’s Capital A/c Dr.20,000
    To Ron’s Capital A/c20,000
(D)Som’s Capital A/c Dr.60,000
    To Ron’s Capital A/c60,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B)

ParticularsDr (₹)Cr (₹)
Ron’s Capital A/c Dr.
    To Som’s Capital A/c
60,000

60,000
Q28.2023 Main 67/2/1 · Q51 mark

On the reconstitution of a firm the value of furniture increased from ₹7,00,000 to ₹8,00,000 and stock reduced to ₹4,00,000 from ₹4,20,000. Gain or loss on revaluation will be :

  1. Gain ₹80,000
  2. Loss ₹80,000
  3. Gain ₹8,00,000
  4. Loss ₹1,20,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Gain ₹80,000

Q29.2023 Main 67/3/1 · Q2(ii)1 mark

At the time of change in profit sharing ratio among existing partners, ‘Reserves’ are transferred to Partners’ Capital Accounts in the following ratio :

  1. Sacrificing ratio
  2. Gaining ratio
  3. Old profit sharing ratio
  4. New profit sharing ratio
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Old profit-sharing ratio

Q30.2023 Main 67/3/1 · Q131 mark

Isha and Naman were partners in a firm sharing profits and losses in the ratio of 2 : 3. With effect from 1st April, 2022 they agreed to share profits and losses equally. Due to change in the profit sharing ratio, Isha’s gain or sacrifice will be :

  1. Sacrifice 1/10
  2. Gain 1/10
  3. Sacrifice 2/5
  4. Gain 2/5
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Gain 1/10

Q31.2023 Main 67/4/1 · Q61 mark

Assertion (A) : Increase in the value of liabilities on reconstitution of a firm is debited to Revaluation Account.
Reason (R) : Increase in the value of liabilities is a loss.

Select the correct alternative from the following :

  1. Assertion (A) is correct, but Reason (R) is wrong.
  2. Assertion (A) is wrong, but Reason (R) is correct.
  3. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  4. Both Assertion (A) and Reason (R) are wrong.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) Both Assertion (A) and Reason (R) are correct and Reason (R) is correct explanation of Assertion (A)

Q32.2023 Main 67/4/1 · Q9(i)1 mark

Ria and Surbhi were partners in a firm sharing profits and losses in the ratio of 3 : 2. With effect from 1st April, 2022, they agreed to share profits equally. The goodwill of the firm was valued at ₹ 3,00,000. The adjustment will be done by which of the following transaction ?

  1. Debiting Surbhi’s account by ₹ 30,000 and crediting Ria’s account by ₹ 30,000.
  2. Debiting Ria’s account by ₹ 30,000 and crediting Surbhi’s account by ₹ 30,000.
  3. Debiting Surbhi’s account by ₹ 3,000 and crediting Ria’s account by ₹ 3,000.
  4. Debiting Ria’s account by ₹ 3,000 and crediting Surbhi’s account by ₹ 3,000.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) Debiting Surbhi’s account by ₹30,000 and crediting Ria’s account by ₹ 30,000

Q33.2023 Main 67/4/1 · Q9(ii)1 mark

Naman, Suman and Mohit were partners in a firm sharing profits in the ratio 8 : 5 : 3. With effect from 1st April, 2022, they decided that in future, they will share the profits in the ratio 5 : 6 : 5. Identify the gain or sacrifice by the partners due to change in profit sharing ratio, from the following :

  1. Naman’s gain 3/16, Suman’s sacrifice 1/16, Mohit’s sacrifice 2/16
  2. Naman’s sacrifice 3/16, Suman’s gain 1/16, Mohit’s gain 2/16
  3. Naman’s sacrifice 3/16, Suman’s gain 2/16, Mohit’s gain 1/16
  4. Naman’s gain 3/16, Suman’s sacrifice 2/16, Mohit’s sacrifice 1/16
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) Naman’s sacrifice 3/16, Suman’s gain 1/16, Mohit’s gain 2/16

Q34.2023 Main 67/4/1 · Q151 mark

Niva, Naman and Nityam were partners sharing profits in the ratio of 4 : 3 : 2. Niva and Naman each give 1/9 from their share to Nityam on reconstitution of the firm. The new profit sharing ratio among Niva, Naman and Nityam will be :

  1. 3 : 4 : 2
  2. 2 : 3 : 4
  3. 4 : 2 : 3
  4. 3 : 2 : 4
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(D) 3:2:4

Q35.2023 Main 67/5/1 · Q4(a)1 mark

L, M and N are partners sharing profits in the ratio of 5 : 3 : 2. They decided to share profits equally with effect from 1st April, 2022. On that date, there was a balance of ₹ 2,00,000 in General Reserve and a credit balance of ₹ 4,00,000 in the Profit and Loss Account. The Journal Entry for the above on account of change in profit sharing ratio will be :

JOURNAL

ParticularsDebit Amt. (₹)Credit Amt. (₹)
(A)General Reserve A/c Dr.2,00,000
To Profit and Loss A/c2,00,000
(B)M’s Capital A/c Dr.80,000
N’s Capital A/c Dr.20,000
To L’s Capital A/c1,00,000
(C)General Reserve A/c Dr.2,00,000
Profit and Loss A/c Dr.4,00,000
To L’s Capital A/c2,00,000
To M’s Capital A/c2,00,000
To N’s Capital A/c2,00,000
(D)General Reserve A/c Dr.2,00,000
Profit and Loss A/c Dr.4,00,000
To L’s Capital A/c3,00,000
To M’s Capital A/c1,80,000
To N’s Capital A/c1,20,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D)

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
General Reserve A/c Dr.2,00,000
Profit and Loss A/c Dr.4,00,000
To L’s Capital A/c3,00,000
To M’s Capital A/c1,80,000
To N’s Capital A/c1,20,000
Q36.2023 Main 67/5/1 · Q4(b)1 mark

X, Y and Z are partners sharing profits and losses in the ratio of 2 : 3 : 1. They decided to share future profits in the ratio of 3 : 2 : 1 with effect from 1st April, 2022. At the time of change of profit sharing ratio, unrecorded furniture will be recorded in the books of Accounts by :

  1. Debiting it to Partners’ Capital Account
  2. Debiting it to Revaluation Account
  3. Crediting it to Revaluation Account
  4. Crediting it to Partners’ Capital Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) Crediting it to Revaluation Account

Q37.2023 Supp. 67/C/1 · Q5(b)1 mark

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 01.04.2023, they agreed to share profits and losses equally. Due to change in the profit sharing ratio, B’s gain or sacrifice will be :

  1. Gain 1/30
  2. Sacrifice 1/30
  3. Gain 5/30
  4. Sacrifice 4/30
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) Gain 1/30

Q38.SQP 2025-26 · Q111 mark

Building was appearing in the books at ₹ 20,00,000 which was overvalued by 25%. What amount will be shown in the Balance Sheet of a reconstituted firm for building?

  1. ₹ 25,00,000
  2. ₹ 16,00,000
  3. ₹ 24,00,000
  4. ₹ 15,00,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 16,00,000

Q39.SQP 2025-26 · Q161 mark

John and Sourabh were partners sharing Profit &Loss equally. They decided to share future Profit &Loss in the ratio 3:2. Their manager Arya met with an accident in the office itself and his claim for compensation amounted to ₹. 50,000. The firm had a Workmen Compensation Reserve of ₹. 80,000. Which of the following statement holds true at the time of reconstitution?

  1. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in old ratio.
  2. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in new ratio.
  3. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be credited to Revaluation Account.
  4. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be carried forward in the books of the firm without any treatment.
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(A) ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in old ratio.

Q40.SQP 2026-27 · Q11 mark

A, B and C are partners sharing profits in the ratio of 4:3:2. W.e.f. 1st April 2026 they decided to share future profits in the ratio of 1:1:1. On the date of reconstitution, Workmen Compensation Reserve appears in the books of the firm at ₹27,000, and the liability on account of compensation to workmen is calculated at ₹36,000. Partners decided not to alter the books of accounts. What entry will be passed to effect the above-mentioned change?

(A)A’s Capital Dr.
To C’s capital A/c
1,000
1,000
(B)C’s Capital A/c Dr.
To A’s Capital A/c
1,000
1,000
(C)Workmen Compensation Reserve A/c Dr.
To A’s Capital A/c
To B’s Capital A/c
To C’s Capital A/c
27,000
12,000
9,000
6,000
(D)Workmen Compensation Reserve A/c Dr.
Revaluation A/c Dr.
To Workmen Compensation Claim A/c
27,000
9,000


36,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) A’s Capital Dr. 1,000
To C’s capital A/c 1,000

Q41.SQP 2026-27 · Q101 mark

Machinery was appearing in the books at ₹12,00,000. It was found to be undervalued by 20%. At what amount the machinery will be shown in the Balance Sheet of the reconstituted firm?

  1. ₹14,00,000
  2. ₹15,00,000
  3. ₹12,00,000
  4. ₹16,00,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) ₹15,00,000

Q42.2026 Main 67/2/1 · Q18(b)3 marks

Manya, Vivek and Vishal were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2025, they decided to share future profits and losses in the ratio of 3:5:2. Their Balance Sheet as at 31st March, 2025 showed the following balances :

  1. General Reserve ₹ 2,40,000.
  2. Debit balance of ₹ 60,000 in Profit and Loss Account.

Goodwill of the firm was valued at ₹ 6,00,000 and revaluation of assets and re-assessment of liabilities resulted in a gain of ₹ 2,00,000. Partners decided to distribute the amount of General Reserve and Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books.

Pass necessary journal entries to give effect to the above.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Manya, Vivek and Vishal
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
Apr.1
General Reserve A/c Dr.
To Manya's Capital A/c
To Vivek's Capital A/c
To Vishal's Capital A/c
(General Reserve distributed among the partners in old profit sharing ratio) [1]
2,40,000
1,20,000
72,000
48,000
”Manya's Capital A/c Dr.
Vivek's Capital A/c Dr.
Vishal's Capital A/c Dr.
To Profit & Loss A/c
(Debit balance of Profit & Loss A/c distributed among the partners in old profit sharing ratio) [1]
30,000
18,000
12,000



60,000
”Vivek's Capital A/c Dr.
To Manya's Capital A/c
(Adjustment made for goodwill and gain on revaluation) [1]
1,60,000
1,60,000
Alternatively, the following 2 entries may be passed in place of the above entry-
”Vivek's Capital A/c Dr.
To Manya's Capital A/c
(Goodwill adjusted on change in profit sharing ratio) [½]
1,20,000
1,20,000
”Vivek's Capital A/c Dr.
To Manya's Capital A/c
(Revaluation gain adjusted through partners' capital accounts on change in profit sharing ratio) [½]
40,000
40,000

Working Notes:

ManyaVivekVishal
Old Share5/103/102/10
(-) New Share3/105/102/10
= Sacrificing Share2/10-2/10 (gain)-

(Note: No marks for working notes)

(1 + 1 + 1 = 3 marks)

Q43.2026 Main 67/4/1 · Q193 marks

Sanjana and Mehul were partners in a firm sharing profits and losses in the ratio of 4 : 1. From 1st April, 2025, they decided to share future profits and losses in the ratio of 5 : 3. On this date, their balance sheet showed a balance of ₹ 40,000 in General Reserve Account and a debit balance of ₹ 1,80,000 in the Profit and Loss Account. The partners decided to distribute the General Reserve, but decided not to disturb the Profit and Loss Account, which will continue in the books of the reconstituted firm.

Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Sanjana and Mehul
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2025
April 1
General Reserve A/c ... Dr.
To Sanjana’s Capital A/c
To Mehul’s Capital A/c
(General Reserve distributed among the partners in their old profit-sharing ratio) (1)
40,000


32,000
8,000
April 1Sanjana’s Capital A/c ... Dr.
To Mehul’s Capital A/c
(Adjustment entry passed for debit balance of Profit and loss account) (1)
31,500

31,500

Calculation of Sacrificing share: (1)

Sacrificing Share = Old Share – New Share

Sanjana = 4/5 – 5/8 = 32-25/40 = 7/40 sacrifice

Mehul = 1/5 – 3/8 = 8-15/40 = (7/40) gain

1 + 1 + 1 = 3 Marks

Q44.2025 Main 67/2/1 · Q173 marks

Anubha and Yuvika were partners in a firm sharing profits and losses in the ratio of 3 : 2. From 1st April 2024, they decided to share future profits and losses in the ratio of 2 : 3. On this date, their balance sheet showed a balance of ₹ 50,000 in General Reserve and a debit balance of ₹ 2,50,000 in Profit and Loss Account. Partners decided to write off Profit and Loss Account but decided not to distribute the General Reserve. Pass the necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Anubha and Yuvika
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Apr. 1
Anubha's Capital A/c Dr.1,50,000
Yuvika's Capital A/c Dr.1,00,000
    To Profit and Loss A/c2,50,000
(Debit balance of profit and loss account debited to the partners in their old profit sharing ratio)
Apr. 1Yuvika's Capital A/c Dr.10,000
    To Anubha's Capital A/c10,000
(Adjustment of General reserve due to change in profit sharing ratio)

Working Notes:

Old ratio = 3:2
New ratio = 2:3
Sacrificed share = Old share - New share
Sacrificed share of Anubha = 3/5 - 2/5 = 1/5 (sacrifice)
Sacrificed share of Yuvika = 2/5 - 3/5 = -1/5 (gain)

(Marks: 1 + 1 + 1 (working notes) = 3 marks)

Q45.2025 Main 67/4/1 · Q173 marks

Alok, Sameer and Tushar were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share future profits and losses in the ratio of 3 : 2 : 4. Their Balance Sheet as at 31st March, 2024 showed the following :

  1. Advertisement Suspense Account ₹ 90,000.
  2. Credit Balance of ₹ 2,70,000 in Profit and Loss Account.

Goodwill of the firm was valued at ₹ 4,50,000 and revaluation of assets and liabilities resulted in a loss of ₹ 1,80,000.

Partners did not want to distribute the amount of Advertisement Suspense Account and the Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books.

Pass a single adjustment entry to give effect to the above. Also show your workings clearly.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024
April 1
Tushar’s Capital A/c ... Dr.
  To Alok’s Capital A/c
  To Sameer’s Capital A/c
(Adjustment entry due to change in profit sharing ratio)
1,00,000
50,000
50,000

(1)

Working Notes
Old Ratio = Alok : Sameer : Tushar = 4:3:2
New Ratio = Alok : Sameer : Tushar = 3:2:4

Sacrificing Share = Old Share – New Share
Alok’s Sacrificing Share = 4/9 – 3/9 = 1/9 (sacrifice)
Sameer’s Sacrificing Share = 3/9 – 2/9 = 1/9 (sacrifice)
Tushar’s Sacrificing Share = 2/9 – 4/9 = -2/9 (gain) (1)

Particulars₹
Advertisement Suspense Account(90,000)
Credit Balance of Profit and Loss Account2,70,000
Goodwill of the firm4,50,000
Revaluation Loss(1,80,000)
Total4,50,000

Alok Sacrifices = 1/9 x 4,50,000 = ₹ 50,000, Sameer Sacrifices = 1/9 x 4,50,000 = ₹ 50,000, Tushar Gains = 2/9 x 4,50,000 = ₹ 1,00,000. (1)

(1) + (1) + (1) = 3 marks

Q46.2024 Main 67/2/1 · Q183 marks

Anu, Manu, Sonu and Rohan were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 1 : 2. With effect from 1st April, 2023, they decided to share profits and losses in the ratio of 2 : 4 : 1 : 3. Their Balance Sheet showed General Reserve of ₹ 90,000. The goodwill of the firm was valued at ₹ 4,50,000.

Pass necessary journal entries for the above on account of change in the profit sharing ratio. Show your working clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Anu, Manu, Sonu and Rohan — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2023
April 1
General Reserve A/c Dr.
To Anu’s Capital A/c
To Manu’s Capital A/c
To Sonu’s Capital A/c
To Rohan’s Capital A/c
(Distribution of General Reserve in old profit-sharing ratio) [1]
90,000




15,000
30,000
15,000
30,000
2023
April 1
Anu’s Capital A/c Dr.
Manu’s Capital A/c Dr.
To Sonu’s Capital A/c
To Rohan’s Capital A/c
(Adjustment for Goodwill on account of change in profit sharing ratio) [1]
15,000
30,000



30,000
15,000

Working notes:
Calculation of gain/ sacrifice [1]
Gaining Share = New share − Old share
Anu = 2/10 − 1/6 = 1/30 (Gain)
Manu = 4/10 − 2/6 = 2/30 (Gain)
Sonu = 1/10 − 1/6 = −2/30 (Sacrifice)
Rohan = 3/10 − 2/6 = −1/30 (Sacrifice)

= 3 marks

Q47.2024 Main 67/4/1 · Q173 marks

Reeha, Meenu and Sara were partners in a partnership firm sharing profits and losses in the ratio of 2:2:1. With effect from 1st April, 2023, they agreed to share profits and losses equally. On that date, there was a General Reserve of ₹ 50,000 in the books of the firm. It was agreed that :

  1. Goodwill of the firm be valued at ₹ 3,00,000.
  2. Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 30,000.

Pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Reeha, Meenu and Sara
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2023
Apr 1
General Reserve A/c ... Dr
To Reeha’s Capital A/c
To Meenu’s Capital A/c
To Sara’s Capital A/c
(General Reserve, transferred to partners’ capital accounts in old ratio)
50,000
20,000
20,000
10,000
”Revaluation A/c ... Dr
To Reeha’s Capital A/c
To Meenu’s Capital A/c
To Sara’s Capital A/c
(Profit on revaluation of assets and reassessment of liabilities transferred to partners’ capital accounts in old ratio)
30,000
12,000
12,000
6,000
”Sara’s Capital A/c ... Dr
To Reeha’s Capital A/c
To Meenu’s Capital A/c
(Share of goodwill adjusted to capital account of partners in their sacrificing ratio 1:1)
40,000
20,000
20,000

(1 × 3 = 3 Marks)

Note- No marks to be awarded for calculation of Sacrificing /Gaining Share.

Q48.2024 Main 67/5/1 · Q18(a)3 marks

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 ₹ 3,60,000 in General Reserve and a debit balance of ₹ 1,80,000 in the Profit and Loss Account. Pass single adjustment Journal entry for the above on account of change in the profit sharing ratio.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Mahesh, Ramesh and Naresh
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2023
Apr.1
Ramesh’s Capital A/c Dr.6,0001½
Naresh’s Capital A/c Dr.24,000
To Mahesh’s Capital A/c30,000
(Adjustment made for General Reserve and debit balance of Profit and loss Account on account of change in profit sharing ratio among partners)

Working Notes:

(i) Items to be adjusted: (1½ marks)

₹
General reserve3,60,000
Profit and Loss Account (Dr.)(1,80,000)
1,80,000

(ii) Calculation of sacrifice/ gain:
Sacrificing share = Old share − new share
Mahesh: 5/10 − 1/3 = 5/30 (sacrifice)
Ramesh: 3/10 − 1/3 = −1/30 (gain)
Naresh: 2/10 − 1/3 = −4/30 (gain)

(= 3 marks)

Note: In case an examinee has given only the journal entry correctly and has not shown the working, full credit should be given

Q49.2023 Main 67/1/1 · Q183 marks

Anu, Manu, Tanu and Kanu were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2 : 1. They decided to share profits and losses in the ratio of 4 : 2 : 3 : 1 with effect from 1st April, 2022. On this date, goodwill of the firm was valued at ₹ 1,20,000 and General Reserve appeared in the books at ₹ 36,000.

Pass necessary journal entries for the above transactions. Show your workings clearly.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Sacrificed Share = Old share – New share
Anu: 2/6 – 4/10 = (1/15) Gain
Manu: 1/6 – 2/10 = (1/30) Gain
Tanu: 2/6 – 3/10 = 1/30 Sacrifice
Kanu: 1/6 – 1/10 = 1/15 Sacrifice [1]

Books of Anu, Manu, Tanu and Kanu — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2022
April 1
General Reserve A/c Dr.36,0001
    To Anu’s Capital A/c12,000
    To Manu’s Capital A/c6,000
    To Tanu’s Capital A/c12,000
    To Kanu’s Capital A/c6,000
(General reserve distributed in old ratio)
,,Anu’s Capital A/c Dr.8,0001
Manu’s Capital A/c Dr.4,000
    To Tanu’s Capital A/c4,000
    To Kanu’s Capital A/c8,000
(Goodwill adjusted on change in profit sharing ratio)

(1 + 1 + 1 = 3 marks)

Q50.2023 Main 67/2/1 · Q203 marks

Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2022, they mutually agreed to share profits and losses in the ratio of 2:2:1. It was agreed that :

  1. Goodwill of the firm was valued at ₹1,40,000.
  2. Profit on revaluation of assets and re-assessment of liabilities amounted to ₹1,20,000.

Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes clearly.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Mita, Geeta and Mohit
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2022
April 1
Geeta's Capital A/c Dr
To Mita's Capital A/c
(Goodwill adjusted on change in profit sharing ratio) [½]
14,000
14,000
April 1Revaluation A/c Dr
To Mita's Capital A/c
To Geeta's Capital A/c
To Mohit's Capital A/c
(Profit on revaluation of assets and re-assessment of liabilities transferred to partners in old profit sharing ratio) [1]
1,20,000
60,000
36,000
24,000

Working Notes:-
1. Calculation of Gain/ Sacrifice = New share − Old share

Mita's share = 5/10 − 2/5 = 1/10 (Sacrifice)
Geeta's share = 3/10 − 2/5 = (−1/10) (Gain)
Mohit's share = 2/10 − 1/5 = Nil

[1½] (=3 Marks)

Q51.SQP 2025-26 · Q17(b)3 marks

Yashasvi, Nitish and Harshit were partners sharing Profit &Loss in the ratio 5:3:2. W.e.f 01 April, 2025, they decided to share future Profit &Loss in the ratio 4:3:2. On the date of reconstitution Goodwill was appearing in the books of ₹ 4,00,000. Goodwill of the firm was valued at ₹ 7,20,000 on the date of reconstitution. Determine gain or sacrifice for each partner and pass necessary entries.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Yashasvi’s Gain/sacrifice = 5/10 – 4/9 = 5/90 - Sacrifice,
Nitish’s Gain/sacrifice = 3/10 – 3/9 = (-) 3/90 - Gain and
Harshit’s Gain/sacrifice = 2/10 – 2/9 = (-) 2/90 – Gain

Journal

DateParticularsDr (₹)Cr (₹)
(i)Yashasvi’s Capital A/c Dr.
Nitish’s Capital A/c Dr.
Harshit’s Capital A/c Dr.
To Goodwill A/c
(Being existing goodwill written off)
2,00,000
1,20,000
80,000



4,00,000
(ii)Nitish’s Capital A/c Dr.
Harshit’s Capital A/c Dr.
To Yashasvi’s Capital A/c
Being adjustment entry passed for goodwill)
24,000
16,000


40,000
Q52.SQP 2025-26 · Q203 marks

Ankur and Vikram were partners sharing Profits &Losses in the ratio 3:2. They decided to share future Profits & Losses equally. On the date of reconstitution there was Investment Fluctuation Reserve of ₹ 4,00,000 in the books of accounts. Pass entries in the following cases

  1. Value of Investment reduced by ₹ 2,50,000.
  2. Value of Investment increased by ₹ 5,00,000.
  3. There was no change in value of investments.

(1+1.5+0.5)

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
AInvestment Fluctuation Reserve A/c Dr.
To Investment A/c
To Ankur’s Capital A/c
To Vikram’s Capital A/c
(Being decline in the value of Investment credited to Investment A/c and remaining reserve credited to old partners.)
4,00,000
2,50,000
90,000
60,000
BInvestment Fluctuation Reserve A/c Dr.
To Ankur’s Capital A/c
To Vikram’s Capital A/c
(Being reserve credited to old partners.)
4,00,000
2,40,000
1,60,000
Investment A/c Dr.
To Revaluation A/c
(Being investment value increased)
5,00,000
5,00,000
Revaluation A/ c Dr.
To Ankur’s Capital A/c
To Vikram’s Capital A/c
(Being profit on revaluation distributed among partners)
5,00,000
3,00,000
2,00,000
CInvestment Fluctuation Reserve A/c Dr.
To Ankur’s Capital A/c
To Vikram’s Capital A/c
(Being reserve credited to old partners.)
4,00,000
2,40,000
1,60,000
Q53.2026 Main 67/3/1 · Q224 marks

Raman, Daman and Vikram were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. On 31st March, 2025, their capitals were ₹6,00,000; ₹3,00,000 and ₹2,00,000 respectively. With effect from 1st April, 2025, they decided to share the future profits equally. Due to change in profit sharing ratio, it was agreed that :

  1. Goodwill of the firm will be valued at ₹3,00,000.
  2. Revaluation of assets and liabilities will be carried out. The revaluation of assets and liabilities resulted in a loss of ₹12,000.
  3. Total capital of the reconstituted firm will be ₹12,00,000 and will be in the new profit sharing ratio of the partners. For this purpose, necessary cash will be brought in by the partners or paid off to the partners, as the case may be.

Prepare Partners’ Capital Accounts on the reconstitution of the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Dr. Partners’ Capital Accounts Cr.

ParticularsRaman (₹)Daman (₹)Vikram (₹)ParticularsRaman (₹)Daman (₹)Vikram (₹)
To Raman’s Capital A/c (½)--50,000By Balance b/d (½)6,00,0003,00,0002,00,000
To Daman’s Capital A/c (½)--20,000By Vikram’s Capital A/c (½)50,00020,000-
To Revaluation A/c (loss) (½)6,0004,8001,200By Cash /Bank A/c (½)-84,8002,71,200
To Cash /Bank A/c (½)2,44,000--
To Balance c/d (½)4,00,0004,00,0004,00,000
6,50,0004,04,8004,71,2006,50,0004,04,8004,71,200

(4 Marks)

Q54.2026 Main 67/5/1 · Q22(b)4 marks

Annu, Bandhu, Sheelu and Golu were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2 : 1. On 1st April, 2025, they decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹4,00,000. Calculate gain or sacrifice of the partners on change in profit sharing ratio and pass a single adjustment journal entry for the treatment of goodwill.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Calculation of gain or sacrifice of the partners

Sacrificing share = Old Share – New Share

Annu4/10 - 1/4 = 6/40 or 3/20 Sacrifice½
Bandhu3/10 - 1/4 = 2/40 or 1/20 Sacrifice½
Sheelu2/10 - 1/4 = (2/40) or (1/20) (Gain)½
Golu1/10 - 1/4 = (6/40) or (3/20) (Gain)½

Books of Annu, Bandhu, Sheelu and Golu
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
April 1
Sheelu’s Capital A/c ……Dr.20,000
Golu’s Capital A/c ……Dr.60,000
To Annu’s Capital A/c60,000
To Bandhu’s Capital A/c20,000
(Adjustment entry for goodwill due to change in profit sharing ratio) [2 Marks]

(½ + ½ + ½ + ½ + 2 = 4 Marks)

Q55.2024 Main 67/3/1 · Q224 marks

Frank, George and Hemant were partners in a firm sharing profits in the ratio of 5 : 3 : 2. They decided to change their profit sharing ratio to 2 : 5 : 3 with effect from 1st April, 2023. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Frank, George and Hemant as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Frank 4,00,000
George 3,00,000
Hemant 2,00,000
9,00,000Land
Building
Machinery
Stock
5,00,000
3,00,000
2,00,000
1,50,000
Creditors
Employees’ Provident Fund
General Reserve
5,00,000
1,00,000
2,00,000
Debtors
Cash
2,50,000
3,00,000
17,00,00017,00,000

It was decided that :

  1. The value of land having appreciated be brought up to ₹ 6,50,000.
  2. Goodwill of the firm was valued at ₹ 2,00,000. Goodwill was not to appear in the books of the firm.

Pass the necessary journal entries in the books of the firm.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Frank, George and Hemant
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2023
April 1
General Reserve A/c Dr.
To Frank’s Capital A/c
To George’s Capital A/c
To Hemant’s Capital A/c
(General reserve transferred to old partners’ capital accounts in old ratio.)
2,00,000
1,00,000
60,000
40,000
”Land A/c Dr.
To Revaluation A/c
(Value of land increased by ₹ 1,50,000.)
1,50,000
1,50,000
”Revaluation A/c Dr.
To Frank’s Capital A/c
To George’s Capital A/c
To Hemant’s Capital A/c
(Gain on revaluation transferred to old partners’ capital accounts in old ratio.)
1,50,000
75,000
45,000
30,000
”George’s Capital A/c Dr.
Hemant’s Capital A/c Dr.
To Frank’s Capital A/c
(Goodwill adjusted due to change in profit sharing ratio.)
40,000
20,000


60,000

1 x 4 = 4 marks

Q56.2026 Main 67/5/1 · Q26(a)6 marks

Promil, Kamlesh and Ritika were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2025 they decided to share future profits in the ratio of 2 : 3 : 5. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Promil, Kamlesh and Ritika as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors3,00,000Bank1,80,000
General Reserve1,60,000Sundry Debtors1,20,000
Capitals :Stock2,40,000
Promil2,80,000Land and Building5,60,000
Kamlesh2,20,000
Ritika1,40,0006,40,000
11,00,00011,00,000

It was agreed that :

  1. Land and Building will be valued at ₹6,62,000.
  2. A provision of 5% on debtors will be made for bad and doubtful debts.
  3. Goodwill of the firm will be valued at ₹1,80,000 and the same will be treated without opening goodwill account.
  4. The value of stock will be reduced to ₹2,00,000.

Showing your working clearly, pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Promil, Kamlesh and Ritika
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
April 1
General Reserve A/c ……Dr.1,60,000
To Promil’s Capital A/c80,000
To Kamlesh’s Capital A/c48,000
To Ritika’s Capital A/c32,000
(General reserve transferred to all partners in old ratio) [1 mark]
,,Revaluation A/c ……Dr.46,000
To Provision for Bad Debts A/c6,000
To Stock A/c40,000
(Revaluation account debited for creating provision for bad debts and reduction in stock) [1 mark]
,,Land and Building A/c ……Dr.1,02,000
To Revaluation A/c1,02,000
(Land and building revalued) [1 mark]
,,Revaluation A/c ……Dr.56,000
To Promil’s Capital A/c28,000
To Kamlesh’s Capital A/c16,800
To Ritika’s Capital A/c11,200
(Gain on revaluation transferred to all partners in old ratio) [1 mark]
Ritika’s Capital A/c ……Dr.54,000
To Promil’s Capital A/c54,000
(Adjustment entry for goodwill made) [1 mark]

(Note: If an examinee has passed separate entries for each revaluation, full credit is to be given)

Working Notes:

Calculation of sacrifice/gain:

Sacrificing share = Old Share - New Share

Promil : 5/10 - 2/10 = 3/10 Sacrifice
Kamlesh : 3/10 - 3/10 = Nil
Ritika : 2/10 - 5/10 = (3/10) Gain [1 mark]

(1 + 1 + 1 + 1 + 1 + 1 = 6 Marks)

The MS prints Promil’s share of General Reserve as “80.000” (read as ₹80,000).

Q57.2026 Supp. 67/7/1 · Q246 marks

Dhruv, Ravi and Saurabh were partners in a firm, sharing profits and losses in the ratio of 2 : 3 : 3. With effect from 1st April, 2025, they decided to share future profits and losses in the ratio of 3 : 3 : 2. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Dhruv, Ravi and Saurabh as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors3,00,000Cash at Bank60,000
Bank Loan1,40,000Sundry Debtors1,20,000
General Reserve1,60,000Stock1,40,000
Capitals :Plant and Machinery2,20,000
Dhruv2,00,000Land and Building5,60,000
Ravi1,60,000
Saurabh1,40,0005,00,000
11,00,00011,00,000

The following terms were agreed upon :

  1. The value of stock be reduced to ₹ 1,30,000.
  2. Land and Building were found undervalued by ₹ 96,000.
  3. A provision of 5% on sundry debtors was to be made for doubtful debts.
  4. The goodwill of the firm was valued at two years purchase of average net profits of last four years. The profits of last four years were ₹ 46,000, ₹ 35,000, ₹ 39,000 and ₹ 40,000, respectively.

Pass necessary journal entries for the above transactions in the books of the firm. Show your working clearly.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Dhruv, Ravi and Saurabh
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
Apr 1
Land and Building A/c  Dr.
    To Revaluation A/c
(Increase in the value of fixed assets)
96,000

96,000
”Revaluation A/c  Dr.
    To Provision for doubtful debts A/c
    To Stock A/c
(Decrease in the value of stock and creation of provision for doubtful debts)
16,000


6,000
10,000
”Revaluation A/c  Dr.
    To Dhruv’s Capital A/c
    To Ravi’s Capital A/c
    To Saurabh’s Capital A/c
(Profit on revaluation transferred to partners’ capital accounts in the old ratio)
80,000



20,000
30,000
30,000
”General Reserve A/c  Dr.
    To Dhruv’s Capital A/c
    To Ravi’s Capital A/c
    To Saurabh’s Capital A/c
(General reserve transferred to partners’ capital accounts in the old ratio)
1,60,000



40,000
60,000
60,000
”Dhruv’s Capital A/c  Dr.
    To Saurabh’s Capital A/c
(Goodwill adjusted in partners’ capital accounts)
10,000

10,000

(1 × 5)

Working Notes:

Calculation of Gain/ sacrifice made by each partner:

DhruvRaviSaurabh
Old share2/83/83/8
New share3/83/82/8
Gain/ sacrifice1/8 (gain)-1/8 (sacrifice)

Calculation of Goodwill:
Goodwill = Average Profits × Number of years’ purchase
Average Profits = (₹46,000 + ₹ 35,000 + ₹39,000 + ₹40,000)/4
= ₹1,60,000/4
= ₹40,000
Goodwill = ₹40,000 × 2
= ₹80,000

(1 mark for working notes; 5 + 1 = 6 marks)

Q58.SQP 2026-27 · Q246 marks

A, B and C are partners sharing profits and losses in the ratio of 4:3:3.

They decided to change their profit-sharing ratio to 3:2:5 with effect from 1st April 2026.

Balance Sheet of A, B and C
as at 31st March 2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,20,000Land & Building4,00,000
General Reserve90,000Machinery2,00,000
Profit & Loss A/c60,000Stock1,50,000
A’s Capital3,00,000Debtors1,00,000
B’s Capital2,50,000Cash1,70,000
C’s Capital2,00,000
10,20,00010,20,000

Additional Information:

1. Goodwill of the firm is valued at ₹1,50,000.
2. Land & Building is revalued at ₹4,50,000.
3. A provision for doubtful debts @5% is to be created on debtors.
4. An unrecorded liability of ₹20,000 is discovered.

Based on the above information answer the following MCQs:

I. The net sacrifice made by partners (in terms of share of profit) is:

  1. A sacrifices 1/10 and B sacrifices 1/10; C gains 1/5
  2. A gains 1/10; B gains 1/10; C sacrifices 1/10
  3. A sacrifices 1/10; B gains 1/10; C gains 1/5
  4. A gains 1/10, B gains 1/10; C sacrifices 1/5

II. Which of the following journal entries is correct for treatment of goodwill?

  1. A’s Capital A/c Dr.
    To C’s Capital A/c
  2. A’s Capital A/c Dr.
    B’s Capital A/c Dr.
    To C’s Capital A/c
  3. C’s Capital A/c Dr.
    To A’s Capital A/c
    To B’s Capital A/c
  4. C’s Capital A/c Dr.
    A’s Capital A/c Dr.
    To Goodwill A/c

III. The amount of goodwill to be compensated by gaining partner(s) is:

  1. ₹45,000
  2. ₹30,000
  3. ₹75,000
  4. ₹1,50,000

IV. The net gain on revaluation will be:

  1. ₹25,000
  2. ₹20,000
  3. ₹5,000
  4. ₹30,000

V. General Reserve and Profit & Loss Account will be distributed in:

  1. New ratio
  2. Gaining ratio
  3. Old ratio
  4. Sacrificing ratio

VI. After all adjustments, the balance of C’s capital will be?

  1. ₹2,22,500
  2. ₹2,35,000
  3. ₹3,00,000
  4. ₹3,50,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

I. (A) A sacrifices 1/10 and B sacrifices 1/10; C gains 1/5

II. (C) C’s Capital A/c Dr.
To A’s Capital A/c
To B’s Capital A/c

III. (B) ₹ 30,000

IV. (A) ₹ 25,000

V. (C) Old ratio

VI. (A) ₹ 2,22,500

Part A · Partnership

4. Admission of a Partner

Q1.2026 Main 67/1/1 · Q51 mark

Soni and Kush were partners in a firm sharing profits and losses in the ratio of 4 : 5. Hitesh was admitted as a new partner for 1/5th share in the profits of the firm. After all adjustments regarding general reserve, goodwill, and gain on revaluation of assets and reassessment of liabilities, the balances in capital accounts of Soni and Kush were ₹7,00,000 and ₹13,00,000 respectively. Hitesh brought in proportionate capital for his 1/5th share in the profits of the firm. The amount of proportionate capital brought in by Hitesh was :

  1. ₹25,00,000
  2. ₹20,00,000
  3. ₹5,00,000
  4. ₹10,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹5,00,000

Q2.2026 Main 67/1/1 · Q151 mark

Chaman and Vatika were partners in a firm sharing profits and losses in the ratio of 4 : 5. They admitted Mohan as a new partner for 1/5th share in the profits of the firm. Mohan acquired his share equally from Chaman and Vatika. The new profit sharing ratio of Chaman, Vatika and Mohan will be :

  1. 2 : 2 : 1
  2. 31 : 41 : 18
  3. 41 : 31 : 18
  4. 7 : 8 : 5
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) 31:41:18

Q3.2026 Main 67/2/1 · Q161 mark

Devki and Neena were partners in a firm sharing profits and losses in the ratio of 4:3. Amar was admitted as a new partner for 1/5th share in the profits of the firm. Amar acquired 1/3rd of his share from Devki. How much share did Amar acquire from Neena ?

  1. 2/3
  2. 2/15
  3. 1/15
  4. 3/7
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) 2/15

Q4.2026 Main 67/3/1 · Q11 mark

Dharam and Karan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 1st April, 2025, they admitted Vinod as a new partner in the firm. Dharam surrendered 1/3rd of his share in favour of Vinod and Karan surrendered 1/4th of his share in favour of Vinod. The new profit sharing ratio will be :

  1. 7 : 3 : 1
  2. 56 : 27 : 10
  3. 27 : 56 : 10
  4. 56 : 27 : 37
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) 56 : 27 : 37

Q5.2026 Main 67/3/1 · Q21 mark

Assertion (A) : In case of admission of a new partner in the partnership firm, there is a need to ascertain the new profit sharing ratio among all the partners.

Reason (R) : On admission of a new partner, the profit sharing ratio among the old partners will change, keeping in view their respective contribution to the profit sharing ratio of the incoming partner.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)

Q6.2026 Main 67/3/1 · Q151 mark

Atul and Nisha were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their capitals were ₹1,20,000 and ₹90,000 respectively. On 1st April, 2025, they admitted Mona as a new partner in the firm for 1/4th share in the future profits. Mona brought ₹1,00,000 as her capital. The value of goodwill of the firm was :

  1. ₹22,500
  2. ₹4,00,000
  3. ₹90,000
  4. ₹1,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C) ₹90,000

Q7.2026 Main 67/3/1 · Q161 mark

Yashoda and Devi were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, their balance sheet showed land and building at ₹20,00,000 and furniture at ₹6,00,000. On that date they admitted Poonam as a new partner for 1/4th share in the future profits of the firm. On Poonam’s admission, it was found that land and building is undervalued by 20%. On Poonam’s admission, Revaluation Account will be :

  1. debited by ₹5,00,000
  2. debited by ₹25,00,000
  3. credited by ₹25,00,000
  4. credited by ₹5,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) credited by ₹5,00,000

Q8.2026 Main 67/4/1 · Q21 mark

P, Q and R were partners in a firm sharing profits and losses in the ratio of 6 : 5 : 4. They admitted S as a new partner for 1/8th share in the profits of the firm. It was agreed that Q would retain his original share. The sacrificing ratio of P and R will be :

  1. 6 : 5
  2. 4 : 5
  3. 3 : 2
  4. 5 : 4
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) 3 : 2

Q9.2026 Main 67/4/1 · Q6(a)1 mark

Rohan and Meeta were partners in a firm sharing profits and losses in the ratio of 5 : 4. Their capitals were ₹ 3,00,000 and ₹ 2,00,000 respectively. They admitted Kabir as a new partner for 1/5th share in the profits of the firm. Kabir brought ₹ 1,50,000 as his capital. Kabir’s share in the goodwill of the firm was :

  1. ₹ 50,000
  2. ₹ 20,000
  3. ₹ 1,00,000
  4. ₹ 2,50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) ₹ 20,000

Q10.2026 Main 67/5/1 · Q21 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : At the time of admission of a new partner in a partnership firm, the newly admitted partner brings an agreed amount of capital either in cash or in kind.

Reason (R) : On admission, the new partner gets the right to acquire share in the assets and profits of the partnership firm.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q11.2026 Main 67/5/1 · Q4(a)1 mark

Guru and Prakash were partners in a firm sharing profits and losses in the ratio of 7 : 3. They admitted Anu as a new partner for 1/4th share in the profits of the firm. On the date of Anu’s admission, the Profit and Loss Account of Guru and Prakash showed a credit balance of ₹40,000. The necessary journal entry for its treatment will be :

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Profit and Loss A/c ……Dr.40,000
To Guru’s Capital A/c21,000
To Prakash’s Capital A/c9,000
To Anu’s Capital A/c10,000
(B)Profit and Loss A/c ……Dr.40,000
To Guru’s Capital A/c28,000
To Prakash’s Capital A/c12,000
(C)Guru’s Capital A/c ……Dr.21,000
Prakash’s Capital A/c ……Dr.9,000
Anu’s Capital A/c ……Dr.10,000
To Profit and Loss A/c40,000
(D)Guru’s Capital A/c ……Dr.28,000
Prakash’s Capital A/c ……Dr.12,000
To Profit and Loss A/c40,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B)

ParticularsDr. Amount (₹)Cr. Amount (₹)
(B)Profit and Loss A/c ……Dr.40,000
To Guru’s Capital A/c28,000
To Prakash’s Capital A/c12,000
Q12.2026 Main 67/5/1 · Q111 mark

Sujata and Laxmi were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2025, they admitted Raghu as a new partner for 1/5th share in the profits of the firm. On the date of Raghu’s admission, it was found that the equipment is undervalued by ₹90,000. After revaluation, the Balance Sheet of Sujata, Laxmi and Raghu showed equipment at ₹3,00,000. The value of equipment shown in the books of the firm of Sujata and Laxmi before Raghu’s admission was :

  1. ₹3,90,000
  2. ₹2,10,000
  3. ₹3,00,000
  4. ₹90,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) ₹2,10,000

Q13.2026 Supp. 67/7/1 · Q1(b)1 mark

Atul and Raj were partners in a firm, sharing profits and losses in the ratio of 4 : 3. Ira was admitted as a new partner for 1/4th share in the profits of the firm. Ira brought ₹ 3,50,000 as her capital and ₹ 1,00,000 as her share of goodwill premium. The value of firm’s goodwill was :

  1. ₹ 1,00,000
  2. ₹ 4,50,000
  3. ₹ 4,00,000
  4. ₹ 25,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) ₹4,00,000

Q14.2026 Supp. 67/7/1 · Q2(a)1 mark

Avi and Gita were partners in a firm, sharing profits and losses in the ratio of 2 : 1. They admitted Suhaan as a new partner for 1/4th share in the profits of the firm. Suhaan acquired his share from Avi and Gita in the ratio of 1 : 2. The new profit sharing ratio between Avi, Gita and Suhaan will be :

  1. 2:1:1
  2. 1:2:1
  3. 1:1:1
  4. 7:2:3
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) 7:2:3

Q15.2026 Supp. 67/7/1 · Q2(b)1 mark

Anya and Shiv were partners in a firm, sharing profits and losses in the ratio of 4 : 1. They admitted Girish as a new partner in the firm. Anya sacrificed 1/4th of her share and Shiv sacrificed 1/10th of his share in favour of Girish. The new profit sharing ratio between Anya, Shiv and Girish will be :

  1. 4:1:5
  2. 4:3:3
  3. 6:1:3
  4. 30 : 9 : 11
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) 30:9:11

Q16.2026 Supp. 67/7/1 · Q8(b)1 mark

Gautam and Sunita were partners in a firm, sharing profits and losses in the ratio of 3 : 1. Their capitals were ₹ 5,00,000 and ₹ 2,00,000 respectively. On 1st April, 2025, they admitted Namita as a new partner in the firm for 1/4th share in the future profits. Namita brought ₹ 3,00,000 as her capital. The goodwill of the firm on Namita’s admission was :

  1. ₹ 2,00,000
  2. ₹ 12,00,000
  3. ₹ 50,000
  4. ₹ 3,00,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) ₹2,00,000

Q17.2026 Supp. 67/7/1 · Q161 mark

Prerna and Riya were partners in a firm, sharing profits and losses in the ratio of 4 : 3. Arun was admitted as a new partner for 1/5th share in the profits of the firm. Arun brought ₹ 80,000 as his share for premium for goodwill and proportionate capital. The capitals of Prerna and Riya, after all adjustments, were ₹ 2,50,000 and ₹ 1,50,000 respectively. The capital brought in by Arun was :

  1. ₹ 4,00,000
  2. ₹ 1,00,000
  3. ₹ 5,00,000
  4. ₹ 80,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ₹1,00,000

Q18.2025 Main 67/1/1 · Q51 mark

Moksh and Pran were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their capitals were ₹ 5,00,000 and ₹ 3,00,000 respectively. They admitted Tushar as a new partner on 1st April, 2024 for 1/4th share in future profits. Tushar brought ₹ 4,00,000 as his share of capital. The goodwill of the firm on Tushar's admission will be :

  1. ₹ 16,00,000
  2. ₹ 4,00,000
  3. ₹ 8,00,000
  4. ₹ 12,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) ₹ 4,00,000

Q19.2025 Main 67/1/1 · Q161 mark

Nita, Vidur and Mita were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 1. On 1st April 2024, they decided to admit Samir as a new partner. The new profit sharing ratio between Nita, Vidur, Mita and Samir will now be 1 : 1 : 1 : 1. The balance sheet of Nita, Vidur and Mita before Samir's admission showed machinery at ₹ 6,00,000. On the date of admission, it was found that the machinery is overvalued by 20%.

The value of machinery shown in the new Balance Sheet after Samir's admission will be :

  1. ₹ 7,50,000
  2. ₹ 4,80,000
  3. ₹ 7,20,000
  4. ₹ 5,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) ₹ 5,00,000

Q20.2025 Main 67/2/1 · Q11 mark

Arun, Bashir and Joseph were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Daksh as a new partner who acquired his share entirely from Arun. If Arun sacrificed 1/5th from his share to Daksh, Daksh's share in the profits of the firm will be :

  1. 1/10
  2. 1/5
  3. 3/10
  4. 2/5
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) 1/5

Q21.2025 Main 67/2/1 · Q41 mark

Pulkit and Ravinder were partners in a firm sharing profits and losses in the ratio of 3 : 2. Sikander was admitted as a new partner for 1/5th share in the profits of the firm. Pulkit, Ravinder and Sikander decided to share future profits in the ratio of 2 : 2 : 1. Sikander brought ₹ 5,00,000 as his capital and ₹ 10,00,000 as his share of premium for goodwill. The amount of premium for goodwill that will be credited to the old partners' capital accounts will be :

  1. Pulkit's Capital Account ₹ 10,00,000
  2. Pulkit's Capital Account ₹ 6,00,000 and Ravinder's Capital Account ₹ 4,00,000
  3. Pulkit's Capital Account ₹ 5,00,000 and Ravinder's Capital Account ₹ 5,00,000
  4. Pulkit's Capital Account ₹ 2,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Pulkit's Capital Account ₹10,00,000

Q22.2025 Main 67/2/1 · Q51 mark

Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Maddy for 1/4th share in future profits. Maddy brought ₹ 8,00,000 as his capital and ₹ 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2 : 1 : 1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal's capital was ₹ 15,00,000 and Laura's capital was ₹ 8,00,000. It was agreed that partners' capitals should be in proportion to their new profit sharing ratio taking Maddy's capital as base. The adjustment was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was :

  1. ₹ 1,00,000
  2. ₹ 8,00,000
  3. ₹ 16,00,000
  4. ₹ 12,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) ₹1,00,000

Q23.2025 Main 67/2/1 · Q91 mark

Suhas and Vilas were partners in a firm with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. They admitted Prabhas as a new partner for 1/5th share in future profits. Prabhas brought ₹ 2,00,000 as his capital. Prabhas' share of goodwill will be :

  1. ₹ 1,00,000
  2. ₹ 10,00,000
  3. ₹ 9,00,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) ₹20,000

Q24.2025 Main 67/4/1 · Q11 mark

Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mohan was admitted as a new partner for 1/5th share in the profits of the firm. Mohan brought ₹ 2,50,000 as his share of capital and ₹ 2,00,000 as his share of goodwill premium. The value of the firm’s goodwill was :

  1. ₹ 2,00,000
  2. ₹ 4,50,000
  3. ₹ 12,50,000
  4. ₹ 10,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) ₹ 10,00,000

Q25.2025 Main 67/4/1 · Q41 mark

Prakhar and Rajan were partners in a firm sharing profits and losses in the ratio of 3 : 2 with capitals of ₹ 10,00,000 and ₹ 9,00,000 respectively. Siddharth was admitted as a new partner for 1/5th share in the profits of the firm. The new profit sharing ratio between Prakhar, Rajan and Siddharth was agreed at 12 : 8 : 5. The sacrificing ratio of Prakhar and Rajan will be :

  1. 3 : 2
  2. 1 : 1
  3. 2 : 3
  4. 10 : 9
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) 3:2

Q26.2025 Main 67/4/1 · Q51 mark

Kabir and Lara were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mark was admitted as a new partner for 2/5th share in the profits of the firm. Mark was to bring 2/5th of the combined capital of Kabir and Lara after all adjustments are carried out. The capitals of Kabir and Lara after all adjustments were ₹ 8,00,000 and ₹ 7,00,000 respectively. The capital brought by Mark was :

  1. ₹ 3,75,000
  2. ₹ 3,00,000
  3. ₹ 6,00,000
  4. ₹ 15,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) ₹ 6,00,000

Q27.2025 Main 67/5/1 · Q2(a)1 mark

Rani, Maharani and Laxmi were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. On 1st April, 2024 they admitted Reena as a new partner for 1/5th share in the profits of the firm. Reena acquired her share from Rani and Maharani in the ratio of 3 : 2. The new profit sharing ratio between Rani, Maharani, Laxmi and Reena will be :

  1. 51 : 59 : 40 : 50
  2. 51 : 59 : 50 : 40
  3. 59 : 51 : 50 : 40
  4. 40 : 51 : 59 : 50
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) 51:59:50:40

Q28.2025 Main 67/5/1 · Q161 mark

Ajay and Parth were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2024, they admitted Vinod as a new partner in the firm. The new profit sharing ratio on Vinod’s admission was 2 : 1 : 1. Ajay’s sacrifice on Vinod’s admission was :

  1. 1/12
  2. Nil
  3. 1/6
  4. 1/4
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) 1/6

Q29.2025 Main 67/6/1 · Q11 mark

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. D was admitted as a new partner for 1/5th share in the profits of the firm. D acquired his share entirely from A. The new profit sharing ratio between A, B, C and D will be :

  1. 5 : 2 : 2 : 1
  2. 3 : 3 : 2 : 2
  3. 3 : 2 : 3 : 2
  4. 4 : 3 : 2 : 1
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) 3 : 3 : 2 : 2

Q30.2025 Main 67/6/1 · Q5(b)1 mark

Murthy and Madhavan were partners in a firm sharing profits and losses in the ratio of 3 : 1. They admitted Shriniwas as a new partner in the firm. On admission of Shriniwas, there existed a balance of ₹8,00,000 in debtors account and a balance of ₹50,000 in provision for bad debts account. Debtors of ₹60,000 proved bad and hence were written off. It was decided to maintain a provision for bad debts at 10% of the debtors. The revaluation account will be debited by ________ on the reconstitution of the firm.

  1. ₹80,000
  2. ₹10,000
  3. ₹84,000
  4. ₹74,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) ₹84,000

Q31.2025 Main 67/6/1 · Q15(b)1 mark

Giri and Shyam were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were ₹1,60,000 and ₹1,00,000 respectively. Hema was admitted for 1/5th share in the profits of the firm. Hema brought ₹1,50,000 as her capital. The goodwill of the firm on Hema's admission was :

  1. ₹4,10,000
  2. ₹7,50,000
  3. ₹3,40,000
  4. ₹2,50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) ₹3,40,000

Q32.2025 Main 67/7/1 · Q41 mark

Nandan and Abhinandan were partners in a firm. They admitted Govindan as a new partner for 1/3rd share in the profits. On Govindan’s admission, the Balance Sheet of the firm showed sundry debtors at ₹3,00,000 and a provision for bad debts at ₹24,000. It was decided to maintain the provision for bad debts at 10% of the debtors.

Which of the following journal entries will show the correct accounting treatment for the above transactions ?

Journal

  1. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Revaluation A/c ... Dr.30,000
    To Provision for Bad Debts30,000
  2. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Revaluation A/c ... Dr.6,000
    To Provision for Bad Debts6,000
  3. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Govindan’s A/c ... Dr.2,000
    To Provision for Bad Debts2,000
  4. ParticularsDr. Amount (₹)Cr. Amount (₹)
    Nandan’s A/c ... Dr.2,000
    Abhinandan’s A/c ... Dr.2,000
    Govindan’s A/c ... Dr.2,000
    To Provision for Bad Debts6,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B)

ParticularsDr. Amount (₹)Cr. Amount (₹)
Revaluation A/c ... Dr.6,000
To Provision for Bad Debts6,000
Q33.2025 Main 67/7/1 · Q161 mark

Jim and Joy were partners in a firm sharing profits and losses equally. On 1st April, 2024, they admitted John as a new partner for 1/5th share in the profits of the firm. On the date of John’s admission, the Balance Sheet of Jim and Joy showed a debit balance of ₹45,000 in Profit and Loss Account.

From the following, what will be the accounting treatment for this balance on John’s admission ?

  1. Debit Jim and Joy by ₹22,500 each and Credit Profit and Loss Account by ₹45,000.
  2. Debit Jim and Joy by ₹18,000 each, Debit John by ₹9,000 and Credit Profit and Loss Account by ₹45,000.
  3. Debit John by ₹45,000 and Credit Jim and Joy by ₹22,500 each.
  4. Debit Profit and Loss Account by ₹45,000 and Credit Jim and Joy by ₹22,500 each.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) Debit Jim and Joy by ₹22,500 each and credit Profit and Loss Account by ₹45,000.

Q34.2025 Supp. 67/S/1 · Q4(a)1 mark

Ali and Bani were partners in a firm. They admitted Chaman as a new partner with 1/4th share in the profits of the firm. Chaman brought ₹ 5,00,000 as his share of capital. The value of assets of the firm on Chaman’s admission was ₹ 20,00,000 and outside liabilities were ₹ 12,00,000. The goodwill of the firm on Chaman’s admission was :

  1. ₹ 13,00,000
  2. ₹ 20,00,000
  3. ₹ 8,00,000
  4. ₹ 7,00,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) ₹7,00,000

Q35.2025 Supp. 67/S/1 · Q4(b)1 mark

Mohit and Rohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024, they admitted Radha for 1/5th share in the profits of the firm. Before Radha’s admission, the Balance Sheet of Mohit and Rohit showed furniture at ₹ 6,30,000. On admission of Radha, it was found undervalued by 10%. The journal entry for the above adjustment on Radha’s admission will be :

Journal

ParticularsAccount No.Dr. Amount (₹)Cr. Amount (₹)
(A)Revaluation A/c ... Dr.63,000
    To Furniture A/c63,000
(B)Furniture A/c ... Dr.70,000
    To Revaluation A/c70,000
(C)Revaluation A/c ... Dr.70,000
    To Furniture A/c70,000
(D)Furniture A/c ... Dr.63,000
    To Revaluation A/c63,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B)

ParticularsLFDr. Amount (₹)Cr. Amount (₹)
(B)Furniture A/c ... Dr.70,000
    To Revaluation A/c70,000
Q36.2025 Supp. 67/S/1 · Q151 mark

Manav and Adi were partners in a firm sharing profits and losses in the ratio of 5 : 3. Roy was admitted with 1/5th share in the profits of the firm. At the time of Roy’s admission, Workmen’s Compensation Reserve appeared in the Balance Sheet of the firm at ₹ 4,00,000. The claim on account of workmen’s compensation was determined at ₹ 4,40,000. The excess amount of claim over the reserve will be debited to :

  1. Realisation Account
  2. Revaluation Account
  3. Roy’s Capital Account
  4. Bank Account
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Revaluation Account

Q37.2025 Supp. 67/S/1 · Q16(a)1 mark

A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. On 1st April, 2024, D was admitted as a partner in the firm. The new profit sharing ratio was 2 : 2 : 1 : 1. The sacrificed share of A was :

  1. 1/6th
  2. Nil
  3. 3/6th
  4. 2/6th
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) 1/6th

Q38.2025 Supp. 67/S/1 · Q16(b)1 mark

Anya and Sanya were partners in a firm sharing profits and losses in the ratio of 5 : 2. They admitted Vanya as a new partner for 3/7th share in the profits of the firm. She acquired 2/7th share from Anya and 1/7th share from Sanya. The new profit sharing ratio of Anya, Sanya and Vanya will be :

  1. 1:3:3
  2. 5:2:3
  3. 3:1:3
  4. 5:2:1
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) 3:1:3

Q39.2024 Main 67/1/1 · Q1(a)1 mark

Atul, Beena and Sita were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 5. Damini was admitted as a new partner for 1/5th share in the profits which she acquired entirely from Atul. The new profit sharing ratio after Damini’s admission will be :

  1. 7 : 7 : 5 : 1
  2. 4 : 7 : 5 : 4
  3. 8 : 7 : 5 : 4
  4. 7 : 5 : 8 : 4
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) 4:7:5:4

Q40.2024 Main 67/1/1 · Q1(b)1 mark

Rushil and Abheer were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Sunil as a new partner for 3/7th share in the profits of firm, which he acquired 2/7th share from Rushil and 1/7th share from Abheer. The new profit sharing ratio of Rushil, Abheer and Sunil will be :

  1. 4 : 3 : 3
  2. 2 : 1 : 3
  3. 2 : 2 : 3
  4. 4 : 3 : 1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) 2:2:3

Q41.2024 Main 67/1/1 · Q41 mark

Piyush, Rajesh and Avinash were partners in a firm sharing profits and losses equally. Shiva was admitted as a new partner for an equal share. Shiva brought his share of capital and premium for goodwill in cash. The premium for goodwill amount will be divided among :

  1. Old partners in old ratio
  2. New partners in new ratio
  3. New partners in sacrificing ratio
  4. Old partners in sacrificing ratio
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) Old partners in sacrificing ratio

Q42.2024 Main 67/1/1 · Q51 mark

Alex, Benn and Cole were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Dona as a new partner for 1/5th share in the future profits. Dona agreed to contribute proportionate capital. On the date of admission, capitals of Alex, Benn and Cole after all adjustments were ₹1,20,000; ₹80,000 and ₹1,00,000 respectively. The amount of capital brought in by Dona will be :

  1. ₹75,000
  2. ₹60,000
  3. ₹65,000
  4. ₹70,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) ₹75,000

Q43.2024 Main 67/2/1 · Q31 mark

Ashu and Basu are partners sharing profits and losses in the ratio of 2 : 1. Chetan is admitted as a new partner with 1/4th share in the profits which he acquires equally from Ashu and Basu. The new profit sharing ratio between Ashu, Basu and Chetan will be :

  1. 13 : 5 : 6
  2. 13 : 2 : 1
  3. 2 : 13 : 5
  4. 1 : 1 : 1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) 13 : 5 : 6

Q44.2024 Main 67/2/1 · Q8(i)1 mark

Kishore and Bimal are partners in a firm sharing profits and losses in the ratio of 4 : 3. Nand is admitted as a new partner in the firm for 1/4th share in the profits. Kishore and Bimal decide to share profits and losses equally in the future. The sacrificing ratio of Kishore and Bimal will be :

  1. 1 : 1
  2. 4 : 3
  3. 11 : 3
  4. 3 : 11
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) 11:3

Q45.2024 Main 67/2/1 · Q131 mark

Manas and Ranvir are partners in a firm having capital balances of ₹ 1,20,000 and ₹ 80,000 respectively. Sanju is admitted as a new partner in the firm for 1/5th share in future profits. Sanju brought ₹ 1,00,000 as his capital. The goodwill of the firm on Sanju’s admission will be :

  1. ₹ 5,00,000
  2. ₹ 2,00,000
  3. ₹ 3,00,000
  4. ₹ 1,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) ₹2,00,000

Q46.2024 Main 67/2/1 · Q161 mark

Assertion (A) : In a partnership firm, at the time of admission, the new partner brings in an agreed amount of capital either in cash or in kind.

Reason (R) : In a partnership firm, at the time of admission, the new partner acquires the right to share the assets and the profits of the partnership firm.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) is incorrect.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) Both Assertion (A) and Reason (R) are correct, and Reason (R) is correct explanation of Assertion (A)

Q47.2024 Main 67/3/1 · Q21 mark

Seema and Laksh were partners in a firm sharing profits and losses in the ratio of 2 : 1. Their capitals were ₹ 2,00,000 and ₹ 1,80,000 respectively. They admitted Aadi as a new partner on 1st April, 2023 for 1/5th share in future profits. Aadi brought ₹ 1,50,000 as his share of capital. The goodwill of the firm on Aadi’s admission will be :

  1. ₹ 7,50,000
  2. ₹ 2,20,000
  3. ₹ 3,70,000
  4. ₹ 1,50,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) ₹ 2,20,000

Q48.2024 Main 67/3/1 · Q41 mark

Geeta and Hari were partners in a firm sharing profits and losses in the ratio of 3 : 2. Krish was admitted as a new partner for 1/5th share in profits of the firm which he acquired from Geeta and Hari in the ratio of 2 : 3. Krish brought ₹ 1,00,000 as his share of capital and ₹ 50,000 as premium for goodwill in cash. The sacrificing ratio of Geeta and Hari will be :

  1. 3 : 2
  2. 1 : 1
  3. 2 : 3
  4. 13 : 7
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) 2 : 3

Q49.2024 Main 67/3/1 · Q16(a)1 mark

Hema and Tara were partners in a firm sharing profits and losses in the ratio of 2 : 3. They admitted Ojas as a new partner. Hema surrendered 1/3rd of her share and Tara surrendered 1/2 of her share in favour of Ojas. The new profit sharing ratio of Hema, Tara and Ojas will be :

  1. 8 : 9 : 13
  2. 3 : 2 : 5
  3. 2 : 3 : 5
  4. 2 : 3 : 25
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) 8 : 9 : 13

Q50.2024 Main 67/4/1 · Q21 mark

Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for 1/4th share in the profits, which she acquired wholly from Gupta. New profit sharing ratio of Gupta, Sharma and Preeti will be :

  1. 2:1:1
  2. 11:4:5
  3. 3:3:2
  4. 7:5:4
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) 11:4:5

Q51.2024 Main 67/4/1 · Q14(b)1 mark

At the time of admission of a partner, the Balance Sheet of the firm showed a workmen compensation reserve of ₹ 80,000. The claim for workmen compensation was estimated at ₹ 1,00,000. The shortfall of ₹ 20,000 will be :

  1. debited to Revaluation Account
  2. credited to Revaluation Account
  3. debited to Partners’ Capital Accounts
  4. credited to Partners’ Capital Accounts
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) debited to Revaluation Account

Q52.2024 Main 67/5/1 · Q21 mark

A, B and C were partners in a firm sharing profits and losses in the ratio of 1/2 : 1/3 : 1/4. D was admitted in the firm for 1/6th share. C would retain his original share. The new profit sharing ratio will be :

  1. 12 : 8 : 5 : 5
  2. 21 : 14 : 18 : 12
  3. 21 : 14 : 15 : 10
  4. 2 : 2 : 1 : 1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) 21:14:15:10

Q53.2024 Supp. 67/S/1 · Q1(a)1 mark

Renu, Trilok and Mansi were partners in a firm sharing profits and losses in the ratio of 9 : 6 : 5. Hina was admitted as a partner for 1/10th share in the profits which she acquired equally from Renu and Trilok. The new profit sharing ratio after Hina’s admission will be :

  1. 5 : 5 : 2 : 8
  2. 5 : 5 : 8 : 2
  3. 8 : 2 : 5 : 5
  4. 8 : 5 : 5 : 2
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) 8:5:5:2

Q54.2024 Supp. 67/S/1 · Q1(b)1 mark

Ashu and Ria were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Nitu for a 3/7th share in the profits of the firm, which she took 2/7th from Ashu and 1/7th from Ria. The new profit sharing ratio between Ashu, Ria and Nitu will be :

  1. 4 : 3 : 3
  2. 2 : 1 : 3
  3. 2 : 2 : 3
  4. 4 : 3 : 2
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) 2:2:3

Q55.2024 Supp. 67/S/1 · Q41 mark

Kamini, Lata and Meera were partners in a firm sharing profits and losses equally. Neel was admitted as a new partner for an equal share in the profits of the firm. Neel brought his share of capital and premium for goodwill in cash. On the date of admission of Neel, goodwill appeared in the books at ₹ 1,20,000. The existing goodwill is to be written off among :

  1. Old partners in old ratio.
  2. New partners in new ratio.
  3. Sacrificing partners in sacrificing ratio.
  4. Old partners in sacrificing ratio.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) Old partners in old ratio.

Q56.2024 Supp. 67/S/1 · Q51 mark

Arjun, Babita and Charlie were partners in a firm sharing profits in the ratio of 2 : 2 : 1. They admitted Dheeraj for 1/5th share in the profits of the firm. He has to contribute proportionate capital to acquire 1/5th share in future profits. On the date of admission, the capitals after all adjustments relating to goodwill and revaluation of assets and liabilities, were : Arjun ₹ 62,000, Babita ₹ 52,000 and Charlie ₹ 36,000. The capital brought by Dheeraj will be :

  1. ₹ 37,500
  2. ₹ 30,000
  3. ₹ 32,500
  4. ₹ 35,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) ₹37,500

Q57.2023 Main 67/1/1 · Q141 mark

Akshita and Anurag are partners in a firm sharing profits in the ratio of 2 : 1. Akshat is admitted in the firm with 1/3 share in profits. Akshat acquires 2/3 of his share from Akshita and 1/3 of his share from Anurag. The new profit sharing ratio of Akshita, Anurag and Akshat will be :

  1. 3 : 2 : 4
  2. 4 : 3 : 2
  3. 2 : 1 : 1
  4. 4 : 2 : 3
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) 4 : 2 : 3

Q58.2023 Main 67/2/1 · Q21 mark

Rohit and Mohit were partners sharing profits and losses in the ratio of 2:1. Their capital accounts as on 31.3.2021 had a credit balance of ₹1,09,000 and ₹66,000 respectively. They admitted Sahil as a new partner on 1st April, 2021 for 1/5th share in profits. Sahil brought ₹25,000 as his share of goodwill premium. He agreed to contribute capital in new profit-sharing ratio. The amount of capital brought by Sahil was :

  1. ₹40,000
  2. ₹32,000
  3. ₹12,50,000
  4. ₹50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) ₹50,000

Q59.2023 Main 67/2/1 · Q8(b)1 mark

Amit and Sumit were partners in a firm with fixed capitals of ₹6,00,000 and ₹4,00,000 respectively. Kavi was admitted as a new partner for 1/5th share in the profit of the firm. Kavi brought ₹40,000 as his share of goodwill premium and ₹3,00,000 as his capital.

The amount of Goodwill premium credited to Sumit will be :

  1. ₹20,000
  2. ₹24,000
  3. ₹16,000
  4. ₹40,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) ₹20,000

Q60.2023 Main 67/2/1 · Q13(a)1 mark

On admission of a new partner, the old partners share the gain or loss on revaluation of assets and reassessment of liabilities in which of the following ratio :

  1. Equally
  2. In old profit sharing ratio
  3. In new profit sharing ratio
  4. In sacrificing ratio
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) In old profit sharing ratio

Q61.2023 Main 67/2/1 · Q13(b)1 mark

Asha and Nisha were partners in a firm sharing profits and losses in the ratio 3:1. Charu was admitted as a new partner for 1/4th share in the profits of the firm which she acquired equally from Asha and Nisha. The new profit sharing ratio of Asha, Nisha and Charu will be :

  1. 3 : 1 : 4
  2. 1 : 1 : 2
  3. 5 : 1 : 2
  4. 1 : 2 : 1
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) 5:1:2

Q62.2023 Main 67/3/1 · Q3(ii)1 mark

Surbhi and Leena were partners in a firm sharing profits and losses in the ratio of 5 : 3. Ashi was admitted as a new partner for 1/4 share in the profits of the firm. Ashi acquired 3/5 of her share from Surbhi. From the following, how much share did Ashi acquire from Leena :

  1. 1/10
  2. 3/20
  3. 2/5
  4. 3/8
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) 1/10

Q63.2023 Main 67/3/1 · Q111 mark

Vikram and Sumit were partners in a firm sharing profits and losses in the ratio of 2 : 1. The capitals of Vikram and Sumit after all adjustments were ₹ 50,000 and ₹ 40,000 respectively. They admitted Jayant as a partner for 1/3 share in the profits of the firm. Jayant brought proportionate capital in the firm. The amount of capital brought in by Jayant was :

  1. ₹ 45,000
  2. ₹ 30,000
  3. ₹ 60,500
  4. ₹ 90,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) ₹45,000

Q64.2023 Main 67/5/1 · Q1(a)1 mark

Yuvraj and Yogesh were partners in a firm sharing profits in the ratio of 2 : 1. They admitted Yogita as a new partner for 1/5th share in future profits. Capital of Yuvraj and Yogesh were ₹ 4,50,000 and ₹ 1,50,000 respectively. Yogita brought ₹ 2,50,000 as her capital. The value of goodwill of the firm on Yogita’s admission was :

  1. ₹ 5,50,000
  2. ₹ 8,50,000
  3. ₹ 12,50,000
  4. ₹ 4,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) ₹4,00,000

Q65.2023 Main 67/5/1 · Q1(b)1 mark

Monu and Sonu were partners sharing profits in the ratio of 2 : 3. They admitted Ram as a new partner for 3/5th share in profits which he acquired 1/5th from Monu and 2/5th from Sonu. The new profit sharing ratio of Monu, Sonu and Ram will be :

  1. 3 : 1 : 1
  2. 1 : 1 : 3
  3. 2 : 3 : 1
  4. 2 : 3 : 3
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) 1:1:3

Q66.2023 Main 67/5/1 · Q141 mark

Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be 3 : 3 : 2 : 2. An extract of their Balance Sheet as at 31st March, 2022 is given below :

LiabilitiesAmount (₹)AssetsAmount (₹)
Investment Fluctuation Reserve80,000Investments
(Market Value ₹ 80,000)
90,000

Which of the following is the correct accounting treatment of ‘investment fluctuation reserve’ at the time of Subhash’s admission ?

JOURNAL

ParticularsDebit Amt. (₹)Credit Amt. (₹)
(A)Investment Fluctuation Reserve A/c Dr.10,000
To Revaluation A/c10,000
(B)Investment Fluctuation Reserve A/c Dr.80,000
To Indu’s Capital A/c32,000
To Vijay’s Capital A/c24,000
To Pawan’s Capital A/c24,000
(C)Revaluation A/c Dr.10,000
To Investment Fluctuation Reserve10,000
(D)Investment Fluctuation Reserve A/c Dr.80,000
To Investments A/c10,000
To Indu’s Capital A/c28,000
To Vijay’s Capital A/c21,000
To Pawan’s Capital A/c21,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D)

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Investment Fluctuation Reserve A/c Dr.80,000
To Investments A/c10,000
To Indu’s Capital A/c28,000
To Vijay’s Capital A/c21,000
To Pawan’s Capital A/c21,000
Q67.2023 Supp. 67/C/1 · Q2(a)1 mark

A and B were partners in a firm. They admitted C as a new partner for 1/3rd share in the profits of the firm which he acquired from A. A’s new share in the profit will be :

  1. 1/2
  2. 1/4
  3. 1/3
  4. 1/6
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(D) 1/6

Q68.2023 Supp. 67/C/1 · Q5(a)1 mark

C and D were partners in a firm. E was admitted as a new partner for 1/6 share. E acquired 1/3rd of his share from C and the remaining from D.

The sacrificing ratio of C and D was :

  1. 1 : 2
  2. 1 : 1
  3. 16 : 9
  4. 2 : 1
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) 1:2

Q69.2023 Supp. 67/C/1 · Q61 mark

S and T were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted U as a new partner in the firm. On U’s admission there existed a provision for bad and doubtful debts of ₹ 7,000. It was decided to write off ₹ 3,000 as bad debts. The remaining debtors were considered as good. The amount to be debited/credited to Revaluation Account on account of the above treatment will be :

  1. Debit ₹ 3,000
  2. Credit ₹ 4,000
  3. Debit ₹ 7,000
  4. Debit ₹ 4,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) Credit ₹4,000

Q70.2023 Supp. 67/C/1 · Q101 mark

X and Z were partners in a firm with capitals of ₹ 45,000 each. They admitted Y as a new partner for 1/3rd share in the profits of the firm. Y brought ₹ 60,000 as his capital. Based on Y’s share in the profits of the firm and his capital contribution, the goodwill of the firm will be :

  1. ₹ 1,80,000
  2. ₹ 1,50,000
  3. ₹ 30,000
  4. ₹ 90,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) ₹30,000

Q71.2023 Supp. 67/C/1 · Q111 mark

C, D and E were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted F as a new partner for 1/4 share in the profits which was sacrificed by C, D and E in the ratio of 2 : 1 : 2. C’s new share in the profits will be :

  1. 2/5
  2. 3/5
  3. 3/10
  4. 4/20
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) 2/5

Q72.SQP 2025-26 · Q51 mark

Bala and Lala were partners in a firm with Capitals of ₹ 24,00,000 and 16,00,000. They admitted Mala as a new partner for 1/3 share for which Mala brings ₹ 20,00,000 as capital. There was Investment and Investment Fluctuation Reserve appearing in the books of ₹ 2,50,000 and ₹ 50,000 respectively. Bala took over 40% of the Investments at ₹ 80,000 and remaining Investments were valued at ₹ 1,10,000. By what amount Revaluation account will be affected for the above information?

  1. Debited ₹ 60,000
  2. Credited with ₹ 60,000
  3. Debited ₹ 10,000
  4. Credited ₹ 10,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) Debited ₹ 10,000

Q73.SQP 2025-26 · Q10(a)1 mark

Arun and Barun were partners sharing Profits &Losses in the ratio 3:2. They admitted Charan into partnership for 20% share. Charan was to bring proportionate Capital and he brought ₹ 3,50,000 (including ₹ 50,000 for goodwill share) in firm. If adjusted capital of Arun after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment was ₹ 8,40,000. What was Barun’s Capital after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment?

  1. ₹ 5,60,000
  2. ₹ 3,60,000
  3. ₹ 12,00,000
  4. ₹ 6,60,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 3,60,000

Q74.SQP 2025-26 · Q10(b)1 mark

Raghav and Sahil were partners sharing Profit &Loss in the ratio 5:3. Their capital balances were ₹ 7,20,000 and ₹ 2,80,000 respectively. There were balances of General Reserve of ₹ 5,00,000 and Deferred Revenue Expenditure of ₹ 4,00,000 in the books of the firm. They admitted Ojasv into partnership for 20% share for which he brings ₹ 4,00,000 as capital. Determine the goodwill share of Ojasv.

  1. ₹ 5,00,000
  2. ₹ 1,00,000
  3. ₹ 1,20,000
  4. ₹ 60,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 1,00,000

Q75.SQP 2026-27 · Q81 mark

L and M were partners sharing profits in the ratio of 5:3. They admitted N as a new partner and on the date of admission, firm had Investments of ₹3,00,000 and Investment Fluctuation Reserve of ₹40,000. On the same date;

  • M took over 40% of investments at ₹1,10,000.
  • The remaining investments were revalued at ₹1,50,000.

Identify the effect on the Revaluation Account.

  1. Credited ₹10,000
  2. Debited ₹10,000
  3. Credited ₹5,000
  4. No effect on revaluation A/c
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(D) No effect on revaluation A/c

Q76.SQP 2026-27 · Q91 mark

Ravinder and Savita were partners sharing profits in the ratio of 3:2. Kavita was admitted for 1/5th share in profits and she brought ₹3,00,000, including ₹30,000 towards goodwill.

After adjusting for goodwill, revaluation of assets and liabilities, and reserves, calculate Savita’s adjusted capital on the basis of Kavita’s capital and profit-sharing ratio.

  1. ₹4,32,000
  2. ₹5,00,000
  3. ₹3,00,000
  4. ₹6,00,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) ₹4,32,000

Q77.2025 Main 67/2/1 · Q183 marks

Sunny and Ujjwal were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024 Timmy was admitted as a new partner for 1/5th share in profits which he acquired equally from Sunny and Ujjwal.

On the date of Timmy's admission the Balance Sheet of Sunny and Ujjwal showed investments at ₹ 5,00,000 and a balance of ₹ 2,00,000 in Investment Fluctuation Reserve.

Pass necessary journal entries for treatment of Investment fluctuation reserve on the date of Timmy's admission in each of the following cases :

  1. Market value of Investments was ₹ 5,00,000.
  2. Market value of Investments was ₹ 3,00,000.
  3. Market value of Investments was ₹ 2,00,000.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Sunny and Ujjwal
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) 2024 Apr. 1Investment Fluctuation Reserve A/c Dr.2,00,000
    To Sunny's Capital A/c1,20,000
    To Ujjwal's Capital A/c80,000
(Investment Fluctuation Reserve distributed among old partners in their old profit sharing ratio)
(ii) ”Investment Fluctuation Reserve A/c Dr.2,00,000
    To Investments A/c2,00,000
(Decrease in the value of investments met out of Investment Fluctuation Reserve)
(iii) ”Investment Fluctuation Reserve A/c Dr.2,00,000
Revaluation A/c Dr.1,00,000
    To Investments A/c3,00,000
(Decrease in the value of investments met out of Investment Fluctuation Reserve and the balance out of Revaluation account)

(Marks: 1 + 1 + 1 = 3 marks)

Q78.2025 Main 67/4/1 · Q183 marks

Vinay and Pankaj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The following is the extract of their Balance Sheet as at 31st March, 2024 :

Balance Sheet of Vinay and Pankaj as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Investment Fluctuation Fund6,00,000Investments15,00,000
Workmen Compensation Fund8,00,000

On 1st April, 2024, Parth was admitted as a new partner for 1/5th share in the profits of the firm on the following terms :

  1. Market value of investments was ₹ 13,00,000.
  2. Claim on account of Workmen Compensation was estimated at ₹ 9,00,000.

Pass necessary journal entries for treatment of Investment Fluctuation Fund and Workmen Compensation Fund on the date of Parth’s admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024
April 1
Investment Fluctuation Fund A/c ... Dr.
  To Investment A/c
  To Vinay’s Capital A/c
  To Pankaj’s Capital A/c
(Investment Fluctuation Fund of ₹ 2,00,000 used to cover loss on investment and remaining ₹ 4,00,000 divided among old partners in old ratio)
6,00,000
2,00,000
2,40,000
1,60,000
2024
April 1
Revaluation A/c ... Dr.
Workmen Compensation Fund A/c ... Dr.
  To Workmen Compensation Claim A/c
(Workmen Compensation Claim of ₹ 8,00,000 covered from Workmen Compensation Fund and ₹ 1,00,000 transferred to Revaluation A/c)
1,00,000
8,00,000


9,00,000

(1½) + (1½) = 3 marks

Q79.2025 Main 67/5/1 · Q18(b)3 marks

Vijay, Ravi and Raman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a new partner for 1/10th share in the profits. It was decided that new profit sharing ratio will be 4 : 2 : 3 : 1. On Kamal’s admission, the goodwill of the firm was valued at ₹ 6,00,000. Kamal brought his share of goodwill premium in cash.

  1. Calculate the sacrificing ratio.
  2. Pass necessary journal entries for the treatment of goodwill on Kamal’s admission.

Show your working notes clearly.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(i) Sacrificing share = Old share − New share
Vijay = 5/10 − 4/10 = 1/10 (Sacrifice)
Ravi = 3/10 − 2/10 = 1/10 (Sacrifice)
Raman = 2/10 − 3/10 = (1/10) (Gain)
Sacrificing ratio of Vijay and Ravi is 1:1, while Raman is gaining. (1 mark)

(ii)

Books of Vijay, Ravi, Raman & Kamal
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024
April 1
Cash A/c Dr.
To Premium for goodwill A/c
(Cash brought in by Kamal as premium for goodwill)
60,000
60,000
2024
April 1
Premium for goodwill A/c Dr.
Raman’s Capital A/c Dr.
To Vijay’s Capital A/c
To Ravi’s Capital A/c
(Premium brought by Kamal and Raman’s share of gain credited to Vijay and Ravi in sacrificing ratio)
60,000
60,000


60,000
60,000

(1 + 1 + 1 = 3 marks)

Working notes:
Goodwill of firm = ₹6,00,000
Kamal’s share of goodwill = 1/10 x 6,00,000 = ₹60,000

Q80.2025 Main 67/5/1 · Q203 marks

Aman, Govind and Guru were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Sudarshan was admitted for 1/4th share in the profits of the firm. The new profit sharing ratio between Aman, Govind, Guru and Sudarshan was agreed at 9 : 5 : 4 : 6. The total capital of the new firm was agreed upon as ₹ 3,60,000. Sudarshan will bring 1/4th of this as his capital. The capitals of the other partners were also to be adjusted according to the new profit sharing ratio. The capitals of Aman, Govind and Guru after all adjustments stood at ₹ 60,000, ₹ 80,000 and ₹ 45,000 respectively.

Calculate the new capitals of Aman, Govind and Guru. Also pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Calculation of New Capitals of partners:
New Firm’s Capital ₹3,60,000 in new ratio 9:5:4:6
Aman = 9/24 x 3,60,000 = ₹1,35,000
Govind = 5/24 x 3,60,000 = ₹75,000
Guru = 4/24 x 3,60,000 = ₹60,000
Sudarshan = 6/24 x 3,60,000 = ₹90,000 (1 mark)

Books of Aman, Guru, Govind & Sudarshan
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Cash A/c / Bank A/c Dr.
To Sudarshan’s Capital A/c
To Aman’s Capital A/c
To Guru’s Capital A/c
(Cash brought in by Sudarshan for capital and by Aman & Guru for capital adjustment)
1,80,000
90,000
75,000
15,000
Govind’s Capital A/c Dr.
To Cash A/c
(Cash paid to Govind)
5,000
5,000

(1 + 1½ + ½ = 3 marks)

Working notes: Calculation of amount of cash to be brought into the firm or to be paid to the partners:

AmanGovindGuru
New capital₹1,35,000₹75,000₹60,000
Adjusted capital₹60,000₹80,000₹45,000
Brought ₹75,000Paid ₹5,000Brought ₹15,000

Note: No marks for working notes.

Q81.2025 Main 67/7/1 · Q18(a)3 marks

Bharat and Ishu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Rishab was admitted into partnership for 1/4th share in the profits of the firm. Goodwill of the firm was valued at ₹4,00,000. Rishab brought ₹2,00,000 as his capital and ₹60,000 out of his share of goodwill premium in cash. At the time of Rishab’s admission, goodwill was appearing in the books of the firm at ₹50,000.

Pass necessary journal entries for the above transactions in the books of the firm on Rishab’s admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of Bharat, Ishu and Rishabh
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bharat’s Capital A/c ... Dr.
Ishu’s Capital A/c ... Dr.
To Goodwill A/c
(Goodwill already appearing in books written off in the old ratio)
40,000
10,000


50,000
Cash A/c ... Dr.
To Rishabh’s Capital A/c
To Premium for Goodwill A/c
(Amount brought in by Rishabh as his capital and share of goodwill)
2,60,000


2,00,000
60,000
Premium for Goodwill A/c ... Dr.
Rishabh’s Current A/c ... Dr.
To Bharat’s Capital A/c
To Ishu’s Capital A/c
(Share of Rishabh in goodwill credited to old partners in the ratio of their sacrifice)
60,000
40,000



80,000
20,000

(1 × 3 = 3 Marks)

Q82.2023 Main 67/3/1 · Q203 marks

Vanshika and Shikha were partners in a firm with capitals of ₹ 1,00,000 and ₹ 80,000 respectively. They admitted Nisha on 1st April, 2022 as a new partner for 1/4 share in the future profits of the firm. Nisha brought ₹ 90,000 as her capital. Nisha aquired her share equally from Vanshika and Shikha. Calculate the value of goodwill of the firm and pass necessary journal entries on Nisha’s admission, assuming that Nisha did not bring her share of goodwill premium in cash. Show the working clearly.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Calculation of Goodwill of the firm

Total Capital of the Firm based on Nisha’s share = 90,000 × 4/1 = ₹ 3,60,000

Actual capital of the Firm = 1,00,000 + 80,000 + 90,000 = ₹2,70,000

Goodwill of the Firm = 3,60,000 – 2,70,000 = ₹90,000 (1)

Calculation of Nisha’s share of goodwill premium = ₹90,000 × 1/4 = ₹22,500 (½)

Books of Vanshika and Shikha — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank / Cash A/c ... Dr.
  To Nisha’s Capital A/c
(Capital brought in by Nisha) (½)
90,000
90,000
Nisha’s Current A/c ... Dr.
  To Vanshika’s Capital A/c
  To Shikha’s Capital A/c
(Adjustment for goodwill premium not brought in by Nisha) (1)
22,500
11,250
11,250

= 3 marks

Q83.2023 Main 67/4/1 · Q173 marks

Rohit and Mohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Rahul was admitted into partnership for 1/3 share in profits. Goodwill of the firm was valued at ₹ 30,000. Rahul brought ₹ 40,000 as capital and ₹ 5,000 out of his share of goodwill premium in cash. At the time of Rahul’s admission, goodwill was appearing in the books of the firm at ₹ 15,000.

Pass necessary journal entries for the above transactions in the books of the firm on Rahul’s admission.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Rohit and Mohit
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Rohit’s Capital A/c   Dr.
Mohit’s Capital A/c   Dr.
   To Goodwill A/c
(Goodwill appearing in books written off in old ratio 3:2)
[1 mark]
9,000
6,000


15,000
Cash/Bank A/c   Dr.
   To Rahul’s Capital A/c
   To Premium for Goodwill A/c
(Capital & part of premium for Goodwill brought by Rahul)
[1 mark]
45,000


40,000
5,000
Premium for Goodwill A/c   Dr.
Rahul’s Current A/c   Dr.
   To Rohit’s Capital A/c
   To Mohit’s Capital A/c
(Premium for goodwill adjusted between sacrificing Partners in sacrificing ratio 3:2)
[1 mark]
5,000
5,000



6,000
4,000

=3 marks

Q84.2023 Main 67/5/1 · Q173 marks

Aayush and Aarushi are partners sharing profits and losses in the ratio of 3 : 2. They admitted Naveen into partnership for 1/4th share. Goodwill of the firm was to be valued at three years’ purchase of super profits. Average net profit of the firm was ₹ 20,000. Capital investment in the business was ₹ 50,000 and Normal Rate of Return was 10%. Calculate the amount of Goodwill premium brought by Naveen.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Average Net Profit = ₹20,000

Normal Profit = Normal Rate of Return × Capital Employed
Normal Profit = 10/100 × 50,000 = ₹5,000 ……… (½)

Super Profit = Average Net Profit – Normal Profit
= 20,000 – 5,000
= ₹15,000 ……… (½)

Goodwill of the firm = Super Profit × Number of Years’ Purchase ……… (½)
= 15,000 × 3
= ₹45,000 ……… (½)

Goodwill Premium brought by Naveen = 1/4 × 45,000 = ₹11,250 ……… (1)

(3 marks)

Q85.2023 Main 67/5/1 · Q19(b)3 marks

Atul and Geeta were partners sharing profits in the ratio 3 : 2. Ira was admitted into the firm for 1/4th share of profits. Ira brought ₹ 40,000 as her capital. The capitals of Atul and Geeta after all adjustments relating to goodwill, revaluation of assets and liabilities etc. are ₹ 60,000 and ₹ 40,000 respectively. It is agreed that capitals should be according to the new profit sharing ratio.

Calculate the amount of actual cash to be paid off or brought in by the old partners. Pass the necessary journal entry/entries for the same.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Atul and Geeta

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Cash or Bank A/c Dr.20,000
To Atul’s Capital A/c12,000
To Geeta’s Capital A/c8,000
(cash brought in by Atul and Geeta for capital adjustment on Ira’s admission)

(1½ marks)

Working

Old Ratio = Atul : Geeta = 3:2
Ira admitted for 1/4 share
Remaining Share for Atul and Geeta = 1 – 1/4 = 3/4
New Share of Atul = 3/5 × 3/4 = 9/20
New Share of Geeta = 2/5 × 3/4 = 6/20
New Ratio = Atul : Geeta : Ira = 9 : 6 : 5
Total Capital of New Firm = ₹40,000 × 4 = ₹1,60,000

Atul Amount (₹)Geeta Amount (₹)
New Capital72,00048,000
Less Existing Capital60,00040,000
Cash Brought In12,0008,000

(1½ marks)

(1½ + 1½ = 3 marks)

Q86.SQP 2025-26 · Q17(a)3 marks

Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio 3:1:1. They admitted Chunni into partnership for 1/5 share. It was decided that Munni will have 1/4 share in future profits. Goodwill of the firm was valued at ₹ 3,20,000 and Chunni was unable to bring anything. Calculate New Ratio, Sacrificing Ratio and journalise for goodwill at the time of admission of Chunni.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Let total share be 1
Chunni share = 1/5
Remaining share = 4/5
Munni share = 1/4
Remaining share = 4/5 – 1/4 = 11/20
Raju share = 11/20 x 3/4 = 33/80
Rinku share = 11/20 x 1/4 = 11/80
New Ratio = 33/80 : 11/80 : 1/4 : 1/5 = 33 : 11 : 20 : 16
Sacrificing Ratio = 3 : 1 (Raju and Rinku) Gain to Munni = 1/20

Journal

DateParticularsDr (₹)Cr (₹)
(i)Chunni’s Current A/c Dr.
Munni’s Capital A/c Dr.
To Raju’s Capital A/c
To Rinku’s Capital A/c
(Being adjustment entry passed for goodwill)
64,000
16,000


60,000
20,000
Q87.2026 Main 67/1/1 · Q25(a)6 marks

Sanjay and Vijay were partners in a firm sharing profits and losses in the ratio of 4 : 3. On 1st April, 2025 they admitted Babul as a new partner for 2/5th share in the profits of the firm. On Babul’s admission, the following was agreed upon :

  1. The new profit sharing ratio of Sanjay, Vijay and Babul will be 3 : 3 : 4.
  2. The goodwill of the firm will be valued at four years purchase of the average profits of the last three years. The profits of the previous three years were :
    YearProfit (₹)
    2022-2316,500
    2023-2417,500
    2024-2518,500
  3. Babul will bring his share of goodwill premium in cash, half of which will be withdrawn by Sanjay and Vijay.
  4. On Babul’s admission, revaluation of assets and reassessment of liabilities resulted in a loss of ₹70,000.
  5. At the time of Babul’s admission, the firm had a General Reserve of ₹28,000.
  6. After making necessary adjustments relating to goodwill, loss on revaluation and general reserve, the capital accounts of Sanjay and Vijay showed balances of ₹3,50,000 and ₹2,50,000 respectively. Babul brought proportionate capital for his 2/5th share in the profits of the firm.

Showing your workings clearly pass necessary journal entries for the above transactions in the books of the firm on Babul’s admission.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Sanjay, Vijay and Babul
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025 Apr.1Cash/ Bank A/c ……Dr.28,000
To Premium for goodwill A/c28,000
(Premium for goodwill brought in by Babul) [½ mark]
”Premium for goodwill A/c ……Dr.28,000
To Sanjay’s Capital A/c19,000
To Vijay’s Capital A/c9,000
(Premium for goodwill transferred to Sanjay’s and Vijay’s Capital account in the sacrificing ratio) [1 mark]
”Sanjay’s Capital A/c ……Dr.9,500
Vijay’s Capital A/c ……Dr.4,500
To Cash/ Bank A/c14,000
(Cash withdrawn for 50% of their share of goodwill) [1 mark]
”Sanjay’s Capital A/c ……Dr.40,000
Vijay’s Capital A/c ……Dr.30,000
To Revaluation A/c70,000
(Loss on revaluation debited to partners’ capital accounts) [1 mark]
General Reserve A/c ……Dr.28,000
To Sanjay’s Capital A/c16,000
To Vijay’s Capital A/c12,000
(General Reserve credited to partners’ capital accounts) [1 mark]
Cash/ Bank A/c ……Dr.4,00,000
To Babul’s Capital A/c4,00,000
(Proportionate capital brought in by Babul) [½ mark]

Working Note: (1 mark)

Calculation of Sacrificing Ratio:
Sanjay’s sacrifice = 4/7 – 3/10 = 19/70
Vijay’s sacrifice = 3/7 – 3/10 = 9/70
Sacrificing Ratio = 19:9

Calculation of goodwill
Average profits = (₹16,500 + ₹17,500 + ₹18,000)/3 = ₹17,500
Firm’s goodwill = ₹17,500 × 4 = ₹70,000
Babul’s share of goodwill = 2/5 × ₹70,000 = ₹28,000

Calculation of Babul’s proportionate capital
Capitals of Sanjay and Vijay after all adjustments = ₹3,50,000 + ₹2,50,000 = ₹6,00,000
Babul’s capital = ₹6,00,000 × 5/3 × 2/5 = ₹4,00,000

(Total 6 Marks)

Q88.2026 Main 67/2/1 · Q26(a)6 marks

Mitali and Karan were partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March, 2025 was as follows :

Balance Sheet of Mitali and Karan as on 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Mitali 8,00,000
Karan 5,00,000


13,00,000
Machinery
Furniture
Investments
8,00,000
5,00,000
1,50,000
Investment Fluctuation fund20,000Debtors 1,10,000
Less provision for doubtful debts 10,000

1,00,000
Bank loan1,30,000Stock80,000
Creditors2,00,000Cash20,000
16,50,00016,50,000

On 1st April, 2025, Nitin was admitted for 1/4 share in the profits of the firm on the following terms :

  1. Nitin will bring ₹ 3,00,000 as Capital and ₹ 1,50,000 for his share of goodwill premium in cash.
  2. Stock was sold at ₹ 70,000.
  3. Machinery was found to be overvalued by ₹ 8,500.
  4. All debtors were found to be good, hence provision for doubtful debts was not required.
  5. A liability of ₹ 3,500 included in creditors is not likely to arise.
  6. The market value of the investments was ₹ 1,40,000.
  7. The new profit sharing ratio between Mitali, Karan and Nitin will be 2:2:1.

Pass necessary journal entries for the above transactions on Nitin's admission.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Mitali, Karan and Nitin
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
Apr.1
Cash/ Bank A/c Dr.
To Nitin's Capital A/c
To Premium for goodwill A/c
(Capital and premium for goodwill brought by Nitin) [1]
4,50,000
3,00,000
1,50,000
”Premium for goodwill A/c Dr.
To Mitali's Capital A/c
(Premium for goodwill transferred to sacrificing partner, when new ratio 2:2:1)
(Note: No marks for this entry)
[-]
1,50,000
1,50,000
Alternate Entry
”Premium for goodwill A/c Dr.
To Mitali's capital A/c
To Karan's capital A/c
(Premium for goodwill transferred to sacrificing partner, when new partner's share is 1/4)
(Note: No marks for this entry)
[-]
1,50,000
90,000
60,000
”Cash/ Bank A/c Dr.
Revaluation A/c Dr.
To Stock A/c
(Stock sold for ₹ 70,000 and loss transferred to revaluation account) [1]
70,000
10,000


80,000
Alternatively the following two entries may be passed- (Alternate marks)
”Cash/ Bank A/c Dr.
To Stock A/c
(Stock sold for ₹ 70,000) [½]
70,000
70,000
”Revaluation A/c Dr.
To Stock A/c
(Loss on sale of stock transferred to revaluation account) [½]
10,000
10,000
”Revaluation A/c Dr.
To Machinery A/c
(Decrease in value of machinery by ₹ 8,500) [1]
8,500
8,500
”Provision for doubtful debts A/c Dr.
Creditors A/c Dr.
To Revaluation A/c
(Provision for doubtful debts not required and a liability included in creditors not likely to arise) [1]
10,000
3,500


13,500
Alternatively the following two entries may be passed- (Alternate Marks)
”Provision for doubtful debts A/c Dr.
To Revaluation A/c
(Provision for doubtful debts not required) [½]
10,000
10,000
”Creditors A/c Dr.
To Revaluation A/c
(A liability included in creditors not likely to arise) [½]
3,500
3,500
”Mitali's Capital A/c Dr.
Karan's Capital A/c Dr.
To Revaluation A/c
(Loss on revaluation debited to old partners' capital accounts in old ratio) [1]
3,000
2,000


5,000
”Investments Fluctuation Fund A/c Dr.
To Investment A/c
To Mitali's Capital A/c
To Karan's Capital A/c
(Decrease in value of Investments met out of Investment fluctuation Fund and balance credited to old partners' capital accounts in the old ratio) [1]
20,000
10,000
6,000
4,000

(= 6 Marks)

Q89.2026 Main 67/3/1 · Q26(a)6 marks

Anand and Bir were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Anand and Bir as on 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors45,000Cash9,000
Workmen Compensation Fund15,000Debtors36,000
Capitals :
Anand90,000Stock45,000
Bir60,0001,50,000Furniture30,000
Plant and Machinery90,000
2,10,0002,10,000

On 1st April, 2025, they admitted Vishal as a new partner for 1/6th share in the profits of the firm. It was agreed that :

  1. Vishal will bring ₹45,000 as his capital and ₹15,000 for his share of goodwill premium.
  2. Stock was to be reduced by 10% and machinery was to be appreciated by 10%.
  3. Furniture was revalued at ₹27,000.
  4. 5% provision for bad debts was to be created and ₹600 were to be provided for outstanding repair bill.
  5. There were unrecorded investments of ₹3,000 which were to be recorded.
  6. A creditor of ₹900 was not likely to claim his money and hence was to be written off.

Pass necessary journal entries for the above transactions in the books of the firm on Vishal’s admission.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

In the Books of Anand, Bir and Vishal
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2025
April 1
Cash / Bank A/c Dr.
To Vishal’s Capital A/c
To Premium for Goodwill A/c
(Capital and goodwill brought in by Vishal)
60,000


45,000
15,000
1
April 1Premium for Goodwill A/c Dr.
To Anand’s Capital A/c
To Bir’s Capital A/c
(Premium divided among sacrificing partners in sacrificing ratio)
15,000


9,000
6,000
1
April 1Workmen’s Compensation Fund A/c Dr.
To Anand’s Capital A/c
To Bir’s Capital A/c
(Workmen compensation fund divided among old partners in old ratio)
15,000


9,000
6,000
1
April 1Revaluation A/c Dr.
To Furniture A/c
To Stock A/c
To Provision for Doubtful Debts A/c
To Outstanding Repair Bill A/c
(Decrease in assets and increase in liabilities brought into the books)
9,900




3,000
4,500
1,800
600
1
April 1Machinery A/c Dr.
Investments A/c Dr.
Creditors A/c Dr.
To Revaluation A/c
(Increase in assets and decrease in liabilities brought into the books)
9,000
3,000
900



12,900
1
April 1Revaluation A/c Dr.
To Anand’s Capital A/c
To Bir’s Capital A/c
(Gain on revaluation transferred to old partners’ capital account in old profit-sharing ratio)
3,000


1,800
1,200
1

(= 6 Marks)

Q90.2026 Main 67/4/1 · Q24(a)6 marks

Arjun and Kavya were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Arjun and Kavya as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Arjun 4,80,000
Kavya 5,20,000
10,00,000Building
Investments
Stock
6,00,000
2,80,000
3,76,000
Investment Fluctuation Reserve1,00,000Debtors 1,60,000
Less : Provision for doubtful debts 7,000
1,53,000
Creditors4,00,000Cash91,000
15,00,00015,00,000

On 1st April, 2025, Raghav was admitted as a new partner for 1/4th share in the profits of the firm on the following terms :

  1. Raghav shall bring ₹ 5,00,000 as his capital.
  2. Goodwill of the firm was valued at ₹ 4,00,000. Raghav was unable to bring his share of goodwill premium in cash.
  3. Provision for doubtful debts was to be created @ 10% on debtors.
  4. Investments were valued at ₹ 2,00,000 and building was to be brought down to ₹ 5,00,000.
  5. Capitals of Arjun and Kavya were to be adjusted on the basis of Raghav’s capital in the business. Actual cash was to be paid off or brought in by the old partners as the case may be.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Arjun, Kavya and Raghav

Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts A/c (½)9,000By Loss transferred to capital A/c: (½)
Arjun 65,400
Kavya 43,600
1,09,000
To Building A/c (½)1,00,000
1,09,0001,09,000

Partner’s Capital Accounts

Dr. ParticularsArjun (₹)Kavya (₹)Raghav (₹)Cr. ParticularsArjun (₹)Kavya (₹)Raghav (₹)
To Revaluation (Loss) (½)65,40043,600By Balance b/d4,80,0005,20,000
By Cash/Bank A/c (½)5,00,000
By Investment Fluctuation Reserve (1)12,0008,000
By Raghav’s Current a/c (1)60,00040,000
To Balance c/d (½)9,00,0006,00,0005,00,000By Cash A/c (1)4,13,40075,600
9,65,4006,43,6005,00,0009,65,4006,43,6005,00,000

(Note: No marks are awarded for Balance b/d)

Working Note:
Raghav’s Capital = ₹ 5,00,000
Raghav’s share = ¼
Remaining share = 1- ¼ = ¾
Arjun’s new share = ¾ x 3/5 = 9/20
Kavya’s new share = ¾ x 2/5 = 6/20
New Profit-sharing ratio = 9:6:5
Total capital of the new firm = ₹ 5,00,000 X 4/1 = ₹ 20,00,000
Arjun’s New Capital = 9/20 x ₹ 20,00,000 = ₹ 9,00,000
Kavya’s New Capital = 6/20 x ₹ 20,00,000 = ₹ 6,00,000

(Note: No marks are awarded for the working note)

= 6 Marks

Q91.2026 Main 67/5/1 · Q246 marks

Asha and Indra were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31st March, 2025 was as following :

Balance Sheet of Asha and Indra as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Plant and Machinery4,05,000
Asha4,00,000Furniture1,20,000
Indra3,00,0007,00,000Debtors80,000
General Reserve50,000Less : Provision for doubtful debts4,00076,000
Creditors20,000Stock1,54,000
Cash at bank15,000
7,70,0007,70,000

On 1st April, 2025, Suraj was admitted for 1/4th share in the profits of the firm on the following terms :

  1. Suraj will bring capital proportionate to his share in the profits of the firm.
  2. Goodwill of the firm was valued at ₹1,00,000 and Suraj will bring his share of goodwill premium in cash.
  3. Furniture was taken over by Asha at ₹1,00,000.
  4. A liability of ₹5,000 included in creditors was not likely to arise.
  5. Plant and Machinery was revalued at ₹4,35,000.

Prepare Revaluation Account and Partners’ capital accounts on Suraj’s admission. Show the calculation of proportionate capital clearly.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Asha and Indra
Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Furniture A/c20,000 [½]By Creditors A/c5,000 [½]
To Gain on revaluation transferred to partners’ capital accounts:By Plant and Machinery A/c30,000 [½]
Asha9,000
Indra6,00015,000 [½]
35,00035,000

Partners’ Capital A/c

Dr.
Particulars
Asha (₹)Indra (₹)Suraj (₹)Cr.
Particulars
Asha (₹)Indra (₹)Suraj (₹)
To Furniture A/c [½]100000By Balance b/d400000300000
To Balance c/d [½]354000336000230000By General Reserve [½]3000020000
By Premium for goodwill A/c [½]1500010000
By Revaluation A/c [½]90006000
By Bank/Cash A/c [½]230000
454000336000230000454000336000230000

Working Notes:

Calculation of proportionate capital

Capital after adjustmentsAmount (₹)
Asha354000
Indra336000
690000

Capital brought by Suraj = (690000 × 4/3) × 1/4 = ₹2,30,000 [1]

(6 Marks)

Q92.2026 Supp. 67/7/1 · Q26(a)6 marks

Rajat and Vidhi were partners in a firm, sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Rajat and Vidhi as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Plant and Machinery5,70,000
Rajat5,00,000Furniture3,30,000
Vidhi4,00,0009,00,000Debtors80,000
General Reserve50,000Less : Provision for Doubtful Debts1,00079,000
Bank Loan70,000Stock49,000
Creditors36,000Cash28,000
10,56,00010,56,000

Nitin was admitted as a partner into the firm on 1st April, 2025 on the following terms :

  1. Nitin brought ₹ 3,20,000 as his capital and ₹ 1,00,000 as his share of goodwill premium, for 1/4th share in the profits of the firm. Rajat and Vidhi withdrew 50% of their share of goodwill.
  2. Plant and Machinery was revalued at ₹ 6,27,000.
  3. Furniture was found overvalued by 10%.
  4. A provision for doubtful debts was created @ 5% on debtors.
  5. Creditors were valued at ₹ 40,000, as one bill for goods purchased was omitted from the books.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Rajat and Vidhi
Revaluation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Furniture A/c (½)30,000By Plant & Machinery A/c (½)57,000
To Provision for doubtful debts A/c (½)3,000
To Creditors A/c (½)4,000
To Profit transferred to: (½)
Rajat’s Capital A/c 12,000
Vidhi’s capital A/c 8,000
20,000
57,00057,000

(2½ marks)

Partners’ Capital Accounts

Dr. ParticularsRajat (₹)Vidhi (₹)Nitin (₹)Cr. ParticularsRajat (₹)Vidhi (₹)Nitin (₹)
To Cash A/c (½)30,00020,000By Balance b/d (½)5,00,0004,00,000
To Balance c/d (½)5,72,0004,48,0003,20,000By Cash A/c (1)3,20,000
By Premium for goodwill A/c (½)60,00040,000
By General Reserve (½)30,00020,000
By Revaluation A/c12,0008,000
6,02,0004,68,0003,20,0006,02,0004,68,0003,20,000

(3½ marks; 2½ + 3½ = 6 marks)

Q93.2025 Main 67/1/1 · Q26(a)6 marks

Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2024 was as follows :

Balance sheet of Aryan and Adya as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Machinery3,90,000
Aryan 3,20,000Furniture80,000
Adya 2,40,0005,60,000Debtors 90,000
Workmen's Compensation Reserve20,000Less : provision for doubtful debts 1,00089,000
Bank loan60,000Stock77,000
Creditors48,000Cash32,000
Profit & Loss Account20,000
6,88,0006,88,000

Dev was admitted into the firm on 1st April, 2024 for 1/5th share in the profits of the firm on the following terms :

  1. Dev will bring capital proportionate to his share in the profits of the firm.
  2. Goodwill of the firm was valued at ₹ 2,00,000 and Dev will bring his share of goodwill premium in cash.
  3. Machinery was revalued at ₹ 4,50,000.
  4. A provision for doubtful debts was to be created at 5% on debtors.
  5. A liability of ₹ 3,500 included in creditors was not likely to arise.

Prepare Revaluation Account and Partners' Capital Accounts on Dev's admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Aryan and Adya

Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts3,500By Machinery A/c60,000
To Profit transferred to:
Aryan's Capital A/c 45,000
Adya's capital A/c 15,000
60,000By Creditors A/c3,500
63,50063,500

(½ × 4)

Partners' Capital Accounts

Dr.Cr.
ParticularsAryan (₹)Adya (₹)Dev (₹)ParticularsAryan (₹)Adya (₹)Dev (₹)
To Profit & Loss A/c ½15,0005,000By balance b/d ½3,20,0002,40,000
To balance c/d ½3,95,0002,65,0001,65,000By Cash A/c 11,65,000
By Premium for goodwill A/c ½30,00010,000
By Workmen Compensation Reserve ½15,0005,000
By Revaluation A/c ½45,00015,000
4,10,0002,70,0001,65,0004,10,0002,70,0001,65,000

((½ × 4) + 4 = 6 Marks)

Q94.2025 Main 67/2/1 · Q26(a)6 marks

Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows :

Balance Sheet of Bittu and Chintu as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Fixed Assets15,40,000
Bittu 8,00,000Stock3,50,000
Chintu 6,00,00014,00,000Debtors1,40,000
General Reserve2,10,000Bank70,000
Creditors4,90,000
21,00,00021,00,000

On 1st April, 2024, Diya was admitted in the firm for 1/7th share in the profits on the following terms :

  1. New profit sharing ratio between Bittu, Chintu and Diya will be 3 : 3 : 1.
  2. Fixed Assets were found to be overvalued by ₹ 1,40,000.
  3. Creditors were paid ₹ 4,20,000 in full settlement.
  4. Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Fixed Assets (½)1,40,000By Creditors A/c (½)70,000
By Loss transferred to:
Bittu's Capital A/c 40,000 (½)
Chintu's Capital A/c 30,000 (½)
70,000
1,40,0001,40,000

(½ x 4)

Partners' Capital Accounts

Dr.
Particulars
Bittu (₹)Chintu (₹)Diya (₹)Cr.
Particulars
Bittu (₹)Chintu (₹)Diya (₹)
To Revaluation A/c (½)40,00030,000By Balance b/d (½)8,00,0006,00,000
To Balance c/d (½)14,40,0006,60,0003,50,000By Bank A/c (1)3,50,000
By Premium for goodwill A/c (1)5,60,000
By General Reserve (½)1,20,00090,000
14,80,0006,90,0003,50,00014,80,0006,90,0003,50,000

(½ x 4) + 4 = 6 Marks

Working Note:

Calculation of Divya's capital

Capital of Bittu and Chintu after all adjustments for 6/7 share = ₹14,40,000 + ₹6,60,000
= ₹21,00,000

Divya's proportionate capital for 1/7 share = ₹21,00,000 x 7/6 x 1/7
= ₹3,50,000

Q95.2025 Main 67/4/1 · Q26(a)6 marks

Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of 5 : 2. Their Balance Sheet as at 31st March, 2024 was as follows :

Balance Sheet of Atharv and Anmol as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Fixed Assets14,00,000
  Atharv8,00,000Stock4,90,000
  Anmol4,00,00012,00,000Debtors5,60,000
General Reserve3,50,000Cash10,000
Creditors9,10,000
24,60,00024,60,000

On 1st April, 2024, Surya was admitted as a new partner for 2/7th share in the profits of the firm on the following terms :

  1. The new profit sharing ratio between Atharv, Anmol and Surya will be 4 : 1 : 2.
  2. Fixed Assets were to be reduced by 10%.
  3. Stock was sold at ₹ 4,20,000.
  4. Surya shall bring ₹ 3,00,000 as capital and ₹ 2,00,000 for his share of goodwill premium in cash.
  5. Capital accounts of old partners be adjusted on the basis of Surya’s capital in the business, actual cash to be paid off to, or brought in by the old partners, as the case may be.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Revaluation Account

Dr. ParticularsAmount (₹)ParticularsCr. Amount (₹)
To Fixed Assets
To Stock
1,40,000
70,000
By Loss t/f to Capital A/c
  Atharv 1,50,000
  Anmol 60,000


2,10,000
2,10,0002,10,000

(½ x 3 = 1½)

Partners’ Capital Accounts

Dr. ParticularsAtharv (₹)Anmol (₹)Surya (₹)ParticularsAtharv (₹)Anmol (₹)Cr. Surya (₹)
To Revaluation A/c (½)1,50,00060,000-By balance b/d8,00,0004,00,000-
By General Reserve A/c (½)2,50,0001,00,000-
To Cash A/c (1)4,00,0003,90,000By Cash A/c (½)--3,00,000
To balance c/d (1)6,00,0001,50,0003,00,000By Premium for Goodwill A/c (1)1,00,0001,00,000-
11,50,0006,00,0003,00,00011,50,0006,00,0003,00,000

(1½) + (4½) = 6 marks

Q96.2025 Main 67/5/1 · Q24(a)6 marks

Kishore and Ranjan were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024, their Balance Sheet was as follows :

Balance Sheet of Kishore and Ranjan as at 1st April, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors1,80,000Cash in hand30,000
General Reserve20,000Debtors1,20,000
Capitals :Stock1,50,000
Kishore6,00,000Furniture1,00,000
Ranjan4,00,00010,00,000Land and Building8,00,000
12,00,00012,00,000

On the above date, Singh was admitted as a new partner on the following terms :

  1. Singh will bring ₹ 1,50,000 as his capital and ₹ 50,000 as his share of goodwill premium.
  2. The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.
  3. Furniture will be revalued at ₹ 90,000.
  4. A provision for doubtful debts will be created on sundry debtors at 5%.
  5. Investments worth ₹ 10,000 not mentioned in the Balance Sheet will be taken into account.
  6. A creditor of ₹ 1,000 is not likely to claim his money and is to be written off.

Pass necessary journal entries for the above transactions in the books of the firm on Singh’s admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Books of Kishore, Ranjan and Singh
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024
April 1
Cash A/c / Bank A/c Dr.
To Singh’s Capital A/c
To Premium for goodwill A/c
(Amount brought in by Singh as share of capital and share of premium for goodwill)
2,00,000
1,50,000
50,000
,,Premium for goodwill A/c Dr.
To Kishore’s Capital A/c
To Ranjan’s Capital A/c
(Adjustment for goodwill in sacrificing ratio)
50,000
30,000
20,000
,,General Reserve A/c Dr.
To Kishore’s Capital A/c
To Ranjan’s Capital A/c
(Distribution of general reserve in old ratio)
20,000
12,000
8,000
,,Revaluation A/c Dr.
To Stock A/c
To Furniture A/c
To Provision for doubtful debts A/c
(Assets revalued and provision for doubtful debts created)
Note: If an examinee has passed separate entry for each revaluation, full credit is to be given.
31,000
15,000
10,000
6,000
,,Land & Building A/c Dr.
Investments A/c Dr.
Creditors A/c Dr.
To Revaluation A/c
(Assets revalued and liabilities reassessed)
Note: If an examinee has passed separate entry for each revaluation, full credit is to be given.
80,000
10,000
1,000



91,000
,,Revaluation A/c Dr.
To Kishore’s Capital A/c
To Ranjan’s Capital A/c
(Distribution of gain on revaluation in old ratio)
60,000
36,000
24,000

(1 x 6 = 6 marks)

Q97.2025 Main 67/6/1 · Q24(b)6 marks

Mita and Vihaan were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024 their Balance Sheet was as follows :

Balance Sheet of Mita and Vihaan as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors2,00,000Cash50,000
Capitals :Sundry Debtors 2,00,000
Less : Provision for doubtful debts 7,000
1,93,000
Mita 4,00,000
Vihaan 3,00,000

7,00,000
Stock
Plant and Machinery
Patents
2,50,000
3,50,000
57,000
9,00,0009,00,000

On the above date, Zen was admitted as a new partner for 4/15th share in the profits on the following terms :

  1. Zen will bring ₹3,00,000 as his capital and his share of goodwill premium in cash. On Zen's admission, goodwill of the firm was valued at ₹4,12,500.
  2. The provision for bad debts will be maintained at 5% of the debtors.
  3. Stock will be valued at ₹2,00,000, plant and machinery at ₹4,00,000 and patents at ₹1,20,000.
  4. There was a bill of ₹30,000 for goods purchased which was omitted from the books.

Pass necessary journal entries for the above transactions in the books of the firm on Zen's admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Mita, Vihaan and Zen
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2024
March 31
Cash A/c ... Dr.
To Zen's capital A/c
To Premium for Goodwill A/c
(Cash brought by Zen as capital and his share of goodwill)
4,10,000
3,00,000
1,10,000
1½
,,Premium for Goodwill A/c ... Dr.
To Mita's capital A/c
To Vihaan's capital A/c
(Zen's share of goodwill distributed between the old partners in sacrificing ratio)
1,10,000
66,000
44,000
1
,,Revaluation A/c ... Dr.
To Provision for Bad Debts A/c
To Stock A/c
To Outstanding Bill for Purchases A/c
(Revaluation account debited for increase in provision for bad debts, decrease in stock and recording bill for purchases)
83,000
3,000
50,000
30,000
1½
,,Plant and Machinery A/c ... Dr.
Patents A/c ... Dr.
To Revaluation A/c
(Plant and machinery and patents revalued)
50,000
63,000


1,13,000
1
,,Revaluation A/c ... Dr.
To Mita's capital A/c
To Vihaan's capital A/c
(Gain on revaluation transferred to old partners in old ratio)
30,000
18,000
12,000
1

(= 6 marks)

(Note: If an examinee has passed separate entry for each revaluation, full credit is to be given)

Q98.2025 Main 67/7/1 · Q24(a)6 marks

Uma and Umesh were partners in a firm sharing profits and losses in the ratio of 2 : 3. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Uma and Umesh as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land and Building10,00,000
Uma5,00,000Furniture1,00,000
Umesh7,50,00012,50,000Debtors80,000
Creditors50,000Less : Provision for doubtful debts5,00075,000
General Reserve75,000Stock40,000
Workmen Compensation Fund25,000Bank1,95,000
Outstanding Electricity Bill10,000
14,10,00014,10,000

On the above date, Daya was admitted as a new partner on the following terms :

  1. The new profit sharing ratio of Uma, Umesh and Daya will be 2 : 3 : 5.
  2. Daya will bring ₹10,00,000 as her capital and ₹2,00,000 as her share of goodwill premium.
  3. The value of Land and Building will be increased by ₹2,00,000.
  4. Furniture will be depreciated by 10%.
  5. ₹3,000 bad debts will be written off and a provision for bad and doubtful debts be created @ 5% of debtors.
  6. Outstanding electricity bill will be paid off.

Pass necessary journal entries for the above transactions on Daya’s admission.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of Uma, Umesh and Daya
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024 March 31Bank A/c ... Dr.
To Daya’s Capital A/c
To Premium for Goodwill A/c
(Cash brought in by Daya as capital and share of goodwill … ½)
12,00,000


10,00,000
2,00,000
,,Premium for Goodwill A/c ... Dr.
To Uma’s Capital A/c
To Umesh’s Capital A/c
(Goodwill brought in by Daya shared by old partners in the ratio of their sacrifice … 1)
2,00,000


80,000
1,20,000
,,Land & Building A/c ... Dr.
To Revaluation A/c
(Increase in the value of assets recorded on revaluation … ½)
2,00,000

2,00,000
,,Revaluation A/c ... Dr.
To Furniture A/c
(Decrease in the value of assets recorded on revaluation … ½)
10,000

10,000
,,Bad Debts A/c ... Dr.
To Debtors A/c
(Bad debts written off … ½)
3,000

3,000
,,Provision for doubtful debts A/c ... Dr.
To Bad Debts A/c
(Bad debts adjusted from the provision … ½)
3,000

3,000
,,Revaluation A/c ... Dr.
To Provision for doubtful debts A/c
(Provision for doubtful debts created … ½)
1,850

1,850
,,Outstanding Electricity Bill A/c ... Dr.
To Bank A/c
(Amount paid for outstanding electricity bill … ½)
10,000

10,000
,,Revaluation A/c ... Dr.
To Uma’s Capital A/c
To Umesh’s Capital A/c
(Profit on revaluation of assets and re-assessment of liabilities transferred partners in old profit sharing ratio … ½)
1,88,150


75,260
1,12,890
,,General Reserve A/c ... Dr.
To Uma’s Capital A/c
To Umesh’s Capital A/c
(Undistributed profit transferred to partners in old ratio … ½)
75,000


30,000
45,000
,,Workmen Compensation Fund A/c ... Dr.
To Uma’s Capital A/c
To Umesh’s Capital A/c
(Workmen compensation fund transferred to partners in old ratio … ½)
25,000


10,000
15,000

(= 6 Marks)

Q99.2025 Supp. 67/S/1 · Q24(b)6 marks

Karan and Arjun were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Karan and Arjun as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Machinery4,00,000
Karan5,00,000Furniture2,00,000
Arjun5,00,00010,00,000Debtors4,00,000
General Reserve1,50,000Less : Provision for Doubtful Debts50,0003,50,000
Workmen’s Compensation Fund1,50,000Stock1,50,000
Cash2,00,000
13,00,00013,00,000

On 1st April, 2024, Nakul was admitted into the partnership for 1/4th share in the profits of the firm on the following terms :

  1. Nakul brought ₹ 4,00,000 as his capital and his share of goodwill premium in cash. Goodwill of the firm was valued at ₹ 2,00,000.
  2. Furniture was valued at ₹ 2,50,000.
  3. A provision for doubtful debts @ 10% is to be maintained on debtors.
  4. The liability against Workmen’s Compensation Fund was estimated at ₹ 1,20,000.
  5. After the above adjustments, the capitals of Karan and Arjun were to be adjusted taking Nakul’s capital as the base. Excess or shortage in the capital accounts of Karan and Arjun was to be adjusted by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Dr.   Revaluation A/c   Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Profit on revaluation transferred to:By Furniture A/c50,000
Karan’s Capital A/c36,000By Provision for doubtful debts A/c10,000
Arjun’s capital A/c.24,00060,000
60,00060,000

[1½ marks]

Dr.   Partners’ Capital Accounts   Cr.

ParticularsKaran (₹)Arjun (₹)Nakul (₹)ParticularsKaran (₹)Arjun (₹)Nakul (₹)
To Arjun’s Current A/c [½]1,36,000By Balance b/d5,00,0005,00,000
To Balance c/d [1]7,20,0004,80,0004,00,000By Cash A/c [½]4,00,000
By Premium for goodwill A/c [½]30,00020,000
By Workmen’s Compensation Reserve A/c [½]18,00012,000
By Revaluation A/c [½]36,00024,000
By General Reserve A/c [½]90,00060,000
By Karan’s Current A/c [½]46,000
7,20,0006,16,0004,00,0007,20,0006,16,0004,00,000

4½ = 6 marks

Q100.2024 Main 67/1/1 · Q26(a)6 marks

Shubhi and Revanshi were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Shubhi and Revanshi as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
 Shubhi 60,000
 Revanshi 32,000


92,000
Fixed Assets
Stock
Debtors
90,000
38,000
30,000
General Reserve30,000Cash52,000
Bank Loan18,000
Creditors70,000
2,10,0002,10,000

On 1st April, 2023 they admitted Pari into the partnership on the following terms :

  1. Pari will bring ₹50,000 as her capital and ₹50,000 for her share of premium for goodwill for 1/4th share in the profits of the firm.
  2. Fixed assets were depreciated @ 30%.
  3. Stock was valued at ₹45,000.
  4. Bank loan was paid off.
  5. After all adjustments capitals of Shubhi and Revanshi were to be adjusted taking Pari’s capital as the base. Actual cash was to be paid off or brought in by the old partners as the case may be.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Dr. REVALUATION A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Fixed Assets A/c ½27,000By Stock A/c ½
By Loss transferred to Partners Capital A/c: ½
 Shubhi- 12,000
 Revanshi- 8,000
7,000


20,000
27,00027,000

(1½)

Dr. PARTNERS’ CAPITAL A/c Cr.

ParticularsShubhi ₹Revanshi ₹Pari ₹ParticularsShubhi ₹Revanshi ₹Pari ₹
To Revaluation A/c ½
To Cash A/c ½
To Bal c/d 1
12,000
6,000
90,000
8,000

60,000


50,000
By Bal b/d ½
By General Reserve A/c ½
By Cash A/c ½
By Premium for Goodwill A/c ½
By Cash A/c ½
60,000
18,000

30,000
32,000
12,000

20,000
4,000


50,000

1,08,00068,00050,0001,08,00068,00050,000

(4½)

= 6 marks

Q101.2024 Main 67/2/1 · Q25(a)6 marks

Sanju and Manju were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31st March, 2023 was as follows :

Balance Sheet of Sanju and Manju as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
Sanju 1,40,000
Manju 1,20,000
2,60,000Plant and Machinery
Furniture
Investments
80,000
1,32,000
60,000
General Reserve40,000Debtors 76,000
Less : Provision for doubtful debts 4,000
72,000
Creditors1,80,000Cash at Bank1,36,000
4,80,0004,80,000

On 1st April, 2023, Uday was admitted into the firm for 1/4th share in profits on the following terms :

  1. Furniture was to be depreciated by ₹ 6,000.
  2. Investments were valued at ₹ 72,000.
  3. Plant and Machinery was taken over by Sanju and Manju in their profit sharing ratio.
  4. Uday will bring in proportionate capital and ₹ 10,000 as his share of goodwill premium in cash.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Dr. Revaluation A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Furniture A/c (½)
To Profit transferred to Partners’ Capital Accounts: (½)
Sanju 3,600
Manju 2,400
6,000


6,000
By Investments A/c (½)12,000
12,00012,000

[1½]

Dr. Partners’ Capital A/c Cr.

ParticularsSanju ₹Manju ₹Uday ₹ParticularsSanju ₹Manju ₹Uday ₹
To Plant & Machinery (½)
To Balance c/d (½)
48,000
1,25,600
32,000
1,10,400
-
78,667
By Balance b/d (½)
By Cash A/c (1)
By Premium for Goodwill A/c (1)
By Revaluation A/c (½)
By General Reserve A/c (½)
1,40,000
-
6,000
3,600
24,000
1,20,000
-
4,000
2,400
16,000
-
78,667
-
-
-
1,73,6001,42,40078,6671,73,6001,42,40078,667

[4½] = 6 marks

Working notes:
Calculation of Uday’s Capital:
Combined capital of Sanju and Manju = 1,25,600 + 1,10,400 = ₹2,36,000
Capital brought by Uday = 2,36,000 × 4/3 × 1/4 = ₹78,667

Note: No marks to be awarded for the working notes.

Q102.2024 Main 67/3/1 · Q26(a)6 marks

Sarah and Varsha were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Sarah and Varsha as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital :
Sarah 60,000
Varsha 50,000
1,10,000Plant and Machinery
Stock
2,00,000
30,000
Workmen’s Compensation Fund20,000Debtors 50,000
Less : Provision for doubtful debts 5,000
45,000
Provident Fund
Creditors
1,20,000
50,000
Cash25,000
3,00,0003,00,000

On 1st April, 2023, they decided to admit Tasha as a new partner for 1/4th share in the profits of the firm on the following terms :

  1. Tasha brought ₹ 40,000 as her capital and ₹ 20,000 as her share of premium for goodwill.
  2. Plant and Machinery was valued at ₹ 1,90,000.
  3. An item of ₹ 20,000, included in creditors, is not likely to be claimed and should be written off.
  4. Capitals of the partners in the new firm are to be in the new profit sharing ratio on the basis of Tasha’s capital, by bringing or paying off cash, as the case may be.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Revaluation Account

Dr. ParticularsAmount (₹)ParticularsAmount (₹) Cr.
To Plant & Machinery (1/2)10,000By Creditors (1/2)20,000
To Profit t/f to Capital Accounts
Sarah 6,000
Varsha 4,000 (1/2)
10,000
20,00020,000

(1½)

Partners’ Capital Accounts

Dr. ParticularsSarah (₹)Varsha (₹)Tasha (₹)ParticularsSarah (₹)Varsha (₹)Tasha (₹) Cr.
To Cash A/c (1)18,00022,000-By balance b/d (1/2)60,00050,000-
By Workmen Compensation Fund A/c (1/2)12,0008,000-
By Cash A/c (1/2)--40,000
By Premium for Goodwill A/c (1/2)12,0008,000-
To balance c/d (1)72,00048,00040,000By Revaluation A/c (1/2)6,0004,000-
90,00070,00040,00090,00070,00040,000

(4½)

= 6 marks

Q103.2024 Main 67/4/1 · Q24(a)6 marks

Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of 7:3. Their Balance Sheet as on 31st March, 2023 was as follows :

Balance Sheet of Anikesh and Bhavesh as on 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors60,000Cash36,000
Outstanding wages9,000Debtors 54,000
Less : Provision for doubtful debts 6,000

48,000
General Reserve15,000Stock60,000
Capitals :
Anikesh 1,20,000
Bhavesh 1,80,000


3,00,000
Furniture
Machinery
1,20,000
1,20,000
3,84,0003,84,000

On 1st April, 2023 Chahat was admitted for 1/4th share in the profits on the following terms :

  1. Chahat will bring ₹ 90,000 as her capital and ₹ 30,000 as her share of Goodwill premium.
  2. Outstanding wages will be paid.
  3. Stock will be reduced by 10%.
  4. A creditor of ₹ 6,300, not recorded in the books, was to be taken into account.

Pass necessary Journal Entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Anikesh and Bhavesh
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
General Reserve A/c ... Dr
To Anikesh’s Capital A/c
To Bhavesh’s Capital A/c
(General Reserve balance transferred to partners’ capital account in old ratio)
15,000
10,500
4,500
Cash A/c /Bank A/c ... Dr
To Chahat’s Capital A/c
To Premium for goodwill A/c
(Amount brought in by Chahat as her capital and her share of goodwill)
1,20,000
90,000
30,000
Premium for goodwill A/c ... Dr
To Anikesh’s Capital A/c
To Bhavesh’s Capital A/c
(Goodwill premium brought in by new partner shared by old partners in their sacrificing ratio)
30,000
21,000
9,000
Outstanding Wages A/c ... Dr
To Cash/ Bank A/c
(Outstanding wages paid)
9,000
9,000
Revaluation A/c ... Dr
To Stock A/c
To Creditors A/c
(Decrease in the value of stock and increase in the value of creditors on revaluation recorded)
12,300
6,000
6,300
Anikesh’s Capital A/c ... Dr
Bhavesh’s Capital A/c ... Dr
To Revaluation A/c
(Loss on revaluation of assets and reassessment of liabilities transferred to partners’ capital account in old ratio)
8,610
3,690


12,300

(1 × 6 = 6 Marks)

Q104.2024 Main 67/5/1 · Q24(b)6 marks

Divya and Ekta were partners in a firm sharing profits in the ratio of 3 : 1. On 31st March, 2023 they admitted Sona as a new partner for 1/4th share in the profits of the firm. Their Balance Sheet on that date was as follows :

Balance Sheet of Divya and Ekta as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land and Building5,00,000
Divya 10,00,000Machinery6,00,000
Ekta 7,00,00017,00,000Stock1,50,000
General Reserve3,20,000Debtors 4,00,000
Creditors5,40,000Less : Provision for doubtful debts 30,0003,70,000
Investments5,00,000
Cash4,40,000
25,60,00025,60,000

Sona will bring ₹ 4,00,000 as her capital and her share of goodwill in cash. It was agreed that :

  1. Goodwill of the firm was valued at ₹ 2,40,000.
  2. Land & Building were valued at ₹ 7,12,000.
  3. Provision for doubtful debts was found to be in excess by ₹ 8,000
  4. A liability for ₹ 20,000 included in Creditors was not likely to arise.
  5. The capitals of Divya and Ekta will be adjusted on the basis of Sona's capital by opening current accounts.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Profit transferred to Partners’ Capital A/c’s: (½)
Divya 1,80,000
Ekta 60,000
2,40,000By Land and Building A/c (½)2,12,000
By Provision for doubtful debts A/c (½)8,000
By Creditors A/c (½)20,000
2,40,0002,40,000

(2 marks)

Dr. Partners’ Capital Accounts Cr.

ParticularsDivya ₹Ekta ₹Sona ₹ParticularsDivya ₹Ekta ₹Sona ₹
To Partners Current A/c’s (1)5,65,0005,55,000-By Balance b/d (½)10,00,0007,00,000-
To Balance c/d. (½)9,00,0003,00,0004,00,000By Cash A/c (½)--4,00,000
By Revaluation A/c (½)1,80,00060,000-
By General Reserve A/c (½)2,40,00080,000-
By Premium for Goodwill A/c (½)45,00015,000
14,65,0008,55,0004,00,00014,65,0008,55,0004,00,000

(4 marks; = 6 marks)

Q105.2024 Supp. 67/S/1 · Q26(a)6 marks

Anshu and Vihu were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Anshu and Vihu as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors80,000Cash40,000
General Reserve50,000Debtors 36,000
Less Provision for Doubtful debts 2,000

34,000
Investment Fluctuation Fund10,000Stock30,000
Capitals :
  Anshu 1,44,000
  Vihu 80,000


2,24,000
Investments40,000
Plant and Machinery2,20,000
3,64,0003,64,000

On 1st April, 2023, Mani was admitted into partnership for 1/5th share in the profits of the firm on the following terms :

  1. Mani brought ₹ 20,000 as her share of goodwill and proportionate capital.
  2. Provision for doubtful debts was to be maintained at 10% on debtors.
  3. Market value of investments was ₹ 35,000.
  4. The value of Plant and Machinery be increased by ₹ 6,600.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Provision for doubtful debts A/c [½]1,600By Plant and Machinery A/c [½]6,600
To Gain transferred to Capital A/cs : [1]
  Anshu 3,000
  Vihu 2,000


5,000
6,6006,600

(2 marks)

Partners’ Capital A/c

Dr.
Particulars
Anshu (₹)Vihu (₹)Mani (₹)Cr.
Particulars
Anshu (₹)Vihu (₹)Mani (₹)
To Balance c/d [½]1,92,0001,12,00076,000By Balance b/d [½]1,44,00080,000
By General Reserve A/c [½]30,00020,000
By Investment Fluctuation Fund A/c [½]3,0002,000
By Premium for Goodwill A/c [1]12,0008,000
By Revaluation A/c3,0002,000
By Cash A/c [1]76,000
1,92,0001,12,00076,0001,92,0001,12,00076,000

(4 marks)

=6 Marks

Q106.2023 Main 67/1/1 · Q24(a)6 marks

Yuv and Veer were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as on 31st March, 2022 was as under :

Balance Sheet of Yuv and Veer as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors41,000Plant and Machinery60,000
General Reserve80,000Building40,000
Outstanding Expenses12,000Investments60,000
Capitals :
Yuv 79,000
Veer 48,000
1,27,000Stock
Debtors 38,000
Less : Provision for Doubtful Debts 4,000
50,000

34,000
Cash16,000
2,60,0002,60,000

They decided to admit Yash in the firm on 1st April, 2022 for 1/4 share in profits on the following terms :

  1. Yash will bring in proportionate capital and ₹ 4,000 as his share of goodwill premium in cash.
  2. Investments were valued at ₹ 68,000.
  3. Plant and Machinery was to be depreciated by 10%.

Prepare Revaluation Accounts and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Dr. Revaluation A/c Cr.

Particulars₹Particulars₹
To Plant & Machinery A/c [½]6,000By Investment A/c [½]8,000
To Profit transferred to partners’ capital A/cs :
Yuv 1,500
Veer 500 [1]
2,000
8,0008,000

(2 marks)

Dr. Partners’ Capital A/cs Cr.

ParticularsYuv (₹)Veer (₹)Yash (₹)ParticularsYuv (₹)Veer (₹)Yash (₹)
To Balance c/d [1]1,43,50069,50071,000By Balance b/d [½]79,00048,000
By General Reserve A/c [½]60,00020,000
By Premium for goodwill A/c [1]3,0001,000
By Revaluation A/c1,500500
By Cash A/c / Bank A/c [1]71,000
1,43,50069,50071,0001,43,50069,50071,000

(4 marks; 2 + 4 = 6 marks)

Workings:
Adjusted capital of partners (₹)
Yuv 1,43,500
Veer 69,500
Total 2,13,000
Capital of the new firm 2,13,000 × 4/3 = ₹ 2,84,000
Capital brought in by Yash = 2,84,000 × 1/4 = ₹ 71,000

(Note: No marks to be deducted for not showing workings)

[Figures in square brackets are the marks shown against items in the marking scheme.]

Q107.2023 Main 67/2/1 · Q26(a)6 marks

Madhav and Girdhari were partners in a firm sharing profits and losses in the ratio of 3:1. Their balance sheet as at 31st March, 2022 was as follows :

Balance sheet of Madhav and Girdhari as on 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital : Madhav 3,00,000
Girdhari 2,00,000

5,00,000
Machinery
Investment
4,70,000
1,10,000
Workmen's compensation fund60,000Debtors 1,20,000
Less : Provision for doubtful debts 10,000

1,10,000
Creditors1,90,000Stock1,40,000
Employee's Provident fund1,10,000Cash30,000
8,60,0008,60,000

On 1st April, 2022, they admitted Jyoti into partnership for 1/4th share in the profits of the firm. Jyoti brought ₹1,86,000 as her capital and ₹40,000 as her share of goodwill premium in cash. The following terms were agreed upon :

  1. Stock was found undervalued by ₹23,000.
  2. 20% of the investments were taken over by Girdhari at book value.
  3. Claim on account of workmen's compensation amounted to ₹70,000, which was to be paid later.
  4. Creditors included a sum of ₹27,000 which was not likely to be claimed.

Prepare Revaluation A/c and Partners' Capital Accounts on Jyoti's admission.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Revaluation A/c

ParticularsAmount (₹)ParticularsAmount (₹)
To Workmen's Compensation Claim A/c10,000By Stock A/c23,000
To Profit transferred to Partners' Capital A/c
Madhav ₹30,000
Girdhari ₹10,000


40,000
By Creditors A/c27,000
50,00050,000

(½×4 = 2 Marks)

Partners' Capital A/c

Dr
Particulars
Madhav ₹Girdhari ₹Jyoti ₹ParticularsMadhav ₹Girdhari ₹Cr
Jyoti ₹
To Investment A/c [½]--22,000--By Balance b/d [½]3,00,0002,00,000--
To Bal c/d [1]3,60,0001,98,0001,86,000By Cash A/c [½]----1,86,000
By Premium for Goodwill A/c [1]30,00010,000--
By Revaluation A/c [½]30,00010,000--
3,60,0002,20,0001,86,0003,60,0002,20,0001,86,000

(4 Marks) (2+4 = 6 Marks)

Q108.2023 Main 67/3/1 · Q24(a)6 marks

On 31st March, 2022 the Balance Sheet of partners A and B, who were sharing profits in the ratio of 3 : 2 was as follows :

Balance Sheet of A and B as at 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Creditors30,000Cash at Bank20,000
Investment Fluctuation Fund12,000Debtors85,000
General Reserve25,000Less provision5,00080,000
Capitals :Stock1,30,000
  A1,60,000Investments60,000
  B1,40,0003,00,000Furniture77,000
3,67,0003,67,000

On 1st April 2022, they decided to admit C as a new partner for 1/5 share in the profits on the following terms :

  1. C brought ₹ 1,00,000 as his Capital and ₹ 50,000 as his share of Premium for Goodwill.
  2. One month salary ₹ 2,000 was outstanding.
  3. The market value of investments was ₹ 50,000.
  4. A debtor, whose dues were written off as bad debts, paid ₹ 12,000 in full settlement.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

REVALUATION A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Outstanding Salaries A/c (½)2,000By Bad Debts Recovered A/c (½)12,000
To Profit on Revaluation transferred to Partners’ Capital A/c (1)
  A – 6,000
  B – 4,000
10,000
12,00012,000

(2)

PARTNERS’ CAPITAL A/c

ParticularsA ₹B ₹C ₹ParticularsA ₹B ₹C ₹
To Bal c/d (½)2,12,2001,74,8001,00,000By Bal b/d (½)1,60,0001,40,000-
By General Reserve A/c (½)15,00010,000-
By Investment Fluctuation Fund A/c (½)1,200800-
By Premium for Goodwill A/c (1)30,00020,000-
By Revaluation A/c (½)6,0004,000-
By Bank A/c (½)--1,00,000
2,12,2001,74,8001,00,0002,12,2001,74,8001,00,000

(4) = 6 marks

Q109.2023 Main 67/4/1 · Q25(a)6 marks

Bhumi and Chavi were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Aditi in the firm on 1st April, 2022. On that date their Balance Sheet was as follows :

Balance Sheet of Bhumi and Chavi as at 1st April, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :Machinery3,80,000
Bhumi 3,20,000Furniture50,000
Chavi 3,40,0006,60,000Debtors2,30,000
General Reserve80,000Stock1,50,000
Bank loan60,000Cash50,000
Creditors60,000
8,60,0008,60,000

Aditi was admitted in the firm with 1/3 share in profits on the following terms :

  1. Aditi will bring ₹ 3,00,000 as her capital.
  2. Aditi will bring her share of goodwill premium in cash. Goodwill of the firm was valued on the basis of two years purchase of average profits of the last three years. Average profits of the last three years were ₹ 60,000.
  3. Machinery was revalued at ₹ 4,60,000.
  4. The capitals of Bhumi and Chavi were adjusted on the basis of Aditi’s capital by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Revaluation A/c

Dr.
Particulars
Amount (₹)ParticularsCr.
Amount (₹)
To Profit transferred to Partners’ Capital Accounts : (½)
Bhumi 50,000
Chavi 30,000


80,000
By Machinery A/c (½)80,000
80,00080,000

[1 mark]

Partners’ Capital A/c

Dr.
Particulars
Bhumi ₹Chavi ₹Aditi ₹ParticularsBhumi ₹Chavi ₹Cr.
Aditi ₹
By Balance b/d (½)3,20,0003,40,000
By Cash A/c (½)3,00,000
By Revaluation A/c (Profit) (½)50,00030,000
By General Reserve A/c (1)50,00030,000
To Balance c/d4,45,0004,15,0003,00,000By Premium for Goodwill A/c (1)25,00015,000
4,45,0004,15,0003,00,0004,45,0004,15,0003,00,000
To Current A/c (1)70,0001,90,000---By Balance b/d4,45,0004,15,0003,00,000
To Balance c/d (½)3,75,0002,25,0003,00,000
4,45,0004,15,0003,00,0004,45,0004,15,0003,00,000

[5 marks] 1+5=6 marks

Working note:
Calculation of New Capitals:
Capital of New Firm based on Aditi’s capital = 3,00,000 X 3= 9,00,000
New ratio 5:3:4
New Capitals in 5:3:4 :-

  • Bhumi= 5/12 X 9,00,000= ₹3,75,000
  • Chhavi= 3/12 X 9,00,000= ₹2,25,000
  • Aditi= 4/12 X 9,00,000= ₹3,00,000

Note: No marks for working notes.

Q110.2023 Main 67/5/1 · Q24(b)6 marks

Ashish and Vishesh were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 was as under :

Balance Sheet of Ashish and Vishesh as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors30,000Cash at Bank50,000
Outstanding electricity bill20,000Debtors 80,000
Less : provision for bad debts 2,000
78,000
Capitals :
Ashish 3,00,000
Vishesh 2,00,000


5,00,000
Stock
Machinery
Profit and Loss A/c
1,12,000
3,00,000
10,000
5,50,0005,50,000

On 1st April, 2022, Manya was admitted into the firm with 1/4th share in the profits on the following terms :

  1. Manya will bring ₹ 1,00,000 as her capital and ₹ 50,000 as her share of goodwill premium in cash.
  2. Outstanding electricity bill will be paid off.
  3. Stock was found over valued by ₹ 12,000.

Pass the necessary journal entries in the books of the firm on Manya’s admission.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Ashish and Vishesh

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2022
April 1
Cash or Bank A/c Dr.1,50,000
To Manya’s Capital A/c1,00,000
To Premium for Goodwill A/c50,000
(capital and premium for goodwill amount brought by Manya)
”Premium for Goodwill A/c Dr.50,000
To Ashish’s Capital A/c30,000
To Vishesh’s Capital A/c20,000
(premium for goodwill amount distributed between sacrificing partners in sacrificing ratio)
”Outstanding Electricity Bill A/c Dr.20,000
To Cash or Bank A/c20,000
(outstanding electricity bill paid off)
”Revaluation A/c Dr.12,000
To Stock A/c12,000
(value of stock reduced by ₹12,000)
”Ashish’s Capital A/c Dr.7,200
Vishesh’s Capital A/c Dr.4,800
To Revaluation A/c12,000
(loss on revaluation distributed between old partners in old ratio)
”Ashish’s Capital A/c Dr.6,000
Vishesh’s Capital A/c Dr.4,000
To Profit and Loss A/c10,000
(existing loss distributed between old partners in old ratio)

(1 × 6 = 6 marks)

Q111.2023 Supp. 67/C/1 · Q26(a)6 marks

A and B were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 31.03.2022, their Balance Sheet was as follows :

Balance Sheet of A and B as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Outstanding Expenses3,000Bank40,000
Bills Payable20,000Stock60,000
Sundry Creditors1,40,000Bills Receivable70,000
General Reserve80,000Debtors 1,00,000
Less : Provision for doubtful Debts 5,000
95,000
Capitals :
A 2,00,000
B 3,00,000
5,00,000Furniture85,000
Machinery1,10,000
Land and Building2,83,000
7,43,0007,43,000

On the above date, C was admitted as a new partner for 1/5 share in the profits on the following terms :

  1. C will bring ₹ 2,00,000 as her capital and ₹ 1,60,000 as her share of goodwill premium.
  2. Stock will be appreciated by ₹ 1,500.
  3. Debtors of ₹ 5,000 will be written off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Provision for doubtful debts A/c9,500By Stock A/c1,500
By Loss transferred to Partners’ Capital A/c
A ₹6,000
B ₹2,000
8,000
9,5009,500

½ x 3 = 1½ marks

Partners’ Capital Accounts

Dr.
Particulars
A (₹)B (₹)C (₹)Cr.
Particulars
A (₹)B (₹)C (₹)
To Revaluation A/c…... [1]6,0002,000-By balance b/d2,00,0003,00,000-
To balance c/d…… [1]3,74,0003,58,0002,00,000By Bank A/c.. [½]--2,00,000
By General Reserve A/c.. [1]60,00020,000-
By premium for goodwill A/c.. [1]1,20,00040,000-
3,80,0003,60,0002,00,0003,80,0003,60,0002,00,000

4 ½ marks = 6 marks

Q112.SQP 2025-26 · Q25(a)6 marks

Dhwani and Iknoor were partners sharing Profits & Losses in the ratio 3:2. Their Balance Sheet on March 31, 2025 was as follows

LiabilitiesAmount (₹)AssetsAmount (₹)
Dhwani’s Capital2,40,000Cash in Hand50,000
Iknoor’s Capital2,60,000Building3,00,000
Investment Fluctuation Reserve50,000Debtors 80,000
(-) Prov for Doubtful Debts (8,000)
72,000
Employee Provident Fund50,000
General Reserve60,000Stock88,000
Creditors40,000Accrued Income20,000
Bills Payable30,000Profit and Loss1,00,000
Bank Overdraft20,000Investment1,20,000
7,50,0007,50,000

On the above date, they admitted Ishaya into partnership for 25% share. Ishaya brings ₹ 2,50,000 as capital and ₹ 40,000 for goodwill. Goodwill of the firm was valued at ₹ 2,00,000. Following agreements were agreed upon:-

  1. Bad Debts amounted to ₹ 5,000 and Provision for doubtful debts to be created at same existing rate.
  2. Investments were valued at ₹ 1,00,000.
  3. Accrued Income was recovered only of ₹ 14,500 in settlement.
  4. Building was overvalued by 20%.
  5. Capital of Dhwani and Iknoor were to be adjusted on the basis Ishaya’s capital contribution. Necessary adjustment to be done by opening Current Accounts.

You are required to prepare Revaluation Account and Partner’s Capital Account at the time of admission of partner.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Dr. Revaluation Account Cr.

ParticularsAmountParticularsAmount
Prov. For Doubtful Debts4,500Revaluation (Loss)
Accrued Income5,500Dhwani’s Capital36,000
Building50,000Iknoor’s Capital24,000
60,00060,000

Dr. Partner Capital Account Cr.

ParticularsDhwaniIknoorIshayaParticularsDhwaniIknoorIshaya
Rev. Loss36,00024,000Balance b/d2,40,0002,60,000
P&L60,00040,000Inv. Fluct. Res.18,00012,000
Gen. Res.36,00024,000
Cash A/c2,50,000
Prem. for goodwill24,00016,000
Balance c/d2,28,0002,52,0002,50,000Ishaya’s Current6,0004,000
3,24,0003,16,0002,50,0003,24,0003,16,0002,50,000
Balance b/d2,28,0002,52,0002,50,000
Balance c/d4,50,0003,00,0002,50,000Dhwani’s Current2,22,000
Iknoor’s Current48,000
4,50,0003,00,0002,50,0004,50,0003,00,0002,50,000
Q113.SQP 2026-27 · Q25(a)6 marks

X and Y were partners sharing profits in the ratio of 1: 2. Their Balance Sheet as at 31st March 2026 was as follows:

Liabilities₹Assets₹
Creditors30,000Cash20,000
Outstanding Expenses4,000Debtors 40,000
Less: Prov. for doubtful debts 500

39,500
Capitals:
X 1,50,000
Y 3,00,000


4,50,000
Stock1,20,000
General Reserve6,000Furniture30,000
Machinery2,72,500
Patents5,000
Profit and Loss A/c3,000
4,90,0004,90,000

They agreed to admit Z for 1/4th share on 1st April 2026 on the following terms:

  1. Goodwill of the firm was valued at ₹60,000 and Z was to bring in a new and updated machinery costing ₹ 5,000 as a part payment against his share of premium for goodwill and the furniture for the balance of his share of goodwill premium.
  2. ₹ 10,000 were receivable from a debtor who was declared insolvent, only 50% of the amount could be recovered in cash by selling his assets.
  3. Provision for doubtful debts to be raised to 10% of the value of revised debtors.
  4. Patents were valueless.
  5. Stock was found to be overvalued by 20%.
  6. ₹ 3,500 be provided for an unforeseen liability.
  7. Z to bring in capital equal to 1/4th of the combined capital of X and Y after all adjustments.

Pass required journal entries on the admission of Z and also prepare Balance Sheet of the reconstituted firm.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

JOURNAL

DateParticularsLFDr. (₹)Cr. (₹)
1Machinery A/c Dr.5,000
Furniture A/c Dr.10,000
To Premium For Goodwill a/c15,000
(Machinery and furniture brought by the partner for premium for goodwill share)
2Premium For Goodwill A/c Dr.15,000
To A’s capital A/c5,000
To B’s capital A/c10,000
(Premium for goodwill distributed between old partners)
3Bank A/c Dr.5,000
Bad debts A/c Dr.5,000
To Debtors A/c10,000
(Debts amounting to 10,000 but only paid 50% of the amount)
4Revaluation A/c Dr.4,500
Provision for doubtful debts A/c Dr.500
To Bad debts A/c5,000
(Bad debts adjusted to provision for doubtful debts a/c and remaining transferred to revaluation account)
5Revaluation A/c Dr.31,500
To Provision for doubtful debts A/c3,000
To Patents A/c5,000
To Stock A/c20,000
To Unforeseen liability A/c3,500
(Assets and liabilities transferred to revaluation account)
6A’s capital A/c Dr.12,000
B’s capital A/c Dr.24,000
To Revaluation A/c36,000
(Loss on revaluation transferred to partners’ capital account)
7General reserve A/c Dr.6,000
To A’s capital a/c2,000
To B’s capital a/c4,000
(General reserve transferred to partners capital account)
8A’ s capital A/c Dr.1,000
B’s capital A/c Dr.2,000
To Profit and loss A/c3,000
(Balance of profit and loss account transferred to partners’ capital account)
9Bank A/c Dr.1,08,000
To Z’s capital A/c1,08,000
(Capital brought by the new partner as per the combined capital of old partners)

Adjusted capital of X = 150,000+5,000+2000-12000-1000 = ₹1,44,000
Adjusted capital of Y=300,000+10,000+4,000-24000-2000 = ₹2,88,000
Z will bring as capital =1/4 (144,000+2,88,000) = ₹1,08,000

Balance Sheet (After Reconstitution)

Liabilities(₹)Assets(₹)
Creditors30,000Cash1,33,000
Outstanding expenses4,000Debtors. 30,000
Less: Prov. For doubtful debts (3000)

27,000
Capital accounts
X

1,44,000
Stock1,00,000
Y2,88,000Furniture40,000
Z1,08,000Machinery2,77,500
Unforeseen liabilities3,500
5,77,5005,77,500
Part A · Partnership

5. Retirement and Death of a Partner

Q1.2026 Main 67/1/1 · Q9(a)1 mark

Dharam, Karam and Raman were partners in a firm sharing profits and losses in the ratio of 7 : 8 : 5. On 31st March, 2025, Raman retired from the firm. Dharam and Karam decided to share profits in future in the ratio of 11 : 9. Their gaining ratio will be :

  1. 1 : 1
  2. 1 : 2
  3. 4 : 1
  4. 2 : 1
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) 4:1

Q2.2026 Main 67/1/1 · Q9(b)1 mark

Deen, Raju and Hari were partners in a firm sharing profit and losses in the ratio of 7 : 6 : 7. On 31st March, 2025 Raju died. Deen and Hari decided to take over Raju’s share equally. The new profit sharing ratio between Deen and Hari will be :

  1. 1 : 1
  2. 7 : 6
  3. 6 : 7
  4. 3 : 2
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) 1:1

Q3.2026 Main 67/1/1 · Q161 mark

Lalita, Shivani and Madhuri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Madhuri retired from the firm on 31st March, 2025. The balance in her capital account on the date of her retirement was ₹1,80,000. Lalita and Shivani agreed to pay her ₹2,25,000 in full settlement of her claim.

The goodwill of the firm on Madhuri’s retirement was :

  1. ₹1,80,000
  2. ₹2,25,000
  3. ₹45,000
  4. ₹2,70,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(D) ₹2,70,000

Q4.2026 Main 67/2/1 · Q8(a)1 mark

Zubin, Nidhi and Reena were partners in a firm sharing profits and losses in the ratio of 2:1:2. The firm closes its books on 31st March every year. On 31st July, 2025 Reena died. Her share in the profits of the firm from the last balance sheet till the date of death was to be calculated on the basis of previous year's profit. The profit of the firm for the year ended 31st March, 2025 was ₹ 6,00,000.
Reena's share of profit till the date of her death was :

  1. ₹ 2,40,000
  2. ₹ 6,00,000
  3. ₹ 60,000
  4. ₹ 80,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) ₹ 80,000

Q5.2026 Main 67/2/1 · Q10(a)1 mark

Sameer, Rajat and Aastha were partners in a firm sharing profits and losses in the ratio of 2:3:1. Rajat retired from the firm on 31st March, 2025. On the date of Rajat's retirement, the Balance Sheet of the firm showed a balance of ₹ 2,40,000 in Workmen Compensation Fund. The claim on account of workmen compensation amounted to ₹ 1,80,000. The amount credited to Rajat's capital account on the treatment of Workmen Compensation Fund would be

  1. ₹ 1,20,000
  2. ₹ 20,000
  3. ₹ 30,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) ₹ 30,000

Q6.2026 Main 67/2/1 · Q10(b)1 mark

Meera, Varun and Tarun were partners in a firm sharing profits and losses in the ratio of 5:2:3. Meera retired and Varun and Tarun decided to share future profits and losses equally. On Meera's retirement, the goodwill of the firm was valued at ₹ 5,00,000. The amount that was debited to Varun's and Tarun's capital account for the treatment of goodwill was :

  1. Varun ₹ 3,00,000, Tarun ₹ 2,00,000
  2. Varun ₹ 1,50,000, Tarun ₹ 1,00,000
  3. Varun ₹ 1,00,000, Tarun ₹ 1,50,000
  4. Varun ₹ 1,25,000, Tarun ₹ 1,25,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) Varun ₹ 1,50,000, Tarun ₹ 1,00,000

Q7.2026 Main 67/2/1 · Q141 mark

Assertion (A) : The retiring partner or the executors of the deceased partner are entitled to their share of goodwill at the time of retirement or death.

Reason (R) : Goodwill is earned by the firm with the efforts of all the existing partners (including the retiring or deceased partner).

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)

Q8.2026 Main 67/2/1 · Q151 mark

Vani, Vanya and Ajay were partners in a firm sharing profits and losses in the ratio of 5:3:2. Vani retired and her share was taken over by Vanya and Ajay in the ratio of 2:3. The new profit sharing ratio between Vanya and Ajay after Vani's retirement was :

  1. 2:1
  2. 5:3
  3. 3:2
  4. 1:1
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) 1:1

Q9.2026 Main 67/3/1 · Q7(b)1 mark

Arun, Varun and Tarun were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025, Arun died. Varun and Tarun decided to share future profits equally. The gaining ratio of Varun and Tarun will be :

  1. 1 : 1
  2. 3 : 2
  3. 2 : 3
  4. 5 : 2
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C) 2 : 3

Q10.2026 Main 67/4/1 · Q31 mark

Ravi, Sunil and Amit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 5. On 1st April, 2025, Ravi retired. Sunil and Amit decided to share future profits in the ratio of 2 : 3. After all adjustments with respect to general reserve, goodwill and revaluation, etc., the balances in the capital accounts of Ravi, Sunil and Amit stood at ₹ 3,00,000; ₹ 2,40,000 and ₹ 3,60,000 respectively. It was decided that the amount payable to Ravi will be brought by Sunil and Amit in such a way so as to make their capitals proportionate to their new profit sharing ratio. The amount brought in by Sunil and Amit will be :

  1. Sunil ₹ 1,00,000, Amit ₹ 2,00,000
  2. Sunil ₹ 1,20,000, Amit ₹ 1,80,000
  3. Sunil ₹ 1,50,000, Amit ₹ 1,50,000
  4. Sunil ₹ 80,000, Amit ₹ 2,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) Sunil ₹ 1,20,000, Amit ₹ 1,80,000

Q11.2026 Main 67/4/1 · Q5(a)1 mark

Ravi, Sohan and Neena were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April 2025, Sohan retired and his share was taken up by Ravi and Neena in the ratio of 2 : 1. The new profit sharing ratio between Ravi and Neena will be :

  1. 3 : 2
  2. 2 : 1
  3. 5 : 4
  4. 7 : 3
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(D) 7 : 3

Q12.2026 Main 67/4/1 · Q5(b)1 mark

Kunal, Raj and Leela were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. On 1st April, 2025, Kunal retired. Raj and Leela decided to share profits in the future in the ratio of 5 : 3. The gaining ratio between Raj and Leela will be :

  1. 5 : 3
  2. 3 : 2
  3. 21 : 11
  4. 7 : 5
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) 21 : 11

Q13.2026 Main 67/4/1 · Q6(b)1 mark

Ravi, Nisha and Priya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Ravi retired and the balance in his Capital Account after making necessary adjustments on account of reserves and revaluation of assets and re-assessment of liabilities was ₹ 2,40,000. Nisha and Priya agreed to pay him ₹ 2,70,000 in full settlement of his claim. The value of goodwill of the firm was :

  1. ₹ 30,000
  2. ₹ 90,000
  3. ₹ 60,000
  4. ₹ 1,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 60,000

Q14.2026 Main 67/5/1 · Q4(b)1 mark

Samta, Mamta and Geeta were partners in a firm sharing profits and losses in the ratio of 11 : 5 : 4. On 31st March, 2025 Samta died. On Samta’s death, the goodwill of the firm was valued at ₹1,80,000. The necessary journal entry for the treatment of goodwill on Samta’s death will be :

ParticularsDr. Amount (₹)Cr. Amount (₹)
(A)Samta’s Capital A/c ……Dr.99,000
To Mamta’s Capital A/c55,000
To Geeta’s Capital A/c44,000
(B)Mamta’s Capital A/c ……Dr.1,00,000
Geeta’s Capital A/c ……Dr.80,000
To Samta’s Capital A/c1,80,000
(C)Samta’s Capital A/c ……Dr.1,80,000
To Mamta’s Capital A/c1,00,000
To Geeta’s Capital A/c80,000
(D)Mamta’s Capital A/c ……Dr.55,000
Geeta’s Capital A/c ……Dr.44,000
To Samta’s Capital A/c99,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D)

ParticularsDr. Amount (₹)Cr. Amount (₹)
(D)Mamta’s Capital A/c ……Dr.55,000
Geeta’s Capital A/c ……Dr.44,000
To Samta’s Capital A/c99,000
Q15.2026 Main 67/5/1 · Q7(a)1 mark

John, Honey and Racob were partners in a firm sharing profits and losses equally. On 31st July, 2025 John died. His share in the profits of the firm from the date of last balance sheet till the date of his death will be :

  1. Debited to Profit and Loss Account
  2. Credited to Profit and Loss Account
  3. Debited to Profit and Loss Suspense Account
  4. Credited to Profit and Loss Suspense Account
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) Debited to Profit and Loss Suspense Account

Q16.2026 Main 67/5/1 · Q7(b)1 mark

Shashi, Maya and Komal were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025 Komal retired. The new profit sharing ratio between Shashi and Maya was decided as 3 : 5. The gain or sacrifice of Shashi and Maya on Komal’s retirement was :

  1. Shashi’s sacrifice 1/8; Maya’s gain 13/40
  2. Shashi’s gain 1/8; Maya’s sacrifice 13/40
  3. Shashi’s sacrifice 1/8; Maya’s sacrifice 13/40
  4. Shashi’s gain 1/8; Maya’s gain 13/40
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(A) Shashi’s sacrifice 1/8; Maya’s gain 13/40

Q17.2026 Main 67/5/1 · Q9(a)1 mark

Sudama, Sharma and Varun were partners in a firm sharing profits and losses in the ratio of 6 : 4 : 3. Sharma retired from the firm on 31st March, 2025. The gaining ratio of Sudama and Varun will be :

  1. 3 : 2
  2. 2 : 1
  3. 1 : 2
  4. 2 : 3
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) 2 : 1

Q18.2026 Main 67/5/1 · Q9(b)1 mark

Hari, Murari and Abhi were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 4. Murari retired from the firm on 31st March, 2025. Hari and Abhi decided to share profits in the future in the ratio of 2 : 1. The gaining ratio of Hari and Abhi was :

  1. 1 : 2
  2. 8 : 7
  3. 2 : 1
  4. 7 : 4
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) 2 : 1

Q19.2026 Main 67/5/1 · Q161 mark

Raha, Naveen and Vandana were partners in a firm sharing profits and losses equally. Naveen retired on 31st March, 2025. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and reassessment of liabilities was ₹1,27,000. Naveen was paid ₹1,50,000 in full settlement of his claim. The value of goodwill of the firm on the date of Naveen’s retirement was :

  1. ₹1,50,000
  2. ₹23,000
  3. ₹69,000
  4. ₹4,50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) ₹69,000

Q20.2026 Supp. 67/7/1 · Q1(a)1 mark

Diksha, Madhav and Rohit were partners in a firm, sharing profits and losses in the ratio of 5 : 3 : 2. Rohit retired on 31st March, 2025. The balance in Rohit’s capital account after making the necessary adjustments on account of reserves, revaluation of assets and reassessment of liabilities was ₹ 4,30,000. Diksha and Madhav agreed to pay him ₹ 5,00,000 in full settlement of his claim. Rohit’s share of goodwill in the firm was :

  1. ₹ 9,30,000
  2. ₹ 70,000
  3. ₹ 5,00,000
  4. ₹ 3,50,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ₹70,000

Q21.2026 Supp. 67/7/1 · Q101 mark

Farid, Madhur and Tarush were partners in a firm, sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. Tarush died on 30th November, 2025. As per the partnership deed, the executors of the deceased partner are entitled to his share of the profits till the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March, 2025 was ₹ 3,60,000. Tarush’s share of profit was :

  1. ₹ 2,40,000
  2. ₹ 24,000
  3. ₹ 48,000
  4. ₹ 72,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) ₹48,000

Q22.2026 Supp. 67/7/1 · Q151 mark

Aarti, Nikita and Sakshi were partners in a firm, sharing profits and losses in the ratio of 2 : 3 : 5. Nikita retired. Her share of profit was taken up by Aarti and Sakshi in the ratio of 2 : 1. The new profit sharing ratio between Aarti and Sakshi will be :

  1. 2:3
  2. 3:2
  3. 2:5
  4. 2:1
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) 2:3

Q23.2025 Main 67/1/1 · Q8(b)1 mark

Sia, Tisha and Aryan were partners sharing profits and losses in the ratio of 4 : 7 : 1. The firm closes its books on 31st March every year. Tisha died on 1st July, 2024. Sia and Aryan will acquire Tisha's share in which of the following ratio ?

  1. 1 : 1
  2. 4 : 1
  3. 4 : 7
  4. 7 : 1
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) 4 : 1

Q24.2025 Main 67/1/1 · Q10(a)1 mark

Vishesh, Manik and Amit were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Amit retired on 31st March, 2024. Vishesh and Manik acquired Amit's share in the ratio of 2 : 3. The new profit sharing ratio between Vishesh and Manik after Amit's retirement will be :

  1. 5 : 4
  2. 2 : 3
  3. 1 : 1
  4. 27 : 23
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) 27 : 23

Q25.2025 Main 67/1/1 · Q10(b)1 mark

Varsha, Aryan and Nimit were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Varsha retired and surrendered 1/3rd of her share in favour of Aryan and the remaining share in favour of Nimit. The new profit sharing ratio between Aryan and Nimit will be :

  1. 2 : 1
  2. 8 : 7
  3. 1 : 2
  4. 1 : 1
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) 8 : 7

Q26.2025 Main 67/1/1 · Q151 mark

Ashmit, Veena and Rohan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Veena retired on 31st March, 2024. The capital accounts of Ashmit, Veena and Rohan showed a credit balance of ₹ 2,00,000, ₹ 1,80,000 and ₹ 1,20,000 respectively after making all adjustments relating to revaluation, goodwill, reserves etc. Veena was paid in cash brought in by Ashmit and Rohan in such a way that their capitals were in proportion to their new profit sharing ratio. The new capitals of Ashmit and Rohan will be :

  1. Ashmit ₹ 3,75,000 and Rohan ₹ 1,25,000
  2. Ashmit ₹ 2,00,000 and Rohan ₹ 1,20,000
  3. Ashmit ₹ 2,50,000 and Rohan ₹ 2,50,000
  4. Ashmit ₹ 3,00,000 and Rohan ₹ 2,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Ashmit ₹ 3,75,000 and Rohan ₹ 1,25,000

Q27.2025 Main 67/2/1 · Q16(a)1 mark

Ishan, Jatin and Kapil were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Jatin retired and his share was taken up by Ishan and Kapil in the ratio 1 : 1. The new profit-sharing ratio between Ishan and Kapil after Jatin's retirement will be :

  1. 5 : 1
  2. 1 : 1
  3. 5 : 4
  4. 7 : 3
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) 7:3

Q28.2025 Main 67/2/1 · Q16(b)1 mark

Sakshi, Kiara and Gunjan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Kiara retired on 1-4-2023. After all adjustments the amount due to Kiara was ₹ 5,00,000. The payment was to be made in two yearly instalments of ₹ 2,50,000 each plus interest @ 10% per annum on the unpaid balance. The amount of first instalment paid on 31-03-2024 will be :

  1. ₹ 3,00,000
  2. ₹ 2,75,000
  3. ₹ 5,50,000
  4. ₹ 2,50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) ₹3,00,000

Q29.2025 Main 67/4/1 · Q15(a)1 mark

Tavish, Umesh and Varun were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Tavish retired. Umesh and Varun decided to share profits and losses in future in the ratio of 5 : 3. The gaining share of Umesh will be :

  1. 21/72
  2. 11/72
  3. 45/72
  4. 32/72
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) 21/72

Q30.2025 Main 67/4/1 · Q15(b)1 mark

Asit, Sonu and Hina were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Asit retired and the balance in his capital account after making necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 40,00,000. Sonu and Hina agreed to pay him ₹ 45,00,000 in full settlement of his claim. The value of goodwill of the firm was :

  1. ₹ 5,00,000
  2. ₹ 20,00,000
  3. ₹ 15,00,000
  4. ₹ 10,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) ₹ 10,00,000

Q31.2025 Main 67/4/1 · Q16(a)1 mark

Ajit, Biswas and Chitra were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Biswas died on 30th September, 2024. The firm closes its books on 31st March every year. Biswas’s share of profits till the date of death from the last Balance Sheet date, was to be calculated on the basis of sales. Sales for the year ended 31st March, 2024 amounted to ₹ 24,00,000 and that from 1st April, 2024 to 30th September, 2024 amounted to ₹ 15,00,000. The profits for the year ended 31st March, 2024 were ₹ 2,40,000. Biswas’s share of profits till the date of his death was :

  1. ₹ 11,250
  2. ₹ 70,000
  3. ₹ 45,000
  4. ₹ 22,500
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) ₹ 45,000

Q32.2025 Main 67/4/1 · Q16(b)1 mark

Isha, Julie and Kavita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. On 12th June, 2024, Kavita died. Her share in the profits of the firm from the last Balance Sheet till the date of death was to be calculated on the basis of last year’s profit. Last year’s profits were ₹ 6,00,000. Kavita’s share of profit till the date of her death was :

  1. ₹ 20,000
  2. ₹ 30,000
  3. ₹ 40,000
  4. ₹ 50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) ₹ 20,000

Q33.2025 Main 67/5/1 · Q2(b)1 mark

Ravita, Savita, Kavita and Babita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 : 2. On 1st April, 2024 Savita retired and her share was acquired equally by the remaining partners. The new profit sharing ratio between Ravita, Kavita and Babita will be :

  1. 2 : 1 : 1
  2. 1 : 2 : 1
  3. 1 : 1 : 2
  4. 3 : 3 : 2
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) 2:1:1

Q34.2025 Main 67/6/1 · Q91 mark

Daman, Mohit and Paras were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Daman retires. Mohit and Paras decided to share future profits and losses in the ratio of 5 : 3. The gaining ratio of Mohit and Paras will be :

  1. 21 : 11
  2. 3 : 2
  3. 5 : 3
  4. 1 : 1
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) 21 : 11

Q35.2025 Main 67/6/1 · Q15(a)1 mark

Sona, Mona and Raghav were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Raghav retired. The balance in Raghav's capital account after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹2,20,000. Sona and Mona agreed to pay him ₹4,00,000 in full settlement of his claim. Raghav's share of goodwill in the firm was :

  1. ₹2,20,000
  2. ₹1,80,000
  3. ₹4,00,000
  4. ₹40,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) ₹1,80,000

Q36.2025 Main 67/6/1 · Q161 mark

Sharma, Verma and Khan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 31st December, 2024 Khan died. Khan's share in the profits of the firm till the date of his death was to be calculated on the basis of the profit of the previous year. During the year ended 31st March, 2024 the firm earned a profit of ₹6,00,000. The treatment for Khan's share in the profits of the firm till the date of his death will be :

  1. Khan's Capital Account will be debited by ₹90,000 and Profit and Loss Suspense Account will be credited by ₹90,000.
  2. Profit and Loss Suspense Account will be debited by ₹90,000 and Khan's Capital Account will be credited by ₹90,000.
  3. Khan's Capital Account will be debited by ₹1,20,000 and Profit and Loss Suspense Account will be credited by ₹1,20,000.
  4. Profit and Loss Suspense Account will be debited by ₹1,20,000 and Khan's Capital Account will be credited by ₹1,20,000.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) Profit and Loss Suspense Account will be debited by ₹90,000 and Khan's Capital Account will be credited by ₹90,000.

Q37.2025 Main 67/7/1 · Q141 mark

Hari, Chander, Prakash and Govind were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1 : 1. On 1st April, 2024, Hari retired and his share was acquired equally by Chander, Prakash and Govind. The new profit sharing ratio of Chander, Prakash and Govind will be :

  1. 7 : 4 : 4
  2. 15 : 8 : 7
  3. 1 : 1 : 1
  4. 16 : 7 : 7
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) 7:4:4

Q38.2025 Main 67/7/1 · Q151 mark

Vimal, Bose and Ghosh were partners in a firm sharing profits and losses equally. On 1st April, 2024, Bose retired from the firm and the new profit sharing ratio between Vimal and Ghosh was decided as 4 : 3. On Bose’s retirement, the goodwill of the firm was valued at ₹2,10,000. It was decided to treat goodwill without opening goodwill account. By what amount will the partners’ capital accounts be debited or credited for the treatment of goodwill on Bose’s retirement ?

  1. Debit Bose’s A/c by ₹70,000, Credit Vimal and Ghosh by ₹50,000 and ₹20,000, respectively.
  2. Debit Vimal by ₹50,000, Debit Ghosh by ₹20,000 and Credit Bose by ₹70,000.
  3. Credit Vimal, Bose and Ghosh by ₹70,000 each and Debit Goodwill A/c by ₹2,10,000.
  4. Debit Vimal by ₹1,20,000, Debit Ghosh by ₹90,000 and Credit Bose’s A/c by ₹2,10,000.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) Debit Vimal by ₹50,000, Debit Ghosh by ₹20,000 and Credit Bose by ₹70,000.

Q39.2025 Supp. 67/S/1 · Q8(b)1 mark

Rohan, Piyush and Suman were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. Piyush retired. The new profit sharing ratio between Rohan and Suman after Piyush’s retirement was 4 : 3. The gaining ratio of remaining partners will be :

  1. 2:1
  2. 3:2
  3. 4:3
  4. 1:1
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) 1:1

Q40.2024 Main 67/1/1 · Q16(a)1 mark

Anju, Divya and Bobby were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Bobby retired. The new profit sharing ratio between Anju and Divya after Bobby’s retirement was 5 : 3. The gaining ratio of remaining partners will be :

  1. 3 : 2
  2. 5 : 3
  3. 3 : 1
  4. 2 : 3
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) 3:1

Q41.2024 Main 67/1/1 · Q16(b)1 mark

Mita, Veena and Atul were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Atul retired and his share was taken over by Mita and Veena in the ratio of 1 : 4. The new profit sharing ratio between Mita and Veena after Atul’s retirement will be :

  1. 3 : 2
  2. 8 : 7
  3. 7 : 3
  4. 2 : 3
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) 8:7

Q42.2024 Main 67/3/1 · Q15(a)1 mark

Nicku, Mala and Ritu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nicku died on 30th September, 2023. The deceased partner was entitled to his share of profit up to the date of death which was to be calculated on the basis of previous year’s profit. The previous year’s profit was ₹ 80,000. Nicku’s share of profit will be :

  1. ₹ 10,000
  2. ₹ 20,000
  3. ₹ 30,000
  4. ₹ 40,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) ₹ 20,000

Q43.2024 Main 67/3/1 · Q16(b)1 mark

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu’s share in the ratio of 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death will be :

  1. 2 : 1
  2. 1 : 2
  3. 5 : 4
  4. 4 : 5
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) 5 : 4

Q44.2024 Main 67/4/1 · Q31 mark

Aditya, Vishesh and Nimesh were partners in a firm sharing profits and losses equally. Aditya died on 1st July, 2023. Remaining partners decided to continue the business of the firm and decided to share future profits in the ratio of 4:3. The gaining ratio of Vishesh and Nimesh will be :

  1. 4:3
  2. 3:2
  3. 5:2
  4. 1:1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) 5:2

Q45.2024 Main 67/4/1 · Q9(a)1 mark

Riya, Rita and Renu were partners in a firm. On 31st March, 2023 Renu retired. The amount payable to Renu ₹ 2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. The rate at which interest would be paid to Renu is :

  1. 9% p.a.
  2. 6% p.a.
  3. 12% p.a.
  4. 10% p.a.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) 6% p.a.

Q46.2024 Main 67/4/1 · Q9(b)1 mark

Ravi, Vani and Toni were equal partners in a firm. After the retirement of Vani, the capital balances of Ravi and Toni were ₹ 1,56,000 and ₹ 1,08,000 respectively. The new capital of the firm was determined at ₹ 2,80,000. It was decided that the capital will be in proportion of the profit sharing ratio of the remaining partners. Toni will bring _____ for deficiency of his new capital.

  1. ₹ 40,000
  2. ₹ 12,000
  3. ₹ 20,000
  4. ₹ 32,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) ₹32,000

Q47.2024 Main 67/5/1 · Q8(a)1 mark

Kriti, Hina and Nidhi were partners sharing profits in the ratio of 3 : 2 : 1. Nidhi retired. On the date of her retirement, Workmen Compensation Fund stood in the Balance Sheet at ₹ 1,50,000. Workmen Compensation Claim was ₹ 1,20,000. How much amount of Workmen Compensation Fund will be credited to Nidhi's Capital Account ?

  1. ₹ 30,000
  2. ₹ 10,000
  3. ₹ 5,000
  4. ₹ 15,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) ₹5,000

Q48.2024 Main 67/5/1 · Q8(b)1 mark

Rohit, Udit and Mohit were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Mohit retired. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 1,80,000. Rohit and Udit agreed to pay him ₹ 2,00,000 in full settlement of his claim. Mohit's share of goodwill in the firm was

  1. ₹ 1,80,000
  2. ₹ 2,00,000
  3. ₹ 40,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) ₹20,000

Q49.2024 Main 67/5/1 · Q16(a)1 mark

Aditi, Sukriti and Niti were partners sharing profits in the ratio of 2 : 2 : 1. Sukriti died on 30th June, 2023. Net profit for the year ended 31st March, 2023 was ₹ 4,50,000. If the deceased partner's share of profit is to be calculated on the basis of previous year's profit, the amount of profit credited to Sukriti's Capital Account will be :

  1. ₹ 90,000
  2. ₹ 45,000
  3. ₹ 1,80,000
  4. ₹ 1,12,500
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) ₹45,000

Q50.2024 Supp. 67/S/1 · Q16(a)1 mark

Anu, Bina and Roy were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Roy retired and his share was acquired by Anu. The new profit sharing ratio between Anu and Bina after Roy’s retirement will be :

  1. 3 : 2
  2. 3 : 1
  3. 1 : 1
  4. 2 : 1
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) 2:1

Q51.2024 Supp. 67/S/1 · Q16(b)1 mark

Asha, Yug and Zubin were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Zubin retired. Zubin’s share was acquired equally by Asha and Yug. The new profit sharing ratio between Asha and Yug after Zubin’s retirement was :

  1. 3 : 2
  2. 5 : 4
  3. 4 : 3
  4. 2 : 1
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) 5:4

Q52.2023 Main 67/1/1 · Q81 mark

Aman, Aadhar and Avinash were partners and sharing profits in the ratio of 3 : 2 : 1. Avinash retired from the firm on 1st July, 2022. On the date of Avinash’s retirement, the Balance Sheet showed a debit balance of ₹ 1,20,000 in the Profit and Loss Account. For calculating the amount payable to Avinash, this balance will be transferred :

  1. To the debit side of the capital accounts of Aman and Aadhar in old profit sharing ratio.
  2. To the debit side of the capital accounts of Aman, Aadhar and Avinash in old profit sharing ratio.
  3. To the credit side of the capital accounts of Aman and Aadhar in new profit sharing ratio.
  4. To the credit side of the capital accounts of Aman and Aadhar in their gaining ratio.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) To the debit side of the capital accounts of Aman, Aadhar and Avinash in old profit sharing ratio.

Q53.2023 Main 67/1/1 · Q91 mark

Nidhi, Kunal and Kabir are partners in a firm sharing profits in the ratio of 2 : 1 : 2. Kunal retired and the balance in his capital account after making necessary adjustments on account of reserves, revaluation of assets and reassessment of liabilities was ₹ 80,000. Nidhi and Kabir agreed to pay him ₹ 1,00,000 in full settlement of his claim. Kunal’s share of goodwill of the firm, on his retirement was :

  1. ₹ 4,000
  2. ₹ 20,000
  3. ₹ 16,000
  4. ₹ 1,80,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) ₹ 20,000

Q54.2023 Main 67/1/1 · Q16(i)1 mark

P, Q and R were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. P died on 1st September, 2022. On the date of P’s death, the profits of the firm were calculated as ₹ 80,000. P’s share of profit will be adjusted by :

  1. Debiting Profit and Loss Account with ₹ 40,000.
  2. Debiting Profit and Loss Appropriation Account by ₹ 40,000.
  3. Debiting Profit and Loss Suspense Account with ₹ 80,000.
  4. Debiting Profit and Loss Suspense Account with ₹ 40,000.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) Debiting Profit and Loss Suspense Account with ₹ 40,000

Q55.2023 Main 67/1/1 · Q16(ii)1 mark

Pooja, Nita and Anita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Pooja retired and her share is taken up by Nita and Anita equally. The new profit sharing ratio of Nita and Anita will be :

  1. 2 : 1
  2. 7 : 5
  3. 1 : 1
  4. 3 : 2
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) 7 : 5

Q56.2023 Main 67/2/1 · Q91 mark

Gopal, Krishna and Govind were partners sharing profits and losses in the ratio of 5:4:3. Krishna retired on 1st April, 2022. Gopal and Govind purchased his share of profit by giving him ₹1,20,000. ₹80,000 was paid by Gopal and ₹40,000 by Govind. Gaining ratio is :

  1. 1 : 2
  2. 5 : 3
  3. 1 : 1
  4. 2 : 1
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) 2:1

Q57.2023 Main 67/3/1 · Q61 mark

Gopal, Krishna and Govind are partners sharing profits and losses in the ratio of 5 : 4 : 3. Krishna retired on 1st April, 2022. Gopal and Govind purchased her share of profit by giving her ₹ 1,20,000, ₹ 80,000 being paid by Gopal and ₹ 40,000 by Govind. The gaining ratio will be :

  1. 5 : 3
  2. 4 : 3
  3. 1 : 1
  4. 2 : 1
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) 2:1

Q58.2023 Main 67/4/1 · Q4(ii)1 mark

Vijay, Ajay and Sanjay are partners in a firm sharing profits and losses in the ratio of 7 : 5 : 8. Sanjay died on 28th August, 2021. His share in the profits of the firm till the date of his death was determined at ₹ 75,000. It will be debited to which of the following accounts ?

  1. Profit and Loss Suspense Account
  2. Profit and Loss Account
  3. Profit and Loss Appropriation Account
  4. Profit and Loss Adjustment Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) Profit and Loss Suspense Account

Q59.2023 Main 67/4/1 · Q16(i)1 mark

Anu, Monu and Sonu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Monu died on 1st January, 2022. Anu and Sonu will acquire Monu’s share in the ratio of :

  1. 1 : 1
  2. 3 : 2
  3. 5 : 3
  4. 5 : 2
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(D) 5:2

Q60.2023 Main 67/4/1 · Q16(ii)1 mark

Vidit, Sumit and Mita were partners in a firm sharing profits in the ratio of 4 : 3 : 1. Mita died and her entire share was taken up by Vidit. The new profit sharing ratio of Vidit and Sumit will be :

  1. 1 : 1
  2. 5 : 3
  3. 3 : 5
  4. 5 : 2
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) 5:3

Q61.2023 Main 67/5/1 · Q81 mark

Nita, Suman and Harish were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Suman retired from the firm. On the date of Suman’s retirement, ₹ 30,000 was due to her. The remaining partners decided to pay her in three yearly instalments starting from the end of the first year. ₹ 30,000 will be transferred to which of the following account :

  1. Suman’s Loan Account
  2. Suman’s Executor’s Accounts
  3. Suman’s Bank Account
  4. Suman’s Current Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) Suman’s Loan Account

Q62.2023 Main 67/5/1 · Q111 mark

Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. On 30th June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000.

Profits for the last three years were :

Year endedProfits/Loss (₹)
31st March, 20201,20,000
31st March, 2021(50,000)
31st March, 20221,70,000

Khushi’s share of profit till the date of her death was :

  1. ₹ 35,000
  2. ₹ 9,583
  3. ₹ 28,750
  4. ₹ 8,750
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) ₹8,750

Q63.2023 Supp. 67/C/1 · Q2(b)1 mark

P, Q and R were partners in a firm. On 31.03.2022, R died. R’s share was taken over by P. P’s new share in the profits of the firm will be :

  1. 2/3
  2. 1/3
  3. 1/2
  4. 3/4
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) 2/3

Q64.SQP 2025-26 · Q8(a)1 mark

A, B and C were partners sharing Profits &Losses in the ratio 7:2:1. B died. A took over 1/20 from his share and remaining share was taken over by C. Determine the new Profit sharing Ratio.

  1. 4 : 1
  2. 7 : 1
  3. 71 : 29
  4. 3 : 1
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) 3 : 1

Q65.SQP 2025-26 · Q8(b)1 mark

X, Y and Z were partners sharing Profit & Losses in the ratio 5:3:2. Y retired, and he gifted half of his share to X and remaining half was taken over equally by X and Z. Determine the new Profit-sharing Ratio.

  1. 29 : 11
  2. 13 : 7
  3. 1 : 1
  4. 5 : 2
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(A) 29 : 11

Q66.SQP 2026-27 · Q61 mark

A, B and C were partners sharing profits and losses in the ratio of 5:3:2. A died on 1st October 2025. The loss till the date of death was calculated at ₹ 75,000. Goodwill is to be valued at two years’ purchase of the average profits of the last three years. The profits for the last three years were ₹3,28,000; ₹3,46,000; and ₹4,00,000.

Calculate the amount payable by B and C to A’s executor towards goodwill.

  1. ₹ 1,79,000 and ₹ 1,79,000
  2. ₹ 2,14,800 and ₹ 1,43,200
  3. ₹ 4,29,600 and ₹ 2,86,400
  4. ₹ 2,23,750 and ₹ 1,34,250
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) ₹ 2,14,800 and ₹ 1,43,200

Q67.SQP 2026-27 · Q131 mark

Choose the correct sequence of events in case of retirement of a partner.

(i) Preparation of revaluation A/c.
(ii) Transfer of amount due to retiring partner to retiring partner’s loan A/c.
(iii) Preparation of capital A/c to calculate amount due to retiring partner.
(iv) Treatment of goodwill.

  1. (iv), (i), (ii), (iii)
  2. (i), (iv), (iii), (ii)
  3. (iii), (ii), (i), (iv)
  4. (ii), (iv), (i), (iii)
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) (i), (iv), (iii), (ii)

Q68.2022 Main 67/1/1 · Q32 marks

Ajay, Vijay, Sanjay and Dhananjay are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. Vijay decided to retire from the firm. The Goodwill of the firm was valued at ₹ 12,00,000.

Pass necessary journal entry for the treatment of Goodwill on Vijay's retirement without opening goodwill account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Ajay's Capital A/c ... Dr.
Sanjay's Capital A/c ... Dr.
Dhanjay's Capital A/c ... Dr.
To Vijay's Capital A/c
(Vijay's share of Goodwill adjusted in the capital accounts of Ajay, Sanjay and Dhanjay in gaining ratio)
2,00,000
1,00,000
1,00,000



4,00,000

(½ mark for share of Vijay's Goodwill + 1½ for Journal entry = 2)

Q69.2022 Main 67/2/1 · Q32 marks

Suman, Shubham and Siya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Shubham retired from the firm and Suman and Siya decided to continue the business. Their gaining ratio was 3 : 2. Calculate the new profit sharing ratio of Suman and Siya.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Old Profit Sharing Ratio: Suman 5/10, Shubham 3/10, Siya 2/10

Shubham’s share = 3/10

Gaining ratio of Suman and Siya = 3 : 2

Suman’s gain = 3/5 × 3/10 = 9/50 (½)

Siya’s gain = 2/5 × 3/10 = 6/50 (½)

New share = Old Share + Gain

Suman’s new share = 5/10 + 9/50 = 34/50 (½)

Siya’s new share = 2/10 + 6/50 = 16/50 (½)

New profit sharing ratio of Suman and Siya : 34:16 = 17 : 8

= 2 marks

Q70.2022 Main 67/3/1 · Q22 marks

A, B, C and D were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 3 : 4. On 31.3.2022, C retired from the firm and his share was acquired by A and B in the ratio of 3 : 2.

Calculate the new profit sharing ratio of A, B and D.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

C’s share = 3/10

A’s gain = 3/5 × 3/10 = 9/50

A’s new share = 1/10 + 9/50 = (5 + 9)/50 = 14/50 (½)

B’s gain = 2/5 × 3/10 = 6/50

B’s new share = 2/10 + 6/50 = (10 + 6)/50 = 16/50 (½)

New profit-sharing ratio of A, B and D = 14/50 : 16/50 : 4/10
Or 14/50 : 16/50 : 20/50
Or 14 : 16 : 20
Or 7 : 8 : 10 (1)

= 2 Marks

Q71.2022 Main 67/3/1 · Q32 marks

P, Q and R were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2022 R retired from the firm. On R’s retirement the balance sheet of the firm showed sundry debtors at ₹ 3,75,000. It was decided to write off ₹ 5,000 as bad debts and create a provision of 2½% on debtors for bad and doubtful debts.

Pass necessary journal entries for the above transactions in the books of the firm on R’s retirement.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Books of P, Q and R
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2022
March 31
Bad Debts A/c ... Dr.
To Sundry Debtors A/c
(Bad debts ₹ 5,000 written off on R’s retirement)
5,0005,0001
,, ,,Revaluation A/c ... Dr.
To Bad Debts A/c
(Bad debts written off transferred to revaluation)
5,0005,000½
,, ,,Revaluation A/c ... Dr.
To Provision for bad and doubtful debts
(Created provision for bad and doubtful debts)
9,2509,250½

= 2 Marks

Q72.2022 Main 67/4/1 · Q22 marks

P, Q and R were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 1. On 31st March, 2022, R retired. R surrendered 1/3rd of his share in favour of P and the remaining share in favour of Q. Calculate the new profit sharing ratio of P and Q.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Given ratio of P : Q : R = 3 : 4 : 1

New Share = Old Share + Gain

P’s old share = 3/8
P’s gain = 1/3 of R’s share = 1/3 × 1/8 = 1/24 (½)
P’s new share = 3/8 + 1/24 = 10/24 (½)

Q’s old share = 4/8
Q’s gain = 2/3 of R’s share = 2/3 × 1/8 = 2/24 (½)
Q’s new share = 4/8 + 2/24 = 14/24 (½)

New profit sharing ratio of P : Q = 10 : 14 i.e. 5 : 7

(= 2 marks)

Q73.2022 Main 67/4/1 · Q32 marks

A, B and C were partners in a firm sharing profits and losses in the ratio of 7 : 2 : 1. The firm closes its books on 31st March every year. On 30th June, 2022, A died. A’s share of profit in the year of his death was to be calculated on the basis of the profit of the previous year. The profit of the firm for the year ended 31st March, 2022 was ₹16,00,000. Calculate A’s share of profit in the year of his death.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

A’s share = 7/10 ; A died on 30th June, 2022
Previous year’s profits = ₹16,00,000

A’s share of profits in the year of death = 16,00,000 × 3/12 × 7/10 = ₹2,80,000

(1 mark for correct months + 1 mark for correct profit of A = 2 marks)

Q74.2022 Main 67/5/1 · Q32 marks

Madhu, Manav and Mukul were partners in a firm sharing profits in the ratio of 3:2:1. On 31st March, 2021 Mukul retired from the firm. On Mukul's retirement, goodwill of the firm was valued at ₹3,00,000. Pass necessary Journal entry for the treatment of goodwill without opening goodwill account on Mukul's retirement.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Madhu's Capital A/c ... Dr.
Manav's Capital A/c ... Dr.
To Mukul's Capital A/c
(Being Mukul's share of goodwill adjusted in remaining Partners Capital Accounts in the gaining ratio)
30,000
20,000


50,000

(2 marks)

Working Notes:
Firm's Goodwill = ₹3,00,000
Mukul's Share of goodwill = 3,00,000 × 1/6 = ₹50,000

Q75.2022 Supp. 67/6/1 · Q22 marks

Madhu, Tina and Neha were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31st March, 2022, Tina retired and her share was taken over by Madhu and Neha in the ratio of 2 : 1. Calculate the new profit sharing ratio of Madhu and Neha.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Madhu’s gain = 2/3 × 3/10 = 2/10
Madhu’s new share = Old share + share gained
= 4/10 + 2/10
= 6/10 (½)

Neha’s gain = 1/3 × 3/10 = 1/10
Neha’s new share = Old share + share gained
= 3/10 + 1/10
= 4/10 (½)

New Profit Sharing ratio = 6/10 : 4/10
= 3 : 2 (1)

= 2 marks

Q76.2022 Supp. 67/6/1 · Q32 marks

A, B and C were partners a firm sharing profits and losses in the ratio of 3 : 2 : 1. On 31st March, 2022, B retired from the firm. On B’s retirement the goodwill of the firm was valued at ₹ 1,80,000.

Calculate B’s share of goodwill and pass necessary journal entry for the same without opening goodwill account.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

B’s share of goodwill = ₹1,80,000 × 2/6 = ₹60,000 (1)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2022
Mar 31
A’s Capital A/c ... Dr.
C’s Capital A/c ... Dr.
To B’s Capital A/c
(Being B’s share of goodwill adjusted in remaining partners’ Capital Accounts in the gaining ratio)
45,000
15,000


60,000

(1) = 2 marks

Q77.2026 Main 67/3/1 · Q173 marks

Tara, Meera and Neera were partners in a firm sharing profits and losses equally. Their capitals on 1st April, 2025 were ₹4,00,000; ₹3,00,000 and ₹2,00,000 respectively. The firm closes its books on 31st March every year. Tara died on 30th June, 2025. The partnership deed provides that in the event of death of a partner, her legal representatives will be entitled to the following :

  1. Interest on capital @ 6% p.a.
  2. Her share in the profits of the firm till the date of her death.

Tara had withdrawn ₹8,000 for her treatment till 30th June, 2025 and interest on drawings @ 12% p.a. is to be charged. Her share in the profits of the firm was to be calculated on the basis of last year’s profit. Last year’s profit amounted to ₹1,80,000.

Prepare Tara’s Capital Account to be presented to her legal representatives on her death.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Dr. Tara’s Capital A/c Cr.

DateParticularsAmount (₹)DateParticularsAmount (₹)
2025
June 30
To Drawings A/c (½)
8,000
2025
April 1
By Balance b/d (½)
4,00,000
June 30To Interest on Drawings A/c (½)120June 30By Interest on Capital A/c (½)6,000
June 30To Tara’s Legal Representatives /Executors A/c (½)4,12,880June 30By P&L Suspense A/c (½)15,000
4,21,0004,21,000

(3 Marks)

Q78.2026 Main 67/4/1 · Q173 marks

Aarav, Karan and Meera were partners in a firm sharing profits and losses equally. On 31st March, 2023, Karan retired. On the date of his retirement, ₹ 1,80,000 became due to him. Aarav and Meera agreed to pay Karan in two equal yearly instalments plus interest @ 12% p.a. on unpaid balance, starting from 31st March, 2024. The firm closes its books on 31st March every year.

Prepare Karan’s loan account till it is fully paid.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Aarav, Karan and Meera

Karan’s Loan A/c

Dr.Cr.
DateParticularsAmount (₹)DateParticularsAmount (₹)
2023
March 31
To Balance c/d1,80,0002023
March 31
By Karan’s Capital A/c (½)1,80,000
1,80,0001,80,000
2024
March 31
To Bank/ Cash A/c (½)1,11,6002023
April 1
By Balance b/d1,80,000
March 31To Balance c/d (½)90,0002024
March 31
By Interest A/c (½)21,600
2,01,6002,01,600
2025
March 31
To Bank /Cash A/c (½)1,00,8002024
April 1
By Balance b/d90,000
2025
March 31
By Interest A/c (½)10,800
1,00,8001,00,800

= 3 marks

Q79.2026 Main 67/5/1 · Q173 marks

Namita, Narendra and Kunwar were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. The firm closes its books on 31st March every year. Kunwar died on 30th September, 2025. His share in the profits of the firm from 1st April, 2025 to 30th September, 2025 was calculated as per the provisions of the partnership deed which amounted to ₹15,600. On the date of Kunwar’s death, the Balance Sheet of the firm showed General Reserve of ₹40,000 and Profit and Loss Account (Dr.) ₹80,000.

Pass necessary journal entries on Kunwar’s death in the books of the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Namita, Narendra and Kunwar
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
Sept. 30
Profit and Loss Suspense A/c ……Dr.15,600
To Kunwar’s Capital A/c15,600
(Kunwar’s share in profits transferred to his capital A/c) [1 mark]
,,General Reserve A/c ……Dr.40,000
To Namita’s Capital A/c24,000
To Narendra’s Capital A/c8,000
To Kunwar’s Capital A/c8,000
(General reserve transferred to all partners’ capital A/cs in old ratio) [1 mark]
,,Namita’s Capital A/c ……Dr.48,000
Narendra’s Capital A/c ……Dr.16,000
Kunwar’s Capital A/c ……Dr.16,000
To Profit and Loss A/c80,000
(Dr. balance of profit and loss A/c transferred to all partners in old ratio) [1 mark]

(1 + 1 + 1 = 3 Marks)

Q80.2026 Main 67/5/1 · Q183 marks

Naik, Vinay and Vibhuti were partners in a firm sharing profits and losses in the ratio of 4 : 2 : 3. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Naik, Vinay and Vibhuti as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Patents54,000
Naik1,20,000Land and Building2,07,000
Vinay1,20,000Stock1,08,000
Vibhuti1,20,0003,60,000Debtors81,000
General Reserve45,000Cash at bank54,000
Creditors99,000
5,04,0005,04,000

Naik retired from the firm on the above date on the following terms :

  1. Goodwill of the firm was valued at ₹1,80,000 and the same was to be treated without opening goodwill account.
  2. Revaluation of assets and reassessment of liabilities resulted in a loss of ₹18,000.
  3. Amount payable to Naik was transferred to his loan account.

Pass necessary journal entries for general reserve, revaluation of assets and reassessment of liabilities and goodwill on Naik’s retirement.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Naik, Vinay and Vibhuti
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
March 31
General Reserve A/c ……Dr.45,000
To Naik’s Capital A/c20,000
To Vinay’s Capital A/c10,000
To Vibhuti’s Capital A/c15,000
(General reserve transferred to all partners in old ratio) [1 mark]
,,Naik’s Capital A/c ……Dr.8,000
Vinay’s Capital A/c ……Dr.4,000
Vibhuti’s Capital A/c ……Dr.6,000
To Revaluation A/c18,000
(Loss on revaluation transferred to all partners in old ratio) [1 mark]
,,Vinay’s Capital A/c ……Dr.32,000
Vibhuti’s Capital A/c ……Dr.48,000
To Naik’s Capital A/c80,000
(Adjustment entry made for goodwill) [1 mark]

(1 + 1 + 1 = 3 Marks)

Q81.2026 Main 67/5/1 · Q203 marks

Nandini, Shweta and Hiren were partners in a firm sharing profits and losses in the ratio of 9 : 7 : 4. On 1st April, 2025, Shweta retired. On the date of Shweta’s retirement, there existed a balance of ₹1,00,000 in Workmen’s Compensation Fund.

Pass necessary journal entries for treatment of Workmen’s Compensation Fund on Shweta’s retirement in each of the following cases :

  1. Claim on account of Workmen’s Compensation was estimated at ₹1,20,000.
  2. Claim on account of Workmen’s Compensation was estimated at ₹80,000.
  3. Claim on account of Workmen’s Compensation was estimated at ₹1,00,000.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Nandini, Shweta and Hiren
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025
Apr 1
(i)
Workmen’s Compensation Fund A/c ……Dr.1,00,000
Revaluation A/c ……Dr.20,000
To Provision/Claim for Workmen’s Compensation A/c1,20,000
(Workmen compensation claim estimated at ₹1,20,000) [1 mark]
(ii)
,,
Workmen’s Compensation Fund A/c ……Dr.1,00,000
To Provision/Claim for Workmen’s Compensation A/c80,000
To Nandini’s Capital A/c9,000
To Shweta’s Capital A/c7,000
To Hiren’s Capital A/c4,000
(Workmen compensation claim estimated at ₹80,000 and balance transferred to partners’ capital A/cs) [1 mark]
(iii)
,,
Workmen’s Compensation Fund A/c ……Dr.1,00,000
To Provision/Claim for Workmen’s Compensation A/c1,00,000
(Workmen compensation claim estimated at ₹1,00,000) [1 mark]

(1 + 1 + 1 = 3 Marks)

Q82.2026 Supp. 67/7/1 · Q183 marks

Aadi, Priya and Vicky were partners in a firm, sharing profits and losses in the ratio of 3 : 1 : 1. Priya died on 30th June, 2022. After all the necessary adjustments, her Capital to Account showed a credit balance of ₹ 6,90,000. Priya’s executors were paid ₹ 90,000 cash on 1st July, 2022 and the balance amount to be paid in three equal yearly instalments, starting from 30th June, 2023 with interest @ 6% p.a. on the unpaid amount. The firm closes its books on 31st March every year.

Prepare Priya’s Executor’s Account till 31st March, 2024.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Priya’s Executor’s A/c

DateParticulars (Dr.)Amount (₹)DateParticulars (Cr.)Amount (₹)
2022
Jul 1
To Bank/ Cash A/c90,0002022
Jun 30
By Priya’s Capital A/c6,90,000
2023
Mar 31
To Balance c/d6,27,0002023
Mar 31
By Interest A/c27,000
7,17,0007,17,000
2023
Jun 30
To Bank/ Cash A/c2,36,0002023
Apr 1
By Balance b/d6,27,000
2024
Mar 31
To Balance c/d4,18,000Jun 30By Interest9,000
2024
Mar 31
By Interest18,000
6,54,0006,54,000

(1½ marks for each year’s account: 1½ + 1½ = 3 marks)

Q83.2025 Main 67/1/1 · Q173 marks

Zaina, Yash and Kiran were partners in a firm sharing profits and losses in the ratio 2 : 2 : 1. Zaina died on 1st July, 2024. As per the partnership deed, Zaina's share of profit or loss till the date of her death was to be calculated on the basis of sales.

Sales for the year ended 31st March, 2024 amounted to ₹ 4,00,000 and that from 1st April to 30th June, 2024 was ₹ 1,50,000. The profit for the year ending 31st March, 2024 was calculated as ₹ 1,00,000. The books of accounts are closed on 31st March every year.

Calculate Zaina's share of profit in the firm till the date of her death and pass necessary journal entry for the same.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Zaina, Yash and Kiran — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
July 1
Profit and Loss Suspense A/c ... Dr.
To Zaina's Capital A/c
(Zaina's share of profit transferred to her capital account)
15,000

15,000

(1½ marks)

Calculation of Firm's profits till Zaina's death:

If sale is ₹4,00,000, the profit = ₹1,00,000

If sale is ₹1,50,000, the profit = ₹1,00,000 × ₹1,50,000 / ₹4,00,000 = ₹37,500

Calculation of Zaina's share of profit till death = ₹37,500 × 2/5 = ₹15,000

(1½ marks)

(1½ + 1½ = 3 marks)

(If an examinee has shown correct calculation in any other form, full credit is to be given)

Q84.2025 Main 67/7/1 · Q203 marks

Rani, Manav and Pushpa were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, Rani decided to retire from the firm. On that day, the balance in her capital account after making necessary adjustments on account of reserves, revaluation of assets and reassessment of liabilities was ₹3,08,000. Manav and Pushpa agreed to pay her ₹3,80,000 in full settlement of her claim.

Calculate Rani’s share of goodwill and pass the necessary journal entry for the same.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Calculation of Rani’s share of Goodwill:

(₹)
Amount agreed to be paid in full settlement3,80,000
Less: Rani’s share (after all adjustments)(3,08,000)
72,000

(1 Mark)

In the books of Rani, Manav and Pushpa
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024 April 01Manav’s Capital A/c ... Dr.
Pushpa’s Capital A/c ... Dr.
To Rani’s Capital A/c
(Rani’s share of goodwill adjusted in continuing partners’ capital account in their gaining ratio)
43,200
28,800


72,000

(2 Marks; 1 + 2 = 3 Marks)

Q85.2025 Supp. 67/S/1 · Q18(b)3 marks

A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. Goodwill appeared in their books at ₹ 3,00,000. B retired from the firm on 1st April, 2024. On that date, the goodwill of the firm was valued at ₹ 5,40,000.

Pass the necessary Journal entries in the books of the firm for the treatment of goodwill on B’s retirement.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of A, B and C
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024 Apr 1A’s Capital A/c ... Dr.1,00,000
B’s Capital A/c ... Dr.1,50,000
C’s Capital A/c ... Dr.50,000
    To Goodwill A/c3,00,000
(Goodwill written off amongst old partners in the old ratio) [1½ marks]
”A’s Capital A/c ... Dr.1,80,000
C’s Capital A/c ... Dr.90,000
    To B’s Capital A/c2,70,000
(B’s share of goodwill adjusted in the capital accounts of A & B in the gaining ratio) [1½ marks]

1½ + 1½ = 3 marks

Q86.2025 Supp. 67/S/1 · Q203 marks

Lalit, Madhur and Neel were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Neel retired and his capital after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 10,00,000. Lalit and Madhur agreed to pay Neel ₹ 22,00,000 in full settlement of his claim.

Pass necessary journal entries for the treatment of goodwill and making final payment to Neel.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Lalit, Madhur and Neel
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Lalit’s Capital A/c ... Dr.6,00,000
Madhur’s Capital A/c ... Dr.6,00,000
    To Neel’s Capital A/c12,00,000
(Neel’s share of goodwill adjusted in the capital accounts of Lalit and Madhur in the gaining ratio) [1½ marks]
Neel’s Capital A/c ... Dr.22,00,000
    To Bank A/c / Cash A/c22,00,000
(Neel paid in full settlement of his claim) [1½ marks]

Note- No Marks for working note

Working Note:
1. Hidden Goodwill = ₹22,00,000 − ₹10,00,000 = ₹12,00,000
2. Gaining Ratio of Lalit and Madhur = 1:1

1½ + 1½ = 3 marks

Q87.2024 Main 67/1/1 · Q173 marks

Aamir, Bashir and Chirag were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. Chirag retired. Aamir and Bashir decided to share profits and losses in future in the ratio of 1 : 2. On the day of Chirag’s retirement, goodwill of the firm was valued at ₹5,40,000.

Calculate gaining ratio and pass necessary journal entry to record the treatment of goodwill (without opening goodwill account) on Chirag’s retirement.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Gain = New share – Old Share (½)
Aamir’s Gain = 1/3 – 3/8 = –1/24 (sacrifice)
Bashir’s Gain = 2/3 – 3/8 = 7/24 (gain) (½)

In the books of Aamir, Bashir and Chirag
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bashir’s Capital A/c ... Dr.
  To Aamir’s Capital A/c
  To Chirag’s Capital A/c
(Goodwill treated on Chirag’s retirement without opening Goodwill account)
1,57,500
22,500
1,35,000

(2)

= 3 marks

Q88.2024 Main 67/2/1 · Q17(a)3 marks

Prateek, Charu and Sirima were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Prateek retired from the firm on 31st March, 2023. Charu and Sirima decided that the capital of the new firm will be ₹ 6,30,000. The capital accounts of Charu and Sirima after all adjustments on the date of retirement showed a credit balance of ₹ 4,35,000 and ₹ 1,89,000 respectively. Calculate the amount of actual cash to be brought into the firm or to be paid to the partners. Also pass necessary journal entries.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Calculation of amount of cash to be brought into the firm or to be paid to the partners: [1]

CharuSirima
New capital (₹6,30,000 in new ratio 2:1)2/3 × 6,30,000 = ₹4,20,0001/3 × 6,30,000 = ₹2,10,000
Adjusted capital₹4,35,000₹1,89,000
Paid ₹15,000Brought ₹21,000

Books of Prateek, Charu and Sirima — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2023
March 31
Cash A/c Dr.
To Sirima’s Capital A/c
(Cash brought in by Sirima on retirement of Prateek) [1]
21,000

21,000
2023
March 31
Charu’s Capital A/c Dr.
To Cash A/c
(Cash paid to Charu on retirement of Prateek) [1]
15,000

15,000

= 3 marks

Q89.2024 Main 67/3/1 · Q173 marks

Aaria, Beenu and Clara were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 30th June, 2023, Clara died. Clara’s share in the profits of the firm till the date of death was to be calculated on the basis of sales. Sales during the year 2022 – 23 were ₹ 20,00,000 and sales from 1st April, 2023 to 30th June, 2023 were ₹ 4,00,000. The profit for the year ended 31st March, 2023 was ₹ 5,00,000. Calculate Clara’s share of profit up to the date of death and pass the necessary journal entry for the same in the books of the firm. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2023
June 30
Profit and Loss Suspense A/c Dr.
To Clara’s Capital A/c
(Clara’s share of profit till date of her death credited to her capital account.)
30,000
30,000
(1½)

Clara’s share of profit = Last Year Profit × Sales in Current Year up to Death ÷ Last Year Sales × Clara’s profit share

= 5,00,000 × 4,00,000 / 20,00,000 × 3/10 (1½)

= ₹ 30,000

Note: If an examinee has calculated Clara’s share of profit upto the date of death in any other way, full credit is to be given.

= 3 marks

Q90.2024 Main 67/4/1 · Q19(b)3 marks

Varun, Tarun, Arun and Barun were partners in a firm sharing profits in the ratio of 5:3:2:2. Arun retired on 31st March, 2023. Varun, Tarun and Barun decided to share future profits equally. On Arun’s retirement, Goodwill of the firm was valued at ₹ 9,00,000. Showing your workings clearly, pass the necessary Journal entry for treatment of Goodwill on Arun’s retirement without opening goodwill account.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Varun, Tarun, Arun and Barun
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2023
March 31
Tarun’s Capital A/c ... Dr
Barun’s Capital A/c ... Dr
To Varun’s Capital A/c
To Arun’s Capital A/c
(Share of goodwill adjusted to capital accounts of partners in their gaining ratio 1:2) (1½)
75,000
1,50,000


75,000
1,50,000

Working Notes:
Calculation of Gaining Share:-
Gaining Share = New Share - Old Share
Varun’s Gain = 1/3 - 5/12 = -1/12 (Sacrifice)
Tarun’s Gain = 1/3 - 3/12 = 1/12
Barun’s Gain = 1/3 - 2/12 = 2/12 (1½)

(= 3 Marks)

Q91.2024 Main 67/5/1 · Q18(b)3 marks

Ravi, Guru, Mani and Sonu were partners in a firm sharing profits in the ratio of the 2 : 2 : 2 : 1. On 31st January, 2023, Sonu retired. On Sonu's retirement the Goodwill of the firm was valued at ₹ 1,40,000. The new profit sharing ratio among Ravi, Guru and Mani was agreed as 5 : 1 : 1. Showing your workings clearly, pass necessary Journal entry for the treatment of Goodwill in the books of the firm on Sonu's retirement without opening goodwill account.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Ravi, Guru, Mani and Sonu
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2023
Jan.31
Ravi’s Capital A/c Dr.60,0002
To Sonu’s Capital A/c20,000
To Guru’s Capital A/c20,000
To Mani’s Capital A/c20,000
(Ravi compensated Sonu for his share of goodwill and to Guru and Mani for the sacrifice made by them on Sonu’s retirement)

Working Notes:

(ii) Calculation of gaining share: (1 mark)
Gaining share = New share − Old share
Ravi: 5/7 − 2/7 = 3/7 (gain)
Guru: 1/7 − 2/7 = −1/7 (sacrifice)
Mani: 1/7 − 2/7 = −1/7 (sacrifice)

(= 3 marks)

Q92.2024 Supp. 67/S/1 · Q173 marks

Gita, Hina and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. Gita died. Hina and Isha decided to share profits and losses in the future, equally. On the day of Gita’s death, goodwill of the firm was valued at ₹ 8,00,000. Calculate gaining ratio and pass necessary journal entry to record treatment of goodwill on Gita’s death.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Gaining share = New Share - Old Share……½

Hina’s gaining share
1/2 - 3/8 = 1/8 ………..……… ½

Isha’s gaining share
1/2 - 2/8 = 2/8 …………….….. ½

Gaining ratio is 1:2 (1½ marks)

Books of Gita, Hina and Isha
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Hina’s Capital A/c Dr.
Isha’s Capital A/c Dr.
    To Gita’s Capital A/c
(Gita’s share of goodwill adjusted to capital accounts of Hina and Isha in their gaining ratio)
1,00,000
2,00,000


3,00,000
1½

=3 Marks

Q93.2023 Main 67/1/1 · Q173 marks

Suman, Vivek and Vinod were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Suman retired on 1st April, 2022. After making all adjustments relating to revaluation, goodwill and accumulated profits, etc., the capital accounts of Vivek and Vinod showed credit balances of ₹ 3,60,000 and ₹ 1,40,000 respectively.

It was decided to adjust the capitals of Vivek and Vinod in their new profit sharing ratio. Pass necessary journal entries for bringing in or withdrawal of the necessary amounts. Show your working clearly.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1
Vivek (₹)Vinod (₹)Marks
Capital after adjustments3,60,0001,40,0001
New Capital3,00,0002,00,000
60,000
To be withdrawn
60,000
To be brought in

Books of Suman, Vivek and Vinod — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2022
April 1
Cash/Bank A/c Dr.60,0001
    To Vinod’s Capital A/c60,000
(Amount brought in by Vinod)
,,Vivek’s Capital A/c Dr.60,0001
    To Cash/Bank A/c60,000
(Amount withdrawn by Vivek)

(1 + 1 + 1 = 3 marks)

Q94.2023 Main 67/2/1 · Q193 marks

Vibha, Sudha and Ashish were partners in a firm sharing profits in the ratio 2:3:1. Sudha retired and the balance in her capital account after making necessary adjustments on account of reserves, revaluation of assets and re-assessment of liabilities was ₹85,000. Vibha and Ashish agreed to pay Sudha ₹1,15,000 in full settlement of her claim. Record the necessary journal entry for goodwill on Sudha's retirement.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Vibha, Sudha and Ashish
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Vibha's Capital A/c Dr
Ashish's Capital A/c Dr
To Sudha's Capital A/c
(Sudha's share of goodwill adjusted to capital account of Vibha and Ashish in their gaining ratio 2:1)
20,000
10,000


30,000

Note- No marks to be deducted for not showing calculation of Gaining Ratio.

(3 Marks)

Q95.2023 Main 67/3/1 · Q173 marks

Kanak, Kamal and Kanha are partners in a firm. Their fixed capitals were ₹ 5,00,000, ₹ 10,00,000 and ₹ 15,00,000 respectively. They share profits in the ratio of their fixed capitals. Firm closes its books of accounts on 31st March every year. Kanak died on 30th September, 2021. Kanak’s share of profit till the date of death from the last Balance Sheet date, was to be calculated on the basis of sales. Sales and Profit for the year 2020 – 21 were ₹ 20,00,000 and ₹ 2,00,000 respectively. Sales from 1st April, 2021 to 30th September, 2021 were ₹ 6,00,000.

  1. Calculate Kanak’s share of profit.
  2. Pass necessary journal entry to record Kanak’s share of profit.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(i) Calculation of Kanak’s share of profit:

Profit for 6 months = 6,00,000 × 2,00,000/20,00,000 × 1/6
= ₹ 10,000 (2)

Books of Kanak, Kamal and Kanha — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
Sep 30
Profit & Loss Suspense A/c ... Dr.
  To Kanak’s Current A/c
(Kanak’s share of profit till date of death) (1)
10,000
10,000

= 3 marks

Q96.2023 Main 67/5/1 · Q19(a)3 marks

Tarun, Abhishek, Kamal and Vivek were partners in a firm sharing profits in the ratio of 5 : 3 : 2 : 2. Kamal retired on 31st March, 2022. Tarun, Abhishek and Vivek decided to share future profits equally. On Kamal’s retirement goodwill of the firm was valued at ₹ 9,00,000. Showing your working clearly, pass the necessary journal entry for treatment of goodwill on Kamal’s retirement. It was decided not to show goodwill in the books of the firm.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Tarun, Abhishek, Kamal and Vivek

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2022
March 31
Abhishek’s Capital A/c Dr.75,000
Vivek’s Capital A/c Dr.1,50,000
To Kamal’s Capital A/c1,50,000
To Tarun’s Capital A/c75,000
(adjustment for goodwill in gaining ratio on Kamal’s retirement)

(1½ marks)

Working

Old Ratio – Tarun : Abhishek : Kamal : Vivek = 5:3:2:2
New Ratio – Tarun : Abhishek : Vivek = 1:1:1

Gaining Share of Tarun = New Share – Old Share = 1/3 – 5/12 = (-) 1/12 {sacrifice}
Gaining Share of Abhishek = New Share – Old Share = 1/3 – 3/12 = 1/12 {gain}
Gaining Share of Vivek = New Share – Old Share = 1/3 – 2/12 = 2/12 {gain}

Kamal’s share of Goodwill = 2/12 × 9,00,000 = ₹1,50,000

(1½ marks)

(1½ + 1½ = 3 marks)

Q97.2023 Supp. 67/C/1 · Q20(a)3 marks

Nisha, Priya and Rajat were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. Priya died on 1st July 2022. On Priya’s death, the goodwill of the firm was valued at ₹ 3,00,000 and her share in the profits of the firm till the time of her death was to be calculated on the basis of previous year’s profit which was ₹ 6,00,000.

Pass necessary journal entries for the treatment of goodwill and Priya’s share of profit at the time of her death.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of Nisha, Priya and Rajat

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2022
July 1
Nisha’s Capital A/c80,000
Rajat’s Capital A/c40,000
To Priya’s Capital A/c1,20,000
(Being Priya’s share of goodwill adjusted into the accounts of Nisha and Rajat) [1½]
”Profit & Loss Suspense A/c Dr.60,000
To Priya’s Capital A/c60,000
(Being Priya’s share of profit till the time of her death credited to her capital A/c) [1½]

= 3 marks

Q98.2022 Main 67/1/1 · Q53 marks

Vimal, Kamal and Nirmal were partners sharing profit & losses in the ratio of 3 : 2 : 1. Vimal died on 30th September, 2020. The partnership deed provides that the share of profit of the deceased partner till the date of his death was to be calculated on the basis of the average profits of the last three years. The profit for the last three years were : 2017-18 ₹ 70,000; 2018-19 ₹ 80,000; 2019-20 ₹ (60,000).

Calculate Vimal's share of profit till the date of his death and pass necessary journal entry for the same.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Calculation of Vimal's share of Profit

Average profits = (₹ 70,000 + ₹80,000 - ₹60,000) / 3
= ₹ 90,000/3 = ₹30,000

Profit for 6 months = ₹ 30,000 / 2 = ₹ 15,000
Vimal's share = ₹ 15,000 × 3/6 = ₹ 7,500 (1½)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
P & L Suspense A/c ... Dr.
To Vimal's Capital A/c
(Vimal's share of estimated profits till date of his death credited to his capital account)
7,500
7,500

(1½) = 3

Q99.2022 Main 67/2/1 · Q53 marks

Ramesh, Rajesh and Raman are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 30th June, 2021, Ramesh died. Sales for the year ended 31st March, 2021 were ₹ 12,00,000 and profits were ₹ 1,20,000. The sales for the period from 1st April, 2021 to 30th June, 2021 amounted to ₹ 4,00,000. Accounts are closed on 31st March every year. Calculate Ramesh’s share of profit till the date of his death and pass the necessary journal entry for the same in the books of the firm.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Sales for 2020–21 ₹ 12,00,000
Profit for 2020-21 ₹ 1,20,000
Sales for 3 months = ₹ 4,00,000

Profit for 3 months = 4,00,000/12,00,000 × 1,20,000 = ₹ 40,000

Or

Rate of profit = 1,20,000/12,00,000 × 100 = 10%
Profit for 3 months = 10% of 4,00,000 = ₹ 40,000

Ramesh’s share of profit = 2/5 × ₹ 40,000 = ₹ 16,000 (2)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021 June 30Profit & Loss Suspense A/c16,000
To Ramesh’s capital A/c16,000
(Ramesh’s share of profit till date of his death transferred to his capital A/c)

(1) = 3 marks

Q100.2022 Main 67/3/1 · Q53 marks

X, Y and Z were partners in a firm. The firm closes its books on 31st March every year. On 31st December 2021, X died. The partnership deed provided that the share of deceased partner in the profits of the firm till the date of his death will be calculated on the basis of last year’s profit. The profit for the year ended 31.3.2021 was ₹ 6,00,000.

Calculate X’s share in the profits of the firm till the date of his death and pass the necessary journal entry for the same in the books of the firm.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Firm’s profit for 9 months = ₹ 6,00,000 × 9/12 = ₹ 4,50,000

X’s share in the profits till the date of his death = 1/3 × 4,50,000 = ₹ 1,50,000 (1½)

If number of months are correct, 1 mark should be awarded.

Journal

DateParticularsDr (₹)Cr (₹)Marks
2021
December 31
Profit and Loss Suspense A/c ... Dr.
To X’s Capital A/c
(X’s share in the profits till the date of his death transferred to his Capital A/c)
1,50,0001,50,0001½

= 3 Marks

Q101.2022 Main 67/4/1 · Q53 marks

Mohan, Girdhari and Shyam were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. On 31st March, 2022, Girdhari retired. After making all adjustments on account of reserves, revaluation of assets and reassessment of liabilities, the balance in Girdhari’s Capital Account stood at ₹5,00,000. Mohan and Shyam agreed to pay Girdhari ₹5,90,000 in full settlement of his claim.

Calculate the value of goodwill of the firm and pass the necessary journal entry for the treatment of goodwill on Girdhari’s retirement without raising goodwill account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

(i) Amount agreed to be paid to Girdhari = 5,90,000
Less : Balance of his capital A/c = 5,00,000
Girdhari’s share of Goodwill (3/9) = 90,000
Goodwill of the firm = 90,000 × 9/3 = ₹2,70,000 (1½)

(ii) Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2022 March 31Mohan’s Capital A/c ……Dr.60,000
Shyam’s Capital A/c ……Dr.30,000
To Girdhari’s capital A/c90,000
(Girdhari’s share of goodwill adjusted to remaining partners’ capital accounts in gaining ratio) (1½)

(= 3 marks)

Q102.2022 Main 67/5/1 · Q53 marks

Puneet, Purav and Parth were partners in a firm sharing profits and losses in the ratio of 4:3:1. The firm closes its books on 31st March every year. As per the terms of partnership deed, on the death of any partner, the Goodwill of the firm will be calculated on the basis of 3 times the average profits of last 4 years. Puneet died on 1st July, 2021. The profits for last four years were :

YearProfit (₹)
2017-1890,000
2018-191,00,000
2019-201,30,000
2020-2180,000

Puneet's share of profit upto the date of death was to be calculated on the basis of previous year's profit.

  1. Calculate goodwill of the firm and Puneet's share of goodwill.
  2. Calculate Puneet's share in the profits of the firm till the date of his death.
  3. Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Puneet's share of profit at the time of his death.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

(i) Calculation of goodwill of the firm and Puneet's share of goodwill

Average of last 4 years profits = (₹90,000 + ₹1,00,000 + ₹1,30,000 + ₹80,000) / 4 = ₹1,00,000
Goodwill = 3 × ₹1,00,000 = ₹3,00,000
Puneet's share of Goodwill = 4/8 × ₹3,00,000 = ₹1,50,000 (½)

(ii) Calculation of Puneet's share in the profits of the firm

Puneet's share of profit = ₹80,000 × 3/12 × 4/8 = ₹10,000 (½)

(iii)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
July 1
P & L Suspense A/c ... Dr.
To Puneet's Capital A/c
(Being Puneet's share of profit transferred to his capital account) (1)
10,000

10,000
Purav's Capital A/c ... Dr.
Parth's Capital A/c ... Dr.
To Puneet's Capital A/c
(Being Goodwill adjusted through Capital Account in the gaining ratio) (1)
1,12,500
37,500


1,50,000

(= 3 marks)

Q103.2022 Supp. 67/6/1 · Q53 marks

P, Q and R were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. The firm closes its books on 31st March every year. Q died on 30th November, 2021. The partnership deed provided that a deceased partner’s share in the profits of the firm in the year of his death will be calculated on the basis of the last year’s profit. During the year ended 31st March, 2021 the firm’s profit was ₹ 9,00,000.

Calculate Q’s share of profit till the date of his death and pass necessary journal entry on the same date in the books of the firm.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Calculation of Q’s share in the profits of the firm

Q’s share of profit = ₹ 9,00,000 × 8/24 × 8/12
= ₹ 2,00,000 (1)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
Nov 30
Profit & Loss Suspense A/c ... Dr.
To Q’s Capital A/c
(Being Q’s share of profit transferred to his capital account)
2,00,000
2,00,000

(2) = 3 marks

Q104.2026 Main 67/1/1 · Q224 marks

Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. As per the terms of the partnership deed, on the death of any partner, the goodwill of the firm will be calculated on the basis of four times the average profits of the last three years. Hina died on 1st July 2025. The Profits for the last three years were :

2022-23₹4,75,000
2023-24₹4,05,000
2024-25₹3,20,000

Hina’s share of profit upto the date of death was to be calculated on the basis of previous year’s profit.

  1. Calculate goodwill of the firm and Hina’s share of goodwill.
  2. Calculate Hina’s share in the profits of the firm till the date of her death.
  3. Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Hina’s share of profit at the time of her death.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i) Goodwill = Average profits × Number of years purchase

Average Profits = Total profits / Number of years
= (₹4,75,000 + ₹4,05,000 + ₹3,20,000)/3
= ₹12,00,000/3
= ₹4,00,000

Goodwill of the firm = ₹4,00,000 × 4 = ₹16,00,000 ……… ½

Hina’s share of goodwill = 2/10 × ₹16,00,000 = ₹3,20,000 ……… ½

(ii) Hina’s share of profits till the date of death = 2/10 × ₹3,20,000 × 3/12 = ₹16,000 ……… 1

(iii)

Books of Kiran, Raveena and Hina
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2025 July 1Kiran’s Capital A/c ……Dr.2,00,000
Raveena’s Capital A/c ……Dr.1,20,000
To Hina’s Capital A/c3,20,000
(Hina’s share of goodwill adjusted in the capital accounts of Kiran and Raveena in the gaining ratio) [1 mark]
”Profit and Loss Suspense A/c ……Dr.16,000
To Hina’s Capital A/c16,000
(Hina’s share of profit till the date of her death credited to her capital account) [1 mark]
Q105.2026 Main 67/4/1 · Q224 marks

Anmol, Kapeesh and Meera were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. The firm closes its books on 31st March every year. On 1st July, 2025, Kapeesh died. On that date his capital account showed a credit balance of ₹ 2,50,000 and he had withdrawn ₹ 20,000 till that date for personal use. On the date of Kapeesh’s death, the firm had a General Reserve of ₹ 90,000. The partnership deed provided that on the death of a partner, his executors will be entitled to the following :

  1. Balance in the capital account and interest on the same @ 12% p.a.
  2. His share in the goodwill of the firm. The goodwill of the firm on Kapeesh’s death was valued at ₹ 1,40,000.
  3. His share in the profits of the firm was to be calculated on the basis of previous year’s profit. The profit of the firm for the year ended 31st March, 2025 was ₹ 6,00,000.

Prepare Kapeesh’s Capital Account to be presented to his executors.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Anmol, Kapeesh and Meera

Kapeesh’s Capital A/c

Dr.Cr.
DateParticularsAmount (₹)DateParticularsAmount (₹)
2025
July 1
To Drawings A/c (½)20,0002025
Apr 1
By Balance b/d (½)2,50,000
July 1To Kapeesh’s Executors A/c (½)3,51,500July 1By General Reserve A/c (½)27,000
July 1By Interest on Capital A/c (½)7,500
July 1By P & L Suspense A/c (share of profit) (½)45,000
July 1By Anmol’s Capital A/c (½)24,000
July 1By Meera’s Capital A/c (½)18,000
3,71,5003,71,500

= 4 Marks

Q106.2025 Main 67/1/1 · Q224 marks

Raja, Bharat and Vedika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as on 31st March, 2024 was as follows :

Balance Sheet of Raja, Bharat and Vedika as on 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors80,000Bank15,000
General Reserve50,000Stock70,000
Capitals :Debtors85,000
Raja 1,10,000Furniture1,20,000
Bharat 1,00,000Machinery1,40,000
Vedika 90,0003,00,000
4,30,0004,30,000

Vedika died on 31st July, 2024. According to the partnership deed, her legal representatives are entitled to the following :

  1. Balance in her capital account
  2. Interest on capital @ 8% p.a.
  3. Her share in the profit upto the date of death to be calculated on the basis of last year's profit. Vedika's share of profit was ₹ 3,000.
  4. Her share of goodwill calculated on the basis of two years purchase of average profits of last three years. The average profit of last three years was ₹ 40,000. Vedika's drawings upto the date of death were ₹ 12,000.

Prepare Vedika's Capital Account to be rendered to her executors.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Raja, Bharat and Vedika

Vedika's Capital A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Drawings A/c12,000By Balance b/d90,000
To Vedika's Executors A/c1,09,400By General Reserve A/c10,000
By Interest on Capital A/c2,400
By P& L Suspense A/c3,000
By Raja's Capital A/c8,000
By Bharat's Capital A/c8,000
1,21,4001,21,400

(½ × 8 = 4 marks)

Q107.2025 Main 67/2/1 · Q224 marks

Simar, Tanvi and Umara were partners in a firm sharing profits and losses in the ratio of 5 : 6 : 9. On 31st March, 2024 their Balance Sheet was as follows :

Balance sheet of Simar, Tanvi and Umara as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Fixed Assets25,00,000
Simar 13,00,000Stock10,00,000
Tanvi 12,00,000Debtors8,00,000
Umara 14,00,00039,00,000Cash7,00,000
General Reserve7,00,000Profit and Loss Account (2023-24)2,00,000
Trade Payables6,00,000
52,00,00052,00,000

Umara died on 30th June, 2024. The partnership deed provided for the following on the death of a partner :

  1. Goodwill of the firm be valued at 3 years purchase of average profits for the last 5 years. The profit/loss for the previous four years were :
    2022-23 : ₹ 3,10,000 (loss)   2021-22 : ₹ 3,00,000 (profit)
    2020-21 : ₹ 4,00,000 (profit)   2019-20 : ₹ 2,50,000 (profit)
  2. Umara's share of profit or loss till the date of her death was to be calculated on the basis of profit or loss for the year ended 31st March 2024.
    1. Calculate Goodwill of the firm.
    2. Pass the necessary journal entry for the treatment of goodwill on Umara's death.
    3. Calculate Umara's share in the profit or loss of the firm till the date of her death.
    4. Pass the necessary journal entry to record Umara's share of profit or loss till the date of her death.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(a)

Goodwill = Average Profits x Number of years purchase
Average Profits = [₹2,50,000 + ₹4,00,000 + ₹3,00,000 + (₹3,10,000) + (₹2,00,000)]/ 5
⇒ Average Profits = ₹4,40,000/5
⇒ Average Profits = ₹88,000
Goodwill = ₹88,000 x 3
⇒ Goodwill = ₹2,64,000 (1 mark)

(b)

Books of Simar, Tanvi and Umara
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Jun 30
Simar's Capital A/c Dr.54,000
Tanvi's Capital A/c Dr.64,800
    To Umara's Capital A/c1,18,800
(Umara's share of goodwill debited to Simar and Tanvi in gaining ratio)

(1 mark)

(c)

Umara's share of loss till the date of her death = ₹2,00,000 x 3/12 x 9/20
= ₹22,500 (1 mark)

(d)

Books of Simar, Tanvi and Umara
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Jun 30
Umara's Capital A/c Dr.22,500
    To Profit and Loss Suspense A/c22,500
(Umara's share of loss upto the date of her death debited to her Capital Account)

(1 mark; total = 4 marks)

Q108.2025 Main 67/4/1 · Q224 marks

Gopal, Heera and Iqbal were partners in a firm sharing profits and losses equally. Iqbal died on 1st April, 2022. Final dues payable to Iqbal’s executor as on the date of death amounted to ₹ 4,00,000. Starting from 31st March, 2023, the executor was to be paid in two equal annual instalments of ₹ 2,00,000 each, with interest @ 10% per annum. Accounts are closed on 31st March every year.

Prepare Iqbal’s executor’s account till he is finally paid.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Iqbal’s Executor’s Account

Dr. DateParticulars₹DateParticularsCr. ₹
2023
March 31
”
To Bank A/c (½)
To balance c/d (½)
2,40,000
2,00,000
2022
April 1
2023
March 31
By Iqbal’s Capital A/c (1)


By Interest A/c (½)
4,00,000


40,000
4,40,0004,40,000
2024
March 31
To Bank A/c (½)2,20,0002023
April 1
2024
March 31
By balance b/d (½)


By Interest A/c (½)
2,00,000


20,000
2,20,0002,20,000

= 4 marks

Q109.2025 Main 67/5/1 · Q214 marks

Sudha, Sudama and Sulochna were partners in a firm sharing profits equally. On 31st March, 2020, Sudha retired. On the date of retirement ₹ 2,40,000 became due to her. Sudama and Sulochana agreed to pay Sudha in four equal yearly instalments plus interest @ 10% p.a. on the unpaid balance starting from 31st March, 2021. The firm closes its books on 31st March every year.

Prepare Sudha’s loan account till it is fully paid.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Sudha’s Loan A/c

Dr.Cr.
DateParticularsAmount (₹)DateParticularsAmount (₹)
2020
March 31
To Balance c/d2,40,0002020
March 31
By Sudha’s Capital A/c2,40,000
2,40,0002,40,000
2021
March 31
To Bank A/c84,0002020
April 1
By Balance b/d2,40,000
March 31To Balance c/d1,80,0002021
March 31
By Interest A/c24,000
2,64,0002,64,000
2022
March 31
To Bank A/c78,0002021
April 1
By Balance b/d1,80,000
March 31To Balance c/d1,20,0002022
March 31
By Interest A/c18,000
1,98,0001,98,000
2023
March 31
To Bank A/c72,0002022
April 1
By Balance b/d1,20,000
March 31To Balance c/d60,0002023
March 31
By Interest A/c12,000
1,32,0001,32,000
2024
March 31
To Bank A/c66,0002023
April 1
By Balance b/d60,000
2024
March 31
By Interest A/c6,000
66,00066,000

(½ + 1 + 1 + 1 + ½ = 4 marks)

Q110.2025 Main 67/6/1 · Q224 marks

Chandni, Bhanu and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. On 1st October, 2024, Chandni died. On that date her capital account showed a credit balance of ₹3,00,000. On the date of Chandni's death, the firm had a general reserve of ₹60,000. The partnership deed provided that on the death of a partner, her representatives will be entitled to the following :

  1. Balance in the capital account and interest on the same @ 10% p.a.
  2. Her share in the goodwill of the firm. The goodwill of the firm on Chandni's death was valued at ₹1,20,000.
  3. Her share in the profits of the firm to be calculated on the basis of the previous year's profit. The profit of the firm for the year ended 31st March, 2024 was ₹4,50,000.

Prepare Chandni's Capital Account to be presented to her executors.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Chandni, Bhanu and Garima
Chandni's Capital A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Chandni's Executor's A/c (½)5,17,500By Balance b/d (½)3,00,000
By General Reserve A/c (½)30,000
By Interest on capital A/c (½)15,000
By Bhanu's capital A/c (½)36,000
By Garima's capital A/c (½)24,000
By Profit and Loss Suspense A/c (1)1,12,500
5,17,5005,17,500

(4 marks)

Q111.2025 Main 67/7/1 · Q224 marks

Hans, Sohan and Kishore were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. On 1st August, 2024, Kishore died. The partnership deed provided that on the death of a partner, his executors will be entitled for :

  1. Balance in his capital account less drawings.
  2. Interest on capital @ 12% p.a.
  3. His share of goodwill.
  4. His share in the profits of the firm till the date of his death calculated on the basis of average profit of the previous four years.

The following information was obtained from the books of the firm on the date of Kishore’s death :

  1. Balance in his capital account on 1st April, 2024 was ₹4,00,000 and he had withdrawn ₹90,000 till that date for his treatment.
  2. Goodwill of the firm on Kishore’s death was valued at ₹60,000.
  3. Profits of the firm for the last four completed years were : ₹2,00,000, ₹2,20,000, ₹1,20,000 and ₹1,80,000.

Prepare Kishore’s capital account to be presented to his executors.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Kishore’s Capital A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Drawings A/c90,000By Balance b/d4,00,000
To Kishore’s Executor’s A/c … 13,46,000By Interest on Capital A/c … 116,000
By Hans’s Capital A/c … ½6,000
By Sohan’s Capital A/c … ½4,000
By Profit & Loss Suspense A/c … 110,000
4,36,0004,36,000

(4 Marks)

Q112.2025 Supp. 67/S/1 · Q224 marks

Adayant, Shifa and Rohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows :

Balance Sheet of Adayant, Shifa and Rohan as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Building4,10,000
Adayant4,00,000Investments1,32,500
Shifa1,20,000Stock17,500
Rohan1,80,0007,00,000Debtors63,000
General Reserve1,20,000Cash at Bank1,37,000
Bills Payable1,40,000Cash at Hand3,20,000
Creditors1,20,000
10,80,00010,80,000

Shifa died on 30th June, 2024. As per the partnership deed, the executors of Shifa were entitled to :

  1. Amount standing to the credit of her capital account.
  2. Interest on capital which was ₹ 5,750.
  3. Her share of goodwill which was ₹ 42,000.
  4. Her share in the profits of the firm from the date of the last Balance Sheet up to the date of death which amounted to ₹ 76,250.
  5. Shifa’s executors were paid half of the payable amount immediately and the balance amount was to be paid in two equal yearly instalments along with interest 8% p.a.

Pass necessary journal entries for the above transactions on Shifa’s death.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Adayant, Shifa and Rohan
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024 Jun 30General Reserve A/c ... Dr.1,20,000
    To Adayant’s Capital A/c48,000
    To Shifa’s Capital A/c24,000
    To Rohan’s Capital A/c48,000
(General reserve credited to Partners’ Capital Accounts) [½ mark]
Note- If an examinee has passed journal entry only for the deceased partner’s share in General Reserve, full credit is to be given.
Interest on Capital A/c ... Dr.5,750
    To Shifa’s Capital A/c5,750
(Interest on capital credited to Shifa’s Capital Account) [½ mark]
Adayant’s Capital A/c ... Dr.21,000
Rohan’s Capital A/c ... Dr.21,000
    To Shifa’s Capital A/c42,000
(Shifa’s share of goodwill adjusted in the capital accounts of Adayant and Rohan in the gaining ratio) [1 mark]
Profit and Loss Suspense A/c ... Dr.76,250
    To Shifa’s Capital A/c76,250
(Share of profit till the date of death credited to Shifa’s capital account) [½ mark]
Shifa’s Capital A/c ... Dr.2,68,000
    To Shifa’s Executors A/c2,68,000
(Shifa’s capital account transferred to her executors account) [½ mark]
Shifa’s Executors’ A/c ... Dr.1,34,000
    To Bank A/c / Cash A/c1,34,000
(Shifa’s executors were paid half of the payable amount immediately) [1 mark]
Note- In case examinee has passed the following entry instead of above entry, full credit is to be given.
Shifa’s Executor’s A/c ... Dr.2,68,000
    To Bank A/c / Cash A/c1,34,000
    To Shifa’s Executor’s Loan A/c1,34,000
(Shifa’s executors were paid half of the payable amount immediately)

= 4 marks

Q113.2024 Main 67/2/1 · Q214 marks

Aditi, Renu and Varsha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 5. On 31st March, 2023 their Balance Sheet was as under :

Balance Sheet of Aditi, Renu and Varsha as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
Aditi 5,00,000
Renu 4,00,000
Varsha 3,00,000
12,00,000Buildings
Machinery
Stock
Patents
6,00,000
3,00,000
1,00,000
1,50,000
General Reserve1,00,000Debtors2,50,000
Creditors2,00,000Cash1,00,000
15,00,00015,00,000

Varsha died on 31st July, 2023. The partnership deed provided for the following, on the death of a partner :

  1. Interest on capital was to be provided @ 6% p.a.
  2. Goodwill of the firm was to be valued at 3 years purchase of average profits of the previous five years which were ₹ 90,000.
  3. Varsha’s share of profit or loss till the date of death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2023 amounted to ₹ 60,00,000 and that from 1st April, 2023 to 31st July, 2023 amounted to ₹ 15,00,000. The profit for the year ended 31st March, 2023 was ₹ 12,00,000.

Prepare Varsha’s Capital Account to be rendered to her executors.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Aditi, Renu and Varsha

Dr. Varsha’s Capital A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Varsha’s Executor’s A/c (½)6,41,000By Balance b/d (½)
By General Reserve A/c (½)
By Aditi’s Capital A/c (½)
By Renu’s Capital A/c (½)
By Interest on Capital A/c (½)
By Profit & Loss Suspense A/c (1)
3,00,000
50,000
81,000
54,000
6,000
1,50,000
6,41,0006,41,000

= 4 marks

Working Notes:
1. Calculation of Goodwill
Firm’s Goodwill = 3 × 90,000 = 2,70,000
Varsha’s share of Goodwill = 2,70,000 × 5/10 = ₹1,35,000

2. Calculation of Profit:
Profit = 12,00,000 / 60,00,000 × 15,00,000 = ₹3,00,000
Varsha’s share of Profit = 3,00,000 × 5/10 = ₹1,50,000

Note: No marks to be awarded for the working notes.

Q114.2024 Main 67/4/1 · Q224 marks

Ram, Ravi and Rohan were partners sharing profits in the ratio of 2:3:1. On 31st March, 2023, their Balance Sheet was as follows :

Balance Sheet of Ram, Ravi and Rohan as on 31.3.2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors3,62,000Cash14,000
General Reserve18,000Bank2,96,000
Capitals :
Ram 1,00,000
Ravi 2,00,000
Rohan 3,00,000



6,00,000
Stock
Debtors 3,00,000
Less : provision for doubtful debts 10,000
80,000


2,90,000
Investments
Land
50,000
2,50,000
9,80,0009,80,000

Rohan died on 30th September, 2023. On the death of a partner the partnership deed provided for the following :

  1. Goodwill was to be valued at two years purchase of average profit of last three years. The profits for the last three years were : 2020-21 ₹ 45,000, 2021-22 ₹ 90,000 and 2022-23 ₹ 1,35,000.
  2. Deceased partner’s share of profit till the date of his death will be calculated on the basis of average profit of last three years.

Prepare Rohan’s Capital Account to be rendered to his executors.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Dr. Rohan’s Capital A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Rohan’s Executor’s A/c ½3,40,500By Balance b/d ½
By General Reserve A/c 1
By Ram’s Capital A/c (goodwill) ½
By Ravi’s Capital A/c (goodwill) ½
By Profit & Loss Suspense A/c 1
3,00,000
3,000
12,000
18,000
7,500
3,40,5003,40,500

(= 4 Marks)

Working Notes:

  1. Calculation of Goodwill
    Average profit = (45,000 + 90,000 + 1,35,000)/3 = ₹90,000
    Firm’s Goodwill = Average Profit × 2
    = ₹90,000 × 2
    = ₹1,80,000
    Rohan’s share of goodwill = ₹1,80,000 × 1/6
    = ₹30,000
  2. Calculation of Rohan’s share of Profit = ₹90,000 × 1/6 × 6/12
    = ₹7,500

Note- No marks to be awarded for working notes.

Q115.2024 Main 67/5/1 · Q214 marks

Madhav, Raghav and Purav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Madhav, Raghav and Purav
as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,00,000Bank20,000
General Reserve50,000Stock1,10,000
Capitals :Investment70,000
Madhav 60,000Furniture35,000
Raghav 1,00,000Building1,15,000
Purav 40,0002,00,000
3,50,0003,50,000

Purav died on 30th September, 2023. According to Partnership deed, his legal representatives are entitled to the following :

  1. Balance in his Capital Account.
  2. Share of profit upto the date of death to be calculated on the basis of last year's profit.
  3. Share of goodwill calculated on the basis of three years purchase of average profits of last four years.
  4. Interest on capital @ 12% p.a.

Purav's share of profit was ₹ 3,000 and the average profit of last four years were ₹ 50,000. Purav's drawings upto the date of death were ₹ 10,000.

Prepare Purav's Capital Account to be rendered to his legal representatives.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Madhav, Raghav and Purav

Dr. Purav’s Capital A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Drawings A/c (½)10,000By Balance b/d (½)40,000
To Purav’s Legal Representatives/ Executors A/c (½)75,400By General Reserve A/c (½)10,000
By Madhav’s Capital A/c (½)22,500
By Raghav’s Capital A/c (½)7,500
By Interest on Capital A/c (½)2,400
By P& L Suspense A/c (½)3,000
85,40085,400

(4 marks)

Q116.2023 Main 67/1/1 · Q224 marks

Sudhir, Deepak and Naveen were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022 their Balance Sheet was as under :

Balance Sheet of Sudhir, Deepak and Naveen as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors50,000Land and Building2,10,000
General Reserve1,00,000Machinery1,90,000
Loan1,20,000Stock30,000
Capitals :
Sudhir 1,60,000
Deepak 1,50,000
Naveen 1,40,000
4,50,000Investments
Advertisement Suspense A/c
1,70,000
1,20,000
7,20,0007,20,000

Sudhir died on 30th June, 2022. The partnership deed provided for the following, on the death of a partner :

  1. Goodwill of the firm was to be valued at 2½ years purchase of average profits of the previous four years which were ₹ 1,80,000.
  2. Sudhir’s share of profit or loss till the date of death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2022 amounted to ₹ 4,00,000 and that from 1st April, 2022 to 30th June, 2022 amounted ₹ 1,50,000. The profit for the year ended 31st March, 2022 was ₹ 1,00,000.
  3. Interest on capital was to be provided @ 7% p.a.

Prepare Sudhir’s capital account to be rendered to his executors.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Dr. Sudhir’s Capital A/c Cr.

Particulars₹Particulars₹
To Advertisement suspense A/c48,000By Balance b/d1,60,000
To Sudhir’s Executors A/c3,49,800By General Reserve A/c40,000
By Deepak’s Capital A/c1,20,000
By Naveen’s Capital A/c60,000
By Profit and Loss Suspense A/c15,000
By Interest on Capital A/c2,800
3,97,8003,97,800

(½ × 8 = 4 marks)

Workings:
Sudhir’s share in Goodwill
= 2/5 × 1,80,000 × 5/2
= ₹ 1,80,000
Sudhir’s share in profits till death
= 1,00,000/4,00,000 × 1,50,000 × 2/5
= ₹ 15,000
Interest on capital of Sudhir
= 1,60,000 × 7/100 × 3/12
= ₹ 2,800

(Note: No marks to be deducted for not showing workings)

Q117.2023 Main 67/2/1 · Q224 marks

Meena, Beena and Veena were partners in a firm sharing profits & losses equally. Their balance sheet as on 31st March, 2022 was as follow :

Balance Sheet of Meena, Beena and Veena as on 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital :
Meena 1,50,000
Beena 1,00,000
Veena 75,000



3,25,000
Plant and Machinery

Stock
Sundry debtors
2,40,000

60,000
35,000
General Reserve30,000Cash at Bank50,000
Sundry Creditors30,000
3,85,0003,85,000

Veena died on 30th June, 2022. According to the partnership deed, the executors of the deceased partner were entitled to :

  1. Balance in Capital account.
  2. Salary till the date of death @ ₹25,000 p.a.
  3. Share of Goodwill calculated on the basis of twice the average profits of past three years.
  4. Share of profit from the closure of last accounting year till the date of death on the basis of average of three completed years' profits before death.
  5. Profits for 2019-20, 2020-21 and 2021-22 were ₹1,20,000, ₹90,000 and ₹1,50,000 respectively.

Veena withdrew ₹15,000 on 1st June, 2022 for paying her daughter's school fees.

Prepare Veena's capital account to be rendered to her executors.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Veena's Capital A/c

Dr
Particulars
Amount (₹)ParticularsCr
Amount (₹)
To Drawings A/c15,000By Balance b/d75,000
To Veena's Executor's A/c1,66,250By General Reserve A/c10,000
By Veena's Salary A/c
(₹25,000 × 3/12)
6,250
By Meena's Capital A/c (goodwill)40,000
By Beena's Capital A/c (goodwill)40,000
By P&L Suspense A/c
(₹1,20,000 × 1/3 × 3/12)
10,000
1,81,2501,81,250

(½×8 = 4 Marks)

Q118.2023 Main 67/4/1 · Q214 marks

Prakash, Aakash and Vikas were partners in a business sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows:

Balance Sheet of Prakash, Aakash and Vikas as at 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Creditors2,00,000Bank40,000
General Reserve1,00,000Stock60,000
Debtors1,60,000
Capitals :Investments1,40,000
Prakash 1,20,000Furniture70,000
Aakash 2,00,000Building2,30,000
Vikas 80,0004,00,000
7,00,0007,00,000

Vikas died on 30th September, 2022. On the death of a partner the partnership deed provided for the following :

  1. Deceased partner will be entitled to his share of profit up to the date of death calculated on the basis of previous year’s profit.
  2. His share in the Goodwill of the firm, calculated on the basis of 3 years purchase of average profits of last four years. Profits for last four years ended 31st March were as follows :
    2018 – 19, ₹ 1,60,000; 2019 – 20, ₹ 1,00,000; 2020 – 21, ₹ 80,000 and 2021 – 22, ₹ 60,000.
  3. Drawings of the deceased partner up to the date of death were ₹ 20,000.
  4. Interest on capital was allowed @ 12% per annum.

Prepare Vikas’s Capital account to be rendered to his executors.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Prakash, Aakash and Vikas
Vikas’s Capital A/c

Dr.
Particulars
Amount ₹ParticularsCr.
Amount ₹
To Drawings A/c20,000By Balance b/d80,000
To Vikas’s Executors A/c1,50,800By General Reserve A/c20,000
By Prakash’s Capital A/c (G/W)30,000
By Aakash’s Capital A/c (G/W)30,000
By Interest on Capital A/c4,800
By P& L Suspense A/c6,000
1,70,8001,70,800

½X8 =4 marks

Working Note:
1. Calculation of Goodwill:
Average profits=4,00,000/4= 1,00,000
Firm’s Goodwill= 3x1,00,000= 3,00,000
Vikas share of Goodwill= 3,00,000/5= ₹60,000

2. Calculation of Profit:
Vikas share of Profit= 60,000 X 6/12 X 1/5 = ₹6,000

Note: No marks for working notes.

Q119.2023 Main 67/5/1 · Q224 marks

Sonali, Sohan and Shivain were partners in a pen manufacturing firm. They were sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022 their Balance Sheet was as follows :

Balance Sheet of Sonali, Sohan and Shivain as on 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital Accounts :
Sonali – 4,00,000
Sohan – 4,00,000
Shivain – 4,00,000



12,00,000
Land and Building
Plant and Machinery
Debtors
Stock
6,00,000
5,00,000
1,60,000
1,40,000
General Reserve1,00,000Cash in hand1,20,000
Creditors3,60,000Cash at Bank1,80,000
Bills payable40,000
17,00,00017,00,000

Sohan died on 30th June, 2022. According to Partnership Deed, his executors were entitled to :

  1. Interest on capital @ 12% p.a.
  2. His share of goodwill which was ₹ 48,000.
  3. His share of profit till the date of death was to be calculated on the basis of sales. The sales from 1st April, 2022 to 30th June, 2022 were ₹ 2,50,000. The sales and profits of the firm for the year ending 31st March, 2022 were ₹ 20,00,000 and ₹ 5,00,000 respectively.

Prepare Sohan’s Capital Account to be presented to his executors.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Sohan’s Capital Account

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Sohan’s Executors A/c (½)5,25,000By Balance b/d (½)
By General Reserve A/c (½)
By Interest on Capital A/c (½)
By Sonali’s Capital A/c (½)
By Shivain’s Capital A/c (½)
By P&L Suspense A/c (1)
4,00,000
40,000
12,000
32,000
16,000
25,000
5,25,0005,25,000

(4 marks)

Working Notes

  • Interest on Sohan’s Capital = 4,00,000 × 12/100 × 3/12 = ₹12,000
  • Sohan’s Share of Profit = 5,00,000/20,00,000 × ₹2,50,000 × 2/5 = ₹25,000

Note – No marks for working notes

Q120.2023 Supp. 67/C/1 · Q224 marks

B, C and D were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. On 31.03.2022 their Balance Sheet was as follows :

Balance Sheet of B, C and D as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,10,000Building2,00,000
Reserve Fund60,000Machinery3,00,000
Capitals :
B 3,00,000
C 2,50,000
D 1,50,000
7,00,000Stock2,10,000
Debtors80,000
Bank80,000
8,70,0008,70,000

C died on 01.10.2022. On C’s death, goodwill was valued at ₹ 1,87,500. The revaluation of assets and reassessment of liabilities resulted into a loss of ₹ 10,000. The partnership deed provided that on the death of a partner, goodwill will be treated without opening goodwill account. C’s share of profit till the date of his death was calculated at ₹ 70,000.

Prepare C’s Capital account to be presented to his executors at the time of his death and also C’s Executor’s account, assuming that half the amount due to him was paid immediately on C’s death.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

C’s Capital A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Revaluation A/c5,000By Balance b/d2,50,000
To C’s Executor’s A/c4,38,750By Reserve Fund30,000
By B’s Capital A/c(goodwill)56,250
By D’s Capital A/c(goodwill)37,500
By P&L Suspense A/c70,000
4,43,7504,43,750

½ x 6 = 3 marks

(Note: No marks for balance b/d)

C’s Executors A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Bank A/c… [½]2,19,375By C’s Capital A/c4,38,750
To C’s Executor’s Loan A/c… [½]2,19,375
4,38,7504,38,750

1 mark = 4 marks

Q121.SQP 2026-27 · Q22(b)4 marks

Alpha, Beta and Delta were partners. On 31st August 2023, Delta died and after all the adjustments an amount of Rs.3,22,000 was payable to his executors. It was agreed to pay Rs.22,000 immediately and balance in 3 equal instalments together with interest @10%p.a. on 31st March 2024, 31st March 2025 and 31st March 2026, Prepare Delta’s Executors account till it is finally paid off.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Dr. Delta’s Executor’s A/c Cr.

DateParticulars(₹)DateParticulars(₹)
31-08-23To Bank A/c22,00031-08-23By Delta’s Capital A/c3,22,000
31-03-24To Bank A/c1,17,50031-03-24By Interest A/c17,500
31-03-24To Balance c/d2,00,000
3,39,5003,39,500
31-03-25To Bank A/c1,20,0001-04-24By Balance b/d2,00,000
31-03-25To Balance c/d1,00,00031-3-25By Interest A/c20,000
2,20,0002,20,000
31-03-26To Bank A/c1,10,0001-04-25By Balance b/d1,00,000
31-3-26By Interest A/c10,000
1,10,0001,10,000
Q122.2022 Main 67/1/1 · Q7(b)5 marks

Heena, Meena and Tina are partners in a firm sharing profits and losses equally. Their Balance Sheet on April 1st, 2020 was as follows :

Balance Sheet of Heena, Meena & Tina as on 1st April, 2020

LiabilitiesAmount (₹)AssetsAmount (₹)
Bills Payable12,000Building40,000
Sundry Creditors18,000Machinery30,000
General Reserve12,000Furniture12,000
Capitals : Heena30,000Stock22,000
Meena30,000Debtors 20,000
Less : Provision for doubtful debts 1,000
19,000
Tina28,000Bank7,000
1,30,0001,30,000

Tina retired from the firm on the above date and the following was agreed upon :

  1. Building was to be appreciated by 20%.
  2. Machinery was to be depreciated by ₹ 1,500.
  3. Provision for doubtful debts was to be increased to ₹ 1,500.
  4. Goodwill was valued at ₹ 21,000 on Tina's retirement and the same was to be treated without opening goodwill account.
  5. The balance in Tina's Capital account will be transferred to her Loan account.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery A/c1,500By Building A/c8,000
To Provision for Doubtful debts A/c500
To Gain on Revaluation transferred to:
Heena's Capital 2,000
Meena's Capital 2,000
Tina's Capital 2,000
6,000
8,0008,000

(2)

Dr. Partners' Capital A/c Cr.

ParticularsHeena (₹)Meena (₹)Tina (₹)ParticularsHeena (₹)Meena (₹)Tina (₹)
To Tina's Cap. A/c3,5003,500By Balance b/d30,00030,00028,000
To Tina's Loan A/c41,000By General Reserve A/c4,0004,0004,000
To Balance c/d32,50032,500By Revaluation A/c2,0002,0002,000
By Heena's Cap. A/c3,500
By Meena's Cap. A/c3,500
36,00036,00041,00036,00036,00041,000

(3) = 5

Q123.2022 Main 67/2/1 · Q7(b)5 marks

Vidit, Vinay and Siya were partners in a firm. On 31st March, 2021, their Balance Sheet was as follows :

Balance Sheet of Vidit, Vinay and Siya as at 31st March, 2021

LiabilitiesAmount
₹
AssetsAmount
₹
Creditors72,000Cash28,000
Bank Loan18,000Stock46,000
General Reserve18,000Debtors34,000
Building30,000
Capitals :Plant and Machinery66,000
Vidit48,000
Vinay16,000
Siya32,00096,000
2,04,0002,04,000

On the above date, Vinay retired and it was agreed that :

  1. The value of stock will be reduced by ₹ 10,000.
  2. Plant and Machinery will be valued at ₹ 80,000.
  3. An amount of ₹ 4,500 included in creditors is not likely to be claimed.
  4. Debtors to be valued at ₹ 30,000.
  5. Amount due to Vinay will be transferred to Vinay’s Loan Account.

Prepare Revaluation Account and Vinay’s Capital Account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Dr. Revaluation A/c Cr.

Particulars(₹)Particulars(₹)Marks
To Stock A/c10,000By Plant A/c14,000½ + ½
To Debtors A/c4,000By Creditor A/c4,500½ + ½
To Gain on Revaluation transferred to Partners’ Capital Accounts:
Vidit1,500
Vinay1,500
Siya1,5004,500+1
18,50018,500=3

Dr. Vinay’s Capital A/c Cr.

Particulars(₹)Particulars(₹)
To Vinay’s Loan A/c23,500By Balance b/d16,000
By Revaluation A/c1,500
By General Reserve6,000
23,50023,500

(½×4 = 2)

3+2 = 5 marks

Q124.2022 Main 67/3/1 · Q7(b)5 marks

D, E and F were partners in a firm sharing profits in the ratio of 5 : 2 : 3. On 31.3.2022 their balance sheet was as follows:

Balance Sheet of D, E and F as on 31.3.2022

LiabilitiesAmount ₹AssetsAmount ₹
Creditors53,000Cash16,000
Bills Payable62,000Bank17,000
General Reserve2,00,000Stock18,000
Capitals :Debtors1,99,000
D 7,00,000Investments1,15,000
E 5,00,000Machinery7,50,000
F 6,00,00018,00,000Land and Building10,00,000
21,15,00021,15,000

On the above date D retired from the firm and the following was agreed upon:

  1. Goodwill of the firm was valued at ₹ 1,00,000. D’s share of goodwill was adjusted through the capital accounts of remaining partners.
  2. Investments were to be brought to their market value which was ₹ 85,000.
  3. Machinery was to be depreciated to ₹ 7,00,000.
  4. Land and Building was to be appreciated to ₹ 12,00,000.
  5. The balance in D’s capital account was transferred to his loan account.

Prepare Revaluation Account and D’s Capital Account on his retirement.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Dr. Revaluation Account Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Investments A/c30,000By Land and Building A/c2,00,000
To Machinery A/c50,000
To Profit on Revaluation transferred to:
D’s Capital A/c 60,000
E’s Capital A/c 24,000
F’s Capital A/c 36,000
1,20,000
2,00,0002,00,000

½ × 4 = 2

Dr. D’s Capital A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To D’s Loan A/c9,10,000By Balance b/d7,00,000
By General Reserve1,00,000
By E’s Capital A/c20,000
By F’s Capital A/c30,000
By Revaluation A/c60,000
9,10,0009,10,000

½ × 6 = 3

2 + 3 = 5 Marks

Q125.2022 Main 67/4/1 · Q8(a)5 marks

X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. On 31st March, 2022 their Balance Sheet was as follows :

Balance Sheet of X, Y and Z as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors34,000Bank1,74,000
Bills Payable29,000Sundry Debtors2,00,000
General Reserve2,00,000Bills Receivable26,000
Capitals :Stock1,50,000
X3,00,000Furniture1,28,000
Y3,00,000Machinery2,00,000
Z4,00,00010,00,000Land and Building3,85,000
12,63,00012,63,000

On the above date, Z retired on the following terms :

  1. A provision of 3% on debtors will be created for bad and doubtful debts.
  2. Stock will be reduced by ₹5,000 and furniture by ₹2,000.
  3. Land and building will be brought up to ₹4,00,000 and machinery will be brought down to ₹1,80,000.

Prepare Revaluation Account and Z’s Capital Account, transferring the amount due to his loan account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Revaluation A/c

Dr.
Particulars
Amount (₹)ParticularsAmount (₹) Cr.
Provision for doubtful debts A/c6,000Land & Building a/c15,000
Stock A/c5,000Partners’ Capital A/cs - loss on Revaluation :
X 5,400
Y 5,400
Z 7,200
18,000
Furniture A/c2,000
Machinery A/c20,000
33,00033,000

(½ × 6 = 3)

Z’s Capital A/c

Dr.
Particulars
Amount (₹)ParticularsAmount (₹) Cr.
Revaluation A/c (loss)7,200Balance B/d4,00,000
Z’s Loan A/c (Balancing figure)4,72,800General Reserve A/c80,000
4,80,0004,80,000

(½ × 4 = 2)

(3 + 2 = 5 marks)

Q126.2022 Main 67/5/1 · Q7(b)5 marks

Anu, Bhanu and Charu were partners in a firm sharing profits in the ratio of 2:2:1. Anu decided to retire from the firm on 31st March, 2021. The balance sheet of the firm on that date was as follows :

Balance Sheet of Anu, Bhanu and Charu as on 31st March, 2021 :

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors24,000Bank10,000
Profit & Loss A/c5,000Debtors20,000
Less Provision for Doubtful Debts– 40019,600
Capitals :Stock27,000
Anu31,000Investments10,000
Bhanu30,000Patents2,400
Charu22,00083,000Premises43,000
1,12,0001,12,000

On retirement of Anu, following terms were agreed upon :

  1. Anu sold her share of premium for goodwill to Bhanu for ₹6,000 and to Charu for ₹3,000.
  2. Provision for doubtful debts was to be raised to 5% on debtors.
  3. Patents were considered as valueless.
  4. Anu was paid ₹9,600 through a cheque and balance was transferred to her loan A/c.

Prepare Revaluation Account and Anu's Capital Account on her retirement.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts ... ½600By Loss on Revaluation transferred to: ... 1
Anu's Capital A/c 1,200
Bhanu's Capital A/c 1,200
Charu's Capital A/c 600
3,000
To Patents ... ½2,400
3,0003,000

(2 marks)

Dr. Anu's Capital A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Revaluation A/c ... ½1,200By Balance b/d31,000
To Bank A/c ... ½9,600By Bhanu's Capital ... ½6,000
To Anu's Loan A/c ... ½31,200By Charu's Capital ... ½3,000
By Profit & Loss A/c ... ½2,000
42,00042,000

(½ × 6 = 3 Marks)
(2 + 3 = 5 marks)

Q127.2022 Supp. 67/6/1 · Q7(a)5 marks

Ravi, Mohan and Pandey were partners in a firm sharing profits and losses in the ratio of 7 : 8 : 9. On 31st March, 2022, their Balance Sheet was as follows :

Balance Sheet of Ravi, Mohan and Pandey as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,41,000Bank27,000
Stock91,000
General Reserve24,000Debtors 2,10,000
Less : Provision for doubtful debts 10,000
2,00,000
Capitals :
Ravi 3,00,000
Mohan 4,00,000
Pandey 8,43,000
15,43,000Machinery3,00,000
Land and Building10,00,000
Profit and Loss Account (Loss of 2021 – 22)90,000
17,08,00017,08,000

On 31st March, 2022, Mohan retired from the firm on the following terms :

  1. Goodwill of the firm was valued at ₹ 4,80,000.
  2. Mohan’s share of goodwill will be credited to his capital account without opening goodwill account.
  3. Debtors of ₹ 10,000 will be written off and a provision of 10% for bad and doubtful debts will be created on debtors.
  4. Machinery will be depreciated by 10% and land and building will be appreciated by 5%.
  5. The balance in Mohan’s Capital Account will be transferred to his loan account.

Prepare Revaluation Account and Mohan’s Capital Account on Mohan’s retirement, in the books of the firm.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Revaluation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Provision for doubtful debts (1)20,000By Land and building A/c (½)50,000
To Machinery (½)30,000
50,00050,000

2 marks

Mohan’s Capital A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Profit & Loss A/c (½)30,000By Balance b/d (½)4,00,000
To Mohan’s Loan A/c (½)5,38,000By General Reserve A/c (½)8,000
By Ravi’s Capital A/c (goodwill) (½)70,000
By Pandey’s Capital A/c (goodwill) (½)90,000
5,68,0005,68,000

½ × 6 = 3 Marks

2 + 3 = 5 marks

Q128.2026 Main 67/1/1 · Q25(b)6 marks

Anuj, Divij and Shilpa were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Anuj, Divij and Shilpa as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land & Building8,00,000
Anuj 3,00,000Furniture2,40,000
Divij 4,00,000Stock1,20,000
Shilpa 5,00,00012,00,000Debtors1,70,000
Bills Payable60,000Cash50,000
Creditors1,20,000
13,80,00013,80,000

Anuj retired on the above date on the following terms :

  1. Anuj’s share of goodwill was valued at ₹90,000 and the same was to be treated without opening goodwill account.
  2. Revaluation of assets and reassessment of liabilities resulted in a gain of ₹25,000.
  3. Amount due to Anuj was transferred to his loan account, to be paid in two equal yearly instalments plus interest @ 12% p.a. on the unpaid balance starting from 31st March, 2024.

Prepare Partners’ Capital Accounts and Anuj’s Loan Account till it is fully discharged.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Anuj, Divij and Shilpa
Partners’ Capital Accounts

Dr. ParticularsAnuj (₹)Divij (₹)Shilpa (₹)Particulars Cr.Anuj (₹)Divij (₹)Shilpa (₹)
To Anuj’s Capital A/c ½-30,00060,000By Balance b/d ½3,00,0004,00,0005,00,000
To Anuj’s Loan A/c ½4,00,000--By Divij’s Capital A/c ½30,000--
To Balance c/d ½-3,75,0004,50,000By Shilpa’s Capital A/c ½60,000--
By Revaluation A/c (gain) ½10,0005,00010,000
4,00,0004,05,0005,10,0004,00,0004,05,0005,10,000

Anuj’s Loan A/c

Dr. DateParticularsAmount (₹)DateParticulars Cr.Amount (₹)
2023 Mar.31To Balance c/d4,00,0002023 Mar.31By Anuj’s Capital A/c ½4,00,000
4,00,0004,00,000
2024 Mar.31To Cash/ Bank A/c ½2,48,0002023 Apr.1By Balance b/d4,00,000
Mar.31To Balance c/d2,00,0002024 Mar.31By Interest A/c ½48,000
4,48,0004,48,000
2025 Mar.31To Cash/ Bank A/c ½2,24,0002024 Apr.1By Balance b/d2,00,000
2025 Mar.31By Interest A/c ½24,000
2,24,0002,24,000

(6 marks)

Q129.2026 Main 67/2/1 · Q246 marks

Anish, Bindu and Chandni were partners in a firm sharing profits and losses in the ratio of 2:2:1. Anish died on 31st December, 2023. After all necessary adjustments, Anish's Capital Account showed a credit balance of ₹ 5,00,000. Anish's executors were paid ₹ 1,00,000 in cash on 1st January, 2024 and the balance in two equal yearly instalments starting from 31st December, 2024 with interest @ 12% p.a. on the unpaid amount. The firm closes its books on 31st March every year.

Prepare Anish's Executors Account till the amount is finally paid.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Anish's Executors Account

Dr.Cr.
DateParticularsAmount (₹)DateParticularsAmount (₹)
2023
Dec. 31
To Bank/ Cash A/c ½1,00,0002023
Dec. 31
By Anish's Capital A/c ½5,00,000
2024
Mar 31
To Balance c/d ½4,12,0002024
Mar 31
By Interest A/c ½12,000
5,12,0005,12,000
2024
Dec.31
To Bank/ Cash A/c ½2,48,0002024
April 1
By Balance b/d ½4,12,000
2025
Mar 31
To Balance c/d ½2,06,000Dec.31By Interest A/c ½36,000
2025
Mar 31
By Interest A/c ½6,000
4,54,0004,54,000
2025
Dec. 31
To Bank/ Cash A/c ½2,24,0002025
April 1
By Balance b/d ½2,06,000
Dec. 31By Interest A/c ½18,000
2,24,0002,24,000

(6 marks)

As printed in the marking scheme, the first cash payment is dated 31 Dec. 2023 (the question says 1st January, 2024).

Q130.2026 Main 67/2/1 · Q26(b)6 marks

Raghav, Meeta and Pranav were partners in a firm sharing profits and losses in the ratio of 5:3:2. Their balance sheet as at 31st March, 2025 was as follows :

Balance Sheet of Raghav, Meeta and Pranav as on 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Raghav 2,50,000
Meeta 2,00,000
Pranav 1,50,000



6,00,000
Plant and Machinery
Furniture
Stock
Debtors 80,000
Less provision for doubtful debts 2,000
4,30,000
1,60,000
90,000

78,000
General Reserve40,000
Bills payable30,000Cash32,000
Creditors1,20,000
7,90,0007,90,000

On 1st April, 2025, Pranav retired from the firm on the following terms :

  1. Plant and Machinery was found to be undervalued by ₹ 20,000.
  2. Furniture was revalued at ₹ 1,62,000.
  3. The provision for doubtful debts on debtors was to be created @ 5%.
  4. Goodwill of the firm was valued at ₹ 4,00,000 and the same was to be adjusted through the capital accounts of the remaining partners.
  5. Pranav was paid in cash brought in by Raghav and Meeta in such a way so as to make the capital proportionate to the new profit sharing ratio.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Raghav, Meeta and Pranav

Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts A/c ½2,000By Plant & Machinery A/c ½20,000
To Gain transferred to: ½
Raghav's Capital A/c 10,000
Meeta's Capital A/c. 6,000
Pranav's Capital A/c 4,000



20,000
By Furniture A/c ½2,000
63,50063,500

Partners' Capital Accounts

Dr.Cr.
ParticularsRaghav (₹)Meeta (₹)Pranav (₹)ParticularsRaghav (₹)Meeta (₹)Pranav (₹)
To Pranav's Capital A/c ½50,00030,000-By Balance b/d2,50,0002,00,0001,50,000
To Cash/ Bank A/c ½--2,42,000By General Reserve A/c ½20,00012,0008,000
To Balance c/d ½4,12,5002,47,500By Revaluation A/c (gain) ½10,0006,0004,000
By Raghav's Capital A/c ½--50,000
By Meeta's Capital A/c ½--30,000
By Cash/ Bank A/c ½1,82,50059,500-
4,62,5002,77,5002,42,0004,62,5002,77,5002,42,000

NOTE: No marks for 'Balance b/d'

(6 marks)

The marking scheme prints the Revaluation Account totals as ₹ 63,500 on both sides; the entries shown add up to ₹ 22,000. The MS figure is reproduced as printed.

Q131.2026 Main 67/3/1 · Q26(b)6 marks

Radha, Shyam and Meera were partners in a firm sharing profits and losses equally. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Radha, Shyam and Meera as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Patents1,80,000
Radha4,00,000Building6,90,000
Shyam4,00,000Debtors2,70,000
Meera4,00,00012,00,000Stock3,60,000
General Reserve3,00,000Bank1,80,000
Creditors1,80,000
16,80,00016,80,000

Shyam retired from the firm on the above date on the following terms :

  1. The new profit sharing ratio between the remaining partners was agreed at 3 : 2.
  2. The value of stock was to be reduced by ₹1,20,000.
  3. Patents were considered as valueless and hence were to be written off.
  4. Goodwill of the firm was valued at ₹6,00,000 on Shyam’s retirement.
  5. Shyam was paid ₹1,00,000 immediately on his retirement and the balance was transferred to his loan account.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Stock A/c (½)1,20,000By Capital A/c (loss) (½)
To Patents A/c (½)1,80,000Radha1,00,000
Shyam1,00,000
Meera1,00,0003,00,000
3,00,0003,00,000

Dr. Partners’ Capital Account Cr.

ParticularsRadha (₹)Shyam (₹)Meera (₹)ParticularsRadha (₹)Shyam (₹)Meera (₹)
To Revaluation A/c (loss) (½)1,00,0001,00,0001,00,000By balance b/d (½)4,00,0004,00,0004,00,000
To Shyam’s Capital A/c (½)1,60,000-40,000By General Reserve A/c (½)1,00,0001,00,0001,00,000
To Cash /Bank A/c (½)-1,00,000-By Radha’s Capital A/c (½)-1,60,000-
To Shyam’s Loan A/c (½)-5,00,000-By Meera’s Capital A/c (½)-40,000-
To Balance c/d (½)2,40,000-3,60,000
5,00,0007,00,0005,00,0005,00,0007,00,0005,00,000

(6 Marks)

Q132.2026 Main 67/4/1 · Q24(b)6 marks

Aarav, Kunal and Manav were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Aarav, Kunal and Manav as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors70,000Cash2,30,000
Workmen Compensation Reserve1,00,000Debtors 90,000
Less : Provision for doubtful debts 10,000
80,000
Stock1,60,000
Capitals :
Aarav 3,00,000
Kunal 2,50,000
Manav 1,50,000
7,00,000Machinery
Building
2,50,000
1,50,000
8,70,0008,70,000

Aarav retired on the above date and it was agreed that :

  1. Kunal and Manav will share future profits in the ratio of 1 : 4.
  2. Goodwill of the firm be valued at ₹ 6,00,000 and the retiring partner’s share would be adjusted through the capital accounts of the remaining partners.
  3. An unrecorded creditor of ₹ 20,000 was to be taken into account.
  4. Debtors of ₹ 15,000 were to be written off as bad debts.
  5. Liability on account of workmen compensation amounted to ₹ 40,000.
  6. Amount payable to Aarav was transferred to his loan account.

Pass necessary journal entries for the above transactions in the books of the firm on Aarav’s retirement.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Aarav, Kunal and Manav
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2025
March 31
Manav’s Capital A/c ... Dr.
To Aarav’s Capital A/c
To Kunal’s Capital A/c
(Adjustment for goodwill on Aarav’s retirement) (1)
3,60,000


3,00,000
60,000
March 31Revaluation A/c ... Dr.
To Creditors A/c
(Unrecorded creditors taken into account) (1)
20,000

20,000
March 31Bad debts A/c ... Dr.
To Debtors A/c
(Bad debts written off) (½)
15,000

15,000
March 31Provision for Doubtful Debts A/c ... Dr.
Revaluation A/c ... Dr.
To Bad Debts A/c
(Bad debts charged to provision for doubtful debts and balance to revaluation account) (½)
10,000
5,000


15,000
March 31Workmen Compensation Reserve A/c ... Dr.
To Claim for Workmen Compensation A/c
To Aarav’s Capital A/c
To Kunal’s Capital A/c
To Manav’s Capital A/c
(Workmen Compensation Reserve transferred to Claim for workmen compensation account and balance distributed among partners) (1)
1,00,000




40,000
30,000
18,000
12,000
Or
Workmen Compensation Reserve A/c ... Dr.
To Claim for Workmen Compensation A/c
(Workmen Compensation Reserve transferred to Claim for workmen compensation account) (½)
40,000

40,000
Workmen Compensation Reserve A/c ... Dr.
To Aarav’s Capital A/c
To Kunal’s Capital A/c
To Manav’s Capital A/c
(Balance Workmen Compensation Reserve distributed in old profit-sharing ratio) (½)
60,000



30,000
18,000
12,000
March 31Aarav’s Capital A/c ... Dr.
Kunal’s Capital A/c ... Dr.
Manav’s Capital A/c ... Dr.
To Revaluation A/c
(Revaluation loss borne by partners) (1)
12,500
7,500
5,000



25,000
March 31Aarav’s Capital A/c ... Dr.
To Aarav’s Loan A/c
(Amount due to Aarav transferred to his loan account) (1)
6,17,500

6,17,500

= 6 marks

Q133.2026 Supp. 67/7/1 · Q26(b)6 marks

Abha, Binita and Rita were partners in a firm, sharing profits and losses in the ratio of 3 : 3 : 4. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Abha, Binita and Rita as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land and Building7,50,000
Abha5,00,000Plant and Machinery3,50,000
Binita4,00,000Stock1,64,000
Rita3,00,00012,00,000Debtors90,000
General Reserve1,00,000Less : Provision for Doubtful Debts2,00088,000
Outstanding Expenses80,000Cash48,000
Creditors20,000
14,00,00014,00,000

Rita retired on the above date and the following adjustments were agreed upon :

  1. Goodwill of the firm was valued at ₹ 2,00,000.
  2. Valued of stock was reduced by ₹ 10,000.
  3. Provision for doubtful debts was created @ 5% on debtors.
  4. Provision for legal charges was made at ₹ 7,500.
  5. Capital of the new firm was fixed at ₹ 10,00,000. The continuing partners decided to keep their capitals in the new profit sharing ratio. For this, necessary cash was paid off or brought in, as the case may be.
  6. Balance in Rita’s capital account was transferred to her loan account.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Abha, Binita and Rita
Revaluation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Stock A/c (½)10,000By Loss transferred to: (½)
Abha’s capital A/c 6,000
Binita’s capital A/c 6,000
Rita’s capital A/c 8,000
20,000
To Provision for doubtful debts A/c (½)2,500
To Provision for legal charges A/c (½)7,500
20,00020,000

(2 marks)

Partners’ Capital Accounts

Dr. ParticularsAbha (₹)Binita (₹)Rita (₹)Cr. ParticularsAbha (₹)Binita (₹)Rita (₹)
To Rita’s Capital A/c (½)40,00040,000-By Balance b/d (½)5,00,0004,00,0003,00,000
To Revaluation A/c6,0006,0008,000By Abha’s Capital A/c (½)--40,000
To Rita’s Loan A/c (½)--4,12,000By Binita’s Capital A/c (½)--40,000
To Balance c/d (½)5,00,0005,00,000-By General Reserve (½)30,00030,00040,000
By Cash A/c (½)16,0001,16,000
5,46,0005,46,0004,20,0005,46,0005,46,0004,20,000

(4 marks; 2 + 4 = 6 marks)

Q134.2025 Main 67/1/1 · Q26(b)6 marks

Ashish, Vinit and Reema were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet on 31st March, 2024 was as follows :

Balance sheet of Ashish, Vinit and Reema as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Patents80,000
Ashish 2,00,000Furniture3,00,000
Vinit 2,00,000Stock1,70,000
Reema 1,00,0005,00,000Debtors 80,000
General Reserve50,000Less : provision for doubtful debts 8,00072,000
Bills Payable80,000Cash48,000
Creditors40,000
6,70,0006,70,000
  1. Goodwill of the firm was valued at ₹ 60,000 and the same was adjusted into the capital accounts of Ashish and Reema who will share profits in future in the ratio of 3 : 2.
  2. Value of stock was to be reduced by ₹ 10,000.
  3. Patents are found undervalued by 20%.
  4. Vinit was paid ₹ 20,000 immediately on retirement and the balance was transferred to his loan account carrying interest @ 8% p.a.

Pass necessary journal entries on Vinit's retirement.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Ashish, Vinit and Reema — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Mar. 31
Patents A/c ... Dr.
To Revaluation A/c
(Patents were found undervalued by 20%)
20,000

20,000
Revaluation A/c ... Dr.
To Stock A/c
(Value of stock reduced)
10,000

10,000
Revaluation A/c ... Dr.
To Ashish's Capital A/c
To Vinit's Capital A/c
To Reema's Capital A/c
(Profit on revaluation credited to partners' capital accounts)
10,000



4,000
4,000
2,000
General Reserve A/c ... Dr.
To Ashish's Capital A/c
To Vinit's Capital A/c
To Reema's Capital A/c
(General Reserve credited to partners' capital accounts)
50,000



20,000
20,000
10,000
Ashish's Capital A/c ... Dr.
Reema's Capital A/c ... Dr.
To Vinit's Capital A/c
(Vinit's share of goodwill adjusted in the capital accounts of Ashish and Reema in the gaining ratio)
12,000
12,000


24,000
Vinit's Capital A/c ... Dr.
To Cash A/c
To Vinit's Loan A/c
(Vinit was paid ₹20,000 on retirement, and the balance transferred to his loan account)
2,48,000


20,000
2,28,000

(1 × 6 = 6 marks)

Q135.2025 Main 67/2/1 · Q26(b)6 marks

Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Their Balance Sheet as at 31st March, 2024 was as follows :

Balance Sheet of Rupal, Shanu and Trisha as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Fixed Assets8,20,000
Rupal 8,00,000Stock2,80,000
Shanu 6,00,000Debtors5,00,000
Trisha 2,00,00016,00,000Cash7,20,000
General Reserve3,20,000
Creditors4,00,000
23,20,00023,20,000

Trisha retired from the firm on 1st April, 2024 on the following terms :

  1. Trisha's share of profit was entirely taken by Shanu.
  2. Fixed assets were found to be undervalued by ₹ 2,40,000.
  3. Stock was revalued at ₹ 2,00,000.
  4. Goodwill of the firm was valued at ₹ 8,00,000 on Trisha's retirement.
  5. The total capital of the new firm was fixed at ₹ 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Stock………………80,000By Fixed Assets A/c2,40,000
To Profit transferred to:
Rupal's Capital A/c 80,000
Shanu's Capital A/c 60,000
Trisha's Capital A/c 20,000
1,60,000
2,40,0002,40,000

(½ x 3)

Partners' Capital Accounts

Dr.
Particulars
Rupal (₹)Shanu (₹)Trisha (₹)Cr.
Particulars
Rupal (₹)Shanu (₹)Trisha (₹)
To Trisha's Capital A/c (½)1,00,000By Balance b/d (½)8,00,0006,00,0002,00,000
To Trisha's Loan A/c (½)3,60,000By General Reserve A/c (½)1,60,0001,20,00040,000
To Cash A/c (½)2,40,000By Shanu's Capital A/c (½)1,00,000
To Balance c/d (½)8,00,0008,00,000--By Revaluation A/c (½)80,00060,00020,000
By Cash A/c (½)1,20,000
10,40,0009,00,0003,60,00010,40,0009,00,0003,60,000

(½ x 3) + 4½ = 6 marks

Q136.2025 Main 67/4/1 · Q26(b)6 marks

Chandan, Deepak and Elvish were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows :

Balance Sheet of Chandan, Deepak and Elvish as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Fixed Assets27,00,000
  Chandan7,00,000Stock3,00,000
  Deepak5,00,000Debtors2,00,000
  Elvish3,00,00015,00,000Cash1,00,000
General Reserve4,50,000
Creditors13,50,000
33,00,00033,00,000

Chandan retired from the firm on 1st April, 2024 on the following terms :

  1. Fixed assets were to be depreciated by 10%.
  2. Debtors of ₹ 30,000 were to be written off as bad debts.
  3. Goodwill of the firm was valued at ₹ 6,00,000 and the retiring partner’s share is adjusted through the capital accounts of the remaining partners.
  4. Chandan was paid through cash brought in by Deepak and Elvish in such a way so as to make their capitals proportionate to their new profit sharing ratio.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Revaluation Account

Dr. ParticularsAmount (₹)ParticularsCr. Amount (₹)
To Fixed Assets
To Bad Debts
2,70,000
30,000
By Loss t/f to Capital A/c
  Chandan 60,000
  Deepak 1,20,000
  Elvish 1,20,000



3,00,000
3,00,0003,00,000

(½ x 3 = 1½)

Partners’ Capital Accounts

Dr. ParticularsChandan (₹)Deepak (₹)Elvish (₹)ParticularsChandan (₹)Deepak (₹)Cr. Elvish (₹)
To Revaluation A/c (½)60,0001,20,0001,20,000By balance b/d (½)7,00,0005,00,0003,00,000
To Chandan’s Capital A/c (½)60,00060,000By General Reserve A/c (½)90,0001,80,0001,80,000
By Deepak’s Capital A/c (½)60,000
By Elvish’s Capital A/c (½)60,000
To Cash A/c (½)8,50,000By Cash A/c (½)3,25,0005,25,000
To balance c/d (½)8,25,0008,25,000
9,10,00010,05,00010,05,0009,10,00010,05,00010,05,000

Capital of new firm = 8,50,000 + 5,00,000 + 3,00,000
= ₹ 16,50,000

(1½) + (4½) = 6 marks

Q137.2025 Main 67/5/1 · Q24(b)6 marks

Arti, Bharti and Gayatri were partners in a firm sharing profits and losses in ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2024 was a follows :

Balance Sheet of Arti, Bharti and Gayatri as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,50,000Cash at Bank1,30,000
General Reserve1,30,000Debtors70,000
Employees’ Provident Fund25,000Stock1,05,000
Workmen Compensation Fund75,000Machinery1,40,000
Capitals :Building2,00,000
Arti2,00,000Patents5,000
Bharti1,00,000Profit and Loss A/c80,000
Gayatri50,0003,50,000
7,30,0007,30,000

On the above date, Arti retired from the firm on the following terms :

  1. Goodwill of the firm was valued at ₹ 3,00,000.
  2. A provision of 5% for doubtful debts was to be created on debtors.
  3. Machinery was to be depreciated by 10% and building was to be appreciated by ₹ 22,500.
  4. Patents were considered as valueless and hence had to be written off.
  5. A claim of ₹ 15,000 was admitted for workmen compensation.

Prepare Revaluation Account and Partners’ Capital Accounts on Arti’s retirement.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts A/c (½)3,500By Building A/c (½)22,500
To Machinery A/c (½)14,000
To Patents A/c (½)5,000
22,50022,500

(½ x 4 = 2)

Partners’ Capital A/c

Dr.Cr.
ParticularsArti (₹)Bharti (₹)Gayatri (₹)ParticularsArti (₹)Bharti (₹)Gayatri (₹)
To Profit & Loss A/c (½)40,00024,00016,000By Balance b/d (½)2,00,0001,00,00050,000
To Aarti’s Capital A/c (½)-90,00060,000By Bharati’s Capital A/c90,000--
To Aarti’s Loan A/c (½)4,05,000--By Gayatri’s Capital A/c (½)60,000--
To Balance c/d (½)-43,00012,000By General Reserve (½)65,00039,00026,000
By Workmen Compensation Fund (½)30,00018,00012,000
4,45,0001,57,00088,0004,45,0001,57,00088,000

(½ x 8 = 4) (=6 marks)

Q138.2025 Main 67/6/1 · Q24(a)6 marks

Ratan, Singh and Sharma were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet on 31st March, 2024 was as follows :

Balance Sheet of Ratan, Singh and Sharma as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors90,000Bank65,000
Outstanding Wages10,000Stock1,50,000
General Reserve3,00,000Debtors 90,000
Less : Provision for Doubtful Debts 5,000
85,000
Capitals :
Ratan 3,60,000
Singh 2,40,000
Sharma 1,00,000



7,00,000
Plant and Machinery
Land and Building
Profit and Loss A/c
2,50,000
4,50,000
1,00,000
11,00,00011,00,000

On 1st April, 2024 Sharma retired from the firm on the following terms :

  1. Plant and Machinery is revalued at ₹2,00,000.
  2. Land and Building was to be appreciated by ₹49,500 and provision for bad debts will be maintained at 5% of the debtors.
  3. Sharma's share in the goodwill of the firm was valued at ₹60,000 and the retiring partner's share was adjusted through the capital accounts of remaining partners.
  4. Sharma was paid in cash brought by Ratan and Singh in such a way so as to make their capitals proportionate to their new profit sharing ratio.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Ratan, Singh and Sharma
Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Plant and Machinery A/c50,000By Land and Building A/c49,500
By Provision for bad debts A/c500
50,00050,000

(½ × 3 = 1½)

Partners' Capital A/c

Dr.Cr.
ParticularsRatan (₹)Singh (₹)Sharma (₹)ParticularsRatan (₹)Singh (₹)Sharma (₹)
To Profit and loss A/c (½)40,00040,00020,000By Balance b/d (½)3,60,0002,40,0001,00,000
To Sharma's capital A/c (½)30,00030,000By General Reserve A/c (½)1,20,0001,20,00060,000
To Bank/Cash A/c (½)2,00,000By Ratan's capital A/c (½)30,000
To Balance c/d (½)4,50,0004,50,000By Singh's capital A/c (½)30,000
By Bank A/c (½)40,0001,60,000
5,20,0005,20,0002,20,0005,20,0005,20,0002,20,000

(4½) = 6 marks

Q139.2025 Main 67/7/1 · Q24(b)6 marks

Naval, Nyaya and Nritya were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Naval, Nyaya and Nritya as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land and Building9,50,000
Naval2,00,000Plant and Machinery2,00,000
Nyaya3,00,000Furniture50,000
Nritya5,00,00010,00,000Stock70,000
General Reserve80,000Debtors
Less : Provision for doubtful debts
95,000
5,000
90,000
Mrs. Naval’s Loan2,00,000Bank70,000
Creditors1,50,000
14,30,00014,30,000

On the above date, Nyaya retired from the firm on the following terms :

  1. Goodwill of the firm was valued at ₹1,20,000 and Nyaya’s share of the same was to be adjusted through the capital accounts of remaining partners.
  2. Land and Building was to be increased by ₹50,000.
  3. Plant and Machinery will be depreciated by 10%.
  4. All debtors were found to be good, hence provision for bad debts was not required.
  5. Investments of ₹65,000 were unrecorded.
  6. Amount payable to Nyaya was transferred to his loan account.

Prepare Revaluation Account and Partners’ Capital Accounts on Nyaya’s retirement.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Revaluation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Plant & Machinery A/c20,000By Land & Building A/c50,000
To Gain on Revaluation transferred to:-
Naval’s Capital A/c 30,000
Nyaya’s Capital A/c 50,000
Nritya’s Capital A/c 20,000
1,00,000By Investment A/c65,000
By Provision for doubtful debt A/c5,000
1,20,0001,20,000

(½ × 5 = 2½ Marks)

Partners’ Capital A/c

Dr.Cr.
ParticularsNaval (₹)Nyaya (₹)Nritya (₹)ParticularsNaval (₹)Nyaya (₹)Nritya (₹)
To Nyaya’s Capital A/c … ½36,00024,000By Balance b/d2,00,0003,00,0005,00,000
To Nyaya’s Loan A/c … ½4,50,000By Revaluation A/c … ½30,00050,00020,000
To Balance c/d … ½2,18,0005,12,000By General Reserve A/c … ½24,00040,00016,000
By Naval’s Capital A/c … ½36,000
By Nritya’s Capital A/c … ½24,000
2,54,0004,50,0005,36,0002,54,0004,50,0005,36,000

(3½ Marks; 2½ + 3½ = 6 Marks)

Note: No Marks for balance b/d

Q140.2025 Supp. 67/S/1 · Q24(a)6 marks

Sia, Manav and Ajay were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Sia, Manav and Ajay as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors4,00,000Land and Building8,50,000
Bank Overdraft3,00,000Machinery6,00,000
Capitals :Investments2,00,000
Sia9,00,000Stock6,00,000
Manav8,00,000Debtors3,00,000
Ajay2,00,00019,00,000Bank1,00,000
Employee’s Provident Fund2,00,000Profit and Loss Account1,50,000
28,00,00028,00,000

On 31st March, 2024, Manav retired from the firm and the remaining partners decided to carry on the business. The assets and liabilities were revalued which resulted into a gain of ₹ 1,20,000 because of the increase in the value of Land and Building by the same amount.

  1. 40% of Land and Building were taken by retiring partner at revalued value.
  2. Goodwill of the firm be valued at ₹ 4,00,000. Sia and Ajay decided to share future profits and losses in the ratio of 3 : 2.
  3. The total capital of the new firm will be ₹ 20,00,000 which will be in proportion of the new profit sharing ratio of Sia and Ajay. For this, necessary cash was brought in or was paid off to the partners, as the case may be.

Prepare Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Dr.   Partners’ Capital Accounts   Cr.

ParticularsSia (₹)Manav (₹)Ajay (₹)ParticularsSia (₹)Manav (₹)Ajay (₹)
To Profit and Loss A/c [½]60,00060,00030,000By Balance b/d [½]9,00,0008,00,0002,00,000
To Land and Building A/c [½]3,88,000By Revaluation A/c [½]48,00048,00024,000
To Manav’s Capital A/c [1]80,00080,000By Sia’s Capital A/c [½]80,000
To Manav’s Loan A/c [½]5,60,000By Ajay’s Capital A/c [½]80,000
To Balance c/d [1]12,00,0008,00,000By Bank A/c [½]3,92,0006,86,000
13,40,00010,08,0009,10,00013,40,00010,08,0009,10,000

6 marks

Q141.2024 Main 67/1/1 · Q236 marks

Azhar, Sumit and Robit were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2023, was as follows :

Balance Sheet of Azhar, Sumit and Robit as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Creditors90,000Bank20,000
General Reserve60,000Stock40,000
Capitals :
 Azhar 60,000
 Sumit 40,000
 Robit 20,000



1,20,000
Debtors
Fixed Assets
1,50,000
60,000
2,70,0002,70,000

Robit died on 30th June, 2023. According to the Partnership deed, Robit’s legal representatives were entitled to :

  1. Balance in his Capital Account.
  2. His share of General Reserve.
  3. Interest on capital @ 10% p.a.
  4. His share of goodwill. Goodwill of the firm was valued on the basis of thrice the average of the past four years’ profits.
  5. His share in profits up to the date of death on the basis of the profit for the last year.

Profit for the previous years were :

Year₹
2019 – 20(3,000)
2020 – 2128,000
2021 – 2216,000
2022 – 2315,000

Prepare Robit’s Capital Account to be rendered to his legal representatives.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Dr. Robit’s Capital A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Robit’s Executor’s A/c / Legal Representatives A/c (½)41,650By Bal b/d (½)
By General Reserve A/c (1)
By Interest on Capital A/c (1)
By Azhar’s Capital A/c (1)
By Sumit’s Capital A/c (1)
By P&L Suspense A/c (1)
20,000
12,000
500
6,300
2,100
750
41,65041,650

= 6 marks

Working Notes:
(i) Goodwill = 3 × 56,000/4 = 42,000
Robit’s Share in firm’s Goodwill = 42,000 × 1/5 = 8,400
Gaining ratio between Azhar and Sumit = 3:1

(ii) Robit’s Share in the Profit upto the date of death = 15,000 × 1/5 × 3/12
= 750

NOTE: No marks to be awarded for the working note.

Q142.2024 Main 67/1/1 · Q26(b)6 marks

Rishi, Shashi and Trishi were partners in a firm sharing profits and losses in proportion of 1/2, 1/6 and 1/3 respectively. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Rishi, Shashi and Trishi as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
 Rishi 36,000
 Shashi 30,000
 Trishi 20,000



86,000
Fixed Assets
Stock
Debtors
Cash
80,000
20,000
30,000
40,000
General Reserve30,000
Creditors54,000
1,70,0001,70,000

Shashi retired from the firm on 1st April, 2023 on the following terms :

  1. Fixed Assets were valued at ₹56,000.
  2. Stock was taken over by Shashi at ₹26,000.
  3. Goodwill of the firm was valued at ₹18,000 on Shashi’s retirement
  4. Balance in Shashi’s Capital Account was transferred to her loan account.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Dr. REVALUATION A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Fixed Assets A/c ½24,000By Stock A/c ½
By Loss transferred to Partners Capital A/c: ½
 Rishi- 9,000
 Shashi- 3,000
 Trishi- 6,000
6,000


18,000
24,00024,000

(1½)

Dr. PARTNERS’ CAPITAL A/c Cr.

ParticularsRishi ₹Shashi ₹Trishi ₹ParticularsRishi ₹Shashi ₹Trishi ₹
To Revaluation A/c ½
To Stock A/c ½
To Shashi’s Capital A/c ½
To Shashi’s Loan A/c ½
To Bal c/d ½
9,000

1,800

40,200
3,000
26,000

9,000
6,000

1,200

22,800
By Bal b/d ½
By General Reserve A/c ½
By Rishi’s Capital A/c ½
By Trishi’s Capital A/c ½
36,000
15,000

30,000
5,000
1,800
1,200
20,000
10,000

51,00038,00030,00051,00038,00030,000

(4½)

= 6 marks

Q143.2024 Main 67/2/1 · Q25(b)6 marks

Ravi, Tanu and Sara were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Ravi retired from the firm due to his illness on 31st March, 2023. The Balance Sheet of the firm on that date was as follows :

Balance Sheet of Ravi, Tanu and Sara as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
Ravi 80,000
Tanu 1,24,000
Sara 66,000
2,70,000Fixed Assets
Stock
Debtors
Cash in hand
1,20,000
1,60,000
2,00,000
80,000
Profit and Loss
Employees’ Provident Fund
Creditors
1,70,000
20,000
1,00,000
5,60,0005,60,000

Additional Information :

  1. Creditors included a sum of ₹ 4,000 which was not likely to be claimed.
  2. A provision of 5% for doubtful debts was to be created on debtors.
  3. Goodwill of the firm was valued at ₹ 1,60,000.
  4. Fixed Assets were found overvalued by ₹ 5,000.
  5. New profit sharing ratio of Tanu and Sara was agreed at 2 : 3.
  6. The amount due to Ravi was transferred to his loan account.

Prepare Revaluation Account and Partners’ Capital Accounts on Ravi’s retirement.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Dr. Revaluation A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Provision for doubtful debts A/c (½)
To Fixed Assets A/c (½)
10,000
5,000
By Creditors A/c (½)
By Loss transferred to Partners’ Capital Accounts: (½)
Ravi 5,500
Tanu 3,300
Sara 2,200
4,000



11,000
15,00015,000

[2]

Dr. Partners’ Capital A/c Cr.

ParticularsRavi ₹Tanu ₹Sara ₹ParticularsRavi ₹Tanu ₹Sara ₹
To Revaluation A/c (½)
To Ravi’s Capital A/c (½)
To Ravi’s Loan A/c (1)
To Balance c/d (½)
5,500
-
2,39,500
-
3,300
16,000
-
1,55,700
2,200
64,000
-
33,800
By Balance b/d (½)
By Tanu’s Capital A/c } (½)
By Sara’s Capital A/c }
By Profit & Loss A/c (½)
80,000
16,000
64,000
85,000
1,24,000
-
-
51,000
66,000
-
-
34,000
2,45,0001,75,0001,00,0002,45,0001,75,0001,00,000

[4] = 6 marks

Working Notes:
Gaining Share = New share − Old share
Tanu = 2/5 − 3/10 = 1/10 (Gain)
Sara = 3/5 − 2/10 = 4/10 (Gain)
Gaining ratio of Tanu & Sara = 1 : 4

Note: No marks to be awarded for the working notes.

Q144.2024 Main 67/3/1 · Q26(b)6 marks

Inder, Jonny and Kapil were partners in a firm sharing profits and losses in the ratio of 9 : 3 : 4. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Inder, Jonny and Kapil as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital :
Inder 90,000
Jonny 75,000
Kapil 60,000
2,25,000Fixed Assets
Stock
Debtors
Cash
1,20,000
60,000
1,00,000
35,000
General Reserve
Creditors
80,000
10,000
3,15,0003,15,000

Kapil retired from the firm on 31st March, 2023 on the following terms :

  1. Bad Debts amounting to ₹ 5,000 were to be written off.
  2. Fixed Assets were revalued at ₹ 96,000.
  3. Stock was undervalued by ₹ 29,000.
  4. Creditors were paid off.
  5. Goodwill of the firm was valued at ₹ 80,000 and Kapil’s share of goodwill was to be adjusted in the accounts of Inder and Jonny.
  6. New profit sharing ratio between Inder and Jonny was 3 : 2.

Pass the necessary journal entries in the books of the firm on Kapil’s retirement.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Inder, Jonny and Kapil
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2023
March 31
General Reserve A/c Dr.
To Inder’s Capital A/c
To Jonny’s Capital A/c
To Kapil’s Capital A/c
(General reserve distributed among old partners in old ratio.)
80,000
45,000
15,000
20,000
(1)
”Bad Debts A/c Dr.
To Debtors A/c
(Bad debts written off.)
5,000
5,000
(1/2)
”Revaluation A/c Dr.
To Bad Debts A/c
(Bad debts transferred to Revaluation account.)
5,000
5,000
(1/2)
”Stock A/c Dr.
To Revaluation A/c
(Value of stock increased by ₹ 12,000.)
29,000
29,000
(1/2)
”Revaluation A/c Dr.
To Fixed Asset A/c
(Fixed assets reduced by ₹ 24,000.)
24,000
24,000
(1/2)
”Creditors A/c Dr.
To Cash A/c
(Creditors paid off.)
10,000
10,000
(1)
”Inder’s Capital A/c Dr.
Jonny’s Capital A/c Dr.
To Kapil’s Capital A/c
(Goodwill adjusted on retirement.)
3,000
17,000


20,000
(1)
”Kapil’s Capital A/c Dr.
To Kapil’s Loan A/c
(Kapil’s final balance in capital transferred to his loan account.)
1,00,000
1,00,000
(1)

= 6 marks

Q145.2024 Main 67/4/1 · Q24(b)6 marks

Prina, Qadir and Kian were partners in a firm sharing profits in the ratio of 7:2:1. On 31st March, 2023 their Balance Sheet was as follows :

Balance Sheet of Prina, Qadir and Kian as on 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Prina 9,60,000
Qadir 8,40,000
Kian 9,00,000



27,00,000
Land
Building
Furniture
Stock
12,00,000
9,00,000
3,60,000
6,60,000
General Reserve3,00,000Debtors 6,00,000
Less : Provision for doubtful debts 30,000

5,70,000
Workmen’s compensation Reserve5,40,000
Creditors3,60,000Cash at Bank2,10,000
39,00,00039,00,000

On the above date Qadir retired on the following terms :

  1. Goodwill of the firm was valued at ₹ 12,00,000.
  2. Land was to be appreciated by 30% and building was to be depreciated by ₹ 3,54,000.
  3. A provision of 6% is to be maintained on debtors.
  4. Liability for workmen’s compensation was determined at ₹ 1,40,000.
  5. Amount payable to Qadir was transferred to his loan account.
  6. Total capital of the new firm was fixed at ₹ 16,00,000 which will be adjusted according to their new profit ratio by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Building A/c ½
To Provision for doubtful debts A/c ½
3,54,000
6,000
By Land A/c ½3,60,000
3,60,0003,60,000

(1½)

Dr. Partners’ Capital A/c Cr.

ParticularsPrina (₹)Qadir (₹)Kian (₹)ParticularsPrina (₹)Qadir (₹)Kian (₹)
To Qadir’s Capital A/c ½2,10,000-30,000By balance b/d ½9,60,0008,40,0009,00,000
To Qadir’s Loan A/c ½12,20,000By Workmen Compensation Reserve A/c ½2,80,00080,00040,000
To Kian’s Current A/c ½7,40,000By Prina’s Capital A/c (goodwill)
By Kian’s Capital A/c (goodwill) ½
2,10,000
30,000
To Balance c/d ½14,00,000--2,00,000By General Reserve A/c ½2,10,00060,00030,000
By Prina’s Current A/c ½1,60,000
16,10,00012,20,0009,70,00016,10,00012,20,0009,70,000

(4½) (= 6 Marks)

Q146.2024 Main 67/5/1 · Q24(a)6 marks

Arnav, Bhavi and Chavi were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. On 31st March, 2023, their Balance Sheet was as follows :

Balance Sheet of Arnav, Bhavi and Chavi as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Plant & Machinery3,00,000
Arnav 1,80,000Furniture20,000
Bhavi 1,60,000Debtors 3,50,000
Chavi 1,00,0004,40,000Less : Provision for
Creditors2,50,000doubtful debts 20,0003,30,000
Cash in hand10,000
Profit and Loss Account30,000
6,90,0006,90,000

Chavi retired on the above date. It was agreed that :

  1. Plant and Machinery be valued at ₹ 4,30,000.
  2. The existing Provision for Bad Debts was to be increased by 50%.
  3. Chavi's share of Goodwill was valued at ₹ 80,000 and the same was to be treated without opening goodwill account.
  4. The total amount to be paid to Chavi was brought in by Arnav and Bhavi in such a way as to make their capitals in proportion to their new profit sharing ratio.

Prepare Revaluation Account and Partners' Capital Accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Dr. Revaluation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Provision for doubtful debts A/c (½)10,000By Plant and Machinery A/c (½)1,30,000
To Profit transferred to Partners’ Capital A/c’s: (½)
Arnav 60,000
Bhavi 40,000
Chavi 20,000
1,20,000
1,30,0001,30,000

(1½ marks)

Dr. Partners’ Capital Accounts Cr.

ParticularsArnav ₹Bhavi ₹Chavi ₹ParticularsArnav ₹Bhavi ₹Chavi ₹
To Chavi’s Capital A/c (½)48,00032,000-By Balance b/d (½)1,80,0001,60,0001,00,000
To Profit and Loss A/c (½)15,00010,0005,000By Revaluation A/c (½)60,00040,00020,000
To Cash A/c (½)--1,95,000By Arnav’s Capital A/c (½)--48,000
To Balance c/d (½)3,18,0002,12,000-By Bhavi’s Capital A/c (½)--32,000
By Cash A/c (½)1,41,00054,000-
3,81,0002,54,0002,00,0003,81,0002,54,0002,00,000

(4½ marks; = 6 marks)

Q147.2024 Supp. 67/S/1 · Q236 marks

Pankaj, Rajat and Samay were partners in a firm sharing profits and losses in the ratio of 7 : 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Pankaj, Rajat and Samay as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
  Pankaj 3,00,000
  Rajat 2,00,000
  Samay 1,00,000



6,00,000
Machinery2,10,000
General Reserve1,00,000Furniture1,00,000
Creditors1,70,000Stock1,50,000
Debtors1,60,000
Bank2,50,000
8,70,0008,70,000

Rajat died on 30th June, 2023. It was agreed between his executors and remaining partners that :

  1. Goodwill be valued at two years purchase of average profits of the previous four years which were ₹ 5,00,000.
  2. Share of profit up to the date of death will be on the calculated on the basis of average profits of the past four years. Rajat’s share of profit amounted to ₹ 25,000.
  3. Interest on capital is to be provided @ 10% p.a.
  4. Half the amount due to Rajat is to be paid immediately.

Prepare Rajat’s Capital Account and Rajat’s Executor’s Account as on 30th June, 2023.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Pankaj, Rajat and Samay

Rajat’s Capital A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Rajat’s Executor’s A/c [1]4,50,000By Balance b/d [½]2,00,000
By General Reserve A/c [1]20,000
By Pankaj’s Capital A/c (goodwill) [½]1,75,000
By Samay’s Capital A/c (goodwill) [½]25,000
By Profit & Loss Suspense A/c [1]25,000
By Interest on Capital A/c [½]5,000
4,50,0004,50,000

(5 marks)

Rajat’s Executor’s A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Bank A/c [½]2,25,000By Rajat’s Capital A/c4,50,000
To Balance c/d/
Rajat’s Executor’s Loan A/c [½]
2,25,000
4,50,0004,50,000

(1 mark)

=6 Marks

Q148.2024 Supp. 67/S/1 · Q26(b)6 marks

Trisha, Urvi and Varsha were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Trisha, Urvi and Varsha as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
  Trisha 2,00,000
  Urvi 1,30,000
  Varsha 1,00,000



4,30,000
Fixed Assets4,00,000
General Reserve1,50,000Stock1,00,000
Creditors2,70,000Debtors1,50,000
Cash2,00,000
8,50,0008,50,000

Trisha retired on 1st April, 2023 and the partners agreed to the following terms :

  1. Fixed Assets were found overvalued by ₹ 80,000.
  2. Stock was taken over by Trisha at ₹ 80,000.
  3. Goodwill of the firm was valued at ₹ 1,00,000 on Trisha’s retirement and Trisha’s share by goodwill was adjusted through the Capital Accounts of remaining partners.
  4. New profit sharing ratio between the remaining partners was agreed at 2 : 3.
  5. Trisha was paid ₹ 50,000 on retirement and the balance was transferred to her loan account.

Pass necessary journal entries in the books of the firm on Trisha’s retirement.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Trisha, Urvi and Varsha
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2023
April 1
General Reserve A/c Dr.
    To Trisha’s Capital A/c
    To Urvi’s Capital A/c
    To Varsha ’s Capital A/c
(General Reserve transferred to partners’ capital accounts in old ratio)
1,50,000



75,000
60,000
15,000
1
,,Revaluation A/c Dr.
    To Fixed Assets A/c
    To Stock A/c
(Fixed Assets and Stock revalued)
1,00,000


80,000
20,000
1
,,Trisha’s Capital A/c Dr.
Urvi’s Capital A/c Dr.
Varsha’s Capital A/c Dr.
    To Revaluation A/c
(Loss on revaluation transferred to partners’ capital accounts in old ratio)
50,000
40,000
10,000



1,00,000
1
,,Trisha’s Capital A/c Dr.
    To Stock A/c
(Stock taken over by Trisha)
80,000

80,000
1
,,Varsha’s Capital A/c Dr.
    To Trisha’s Capital A/c
(Trisha’s share of goodwill adjusted to capital account of the gaining partner)
50,000

50,000
1
,,Trisha’s Capital A/c Dr.
    To Cash A/c
    To Trisha’s Loan A/c
(Part payment made to Trisha and the balance transferred to her loan account)
1,95,000


50,000
1,45,000
1

=6 Marks

Q149.2023 Main 67/1/1 · Q24(b)6 marks

Reyansh, Aayushman and Sabhya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2022 was as under :

Balance Sheet of Reyansh, Aayushman and Sabhya as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors2,20,000Cash1,60,000
General Reserve1,20,000Debtors 1,80,000
Less : Provision for Doubtful Debts 20,000
1,60,000
Capitals :
Reyansh 6,00,000
Aayushman 5,00,000
Sabhya 3,00,000
14,00,000Stock
Machinery
2,00,000
6,00,000
Building
Patents
Profit and Loss A/c
4,00,000
1,20,000
1,00,000
17,40,00017,40,000

Reyansh retired on the above date and it was agreed that :

  1. Goodwill of the firm on Reyansh’s retirement was valued at ₹ 12,00,000.
  2. Aayushman and Sabhya will share future profits in the ratio of 2 : 3.
  3. An unrecorded creditor of ₹ 40,000 will be taken into account.
  4. Debtors of ₹ 30,000 will be written off as bad debts.
  5. Amount payable to Reyansh was to be transferred to his loan amount.

Pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Books of Reyansh, Aayushman and Sabhya — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2022
March 31
Aayushman’s Capital A/c Dr.1,20,0001
Sabhya’s Capital A/c Dr.4,80,000
    To Reyansh’s Capital A/c6,00,000
(Adjustment for goodwill in gaining ratio without opening goodwill account)
,,General Reserve A/c Dr.1,20,000½
    To Reyansh’s Capital A/c60,000
    To Aayushman’s Capital A/c36,000
    To Sabhya’s Capital A/c24,000
(General reserve distributed among partners)
,,Reyansh’s Capital A/c Dr.50,000½
Aayushman’s Capital A/c Dr.30,000
Sabhya’s Capital A/c Dr.20,000
    To Profit and Loss A/c1,00,000
(Accumulated losses shared by partners in old ratio)
,,Revaluation A/c Dr.40,0001
    To Sundry Creditors A/c40,000
(Unrecorded creditors taken into account)
,,Bad debts A/c Dr.30,000½
    To Debtors A/c30,000
(₹ 30,000 written off as bad debts)
,,Provision for doubtful debts A/c Dr.20,0001
Revaluation A/c Dr.10,000
    To Bad debts A/c30,000
(Bad debts transferred to provision for doubtful debts and revaluation account)
,,Reyansh’s Capital A/c Dr.25,000½
Aayushman’s Capital A/c Dr.15,000
Sabhya’s Capital A/c Dr.10,000
    To Revaluation A/c50,000
(Loss on revaluation transferred to partners’ capital accounts in old ratio)
,,Reyansh’s Capital A/c Dr.11,85,0001
    To Reyansh’s Loan A/c11,85,000
(Amount due to Reyansh transferred to his loan account)

(= 6 marks)

Workings:
Calculation of gaining ratio
Share gained = New share – Old Share
Aayushman: 2/5 – 3/10 = 1/10
Sabhya: 3/5 – 2/10 = 4/10
Gaining ratio is 1:4

Amount to be transferred to Reyansh’s loan account
6,00,000 + 6,00,000 + 60,000 – 50,000 – 25,000
= ₹ 11,85,000

(Note: No marks to be deducted for not showing workings)

Q150.2023 Main 67/2/1 · Q26(b)6 marks

Radhika, Ridhima and Rupanshi were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31st March, 2022, their balance sheet was as follows :

Balance Sheet of Radhika, Ridhima and Rupanshi as on 31.3.2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors60,000Cash50,000
General Reserve40,000Stock80,000
Capitals :
Radhika 3,00,000
Ridhima 2,00,000
Rupanshi 1,00,000



6,00,000
Debtors
Investments
Buildings
40,000
30,000
5,00,000
7,00,0007,00,000

Ridhima retired on the above date and it was agreed that :

  1. Goodwill of the firm be valued at ₹3,00,000.
  2. Building was valued at ₹6,20,000.
  3. Capital of the new firm was fixed at ₹5,00,000, which will be in the new profit sharing ratio of the partners ; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

Prepare Revaluation Account and Partners' Capital Accounts on Ridhima's retirement.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Revaluation A/c

Dr
Particulars
Amount ₹ParticularsCr
Amount ₹
To Profit transferred to Partners' Capital A/c's
Radhika 36,000
Ridhima 60,000
Rupanshi 24,000



1,20,000
By Building A/c1,20,000
1,20,0001,20,000

(½×2 = 1 Mark)

Partners' Capital A/c

Dr
Particulars
Radhika ₹Ridhima ₹Rupanshi ₹ParticularsRadhika ₹Ridhima ₹Cr
Rupanshi ₹
To Ridhima's Capital A/c [½]90,000-60,000By balance b/d3,00,0002,00,0001,00,000
To Ridhima's Loan A/c [½]4,30,000By Revaluation A/c [½]36,00060,00024,000
To Balance c/d [½]3,00,0002,00,000By Radhika's Capital A/c (goodwill)90,000
By Rupanshi's Capital A/c (goodwill) [½]60,000
By General Reserve A/c [½]12,00020,0008,000
By Radhika's Current A/c [1]42,000
By Rupanshi's Current A/c [1]1,28,000
3,90,0004,30,0002,60,0003,90,0004,30,0002,60,000

Note- No marks for balance b/d

(5 Marks) (1+5 = 6 Marks)

Q151.2023 Main 67/3/1 · Q24(b)6 marks

Anita, Geeta and Sita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follow :

Balance Sheet of Anita, Geeta and Sita as at 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :Land and Building4,80,000
  Anita2,00,000Investments1,20,000
  Geeta2,00,000Debtors1,50,000
  Sita1,00,0005,00,000Less Provision10,0001,40,000
General Reserve30,000Stock1,20,000
Creditors5,00,000Cash at Bank1,70,000
10,30,00010,30,000

On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities as follows :

  1. Goodwill of the firm was valued at ₹ 3,00,000.
  2. Land and Building was to be appreciated by ₹ 1,23,000.
  3. Bad debts amounted to ₹ 20,000. A provision for doubtful debts was to be maintained at 10% on debtors.
  4. Anita was paid ₹ 80,000 immediately by cheque. The balance amount was transferred to her loan account which was to be paid in two equal annual instalments along with interest @ 10% p.a.

Prepare Revaluation Account and Partners’ Capital Accounts on Anita’s retirement.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

REVALUATION A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Bad Debts A/c (½)10,000By Land & Building A/c (½)1,23,000
To Provision for Doubtful Debts A/c (½)13,000
To Profit transferred to Partners Capital A/c’s: (½)
  Anita – 40,000
  Geeta – 40,000
  Sita – 20,000
1,00,000
1,23,0001,23,000

(2)

PARTNERS’ CAPITAL A/c

ParticularsAnita ₹Geeta ₹Sita ₹ParticularsAnita ₹Geeta ₹Sita ₹
To Anita’s Capital A/c-80,00040,000By Bal b/d2,00,0002,00,0001,00,000
To Bank A/c80,000--By General Reserve A/c12,00012,0006,000
To Anita’s Loan A/c2,92,000--By Geeta’s Capital A/c80,000--
To Bal c/d-1,72,00086,000By Sita’s Capital A/c40,000--
By Revaluation A/c40,00040,00020,000
3,72,0002,52,0001,26,0003,72,0002,52,0001,26,000

½ × 8; No Marks for Bal b/d (4) = 6 marks

Q152.2023 Main 67/3/1 · Q256 marks

Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows :

Balance Sheet of Trisha, Anisha and Rishika as at 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :Plant and Machinery5,00,000
  Trisha3,00,000Stock1,00,000
  Anisha2,00,000Debtors60,000
  Rishika1,00,0006,00,000Cash at Bank40,000
General Reserve50,000
Creditors50,000
7,00,0007,00,000

Trisha died on 31st July, 2022. According to the partnership deed, the executors of the deceased partner were entitled to :

  1. Balance in partner’s capital account.
  2. Salary @ ₹ 15,000 per quarter.
  3. Share of goodwill calculated on the basis of twice the average of past three year’s profits.
  4. Share of profits from the closure of the last accounting year till the date of death on the basis of last year’s profit. Profit for 2019 – 20, 2020 – 21 and 2021 – 22 were ₹ 1,00,000, ₹ 2,00,000 and ₹ 1,50,000 respectively.
  5. Trisha withdrew ₹ 20,000 on 1st May, 2022 for her personal use.

Showing your working clearly, prepare Trisha’s Capital Account to be rendered to her executors.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Trisha’s Capital A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Drawings A/c20,000By Bal b/d3,00,000
To Trisha’s Executors A/c4,60,000By General Reserve A/c20,000
By Salary to Trisha20,000
By Anisha’s Capital A/c80,000
By Rishika’s Capital A/c40,000
By P&L Suspense A/c20,000
4,80,0004,80,000

½ × 8 (4)

Working Notes:

(i) Share of Profit = 1,50,000 × 4/12 × 2/5 = ₹20,000 (½)

(ii) Goodwill of the Firm = 4,50,000/3 × 2 = ₹3,00,000
Trisha’s share of Goodwill = 3,00,000 × 2/5 = ₹1,20,000 (1)

(iii) Salary to Trisha = 15,000 + 15,000/3 = ₹20,000 (½)

= 6 marks

Q153.2023 Main 67/4/1 · Q25(b)6 marks

Anna, Bina and Teena were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet on 31st March, 2022 was as follows :

Balance Sheet of Anna, Bina and Teena as at 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Creditors66,000Furniture1,12,000
Bills Payable59,000Stock1,77,000
Debtors 2,80,000
Capitals :Less – provision for
Anna 2,00,000bad debts 7,0002,73,000
Bina 2,00,000Cash63,000
Teena 1,00,0005,00,000
6,25,0006,25,000

On the above date, Anna retired on the following terms :

  1. Goodwill of the firm was valued at ₹ 60,000 and Anna’s share of goodwill was adjusted through the capital accounts of remaining partners.
  2. Furniture was depreciated by ₹ 10,000.
  3. Anna was to be paid through cash brought in by Bina and Teena in such a way as to make their capitals proportionate to their new profit sharing ratio of 1 : 1.

Prepare Revaluation and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Revaluation A/c

Dr.
Particulars
Amount (₹)ParticularsCr.
Amount (₹)
To Furniture A/c (½)10,000By Loss transferred to Partners’ Capital Accounts : (½)
Anna 5,000
Bina 3,000
Teena 2,000



10,000
10,00010,000

[1 mark]

Partners’ Capital A/c

Dr.
Particulars
Anna ₹Bina ₹Teena ₹ParticularsAnna ₹Bina ₹Cr.
Teena ₹
To Revaluation A/c (Loss) (½)5,0003,0002,000By Balance b/d (½)2,00,0002,00,0001,00,000
To Anna’s Capital A/c (½)12,00018,000By Bina’s Capital A/c12,000
To Balance c/d2,25,0001,85,00080,000By Teena’s Capital A/c (1 for both)18,000
2,30,0002,00,0001,00,0002,30,0002,00,0001,00,000
To Cash A/c/ Bank A/c (1)2,25,000By Balance b/d2,25,0001,85,00080,000
To Balance c/d (½)---2,45,0002,45,000By Cash A/c/ Bank A/c (1)---60,0001,65,000
2,25,0002,45,0002,45,0002,25,0002,45,0002,45,000

[5 marks] 1+5=6 marks

Working note:

  1. Gaining Ratio of Bina and Teena= 2:3
  2. Calculation of new capitals of remaining partners:
Adjusted Capital of Bina1,85,000
+ Adjusted Capital of Teena80,000
+ Amount payable to Anna2,25,000
Total Capital of new firm4,90,000
New Capital of Bina2,45,000
New Capital of Teena2,45,000

Note: No marks for working notes.

Q154.2023 Main 67/5/1 · Q24(a)6 marks

Kamal, Rahul and Neeraj were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2022, their Balance Sheet was as under :

Balance Sheet of Kamal, Rahul and Neeraj as on 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Kamal 1,20,000
Rahul 1,20,000
Neeraj 1,20,000



3,60,000
Land and Building
Plant and Machinery
Stock
Debtors
1,70,000
2,60,000
1,00,000
80,000
General Reserve1,20,000Cash50,000
Sundry Creditors1,80,000
6,60,0006,60,000

On the above date, Rahul retired and following terms were agreed upon :

  1. Goodwill of the firm was valued at ₹ 3,50,000.
  2. An item of ₹ 10,000 included in Sundry creditors is not likely to be claimed and hence written off. Stock was valued at ₹ 90,000.
  3. Capital of the new firm was fixed at ₹ 2,10,000 and the same will be adjusted in the profit sharing ratio of the remaining partners. For this purpose the required cash will be brought in or paid off as the case may be.
  4. Amount payable to Rahul will be transferred to his loan account.

Prepare Revaluation Account and Partners’ Capital Accounts on Rahul’s retirement.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Revaluation Account

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Stock (½)10,000By Creditors (½)10,000
10,00010,000

(1 mark)

Partners’ Capital Accounts

Dr.
Particulars
Kamal (₹)Rahul (₹)Neeraj (₹)Cr.
Particulars
Kamal (₹)Rahul (₹)Neeraj (₹)
To Rahul’s Capital A/c (½)75,00030,000By balance b/d (½)1,20,0001,20,0001,20,000
To Rahul’s Loan A/c (½)2,61,000By General Reserve A/c (1)60,00036,00024,000
To Cash A/c (½)54,000By Kamal’s Capital A/c (½)75,000
By Neeraj’s Capital A/c (½)30,000
To balance c/d (½)1,50,00060,000By Cash A/c (½)45,000
2,25,0002,61,0001,44,0002,25,0002,61,0001,44,000

(5 marks)

(1 + 5 = 6 marks)

Q155.2023 Supp. 67/C/1 · Q26(b)6 marks

B, P and T were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.03.2022, their Balance Sheet was as follows :

Balance Sheet of B, P and T as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,40,000Bank1,44,000
General Reserve2,00,000Stock66,000
Workmen’s Compensation Fund90,000Debtors 1,50,000
Less : Provision for Doubtful Debts 20,000
1,30,000
Capitals :
B 4,00,000
P 2,00,000
T 1,00,000
7,00,000Furniture70,000
Machinery2,20,000
Land and Building5,00,000
11,30,00011,30,000

On the above date, B retired from the firm on the following terms :

  1. Goodwill of the firm will be valued at ₹ 3,60,000 and B’s share will be adjusted without opening goodwill account.
  2. Furniture will be reduced to ₹ 60,000.
  3. A claim of ₹ 1,00,000 was admitted for workmen’s compensation.
  4. B was paid ₹ 20,000 through a cheque and the balance was transferred to his loan account.

Prepare Revaluation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Revaluation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Furniture A/c10,000By Loss transferred to Partners’ Capital A/c
B ₹10,000
P ₹6,000
B ₹4,000
20,000
To Workmen’s Compensation Claim A/c10,000
20,00020,000

½ x 3 = 1 ½ marks

Partners’ Capital Accounts

Dr.
Particulars
B (₹)P (₹)T (₹)Cr.
Particulars
B (₹)P (₹)T (₹)
To Revaluation A/c10,0006,0004,000By balance b/d4,00,0002,00,0001,00,0000
To B’s Capital A/c-1,08,00072,000By General Reserve A/c1,00,00060,00040,000
To Bank A/c20,000--By P’s Capital A/c1,08,000--
To B’s Loan A/c6,50,000--By T’s Capital A/c72,000--
To balance c/d-1,46,00064,000
6,80,0002,60,0001,40,0006,80,0002,60,0001,40,000

½ x 9 = 4 ½ marks = 6 marks

Transcribed as printed in the marking scheme, which has two apparent typos: the third partner in the Revaluation A/c loss split is printed as “B ₹4,000” (this should be T), and T’s opening balance is printed as “1,00,0000” (₹1,00,000).

Q156.SQP 2025-26 · Q246 marks

Alok, Deepak and Manish were partners sharing Profit &Loss in the ratio 5:3:2. Deepak retired on March 31, 2025. On this date his dues after all adjustments related to Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment came out to be ₹ 6,40,000. He was paid ₹ 40,000 through Furniture on retirement and it was agreed to pay balance in three equal annual instalments together with interest as per the rate permissible by act, in the absence of any agreement. First instalment being paid on March 31, 2026. You are required to pass entry for immediate payment to Deepak on retirement and prepare Deepak’s Loan Account till it is finally closed.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
March 31, 2025Deepak’s Capital A/c Dr.
To Furniture A/c
To Deepak’s Loan A/c
(Being Deepak’s Capital account settled)
6,40,000
40,000
6,00,000

Dr. Deepak’s Loan A/c Cr.

DateParticularsAmountDateParticularsAmount
Mar. 31 2026Bank A/c
Balance c/d
2,36,000
4,00,000
Apr.01, 2025
Mar. 31, 2026
Deepak’s Capital A/c
Interest A/c
6,00,000
36,000
6,36,0006,36,000
Mar. 31 2027Bank A/c
Balance c/d
2,24,000
2,00,000
Apr.01, 2026
Mar. 31, 2027
Balance b/d
Interest A/c
4,00,000
24,000
4,24,0004,24,000
Mar. 31 2028Bank A/c2,12,000Apr.01, 2027
Mar. 31, 2028
Balance b/d
Interest A/c
2,00,000
12,000
2,12,0002,12,000
Q157.SQP 2025-26 · Q25(b)6 marks

Aman, Barman and Raman were partners sharing Profits & Losses in the ratio 5:3:2. Their Balance Sheet on March 31, 2025 was as follows

LiabilitiesAmount (₹)AssetsAmount (₹)
Aman’s Capital80,000Bank30,000
Barman’s Capital70,000Building1,00,000
Raman’s Capital50,000Furniture60,000
Workmen Compensation Reserve50,000Debtors50,000
Accumulated Depreciation on Building20,000Stock40.000
Profit and Loss40,000Prepaid Expenses20.000
Creditors25,000Deferred Revenue Exp.20.000
Outstanding Expenses15,000Goodwill30.000
3,50,0003,50,000

On the above date Barman retired and his share was acquired by Aman and Raman equally. Following agreements were agreed upon:-

  1. Create Provision for doubtful debts @ 10%.
  2. Market value of Building is ₹1,00,000 and Furniture was overvalued by 20%.
  3. Stock was valued at ₹ 55,000. Creditors of ₹ 15,000 took over stock of ₹ 10,000 in settlement of their claims.
  4. Goodwill of the firm was valued at ₹ 80,000.
  5. Prepaid Expenses are worthless and Outstanding Expenses are now ₹20,000.
  6. ₹ 20,000 was immediately paid to Barman on retirement brought in Aman and Raman in ratio 3:2.

Prepare Revaluation Account and Partner’s Capital Account at the time of retirement of partner.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Dr. Revaluation Account Cr.

ParticularsAmountParticularsAmount
Furniture10,000Building20,000
Prepaid Expenses20.000Stock15,000
Prov. For doubtful debts5,000Creditors5,000
Outstanding Expenses5,000
40,00040,000

Dr. Partner’s Capital Account Cr.

ParticularsAmanBarmanRamanParticularsAmanBarmanRaman
Def. Rev. Exp.10,0006,0004,000Balance b/d80,00070,00050,000
Goodwill15,0009,0006,000WCR25,00015,00010,000
Barman’s Cap.12,000--12,000Profit and Loss20,00012,0008,000
Cash20,000Aman’s Capital12,000
Barman’s Loan86,000Raman’s Capital12,000
Bal c/d1,00,00054,000Cash12,0008,000
1,37,0001,21,00076,0001,37,0001,21,00076,000
Q158.SQP 2026-27 · Q25(b)6 marks

A, B and C were partners in a firm sharing profits in 2:2:1 ratio. On 31.3.2026, C retires from the firm. On the date of C’s retirement, the Balance Sheet of the firm was as follows:

Balance Sheet of A, B and C
as at 31.3.2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors54,000Bank45,000
General Reserve10,000Debtor 12,000
Less: Provision for doubtful debts 800

11,200
Outstanding Rent4,400
Provision for Legal Claim12,000Stock18,000
Capitals:
A 92,000
B 60,000
C 40,000



1,92,000
Furniture
Premises
Goodwill
8,200
1,80,000
10,000
2,72,4002,72,400

On C's retirement the goodwill of the firm was valued at ₹ 45,000.

After retirement the accountants of the firm worked out the following balance sheet, but they misplaced the papers on which Revaluation A/c and Partners’ Capital were worked out.

Balance Sheet of A and B (After C’s retirement)
as at 31.3.2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors54,000Bank34,600
General Reserve5,000Debtor 12,000
Less: Provision for doubtful debts 600

11,400
Outstanding Rent4,400
Provision for Legal Claim14,400Stock16,200
C’s Loan40,000Furniture10,200
Capitals:
A 87,800
B 55,800


1,43,600
Premises1,89,000
2,61,4002,61,400

On the basis of above information, you are required to help the accountants of the firm in preparing Revaluation A/c, and Partners Capital Accounts of the reconstituted firm.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Dr. Revaluation A/c Cr.

Particulars(₹)Particulars(₹)
To Provision for Legal Claim2400By provision for doubtful debts200
To Stock1800By furniture2,000
To Partners’ Capital A/c
A 2,800
B 2,800
C 1,400



7,000
By premises9,000
11,20011,200

Dr. Partners’ Capital A/c Cr.

ParticularsA (₹)B (₹)C (₹)ParticularsA (₹)B (₹)C (₹)
To Goodwill4,0004,0002,000Balance b/d92,00060,00040,000
To C’s capital500500General Reserve2,0002,0001,000
To C’s capital4,5004,500By A’s capital4,500
To Bank10,400By B’s capital4,500
To C loan40,000By Revaluation2,8002,8001,400
To balance c/d87,80055,800By A’s capital500
By B’s capital500
96,80064,80052,40096,80064,80052,400
Part A · Partnership

6. Dissolution of a Partnership Firm

Q1.2026 Main 67/1/1 · Q141 mark

Sidhi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 31st March, 2025 their firm was dissolved. At the time of dissolution a debtor amounting to ₹25,000 whose debt had been previously written off as bad debt paid 40% of the amount. The accounting treatment for the above transaction will be :

  1. ₹10,000 will be credited to bad debts recovered account.
  2. ₹10,000 will be credited to the debtor’s personal account.
  3. ₹10,000 will be credited to realisation account.
  4. ₹10,000 will be credited to bad debts account.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹10,000 will be credited to realisation account.

Q2.2026 Main 67/2/1 · Q51 mark

In case of dissolution of a partnership firm, the losses, including deficiencies of capital, shall be paid first :

  1. by partners individually and equally
  2. by partners individually in their profit sharing ratio
  3. out of capital of the partners
  4. out of profits
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) out of profits

Q3.2026 Main 67/2/1 · Q8(b)1 mark

On the dissolution of the partnership firm of Puneet and Binny, an unrecorded asset of ₹ 56,000 was given to an unrecorded creditor of ₹ 70,000 in settlement of his claim of ₹ 50,000 and the balance was paid to him in cash. Realisation Account will be _____ by _____.

  1. debited, ₹ 20,000
  2. credited, ₹ 20,000
  3. debited, ₹ 14,000
  4. credited, ₹ 14,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) debited, ₹ 20,000

Q4.2026 Main 67/3/1 · Q141 mark

On 31st March, 2025, the partnership between Hari and Om was dissolved. Hari was appointed to look after dissolution work for which he was allowed a commission of ₹9,700. He agreed to bear the dissolution expenses. The actual expenses of dissolution amounted to ₹8,900 which were paid by Hari’s friend, Bhanu on his behalf. The amount debited to Realisation Account will be :

  1. ₹9,700
  2. ₹8,900
  3. ₹10,000
  4. Nil
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) ₹9,700

Q5.2026 Main 67/4/1 · Q111 mark

Dinesh, Siddharth and Naina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025, they decided to dissolve the firm. On this date, the firm had debtors amounting to ₹ 2,10,000 and provision for doubtful debts of ₹ 20,000. On dissolution, debtors of ₹ 10,000 proved bad and the remaining debtors realised 90%. Amount realised from debtors will be :

  1. ₹ 1,71,000
  2. ₹ 2,00,000
  3. ₹ 1,80,000
  4. ₹ 1,89,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 1,80,000

Q6.2026 Main 67/5/1 · Q151 mark

Sushil and Sapna were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, the firm was dissolved. On the date of dissolution there existed a balance of ₹1,20,000 in sundry creditors account. The sundry creditors were payable after three months. They were paid immediately at a discount of 12% p.a. The amount paid to sundry creditors was :

  1. ₹1,20,000
  2. ₹1,23,600
  3. ₹1,16,400
  4. ₹1,34,400
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) ₹1,16,400

Q7.2026 Supp. 67/7/1 · Q51 mark

Assertion (A) : At the time of dissolution of partnership firm, Realisation Account is prepared.

Reason (R) : When the firm is dissolved, its books of accounts are to be closed and the profit or loss arising on realisation of its assets and discharge of its liabilities is to be computed.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, but Reason (R) is false.
  4. Assertion (A) is false, but Reason (R) is true.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Q8.2026 Supp. 67/7/1 · Q141 mark

Hina, Sia and Anu were partners in a firm, sharing profits and losses in the ratio of 2 : 3 : 4. The firm was dissolved on 31st March, 2025. Hina was appointed to look after the dissolution work for which she was allowed a remuneration of ₹ 30,000. Hina agreed to bear realisation expenses. Actual realisation expenses amounted to ₹ 35,000, which were paid by Hina. For realisation expenses, the Realisation Account will be debited by :

  1. ₹ 30,000
  2. ₹ 5,000
  3. ₹ 65,000
  4. ₹ 35,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) ₹30,000

Q9.2025 Main 67/1/1 · Q141 mark

Arushi, Vivaan and Mitali were partners in a firm. On 31st March 2024, the firm was dissolved. On that date the firm had debtors of ₹ 60,000 and provision for doubtful debts of ₹ 3,000 were existing in the books. Debtors of ₹ 8,000 proved bad and full amount was realised from the remaining debtors. The amount realised from debtors was :

  1. ₹ 60,000
  2. ₹ 55,000
  3. ₹ 52,000
  4. ₹ 49,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) ₹ 52,000

Q10.2025 Main 67/2/1 · Q31 mark

Wayne, Shaan and Bryan were partners in a firm. Shaan had advanced a loan of ₹ 1,00,000 to the firm. On 31st March, 2024 the firm was dissolved. After transferring various assets (other than cash & bank) and outside liabilities to Realisation Account, Shaan took over furniture of book value of ₹ 90,000 in part settlement of his loan amount. For the payment of balance amount of Shaan's loan Bank Account will be credited with :

  1. ₹ 1,00,000
  2. ₹ 90,000
  3. ₹ 1,90,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) ₹10,000

Q11.2025 Main 67/4/1 · Q31 mark

White, Shaun and Todd were partners in a firm sharing profits and losses equally. Shaun’s wife had advanced a loan of ₹ 1,00,000 to the firm. The firm was dissolved. Shaun’s wife’s loan had already been transferred to Realisation account. The account credited to discharge Shaun’s wife’s loan will be :

  1. Shaun’s capital account
  2. Bank account
  3. Realisation account
  4. Shaun’s loan account
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(B) Bank A/c

Q12.2025 Main 67/5/1 · Q31 mark

On dissolution of a firm, there was an unrecorded asset of ₹ 15,000 which was taken over by a partner at ₹ 13,000. Partner’s capital account will be debited by :

  1. ₹ 15,000
  2. ₹ 28,000
  3. ₹ 2,000
  4. ₹ 13,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) ₹13,000

Q13.2025 Main 67/5/1 · Q101 mark

On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses ₹ 17,000 were paid by a debtor of ₹ 75,000 on behalf of the firm. The remaining amount was received from him along with interest of ₹ 2,000 for delayed payment. Realisation Account will be ___________ by ___________.

  1. debited, ₹ 17,000
  2. credited, ₹ 50,000
  3. debited, ₹ 77,000
  4. credited, ₹ 60,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) credited, ₹60,000

Q14.2025 Main 67/5/1 · Q15(a)1 mark

On 1st April, 2024, the Balance Sheet of Radha and Mohan showed a loan of ₹ 10,000 given by Mohan to the firm. The firm was dissolved on this date. Mohan’s loan will be discharged by crediting which of the following account ?

  1. Realisation Account
  2. Mohan’s Capital Account
  3. Mohan’s Current Account
  4. Bank Account
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) Bank A/c

Q15.2025 Main 67/6/1 · Q101 mark

In the event of dissolution of a partnership firm, the order of payment of losses including deficiencies of capital shall be :

  1. (i) First out of profits, (ii) Next by the partners individually in their profit sharing ratio, (iii) Lastly, if necessary, out of capital of partners.
  2. (i) First out of capital of partners, (ii) Next out of profits, (iii) Lastly, if necessary, by the partners individually in their profit sharing ratio.
  3. (i) First by the partners individually in their profit sharing ratio, (ii) Next out of profits, (iii) Lastly, if necessary, out of capital of partners.
  4. (i) First out of profits, (ii) Next out of capital of partners, (iii) Lastly, if necessary, by the partners individually in their profit sharing ratio.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) (i) First out of profits, (ii) Next out of capital of partners, (iii) Lastly, if necessary, by the partners individually in their profit sharing ratio.

Q16.2025 Main 67/7/1 · Q8(a)1 mark

Sandhya and Suman were partners in a firm sharing profits and losses in the ratio of 3 : 5. They decided to dissolve the firm on 31st March, 2024. On the date of dissolution, the Balance Sheet of the firm showed a balance of ₹80,000 in sundry debtors and a balance of ₹5,000 in provision for bad debts account. How much amount will be transferred to Realisation Account to close Sundry Debtors Account ?

  1. ₹75,000
  2. ₹85,000
  3. ₹80,000
  4. ₹90,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) ₹80,000

Q17.2025 Main 67/7/1 · Q8(b)1 mark

Dev, Bhudev and Shamdev were partners in a firm sharing profits equally. On 31st March, 2024, their firm was dissolved. On this date the bank account showed a credit balance of ₹10,000 and there was a debit balance of ₹15,000 in the cash account. All payments were settled by cheque. Ravi, a creditor of ₹2,000 was not having any bank account, therefore he was paid in cash. Afterwards the cash account was closed by depositing the balance of cash into the bank. The journal entry for closing cash account will be :

  1. Debit Cash A/c by ₹10,000 and Credit Bank account by ₹10,000
  2. Credit Cash A/c by ₹10,000 and Debit Bank account by ₹10,000
  3. Debit Bank A/c by ₹13,000 and Credit Cash account by ₹13,000
  4. Debit Cash A/c by ₹13,000 and Credit Bank account by ₹13,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Debit Bank A/c by ₹13,000 and Credit Cash account by ₹13,000.

Q18.2025 Main 67/7/1 · Q10(a)1 mark

Which of the following will not result in compulsory dissolution of a partnership firm ?

  1. When all partners or all but one partner become insolvent.
  2. When the business of the firm becomes illegal.
  3. When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership.
  4. When a partner dies.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) When a partner dies.

Q19.2025 Main 67/7/1 · Q10(b)1 mark

Which of the following will result in dissolution of a partnership firm ?

  1. Death of a partner.
  2. Insolvency of a partner.
  3. When the business of the firm becomes illegal.
  4. Expiry of the period of partnership.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) When the business of the firm becomes illegal.

Q20.2025 Supp. 67/S/1 · Q101 mark

On the dissolution of the partnership firm of Gauri and Gaurav, Building appeared in the books at ₹ 21,00,000. One-third of the Building was taken by Gaurav at 20% discount and the remaining was sold at 10% profit. The value at which the Building was taken over by Gaurav was :

  1. ₹ 15,40,000
  2. ₹ 21,00,000
  3. ₹ 5,60,000
  4. ₹ 7,00,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) ₹5,60,000

Q21.2024 Main 67/1/1 · Q31 mark

Aavya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹50,000 at ₹45,000 in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be :

  1. ₹10,000
  2. ₹50,000
  3. ₹45,000
  4. ₹15,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) ₹15,000

Q22.2024 Main 67/2/1 · Q61 mark

At the time of dissolution of a firm, the total assets were ₹ 6,00,000 and outside liabilities were ₹ 2,40,000. If assets realised ₹ 7,20,000 and realisation expenses of ₹ 8,000 were paid, the profit or loss on realisation will be :

  1. Loss ₹ 1,20,000
  2. Profit ₹ 1,20,000
  3. Loss ₹ 1,12,000
  4. Profit ₹ 1,12,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) Profit ₹1,12,000

Q23.2024 Main 67/2/1 · Q91 mark

Assertion (A) : The court does not intervene when dissolution of partnership takes place.

Reason (R) : Dissolution of partnership takes place by mutual agreement between the partners.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) is incorrect.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) Both Assertion (A) and Reason (R) are correct, and Reason (R) is correct explanation of Assertion (A)

Q24.2024 Main 67/3/1 · Q3(a)1 mark

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹ 80,000 at 80%, in part settlement of their amount of ₹ 90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be :

  1. ₹ 26,000
  2. ₹ 64,000
  3. ₹ 80,000
  4. ₹ 1,44,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) ₹ 26,000

Q25.2024 Main 67/3/1 · Q3(b)1 mark

Sanya, Sarthak and Nitya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. They decided to dissolve the firm on 31st March, 2023. On this date, the firm had debtors amounting to ₹ 3,00,000 and provision for doubtful debts of ₹ 30,000. On dissolution, debtors for ₹ 20,000 proved bad and the remaining debtors realised 90%. Amount realised from the debtors will be :

  1. ₹ 3,00,000
  2. ₹ 2,25,000
  3. ₹ 2,80,000
  4. ₹ 2,52,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(D) ₹ 2,52,000

Q26.2024 Main 67/4/1 · Q131 mark

On the dissolution of a partnership firm there were debtors of ₹ 34,000. Debtors of ₹ 1,000 became bad and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realisation from debtors ?

  1. Realisation A/c by ₹ 33,000
  2. Profit & Loss A/c by ₹ 1,000
  3. Cash A/c by ₹ 19,800
  4. Debtors A/c by ₹ 14,200
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) Cash A/c by ₹19,800

Q27.2024 Main 67/5/1 · Q91 mark

On dissolution of a partnership firm, if realisation expenses are paid by the firm on behalf of a partner, then such expenses are debited to which of the following account :

  1. Realisation Account
  2. Partner's Capital Account
  3. Partner's Loan Account
  4. Bank Account
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) Partner’s Capital Account

Q28.2024 Main 67/5/1 · Q16(b)1 mark

Pawan, a partner was appointed to look after the process of dissolution of firm for which he was allowed a remuneration of ₹ 75,000. Pawan agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 60,000 were paid by Pawan. Pawan's capital account will be credited by :

  1. ₹ 75,000
  2. ₹ 60,000
  3. ₹ 15,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A) ₹75,000

Q29.2024 Supp. 67/S/1 · Q31 mark

Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be :

  1. ₹ 5,000
  2. ₹ 6,000
  3. ₹ 54,000
  4. Nil
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) ₹6,000

Q30.2024 Supp. 67/S/1 · Q121 mark

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Court does not intervene in case of dissolution of partnership.

Reason (R) : Dissolution of partnership takes place by mutual agreement among partners.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) Both Assertion(A) and Reason(R) are correct and Reason (R) is the correct explanation of Assertion(A).

Q31.2023 Main 67/1/1 · Q151 mark

Which of the following will be transferred to Realisation Account at the time of dissolution of firm ?

  1. Provision for Doubtful Debts
  2. Partners’ Loan
  3. General Reserve
  4. Goodwill
  1. (i) and (iv)
  2. (i), (ii) and (iv)
  3. (i), (iii) and (iv)
  4. (i), (ii) and (iii)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) (i) and (iv)

Q32.2023 Main 67/2/1 · Q61 mark

Total assets of a partnership firm, which was dissolved were ₹30,00,000 and its total liabilities were ₹6,00,000. Assets were realised at 80% and liabilities were settled at 5% less. If dissolution expenses were ₹30,000, the profit or loss on dissolution was :

  1. Profit ₹18,00,000
  2. Loss ₹6,00,000
  3. Profit ₹6,00,000
  4. Loss ₹18,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Loss ₹6,00,000

Q33.2023 Main 67/3/1 · Q3(i)1 mark

Mehak and Ravish were partners in a firm. On dissolution of the firm, the loan given by Mehak to the firm was ₹ 30,000, by Ravish was ₹ 15,000, and by Mrs. Ravish was ₹ 10,000. The first payment will be made for :

  1. Ravish’s loan
  2. Mehak’s loan
  3. Mrs. Ravish’s loan
  4. Mehak’s loan and Ravish’s loan in the ratio of their loan amount
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Mrs. Ravish’s loan

Q34.2023 Main 67/4/1 · Q21 mark

On dissolution of the firm of Ramesh, Suresh and Naresh, Naresh had agreed to bear all realisation expenses for which he was paid ₹ 14,500. Actual expenses on realisation amounted to ₹ 11,000 which were paid by Naresh. The amount to be credited to Naresh’s capital account will be :

  1. ₹ 11,000
  2. ₹ 3,500
  3. ₹ 14,500
  4. ₹ 25,500
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) ₹14,500

Q35.2023 Main 67/4/1 · Q71 mark

On dissolution of a partnership firm, furniture appearing in the Balance Sheet was ₹ 2,00,000. 50% of the furniture was taken over by a partner at ₹ 65,000 and balance 50% was sold at 20% less than the book value. The amount debited to bank account was :

  1. ₹ 1,45,000
  2. ₹ 80,000
  3. ₹ 65,000
  4. ₹ 1,85,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) ₹80,000

Q36.2023 Main 67/5/1 · Q51 mark

On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be transferred to which of the following account ?

  1. Revaluation Account
  2. Realisation Account
  3. Partners’ Capital Accounts
  4. Bank Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) Partners’ Capital Accounts

Q37.2023 Main 67/5/1 · Q161 mark

Aditya, Abhinav and Ankit were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 31st March, 2022, the firm was dissolved. Aditya was appointed to complete the dissolution process for which he was allowed a remuneration of ₹ 42,000. Aditya also agreed to bear dissolution expenses. Actual expenses on dissolution amounted to ₹ 33,000 which were paid by Aditya. Aditya’s Capital Account will be credited by :

  1. ₹ 42,000
  2. ₹ 33,000
  3. ₹ 9,000
  4. ₹ 18,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) ₹42,000

Q38.2023 Supp. 67/C/1 · Q41 mark

In which of the following cases is the business of a firm not dissolved compulsorily ?

  1. When all but one partner becomes insolvent.
  2. When the business of the firm becomes illegal.
  3. When there is a change in profit sharing ratio between existing partners.
  4. When a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India.
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) When there is a change in the profit sharing ratio amongst existing partners

Q39.2023 Supp. 67/C/1 · Q71 mark

On the dissolution of a partnership firm there existed a balance of ₹ 45,000 in Sundry Debtors Account and a balance of ₹ 8,000 in Provision for Bad Debts Account in the books of the firm. The amount by which ‘Realisation Account’ will be debited for closing Sundry Debtors Account will be :

  1. ₹ 45,000
  2. ₹ 37,000
  3. ₹ 8,000
  4. ₹ 53,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) ₹45,000

Q40.SQP 2025-26 · Q91 mark

X, a partner was assigned to look after the dissolution process and was allowed remuneration of ₹ 15,000. Actual realisation expenses amounted to ₹ 20,000, being paid by another partner Y. By what amount Realisation account will be debited for the above-mentioned information?

  1. ₹ 20,000
  2. ₹ 35,000
  3. ₹ 5,000
  4. ₹ 15,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) ₹ 35,000

Q41.SQP 2025-26 · Q151 mark

Arun, Basu and Tarun were partners sharing Profit &Loss in the ratio 5:3:2. Their firm was dissolved on March 31, 2025. On this date following assets and liabilities were appearing in their books of accounts.

Building ₹ 2,00,000 ; Furniture ₹ 80,000 ; Stock ₹ 70,000 ; Goodwill ₹ 10,000 ; Debtors ₹ 40,000 ; Cash ₹ 20,000 ; Creditors ₹ 50,000 ; Arun’s Loan ₹ 60,000 ; Tarun’s Brother Loan ₹ 30,000.

Assets realised at for ₹ 3,40,000. Determine the amount of Realisation Gain/Loss.

  1. Realisation Loss ₹ 80,000
  2. Realisation Gain ₹ 60,000
  3. Realisation Loss ₹ 60,000
  4. No Gain or Loss on Realisation
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) Realisation Loss ₹ 60,000

Q42.SQP 2026-27 · Q141 mark

A, B, and C are partners sharing profits in the ratio of 5:3:2. On dissolution, a creditor of ₹40,000 accepts ₹30,000 in full settlement. Another creditor of ₹ 15,000 is paid in full. What amount will be transferred to the Realisation Account to close the creditors A/c?

  1. ₹55,000
  2. ₹45,000
  3. ₹70,000
  4. ₹40,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) ₹55,000

Q43.SQP 2026-27 · Q161 mark

Which of the following items is not transferred to the Realisation Account at the time of dissolution of a firm?

A. Goodwill appearing in the books.
B. Employees Provident Fund
C. Provision for doubtful debts
D. General reserve
E. Debit Bank Balance

  1. D only
  2. A, B and C
  3. D and E
  4. B, D and E
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(C) D and E

Q44.2022 Main 67/1/1 · Q22 marks

State any two situations when compulsory dissolution of a partnership firm takes place.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Situations when Compulsory dissolution of a partnership firm takes place (any two):

  1. When all the partners or all but one partner becomes insolvent rendering them incompetent to sign a contract.
  2. When the business of the firm becomes illegal.
  3. When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership.

(1 × 2 = 2)

Q45.2022 Main 67/2/1 · Q22 marks

Pass the necessary journal entry on dissolution of a partnership firm if an unrecorded creditor of ₹ 40,000 was paid by a partner, Amar, at a discount of 10%.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Realization A/c Dr.36,000
To Amar’s Capital A/c36,000
(Unrecorded creditor paid by Partner Amar at 10% discount)

(2 marks)

Q46.2022 Main 67/5/1 · Q22 marks

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of :

  1. Termination of business.
  2. Settlement of Assets and Liabilities.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1
BasisDissolution of FirmDissolution of Partnership
(i)Termination of businessThe business of the firm is closed/ terminated.The business is not closed/ terminated.
(ii)Settlement of Assets and LiabilitiesAssets of the firm are realised and liabilities are paid offAssets of the firm are revalued and liabilities are reassessed and also balance sheet is drawn

(1 + 1 = 2 marks)

Q47.2025 Main 67/7/1 · Q173 marks

Jain and Gupta were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024, the firm was dissolved. After transferring various assets (other than cash ₹6,400) and the third-party liabilities to Realisation Account, the following transactions took place :

  1. Debtors ₹80,000 were taken over by a debt collection agency at 10% discount.
  2. Creditors amounting to ₹40,000 were taken over by Jain.
  3. Realisation expenses amounted to ₹5,100, which were paid by Gupta.

Pass necessary journal entries for the above transactions in the books of Jain and Gupta.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of Jain and Gupta
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Bank A/c/ Cash A/c ... Dr.
To Realisation A/c
(Amount collected by debt collection agency at 10% discount)
72,000

72,000
(ii) Realisation A/c ... Dr.
To Jain’s Capital A/c
(Creditors taken over by Jain, a partner)
40,000

40,000
(iii) Realisation A/c ... Dr.
To Gupta’s Capital A/c
(Realisation expenses paid by Gupta, a partner)
5,100

5,100

(1 × 3 = 3 Marks)

Q48.2025 Supp. 67/S/1 · Q173 marks

Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Banu, Bansal and Bimal after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

  1. The firm had a balance of ₹ 4,80,000 in General Reserve on the date of dissolution.
  2. Banu had given a loan of ₹ 80,000 to the firm which was fully settled at ₹ 78,000.
  3. Realisation expenses of ₹ 17,000 were paid by Bansal.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Banu, Bansal and Bimal
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)General Reserve A/c ... Dr.4,80,000
    To Banu’s Capital A/c1,60,000
    To Bansal’s Capital A/c1,60,000
    To Bimal’s Capital A/c1,60,000
(General reserve distributed among the partners) [1 mark]
(ii)Banu’s Loan A/c ... Dr.80,000
    To Bank A/c/ Cash A/c78,000
    To Realisation A/c2,000
(Banu’s loan fully settled at ₹78,000) [1 mark]
(iii)Realisation A/c ... Dr.17,000
    To Bansal’s Capital A/c17,000
(Realisation expenses paid by Bansal) [1 mark]

1 + 1 + 1 = 3 marks

Q49.SQP 2025-26 · Q183 marks

Hemant and Pankaj were partners sharing Profit & Loss in the ratio of 3:2. The firm was dissolved on March 31, 2024 and the following balances were appearing in the books of the firm.

  1. Hemant’s Loan ₹ 80,000
  2. Ruby’s Loan ₹ 50,000
  3. Creditors ₹ 1,00,000
  4. Capital Balances after all adjustments – Hemant ₹ 1,60,000 and Pankaj - ₹ 1,40,000

Assets of the firm realised at ₹ 6,00,000. You are required to show the amounts and order of payments as per section 48 of Indian Partnership Act 1932 at the time of Dissolution of the firm.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

First: - Rs.1,00,000 paid to Creditors and Rs.50,000 paid to Ruby respectively.

Second:- Rs.80,000 paid to Hemant next

Third:- Capital Balances of Hemant and Pankaj Rs.1,60,000 and Rs.1,40,000 paid to partners along with Surplus of Rs.70,000 paid to partners Hemant and Pankaj as Rs.42,000 and Rs.28,000 i.e. in profit sharing ratio.

Q50.SQP 2026-27 · Q17(a)3 marks

Amit, Akash and Ayush decided to dissolve their firm. Pass necessary journal entries for the following transactions after transferring all assets (except Cash and Bank) and outside liabilities to the Realisation Account:

  1. Debtors amounted to ₹82,000. Provision for Doubtful Debts was ₹6,000. Debtors of ₹12,000 went bad. The remaining debtors were taken over by a debt collection agency at 80% of book value.
  2. Amit agreed to pay his wife’s loan of ₹20,000 in settlement of loan of ₹25,000 given to Amit.
  3. Creditors amounted to ₹40,000 were payable after three months. Creditors worth ₹10,000 were given furniture costing ₹8,000 in full settlement. The remaining creditors allowed a discount of 10% irrespective of the time period.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

JOURNAL

SN.ParticularsLFDebit (₹)Credit (₹)
I.Bank A/c Dr.56,000
To Realisation A/c56,000
(Being debtors realised)
II.Realisation A/c Dr.25,000
To Amit’s loan A/c25,000
(Being loan settled)
III.Realisation A/c Dr.27,000
To Cash A/c27,000
(Being creditors paid off)
Q51.SQP 2026-27 · Q17(b)3 marks

L, B and P are partners. They decided to dissolve the firm.

In each of the following situations identify the incidence (borne by) of expenditure of dissolution and the paying identity (paid by) related to dissolution expenses of a firm:

Case IRealisation A/c Dr.
To L’s Capital A/c
(Being realisation expenses recorded)
10,000
10,000
Case IIL’s Capital A/c Dr.
To P’s Capital A/c
(Being realisation expenses recorded)
10,000
10,000
Case IIIP’s Capital A/c Dr.
To Cash A/c
(Being realisation expenses recorded)
10,000
10,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

Case I Expenses borne by firm, paid by partner L.
Case II Expenses borne by partner L, paid by partner P.
Case III Expenses borne by partner P, paid by firm.

Q52.2026 Main 67/2/1 · Q224 marks

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Arjun and Kunal after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

  1. Arjun was appointed to look after dissolution work for which he was allowed a remuneration of ₹ 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Arjun were ₹ 9,500.
  2. A creditor to whom the firm owed ₹ 9,000, accepted stock of ₹ 3,000 at a discount of 10% and the balance was paid to him in cash.
  3. Kunal had given a loan of ₹ 20,000 to the firm. He was paid ₹ 19,000 in full settlement of his loan.
  4. A piece of furniture, which was not recorded in the books was taken over by Arjun at ₹ 27,000 whereas its expected value was ₹ 30,000.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Arjun and Kunal
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Realisation A/c Dr.
To Arjun's Capital A/c
(Remuneration allowed to Arjun) [1]
10,000
10,000
(ii)Realisation A/c Dr.
To Cash/ Bank A/c
(Payment made to the creditor in cash) [1]
6,300
6,300
(iii)Kunal's Loan A/c Dr.
To Cash/ Bank A/c
To Realisation A/c
(Kunal's Loan settled at ₹19,000) [1]
20,000
19,000
1,000
(iv)Arjun's Capital A/c Dr.
To Realisation A/c
(Unrecorded furniture taken over by Arjun) [1]
27,000
27,000

(= 4 marks)

Q53.2026 Supp. 67/7/1 · Q224 marks

Pass necessary journal entries for the following transactions on the dissolution of the firm of Sanya and Manya after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

  1. Machinery of the book value of ₹ 90,000 was sold for ₹ 1,00,000 through a broker who charged 4% commission.
  2. Stock was worth ₹ 52,000 out of which stock worth ₹ 42,000 was taken over by Sanya at ₹ 45,000 and the balance of the stock was sold for ₹ 11,000.
  3. Debtors of ₹ 23,000 were sold to a debt collection agency who charged commission of ₹ 1,500.
  4. Furniture of ₹ 49,000 was accepted by Manya against settlement of her loan of ₹ 55,000.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Sanya and Manya
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Cash/ Bank A/c  Dr.
    To Realisation A/c
(Machinery sold and commission paid)
96,000

96,000
Alternatively, the following two entries may be passed:
Cash/ Bank A/c  Dr.
    To Realisation A/c
(Machinery sold)
1,00,000

1,00,000
Realisation A/c  Dr.
    To Cash / Bank A/c
(Commission paid to broker on sale of machinery)
4,000

4,000
(ii)Sanya’s Capital A/c  Dr.
Cash/ Bank A/c  Dr.
    To Realisation A/c
(Stock taken over by Sanya, balance sold)
45,000
11,000


56,000
(iii)Cash/ Bank A/c  Dr.
    To Realisation A/c
(Debtors sold to a debt collection agency)
21,500

21,500
Alternatively, the following two entries may be passed:
Cash/ Bank A/c  Dr.
    To Realisation A/c
(Debtors sold to a debt collection agency)
23,000

23,000
Realisation A/c  Dr.
    To Cash/ Bank A/c
(Commission paid to debt collection agency)
1,500

1,500
(iv)Manya’s Loan A/c  Dr.
    To Realisation A/c
(Furniture accepted by Manya in settlement of her loan)
55,000

55,000

(1 × 4 = 4 marks)

Q54.2024 Main 67/1/1 · Q224 marks

Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet on 31st March, 2023 was as follows :

Balance Sheet of Archana, Vandana and Arti as at 31st March, 2023

LiabilitiesAmount ₹AssetsAmount ₹
Capitals :
 Archana 80,000
 Vandana 70,000
 Arti 60,000



2,10,000
Investments
Plant
Stock
Debtors
80,000
1,00,000
40,000
50,000
General Reserve30,000Cash at Bank30,000
Creditors60,000
3,00,0003,00,000

The firm was dissolved on the above date.

  1. Assets were realised as follows :
    Debtors – ₹40,000
    Stock – ₹50,000
    Plant – ₹60,000
  2. 25% of the Investments were taken over by Vandana at ₹18,000. Remaining Investments were taken over by Archana at 10% less than its book value.
  3. Expenses of realisation ₹20,000 were paid by Arti.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Dr. Realisation A/c Cr.

ParticularsAmount ₹ParticularsAmount ₹
To Investments A/c
To Plant A/c
To Stock
To Debtors A/c (½)
80,000
1,00,000
40,000
50,000
By Creditors A/c (½)60,000
To Bank (½)60,000By Bank A/c (½)
 Debtors 40,000
 Stock 50,000
 Plant 60,000



1,50,000
To Arti’s Capital A/c (½)20,000By Vandana’s capital A/c (½)
By Archana’s capital A/c (½)
18,000
54,000
By Loss transferred to Partners’ Capital A/c: (½)
 Archana 34,000
 Vandana 20,400
 Arti 13,600



68,000
3,50,0003,50,000

= 4 marks

Q55.2024 Supp. 67/S/1 · Q224 marks

Sonia and Rohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 their Balance Sheet was as follows :

Balance Sheet of Sonia and Rohit as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
  Sonia 70,000
  Rohit 90,000


1,60,000
Building2,00,000
General Reserve80,000Machinery1,40,000
Sonia’s Loan1,30,000Furniture80,000
Bank Loan2,20,000Debtors1,20,000
Creditors70,000Stock60,000
Cash at Bank60,000
6,60,0006,60,000

The firm was dissolved on the above date on the following terms :

  1. Building, machinery and furniture realised ₹ 3,44,000.
  2. Debtors realised 90% only.
  3. Creditors took away half of the stock in full settlement of their account.
  4. Remaining stock realised ₹ 72,000.
  5. Realisation expenses amounting to ₹ 14,000 were paid by Rohit.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Sonia and Rohit

Realisation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Sundry Assets
  Building 2,00,000
  Machinery 1,40,000
  Furniture 80,000
  Debtors 1,20,000
  Stock 60,000





6,00,000 [½]
By Sundry Liabilities
  Bank Loan 2,20,000
  Creditors 70,000


2,90,000 [½]
To Bank A/c
(Bank loan)
2,20,000 [½]By Bank A/c
  Building, Machinery & Furniture 3,44,000
  Debtors 1,08,000
  Stock 72,000



5,24,000 [1]
To Rohit’s Capital A/c
(Realization Expenses)
14,000 [½]By loss transferred to Partners’ Capital A/c:
  Sonia 12,000
  Rohit 8,000


20,000 [1]
8,34,0008,34,000

4 Marks

Q56.2023 Main 67/3/1 · Q224 marks

Ravi, Kavi and Chand were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2022, their Balance Sheet was as follows :

Balance Sheet of Ravi, Kavi and Chand as on 31st March, 2022

LiabilitiesAmount ₹AssetsAmount ₹
Sundry Creditors70,000Land and Building3,50,000
Chand’s Loan20,000Stock3,00,000
Mrs. Chand’s Loan20,000Debtors2,00,000
Capitals :Less provision10,0001,90,000
  Ravi4,00,000Cash70,000
  Kavi3,00,000
  Chand1,00,0008,00,000
9,10,0009,10,000

The firm was dissolved on the above date.

  1. Land and Building and Stock were sold for ₹ 6,00,000. Debtors were realised at 10% less than the book value.
  2. Mrs. Chand’s loan was settled by giving her a computer of ₹ 22,000 not recorded in the books.
  3. Ravi paid off one of the creditors ₹ 20,000 in settlement of his amount of ₹ 30,000.
  4. Remaining creditors were paid in cash.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Realisation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Land & Building A/c3,50,000By Provision for Doubtful Debts A/c10,000
To Stock A/c3,00,000By Creditors A/c70,000
To Debtors A/c (½) [for these three]2,00,000By Mrs. Chand’s Loan (½) [for these three]20,000
To Ravi’s Capital A/c (½)20,000By Cash A/c (1)
  Land & Building and stock 6,00,000
  Debtors 1,80,000
7,80,000
To Cash A/c (½)40,000By Loss transferred to Partners’ Capital A/c’s: (1)
  Ravi 15,000
  Kavi 9,000
  Chand 6,000
30,000
9,10,0009,10,000

= 4 marks

Q57.2022 Main 67/1/1 · Q7(a)5 marks

Chanda, Tara and Nisha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2021. Pass necessary Journal Entries for the following transactions after all assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account.

  1. A typewriter completely written off from the books was sold for ₹ 9,000.
  2. Chanda took over stock worth ₹ 96,000 at ₹ 84,000.
  3. Nisha was to get remuneration of ₹ 42,000 for completing the dissolution process.
  4. Creditors of ₹ 23,500 took over all the investments at ₹ 10,000. Remaining amount was paid to them in Cash.
  5. Sundry Creditors amounting to ₹ 40,000 were settled at a discount of 10%.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
1Bank A/c / Cash A/c ... Dr.
To Realization A/c
(Old typewriter written off earlier, now sold)
9,000
9,000
2Chanda's Capital A/c ... Dr.
To Realization A/c
(Stock taken over by Chanda)
84,000
84,000
3Realization A/c ... Dr.
To Nisha's Capital A/c
(Remuneration allowed to Nisha)
42,000
42,000
4Realization A/c ... Dr.
To Bank A/c / Cash A/c
(Balance Creditors paid in cash)
13,500
13,500
5Realization A/c ... Dr.
To Bank A/c / Cash A/c
(Creditors paid at a discount of 10%)
36,000
36,000

(1 × 5 = 5)

Q58.2022 Main 67/2/1 · Q7(a)5 marks

A and B are partners sharing profits and losses equally. On 31st March, 2021, they decided to dissolve their firm. On the date of dissolution, their Balance Sheet was as under :

Balance Sheet of A and B as at 31st March, 2021

LiabilitiesAmount
₹
AssetsAmount
₹
Creditors3,00,000Bank3,00,000
A’s Loan60,000Stock2,40,000
Mrs. A’s Loan70,000Furniture2,00,000
Capitals :Plant and Machinery1,00,000
A2,30,000Profit and Loss A/c50,000
B2,30,0004,60,000
8,90,0008,90,000

The assets were realised and liabilities were paid as under :

  1. Creditors were paid at 20% less.
  2. Furniture was taken over by A for ₹ 1,80,000 and Plant and Machinery was sold for ₹ 80,000.
  3. B took over the stock at ₹ 1,80,000.
  4. A promised to pay Mrs. A’s loan.
  5. Realisation expenses of ₹ 20,000 were paid by B.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Dr. Realization A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)Marks
To Sundry Assets :By Sundry Liabilities :
Stock2,40,000Creditors3,00,000
Furniture2,00,000Mrs. A’s loan70,0003,70,000½ + ½
Plant & Machinery1,00,0005,40,000
To Bank : -Creditors2,40,000By A’s Capital A/c -Furniture1,80,000½ + ½
To A’s Capital A/c : -Mrs. A’s loan70,000By Bank A/c : -Plant and Machinery80,000½ + ½
To B’s Capital A/c : -Realization Expenses20,000By B’s Capital A/c: -Stock1,80,000½ + ½
By Loss Transferred to :
A’s Capital A/c30,000
B’s Capital A/c30,00060,0001
8,70,0008,70,000= 5 marks
Q59.2022 Main 67/3/1 · Q7(a)5 marks

T, U and V were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their firm was incurring huge losses thus it had to be closed. After transferring assets (other than cash in hand and bank) and third party liabilities to realization account the following transactions took place:

  1. T took away 50% of the stock at book value less 10% for ₹ 90,000, and the remaining stock was sold for ₹ 40,000.
  2. Creditors of ₹ 78,000 took over machinery of ₹ 80,000 in full settlement of their claim.
  3. ₹ 5,000 debtors previously written off were recovered.
  4. Mrs. V’s loan of ₹ 72,000 was paid by the firm.
  5. Loss on dissolution was ₹ 80,000.

Pass necessary journal entries for the above transactions in the books of T, U and V.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
(i)T’s Capital A/c ... Dr.
Bank A/c / Cash A/c ... Dr.
To Realisation A/c
(50% of stock taken over by T and the balance was sold for ₹ 40,000)
90,000
40,000


1,30,000
(ii)No entry
(iii)Bank A/c / Cash A/c ... Dr.
To Realisation A/c
(Bad debts previously written off recovered)
5,0005,000
(iv)Realisation A/c ... Dr.
To Bank A/c / Cash A/c
(Mrs. V’s loan was paid by the firm)
72,00072,000
(v)T’s Capital A/c ... Dr.
U’s Capital A/c ... Dr.
V’s Capital A/c ... Dr.
To Realisation A/c
(Loss on realization transferred to Partners’ Capital Accounts)
32,000
16,000
32,000



80,000
1 × 5

= 5 Marks

Q60.2022 Main 67/4/1 · Q8(b)5 marks

Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2022 their Balance Sheet was as follows :

Balance Sheet of Sonu, Monu and Ashu as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors35,000Bank22,000
General Reserve25,000Stock25,000
Capitals :Debtors20,000
Sonu50,000Less : Provision for bad debts2,00018,000
Monu30,000Furniture15,000
Ashu20,0001,00,000Land and Building80,000
1,60,0001,60,000

On the above date, the firm was dissolved on the following terms :

  1. Land and Building realised for ₹85,000, Furniture realised for ₹6,000 and Debtors realised full amount.
  2. Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹3,000.
  3. Monu agreed to bear all realisation expenses. For his services Monu was paid ₹2,000. Actual expenses on realisation amounted to ₹2,200.
  4. Creditors were paid at 2% less.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Realization A/c

Dr.
Particulars
Amount (₹)ParticularsAmount (₹) Cr.
Sundry Assets :
Stock 25,000
Debtors 20,000
Furniture 15,000
Land & Bldg. 80,000
1,40,000Sundry Liabilities :
Creditors 35,000
Provision for D/D 2,000
37,000
Bank A/c (Creditors)34,300Bank A/c :
Land & Bldg. 85,000
Furniture 6,000
Debtors 20,000
1,11,000
Monu’s Capital A/c (Remuneration)2,000Ashu’s Capital A/c (Unrecorded Asset)3,000
Sonu’s Capital A/c - Stock25,000
Loss Transferred to :
Sonu’s Capital A/c 150
Monu’s Capital A/c 90
Ashu’s Capital A/c 60
300
1,76,3001,76,300

(1 mark for transfer of assets + 1 mark for assets realized in cash + ½ × 6 for remaining entries i.e. 2 + 3 = 5 marks)

Q61.2022 Main 67/5/1 · Q7(a)5 marks

Give the necessary journal entries for the following transactions on dissolution of the firm of Sonu and Monu on 31st March, 2021, after transfer of various assets (other than cash and bank balance) and the third party liabilities to Realisation Account. They shared profits and losses in the ratio of 2:1.

  1. Sonu agreed to take over the firm's goodwill (not recorded in the books of the firm) at a valuation of ₹40,000.
  2. Bills payable of ₹30,000 falling due on 30th April, 2021 were discharged at ₹29,550.
  3. Stock worth ₹8,00,000 was taken over by partner, Sonu at 10% discount.
  4. Creditors of ₹2,00,000; accepted machinery valued at ₹2,20,000 in full settlement of their claim.
  5. Expenses of realisation ₹10,000 were paid by partner, Sonu.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Sonu's Capital A/c ... Dr.
To Realization A/c
(Goodwill taken over by Sonu)
40,000

40,000
(ii)Realization A/c ... Dr.
To Bank A/c
(Bills Payable discharged)
29,550

29,550
(iii)Sonu's Capital A/c ... Dr.
To Realization A/c
(Stock taken over by partner Sonu)
7,20,000

7,20,000
(iv)No Entry
(v)Realization A/c ... Dr.
To Sonu's Capital A/c
(Expenses paid by partner Sonu)
10,000

10,000

(1 × 5 = 5 marks)

Q62.2022 Supp. 67/6/1 · Q7(b)5 marks

B, C and D were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022 their Balance Sheet was as follows :

Balance Sheet of B, C and D as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors1,20,000Bank17,000
Profit and Loss A/c2,000Debtors 2,00,000
Less : Provision for bad debts 5,000
1,95,000
Capitals :
B 13,00,000
C 2,00,000
D 2,00,000
17,00,000Stock4,50,000
Furniture60,000
Land and Building11,00,000
18,22,00018,22,000

On the above date the firm was dissolved. The Assets were realised and the Liabilities were paid off as follows :

  1. Debtors were sold to a debt collection agency at 10% less than the book value.
  2. Stock ₹ 2,00,000 was taken over by B at ₹ 90,000 less than its book value and the remaining stock realised ₹ 1,80,000.
  3. Furniture was taken over by C for ₹ 65,000.
  4. Creditors were paid 10% less in full settlement of their amount.
  5. Land and Building realised ₹ 18,00,000.
  6. B was assigned the work of dissolution for which he was to be paid ₹ 40,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Realisation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Sundry assets:
Debtors 2,00,000
Stock 4,50,000
Furniture 60,000
Land and Building 11,00,000
18,10,000By Sundry Creditors A/c1,20,000
To Bank – creditors paid1,08,000By Provision for bad debts A/c5,000
To B’s Capital A/c40,000By Bank A/c:
Debtors 1,80,000
Stock 1,80,000
Land and Building 18,00,000
21,60,000
To Gain on dissolution transferred to:
B’s Capital A/c 2,00,800
C’s Capital A/c 2,00,800
D’s Capital A/c 1,00,400
5,02,000By C’s Capital A/c – Furniture65,000
By B’s Capital A/c – Stock1,10,000
24,60,00024,60,000

(½ mark each + 1 mark for profit = 5 marks)

Q63.2026 Main 67/1/1 · Q236 marks

Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Ravneet and Manmeet as on 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors4,50,000Cash at Bank2,50,000
Capitals :Stock2,50,000
Ravneet 5,00,000Debtors2,00,000
Manmeet 3,00,0008,00,000Plant & Machinery5,50,000
12,50,00012,50,000

On the above date, the firm was dissolved. The plant and machinery was sold at ₹4,87,000 and stock at 20% less than the book value. Debtors realised ₹1,40,000.

Ravneet agreed to bear all realisation expenses for which he was allowed a commission of ₹9,000. Actual realisation expenses amounted to ₹7,500.

Prepare Realisation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Ravneet and Manmeet
Realisation Account

Dr. ParticularsAmount (₹)Particulars Cr.Amount (₹)
To Sundry Assets ½
Stock 2,50,000
Debtors 2,00,000
Plant and Machinery 5,50,000
10,00,000By Sundry Liabilities ½
Creditors
4,50,000
To Cash/ Bank A/c ½
Creditors
4,50,000By Cash/ Bank A/c
Plant and Machinery 4,87,000 ½
Stock 2,00,000 ½
Debtors 1,40,000 ½
8,27,000
To Ravneet’s Capital A/c ½
- Commission
9,000By Loss transferred to Partners’ Capital A/c’s ½
Ravneet 1,27,400
Manmeet 54,600
1,82,000
14,59,00014,59,000

Partners’ Capital Accounts

Dr. ParticularsRavneet (₹)Manmeet (₹)Particulars Cr.Ravneet (₹)Manmeet (₹)
To Realisation A/c (Loss) ½1,27,40054,600By Balance b/d ½5,00,0003,00,000
To Cash/ Bank A/c ½3,81,6002,45,400By Realisation A/c (Commission) ½9,000-
5,09,0003,00,0005,09,0003,00,000

Alternatively,

Partners’ Capital Accounts

Dr. ParticularsRavneet (₹)Manmeet (₹)Particulars Cr.Ravneet (₹)Manmeet (₹)
To Realisation A/c (Loss) ½1,27,40054,600By Balance b/d5,00,0003,00,000
To Cash/ Bank A/c ½7,500-By Realisation A/c (Commission) ½9,000-
To Cash/ Bank A/c ½3,74,1002,45,400
5,09,0003,00,0005,09,0003,00,000

(Note: No marks for Balance b/d in the Alternate solution)

Q64.2026 Main 67/3/1 · Q256 marks

Sophia and Lalit were partners in a firm sharing profits and losses equally. Their firm was dissolved on 31st March, 2025. After transferring sundry assets (other than cash in hand and cash at bank) and the third party liabilities to the Realisation Account, the following transactions took place :

  1. The firm had stock of the book value of ₹80,000. 50% of the stock was taken over by Sophia at 10% less than its book value and the remaining stock was sold at a gain of 15%.
  2. There was an unrecorded investment which was sold for ₹25,000.
  3. There were debtors of ₹1,20,000. Debtors realised 90% only and ₹5,000 were recovered for bad debts written off last year.
  4. Sophia had given a loan to the firm of ₹52,000. She was paid ₹41,000 in full settlement of her claim.
  5. Creditors of ₹60,000 were paid at a discount of 5%.
  6. Expenses of realisation amounting to ₹7,000 were paid by Lalit.

Pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Sophia and Lalit
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i)Sophia’s Capital A/c Dr.
Bank / Cash A/c Dr.
To Realisation A/c
(50% of the stock taken over by Sophia at 10% less & remaining sold at a gain of 15%)
36,000
46,000


82,000
1
AlternativeSophia’s Capital A/c Dr.
To Realisation A/c
(50% of the stock taken over by Sophia at 10% less)
36,000

36,000
½
Bank / Cash A/c Dr.
To Realisation A/c
(Remaining stock sold at a gain of 15%)
46,000

46,000
½
(ii)Bank / Cash A/c Dr.
To Realisation A/c
(Unrecorded investment sold)
25,000

25,000
1
(iii)Bank / Cash A/c Dr.
To Realisation A/c
(Debtors realised 90% & bad debt recovered)
1,13,000

1,13,000
1
AlternativeBank / Cash A/c Dr.
To Realisation A/c
(Debtors realised at 90%)
1,08,000

1,08,000
½
Bank / Cash A/c Dr.
To Realisation A/c
(Bad debts recovered)
5,000

5,000
½
(iv)Sophia’s Loan A/c Dr.
To Bank / Cash A/c
To Realisation A/c
(Sophia’s loan settled)
52,000


41,000
11,000
1
(v)Realisation A/c Dr.
To Bank / Cash A/c
(Creditors settled at a discount)
57,000

57,000
1
(vi)Realisation A/c Dr.
To Lalit’s Capital A/c
(Realisation expenses paid by Lalit)
7,000

7,000
1

(= 6 Marks)

Q65.2026 Main 67/4/1 · Q266 marks

Arhan and Kanak were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2025 was as follows :

Balance Sheet of Arhan and Kanak as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
Arhan 6,00,000
Kanak 8,00,000
14,00,000Machinery
Investments
Debtors
12,00,000
7,00,000
10,00,000
Bank Loan7,00,000Stock4,00,000
Creditors13,00,000Cash1,00,000
34,00,00034,00,000

The firm was dissolved on the above date and the following transactions took place :

  1. 50% of the creditors were given stock in full settlement of their dues. Remaining creditors were settled at 20% discount.
  2. Investments were taken over by Kanak at ₹ 8,40,000.
  3. Debtors realized ₹ 8,50,000 and machinery was sold at 70% of book value.
  4. Realisation expenses amounted to ₹ 1,20,000 which were paid by Arhan.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Arhan and Kanak

Realisation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Sundry Assets: (1)
Machinery 12,00,000
Investments 7,00,000
Debtors 10,00,000
Stock 4,00,000
33,00,000By Sundry Liabilities: (½)
Bank loan 7,00,000
Creditors 13,00,000
20,00,000
To Bank/Cash A/c (Creditors) (½)5,20,000By Bank/Cash A/c (Debtors) (½)8,50,000
To Bank/ Cash A/c (Bank loan) (½)7,00,000By Bank/Cash A/c (Machinery) (½)8,40,000
To Arhan’s Capital A/c (Expenses) (½)1,20,000By Kanak’s Capital A/c (Investments) (1)8,40,000
By Loss transferred to capital A/c: (1)
Arhan 66,000
Kanak 44,000
1,10,000
46,40,00046,40,000

= 6 Marks

Q66.2026 Main 67/5/1 · Q26(b)6 marks

Mr. Rinku and Mrs. Pinky were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, their balance sheet was as follows :

Balance Sheet of Mr. Rinku and Mrs. Pinky as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors86,000Cash at Bank43,000
Mrs. Rinku’s Loan20,000Stock20,000
Pinky’s Husband’s Loan30,000Investments30,000
Investment Fluctuation Fund12,000Debtors50,000
General Reserve30,000Less : Provision for doubtful debts5,00045,000
Capitals :Building3,40,000
Mr. Rinku1,00,000
Mrs. Pinky2,00,0003,00,000
4,78,0004,78,000

On the above date the firm was dissolved and the following transactions took place :

  1. Mr. Rinku agreed to pay Mrs. Rinku’s loan and took away stock for ₹16,000.
  2. Mrs. Pinky took half of the investments at 10% less. Debtors realised ₹44,000, Building realised ₹4,00,000, Creditors were paid ₹5,000 less and the remaining investments were sold for ₹19,000. An old furniture not recorded in the books of the firm was taken over by Mrs. Pinky for ₹18,000. Realisation expenses amounted to ₹6,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Mr. Rinku and Mrs. Pinky
Realisation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Sundry Assets:By Sundry liabilities:
Stock20,000Creditors86,000
Investments30,000Mrs. Rinku’s Loan20,000
Debtors50,000Pinky’s Husband’s Loan30,000
Building3,40,0004,40,000 [½]Investment Fluctuation Fund12,000
To Rinku’s Capital A/c:
Mrs Rinku’s loan
20,000 [½]Provision for doubtful debts5,0001,53,000 [½]
To Cash/Bank A/c:
Creditors
81,000 [½]By Rinku’s Capital A/c – Stock16,000 [½]
Pinky’s Husband’s Loan30,000 [½]1,11,000By Pinky’s Capital A/c- Investments13,500 [½]
To Cash/Bank A/c:
Realisation expenses
6,000 [½]By Pinky’s Capital A/c- Old furniture18,000 [½]
Gain on Realisation transferred to:By Cash/Bank A/c:
Mr. Rinku’s Capital51,900Debtors44,000
Mrs. Pinky’s Capital34,60086,500 [½]Building4,00,000
Investment19,0004,63,000 [1]
6,63,5006,63,500

(6 Marks)

Q67.2025 Main 67/1/1 · Q246 marks

Pass the necessary journal entries for the following transactions on the dissolution of a partnership firm of Vibha and Ajit after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

  1. Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.
  2. The firm had stock of ₹ 20,000. Ajit took over 40% of the stock at a discount of 10% while the remaining stock was sold for ₹ 18,000.
  3. Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ 16,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 15,000 were paid by Vibha.
  4. Ajit's loan of ₹ 45,000 was settled at ₹ 42,000.
  5. A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.
  6. The firm had a debit balance of ₹ 20,000 in the Profit and Loss Account on the date of dissolution.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Vibha and Ajit — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Realisation A/c ... Dr.
To Cash A/c
(Creditors accepted cash and furniture in full settlement of their claim)
9,000

9,000
(ii)Ajit Capital A/c ... Dr.
Cash/ Bank A/c ... Dr.
To Realisation A/c
(40% of the stock was taken over by Ajit and the remaining stock sold for ₹18,000)
7,200
18,000


25,200
(iii)Realisation A/c ... Dr.
To Vibha's Capital A/c
(Vibha was allowed a remuneration to look after dissolution work)
16,000

16,000
(iv)Ajit Loan A/c ... Dr.
To Cash/ Bank A/c
To Realisation A/c
(Ajit's loan was settled)
45,000


42,000
3,000
(v)Vibha's Capital A/c ... Dr.
To Realisation A/c
(Unrecorded machinery taken over by Vibha)
23,000

23,000
(vi)Vibha's Capital A/c ... Dr.
Ajit's Capital A/c ... Dr.
To Profit and Loss A/c
(Debit balance of Profit and Loss account debited to the partners' capital accounts)
10,000
10,000


20,000

(1 × 6 = 6 marks)

Q68.2025 Main 67/2/1 · Q236 marks

Pass necessary journal entries for the following transactions on dissolution of the firm of Rajesh, Somesh and Yogesh after various assets (other than cash) and third party liabilities have been transferred to Realisation Account :

  1. Rajesh took over stock of ₹ 4,00,000 at a discount of 20%.
  2. Somesh agreed to take over the firm's furniture, not recorded in the books of the firm at ₹ 80,000.
  3. Land and Building of the book value of ₹ 60,00,000 was sold for ₹ 90,00,000 through a broker who charged 10% commission.
  4. Ashish, an old customer, whose account for ₹ 70,000 was written off as bad in the previous year, paid 60% of the amount.
  5. Sundry Creditors of ₹ 3,00,000 were settled at a discount of 10%.
  6. Realisation expenses amounting to ₹ 21,000 were paid by Yogesh.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Rajesh, Somesh and Yogesh
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Rajesh's Capital A/c Dr.3,20,000
    To Realisation A/c3,20,000
(Stock taken over by Rajesh at a discount of 20%)
(ii)Somesh's Capital A/c Dr.80,000
    To Realisation A/c80,000
(Unrecorded furniture taken over by Somesh)
(iii)Bank A/c / Cash A/c Dr.81,00,000
    To Realisation A/c81,00,000
(Land and building sold and commission paid to the broker)
(iv)Bank A/c / Cash A/c Dr.42,000
    To Realisation A/c42,000
(Recovered at 60% of the bad debts written off earlier)
(v)Realisation A/c Dr.2,70,000
    To Cash/ Bank A/c2,70,000
(Sundry creditors settled at a discount of 10%)
(vi)Realisation A/c Dr.21,000
    To Yogesh's Capital A/c21,000
(Realisation expenses paid by Yogesh)

(1 x 6 = 6 marks)

Q69.2025 Main 67/4/1 · Q236 marks

Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows :

Balance Sheet of Madhur and Neeraj as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Machinery7,00,000
  Madhur9,00,000Investments4,00,000
  Neeraj8,00,00017,00,000Debtors11,00,000
Creditors6,00,000Stock2,00,000
Bills Payable2,00,000Cash at Bank1,00,000
25,00,00025,00,000

The firm was dissolved on the above date and the following transactions took place :

  1. Machinery was taken over by creditors in full settlement of their account.
  2. Investments were taken over by Neeraj at ₹ 5,00,000.
  3. One of the debtors of ₹ 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
  4. Stock was taken over by Madhur at 50% discount.
  5. Realisation expenses amounting to ₹ 1,00,000 were paid by Madhur.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Realisation Account

Dr. ParticularsAmount (₹)ParticularsCr. Amount (₹)
To Sundry Assets t/f: (1)
  Machinery 7,00,000
  Investments 4,00,000
  Debtors 11,00,000
  Stock 2,00,000




24,00,000
By Sundry Liabilities t/f: (½)
  Creditors 6,00,000
  Bills Payable 2,00,000


8,00,000
To Madhur’s Capital A/c
  (Realisation Expenses) (1)
1,00,000By Neeraj’s Capital A/c
  (Investment) (½)
5,00,000
To Bank A/c (Bills Payable) (1)2,00,000By Bank A/c (Debtors) (½)9,00,000
By Madhur’s Capital A/c (St) (½)1,00,000
By Loss transferred to Partners’ Capital A/c (1)
  Madhur 2,40,000
  Neeraj 1,60,000


4,00,000
27,00,00027,00,000

= 6 marks

Q70.2025 Main 67/5/1 · Q256 marks

Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in ratio of 2 : 1 : 2. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Madhavan, Chatterjee and Pillai as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,10,000Cash at Bank4,05,000
Outstanding Expenses17,000Stock2,20,000
Mrs. Madhavan’s Loan2,00,000Debtors95,000
Chatterjee’s Loan1,70,000Less : Provision for Doubtful Debts5,00090,000
Capitals :Land and Building1,82,000
Madhavan2,00,000Plant and Machinery1,00,000
Chatterjee1,00,000
Pillai2,00,0005,00,000
9,97,0009,97,000

On the above date, the firm was dissolved and the following transactions took place :

  1. Debtors were taken over by the creditors in full settlement of their account.
  2. Madhavan agreed to pay Mrs. Madhavan’s loan.
  3. 50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
  4. Land and Building was taken over by Pillai for ₹ 10,00,000 and Plant and Machinery was sold as scrap for ₹ 20,000.
  5. Realisation expenses ₹ 17,000 were paid by cheque.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Realisation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Sundry Assets: (1)
Stock
Debtors
Land & Building
Plant & Machinery

2,20,000
95,000
1,82,000
1,00,000




5,97,000
By Sundry Liabilities: (1)
Creditors
Outstanding Expenses
Mrs. Madhavan’s Loan
Provision for doubtful debts

1,10,000
17,000
2,00,000
5,000




3,32,000
To Madhavan’s Capital A/c (½)
(Mrs. Madhavan’s Loan)
2,00,000By Chatterjee’s Capital A/c (Stock) (½)99,000
To Bank A/c: (1)
Outstanding expenses
Realisation expenses

17,000
17,000


34,000
By Pillai’s Capital A/c (½)
(Land & Building)
10,00,000
To Profit transferred to: (½)
Madhavan’s Capital A/c
Chatterjee’s Capital A/c
Pillai’s Capital A/c

3,00,800
1,50,400
3,00,800



7,52,000
By Bank A/c: (1)
Stock
Plant & Machinery

1,32,000
20,000


1,52,000
15,83,00015,83,000

(=6 marks)

Q71.2025 Main 67/6/1 · Q256 marks

Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third party liabilities to Realisation Account, the following transactions took place :

  1. The firm had stock of ₹2,00,000. 40% of this stock was taken over by a creditor of ₹1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%.
  2. The remaining creditors were paid ₹2,10,000.
  3. Plant and Machinery of ₹5,00,000 were accepted by Mrs. Madan against the settlement of her loan of ₹5,40,000.
  4. Debtors of ₹3,50,000 were sold to a debt collection agency who charged a commission of ₹25,000.
  5. Investments of ₹1,00,000 were taken over by the partners in their profit sharing ratio.
  6. Expenses of dissolution were ₹8,000.

Pass necessary journal entries for the above transactions in the books of the firm.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Lalit and Madan
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2024
March 31
(i) Cash/Bank A/c ... Dr.
To Realisation A/c
(Part of stock sold at loss of 10%)
1,08,000
1,08,000
,,(ii) Realisation A/c ... Dr.
To Cash/Bank A/c
(Creditors paid)
2,10,000
2,10,000
,,(iii) No entry
,,(iv) Cash/Bank A/c ... Dr.
To Realisation A/c
(Cash recovered by debt collection agency after debiting their commission)
3,25,000
3,25,000
,,(v) Lalit's capital A/c ... Dr.
Madan's capital A/c ... Dr.
To Realisation A/c
(Investments taken over by partners in profit sharing ratio)
70,000
30,000


1,00,000
,,(vi) Realisation A/c ... Dr.
To Cash/Bank A/c
(Realisation expenses paid)
8,000
8,000

(1 × 6 = 6 marks)

Q72.2025 Main 67/7/1 · Q256 marks

Raja, Rajan and Rajani were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Raja, Rajan and Rajani as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :Land and Building9,00,000
Raja3,00,000Plant and Machinery6,00,000
Rajan4,00,000Furniture1,20,000
Rajani5,00,00012,00,000Debtors
Less : Provision for doubtful debts
80,000
8,000
72,000
General Reserve1,60,000Bills Receivable18,000
Creditors80,000Stock1,00,000
Raja’s Loan3,00,000Bank1,30,000
Mrs. Raja’s Loan1,90,000
Outstanding Wages10,000
19,40,00019,40,000

On the above date, the firm was dissolved. Assets were realised and liabilities were paid off as follows :

  1. Land and Building was sold for ₹20,00,000.
  2. Plant and Machinery realised ₹40,000 less than their book value and furniture was taken over by the creditors in full settlement of their account.
  3. Debtors and Bills Receivable realised ₹90,000.
  4. 60% of the stock was taken over by Raja at 90% of the book value and the remaining stock realised at ₹44,000.
  5. Outstanding wages were paid in full.
  6. Mrs. Raja’s loan was paid with interest of ₹10,000.
  7. Realisation expenses were ₹8,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Realisation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Sundry Assets A/c
Land & Building 9,00,000
Plant & Machinery 6,00,000
Furniture 1,20,000
Debtors 80,000
Bills Receivable 18,000
Stock 1,00,000 (½)
18,18,000By Sundry Liabilities A/c
Creditors 80,000
Ms. Raja’s Loan 1,90,000
O/s Wages 10,000 (½)
2,80,000
To Bank A/c
O/s Wages 10,000
Ms. Raja’s Loan 2,00,000 (1)
2,10,000By Provision for doubtful debt A/c (½)8,000
To Bank A/c (Realisation expenses) (½)8,000By Raja’s Capital A/c (Stock) (½)54,000
To Gain on Realisation transferred to :- (½)
Raja’s Capital A/c 4,00,000
Rajan’s Capital A/c 4,00,000
Rajani’s Capital A/c 2,00,000
10,00,000By Bank A/c
Land & Building 20,00,000
Plant & Machinery 5,60,000
Debtors & Bills Receivable 90,000
Stock 44,000 (2)
26,94,000
30,36,00030,36,000

(6 Marks)

Q73.2025 Supp. 67/S/1 · Q256 marks

Jai and Kavi were partners in a firm sharing profits and losses equally. They agreed to dissolve the firm on 31st March, 2024. Their Balance Sheet as on 31st March, 2024 was as follows :

Balance Sheet of Jai and Kavi as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Bills Payable2,00,000Cash in Hand2,00,000
Loan by Kavi2,00,000Cash at Bank4,00,000
General Reserve4,00,000Debtors3,40,000
Less : Provision for Doubtful Debts40,0003,00,000
Profit and Loss A/c4,00,000
Loan by Mrs. Kavi1,50,000Land and Building6,00,000
Capitals :Machinery5,00,000
Jai5,00,000Goodwill3,50,000
Kavi5,00,00010,00,000
23,50,00023,50,000

The following transaction took place at the time of dissolution :

  1. Land and Building realised ₹ 4,50,000.
  2. Jai took Machinery at ₹ 4,50,000.
  3. Bills Payable were paid ₹ 1,96,000 in full settlement.
  4. Debtors realised at ₹ 2,70,000.
  5. Firm had to pay ₹ 5,000 for Outstanding Salary which was not provided earlier.
  6. Realisation expenses were ₹ 19,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Dr.   Realisation Account   Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Sundry Assets A/c [1]By Sundry Liabilities A/c [½]
Debtors3,40,000Bills Payable2,00,000
Land and Building6,00,000Loan by Mrs. Kavi1,50,0003,50,000
Machinery5,00,000
Goodwill3,50,00017,90,000By Provision for doubtful debts [½]40,000
To Bank A/c/ Cash A/cBy Bank A/c/ Cash A/c
Bills Payable1,96,000Land and Building4,50,000
Loan by Mrs. Kavi1,50,000Debtors [1]2,70,0007,20,000
Outstanding salary [1½]5,0003,51,000By Jai’s Capital A/c (Machinery) [½]4,50,000
To Bank A/c/ Cash A/c (Realisation Expenses) [½]19,000By Loss transferred to Partners’ Capital Accounts [½]
Jai3,00,000
Kavi3,00,0006,00,000
21,60,00021,60,000

6 marks

Q74.2024 Main 67/2/1 · Q246 marks

Nandu, Bandu and Chandu were partners in a firm. On 31st March, 2023 they decided to dissolve the firm. Pass necessary journal entries for the following transactions after the various assets (other than cash and bank) and outside liabilities have been transferred to Realisation Account :

  1. Stock of ₹ 1,40,000 was taken by Nandu at a discount of 30%.
  2. Creditors to whom the firm owed ₹ 40,000 accepted stock at ₹ 4,000 and the balance amount was paid to them by a cheque.
  3. An old computer which had been written off completely from the books was sold for ₹ 4,000, whereas its estimated market value was ₹ 10,000.
  4. Chandu had given a loan of ₹ 1,00,000 to the firm, which was paid to him through a cheque.
  5. ₹ 24,000 were recovered from a debtor which was written off as bad debt in the previous year.
  6. Bandu was appointed to look after the dissolution work for which he was allowed a remuneration of ₹ 26,000. Bandu agreed to bear the dissolution expenses. Actual dissolution expenses of ₹ 36,000 were paid by Bandhu.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Nandu, Bandu and Chandu — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) Nandu’s Capital A/c Dr.
To Realisation A/c
(Stock taken over by Nandu at 30% discount)
98,000

98,000
(ii) Realisation A/c Dr.
To Bank A/c
(Creditors paid by cheque)
36,000

36,000
(iii) Cash/Bank A/c Dr.
To Realisation A/c
(Old computer sold)
4,000

4,000
(iv) Chandu’s Loan A/c Dr.
To Bank A/c
(Chandu’s loan paid through cheque)
1,00,000

1,00,000
(v) Cash/Bank A/c Dr.
To Realisation A/c
(Bad Debts previously written off recovered)
24,000

24,000
(vi) Realisation A/c Dr.
To Bandu’s Capital A/c
(Remuneration allowed to Bandu for carrying out dissolution work)
26,000

26,000

1 × 6 = 6 marks

Q75.2024 Main 67/3/1 · Q236 marks

Abhay, Bikram and Chris were partners in a firm sharing profits and losses equally. They decided to dissolve their partnership firm on 31st March, 2023. The firm’s Balance Sheet on the date of dissolution was as follows :

Balance Sheet of Abhay, Bikram and Chris as at 31st March, 2023

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital :
Abhay 68,000
Bikram 1,00,000
Chris 77,000
2,45,000Plant and Machinery
Furniture
Motor Car
Stock
80,000
45,000
1,25,000
30,000
Creditors1,20,000Debtors
Cash at Bank
70,000
15,000
3,65,0003,65,000

The following information is available :

  1. Plant and Machinery was taken over by Abhay at an agreed valuation of ₹ 75,000.
  2. Furniture realised ₹ 40,000.
  3. Motor car was taken over by Bikram for ₹ 1,30,000.
  4. Debtors realised 10% less.
  5. 10% of the stock was taken over by Chris for ₹ 4,500. The remaining stock was sold for ₹ 30,000.
  6. Realisation expenses amounted to ₹ 5,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Realisation Account

Dr. ParticularsAmount (₹)ParticularsAmount (₹) Cr.
To Sundry Assets t/f: (1/2)
Plant & Machinery 80,000
Furniture 45,000
Motor Car 1,25,000
Stock 30,000
Debtors 70,000
3,50,000By Sundry Liabilities t/f: (1/2)
Creditors 1,20,000

By Abhay’s Capital A/c (P&M) (1/2)
By Bikram’s Capital A/c (Car) (1/2)
By Chris’s Capital A/c (stock) (1/2)
1,20,000


75,000
1,30,000
4,500
To Bank A/c: (1)
Expenses 5,000
Creditors 1,20,000
1,25,000By Bank A/c (1½)
Debtors 63,000
Stock 30,000
Furniture 40,000
1,33,000
By Loss transferred to Partners’ Capital A/c (1)
Abhay 4,166
Bikram 4,167
Chris 4,167
12,500
4,75,0004,75,000

6 marks

Q76.2024 Main 67/4/1 · Q256 marks

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to realisation account :

  1. There was an outstanding bill for repairs for which ₹ 20,000 were paid.
  2. The firm had stock of ₹ 80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for ₹ 52,000.
  3. The firm had 100 shares of ₹ 10 each which were taken over by the partners at market value of ₹ 20 per share in their profit sharing ratio of 3:2.
  4. Realisation expenses of ₹ 4,000 were paid by Rina.
  5. Tina had given a loan of ₹ 40,000 to the firm which was duly paid.
  6. Rina agreed to pay off her husband’s loan of ₹ 10,000 at a discount of 10%.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Tina and Rina
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Realisation A/c ... Dr
To Bank/ Cash A/c
(An outstanding bill for repairs paid)
20,000
20,000
(ii) Tina’s Capital A/c ... Dr
Cash /Bank A/c ... Dr
To Realisation A/c
(Stock partially taken over by Tina, a partner and partially realized.)
32,000
52,000


84,000
(iii) Tina’s Capital A/c ... Dr
Rina’s Capital A/c ... Dr
To Realisation A/c
(Shares acquired by partners in their profit sharing ratio)
1200
800


2,000
(iv) Realisation A/c ... Dr
To Rina’s Capital A/c
(Realisation expenses paid by Rina credited to her capital account)
4,000
4,000
(v) Tina’s Loan A/c ... Dr
To Bank/ Cash A/c
(Partner’s Loan paid)
40,000
40,000
(vi) Realisation A/c ... Dr
To Rina’s Capital A/c
(Loan taken over by Rina, a partner)
9,000
9,000

(1 × 6 = 6 Marks)

Q77.2024 Main 67/5/1 · Q256 marks

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 :

  1. Sundry creditors amounting to ₹ 40,000 were settled at a discount of 10%.
  2. An unrecorded computer of ₹ 50,000 was taken over by Shruti.
  3. Creditors of ₹ 5,000 agreed to take over debtors of ₹ 8,000 in full settlement of their claim.
  4. The firm had a debit balance of ₹ 42,000 in the Profit and Loss Account on the date of dissolution.
  5. There was an old furniture with the firm which had been written off completely from the books. This was sold for ₹ 9,000.
  6. Realisation expenses amounting to ₹ 11,000 were paid by Shruti.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Avyan and Shruti
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i)Realisation A/c Dr.36,0001
To Cash/Bank A/c36,000
(Creditors settled at a discount of 10%)
(ii)Shruti’s Capital A/c Dr.50,0001
To Realisation A/c50,000
(Unrecorded computer taken over by Shruti)
(iii)No entry1
(iv)Avyan’s Capital A/c Dr.21,0001
Shruti’s Capital A/c Dr.21,000
To Profit and Loss A/c42,000
(Debit balance of Profit and Loss Account distributed among the partners)
(v)Bank/ Cash A/c Dr.9,0001
To Realisation A/c9,000
(Old furniture which had been written off, sold)
(vi)Realisation A/c Dr.11,0001
To Shruti’s Capital A/c11,000
(Expenses of realisation paid by Shruti)

(1×6 = 6 marks)

Q78.2023 Main 67/1/1 · Q256 marks

Aadish and Shreyansh were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2022 their Balance Sheet was as follows :

Balance Sheet of Aadish and Shreyansh as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors90,000Cash at Bank20,000
Mrs. Aadish’s Loan30,000Stock24,000
Shreyansh’s Loan30,000Investments30,000
General Reserve45,000Debtors 20,000
Less : Provision for Doubtful Debts, 2,000
18,000
Capitals :
Aadish 1,00,000
Shreyansh 97,000
1,97,000Plant
Advertisement Suspense account
1,00,000
2,00,000
3,92,0003,92,000

The firm was dissolved on 31st March, 2022 on the following terms :

  1. Debtors realised ₹ 17,000 and plant realised 10% more than the book value.
  2. Aadish promised to pay Mrs. Aadish’s loan and took away stock at ₹ 20,000.
  3. Shreyansh took away half of the investments at a discount of 10%. Remaining investments realised ₹ 4,500.
  4. Creditors were paid off at a discount of 10%.
  5. Expenses of realisation amounted to ₹ 7,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Books of Aadish and Shreyansh

Dr. Realisation A/c Cr.

Particulars₹Particulars₹
To Sundry Assets:
Stock 24,000
Investment 30,000
Debtors 20,000
Plant 1,00,000
1,74,000 [½]By Sundry Liabilities:
Creditors 90,000
Mrs. Aadish’s Loan 30,000
Provision for Doubtful Debts 2,000
1,22,000 [½]
To Aadish’s Capital A/c
(Mrs. Aadish’s loan)
30,000 [1]By Cash A/c / Bank A/c:
Debtors 17,000
Plant 1,10,000
Investment 4,500
1,31,500 [1]
To Cash A/c/ Bank A/c:
Creditors 81,000
Realisation Expenses 7,000
88,000 [1]By Aadish’s Capital A/c
(Stock)
20,000 [½]
By Shreyansh’s Capital A/c
(Investment)
13,500 [1]
By loss transferred to Partners’ Capital A/c :
Aadish 3,000
Shreyansh 2,000
5,000 [½]
2,92,0002,92,000

(½ + 1 + 1 + ½ + 1 + ½ + 1 + ½ = 6 marks)

[Figures in square brackets are the marks shown against items in the marking scheme.]

Q79.2023 Main 67/2/1 · Q236 marks

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

  1. An unrecorded asset of ₹18,000 was taken over by Tina at ₹16,000.
  2. Rina agreed to pay her brother's loan of ₹23,000.
  3. Stock of ₹30,000 was taken over by a creditor of ₹40,000 in full settlement.
  4. Expenses of dissolution ₹40,000 were paid by Rina.
  5. Creditors were paid ₹18,800 in full settlement of their account of ₹20,000.
  6. Tina's loan of ₹15,000 was paid through a cheque.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Tina and Rina
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Tina's Capital A/c Dr
To Realisation A/c
(An unrecorded asset taken over by Tina, a partner)
16,000
16,000
(ii) Realisation A/c Dr
To Rina's Capital A/c
(Loan taken over by Rina, a partner)
23,000
23,000
(iii) No Entry----
(iv) Realisation A/c Dr
To Rina's Capital A/c
(Dissolution expenses paid by Rina credited to her capital account)
40,000
40,000
(v) Realisation A/c Dr
To Bank/ Cash A/c
(Creditors paid in full settlement of their account)
18,800
18,800
(vi) Tina's Loan A/c Dr
To Bank A/c
(Settlement of partner's Loan)
15,000
15,000

(1×6 = 6 Marks)

Q80.2023 Main 67/4/1 · Q246 marks

Pass the necessary journal entries for the following transactions on dissolution of the firm of Varun and Vivek after various assets (other than cash) and outside liabilities were transferred to Realisation Account :

  1. Varun paid creditors ₹ 18,500 in full settlement of their claim of ₹ 20,000.
  2. Vivek agreed to pay his wife’s loan of ₹ 70,000.
  3. The firm had unrecorded investments of ₹ 2,00,000, which were sold at a loss of 20%.
  4. The firm had stock of ₹ 1,00,000. Varun took over the stock at a discount of 10%.
  5. Reema, a debtor whose account for ₹ 2,000 was written off as a bad debt in the previous year, paid 70% of the amount.
  6. Expenses of realisation ₹ 4,900 were paid by partner, Vivek.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Varun and Vivek
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) Realisation A/c   Dr.
   To Varun’s Capital A/c
(Payment of creditors by Varun)
18,500

18,500
(ii) Realisation A/c   Dr.
   To Vivek’s Capital A/c
(Wife’s loan taken over by Vivek)
70,000

70,000
(iii) Cash/Bank A/c   Dr.
   To Realisation A/c
(Realisation of unrecorded investments)
1,60,000

1,60,000
(iv) Varun’s Capital A/c   Dr.
   To Realisation A/c
(Stock taken over by Varun at 10% discount)
90,000

90,000
(v) Cash/Bank A/c   Dr.
   To Realisation A/c
(Bad Debts recovered)
1,400

1,400
(vi) Realisation A/c   Dr.
   To Vivek’s Capital A/c
(Expenses of realisation paid by Vivek)
4,900

4,900

1x6 = 6 Marks

Q81.2023 Main 67/5/1 · Q256 marks

C, D, E were partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2022 was as follows :

Balance Sheet of C, D and E as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Capitals :
C – 4,00,000
D – 2,00,000
E – 1,00,000



7,00,000
Machinery
Investments
Stock
Debtors
3,20,000
3,00,000
2,00,000
1,00,000
C’s Loan1,20,000Cash at Bank2,00,000
Sundry Creditors1,00,000
Bills payable2,00,000
11,20,00011,20,000

On the above date the firm was dissolved due to certain disagreement among the partners :

  1. Machinery of ₹ 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for ₹10,000.
  2. Investments realised ₹ 2,90,000.
  3. Stock was sold for ₹ 1,80,000.
  4. Debtors for ₹ 20,000 proved bad.
  5. Realisation expenses amounted to ₹ 10,000.

Prepare Realisation Account.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Realisation Account

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Machinery A/c (1)3,20,000By Creditors A/c (½)1,00,000
To Investments A/c3,00,000By Bills Payable A/c2,00,000
To Stock A/c2,00,000By Bank A/c (machinery)10,000
To Debtors A/c1,00,000By Bank A/c (investments)2,90,000
To Bank A/c (expenses) (½)10,000By Bank A/c (stock) (2)1,80,000
To Bank A/c (bills payable) (1)2,00,000By Bank A/c (debtors)80,000
By Partners’ Capital A/c (loss)
C1,62,000
D54,000
E (1)54,0002,70,000
11,30,00011,30,000

(6 marks)

Q82.2023 Supp. 67/C/1 · Q246 marks

M, S and R were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31.03.2022, their Balance Sheet was as follows :

Balance Sheet of M, S and R as at 31st March, 2022

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors80,000Fixed Assets1,20,000
Capitals :
M 60,000
S 50,000
R 30,000
1,40,000Stock70,000
Profit and Loss A/c50,000Debtors20,000
Bank60,000
2,70,0002,70,000

On the above date the firm was dissolved. Fixed assets realised ₹ 1,20,000 and stock realised ₹ 10,000. Debtors were realised at their book value and liabilities were paid in full.

Prepare Realisation Account and Partners’ Capital Accounts.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Realisation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Fixed Assets A/c1,20,000By Creditors A/c (½)80,000
To Stock A/c (1)70,000By Bank A/c (1)
Fixed assets 1,20,000
Stock 10,000
Debtors 20,000
1,50,000
To Debtors A/c20,000By Loss transferred to Partners’ Capital A/c’s: (1)
M 24,000
S 12,000
R 24,000
60,000
To Bank A/c
- creditors (½)
80,000
2,90,0002,90,000

4 marks (the (1) against Stock A/c covers the entries for Fixed Assets, Stock and Debtors)

Partners’ Capital Accounts

Dr.
Particulars
M (₹)S (₹)R (₹)Cr.
Particulars
M (₹)S (₹)R (₹)
To Realisation A/c24,00012,00024,000By balance b/d60,00050,00030,000
To Bank A/c56,00048,00026,000By P & L A/c20,00010,00020,000
80,00060,00050,00080,00060,00050,000

½ x 4 = 2 marks

= 4 + 2 = 6 marks

In the marking scheme a single bracketed (1) mark covers the three debit entries To Fixed Assets, To Stock and To Debtors.

Part A · Companies

7. Accounting for Share Capital

Q1.2026 Main 67/1/1 · Q3(a)1 mark

If 600 shares of ₹10 each, issued at a premium of ₹1 per share are forfeited on which ₹8 per share (including premium) have been called and ₹6 per share (including premium) have been paid, then ‘Share Forfeiture Account’ will be ________ by ________.

  1. credited, ₹3,000
  2. debited, ₹3,000
  3. debited, ₹3,600
  4. credited, ₹3,600
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) credited, ₹3,000

Q2.2026 Main 67/1/1 · Q6(b)1 mark

‘A company is formed according to the provisions of Company Law’ indicates which of the following characteristics of a company ?

  1. Common Seal
  2. Perpetual Succession
  3. Body Corporate
  4. Limited Liability
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) Body Corporate

Q3.2026 Main 67/1/1 · Q121 mark

Sakshi Ltd. forfeited 500 equity shares of ₹10 each, issued at a premium of ₹2 per share for non-payment of second and final call of ₹4 per share (including premium).

The maximum amount of discount at which these shares can be reissued is :

  1. ₹1 per share
  2. ₹6 per share
  3. ₹8 per share
  4. ₹5 per share
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹8 per share

Q4.2026 Main 67/1/1 · Q131 mark

Surya Ltd. issued 50,000 equity shares of ₹10 each. The amount was payable as follows :

on Application – ₹3 per share
on Allotment – ₹2 per share
on First and Final Call – the balance

Usha, to whom 700 shares were allotted, paid her entire share money on allotment. Raj, to whom 300 shares were allotted did not pay the first and final call. The amount to be debited to Bank Account for first and final call after it becomes due will be :

  1. ₹2,50,000
  2. ₹2,48,500
  3. ₹2,45,000
  4. ₹2,52,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) ₹2,45,000

Q5.2026 Main 67/2/1 · Q3(a)1 mark

As per Companies Act 2013, the balance in Securities Premium Account cannot be utilized for :

  1. Writing off preliminary expenses of the company.
  2. Writing off expenses of or commission paid or discount allowed on issue of shares or debentures of the company.
  3. Issuing partly paid up bonus shares to the existing shareholders of the company.
  4. Providing for premium payable on redemption of redeemable preference shares or debentures of the company.
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Issuing partly paid up bonus shares to the existing shareholders of the company.

Q6.2026 Main 67/2/1 · Q3(b)1 mark

When the company issues shares at a premium, the amount of premium can be received by the company along with :

  1. Application money
  2. Allotment money
  3. Call money
  4. Any of the above or with all the above
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) Any of the above or with all the above.

Q7.2026 Main 67/2/1 · Q6(a)1 mark

Hira Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable with application. Applications were received for 4,00,000 equity shares. The company decided to allot the shares on pro-rata basis to all the applicants. The amount refunded by the company was :

  1. ₹ 22,00,000
  2. ₹ 20,00,000
  3. ₹ 24,00,000
  4. Nil
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) ₹ 22,00,000

Q8.2026 Main 67/3/1 · Q4(a)1 mark

Paramount Ltd. forfeited 2,000 equity shares of ₹100 each, ₹80 called up, issued at a premium of 10%, for non-payment of first call of ₹20 per share. On forfeiture of these shares, Equity Share Capital Account will be ________ by ________.

  1. debited, ₹1,60,000
  2. credited, ₹1,60,000
  3. debited, ₹2,00,000
  4. credited, ₹2,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) debited, ₹1,60,000

Q9.2026 Main 67/3/1 · Q4(b)1 mark

Rudali Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of ₹2 per share. ₹5 per share (including premium) was payable on application. Applications for 2,60,000 shares were received. An applicant for 5,000 shares paid his entire share money along with application. The amount received on application was :

  1. ₹10,00,000
  2. ₹12,00,000
  3. ₹12,35,000
  4. ₹13,35,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) ₹13,35,000

Q10.2026 Main 67/3/1 · Q6(b)1 mark

A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called :

  1. Uncalled capital
  2. Paid-up capital
  3. Called-up capital
  4. Reserve capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) Reserve capital

Q11.2026 Main 67/4/1 · Q4(a)1 mark

6,000 shares of ₹ 25 each were forfeited for non-payment of final call money of ₹ 5 per share. The maximum discount that the company can allow on reissue of these shares will be :

  1. ₹ 30,000
  2. ₹ 90,000
  3. ₹ 1,20,000
  4. ₹ 1,50,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 1,20,000

Q12.2026 Main 67/4/1 · Q4(b)1 mark

5,000 shares of ₹ 20 each were forfeited for non-payment of second and final call of ₹ 4 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :

  1. ₹ 20,000
  2. ₹ 80,000
  3. ₹ 1,00,000
  4. ₹ 1,20,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) ₹ 20,000

Q13.2026 Main 67/4/1 · Q8(b)1 mark

As per the provisions of Companies Act, 2013, the amount received as Securities Premium cannot be utilised to :

  1. Issue fully paid bonus shares to the members
  2. Write off preliminary expenses of the company
  3. Purchase fixed assets
  4. Purchase its own shares, i.e. buyback of shares
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) Purchase fixed asset

Q14.2026 Main 67/4/1 · Q131 mark

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company is called :

  1. Subscribed but not fully paid capital
  2. Unissued capital
  3. Subscribed capital
  4. Reserve capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(D) Reserve Capital

Q15.2026 Main 67/5/1 · Q3(a)1 mark

Merak Ltd. forfeited 6,000 equity shares of ₹10 each for non-payment of final call of ₹3 per share. The minimum amount per share at which these shares can be reissued will be :

  1. ₹3
  2. ₹7
  3. ₹10
  4. ₹6
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(A) ₹3

Q16.2026 Main 67/5/1 · Q6(a)1 mark

Reserve capital is that portion of the _________ capital that can be called only in the event of winding up of the company.

  1. called-up
  2. uncalled
  3. paid-up
  4. subscribed
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) uncalled

Q17.2026 Main 67/5/1 · Q141 mark

At the time of forfeiture of shares, ‘Share Capital Account’ is debited with :

  1. Paid-up amount on forfeited shares
  2. Called-up amount on forfeited shares
  3. Face value of shares forfeited
  4. Unpaid amount on forfeited shares
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) Called-up amount on forfeited shares

Q18.2026 Supp. 67/7/1 · Q61 mark

Lily Ltd. forfeited 1,000 shares of ₹ 100 each issued at a premium of 10% on which application money of ₹ 40 per share had been paid. Out of these, 500 shares were reissued as fully paid up for ₹ 80 per share. The amount transferred to the Capital Reserve Account was :

  1. ₹ 40,000
  2. ₹ 10,000
  3. ₹ 30,000
  4. Nil
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ₹10,000

Q19.2026 Supp. 67/7/1 · Q7(a)1 mark

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company, is called :

  1. Subscribed capital
  2. Reserve capital
  3. Called-up capital
  4. Unissued capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) Reserve Capital

Q20.2026 Supp. 67/7/1 · Q121 mark

Glow Ltd. forfeited 900 equity shares of ₹ 100 each for non-payment of second and final call of ₹ 20 per share. These shares were reissued as fully paid up at maximum permissible discount as per Companies Act, 2013. The amount transferred to the Capital Reserve Account was :

  1. ₹ 90,000
  2. ₹ 72,000
  3. ₹ 18,000
  4. Nil
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) Nil

Q21.2025 Main 67/1/1 · Q3(a)1 mark

VL Ltd. offered for public subscription 90,000 equity shares of ₹ 10 each at a premium of 10%. The entire amount was payable on application. Applications were received for 1,00,000 shares and allotment was made to all the applicants on pro-rata basis. The amount received on application was ________.

  1. ₹ 10,00,000
  2. ₹ 9,00,000
  3. ₹ 9,90,000
  4. ₹ 11,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) ₹ 11,00,000

Q22.2025 Main 67/1/1 · Q61 mark

Money received in advance from the shareholders before it is actually called up by the directors is :

  1. credited to calls in advance account.
  2. debited to calls in advance account.
  3. credited to calls account.
  4. debited to calls in arrears account.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Credited to calls in advance account

Q23.2025 Main 67/1/1 · Q7(b)1 mark

That portion of the called up capital which has been actually received from the shareholders is known as :

  1. Paid up capital
  2. Called up capital
  3. Uncalled capital
  4. Reserve capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Paid up capital

Q24.2025 Main 67/1/1 · Q121 mark

4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :

  1. ₹ 8,000
  2. ₹ 32,000
  3. ₹ 40,000
  4. ₹ 48,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) ₹ 8,000

Q25.2025 Main 67/2/1 · Q101 mark

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as :

  1. Sweat equity
  2. Incorporation cost
  3. Private placement of shares
  4. Employee stock option plan
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(C) Private placement of shares

Q26.2025 Main 67/2/1 · Q111 mark

Ajay Ltd. forfeited 100 shares of ₹ 10 each for non-payment of first call of ₹ 1 per share and second and final call of ₹ 3 per share. The minimum price per share at which these shares can be reissued will be :

  1. ₹ 6
  2. ₹ 4
  3. ₹ 10
  4. ₹ 16
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) ₹4

Q27.2025 Main 67/2/1 · Q12(a)1 mark

The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as _________.

  1. Nominal capital
  2. Issued capital
  3. Reserve capital
  4. Subscribed capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Nominal Capital

Q28.2025 Main 67/2/1 · Q12(b)1 mark

According to Securities and Exchange Board of India (SEBI), guidelines, minimum subscription of capital cannot be less than 90% of _________.

  1. Authorised capital
  2. Issued capital
  3. Reserve capital
  4. Subscribed capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) Issued Capital

Q29.2025 Main 67/4/1 · Q101 mark

Diksha Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable on application. Applications were received for 3,00,000 equity shares. The company decided to allot the shares on pro-rata basis to all the applicants. The amount refunded by the company was :

  1. ₹ 22,00,000
  2. ₹ 33,00,000
  3. ₹ 11,00,000
  4. ₹ 20,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) ₹ 22,00,000

Q30.2025 Main 67/4/1 · Q11(a)1 mark

‘Reserve Capital’ can be utilised :

  1. any time during the life of the company.
  2. only at the time of winding up of the company.
  3. to issue fully paid bonus shares.
  4. to provide for premium on the redemption of preference shares.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(B) only at the time of winding up of the company.

Q31.2025 Main 67/4/1 · Q11(b)1 mark

An offer of securities or invitation to subscribe securities to a select group of persons is called :

  1. Sweat equity
  2. Employee Stock Option Plan
  3. Private placement
  4. Buy-back of shares
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) Private Placement.

Q32.2025 Main 67/4/1 · Q121 mark

That portion of the called-up capital which has been actually received from the shareholders is called :

  1. Issued Capital
  2. Reserve Capital
  3. Paid-up Capital
  4. Nominal/Registered Capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) Paid-up Capital

Q33.2025 Main 67/4/1 · Q13(b)1 mark

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of __________ capital.

  1. Reserve
  2. Issued
  3. Nominal/Registered
  4. Subscribed
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(B) Issued

Q34.2025 Main 67/5/1 · Q6(a)1 mark

Jeeta Ltd. forfeited 300 shares of ₹ 100 each for the non-payment of final call of ₹ 10 per share. The amount credited to share forfeiture account will be :

  1. ₹ 30,000
  2. ₹ 27,000
  3. ₹ 9,000
  4. ₹ 3,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) ₹27,000

Q35.2025 Main 67/5/1 · Q6(b)1 mark

Meeta Ltd. invited applications for issuing 30,000 equity shares of ₹ 10 each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of ₹ 2 per share. His shares were forfeited. The second call of ₹ 3 per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be :

  1. ₹ 3,00,000
  2. ₹ 2,95,000
  3. ₹ 700
  4. ₹ 300
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) ₹700

Q36.2025 Main 67/5/1 · Q131 mark

X Ltd. invited applications for issuing 90,000 equity shares of ₹ 100 each. The amount per share was payable as follows :

On Application–₹ 20
On Allotment–₹ 50
On First and final call–Balance

Applications for 2,00,000 shares were received. An applicant who had applied for 5,000 shares paid the entire share money with the application. The total application money received by the company was :

  1. ₹ 44,00,000
  2. ₹ 40,00,000
  3. ₹ 18,00,000
  4. ₹ 90,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) ₹44,00,000

Q37.2025 Main 67/6/1 · Q4(a)1 mark

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company, is called :

  1. Subscribed but not fully paid up capital
  2. Unissued capital
  3. Reserve capital
  4. Subscribed capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) Reserve capital

Q38.2025 Main 67/6/1 · Q4(b)1 mark

When applications for more shares of a company are received than the number of shares offered to the public for subscription, it is known as :

  1. Over subscription
  2. Full subscription
  3. Subscription at premium
  4. Under subscription
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Over subscription

Q39.2025 Main 67/6/1 · Q6(a)1 mark

Manas Ltd. forfeited 600 shares of ₹10 each for the non-payment of first call of ₹2 per share. The final call of ₹3 per share was not yet called. In the journal entry for forfeiture of shares, 'Share Forfeiture Account' will be :

  1. Debited by ₹1,200
  2. Credited by ₹1,200
  3. Debited by ₹3,000
  4. Credited by ₹3,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Credited by ₹3,000

Q40.2025 Main 67/6/1 · Q6(b)1 mark

Rajesh Ltd. forfeited 300 equity shares of ₹100 each, ₹70 called up for the non-payment of first call of ₹20 per share. Out of these shares, 100 shares were reissued @ ₹100 per share, ₹70 paid up. How much balance will remain in the share forfeiture account after reissue of 100 shares ?

  1. ₹10,000
  2. ₹3,000
  3. ₹21,000
  4. ₹5,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) ₹10,000

Q41.2025 Main 67/6/1 · Q131 mark

Java Ltd. forfeited 600 equity shares of ₹100 each ₹80 called up for the non-payment of first call of ₹20 per share. These shares were reissued at ₹90 per share fully paid up. The amount transferred to 'Capital Reserve' will be :

  1. ₹36,000
  2. ₹30,000
  3. ₹48,000
  4. ₹54,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) ₹30,000

Q42.2025 Main 67/7/1 · Q31 mark

The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as :

  1. Issued Capital
  2. Reserve Capital
  3. Nominal Capital/Registered Capital
  4. Subscribed Capital
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Nominal Capital/ Registered Capital

Q43.2025 Main 67/7/1 · Q6(a)1 mark

X Ltd. forfeited 100 shares of ₹100 each for non-payment of the allotment money of ₹15 per share (including premium ₹5). The first and final call of ₹50 per share was not yet made. The amount that was debited to share capital account was :

  1. ₹4,500
  2. ₹1,500
  3. ₹10,000
  4. ₹5,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) ₹5,000

Q44.2025 Main 67/7/1 · Q6(b)1 mark

Raman Ltd. forfeited 500 shares of ₹10 each for non-payment of final call of ₹2 per share. Out of the forfeited shares, 300 shares were re-issued at ₹12 per share fully paid-up. The amount that was transferred to Capital Reserve Account was :

  1. ₹2,400
  2. ₹3,000
  3. ₹4,000
  4. ₹5,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) ₹2,400

Q45.2025 Main 67/7/1 · Q131 mark

MK Ltd. forfeited 100 shares of ₹10 each. The amount forfeited was ₹800. The maximum discount per share at which these shares may be reissued will be :

  1. ₹2
  2. ₹9
  3. ₹1
  4. ₹8
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) ₹8

Q46.2025 Supp. 67/S/1 · Q3(a)1 mark

Which of the following statements is true for ‘Reserve Capital’ ?

  1. It is the portion of the uncalled capital to be called only in the event of winding up of the company.
  2. It is that part of the authorised capital that is actually issued to the public for subscription.
  3. It is a part of the subscribed capital which has been called up to subscribe.
  4. It is that portion of the called up capital which has been actually received from the shareholders.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) It is the portion of uncalled capital to be called only in the event of winding up of the company.

Q47.2025 Supp. 67/S/1 · Q7(a)1 mark

Pawan Ltd. forfeited 1,000 equity shares of ₹ 10 per share for non-payment of first call of ₹ 2 per share. The final call of ₹ 2 per share was yet to be made. The maximum amount of discount at which these shares can be reissued will be :

  1. ₹ 6,000
  2. ₹ 2,000
  3. ₹ 4,000
  4. ₹ 8,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) ₹6,000

Q48.2025 Supp. 67/S/1 · Q121 mark

Parachita Ltd. invited applications for issuing 80,000 equity shares of ₹ 100 each at par. The amount was payable as under :

On Application — ₹ 30 per share
On Allotment — ₹ 20 per share
On first and final call — Balance amount

Applications were received for 2,00,000 equity shares. Allotment was made to all applicants on pro-rata basis. The amount received at the time of allotment was :

  1. ₹ 16,00,000
  2. ₹ 24,00,000
  3. Nil
  4. ₹ 40,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) Nil

Q49.2025 Supp. 67/S/1 · Q131 mark

At the time of forfeiture of shares, Share Capital Account will be debited with :

  1. Unpaid amount on forfeited shares
  2. Face value of shares forfeited
  3. Paid up amount on forfeited shares
  4. Called up amount on forfeited shares
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) Called up amount on forfeited shares

Q50.2024 Main 67/1/1 · Q91 mark

Alfa Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was :

  1. ₹32,50,000
  2. ₹15,60,000
  3. ₹39,00,000
  4. ₹26,00,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) ₹26,00,000

Q51.2024 Main 67/1/1 · Q101 mark

Reserve capital is that part of _________ capital which cannot be called except at the time of winding up of the company.

  1. Issued
  2. Called up
  3. Uncalled
  4. Nominal
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Uncalled

Q52.2024 Main 67/1/1 · Q111 mark

Xeno Ltd. issued 25,000 equity shares of ₹10 each. The amount was payable as follows :

On Application₹4 per share
On Allotment₹5 per share
On First and Final callBalance

All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment. First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by :

  1. ₹15,000
  2. ₹24,000
  3. ₹13,500
  4. ₹18,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) ₹13,500

Q53.2024 Main 67/1/1 · Q13(a)1 mark

Money received in advance from shareholders before it is actually called up by the directors is :

  1. debited to calls in advance account
  2. credited to calls in advance account
  3. debited to share capital account
  4. credited to share capital account
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) Credited to calls in advance account

Q54.2024 Main 67/1/1 · Q13(b)1 mark

An offer of securities or invitation to subscribe securities to a select group of persons is termed as :

  1. Buy back of shares
  2. Employee stock option plan
  3. Private placement of shares
  4. Sweat Equity
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Private placement of shares

Q55.2024 Main 67/1/1 · Q14(a)1 mark

A share of ₹100 on which ₹80 is received is forfeited for non-payment of final call of ₹20. The minimum price at which this share can be reissued is :

  1. ₹120
  2. ₹100
  3. ₹80
  4. ₹20
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) ₹20

Q56.2024 Main 67/1/1 · Q14(b)1 mark

Shiv Ltd. forfeited 500 shares of ₹10 each on which ₹7 per share was paid. These shares were reissued for ₹9 per share fully paid. Amount transferred to Capital Reserve Account will be :

  1. ₹3,000
  2. ₹5,000
  3. ₹4,500
  4. ₹3,500
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) ₹3,000

Q57.2024 Main 67/2/1 · Q1(i)1 mark

If a share of ₹ 100 on which ₹ 70 has been paid is forfeited, then at which minimum price can it be re-issued ?

  1. ₹ 100
  2. ₹ 30
  3. ₹ 70
  4. ₹ 130
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) ₹ 30

Q58.2024 Main 67/2/1 · Q1(ii)1 mark

If a share of ₹ 10 issued at a premium of ₹ 2 per share, on which ₹ 8 (including premium) has been called and ₹ 6 (including premium) has been paid by the shareholder, is forfeited, then Share Capital Account will be debited with :

  1. ₹ 10
  2. ₹ 4
  3. ₹ 8
  4. ₹ 6
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) ₹ 6

Q59.2024 Main 67/2/1 · Q12(i)1 mark

Nominal/Authorised share capital is :

  1. that part of the share capital which is issued by the company.
  2. the amount of share capital which is actually applied for by the prospective shareholders.
  3. the maximum amount of share capital which a company is authorised to issue.
  4. the amount actually paid by the shareholders.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) the maximum amount of share capital which a company is authorised to issue.

Q60.2024 Main 67/3/1 · Q91 mark

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be :

  1. ₹ 52,80,000
  2. ₹ 55,00,000
  3. ₹ 50,00,000
  4. ₹ 48,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) ₹ 52,80,000

Q61.2024 Main 67/3/1 · Q101 mark

Assertion (A) : When the shares are forfeited, share capital account is debited with the amount called up and credited to (i) respective unpaid calls account i.e., calls in arrears and (ii) share forfeiture account with the amount already received on shares.

Reason (R) : When the shares are forfeited, all entries relating to the shares forfeited, except those relating to securities premium, already recorded in accounting records must be reversed.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) incorrect.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q62.2024 Main 67/3/1 · Q111 mark

Lexa Ltd. issued 50,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows :

On application and allotment– ₹ 7 per share (including premium)
On first and final call– Balance

The issue was fully subscribed. All the money was duly received except the first and final call on 1,000 equity shares. These shares were forfeited. On forfeiture of these shares Calls in Arrears Account will be :

  1. credited by ₹ 7,000
  2. debited by ₹ 5,000
  3. credited by ₹ 5,000
  4. debited by ₹ 7,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) credited by ₹ 5,000

Q63.2024 Main 67/3/1 · Q121 mark

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of which of the following capital ?

  1. Reserve Capital
  2. Nominal Capital
  3. Subscribed Capital
  4. Issued Capital
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(D) Issued Capital

Q64.2024 Main 67/3/1 · Q13(a)1 mark

KLB Ltd. forfeited 3,000 shares of 10 each, ₹ 8 per share called up for non-payment of first call of ₹ 2 per share. All these shares were reissued at ₹ 7 per share, ₹ 8 paid up. The amount transferred to Capital Reserve Account will be :

  1. ₹ 18,000
  2. ₹ 24,000
  3. ₹ 15,000
  4. ₹ 3,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) ₹ 15,000

Q65.2024 Main 67/3/1 · Q13(b)1 mark

NUK Ltd. forfeited 1,000 shares of ₹ 10 each, fully called up for non-payment of final call of ₹ 2 per share. 800 of these shares were reissued at ₹ 11 per share fully paid. The amount credited to Capital Reserve Account will be :

  1. ₹ 6,400
  2. ₹ 8,000
  3. ₹ 7,200
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) ₹ 6,400

Q66.2024 Main 67/4/1 · Q4(a)1 mark

Vishant Ltd. invited applications for issuing 6,000 equity shares of ₹ 10 each at 10% premium. The issue was fully subscribed. The amount per share was payable as follows :
On application - ₹ 3, on allotment - ₹ 3 (including premium), on first call - ₹ 3 and on final call - ₹ 2. Ashish the holder of 200 shares paid the entire money along with allotment. The total amount received on allotment was :

  1. ₹ 18,000
  2. ₹ 19,000
  3. ₹ 25,000
  4. ₹ 21,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) ₹19,000

Q67.2024 Main 67/4/1 · Q4(b)1 mark

M Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of 10% for non-payment of final call of ₹ 2 per share. The minimum amount at which these shares can be reissued as fully paid up will be :

  1. ₹ 5,000
  2. ₹ 10,000
  3. ₹ 12,000
  4. ₹ 50,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) ₹10,000

Q68.2024 Main 67/4/1 · Q151 mark

As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for :

  1. buy back of shares
  2. issue of partly paid bonus shares
  3. writing off discount on issue of debentures
  4. writing off preliminary expenses
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) issue of partly paid bonus shares

Q69.2024 Main 67/4/1 · Q161 mark

If vendors are issued fully paid shares of ₹ 1,25,000 in purchase consideration of net assets of ₹ 1,50,000, the balance of ₹ 25,000 will be credited to :

  1. Statement of Profit and Loss
  2. Goodwill Account
  3. Capital Reserve Account
  4. Profit and Loss Adjustment Account
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) Capital Reserve Account

Q70.2024 Main 67/5/1 · Q3(a)1 mark

If all the forfeited shares are reissued, the balance, if any, left in the Forfeited Shares Account is transferred to :

  1. General Reserve Account
  2. Securities Premium Account
  3. Capital Reserve Account
  4. Statement of Profit and Loss
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) Capital Reserve Account

Q71.2024 Main 67/5/1 · Q3(b)1 mark

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be :

  1. ₹ 4
  2. ₹ 6
  3. ₹ 8
  4. ₹ 10
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A) ₹4

Q72.2024 Main 67/5/1 · Q71 mark

Assertion (A) : Securities Premium cannot be utilized for writing off loss on sale of a fixed asset.
Reason (R) : Securities Premium can be applied only for the purposes mentioned in the Companies Act, 2013.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct reason of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct reason of Assertion (A).
  3. Both Assertion (A) and Reason (R) are false.
  4. Assertion (A) is false, but Reason (R) is true.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct reason of Assertion (A).

Q73.2024 Main 67/5/1 · Q121 mark

Kewal Ltd. purchased sundry assets from Ganpati Ltd. for ₹ 28,60,000. The amount was paid by issuing fully paid shares of ₹ 100 each issued at a premium of 10%. The number of shares issued to Ganpati Ltd. were :

  1. 28,000
  2. 31,778
  3. 28,600
  4. 26,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) 26,000

Q74.2024 Main 67/5/1 · Q131 mark

Sarita Ltd. forfeited 100 shares of ₹ 10 each, ₹ 8 called up issued at a premium of ₹ 2 per share to Ramesh for non-payment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not made. Out of these 70 shares were reissued to Ashok as ₹ 8 called up for ₹ 10 per share. The gain on reissue will be :

  1. ₹ 500
  2. ₹ 400
  3. ₹ 350
  4. ₹ 300
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) ₹350

Q75.2024 Supp. 67/S/1 · Q91 mark

Beeta Ltd. offered for subscription 1,00,000 equity shares of ₹ 10 each at a premium of 100% payable entirely on application. Applications were received for 5,00,000 equity shares. The company decided to allot the shares on pro-rata basis to all the applicants. The amount received by the company on application was :

  1. ₹ 1,00,00,000
  2. ₹ 20,00,000
  3. ₹ 1,20,00,000
  4. ₹ 80,00,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) ₹ 1,00,00,000

Q76.2024 Supp. 67/S/1 · Q101 mark

The amount of share capital which a company is authorised to issue by its Memorandum of Association is called :

  1. Issued capital
  2. Subscribed capital
  3. Reserve capital
  4. Nominal capital
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) Nominal capital

Q77.2024 Supp. 67/S/1 · Q111 mark

Sinoy Ltd. issued 20,000 shares of ₹ 10 each at a premium of ₹ 6. The amount was payable as follows :

On Application– ₹ 7 per share (Including Premium ₹ 1 per share)
On Allotment– ₹ 5 per share (Including Premium ₹ 2 per share)
On First and Final call– Balance

The issue was fully subscribed. All the money was duly received except the allotment and first and final call on 1,000 shares. These shares were forfeited. On forfeiture of these shares, the ‘Securities Premium Account’ will be debited by :

  1. ₹ 2,000
  2. ₹ 3,000
  3. ₹ 5,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) ₹5,000

Q78.2024 Supp. 67/S/1 · Q13(a)1 mark

Money not received from shareholders on allotment or calls is :

  1. debited to calls in advance account.
  2. credited to calls in advance account.
  3. debited to calls in arrears account.
  4. credited to calls in arrears account.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) debited to calls in arrears account.

Q79.2023 Main 67/1/1 · Q3(i)1 mark

Akshita Ltd. issued fully paid shares of ₹ 5,00,000 in purchase consideration of net assets of ₹ 4,70,000. The balance of ₹ 30,000 will be ______ to _______ account.

  1. debited, Goodwill
  2. debited, Capital Reserve
  3. credited, Capital Reserve
  4. credited, General Reserve
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) Debited, Goodwill

Q80.2023 Main 67/1/1 · Q6(i)1 mark

A company forfeited 400 shares of ₹ 10 each, ₹ 8 per share called up for non-payment of first call of ₹ 2 per share. On forfeiture of these shares, ‘Share Capital’ account will be debited with :

  1. ₹ 4,000
  2. ₹ 800
  3. ₹ 3,200
  4. ₹ 2,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) ₹ 3,200

Q81.2023 Main 67/1/1 · Q6(ii)1 mark

Xyle Ltd. forfeited 700 shares of ₹ 10 each issued at a premium of 10% for non-payment of allotment money of ₹ 5 per share (including premium) and first and final call of ₹ 3 per share. On forfeiture of these shares, ‘Share Forfeiture Account’ will be credited with :

  1. ₹ 7,000
  2. ₹ 1,400
  3. ₹ 4,900
  4. ₹ 2,100
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) ₹ 2,100

Q82.2023 Main 67/1/1 · Q121 mark

That part of the authorised capital which is actually issued to the public for subscription is called :

  1. Subscribed capital
  2. Issued capital
  3. Authorised capital
  4. Reserve capital
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) Issued capital

Q83.2023 Main 67/1/1 · Q131 mark

Zinki Limited forfeited a share of ₹ 100 issued at a premium of 20% for non-payment of first call of ₹ 30 per share and final call of ₹ 10 per share. The minimum price at which this share can be reissued is :

  1. ₹ 40
  2. ₹ 60
  3. ₹ 20
  4. ₹ 100
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) ₹ 40

Q84.2023 Main 67/2/1 · Q3(a)1 mark

Radhe Ltd. forfeited 500 shares of ₹10 each fully called up for non-payment of final call of ₹3 per share. 300 of these shares were reissued at ₹8 per share as fully paid-up. The amount credited to Capital Reserve Account was :

  1. ₹1,500
  2. ₹2,100
  3. ₹3,200
  4. ₹1,800
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) ₹1,500

Q85.2023 Main 67/2/1 · Q3(b)1 mark

A Company forfeited 1000 shares of ₹10 each, ₹7 called up for non-payment of first call of ₹2 per share. All these shares were reissued at ₹5 per share ₹7 paid up. The amount transferred to Capital Reserve Account was :

  1. ₹2,000
  2. ₹3,000
  3. ₹4,000
  4. ₹5,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) ₹3,000

Q86.2023 Main 67/2/1 · Q71 mark

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as :

  1. Private placement of shares
  2. Sweat equity
  3. Incorporation cost
  4. Employee stock option plan
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Private placement of shares

Q87.2023 Main 67/2/1 · Q101 mark

At the time of forfeiture of shares, share capital account is debited with :

  1. Uncalled amount on shares
  2. Paid up amount on shares
  3. Called up amount on shares
  4. Unpaid amount on shares
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) Called up amount on shares

Q88.2023 Main 67/2/1 · Q12(a)1 mark

Net Assets minus capital reserve is :

  1. Purchase consideration
  2. Goodwill
  3. Total Assets
  4. Liquid Assets
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Purchase consideration

Q89.2023 Main 67/2/1 · Q12(b)1 mark

When a company issues shares at a premium, the company can collect securities premium along with the following :

  1. Application money
  2. Allotment money
  3. Call money
  4. Any of the above
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) Any of the above

Q90.2023 Main 67/3/1 · Q51 mark

Which of the following statements is true for ‘Reserve Capital’ ?

  1. It is a portion of the uncalled capital to be called only in the event of winding up of the company.
  2. It is a part of the subscribed capital which has been called-up on the shares.
  3. It is that portion of the called-up capital which has been actually received from the shareholders.
  4. It is that part of the authorised capital that is actually issued to the public for subscription.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) It is a portion of the uncalled capital to be called only in the event of winding up of the company.

Q91.2023 Main 67/3/1 · Q8(i)1 mark

A share of ₹ 10 issued at a premium of ₹ 2 per share on which ₹ 8 per share (including premium) have been called and ₹ 6 per share (including premium) is received, is forfeited. Share Capital Account will be debited by :

  1. ₹ 10
  2. ₹ 8
  3. ₹ 12
  4. ₹ 6
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) ₹ 6

Q92.2023 Main 67/3/1 · Q8(ii)1 mark

A share of ₹ 100 on which ₹ 70 has been received is forfeited for non-payment of final call of ₹ 30. The minimum price at which this share can be re-issued is :

  1. ₹ 70
  2. ₹ 30
  3. ₹ 100
  4. ₹ 130
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) ₹ 30

Q93.2023 Main 67/4/1 · Q3(i)1 mark

Manmohan Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount payable per share was as follows :
On application ₹ 3; on allotment ₹ 4 and on first and final call ₹ 3.
Applications were received for 1,45,000 equity shares. Applications for 20,000 equity shares were rejected and remaining applicants were allotted shares on a pro-rata basis. Excess application money received with application was adjusted towards sums due on allotment and first and final call. Amount credited to calls-in-advance account was :

  1. ₹ 2,25,000
  2. ₹ 25,000
  3. ₹ 1,75,000
  4. Nil
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) ₹ 25,000

Q94.2023 Main 67/4/1 · Q3(ii)1 mark

Which of the following statement is correct regarding subscribed capital ?

  1. It is the amount of share capital which a company is authorised to issue by its Memorandum of Association.
  2. It is that part of authorised capital which is actually issued to the public for subscription.
  3. It is that part of the issued capital which has been actually subscribed by the public.
  4. It is that part of the called-up capital which has been actually received from shareholders.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) It is that part of the issued capital which has been actually subscribed by the public.

Q95.2023 Main 67/4/1 · Q81 mark

Part of the uncalled share capital that can be called up only at the time of winding up of the company is called :

  1. Issued capital
  2. Paid-up capital
  3. Reserve capital
  4. Un-issued capital
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) Reserve capital

Q96.2023 Main 67/4/1 · Q121 mark

Chavi Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of ₹ 5 per share for non-payment of first and final call of ₹ 4 per share. On forfeiture, ‘Share Forfeiture Account’ will be credited by :

  1. ₹ 20,000
  2. ₹ 30,000
  3. ₹ 50,000
  4. ₹ 55,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) ₹30,000

Q97.2023 Main 67/5/1 · Q3(a)1 mark

Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share. Share Forfeited Account will be credited with :

  1. ₹ 5,50,000
  2. ₹ 7,70,000
  3. ₹ 2,20,000
  4. ₹ 5,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) ₹5,50,000

Q98.2023 Main 67/5/1 · Q3(b)1 mark

Which of the following statements is true ?

  1. The shares of a public limited company are not freely transferable.
  2. Paid up capital is that part of the subscribed capital which has been called up.
  3. The company cannot raise more capital than the amount of capital as specified in the Memorandum of Association.
  4. The part of the uncalled capital which is called only in the event of winding up of the company is called Capital Reserve.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) The company cannot raise more capital than the amount of capital as specified in the Memorandum of Association

Q99.2023 Main 67/5/1 · Q121 mark

An equity share of ₹ 10 fully called up on which ₹ 6 has been paid was forfeited for the non-payment of the balance amount. At which of the following minimum price can it be reissued ?

  1. ₹ 4
  2. ₹ 10
  3. ₹ 16
  4. ₹ 6
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) ₹4

Q100.2023 Main 67/5/1 · Q131 mark

200 equity shares of ₹ 10 each issued at par were forfeited for non-payment of first call of ₹ 3 per share. Final call of ₹ 2 per share was not yet called. By which amount the share capital will be debited on forfeiture ?

  1. ₹ 2,000
  2. ₹ 1,600
  3. ₹ 1,000
  4. ₹ 2,200
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) ₹1,600

Q101.2023 Supp. 67/C/1 · Q12(b)1 mark

Raja Ltd. purchased machinery for ₹ 25,00,000 from Sharma Ltd. The payment to Sharma Ltd. was made by issue of equity shares of ₹ 10 each at a premium of 25%. The amount to be credited to the ‘Securities Premium Reserve Account’ on issue of equity shares will be :

  1. ₹ 25,000
  2. ₹ 50,000
  3. ₹ 62,500
  4. ₹ 5,00,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(D) ₹5,00,000

Q102.2023 Supp. 67/C/1 · Q161 mark

BB Ltd. forfeited 4000 shares of ₹ 10 each for non-payment of final call of ₹ 5 per share. The forfeited amount was ₹ 20,000. The minimum amount per share at which these shares can be re-issued will be :

  1. ₹ 6
  2. ₹ 7
  3. ₹ 5
  4. ₹ 4
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) ₹5

Q103.SQP 2025-26 · Q3(a)1 mark

Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for 1,95,000 shares, which were duly allotted. The amount was payable as ₹3 on Application (including ₹1 premium), ₹ 6 on Allotment (including ₹1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share as fully paid up. The amount of Capital Reserve will be:

  1. ₹ 16,000
  2. ₹ 12,000
  3. ₹ 8,000
  4. ₹ 18,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ 8,000

Q104.SQP 2025-26 · Q3(b)1 mark

Prafful Limited forfeited 15,000 shares of ₹ 20 each on which ₹ 8 (including ₹ 2 premium) was paid. Out of these 13,000 shares were re-issued @ ₹ 19 per share as fully paid up. Determine the amount of Share Forfeited balance.

  1. ₹ 90,000
  2. ₹ 91,000
  3. ₹ 12,000
  4. ₹ 16,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ 12,000

Q105.SQP 2025-26 · Q4(b)1 mark

Dawn Ltd. purchased Equipment and paid ₹ 2,20,000 by cheque and issued 16,000 equity shares of ₹ 10 each at 25% premium. The purchase consideration will be:

  1. ₹ 3,40,000
  2. ₹ 4,20,000
  3. ₹ 3,80,000
  4. ₹ 2,00,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) Rs. 4,20,000

Q106.SQP 2026-27 · Q31 mark

Assertion (A): Issue price more than face value received on issue of shares is credited to securities premium account but not to statement of profit and loss.

Reason (R): In case of forfeiture of shares, securities premium not received is debited.

  1. Both (A) and (R) are true and (R) is correct explanation to (A).
  2. Both (A) and (R) are true but (R) is not correct explanation of (A).
  3. (A) is false but (R) is correct.
  4. (A) is correct but (R) is false.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) Both (A) and (R) are true but (R) is not correct explanation to (A).

Q107.SQP 2026-27 · Q41 mark

A Ltd. invited applications for 50,000 shares of ₹10 each at par. Applications were received for 80,000 shares. Shares were allotted on a pro-rata basis to applicants of 60,000 shares.

If application money was ₹3 per share and allotment money was ₹4 per share, how much amount will be received on allotment from an applicant who applied for 6,000 shares?

  1. ₹ 20,000
  2. ₹ 24,000
  3. ₹ 21,000
  4. ₹ 17,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(D) ₹17,000

Q108.SQP 2026-27 · Q111 mark

Tanya Ltd. issued 1,00,000 equity shares of ₹10 each at a premium of ₹2 per share. The amount was payable as follows: ₹4 on Application (including ₹1 premium) ₹5 on Allotment (including ₹1 premium) and ₹3 on Call. Applications were received for 95,000 shares, which were duly allotted. Ravi, holding 3,000 shares, failed to pay the allotment, so his shares were forfeited just after allotment. Later, 2,000 of these shares were reissued at ₹9 per share as fully paid up. What amount will be transferred to Capital Reserve?

  1. ₹ 4,000
  2. ₹ 7,000
  3. ₹ 10,000
  4. ₹ 6,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) ₹4,000

Q109.SQP 2026-27 · Q121 mark

Aarav Ltd. acquired the business of Mehul Ltd. as per the following agreement:

  • Assets of ₹ 20,00,000 were taken over at ₹18,00,000
  • Liabilities of ₹ 2,80,000 were taken over at ₹2,50,000

The purchase consideration was discharged by:

  • Issuing 12,000 equity shares of ₹100 each at a premium of 25%
  • ₹1,00,000 through bank draft.

The amount of Goodwill/ Capital Reserve arising on acquisition will be:

  1. Goodwill ₹50,000
  2. Capital Reserve ₹50,000
  3. Goodwill ₹1,50,000
  4. Capital Reserve ₹1,50,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) Goodwill ₹50,000

Q110.SQP 2026-27 · Q151 mark

Ritika Ltd. issued 1,000 equity shares of ₹80 each at a premium of ₹10 per share. Application and allotment money of ₹50 (including ₹6 premium) per share was called, and the entire amount was duly received.

What will be amount reflecting in the Subscribed but not fully paid-up capital:

  1. ₹50,000
  2. ₹44,000
  3. ₹56,000
  4. NIL
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) ₹44,000

Q111.2026 Main 67/1/1 · Q19(a)3 marks

Raunak Cotton Ltd. purchased machinery of ₹6,80,000 from Heavy Machines Ltd. The Payment to Heavy Machines Ltd. was made by issuing 10,500 equity shares of ₹50 each at a premium of 20% and the balance through a cheque.

Pass necessary journal entries for the above transactions in the books of Raunak Cotton Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Raunak Cotton Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Machinery A/c ……Dr.6,80,000
To Heavy Machines Ltd.6,80,000
(Machinery purchased from Heavy Machines Ltd.) [1 mark]
Heavy Machines Ltd. ……Dr.6,80,000
To Equity Share Capital A/c5,25,000
To Securities Premium A/c1,05,000
To Bank A/c50,000
(Paid Heavy Machines Ltd. by issue of equity shares at a premium and the balance through a cheque) [2 marks]

Alternatively the following two entries may be passed-

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Heavy Machines Ltd. ……Dr.6,30,000
To Equity Share Capital A/c5,25,000
To Securities Premium A/c1,05,000
(Paid Heavy Machines Ltd. by issue of equity shares at a premium) [1 mark]
Heavy Machines Ltd. ……Dr.50,000
To Bank A/c50,000
(Balance due to Heavy Machines Ltd. paid through a cheque) [1 mark]

(1 + 2 = 3 marks)

Q112.2026 Main 67/4/1 · Q20(a)3 marks

Century Ltd. forfeited 5,000 shares of ₹ 100 each issued at 40% premium for non-payment of allotment money of ₹ 35 per share and first call of ₹ 50 per share (including premium ₹ 25). The second and final call of ₹ 40 per share (including premium ₹ 15) has not yet been called. Out of these, 3,000 shares were reissued as fully paid-up for ₹ 90 per share.

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the books of Century Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Century Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share first call A/c
(5000 shares forfeited for non-payment of allotment and first call money) (1)
3,75,000
1,25,000




75,000
1,75,000
2,50,000
Or
Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(5000 shares forfeited for non-payment of allotment and first call money)
3,75,000
1,25,000



75,000
4,25,000
Bank A/c ... Dr.
Share forfeiture A/c ... Dr.
To Share Capital A/c
(Reissue of 3,000 shares of ₹ 100 each as fully paid for ₹ 90 per share) (1)
2,70,000
30,000


3,00,000
Share forfeiture A/c ... Dr.
To Capital Reserve A/c
(Gain on reissue of 3,000 forfeited shares transferred to capital reserve account) (1)
15,000

15,000

1 + 1 + 1 = 3 Marks

Q113.2025 Supp. 67/S/1 · Q19(a)3 marks

Aman Ltd. took over the assets of ₹ 15,00,000 and liabilities of ₹ 17,00,000 of Kamini Ltd. for a purchase consideration of ₹ 30,00,000. Aman Ltd. paid 40% of the purchase consideration by cheque and the balance amount by issue of fully paid equity shares of ₹ 100 each at a premium of 50% in favour of Kamini Ltd.

Pass necessary journal entries for the above transactions in the books of Aman Ltd.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Aman Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Sundry Assets A/c ... Dr.15,00,000
Goodwill A/c (Bal. Fig.) ... Dr.32,00,000
    To Sundry Liabilities A/c17,00,000
    To Kamini Ltd.30,00,000
(Assets and liabilities of Kamini Ltd. taken over) [1 mark]
Kamini Ltd. ... Dr.30,00,000
    To Bank A/c12,00,000
    To Equity Share Capital A/c12,00,000
    To Securities Premium A/c6,00,000
(Issue of 12,000 shares of ₹100 each at a premium of 50%) [2 marks]

Note:- If the examinee has passed separate entries for issue of cheque and Equity Shares, full credit is to be given.

Working Note:
No. of debentures issued = (Purchase Consideration) / Issue Price
= ₹18,00,000/ ₹150 = 12,000 shares

1 + 2 = 3 marks

Q114.2024 Main 67/4/1 · Q18(b)3 marks

Manika Ltd. forfeited 500 shares of ₹ 100 each for non-payment of first call of ₹ 20 per share and second and final call of ₹ 25 per share. 250 of these shares were reissued at ₹ 50 per share fully paid up. Pass the Journal Entries for forfeiture and reissue of shares.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Manika Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c ... Dr
To Forfeited Shares A/c
To Share first call A/c
To Share second & final call A/c
(Forfeiture of 500 shares for non payment of first and second call)
50,000
27,500
10,000
12,500
Alternatively
Share Capital A/c ... Dr
To Forfeited Shares A/c
To Calls in Arrears A/c
(Forfeiture of 500 shares for non payment of first and second call)
50,000
27,500
22,500
Bank A/c ... Dr
Forfeited Shares A/c ... Dr
To Share Capital A/c
(Reissue of 250 shares)
12,500
12,500


25,000
Forfeited Shares A/c ... Dr
To Capital Reserve A/c
(Balance in forfeited shares account transferred to capital reserve account.)
1,250
1,250

(1 × 3 = 3 Marks)

Q115.2024 Main 67/5/1 · Q19(a)3 marks

Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of ₹ 10 each at a premium of 10% and a bank draft of ₹ 50,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Chavi Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i)Machinery A/c Dr.1,60,0001
To Neo Ltd. A/c1,60,000
(Machinery purchased from Neo Ltd.)
(ii)Neo Ltd. A/c Dr.1,60,0002
To Equity Share Capital A/c1,00,000
To Securities Premium A/c10,000
To Bank A/c50,000
(Issued 10,000 equity shares of ₹10 each at a premium of 10% and bank draft in favour of Neo Ltd.)

Alternatively:

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(ii)(a)Neo Ltd. A/c Dr.1,10,000
To Equity Share Capital A/c1,00,000
To Securities Premium A/c10,000
(Issued 10,000 equity shares of ₹10 each at a premium of 10% to Neo Ltd.)
(b)Neo Ltd. A/c Dr.50,000
To Bank A/c50,000
(Payment made to Neo Ltd. by a bank draft)

(1 + 2 = 3 marks)

Q116.2023 Main 67/1/1 · Q19(a)3 marks

Annex Ltd. issued 1,00,000 shares of ₹ 10 each at a premium of 10% to the public for subscription. The whole amount was payable on application. Applications were received for 3,00,000 shares and the board decided to allot shares to all shareholders on pro-rata basis.

Pass necessary journal entries for the above transactions in the books of Annex Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Books of Annex Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Bank A/c Dr.33,00,0001½
    To Share application and allotment A/c33,00,000
(Application money received on 3,00,000 shares)
Share application and allotment A/c Dr.33,00,0001½
    To Bank A/c22,00,000
    To Share Capital A/c10,00,000
    To Securities Premium/ Securities Premium Reserve A/c1,00,000
(Application money transferred to share capital account, securities premium account and excess refunded)

(1½ + 1½ = 3 marks)

Q117.2023 Main 67/3/1 · Q18(b)3 marks

A company forfeited 4,000 shares of ₹ 10 each fully called-up, on which application money of ₹ 3 each has been paid. Out of these, 2,000 shares were reissued as fully paid up for ₹18,000.

Pass necessary journal entries for above transactions.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c ... Dr.
  To Share Forfeiture A/c
  To Calls-in-Arrears A/c
(4,000 shares forfeited for non-payment of ₹7 per share) (1)
40,000
12,000
28,000
Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
  To Share Capital A/c
(2,000 forfeited shares reissued) (1)
18,000
2,000


20,000
Share Forfeiture A/c ... Dr.
  To Capital Reserve A/c
(Gain on reissue of shares transferred to Capital Reserve) (1)
4,000
4,000

= 3 marks

Q118.2023 Main 67/4/1 · Q19(b)3 marks

Disha Ltd. forfeited 500 shares of ₹ 100 each issued at 10% premium, ₹ 90 called up, on which the shareholders did not pay ₹ 30 per share on allotment (including premium) and first call of ₹ 20 per share. Out of these, 300 shares were reissued for ₹ 80 per share, fully paid up.

Pass necessary journal entries for forfeiture and reissue of shares.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Disha Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) Share Capital A/c   Dr.
Securities Premium / Securities Premium Reserve A/c   Dr.
   To Share Forfeiture A/c
   To Calls in arrears A/c
(500 shares forfeited for non payment of allotment and 1st call)
45,000
5,000



25,000
25,000
Alternatively,
Share Capital A/c   Dr.
Securities Premium / Securities Premium Reserve A/c   Dr.
   To Share Forfeiture A/c
   To Share Allotment A/c
   To Share First call A/c
(500 shares forfeited for non payment of allotment and 1st call)

45,000
5,000





25,000
15,000
10,000
(ii) Bank A/c   Dr.
Share Forfeiture A/c   Dr.
   To Share capital A/c
(300 shares reissued @ ₹80, fully paid up)
24,000
6,000


30,000
(iii) Share Forfeiture A/c   Dr.
   To Capital Reserve A/c
(Gain on reissue of 300 shares transferred to capital reserve)
9,000

9,000

1x3 =3 marks

Q119.2025 Main 67/6/1 · Q214 marks

JK Ltd. forfeited 6,000 equity shares of ₹10 each issued at a premium of ₹2 per share for the non-payment of first call of ₹2 per share. The second and final call of ₹2 per share had not yet been made. The forfeited shares were reissued at a discount of ₹3 per share fully paid up.

Pass necessary journal entries for the above transactions in the books of the company. Also prepare 'Share Forfeiture Account'.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of JK Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Equity Share Capital A/c ... Dr.
To Shares Forfeited/Forfeiture A/c
To Equity Share First Call A/c / To Calls in Arrears A/c
(6,000 equity shares, ₹8 per share called up, forfeited for non payment of first call of ₹2 per share)
48,000
36,000
12,000
Bank A/c ... Dr.
Shares Forfeited/Forfeiture A/c ... Dr.
To Equity Share Capital A/c
(6,000 equity shares re-issued at a discount of ₹3 per share, fully paid-up)
42,000
18,000


60,000
Shares Forfeited/Forfeiture A/c ... Dr.
To Capital Reserve A/c
(Gain on re-issue of shares transferred to capital reserve)
18,000
18,000

(1 × 3 = 3 marks)

Share Forfeiture/Forfeited A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Equity Share Capital A/c18,000By Equity Share Capital A/c36,000
To Capital Reserve A/c18,000
36,00036,000

(1 mark) = 4 marks

Q120.2024 Main 67/1/1 · Q214 marks

Shivalik Limited was registered with an authorized capital of ₹10,00,000 divided into equity shares of ₹10 each.

It offered 50,000 equity shares to the public. The amount was payable as follows :

On Application– ₹2 per share
On Allotment– ₹6 per share
On First and Final call– Balance

The issue was fully subscribed. All the amounts were duly received except the allotment and first and final call money on 4,000 equity shares. These equity shares were forfeited.

Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Shivalik Ltd.
BALANCE SHEET (extract)
As at ……

ParticularsNote No.Amount (₹)
I Equity and Liabilities
 1. Shareholders’ Funds
  (a) Share Capital14,68,000

(1)

Notes to Accounts:

ParticularsAmount ₹
1. Share Capital
Authorised Capital
1,00,000 equity shares of ₹10 each
10,00,000 (1)
Issued Capital
50,000 equity shares of ₹10 each
5,00,000 (1)
Subscribed Capital
Subscribed & fully paid-up
 46,000 equity shares of ₹10 each
 Add: Share Forfeiture A/c


4,60,000
8,000
4,68,000 (1)

= 4 marks

Q121.2024 Main 67/2/1 · Q224 marks

RR Ltd. was registered with an authorised capital of ₹ 8,00,000 divided into 80,000 equity shares of ₹ 10 each. The company offered to the public for subscription 40,000 equity shares. The amount per share was payable as follows :

On Application– ₹ 5
On Allotment– ₹ 3
On first and final call– Balance

The issue was fully subscribed and all amounts due were received except the allotment and call money on 2,000 shares allotted to Seema.

Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

RR Ltd.
Balance Sheet as at _____ (An Extract)

ParticularsNote No.Amount (₹)
Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital13,90,000 [1]

Notes to Accounts:

ParticularsAmount (₹)Amount (₹)
1. Share Capital:
Authorised Capital
80,000 Equity shares of ₹10 each [1]
8,00,000
Issued Capital
40,000 Equity shares of ₹10 each [1]
4,00,000
Subscribed Capital
• Subscribed and fully paid up
38,000 Equity shares of ₹10 each [½]
3,80,000
• Subscribed but not fully paid up
2,000 Equity shares of ₹10 each, fully called up
Less: Calls in arrears (2000 × 5) [½]
20,000
(10,000)
10,000
3,90,000

= 4 marks

Q122.2024 Main 67/3/1 · Q214 marks

Shri Ganga Ltd. was registered with an authorised capital of ₹ 7,00,000 divided into equity shares of ₹ 10 each. It offered to the public for subscription 50,000 equity shares. The amount was payable as follows :

On application: ₹ 4 per share
On allotment: ₹ 4 per share
On first and final call: Balance

The issue was fully subscribed. All the amounts were duly received except the first and final call money on 4,000 equity shares.

Show the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Shri Ganga Ltd.
BALANCE SHEET as at …….. (Extract)

ParticularsNote No.Amount (₹)Marks
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
a. Share Capital
14,92,000(1)

Notes to Accounts:

ParticularsAmount (₹)Marks
1. Share Capital
Authorized Capital
70,000 Equity Shares of ₹ 10 each
7,00,000(1/2)
Issued Capital
50,000 Equity Shares of ₹ 10 each
5,00,000(1/2)
Subscribed Capital
Subscribed and Fully Paid Up
46,000 Equity Shares of ₹ 10 each
4,60,000(1)
Subscribed but Not Fully Paid Up
4,000 Equity Shares of ₹ 10 each
Less Calls in Arrears (4,000 x 2)
40,000
(8,000)
32,000(1/2)
(1/2)
4,92,000= 4 marks
Q123.2024 Main 67/4/1 · Q214 marks

Ronit Ltd. was registered with an authorised capital of ₹ 75,00,000 divided into 75,000 equity shares of ₹ 100 each. The company invited applications for issuing 45,000 shares.

The amount was payable as follows : ₹ 30 per share on application, ₹ 30 per share on allotment, ₹ 25 per share on first call and balance on final call.

Applications were received for 42,000 shares and allotment was made to all the applicants. Charvi, to whom 3,300 shares were allotted, failed to pay both the calls. Her shares were forfeited. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare notes to accounts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Balance Sheet of Ronit Ltd. (An Extract)
as at ............

ParticularsNote No.₹
I. EQUITY & LIABILITIES
Shareholders’ Funds
Share Capital ............ 1


1


40,68,000

Notes to Accounts

Particulars₹
1. Share Capital
Authorized Capital
75,000 Equity Shares of ₹100 each ............ 1

75,00,000
Issued Capital
45,000 Equity Shares of ₹100 each ............ 1

45,00,000
Subscribed Capital
Subscribed and fully paid up
38,700 Equity Shares of ₹100 each ............ ½
+ Forfeited Shares A/c (3300 × 60) ............ ½


38,70,000
1,98,000
40,68,000

(1 + 3 = 4 Marks)

Q124.2024 Main 67/5/1 · Q224 marks

On 1st April 2023, Khyati Ltd. was formed with an authorised capital of ₹ 20,00,000 divided into 2,00,000 equity shares of ₹ 10 each. The company invited applications for issuing 1,80,000 equity shares. The company received applications for 1,70,000 equity shares. During the first year, ₹ 8 per share were called and final call of ₹ 2 per share has not been made yet. Siya holding 2,000 shares and Piya holding 4,000 shares did not pay the first call of ₹ 2 per share. All the shares of Siya and Piya were forfeited after the first call.

Present the share capital in the Balance Sheet of Khyati Ltd. as per Schedule III, Part I of Companies Act, 2013 and also prepare 'Notes to Accounts' for the same.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Khyati Ltd.
Balance Sheet as at ----- (An Extract)

ParticularsNote no.Amount (₹)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital113,48,000

(1 mark)

Notes to Accounts :

ParticularsAmount (₹)Marks
1. Share Capital
Authorised Capital
2,00,000 equity shares of ₹10 each
20,00,0001
Issued capital
1,80,000 equity shares of ₹10 each
18,00,0001
Subscribed Capital
Subscribed but not fully paid
1,64,000 equity shares of ₹10 each, ₹8 called up
13,12,0001
Add Forfeited Shares Account36,000
13,48,000

(= 4 marks)

Q125.2024 Supp. 67/S/1 · Q214 marks

Shringar Ltd. was registered with an authorised capital of ₹ 5,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for 20,000 equity shares. The amount was payable as follows :

On Application– ₹ 3 per share
On Allotment– ₹ 5 per share
On First and Final call– Balance

Applications were received for 19,000 equity shares and allotment was made to all the applicants. All the amounts were duly received except the first and final call on 5,000 shares.

Present the share capital in the Company’s Balance Sheet as per Schedule III, Part I of Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Balance Sheet of Shringar Ltd. (An Extract)
as at…………………………

ParticularsNote No.₹
I. EQUITY & LIABILITIES
Shareholders’ Funds
Share Capital

1

1,80,000

(1 mark)

Notes to Accounts

Particulars₹
1. Share Capital
Authorized Capital
50,000 equity shares of ₹10 each

5,00,000 [1]
Issued Capital
20,000 equity shares of ₹10 each

2,00,000 [1]
Subscribed Capital
Subscribed and fully paid up
14,000 equity shares of ₹10 each


1,40,000 [½]
Subscribed but not fully paid up
5,000 equity shares of ₹10 each
Less: Calls in arrears 5,000 x ₹2

50,000
(10,000)


40,000 [½]
1,80,000

(3 marks for Notes to Accounts)

=4 Marks

Q126.2023 Main 67/1/1 · Q214 marks

Sandesh Ltd. has an authorised capital of ₹ 30,00,000 divided into equity shares of ₹ 10 each. The company invited applications for issuing 70,000 shares. Applications for 69,000 shares were received. All calls were made and duly received except the first and final call of ₹ 2 per share on 3,000 shares. These shares were forfeited.

  1. Present the ‘Share Capital’ in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
  2. Also prepare ‘Notes to Accounts’ for the same.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Sandesh Ltd.
Balance Sheet (extract) as at ………

ParticularsNote No.Amount (₹)Marks
I. EQUITY AND LIABILITIES
1. Shareholders’ funds
a) Share Capital
16,84,0001

Note to Accounts

ParticularsAmount (₹)Marks
1. Share Capital
Authorised Capital
3,00,000 equity shares of ₹ 10 each
30,00,0001
Issued Capital
70,000 equity shares of ₹ 10 each
7,00,0001
Subscribed Capital
Subscribed and fully paid-up
66,000 equity shares of ₹ 10 each
6,60,000½
Add: Forfeited shares (3,000 × 8)24,000½
6,84,000

(1 + 1 + 1 + ½ + ½ = 4 marks)

Q127.2023 Main 67/2/1 · Q214 marks

Saraswati Ltd. has an authorised capital of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,000. To meet its new financial requirements, the company issued 20,000 equity shares of ₹10 each which were payable as follows : ₹3 on application; ₹3 on allotment, ₹2 on first call and ₹2 on second and final call. The issue was fully subscribed. The allotment money was payable on 1st May 2021, first call money on 1st August 2021 and final call on 1st October 2021. X whom 1000 shares were allotted, did not pay the allotment and call money; Y an allotee of 600 shares, did not pay the two calls ; and Z whom 400 shares were allotted, did not pay the final call. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Balance Sheet of Saraswati Ltd (An Extract)
as at…………

ParticularsNote No.₹
I. EQUITY & LIABILITIES
Shareholders' Fund
Share Capital …… [1]


1


5,89,800

Notes to Accounts

Particulars₹
1. Share Capital
Authorized Capital
1,00,000 Equity Shares of ₹10 each …… [1]


10,00,000
Issued Capital
60,000 Equity Shares of ₹10 each …… [1]

6,00,000
Subscribed Capital
Subscribed and fully paid up
58,000 Equity Shares of ₹10 each …… [½]


5,80,000
Subscribed but not fully paid up
2000 equity shares of ₹10 each ₹20,000
− Calls in Arrears (₹10,200) [½]
(₹7,000 + ₹2,400 + ₹800)


9,800
5,89,800

(1+3 = 4 Marks)

Q128.2023 Main 67/3/1 · Q214 marks

Pawan Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 1,00,000 equity shares of ₹ 10 each. The company offered to the public for subscription, 80,000 equity shares. The amount per share was payable as follows :

On application – ₹ 3,
On allotment – ₹ 2
On first call – ₹ 3 and
On second and final call the balance

The issue was fully subscribed and all amounts due were received except the first and final call money on 2,000 shares allotted to Chavi. Her shares were forfeited.

Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Pawan Ltd.
BALANCE SHEET (Extract) As at ……..

ParticularsNote No.Amount (₹)
I. Equity and Liabilities
  1. Shareholders Funds
    (a) Share Capital (1)17,90,000

Notes to Accounts:

ParticularsAmount (₹)
1. Share Capital
Authorised Capital
1,00,000 equity shares of ₹10 each (1)
10,00,000
Issued Capital
80,000 equity shares of ₹10 each (1)
8,00,000
Subscribed Capital
Subscribed & fully paid-up
78,000 shares of ₹10 each (½)
7,80,000
Add: Share Forfeiture A/c (½)10,000
7,90,000

= 4 marks

Q129.2023 Main 67/4/1 · Q224 marks

Sunstar Ltd. has an authorised capital of ₹ 20,00,000 divided into equity shares of ₹ 10 each. The company invited applications for issuing 60,000 shares. Applications were received for 58,000 shares.

All calls were made and were duly received except the final call of ₹ 3 per share on 2,000 shares. These shares were forfeited.

Present the ‘Share Capital’ in the Balance Sheet of the Company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Balance Sheet of Sunstar ltd. (An Extract)
as at -----

ParticularsNote no.Amount (₹)
Equity and Liabilities
Shareholders’ Funds
   Share Capital

1

5,74,000

[1 mark]

Notes to Accounts :-

ParticularsAmount (₹)
1. Share Capital :
Authorised Capital
2,00,000 shares @ ₹ 10 each [1]

20,00,000
Issued capital
60,000 Equity share @ ₹ 10 each [1]

6,00,000
Subscribed Capital
Subscribed and fully paid up
56,000 Shares of ₹ 10 each [½]


5,60,000
Add: Share Forfeiture A/c [½]14,000
5,74,000

=4 marks

Q130.2023 Main 67/5/1 · Q214 marks

Narmada Ltd. has an authorized capital of ₹ 10,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 75,000 equity shares. All calls were made and were duly received except the first and final call of ₹ 2 per share on 5,000 shares held by Arti. These shares were forfeited.

  1. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
  2. Also prepare ‘Notes to Accounts’ for the same.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Narmada Ltd.
BALANCE SHEET as at …….. (Extract)

ParticularsNote No.Amount (₹)
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
a. Share Capital17,40,000 (1)

Notes to Accounts :

ParticularsAmount (₹)
1. Share Capital
Authorized Capital
1,00,000 Equity Shares of ₹10 each
10,00,000 (1)
Issued Capital
80,000 Equity Shares of ₹10 each
8,00,000 (1)
Subscribed Capital
Subscribed and Fully Paid Up
70,000 Equity Shares of ₹10 each
7,00,000 (½)
Add: Share Forfeiture A/c40,000 (½)
7,40,000

(1 + 1 + 1 + ½ + ½ = 4 marks)

Q131.2023 Supp. 67/C/1 · Q214 marks

MM Ltd. is registered with an authorised share capital of ₹10,00,00,000 was divided into 1,00,00,000 equity shares of ₹ 10 each. The company invited applications for issuing 10,00,000 equity shares. The amount per share was payable as follows :

On Application – ₹ 3 per share
On Allotment – ₹ 4 per share
On First and Final Call – ₹ 3 per share

The issue was fully subscribed. All calls were made and were duly received except the first and final call on 1000 shares.

Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III Part I of the Companies Act, 2013 and also prepare ‘Notes to Accounts’.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

MM Ltd.
Balance Sheet (extract) as at ………

ParticularsNote No.Amount (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share Capital199,97,000

[1] +

Notes to Accounts:

ParticularsAmount (₹)
1. Share Capital
Authorized Capital
1,00,00,000 Equity Shares of ₹10 each [1]
10,00,00,000
Issued Capital
10,00,000 Equity Shares of ₹10 each [1]
1,00,00,000
Subscribed Capital
Subscribed and Fully Paid Up
9,99,000 Equity Shares of ₹10 each [½]
99,90,000
Subscribed but Not Fully Paid Up
1,000 Equity Shares of ₹10 each
10,000
Less: Calls in arrears [½]3,0007,000
99,97,000

1 + 1 + 1 + ½ + ½ = 4 marks

Q132.SQP 2025-26 · Q214 marks

Sapphire Ltd. Was registered with an authorised capital of ₹ 80,00,000 divided into 4,00,000 shares of ₹ 20 each. Company offered and issued 1,50,000 shares at a premium of ₹ 4 per share payable as ₹ 7 on application (including ₹ 1 premium), ₹ 12 on allotment (including ₹ 2 premium) and balance on first call. Rancho, holding 10,000 shares failed to pay allotment and call money. Another shareholder Sultan holding 5,000 shares failed to pay the call money. All the shares held by Rancho were forfeited and of these 8,000 were reissued at ₹ 22 per share as fully paid.

Show Share Capital sub head as it would in the Balance Sheet of Sapphire ltd. along with notes to Account as per the Companies Act 2013.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Balance Sheet (extract)

ParticularsNote No.Current YearPrevious Year
EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital


1


29,52,000


----

Notes to Accounts

Note No.ParticularsAmount
1Share CapitalAmount
Authorised Share Capital
(4,00,000 Equity shares @ ₹20 each)
80,00,000
Issued Share Capital
(1,50,000 Equity shares @ ₹20 each)
30,00,000
Subscribed Share Capital
Subscribed and Fully Paid up
(1,43,000 Equity shares @ ₹20 each)
28,60,000
Subscribed but not Fully Paid up
5,000 shares @ ₹20 each
(-) Calls in Arrears
Add: Share Forfeiture A/c

1,00,000
(20,000)


80,000
12,000
29,52,000
Q133.SQP 2026-27 · Q214 marks

XYZ Ltd. was registered with an authorised capital of ₹ 80,00,000 divided into 8,00,000 equity shares of ₹ 10 each. The company offered 1,00,000 shares for public subscription at ₹ 2 premium. Share was payable as ₹ 3 on application (including ₹ 1 premium), ₹ 6 (including balance premium) on allotment and balance on call. Public had applied for 1,25,000 shares out of which applications for 5,000 shares were rejected and remaining were allotted on pro-rata basis.

All the money has been duly received except allotment and call money on 10,000 shares held by Raja. His shares were forfeited.

Show the Share Capital head as it would appear in the balance sheet and also prepare Notes to Accounts for the same.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Balance sheet of XYZ Ltd. (Extract)

ParticularNote NoAmount current yearAmount previous year
Equity and liabilities
Shareholder funds
a. Share capital


1


9,26,000


-

Notes to accounts:

ParticularsAmount (₹)
1.Share Capital
Authorized Share capital
8,00,000 Equity share of ₹10 each

80,00,000
Issued Share Capital
1,00,000 Equity Shares of ₹10 each

10,00,000
Subscribed and Called-up Capital:
Subscribed and fully paid up capital
90,000 Equity Shares of ₹10 each
Add: forfeited Shares


9,00,000
26,000
9,26,000
Q134.2026 Main 67/1/1 · Q24(a)6 marks

Generic Pharma Ltd. invited applications for using 3,00,000 equity shares of ₹10 each at a premium of ₹6 per share. The amount was payable as follows :

on Application and Allotment – ₹4 per share (including premium of ₹2 per share)
on First and Final Call – Balance

Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on applications was adjusted towards sums due on first and final call. Jain, an applicant for 3,600 shares failed to pay the first and final call. His shares were forfeited.

Pass necessary journal entries in the books of Generic Pharma Ltd. for the above transactions. Open ‘calls in arrears account’ and ‘calls in advance account’, wherever necessary.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Generic Pharma Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.16,00,000
To Equity Share Application and Allotment A/c16,00,000
(Application money received on 4,00,000 shares @₹4 per share, including premium ₹2) [1 mark]
Equity Share Application and Allotment A/c ……Dr.16,00,000
To Equity Share Capital A/c6,00,000
To Securities Premium A/c6,00,000
To Calls in advance A/c2,40,000
To Bank A/c1,60,000
(Transfer of application money to share capital, securities premium, first and final call and excess application money refunded) [1½ marks]
Equity Share First and Final call A/c ……Dr.36,00,000
To Equity Share Capital A/c24,00,000
To Securities Premium A/c12,00,000
(Amount due on share first and final call) [1 mark]
Bank A/c ……Dr.33,26,400
Call in arrears A/c ……Dr.33,600
Calls in advance A/c2,40,000
To Equity Share First and Final Call A/c36,00,000
(Amount received on share first and final call except on 3,000 shares) [1 mark]
Equity Share Capital A/c ……Dr.30,000
Securities Premium A/c ……Dr.12,000
To Share Forfeiture A/c8,400
To Calls in Arrears A/c33,600
(3,000 shares forfeited for non-payment of first and final call money) [1½ marks]
Q135.2026 Main 67/1/1 · Q24(b)6 marks

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

  1. Diksha Ltd. forfeited 3,000 shares of ₹10 each for non-payment of final call of ₹2 per share. Out of these, 600 shares were reissued as fully paid up in such a way that ₹4,200 was transferred to capital reserve.
  2. Ashoka Ltd. forfeited 2,000 equity shares of ₹100 each issued at a premium of 10% for non-payment of allotment money of ₹60 per share (including premium). The first and final call of ₹20 per share was not yet made. The forfeited shares were re-issued at ₹70 per share fully paid up.

(3 + 3 = 6)

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i)

Books of Diksha Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c ……Dr.30,000
To Share Forfeiture A/c24,000
To Share Final Call A/c / Calls in arrears A/c6,000
(3,000 shares forfeited for non-payment of final call of ₹2 per share) [1 mark]
Bank A/c ……Dr.5,400
Share Forfeiture A/c ……Dr.600
To Share Capital A/c6,000
(Reissue of 600 shares as fully paid) [1 mark]
Share Forfeiture A/c ……Dr.4,200
To Capital Reserve A/c4,200
(Balance in share forfeiture account transferred to capital reserve) [1 mark]

(ii)

Books of Ashoka Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Equity Share Capital A/c ……Dr.1,60,000
Securities Premium A/c ……Dr.20,000
To Share Forfeiture A/c60,000
To Equity Share Allotment A/c / Calls in Arrears A/c1,20,000
(2,000 equity shares forfeited for non-payment of allotment money) [1½ marks]
Bank A/c ……Dr.1,40,000
Share Forfeiture A/c ……Dr.60,000
To Equity Share Capital A/c2,00,000
(Reissue of 2,000 shares @₹70 per share fully paid up) [1½ marks]

(3 + 3) = 6 Marks

Q136.2026 Main 67/1/1 · Q266 marks

Dharma Ltd. was registered with an authorised capital of ₹30,00,000 divided into 3,00,000 equity shares of ₹10 each. The amount was payable as follows :

On Application – ₹2 per share
On Allotment – ₹5 per share
On First and Final Call – Balance

The company offered 90,000 shares for public subscription. All the shares were subscribed and the company received all the money due, except allotment and call money on 4,000 shares held by Aditi and call money on 3,000 shares held by Rohit. The directors forfeited shares of Aditi and Rohit.

Answer the following questions on the basis of above information :

  1. The nominal capital of Dharma Ltd. is :
    1. ₹30,00,000
    2. ₹3,00,000
    3. ₹9,00,000
    4. ₹33,00,000
  2. The issued capital of the company is :
    1. ₹3,00,000
    2. ₹30,00,000
    3. ₹9,00,000
    4. ₹33,00,000
  3. Subscribed and fully paid capital of Dharma Ltd. will be :
    1. ₹9,00,000
    2. ₹8,30,000
    3. ₹8,56,000
    4. Nil
  4. The amount of ‘Share Capital’ presented in the Balance sheet of Dharma Ltd. under ‘Shareholders Funds’ will be :
    1. ₹8,30,000
    2. ₹8,59,000
    3. ₹9,00,000
    4. ₹30,00,000
  5. In the Notes to Accounts, the amount to be shown under ‘Share Forfeiture Account’ will be :
    1. ₹32,000
    2. ₹12,000
    3. ₹44,000
    4. ₹29,000
  6. Subscribed and not fully paid capital of Dharma Ltd. will be :
    1. ₹9,00,000
    2. ₹8,30,000
    3. ₹8,56,000
    4. Nil
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i) (A) ₹30,00,000 — 1

(ii) (C) ₹9,00,000 — 1

(iii) (B) ₹8,30,000 — 1

(iv) (B) ₹8,59,000 — 1

(v) (D) ₹29,000 — 1

(vi) (D) Nil — 1

(= 6 marks)

Q137.2026 Main 67/2/1 · Q236 marks

Shanta Ltd. has an authorized capital of ₹ 30,00,000 divided into equity shares of ₹ 100 each. The company invited applications for issuing 28,000 shares. Applications for 27,000 shares were received and allotment was made to all the applicants in full. All calls were made and were duly received except on 300 shares on which the final call of ₹ 20 per share was not received. The company forfeited 200 of these shares on which final call was not received.

Answer the following questions :

  1. The nominal capital of the company is :
    1. ₹ 27,00,000
    2. ₹ 28,00,000
    3. ₹ 30,00,000
    4. ₹ 26,70,000
  2. The issued capital of the company is :
    1. ₹ 27,00,000
    2. ₹ 28,00,000
    3. ₹ 30,00,000
    4. ₹ 26,70,000
  3. Subscribed and fully paid-up capital of Shanta Ltd. is :
    1. ₹ 26,70,000
    2. ₹ 26,64,000
    3. ₹ 27,00,000
    4. ₹ 28,00,000
  4. The amount of 'share capital' presented in the balance sheet of Shanta Ltd. will be :
    1. ₹ 28,00,000
    2. ₹ 26,70,000
    3. ₹ 27,00,000
    4. ₹ 26,94,000
  5. In the 'Notes to Accounts', the amount disclosed under 'Share Forfeiture Account' will be :
    1. ₹ 20,000
    2. ₹ 24,000
    3. ₹ 16,000
    4. ₹ 4,000
  6. The amount of 'calls in arrears' disclosed in 'Notes to Accounts' will be :
    1. ₹ 2,000
    2. ₹ 10,000
    3. ₹ 8,000
    4. Nil
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(i) (C) ₹ 30,00,000 ……… 1

(ii) (B) ₹ 28,00,000 ……… 1

(iii) (A) ₹ 26,70,000 ……… 1

(iv) (D) ₹ 26,94,000 ……… 1

(v) (C) ₹ 16,000 ……… 1

(vi) (A) ₹ 2,000 ……… 1

Q138.2026 Main 67/2/1 · Q25(a)6 marks

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

  1. Sanya Ltd. forfeited 2,000 shares of ₹ 10 each, issued at a premium of ₹ 2 per share, ₹ 8 called up, for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 700 shares were reissued to Dev as ₹ 8 paid up for ₹ 10 per share.
  2. Moksh Ltd. forfeited 5,000 shares of ₹ 10 each on which first call of ₹ 3 per share was not received. The second and final call of ₹ 2 per share has not yet been called. Out of these, 2,000 shares were issued to Geeta as ₹ 8 paid up for ₹ 7 per share.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(i)

Books of Sanya Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c / Calls in Arrears A/c
(2,000 shares, ₹8 per share called up, forfeited for non-payment of allotment money of ₹ 5 per share including premium) [1]
16,000
4,000


10,000
10,000
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(700 shares reissued as ₹8 per share paid up for ₹10 per share) [1]
7,000
5,600
1,400
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on re-issue of 700 shares transferred to capital reserve) [1]
3,500
3,500

(ii)

Books of Moksh Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c / Calls in arrears A/c
(5,000 shares, ₹8 per share called up, forfeited for non payment of first call money of ₹ 3 per share) [1]
40,000
25,000
15,000
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(2,000 shares reissued as ₹ 8 per share paid up for ₹ 7 per share) [1]
14,000
2,000


16,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on reissue of 2,000 shares transferred to capital reserve) [1]
8,000
8,000

(= 6 Marks)

Q139.2026 Main 67/2/1 · Q25(b)6 marks

Raga Ltd. invited applications for issuing 85,000 equity shares of ₹ 100 each at par. The amount was payable as follows :

On Application – ₹ 30 per share
On Allotment – ₹ 40 per share
On First and final call – balance

Applications were received for 80,000 shares and allotment was made to all the applicants in full. When the allotment was due, one shareholder failed to pay the amount on 300 shares held by him and another shareholder holding 500 shares paid the entire amount on his shares. The first and final call was duly received, along with arrears of allotment.

Pass necessary journal entries for the above transactions in the books of Raga Ltd. Open 'Calls in Arrears Account' and 'Calls in Advance Account' wherever necessary.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Raga Ltd.

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Equity Share Application A/c
(Application money received on 80,000 shares) [1]
24,00,000
24,00,000
Equity Share Application A/c Dr.
To Equity Share Capital A/c
(Transfer of share application money to share capital) [1]
24,00,000
24,00,000
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Equity share allotment money due on 80,000 shares) [1]
32,00,000
32,00,000
Bank A/c Dr.
Calls in arrears A/c Dr.
To Equity Share Allotment A/c
To Calls in Advance A/c
(Allotment money received after adjusting calls in arrears and calls in advance) [1]
32,03,000
12,000


32,00,000
15,000
Equity Share First & final call A/c Dr.
To Equity Share Capital A/c
(Equity share First & final call money due on 80,000 shares) [1]
24,00,000
24,00,000
Bank A/c Dr.
Calls in Advance A/c Dr.
To Equity Share First & final call A/c
To Calls in Arrears A/c
(Share First & final call money received after adjusting calls in advance) [1]
23,97,000
15,000


24,00,000
12,000

(= 6 marks)

Q140.2026 Main 67/3/1 · Q23(a)6 marks

Madhav Ltd. invited applications for issuing 4,00,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as follows :

On Application and Allotment – ₹6 per share (including premium ₹2)

On First and Final Call – Balance

Applications for 6,00,000 shares were received. Applications for 1,00,000 shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due on first and final call. A shareholder, who had applied for 500 shares, failed to pay the first and final call. His shares were forfeited.

Pass necessary journal entries in the books of Madhav Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Madhav Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.
To Equity Share Application & Allotment A/c
(Application money received on 6,00,000 shares @ ₹6 per share)
36,00,000

36,00,000
1
Equity Share Application & Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
To Calls in Advance A/c
To Bank A/c
(Application money transferred to share capital a/c, securities premium a/c calls in advance a/c and refunded)
36,00,000




16,00,000
8,00,000
6,00,000
6,00,000
2
Equity Share First & Final Call A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Amount due on share first & final call on 4,00,000 shares @ ₹8 per share)
32,00,000


24,00,000
8,00,000
1
Bank A/c Dr.
Calls in Arrears A/c Dr.
Calls in Advance A/c Dr.
To Equity Share First & Final Call A/c
(Amount received on first & final call with exception on 400 shares and calls in advance adjusted)
25,97,400
2,600
6,00,000



32,00,000
1

Alternatively

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
Calls in Advance A/c Dr.
To Equity Share First & Final Call A/c
(Amount received on first & final call with exception on 400 shares and calls in advance adjusted)
25,97,400
6,00,000


31,97,400
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c /Share First & Final Call A/c
(400 shares forfeited for non- payment of first and final call)
4,000
800



2,200
2,600
1

(= 6 Marks)

Q141.2026 Main 67/3/1 · Q23(b)6 marks

(i) NN Ltd. forfeited 800 equity shares of ₹100 each for non-payment of the first call of ₹20 per share. The second and final call of ₹30 per share was not yet made. Out of the forfeited shares, 600 shares were re-issued for ₹54,000 as fully paid-up.

Pass necessary journal entries for the above transactions in the books of NN Ltd. (3 marks)

(ii) KG Ltd. forfeited 7,000 equity shares of ₹100 each, issued at a premium of ₹20 per share, for non-payment of second and final call of ₹20 per share. The forfeited shares were re-issued at ₹80 per share, fully paid-up.

Pass necessary journal entries for the above transactions in the books of KG Ltd. (3 marks)

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(i)

Books of N N Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c /Share First Call A/c
(800 shares forfeited for non-payment of first call of ₹20 per share)
56,000


40,000
16,000
1
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(600 shares re-issued as fully paid for ₹54,000)
54,000
6,000


60,000
1
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on reissue of shares transferred to capital reserve)
24,000

24,000
1

(ii)

Books of K G Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c /Share Second & Final Call A/c
(7,000 equity shares forfeited for non-payment of second & final call of ₹20 per share)
7,00,000


5,60,000
1,40,000
1
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(7,000 shares re-issued at ₹80 per share, fully paid up)
5,60,000
1,40,000


7,00,000
1
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on reissue of shares transferred to Capital Reserve)
4,20,000

4,20,000
1

(= 6 Marks)

Q142.2026 Main 67/3/1 · Q246 marks

Diksha Ltd. was registered with an authorised capital of ₹40,00,000 divided into shares of ₹10 each. On 1st April, 2025, the company offered to the public for subscription, 1,20,000 shares. Applications for 1,10,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 10,000 shares failed to pay the second and final call of ₹2 per share.

Answer the following questions on the basis of the above information :

(i) The amount of ‘calls in arrears’ will be : (1 mark)

  1. ₹10,000
  2. ₹20,000
  3. ₹80,000
  4. ₹1,00,000

(ii) The ‘subscribed and fully paid-up capital’ of Diksha Ltd. will be : (1 mark)

  1. ₹9,80,000
  2. ₹10,80,000
  3. ₹11,00,000
  4. ₹10,00,000

(iii) ‘Subscribed but not fully paid-up capital’ of Diksha Ltd. will be : (1 mark)

  1. ₹80,000
  2. ₹20,000
  3. ₹10,000
  4. Nil

(iv) The amount of ‘share capital’ to be shown in the balance sheet of Diksha Ltd. will be : (1 mark)

  1. ₹11,00,000
  2. ₹10,80,000
  3. ₹10,00,000
  4. ₹9,80,000

(v) If all the shares on which second and final call was not received, are forfeited, ‘Share Forfeiture Account’ will appear in the ‘Notes to Accounts’ at : (1 mark)

  1. ₹20,000
  2. ₹80,000
  3. ₹1,00,000
  4. ₹1,80,000

(vi) The minimum price at which the forfeited shares can be reissued is : (1 mark)

  1. ₹20,000
  2. ₹80,000
  3. ₹1,00,000
  4. ₹1,10,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(i) (B) ₹20,000 (1)
(ii) (D) ₹10,00,000 (1)
(iii) (A) ₹80,000 (1)
(iv) (B) ₹10,80,000 (1)
(v) (B) ₹80,000 (1)
(vi) (A) ₹20,000 (1)

(6 Marks)

Q143.2026 Main 67/4/1 · Q236 marks

Bright Motors Ltd. was registered with an authorised capital of ₹ 10,00,00,000 divided into equity shares of ₹ 100 each. The company issued 3,00,000 shares to the public for subscription. The amount was payable as follows :

On application – ₹ 30 per share
On allotment – ₹ 50 per share
On first and final call – balance

All the shares were fully subscribed. All amounts were duly received except from Raman, a holder of 500 shares, who failed to pay the first and final call.

Answer the following questions :

  1. Total number of shares into which the authorised share capital of the company is divided, is : (1 mark)
    1. 10,00,00,000
    2. 1,00,00,000
    3. 10,00,000
    4. 3,00,000
  2. Amount of ‘Subscribed and fully paid-up capital’ of Bright Motors Ltd. will be : (1 mark)
    1. ₹ 2,99,50,000
    2. ₹ 3,00,00,000
    3. ₹ 10,00,00,000
    4. ₹ 2,99,90,000
  3. Amount of ‘Subscribed but not fully paid-up capital’ of Bright Motors Ltd. will be : (1 mark)
    1. ₹ 2,99,90,000
    2. ₹ 2,99,50,000
    3. ₹ 3,00,00,000
    4. ₹ 40,000
  4. Amount of ‘Share Capital’ to be presented in the Balance Sheet of Bright Motors Ltd. will be : (1 mark)
    1. ₹ 3,00,00,000
    2. ₹ 2,99,50,000
    3. ₹ 2,99,90,000
    4. ₹ 10,00,00,000
  5. If the defaulting 500 shares are forfeited, ‘Share Forfeiture Account’ will be shown in the ‘Notes to Accounts’ at : (1 mark)
    1. ₹ 10,000
    2. ₹ 40,000
    3. ₹ 50,000
    4. ₹ 5,000
  6. If all the forfeited shares are reissued @ ₹ 90 per share fully paid-up, the amount credited to Capital Reserve Account will be : (1 mark)
    1. ₹ 35,000
    2. ₹ 40,000
    3. ₹ 10,000
    4. ₹ 50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(i) (C) 10,00,000 ... 1

(ii) (A) ₹ 2,99,50,000 ... 1

(iii) (D) ₹ 40,000 ... 1

(iv) (C) ₹ 2,99,90,000 ... 1

(v) (B) ₹ 40,000 ... 1

(vi) (A) ₹ 35,000 ... 1

= 6 Marks

Q144.2026 Main 67/4/1 · Q25(a)6 marks

Astha Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The amount per share was payable as follows :

₹ 2 on application; ₹ 3 on allotment; ₹ 3 on first call and ₹ 2 on second and final call.

Applications were received for 1,50,000 shares. Applications for 30,000 shares were rejected and application money refunded. The shares were allotted on pro-rata basis to the applicants of 1,20,000 shares. Excess money received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment money except Sarthak, who was allotted 2,000 shares. These shares were forfeited. The first call was made thereafter and duly received. The second and final call was not yet made.

Pass necessary journal entries for the above transactions in the books of Astha Ltd. Open Calls-in-Arrears Account, wherever required.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Astha Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To Equity Share Application A/c
(Application money received on 1,50,000 shares @ ₹ 2 per share) (1)
3,00,000

3,00,000
Equity Share Application A/c ... Dr.
To Equity Share Capital A/c
To Equity Share allotment A/c
To Bank A/c
(Share application money transferred to share capital a/c, share allotment a/c and balance refunded) (1)
3,00,000



2,00,000
40,000
60,000
Equity Share allotment A/c ... Dr.
To Equity Share Capital A/c
(Share allotment due on 1,00,000 shares @ ₹ 3 per share) (½)
3,00,000

3,00,000
Bank A/c ... Dr.
Call in arrears A/c ... Dr.
To Equity Share allotment A/c
(Amount received on share allotment except on 2000 shares) (1)
2,54,800
5,200


2,60,000
Equity Share Capital A/c ... Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(2000 shares forfeited for non-payment of allotment money) (1)
10,000


4,800
5,200
Equity Share First call A/c ... Dr.
To Equity Share capital A/c
(Share first call due on 98,000 shares @ ₹ 3 per share) (1)
2,94,000

2,94,000
Bank A/c ... Dr.
To Equity Share First call A/c
(Share first call money received on 98000 shares) (½)
2,94,000

2,94,000

= 6 marks

Q145.2026 Main 67/4/1 · Q25(b)6 marks

Orion Enterprises Ltd. invited applications for issue of 70,000 equity shares of ₹ 10 each at a premium of ₹ 1 per share. The amount was payable as follows :

On Application – ₹ 4 per share (including premium ₹ 1 per share)
On Allotment – ₹ 6 per share
On First and final call – Balance

Applications were received for 2,00,000 shares. Allotment was made as under :

Category A : Applicants for 1,20,000 shares were allotted 60,000 shares.

Category B : Applicants for 80,000 shares were allotted 10,000 shares.

Excess money received with applications was adjusted towards sums due on allotment only. Meeta, from category A, who was allotted 500 shares, failed to pay allotment money and first and final call and Japna, from category B, who had applied for 1,600 shares, failed to pay the first and final call money.

Pass necessary journal entries in the books of Orion Enterprises Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Orion Enterprises Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To Equity Share Application A/c
(Application money received on 2,00,000 shares @ ₹ 4 per share) (1)
8,00,000

8,00,000
Equity Share Application A/c ... Dr.
To Equity Share Capital A/c
To Securities Premium A/c
To Equity Share allotment A/c
To Bank A/c
(Share application money transferred to share capital a/c, securities premium a/c, share allotment a/c and balance refunded) (1)
8,00,000




2,10,000
70,000
3,00,000
2,20,000
Equity Share Allotment A/c ... Dr.
To Equity Share Capital A/c
(Share allotment due on 70,000 shares @ ₹ 6 per share) (1)
4,20,000

4,20,000
Bank A/c ... Dr.
Call in Arrears A/c ... Dr.
To Equity Share Allotment A/c
(Amount received on share allotment except on 500 shares)
1,19,000
1,000


1,20,000
Or
Bank A/c ... Dr.
To Equity Share Allotment A/c
(Amount received on share allotment except on 500 shares) (1)
1,19,000

1,19,000
Equity Share First and Final Call A/c ... Dr.
To Equity Share Capital A/c
(Share first and final call due on 70,000 shares @ ₹ 1 per share) (1)
70,000

70,000
Bank A/c ... Dr.
Calls in Arrear a/c ... Dr.
To Equity Share First and Final Call A/c
(Share first and final call money received on 69,300 shares)
69,300
700


70,000
Or
Bank A/c ... Dr.
To Equity Share First and Final Call A/c
(Share first call and final call money received on 69,300 shares) (1)
69,300

69,300

= 6 marks

Q146.2026 Main 67/5/1 · Q236 marks

Diwan Ltd. was registered with an authorised capital of ₹1,00,00,000, divided into 1,00,000 equity shares of ₹100 each. The company invited applications for issuing 50,000 shares. The amount was payable as follows :

On Application and Allotment–₹30 per share
On First call–₹40 per share
On Second and Final call–balance

The issue was fully subscribed. All amounts were duly received except from Nawal, a shareholder holding 700 shares, who failed to pay the second and final call. His shares were forfeited.

On the basis of the above information, answer the following questions :

(i) The Registered capital of Diwan Ltd. is : (1)

  1. ₹1,00,00,000
  2. ₹1,00,000
  3. ₹50,00,000
  4. ₹50,000

(ii) The Issued capital of Diwan Ltd. is : (1)

  1. ₹1,00,00,000
  2. ₹1,00,000
  3. ₹50,00,000
  4. ₹50,000

(iii) Calls in arrears of the company amounted to : (1)

  1. ₹21,000
  2. ₹70,000
  3. Nil
  4. ₹49,000

(iv) ‘Share Forfeiture Account’ will appear in the ‘Notes to Accounts’ at : (1)

  1. ₹21,000
  2. ₹70,000
  3. Nil
  4. ₹49,000

(v) The amount of ‘Share Capital’ presented in the Balance Sheet of Diwan Ltd. will be : (1)

  1. ₹49,30,000
  2. ₹50,00,000
  3. ₹49,79,000
  4. ₹49,49,000

(vi) If all the forfeited shares are reissued at ₹30 per share, fully paid-up, the amount transferred to ‘Capital Reserve’ will be : (1)

  1. ₹49,000
  2. ₹70,000
  3. ₹21,000
  4. Nil
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(i) (A) ₹1,00,00,000

(ii) (C) ₹50,00,000

(iii) (C) Nil

(iv) (D) ₹49,000

(v) (C) ₹49,79,000

(vi) (D) Nil

(1 + 1 + 1 + 1 + 1 + 1 = 6 Marks)

Q147.2026 Main 67/5/1 · Q25(a)6 marks

Ajanta Ltd. invited applications for issuing 30,000 equity shares of ₹10 each at a premium of ₹5 per share. The amount was payable as follows :

On Application and Allotment – ₹10 per share (including premium)
On first and final call – Balance

Applications for 50,000 shares were received. Applications for 10,000 shares were rejected and their application money was refunded. Pro-rata allotment was made to the remaining applicants. Excess money received with application was adjusted towards sums due on first and final call. Sonu, an applicant of 4,000 shares, paid his entire share money with application. Vedika, to whom 300 shares were allotted, failed to pay the first and final call. After giving her the mandatory notice, her shares were forfeited.

Pass necessary journal entries for the above transactions in the books of Ajanta Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Ajanta Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.5,20,000
To Equity Share Application and Allotment A/c5,20,000
(Application money received for 50,000 equity shares @ ₹5 per share, at premium of ₹5 per share and entire share money for 4000 shares) [1 mark]
Equity Share Application and Allotment A/c ……Dr.5,20,000
To Equity Share Capital A/c1,50,000
To Securities Premium A/c1,50,000
To Bank A/c1,15,000
To Calls in Advance A/c1,05,000
(Money received at the time of application transferred to share capital account, securities premium, amount refunded for applications rejected and balance transferred to call in advance account) [1½ marks]
Equity Share First and Final Call A/c ……Dr.1,50,000
To Equity Share Capital A/c150,000
(First and final call due on 30,000 equity shares @ ₹5 per share) [1 mark]
Bank A/c ……Dr.44,500
Calls in Advance A/c ……Dr.1,05,000
Calls in Arrears A/c ……Dr.500
To Equity Share First and Final Call A/c1,50,000
(First and final call money received except for 300 equity shares)
OR
Bank A/c ……Dr.44,500
Calls in Advance A/c ……Dr.1,05,000
To Equity Share First and Final Call A/c1,49,500
(First and final call money received except on 300 equity shares) [1½ marks]
Equity Share Capital A/c ……Dr.3,000
To Share Forfeiture A/c2,500
To Calls in Arrears A/c / Equity Share First and Final call A/c500
(300 equity shares of ₹10 each, forfeited for non-payment of first and final call) [1 mark]

(1 + 1½ + 1 + 1½ + 1 = 6 marks)

Q148.2026 Main 67/5/1 · Q25(b)6 marks

(i) Rao Ltd. forfeited 750 equity shares of ₹10 each for non-payment of first call of ₹3 per share (including premium of ₹1 per share). The second and final call of ₹3 per share was not yet made. Of the forfeited shares, 500 were re-issued for ₹2,500, ₹7 per share paid-up.

Pass necessary journal entries for the above transactions in the books of Rao Ltd. (3)

(ii) Lily Ltd. forfeited 2,000 equity shares of ₹10 each for non-payment of first and final call of ₹2 per share. 750 of the forfeited shares were reissued to Ashok for ₹10,000 as fully paid-up. The remaining shares were reissued to Sudha at ₹9 per share fully paid-up.

Pass necessary journal entries for the above transactions in the books of Lily Ltd. (3)

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(i)

Books of Rao Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Equity Share Capital A/c ……Dr.5,250
Securities Premium A/c ……Dr.750
To Share Forfeiture A/c3,750
To Calls in Arrears A/c/ Equity Share First Call A/c2,250
(750 equity shares of ₹10 each, ₹7 per share called up, forfeited for non-payment of first call) [1 mark]
Bank A/c ……Dr.2,500
Share Forfeiture A/c ……Dr.1,000
To Equity Share Capital A/c3,500
(500 equity shares reissued for ₹2,500, ₹7 per share paid-up) [1 mark]
Share Forfeiture A/c ……Dr.1,500
To Capital Reserve A/c1,500
(Gain on re-issue of shares transferred to capital reserve) [1 mark]

(1 + 1 + 1 = 3 Marks)

(ii)

Books of Lily Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Equity Share Capital A/c ……Dr.20,000
To Share Forfeiture A/c16,000
To Calls in Arrears A/c / Equity Share First and Final Call A/c4,000
(2,000 equity shares of ₹10 each, forfeited for non-payment of first and final call) [1 mark]
Bank A/c ……Dr.10,000
To Equity Share Capital A/c7,500
To Securities Premium A/c2,500
(750 equity shares reissued for ₹10,000, fully paid-up) [½ mark]
Bank A/c ……Dr.11,250
Share Forfeiture A/c ……Dr.1,250
To Equity Share Capital A/c12,500
(1,250 equity shares reissued at 9 per share, fully paid up) [½ mark]
Share Forfeiture A/c ……Dr.14,750
To Capital Reserve A/c14,750
(Gain on re-issue of shares transferred to capital reserve) [1 mark]

(1 + ½ + ½ + 1 = 3 Marks)

Q149.2026 Supp. 67/7/1 · Q236 marks

Brahma Ltd. was registered with a capital of ₹ 4,00,00,000 divided into 40,00,000 equity shares of ₹ 10 each. On 1st April, 2025, the company offered to the public for subscription 5,00,000 shares. Applications for 4,95,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 10,000 shares failed to pay the second and final call of ₹ 2 per share.

Answer the following questions on the basis of the above information :

(i) The Issued Capital of Brahma Ltd. is : (1)

  1. ₹ 40,00,000
  2. ₹ 4,00,00,000
  3. ₹ 49,50,000
  4. ₹ 50,00,000

(ii) The amount of calls in arrears is : (1)

  1. ₹ 1,00,000
  2. ₹ 80,000
  3. ₹ 20,000
  4. Nil

(iii) ‘Subscribed and fully paid up capital’ of Brahma Ltd. is : (1)

  1. ₹ 40,00,000
  2. ₹ 50,00,000
  3. ₹ 48,50,000
  4. ₹ 49,50,000

(iv) ‘Subscribed but not fully paid up capital’ of Brahma Ltd. is : (1)

  1. ₹ 49,50,000
  2. ₹ 80,000
  3. ₹ 48,50,000
  4. ₹ 20,000

(v) The amount of ‘Share Capital’ presented in the Balance Sheet of Brahma Ltd. will be : (1)

  1. ₹ 49,30,000
  2. ₹ 49,50,000
  3. ₹ 50,00,000
  4. ₹ 40,00,000

(vi) If the shares of the defaulting shareholders are forfeited, ‘Share Forfeiture Account’ will be shown in ‘Notes to Accounts’ at : (1)

  1. ₹ 20,000
  2. ₹ 1,00,000
  3. ₹ 80,000
  4. ₹ 50,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(i) (D) ₹50,00,000
(ii) (C) ₹20,000
(iii) (C) ₹48,50,000
(iv) (B) ₹80,000
(v) (A) ₹49,30,000
(vi) (C) ₹80,000

(1 × 6 = 6 marks)

Q150.2026 Supp. 67/7/1 · Q25(a)6 marks

Alpha Ltd. invited applications for issuing 90,000 equity shares of ₹ 100 each at a premium of 10%. The amount was payable as follows :

On Application− ₹ 20 per share
On Allotment− ₹ 30 per share
On First and Final Call− Balance (including premium)

Applications for 1,20,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application was adjusted towards the amount due on allotment. Anant, who had applied for 1,100 shares failed to pay the allotment and the first and final call money. Mehak, to whom 900 shares were allotted failed to pay the first and final call. Anant’s shares were forfeited.

Pass necessary journal entries for the above transactions in the books of Alpha Ltd.. Open ‘Calls in Arrears Account’, wherever necessary.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Alpha Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c  Dr.
    To Equity Share Application A/c
(Application money received on 1,20,000 shares @₹20 per share) (½)
24,00,000

24,00,000
Equity Share Application A/c  Dr.
    To Equity Share Capital A/c
    To Equity Share Allotment A/c
    To Bank A/c
(Transfer of application money to share capital, refunded on 10,000 shares and excess amount adjusted on allotment) (1)
24,00,000



18,00,000
4,00,000
2,00,000
Equity Share Allotment A/c  Dr.
    To Equity Share Capital A/c
(Allotment money due on 90,000 shares) (½)
27,00,000

27,00,000
Bank A/c  Dr.
Call in arrears A/c  Dr.
    To Equity Share Allotment A/c
(Amount received on allotment) (1)
22,77,000
23,000


23,00,000
Equity Share First and Final call A/c  Dr.
    To Equity Share Capital A/c
    To Securities Premium A/c
(Amount due on share first and final call) (1)
54,00,000


45,00,000
9,00,000
Bank A/c  Dr.
Call in arrears A/c  Dr.
    To Equity Share First and Final Call A/c
(Amount received on share first and final call) (1)
52,92,000
1,08,000


54,00,000
Equity Share Capital A/c  Dr.
Securities Premium A/c  Dr.
    To Share Forfeiture A/c
    To Calls in Arrears A/c
(900 shares forfeited for non-payment of allotment and first and final call) (1)
90,000
9,000



22,000
77,000

(Marks shown against each entry; total 6 marks)

Q151.2026 Supp. 67/7/1 · Q25(b)6 marks

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

  1. Dharma Ltd. forfeited 600 shares of ₹ 100 each, ₹ 80 per share called up, issued at 10% premium (to be paid at the time of allotment) for non-payment of first call of ₹ 20 per share. Out of these, 300 shares were reissued as ₹ 80 paid up for ₹ 60 per share.
  2. Vikram Ltd. forfeited 1,000 shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 4 per share (including premium) and first call of ₹ 3 per share. The second and final call of ₹ 1 per share was not made. The forfeited shares were reissued at ₹ 7 per share fully paid up.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(i)

Books of Dharma Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c  Dr.
    To Share Forfeiture A/c
    To Share First Call A/c/ Calls in arrears A/c
(600 shares forfeited for non-payment of first call of ₹20 per share)
48,000


36,000
12,000
Bank A/c  Dr.
Share Forfeiture A/c  Dr.
    To Share Capital A/c
(Reissue of 300 shares as ₹80 paid up for ₹60 per share)
18,000
6,000


24,000
Share Forfeiture A/c  Dr.
    To Capital Reserve A/c
(Balance in share forfeiture account transferred to capital reserve)
12,000

12,000

(1 × 3)

(ii)

Books of Vikram Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c  Dr.
Securities Premium A/c  Dr.
    To Share Forfeiture A/c
    To Share Allotment A/c
    To Share First Call A/c
(1,000 equity shares forfeited for non-payment of allotment money of ₹4 per share and first call of ₹3 per share)
9,000
2,000




4,000
4,000
3,000
Alternatively, the following entry may be passed:
Share Capital A/c  Dr.
Securities Premium A/c  Dr.
    To Share Forfeiture A/c
    To Calls in Arrears A/c
(1,000 equity shares forfeited for non-payment of allotment money of ₹4 per share and first call of ₹3 per share)
9,000
2,000



4,000
7,000
Bank A/c  Dr.
Share Forfeiture A/c  Dr.
    To Equity Share Capital A/c
(Reissue of 1,000 shares @₹7 per share fully paid)
7,000
3,000


10,000
Share Forfeiture A/c  Dr.
    To Capital Reserve A/c
(Balance in share forfeiture account transferred to capital reserve)
1,000

1,000

(1 × 3) = 6 marks

Q152.2025 Main 67/1/1 · Q236 marks

PL Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 1,00,000 equity shares of ₹ 10 each. The company offered to the public for subscription 90,000 equity shares.

Applications were received for 82,000 equity shares and shares were allotted to all the applicants. All money due was received with the exception of first and final call money of ₹ 2 per share on 2,000 shares allotted to Atishay. His shares were forfeited.

Answer the following questions :

  1. The amount of 'Calls in Arrears' disclosed in 'Notes to Accounts' will be :
    1. ₹ 4,000
    2. ₹ 16,000
    3. Nil
    4. ₹ 20,000
  2. The number of shares of PL Ltd. after forfeiture will be :
    1. 98,000
    2. 88,000
    3. 82,000
    4. 80,000
  3. In the 'Notes to Accounts', the amount disclosed under 'Share Forfeiture Account' will be :
    1. ₹ 16,000
    2. ₹ 4,000
    3. ₹ 20,000
    4. Nil
  4. In the 'Notes to Accounts', the amount disclosed under 'Issued Capital' will be :
    1. ₹ 10,00,000
    2. ₹ 9,00,000
    3. ₹ 8,20,000
    4. ₹ 8,00,000
  5. Balance in 'Share Forfeiture Account' will be shown in 'Notes to Accounts' in the balance sheet of PL Ltd. under :
    1. Authorised capital
    2. Issued capital
    3. Subscribed capital
    4. Will not be shown in 'Notes to Accounts'
  6. The amount of 'Share Capital' disclosed in the balance sheet of PL Ltd. will be :
    1. ₹ 8,00,000
    2. ₹ 8,16,000
    3. ₹ 9,16,000
    4. ₹ 7,90,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(i) (C) Nil

(ii) (D) 80,000

(iii) (A) ₹16,000

(iv) (B) ₹9,00,000

(v) (C) Subscribed capital

(vi) (B) ₹8,16,000

(1 × 6 = 6 marks)

Q153.2025 Main 67/1/1 · Q25(a)6 marks

Altima Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows :

On application and allotment – ₹ 7 per share (including premium ₹ 1)
On first and final call – Balance

Applications were received for 2,40,000 shares. Applications for 30,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received on application and allotment was returned. Manvi, who was allotted 4,000 shares failed to pay the first and final call money. Her shares were forfeited. All the forfeited shares were reissued at ₹ 4 per share fully paid up.

Pass necessary journal entries in the books of Altima Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Altima Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ... Dr.
To Equity Share Application and Allotment A/c
(Application money received on 2,40,000 shares @₹7 per share, including premium ₹1)
16,80,000

16,80,000
Equity Share Application and Allotment A/c ... Dr.
To Equity Share Capital A/c
To Securities Premium A/c
To Bank A/c
(Transfer of application money to share capital and excess application money refunded)
16,80,000



12,00,000
2,00,000
2,80,000
Equity Share First and Final call A/c ... Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Amount due on share first and final call)
14,00,000


8,00,000
6,00,000
Bank A/c ... Dr.
To Equity Share First and Final call A/c
(Amount received on share first and final call)
13,72,000

13,72,000
or
Bank A/c ... Dr.
Call in arrears A/c ... Dr.
To Equity Share First and Final Call A/c
(Amount received on share first and final call)
13,72,000
28,000


14,00,000
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Forfeiture A/c
To Equity Share First and Final Call/ Calls in Arrears A/c
(4000 shares forfeited for non-payment of first and final call money)
40,000
12,000



24,000
28,000
Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
To Equity Share capital A/c
(Reissue of 4,000 shares at ₹4 per share fully paid)
16,000
24,000


40,000

(1 × 6 = 6 marks)

Q154.2025 Main 67/1/1 · Q25(b)6 marks

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

  1. Macil Ltd. forfeited 3,000 shares of ₹ 100 each issued at 20% premium for the non-payment of allotment money of ₹ 30 per share and first call of ₹ 40 per share (including premium ₹ 10). The second and final call of ₹ 30 per share (including premium ₹ 10) was not yet called. Out of these, 2,000 shares were reissued at ₹ 80 per share paid up for ₹ 90 per share.
  2. Avian Ltd. forfeited 10,000 shares of ₹ 10 each on which the first call of ₹ 4 per share was not received and the second and final call of ₹ 1 per share was not yet called. Out of these, 4,000 shares were reissued to Ajay as fully paid up for ₹ 9 per share.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(i)

Books of Macil Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(3000 shares forfeited for non-payment of allotment and first call money)
2,40,000
30,000




60,000
90,000
1,20,000
or
Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(3000 shares forfeited for non-payment of allotment and first call money)
2,40,000
30,000



60,000
2,10,000
Bank A/c ... Dr.
To Share Capital A/c
To Securities Premium A/c
(Reissue of 2,000 shares @₹90 per share ₹80 paid up)
1,80,000


1,60,000
20,000
Share Forfeiture A/c ... Dr.
To Capital Reserve A/c
(Balance in share forfeiture account transferred to capital reserve)
40,000

40,000

(1 × 3)

(ii)

Books of Avian Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c ... Dr.
To Share Forfeiture A/c
To Share First Call/ Calls in Arrears A/c
(10,000 shares forfeited for non-payment of first call money)
90,000


50,000
40,000
Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
To Share Capital A/c
(Reissue of 4,000 shares @₹9 per share fully paid up)
36,000
4,000


40,000
Share Forfeiture A/c ... Dr.
To Capital Reserve A/c
(Balance in share forfeiture account transferred to capital reserve)
16,000

16,000

(1 × 3)

((1 × 3) + (1 × 3) = 6 marks)

Q155.2025 Main 67/2/1 · Q246 marks

Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at 31st March, 2024 along with Notes to accounts :

Vikalp Ltd.
Balance Sheet as at 31st March, 2024

ParticularsNote No.31-03-2024 (₹)31-03-2023 (₹)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share capital
159,60,00050,00,000

'Notes to accounts' as at 31st March, 2023 :

Note No.Particulars31-3-2023 (₹)
1.Share Capital :
Authorised capital
9,00,000 equity shares of ₹ 10 each
90,00,000
Issued capital :
5,00,000 equity shares of ₹ 10 each
50,00,000
Subscribed capital :
Subscribed and fully paid up
5,00,000 equity shares of ₹ 10 each
50,00,000
Subscribed but not fully paid upNil
50,00,000

'Notes to accounts' as at 31st March, 2024 :

Note No.Particulars31-3-2024 (₹)
1.Share Capital :
Authorised capital
9,00,000 equity shares of ₹ 10 each
90,00,000
Issued capital :
6,00,000 equity shares of ₹ 10 each
60,00,000
Subscribed capital :
Subscribed and fully paid up
5,80,000 equity shares of ₹ 10 each
58,00,000
Subscribed but not fully paid up
20,000 equity shares of ₹ 10 each, fully called up
2,00,000
Less : calls in arrears
20,000 equity shares @ ₹ 2 per share
40,0001,60,000
59,60,000

Answer the following questions :

  1. The total face value of equity shares issued during the year 2023-2024 was :
    1. ₹ 10,00,000
    2. ₹ 9,80,000
    3. ₹ 4,20,000
    4. ₹ 11,00,000
  2. The number of shares on which the called up amount was not received were :
    1. 1,00,000
    2. 80,000
    3. 3,00,000
    4. 20,000
  3. 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 :
    1. ₹ 1,60,000
    2. ₹ 40,000
    3. ₹ 2,00,000
    4. ₹ 2,40,000
  4. On forfeiture, 'Share Forfeiture Account' will be credited with :
    1. ₹ 1,60,000
    2. ₹ 40,000
    3. ₹ 2,00,000
    4. ₹ 2,40,000
  5. If all the forfeited shares are reissued at ₹ 8 per share fully paid up, the amount credited to 'Capital Reserve A/c' will be :
    1. ₹ 40,000
    2. ₹ 1,60,000
    3. ₹ 2,00,000
    4. ₹ 1,20,000
  6. If the forfeited shares are reissued at the minimum permissible price, the amount credited to 'Capital Reserve Account' will be :
    1. ₹ 2,00,000
    2. ₹ 1,60,000
    3. ₹ 40,000
    4. NIL
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(i) (A) ₹10,00,000

(ii) (D) 20,000

(iii) (C) ₹2,00,000

(iv) (A) ₹1,60,000

(v) (D) ₹1,20,000

(vi) (D) NIL

(1 x 6 = 6 marks)

Q156.2025 Main 67/2/1 · Q25(a)6 marks

Alexia Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at premium of ₹ 10 per share.

The amount was payable as follows :
On application ₹ 9 per share (Including premium ₹ 6 per share)
On allotment ₹ 8 per share (Including premium ₹ 4 per share)
On first and final call ₹ 3 per share.

Applications were received for 1,50,000 equity shares and allotment was made to the applicants as follows :

Category A : Applicants for 90,000 shares were allotted 70,000 shares.
Category B : Applicants for 60,000 shares were allotted 30,000 shares.

Excess money received on application was adjusted towards allotment and first and final call.

Shekhar, who had applied for 1200 shares failed to pay the first and final call. Shekhar belonged to category B.

Pass necessary journal entries for the above transactions in the books of Alexia Limited. Open calls in arrears and calls in advance account, wherever necessary.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Alexia Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.13,50,000
    To Equity Share Application A/c13,50,000
(Application money received on 1,50,000 shares @₹9 per share, including premium ₹6)
Equity Share Application A/c Dr.13,50,000
    To Equity Share Capital A/c3,00,000
    To Securities Premium A/c6,00,000
    To Equity Share Allotment A/c4,20,000
    To Calls in advance A/c30,000
(Transfer of application money to share capital, securities premium, allotment and calls)
Equity Share Allotment A/c Dr.8,00,000
    To Equity Share Capital A/c4,00,000
    To Securities Premium A/c4,00,000
(Amount due on allotment)
Bank A/c Dr.3,80,000
    To Equity Share Allotment A/c3,80,000
(Amount received on allotment)
Equity Share First and Final call A/c Dr.3,00,000
    To Equity Share Capital A/c3,00,000
(Amount due on share first and final call)
Bank A/c Dr.2,68,800
Calls in arrears A/c Dr.1,200
Calls in advance A/c Dr.30,000
    To Equity Share First and Final Call A/c3,00,000
(Amount received on share first and final call except on 600 shares)

(1 x 6 = 6 marks)

Q157.2025 Main 67/2/1 · Q25(b)6 marks

Pass the necessary journal entries for forfeiture and reissue of shares in the following cases :

  1. Premier Ltd. forfeited 600 shares of ₹ 10 each issued at a premium of ₹ 3 per share (payable with allotment) for non-payment of allotment money of ₹ 7 per share including premium. The first and final call of ₹ 3 per share was not yet made. The forfeited shares were reissued at ₹ 13 per share fully paid up.
  2. Risha Ltd. forfeited 1000 shares of ₹ 10 each, ₹ 8 per share called up issued at a premium of ₹ 2 per share to Atul, for non-payment of allotment money of ₹ 6 per share (including premium). Out of these, 800 shares were reissued at ₹ 7 per share, ₹ 8 paid up.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(i)

Books of Premier Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.4,200
Securities Premium A/c Dr.1,800
    To Share Forfeiture A/c1,800
    To Share Allotment A/c / Calls in arrears A/c4,200
(600 shares forfeited for non-payment of allotment money)
Bank A/c Dr.7,800
    To Share Capital A/c6,000
    To Securities Premium A/c1,800
(All forfeited shares reissued @₹13 per share fully paid up)
Share Forfeiture A/c Dr.1,800
    To Capital Reserve A/c1,800
(Profit on reissue of forfeited shares transferred to capital reserve)

(1 x 3)

(ii)

Books of Risha Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.8,000
Securities Premium A/c Dr.2,000
    To Share Forfeiture A/c4,000
    To Share Allotment A/c/ Calls in arrears A/c6,000
(1,000 shares forfeited for non-payment of allotment money)
Bank A/c Dr.5,600
Share Forfeiture A/c Dr.800
    To Share Capital A/c6,400
(Reissue of 800 shares @₹7 per share ₹8 paid up)
Share Forfeiture A/c Dr.2,400
    To Capital Reserve A/c2,400
(Profit on reissue of forfeited shares transferred to capital reserve)

(1 x 3) + (1 x 3) = 6 marks

Q158.2025 Main 67/4/1 · Q246 marks

Following is the extract of the Balance Sheet of Sankalp Ltd. as per Schedule III, Part I of the Companies Act, 2013 as at 31st March, 2024 along with the notes to accounts :

Balance Sheet of Sankalp Ltd. as at 31st March, 2024
(An extract)

ParticularsNote No.31.03.2024 (₹)31.03.2023 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital1.29,80,00025,00,000

Notes to Accounts as at 31st March, 2023

Note No.Particulars31.03.2023 (₹)
1.Share Capital
Authorised Capital
4,50,000 Equity Shares of ₹ 10 each
45,00,000
Issued Capital
2,50,000 Equity Shares of ₹ 10 each
25,00,000
Subscribed Capital
Subscribed and fully paid-up
2,50,000 Equity Shares of ₹ 10 each
Subscribed but not fully paid-up


25,00,000
NIL
25,00,000

Notes to Accounts as at 31st March, 2024

Note No.Particulars31.03.2024 (₹)
1.Share Capital
Authorised Capital
4,50,000 Equity Shares of ₹ 10 each
45,00,000
Issued Capital
3,00,000 Equity Shares of ₹ 10 each
30,00,000
Subscribed Capital
Subscribed and fully paid-up
2,90,000 Equity Shares of ₹ 10 each


29,00,000
Subscribed but not fully paid-up
10,000 Equity Shares of ₹ 10 each fully called-up
Less Calls-in-Arrears
10,000 Equity Shares @ ₹ 2 per share

1,00,000

20,000



80,000
29,80,000

Answer the following questions :

  1. Equity share capital issued during the year 2023 – 24 amounted to : (1 mark)

    1. ₹ 2,10,000
    2. ₹ 4,90,000
    3. ₹ 5,00,000
    4. ₹ 5,50,000
  2. The number of shares on which the amount called-up was not received were : (1 mark)

    1. 10,000
    2. 40,000
    3. 50,000
    4. 1,50,000
  3. On 1st April, 2024, Sankalp Ltd. forfeited all the shares on which the called-up amount was not received. ‘Share Capital Account’ will be debited with : (1 mark)

    1. ₹ 20,000
    2. ₹ 80,000
    3. ₹ 1,00,000
    4. ₹ 1,20,000
  4. On forfeiture of shares, the amount credited to ‘Share Forfeiture Account’ will be : (1 mark)

    1. ₹ 20,000
    2. ₹ 80,000
    3. ₹ 1,00,000
    4. ₹ 1,20,000
  5. If all the forfeited shares are reissued at ₹ 9 per share fully paid-up, the amount credited to ‘Capital Reserve’ will be : (1 mark)

    1. ₹ 20,000
    2. ₹ 80,000
    3. ₹ 1,00,000
    4. ₹ 70,000
  6. If the forfeited shares are reissued at a minimum reissue price, the amount credited to ‘Capital Reserve A/c’ will be : (1 mark)

    1. Nil
    2. ₹ 20,000
    3. ₹ 80,000
    4. ₹ 1,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(i) (C) - ₹ 5,00,000
(ii) (A) - 10,000
(iii) (C) - ₹ 1,00,000
(iv) (B) - ₹ 80,000
(v) (D) - ₹ 70,000
(vi) (A) - NIL

(1 x 6) = 6 marks

Q159.2025 Main 67/4/1 · Q25(a)6 marks

Centurian Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 20 per share. The amount was payable as follows :

On Application and Allotment
– ₹ 20 per share (including premium ₹ 17 per share)
On First and Final call
– ₹ 10 per share (including premium ₹ 3 per share)

Applications were received for 3,00,000 equity shares and allotment was made to the applicants as follows :

Category (i) – Applicants for 2,00,000 shares were allotted 1,50,000 shares.
Category (ii) – Applicants for 1,00,000 shares were allotted 50,000 shares.

Excess money received on application and allotment was adjusted towards sums due on first and final call. Deepali, who had applied for 2,000 shares, failed to pay the first and final call money. Deepali belonged to Category (i). Her shares were subsequently forfeited.

Pass necessary journal entries for the above transactions in the Books of Centurion Ltd.

Open Calls-in-Arrears and Calls-in-Advance account, wherever necessary.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Books of Centurian Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
  To Equity Share Application and Allotment A/c
(Application amount received on 3,00,000 shares) (1)
60,00,000
60,00,000
Equity Share Application and Allotment A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium A/c
  To Calls in Advance A/c
  To Bank A/c
(Application amount transferred to share capital, securities premium, calls in advance and returned) (1½)
60,00,000
6,00,000
34,00,000
15,00,000
5,00,000
Equity Share First and Final Call A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium A/c
(First and Final call amount due on 2,00,000 shares) (1)
20,00,000
14,00,000
6,00,000
Bank A/c ... Dr.
Calls in Advance A/c ... Dr.
Calls in Arrear A/c ... Dr.
  To Equity Share First and Final Call A/c
(First and Final call received with exception on 1,500 shares and calls in advance adjusted) (1½)
4,95,000
15,00,000
5,000



20,00,000
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
  To Share Forfeiture A/c
  To Calls in Arrears A/c
(1500 shares forfeited due to non-payment of first and final call money) (1)
15,000
4,500


14,500
5,000

(1) + (1½) + (1) + (1½) + (1) = 6 marks

Q160.2025 Main 67/5/1 · Q23(a)6 marks

Radhika Ltd. invited applications for issuing 40,000 equity shares of ₹ 100 each at a premium of ₹ 50 per share. The amount was payable as follows :

On Application and Allotment–₹ 40 per share (including ₹ 10 premium)
On First call–₹ 45 per share (including ₹ 5 premium)
On Second and final call–Balance

Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at ₹ 70 per share fully paid up. The second and final call was not yet made.

Pass necessary journal entries for the above transactions in the books of Radhika Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

In the books of Radhika Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c Dr.
To Equity Share Application & Allotment A/c
(Application money received on 39,000 shares)
15,60,000
15,60,000
Equity Share Application & Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Application money transferred to share capital A/c and securities premium A/c on allotment of shares)
15,60,000
11,70,000
3,90,000
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Amount due on first call)
17,55,000
15,60,000
1,95,000
Bank A/c Dr.
Calls in arrears A/c Dr.
To Equity Share First Call A/c
(First call money received, except on 100 shares)
17,50,500
4,500


17,55,000
Alternatively,
Bank A/c Dr.
To Equity Share First Call A/c
(First Call money received, except on 100 shares)

17,50,500


17,50,500
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(100 shares forfeited for non-payment of first call money)
7,000
500


3,000
4,500
Alternatively,
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Equity Share First Call A/c
(100 shares forfeited for non-payment of first call money)

7,000
3,000



3,000
4,500
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(100 shares reissued at ₹70 per share as fully paid up)
7,000
3,000


10,000

(1 x 6 = 6 marks)

In the second ‘Alternatively’ forfeiture entry the marking scheme prints Securities Premium A/c Dr. 3,000 (reproduced as printed; the first forfeiture entry shows 500).

Q161.2025 Main 67/5/1 · Q23(b)6 marks

Sona Ltd. invited applications for issuing 60,000 equity shares of ₹ 50 each. The amount was payable as follows :

On Application–₹ 20 per share
On Allotment–₹ 25 per share
On First and final call–Balance

Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited.

Pass necessary journal entries in the books of Sona Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

In the books of Sona Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c Dr.
To Equity Share Application A/c
(Application money received on 90,000 shares)
18,00,000
18,00,000
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
To Bank A/c
(Application money on 60,000 shares transferred to share capital A/c and securities premium A/c, amount on 10,000 shares refunded and the excess amount adjusted to share allotment account)
18,00,000
12,00,000
4,00,000
2,00,000
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Amount due on allotment)
15,00,000
15,00,000
Bank A/c Dr.
Calls in arrears A/c Dr.
To Equity Share Allotment A/c
(Allotment money received, except on 600 shares)
10,89,000
11,000


11,00,000
Alternatively,
Bank A/c Dr.
To Equity Share Allotment A/c
(Allotment money received, except on 600 shares)

10,89,000


10,89,000
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(600 shares forfeited for non-payment of allotment money)
27,000
16,000
11,000
Alternatively,
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Equity Share Allotment A/c
(600 shares forfeited for non-payment of allotment money)

27,000


16,000
11,000
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(Amount due on First call on 59,400 shares)
2,97,000
2,97,000
Bank A/c Dr.
Calls in arrears A/c Dr.
To Equity Share First and Final Call A/c
(First call money received, except on 1,000 shares)
2,92,000
5,000


2,97,000
Alternatively,
Bank A/c Dr.
To Equity Share First and Final Call A/c
(Allotment money received, except on 1000 shares)

2,92,000


2,92,000
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(1000 shares forfeited for non-payment of First and Final Call money)
50,000
45,000
5,000
Alternatively,
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Equity Share First and Final Call A/c
(1000 shares forfeited for non-payment of First and Final Call money)

50,000


45,000
5,000

(½ + 1 + ½ + 1 + 1 + ½ + ½ + 1 = 6 marks)

Q162.2025 Main 67/5/1 · Q266 marks

ABC Ltd. was registered with authorised capital of ₹ 1,00,00,000 divided into 10,00,000 equity shares of ₹ 10 each. On 1st April, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of ₹ 3 per share.

Answer the following questions :

(i) The authorised capital of the company is : (1)

  1. ₹ 10,00,000
  2. ₹ 9,90,000
  3. ₹ 1,00,00,000
  4. ₹ 99,45,000

(ii) The issued capital of ABC Ltd. is : (1)

  1. ₹ 1,00,000
  2. ₹ 99,000
  3. ₹ 94,500
  4. ₹ 10,00,000

(iii) The amount of calls-in-arrears will be : (1)

  1. ₹ 27,000
  2. ₹ 90,000
  3. ₹ 2,97,000
  4. Nil

(iv) The ‘subscribed and fully paid up capital’ of ABC Ltd. will be : (1)

  1. ₹ 10,00,000
  2. ₹ 9,00,000
  3. ₹ 99,00,000
  4. ₹ 98,73,000

(v) ‘Subscribed but not fully paid up capital’ of ABC Ltd. will be : (1)

  1. ₹ 98,73,000
  2. ₹ 8,73,000
  3. ₹ 90,000
  4. ₹ 63,000

(vi) The amount of ‘Share Capital’ presented is the Balance Sheet of ABC Ltd. will be : (1)

  1. ₹ 9,63,000
  2. ₹ 98,73,000
  3. ₹ 9,90,000
  4. ₹ 1,00,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(i) (C) ₹1,00,00,000
(ii) (D) ₹10,00,000
(iii) (A) ₹27,000
(iv) (B) ₹9,00,000
(v) (D) ₹63,000
(vi) (A) ₹9,63,000

(1 x 6 = 6 marks)

Q163.2025 Main 67/6/1 · Q23(a)6 marks

DDG Ltd. invited applications for issuing 75,000 equity shares of ₹75 each at a premium of ₹25 per share. The amount was payable as follows :

On Application and Allotment – ₹40 per share
On First and Final Call – Balance (including premium)

Applications for 1,25,000 shares were received. Applications for 25,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis.

Excess money received with applications was adjusted towards sums due on first and final call. Govind, to whom 1,500 shares were allotted, failed to pay the first and final call. Namita, who had applied for 2,000 shares, also failed to pay the first and final call. Shares of both Govind and Namita were forfeited.

Pass the necessary journal entries for the above transactions in the books of DDG Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of DDG Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c ... Dr.
To Equity Share Application and Allotment A/c
(Amount received at the time of application on 1,25,000 equity shares)
50,00,000
50,00,000
1
Equity Share Application and Allotment A/c ... Dr.
To Equity Share Capital A/c
To Bank A/c
To Calls in Advance A/c
(Money received at the time of application transferred to share capital account, amount refunded for applications rejected and balance transferred to call in advance account)
50,00,000
30,00,000
10,00,000
10,00,000
1½
Equity Share First and Final Call A/c ... Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(First and final call due on 75,000 equity shares @ ₹60 per share including premium of ₹25 per share)
45,00,000
26,25,000
18,75,000
1
Bank A/c ... Dr.
Calls in Advance A/c ... Dr.
Calls in Arrears A/c ... Dr.
To Equity Share First and Final Call A/c
(First and final call money received except for 3,000 equity shares)
33,60,000
10,00,000
1,40,000



45,00,000
1½
OR
Bank A/c ... Dr.
Calls in Advance A/c ... Dr.
To Equity Share First and Final Call A/c
(First and final call money received except for 3,000 equity shares)

33,60,000
10,00,000



43,60,000
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Forfeited Shares A/c
To Calls in Arrears A/c / To Equity Share First and Final call A/c
(1,500 equity shares of ₹75 each, forfeited for non-payment of first and final call)
1,12,500
37,500


80,000
70,000
½
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Forfeited Shares A/c
To Calls in Arrears A/c / To Equity Share First and Final call A/c
(1,500 equity shares of ₹75 each, forfeited for non-payment of first and final call)
1,12,500
37,500


80,000
70,000
½

(1 + 1½ + 1 + 1½ + ½ + ½ = 6 marks)

(Note: If an examinee has given combined entry for the above two entries of forfeiture, full credit is to be given)

Q164.2025 Main 67/6/1 · Q23(b)6 marks

Karan Ltd. invited applications for issuing 80,000 equity shares of ₹80 each at par. The amount was payable as follows :

On Application and Allotment – ₹30 per share
On First and Final Call – Balance

Applications for 1,40,000 shares were received. Applications for 20,000 shares were rejected and the money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on first and final call. Ravi, who had applied for 1,200 shares, paid his entire share money along with his application. Chaman, to whom 2,400 shares were allotted, failed to pay the first and final call. Chaman's shares were forfeited.

Pass necessary journal entries for the above transactions in the books of Karan Ltd. Open 'Calls-in-Arrears Account' and 'Calls-in-Advance Account', wherever necessary.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Karan Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c ... Dr.
To Equity Share Application and Allotment A/c
(Amount received at the time of application on 1,40,000 equity shares)
42,60,000
42,60,000
1
Equity Share Application and Allotment A/c ... Dr.
To Equity Share Capital A/c
To Bank A/c
To Calls in Advance A/c
(Money received at the time of application transferred to share capital account, amount refunded for applications rejected and balance transferred to call in advance account)
42,60,000
24,00,000
6,32,000
12,28,000
1½
Equity Share First and Final Call A/c ... Dr.
To Equity Share Capital A/c
(First and final call due on 80,000 equity shares @ ₹50 per share)
40,00,000
40,00,000
1
Bank A/c ... Dr.
Calls in Advance A/c ... Dr.
Calls in Arrears A/c ... Dr.
To Equity Share First and Final Call A/c
(First and final call money received except for 2,400 equity shares)
26,88,000
12,28,000
84,000



40,00,000
1½
Equity Share Capital A/c ... Dr.
To Forfeited Shares A/c
To Calls in Arrears A/c
(2,400 equity shares of ₹80 each forfeited for non-payment of first and final call)
1,92,000
1,08,000
84,000
1

(1 + 1½ + 1 + 1½ + 1 = 6 marks)

Q165.2025 Main 67/6/1 · Q266 marks

The following information has been obtained from the Balance Sheet of Jay Ltd. as at 31st March, 2024 :

Balance Sheet of Jay Ltd. as at 31st March, 2024

ParticularsNote No.Amount (₹)
I – Equity and Liabilities :
1 Shareholders' Funds
(a) Share Capital


1


71,80,000

Notes to Accounts :

Note No.ParticularsAmount (₹)Amount (₹)
1Authorised capital
1,00,000 Equity Shares of ₹100 each

1,00,00,000
Issued capital
75,000 Equity Shares of ₹100 each

75,00,000
Subscribed capital
Subscribed and fully paid up
71,000 Equity Shares of ₹100 each


71,00,000
Subscribed but not fully paid up
1,000 Equity Shares of ₹100 each
Less : Calls in Arrears

1,00,000
(20,000)


80,000
71,80,000

Answer the following questions :

(i) The total number of shares offered to the public for subscription are :

  1. 71,000
  2. 70,400
  3. 70,000
  4. 75,000

(ii) The amount of unissued share capital of the company is :

  1. ₹25,00,000
  2. ₹29,00,000
  3. ₹29,60,000
  4. ₹20,32,000

(iii) The subscribed capital of the company is :

  1. ₹71,80,000
  2. ₹71,00,000
  3. ₹80,00,000
  4. ₹1,00,00,000

(iv) The registered capital of the company is :

  1. ₹71,80,000
  2. ₹80,00,000
  3. ₹1,00,00,000
  4. ₹71,00,000

(v) The amount per share not received on the shares shown under 'subscribed but not fully paid up capital' is :

  1. ₹100
  2. ₹20
  3. ₹1,000
  4. ₹80,000

(vi) If the shares shown under 'subscribed but not fully paid up capital' are forfeited, 'Share Forfeiture Account' will appear at :

  1. ₹20,000
  2. ₹80,000
  3. ₹1,00,000
  4. ₹71,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(i) (D) 75,000
(ii) (A) ₹25,00,000
(iii) (A) ₹71,80,000
(iv) (C) ₹1,00,00,000
(v) (B) ₹20
(vi) (B) ₹80,000

(1 × 6 = 6 marks)

Q166.2025 Main 67/7/1 · Q23(a)6 marks

Mayank Ltd. invited applications for issuing 70,000 equity shares of ₹100 each. The amount was payable as follows :

On Application–₹20 per share
On Allotment–₹40 per share
On First call–₹20 per share
On Second and Final Call–Balance

Applications for 1,00,000 shares were received and allotment was made to all the applicants on pro-rata basis. Excess application money received with application was adjusted towards sums due on allotment. Jay, a shareholder who had applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited immediately after the allotment. Afterwards the first call was made. Meenakshi, the shareholder of 1,400 shares, failed to pay the first call money and her shares were forfeited just after the first call. The second and final call has not been made.

Pass necessary journal entries in the books of the company for the above transactions.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of Mayank Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To Equity Share Application A/c
(Application money received on 1,00,000 shares … ½)
20,00,000

20,00,000
Equity Share Application A/c ... Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
(Application money transferred to Share Capital and excess amount adjusted towards allotment … ½)
20,00,000


14,00,000
6,00,000
Equity Share Allotment A/c ... Dr.
To Equity Share Capital A/c
(Amount due on allotment of 70,000 shares … ½)
28,00,000

28,00,000
Bank A/c ... Dr.
Calls in Arrears A/c ... Dr.
To Equity Share Allotment A/c
(Amount due on allotment received except on 700 shares … 1)
21,78,000
22,000


22,00,000
Or
Bank A/c ... Dr.
To Equity Share Allotment A/c
(Amount due on allotment received except on 700 shares)
21,78,000

21,78,000
Equity Share Capital A/c ... Dr.
To Calls in Arrears A/c/ Share Allotment A/c
To Forfeited Shares A/c
(700 equity shares forfeited for non-payment of allotment amount … 1)
42,000


22,000
20,000
Equity Share First Call A/c ... Dr.
To Equity Share Capital A/c
(Amount due on first call on 69,300 shares … ½)
13,86,000

13,86,000
Bank A/c ... Dr.
Calls in Arrears A/c ... Dr.
To Equity Share First Call A/c
(Share first call money received except on 1,400 shares … 1)
13,58,000
28,000


13,86,000
Or
Bank A/c ... Dr.
To Equity Share First Call A/c
(Share first call money received except on 1,400 shares)
13,58,000

13,58,000
Equity Share Capital A/c ... Dr.
To Calls in Arrears A/c/ Share First Call A/c
To Forfeited Shares A/c
(1,400 equity shares forfeited for non-payment of first call … 1)
1,12,000


28,000
84,000

(= 6 Marks)

Q167.2025 Main 67/7/1 · Q23(b)6 marks

Pass necessary journal entries for forfeiture and re-issue of shares for the following transactions :

  1. Sierra Ltd. forfeited 500 shares of ₹10 each, issued at a premium of ₹2 per share (payable with allotment) for non-payment of allotment money of ₹5 per share (including premium). The first and final call of ₹3 per share was not made. All the forfeited shares were reissued at ₹11 per share, fully paid-up.
  2. Mahira Ltd. forfeited 800 shares of ₹10 each on which first call of ₹3 per share was not received. The second and final call of ₹2 per share was not yet called. Out of these, 400 shares were reissued as ₹8 paid-up for ₹7 per share.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 500 shares for non payment of amount due on allotment)
3,500
1,000



2,500
2,000
Or
Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
To Share Allotment A/c
To Forfeited Shares A/c
(Forfeiture of 500 shares for non payment of amount due on allotment)
3,500
1,000



2,500
2,000
Bank A/c ... Dr.
To Share Capital A/c
To Securities Premium A/c
(500 shares reissued for ₹11 per share, fully paid up)
5,500


5,000
500
Forfeited Shares A/c ... Dr.
To Capital Reserve A/c
(Balance in Forfeited Shares A/c transferred to Capital Reserve)
2,000

2,000
(1 × 3 = 3 Marks)
(ii) Share Capital A/c ... Dr.
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 800 shares for non payment of amount due on first call)
6,400


2,400
4,000
Or
Share Capital A/c ... Dr.
To Share First Call A/c
To Forfeited Shares A/c
(Forfeiture of 800 shares for non payment of amount due on first call)
6,400


2,400
4,000
Bank A/c ... Dr.
Forfeited Shares A/c ... Dr.
To Share Capital A/c
(400 shares reissued for ₹7 per share, ₹8 paid up)
2,800
400


3,200
Forfeited Shares A/c ... Dr.
To Capital Reserve A/c
(Balance in Forfeited Shares A/c transferred to Capital Reserve)
1,600

1,600
(1 × 3 = 3 Marks)

(Total 6 Marks)

Q168.2025 Main 67/7/1 · Q266 marks

Meetu Ltd. is registered with an authorised capital of ₹1,00,00,000 divided into equity shares of ₹10 each. The company invited application for issuing 5,00,000 equity shares at a premium of ₹3 per share. The amount was payable as follows :

On Application and Allotment–₹8 per share (including premium)
On First call–₹3 per share
On Second and Final call–₹2 per share

The issue was fully subscribed. All calls were made and were duly received except from Bhola holding 5,000 shares, who could not pay the second and final call. His shares were forfeited.

Answer the following questions :

(i) The amount of share capital to be shown under the heading ‘Shareholder’s Funds’ will be : (1)

  1. ₹49,90,000
  2. ₹49,50,000
  3. ₹50,00,000
  4. ₹65,00,000

(ii) Total number of shares into which the authorised share capital of the company is divided is : (1)

  1. 10,00,000
  2. 5,00,000
  3. 1,00,000
  4. 11,50,000

(iii) Total amount of ‘Subscribed and fully paid-up’ capital will be : (1)

  1. ₹5,00,00,000
  2. ₹49,50,000
  3. ₹50,00,000
  4. ₹49,90,000

(iv) ‘Subscribed but not fully paid-up’ capital will be : (1)

  1. ₹48,500
  2. Nil
  3. ₹51,500
  4. ₹70,000

(v) The issued capital of the company is : (1)

  1. ₹50,00,000
  2. ₹5,00,000
  3. ₹65,00,000
  4. ₹1,00,00,000

(vi) ‘Share Forfeiture Account’ will appear under subscribed capital at : (1)

  1. ₹55,000
  2. ₹50,000
  3. ₹10,000
  4. ₹40,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(i) (A) ₹49,90,000
(ii) (A) 10,00,000
(iii) (D) ₹49,90,000
(iv) (B) Nil
(v) (A) ₹50,00,000
(vi) (D) ₹40,000

(1 × 6 = 6 Marks)

Q169.2025 Supp. 67/S/1 · Q23(a)6 marks

Hira Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at 10% premium. The amount was payable as follows :

On Application — ₹ 3 per share
On Allotment — ₹ 3 per share (including premium)
On first and final call — Balance amount

Applications were received for 1,40,000 shares and shares were allotted on a pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums due on allotment. All the shareholders paid the allotment money due except one shareholder who was allotted 1,000 shares. These shares were forfeited immediately. All these shares were reissued to Shashi as ₹ 5 paid up for ₹ 4 per share. First and final call has not been made.

Pass necessary journal entries in the books of Hira Ltd. Open Calls-in-Arrears Account wherever required.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Hira Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.4,20,000
    To Equity Share Application A/c4,20,000
(Application money received on 1,40,000 shares @₹3 per share) [½ mark]
Equity Share Application A/c ... Dr.4,20,000
    To Equity Share Capital A/c3,00,000
    To Equity Share Allotment A/c1,20,000
(Transfer of application money to share capital and share allotment) [1 mark]
Equity Share Allotment A/c ... Dr.3,00,000
    To Equity Share Capital A/c2,00,000
    To Securities Premium A/c1,00,000
(Amount due on allotment) [½ mark]
Bank A/c ... Dr.1,78,200
Calls in arrears A/c ... Dr.1,800
    To Equity Share Allotment A/c1,80,000
(Amount received on allotment) [1 mark]
Equity Share Capital A/c ... Dr.5,000
Securities Premium A/c ... Dr.1,000
    To Share Forfeiture A/c4,200
    To Calls in Arrears A/c1,800
(1,000 shares forfeited for non-payment of allotment money) [1 mark]
Bank A/c ... Dr.4,000
Share Forfeiture A/c ... Dr.1,000
    To Equity Share capital A/c5,000
(Reissue of 1,000 shares at ₹4 per share, ₹5 paid up) [1 mark]
Share Forfeiture A/c ... Dr.3,200
    To Capital Reserve A/c3,200
(Balance of Share Forfeiture transferred to capital reserve) [1 mark]

= 6 marks

Q170.2025 Supp. 67/S/1 · Q23(b)6 marks

Pass necessary journal entries for forfeiture and reissue of shares in the following cases :

  1. Krisha Ltd. forfeited 1,000 shares of ₹ 10 each, fully called-up on which only ₹ 4,000 had been received. 500 of the forfeited shares were reissued for ₹ 8 per share fully paid-up.
  2. XYZ Ltd. forfeited 20,000 shares of ₹ 10 each issued at a premium of ₹ 1 per share, for non-payment of second and final call of ₹ 2 per share. 70% of these shares were reissued at ₹ 7 per share fully paid-up.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(i)

Books of Krisha Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c ... Dr.10,000
    To Share Forfeiture A/c4,000
    To Calls in Arrears A/c6,000
(1,000 shares forfeited on which only ₹4,000 was received)
Bank A/c ... Dr.4,000
Share Forfeiture A/c ... Dr.1,000
    To Share Capital A/c5,000
(Reissue of 500 shares @₹8per share fully paid up)
Share Forfeiture A/c ... Dr.1,000
    To Capital Reserve A/c1,000
(Balance in share forfeiture transferred to capital reserve)

(1 x 3)

(ii)

Books of XYZ Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c ... Dr.2,00,000
    To Share Forfeiture A/c1,60,000
    To Equity Share Second and Final Call/ Calls in Arrears A/c40,000
(20,000 shares forfeited for non-payment of second and final call money)
Bank A/c ... Dr.98,000
Share Forfeiture A/c ... Dr.42,000
    To Share Capital A/c1,40,000
(Reissue of 14,000 shares @₹7 per share fully paid up)
Share Forfeiture A/c ... Dr.70,000
    To Capital Reserve A/c70,000
(Balance in share forfeiture transferred to capital reserve)

(1 x 3) = 6 marks

Q171.2025 Supp. 67/S/1 · Q266 marks

Nisha Ltd. was registered with a capital of ₹ 6,00,000 in shares of ₹ 100 each. It issued 4,000 shares. The amount was payable as follows :

On Application — ₹ 30 per share
On Allotment — ₹ 30 per share
On First and Final Call — Balance

The issue was fully subscribed and all amounts payable on application and allotment were duly received. Amit, a shareholder, failed to pay first and final call of ₹ 40 per share on his 200 shares.

Answer the following questions :

(i) The Authorised capital of Nisha Ltd. shown in ‘Notes to Accounts’ will be :

  1. ₹ 6,00,000
  2. ₹ 4,00,000
  3. ₹ 6,00,00,000
  4. ₹ 3,60,000

(ii) The Issued capital of Nisha Ltd. shown in ‘Notes to Accounts’ will be :

  1. ₹ 3,60,000
  2. ₹ 6,00,000
  3. ₹ 4,00,000
  4. ₹ 3,92,000

(iii) ‘Subscribed and not fully paid up capital’ shown in ‘Notes to Accounts’ will be :

  1. ₹ 3,92,000
  2. ₹ 20,000
  3. ₹ 3,80,000
  4. ₹ 12,000

(iv) ‘Subscribed and fully paid capital’ of Nisha Ltd. shown in ‘Notes to Accounts’ will be :

  1. ₹ 20,000
  2. ₹ 3,80,000
  3. ₹ 12,000
  4. ₹ 3,92,000

(v) Calls in arrears of Nisha Ltd. will be :

  1. ₹ 12,000
  2. ₹ 20,000
  3. ₹ 8,000
  4. Nil

(vi) The amount of ‘Share Capital’ shown under ‘Shareholders’ Funds’ in the Balance Sheet of Nisha Ltd. will be :

  1. ₹ 3,92,000
  2. ₹ 3,80,000
  3. ₹ 4,00,000
  4. ₹ 6,00,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(i) (A) ₹6,00,000
(ii) (C) ₹4,00,000
(iii) (D) ₹12,000
(iv) (B) ₹3,80,000
(v) (C) ₹8,000
(vi) (A) ₹3,92,000

1 x 6 = 6 marks

Q172.2024 Main 67/1/1 · Q25(a)6 marks

Qumtan Ltd. invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium of ₹6 per share. The amount was payable as follows :

On Application and Allotment– ₹8 per share (including premium ₹3)
On First and Final call– Balance (including premium)

Applications for 1,60,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received on application and allotment was returned. Dheeraj, who was allotted 200 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at ₹5 per share fully paid up.

Pass necessary journal entries in the books of Qumtan Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the Books of Qumtan Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)
Bank A/c ... Dr.
  To Equity Share Application and Allotment A/c
(Application and allotment money received on 1,60,000 shares)

12,80,000


12,80,000
(ii)
Equity Share Application and Allotment A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium A/c
  To Bank A/c
(Application money transferred to Share Capital and Securities Premium; excess amount returned)

12,80,000


5,00,000
3,00,000
4,80,000
(v)
Equity Share First & Final Call A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium A/c
(Share First & Final Call money due)

8,00,000


5,00,000
3,00,000
(vi)
Bank A/c ... Dr.
Calls- in- Arrears A/c ... Dr.
  To Equity Share First & Final Call A/c
(Share first and final call money received except on 200 shares)

Alternatively
Bank A/c ... Dr.
  To Equity Share First & Final Call A/c
(Share first and final call money received except on 200 shares)

7,98,400
1,600




7,98,400



8,00,000




7,98,400
(vii)
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
  To Calls- in- Arrears A/c
  To Share Forfeiture A/c
(200 equity shares forfeited for non-payment of first and final call)

Alternatively
Equity Share Capital A/c ... Dr.
Securities Premium A/c ... Dr.
  To Equity Share First and Final Call A/c
  To Share Forfeiture A/c
(200 equity shares forfeited for non-payment of first and final call)

2,000
600





2,000
600



1,600
1,000





1,600
1,000
(viii)
Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
  To Equity Share Capital A/c
(200 forfeited shares reissued)

1,000
1,000



2,000

(1 × 6) = 6 marks

Q173.2024 Main 67/1/1 · Q25(b)6 marks

Printkit Limited invited applications for issue of 80,000 equity shares of ₹10 each. The amount was payable as follows :

On Application– ₹3 per share
On Allotment– ₹2 per share
On First and Final call– Balance

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis :

Category A – Applicants for 80,000 shares were allotted 40,000 shares.
Category B – Applicants for 60,000 shares were allotted 40,000 shares.

Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received.

Pass necessary journal entries in the books of Printkit Limited.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the books of Printkit Limited
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)
Bank A/c ... Dr.
  To Equity Share Application A/c
(Application money received on 1,50,000shares) (½)

4,50,000


4,50,000
(ii)
Equity Share Application A/c ... Dr.
  To Equity Share Capital A/c
  To Equity Share Allotment A/c
  To Calls-in- Advance A/c
  To Bank A/c
(Application money transferred to Share Capital and excess amount adjusted to Share Allotment A/c and calls-in-advance; application money on 10,000 shares refunded) (1½)

4,50,000


2,40,000
1,40,000
40,000
30,000
(iii)
Equity Share Allotment A/c ... Dr.
  To Equity Share Capital A/c
(Allotment money due on 80,000 shares) (1)

1,60,000


1,60,000
(iv)
Bank A/c ... Dr.
  To Equity Share Allotment A/c
(Allotment money received after adjusting excess application money) (1)

20,000


20,000
(v)
Equity Share First & Final Call A/c ... Dr.
  To Equity Share Capital A/c
(Share First & Final Call money due) (1)

4,00,000


4,00,000
(vi)
Bank A/c ... Dr.
Calls- in- Advance A/c ... Dr.
  To Equity Share First & Final Call A/c
(Share first and final call money received after adjusting calls- in- advance) (1)

3,60,000
40,000



4,00,000

= 6 marks

Q174.2024 Main 67/2/1 · Q26(a)6 marks

Pass necessary journal entries for forfeiture and reissue of shares in the following cases :

  1. Star Ltd. forfeited 8,000 shares of ₹ 100 each issued at 10% premium for non-payment of allotment money of ₹ 40 per share (including premium) and first call of ₹ 30 per share. The second and final call of ₹ 20 per share was not yet called. Out of these, 6,000 shares were reissued at ₹ 80 paid up for ₹ 70 per share.
  2. Premier Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received and the second and final call of ₹ 2 per share was not yet called. Out of these, 2,000 shares were reissued to Gita at ₹ 8 paid up for ₹ 12 per share.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(i)

Books of Star Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls in arrears A/c
(8,000 shares forfeited for non-payment of allotment and 1st call money) [1]
6,40,000
80,000



1,60,000
5,60,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(8,000 shares forfeited for non-payment of allotment and 1st call money)
6,40,000
80,000




1,60,000
3,20,000
2,40,000
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share capital A/c
(6,000 shares reissued @ ₹70, ₹80 paid up) [1]
4,20,000
60,000


4,80,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on reissue of 6,000 shares transferred to capital reserve) [1]
60,000

60,000

(ii)

Books of Premier Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in arrears A/c
(3,000 shares forfeited for non-payment of 1st call money) [1]
24,000


15,000
9,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
(3,000 shares forfeited for non-payment of 1st call money)
24,000


15,000
9,000
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(2,000 shares reissued for ₹12 per share, ₹8 paid up) [1]
24,000


16,000
8,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on reissue of 2,000 shares transferred to capital reserve) [1]
10,000

10,000

= 6 marks

Q175.2024 Main 67/2/1 · Q26(b)6 marks

Zee Ltd. invited applications for issuing 40,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows :

On Application– ₹ 4 per share
On Allotment– ₹ 5 per share (including premium)
On First call– ₹ 2 per share
On Second and Final call– Balance

Applications were received for 60,000 shares. Applications for 12,000 shares were rejected and money returned to the applicants. The shares were allotted on pro-rata basis to the applicants of 48,000 shares. The excess money received on application was adjusted towards sums due on allotment.

All shareholders paid the allotment money except one shareholder who had applied for 1,200 shares. His shares were forfeited immediately after allotment. First call was made thereafter and all the money due was received. The second and final call was not yet made.

Pass necessary journal entries for the above transactions in the books of Zee Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Zee Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Share Application A/c
(Application money received on 60,000 shares) [½]
2,40,000

2,40,000
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Application money transferred to share capital A/c, excess money received adjusted towards allotment and refunded) [1]
2,40,000



1,60,000
32,000
48,000
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Amount due on allotment) [1]
2,00,000


1,20,000
80,000
Bank A/c Dr.
Calls in arrears A/c Dr.
To Share Allotment A/c
(Allotment money received, except on 1,000 shares) [1]
1,63,800
4,200


1,68,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Share Allotment A/c
(Allotment money received, except on 1,000 shares)
1,63,800

1,63,800
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(1,000 shares forfeited for non-payment of allotment money) [1]
7,000
2,000



4,800
4,200

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
(1,000 shares forfeited for non-payment of allotment money)
7,000
2,000



4,800
4,200
DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share First Call A/c Dr.
To Share Capital A/c
(Amount due on First call on 39,000 shares) [1]
78,000

78,000
Bank A/c Dr.
To Share First Call A/c
(First call money received, except on 1,000 shares) [½]
78,000

78,000

= 6 marks

Q176.2024 Main 67/3/1 · Q25(a)6 marks

Pass necessary journal entries for forfeiture and reissue of shares in the following cases :

  1. Neon Ltd. forfeited 2,000 shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not yet made. Out of these, 1,500 shares were reissued at ₹ 7 per share, ₹ 8 paid up.
  2. Mamta Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received. The second and final call of ₹ 1 per share was not yet called. Out of these, 2,000 shares were reissued at ₹ 9 per share, ₹ 9 paid up.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(i) Books of Neon Ltd.

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c or Share Allotment A/c
(Forfeiture of 2,000 shares for non-payment of allotment of ₹ 5 per share.)
16,000
4,000


10,000
10,000
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(Reissue of 1,500 shares at ₹ 7 per share, ₹ 8 per share paid up.)
10,500
1,500


12,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on 1,500 reissued shares transferred to capital reserve.)
6,000
6,000

1 x 3 = 3 marks

(ii) Books of Mamta Ltd.

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c or Share First Call A/c
(Forfeiture of 3,000 shares for non-payment of first call of ₹ 3 per share.)
27,000
18,000
9,000
Bank A/c Dr.
To Share Capital A/c
(Reissue of 2,000 shares at ₹ 9 per share, ₹ 9 per share paid up.)
18,000
18,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Gain on 2,000 reissued shares transferred to capital reserve.)
12,000
12,000

1 x 3 = 3 marks

Q177.2024 Main 67/3/1 · Q25(b)6 marks

Sai Ltd. invited applications for issuing 60,000 shares of ₹ 10 each. The amount was payable as follows :

On application– ₹ 5 per share
On allotment– ₹ 1 per share
On first and final call– Balance

Applications were received for 58,000 shares. Rajat, the holder of 300 shares, did not pay allotment money and Usha, the holder of 500 shares, paid her entire share money along with allotment money. Rajat’s shares were forfeited immediately after allotment. First and final call was made afterwards and duly received.

Pass necessary journal entries for the above transactions.

Open ‘Calls-in-arrears’ and ‘Calls-in-advance’ Account, wherever required.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Sai Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.
To Share Application A/c
(Application amount received on 58,000 shares.)
2,90,000
2,90,000
(1/2)
Share Application A/c Dr.
To Share Capital A/c
(Application amount transferred to share capital.)
2,90,000
2,90,000
(1/2)
Share Allotment A/c Dr.
To Share Capital A/c
(Allotment amount due on 58,000 shares.)
58,000
58,000
(1/2)
Bank A/c Dr.
Calls in Arrears A/c Dr.
To Share Allotment A/c
To Calls in Advance A/c
(Allotment amount received, calls in arrears debited and calls in advance received.)
59,700
300


58,000
2,000
(1½)
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls in Arrears A/c
(300 shares forfeited due to non-payment of allotment money.)
1,800
1,500
300
(1)
Share First and Final Call A/c Dr.
To Share Capital A/c
(Final call amount due on 57,700 shares.)
2,30,800
2,30,800
(1)
Bank A/c Dr.
Calls in Advance A/c Dr.
To Share First and Final Call A/c
(Final call received and calls in advance adjusted.)
2,28,800
2,000


2,30,800
(1)

Note – Full credit to be given if an examinee has made a separate entry for receiving Calls in Advance.

= 6 marks

Q178.2024 Main 67/4/1 · Q23(a)6 marks

Lazal Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each, at 20% premium. Amount per share was payable as follows : ₹ 5 on application ; ₹ 4 on allotment ; and balance on first and final call. Public applied for 3,20,000 shares, out of which applications for 20,000 shares were rejected and shares were allotted on pro-rata basis to the remaining applications. Kavita, an applicant of 15,000 shares failed to pay allotment and call money. Her shares were forfeited.

Pass necessary Journal entries for the above transactions in the books of the company.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Lazal Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr
To Equity Share Application A/c
(Application money received on 3,20,000 shares) (½)
16,00,000
16,00,000
Equity Share Application A/c ... Dr
To Equity Share Capital A/c
To Equity Share Allotment A/c
To Bank A/c
(Application money transferred to Equity share capital A/c, Excess money received adjusted towards allotment and money refunded on rejected applications) (1)
16,00,000
10,00,000
5,00,000
1,00,000
Equity Share Allotment A/c ... Dr
To Equity Share Capital A/c
To Securities Premium A/c
(Amount due on allotment) (1)
8,00,000
4,00,000
4,00,000
Bank A/c ... Dr
Calls in Arrears A/c ... Dr
To Equity Share Allotment A/c
(Allotment money received except that on 10,000 shares) (1)
2,85,000
15,000


3,00,000
Alternatively
Bank A/c ... Dr
To Equity Share Allotment A/c
(Allotment money received except that on 10,000 shares)
2,85,000
2,85,000
Equity Share First and final Call A/c ... Dr
To Equity Share Capital A/c
(Amount due on 2,00,000 shares on First Call) (½)
6,00,000
6,00,000
Bank A/c ... Dr
Calls in Arrears A/c ... Dr
To Equity Share first and final call A/c
(Amount received on First Call) (1)
5,70,000
30,000


6,00,000
Alternatively
Bank A/c ... Dr
To Equity Share first and final call A/c
(Amount received on First Call)
5,70,000
5,70,000
Equity Share Capital A/c ... Dr
Securities Premium A/c ... Dr
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 10,000 shares for non payment of allotment and call money) (1)
1,00,000
15,000


45,000
70,000
Alternatively
Equity Share Capital A/c ... Dr
Securities Premium A/c ... Dr
To Share Allotment A/c
To Share first & final call A/c
To Forfeited Shares A/c
(Forfeiture of 10,000 shares for non payment of allotment and call money)
1,00,000
15,000


15,000
30,000
70,000

(= 6 Marks)

Q179.2024 Main 67/4/1 · Q23(b)6 marks

Chand Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount per share was payable as follows : ₹ 4 (including premium) on application, ₹ 5 on allotment and balance on first and final call. Applications were received for 1,80,000 shares of which applications for 30,000 shares were rejected and remaining applicants were allotted shares on pro-rata basis. Mansi holding 5,000 shares failed to pay first and final call money and her shares were forfeited.

Pass necessary Journal entries for the above transactions in the books of the company.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Chand Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr
To Equity Share Application A/c
(Application money received on 1,80,000 shares) (1)
7,20,000
7,20,000
Equity Share Application A/c ... Dr
To Equity Share Capital A/c
To Securities Premium A/c
To Equity Share Allotment A/c
To Bank A/c
(Application money transferred to Equity share capital A/c, Securities Premium A/c & Excess money received adjusted towards allotment and money refunded on rejected applications) (1)
7,20,000
2,00,000
2,00,000
2,00,000
1,20,000
Equity Share Allotment A/c ... Dr
To Equity Share Capital A/c
(Amount due on allotment) (½)
5,00,000
5,00,000
Bank A/c ... Dr
To Equity Share Allotment A/c
(Allotment money received) (1)
3,00,000
3,00,000
Equity Share first & final Call A/c ... Dr
To Equity Share Capital A/c
(Money due on First and Final Call) (½)
3,00,000
3,00,000
Bank A/c ... Dr
Calls in Arrears A/c ... Dr
To Equity Share first & final call A/c
(First and final call money received except that on 5,000 shares) (1)
2,85,000
15,000


3,00,000
Alternatively
Bank A/c ... Dr
To Equity Share first & final call A/c
(First and final call money received except that on 5,000 shares)
2,85,000
2,85,000
Equity Share Capital A/c ... Dr
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 5,000 shares for non payment of first and final call) (1)
50,000
15,000
35,000
Alternatively
Equity Share Capital A/c ... Dr
To Equity Share first & final call A/c
To Forfeited Shares A/c
(Forfeiture of 5,000 shares for non payment of first and final call)
50,000
15,000
35,000

(= 6 Marks)

Q180.2024 Main 67/5/1 · Q23(a)6 marks

Murari Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount per share was payable as follows : ₹ 5 on application and ₹ 9 (including premium) on allotment.

Applications were received for 1,40,000 shares and allotment was made on pro-rata basis to all the applicants. Money overpaid on application was utilised towards sums due on allotment.

The allotment money was duly received except from Sameer who had applied for 1,400 shares. His shares were forfeited.

Pass the necessary journal entries in the books of Murari Ltd. to record the above transactions. Open calls-in-arrears account wherever required.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Murari Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.7,00,0001
To Equity Share Application A/c7,00,000
(Application money received on 1,40,000 shares)
Equity Share Application A/c Dr.7,00,0001
To Equity Share Capital A/c4,00,000
To Equity Share Allotment A/c3,00,000
(Application money transferred to share capital account and share allotment account)
Equity Share Allotment A/c Dr.7,20,0001
To Equity Share Capital A/c4,00,000
To Securities Premium A/c3,20,000
(Amount due on allotment)
Bank A/c Dr.4,15,8001½
Calls in arrears A/c Dr.4,200
To Equity Share allotment A/c4,20,000
(Allotment money received except on 800 shares)
Equity Share Capital A/c Dr.8,0001½
Securities Premium A/c Dr.3,200
To Share forfeiture A/c7,000
To Calls in arrears A/c4,200
(800 shares forfeited for non payment of allotment money)

(= 6 marks)

Q181.2024 Main 67/5/1 · Q23(b)6 marks

Kavya Ltd. invited applications for issuing 30,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows :

On application and allotment₹ 7 per share
On first and final call₹ 5 per share (including ₹ 2 premium)

Applications were received for 33,000 shares. Applications for 3,000 shares were rejected and money returned to the applicants. Applications for 30,000 shares were accepted in full.

The application and allotment money was duly received. The first and final call was made and money received except from a shareholder holding 500 shares. His shares were forfeited. All these shares were re-issued to Kartik as fully paid for ₹ 8 per share.

Pass necessary journal entries for the above transactions in the books of Kavya Ltd. Open calls-in-arrears account wherever required.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Kavya Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.2,31,000½
To Share Application and Allotment A/c2,31,000
(Application money received on 33,000 shares)
Share Application and Allotment A/c Dr.2,31,0001
To Share Capital A/c2,10,000
To Bank A/c21,000
(Application money transferred to share capital account and balance refunded)
Share First and final call A/c Dr.1,50,000½
To Equity Share Capital A/c90,000
To Securities Premium A/c60,000
(Amount due on first and final call)
Bank A/c Dr.1,47,5001
Calls in arrears A/c Dr.2,500
To Share First and final call A/c1,50,000
(First and final call received except on 500 shares)
Share Capital A/c Dr.5,0001
Securities Premium A/c Dr.1,000
To Share forfeiture A/c3,500
To Calls in arrears A/c2,500
(500 shares forfeited for non payment of first and final call)
Bank A/c Dr.4,0001
Share forfeiture A/c Dr.1,000
To Share Capital A/c5,000
(Forfeited shares reissued as fully paid for ₹8 per share)
Share Forfeiture A/c Dr.2,5001
To Capital Reserve A/c2,500
(Gain on reissue of forfeited shares transferred to Capital Reserve A/c)

(= 6 marks)

Q182.2024 Supp. 67/S/1 · Q25(a)6 marks

Diamond Ltd. issued a prospectus inviting applications for 20,000 shares of ₹ 10 each. The amount was payable as follows :

On Application– ₹ 4 per share
On Allotment– ₹ 4 per share
On First and Final call– Balance

Applications for 45,000 shares were received and allotment was made as follows :

Category (i) – Applicants for 35,000 shares were allotted 15,000 shares.

Category (ii) – Applicants for 10,000 shares were allotted 5,000 shares.

It was decided that excess money received on application be adjusted towards sum due on allotment and calls.

Amar, an applicant of Category (ii), who was allotted 500 shares, failed to pay the first and final call. His shares were forfeited and subsequently reissued at ₹ 2 per share as fully paid up.

Pass necessary journal entries to record the above transactions in the books of Diamond Ltd.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Diamond Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Bank A/c Dr.
    To Share Application A/c
(Application money received on 45,000 shares)
1,80,000

1,80,000
1
Share Application A/c Dr.
    To Share Capital A/c
    To Share Allotment A/c
    To Calls in Advance A/c
(Application money transferred to Share capital A/c, excess money received adjusted towards allotment and call)
1,80,000



80,000
80,000
20,000
1
Share Allotment A/c Dr.
    To Share Capital A/c
(Amount due on allotment)
80,000

80,000
½
Bank A/c Dr.
    To Share Allotment A/c
(Amount received on Allotment)
---

---
Share First and Final Call A/c Dr.
    To Share Capital A/c
(Amount due on 20,000 shares on First and Final Call)
40,000

40,000
½
Bank A/c Dr.
Calls in Arrears A/c Dr.
Calls in Advance A/c Dr.
    To Share First and Final Call A/c
(Amount received on First and Final Call)
19,000
1,000
20,000



40,000
1
Alternatively
Bank A/c Dr.
Calls in Advance A/c Dr.
    To Share First and Final Call A/c
(Amount received on First and Final Call)
19,000
20,000


39,000
Share Capital A/c Dr.
    To Calls in Arrears A/c
    To Forfeited Shares A/c
(Forfeiture of 500 shares for non-payment of call money)
5,000


1,000
4,000
1
Alternatively
Share Capital A/c Dr.
    To Share First &Final Call A/c
    To Forfeited Shares A/c
(Forfeiture of 500 shares for non-payment of call money)
5,000


1,000
4,000
Bank A/c Dr.
Forfeited Shares A/c Dr.
    To Share Capital A/c
(Shares re-issued @ ₹2 per share as fully paid up)
1,000
4,000


5,000
1
Forfeited Shares A/c Dr.
    To Capital Reserve A/c
(Gain on re-issue of shares transferred to capital reserve)
---

---

=6 Marks

Q183.2024 Supp. 67/S/1 · Q25(b)6 marks

Pearl Ltd. issued a prospectus inviting applications for 40,000 shares of ₹ 10 each at a premium of 20%. The amount was payable as follows :

On Application– ₹ 5 per share
On Allotment– ₹ 5 per share (Including Premium)
On First and Final call– Balance

Applications for 60,000 shares were received and allotment was made on a pro-rata basis to all the applicants. Excess money received on application was adjusted towards the amount due on allotment.

Sameer who had applied for 1,200 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. All the forfeited shares were reissued at ₹ 7 per share as ₹ 8 paid up. First and final call was not yet made.

Pass necessary journal entries to record the above transactions in the book of Pearl Ltd. Open ‘Calls in Arrears Account’ wherever necessary.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Pearl Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Bank A/c Dr.
    To Share Application A/c
(Application money received on 60,000 shares)
3,00,000

3,00,000
1
Share Application A/c Dr.
    To Share Capital A/c
    To Share Allotment A/c
(Application money transferred to Share capital A/c, excess money received adjusted towards allotment)
3,00,000


2,00,000
1,00,000
1
Share Allotment A/c Dr.
    To Share Capital A/c
    To Securities Premium A/c
(Amount due on allotment)
2,00,000


1,20,000
80,000
½
Bank A/c Dr.
Calls in Arrears A/c Dr.
    To Share Allotment A/c
(Allotment money received)
98,000
2,000


1,00,000
1
Share Capital A/c Dr.
Securities Premium A/c Dr.
    To Calls in Arrears A/c
    To Forfeited Shares A/c
(Forfeiture of 800 shares for non-payment of allotment money)
6,400
1,600



2,000
6,000
1
Bank A/c Dr.
Forfeited Shares A/c Dr.
    To Share Capital A/c
(Shares re-issued @ ₹7 per share as ₹8 paid up)
5,600
800


6,400
1
Forfeited Shares A/c Dr.
    To Capital Reserve A/c
(Gain on re-issue of forfeited shares transferred to capital reserve)
5,200

5,200
½

=6 Marks

Q184.2023 Main 67/1/1 · Q23(a)6 marks

Pass necessary journal entries for the forfeiture and reissue of shares in the following cases :

  1. BCG Limited forfeited 75 shares of ₹ 10 each issued at a premium of ₹ 4 per share for non-payment of allotment money of ₹ 8 per share (including premium). The first and final call of ₹ 4 per share was not made. The forfeited shares were reissued at ₹ 15 per share fully paid.
  2. Geetika Limited forfeited 1,200 shares of ₹ 50 each issued at par for non-payment of final call of ₹ 10 per share. Out of these, 900 shares were reissued at ₹ 45 per share fully paid-up.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(i)

Books of BCG Limited — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Share Capital A/c Dr.4501
Securities Premium/ Securities Premium Reserve A/c Dr.300
    To Forfeited Shares A/c150
    To Share Allotment/Calls in Arrears A/c600
(75 shares forfeited for non-payment of allotment)
Bank A/c Dr.1,1251
    To Share Capital A/c750
    To Securities Premium/Securities Premium Reserve A/c375
(75 shares re-issued at ₹ 15 per share, fully paid up)
Forfeited Shares A/c Dr.1501
    To Capital Reserve A/c150
(Gain on 75 re-issued shares transferred to capital reserve)

(ii)

Books of Geetika Limited — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Share Capital A/c Dr.60,0001
    To Forfeited Shares A/c48,000
    To Share Final Call / Calls in Arrears A/c12,000
(1,200 shares forfeited for non-payment of final call)
Bank A/c Dr.40,5001
Forfeited shares A/c Dr.4,500
    To Share Capital A/c45,000
(900 shares re-issued at ₹ 45 per share, fully paid up)
Forfeited Shares A/c Dr.31,5001
    To Capital Reserve A/c31,500
(Gain on 900 re-issued shares transferred to capital reserve)

(3 + 3 = 6 marks)

Q185.2023 Main 67/1/1 · Q23(b)6 marks

Pushkar Limited invited applications for 30,000 shares of ₹ 100 each at 20% premium. The amount per share was payable as under :

On application – ₹ 40 (including ₹ 10 premium)
On allotment – ₹ 30 (including ₹ 10 premium)
On first call – ₹ 30
On second and final call – Balance

Applications were received for 40,000 shares and pro-rata allotment was made to the applicants for 35,000 shares, the remaining applications being refused.

Excess application money was adjusted towards sums due on allotment.

Yogesh, who applied for 700 shares, failed to pay the allotment money and his shares were forfeited immediately after allotment.

First call was made thereafter and all the money due on first call was received. The second and final call was not made.

Pass necessary journal entries for the above transactions in the books of Pushkar Limited.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Books of Pushkar Limited — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Bank A/c Dr.16,00,000½
    To Share Application A/c16,00,000
(Application money received on 40,000 shares)
Share Application A/c Dr.16,00,0001
    To Share Capital A/c9,00,000
    To Securities Premium/Securities Premium Reserve A/c3,00,000
    To Share Allotment A/c2,00,000
    To Bank A/c2,00,000
(Transfer of application money on 30,000 shares to Share Capital account, on 5,000 shares to Allotment account, and of 5,000 shares refunded)
Share Allotment A/c Dr.9,00,0001
    To Share Capital A/c6,00,000
    To Securities Premium/Securities Premium Reserve A/c3,00,000
(Money due on allotment on 30,000 debentures)
Bank A/c Dr.6,86,000
Calls in Arrears A/c Dr.14,000
    To Share Allotment A/c7,00,000
(Money received on share allotment)
OR1
Bank A/c Dr.6,86,000
    To Share Allotment A/c6,86,000
(Money received on share allotment)
Share Capital A/c Dr.30,0001
Securities Premium/Securities Premium Reserve A/c Dr.6,000
    To Forfeited Shares A/c22,000
    To Calls in Arrears A/c/ Share Allotment A/c14,000
(Forfeiture of 600 shares for non-payment of allotment money)
Share First Call A/c Dr.8,82,0001
    To Share Capital A/c8,82,000
(First call amount due on 29,400 shares)
Bank A/c Dr.8,82,000½
    To Share First Call A/c8,82,000
(Money received on first call)

(½ + 1 + 1 + 1 + 1 + 1 + ½ = 6 marks)

Q186.2023 Main 67/2/1 · Q25(a)6 marks

Ganga Ltd. invited applications for issuing 10,000 equity shares of ₹10 each. The amount per share was payable as follows : ₹2 on application, ₹3 on allotment, ₹3 on first call and ₹2 on second and final call.

Applications were received for 15,000 shares. The applications for 3,000 shares were rejected and application money refunded. The shares were allotted on pro-rata basis to the applicants of 12,000 shares. Excess money received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter and duly received. The second and final call was not yet made.

Pass Journal entries for the above transactions in the books of Ganga Ltd. Open Calls-in-Arrears Account wherever required.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Ganga Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c Dr
To Equity Share Application A/c
(Application money received on 15,000 shares) [½]
30,000
30,000
Equity Share Application A/c Dr
To Equity Share Capital A/c
To Equity Share Allotment A/c
To Bank A/c
(Application money transferred to Equity share capital A/c, Excess money received adjusted towards allotment and money refunded on rejected applications) [1]
30,000
20,000
4,000
6,000
Equity Share Allotment A/c Dr
To Equity Share Capital A/c
(Amount due on allotment) [½]
30,000
30,000
Bank A/c Dr
Calls in Arrears A/c Dr
To Equity Share Allotment A/c
(Allotment money received except that on 200 shares) [1]
25,480
520


26,000
Equity Share Capital A/c Dr
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 200 shares for non payment of allotment money) [1]
1,000
520
480
Equity Share First Call A/c Dr
To Equity Share Capital A/c
(Money due on 9,800 shares on First Call) [1]
29,400
29,400
Bank A/c Dr
To Equity Share first call A/c
(Money received on First Call) [1]
29,400
29,400
Q187.2023 Main 67/2/1 · Q25(b)6 marks

Mukund Ltd. invited applications for issuing 50,000 equity shares of ₹10 each at 10% premium. The amount per share was payable as follows : ₹3 on application, ₹3 (including premium) on allotment and balance amount on first and final call. Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums due on allotment only. Application money in excess to sums due on allotment was refunded. A shareholder who had applied for 6,000 shares, could not pay the call money and his shares were forfeited.

Pass necessary Journal entries for the above transactions in the books of Mukund Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Mukund Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c Dr
To Equity Share Application A/c
(Application money received on 1,20,000 shares) [1]
3,60,000
3,60,000
Equity Share Application A/c
To Equity Share Capital A/c
To Equity Share Allotment A/c
To Bank A/c
(Application money transferred to Equity share capital A/c, Excess money received adjusted towards allotment and money refunded on rejected applications) [1]
3,60,000
1,50,000
1,50,000
60,000
Equity Share Allotment A/c Dr
To Equity Share Capital A/c
To Securities Premium A/c/ Securities Premium Reserve A/c
(Amount due on allotment @ ₹3 per share including premium) [1]
1,50,000
1,00,000
50,000
Bank A/c Dr
To Equity Share Allotment A/c
[No Marks]
nil
nil
Equity Share first and final Call A/c Dr
To Equity Share Capital A/c
(Amount due on first and final call @₹5 per share.) [1]
2,50,000
2,50,000
Bank A/c Dr
To Equity Share first and final Call A/c
(First and final call money received except that of 2,500 shares) [1]
2,37,500
2,37,500
Or
Bank A/c Dr
Calls in Arrears A/c Dr
To Equity Share first and final Call A/c
(First and final call money received except that of 2,500 shares)
2,37,500
12,500


2,50,000
Equity Share Capital A/c Dr
To Equity Share first and final Call A/c
To Forfeited Shares A/c
(Forfeiture of 2500 shares for non payment of the first and final call) [1]
25,000
12,500
12,500
Or
Equity Share Capital A/c Dr
To Calls in Arrears A/c
To Forfeited Shares A/c
(Forfeiture of 2500 shares for non payment of the first and final call)
25,000
12,500
12,500

(=6 Marks)

Q188.2023 Main 67/3/1 · Q23(a)6 marks

Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows :

On application – ₹ 5 per share and
On allotment – ₹ 9 per share (included premium).

Applications were received for 1,40,000 shares and allotment was made to all applicants on pro-rata basis. Money overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for 1,400 shares, failed to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at ₹ 9 per share as fully paid up.

Pass necessary journal entries for the above transactions in the books of Lotus Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Books of Lotus Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Bank A/c ... Dr
  To Equity Share Application A/c
(Application money received on 1,40,000 shares) (½)
7,00,000
7,00,000
(ii) Equity Share Application A/c ... Dr
  To Equity Share Capital A/c
  To Equity Share Allotment A/c
(Application money transferred to Share Capital and excess amount adjusted to Share Allotment A/c) (1)
7,00,000
4,00,000
3,00,000
(iii) Equity Share Allotment A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium / Securities Premium Reserve A/c
(Share allotment money due at premium) (1)
7,20,000
4,00,000
3,20,000
(iv) Bank A/c ... Dr.
Calls-in-Arrears A/c ... Dr.
  To Share Allotment A/c
(Allotment money received except on 800 shares) (1)

Alternatively
Bank A/c ... Dr.
  To Share Allotment A/c
(Allotment money received except on 800 shares)
4,15,800
4,200





4,15,800


4,20,000





4,15,800
(v) Share Capital A/c ... Dr.
Securities Premium / Securities Premium Reserve A/c ... Dr.
  To Calls-in-Arrears A/c
  To Share Forfeiture A/c
(800 shares forfeited for non-payment of allotment money) (1)

Alternatively
Share Capital A/c ... Dr.
Securities Premium / Securities Premium Reserve A/c ... Dr.
  To Share Allotment A/c
  To Share Forfeiture A/c
(800 shares forfeited for non-payment of allotment money)
8,000
3,200





8,000
3,200


4,200
7,000





4,200
7,000
(vi) Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
  To Share Capital A/c
(Reissue of forfeited shares) (1)
7,200
800


8,000
(vii) Share Forfeiture A/c ... Dr.
  To Capital Reserve A/c
(Gain on reissue of shares transferred to Capital Reserve) (½)
6,200
6,200

= 6 marks

Q189.2023 Main 67/3/1 · Q23(b)6 marks

Tulip Ltd. invited applications for issuing 2,40,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as under :

On application – ₹ 4 per share (including premium ₹ 2)
On allotment – ₹ 4 per share
On first and final call – ₹ 6 per share (including premium ₹ 2)

Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money received with applications was adjusted towards sums due on allotment. All moneys were duly received except from Rohini who had applied for 7,500 shares, and failed to pay allotment and first and final call.

Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-arrears and Calls-in-advance account, wherever necessary.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Books of Tulip Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Bank A/c ... Dr.
  To Equity Share Application A/c
(Application money received on 3,00,000 shares) (½)
12,00,000
12,00,000
(ii) Equity Share Application A/c ... Dr.
  To Equity Share Capital A/c
  To Securities Premium A/c / Securities Premium Reserve A/c
  To Equity Share Allotment A/c
(Application money transferred to Share Capital and Securities Premium; excess amount adjusted to Share Allotment A/c) (1½)
12,00,000
4,80,000
4,80,000
2,40,000
(iii) Equity Share Allotment A/c ... Dr.
  To Equity Share Capital A/c
(Allotment money due on 2,40,000 shares) (½)
9,60,000
9,60,000
(iv) Bank A/c ... Dr
Calls-in-Arrears A/c ... Dr
  To Equity Share Allotment A/c
(Allotment money received) (1½)
7,02,000
18,000


7,20,000
(v) Equity Share First & Final Call A/c ... Dr
  To Equity Share Capital A/c
  To Securities Premium A/c / Securities Premium Reserve A/c
(Share First & Final Call money due) (1)
14,40,000
9,60,000
4,80,000
(vi) Bank A/c ... Dr.
Calls-in-Arrears A/c ... Dr.
  To Equity Share First & Final Call A/c
(Share first and final call money received except on 6,000 shares) (1)
14,04,000
36,000


14,40,000

= 6 marks

Q190.2023 Main 67/4/1 · Q26(a)6 marks

Yash Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 10%. The amount was payable as follows :
On application ₹ 3 per share; on allotment (including premium) ₹ 3 per share and on first and final call, the balance amount.
Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis to all applicants. The excess money received on application was to be adjusted towards sums due on allotment. Application money in excess of sums due on allotment was refunded. A shareholder who applied for 6,000 shares could not pay the first and final call money and his shares were forfeited. The forfeited shares were reissued for ₹ 60,000 fully paid up.
Pass necessary journal entries for the above transactions in the books of Yash Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Yash Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c   Dr.
   To Equity Share Application A/c
(Application money received on 1,20,000 shares)
[½]
3,60,000

3,60,000
Equity Share Application A/c   Dr.
   To Equity Share Capital A/c
   To Equity Share Allotment A/c
   To Bank A/c
(Application money transferred to share capital A/c , to share allotment A/c and refunded)
[1]
3,60,000



1,50,000
1,50,000
60,000
Equity Share Allotment A/c   Dr.
   To Equity Share Capital A/c
   To Securities Premium / Securities Premium Reserve A/c
(Amount due on allotment)
[1]
1,50,000


1,00,000
50,000
Bank A/c   Dr.
   To Equity Share allotment A/c
[No marks]
Nil

Nil
Equity Share First and final call A/c   Dr.
   To Equity Share Capital A/c
(Amount due on First call)
[½]
2,50,000

2,50,000
Bank A/c   Dr.
Calls in arrears A/c   Dr.
   To Equity Share First call A/c
(First call money received , except on 2500 shares)
[1]
2,37,500
12,500


2,50,000
Equity Share Capital   Dr.
   To Share forfeiture A/c
   To Calls in arrears A/c
(2500 shares forfeited for non payment of first and final call)
[1]
25,000


12,500
12,500
Alternatively,
Equity Share Capital   Dr.
   To Equity Share forfeiture A/c
   To Equity Share First and Final Call A/c
(2500 shares forfeited for non payment of first and final call)

25,000



12,500
12,500
Bank A/c   Dr.
   To Equity Share Capital A/c
   To Securities Premium /Securities Premium Reserve A/c
(Forfeited shares reissued for ₹60,000, fully paid up)
[½]
60,000


25,000
35,000
Share forfeiture A/c   Dr.
   To Capital reserve A/c
(Gain on reissue of forfeited shares transferred to capital reserve A/c)
[½]
12,500

12,500

=6 marks

Q191.2023 Main 67/4/1 · Q26(b)6 marks

Ajanta Ltd. issued a prospectus inviting applications for issuing 5,00,000 equity shares of ₹ 10 each issued at a premium of 10%. The amount was payable as follows :
On application – ₹ 3 per share
On allotment (including premium) – ₹ 5 per share
On first and final call – ₹ 3 per share
Applications were received for 6,00,000 shares and pro-rata allotment was made to all applicants. Excess money received on application was adjusted towards sums due on allotment. All amounts were duly received except from Sumit, who was the holder of 1,000 shares, and failed to pay the allotment and first and final call. His shares were forfeited.
Pass journal entries for the above transactions in the books of Ajanta Ltd. Open calls-in-arrears account wherever necessary.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Ajanta Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c   Dr.
   To Equity Share Application A/c
(Application money received on 6,00,000 shares)
[½]
18,00,000

18,00,000
Equity Share application A/c   Dr.
   To Equity Share Capital A/c
   To Equity Share Allotment A/c
(Application money transferred to share capital A/c , excess money received adjusted towards allotment)
[1]
18,00,000


15,00,000
3,00,000
Equity Share Allotment A/c   Dr.
   To Equity Share Capital
   To Securities Premium / Securities Premium Reserve A/c
(Amount due on allotment)
[1]
25,00,000


20,00,000
5,00,000
Bank A/c   Dr.
Calls in arrears A/c   Dr.
   To Equity Share Allotment A/c
(Allotment money received, except on 1000 shares)
[1]
21,95,600
4,400


22,00,000
Equity Share First and Final call A/c   Dr.
   To Equity share Capital A/c
(Amount due on First and final call)
[½]
15,00,000

15,00,000
Bank A/c   Dr.
Calls in arrears A/c   Dr.
   To Equity Share First call A/c
(First call money received, except on 1000 shares)
[1]
14,97,000
3,000


15,00,000
Equity share capital   Dr.
Securities Premium / Securities Premium Reserve A/c   Dr.
   To Share Forfeiture A/c
   To Calls in Arrears A/c
(1000 shares forfeited for non-payment of allotment and first call)
[1]
10,000
1,000



3,600
7,400

=6 marks

Q192.2023 Main 67/5/1 · Q23(a)6 marks

Vani Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The amounts were payable as under :

On Application and Allotment – ₹ 4 per share (including premium ₹1)
On first call – ₹ 4 per share
On second and final call – ₹ 3 per share

Applications for 1,50,000 shares were received and pro-rata allotment was made to all the applicants.

Excess application money was adjusted towards sums due on calls. Parth, a shareholder who had applied for 600 shares did not pay the first call. His shares were forfeited. The second and final call was not yet made. Half of the forfeited shares were reissued at ₹ 8 per share fully paid up.

Journalise the above transactions in the books of Vani Limited by opening calls in arrears and calls in advance account wherever necessary.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Vani Ltd.

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.6,00,000
To Equity Share Application & Allotment A/c6,00,000
(application amount received on 1,50,000 shares) (½)
Equity Share Application & Allotment A/c Dr.6,00,000
To Equity Share Capital A/c3,00,000
To Securities Premium A/c or Securities Premium Reserve A/c1,00,000
To Calls in Advance A/c2,00,000
(application amount transferred to equity share capital, securities premium and calls in advance) (1)
Equity Share First Call A/c Dr.4,00,000
To Equity Share Capital A/c4,00,000
(first call amount due on 1,00,000 shares) (½)
Bank A/c Dr.1,99,200
Calls in Advance A/c Dr.2,00,000
Calls in Arrears A/c Dr.800
To Equity Share First Call A/c4,00,000
(first call amount received, calls in advance adjusted and calls in arrears debited) (1)
Equity Share Capital A/c Dr.2,800
To Share Forfeiture A/c2,000
To Calls in Arrears A/c800
(400 shares forfeited due to non-payment of first call) (1)
Bank A/c Dr.1,600
Share Forfeiture A/c Dr.400
To Equity Share Capital A/c2,000
(reissue of 200 shares at ₹8 per share fully paid up) (1)
Share Forfeiture A/c Dr.600
To Capital Reserve A/c600
(gain on 200 reissued shares transferred to capital reserve) (1)

(½ + 1 + ½ + 1 + 1 + 1 + 1 = 6 marks)

Q193.2023 Main 67/5/1 · Q23(b)6 marks

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

  1. Vipin Ltd. forfeited 10,000 shares of ₹ 10 each issued at a premium of ₹ 1 per share, for non-payment of second and final call of ₹ 2 per share. Out of these, 60% of the shares were reissued at ₹ 7 per share fully paid up. (3)
  2. Deepak Ltd. forfeited 800 shares of ₹ 10 each, ₹ 8 per share called up, for non-payment of first call of ₹ 3 per share. All the forfeited shares were reissued for ₹ 12 per share fully paid. (3)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(i)

Books of Vipin Ltd.

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.1,00,000
To Share Forfeiture A/c80,000
To Calls in Arrears or Share Second and Final Call A/c20,000
(forfeiture of 10,000 shares for non-payment of second and final call of ₹2 per share)
Bank A/c Dr.42,000
Share Forfeiture A/c Dr.18,000
To Share Capital A/c60,000
(reissue of 6,000 shares at ₹7 per share fully paid up)
Share Forfeiture A/c Dr.30,000
To Capital Reserve A/c30,000
(gain on 6,000 reissued shares transferred to capital reserve)

(1 × 3 = 3 marks)

(ii)

Books of Deepak Ltd.

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Share Capital A/c Dr.6,400
To Share Forfeiture A/c4,000
To Calls in Arrears or Share First Call A/c2,400
(forfeiture of 800 shares for non-payment of first call of ₹3 per share)
Bank A/c Dr.9,600
To Share Capital A/c8,000
To Securities Premium A/c or Securities Premium Reserve A/c1,600
(reissue of 800 shares for ₹12 per share fully paid up)
Share Forfeiture A/c Dr.4,000
To Capital Reserve A/c4,000
(gain on 800 reissued shares transferred to capital reserve)

(1 × 3 = 3 marks)

(3 + 3 = 6 marks)

Q194.2023 Supp. 67/C/1 · Q25(a)6 marks

CCL Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share.

The amount was payable as follows :

On Application – ₹ 2 per share
On Allotment – ₹ 6 per share (including premium)
On First Call – ₹ 3 per share
On Second and Final Call – Balance

Applications for 1,20,000 shares were received. Application for 45,000 shares were rejected and the excess application money was refunded. Full allotment was made to remaining applicants. All moneys due were received except for Harish, a shareholder holding 2000 shares, who failed to pay the first and second and final call money.

Pass necessary journal entries for the above transactions in the books of the company.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of CCL Ltd.

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c Dr.2,40,000
To Equity Share Application A/c2,40,000
(Application money received on 1,20,000 shares) [½]
Equity Share Application A/c Dr.2,40,000
To Equity Share Capital A/c1,50,000
To Bank A/c90,000
(Application money transferred to Equity share capital A/c and money refunded on rejected applications) [1]
Equity Share Allotment A/c Dr.4,50,000
To Equity Share Capital A/c2,25,000
To Securities Premium A/c/ Securities Premium Reserve A/c2,25,000
(Amount due on allotment @₹6 per share including premium @₹3 per share) [1]
Bank A/c Dr.4,50,000
To Equity Share Allotment A/c4,50,000
(Allotment money received) [½]
Equity Share First Call A/c Dr.2,25,000
To Equity Share Capital A/c2,25,000
(Amount due on first and final call @₹3 per share) [½]
Bank A/c Dr.2,19,000
To Equity Share first call A/c2,19,000
(First and final call money received except that of 2,000 shares)
Or
Bank A/c Dr.2,19,000
Calls in Arrears A/c Dr.6,000
To Equity Share first call A/c2,25,000
(First call money received except that of 2,000 shares) [1]
Equity Share Second Call A/c Dr.1,50,000
To Equity Share Capital A/c1,50,000
(Amount due on second call @₹2 per share) [½]
Bank A/c Dr.1,46,000
To Equity Share Second Call A/c1,46,000
(Second call money received except that of 2,000 shares)
Or
Bank A/c Dr.1,46,000
Calls in Arrears A/c Dr.4,000
To Equity Share second call A/c1,50,000
(Second call money received except that of 2,000 shares) [1]

= 6 marks

Q195.2023 Supp. 67/C/1 · Q25(b)6 marks

Pass necessary journal entries for the forfeiture and reissue of shares in the following cases :

  1. CC Ltd. forfeited 10,000 shares of ₹ 10 each, ₹ 8 called up, for non-payment of allotment money of ₹ 3 per share and first call of ₹ 3 per share. Out of these, 2000 shares were reissued for ₹ 7 per share, ₹ 8 paid up.
  2. GG Ltd. forfeited 2000 shares of ₹ 10 each fully called up, issued at a premium of 10% on which only application money of ₹ 3 per share was received. Out of these, 500 shares were re-issued at ₹ 11 per share, fully paid up.
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(i)

Books of CC Ltd.

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c Dr.80,000
To Share Allotment A/c30,000
To Share First Call A/c30,000
To Forfeited Shares A/c20,000
(Forfeiture of 10,000 shares for non payment of allotment and first call money)
Or
Share Capital A/c Dr.80,000
To Calls in Arrears A/c60,000
To Forfeited Shares A/c20,000
(Forfeiture of 10,000 shares for non payment of allotment and first call money)
Bank A/c Dr.14,000
Forfeited Shares A/c Dr.2,000
To Share Capital A/c16,000
(2,000 shares reissued for ₹7 per share, ₹8 paid up)
Forfeited Shares A/c Dr.2,000
To Capital Reserve A/c2,000
(Balance in Forfeited Shares A/c transferred to Capital Reserve)

1 x 3 = 3 marks

(ii)

Books of GG Ltd.

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Share Capital A/c Dr.20,000
Securities Premium A/c/ Securities Premium Reserve A/c Dr.2,000
To Calls in Arrears A/c16,000
To Forfeited Shares A/c6,000
(Forfeiture of 2,000 shares on which only application money was received)
Bank A/c Dr.5,500
To Share Capital A/c5,000
To Securities Premium A/c/ Securities Premium Reserve A/c500
(500 shares reissued for ₹11 per share, fully paid up)
Forfeited Shares A/c Dr.1,500
To Capital Reserve A/c1,500
(Balance in Forfeited Shares A/c transferred to Capital Reserve)

1 x 3 = 3 marks

= 3 + 3 = 6 marks

Q196.SQP 2025-26 · Q236 marks

Extract of Financial statements of Alexa Ltd are produced below.

Balance Sheet ( Extract)

Equity and LiabilitiesNote no.31-03-2531-03-24
Shareholders funds(₹)(₹)
Equity Share capital12,37,60,0002,00,00,000
Reserves and Surplus220,00,00010,00,000

Note No. 1 Share Capital

Authorised Share Capital31-03-25 (₹)31-03-24 (₹)
Equity shares of Rs.10 each--------------
Issued Capital2,37,60,0002,00,00,000
Subscribed capital (Fully Paid)2,37,60,0002,00,00,000
Note No. 2 Reserves and Surplus31-03-25 (₹)31-03-24 (₹)
Securities Premium20,00,00010,00,000

During the year Alexa ltd. purchased business of Gloria ltd. with assets of Rs.50,00,000 and liabilities of Rs.20,00,000. With regards to the following additional Information:
1) During the year 40,000 Equity Shares were issued at a premium of Rs.4 per share for cash.
2) Besides this no shares were issued as sweat equity, bonus or as ESOP or in any other form.

Give journal entries for issue of shares for cash and consideration other than cash. Also, prepare Share Capital A/c and Securities Premium Account in the books of Alexa ltd.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
Bank A/c Dr.
To Equity Share Application and Allotment A/c
(Being application money including premium received))
5,60,000
5,60,000
Equity share application and allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Being Shares issued at premium)
5,60,000
4,00,000
1,60,000
Assets A/c Dr.
Goodwill A/c Dr.
To Liabilities A/c
To Gloria ltd. A/c
(Being business taken over and goodwill recorded)
50,00,000
12,00,000


20,00,000
42,00,000
Gloria ltd. A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Being Purchase consideration paid to Gloria ltd.)
42,00,000
33,60,000
8,40,000

Dr. Equity Share Capital A/c Cr.

DateParticularsAmountDateParticularsAmount
To Balance C/d2,37,60,000By Balance b/d2,00,00,000
By Equity share application and allotment A/c4,00,000
By Gloria Ltd. A/c33,60,000
2,37,60,0002,37,60,000

Dr. Securities Premium A/c Cr.

DateParticularsAmountDateParticularsAmount
To Balance C/d20,00,000By Balance b/d10,00,000
By Equity share application and allotment A/c1,60,000
By Gloria Ltd. A/c8,40,000
20,00,00020,00,000
Q197.SQP 2025-26 · Q26(a)6 marks

Space Ventures Limited was registered with an authorised capital of ₹ 20,00,000 divided into 2,00,000 shares of ₹ 10 each. The company offered 80,000 shares for public subscription payable ₹ 4 on application and ₹ 7 on allotment (including ₹ 1 premium). Public had applied for 1,10,000 shares and pro-rata allotment was made in the ratio of 5:4. Remaining applications were rejected. Mukta, holding 6,000 shares failed to pay allotment money. Her shares were being forfeited and later re-issued 4,000 shares at a discount of ₹ 2 per share.

Pass necessary entries in the books of Space Ventures Ltd.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
I.Bank A/c Dr.
To Share Application A/c
(Being application amount received for 1,10,000 shares)
4,40,000
4,40,000
II.Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Being application money adjusted and surplus money refunded)
4,40,000
3,20,000
80,000
40,000
III.Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Being allotment amount due)
5,60,000
4,80,000
80,000
IV.Bank A/c Dr.
Calls in Arrears A/c Dr.
To Share Allotment A/c
(Being allotment money received and unpaid amount transferred to Call in arrears)
4,44,000
36,000


4,80,000
V.Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeited A/c
To Calls in Arrears A/c
(Being shares forfeited)
60,000
6,000


30,000
36,000
VI.Bank A/c Dr.
Share Forfeited A/c Dr.
To Share Capital A/c
(Being shares reissued)
32,000
8,000


40,000
VII.Share Forfeited A/c Dr.
To Capital Reserve A/c
(Being gain on reissue transferred to Capital Reserve)
12,000
12,000
Q198.SQP 2025-26 · Q26(b)6 marks

Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment (including ₹ 1 premium) and balance on call. Applications were received for 3,00,000 shares out of which 20% applications were rejected and remaining were allotted on pro-rata basis. Rohan, an applicant of 12,000 shares failed to pay allotment money and Mohan holding 8,000 shares paid the entire money along with allotment. Subsequently the call was made, all the money was duly received except from Rohan. Later on, company issued a notice to Rohan to pay the balance in 15 days failing which his shares would be forfeited. Rohan cleared his dues within the stipulated time period.

Journalise.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
I.Bank A/c Dr.
To Share Application A/c
(Being application amount received for 3,00,000 shares)
9,00,000
9,00,000
II.Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Being application money adjusted and surplus money refunded)
9,00,000
6,00,000
1,20,000
1,80,000
III.Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Being allotment amount due)
10,00,000
8,00,000
2,00,000
IV.Bank A/c Dr.
Calls in Arrears A/c Dr.
To Share Allotment A/c
To Calls in advance A/c
(Being allotment money received with calls in advance and unpaid amount transferred to Call advance and calls in arrears A/c)
8,60,000
44,000


8,80,000
24,000
V.Share First Call A/c Dr.
To Share Capital A/c
(Being Call money due)
6,00,000
6,00,000
VI.Bank A/c Dr.
Calls in Advance A/c Dr.
Calls in Arrears A/c Dr.
To Share First Call A/c
(Being Call money received except on 10,000 shares and advance adjusted)
5,46,000
24,000
30,000



6,00,000
VII.Bank A/c Dr.
To Calls in Arrears A/c
(Being Calls in arrears received)
74,000
74,000
Q199.SQP 2026-27 · Q26(a)6 marks

Lacchoo Ltd. invited applications for 1,20,000 equity shares of ₹10 each at a premium of ₹ 4 per share, payable as –

₹6 on Application (including ₹2 premium)
₹5 on Allotment (including ₹1 premium)
Balance on First & Final Call.

Applications were received for 2,70,000 shares, out of which applications for 10,000 shares were rejected and the allotment was made on a pro-rata basis to the remaining applicants.

Mr. Parivesh, who was allotted 1,200 shares, failed to pay call money. His shares were forfeited after due notice. Later, these shares were reissued at ₹ 100 per share as fully paid-up.

Pass necessary Journal Entries in the books of Lacchoo Ltd.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

JOURNAL

DateParticularsLFDr (₹)Cr (₹)
1Bank A/c Dr16,20,000
To Equity Share Application A/c16,20,000
(Application money received on 2,70,000 shares)
2Equity Share application A/c Dr16,20,000
To Equity Share Capital A/c4,80,000
To Bank A/c3,00,000
To Equity Share Allotment A/c6,00,000
To Securities Premium A/c2,40,000
(Share application accepted on 1,20,000 shares and remaining money adjusted)
3Equity Share Allotment A/c Dr6,00,000
To Equity Share Capital A/c4,80,000
To Securities Premium A/c1,20,000
(Allotment money due on 1,20,000 shares)
4Equity Share first call A/c Dr3,60,000
To Equity Share capital A/c2,40,000
To Securities Premium A/c1,20,000
(First call money due on 1,20,000 shares)
5Bank A/c Dr3,56,400
Call in arrears A/c Dr3,600
To Equity Share First call A/c3,60,000
(First call received)
6Equity Share capital A/c Dr12,000
Securities Premium A/c Dr1,200
To Share Forfeited A/c9,600
To Equity share first call A/c3,600
(1,200 shares forfeited for non-payment of call money)
7Bank A/c Dr1,20,000
To Equity Share Capital A/c12,000
To Securities Premium A/c1,08,000
(All forfeited shares reissued)
8Share forfeited A/c Dr9,600
To Capital Reserve A/c9,600
(Gain on reissue of shares transferred to capital reserve)
Q200.SQP 2026-27 · Q26(b)6 marks

Neha Tech Ltd. has authorised capital of ₹ 20,00,000 divided into shares of face value of ₹ 10 each. Company decided to issue 1,00,000 equity shares at a value of ₹ 100 each. The entire face value was payable on application and the entire premium money was payable on allotment.

Applications were received for 1,50,000 shares.

Allotment was made on the following basis:

(i) Applicants of 10,000 shares were sent letters of regret.
(ii) To applicants for another 10,000 shares – Shares were fully allotted
(iii) Remaining applicants were allotted shares on a pro rata basis.

A shareholder who was allotted 18,000 shares belongs to category (iii), failed to pay allotment money and his shares were duly forfeited. Later on, 5,000 shares were reissued as fully paid on a premium of 200%.

You are required to give:

  1. Cash Book, Share Capital A/c and Securities Premium A/c.
  2. Journal entries for forfeiture and re-issue of shares.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

I.

Dr. Cash Book Cr.

Particulars(₹)Particulars(₹)
To Share application A/c15,00,000By Share application A/c1,00,000
To Share allotment A/c70,60,000By Balance c/d86,10,000
To Share capital A/c50,000
To Securities premium A/c1,00,000
87,10,00087,10,000

Dr. Share Capital A/c Cr.

Particulars(₹)Particulars(₹)
To Share Forfeited A/c1,80,000By Share Application A/c10,00,000
To Balance c/d8,70,000By Bank A/c50,000
10,50,00010,50,000

Dr. Securities Premium A/c Cr.

Particulars(₹)Particulars(₹)
To Share Allotment/Calls in Arrears A/c15,40,000By Share Allotment A/c90,00,000
To Balance c/d75,60,000By Bank A/c1,00,000
91,00,00091,00,000

II.

Journal Entries

DateParticularsLFDr. (₹)Cr. (₹)
1Securities premium A/c Dr.15,40,000
Share capital A/c Dr.1,80,000
To Share Allotment A/c /calls in arrears A/c15,40,000
To Share forfeited A/c1,80,000
(Being 18,000 shares forfeited for non-payment of allotment)
2Bank A/c Dr.1,50,000
To Share capital A/c50,000
To securities premium A/c1,00,000
(Being 5,000 forfeited shares reissued at premium)
3Share forfeited A/c Dr.50,000
To Capital Reserve A/c50,000
(Being profit on reissue transferred to Capital Reserve)
Part A · Companies

8. Issue of Debentures

Q1.2026 Main 67/1/1 · Q3(b)1 mark

T.D. Ltd. issued ₹10,00,000, 9% debentures at a discount of 10% redeemable at a certain rate of premium. On issue of these 9% debentures, the premium on redemption of debentures account was credited by ₹1,00,000. The amount of ‘loss on issue of debentures’ was :

  1. ₹1,00,000
  2. ₹2,00,000
  3. ₹3,00,000
  4. Nil
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) ₹2,00,000

Q2.2026 Main 67/1/1 · Q6(a)1 mark

Which of the following is not correct about collateral security ?

  1. It is a primary security.
  2. It is an additional security.
  3. It is a subsidiary security.
  4. It is a secondary security.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) It is a primary security.

Q3.2026 Main 67/1/1 · Q111 mark

On 1st April, 2024, Dina Ltd. issued 8,000, 9% debentures of ₹100 each at a discount of 6%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be :

  1. ₹48,000
  2. ₹72,000
  3. ₹1,20,000
  4. ₹80,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) ₹72,000

Q4.2026 Main 67/2/1 · Q6(b)1 mark

Debentures which do not have a specific charge on the assets of the company are known are :

  1. Non-convertible debentures
  2. Irredeemable debentures
  3. Unsecured debentures
  4. Bearer debentures
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Unsecured debentures

Q5.2026 Main 67/2/1 · Q71 mark

Xiom Ltd. issued 30,000, 12% debentures of ₹ 100 each at a certain rate of discount, redeemable at 10% premium after three years. Balance in Securities Premium Account before issuing these debentures was ₹ 5,00,000 and after writing off loss on issue of debentures, the balance in Securities Premium Account was ₹ 50,000. These debentures were issued at a discount of :

  1. 10%
  2. 12%
  3. 5%
  4. 3%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) 5%

Q6.2026 Main 67/2/1 · Q121 mark

On 1st April, 2024 Vinar Ltd. issued ₹ 5,00,000, 9% debentures of ₹ 100 each at 10% discount. Interest is payable half yearly on 30th September and 31st March every year. The amount of interest written off on 31st March, 2025 was :

  1. ₹ 50,000
  2. ₹ 25,000
  3. ₹ 22,500
  4. ₹ 45,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) ₹ 45,000

Q7.2026 Main 67/2/1 · Q131 mark

Bishan Ltd. acquired assets worth ₹ 12,60,000 and took over liabilities of ₹ 2,40,000 of Nimi Ltd. for a purchase consideration of ₹ 9,40,000. Bishan Ltd. issued 12% debentures of ₹ 100 each at a discount of 6% in favour of Nimi Ltd. for payment of purchase consideration. The number of debentures issued were :

  1. 12,600
  2. 9,400
  3. 9,600
  4. 10,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) 10,000

Q8.2026 Main 67/3/1 · Q6(a)1 mark

On 1st April, 2024, Mobi Ltd. issued 3,000, 9% Debentures of ₹1,000 each at a premium of 5%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be :

  1. ₹2,70,000
  2. ₹1,50,000
  3. ₹27,000
  4. ₹15,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) ₹2,70,000

Q9.2026 Main 67/3/1 · Q111 mark

Nigam Ltd. issued 40,000, 11% Debentures of ₹100 each at a certain rate of discount. The debentures were to be redeemed at 20% premium. Existing balance of Securities Premium before issue of these debentures was ₹13,00,000.

After writing off ‘Loss on issue of debentures’, the balance in Securities Premium was ₹3,00,000.

The above debentures were issued at a discount of :

  1. 20%
  2. 15%
  3. 10%
  4. 5%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) 5 %

Q10.2026 Main 67/3/1 · Q121 mark

Deep Ltd. issued 6,000, 9% Debentures of ₹500 each at ₹490 per debenture. 9% Debentures Account will be credited by :

  1. ₹2,70,000
  2. ₹6,00,000
  3. ₹29,40,000
  4. ₹30,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) ₹30,00,000

Q11.2026 Main 67/3/1 · Q131 mark

Mogra Ltd. purchased assets of ₹14,40,000 from DK Ltd. It issued 9% Debentures of ₹100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to DK Ltd. were :

  1. 14,400
  2. 15,000
  3. 3,60,000
  4. 1,500
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) 15,000

Q12.2026 Main 67/4/1 · Q8(a)1 mark

_____________ debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.

  1. Unsecured
  2. Secured
  3. Convertible
  4. Registered
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) Secured

Q13.2026 Main 67/4/1 · Q121 mark

Amik Ltd. issued 70,000, 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%. ‘Loss on Issue of Debentures Account’ will be debited in the books of Amik Ltd. by :

  1. ₹ 10,50,000
  2. ₹ 7,00,000
  3. ₹ 3,50,000
  4. ₹ 6,30,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) ₹ 7,00,000

Q14.2026 Main 67/4/1 · Q141 mark

White Ltd. purchased Plant and Machinery worth ₹ 3,96,000 from Nath Ltd. The purchase consideration was paid by issue of 9% Debentures of ₹ 100 each at 10% discount. The number of debentures issued were :

  1. 3,960
  2. 4,000
  3. 4,400
  4. 3,600
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) 4,400

Q15.2026 Main 67/5/1 · Q3(b)1 mark

Nori Ltd. issued 20,000, 11% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5%. Loss on issue of debentures account will be debited by :

  1. ₹20,00,000
  2. ₹1,00,000
  3. ₹3,00,000
  4. ₹2,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) ₹1,00,000

Q16.2026 Main 67/5/1 · Q6(b)1 mark

The debentures which do not carry a specific rate of interest are known as :

  1. Irredeemable debentures
  2. Bearer debentures
  3. Specific coupon rate debentures
  4. Zero coupon rate debentures
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) Zero coupon rate debentures

Q17.2026 Main 67/5/1 · Q121 mark

On 1st April, 2024, DD Ltd. issued 2,000, 9% Debentures of ₹50 each at a premium of 5%, redeemable at a premium of ₹10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30th September and 31st March. Interest on the debentures for the year ended 31st March, 2025 will be :

  1. ₹4,500
  2. ₹9,000
  3. ₹9,450
  4. ₹4,725
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) ₹9,000

Q18.2026 Main 67/5/1 · Q131 mark

Universal Ltd. took over machinery of ₹3,30,000, furniture of ₹1,60,000 and liabilities of ₹80,000 from Amol Ltd. for a purchase consideration of ₹4,50,000. The payment to Amol Ltd. was made by issue of 10% Debentures of ₹50 each at a discount of 10%. The number of debentures issued to Amol Ltd. was :

  1. 1,000
  2. 4,500
  3. 45,000
  4. 10,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) 10,000

Q19.2026 Supp. 67/7/1 · Q31 mark

Nitya Ltd. issued 9,000, 11% Debentures of ₹ 100 each at ₹ 97 per debenture. On issue of these debentures, 11% Debentures Account was credited by :

  1. ₹ 11,00,000
  2. ₹ 10,00,000
  3. ₹ 9,00,000
  4. ₹ 9,70,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) ₹9,00,000

Q20.2026 Supp. 67/7/1 · Q7(b)1 mark

Vani Ltd. purchased furniture of ₹ 6,60,000 from Max Ltd. The payment was made by issue of 11% Debentures of ₹ 100 each at a premium of 10%. The number of debentures issued in favour of Max Ltd. were :

  1. 60,000
  2. 6,600
  3. 6,000
  4. 1,000
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) 6,000

Q21.2026 Supp. 67/7/1 · Q131 mark

The debentures which can be transferred by the way of delivery and the company does not keep any record of the debentures holders are called ___________ debentures.

  1. Secured
  2. Redeemable
  3. Bearer
  4. Unsecured
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) Bearer

Q22.2025 Main 67/1/1 · Q3(b)1 mark

VX Ltd. issued 30,000, 8% debentures of ₹ 100 each at a discount of 10% redeemable at a certain rate of premium. On issue of these debentures, 'Loss on issue of debentures account' was debited with ₹ 4,50,000. The amount of premium on redemption of debentures was _____ .

  1. ₹ 3,00,000
  2. ₹ 1,50,000
  3. ₹ 30,000
  4. ₹ 4,50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) ₹ 1,50,000

Q23.2025 Main 67/1/1 · Q7(a)1 mark

Debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register kept by the company are called :

  1. Bearer debentures
  2. Redeemable debentures
  3. Registered debentures
  4. Secured debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) Registered debentures

Q24.2025 Main 67/1/1 · Q131 mark

On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :

  1. ₹ 2,00,000
  2. ₹ 2,60,000
  3. ₹ 1,00,000
  4. ₹ 3,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) ₹ 2,60,000

Q25.2025 Main 67/2/1 · Q13(a)1 mark

Debentures on which a company does not give any undertaking for the repayment of money borrowed are called :

  1. Bearer Debentures
  2. Secured Debentures
  3. Perpetual Debentures
  4. Registered Debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(C) Perpetual Debentures

Q26.2025 Main 67/2/1 · Q13(b)1 mark

If the amount of debentures issued is more than the amount of the net assets taken over by a company, the difference will be treated as :

  1. Capital Reserve
  2. Goodwill
  3. Purchase Consideration
  4. General Reserve
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) Goodwill

Q27.2025 Main 67/2/1 · Q14(a)1 mark

The following journal entry appears in the books of Latvion Ltd. :

DateParticularsDr. Amount (₹)Cr. Amount (₹)
Bank A/c ........ Dr.4,75,000
Loss on issue of debentures A/c ........ Dr.75,000
    To 12% Debentures A/c5,00,000
    To Premium on Redemption of Debentures A/c50,000

The discount on issue of debentures is :

  1. 15%
  2. 5%
  3. 10%
  4. 95%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) 5%

Q28.2025 Main 67/2/1 · Q14(b)1 mark

Zeba Limited issued 15,000, 9% debentures of ₹ 100 each at 10% discount on 1st April, 2023. It has a balance of ₹ 1,00,000 in Securities Premium Account. The 'Discount on issue of Debentures' of ₹ 1,50,000 will be written off :

  1. ₹ 1,00,000 out of Securities Premium Account and ₹ 50,000 out of Statement of Profit and Loss
  2. ₹ 50,000 out of Securities Premium Account and ₹ 1,00,000 out of Statement of Profit and Loss
  3. ₹ 1,50,000 out of Securities Premium Account
  4. ₹ 1,50,000 out of Statement of Profit and Loss
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) ₹1,00,000 out of Securities Premium Account and ₹50,000 out of Statement of Profit and Loss.

Q29.2025 Main 67/4/1 · Q13(a)1 mark

On 1st April, 2024, Bright Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures was :

  1. ₹ 2,00,000
  2. ₹ 4,00,000
  3. ₹ 20,00,000
  4. ₹ 40,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) ₹ 2,00,000

Q30.2025 Main 67/4/1 · Q14(a)1 mark

Shivalik Ltd. issued 7% debentures of ₹ 100 each at a discount of 5% on 1st April, 2023. Discount on issue of debentures, ₹ 1,00,000 was completely written off through Statement of Profit and Loss on 31st March, 2024. On issue of debentures, ‘Debentures Account’ was credited with ____________.

  1. ₹ 10,00,000
  2. ₹ 20,00,000
  3. ₹ 19,00,000
  4. ₹ 1,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(B) ₹ 20,00,000

Q31.2025 Main 67/4/1 · Q14(b)1 mark

Keya Ltd. issued 2,00,000, 8% debentures of ₹ 100 each at 10% discount on 1st April, 2023. Interest is payable half-yearly on 30th September and 31st March every year. Interest written off on 31st March, 2024 was :

  1. ₹ 16,00,000
  2. ₹ 14,40,000
  3. ₹ 8,00,000
  4. ₹ 7,20,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) ₹ 16,00,000

Q32.2025 Main 67/5/1 · Q71 mark

The debentures that can be transferred by way of delivery and the company does not keep any record of the debentures holders are called :

  1. Redeemable debentures
  2. Convertible debentures
  3. Zero Coupon Rate debentures
  4. Bearer debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) Bearer Debentures

Q33.2025 Main 67/5/1 · Q111 mark

Paratigm Ltd. issued 40,000, 11% debentures of ₹ 100 each at a discount of 5%, redeemable at a premium. On issue of these debentures ‘Loss on Issue of Debentures Account’ was debited with ₹ 4,00,000. The amount of premium on redemption of debentures was :

  1. ₹ 4,00,000
  2. ₹ 2,00,000
  3. ₹ 4,40,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) ₹2,00,000

Q34.2025 Main 67/5/1 · Q12(a)1 mark

On 1st April, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31st March, 2024 will be :

  1. ₹ 2,000
  2. ₹ 2,20,000
  3. ₹ 2,00,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) ₹2,00,000

Q35.2025 Main 67/5/1 · Q12(b)1 mark

Radhya Ltd. issued 5,000, 9% debentures of ₹ 100 each at ₹ 97 per debenture. The 9% debentures account will be credited by :

  1. ₹ 4,85,000
  2. ₹ 5,00,000
  3. ₹ 4,50,000
  4. ₹ 50,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) ₹5,00,000

Q36.2025 Main 67/6/1 · Q71 mark

Shyamla Ltd. purchased machinery of ₹9,50,000 from Rohini Ltd. The payment was made by issue of 9% debentures of ₹100 each at a discount of 5% redeemable at a premium of 10% after four years. The number of debentures issued in favour of Rohini Ltd. will be :

  1. 10,000
  2. 9,500
  3. 9,050
  4. 8,636
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) 10,000

Q37.2025 Main 67/6/1 · Q121 mark

Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called :

  1. Secured Debentures
  2. Redeemable Debentures
  3. Registered Debentures
  4. Bearer Debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Bearer Debentures

Q38.2025 Main 67/7/1 · Q7(a)1 mark

On 1st October, 2024, Nirmal Ltd. issued 6,000, 11% Debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. ‘Loss on Issue of Debentures’ will be :

  1. ₹1,20,000
  2. ₹60,000
  3. ₹6,00,000
  4. ₹6,60,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) ₹60,000

Q39.2025 Main 67/7/1 · Q7(b)1 mark

Raja Ltd. issued 8,000, 10% Debentures of ₹100 each at ₹98 per debenture. 10% Debentures Account will be credited by :

  1. ₹9,80,000
  2. ₹10,00,000
  3. ₹7,84,000
  4. ₹8,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) ₹8,00,000

Q40.2025 Main 67/7/1 · Q121 mark

On 1st April, 2023, Mudra Ltd. issued 9,000, 12% Debentures of ₹100 each at 10% premium, redeemable at a premium of 10% after 4 years. The interest due on debentures for the year ended 31st March, 2024 was :

  1. ₹9,90,000
  2. ₹9,00,000
  3. ₹1,08,000
  4. ₹1,18,800
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) ₹1,08,000

Q41.2025 Supp. 67/S/1 · Q3(b)1 mark

On 1st April, 2023, Saya Ltd. issued 7,000, 9% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ending 31st March, 2024 will be :

  1. ₹ 70,000
  2. ₹ 63,000
  3. ₹ 90,000
  4. ₹ 35,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) ₹63,000

Q42.2025 Supp. 67/S/1 · Q61 mark

Precious Ltd. issued 40,000 10% Debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%. ‘Loss on Issue of Debenture Account’ will be debited in the books of Precious Ltd. by :

  1. ₹ 5,60,000
  2. ₹ 2,40,000
  3. ₹ 6,00,000
  4. ₹ 4,00,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) ₹4,00,000

Q43.2025 Supp. 67/S/1 · Q7(b)1 mark

The debentures which are payable on the expiry of a specified period either in lump sum or in instalments during the lifetime of the company are known as ____________ debentures.

  1. Convertible
  2. Redeemable
  3. Secured
  4. Specific coupon rate
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Redeemable

Q44.2024 Main 67/1/1 · Q121 mark

Assertion (A) : Irredeemable debentures are also known as perpetual debentures.
Reason (R) : The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company or on the expiry of a long period.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is incorrect, but Reason (R) is correct.
  4. Assertion (A) is correct, but Reason (R) is incorrect.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) Both Assertion (A) and Reason (R) are correct and reason (R) is the correct explanation of Assertion (A).

Q45.2024 Main 67/2/1 · Q71 mark

On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total amount of interest due on debentures for the year ending 31st March, 2023 will be :

  1. ₹ 2,70,000
  2. ₹ 3,00,000
  3. ₹ 27,000
  4. ₹ 30,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) ₹3,00,000

Q46.2024 Main 67/2/1 · Q101 mark

Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed purchase consideration of ₹ 12,60,000. It was agreed that the purchase consideration will be paid by issuing 11% Debentures of ₹ 100 each at 10% discount. The number of debentures issued will be :

  1. 13,000
  2. 12,600
  3. 10,000
  4. 14,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) 14,000

Q47.2024 Main 67/2/1 · Q111 mark

Misha Ltd. issued 6,000, 8% Debentures of ₹ 100 each at ₹ 96 per debenture. 8% Debentures Account will be credited by :

  1. ₹ 5,76,000
  2. ₹ 24,000
  3. ₹ 6,00,000
  4. ₹ 60,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) ₹6,00,000

Q48.2024 Main 67/2/1 · Q12(ii)1 mark

The debentures which do not have a specific charge on the assets of the company are called :

  1. Redeemable Debentures
  2. Unsecured Debentures
  3. Zero Coupon Rate Debentures
  4. Non-Convertible Debentures
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) Unsecured Debentures

Q49.2024 Main 67/3/1 · Q141 mark

The debentures which do not carry a specific rate of interest are called :

  1. Zero Coupon Rate Debentures
  2. Specific Coupon Rate Debentures
  3. Unsecured Debentures
  4. Secured Debentures
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) Zero Coupon Rate Debentures

Q50.2024 Main 67/4/1 · Q71 mark

Assertion (A) : Interest on bearer debentures is paid to a person who produces the interest coupon attached to such debentures.
Reason (R) : Bearer debentures are transferred by way of delivery and the company does not keep any record of these debenture holders.

Choose the correct option from the following :

  1. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is correct, but Reason (R) is incorrect.
  4. Assertion (A) is incorrect, but Reason (R) is correct.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) Both Assertion(A) and Reason(R) are correct and Reason (R) is the correct explanation of Assertion (A).

Q51.2024 Main 67/4/1 · Q8(a)1 mark

Arnav Ltd. purchased assets worth ₹ 24,00,000. It issued 9% debentures of ₹ 100 each at a discount of 4% for payment of the purchase consideration. The number of debentures issued to vendor were :

  1. 24,000
  2. 25,000
  3. 30,000
  4. 28,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) 25,000

Q52.2024 Main 67/4/1 · Q8(b)1 mark

On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹ 100 each at a premium of 10% redeemable at a premium of 10%. Loss on issue of debentures will be :

  1. ₹ 2,00,000
  2. ₹ 1,30,000
  3. ₹ 1,00,000
  4. ₹ 80,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) ₹1,00,000

Q53.2024 Main 67/5/1 · Q6(a)1 mark

Aarav Ltd. issued 10,000, 9% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%. Loss on issue of debentures account will be debited by :

  1. ₹ 10,00,000
  2. ₹ 1,00,000
  3. ₹ 1,50,000
  4. ₹ 1,05,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) ₹1,00,000

Q54.2024 Main 67/5/1 · Q6(b)1 mark

Dove Ltd. issued 8,000, 11% debentures of ₹ 100 each at a premium of 5%. The total amount of interest on Debentures for one year will be :

  1. ₹ 80,000
  2. ₹ 92,400
  3. ₹ 88,000
  4. ₹ 880
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) ₹88,000

Q55.2024 Supp. 67/S/1 · Q13(b)1 mark

Those debentures where a charge is created on the assets of the company for the purpose of payment in case of default are known as :

  1. Secured Debentures
  2. Registered Debentures
  3. Specific Coupon Rate Debentures
  4. Redeemable Debentures
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) Secured Debentures

Q56.2024 Supp. 67/S/1 · Q14(a)1 mark

Nagar Ltd. issued 6,000, 11% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium. ‘Discount on issue of debentures’ and ‘Premium on redemption of debentures’ were accounted for through ‘Loss on issue of debentures account’. If the amount of ‘Loss on issue of debentures’ was ₹ 90,000, then the amount of premium on redemption of debentures was :

  1. ₹ 60,000
  2. ₹ 90,000
  3. ₹ 1,20,000
  4. ₹ 30,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) ₹30,000

Q57.2024 Supp. 67/S/1 · Q14(b)1 mark

On 1st April, 2022 Surya Ltd. issued 10,000, 12% Debentures of ₹ 100 each at a premium of 5%. The total amount of interest on debentures for the year ended 31st March, 2023 will be :

  1. ₹ 1,20,000
  2. ₹ 50,000
  3. ₹ 1,00,000
  4. ₹ 1,26,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) ₹1,20,000

Q58.2023 Main 67/1/1 · Q3(ii)1 mark

Maira Ltd. took over assets of ₹ 12,00,000 and liabilities of ₹ 4,00,000 of Subav Ltd. for an agreed purchase consideration of ₹ 9,00,000. The amount was payable by issue of 11% debentures of ₹ 100 each at 10% discount. The number of debentures issued will be :

  1. 9,000
  2. 10,000
  3. 8,000
  4. 11,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) 10,000

Q59.2023 Main 67/1/1 · Q7(i)1 mark

Rohit Limited issued 2,000, 9% Debentures of ₹ 100 each at ₹ 95 per debenture. 9% Debentures account will be credited by :

  1. ₹ 1,90,000
  2. ₹ 1,10,000
  3. ₹ 2,00,000
  4. ₹ 10,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) ₹ 2,00,000

Q60.2023 Main 67/1/1 · Q7(ii)1 mark

Which of the following statements is incorrect ?

  1. Interest on debentures is a charge and not an appropriation.
  2. Debentures can be issued at discount.
  3. Debentureholders do not have voting rights.
  4. Debentures cannot be converted into shares.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) Debentures cannot be converted into shares

Q61.2023 Main 67/2/1 · Q111 mark

Elite Ltd. issued 20,000, 9% Debentures of ₹100 each at a discount of 10%, redeemable at a premium. On issue of these debentures, 'Loss on issue of debentures account' was debited with ₹4,00,000. The premium on redemption of debentures is :

  1. ₹4,00,000
  2. ₹2,00,000
  3. ₹6,00,000
  4. ₹10,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) ₹2,00,000

Q62.2023 Main 67/3/1 · Q4(i)1 mark

Sunbeam Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%. The ‘Loss on Issue of Debentures Account’ will debited by :

  1. ₹ 3,00,000
  2. ₹ 2,00,000
  3. ₹ 1,00,000
  4. ₹ 22,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) ₹ 1,00,000

Q63.2023 Main 67/3/1 · Q4(ii)1 mark

Nargis Ltd. purchased assets of ₹ 8,00,000 and took over liabilities of ₹ 2,00,000 from Gauri Ltd. The payment was made by issue of 8% Debentures of ₹ 100 each at a premium of 20%. Number of debentures issued will be :

  1. 50,000
  2. 5,000
  3. 6,000
  4. 6,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) 5,000

Q64.2023 Main 67/3/1 · Q121 mark

Rhythm Ltd. took over assets of ₹ 30,00,000 and liabilities of ₹ 12,00,000 of Shyam Ltd. for a purchase consideration of ₹ 23,00,000. Excess value of purchase consideration of ₹ 5,00,000 over net assets will be :

  1. Debited to Goodwill Account
  2. Credited to Capital Reserve Account
  3. Credited to Vendors’ Account
  4. Debited to Capital Reserve Account
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) Debited to Goodwill Account

Q65.2023 Main 67/3/1 · Q151 mark

On 1st April, 2021, Narmada Ltd. issued 5,000, 8% Debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ending 31st March, 2022 will be :

  1. ₹ 25,000
  2. ₹ 20,000
  3. ₹ 50,000
  4. ₹ 40,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) ₹40,000

Q66.2023 Main 67/3/1 · Q161 mark

Sunbeam Limited issued 4,000, 6% Debentures of ₹ 100 each at ₹ 95 per debenture. 6% Debentures account will be credited by :

  1. ₹ 3,80,000
  2. ₹ 4,40,000
  3. ₹ 4,00,000
  4. ₹ 20,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) ₹4,00,000

Q67.2023 Main 67/4/1 · Q5(i)1 mark

Anuradha Ltd. issued 2,00,000, 7% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 5%. Discount on issue and premium on redemption were accounted for through ‘Loss on Issue of Debentures Account.’ On issue of debentures, ‘Loss on Issue of Debentures Account’ will be :

  1. Credited by ₹ 10,00,000
  2. Debited by ₹ 10,00,000
  3. Debited by ₹ 20,00,000
  4. Credited by ₹ 20,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) Debited by ₹20,00,000

Q68.2023 Main 67/4/1 · Q5(ii)1 mark

Diksha Ltd. issued 4,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. ‘Discount on Issue of Debentures’ and ‘Premium on Redemption of Debentures’ were accounted for through ‘Loss on Issue of Debentures Account’. If the amount of ‘Loss on Issue of Debentures Account’ was ₹ 60,000, then the amount of premium on redemption was :

  1. ₹ 60,000
  2. ₹ 40,000
  3. ₹ 20,000
  4. ₹ 80,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) ₹20,000

Q69.2023 Main 67/4/1 · Q101 mark

Sujata Ltd. issued 5,000, 7% Debentures of ₹ 100 each at a premium of 10%. According to the terms of issue, 40% of the amount was payable on application and the balance on allotment. The issue was fully subscribed and all amounts were duly received. The amounts received on application and allotment respectively were :

  1. ₹ 2,50,000 and ₹ 3,00,000
  2. ₹ 2,00,000 and ₹ 3,00,000
  3. ₹ 2,00,000 and ₹ 3,50,000
  4. ₹ 2,00,000 and ₹ 2,50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) ₹2,00,000 and ₹3,50,000

Q70.2023 Main 67/5/1 · Q6(a)1 mark

The debentures which are payable on the expiry of a specified period either in lump-sum or in instalments during the life time of the company are known as :

  1. Secured debentures
  2. Specific coupon rate debentures
  3. Redeemable debentures
  4. Convertible debentures
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) Redeemable Debentures

Q71.2023 Main 67/5/1 · Q6(b)1 mark

Which of the following statement is incorrect with respect to debentures ?

  1. Debentures can be issued for cash.
  2. Debenture cannot be issued at discount.
  3. Debentures can be issued as collateral security.
  4. Debentures can be issued at premium.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) Debentures cannot be issued at discount

Q72.2023 Main 67/5/1 · Q71 mark

Premier Auto Ltd. purchased assets of the value of ₹ 3,60,000 from Anand Ltd. and made the payment of purchase consideration by issuing 11% Debentures of ₹ 100 each at a discount of 10 %. The number of debentures issued by Premier Auto Ltd. were :

  1. 3,600
  2. 36,000
  3. 40,000
  4. 4,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) 4,000

Q73.2023 Supp. 67/C/1 · Q12(a)1 mark

K.C. Ltd. took over office furniture of ₹ 90,000, office equipment of ₹ 1,80,000 from J.C. Ltd. and its liabilities of ₹ 20,000 for a purchase consideration of ₹ 3,60,000. The payment to J.C. Ltd. was made by issue of 9% debentures of ₹ 50 each at a discount of 10%. The amount to be debited to ‘Discount on Issue of Debentures Account’ will be :

  1. ₹ 36,000
  2. ₹ 40,000
  3. ₹ 27,000
  4. ₹ 90,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) ₹40,000

Q74.2023 Supp. 67/C/1 · Q131 mark

Assertion (A) : Interest on bearer debentures is paid to a person who produces the interest coupon attached to such debentures.

Reason (R) : Bearer debentures are debentures which can be transferred by way of delivery and the company does not keep any record of the debenture holders.

Select the correct answer from the following :

  1. Assertion (A) is correct, but Reason (R) is wrong.
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).
  4. Both Assertion (A) and Reason (R) are wrong.
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A)

Q75.2023 Supp. 67/C/1 · Q141 mark

Read the following hypothetical situation and answer questions number 14 and 15 on the basis of given information.

On 1st April, 2022, Zaira Ltd. issued 5000, 8% Debentures of ₹ 100 each at 5% premium, redeemable at a premium of 10% after 3 years.

The total interest due on debentures for the year ending 31st March, 2023 will be :

  1. ₹ 40,000
  2. ₹ 25,000
  3. ₹ 50,000
  4. ₹ 75,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(A) ₹40,000

Q76.2023 Supp. 67/C/1 · Q151 mark

Read the following hypothetical situation and answer questions number 14 and 15 on the basis of given information.

On 1st April, 2022, Zaira Ltd. issued 5000, 8% Debentures of ₹ 100 each at 5% premium, redeemable at a premium of 10% after 3 years.

‘Loss on Issue of Debentures Account’ will be debited by which of the following amount ?

  1. ₹ 75,000
  2. ₹ 40,000
  3. ₹ 50,000
  4. ₹ 25,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) ₹50,000

Q77.SQP 2025-26 · Q4(a)1 mark

Pista Ltd. took over running business of Vista Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 7,50,000 and in consideration issued them 30,000, 9% debentures of ₹ 100 each at 5% discount and a cheque of ₹ 10,00,000. Determine the amount of Goodwill or Capital Reserve.

  1. Goodwill ₹ 9,00,000
  2. Capital Reserve ₹ 9,00,000
  3. Goodwill ₹ 1,00,000
  4. Capital Reserve ₹ 1,00,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) Goodwill ₹ 1,00,000

Q78.SQP 2025-26 · Q121 mark

From the given hypothetical situation, answer Q 12 – 14.

Floater Ltd. issued 60,000; 8% debentures of ₹ 100 each at 5% Discount and to be redeemed at 10% premium at the end of 5 years. On the date of issue, balance in Securities Premium was ₹ 8,00,000 and Statement of Profit Loss (Dr.) was ₹ 5,00,000.

Loss on Issue of Debentures is to be written off as ______ out of Securities Premium and ______) out of Statement of Profit and Loss.

  1. ₹ 4,50,000 ; ₹ 4,50,000
  2. ₹ 6,00,000 ; ₹ 3,00,000
  3. ₹ 8,00,000 ; ₹ 1,00,000
  4. ₹ 4,00,000 ; ₹ 5,00,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ 8,00,000 ; ₹ 1,00,000

Q79.SQP 2025-26 · Q131 mark

From the given hypothetical situation, answer Q 12 – 14.

Floater Ltd. issued 60,000; 8% debentures of ₹ 100 each at 5% Discount and to be redeemed at 10% premium at the end of 5 years. On the date of issue, balance in Securities Premium was ₹ 8,00,000 and Statement of Profit Loss (Dr.) was ₹ 5,00,000.

After writing off Loss on Issue of Debentures, _______ balance in Statement of Profit and Loss will be ________

  1. Debit ; ₹ 6,00,000
  2. Credit ; ₹ 6,00,000
  3. Debit ; ₹ 4,00,000
  4. Credit ; ₹ 4,00,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(A) Debit ; ₹ 6,00,000

Q80.SQP 2025-26 · Q141 mark

From the given hypothetical situation, answer Q 12 – 14.

Floater Ltd. issued 60,000; 8% debentures of ₹ 100 each at 5% Discount and to be redeemed at 10% premium at the end of 5 years. On the date of issue, balance in Securities Premium was ₹ 8,00,000 and Statement of Profit Loss (Dr.) was ₹ 5,00,000.

Premium on Redemption of Debentures account will have a balance of________ to be treated as ______ in the first year.

  1. ₹ 9,00,000 ; Non-Current Liabilities
  2. ₹ 9,00,000 ; Current Liabilities
  3. ₹ 6,00,000 ; Non-Current Liabilities
  4. ₹ 6,00,00 ; Current Liabilities
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ 6,00,000 ; Non-Current Liabilities

Q81.2026 Main 67/1/1 · Q19(b)3 marks

Neo Ltd. took over assets of ₹25,00,000 and liabilities of ₹12,00,000 of Madura Ltd. for a purchase consideration of ₹18,00,000. Neo Ltd. issued 11% debentures of ₹100 each at a discount of 10% in full satisfaction of the purchase consideration.

Pass necessary journal entries for the above transactions in the books of Neo Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Neo Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Assets A/c ……Dr.25,00,000
Goodwill A/c ……Dr.5,00,000
To Liabilities A/c12,00,000
To Madura Ltd.18,00,000
(Assets and liabilities of Madura Ltd. taken over) [1½ marks]
Madura Ltd. ……Dr.18,00,000
Discount on issue of debentures A/c ……Dr.2,00,000
To 11% Debentures A/c20,00,000
(Paid Madura Ltd. by issue of 20,000 debentures at a discount of 10%) [1½ marks]

Working Note:
Number of debentures = ₹18,00,000 / 90 = 20,000
(Note: No marks for Working Note)

Q82.2026 Main 67/2/1 · Q19(a)3 marks

Miraya Ltd. took over assets of ₹ 70,00,000 and liabilities of ₹ 12,00,000 of Vishal Ltd. for a purchase consideration of ₹ 64,00,000. The payment of purchase consideration was made by issue of 50,000, 11% debentures of ₹ 100 each at a premium of 20% to Vishal Ltd. and the balance through a cheque.

Pass necessary journal entries for the above transactions in the books of Miraya Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Miraya Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Liabilities A/c
To Vishal Ltd.
(Assets and liabilities of Vishal Ltd. taken over) [1]
70,00,000
6,00,000


12,00,000
64,00,000
Vishal Ltd. Dr.
To 11% Debentures A/c
To Securities Premium A/c
To Bank A/c
(Issue of 50,000 debentures of ₹ 100 each at a premium of 20% and balance paid through cheque) [2]
64,00,000
50,00,000
10,00,000
4,00,000
Alternatively, the following 2 entries may be passed in place of the above entry-
Vishal Ltd. Dr.
To 11% Debentures A/c
To Securities Premium A/c
(Issue of 50,000 debentures ₹ 100 each at a premium of 20%) [1]
60,00,000
50,00,000
10,00,000
Vishal Ltd. Dr.
To Bank A/c
(Balance amount to Vishal Ltd. paid through cheque) [1]
4,00,000
4,00,000

(= 3 marks)

Q83.2026 Main 67/2/1 · Q19(b)3 marks

Delta Ltd. invited applications for issuing 30,000, 9% debentures of ₹ 100 each at a premium of ₹ 30 per debenture. The full amount was payable on application. Applications were received for 40,000 debentures. Applications for 2,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on pro rata basis.

Pass the necessary journal entries for the above transactions in the books of Delta Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Books of Delta Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application & Allotment A/c
(Application money received on 40,000 debentures of ₹100 each at a premium of ₹30 per debenture) [1]
52,00,000
52,00,000
Debenture Application & Allotment A/c Dr.
To 9% Debentures A/c
To Securities Premium A/c
To Bank A/c
(Application money transferred to debentures A/c, securities premium A/c and balance refunded) [2]
52,00,000
30,00,000
9,00,000
13,00,000
Alternatively, the following 2 entries may be passed in place of the above entry-
Debenture Application & Allotment A/c Dr.
To 9% Debentures A/c
To Securities Premium A/c
(Application money transferred to debentures A/c and securities premium A/c) [1]
39,00,000
30,00,000
9,00,000
Debenture Application & Allotment A/c Dr.
To Bank A/c
(Excess application money refunded) [1]
13,00,000
13,00,000

(= 3 marks)

Q84.2026 Main 67/3/1 · Q19(a)3 marks

Oasis Ltd. purchased building worth ₹12,00,000, machinery worth ₹1,90,000 and furniture worth ₹3,00,000 from Nitara Ltd. and took over its liabilities of ₹90,000 for a purchase consideration of ₹15,30,000. Oasis Ltd. paid the purchase consideration by issuing 11% Debentures of ₹100 each at a discount of 10%.

Pass necessary journal entries in the books of Oasis Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Oasis Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Building A/c Dr.
Machinery A/c Dr.
Furniture A/c Dr.
To Liabilities A/c
To Nitara Ltd
To Capital Reserve A/c
(Assets & liabilities of Nitara Ltd. taken over)
12,00,000
1,90,000
3,00,000





90,000
15,30,000
70,000
1½
Nitara Ltd. Dr.
Discount on Issue of Debenture A/c Dr.
To 11% Debentures A/c
(17,000 Debentures of ₹100 each issued at a discount of 10%)
15,30,000
1,70,000


17,00,000
1½

(= 3 Marks)

Q85.2026 Main 67/3/1 · Q19(b)3 marks

On 1st April, 2025, Bharat Heavy Industries Ltd. purchased the running business of Mac Ltd. consisting of sundry assets of the book value of ₹20,00,000 and sundry liabilities of ₹8,00,000 for a purchase consideration of ₹15,00,000. The purchase consideration was paid by issuing 8,000, 9% Debentures of ₹100 each at a premium of 25% and the balance was paid by a bank draft in favour of Mac Ltd.

Pass necessary journal entries for the above transactions in the books of Bharat Heavy Industries Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Books of Bharat Heavy Industries Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2025
April 1
Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Liabilities A/c
To Mac Ltd.
(Acquiring running business of Mac Ltd.)
20,00,000
3,00,000



8,00,000
15,00,000
1
April 1Mac Ltd. Dr.
To 9% Debentures A/c
To Securities Premium A/c
To Bank A/c
(Purchase consideration paid by issue of 8,000 9% Debentures at a premium of 25% and the balance through a cheque)
15,00,000



8,00,000
2,00,000
5,00,000
2

Alternative (for the second entry)

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
April 1Mac Ltd. Dr.
To 9% Debentures A/c
To Securities Premium A/c
(Purchase consideration paid by issue of 8,000 9% Debentures at a premium of 25%)
10,00,000


8,00,000
2,00,000
1
April 1Mac Ltd. Dr.
To Bank A/c
(Purchase consideration paid through a cheque)
5,00,000

5,00,000
1

(= 3 Marks)

Q86.2026 Main 67/4/1 · Q20(b)3 marks

Almond Ltd. purchased a running business of Cashew Ltd. comprising of land and building ₹ 85,00,000, machinery ₹ 50,00,000 and sundry liabilities ₹ 10,00,000 for a purchase consideration of ₹ 1,00,00,000. Payment of ₹ 10,00,000 was made through a cheque and the remaining amount by issue of 11% Debentures of ₹ 100 each at a premium of 20%.

Pass necessary journal entries for the above transactions in the books of Almond Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Almond Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Land and Building A/c ... Dr.
Machinery A/c ... Dr.
To Sundry Liabilities A/c
To Cashew Ltd.
To Capital Reserve A/c
(Purchased business of Cashew Ltd.) (1)
85,00,000
50,00,000




10,00,000
1,00,00,000
25,00,000
Cashew Ltd. ... Dr.
To Bank A/c
To 11% Debentures A/c
To Securities Premium A/c
(Purchase consideration paid by cheque and 11% debentures issued at a premium of 20%) (2)
1,00,00,000



10,00,000
75,00,000
15,00,000
Or
Alternatively:
Cashew Ltd. ... Dr.
To Bank A/c
(Purchase consideration paid by cheque) (1)
10,00,000

10,00,000
Cashew Ltd. ... Dr.
To 11% Debentures A/c
To Securities Premium A/c
(Balance purchase consideration paid through issue of 11% debentures at a premium of 20%) (1)
90,00,000


75,00,000
15,00,000

1 + 2 = 3 marks

Q87.2026 Main 67/5/1 · Q19(a)3 marks

Kiara Ltd. purchased assets worth ₹12,40,000 and took over liabilities of ₹3,40,000 of Amrex Ltd. for a purchase consideration of ₹11,00,000. Kiara Ltd. paid half the amount by cheque. The balance amount was settled by issuing 9% debentures of ₹100 each at a premium of 10%.

Pass necessary journal entries for the above transactions in the books of Kiara Ltd.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Kiara Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Sundry Assets A/c ……Dr.12,40,000
Goodwill A/c ……Dr.2,00,000
To Sundry Liabilities A/c3,40,000
To Amrex Ltd11,00,000
(Assets and liabilities of Amrex Ltd. taken over) [1 mark]
Amrex Ltd. ……Dr.11,00,000
To Bank A/c5,50,000
To 9% Debentures A/c5,00,000
To Securities Premium A/c50,000
(Purchase consideration settled by cheque and issue of 5,000 9% debentures of ₹100 each at 10% premium) [2 marks]

Alternatively, following two entries may be passed instead of the above entry:

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Amrex Ltd. ……Dr.5,50,000
To Bank A/c5,50,000
(Paid to Amrex Ltd by cheque) [1 mark]
Amrex Ltd. ……Dr.5,50,000
To 9% Debentures A/c5,00,000
To Securities Premium A/c50,000
(Purchase consideration settled by issue of 5,000 9% debentures of ₹100 each at 10% premium) [1 mark]

(1 + 2 = 3 Marks)

Q88.2026 Main 67/5/1 · Q19(b)3 marks

On 1st April, 2024, Zara Ltd. issued 8,000, 9% Debentures of ₹100 each at a discount of 10%. The company had a balance of ₹50,000 in the Securities Premium Account on the same date.

Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Books of Zara Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Apr 1
Bank A/c ……Dr.7,20,000
To Debenture Application and Allotment A/c7,20,000
(Application money received on 8,000 9% debentures of ₹100 each issued at 10% discount) [1 mark]
,,Debenture Application and Allotment A/c ……Dr.7,20,000
Discount on issue of Debentures A/c ……Dr.80,000
To 9% Debentures A/c8,00,000
(8,000 9% debentures of ₹100 each, issued at 10% discount) [1 mark]
2025
Mar 31
Securities Premium A/c ……Dr.50,000
Statement of Profit and Loss ……Dr.30,000
To Discount on issue of Debentures A/c80,000
(Discount on issue of Debentures written off using securities premium and balance in statement of profit and loss) [1 mark]

(1 + 1 + 1 = 3 Marks)

Q89.2026 Supp. 67/7/1 · Q19(a)3 marks

Mallika Ltd. took over assets of ₹ 40,00,000 and liabilities of ₹ 4,00,000 of Pari Ltd. for a purchase consideration of ₹ 45,00,000. The payment of the purchase consideration was made by issue of 11% Debentures of ₹ 100 each at a discount of 10% to Pari Ltd.. Pass the necessary journal entries for the above transactions in the books of Mallika Ltd..

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Mallika Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Sundry Assets A/c  Dr.
Goodwill A/c  Dr.
    To Sundry Liabilities A/c
    To Pari Ltd.
(Assets and liabilities of Madura Ltd. taken over)
40,00,000
9,00,000



4,00,000
45,00,000
Pari Ltd.  Dr.
Discount on issue of debentures A/c  Dr.
    To 11% Debentures A/c
(Paid Pari Ltd. by issue of 50,000 debentures at a discount of 10%)
45,00,000
5,00,000


50,00,000

(1½ + 1½ = 3 marks)

Q90.2026 Supp. 67/7/1 · Q19(b)3 marks

Utsav Ltd. issued ₹ 50,00,000, 9% Debentures of ₹ 100 each on 1st April, 2024 at a premium of 10%. Give necessary journal entries in the books of Utsav Ltd. relating to debenture interest for the year ending 31st March, 2025, assuming that the interest was paid half-yearly on 30th September and 31st March every year.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Utsav Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024
Sep 30
Debenture Interest A/c  Dr.
    To Debentureholders’ A/c
(Amount of interest due on debentures)
2,25,000

2,25,000
2024
Sep 30
Debentureholders’ A/c  Dr.
    To Bank A/c
(Amount of interest paid to debentureholders)
2,25,000

2,25,000
2025
Mar 31
Debenture Interest A/c  Dr.
    To Debentureholders’ A/c
(Amount of interest due on debentures)
2,25,000

2,25,000
2025
Mar 31
Debentureholders’ A/c  Dr.
    To Bank A/c
(Amount of interest paid to debentureholders)
2,25,000

2,25,000
2025
Mar 31
Statement of Profit and Loss  Dr.
    To Debenture Interest A/c
(Debenture interest transferred to Statement of Profit and Loss)
4,50,000

4,50,000

(½ mark each for the first four entries; 1 mark for the last entry = 3 marks)

Q91.2025 Main 67/1/1 · Q19(a)3 marks

Delight Ltd. purchased assets worth ₹ 4,00,000 and took over liabilities of ₹ 70,000 of Marvel Ltd. for a purchase consideration of ₹ 3,60,000. Delight Ltd. paid the purchase consideration by issuing 11% debentures of ₹ 100 each at a premium of 20%.

Pass necessary journal entries in the books of Delight Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Delight Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Assets A/c ... Dr.
Goodwill A/c ... Dr.
To Liabilities A/c
To Marvel Ltd.
(Assets and liabilities of Marvel Ltd. taken over)
4,00,000
30,000



70,000
3,60,000
Marvel Ltd. ... Dr.
To 11% Debentures A/c
To Securities Premium A/c
(Issue of 3,000 debentures at a premium of 20%)
3,60,000


3,00,000
60,000

(1½ + 1½ = 3 marks)

Q92.2025 Main 67/1/1 · Q19(b)3 marks

Prime Ltd. took over assets of ₹ 6,00,000 and liabilities of ₹ 1,00,000 of Rabi Ltd. for a purchase consideration of ₹ 3,60,000. Prime Ltd. issued 10% debentures of ₹ 100 each at a discount of 10% in full satisfaction of purchase consideration.

Pass necessary journal entries in the books of Prime Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Books of Prime Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Assets A/c ... Dr.
To Liabilities A/c
To Rabi Ltd.
To Capital Reserve A/c
(Assets and liabilities of Rabi Ltd. taken over)
6,00,000



1,00,000
3,60,000
1,40,000
Rabi Ltd. ... Dr.
Discount on issue of debentures A/c ... Dr.
To 10% Debentures A/c
(Issue of 4,000 debentures at a discount of 10%)
3,60,000
40,000


4,00,000

(1½ + 1½ = 3 marks)

Q93.2025 Main 67/2/1 · Q19(a)3 marks

Apoorv Ltd. acquired building worth ₹ 15,50,000, Machinery worth ₹ 11,40,000 and Furniture worth ₹ 1,10,000 from Dhruv Ltd. and took over its liabilities of ₹ 2,00,000 for a purchase consideration of ₹ 25,00,000. Apoorv Ltd. paid the purchase consideration by issuing 12% debentures of ₹ 100 each at a premium of 25%.

Pass the necessary journal entries in the books of Apoorv Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Apoorv Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Building A/c Dr.15,50,000
Machinery A/c Dr.11.40,000
Furniture A/c Dr.1,10,000
    To Liabilities A/c2,00,000
    To Dhruv Ltd.25,00,000
    To Capital Reserve A/c1,00,000
(Assets and liabilities of Dhruv Ltd. taken over)
Dhruv Ltd. Dr.25,00,000
    To 12% Debentures A/c20,00,000
    To Securities Premium A/c5,00,000
(Issue of 20,000 debentures at a premium of 25%)

(Marks: 1½ + 1½ = 3 marks)

Machinery debit is printed as "11.40,000" in the marking scheme (i.e. ₹11,40,000).

Q94.2025 Main 67/2/1 · Q19(b)3 marks

Ajanta Ltd. purchased machinery worth ₹ 36,00,000 from Sujata Ltd. Ajanta Ltd. paid half the amount to Sujata Ltd. through a bank draft and the balance by issuing 8% debentures of ₹ 100 each at a discount of 10%.

Pass the necessary journal entries in the books of Ajanta Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Ajanta Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Machinery A/c Dr.36,00,000
    To Sujata Ltd.36,00,000
(Assets and liabilities of Rabi Ltd. taken over)
(ii)Sujata Ltd. Dr.18,00,000
    To Bank A/c18,00,000
(Half the amount paid to Sujata Ltd. through a bank draft)
(iii)Sujata Ltd. Dr.18,00,000
Discount on issue of debentures A/c Dr.2,00,000
    To 8% Debentures A/c20,00,000
(2,000 debentures issued at 10% discount to Sujata Ltd.)

(If an examinee has combined entry (i) and entry (ii) or entry (ii) and entry (iii), full credit is to be given)

(Marks: 1 + 1 + 1 = 3 marks)

The narration of entry (i) reads "Assets and liabilities of Rabi Ltd. taken over" in the marking scheme, as printed.

Q95.2025 Main 67/4/1 · Q19(a)3 marks

Mallark Ltd. purchased assets of book value ₹ 40,00,000 and took over liabilities of ₹ 5,00,000 from Naroha Ltd. It was agreed that the purchase consideration, ₹ 36,00,000 be paid by issuing 7% debentures of ₹ 100 each at a premium of 20%.

Record the journal entries in the books of Mallark Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Books of Mallark Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Assets A/c ... Dr.
Goodwill A/c ... Dr.
  To Liabilities A/c
  To Naroha Ltd.
(Business of Naroha Ltd. taken over at ₹ 36,00,000)
40,00,000
1,00,000


5,00,000
36,00,000
Naroha Ltd. ... Dr.
  To 7% Debentures A/c
  To Securities Premium A/c
(Issued 30,000, 7% Debentures of ₹ 100 each at a premium of 20%)
36,00,000
30,00,000
6,00,000

(1½) + (1½) = 3 marks

Q96.2025 Main 67/4/1 · Q19(b)3 marks

Sunlock Ltd. purchased assets of book value ₹ 50,00,000 and took over liabilities of ₹ 6,00,000 from Moondock Ltd. It paid the purchase consideration by issue of 46,000, 8% debentures of ₹ 100 each at a discount of 10%.

Record the journal entries in the books of Sunlock Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Books of Sunlock Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Assets A/c ... Dr.
  To Liabilities A/c
  To Moondock Ltd.
  To Capital Reserve A/c
(Business of Moondock Ltd. taken over at ₹ 41,40,000)
50,00,000
6,00,000
41,40,000
2,60,000
Moondock Ltd. ... Dr.
Discount on Issue of Debentures A/c ... Dr.
  To 8% Debentures A/c
(Issued 46,000, 8% Debentures of ₹ 100 each at a discount of 10%)
41,40,000
4,60,000


46,00,000

(1½) + (1½) = 3 marks

Q97.2025 Main 67/5/1 · Q19(a)3 marks

KM Ltd. acquired assets worth ₹ 7,20,000 and took over liabilities of ₹ 2,00,000 of LS Ltd. for a purchase consideration of ₹ 9,60,000. KM Ltd. issued 12% debentures of ₹ 100 each at a discount of 4% in favour of LS Ltd. for payment of purchase consideration.

Pass necessary journal entries for the above transactions in the books of KM Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Books of KM Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Liabilities A/c
To LS Ltd.
(Assets acquired and liabilities taken over from LS Ltd.)
7,20,000
4,40,000


2,00,000
9,60,000
(ii)LS Ltd. Dr.
Discount on issue of Debentures A/c Dr.
To 12% Debentures A/c
(Amount of purchase consideration settled through issue of 10,000, 12% Debentures at a discount of 4%)
9,60,000
40,000


10,00,000

(1½ + 1½ = 3 marks)

Q98.2025 Main 67/5/1 · Q19(b)3 marks

Varsha Ltd. invited applications for issuing 2,000, 12% debentures of ₹ 100 each at a premium of ₹ 30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.

Pass necessary journal entries for the above transactions in the books of Varsha Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Books of Varsha Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 5,000, 12% Debentures of ₹100 each issued at a premium of ₹30 per Debenture)
6,50,000
6,50,000
(ii)Debenture Application and Allotment A/c Dr.
To 12% Debentures A/c
To Securities Premium A/c
To Bank A/c
(Transfer of Debenture application money to Debentures account, Securities premium account and balance refunded)
6,50,000
2,00,000
60,000
3,90,000

(1 + 2 = 3 marks)

Q99.2025 Main 67/6/1 · Q19(a)3 marks

Sandhya Ltd. took over the assets of ₹50,00,000 and liabilities of ₹7,00,000 of Guman Ltd. for purchase consideration of ₹40,00,000. The payment of purchase consideration was made by issue of 9% debentures of ₹100 each at a premium of 25% to Guman Ltd.

Pass necessary journal entries for the above transactions in the books of Sandhya Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of Sandhya Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Sundry Assets A/c ... Dr.
To Sundry Liabilities A/c
To Guman Ltd.
To Capital Reserve A/c
(Assets and liabilities of Guman Ltd. taken over)
50,00,000
7,00,000
40,00,000
3,00,000
1
Guman Ltd. ... Dr.
To 9% Debentures A/c
To Securities Premium A/c
(Purchase consideration settled by issue of 32,000 9% debentures of ₹100 each at 25% premium)
40,00,000
32,00,000
8,00,000
2

(1 + 2 = 3 marks)

Q100.2025 Main 67/6/1 · Q19(b)3 marks

Pass necessary journal entries in the books of RR Ltd. for issue of debentures in the following cases :

  1. Issued 9,000, 9% debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years.
  2. Issued 5,000, 11% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

In the books of RR Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money received on 9000 9% debentures of ₹100 each issued at 10% discount)
8,10,000
8,10,000
½
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(9,000 9% debentures of ₹100 each, issued at 10% discount, redeemable at 5% premium)
8,10,000
1,35,000


9,00,000
45,000
1
OR
Debenture Application and Allotment A/c ... Dr.
Discount on issue of Debentures A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(9,000 9% debentures of ₹100 each, issued at 10% discount, redeemable at 5% premium)

8,10,000
90,000
45,000




9,00,000
45,000
(ii)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money received on 5,000 11% debentures of ₹100 each issued at 10% premium)
5,50,000
5,50,000
½
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 11% Debentures A/c
To Securities Premium A/c
To Premium on redemption of Debentures A/c
(5,000 11% debentures of ₹100 each, issued at 10% premium, redeemable at 5% premium)
5,50,000
25,000


5,00,000
50,000
25,000
1

(½ + 1 + ½ + 1 = 3 marks)

Q101.2025 Main 67/7/1 · Q19(a)3 marks

On 1st April, 2024, Varsha Ltd. purchased from Rama Ltd., furniture at ₹12,00,000 and machinery at ₹20,00,000. It also took over its liabilities amounting to ₹3,00,000. The purchase consideration of ₹35,00,000 was paid by issuing a bank draft of ₹2,00,000 and the balance by issue of 11% Debentures of ₹100 each, at a premium of 10%.

Pass necessary journal entries for the above transactions in the books of Varsha Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of Varsha Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024 April 1Furniture A/c ... Dr.
Machinery A/c ... Dr.
Goodwill A/c ... Dr.
To Sundry Liabilities A/c
To Rama Ltd.
(Assets acquired and liabilities taken over from Rama Ltd.)
12,00,000
20,00,000
6,00,000




3,00,000
35,00,000
,,Rama Ltd. ... Dr.
To Bank A/c
To 11% Debentures A/c
To Securities Premium A/c
(Purchase consideration settled by issuing a bank draft & 30,000 11% debentures at a premium of 4%)
35,00,000



2,00,000
30,00,000
3,00,000

(1½ + 1½ = 3 Marks)

Note: If the examinee has passed separate entries for issue of bank draft and debentures, full credit to be given.

Working Note:
No. of debentures issued = (Purchase Consideration) / Issue Price
= 33,00,000 / 110 = 30,000 debentures

Q102.2025 Main 67/7/1 · Q19(b)3 marks

Roshni Ltd. purchased machinery worth ₹1,98,000 from Prakash Ltd. The purchase consideration was paid by issue of 8% debentures of ₹100 each at 10% discount.

  1. Calculate the number of debentures issued.
  2. Pass necessary journal entries for purchase of machinery and issue of debentures.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(i) Calculation of the number of debentures issued:
Number of debentures issued = Purchase Consideration / Issue Price
= 1,98,000 / 90
= 2,200 debentures ……… 1

(ii) In the books of Roshni Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Machinery A/c ... Dr.
To Prakash Ltd.
(Machinery purchased from Prakash Ltd.)
1,98,000

1,98,000
Prakash Ltd. ... Dr.
Discount on Issue of Debentures A/c ... Dr.
To 8% Debentures A/c
(Purchase consideration settled by issuing 2,200, 8% debentures at 10% discount)
1,98,000
22,000


2,20,000

(1 + 1 × 2 = 3 Marks)

Q103.2025 Supp. 67/S/1 · Q19(b)3 marks

Astha Ltd. took over assets of ₹ 20,00,000 and took over liabilities of ₹ 1,00,000 of Nabha Ltd. for a purchase consideration of ₹ 18,00,000. Astha Ltd. paid half of the amount of purchase consideration through a bank draft and the balance amount was settled by issuing 12% Debentures of ₹ 100 each at a discount of 10% in favour of Nabha Ltd.

Pass necessary journal entries for the above transactions in the books of Astha Ltd.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Books of Astha Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Sundry Assets A/c ... Dr.20,00,000
    To Sundry Liabilities A/c1,00,000
    To Nabha Ltd.18,00,000
    To Capital Reserve (Bal. fig.)1,00,000
(Assets and liabilities of Nabha Ltd. taken over) [1 mark]
Nabha Ltd. ... Dr.18,00,000
Discount on issue of debentures A/c ... Dr.1,00,000
    To Bank A/c9,00,000
    To 12% Debentures A/c10,00,000
(Issue of 10,000 debentures of ₹100 at a discount of 10%) [2 marks]

Note:- If the examinee has passed separate entries for issue of bank draft and debentures, full credit is to be given.

Working Note:
No. of debentures issued = (Purchase Consideration) / Issue Price
= ₹9,00,000/ ₹90 = 10,000 debentures

1 + 2 = 3 marks

Q104.2024 Main 67/1/1 · Q19(a)3 marks

Sunrise Ltd. acquired assets of ₹3,60,000 and took over creditors of ₹1,00,000 from Moonlight Ltd. for an agreed purchase consideration of ₹4,80,000. Sunrise Ltd. issued 9% Debentures of ₹100 each at a discount of 4% in satisfaction of the purchase consideration.

Pass necessary journal entries in the books of Sunrise Ltd. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the books of Sunrise Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Sundry Assets A/c ... Dr.
Goodwill A/c ... Dr.
  To Creditors A/c
  To Moonlight Ltd.
(Assets acquired and liabilities taken over from Moonlight Ltd) (1½)
3,60,000
2,20,000


1,00,000
4,80,000
Moonlight Ltd. ... Dr.
Discount on Issue of Debentures A/c ... Dr.
  To 9% Debentures A/c
(Purchase consideration settled by issuing 5,000 9% debentures at 4% discount) (1)
4,80,000
20,000


5,00,000

Working Note: (½)
No. of debentures = (Purchase Consideration) / Issue Price
= 4,80,000/96
= 5,000

= 3 marks

Q105.2024 Main 67/1/1 · Q19(b)3 marks

Grapple Ltd. took over assets of ₹25,00,000 and liabilities of ₹5,00,000 from Allore Ltd. for an agreed purchase consideration of ₹18,00,000. Grapple Ltd. issued 11% Debentures of ₹100 each at 20% premium in satisfaction of the purchase consideration.

Pass necessary journal entries in the books of Grapple Ltd. Show your workings clearly.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

In the books of Grapple Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Sundry Assets A/c ... Dr.
  To Liabilities A/c
  To Allore Ltd.
  To Capital Reserve A/c
(Assets acquired and liabilities taken over from Allore Ltd.) (1½)
25,00,000
5,00,000
18,00,000
2,00,000
Allore Ltd. ... Dr.
  To 11% Debentures A/c
  To Securities Premium A/c
(Purchase consideration settled by issuing 15,000 11% debentures at 20% premium) (1)
18,00,000
15,00,000
3,00,000

Working Note: (½)
No. of debentures = (Purchase Consideration) / Issue Price
= 18,00,000/120
= 15,000

= 3 marks

Q106.2024 Main 67/2/1 · Q19(a)3 marks

Priti Ltd. purchased assets worth ₹ 5,40,000 and took over liabilities of ₹ 1,20,000 of Payal Ltd. for a purchase consideration of ₹ 5,28,000. Priti Ltd. paid half the amount by cheque and the balance was settled by issuing 10% Debentures of ₹ 100 each at a premium of 10%.

Pass necessary journal entries for the above transactions in the books of Priti Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Priti Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Liabilities A/c
To Payal Ltd.
(Assets acquired and liabilities taken over from Payal Ltd.) [1]
5,40,000
1,08,000



1,20,000
5,28,000
(ii) Payal Ltd. Dr.
To Bank A/c
To 10% Debentures A/c
To Securities Premium A/c
(Amount of purchase consideration settled through issue of cheque and 2,400, 10% Debentures at a premium of 10%) [2]
5,28,000



2,64,000
2,40,000
24,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(ii)(a) Payal Ltd. Dr.
To Bank A/c
(Amount of purchase consideration paid by cheque)
2,64,000

2,64,000
(ii)(b) Payal Ltd. Dr.
To 10% Debentures A/c
To Securities Premium A/c
(Balance amount of purchase consideration settled through issue of 2,400, 10% Debentures at a premium of 10%)
2,64,000


2,40,000
24,000

= 3 marks

Q107.2024 Main 67/2/1 · Q19(b)3 marks

Dhatu Ltd. invited applications for issuing 4,000, 11% Debentures of ₹ 100 each at a premium of ₹ 50 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.

Pass necessary journal entries for the above transactions in the books of Dhatu Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Books of Dhatu Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i) Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 5000, 11% Debentures of ₹100 each issued at a premium of ₹50 per Debenture) [1]
7,50,000

7,50,000
(ii) Debenture Application and Allotment A/c Dr.
To 11% Debentures A/c
To Securities Premium A/c
To Bank A/c
(Transfer of Debenture application money to Debentures account, Securities premium account and balance refunded) [2]
7,50,000



4,00,000
2,00,000
1,50,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(ii)(a) Debenture Application and Allotment A/c Dr.
To Bank A/c
(Refund of excess application money)
1,50,000

1,50,000
(ii)(b) Debenture Application and Allotment A/c Dr.
To 11% Debentures A/c
To Securities Premium A/c
(Transfer of Debenture application money)
6,00,000


4,00,000
2,00,000

= 3 marks

Q108.2024 Main 67/3/1 · Q19(a)3 marks

Sumi Ltd. acquired assets of ₹ 8,00,000 and took over sundry creditors of ₹ 2,00,000 from Pandora Ltd. for a purchase consideration of ₹ 9,00,000. The payment was made by issuing a cheque of ₹ 4,60,000 and remaining by issue of 9% Debentures of ₹ 100 each at a premium of 10%.

Pass necessary journal entries for the above transactions in the books of Sumi Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Sumi Ltd.

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i) Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Creditors A/c
To Pandora Ltd.
(Business of Pandora Ltd. taken over at ₹ 9,00,000.)
8,00,000
3,00,000


2,00,000
9,00,000
(1)
(ii) Pandora Ltd. Dr.
To Bank A/c
To 9% Debentures A/c
To Securities Premium A/c
(Paid Pandora Ltd. ₹ 4,60,000 by cheque and issued 4,000, 9% Debentures of ₹ 100 each at a premium of 10%.)
9,00,000
4,60,000
4,00,000
40,000
(2)

Alternative

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(ii) a. Pandora Ltd. Dr.
To Bank A/c
(Paid Pandora Ltd. ₹ 4,60,000 by Cheque.)
4,60,000
4,60,000
(ii) b. Pandora Ltd. Dr.
To 9% Debentures A/c
To Securities Premium A/c
(4,000, 9% Debentures of ₹ 100 each issued at a premium of 10%.)
4,40,000
4,00,000
40,000

= 3 marks

Q109.2024 Main 67/3/1 · Q19(b)3 marks

Gundola Ltd. took over assets of ₹ 9,00,000 and liabilities of ₹ 3,00,000 from AK Ltd. for an agreed purchase consideration of ₹ 14,00,000. The payment was made through a bank draft of ₹ 5,00,000 and the remaining by issue of 8% Debentures at a discount of 10%.

Record necessary journal entries in the books of Gundola Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Gundola Ltd.

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i) Sundry Assets A/c Dr.
Goodwill A/c Dr.
To Sundry Liabilities A/c
To AK Ltd.
(Business of AK Ltd. taken over at ₹ 14,00,000.)
9,00,000
8,00,000


3,00,000
14,00,000
(1)
(ii) AK Ltd. Dr.
Discount on Issue of Debentures A/c Dr.
To Bank A/c
To 8% Debentures A/c
(Paid AK Ltd. ₹ 5,00,000 through a bank draft and issued 10,000 8% Debentures of ₹ 100 each at a discount of 10%.)
14,00,000
1,00,000


5,00,000
10,00,000
(2)

Alternative

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(ii) a. AK Ltd. Dr.
To Bank A/c
(Paid AK Ltd. ₹ 5,00,000 by cheque.)
5,00,000
5,00,000
(ii) b. AK Ltd. Dr.
Discount on Issue of Debentures A/c Dr.
To 8% Debentures A/c
(10,000, 8% Debentures of ₹ 100 each issued at a discount of 10%.)
9,00,000
1,00,000


10,00,000

= 3 marks

Q110.2024 Main 67/4/1 · Q18(a)3 marks

Mahesh Ltd. purchased Plant and Machinery from Ish Ltd. for ₹ 4,50,000. ₹ 50,000 was paid by cheque to Ish Ltd. and the balance by issuing 6% debentures of ₹ 100 each at a discount of 20%.

Pass the necessary Journal Entries for the above transactions in the books of Mahesh Ltd.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Mahesh Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)
Plant and Machinery A/c ... Dr
To Ish Ltd.
(Plant & Machinery purchased) (1)
4,50,000
4,50,000
(ii)
Ish Ltd. ... Dr
Discount on issue of Debentures A/c ... Dr
To Bank A/c
To 6% Debentures A/c
(Paid ₹50,000 by cheque & 5,000 debentures issued at discount for consideration other than cash.) (2)

4,50,000
1,00,000



50,000
5,00,000
Alternatively
(ii) (a)
Ish Ltd. ... Dr
To Bank A/c
(Partial amount paid by cheque to Ish Ltd.)

50,000


50,000
(ii) (b)
Ish Ltd. ... Dr
Discount on issue of Debentures A/c ... Dr
To 6% Debentures A/c
(5,000 debentures issued at discount for consideration other than cash.)

4,00,000
1,00,000



5,00,000

(= 3 Marks)

Q111.2024 Main 67/5/1 · Q19(b)3 marks

On 1st October, 2022 Ninza Ltd. issued 4,000, 8% Debentures of ₹ 100 each at a discount of 10%. The company had a balance of ₹ 50,000 in Securities Premium Account on the same date.

Pass necessary Journal entries for issue of debentures and to write off discount on issue of debentures.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Ninza Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2022
Oct.1
Bank A/c Dr.3,60,0001
To Debenture Application and Allotment A/c3,60,000
(Application money received on 4,000, 8% Debentures of ₹100 each)
”Debenture Application and Allotment A/c Dr.3,60,0001
Discount on issue of debentures A/c Dr.40,000
To 8% Debentures A/c4,00,000
(Allotment of 4,000, 8% Debentures of ₹100 each at a discount of 10%)
2023
Mar.31
Securities Premium A/c Dr.40,0001
To Discount on issue of debentures A/c40,000
(Discount on issue of debentures written off from Securities Premium account)

(= 3 marks)

Q112.2024 Supp. 67/S/1 · Q19(a)3 marks

Sheetal Ltd. purchased building worth ₹ 2,50,000, plant and machinery worth ₹ 2,00,000, furniture worth ₹ 40,000 and took over liabilities of ₹ 30,000 from Poonam Ltd. for a purchase consideration of ₹ 4,40,000. The purchase consideration was paid by issuing 12% Debentures of ₹ 100 each at a premium of 10%.

Pass the necessary journal entries in books of Sheetal Ltd. to record the above transactions.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Sheetal Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Building A/c Dr.
Plant and Machinery A/c Dr.
Furniture A/c Dr.
    To Sundry Liabilities A/c
    To Poonam Ltd.
    To Capital Reserve A/c
(Assets and liabilities taken over)
2,50,000
2,00,000
40,000





30,000
4,40,000
20,000
1½
Poonam Ltd. Dr.
    To 12% Debentures A/c
    To Securities Premium A/c
(4,000 12% debentures issued at premium for consideration other than cash)
4,40,000


4,00,000
40,000
1½

=3 Marks

Q113.2024 Supp. 67/S/1 · Q19(b)3 marks

On 1st April, 2023, Simple Ltd. took over assets of ₹ 5,00,000 and liabilities of ₹ 1,00,000 from Temur Ltd. at an agreed value of ₹ 16,00,000. Simple Ltd. paid the amount to Temur Ltd. as follows :

  1. Issued a bank draft of ₹ 1,00,000.
  2. Issued 8% Debentures of ₹ 100 each at a premium of 50% in satisfaction of the balance amount of purchase consideration.

Pass the necessary journal entries in the books of Simple Ltd. to record the above transactions.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Books of Simple Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2023
April 1
Sundry Assets A/c Dr.
Goodwill A/c Dr.
    To Sundry Liabilities A/c
    To Temur Ltd.
(Assets and liabilities taken over)
5,00,000
12,00,000



1,00,000
16,00,000
1½
2023
April 1
Temur Ltd. Dr.
    To Bank A/c
    To 8% Debentures A/c
    To Securities Premium A/c
(10,000 8% debentures issued at premium for consideration other than cash)
16,00,000



1,00,000
10,00,000
5,00,000
1½

=3 Marks

Q114.2023 Main 67/1/1 · Q19(b)3 marks

Shovan Limited took over the assets of ₹ 60,00,000 and liabilities of ₹ 10,00,000 from Swami Limited for an agreed purchase consideration of ₹ 45,00,000. The amount was payable by issuing 10% debentures of ₹ 100 each at 25% premium.

Pass necessary journal entries for the above transactions in the books of Shovan Limited.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Books of Shovan Limited — Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Sundry Assets A/c Dr.6,00,0001½
    To Sundry Liabilities A/c10,00,000
    To Swami Ltd.45,00,000
    To Capital Reserve A/c5,00,000
(Purchased assets and took over liabilities from Swami Ltd.)
Swami Ltd. Dr.45,00,0001½
    To 10% Debentures A/c36,00,000
    To Securities Premium/ Securities Premium Reserve A/c9,00,000
(Issued 36,000 10% debentures to Swami Ltd at premium of 25%)

(1½ + 1½ = 3 marks)

The marking scheme prints the debit to Sundry Assets A/c as ₹ 6,00,000; the question gives assets of ₹ 60,00,000 (the entry balances only at 60,00,000).

Q115.2023 Main 67/2/1 · Q17(a)3 marks

Sinco Ltd. purchased assets of the book value of ₹1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10% debentures of ₹100 each.

Record the necessary journal entries in the books of Sinco Ltd. assuming that the debentures have been issued :

(i) At a discount of 10%. (ii) At a premium of 10%.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Sinco Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Assets A/c Dr
To Dixon Ltd.
(Assets purchased from Dixon Ltd)
1,98,0001,98,000
(i) Dixon Ltd. Dr
Discount on issue of debentures A/c Dr
To 10% Debentures A/c
(Allotment of 2,200 debentures of ₹100 each at a discount of 10% as purchase consideration)
1,98,000
22,000


2,20,000
(ii) Dixon Ltd. Dr
To 10% Debentures A/c
To Securities Premium A/c/ Securities Premium Reserve A/c
(Allotment of 1,800 debentures of ₹100 each at a premium of 10% as purchase consideration)
1,98,000
1,80,000
18,000

(1×3 = 3 Marks)

Q116.2023 Main 67/2/1 · Q17(b)3 marks

On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded. On 31.3.2022 the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013. On that date the company had ₹10,000 in its securities premium reserve account.

Pass necessary journal entries for the above transactions in the books of the company.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Books of Y Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
April 1
Bank A/c Dr
To Debenture Application and Allotment A/c
(Receipt of application money on 12,000 debentures)
11,28,000
11,28,000
April 1Debenture Application and Allotment A/c Dr
Discount on issue of debentures A/c Dr
To 9% Debentures A/c
To Bank A/c
(Debenture Application and Allotment money transferred to 9% Debenture A/c, Excess application money refunded on rejected application)
11,28,000
60,000


10,00,000
1,88,000
2022
March 31
Securities Premium A/c/ Securities Premium Reserve A/c Dr
Statement of Profit and Loss Dr
To Discount on issue of debentures A/c
(Discount on issue of debentures written off)
10,000
50,000


60,000

(1×3 = 3 Marks)

Q117.2023 Main 67/3/1 · Q18(a)3 marks

M Ltd. issued 10,000, 8% Debentures of ₹ 100 each at 6% discount. The amount was payable as ₹ 60 on application and the balance on allotment. All money was duly received.

Pass necessary journal entries in the books of M Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Books of M Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Bank A/c ... Dr.
  To Debenture Application A/c
(Application money received on 10,000 8% Debentures) (½)
6,00,000
6,00,000
(ii) Debenture Application A/c ... Dr.
  To 8% Debentures A/c
(Debenture Application money transferred to 8% Debenture A/c) (1)
6,00,000
6,00,000
(iii) Debenture Allotment A/c ... Dr.
Discount / Loss on Issue of Debentures A/c ... Dr.
  To 8% Debenture A/c
(Allotment money due on 10,000 debentures) (1)
3,40,000
60,000


4,00,000
(iv) Bank A/c ... Dr.
  To Debenture Allotment A/c
(Allotment money received) (½)
3,40,000
3,40,000

= 3 marks

Q118.2023 Main 67/4/1 · Q19(a)3 marks

On 1st April, 2021, Hitesh Ltd. took over assets of ₹ 8,00,000 and liabilities of ₹ 40,000 of Pranjal Ltd. at an agreed value of ₹ 8,30,000. Hitesh Ltd. paid the amount to Pranjal Ltd. as follows :

  1. Gave an acceptance payable after 3 months for ₹ 2,00,000, and
  2. Issued 10% Debentures of ₹ 100 each at a discount of 10% to Pranjal Ltd. in satisfaction of the balance amount of purchase consideration.

Pass the necessary journal entries to record the above transaction in the books of Hitesh Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Hitesh Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2021
April 1
Sundry Assets A/c   Dr.
Goodwill A/c   Dr.
   To Sundry Liabilities A/c
   To Pranjal Ltd.
(Assets acquired and Liabilities taken over, from Pranjal Ltd.)
8,00,000
70,000



40,000
8,30,000
2021
April 1
Pranjal Ltd.   Dr.
   To Bills Payable A/c
(Bills Payable accepted for part payment of purchase consideration)
2,00,000

2,00,000
2021
April 1
Pranjal Ltd.   Dr.
Discount on issue of debentures A/c   Dr.
   To 10% Debentures A/c
(Balance amount of purchase consideration settled through issue of 7,000, 10% debentures at a discount of 10%)
6,30,000
70,000


7,00,000

1x3 =3 marks

Working note:
No. of debentures issued= 6,30,000/90 = 7,000 debentures

Q119.2023 Main 67/5/1 · Q203 marks

Vimal Ltd. purchased assets worth ₹ 5,00,000 and took over liabilities of ₹ 1,00,000 of Kapil Ltd. for a purchase consideration of ₹ 4,50,000. Vimal Ltd. paid one third of the amount by cheque and balance was settled by issuing 11% debentures of ₹ 100 each at a premium of 20%.

Pass necessary journal entries in the books of Vimal Ltd. for the above transactions.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Vimal Ltd

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Assets A/c Dr.5,00,000
Goodwill A/c Dr.50,000
To Liabilities A/c1,00,000
To Kapil Ltd.4,50,000
(business of Kapil Ltd. taken over at ₹4,50,000)
Kapil Ltd Dr.1,50,000
To Bank A/c1,50,000
(paid Kapil Ltd ₹1,50,000 by cheque)
Kapil Ltd Dr.3,00,000
To 11% Debentures A/c2,50,000
To Securities Premium A/c or Securities Premium Reserve A/c50,000
(2,500 debentures of ₹100 each issued at a premium of 20%)

(1 × 3 = 3 marks)

Q120.2023 Supp. 67/C/1 · Q17(a)3 marks

On 01.04.2021, Aman Ltd. purchased from Kamal Ltd. Machinery ₹ 5,00,000, Furniture ₹ 3,00,000 and Land and Building ₹ 40,00,000. It also took over the sundry creditors of Kamal Ltd. of ₹ 8,00,000. The purchase consideration was ₹ 36,00,000. Payment to Kamal Ltd. was made by issue of 9% Debentures of ₹ 100 each at a discount of 10%. On 31.03.2022, the company decided to write off ‘Discount on Issue of Debentures Account’ according to the provisions of Companies Act, 2013.

Pass necessary journal entries for the above transactions in the books of Aman Ltd.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of Aman Ltd.

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
April 1
Machinery A/c Dr.5,00,000
Furniture A/c Dr.3,00,000
Land and Building A/c Dr.40,00,000
To Sundry Creditors A/c8,00,000
To Capital Reserve A/c4,00,000
To Kamal Ltd. A/c36,00,000
(Being assets and liabilities acquired from Kamal Ltd.) [1]
Kamal Ltd. A/c Dr.36,00,000
Discount/Loss on issue of Debentures A/c Dr.4,00,000
To 9% Debentures A/c40,00,000
(Being Kamal Ltd. paid by issue of debentures at a discount) [1]
2022
Mar 31
Statement of Profit and Loss Dr.4,00,000
To Discount/Loss on issue of Debentures A/c4,00,000
(Being Discount/Loss on issue of Debentures A/c written off) [1]

= 3 marks

Q121.2023 Supp. 67/C/1 · Q17(b)3 marks

On 01.04.2021, Bain Ltd. purchased from Cayres Ltd., Machinery at ₹ 17,00,000 and Land and Building at ₹ 40,00,000. It also took over its liabilities amounting to ₹ 7,00,000. The purchase consideration of ₹ 60,00,000 was paid as follows : ₹ 5,00,000 through a cheque and the balance by issue of 9% debentures of ₹ 100 each at a premium of 10%.

Pass necessary journal entries for the above transactions in the books of Bain Ltd.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of Bain Ltd.

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
April 1
Machinery A/c Dr.17,00,000
Land and Building A/c Dr.40,00,000
Goodwill A/c Dr.10,00,000
To Liabilities A/c7,00,000
To Cayres Ltd. A/c60,00,000
(Being assets and liabilities acquired from Cayres Ltd.) [1]
Cayres Ltd. A/c Dr.5,00,000
To Bank A/c5,00,000
(Being Kamal Ltd. paid partly by a cheque) [1]
Cayres Ltd. A/c Dr.55,00,000
To 9% Debentures A/c50,00,000
To Securities Premium A/c/ Securities Premium Reserve A/c5,00,000
(Being balance amount of Cayres Ltd. paid by issue of debentures at a premium) [1]

= 3 marks

The narration of the second entry reads “Being Kamal Ltd. paid partly by a cheque” in the marking scheme (as printed).

Q122.2022 Main 67/1/1 · Q6(a)3 marks

Surya Ltd. purchased machinery from Mohan Equipment Ltd. The company paid the vendors by issue of 9% debentures and the balance through an acceptance in their favour payable after three months. The accountant of the company while Journalising the above mentioned transactions left some items blank. Fill in the blanks in the given below Journal of Surya Ltd. :

Journal of Surya Ltd.

DateParticularsLFDebit Amount ₹Credit Amount ₹
2021
Jan. 1
Machinery A/c ... Dr.
To ________
(Purchased Machinery for ₹ 12,50,000 from Mohan Equipment Ltd.)
_____
_____
" 1Mohan Equipment Ltd. A/c ... Dr.
To ________
To Securities Premium Reserve
(Issued 8000, 9% Debentures of ₹ 100 each at a premium of 25%).
_____
_____
_____
" 1________ ... Dr.
To ________
(________)
_____
_____
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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Journal of Surya Ltd.

DateParticularsL.F.Dr (₹)Cr (₹)
1Machinery A/c ... Dr.
To Mohan Equipment Ltd. A/c
(Purchased machinery for ₹ 12,50,000 from Mohan Equipment Ltd.)
12,50,000
12,50,000
2Mohan Equipment Ltd. A/c ... Dr.
To 9% Debentures A/c
To Securities Premium Reserve A/c
(Issued 8000, 9% Debentures of ₹ 100 each at a premium of 25%)
10,00,000
8,00,000
2,00,000
3Mohan Equipment Ltd. A/c ... Dr.
To Bills Payable A/c
(Acceptance given to Mohan Equipment Ltd.)
2,50,000
2,50,000

(1 + 1 + 1 = 3)

Q123.2022 Main 67/1/1 · Q6(b)3 marks

Sujata Ltd. invited applications for issuing 50,000, 9% debenture of ₹ 100 each at a discount of 10% redeemable at par after five years. The debentures were fully subscribed and all money was duly received. The company had a balance of ₹ 3,00,000 in 'Securities Premium Reserve' which it decided to use for writing off the discount/loss on issue of debentures. It also decided to write off the remaining discount/loss on issue of debentures in the first year.

Pass the Journal entries for issue of debentures and for writing off discount/loss on issue of debentures.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Journal of Sujata Ltd.

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To 9% Debenture Application and Allotment A/c
(Debenture application money received)
45,00,000
45,00,000
9% Debenture Application and Allotment A/c ... Dr.
Discount/Loss on issue of Debenture A/c ... Dr.
To 9% Debentures A/c
(Issue of 50,000, 9% Debenture of ₹ 100 each @ 10% discount)
45,00,000
5,00,000


50,00,000
Securities Premium Reserve A/c ... Dr.
Statement of Profit & Loss A/c ... Dr.
To Discount/ Loss on issue of Debenture A/c
(Discount on issue of debentures written off)
3,00,000
2,00,000


5,00,000

(1 + 1 + 1 = 3)

Q124.2022 Main 67/2/1 · Q6(a)3 marks

Khandelwal Ltd. took over assets of Sharma Ltd. of ₹ 25,00,000 and liabilities amounting to ₹ 7,80,000 for a purchase consideration of ₹ 27,00,000. The payment to Sharma Ltd. was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%.

Pass the necessary journal entries for the above transactions in the books of Khandelwal Ltd.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Khandelwal Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Sundry assets A/c Dr.25,00,000
Goodwill A/c Dr.9,80,000
To Sundry liabilities A/c7,80,000
To Sharma Ltd.27,00,000
(Acquired Assets and Liabilities of Sharma Ltd.) (1½)
Sharma Ltd. (30,000×90) Dr.27,00,000
Loss /Discount on issue of Debentures A/c (30,000×10) Dr.3,00,000
To 10% Debentures A/c30,00,000
(Issued 10% debentures in favour of Sharma Ltd. and recorded loss/ discount on issue of debentures) (1½)

= 3 marks

Number of debentures to be issued = 27,00,000 / (100 − 10) = 27,00,000 / 90 = 30,000 debentures

Q125.2022 Main 67/2/1 · Q6(b)3 marks

Explain the meaning of issue of debentures as collateral security with the help of an example.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Collateral security may be defined as a secondary security besides the primary security when a company obtains loan from a bank or any other financial institution. Collateral security is to be realized only when the loan amount is not fully recovered from the sale proceeds of the primary security.

The company may issue its own debentures to the lenders in addition to some other assets already pledged. Such issue of debentures is known as ‘debentures issued as collateral security’.

Example : Ananda Ltd. took a loan of ₹ 50 lakhs from Sind Bank and issued 9% debenture of ₹ 60 lakhs (₹ 100 each) as a collateral security.

Or any other correct example.

(3 marks)

Q126.2022 Main 67/3/1 · Q6(a)3 marks

X Ltd. purchased assets of ₹ 18,00,000 and took over liabilities of ₹ 6,00,000 of Y Ltd. for a purchase consideration of ₹ 10,00,000. The payment to Y Ltd. was made by issue of 9% debentures of ₹ 100 each at ₹ 125.

Calculate the number of 9% debentures issued in favour of Y Ltd. and pass the necessary journal entries for the above transactions in the books of X Ltd.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

X Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
Sundry Assets A/c ... Dr.
To Sundry Liabilities A/c
To Y Ltd. A/c
To Capital Reserve A/c
(Acquired assets and liabilities from Y Ltd.)
18,00,000
6,00,000
10,00,000
2,00,000
1½
Y Ltd. A/c ... Dr.
To 9% Debentures A/c
To Securities Premium Reserve A/c
(Issued 9% debentures in favour of X Ltd.)
10,00,000
8,00,000
2,00,000
1½

= 3 Marks

Working Note

No. of Debentures issued in favour of Y Ltd. = 10,00,000 / 125 = 8000

Q127.2022 Main 67/3/1 · Q6(b)3 marks

Pass necessary journal entries in the books of Z Ltd. for the following transactions:

  1. Z Ltd. invited applications for issuing 10,000, 9% debentures of ₹ 100 each at a premium of ₹ 10 per debenture. The full amount was payable on application. Applications were received for 15,000 debentures. Applications for 3,000 debentures were rejected and the applications money was refunded. Debentures were allotted to the remaining applicants on a pro-rata basis.
  2. The company has a balance of ₹ 60,000 in securities premium reserve account. Loss on issue of debentures ₹ 1,00,000 was written off as per the provisions of the Companies Act 2013.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Z Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
(a)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
16,50,00016,50,0001
Debenture Application and Allotment A/c ... Dr.
To 9% Debentures A/c
To Securities Premium Reserve A/c
To Bank A/c
(Allotment of 10,000 debentures and refund of excess application money on 5,000 debentures)
16,50,000
10,00,000
1,00,000
5,50,000
1
(b)Securities Premium Reserve A/c ... Dr.
Statement of Profit & Loss ... Dr.
To Loss on issue of Debentures A/c
(Loss on issue of debentures written off.)
60,000
40,000


1,00,000
1

= 3 Marks

Q128.2022 Main 67/4/1 · Q6(a)3 marks

X Ltd. invited applications for issuing 15,000 8% Debentures of ₹100 each. The amount was payable as follows :

On Application–₹20 per Debenture
On Allotment–Balance

Applications for 30,000 Debentures were received. Applications for 5,000 Debentures were rejected and the application money was refunded to the applicants. Prorata allotment was made to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. The remaining allotment money was duly received.

Pass necessary journal entries for the above transactions in the books of X Ltd.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

X Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.6,00,000
To Debenture Application A/c6,00,000
(Application money received on 30,000 debentures @ ₹20 each) (½)
Debenture Application A/c ……Dr.6,00,000
To 8% Debentures account3,00,000
To Debenture Allotment A/c2,00,000
To Bank A/c1,00,000
(Debenture Application money for 15,000 debentures transferred to Debentures A/c, excess credited to Debenture Allotment A/c and money refunded on rejected applications) (1)
Debenture Allotment A/c ……Dr.12,00,000
To 8% Debentures A/c12,00,000
(Allotment money due on 15,000 debentures @ ₹80 each) (½)
Bank A/c ……Dr.10,00,000
To Debenture Allotment A/c10,00,000
(Balance of allotment money received on 15,000 debentures) (1)

(= 3 marks)

Q129.2022 Main 67/4/1 · Q6(b)3 marks

Pass necessary journal entries for the issue of Debentures in the following cases :

  1. Y Ltd. issued ₹5,00,000, 9% Debentures of ₹100 each at par redeemable at a premium of 10% after three years.
  2. Z Ltd. issued 4500, 9% Debentures of ₹100 each at a discount of 10% redeemable at a premium of 5% after three years.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

(i) Y Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.5,00,000
To Debenture Application & Allotment A/c5,00,000
(Application money received on 5,000 debentures @ ₹100 each) (½)
Debenture Application & Allotment A/c ……Dr.5,00,000
Loss on issue of Debentures A/c ……Dr.50,000
To 9% Debentures A/c5,00,000
To Premium on redemption of Debentures A/c50,000
(Issue of 5,000 9% debentures redeemable at 10% premium) (1)

(ii) Z Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.4,05,000
To Debenture Application & Allotment A/c4,05,000
(Application money received on 4,500 debentures @ ₹90 each) (½)
Debenture Application & Allotment A/c ……Dr.4,05,000
Loss on issue of Debentures A/c ……Dr.67,500
To 9% Debentures A/c4,50,000
To Premium on redemption of Debentures A/c22,500
(Issue of 4,500 debentures of ₹100 each at 10% discount redeemable at 5% premium) (1)

(= 3 marks)

Q130.2022 Main 67/5/1 · Q6(a)3 marks

Radhey Ltd. took over assets of ₹14,00,000 and liabilities of ₹6,00,000 of Krishna Ltd. Radhey Ltd. paid the purchase consideration by issuing 10,000, 8% Debentures of ₹100 each at a premium of 10%.

Pass necessary journal entries in the books of Radhey Ltd.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Radhey Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Sundry Assets A/c ... Dr.
Goodwill A/c ... Dr.
To Sundry Liabilities A/c
To Krishna Ltd. A/c
(Being Assets and Liabilities of Krishna Ltd. taken over) (1)
14,00,000
3,00,000



6,00,000
11,00,000
Krishna Ltd. A/c ... Dr.
To 8% Debentures A/c
To Securities Premium Reserve A/c
(Being 1,000, 8% Debentures issued at premium) (2)
11,00,000


10,00,000
1,00,000

(= 3 marks)

Q131.2022 Main 67/5/1 · Q6(b)3 marks

Amay Ltd. invited applications for issuing 10,000, 8% debentures of ₹100 each. The amount was payable as follows :

₹30 on application and ₹70 on allotment. The public applied for 12,000 debentures. Applications for 8,000 debentures were accepted in full; applications for 3,000 debentures were allotted 2,000 debentures and the remaining applications were rejected. All money was duly received.

Pass the necessary journal entries in the books of the company for the above transactions.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Amay Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To Debenture Application A/c
(Receipt of Application money for 12,000 Debentures) (½)
3,60,000

3,60,000
Debenture Application A/c ... Dr.
To 8% Debentures A/c
To Debenture Allotment A/c
To Bank A/c
(Debenture Application money transfer to Debenture A/c, excess credited to Debenture Allotment and money refunded on rejected application) (1)
3,60,000



3,00,000
30,000
30,000
Debenture Allotment A/c ... Dr.
To 8% Debentures A/c
(Amount due on allotment on 10,000 Debentures) (½)
7,00,000

7,00,000
Bank A/c ... Dr.
To Debenture Allotment A/c
(Debenture allotment money received) (1)
6,70,000

6,70,000

(= 3 marks)

Q132.2022 Supp. 67/6/1 · Q6(a)3 marks

BX Ltd. took over a building worth ₹ 3,00,000, machinery worth ₹ 2,00,000, furniture worth ₹ 30,000 and its liabilities of ₹ 40,000 from PQ & Company for a purchase consideration of ₹ 6,00,000. BX Ltd. paid the purchase consideration by issuing 11% debentures of ₹ 100 each at a premium of 20%.

Pass necessary journal entries for the above transactions in the books of BX Ltd.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

BX Ltd. Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Building A/c ... Dr.
Machinery A/c ... Dr.
Furniture A/c ... Dr.
Goodwill A/c ... Dr.
To Sundry Liabilities A/c
To PQ & Co A/c
(Being Assets and Liabilities of PQ & Co taken over)
3,00,000
2,00,000
30,000
1,10,000




40,000
6,00,000
PQ & Co A/c ... Dr.
To 11% Debentures A/c
To Securities Premium Reserve A/c
(Being 11% Debentures issued at premium of 20%)
6,00,000
5,00,000
1,00,000

(1 mark for first entry; 2 marks for second entry) = 3 marks

Q133.2022 Supp. 67/6/1 · Q6(b)3 marks

XZ Ltd. invited applications for issuing 5000, 9% debentures of ₹ 100 each. The amount was payable as follows :

On application — ₹ 40 per debenture
On allotment — Balance

Applications for 10,000 debentures were received. Applications for 2000 debentures were rejected and the application money of these applicants was refunded to them. Pro-rata allotment was made to the remaining applicants. Excess application money received with those applications against which pro-rata allotment was made was adjusted towards amount due on allotment.

Pass the necessary journal entries for the issue of debentures in the books of XZ Ltd.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

XZ Ltd. Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
To Debenture Application A/c
(Receipt of Application money for 10,000 Debentures) (½)
4,00,000
4,00,000
Debenture Application A/c ... Dr.
To 9% Debentures A/c
To Debenture Allotment A/c
To Bank A/c
(Debenture Application money transfer to Debenture A/c, excess credited to Debenture Allotment and money refunded on rejected application) (1)
4,00,000
2,00,000
1,20,000
80,000
Debenture Allotment A/c ... Dr.
To 9% Debentures A/c
(Amount due on allotment on 5,000 Debentures) (½)
3,00,000
3,00,000
Bank A/c ... Dr.
To Debenture Allotment A/c
(Debenture allotment money received) (1)
1,80,000
1,80,000

= 3 marks

Q134.SQP 2025-26 · Q193 marks

On January 01, 2025 Ritu Ltd. Issued ₹ 40,00,000, 8% Debentures of ₹ 100 each at 5% discount to be redeemed at 10% premium at the end of 5 years. Balance in Securities Premium on the date of such issue was of ₹ 2,70,000. Pass entries for Issue of debentures.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Journal

DateParticularsDr (₹)Cr (₹)
Jan. 01 2025Bank A/c Dr.
To Debentures Application and Allotment A/c
(Being application and allotment money received for debentures)
38,00,000
38,00,000
Jan. 01 2025Debentures Application and Allotment A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 8% Debentures A/c
To Premium on Redemption of Debentures A/c
(Being Issued ₹ 40,00,000, 8% Debentures of ₹ 100 each at 5% discount to be redeemed at 10% premium)
38,00,000
6,00,000


40,00,000
4,00,000
Q135.SQP 2026-27 · Q193 marks

Drum Ltd. decided to expand its operations by acquiring the business of Crane Ltd. and agreed to take over assets worth ₹6,00,000 and liabilities worth ₹40,000 at an agreed purchase consideration of ₹6,30,000

The purchase consideration was discharged by issuing 10% Debentures of ₹100 each at 10% discount to Crane Ltd.

On the basis of above information:

  1. Calculate the number of debentures issued to discharge the purchase consideration.
  2. Pass necessary journal entries in the books of Drum Ltd.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

I. Number of debentures = Purchase Consideration/ Issue Price
= 6,30,000/90 = 7,000 debenture

II.

JOURNAL

DateParticularsLFDr. (₹)Cr. (₹)
Assets A/c Dr.6,00,000
Goodwill A/c Dr.70,000
To liabilities A/c40,000
To Crane Ltd.6,30,000
(Being business purchased)
Crane Ltd. Dr.6,30,000
Discount on issue of debentures A/c Dr.70,000
To 10% Debentures A/c7,00,000
(Being 7,000 debentures issued at 10% discount)
Q136.2026 Main 67/1/1 · Q214 marks

On 1st April, 2024 Bhumika Ltd. issued 500, 9% debentures of ₹500 each at a discount of 10% redeemable at a premium of 6% after five years. On 31st March, 2025 the company had a balance of ₹30,000 in its Securities Premium Account.

Pass necessary journal entries for issue of 9% Debentures and writing off Loss on issue of Debentures. Also prepare ‘Loss on Issue of Debentures Account’.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Books of Bhumika Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2024 Apr.1Bank A/c ……Dr.2,25,000
To Debenture Application and Allotment A/c2,25,000
(Debenture application money received) [1 mark]
”Debenture Application and Allotment A/c ……Dr.2,25,000
Loss on Issue of Debentures A/c ……Dr.40,000
To 9% Debentures A/c2,50,000
To Premium on Redemption of Debentures A/c15,000
(Debenture application money transferred to debentures and premium on redemption of debentures account) [1 mark]
2025 Mar.31Securities Premium A/c ……Dr.30,000
Statement of Profit and Loss ……Dr.10,000
To Loss on Issue of Debentures A/c40,000
(Loss on issue of debentures written off) [1 mark]

Loss on Issue of Debentures A/c

Dr. DateParticularsAmount (₹)DateParticulars Cr.Amount (₹)
2024 Apr.1To 9% Debentures A/c25,0002025 Mar.31By Securities Premium A/c30,000
”To Premium on Redemption of Debentures A/c15,000”By Statement of Profit and Loss10,000
40,00040,000

(1 mark for the ledger account; 1 + 1 + 1 + 1 = 4 marks)

Q137.2026 Main 67/2/1 · Q214 marks

Pass necessary journal entries in the books of Mitali Ltd. for issue of debentures in the following cases :

  1. Issued 7,000, 9% debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5% after 5 years.
  2. Issued 8,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(i)

Books of Mitali Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Application money received on 7,000 debentures of ₹100 each at a discount of 10%) [1]
6,30,000
6,30,000
Debenture Application and Allotment A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account and premium on redemption of debentures account) [1]
6,30,000
1,05,000


7,00,000
35,000
Alternatively
Debenture Application and Allotment A/c Dr.
Discount on Issue of Debentures A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account and premium on redemption of debentures account)
6,30,000
70,000
35,000



7,00,000
35,000

(ii)

Books of Mitali Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Application money received on 8,000 debentures of ₹100 each at a premium of 10%) [1]
8,80,000
8,80,000
Debenture Application and Allotment A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 10% Debentures A/c
To Securities Premium A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account, securities premium account and premium on redemption of debentures account) [1]
8,80,000
40,000


8,00,000
80,000
40,000

(= 4 marks)

The marking scheme writes "10% Debentures A/c" in part (ii), whereas the question states 11% debentures.

Q138.2026 Main 67/3/1 · Q214 marks

Pass necessary journal entries for issue of debentures for the following transactions :

  1. AB Ltd. issued 30,000, 10% Debentures of ₹100 each at a premium of 5%, redeemable at a premium of 10%.
  2. CD Ltd. issued 40,000, 8% Debentures of ₹100 each at par, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(i)

Books of AB Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.
To Debenture Application & Allotment A/c
(Debenture application money received on 30,000 debentures @ ₹105 per debenture)
31,50,000

31,50,000
1
Debenture Application & Allotment A/c Dr.
Loss on Issue of Debenture A/c Dr.
To 10% Debentures A/c
To Securities Premium A/c
To Premium on Redemption of Debenture A/c
(Application amount transferred to debentures a/c, securities premium a/c and provision made for premium on redemption of debentures)
31,50,000
3,00,000




30,00,000
1,50,000
3,00,000
1

(ii)

Books of CD Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Bank A/c Dr.
To Debenture Application & Allotment A/c
(Debenture application money received on 40,000 debentures @ ₹100 per debenture)
40,00,000

40,00,000
1
Debenture Application & Allotment A/c Dr.
Loss on Issue of Debenture A/c Dr.
To 8% Debentures A/c
To Premium on Redemption of Debenture A/c
(Application amount transferred to debentures a/c and provision made for premium on redemption of debentures)
40,00,000
4,00,000



40,00,000
4,00,000
1

(= 4 Marks)

Q139.2026 Main 67/4/1 · Q214 marks

On 1st April, 2024, Smaran Ltd. issued 60,000, 11% Debentures of ₹ 100 each at a premium of 10%, redeemable at par after five years. The company closed its books on 31st March every year.

Pass necessary journal entries in the books of the company for issue of debentures, payment of interest on debentures and writing off interest for the year ended 31st March, 2025.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Books of Smaran Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2024
April 1
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) (1)
66,00,000

66,00,000
April 1Debenture Application and Allotment A/c ... Dr.
To 11% Debentures A/c
To Securities Premium A/c
(Debenture application money transferred to 11% Debentures A/c and securities premium account) (1)
66,00,000


60,00,000
6,00,000
2025
March 31
Debenture Interest A/c ... Dr.
To Debentureholders’ A/c
(Debenture interest due) (½)
6,60,000

6,60,000
March 31Debentureholders’ A/c ... Dr.
To Bank A/c
(Debenture interest paid) (½)
6,60,000

6,60,000
March 31Statement of Profit and Loss ... Dr.
To Debenture Interest A/c
(Debenture interest written off from profits) (1)
6,60,000

6,60,000

1 + 1 + ½ + ½ + 1 = 4 Marks

Q140.2026 Main 67/5/1 · Q214 marks

Pass necessary journal entries for the issue of debentures for the following transactions :

  1. XS Ltd. issued 40,000, 9% Debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5%.
  2. YG Ltd. issued 50,000, 9% Debentures of ₹100 each at par, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(i)

Books of XS Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.44,00,000
To Debenture Application and Allotment A/c44,00,000
(Application money received on 40,000 9% debentures of ₹100 each issued at 10% premium) [1 mark]
Debenture Application and Allotment A/c ……Dr.44,00,000
Loss on issue of Debentures A/c ……Dr.2,00,000
To 9% Debentures A/c40,00,000
To Securities Premium A/c4,00,000
To Premium on Redemption of Debentures A/c2,00,000
(Debentures application money transferred to debentures A/c & securities premium A/c, and premium on redemption of debentures account created) [1 mark]

(ii)

Books of YG Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ……Dr.50,00,000
To Debenture Application and Allotment A/c50,00,000
(Application money received on 50,000 9% debentures of ₹100 each issued at par) [1 mark]
Debenture Application and Allotment A/c ……Dr.50,00,000
Loss on issue of Debentures A/c ……Dr.5,00,000
To 9% Debentures A/c50,00,000
To Premium on Redemption of Debentures A/c5,00,000
(Debentures application money transferred to debentures A/c and premium on redemption of debentures account created) [1 mark]

(1 + 1 + 1 + 1 = 4 Marks)

Q141.2026 Supp. 67/7/1 · Q214 marks

Pass necessary journal entries in the books of Elegant Ltd. for issue of debentures in the following cases :

  1. Issued 7,000, 10% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10% after 6 years.
  2. Issued 8,000, 11% Debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5% after 6 years.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Books of Elegant Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)Bank A/c  Dr.
    To Debenture Application and Allotment A/c
(Debenture application money received)
6,65,000

6,65,000
Debenture Application and Allotment A/c  Dr.
Loss on Issue of Debentures A/c  Dr.
    To 10% Debentures A/c
    To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures and premium on redemption of debentures account)
6,65,000
1,05,000



7,00,000
70,000
(ii)Bank A/c  Dr.
    To Debenture Application and Allotment A/c
(Debenture application money received)
8,80,000

8,80,000
Debenture Application and Allotment A/c  Dr.
Loss on Issue of Debentures A/c  Dr.
    To 11% Debentures A/c
    To Securities Premium A/c
    To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures, securities premium and premium on redemption of debentures account)
8,80,000
40,000




8,00,000
80,000
40,000

(1 mark for each correct entry = 4 marks)

Q142.2025 Main 67/1/1 · Q214 marks

Pass necessary journal entries for issue of debentures for the following transactions :

  1. Kiero Ltd. issued 80,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 10%.
  2. Naro Ltd. issued 50,000, 10% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(i)

Books of Kiero Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
80,00,000

80,00,000
Debenture Application and Allotment A/c ... Dr.
Loss on Issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures and premium on redemption of debentures account)
80,00,000
8,00,000



80,00,000
8,00,000

(1 × 2)

(ii)

Books of Naro Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
52,50,000

52,50,000
Debenture Application and Allotment A/c ... Dr.
Loss on Issue of Debentures A/c ... Dr.
To 10% Debentures A/c
To Securities Premium A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures and premium on redemption of debentures account)
52,50,000
5,00,000




50,00,000
2,50,000
5,00,000

(1 × 2)

((1 × 2) + (1 × 2) = 4 marks)

Q143.2025 Main 67/2/1 · Q214 marks

Ridyum Limited issued 5,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows :

On Application – ₹ 200 per debenture
On Allotment – Balance (including premium)

The debentures were fully subscribed and all amounts were duly received.

Pass the necessary journal entries for issue of debentures in the books of Ridyum Limited.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Books of Ridyum Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.10,00,000
    To Debenture Application A/c10,00,000
(Debenture application money received)
Debenture Application A/c Dr.10,00,000
    To 9% Debentures A/c10,00,000
(Debenture application money transferred to debentures account)
Debenture Allotment A/c Dr.17,50,000
    To 9% Debentures A/c15,00,000
    To Securities Premium A/c2,50,000
(Debenture allotment money due)
Bank A/c Dr.17,50,000
    To Debenture Allotment A/c17,50,000
(Debenture allotment money received)

(Marks: 1 + 1 + 1 + 1 = 4 marks)

Q144.2025 Main 67/4/1 · Q214 marks

EF Ltd. invited applications for issuing 4000, 10% debentures of ₹ 100 each at a premium of ₹ 10 per debenture. The amount was payable as follows :

On application–₹ 40 per debenture
On allotment–₹ 70 per debenture (including premium)

The debentures were fully subscribed and all money was duly received.

Pass necessary journal entries for the above transactions in the books of EF Ltd.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Books of EF Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.
  To Debenture Application A/c
(Application amount received on 4,000 debentures.)
1,60,000
1,60,000
Debenture Application A/c ... Dr.
  To 10% Debentures A/c
(Application amount transferred to debentures a/c.)
1,60,000
1,60,000
Debenture Allotment A/c ... Dr.
  To 10% Debentures A/c
  To Securities Premium A/c
(Allotment amount due on 4,000 debentures including premium.)
2,80,000
2,40,000
40,000
Bank A/c ... Dr.
  To Debenture Allotment A/c
(Allotment amount received.)
2,80,000
2,80,000

(1 x 4) = 4 marks

Q145.2025 Main 67/5/1 · Q224 marks

On 1st April, 2023, GI Ltd. issued 40,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at par after five years. The company closes its books on 31st March every year. Interest on debentures is payable half-yearly on 30th September and 31st March every year.

Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Books of GI Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2023
April 1
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 40,000, 12% Debentures of ₹100 each issued at a premium of 10%)
44,00,000
44,00,000
,,Debenture Application and Allotment A/c Dr.
To 12% Debentures A/c
To Securities Premium A/c
(Transfer of Debenture application money to Debentures account and Securities premium account)
44,00,000
40,00,000
4,00,000
2023
Sept 30
Debenture Interest A/c Dr.
To Debentureholders A/c
(Interest due on debentures for six months)
2,40,000
2,40,000
,,Debentureholders A/c Dr.
To Bank A/c
(Payment of interest to debentureholders)
2,40,000
2,40,000
2024
March 31
Debenture Interest A/c Dr.
To Debentureholders A/c
(Interest due on debentures for six months)
2,40,000
2,40,000
,,Debentureholders A/c Dr.
To Bank A/c
(Payment of interest to debentureholders)
2,40,000
2,40,000

(1 + 1 + ½ + ½ + ½ + ½ = 4 marks)

Q146.2025 Main 67/7/1 · Q214 marks

Pass necessary journal entries for the issue of debentures in the books of NK Ltd. for the following transactions :

  1. Issued 500, 9% Debentures of ₹100 each at 10% discount, redeemable at a premium of 10% after 5 years.
  2. Issued 400, 9% Debentures of ₹100 each at 5% discount, redeemable at par after 5 years.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

In the books of NK Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i) Bank A/c ... Dr.
To Debenture Application & Allotment A/c
(Application money received on 500, 9% Debentures)
45,000

45,000
Debenture Application & Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures issued at 10% discount, redeemable at 10% premium)
45,000
10,000



50,000
5,000
Or
Debenture Application & Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
Discount on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures issued at 10% discount, redeemable at 10% premium)
45,000
5,000
5,000




50,000
5,000
(1 × 2 = 2 Marks)
(ii) Bank A/c ... Dr.
To Debenture Application & Allotment A/c
(Application money received on 400, 9% Debentures)
38,000

38,000
Debenture Application & Allotment A/c ... Dr.
Discount on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
(Debentures issued at 5% discount, redeemable at par)
38,000
2,000


40,000
(1 × 2 = 2 Marks)

(Total 4 Marks)

Q147.2025 Supp. 67/S/1 · Q214 marks

Pass necessary journal entries for the issue of 11% Debentures in the books of Arpita Ltd. in the following cases :

  1. Issued 2,000, 11% Debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
  2. Issued 5,000, 11% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5%.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(i)

Books of Arpita Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.2,20,000
    To Debenture Application and Allotment A/c2,20,000
(Debenture application money received)
Debenture Application and Allotment A/c ... Dr.2,20,000
Loss on Issue of Debentures A/c ... Dr.10,000
    To 11% Debentures A/c2,00,000
    To Securities Premium A/c20,000
    To Premium on Redemption of Debentures A/c10,000
(Debenture application money transferred to debentures and premium on redemption of debentures account)

(1 x 2)

(ii)

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
Bank A/c ... Dr.4,50,000
    To Debenture Application and Allotment A/c4,50,000
(Debenture application money received)
Debenture Application and Allotment A/c ... Dr.4,50,000
Loss on Issue of Debentures A/c ... Dr.75,000
    To 11% Debentures A/c5,00,000
    To Premium on Redemption of Debentures A/c25,000
(Debenture application money transferred to debentures and premium on redemption of debentures account)

(1 x 2) = 4 Marks

Note: If an examinee has debited Discount on Issue of Debentures A/c by ₹50,000 and Loss on Issue of Debentures A/c by ₹25,000, full credit is to be given.

Q148.2022 Main 67/1/1 · Q95 marks

Pass journal entries for issue of debentures for the following transactions :

  1. Issued 3,000, 11% debentures of ₹ 100 each at par, redeemable at 5% premium.
  2. Issued 4,000, 12% debentures of ₹ 100 each at 5% premium, redeemable at 10% premium.
  3. Issued ₹ 3,00,000, 9% debentures of ₹ 100 each at par redeemable at par.
  4. Issued ₹ 7,00,000, 9% debentures at a discount of 10% redeemable at par.
  5. Issued ₹ 10,00,000, 9% debentures of ₹ 100 each at 10% discount redeemable at 5% premium.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) ½
3,00,000
3,00,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debenture A/c ... Dr.
To 11% Debentures A/c
To Premium on Redemption of Debenture A/c
(Issue of 3,000, 11% Debenture of ₹ 100 each at par, redeemable at 5% premium) ½
3,00,000
15,000


3,00,000
15,000
(ii)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) ½
4,20,000
4,20,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debenture A/c ... Dr.
To 12% Debentures A/c
To Securities Premium Reserve
To Premium on Redemption of Debenture A/c
(Issue of 4,000, 12% Debenture of ₹ 100 each at 5% premium, redeemable at 10% premium) ½
4,20,000
40,000


4,00,000
20,000
40,000
(iii)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) ½
3,00,000
3,00,000
Debenture Application and Allotment A/c ... Dr.
To 9% Debentures A/c
(Issue of 3,000, 9% Debenture of ₹ 100 each at par redeemable at par) ½
3,00,000
3,00,000
(iv)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) ½
6,30,000
6,30,000
Debenture Application and Allotment A/c ... Dr.
Discount / Loss on Issue of Debentures A/c ... Dr.
To 9% Debentures A/c
(Issue of ₹7,00,000, 9% Debenture at a discount of 10% redeemable at par) ½
6,30,000
70,000


7,00,000
(v)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) ½
9,00,000
9,00,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 9% Debenture A/c
To Premium on Redemption of Debentures A/c
(Issue of 10,000, 9% Debenture of ₹ 100 each at 10% discount redeemable at 5% premium) ½
9,00,000
1,50,000


10,00,000
50,000

(½ × 10 = 5)

Q149.2022 Main 67/2/1 · Q85 marks

Pass the necessary journal entries in the books of Pankaj Limited for the issue of Debentures in the following cases :

  1. Issued 7500, 10% Debentures of ₹ 100 each at a discount of ₹ 10,000 redeemable at a premium of 5%.
  2. Issued 5000, 10% Debentures of ₹ 100 each at a premium of 10% redeemable at a premium of 10%.
  3. Issued 1000, 9% Debentures of ₹ 100 each at par redeemable at par.
  4. Issued ₹ 2,00,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at par.
  5. Issued 5000, 9% Debentures of ₹ 100 each at 20% premium redeemable at par.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(a)(i) Bank A/c Dr.7,40,000
To Debentures Application and Allotment A/c7,40,000
(Application Money received on 7,500 10% Debentures)
(ii) Debentures Application and Allotment A/c Dr.7,40,000
Loss an issue of Debenture A/c Dr.47,500
To 10% Debentures A/c7,50,000
To Premium on Redemption of Debentures A/c37,500
(Application money transferred to 10% Debentures A/c)
(b)(i) Bank A/c Dr.5,50,000
To Debenture Application and Allotment A/c5,50,000
(Application Money received on 5,000 10% Debentures)
(ii) Debenture Application and Allotment A/c Dr.5,50,000
Loss on issue of Debenture A/c Dr.50,000
To 10% Debenture A/c5,00,000
To Premium on Redemption of Debentures A/c50,000
To Securities Premium Reserve A/c50,000
(Application money transferred to 10% Debentures A/c and Securities Premium Reserve)
(c)(i) Bank A/c Dr.1,00,000
To Debentures Application and Allotment A/c1,00,000
(Received Application money for 1,000 Debentures)
(ii) Debentures Application and Allotment A/c Dr.1,00,000
To 9% Debentures A/c1,00,000
(Application money transferred to 9% Debentures A/c)
(d)(i) Bank A/c Dr.1,80,000
To Debentures Application and Allotment A/c1,80,000
(Received Application money for 2,000 Debentures)
(ii) Debentures Application and Allotment A/c Dr.1,80,000
Loss/Discount on issue of Debentures A/c Dr.20,000
To 9% Debentures A/c2,00,000
(Application money transferred to 9% Debentures A/c)
(e)(i) Bank A/c Dr.6,00,000
To Debentures Application and Allotment A/c6,00,000
(Received Application money for 5,000 Debentures)
(ii) Debentures Application and Allotment A/c Dr.6,00,000
To 9% Debentures A/c5,00,000
To Securities Premium Reserve A/c1,00,000
(Application money transferred to 9% Debentures A/c and Securities Premium Reserve)

(½ × 10 = 5 marks)

Q150.2022 Main 67/3/1 · Q85 marks

Pass necessary journal entries for the issue of debentures in the following cases:

  1. Issued 50,000, 9% debentures of ₹ 100 each at par redeemable at par.
  2. Issued 10,000, 8% debentures of ₹ 100 each at 7% premium redeemable at par.
  3. Issued 750, 8% debentures of ₹ 100 each at 10% discount redeemable at par.
  4. Issued 1,000, 9% debentures of ₹ 100 each at 5% premium redeemable at 8% premium.
  5. Issued 500, 9% debentures of ₹ 100 each at 10% discount redeemable at 10% premium.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
(a)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
50,00,00050,00,000
Debenture Application and Allotment A/c ... Dr.
To 9% Debentures A/c
(Debentures application money transferred to 9% Debentures Account)
50,00,00050,00,000
(b)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 8% Debentures received)
10,70,00010,70,000
Debenture Application and Allotment A/c ... Dr.
To 8% Debentures A/c
To Securities Premium Reserve A/c
(Debentures application money transferred to 8% Debentures and Securities Premium account)
10,70,000
10,00,000
70,000
(c)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 8% Debentures received)
67,50067,500
Debenture Application and Allotment A/c ... Dr.
Loss/Discount on issue of Debentures A/c ... Dr.
To 8% Debentures A/c
(Debentures application money transferred to 8% Debentures A/c)
67,500
7,500


75,000
(d)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
1,05,0001,05,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
To Securities Premium Reserve A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures A/c)
1,05,000
8,000


1,00,000
5,000
8,000
(e)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
45,00045,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of debentures A/c ... Dr.
To 9% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures A/c and Premium on debenture account)
45,000
10,000


50,000
5,000
½ × 10

= 5 Marks

Q151.2022 Main 67/4/1 · Q95 marks

B Ltd. purchased Building worth ₹3,00,000, Plant worth ₹2,80,000 and Furniture worth ₹20,000 from C Ltd. for a purchase consideration of ₹6,30,000. B Ltd. paid the purchase consideration by issuing 9% debentures of ₹100 each.

Pass necessary journal entries in the books of B Ltd. for the acquisition of assets and issue of debentures when :

  1. Debentures were issued at par.
  2. Debentures were issued at a premium of 25%.
  3. Debentures were issued at a discount of 10%.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

B Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Building A/c ……Dr.3,00,000
Plant A/c ……Dr.2,80,000
Furniture A/c ……Dr.20,000
Goodwill A/c ……Dr.30,000
To C Ltd.6,30,000
(Purchase of assets from C Ltd.) (1½)
(a) C Ltd. ……Dr.6,30,000
To 9% Debentures A/c6,30,000
(Issue of 6,300 debentures at par) (½)
(b) C Ltd. ……Dr.6,30,000
To 9% Debentures A/c5,04,000
To Securities Premium Reserve A/c1,26,000
(Issue of 5,040 debentures of ₹100 each at premium of 25%) (1½)
(c) C Ltd. ……Dr.6,30,000
Discount / Loss on issue of debentures A/c ……Dr.70,000
To 9% Debentures A/c7,00,000
(Issue of 7,000 debentures of ₹100 each at a discount of 10%) (1½)

(= 5 marks)

Q152.2022 Main 67/5/1 · Q85 marks

Pass journal entries relating to issue of debentures for the following transactions :

  1. Issued 8,000, 10% debentures of ₹100 each at a discount of 10%, redeemable at 5% premium.
  2. Issued 4,000, 12% debentures of ₹100 each at 10% premium, redeemable at 6% premium.
  3. Issued ₹1,00,000, 9% debentures of ₹100 each at par redeemable at par.
  4. Issued ₹5,00,000, 9% debentures of ₹100 each at 10% premium redeemable at par.
  5. Issued 6,000, 9% debentures of ₹100 each at a discount of 10% redeemable at par.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(a)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
7,20,000

7,20,000
Debenture Application and Allotment A/c ... Dr.
Loss on Issue of Debentures A/c ... Dr.
To 10% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account)
7,20,000
1,20,000



8,00,000
40,000
(b)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
4,40,000

4,00,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 12% Debentures A/c
To Securities Premium Reserve A/c
To Premium on Redemption of Debenture A/c
(Debenture application money transferred to debentures account)
4,40,000
24,000




4,00,000
40,000
24,000
(c)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received)
1,00,000

1,00,000
Debenture Application and Allotment A/c ... Dr.
To 9% Debentures A/c
(Debenture application money transferred to debentures account)
1,00,000

1,00,000
(d)Bank A/c ... Dr.
To Debentures Application and Allotment A/c
(Debenture application money received)
5,50,000

5,50,000
Debentures Application and Allotment A/c ... Dr.
To 9% Debentures A/c
To Securities Premium Reserve A/c
(Debenture application money transferred to debentures and securities premium reserve account)
5,50,000


5,00,000
50,000
(e)Bank A/c ... Dr.
To Debentures Application and Allotment A/c
(Debenture application money received)
5,40,000

5,40,000
Debenture Application and Allotment A/c ... Dr.
Discount/Loss on Issue of Debentures A/c ... Dr.
To 9% Debentures A/c
(Application money transferred to debentures account)
5,40,000
60,000


6,00,000

(½ × 10 = 5 marks)

Q153.2022 Supp. 67/6/1 · Q85 marks

Pass the necessary journal entries for the issue of 9% debentures in the following cases :

  1. Issued ₹ 5,00,000, 9% debentures of ₹ 100 each at par, redeemable at par, after three years.
  2. Issued 4,000, 9% debentures of ₹ 100 each at a discount of 3%, redeemable at a premium of 10% after five years.
  3. Issued 10,000, 9% debentures of ₹ 100 each issued at a premium of 20%, redeemable at a premium of 10% after five years.
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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(a)
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) (½)
5,00,000

5,00,000
Debenture Application and Allotment A/c ... Dr.
To 9% Debentures A/c
(Debenture application money transferred to debentures account) (½)
5,00,000
5,00,000
(b)
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) (½)
3,88,000

3,88,000
Debenture Application and Allotment ... Dr.
Loss on Issue of Debentures A/c ... Dr.
To 10% Debentures A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account) (1½)
3,88,000
52,000


4,00,000
40,000
(c)
Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Debenture application money received) (½)
12,00,000

12,00,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 12% Debentures A/c
To Securities Premium Reserve A/c
To Premium on Redemption of Debentures A/c
(Debenture application money transferred to debentures account) (1½)
12,00,000
1,00,000


10,00,000
2,00,000
1,00,000

= 5 marks

Q154.2025 Main 67/4/1 · Q25(b)6 marks

Romerio Ltd. issued ₹ 80,00,000, 8% debentures of ₹ 100 each on 1st April, 2023 at par, redeemable at a premium of 5%. The company had ₹ 3,00,000 in its Securities Premium Account.

Give journal entries in the books of Romerio Ltd. relating to the :

  1. Issue of Debentures.
  2. Debenture interest for the year ending 31st March, 2024 assuming that interest was paid yearly on 31st March.
  3. Writing off Debenture Interest and Loss on Issue of Debentures.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Books of Romerio Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2023
April 1
Bank A/c ... Dr.
  To Debenture Application and Allotment A/c
(Application amount received on 80,000 debentures)
80,00,000
80,00,000
”Debenture Application and Allotment A/c ... Dr.
Loss on Issue of Debentures A/c ... Dr.
  To 8% Debentures A/c
  To Premium on Redemption of Debentures A/c
(Application amount transferred to debentures a/c and provision made for premium on redemption of debentures)
80,00,000
4,00,000


80,00,000
4,00,000
2024
March 31
Interest on Debenture A/c ... Dr.
  To Debenture Holders A/c
(Interest on debentures due)
6,40,000
6,40,000
”Debenture Holders A/c ... Dr.
  To Bank A/c
(Interest on debentures paid)
6,40,000
6,40,000
”Statement of Profit and Loss ... Dr.
  To Interest on Debenture A/c
(Interest on debentures written off)
6,40,000
6,40,000
”Securities Premium A/c ... Dr.
Statement of Profit and Loss ... Dr.
  To Loss on Issue of Debenture A/c
(Loss on issue of debentures written off)
3,00,000
1,00,000


4,00,000

(1 x 6) = 6 marks

Q155.2024 Main 67/1/1 · Q246 marks

On 1st April, 2022, Zubian Ltd. issued ₹10,00,000, 7% Debentures of ₹100 each at a premium of 6%, redeemable at a premium of 4% after five years. The company had a balance of ₹30,000 in Securities Premium Account.

  1. Pass necessary journal entries for issue of debentures and for writing off ‘Loss on Issue of Debentures’ utilising Securities Premium Account at the end of the first year itself.
  2. Prepare ‘Loss on Issue of Debentures Account’ for the year ended 31st March, 2023.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(a) Books of Zubian Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
2022
Apr 1
(i)
Bank A/c ... Dr.
  To Debenture Application & Allotment A/c
(Application money received on 10,000, 7% Debentures) (1)

10,60,000


10,60,000
Apr 1(ii)
Debenture Application & Allotment A/c ... Dr.
Loss on issue of Issue of Debentures A/c ... Dr.
  To 7% Debentures A/c
  To Securities Premium A/c
  To Premium on Redemption of Debentures A/c
(Debentures issued at 6% premium, redeemable at 4% premium on redemption) (2)

10,60,000
40,000



10,00,000
60,000
40,000
2023
Mar 31
(iii)
Securities Premium A/c ... Dr.
  To Loss on Issue of Debentures A/c
(Loss on issue of debentures written off) (1)

40,000


40,000

(b) Dr. Loss on Issue of Debentures A/c Cr.

DateParticularsAmount ₹DateParticularsAmount ₹
1.4.22To Premium on Redemption of Debentures A/c40,00031.3.23By Securities Premium A/c40,000
40,00040,000

(2)

= 6 marks

Q156.2024 Main 67/2/1 · Q236 marks

Pass necessary journal entries for issue of debentures for the following transactions :

  1. Kajal Ltd. issued 30,000, 11% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5%.
  2. Ninja Ltd. issued 32,000, 8% Debentures of ₹ 100 each at a premium ₹ 20 per debenture, redeemable at a premium of ₹ 10 per debenture.
  3. Him Ltd. issued 40,000, 13% Debentures of ₹ 100 each at par, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(i)

Books of Kajal Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 30,000, 11% Debentures of ₹100 each at a discount of 10%) [1]
27,00,000

27,00,000
Debenture Application and Allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
To 11% Debentures A/c
To Premium on redemption of Debentures A/c
(Transfer of Debenture application money and provision for premium on redemption of Debentures made) [1]
27,00,000
4,50,000



30,00,000
1,50,000

Alternatively,

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Debenture Application and Allotment A/c Dr.
Discount on issue of Debentures A/c Dr.
Loss on issue of Debentures A/c Dr.
To 11% Debentures A/c
To Premium on redemption of Debentures A/c
(Transfer of debenture application money and provision for premium on redemption of Debentures made)
27,00,000
3,00,000
1,50,000




30,00,000
1,50,000

(ii)

Books of Ninja Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 32,000, 8% Debentures of ₹100 each at a premium of ₹20 per Debenture) [1]
38,40,000

38,40,000
Debenture Application and allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
To 8% Debentures A/c
To Securities Premium A/c
To Premium on redemption of Debentures A/c
(Transfer of Debenture application money and provision for premium on redemption of Debentures made) [1]
38,40,000
3,20,000




32,00,000
6,40,000
3,20,000

(iii)

Books of Him Ltd. — Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
Bank A/c Dr.
To Debenture Application and Allotment A/c
(Receipt of application money on 40,000, 13% Debentures of ₹100 each) [1]
40,00,000

40,00,000
Debenture Application and Allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
To 13% Debentures A/c
To Premium on redemption of Debentures A/c
(Transfer of debenture application money and provision for premium on redemption of Debentures made) [1]
40,00,000
4,00,000



40,00,000
4,00,000

= 6 marks

Q157.2024 Main 67/3/1 · Q246 marks

On 1st April, 2022, Helloix Ltd. issued 10,000, 7% Debentures of ₹ 500 each at a premium of 10%, redeemable at a premium of 5% after five years. The company had a balance of ₹ 1,50,000 in the ‘Securities Premium Account’ before the issue.

  1. Pass necessary journal entries for issue of debentures and for writing off ‘Loss on Issue of Debentures’ utilising Securities Premium Account at the end of the first year itself.
  2. Prepare ‘Loss on Issue of Debentures Account’ for the year ended 31st March, 2023.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Books of Helloix Ltd.
JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
2022
Apr 1
a) Bank A/c Dr.
To Debenture Application & Allotment A/c
(Application amount received on 10,000, 7% Debentures.)
55,00,000
55,00,000
(1)
“Debenture Application & Allotment A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 7% Debentures A/c
To Securities Premium A/c
To Premium on Redemption of Debentures A/c
(Application amount transferred to debentures a/c, securities premium a/c and provision for premium on redemption of debentures made.)
55,00,000
2,50,000


50,00,000
5,00,000
2,50,000
(2)
2023
Mar 31
Securities Premium A/c Dr.
To Loss on Issue of Debentures A/c
(Loss on issue of debentures written off.)
2,50,000
2,50,000
(1)

Loss on Issue of Debentures A/c

Dr. DateParticularsJ.F.Amount (₹)DateParticularsJ.F.Amount (₹) Cr.
2022
April 1
To Premium on Redemption of Debentures A/c2,50,0002023
March 31
By Securities Premium A/c2,50,000
2,50,0002,50,000

(2)

= 6 marks

Q158.2024 Main 67/4/1 · Q266 marks

Pass necessary journal entries relating to issue of debentures and to write off discount/loss on issue of debentures in the books of Ajanta Ltd. in the following cases :

  1. 200, 9% debentures of ₹ 1,000 each are issued at 10% discount and redeemable at par. Balance in Securities Premium account is ₹ 15,000.
  2. 300, 11% debentures of ₹ 1,000 each are issued at 5% discount and redeemable at a premium of 10%. Balance in Securities Premium account is ₹ 35,000.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Books of Ajanta Ltd.
Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received) (1)
1,80,000
1,80,000
Debenture Application and Allotment A/c ... Dr.
Discount on issue of Debentures A/c ... Dr.
To 9% Debentures A/c
(Debentures application money transferred to 9% Debentures Account) (1)
1,80,000
20,000


2,00,000
Securities Premium A/c ... Dr.
Statement of Profit & Loss ... Dr.
To Discount on issue of Debentures A/c
(Discount on issue of debentures written off) (1)
15,000
5,000


20,000
(ii)Bank A/c ... Dr.
To Debenture Application and Allotment A/c
(Application money on 11% Debentures received) (1)
2,85,000
2,85,000
Debenture Application and Allotment A/c ... Dr.
Loss on issue of Debentures A/c ... Dr.
To 11% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 11% Debentures A/c) (1)
2,85,000
45,000


3,00,000
30,000
Alternatively
Debenture Application and Allotment A/c ... Dr
Discount on issue of debentures A/c ... Dr
Loss on issue of Debentures A/c ... Dr
To 11% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 11% Debentures A/c)
2,85,000
15,000
30,000



3,00,000
30,000
Securities Premium A/c ... Dr.
Statement of Profit & Loss ... Dr.
To Loss on issue of Debentures A/c
(Loss on issue of debentures written off) (1)
35,000
10,000


45,000
Alternatively
Securities Premium A/c ... Dr.
Statement of Profit & Loss ... Dr.
To Discount on issue of Debentures A/c
To Loss on issue of Debentures A/c
(Loss on issue of debentures written off)
35,000
10,000


15,000
30,000

(= 6 Marks)

Q159.2024 Main 67/5/1 · Q266 marks

Pass Journal entries relating to issue of debentures in the books of Novex Ltd. in each of following cases :

  1. Issued 30,000, 10% Debentures of ₹ 100 each at a premium of 10%, redeemable at par.
  2. Issued 4,000, 10% Debentures of ₹ 100 each at a premium of 15%, redeemable at a premium of 10%.
  3. Issued 5,000, 10% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Books of Novex Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
(i)Bank A/c Dr.33,00,0001
To Debenture Application and Allotment A/c33,00,000
(Debenture Application money received)
Debenture Application and Allotment A/c. Dr.33,00,0001
To 10% Debentures A/c30,00,000
To Securities Premium A/c3,00,000
(Debenture Application money transferred to Debentures and Securities Premium account)
(ii)Bank A/c Dr.4,60,0001
To Debenture Application and Allotment A/c4,60,000
(Debenture Application money received)
Debenture Application and Allotment A/c Dr.4,60,0001
Loss on issue of Debentures A/c Dr.40,000
To 10% Debentures A/c4,00,000
To Securities Premium A/c60,000
To Premium on redemption of Debentures A/c40,000
(Debenture Application money transferred to Debentures and Securities Premium account and provision for premium on redemption of debentures made)
(iii)Bank A/c Dr.4,75,0001
To Debenture Application and Allotment A/c4,75,000
(Debenture Application money received)
Debenture Application and Allotment A/c Dr.4,75,0001
Loss on issue of Debentures A/c Dr.75,000
To 10% Debentures A/c5,00,000
To Premium on redemption of Debentures A/c50,000
(Debenture Application money transferred to Debentures and provision for premium on redemption of debentures made)

Alternate Entry (for (iii) second entry)

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)Marks
Debenture Application and Allotment A/c Dr.4,75,000
Discount on issue of Debentures A/c Dr.25,000
Loss on issue of Debentures A/c Dr.50,000
To 10% Debentures A/c5,00,000
To Premium on redemption of Debentures A/c50,000
(Debenture Application money transferred to Debentures and provision for premium on redemption of debentures made)

(1×6 = 6 marks)

Q160.2024 Supp. 67/S/1 · Q246 marks

On 1st April, 2022, Ardhaan Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10% after five years. The company had a balance of ₹ 80,000 in Securities Premium Account.

  1. Pass necessary journal entries for issue of debentures and for writing off ‘Loss on Issue of Debentures’ utilising Securities Premium Account at the end of first year itself.
  2. Prepare ‘Loss on Issue of Debentures Account’ for the year ended 31st March, 2023.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(a) Books of Ardhaan Ltd
Journal

DateParticularsL.F.Dr (₹)Cr (₹)Marks
2022
April 1
Bank A/c Dr.
    To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
9,50,000

9,50,000
1
,,Debenture Application and Allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
    To 9% Debentures A/c
    To Premium on Redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures Account)
9,50,000
1,50,000



10,00,000
1,00,000
2
2023
March 31
Securities Premium A/c Dr.
Statement of Profit and Loss Dr.
    To Loss on issue of Debentures A/c
(Loss on issue of debentures written off)
80,000
70,000


1,50,000
1

(b)

Loss on issue of Debentures A/c

Dr.
Date
ParticularsJ.F.Amount (₹)Cr.
Date
ParticularsJ.F.Amount (₹)
2022
April 1
To 9% Debentures A/c50,0002023
March 31
By Securities Premium A/c80,000
,,To Premium on Redemption of Debentures A/c1,00,000,,By Statement of Profit and Loss70,000
1,50,0001,50,000

(2 marks)

=6 Marks

Q161.2023 Main 67/1/1 · Q266 marks

Pass necessary journal entries for the following transactions relating to the issue of debentures :

  1. Gagan Limited issued ₹ 10,00,000, 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par after four years.
  2. KS Limited issued ₹ 10,00,000, 10% Debentures of ₹ 100 each at par, redeemable at 10% premium after four years.
  3. QR Limited issued ₹ 10,00,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5% after five years.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(a) Bank A/c Dr.10,50,000
    To Debenture Application and Allotment A/c10,50,000
(Debenture application money received on 10,000 9% debentures)
Debenture Application and Allotment A/c Dr.10,50,000
    To 9% Debentures A/c10,00,000
    To Securities premium/Securities premium reserve A/c50,000
(Debenture application money transferred to debentures A/c and securities premium A/c)
(b) Bank A/c Dr.10,00,000
    To Debenture Application and Allotment A/c10,00,000
(Debenture application money received on 10,000 10% debentures)
Debenture Application and Allotment A/c Dr.10,00,000
Loss on issue of Debentures A/c Dr.1,00,000
    To 10% Debentures A/c10,00,000
    To Premium on redemption of Debentures A/c1,00,000
(Debenture application money transferred to debentures A/c)
(c) Bank A/c Dr.9,00,000
    To Debenture Application and Allotment A/c9,00,000
(Debenture application money received on 10,000 9% debentures)
Debenture Application and Allotment A/c Dr.9,00,000
Loss on issue of Debentures A/c Dr.1,50,000
    To 9% Debentures A/c10,00,000
    To Premium on redemption of Debentures A/c50,000
(Debenture application money transferred to debentures A/c)
OR
Debenture Application and Allotment A/c Dr.9,00,000
Discount on issue of Debentures A/c Dr.1,00,000
Loss on issue of Debentures A/c Dr.50,000
    To 9% Debentures A/c10,00,000
    To Premium on redemption of Debentures A/c50,000
(Debenture application money transferred to debentures A/c)

(1 × 6 = 6 marks)

Q162.2023 Main 67/2/1 · Q246 marks

Pass necessary journal entries for the issue of debentures in the following cases :

  1. Issued ₹75,00,000, 9% debentures of ₹100 each at a premium of 10% redeemable at a premium of 5% after 3 years.
  2. Issued 8,000, 9% debentures of ₹100 each at a discount of 6% redeemable at a premium of 3% after 5 years.
  3. Issued 90,000, 9% debentures of ₹100 each at par, redeemable at par after 4 years.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Journal

DateParticularsL.F.Dr (₹)Cr (₹)
(i)Bank A/c Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
82,50,000
82,50,000
Debenture Application and Allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
To 9% Debentures A/c
To Securities Premium A/c/ Securities Premium Reserve A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures Account)
82,50,000
3,75,000


75,00,000
7,50,000
3,75,000
(ii)Bank A/c Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
7,52,000
7,52,000
Debenture Application and Allotment A/c Dr.
Loss on issue of Debentures A/c Dr.
To 9% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures A/c)
7,52,000
72,000


8,00,000
24,000
Or
Debenture Application and Allotment A/c Dr.
Discount on issue of debentures A/c Dr.
Loss on issue of Debentures A/c Dr.
To 9% Debentures A/c
To Premium on redemption of Debentures A/c
(Debentures application money transferred to 9% Debentures A/c)
7,52,000
48,000
24,000



8,00,000
24,000
(iii)Bank A/c Dr.
To Debenture Application and Allotment A/c
(Application money on 9% Debentures received)
90,00,000
90,00,000
Debenture Application and Allotment A/c Dr.
To 9% Debentures A/c
(Debentures application money transferred to 9% Debentures A/c)
90,00,000
90,00,000

(1×6 = 6 Marks)

Q163.2023 Main 67/3/1 · Q266 marks

(a) On 1st October, 2021 Pihu Ltd. issued ₹ 15,00,000, 9% Debentures of ₹ 20 each at a discount of ₹ 6 per debenture. The company had a balance of ₹ 1,00,000 in ‘Securities Premium Reserve Account’ on the same date. On 31st March, 2022 the company decided to write off discount on issue of debentures according to the provisions of Companies Act, 2013.

Pass necessary journal entries for issue of debentures and writing off discount on issue of debentures.

(b) On 1st April, 2021, Soma Ltd. purchased land from Mona Ltd. Soma Ltd. issued a cheque of ₹ 10,00,000 and accepted a bill of exchange payable after 6 months for ₹ 5,00,000 in favour of Mona Ltd. The balance amount was paid by issuing 5,000, 10% Debentures of ₹ 100 each at par.

Pass the necessary journal entries in the books of Soma Ltd. for the above transactions. (3+3=6)

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(a) Books of Pihu Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
Oct 1
(i) Bank A/c ... Dr.
  To Debenture Application & Allotment A/c
(Application money received on 9% Debentures) (1)
10,50,000
10,50,000
(ii) Debenture Application & Allotment A/c ... Dr.
Discount/Loss on issue of Debentures A/c ... Dr.
  To 9% Debentures A/c
(Debenture application money transferred to 9% Debentures Account) (1)
10,50,000
4,50,000


15,00,000
2022
Mar 31
(iii) Statement of Profit & Loss ... Dr.
Securities Premium / Securities Premium Reserve A/c ... Dr.
  To Discount/Loss on Issue of Debentures A/c
(Discount / loss on issue of debentures written off) (1)
3,50,000
1,00,000


4,50,000

= 3 marks

(b) Books of Soma Ltd. — Journal

DateParticularsL.F.Dr (₹)Cr (₹)
2021
Apr 1
(i) Land A/c ... Dr.
  To Mona Ltd
(Land purchased from Mona Ltd) (1)
20,00,000
20,00,000
(ii) Mona Ltd ... Dr
  To Bank A/c
(Purchase consideration partly settled by issuing a cheque) (½)
10,00,000
10,00,000
(iii) Mona Ltd ... Dr
  To Bills Payable A/c
(Purchase consideration partly settled by accepting a bill of exchange) (½)
5,00,000
5,00,000
(iv) Mona Ltd ... Dr
  To 10% Debentures A/c
(Remaining Purchase consideration settled by issuing 5,000 10% debentures) (1)
5,00,000
5,00,000
Alternatively (for (ii) + (iii) + (iv))
Mona Ltd ... Dr
  To Bank A/c
  To Bills Payable A/c
  To 10% Debentures A/c
(Purchase consideration settled by issuing a cheque, accepting a bill of exchange and issuing 5,000 10% debentures)

20,00,000


10,00,000
5,00,000
5,00,000

= 3 marks; 3 + 3 = 6 marks

Q164.2023 Main 67/4/1 · Q236 marks

Pass necessary journal entries for issue of 12% debentures in the books of Ghanshyam Ltd. in the following cases :

  1. Issued 1,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
  2. Issued 5,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at par.
  3. Issued 2,000, 12% debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5%.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Books of Ghanshyam Ltd.
Journal

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
(i)a
Bank A/c   Dr.
   To Debenture Application and Allotment A/c
(Receipt of application money on 1000, 12% debentures of ₹100 each at a premium of 10%)

1,10,000

1,10,000
(i)b
Debentures Application and allotment A/c   Dr.
Loss on issue of debentures A/c   Dr.
   To 12% Debentures A/c
   To Securities Premium / Securities Premium Reserve A/c
   To Premium on redemption of Debentures A/c
(Transfer of debenture application money to debentures, Securities premium and provision for premium on redemption of debentures made)

1,10,000
5,000




1,00,000
10,000
5,000
(ii)a
Bank A/c   Dr.
   To Debenture Application and Allotment A/c
(Receipt of application money on 5000, 12% debentures of ₹100 each at a premium of 10%)

5,50,000

5,50,000
(ii)b
Debentures Application and allotment A/c   Dr.
   To 12% Debentures A/c
   To Securities Premium / Securities Premium Reserve A/c
(Transfer of debenture application money to debentures A/c and securities premium A/c)

5,50,000


5,00,000
50,000
(iii)a
Bank A/c   Dr.
   To Debenture Application and Allotment A/c
(Receipt of application money on 2000, 12% debentures of ₹100 each at a discount of 5%)

1,80,000

1,80,000
(iii)b
Debentures Application and Allotment A/c   Dr.
Loss on issue of debentures A/c   Dr.
   To 12% Debentures A/c
   To Premium on redemption of Debentures A/c
(Transfer of debenture application money and provision for premium on redemption of debentures made)

1,80,000
30,000



2,00,000
10,000
Alternatively,
Debentures Application and allotment A/c   Dr.
Discount on issue of debentures A/c   Dr.
Loss on issue of debentures A/c   Dr.
   To 12% Debentures A/c
   To Premium on redemption of Debentures A/c
(Transfer of debenture application money and provision for premium on redemption of debentures made)

1,80,000
20,000
10,000





2,00,000
10,000

1x6 =6 marks

The MS narration for (iii)a reads “at a discount of 5%”, while the question states a discount of 10%; the amounts in the MS correspond to a 10% discount. Transcribed as printed.

Q165.2023 Main 67/5/1 · Q266 marks

Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue of debentures in the following cases :

  1. When debentures were issued at 10% premium, redeemable at 5% premium.
  2. When debentures were issued at 5% discount, redeemable at 10% premium.
  3. When debentures were issued at par, redeemable at a premium of 10%.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Books of Chiranjeevi Ltd.

JOURNAL

DateParticularsL.F.Dr. Amount (₹)Cr. Amount (₹)
a) Bank A/c Dr.2,20,000
To Debenture Application & Allotment A/c2,20,000
(application amount received on 2,000 debentures)
Debenture Application & Allotment A/c Dr.2,20,000
Loss on Issue of Debentures A/c Dr.10,000
To 10% Debentures A/c2,00,000
To Securities Premium or Securities Premium Reserve A/c20,000
To Premium on Redemption of Debentures A/c10,000
(application amount transferred to debentures a/c, securities premium a/c and provision for premium on redemption of debentures made)
b) Bank A/c Dr.1,90,000
To Debenture Application & Allotment A/c1,90,000
(application amount received on 2,000 debentures)
Debenture Application & Allotment A/c Dr.1,90,000
Loss on Issue of Debentures A/c Dr.30,000
To 10% Debentures A/c2,00,000
To Premium on Redemption of Debentures A/c20,000
(application amount transferred to debentures a/c and provision for premium on redemption of debentures made)
Note – Full credit to be given if student has debited Discount on Issue of Debenture Account and Loss on Issue of Debenture Account separately.
c) Bank A/c Dr.2,00,000
To Debenture Application & Allotment A/c2,00,000
(application amount received on 2,000 debentures)
Debenture Application & Allotment A/c Dr.2,00,000
Loss on Issue of Debentures A/c Dr.20,000
To 10% Debentures A/c2,00,000
To Premium on Redemption of Debentures A/c20,000
(application amount transferred to debentures a/c and provision for premium on redemption of debentures made)

(1 × 6 = 6 marks)

Q166.2023 Supp. 67/C/1 · Q236 marks

Pass necessary journal entries for the issue of debentures in the books of YK Ltd. :

  1. Issued 500, 9% debentures of ₹ 1,000 each at par, redeemable at par.
  2. Issued ₹ 20,00,000, 10% debentures at 6% discount, redeemable at par.
  3. Issued 2000, 8% debentures of ₹ 100 each at a discount of 2%, redeemable at a premium of 4%.
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Books of YK Ltd.

JOURNAL

DateParticularsL.F.Dr (₹)Cr (₹)
(a)
Bank A/c Dr.5,00,000
To Debenture Application and Allotment A/c5,00,000
(Application money on 9% Debentures received)
Debenture Application and Allotment A/c Dr.5,00,000
To 9% Debentures A/c5,00,000
(Debentures application money transferred to 9% Debentures A/c)
(b)
Bank A/c Dr.18,80,000
To Debenture Application and Allotment A/c18,80,000
(Application money on 10% Debentures received)
Debenture Application and Allotment A/c Dr.18,80,000
Discount/ Loss on issue of Debentures A/c Dr.1,20,000
To 10% Debentures A/c20,00,000
(Debentures application money transferred to 10% Debentures A/c )
(c)
Bank A/c Dr.1,96,000
To Debenture Application and Allotment A/c1,96,000
(Application money on 8% Debentures received)
Debenture Application and Allotment A/c Dr.1,96,000
Loss on issue of Debentures A/c Dr.12,000
To 8% Debentures A/c2,00,000
To Premium on redemption of Debentures A/c8,000
(Debentures application money transferred to 8% Debentures A/c)
Or
Debenture Application and Allotment A/c Dr.1,96,000
Discount on issue of debentures A/c Dr.4,000
Loss on issue of Debentures A/c Dr.8,000
To 8% Debentures A/c2,00,000
To Premium on redemption of Debentures A/c8,000
(Debentures application money transferred to 8% Debentures A/c )

1 x 6 = 6 marks

The marking scheme labels the parts (a), (b), (c) for the question's (i), (ii), (iii).

Q167.SQP 2026-27 · Q236 marks

I. Pass necessary journal entries for 'Issue of Debentures' in the following cases:

  1. Arman Ltd. issued 750, 12% Debentures of ₹100 each at a discount of 10% redeemable at a premium of 5%
  2. Sohan Ltd. issued 800, 9% Debentures of ₹100 each at a premium of 20 per debenture redeemable at a premium of ₹10 per Debenture.

II. X Ltd. obtained a loan of ₹4,00,000 from “The Development Bank”. The company issued 5,000; 9%. Debentures of ₹100 each as a collateral security for the same. As per the policy the company effects these transactions through journal. Show journal entries and prepare the extract of balance sheet.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

I.

JOURNAL

DateParticularsLFDr. (₹)Cr. (₹)
a)Bank A/c Dr.67,500
To Debenture application and allotment A/c67,500
( Being application money on 12% debentures received)
Debenture application and allotment A/c Dr.67,500
Discount on issue of debentures A/c Dr.7,500
Loss on issue of debentures A/c Dr.3,750
To 12% Debentures A/c75,000
To Premium on redemption of debentures A/c3,750
(Being application money transferred to 12% debentures a/c issued at discount 10%, redeemable at 5% premium.)
b)Bank A/c Dr.96,000
To Debenture application and allotment A/c96,000
(Being application money on 9% debentures received)
Debenture application and allotment A/c Dr.96,000
Loss on issue of debentures A/c Dr.8,000
To 9% debentures A/c80,000
To Securities premium A/c16,000
To Premium on redemption of debentures A/c8,000
(Being application money transferred to 9% debentures a/c issued at premium of ₹20, redeemable at a premium of ₹10)

II.

JOURNAL

DateParticularsLFDr (₹)Cr (₹)
Bank A/c Dr.4,00,000
To Bank Loan A/c4,00,000
(Being loan raised from The Development Bank)
Debenture Suspense A/c Dr.5,00,000
To 9% Debentures A/c5,00,000
(Being Debentures issued as collateral Security)

Balance Sheet (Extract as per schedule 3)
As at …

ParticularsNote NoAmount current yearAmount previous year
Equity and liabilities
Non-Current Liabilities
Long-Term Borrowings


1


4,00,000

Notes to accounts:

Particulars(₹)
Long-term Borrowings
9% Debentures5,00,000
Less: Debentures Suspense A/c5,00,000-
Bank Loan4,00,000
Part B · Financial Statement Analysis

9. Financial Statements of a Company

Q1.2026 Main 67/3/1 · QB-I 27(a)1 mark

Which of the following is a financial statement of a company ?

  1. Common Size Statement of Profit and Loss
  2. Statement of Profit and Loss
  3. Comparative Balance Sheet
  4. Comparative Statement of Profit and Loss
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Statement of Profit and Loss

Q2.SQP 2025-26 · QB-I 271 mark

A company had following balances in their books of Accounts

31 March, 202531 March, 2024
Raw Material40,00030,000
Work in Progress1,00,0001,40,000
Finished Goods70,0001,00,000
Stock in Trade2,00,0001,20,000

Determine the amount of Change in Inventories to be shown in Statement of Profit and Loss Account.

  1. ₹ 20,000
  2. ₹ (20,000)
  3. ₹ (10,000)
  4. ₹ 10,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ (10,000)

Q3.SQP 2026-27 · QB-I 271 mark

A company had the following balances in their books of accounts:

Particulars31st March, 2026 (₹)31st March, 2025 (₹)
Work in Progress1,00,00090,000
Finished Goods80,0001,10,000
Stock in Trade90,00080,000
Raw Material20,00010,000

What will be the amount of Cost of Materials Consumed if purchases of raw materials amounted to ₹ 1,60,000 and purchase of stock-in-trade amounted to ₹ 2,00,000?

  1. ₹ 1,90,000
  2. ₹ 3,40,000
  3. ₹ 1,50,000
  4. ₹ 3,50,000
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(C) ₹ 1,50,000

Q4.2026 Main 67/1/1 · QB-I 313 marks

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 :

  1. Stores and Spare parts
  2. Livestock
  3. Public Deposits
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1
ItemMajor headSub-head
(i)Stores and Spare partsCurrent Assets ½Inventories ½
(ii)LivestockNon- Current Assets ½Property, Plant and Equipment and Intangible Assets ½
(iii)Public DepositsNon- Current Liabilities ½Long Term borrowings ½

(3 marks)

Q5.2026 Main 67/2/1 · QB-I 313 marks

Classify the following items under the main heads and sub-heads (if any) of the Company's Balance Sheet according to schedule III, part I of Companies Act, 2013 :

  1. Outstanding expenses
  2. Work-in-progress
  3. Capital Advances
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1
ItemMajor headSub-head
(i)Outstanding expensesCurrent Liabilities ½Other Current Liabilities ½
(ii)Work-in-progressCurrent Assets ½Inventories ½
(iii)Capital AdvancesNon-Current Assets ½Long term loans and advances ½

(3 marks)

Q6.2026 Main 67/3/1 · QB-I 313 marks

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 :

  1. Prepaid insurance
  2. Securities Premium
  3. Design
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1
ItemMajor HeadSub Head
(i) Prepaid InsuranceCurrent Assets (½)Other Current Assets (½)
(ii) Securities PremiumShareholders’ Funds (½)Reserves and Surplus (½)
(iii) DesignNon-Current Assets (½)Property, Plant & Equipment and Intangible Assets (½)

(3 Marks)

Q7.2026 Main 67/4/1 · QB-I 313 marks

Classify the following items under major heads and subheads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013 :

  1. Interest Accrued on Investments
  2. Calls-in-Advance
  3. Mortgage Loans
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1
ItemMajor headSub-head
(a)Interest Accrued on InvestmentsCurrent Assets (½)Other Current Assets (½)
(b)Calls in AdvanceCurrent Liabilities (½)Other Current Liabilities (½)
(c)Mortgage LoanNon-Current Liabilities (½)Long term borrowings (½)

= 3 Marks

Q8.2026 Main 67/5/1 · QB-I 323 marks

Under which major head and sub-heads (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

  1. Demand deposits with banks
  2. Long-term loans
  3. Livestock
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1
ItemsMajor headSub-head
(i) Demand deposits with bankCurrent Assets [½]Cash and Cash Equivalents [½]
(ii) Long-term loansNon Current Liabilities [½]Long Term Borrowings [½]
(iii) LivestockNon Current Assets [½]Property, Plant and Equipment and Intangible Assets [½]

(3 Marks)

Q9.2026 Supp. 67/7/1 · QB-I 323 marks

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 :

  1. Unclaimed dividend
  2. Vehicles
  3. Prepaid insurance
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1
ItemMajor headSub-head
(i)Unclaimed dividendCurrent Liabilities (½)Other Current Liabilities (½)
(ii)VehiclesNon- Current Assets (½)Property, Plant and Equipment and Intangible Assets (½)
(iii)Prepaid InsuranceCurrent Assets (½)Other Current Assets (½)

(3 marks)

Q10.2025 Main 67/1/1 · QB-I 313 marks

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 :

  1. Computer software
  2. Outstanding salary
  3. Work in progress
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1
ItemMajor headSub-head
(i)Computer softwareNon-Current AssetsProperty, Plant and Equipment and Intangible Assets – Intangible Assets
(ii)Outstanding salaryCurrent LiabilitiesOther Current Liabilities
(iii)Work in progressCurrent AssetsInventories

(½ × 6 = 3 marks)

Q11.2025 Main 67/2/1 · QB-I 313 marks

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 :

  1. Work in progress
  2. Securities premium
  3. Creditors
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1
ItemMajor headSub-head
(i)Work in progressCurrent AssetsInventories
(ii)Securities PremiumShareholders' FundsReserves and Surplus
(iii)CreditorsCurrent LiabilitiesTrade Payables

(½ x 6 = 3 marks)

Q12.2025 Main 67/4/1 · QB-I 313 marks

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 :

  1. Prepaid expenses
  2. Capital Work-in-Progress
  3. Interest accrued and due on debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1
S.N.ItemMajor HeadSub Head
(a)Prepaid ExpensesCurrent AssetsOther Current Assets
(b)Capital Work in ProgressNon-Current AssetsProperty, Plant and Equipment and Intangible Assets
(c)Interest accrued and due on debenturesCurrent LiabilitiesOther Current Liabilities

(½ x 6) = 3 marks

Q13.2025 Main 67/5/1 · QB-I 313 marks

Under which major headings and sub-headings (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

  1. Livestock
  2. Loose Tools
  3. Design
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1
S.No.ItemsHeadsSub Heads
(a)LivestockNon-Current AssetsProperty, Plant & Equipment & Intangible Assets- Property, Plant & Equipment
(b)Loose toolsCurrent AssetsInventories
(c)DesignNon-Current AssetsProperty, Plant & Equipment & Intangible Assets- Intangible Assets

(½ x 6 = 3 marks)

Q14.2025 Main 67/6/1 · QB-I 313 marks

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 :

  1. Stock-in-trade
  2. Motor Vehicles
  3. Provision for tax
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1
ItemsMajor headSub-head
(a) Stock-in-TradeCurrent AssetsInventories
(b) Motor VehiclesNon Current AssetsProperty, Plant and Equipment and Intangible Assets: Property, Plant and Equipment
(c) Provision for taxCurrent LiabilitiesShort Term Provisions

(½ × 6 = 3 marks)

Q15.2025 Main 67/7/1 · QB-I 313 marks

Under which major heads and sub-heads (if any) will the following items be shown in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013 ?

  1. Capital Reserve
  2. Trade Payables
  3. Goodwill
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1
ItemMajor HeadsSub heads
(i) Capital ReserveShareholders’ FundReserves & Surplus(1)
(ii) Trade PayablesCurrent Liabilities--(1)
(iii) GoodwillNon-Current AssetsProperty, Plant and Equipment & Intangible Assets - Intangible Assets(1)

(3 Marks)

Q16.2025 Supp. 67/S/1 · QB-I 313 marks

Name the major heads and sub-heads (if any) under which the following items will be shown in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 :

  1. Accrued Income
  2. Work-in-progress
  3. Capital Advances
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1
ItemMajor headSub-head
(i)Accrued IncomeCurrent AssetsOther Current Assets
(ii)Work in progressCurrent AssetsInventories
(iii)Capital AdvancesNon-Current AssetsLong Term Loans and Advances

½ x 6 = 3 marks

Q17.2024 Main 67/1/1 · QB-I 313 marks

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 :

  1. Long Term Loans from Bank
  2. Loose Tools
  3. Outstanding Expenses
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1
ItemMajor HeadsSub heads
(a) Long Term Loans from BankNon –Current LiabilitiesLong Term Borrowings
(b) Loose ToolsCurrent AssetsInventories
(c) Outstanding ExpensesCurrent LiabilitiesOther Current Liabilities

(½ mark each = 3 marks)

Q18.2024 Main 67/2/1 · QB-I 313 marks

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 :

  1. Calls in advance
  2. Mining rights
  3. Loose tools
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1
S.No.ItemsHeadsSub Heads
(i)Calls in advanceCurrent LiabilitiesOther Current Liabilities
(ii)Mining rightsNon-Current AssetsFixed Assets / Property, Plant & Equipment & Intangible Assets - Intangible Assets
(iii)Loose toolsCurrent AssetsInventories

½ × 6 = 3 marks

Q19.2024 Main 67/3/1 · QB-I 313 marks

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 :

  1. Mining Rights
  2. Loose Tools
  3. Income Received in Advance
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1
S.N.ItemMajor HeadSub Head
(a)Mining RightsNon-Current AssetsFixed Assets / Property, Plant and Equipment and Intangible Assets - Intangible Assets
(b)Loose ToolsCurrent AssetsInventories
(c)Income Received in AdvanceCurrent LiabilitiesOther Current Liabilities

1/2 x 6 = 3 marks

Q20.2024 Main 67/4/1 · QB-I 313 marks

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 :

  1. Accrued Income
  2. Capital Advances
  3. Capital work-in-progress
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1
ItemMajor HeadSub Head
iAccrued IncomeCurrent AssetsOther Current Assets
iiCapital AdvancesNon- Current AssetsLong term Loans & Advances
iiiCapital work in progressNon- Current AssetsFixed Assets/ Property, Plant & Equipment and Intangible Assets- Capital Work in Progress.

(½ × 6 = 3 Marks)

Q21.2024 Main 67/5/1 · QB-I 313 marks

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 :

  1. Stores and Spares
  2. Calls-in-Advance
  3. Income received in advance
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1
S.No.ItemsHeadsSub Heads
(i)Stores and SparesCurrent AssetsInventories
(ii)Calls- in- advanceCurrent LiabilitiesOther Current Liabilities
(iii)Income received in advanceCurrent LiabilitiesOther Current Liabilities

(½×6 = 3 marks)

Q22.2024 Supp. 67/S/1 · QB-I 313 marks

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 :

  1. Copyrights
  2. Interest Accrued on investments
  3. Long-term investment in shares
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1
ItemMajor HeadSub Head
(a)CopyrightsNon- Current AssetsFixed Assets/ Property, Plant & Equipment and Intangible Assets- Intangible assets
(b)Interest Accrued on investmentsCurrent AssetsOther Current Assets
(c)Long-term investment in sharesNon- Current AssetsNon-Current investments

½x6 =3 Marks

Q23.2023 Main 67/1/1 · QB-I 313 marks

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 :

  1. Licenses and Franchise
  2. Loans Repayable on Demand
  3. Accrued Income
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1
ItemsMajor headSub-head
(a) Licenses and FranchiseNon Current AssetsFixed Assets - Intangible Assets
Alternatively, Property, Plant & Equipment and Intangible Assets
(b) Loans Repayable on DemandCurrent LiabilitiesShort Term Borrowings
(c) Accrued IncomeCurrent AssetsOther Current Assets

(½ × 6 = 3 marks)

Note: Full credit to be given for writing only Intangible Assets or Fixed Assets under Sub-head of part (a).

Q24.2023 Main 67/2/1 · QB-I 313 marks

Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013 ?

  1. Bills receivable
  2. Securities premium reserve
  3. Calls in advance
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1
ItemMajor HeadSub Head
iBills ReceivableCurrent AssetsTrade Receivables
iiSecurities Premium reserveShareholders fundsReserve and Surplus
iiiCalls in AdvanceCurrent liabilitiesOther Current liabilities

(½×6 = 3 Marks)

Q25.2023 Main 67/3/1 · QB-I 313 marks

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.

  1. Mining Rights
  2. Income received in advance
  3. Capital work in progress
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1
ItemMajor headSub head
(i) Mining RightsNon- Current AssetsFixed Assets- Intangible Assets
Alternatively
Property, Plant & Equipment and Intangible Asset- Intangible Assets
(ii) Income received in advanceCurrent LiabilitiesOther Current Liabilities
(iii) Capital work in progressNon- Current AssetsFixed Assets
Alternatively
Property, Plant & Equipment and Intangible Asset

½ mark each; ½ × 6 = 3 marks

Note: Full credit to be given for only writing Intangible Asset or Fixed Asset under the Sub head of (i) Mining Rights

Q26.2023 Main 67/4/1 · QB-I 313 marks

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 :

  1. Patents
  2. Capital work-in-progress
  3. Unpaid dividend
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1
S.No.ItemsHeadsSub Heads
1PatentsNon Current AssetsFixed Assets—Intangible
Alternatively,
Property, Plant & Equipment & Intangible Assets
2Capital work-in-progressNon Current AssetsFixed Assets
3Unpaid dividendCurrent LiabilitiesOther Current Liabilities

½ X6 =3 marks

Note: Full credit to be given to the examinees for writing only Fixed Assets or Intangible Assets under the sub head of part 1.

Q27.2023 Main 67/5/1 · QB-I 313 marks

Name the major heads and sub-heads under which the following items will be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 :

  1. Goodwill
  2. Debenture Redemption Reserve
  3. Licenses and Franchise
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1
S.N.ItemMajor HeadSub Head
aGoodwillNon-Current AssetsFixed Assets - Intangible
bDebenture Redemption ReserveShareholders’ FundsReserves and Surplus
cLicenses and FranchiseNon-Current AssetsFixed Assets - Intangible

(½ × 6 = 3 marks)

Note –

  • Full Credit to be given for only writing Intangible Asset or Fixed Assets under sub head of part a and c.
  • Full Credit to be given for writing Property, Plant and Equipment and Intangible Assets in lieu of Fixed Assets under sub head of part a and c.
Q28.2023 Supp. 67/C/1 · QB-I 313 marks

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 :

  1. Computer Software
  2. Work-in-Progress
  3. Calls in Advance
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1
ItemMajor HeadSub Head
(a)Computer SoftwareNon Current AssetsFixed Assets- Intangible
Or
Property, Plant & Equipment and Intangible Asset
(b)Work in progressCurrent AssetsInventories
(c)Calls in AdvanceCurrent liabilitiesOther Current liabilities

½ x 6 = 3 marks

Note: Full credit to be given for only writing Intangible Asset or Fixed Asset under the Sub head of (i) Computer Software

Q29.SQP 2025-26 · QB-I 323 marks
  1. Give two examples of Inventory except Raw Materials, Work in Progress, Finished Goods and Stock in Trade.
  2. Where will you disclose the amount of loss on issue of debentures written off out of Statement of Profit and Loss?
  3. Where will you disclose Purchase of Raw Materials in Financial Statement of Company?
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CBSE Sample Question Paper 2025-26 · Marking Scheme
  1. Loose Tools, Stores and Spares.
  2. Finance Cost
  3. Cost of Material Consumed.
Q30.SQP 2026-27 · QB-I 323 marks

Under which main head and sub - head of the financial statements are the following items classified or shown:

  1. Warranty claims payable.
  2. Preliminary expenses written off.
  3. Interest Accrued and Due on Debentures.
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CBSE Sample Question Paper 2026-27 · Marking Scheme
ItemsheadSub - head
I. Warranty claims payableCurrent LiabilitiesOther current liabilities
II. Preliminary expenses written offExpenses in statement of Profit & loss accountOther Expenses
III. Interest Accrued but not Due on Debentures.Current LiabilitiesOther current liabilities

The marking scheme’s item III reads “Interest Accrued but not Due on Debentures” whereas the question says “Interest Accrued and Due”; transcribed as printed.

Part B · Financial Statement Analysis

10. Analysis of Financial Statements

Q1.2026 Main 67/1/1 · QB-I 27(a)1 mark

The process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of Balance Sheet and the Statement of Profit and Loss is called :

  1. Comparative Statement Analysis
  2. Cash Flow Analysis
  3. Financial Analysis
  4. Common Size Analysis
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) Financial Analysis

Q2.2026 Main 67/2/1 · QB-I 30(a)1 mark

In common size income statement, each item is expressed as a percentage of _____.

  1. Total income
  2. Total expenses
  3. Revenue from operations
  4. Net profit after tax
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Revenue from Operations

Q3.2026 Main 67/2/1 · QB-I 30(b)1 mark

The statements which are useful both in intra firm comparison over different years and also in inter firm comparison for the same year or for several years are known as :

  1. Comparative statement
  2. Common size statement
  3. Income statement
  4. Cash flow statement
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) Common size statement

Q4.2026 Main 67/5/1 · QB-I 27(b)1 mark

‘Analysis of financial statements is useful and significant to different users.’ Which of the following users is concerned with a firm’s long-term solvency and survival ?

  1. Labour unions
  2. Trade payables
  3. Finance manager
  4. Lenders
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) Lenders

Q5.2026 Supp. 67/7/1 · QB-I 28(a)1 mark

The tool of analysis of financial statements which indicates the trend and direction of financial position and operating results is :

  1. Ratio Analysis
  2. Cash Flow Analysis
  3. Common Size Statement
  4. Comparative Statement
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) Comparative Statement

Q6.2026 Supp. 67/7/1 · QB-I 28(b)1 mark

The statement which expresses all items of a financial statement as a percentage of some common base is :

  1. Statement of Profit and Loss
  2. Position Statement
  3. Common Size Statement
  4. Comparative Statement
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) Common Size Statement

Q7.2025 Main 67/1/1 · QB-I 27(a)1 mark

The tool of analysis of financial statements which indicates the trend and direction of financial position and operating results is ________.

  1. Comparative Statements
  2. Common Size Statements
  3. Cash Flow Analysis
  4. Ratio Analysis
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Comparative statements

Q8.2025 Main 67/2/1 · QB-I 29(a)1 mark

_________ is not a tool of 'Analysis of Financial Statements'.

  1. Income Statement
  2. Ratio Analysis
  3. Comparative Statements
  4. Cash Flow Statement
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Income Statement

Q9.2025 Main 67/2/1 · QB-I 29(b)1 mark

In 'Common size income statement' each item is expressed as a percentage of _________.

  1. Total Income
  2. Total Expenses
  3. Profit After Tax
  4. Revenue from Operations
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) Revenue from Operations

Q10.2025 Main 67/4/1 · QB-I 29(a)1 mark

The tool of ‘Analysis of Financial Statements’ which indicates the trend and direction of financial position and operating results is :

  1. Ratio Analysis
  2. Cash Flow Analysis
  3. Common Size Statements
  4. Comparative Statements
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Comparative Statements

Q11.2025 Main 67/4/1 · QB-I 29(b)1 mark

While preparing Common Size Statement of Profit and Loss of a company, each item is expressed as a percentage of _________.

  1. Revenue from operations
  2. Total liabilities
  3. Total expenses
  4. Total assets
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) Revenue from Operations

Q12.2025 Main 67/5/1 · QB-I 27(b)1 mark

Which of the following is not a purpose of analysis of financial statements ?

  1. To assess the current profitability and the operational efficiency of the firm.
  2. To ascertain the relative importance of different components of financial position of the firm.
  3. To just study the reports of the company.
  4. To judge the ability of the firm to repay its debt.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) To just study the reports of the company.

Q13.2025 Main 67/6/1 · QB-I 27(a)1 mark

The statement that shows changes in all items of financial statements in absolute and percentage terms over a period of time, for a firm, or between two firms is called _________.

  1. Common Size Statement
  2. Comparative Statement
  3. Cash Flow Statement
  4. Financial Statement
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) Comparative Statement

Q14.2025 Main 67/7/1 · QB-I 27(b)1 mark

The statement which expresses all items of a financial statement as a percentage of some common base is __________.

  1. Comparative Statement
  2. Common Size Statement
  3. Statement of Profit and Loss
  4. Position Statement
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) Common Size Statement

Q15.2025 Supp. 67/S/1 · QB-I 27(a)1 mark

From the following, identify the incorrect statement related to ‘Analysis of Financial Statements’.

  1. Financial statement analysis is used only by the creditors.
  2. Financial statement analysis does not take price level changes into consideration.
  3. Financial statement analysis ignores non-monetary aspects.
  4. Financial statement analysis helps to identify the reasons for change in profitability and financial position of the firm.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) Financial statement analysis is used only by the creditors.

Q16.2024 Main 67/1/1 · QB-I 29(a)1 mark

Analysis of Financial Statements is useful and significant to different users. Which of the following users is particularly interested in the firm’s ability to meet their claims over a very short period of time ?

  1. Labour Unions
  2. Trade Payables
  3. Top Management
  4. Finance Manager
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) Trade Payables

Q17.2024 Main 67/2/1 · QB-I 27(i)1 mark

Which of the following is not an objective of ‘Analysis of Financial Statements’ ?

  1. To assess the current profitability and operational efficiency of the firm.
  2. To ascertain the relative importance of different components of the financial position of the firm.
  3. To consider the impact of price level changes.
  4. To identify the reasons for change in the profitability/financial position of the firm.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) To consider the impact of price level changes.

Q18.2024 Main 67/3/1 · QB-I 29(a)1 mark

Which of the following tools of ‘Analysis of Financial Statements’ indicate the trend and direction of financial position and operating results ?

  1. Comparative statements
  2. Common size statements
  3. Cash flow analysis
  4. Ratio analysis
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) Comparative Statements

Q19.2024 Main 67/4/1 · QB-I 27(a)1 mark

The tool of ‘Analysis of Financial Statements’ which helps to assess the profitability, solvency and efficiency of an enterprise is known as :

  1. Cash flow statement
  2. Comparative statement
  3. Common size statement
  4. Ratio analysis
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) Ratio Analysis

Q20.2024 Main 67/5/1 · QB-I 271 mark

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
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) Statement of Profit & Loss

Q21.2024 Supp. 67/S/1 · QB-I 29(a)1 mark

Which of the following is not a limitation of ‘Analysis of Financial Statements’ ?

  1. It is just a study of the reports of the company.
  2. It does not consider price level changes.
  3. It ascertains the relative importance of different components of the financial position of the firm.
  4. It may be misleading without the knowledge of the changes in accounting procedures followed by a firm.
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) It ascertains the relative importance of different components of the financial position of the firm.

Q22.2023 Main 67/1/1 · QB-I 27(ii)1 mark

Which of the following is a tool of Analysis of Financial Statements :

  1. Cash Flow Statement
  2. Statement of Profit and Loss
  3. Notes to Accounts
  4. Balance Sheet

Choose the correct option :

  1. (i)
  2. (i) and (ii)
  3. (ii)
  4. (i), (ii) and (iv)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) (i)

Q23.2023 Main 67/2/1 · QB-I 27(a)1 mark

Which of the following is a tool of Analysis of Financial Statements ?

  1. Statement of Profit & Loss
  2. Ratio Analysis
  3. Balance Sheet
  4. Notes to Accounts
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Ratio Analysis

Q24.2023 Main 67/3/1 · QB-I 27(ii)1 mark

Which of the following is a tool of ‘Analysis of Financial Statements’ :

  1. Cash Flow Statement
  2. Statement of Profit and Loss
  3. Balance Sheet
  4. Both (a) and (b)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) Cash Flow Statement

Q25.2023 Main 67/5/1 · QB-I 27(a)1 mark

Which of the following are not tools of Financial Analysis ?

(i) Cash Flow Statement
(ii) Income Statement
(iii) Balance Sheet
(iv) Ratio Analysis

  1. (i) and (ii)
  2. (ii) and (iv)
  3. (ii) and (iii)
  4. (iii) and (iv)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) (ii) and (iii)

Q26.2023 Supp. 67/C/1 · QB-I 27(a)1 mark

Which of the following is a tool of ‘Analysis of Financial Statements’ ?

  1. Statement of Profit and Loss
  2. Balance Sheet
  3. Ratio Analysis
  4. Both (a) and (b)
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Ratio Analysis

Q27.2026 Main 67/1/1 · QB-I 323 marks

From the following Balance sheets of Royal Sugar Mills Ltd. as at 31st March, 2024 and 2025, prepare a Comparative Balance Sheet :

ParticularsNote No.31-3-2025 (₹)31-3-2024 (₹)
I. Equity and Liabilities :
1. Shareholders’ Funds
Share Capital24,00,00020,00,000
2. Non-current Liabilities
Long term borrowings12,00,00010,00,000
3. Current liabilities
Trade Payables6,00,0005,00,000
Total42,00,00035,00,000
II. Assets :
1. Non-Current Assets
Property, plant and equipment and intangible assets30,00,00025,00,000
2. Current Assets
(a) Inventories2,00,0004,00,000
(b) Cash & Cash equivalents10,00,0006,00,000
Total42,00,00035,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Comparative Balance Sheet of Royal Sugar Mills Ltd.
as at 31st March 2024 and 2025

Particulars31.3.2024 (₹)31.3.2025 (₹)Absolute Change (₹)Percentage Change (%)Marks
I. Equity and Liabilities
1. Shareholders Funds
Share Capital
20,00,00024,00,0004,00,00020½
2. Non-Current Liabilities
Long term borrowings
10,00,00012,00,0002,00,00020½
3. Current Liabilities
Trade Payables
5,00,0006,00,0001,00,00020½
Total35,00,00042,00,0007,00,00020
II. Assets
1. Non-Current Assets
Property, plant and equipment and intangible Assets
25,00,00030,00,0005,00,00020½
2. Current Assets
(a) Inventories
4,00,0002,00,000(2,00,000)(50)½
(b) Cash & Cash equivalents6,00,00010,00,0004,00,00066.67½
Total35,00,00042,00,0007,00,00020

(= 3 marks)

Q28.2026 Main 67/2/1 · QB-I 323 marks

From the following balance sheet of Benkley Ltd., prepare a Comparative Balance Sheet :

Balance Sheet of Benkley Ltd. as at 31st March, 2025

ParticularsNote No.31.3.2025 (₹)31.3.2024 (₹)
I. Equity and Liabilities :
1. Shareholders' funds
Share capital

18,00,000

12,00,000
2. Non-current liabilities
Long term borrowings

4,50,000

3,00,000
3. Current liabilities
Short term borrowings

4,50,000

3,00,000
Total27,00,00018,00,000
II. Assets
1. Non-current assets
Property, Plant and Equipment and Intangible assets

18,00,000

6,00,000
2. Current Assets
(a) Inventories
(b) Cash and Cash Equivalents

6,00,000
3,00,000

6,00,000
6,00,000
Total27,00,00018,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Comparative Balance Sheet of Benkley Ltd.
as at 31st March, 2024 and 31st March, 2025

ParticularsNote No.2023-24 (₹)2024-25 (₹)Absolute Change (₹)Percentage Change (%)
I. Equity and Liabilities:
1. Shareholders' Funds
(a) Share Capital
12,00,00018,00,0006,00,00050½
2. Non-current liabilities
(a) Long term borrowings
3,00,0004,50,0001,50,00050½
3. Current Liabilities
(a) Short term borrowings
3,00,0004,50,0001,50,00050½
Total18,00,00027,00,0009,00,00050
II. Assets
1. Non-current Assets
(a) Property, Plant and Equipment and Intangible Assets
6,00,00018,00,00012,00,000200½
2. Current Assets
(a) Inventories
6,00,0006,00,000--½
(b) Cash and Cash Equivalents6,00,0003,00,000(3,00,000)(50)½
Total18,00,00027,00,0009,00,00050

(3 marks)

Q29.2026 Main 67/3/1 · QB-I 323 marks

From the following information of Dholakia Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2024 and 2025 :

ParticularsNote No.2024 – 252023 – 24
Revenue from operations₹30,00,000₹15,00,000
Cost of revenue from operations80% of revenue from operations80% of revenue from operations
Other Expenses₹2,40,000₹1,20,000
Tax Rate50%50%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Comparative Statement of Profit & Loss of Dholakia Ltd.
for the years ended 31st March 2024 and 2025

Particulars2023-24 (₹)2024-25 (₹)Absolute Change (₹)Percentage ChangeMarks
Revenue from Operations15,00,00030,00,00015,00,000100½
Less: Expenses
Cost of Revenue from Operations12,00,00024,00,00012,00,000100½
Other Expenses1,20,0002,40,0001,20,000100½
Total Expenses13,20,00026,40,00013,20,000100
Profit Before Tax1,80,0003,60,0001,80,000100½
Less Tax @ 50%90,0001,80,00090,000100½
Profit After Tax90,0001,80,00090,000100½

(= 3 Marks)

Q30.2026 Main 67/4/1 · QB-I 323 marks

From the following information, prepare a Comparative Statement of Profit and Loss of AX Ltd. for the year ended 31st March, 2025 :

Particulars2024 – 25 (₹)2023 – 24 (₹)
Revenue from Operations50,00,00025,00,000
Cost of Revenue from Operations15,00,0006,00,000
Other Expenses5,00,0004,00,000
Tax Rate 50%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Comparative Statement of Profit and Loss of AX Ltd.
for the years ended 31st March, 2024 and 31st March, 2025

Particulars2023-24 (₹)2024-25 (₹)Absolute Change (₹)% ChangeMarks
Revenue from Operations25,00,00050,00,00025,00,000100½
Less Expenses:
Cost of Revenue from operations6,00,00015,00,0009,00,000150½
Other expenses4,00,0005,00,0001,00,00025½
Total expenses10,00,00020,00,00010,00,000100
Profit before tax15,00,00030,00,00015,00,000100½
Less Tax @50%7,50,00015,00,0007,50,000100½
Profit after tax7,50,00015,00,0007,50,000100½

= 3 Marks

Q31.2026 Main 67/5/1 · QB-I 313 marks

The following information was extracted from the Statement of Profit and Loss of Chaman Ltd. for the year ended 31st March, 2025 :

ParticularsNote No.31.3.2025 (₹)31.3.2024 (₹)
Revenue from operations40,00,00032,00,000
Employee Benefit Expenses20,00,00016,00,000
Other Expenses2,00,0004,00,000
Tax Rate 50%

Prepare a Comparative Statement of Profit and Loss.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Chaman Ltd.
Comparative Statement of Profit and Loss
for the years ended 31 March, 2024 & 2025

Particulars31.3.2024 (₹)31.3.2025 (₹)Absolute Change (₹)Percentage Change %Marks
Revenue from operations32,00,00040,00,0008,00,00025½
Total Revenue32,00,00040,00,0008,00,00025
Less: Expenses
Employee Benefit Expenses16,00,00020,00,0004,00,00025½
Other Expenses4,00,0002,00,000(2,00,000)(50)½
Total Expenses20,00,00022,00,0002,00,00010
Profit before tax12,00,00018,00,0006,00,00050½
Less: Tax@50%6,00,0009,00,0003,00,00050½
Profit after tax6,00,0009,00,0003,00,00050½

(3 Marks)

Q32.2026 Supp. 67/7/1 · QB-I 313 marks

From the following Statement of Profit and Loss of Horizon Ltd., for the year ended 31st March, 2025, prepare a Common Size Statement of Profit and Loss :

ParticularsNote No.2024 − 252023 − 24
Revenue from operations₹ 20,00,000₹ 10,00,000
Cost of materials consumed₹ 10,00,000₹ 5,00,000
Employee benefit expenses₹ 5,00,000₹ 2,50,000
Income Tax Rate40%30%
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Horizon Ltd.
Common Size Statement of Profit and Loss
for the years ended 31st March, 2024 and 31st March, 2025

ParticularsAbsolute AmountsPercentage of Revenue from operations
2023-24 (₹)2024-25 (₹)2023-24 (%)2024-25 (%)
I. Revenue from Operations (½)10,00,00020,00,000100100
II. Less Expenses:
Cost of materials consumed (½)5,00,00010,00,0005050
Employee benefit expenses (½)2,50,0005,00,0002525
III. Profit before tax (½)2,50,0005,00,0002525
IV. Less Income tax (½)75,0002,00,0007.510
V. Profit after tax (½)1,75,0003,00,00017.515

(½ × 6 = 3 marks)

Q33.2025 Main 67/1/1 · QB-I 323 marks

From the following information of CN Ltd., prepare a common size Statement of Profit and Loss for the years ended 31st March, 2023 and 31st March, 2024 :

Particulars2023-24 (₹)2022-23 (₹)
Revenue from operations40,00,00020,00,000
Purchase of stock-in-trade8,00,0004,00,000
Other expenses4,00,0002,00,000
Tax @ 50%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Common Size Statement of Profit and Loss of CN Ltd. for the years ended 31st March, 2023 and 31st March, 2024

ParticularsAbsolute AmountsPercentage of Revenue from operationsMarks
2022-23 (₹)2023-24 (₹)2022-23 (%)2023-24 (%)
Revenue from Operations20,00,00040,00,000100100½
Less Expenses:
Purchase of stock in trade4,00,0008,00,0002020½
Other expenses2,00,0004,00,0001010½
Total expenses6,00,00012,00,0003030
Profit before tax14,00,00028,00,0007070½
Less Tax @50%7,00,00014,00,0003535½
Profit after tax7,00,00014,00,0003535½

(3 marks)

Q34.2025 Main 67/2/1 · QB-I 323 marks

From the following information, prepare a Comparative Statement of Profit and Loss of Smart Ltd. :

Particulars2023-24 (₹)2022-23 (₹)
Revenue from operations24,00,00020,00,000
Cost of materials consumed6,00,0004,00,000
Employee benefit expenses4,00,0002,00,000
Tax Rate 50%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Comparative Statement of Profit and Loss of Smart Ltd.
for the years ended 31st March, 2023 and 31st March, 2024

Particulars2022-23 (₹)2023-24 (₹)Absolute increase or decreasePercentage increase or decreaseMarks
Revenue from Operations20,00,00024,00,0004,00,00020½
Less Expenses:
Cost of materials consumed4,00,0006,00,0002,00,00050½
Employee benefit expenses2,00,0004,00,0002,00,000100½
Total expenses6,00,00010,00,0004,00,00066.67
Profit before tax14,00,00014,00,000NILNIL½
Less Tax @50%7,00,0007,00,000NILNIL½
Profit after tax7,00,0007,00,000NILNIL½

(3 marks)

Q35.2025 Main 67/4/1 · QB-I 323 marks

From the following information of KL Ltd., prepare a Common Size Statement of Profit and Loss for the year ended 31st March, 2024 :

ParticularsAmount (₹)
Revenue from Operations20,00,000
Other Income5,00,000
Cost of Materials Consumed12,00,000
Employee Benefit Expenses6,00,000
Depreciation2,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

In the books of KL Ltd.
Common Size Income Statement
for the year ended 31st March 2024

ParticularsAbsolute Amounts 31.3.2024 ₹% of Revenue from Operations 31.3.2024
I. INCOME
Revenue from Operations20,00,000100(½)
Other Income5,00,00025(½)
TOTAL REVENUE25,00,000125
II. EXPENSES
Cost of Materials Consumed12,00,00060(½)
Employee Benefit Expenses6,00,00030(½)
Depreciation2,00,00010(½)
TOTAL EXPENSES20,00,000100
III. Profit Before Tax (I-II)5,00,00025(½)

= 3 marks

Q36.2025 Main 67/5/1 · QB-I 323 marks

From the following Balance Sheet of Nayak Ltd. prepare a Comparative Balance Sheet :

Balance Sheet of Nayak Ltd. as at 31st March, 2024

Particulars31.3.2024 (₹)31.3.2023 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
Share Capital6,00,0004,00,000
2. Non-Current Liabilities
Long-term borrowings2,25,0001,50,000
3. Current Liabilities
Trade Payables75,00050,000
Total9,00,0006,00,000
II – Assets :
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets6,75,0004,50,000
2. Current Assets
(a) Inventories1,50,0001,00,000
(b) Cash and Cash Equivalents75,00050,000
Total9,00,0006,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Comparative Balance Sheet of Nayak Ltd.
As at 31st March 2024

ParticularsNote No.31.3.2023 (₹)31.3.2024 (₹)Absolute Change (₹)Percentage Change (%)Marks
I. Equity & Liabilities
1. Shareholder’s Fund
Share Capital
4,00,0006,00,0002,00,00050½
2. Non-Current liabilities
Long Term Borrowings
1,50,0002,25,00075,00050½
3. Current Liabilities
Trade Payables
50,00075,00025,00050½
Total6,00,0009,00,0003,00,00050
II. Assets
1. Non-Current Assets
Property, Plant & Equipment & Intangible Assets
4,50,0006,75,0002,25,00050½
2. Current Assets
Inventories
1,00,0001,50,00050,00050½
Cash & Cash Equivalents50,00075,00025,00050½
Total6,00,0009,00,0003,00,00050

(=3 marks)

Q37.2025 Main 67/6/1 · QB-I 323 marks

From the following information, prepare a Common Size Statement of Profit and Loss of QLM Ltd. for the year ended 31st March, 2023 and 31st March, 2024.

Particulars2022 – 23 (₹)2023 – 24 (₹)
Revenue from operations40,00,00050,00,000
Cost of revenue from operations20,00,00025,00,000
Other expenses4,00,0005,00,000
Tax Rate 50%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Common Size Statement of Profit and Loss of QLM Ltd.
for the years ended 31 March 2023 and 2024

ParticularsNote No.Absolute Amounts (₹)Percentage of Revenue from Operations (%)Marks
2022-232023-242022-232023-24
Revenue from Operations40,00,00050,00,000100100½
Less: Expenses:
Cost of Revenue from Operations20,00,00025,00,0005050½
Other Expenses4,00,0005,00,0001010½
Total Expenses24,00,00030,00,0006060
Profit before Tax16,00,00020,00,0004040½
Less: Tax @50%8,00,00010,00,0002020½
Profit after Tax8,00,00010,00,0002020½

(= 3 marks)

Q38.2025 Main 67/7/1 · QB-I 323 marks

From the following information, prepare a Comparative Statement of Profit and Loss of X Ltd. for the year ended 31st March, 2024.

Particulars2023 – 242022 – 23
Revenue from operations₹40,00,000₹20,00,000
Cost of revenue from operations60% of Revenue from operations50% of Revenue from operations
Employees Benefit Expenses₹8,00,000₹6,00,000
Tax Rate25%25%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Comparative Statement of Profit & Loss of X Ltd.
for the year ended 31st March, 2023 & 31st March, 2024

ParticularsNote No.2022-23 (₹)2023-24 (₹)Absolute Change (₹)% ChangeMarks
I. Revenue from Operations20,00,00040,00,00020,00,000100½
Cost of revenue from operations10,00,00024,00,00014,00,000140½
Employees Benefit Expenses6,00,0008,00,0002,00,00033.33½
II. Total Expenses16,00,00032,00,00016,00,000100-
III. Profit before Tax (I-II)4,00,0008,00,0004,00,000100½
IV. Tax @25%1,00,0002,00,0001,00,000100½
V. Profit after Tax (III-IV)3,00,0006,00,0003,00,000100½

(= 3 Marks)

Q39.2025 Supp. 67/S/1 · QB-I 323 marks

From the following information, prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2023 and 2024 :

ParticularsNote No.2023 − 24 (₹)2022 − 23 (₹)
Revenue from operations50,00,00040,00,000
Employee benefit expenses7,50,0005,00,000
Other expenses27,50,00020,00,000

Tax Rate 50%

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Comparative Statement of Profit and Loss
for the years ended 31st March, 2023 and 31st March, 2024

Particulars2022-23 (₹)2023-24 (₹)Absolute increase or decrease (₹)Percentage increase or decrease %Marks
I. Revenue from Operations40,00,00050,00,00010,00,00025½
Less: Expenses
Employee benefit expenses5,00,0007,50,0002,50,00050½
Other Expenses20,00,00027,50,0007,50,00037.5½
II. Total expenses25,00,00035,00,00010,00,00040½
Profit before tax (I-II)15,00,00015,00,000NILNIL½
Less: Tax @50%7,50,0007,50,000NILNIL
Profit after tax7,50,0007,50,000NILNIL½

3 marks

Q40.2023 Main 67/2/1 · QB-I 323 marks

'It is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of balance sheet and the statement of profit and loss.'

Identify the process and state any two objectives of the identified process.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Financial Statement Analysis [1]

Objectives of Financial Statements Analysis (Any two) [2]

  1. To assess the current profitability and operational efficiency of the firm as a whole as well as its different departments so as to judge the financial health of the firm.
  2. To ascertain the relative importance of different components of the financial position of the firm.
  3. To identify the reasons for change in the profitability/financial position of the firm.
  4. To judge the ability of the firm to repay its debt and assessing the short-term as well as the long-term liquidity position of the firm.

(1+2 = 3 Marks)

Q41.2022 Main 67/1/1 · QB-I 11(a)3 marks

From the following information, prepare Comparative statement of Profit and Loss for the year ended 31st March 2021.

Particulars2020-21 ₹2019-20 ₹
Revenue from Operations4,00,0002,00,000
Other Income80,00040,000
Expenses – 50% of Revenue from operations
Tax Rate 50%
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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Comparative Statement of Profit and Loss for the years ended March 31, 2021

Particulars2019–20 (₹)2020–21 (₹)Absolute Change (₹)% ChangeMarks
I Revenue from Operations2,00,0004,00,0002,00,000100½
II Other Income40,00080,00040,000100½
III Total Revenue (I+II)2,40,0004,80,0002,40,000100½
IV Expenses1,00,0002,00,0001,00,000100½
V Profit before Tax1,40,0002,80,0001,40,000100½
VI Less: Tax @50%70,0001,40,00070,000100½
VII Profit After Tax70,0001,40,00070,000100= 3
Q42.2022 Main 67/1/1 · QB-I 11(b)3 marks

Prepare a 'Common Size statement of Profit and Loss' of Birla Ltd. for the year ended 31st March, 2021 from the following information :

Particulars2020-21 (₹)2019-20 (₹)
Revenue from Operations20,00,00010,00,000
Purchase of stock in trade4,00,0002,00,000
Other expenses40,00020,000
Tax Rate @ 50%
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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Common Size Statement of Profit and Loss of Birla Ltd For the years ended on March 31, 2020 and 2021

ParticularsAbsolute Amounts 31st March, 2020 (₹)Absolute Amounts 31st March, 2021 (₹)% of Revenue from Operations 31st March, 2020% of Revenue from Operations 31st March, 2021Marks
Revenue from Operations10,00,00020,00,000100100½
Less : Expenses
Purchase of stock-in-trade2,00,0004,00,0002020½
Other Expenses20,00040,00022½
Total Expenses2,20,0004,40,0002222½
Profit before Tax7,80,00015,60,0007878½
Less : Tax @ 50%3,90,0007,80,0003939½
Profit after Tax3,90,0007,80,0003939= 3
Q43.2022 Main 67/2/1 · QB-I 11(a)3 marks

From the following information of Shruti Ltd, prepare Comparative Statement of Profit and Loss :

Particulars2020 – 21
₹
2019 – 20
₹
Revenue from operations15,00,00010,00,000
Expenses3,00,0002,00,000
Tax Rate 30%
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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Comparative statement of Profit & Loss for the years ended 31st March, 2020 and 2021

Particulars2019-20 (₹)2020-21 (₹)Absolute Change (₹)% ChangeMarks
Revenue from operations10,00,00015,00,0005,00,00050½
Less expenses2,00,0003,00,0001,00,00050½
Profit before Tax8,00,00012,00,0004,00,00050½
Less : Tax 30%2,40,0003,60,0001,20,00050½
Profit after Tax5,60,0008,40,0002,80,000501

= 3 marks

Q44.2022 Main 67/2/1 · QB-I 11(b)3 marks

From the following Balance Sheet of Avinash Ltd. as on 31st March, 2021, prepare a Comparative Balance Sheet :

Balance Sheet of Avinash Ltd. as at 31st March, 2021

ParticularsNote No.31.3.2021
₹
31.3.2020
₹
I – Equity and Liabilities :
1. Shareholders’ Funds
Share Capital30,00,00020,00,000
2. Non-Current Liabilities
Long-term Borrowings——
3. Current Liabilities
Trade Payables6,00,0005,00,000
Total36,00,00025,00,000
II – Assets :
1. Non-Current Assets
Fixed Assets24,00,00015,00,000
2. Current Assets
Inventories12,00,00010,00,000
Total36,00,00025,00,000
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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Avinash Ltd.
Comparative Balance Sheet as at 31st March, 2020 and 2021

Particulars31.3.2020 (₹)31.3.2021 (₹)Absolute Change (₹)Percentage ChangeMarks
(I) Equity and Liabilities
1. Shareholder’s funds20,00,00030,00,00010,00,00050½
2. Current Liabilities5,00,0006,00,0001,00,00020½
25,00,00036,00,00011,00,00044½
(II) Assets
1. Non-Current Assets15,00,00024,00,0009,00,00060½
2. Current Assets10,00,00012,00,0002,00,00020½
25,00,00036,00,00011,00,00044½

= 3 marks

Q45.2022 Main 67/3/1 · QB-I 11(a)3 marks

From the following information, prepare a ‘Common Size Statement of Profit and Loss’ of K K Ltd. for the year ended 31.3.2021 and 31.3.2022:

Particulars2021-2022
Amount ₹
2020-2021
Amount ₹
Revenue from operations20,00,00015,00,000
Other Income2,00,0001,50,000
Expenses4,00,0003,00,000
Tax Rate 50%
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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

K K Ltd.
Common-size Statement of Profit and Loss
for the year ended 31.3.2021 and 31.3.2022

Particulars2020–21 (₹)2021–22 (₹)% of Revenue from Operations 2020–21% of Revenue from Operations 2021–22Marks
Revenue from Operations15,00,00020,00,000100100½
Other Income1,50,0002,00,0001010½
Total Revenue16,50,00022,00,000110110½
Less : Expenses3,00,0004,00,0002020½
Profit before Tax13,50,00018,00,0009090
Less : Tax @ 50%6,75,0009,00,0004545½
Profit after Tax6,75,0009,00,0004545½

= 3 Marks

Q46.2022 Main 67/3/1 · QB-I 11(b)3 marks

From the following Balance Sheet of J.J. Ltd. prepare a Comparative Balance Sheet as at 31.3.2022:

J.J. Ltd.
Balance Sheet as at 31.3.2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I. EQUITY AND LIABILITIES :
1. Shareholders’ Funds :
(a) Equity Share Capital25,00,00020,00,000
(b) Reserves and Surplus5,00,0004,00,000
2. Non-Current Liabilities :
Long-term borrowings10,00,00010,00,000
3. Current Liabilities :
Trade Payables2,00,0001,00,000
Total :42,00,00035,00,000
II. ASSETS :
1. Non-Current Assets :
Fixed Assets30,00,00025,00,000
2. Current Assets :
Inventories12,00,00010,00,000
Total :42,00,00035,00,000
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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

J J Ltd.
Comparative Balance Sheet as at 31.3.2021 and 31.3.2022

Particulars31.3.2021 (₹)31.3.2022 (₹)Absolute Increase/ Decrease (₹)% of Increase/ DecreaseMarks
I. Equity and Liabilities :
1. Shareholders’ Funds :
(a) Equity Share Capital20,00,00025,00,0005,00,00025½
(b) Reserves and Surplus4,00,0005,00,0001,00,00025½
2. Non-Current Liabilities :
Long-term Borrowings10,00,00010,00,000——
3. Current Liabilities :
Trade Payables1,00,0002,00,0001,00,000100½
Total35,00,00042,00,0007,00,00020½
II. Assets :
1. Non-Current Assets :
Fixed Assets25,00,00030,00,0005,00,00020½
2. Current Assets :
Inventories10,00,00012,00,0002,00,00020½
Total35,00,00042,00,0007,00,00020

= 3 Marks

Q47.2022 Main 67/4/1 · QB-I 11(a)3 marks

Prepare a ‘Common Size Balance Sheet’ from the following Balance Sheet of Shree Ltd. as at 31st March, 2022 :

Balance Sheet of Shree Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
Share Capital40,00,00030,00,000
2. Non-Current Liabilities
Long-term Borrowings20,00,00015,00,000
3. Current Liabilities
Trade Payables20,00,0005,00,000
Total80,00,00050,00,000
II – Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets20,00,00015,00,000
(b) Intangible Assets40,00,00010,00,000
2. Current Assets
Inventories20,00,00025,00,000
Total80,00,00050,00,000
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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Shree Ltd.

Common Size Balance Sheet as at 31st March, 2021 and 2022

Particulars31-3-2021 (₹)31-3-2022 (₹)% age of total assets 31-3-2021% age of total assets 31-3-2022Marks
(I) EQUITY and LIABILITIES
1. Shareholder’s funds
Share Capital30,00,00040,00,0006050½
2. Non-Current Liabilities
Long Term Borrowings15,00,00020,00,0003025½
3. Current Liabilities
Trade Payables5,00,00020,00,0001025½
Total50,00,00080,00,000100100
(II) ASSETS:
1. Non-Current Assets
Fixed Assets –
(a) Tangible assets15,00,00020,00,0003025½
(b) Intangible Assets10,00,00040,00,0002050½
2. Current Assets
Inventories25,00,00020,00,0005025½
Total50,00,00080,00,000100100

(= 3 marks)

Q48.2022 Main 67/4/1 · QB-I 11(b)3 marks

From the following Balance Sheet of Jeevan Ltd. as at 31st March, 2022, prepare a Comparative Balance Sheet :

Balance Sheet of Jeevan Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
Share Capital15,00,00010,00,000
2. Non-Current Liabilities
Long-term Borrowings6,00,0005,00,000
3. Current Liabilities
Trade Payables12,00,00010,00,000
Total33,00,00025,00,000
II – Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets18,00,00012,00,000
(b) Intangible Assets10,00,0008,00,000
2. Current Assets
Cash and Cash Equivalents5,00,0005,00,000
Total33,00,00025,00,000
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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Jeevan Ltd.

Comparative Balance Sheet as at 31st March, 2021 and 2022

Particulars31-3-2021 (₹)31-3-2022 (₹)Absolute Change (₹)Percentage Change (%)Marks
(I) Equity & Liabilities:
1. Shareholder’s funds
Share Capital10,00,00015,00,0005,00,00050½
2. Non-Current Liabilities
Long-Term Borrowings5,00,0006,00,0001,00,00020½
3. Current Liabilities
Trade Payables10,00,00012,00,0002,00,00020½
Total25,00,00033,00,0008,00,00032
(II) Assets :
1. Non-Current Assets
Fixed Assets –
(a) Tangible assets12,00,00018,00,0006,00,00050½
(b) Intangible Assets8,00,00010,00,0002,00,00025½
2. Current Assets
Cash & Cash Equivalents5,00,0005,00,000--------
Total25,00,00033,00,0008,00,00032½

(= 3 marks)

Q49.2022 Main 67/5/1 · QB-I 11(a)3 marks

From the information extracted from the Statement of Profit and Loss prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2021 :

Particulars2020-21 (₹)2019-20 (₹)
Revenue from operations7,20,0004,00,000
Expenses5,00,0002,00,000
Tax Rate @ 50%
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Comparative Statement of Profit and Loss
for the year ended March 31, 2021

Particulars2019–20 (₹)2020–21 (₹)Absolute Increase/ Decrease (₹)% of Increase/ DecreaseMarks
I. Revenue from Operations4,00,0007,20,0003,20,00080½
II. Less : Expenses2,00,0005,00,0003,00,000150½
III. Profit before Tax (I – II)2,00,0002,20,00020,00010½
IV. Less : Tax @ 50%1,00,0001,10,00010,00010½
V. Profit after Tax (III – IV)1,00,0001,10,00010,000101

(= 3 marks)

Q50.2022 Main 67/5/1 · QB-I 11(b)3 marks

From the following Balance Sheet of Rohit Ltd., prepare a Common Size Balance Sheet :

Balance Sheet of Rohit Ltd.
as at 31st March, 2021

ParticularsNote No.31st March, 2021 (₹)31st March, 2020 (₹)
I. Equity and Liabilities
1. Shareholders' Funds3,20,0001,60,000
2. Current Liabilities80,00040,000
Total4,00,0002,00,000
II. Assets
1. Non Current Assets3,00,0001,50,000
2. Current Assets1,00,00050,000
Total4,00,0002,00,000
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Common Size Balance Sheet
as on 31st March 2020 and 2021

Particulars31.03.2020 (₹)31.03.2021 (₹)% of Total Assets% of Total AssetsMarks
I. Equity and Liabilities:
1. Shareholders' Funds1,60,0003,20,0008080½
2. Current Liabilities40,00080,0002020½
2,00,0004,00,000100100½
II. Assets:
1. Fixed Assets1,50,0003,00,0007575½
2. Current Assets50,0001,00,0002525½
2,00,0004,00,000100100½

(= 3 Marks)

Q51.2022 Supp. 67/6/1 · QB-I 11(a)3 marks

From the following Statement of Profit and Loss of Raman Ltd, prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2022 :

ParticularsNote No.2021 – 22 (₹)2020 – 21 (₹)
Revenue from Operations26,00,00020,00,000
Employee Benefit Expenses6,00,0005,00,000
Other Expenses12,00,00010,00,000
Tax Rate 50%
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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Comparative Statement of Profit and Loss for the year ended March 31, 2022

Particulars2020–21 (₹)2021–22 (₹)Absolute Increase/ Decrease (₹)% of Increase/ DecreaseMarks
I. Revenue from Operations20,00,00026,00,0006,00,00030½
II. Less: Expenses
(a) Employee benefit expenses
5,00,0006,00,0001,00,00020½
(b) Other expenses10,00,00012,00,0002,00,00020½
III. Profit before Tax (I – II)5,00,0008,00,0003,00,00060½
IV. Less : Tax @ 50%2,50,0004,00,0001,50,00060½
V. Profit after Tax (III – IV)2,50,0004,00,0001,50,00060½

= 3 marks

Q52.2022 Supp. 67/6/1 · QB-I 11(b)3 marks

From the following information, prepare Common Size Statement of Profit and Loss for the year ended 31st March, 2021 and 31st March, 2022 :

ParticularsNote No.2021 – 22 (₹)2020 – 21 (₹)
Revenue from Operations5,00,0002,00,000
Other Income3,00,00050,000
Employee Benefit Expenses4,00,0001,50,000
Other Expenses10,00010,000
Income Tax @ 50%
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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Common Size Statement of Profit and Loss for the year ended March 31, 2021 and 2022

Particulars2020–21 (₹)2021–22 (₹)% of Revenue 2020–21% of Revenue from Operation 2021–22Marks
Revenue from Operations2,00,0005,00,000100100
Add: Other Income50,0003,00,0002560½
Total Revenue2,50,0008,00,000125160½
Less : Expenses
Employee benefit expenses
1,50,0004,00,0007580½
Other Expenses10,00010,00052½
Profit before Tax90,0003,90,0004578½
Less : Tax @ 50%45,0001,95,00022.539½
Profit after Tax45,0001,95,00022.539

= 3 marks

Q53.SQP 2025-26 · QB-I 31(a)3 marks

Complete the following Comparative Balance Sheet as at March 31, 2024 and Match 31, 2025

PARTICULARS31st March 202431st March, 2025Absolute ChangePercentage Change
Shareholders' Funds6,00,000??3,00,000??
Non-current Liabilities3,00,000??NIL??
Current Liabilities??3,00,0002,00,000??
TOTAL????????
Non-current Assets7,00,000????50
Current Assets????????
TOTAL????????
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CBSE Sample Question Paper 2025-26 · Marking Scheme

Comparative Balance Sheet as at March 31, 2024 and Match 31, 2025

PARTICULARS31st March 202431st March, 2025Absolute ChangePercentage Change
Shareholders' Funds6,00,0009,00,0003.00.00050
Non-current Liabilities3,00,0003,00,000NIL--
Current Liabilities1,00,0003,00,0002,00,000200
TOTAL10,00,00015,00,0005,00,00050
Non-current Assets7,00,00010,50,0003,50,00050
Current Assets3,00,0004,50,0001,50,00050
TOTAL10,00,00015,00,0005,00,00050
Q54.SQP 2025-26 · QB-I 31(b)3 marks

Prepare Common Size Statement of Profit and Loss for the year ended March 31, 2025

PARTICULARS31st March, 2025
Revenue from Operations40,00,000
Other Expenses4,00,000
Other Income6,00,000
Employee Benefit Expenses8,00,000
Purchases of Stock in Trade10,00,000
Change in Inventory(2,00,000)
Tax Rate50 %
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CBSE Sample Question Paper 2025-26 · Marking Scheme

Common Size Statement of Profit and Loss for the year ended March 31, 2025

PARTICULARS31st March, 2025Percentage of RFO
Revenue from Operations40,00,000100
Other Income6,00,00015
Total Income46,00,000115
Purchases of Stock in Trade10,00,00025
Change in Inventory(2,00,000)(5)
Employee Benefit Expenses8,00,00020
Other Expenses4,00,00010
Total Expenses20,00,00050
Profit Before Tax26,00,00065
Less :- Tax13,00,00032.5
Profit after Tax13,00,00032.5
Q55.SQP 2026-27 · QB-I 31(a)3 marks

Prepare a Comparative Statement of Profit and Loss of Uttu Machineries Ltd. for the year ended 31st March 2026 from the following information:

PARTICULARS31st March 2026 (₹)31st March 2025 (₹)
Revenue From Operations40,00,00020,00,000
Cost of Revenue from Operations4,00,0002,00,000
Wages6,00,0004,00,000
Interest paid1,00,0001,00,000
Tax Rate50%50%
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CBSE Sample Question Paper 2026-27 · Marking Scheme

Comparative Income statement
for the year ended March 31, 2026

Particulars2025 (₹)2026 (₹)Absolute Change (₹)% Change
Revenue from operations20,00,00040,00,00020,00,000100
Expenses
Cost of Revenue from operations
Interest paid

2,00,000
1,00,000

4,00,000
1,00,000

2,00,000
------

100
----
Total expenses3,00,0005,00,0002,00,00066.67
IV.Net profit before tax (I-III)17,00,00035,00,00018,00,000105.88
V.Less: Income tax8,50,00017,50,0009,00,000105.88
Net profit after Tax (IV-V)8,50,00017,50,0009,00,000105.88
Q56.SQP 2026-27 · QB-I 31(b)3 marks

Prepare Common Size Statement of Profit and Loss for the year ended March 31, 2026

PARTICULARS31st March 2026 (₹)
Revenue from Operations6,00,000
Indirect Expense25% of gross profit
Cost of Revenue from Operations4,00,000
Other incomes30,000
Income tax30%
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CBSE Sample Question Paper 2026-27 · Marking Scheme

Common Size Statement of Profit and Loss
for the year ended March 31, 2026

Particulars2026 (₹)% Change of Revenue from operation
Revenue from operations6,00,000100
Other incomes30,0005
Total Revenue6,30,000105
Expenses
Cost of Revenue from operations
Indirect Expenses (2,00,000 x 25%)

4,00,000
50,000

66.67
8.33
Total expenses4,50,00075
IV.Net profit before tax (I-III)1,80,00030
V.Less: Income tax54,0009
Net profit after Tax (1V-V)1,26,00021
Q57.2024 Main 67/1/1 · QB-I 33(a)4 marks

From the given Balance Sheet of Geox Ltd., prepare Common Size Balance Sheet :

Balance Sheet of Geox Ltd. as at 31st March, 2023

ParticularsNote No.31.3.2023 ₹31.3.2022 ₹
I – Equity and Liabilities :
1. Shareholders’ Funds
 (a) Share Capital4,00,0002,50,000
2. Non-Current Liabilities
 (a) Long-term Borrowings2,00,0001,50,000
3. Current Liabilities
 (a) Trade Payables2,00,0001,00,000
Total8,00,0005,00,000
II – Assets :
1. Non-Current Assets
 (a) Fixed Assets/Property, Plant and Equipment and Intangible Assets4,00,0003,50,000
2. Current Assets
 (a) Inventories2,00,00070,000
 (b) Trade Receivables2,00,00080,000
Total8,00,0005,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Geox Ltd
Common size Balance Sheet
As at March 31, 2022 and March 31, 2023

ParticularsAbsolute AmountsPercentage of Total Assets
31.3.2022 (₹)31.3.2023 (₹)31.3.2022 (%)31.3.2023 (%)
I - Equity and Liabilities:
1. Shareholders’ Funds
(a) Share Capital2,50,0004,00,0005050(½)
2. Non- Current Liabilities
(a) Long Term Borrowings1,50,0002,00,0003025(½)
3. Current Liabilities
(a) Trade Payables1,00,0002,00,0002025(½)
TOTAL5,00,0008,00,000100100(½)
II – Assets:
1. Non – Current Assets
(a) Fixed Assets/Property, Plant and Equipment and Intangible Assets3,50,0004,00,0007050(½)
2. Current Assets
(a) Inventories70,0002,00,0001425(½)
(b) Trade Receivables80,0002,00,0001625(½)
TOTAL5,00,0008,00,000100100(½)

= 4 marks

Q58.2024 Main 67/1/1 · QB-I 33(b)4 marks

From the following information, prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2022 and 2023 :

ParticularsNote No.2022 – 23 (₹)2021 – 22 (₹)
Revenue from operations10,00,0008,00,000
Employee benefit expenses2,50,0001,00,000
Other expenses5,50,0004,00,000
Tax rate 50%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Comparative Statement of Profit & Loss
For the year ended March 31, 2023

Particulars2021- 22 (₹)2022-23 (₹)Absolute Increase or Decrease (₹)Percentage Increase or Decrease(%)
I Revenue from Operations8,00,00010,00,0002,00,00025(½)
II Less: Expenses(½)
Employee Benefit Expenses1,00,0002,50,0001,50,000150(½)
Other Expenses4,00,0005,50,0001,50,00037.5
III Profit before Tax3,00,0002,00,000(1,00,000)(33.3)(1)
IV Less: Tax @ 50%1,50,0001,00,000(50,000)(33.3)(½)
V Profit after Tax1,50,0001,00,000(50,000)(33.3)(1)

= 4 marks

Q59.2024 Main 67/2/1 · QB-I 33(a)4 marks

From the following information, prepare Comparative Statement of Profit and Loss for the year ended 31st March, 2023 :

Particulars2022 – 23 (₹)2021 – 22 (₹)
Revenue from operations4,00,0002,00,000
Other income80,00040,000
Employee benefit expenses – 50% of Revenue from operations
Tax rate 50%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Comparative Statement of Profit and Loss
for the year ended 31st March 2023

ParticularsNote No.2021-22 ₹2022-23 ₹Absolute Increase/ Decrease ₹Percentage Increase/ Decrease %Marks
I. Revenue from Operations2,00,0004,00,0002,00,000100(½)
II. Other Income40,00080,00040,000100(½)
III. Total Revenue (I + II)2,40,0004,80,0002,40,000100(½)
IV. Expenses:
Employees Benefit Expenses
1,00,0002,00,0001,00,000100(1)
V. Profit before tax (III − IV)1,40,0002,80,0001,40,000100(½)
VI. Less: Tax @ 50%70,0001,40,00070,000100(½)
VII. Profit after tax (V − VI)70,0001,40,00070,000100(½)

= 4 marks

Q60.2024 Main 67/2/1 · QB-I 33(b)4 marks

Prepare a ‘Common Size Statement of Profit and Loss’ of Neurosci Ltd. for the year ended 31st March, 2023 from the following information :

Particulars2022 – 23 (₹)2021 – 22 (₹)
Revenue from operations40,00,00020,00,000
Purchase of stock in trade4,00,0002,00,000
Other expenses40,00020,000
Tax rate 50%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Common Size Statement of Profit and Loss of Neurosci Ltd.
for the years ended 31st March 2022 & 31st March 2023

ParticularsNote No.Absolute amounts (₹)% of Revenue from OperationsMarks
2021-222022-232021-222022-23
I. Revenue from Operations20,00,00040,00,000100100(½)
II. Expenses:
Purchase of stock in trade
2,00,0004,00,0001010(½)
Other expenses20,00040,00011(½)
III. Profit before tax (I − II)17,80,00035,60,0008989(1)
IV. Less: Tax @ 50%8,90,00017,80,00044.544.5(1)
V. Profit after tax (III − IV)8,90,00017,80,00044.544.5(½)

= 4 marks

Q61.2024 Main 67/3/1 · QB-I 33(a)4 marks

From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet :

Balance Sheet of Hira Ltd. as at 31st March, 2023

ParticularsNote no.31.3.2023 (₹)31.3.2022 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital15,00,00012,00,000
2. Non-Current Liabilities
(a) Long-term Borrowings10,00,0005,00,000
3. Current Liabilities
(a) Trade Payables1,00,0003,00,000
Total26,00,00020,00,000
II – Assets :
1. Non-Current Assets
(a) Fixed Assets/Property, Plant and Equipment and Intangible Assets20,00,00015,00,000
2. Current Assets
(a) Inventories1,50,0001,00,000
(b) Trade Receivables4,50,0004,00,000
Total26,00,00020,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Comparative Balance Sheet as at 31st March, 2023

Particulars31.3.2022 (₹)31.3.2023 (₹)Absolute Change (₹)% Change
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital12,00,00015,00,0003,00,00025
2. Non-Current Liabilities
(a) Long Term Borrowings5,00,00010,00,0005,00,000100
3. Current Liabilities
(a) Trade Payables3,00,0001,00,000(2,00,000)(66.7)
TOTAL20,00,00026,00,0006,00,00030
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets/Property, Plant & Equipment and Intangible Assets15,00,00020,00,0005,00,00033.3
2. Current Assets
(a) Inventories1,00,0001,50,00050,00050
(b) Trade Receivables4,00,0004,50,00050,00012.5
TOTAL20,00,00026,00,0006,00,00030

½ x 8 = 4 marks

Q62.2024 Main 67/3/1 · QB-I 33(b)4 marks

From the following information of NK Ltd., prepare a Common Size Statement of Profit and Loss for the years ended 31st March, 2022 and 31st March, 2023 :

Particulars31.3.202331.3.2022
Revenue from Operations(₹)25,00,00020,00,000
Cost of Materials Consumed(₹)8,00,0006,00,000
Employee Benefit Expenses(₹)4,00,0004,00,000
Income Tax Rate%2030
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Common Size Income Statement for the years ended 31st March 2022 and 31st March 2023

ParticularsAbsolute Amounts 31.3.2022 (₹)Absolute Amounts 31.3.2023 (₹)% of Revenue from Operations 31.3.2022% of Revenue from Operations 31.3.2023Marks
I. INCOME
Revenue from Operations20,00,00025,00,000100100(1/2)
TOTAL REVENUE20,00,00025,00,000100100
II. EXPENSES
Cost of Materials Consumed6,00,0008,00,0003032(1/2)
Employee Benefit Expenses4,00,0004,00,0002016(1/2)
TOTAL EXPENSES10,00,00012,00,0005048
III. Profit Before Tax (I-II)10,00,00013,00,0005052(1)
IV. Less Tax3,00,0002,60,0001510.4(1)
V. Profit After Tax (III-IV)7,00,00010,40,0003541.6(1/2)

= 4 marks

Q63.2024 Main 67/4/1 · QB-I 33(a)4 marks

Prepare a Common Size Balance Sheet of X Ltd. from the following information :

Balance Sheet of X Ltd. as on 31st March, 2023

ParticularsNote No.31.3.2023 (₹)31.3.2022 (₹)
I. Equity and Liabilities :
1. Shareholders’ funds
(a) Equity Share Capital30,00,00015,00,000
(b) Reserves and Surplus10,00,0005,00,000
2. Non-current liabilities20,00,00020,00,000
3. Current liabilities20,00,00010,00,000
Total80,00,00050,00,000
II. Assets :
1. Non-current assets40,00,00030,00,000
2. Current assets
(a) Inventories40,00,00020,00,000
Total80,00,00050,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Common Size Balance Sheet of X Ltd. as at 31.3.2022 and 31.3.2023

ParticularsNote No.Absolute Amount 31.3.2022 (₹)Absolute Amount 31.3.2023 (₹)% of Balance Sheet Total 31.3.2022% of Balance Sheet Total 31.3.2023Marks
I. Equity and Liabilities:
1. Shareholders’ Funds
(a) Equity Share Capital15,00,00030,00,0003037.5½
(b) Reserves and Surplus5,00,00010,00,0001012.5½
2. Non-current liabilities20,00,00020,00,0004025½
3. Current Liabilities10,00,00020,00,0002025½
TOTAL50,00,00080,00,000100100½
II. Assets:
1. Non-current Assets30,00,00040,00,0006050½
2. Current Assets
(a) Inventories20,00,00040,00,0004050½
TOTAL50,00,00080,00,000100100½

(= 4 Marks)

Q64.2024 Main 67/4/1 · QB-I 33(b)4 marks

From the following information prepare a Comparative Statement of Profit and Loss of Y Ltd :

Particulars31.3.202331.3.2022
Revenue from operations (₹)40,00,00020,00,000
Purchase of stock in trade (₹)24,00,00012,00,000
Change in inventories (% of purchase of stock in trade)25%20%
Other expenses (₹)2,00,0001,60,000
Tax rate40%40%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Comparative Statement of Profit and Loss of Y Ltd.
for the year ended 31.3.2023

ParticularsNote No.31.3.2022 (₹)31.3.2023 (₹)Absolute Increase/ Decrease (₹)% Increase/ DecreaseMarks
I. Revenue from Operations20,00,00040,00,00020,00,000100½
II. EXPENSES
Purchase of Stock in trade12,00,00024,00,00012,00,000100½
Change in inventories2,40,0006,00,0003,60,000150½
Other expenses1,60,0002,00,00040,00025½
TOTAL EXPENSES16,00,00032,00,00016,00,000100
III. Profit before Tax (I-II)4,00,0008,00,0004,00,0001001
IV. Tax @40%1,60,0003,20,0001,60,000100½
V. Profit after Tax (III-IV)2,40,0004,80,0002,40,000100½

(= 4 Marks)

Q65.2024 Main 67/5/1 · QB-I 33(a)4 marks

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.

Shikha Ltd.
Statement of Profit & Loss for the year ended 31st March, 2023

Particulars2022-23 (₹)2021-22 (₹)
Revenue from operations32,00,00020,00,000
Expenses :
Employee benefit expenses9,60,0006,00,000
Other expenses6,40,0004,00,000

Rate of Tax is 50%.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Shikha Ltd.
Comparative Statement of Profit and Loss
for the year ended March 31, 2023

Particulars2021–22 (₹)2022–23 (₹)Absolute Increase/ Decrease (₹)% Increase/ Decrease
I. Revenue from Operations … ½20,00,00032,00,00012,00,00060
II. Expenses:
Employee benefit expenses …. ½6,00,0009,60,0003,60,00060
Other expenses ……. ½4,00,0006,40,0002,40,00060
Total Expenses10,00,00016,00,0006,00,00060
III. Profit before Tax (I – II) .. 110,00,00016,00,0006,00,00060
IV. Less : Tax @ 50% …… 15,00,0008,00,0003,00,00060
V. Profit after Tax (III – IV) ½5,00,0008,00,0003,00,00060

(4 marks)

Q66.2024 Main 67/5/1 · QB-I 33(b)4 marks

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 :

ParticularsA Ltd.B Ltd.
Revenue from operations (₹)20,00,00010,00,000
Other income (₹)3,00,00080,000
Expenses (₹)10,40,0004,80,000
Tax Rate40%40%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

A Ltd. and B Ltd.
Common Size Statement of Profit and Loss
for the year ended 31st March 2023

ParticularsAbsolute Amounts% of Revenue from operations
A Ltd. (₹)B Ltd. (₹)A Ltd. (₹)B Ltd. (₹)
Revenue from Operations … ½20,00,00010,00,000100100
Other Income ½3,00,00080,000158
Total Revenue ½23,00,00010,80,000115108
Less: Expenses …. ½10,40,0004,80,0005248
Profit before Tax 112,60,0006,00,0006360
Less : Tax @ 40% ……. ½5,04,0002,40,00025.224
Profit after Tax ½7,56,0003,60,00037.836

(4 marks)

Alternate Answer

ParticularsAbsolute Amounts A Ltd. (₹)% of Revenue from operations A Ltd.Absolute Amounts B Ltd. (₹)% of Revenue from operations B Ltd.
Revenue from Operations … ½20,00,00010010,00,000100
Other Income ½3,00,0001580,0008
Total Revenue ½23,00,00011510,80,000108
Less: Expenses …. ½10,40,000524,80,00048
Profit before Tax 112,60,000636,00,00060
Less : Tax @ 40% ……. ½5,04,00025.22,40,00024
Profit after Tax ½7,56,00037.83,60,00036

(4 marks)

Q67.2024 Supp. 67/S/1 · QB-I 33(a)4 marks

From the given Balance Sheet of Moonlight Ltd., prepare a Common Size Balance Sheet :

Balance Sheet of Moonlight Ltd. as at 31st March, 2023

Particulars31.03.2023 (₹)31.03.2022 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
  (a) Share Capital

12,00,000

5,00,000
2. Non-Current Liabilities
  (a) Long-term Borrowings

2,00,000

3,00,000
3. Current Liabilities
  (a) Trade Payables

6,00,000

2,00,000
Total20,00,00010,00,000
II – Assets :
1. Non-Current Assets
  (a) Fixed Assets/Property, Plant and Equipment and Intangible Assets

14,00,000

7,00,000
2. Current Assets
  (a) Trade Receivables
  (b) Inventories

4,00,000
2,00,000

2,50,000
50,000
Total20,00,00010,00,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Common Size Balance Sheet of Moonlight Ltd. as at 31.3.2022 and 31.3.2023

ParticularsNote No.Absolute Amount 31.3.2022 (₹)Absolute Amount 31.3.2023 (₹)% of Balance Sheet Total 31.3.2022% of Balance Sheet Total 31.3.2023Marks
I. Equity and Liabilities:
1. Shareholders’ Funds
(a) Share Capital

5,00,000

12,00,000

50

60

½
2. Non-current liabilities
(a) Long term borrowings

3,00,000

2,00,000

30

10

½
3. Current Liabilities
(a) Trade Payables

2,00,000

6,00,000

20

30

½
TOTAL10,00,00020,00,000100100½
II. Assets:
1. Non-current Assets
(a) Fixed Assets/Property, Plant and Equipment and Intangible Assets

7,00,000

14,00,000

70

70

½
2. Current Assets
(a) Trade Receivables

2,50,000

4,00,000

25

20

½
(b) Inventories50,0002,00,000510½
TOTAL10,00,00020,00,000100100½

=4 Marks

Q68.2024 Supp. 67/S/1 · QB-I 33(b)4 marks

From the following particulars of Accent Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2023 :

ParticularsNote No.2022 – 23 (₹)2021 – 22 (₹)
Revenue from operations25,00,00020,00,000
Employee benefit expenses5,00,0004,00,000
Other expenses2,50,0002,00,000
Tax rate 50%
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Comparative Statement of Profit and Loss of Accent Ltd. for the year ended 31.3.2023

ParticularsNote No.2021-22 (₹)2022-23 (₹)Absolute Increase/ Decrease (₹)% Increase/ DecreaseMarks
I. Revenue from Operations20,00,00025,00,0005,00,000251
II. EXPENSES
Employee benefit expenses4,00,0005,00,0001,00,00025½
Other expenses2,00,0002,50,00050,00025½
TOTAL EXPENSES6,00,0007,50,0001,50,00025½
III. Profit before Tax (I-II)14,00,00017,50,0003,50,00025½
IV. Less: Tax @50%7,00,0008,75,0001,75,00025½
V. Profit after Tax (III-IV)7,00,0008,75,0001,75,00025½

=4 Marks

Part B · Financial Statement Analysis

11. Accounting Ratios

Q1.2026 Main 67/1/1 · QB-I 27(b)1 mark

Ratios calculated to measure the ability of the business to pay the amount due to stakeholders as and when it is due are known as :

  1. Solvency ratios
  2. Liquidity ratios
  3. Activity ratios
  4. Profitability ratios
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) Liquidity ratios

Q2.2026 Main 67/1/1 · QB-I 281 mark

Which of the following transaction will affect the ‘Gross Profit Ratio’ of a company :

  1. Revenue from operations ₹1,00,000
  2. Purchased goods worth ₹70,000.
  3. Goods costing ₹15,000 withdrawn for personal use.
  4. Goods costing ₹50,000 sold for ₹60,000.
  1. (iv)
  2. (i) and (ii)
  3. (ii) and (iii)
  4. (i) and (iii)
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) (iv)

Q3.2026 Main 67/2/1 · QB-I 281 mark

The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this ratio ?

  1. Sold goods on credit ₹ 39,000.
  2. Cash collected from debtors ₹ 76,000.
  3. Outstanding electricity bill paid ₹ 41,000.
  4. Issue of shares ₹ 5,00,000.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Outstanding electricity bill paid ₹ 41,000

Q4.2026 Main 67/3/1 · QB-I 27(b)1 mark

Which of the following is not a Solvency Ratio ?

  1. Debt-Equity Ratio
  2. Return on Investment
  3. Interest Coverage Ratio
  4. Proprietary Ratio
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Return on Investment

Q5.2026 Main 67/3/1 · QB-I 281 mark

The Current Ratio of Megh Raj Ltd. is 1·5 : 1. Which of the following transactions will reduce the ratio ?

  1. Sale of furniture of ₹18,000 at a loss of ₹2,000
  2. Goods purchased on credit ₹75,000
  3. Sale of goods costing ₹60,000 for ₹80,000
  4. Payment of trade payables ₹40,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Goods purchased on credit ₹75,000

Q6.2026 Main 67/4/1 · QB-I 291 mark

The Debt-Equity Ratio of a company is 2 : 1. Which of the following transactions will increase the Debt-Equity Ratio ?

  1. Issue of Shares ₹ 2,00,000
  2. Issue of 8% Debentures ₹ 5,00,000
  3. Issue of Bonus shares ₹ 4,00,000
  4. Payment to Creditors ₹ 1,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) Issue of 8% debentures ₹ 5,00,000

Q7.2026 Main 67/4/1 · QB-I 30(a)1 mark

Which of the following statements are correct ?

  1. A low current ratio endangers the business and puts it at risk of facing a situation, where it will not be able to pay its short-term debts on time.
  2. Trade payables turnover ratio expresses the relationship between net credit sales and average trade payables.
  3. Operating profit ratio plus Gross profit ratio = 100.
  4. Inventory turnover ratio determines the number of times inventory is converted into revenue from operations during the accounting period under consideration.

Options :

  1. I and II
  2. II and III
  3. III and IV
  4. I and IV
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(D) I and IV

Q8.2026 Main 67/4/1 · QB-I 30(b)1 mark

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :

  1. Turnover ratios
  2. Profitability ratios
  3. Solvency ratios
  4. Liquidity ratios
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Turnover ratios

Q9.2026 Main 67/5/1 · QB-I 27(a)1 mark

From the following information obtained from the books of accounts of Ananda Ltd., calculate ‘Quick Ratio’ of the company :

Total Current Assets (including stock and prepaid expenses) ₹2,00,000; Stock ₹20,000; Prepaid expenses ₹10,000; Current liabilities ₹1,70,000.

  1. 20 : 17
  2. 1 : 1
  3. 18 : 17
  4. 19 : 17
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) 1 : 1

Q10.2026 Main 67/5/1 · QB-I 301 mark

The following information is obtained from the books of Devdutt Ltd. :

Working capital–₹4,00,000
Trade Payables–₹50,000
Other Current liabilities–₹1,00,000

Current assets of Devdutt Ltd. are :

  1. ₹2,50,000
  2. ₹4,50,000
  3. ₹5,00,000
  4. ₹5,50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) ₹5,50,000

Q11.2026 Supp. 67/7/1 · QB-I 291 mark

The Quick Ratio of Seerat Ltd. is 2 : 1. Which of the following transactions will reduce the quick ratio ?

  1. Payment of Outstanding Salaries
  2. Purchase of Goods for Cash
  3. Sale of Goods (at a loss) for Cash
  4. Cash Received from Trade Receivables
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) Purchase of Goods for Cash

Q12.2025 Main 67/1/1 · QB-I 27(b)1 mark

Ratios that are calculated for measuring the efficiency of operations of the business based on effective utilization of resources are known as ________.

  1. Profitability ratios
  2. Solvency ratios
  3. Turnover ratios
  4. Liquidity ratios
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) Turnover ratios

Q13.2025 Main 67/1/1 · QB-I 281 mark

The Debt Equity Ratio of Manak Enterprises is 2.5 : 1. Which of the following transaction will result in increase in this ratio ?

  1. Purchase of goods on credit ₹ 2,00,000.
  2. Payment to creditors ₹ 3,00,000.
  3. Issue of debentures ₹ 6,00,000.
  4. Sale of furniture of the book value of ₹ 4,00,000 at a profit of 10%.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) Issue of debentures ₹6,00,000

Q14.2025 Main 67/2/1 · QB-I 271 mark

The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase in Quick Ratio ?

  1. Cash received from debtors
  2. Sold goods on credit
  3. Purchased goods on credit
  4. Purchased goods on cash
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) Sold goods on credit

Q15.2025 Main 67/4/1 · QB-I 271 mark

The Quick Ratio of a company is 2 : 1. Which of the following transactions will result in decrease of this ratio ?

  1. Payment of outstanding salary
  2. Cash received from debtors
  3. Sale of goods at a profit
  4. Purchase of goods for cash
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Purchase of goods for cash

Q16.2025 Main 67/5/1 · QB-I 27(a)1 mark

Operating ratio of a company is 63%. Its gross profit ratio is 20%. What will be its operating profit ratio ?

  1. 27%
  2. 23%
  3. 43%
  4. 83%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

37%

Note: As there is no option in MCQ for the correct answer, therefore, 1 mark is to be awarded to all examinees.

Q17.2025 Main 67/5/1 · QB-I 281 mark

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :

  1. Activity Ratios
  2. Profitability Ratios
  3. Solvency Ratios
  4. Liquidity Ratios
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) Activity Ratios

Q18.2025 Main 67/6/1 · QB-I 27(b)1 mark

_______ ratios indicate the speed at which activities of the business are being performed.

  1. Liquidity
  2. Solvency
  3. Profitability
  4. Activity
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Activity

Q19.2025 Main 67/6/1 · QB-I 281 mark

The Current Ratio of Magnum Ltd. is 2·5 : 1. Which of the following transactions will result in decrease in this ratio ?

  1. Purchased goods for cash ₹73,000
  2. Cash collected from debtors ₹41,000
  3. Outstanding salaries paid ₹62,000
  4. Repayment of long term loan ₹8,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Repayment of long term loan ₹8,00,000

Q20.2025 Main 67/7/1 · QB-I 27(a)1 mark

If the operating ratio of Sana Ltd. is 28%, its operating profit ratio will be ___________.

  1. 100%
  2. 72%
  3. 28%
  4. 128%
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) 72%

Q21.2025 Main 67/7/1 · QB-I 281 mark

The Current Ratio of Manas Ltd. is 2 : 1. Which of the following transactions will reduce the current ratio ?

  1. Payment to trade payables
  2. Issue of shares
  3. Sale of inventory at a loss
  4. Cash collected from trade receivables
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Sale of inventory at a loss

Q22.2025 Supp. 67/S/1 · QB-I 27(b)1 mark

Choose the correct equation with respect to capital employed from the following :

  1. Capital Employed = Shareholders’ funds − Non-current Liabilities
  2. Capital Employed = Non-current assets + Net working capital
  3. Capital Employed = Non-current assets − Net working capital
  4. Capital Employed = Share capital + Reserves and Surplus + Current Liabilities
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Capital Employed = Non-current assets + Net working capital

Q23.2025 Supp. 67/S/1 · QB-I 281 mark

_______ will decrease Debt-Equity Ratio and will not change Current Ratio.

  1. Issue of equity shares for cash
  2. Issue of preference shares for cash
  3. Redemption of debentures
  4. Issue of shares for purchase of land and building
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) Issue of shares for purchase of land and building

Q24.2024 Main 67/1/1 · QB-I 271 mark

The Quick Ratio of a company is 1 : 2. Which of the following transactions will result in an increase in this ratio ?

  1. Cash received from debtors
  2. Sold goods on credit
  3. Purchased goods on credit
  4. Purchased goods on cash
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) Sold goods on credit

Q25.2024 Main 67/1/1 · QB-I 29(b)1 mark

___________ ratios are calculated to determine the ability of the business to service its debt in the long run.

  1. Liquidity
  2. Turnover
  3. Solvency
  4. Profitability
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Solvency

Q26.2024 Main 67/2/1 · QB-I 27(ii)1 mark

________ is also known as Acid-Test Ratio.

  1. Current Ratio
  2. Quick Ratio
  3. Gross profit Ratio
  4. Operating Ratio
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) Quick Ratio

Q27.2024 Main 67/2/1 · QB-I 281 mark

Current Ratio of Super Ltd. is 2 : 1. Which of the following transactions will result in decrease in this ratio ?

  1. Payment of ₹ 40,000 to creditors
  2. Sale of furniture (book value ₹ 38,000) for ₹ 16,000 only
  3. Repayment of long term loan of ₹ 7,00,000
  4. Cash collected from debtors ₹ 1,18,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) Repayment of long-term loan of ₹7,00,000

Q28.2024 Main 67/3/1 · QB-I 271 mark

The Debt-Equity Ratio of a company is 3 : 2. Which of the following transactions will result in increase in this ratio ?

  1. Purchase of goods on credit
  2. Issue of Debentures
  3. Issue of Equity Shares
  4. Cash received from Debtors
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) Issue of Debentures

Q29.2024 Main 67/3/1 · QB-I 29(b)1 mark

_____________ indicate the speed at which activities of the business are being performed.

  1. Liquidity ratios
  2. Turnover ratios
  3. Solvency ratios
  4. Profitability ratios
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) Turnover Ratios

Q30.2024 Main 67/4/1 · QB-I 27(b)1 mark

_____ is also known as the Acid Test Ratio.

  1. Current ratio
  2. Quick ratio
  3. Gross profit ratio
  4. Return on investment ratio
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) Quick ratio

Q31.2024 Main 67/4/1 · QB-I 281 mark

Quick ratio of Megamart Ltd. is 1.5:1. Which of the following transactions will result in decrease in this ratio ?

  1. Sale of goods costing ₹ 10,000 for ₹ 12,000.
  2. Cash collected from trade receivables ₹ 41,000.
  3. Purchase of goods for cash ₹ 38,000.
  4. Creditors were paid ₹ 11,000.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) Purchase of goods for cash ₹38,000.

Q32.2024 Main 67/5/1 · QB-I 28(a)1 mark
Total Assets–₹ 3,00,000
Non-current Assets–₹ 2,60,000
Non-current Liabilities–₹ 80,000
Shareholders Funds–₹ 2,00,000

Current ratio calculated on the basis of above information will be :

  1. 0.5 : 1
  2. 2 : 1
  3. 1.5 : 1
  4. 1 : 1
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) 2:1

Q33.2024 Main 67/5/1 · QB-I 28(b)1 mark

When Current Ratio is 4 : 1, Current Assets are ₹ 60,000 and Quick Ratio is 2.5 : 1, the amount of 'Inventory' will be :

  1. ₹ 22,500
  2. ₹ 37,500
  3. ₹ 15,000
  4. ₹ 25,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A) ₹22,500

Q34.2024 Supp. 67/S/1 · QB-I 271 mark

The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase of this ratio ?

  1. Purchase of inventory ₹ 1,50,000 through cheque
  2. Sold inventory on credit ₹ 50,000
  3. Outstanding expenses of ₹ 40,000 paid
  4. Machinery purchased for cash ₹ 50,000
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) Sold inventory on credit ₹50,000

Q35.2024 Supp. 67/S/1 · QB-I 29(b)1 mark

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are known as :

  1. Liquidity ratios
  2. Turnover ratios
  3. Solvency ratios
  4. Profitability ratios
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) Turnover ratios

Q36.2023 Main 67/1/1 · QB-I 27(i)1 mark

Which of the following equations is correct :

  1. Cost of Revenue from Operations = Revenue from Operations + Gross Profit
  2. Cost of Revenue from Operations = Opening Inventory – Net Purchases + Direct Expenses – Closing Inventory
  3. Cost of Revenue from Operations = Opening Inventory + Closing Inventory
  4. Cost of Revenue from Operations = Revenue from Operations – Gross Profit
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) Cost of Revenue from Operations = Revenue from Operations – Gross Profit

Q37.2023 Main 67/1/1 · QB-I 281 mark

From the following information, the ‘Proprietor’s funds’ are :

Current Assets₹ 20,00,000
Non-Current Assets₹ 40,00,000
Long Term Borrowings₹ 25,00,000
Proprietary Ratio25%
  1. ₹ 10,00,000
  2. ₹ 14,00,000
  3. ₹ 24,00,000
  4. ₹ 15,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) ₹ 15,00,000

Q38.2023 Main 67/2/1 · QB-I 27(b)1 mark

_____ ratios are calculated to determine the ability of the business to service its debt in the long run.

  1. Profitability
  2. Solvency
  3. Liquidity
  4. Turnover
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Solvency

Q39.2023 Main 67/2/1 · QB-I 281 mark

The 'Inventory Turnover Ratio' from the following information will be :

₹
Revenue from operations12,00,000
Average Inventory2,00,000
Gross loss ratio20%
  1. 6 times
  2. 5 times
  3. 7.2 times
  4. 3 times
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) 7.2 times

Q40.2023 Main 67/3/1 · QB-I 27(i)1 mark

Which of the following is not a ‘Profitability Ratio’ :

  1. Gross Profit Ratio
  2. Return on Investment
  3. Proprietary Ratio
  4. Operating Ratio
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Proprietary Ratio

Q41.2023 Main 67/3/1 · QB-I 28(i)1 mark

The Debt-Equity Ratio of a company is 2 : 1. Which of the following transactions will increase the Debt-Equity Ratio ?

  1. Issue of shares ₹ 1,00,000
  2. Issue of 9% debentures ₹ 4,00,000
  3. Issue of bonus shares ₹ 3,00,000
  4. Payment of creditors ₹ 50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Issue of 9% Debentures ₹4,00,000

Q42.2023 Main 67/3/1 · QB-I 28(ii)1 mark

During the year ended 31st March, 2022, Shradha Ltd. earned net profit of ₹ 15,00,000 before interest and tax. The company has a 10% long term debt of ₹ 50,00,000. The tax rate is 40%. The Interest Coverage Ratio of the company will be :

  1. 2 times
  2. 3 times
  3. 1·2 times
  4. 1·5 times
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) 3 times

Q43.2023 Main 67/4/1 · QB-I 27(i)1 mark

If revenue from operations is ₹ 10,00,000 and gross profit is 25% on cost, cost of revenue from operations will be :

  1. ₹ 2,50,000
  2. ₹ 12,50,000
  3. ₹ 2,00,000
  4. ₹ 8,50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Cost of revenue from operations= 8,00,000

Note: As there is no option in MCQ for the answer ₹ 8,00,000, therefore, 1 mark is to be awarded to the examinees, who attempted the question.

Q44.2023 Main 67/4/1 · QB-I 27(ii)1 mark

If the operating ratio of Aman Ltd. is 60%, its operating profit ratio will be :

  1. 100%
  2. 60%
  3. 40%
  4. 160%
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) 40%

Q45.2023 Main 67/4/1 · QB-I 301 mark

Which of the following is not a Solvency Ratio ?

  1. Return on Investment
  2. Interest Coverage Ratio
  3. Proprietary Ratio
  4. Total Assets to Debt Ratio
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) Return on Investment

Q46.2023 Main 67/5/1 · QB-I 27(b)1 mark

Which one of the following statement is incorrect ?

  1. Liquidity ratios are calculated to measure the short term solvency of the business.
  2. Current ratio is also known as Acid Test Ratio.
  3. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run.
  4. Proprietary ratio expresses the relationship of proprietor’s funds to net assets / total assets.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) Current ratio is also known as Acid Test Ratio

Q47.2023 Main 67/5/1 · QB-I 291 mark

The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working capital turnover ratio is 6 times, its revenue from operations will be :

  1. ₹ 2,00,000
  2. ₹ 3,00,000
  3. ₹ 2,50,000
  4. ₹ 1,50,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) ₹3,00,000

Q48.2023 Supp. 67/C/1 · QB-I 27(b)1 mark

If the Operating Ratio of Pathway Ltd. is 30%, its Operating Profit Ratio will be :

  1. 100%
  2. 30%
  3. 130%
  4. 70%
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(D) 70%

Q49.2023 Supp. 67/C/1 · QB-I 28(a)1 mark

Which of the following is not a Solvency Ratio ?

  1. Interest Coverage Ratio
  2. Return on Investment
  3. Debt to Capital Employed Ratio
  4. Total Assets to Debt Ratio
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) Return on Investment.

Q50.2023 Supp. 67/C/1 · QB-I 28(b)1 mark

Which of the following are known as Efficiency Ratios ?

  1. Liquidity Ratios
  2. Solvency Ratios
  3. Activity Ratios
  4. Profitability Ratios
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Activity ratios

Q51.SQP 2025-26 · QB-I 28(a)1 mark

Inventory Turnover Ratio of company was 5 times. The firm had Revenue from operations of ₹ 5,00,000 and Gross Profit was 25% of Cost of Revenue from Operations. Determine the amount of Opening Inventory if Closing Inventory was ₹ 60,000.

  1. ₹ 80,000
  2. ₹ 60,000
  3. ₹ 1,00,000
  4. ₹ 50,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) ₹ 1,00,000

Q52.SQP 2025-26 · QB-I 28(b)1 mark

Assertion (A) :- Gross Profit Ratio is always higher than Net Profit Ratio.

Reason (R) :- To calculate Net Profit, Indirect Expenses are subtracted from Gross Profit and Indirect Incomes are added to Gross Profit.

  1. Both A and R are correct, and R is the correct explanation of A
  2. Both A and R are correct, but R is not the correct explanation of A
  3. A is correct but R is incorrect
  4. A is incorrect but R is correct
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) A is incorrect but R is correct

Q53.SQP 2026-27 · QB-I 281 mark

Assertion (A): Current Ratio can never be less than Liquid ratio.

Reason (R): Current Ratio includes all current assets, including inventory and prepaid expenses.

  1. Both A and R are correct, and R is the correct explanation of A
  2. Both A and R are correct, but R is not the correct explanation of A
  3. A is correct but R is incorrect
  4. A is incorrect but R is correct
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(A) Both A and R are correct, and R is the correct explanation of A

Q54.2024 Main 67/1/1 · QB-I 323 marks

From the given information, calculate :

  1. Quick Ratio
  2. Inventory Turnover Ratio
ParticularsAmount (₹)
Current Assets4,00,000
Inventory1,00,000
Current Liabilities2,00,000
Net Profit Before Tax7,20,000
Revenue from Operations10,00,000
Gross Profit Ratio 20%
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(a) Quick Ratio = Quick Assets / Current Liabilities ½

Quick assets = Current Assets – Inventory
= 4,00,000 – 1,00,000
= ₹3,00,000 ½

Quick Ratio = 3,00,000 / 2,00,000 = 1.5:1 ½
(1½)

(b) Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory ½

Cost of Revenue from Operation = Revenue from Operations – Gross Profit
= 10,00,000 – 2,00,000
= ₹ 8,00,000 ½

Inventory Turnover Ratio = 8,00,000 / 1,00,000 = 8 times ½
(1½)

= 3 marks

Q55.2024 Main 67/2/1 · QB-I 323 marks

Calculate ‘Quick Ratio’ and ‘Debt-Equity Ratio’ from the following information :

Particulars₹
Total Debt8,00,000
Inventory2,20,000
Long Term Debts6,00,000
Working Capital2,40,000
Shareholders’ Funds12,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Quick Ratio = Quick Assets / Current Liabilities (½)

Current Liabilities = Total Debt − Long term debt
= ₹8,00,000 − ₹6,00,000
= ₹2,00,000 (½)

Quick Assets = Current Assets − Inventory
Current Assets = Working Capital + Current Liabilities
= ₹2,40,000 + ₹2,00,000
= ₹4,40,000

Quick Assets = ₹4,40,000 − ₹2,20,000
= ₹2,20,000 (½)

Quick Ratio = 2,20,000 / 2,00,000 = 1.1 : 1 (½)

[2]

Debt-Equity Ratio = Debt / Equity (½)
Debt = Long term Debt = ₹6,00,000
Equity = Shareholder’s Funds = ₹12,00,000
Debt-Equity Ratio = 6,00,000 / 12,00,000
= 1 : 2 or 0.5 : 1 (½)

[1] = 3 marks

Q56.2024 Main 67/3/1 · QB-I 323 marks

From the following information, calculate ‘Return on Investment’ :

Particulars(₹)
Total Assets22,00,000
10% Debentures5,00,000
Current Liabilities2,00,000
Net Profit After Tax7,20,000
Tax1,80,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Return on Investment = Profit Before Interest and Tax / Capital Employed × 100 (1/2)

Profit Before Interest and Tax = Net Profit After Tax + Tax + Interest on Debentures (1)

= 7,20,000 + 1,80,000 + 50,000

= ₹ 9,50,000

Capital Employed = Total Assets – Current Liabilities (1)

= 22,00,000 – 2,00,000

= ₹ 20,00,000

Return on Investment = 9,50,000 / 20,00,000 × 100 (1/2)

= 47.5%

= 3 marks

Q57.2024 Main 67/4/1 · QB-I 323 marks

A business has a current ratio of 3:1 and quick ratio of 1.2 : 1. If working capital is ₹ 1,80,000, calculate total current assets and inventory.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Total Current Assets = Working Capital + Current Liabilities
Working Capital = ₹1,80,000
Working Capital = Current Assets - Current Liabilities
Therefore, ₹1,80,000 = Current Assets - Current Liabilities
Current Assets = 1,80,000 + Current Liabilities ............ ½

Current Ratio 3 : 1
Current Ratio = Current Assets / Current Liabilities
Therefore, 3/1 = (1,80,000 + Current Liabilities) / Current Liabilities
3 Current Liabilities = 1,80,000 + Current Liabilities
Current liabilities = ₹90,000 ............ ½

Current Assets = 1,80,000 + Current Liabilities
Current Assets = 1,80,000 + 90,000
Current Assets = ₹2,70,000 ............ ½

Quick Ratio = 1.2:1
Quick Ratio = Quick Assets / Current Liabilities
1.2/1 = Quick Assets / 90,000
So, Quick Assets = 1.2 × 90,000 = ₹1,08,000 ............ 1

Inventory = Current Assets - Quick Assets
= 2,70,000 – 1,08,000
= ₹1,62,000 ............ ½

(3 Marks)

Q58.2024 Main 67/5/1 · QB-I 323 marks

From the following information of Ajanta Ltd., calculate 'Inventory Turnover Ratio' :

₹
Opening inventory19,000
Closing inventory21,000
Purchases80,000
Wages9,000
Carriage Outwards2,000
Return Outwards1,000
Revenue from operations80,000
Carriage inwards4,000
Rent paid5,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory … ½

Average Inventory = (Opening inventory + Closing inventory)/ 2
= (₹19,000 + ₹21,000)/2
= ₹20,000 ……… 1

Cost of Revenue from Operations = Opening Inventory + Net purchases + Direct Expenses − Closing Inventory
= ₹19,000 + (₹80,000 − ₹1,000) + (₹9,000 + ₹4,000) − ₹21,000
= ₹90,000 ……… 1

Inventory Turnover Ratio = ₹90,000/₹20,000
= 4.5 times ……… ½

(3 marks)

Q59.2024 Supp. 67/S/1 · QB-I 323 marks

X Ltd. has a Current ratio of 3·5 : 1 and Quick ratio of 2 : 1. If excess of Current Assets over Quick Assets is represented by inventories of ₹ 16,000 and prepaid expenses of ₹ 8,000, calculate :

  1. Current Liabilities
  2. Current Assets
  3. Quick Assets
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Current Ratio = Current Assets/ Current Liabilities ……½
3.5 = Current Assets/ Current Liabilities
Current Assets = 3.5 x Current Liabilities

Quick Ratio = Quick Assets/Current Liabilities ……½
2 = Quick Assets/Current Liabilities
Quick Assets = 2 x Current Liabilities

Current Assets = Quick Assets + Inventories + Prepaid Expenses ……½
Current Assets - Quick Assets = Inventories + Prepaid Expenses
3.5 Current Liabilities - 2 Current Liabilities = 16,000 + 8,000
1.5 Current Liabilities = 24,000
Current Liabilities = 24,000 / 1.5
(a) Current Liabilities = ₹16,000 ……½

Current Ratio = Current Assets/ Current Liabilities
3.5/1 = Current Assets/ 16,000
Current Assets = 3.5 x 16,000
(b) Current Assets = ₹56,000 ……½

Quick Ratio = Quick Assets/ Current Liabilities
2/1 = Quick Assets/16,000
(c) Quick Assets = ₹32,000 ……½

3 Marks

Q60.2023 Main 67/1/1 · QB-I 323 marks

‘It is a technique which involves regrouping of data by application of arithmetical relationships.’ Identify the technique and state its two advantages.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Ratio Analysis [1]

Advantages of Ratio Analysis (Any two):

  1. It helps to understand efficacy of decisions.
  2. It simplifies complex accounting figures and establishes relationships.
  3. It is helpful in comparative analysis.
  4. It helps in identification of problem areas.
  5. It enables SWOT analysis.
  6. It helps comparisons with various benchmarks.

(1 + 1 × 2 = 3 marks)

Q61.2023 Main 67/3/1 · QB-I 323 marks

Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective utilisation of resources.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Significance of Turnover Ratios (any two):

(i) Inventory Turnover ratio studies the frequency of conversion of inventory of finished goods into revenue from operations.

(ii) Trade Receivables Turnover ratio indicates the speed with which trade receivables are realized
OR
It indicates the number of times the trade receivable are turned over and converted into cash in an accounting period.

(iii) Trade Payables Turnover ratio reveals the average payment period.

(iv) Working Capital Turnover ratio reflects the efficiency of the enterprise in utilization of working capital.

(v) Net Assets or Capital Employed Turnover ratio reflects the efficiency in utilization of capital employed/net assets.

(vi) Fixed Assets Turnover ratio reflects the efficiency in utilization of fixed assets.

(½ mark for identification + 1 mark for significance = 1½ × 2 = 3 marks)

Q62.2023 Main 67/4/1 · QB-I 323 marks

‘These ratios are calculated for measuring the efficiency of operations of business based on effective utilisation of resources.’

  1. Identify the types of ratios being discussed above.
  2. Explain any two ratios of the types of ratios identified in (a) above.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

a) Turnover Ratios or Activity Ratios [1 mark]

b) Any two of the following: (1/2 mark for naming and 1/2 mark for explanation) 1x2=2

  1. Inventory Turnover ratio
    • It expresses the relationship between the cost of revenue from operations and average inventory.
    • Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory
  2. Trade Receivables Turnover ratio
    • It expresses the relationship between credit revenue from operations and trade receivable.
    • Trade Receivable Turnover ratio = Net Credit Revenue from Operations/Average Trade Receivable
  3. Trade Payables Turnover ratio
    • It expresses relationship between credit purchases and trade payables.
    • Trade Payables Turnover ratio = Net Credit purchases/ Average trade payable
  4. Net assets or Capital employed Turnover Ratio
    • It reflects relationship between revenue from operations and net assets (capital employed) in the business.
    • Net Assets or Capital Employed Turnover ratio =Revenue from Operations/ Capital Employed
  5. Fixed assets Turnover Ratio
    • It reflects relationship between revenue from operations and net fixed assets.
    • Fixed asset turnover Ratio =Net Revenue from Operation / Net Fixed Assets
  6. Working Capital Turnover Ratio
    • It reflects relationship between revenue from operations and working capital.
    • Working Capital Turnover Ratio =Net Revenue from Operation /Working Capital

1+2=3 marks

Note: If the examinee has given the meaning in any other way, full credit is to be given.

Q63.2023 Main 67/5/1 · QB-I 323 marks

“It is a technique which involves regrouping of data by application of arithmetical relationships.” Identify the technique highlighted in the above statement and state its any two objectives.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1
  • Ratio Analysis (1)
  • Objectives of Ratio Analysis (any two) (2)
    1. To know the areas of the business which need more attention;
    2. To know about the potential areas which can be improved with the efforts in the desired direction;
    3. To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business;
    4. To provide information for making cross-sectional analysis by comparing the performance with the best industry standards
    5. To provide information derived from financial statements useful for making projections and estimates for the future.

(1 + 2 = 3 marks)

Q64.2023 Supp. 67/C/1 · QB-I 323 marks

‘These ratios are calculated to determine the ability of the business to service its debt in the long run.’ Identify and state the significance of three such ratios.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Any three of the following Solvency Ratios.

(i) Debt Equity Ratio means the relationship between long term debt and equity. It measures the degree of indebtedness of an enterprise and gives an idea to the long term lender regarding the extent of security of the debt.

(ii) Debt to Capital employed Ratio refers to the ratio of long erm debt to the total of external and internal funds. It shows the proportion of long erm long term debt in capital employed.

(iii) Proprietary Ratio expresses relationship of proprietor’s funds to net assets. Higher proportion of shareholders funds in financing the assets is appositive feature as it provides security to the creditors.

(iv) Total Assets to Debt Ratio measures the extent of the coverage of long term debts by assets. It indicates the rate of external funds in financing the assets and the extent to which debts are covered by assets.

(v) Interest Coverage Ratio expresses the relationship between profits available for payment of interest and the amount of interest payable. It reveals the number of times interest on long term debts is covered by the profits available for interest.

1 x 3 = 3 marks

Q65.2026 Main 67/1/1 · QB-I 33(a)4 marks

From the following information, calculate :

  1. Current ratio and
  2. Debt to capital employed ratio
Information₹
Total Assets6,00,000
Non-Current Liabilities1,40,000
Shareholders’ Funds4,20,000
Non-current Assets5,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i) Current Ratio = Current Assets / Current Liabilities ……… ½

Current Assets = Total Assets − Non-current Assets
= ₹6,00,000 − ₹5,20,000 = ₹80,000 ……… ½

Current Liabilities = Total Liabilities − Non-Current liabilities − Shareholders funds
= ₹6,00,000 − ₹1,40,000 − ₹4,20,000
= ₹40,000 ……… ½

Current Ratio = ₹80,000/₹40,000
= 2:1 ……… ½

(ii) Debt to Capital employed ratio = Debt/ Capital employed ……… ½

Debt = Non-current Liabilities = ₹1,40,000 ……… ½

Capital employed = Shareholders funds + Non-current Liabilities
= ₹4,20,000 + ₹1,40,000 = ₹5,60,000 ……… ½

Alternatively
Capital employed = Non-Current Assets + Current Assets − Current Liabilities
= ₹5,20,000 + ₹80,000 − ₹40,000
= ₹5,60,000

Debt to capital employed ratio = ₹1,40,000/ ₹5,60,000
= 1 : 4 or 0.25 : 1 ……… ½

(4 marks)

Q66.2026 Main 67/1/1 · QB-I 33(b)4 marks

From the following information, calculate :

  1. Debt-Equity Ratio and
  2. Total Assets to Debt ratio
Information₹
Long-term borrowings8,00,000
Other long-term liabilities80,000
Long term provisions1,20,000
Share capital24,00,000
Reserves and Surplus6,00,000
Non-current Assets36,00,000
Current Assets14,00,000
Current Liabilities10,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(i) Debt Equity Ratio = Debt/ Equity ……… ½

Debt = Long Term Borrowings + Long Term Provisions + Other Long term Liabilities
= ₹8,00,000 + ₹1,20,000 + ₹80,000
= ₹10,00,000 ……… ½

Equity = Share Capital + Reserves and Surplus
= ₹24,00,000 + ₹6,00,000 = ₹30,00,000 ……… ½

Debt Equity Ratio = ₹10,00,000/ ₹30,00,000 = 1:3 or 0.33:1 ……… ½

(ii) Total Assets to Debt ratio = Total Assets/ Debt ……… ½

Total Assets = Non-Current Assets + Current Assets
= ₹36,00,000 + ₹14,00,000
= ₹50,00,000 ……… ½

Debt = ₹10,00,000 ……… ½

Total Assets to Debt Ratio = ₹50,00,000/ ₹10,00,000 = 5 : 1 ……… ½

(4 marks)

Alternate Solution-

(i) Debt Equity Ratio = Debt/ Equity ……… ½

Debt = Long Term Borrowings + Long Term Provisions
= ₹8,00,000 + ₹1,20,000
= ₹9,20,000 ……… ½

Equity = Share Capital + Reserves and Surplus
= ₹24,00,000 + ₹6,00,000 = ₹30,00,000 ……… ½

Debt Equity Ratio = ₹9,20,000/ ₹30,00,000 = 23:75 or 0.31:1 ……… ½

(ii) Total Assets to Debt ratio = Total Assets/ Debt ……… ½

Total Assets = Non-Current Assets + Current Assets
= ₹36,00,000 + ₹14,00,000
= ₹50,00,000 ……… ½

Debt = ₹9,20,000 ……… ½

Total Assets to Debt Ratio = ₹50,00,000/ ₹9,20,000 = 125:23 or 5.43:1 ……… ½

Q67.2026 Main 67/2/1 · QB-I 334 marks

The following information has been obtained from the books of Naval Ltd. Trade receivables turnover ratio of the company is 4 times, cost of revenue from operations ₹ 6,40,000 ; gross profit ratio 20%, closing trade receivables were ₹ 20,000 more than that in the beginning, cash revenue from operations being 331/3% of credit revenue from operations. Calculate its opening and closing trade receivables.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Trade Receivables Turnover Ratio = Credit Revenue from Operations / Average Trade Receivables ……… ½

Gross Profit ratio is 20%

Gross Profit = Revenue from operations - Cost of revenue from operations
∴ Cost of revenue from operations = Revenue from operations - Gross Profit ……… ½

Cost of Revenue from operations = ₹ 6,40,000
Assume Revenue from operations = X
Gross Profit = 20% of X
X – 20/100 X = ₹ 6,40,000
X = ₹ 6,40,000 × 100/80 = ₹ 8,00,000
∴ Revenue from operations = ₹ 8,00,000 ……… ½

Alternatively, Revenue from operations can be calculated as-
Gross Profit ratio = 20% of Revenue from operations
= 25% of cost of Revenue from operations
∴ Gross profit = 25% of ₹ 6,40,000 = ₹ 1,60,000
Revenue from operations = Cost of revenue from operations + Gross Profit
Revenue from operations = ₹ 6,40,000 + ₹ 1,60,000 = ₹ 8,00,000

Revenue from operations = Cash Revenue from operations + Credit Revenue from operations
₹ 8,00,000 = 1/3 Credit Revenue from operations + Credit Revenue from Operations
₹ 8,00,000 = 4/3 of Credit Revenue from Operations
∴ Credit Revenue from Operations = 8,00,000 × ¾ = ₹ 6,00,000 ……… ½

Trade Receivables turnover ratio = 4 times
∴ 4 = 6,00,000 / Average Receivables

Average Trade Receivables = ₹ 1,50,000 ……… ½

Average Trade Receivables = (Opening Trade Receivables + Closing Trade Receivables)/2 ……… ½

Closing Trade Receivables = 20,000 + Opening Trade Receivables
⇒ 1,50,000 = (2 Opening Trade receivables + 20,000)/2
⇒ Opening Trade Receivables = ₹ 1,40,000 ……… ½

Closing Trade Receivables = ₹ 20,000 + ₹ 1,40,000
= ₹ 1,60,000 ……… ½

(4 marks)

Q68.2026 Main 67/3/1 · QB-I 33(a)4 marks

From the following information, calculate ‘Interest Coverage Ratio’ :

Shareholders’ funds₹30,00,000
8% Long-term debt₹10,00,000
Net profit after tax₹2,40,000
Tax Rate40%
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Interest Coverage Ratio = Net Profit before Interest and Tax / Interest on Long Term Borrowings (1)

Net Profit before Tax = Profit after Tax × 100/60
Net Profit before Tax = 2,40,000 × 100/60
= ₹4,00,000 (½)

Interest on long term debt = 8/100 × 10,00,000
= ₹80,000 (1)

Net Profit before Interest and Tax = 4,00,000 + 80,000
= ₹4,80,000 (½)

Interest Coverage Ratio = 4,80,000 / 80,000
= 6 times (1)

(4 Marks)

Q69.2026 Main 67/3/1 · QB-I 33(b)4 marks

From the following information, calculate ‘Inventory Turnover Ratio’ :

Revenue from operations₹15,00,000
Opening inventory₹2,00,000

Gross profit is 25% of cost of revenue from operations.

Closing inventory was 2 times the opening inventory.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory (1)

Cost of Revenue from Operations = Revenue from Operations – Gross Profit
Cost of Revenue from Operations = 15,00,000 – 25/100 × Cost of Revenue from Operations
Cost of Revenue from Operations = 15,00,000 × 100/125
= ₹12,00,000 (1)

Average Inventory = (Opening Inventory + Closing Inventory) / 2
Opening Inventory = 2,00,000
Closing Inventory = 2 × 2,00,000
= ₹4,00,000 (½)

Average Inventory = (2,00,000 + 4,00,000) / 2
= ₹3,00,000 (½)

Inventory Turnover Ratio = 12,00,000 / 3,00,000
= 4 times (1)

(4 Marks)

Q70.2026 Main 67/4/1 · QB-I 33(a)4 marks
  1. Calculate Revenue from Operations from the following information :
    Average inventory – ₹ 1,20,000
    Inventory turnover ratio – 8 times
    Goods are sold at a profit of 20% on revenue from operations
  2. Calculate Trade Payables Turnover Ratio from the following information :
    Credit purchases during 2024 – 25 : ₹ 24,00,000
    Creditors on 1st April, 2024 : ₹ 3,00,000
    Bills Payables on 1st April, 2024 : ₹ 2,00,000
    Creditors on 31st March, 2025 : ₹ 4,80,000
    Bills Payables on 31st March, 2025 : ₹ 2,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(i) Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory ... ½

8 = Cost of Revenue from Operations / ₹ 1,20,000

Cost of Revenue from Operations = ₹ 9,60,000 ... ½

Revenue from Operations = Cost of Revenue from Operations + Gross Profit ... ½
= 9,60,000 + 25% on Cost of Revenue from Operations
= 9,60,000 + 2,40,000
= ₹ 12,00,000 ... ½

(2 marks)

(ii) Trade Payable Turnover Ratio = Net Credit purchases / Average Trade Payables ... ½

Trade Payable Turnover Ratio = ₹ 24,00,000 / Average Trade Payables

Average Trade Payables = (Opening Trade Payables + Closing Trade Payables) / 2
= (₹ 3,00,000 + ₹ 2,00,000 + ₹ 4,80,000 + ₹ 2,20,000) / 2
= ₹ 12,00,000 / 2
= ₹ 6,00,000 ... ½

Trade payable turnover ratio = ₹ 24,00,000 / ₹ 6,00,000
= 4 times ... 1

(2 marks)

2 + 2 = 4 Marks

Q71.2026 Main 67/4/1 · QB-I 33(b)4 marks

From the details given below, calculate :

  1. Quick Ratio
  2. Working Capital Turnover Ratio
ParticularsAmount
Trade Receivables₹ 5,00,000
Inventory₹ 2,40,000
Marketable Securities₹ 1,20,000
Cash₹ 80,000
Prepaid Expenses₹ 60,000
Bills Payable₹ 1,20,000
Sundry Creditors₹ 2,40,000
Expenses Payable₹ 1,40,000
Debentures₹ 3,00,000
Revenue from Operations₹ 24,00,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(i) Quick Ratio = Quick Assets / Current Liabilities ... ½

Quick Assets = Trade receivables + Marketable securities + Cash
= ₹ 5,00,000 + ₹ 1,20,000 + ₹ 80,000
= ₹ 7,00,000 ... ½

Current Liabilities = Bills Payable + Sundry Creditors + Expenses Payable
= ₹ 1,20,000 + ₹ 2,40,000 + ₹ 1,40,000
= ₹ 5,00,000 ... ½

Quick Ratio = ₹ 7,00,000 / ₹ 5,00,000
= 7:5 Or 1.4:1 ... ½

(2 marks)

(ii) Working Capital Turnover Ratio = Revenue from operations / Working Capital ... ½

Working Capital Turnover Ratio = ₹ 24,00,000 / Working Capital

Current assets = Quick assets + Inventory + Prepaid Expenses
= ₹ 7,00,000 + ₹ 2,40,000 + ₹ 60,000
= ₹ 10,00,000 ... ½

Working Capital = Current Assets – Current Liabilities
= ₹ 10,00,000 – ₹ 5,00,000 = ₹ 5,00,000 ... ½

Working capital turnover ratio = ₹ 24,00,000 / ₹ 5,00,000
= 4.8 times ... ½

(2 marks)

2 + 2 = 4 Marks

MS prints the numerator in step (ii) as “₹ 24,00,0000” (typographical error); shown here as ₹ 24,00,000.

Q72.2026 Main 67/5/1 · QB-I 33(a)4 marks

‘Net Asset Turnover ratio’ of a company is 2 times. State with reason whether the following transactions will increase, decrease or not affect the ratio :

  1. Cash sales ₹3,00,000
  2. Issue of equity shares ₹10,00,000
  3. Issue of 9% debentures ₹5,00,000
  4. Credit purchase of goods ₹50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1
S No.TransactionsEffectReason
(i)Cash Sales ₹3,00,000Increase [½]Cash sales will increase revenue from operations while there is no change in value of net assets/capital employed. [½]
(ii)Issue of equity shares ₹10,00,000Decrease [½]Issue of equity shares will increase the value of net assets/capital employed and no change in revenue from operations. [½]
(iii)Issue of 9% debentures ₹5,00,000Decrease [½]Issue of 9% debentures will increase the value of net assets/capital employed and no change in revenue from operations. [½]
(iv)Credit purchase of goods ₹50,000No effect [½]Credit purchase of goods will not affect either revenue from operations nor capital employed. It will have no effect on any components of the ratio. [½]

(4 Marks)

Q73.2026 Main 67/5/1 · QB-I 33(b)4 marks

From the following information, calculate ‘Proprietary Ratio’ and ‘Debt-to-Equity Ratio’ :

(₹)
Equity Share Capital3,00,000
Preference Share Capital1,00,000
Reserves and Surplus1,00,000
Plant and Machinery3,50,000
Non-Current Investments1,00,000
Current Assets2,00,000
Long-term Borrowings1,50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Proprietary Ratio = Shareholders’ Funds / Total Assets [½]

Shareholders’ Funds = Equity Share Capital + Preference Share Capital + Reserves and Surplus
= 3,00,000 + 1,00,000 + 1,00,000
= ₹5,00,000 [½]

Total Assets = Plant and Machinery + Non- Current investments + Current Assets
= 3,50,000 + 1,00,000 + 2,00,000
= ₹6,50,000 [½]

Proprietary Ratio = 500000/650000
= 10/13
= 0.77 : 1 [½]

Debt-to-Equity Ratio = Debt / Equity [½]

Debt = Long Term Borrowings
= ₹1,50,000 [½]

Equity = ₹5,00,000 [½]

Debt Equity Ratio = 150000/500000
= 0.3 : 1 [½]

(4 marks)

Q74.2026 Supp. 67/7/1 · QB-I 33(a)4 marks

From the following information, calculate ‘Return on Investment (ROI)’ :

Net Profit after Interest and Tax ₹ 7,00,000; Current Assets ₹ 6,00,000; Current Liabilities ₹ 2,00,000; Tax Rate 30%; Non-Current Assets ₹ 21,00,000; and 10% Long-term Debt ₹ 20,00,000.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Return on Investment = Profit before interest and tax × 100 / Capital Employed …… 1

Profit before Interest and Tax = Net profit after interest and tax + Tax + Interest on long term debt
= ₹7,00,000 + ₹3,00,000 + 2,00,000
= ₹12,00,000 …… 1

Capital employed = Non-Current assets + Current Assets − Current Liabilities
= ₹21,00,000 + ₹6,00,000 − ₹2,00,000
= ₹25,00,000 …… 1

Return on investment = ₹12,00,000 × 100 / ₹25,00,000
= 48% …… 1

(4 marks)

Q75.2026 Supp. 67/7/1 · QB-I 33(b)4 marks

From the following information calculate :

  1. Debt Equity Ratio
  2. Debt to Capital Employed Ratio

Equity Share Capital ₹ 8,00,000; Preference Share Capital ₹ 2,50,000; General Reserve ₹ 90,000; Surplus i.e. Balance in Statement of Profit and Loss ₹ 60,000; Non-Current Liabilities ₹ 6,00,000; Current Liabilities ₹ 2,00,000; and Current Assets ₹ 4,00,000.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(i) Debt Equity Ratio = Debt / Equity …… ½

Debt = Non-Current Liabilities
= ₹6,00,000 …… ½

Equity = Equity Share Capital + Preference Share Capital + General Reserve + Surplus i.e. Balance in Statement of Profit and Loss
= ₹8,00,000 + ₹2,50,000 + ₹90,000 + ₹60,000
= ₹12,00,000 …… ½

Debt Equity Ratio = ₹6,00,000 / ₹12,00,000
= 1:2 or 0.5:1 …… ½

(ii) Debt to Capital employed ratio = Debt / Capital employed …… ½

Debt = ₹6,00,000 …… ½

Capital employed = Debt + Equity
= ₹6,00,000 + ₹12,00,000 = ₹18,00,000 …… ½

Debt to capital employed ratio = ₹6,00,000 / ₹18,00,000
= 1 : 3 or 0.33 : 1 …… ½

(4 marks)

Q76.2025 Main 67/1/1 · QB-I 33(a)4 marks

Calculate opening and closing Trade Payables from the following information :

Total purchases ₹ 15,00,000;
Cash purchases are 25% of credit purchases;
Trade payables turnover ratio is 4 times;
Closing trade payables are two times of opening trade payables.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Trade payables turnover ratio = Net Credit purchases / Average Trade Payables ... 1

Total purchases = Cash purchases + Credit purchases
⇒ ₹15,00,000 = ¼ Credit purchases + Credit purchases
⇒ ₹15,00,000 = 5/4 Credit Purchases
⇒ Credit Purchases ₹15,00,000 × 4/5
⇒ Credit purchases = ₹12,00,000 ... 1

Trade payables turnover ratio = Net Credit purchases / Average Trade Payables
⇒ 4 = ₹12,00,000 / Average Trade Payables
⇒ Average Trade Payables = ₹3,00,000

Average Trade Payables = (Opening Trade Payables + Closing Trade Payables)/2
⇒ ₹3,00,000 = (Opening Trade Payables + 2 Opening Trade Payables)/2
⇒ Opening Trade Payables = ₹3,00,000 × 2/3
⇒ Opening Trade Payables = ₹2,00,000 ... 1

Closing Trade Payables = 2 × Opening Trade Payables
⇒ Closing Trade Payables = 2 × ₹2,00,000
⇒ Closing Trade Payables = ₹4,00,000 ... 1

(4 Marks)

Q77.2025 Main 67/1/1 · QB-I 33(b)4 marks

From the following information, calculate 'Return on Investment' :

ParticularsAmount (₹)
Shareholders Funds₹ 16,00,000
10% Debentures₹ 8,00,000
Current Liabilities₹ 2,00,000
Current Assets₹ 5,00,000
Non-Current Assets₹ 21,00,000

Net profit after tax was ₹ 3,00,000 and the tax amounted to ₹ 1,00,000.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Return on Investment = Profit before interest and tax / Capital Employed × 100 ... 1

Profit before Interest and Tax = Net profit after tax + Tax + Interest on Debentures
⇒ Profit before Interest and Tax = ₹3,00,000 + ₹1,00,000 + ₹80,000
⇒ Profit before Interest and tax = ₹4,80,000 ... 1

Capital employed = Shareholders Funds + Debentures
⇒ Capital employed = ₹ 16,00,000 + ₹ 8,00,000
⇒ Capital employed = ₹ 24,00,000 ... 1

or

Capital employed = Non-Current assets + Current Assets − Current Liabilities
⇒ Capital employed = ₹21,00,000 + ₹5,00,000 − ₹2,00,000
⇒ Capital employed = ₹24,00,000

Return on investment = (₹4,80,000 / ₹24,00,000) × 100
⇒ Return on investment = 20% ... 1

(4 marks)

Q78.2025 Main 67/2/1 · QB-I 33(a)4 marks

From the following information, calculate Opening Trade Receivables and Closing Trade Receivables :

Trade Receivables Turnover Ratio – 4 times
Closing Trade Receivables were ₹ 20,000 more than that in the beginning.
Cost of Revenue from operations – ₹ 6,40,000.
Cash Revenue from operations – 1/3rd of Credit Revenue from Operations
Gross Profit Ratio – 20%

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Trade Receivables Turnover Ratio = Net Credit Revenue from operations / Average Trade Receivables ……… 1

Cost of Revenue from operations = ₹6,40,000
Gross Profit = 20% of Revenue from operations = 25% of Cost of Revenue from operations
⇒ 25/100 x ₹6,40,000
⇒ ₹1,60,000
Revenue from operations = Cost of Revenue from operations + Gross Profit
⇒ Revenue from operations = ₹6,40,000 + ₹1,60,000
⇒ Revenue from operations = ₹8,00,000

Revenue from operations = Cash Revenue from operations + Credit Revenue from operations
⇒ ₹8,00,000 = 1/3 Credit Revenue from operations + Credit Revenue from operations
⇒ Credit Revenue from operations = ₹6,00,000 ……… 1

Trade Receivables Turnover Ratio = Net Credit Revenue from operations / Average Trade Receivables
⇒ 4 = ₹6,00,000/ Average Trade Receivables
⇒ Average Trade Receivables = ₹1,50,000

Average Trade Receivables = (Opening Trade Receivables + Closing Trade Receivables) / 2
Let Opening Trade Receivables be x
⇒ Average Trade Receivables = [x + (x + ₹20,000)]/2
⇒ ₹1,50,000 = x + ₹10,000
⇒ x = ₹1,40,000
⇒ Opening Trade Receivables = ₹1,40,000 ……… 1
⇒ Closing Trade Receivables = ₹1,40,000 + ₹20,000
⇒ Closing Trade Receivables = ₹1,60,000 ……… 1

(4 marks)

Q79.2025 Main 67/2/1 · QB-I 33(b)4 marks

From the following information, calculate opening and closing inventory :

Gross Profit Ratio – 25%
Revenue from operations – ₹ 8,00,000
Inventory turnover ratio – 4 times
Opening inventory was 2 times of the closing inventory.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Inventory Turnover Ratio = Cost of Revenue from operations/ Average Inventory ……… 1

Gross Profit Ratio = Gross Profit/ Net Revenue from Operations
⇒ 25 = Gross Profit/ ₹8,00,000
⇒ Gross Profit = ₹2,00,000
Cost of Revenue from operations = Revenue from operations – Gross Profit
⇒ Cost of Revenue from operations = ₹8,00,000 - ₹2,00,000
⇒ Cost of Revenue from operations = ₹6,00,000 ……… 1

Inventory Turnover Ratio = Cost of Revenue from operations/ Average Inventory
⇒ 4 = ₹6,00,000/ Average Inventory
⇒ Average Inventory = ₹1,50,000

Average Inventory = (Opening Inventory + Closing Inventory)/2
⇒ ₹1,50,000 = (2 Closing Inventory + Closing Inventory)/2
⇒ Closing Inventory = ₹1,00,000 ……… 1
⇒ Opening Inventory = 2 Closing Inventory
⇒ Opening Inventory = ₹2,00,000 ……… 1

(4 marks)

Q80.2025 Main 67/4/1 · QB-I 33(a)4 marks

From the following information, calculate Interest Coverage Ratio :

ParticularsAmount (₹)
Profit after Tax6,30,000
Tax Rate30%
15% Debentures20,00,000
Equity Share Capital10,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1
  • Interest Coverage Ratio = Profit Before Interest and Tax / Interest on Long Term borrowings (1)
  • Profit Before Tax = Profit After Tax x 100/70
    = 6,30,000 x 100/70
    = ₹ 9,00,000 (1)
  • Profit Before Interest and Tax = Profit Before Tax + Interest on Debentures
    = 9,00,000 + 3,00,000
    = ₹ 12,00,000 (1)
  • Interest Coverage Ratio = 12,00,000 / 3,00,000
    = 4 times (1)

(1) + (1) + (1) + (1) = 4 marks

Q81.2025 Main 67/4/1 · QB-I 33(b)4 marks

Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following information :

Trade Receivables Turnover Ratio=5 times
Cost of Revenue from operations=₹ 8,00,000
Gross Profit Ratio=20%

Closing Trade Receivables were ₹ 40,000 more than that in the beginning.

Cash sales were 1/4 times of Credit sales.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1
  • Trade Receivable Turnover Ratio = Net Credit Revenue from Operations / Average Trade Receivable (½)
  • Revenue from Operation = Cost of Revenue from Operation + Gross Profit
    Revenue from Operation = 8,00,000 + 1/5 of Revenue from Operation
    4/5 Revenue from Operation = 8,00,000
    Revenue from Operation = 8,00,000 x 5/4
    Revenue from Operation = ₹ 10,00,000 (1)
  • Revenue from Operation = Cash Revenue from Operation + Credit Revenue from Operation
    10,00,000 = 1/4 Credit Revenue from Operation + Credit Revenue from Operation
    10,00,000 = 5/4 Credit Revenue from Operation
    10,00,000 x 4/5 = Credit Revenue from Operation
    ₹ 8,00,000 = Credit Revenue from Operation (1)
  • 5 = 8,00,000 / Average Trade Receivable
    Average Trade Receivable = ₹ 1,60,000 (½)
  • Average Trade Receivable = Opening Trade Receivables + Closing Trade Receivable / 2
    Average Trade Receivable = Opening Trade Receivables + Opening Trade Receivable + 40,000 / 2
    1,60,000 x 2 = 2 x Opening Trade Receivable + 40,000
    3,20,000 – 40,000 = 2 x Opening Trade Receivable
    2,80,000 / 2 = Opening Trade Receivable
    ₹ 1,40,000 = Opening Trade Receivable (½)

    ₹ 1,80,000 = Closing Trade Receivable (½)

= 4 marks

Q82.2025 Main 67/5/1 · QB-I 33(a)4 marks

The current ratio of Jack Ltd. is 3·2 : 1 and the quick ratio is 1·5 : 1. The excess of current assets over quick assets was represented by inventories which were ₹ 68,000. Calculate :

  1. Current Assets
  2. Quick Assets
  3. Current Liabilities
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Current Ratio = Current Assets / Current Liabilities (½)
3.2 = Current Assets / Current Liabilities
Current Assets = 3.2 Current Liabilities

Quick Ratio = Quick Assets / Current Liabilities (½)
1.5 = Quick Assets / Current Liabilities
Quick Assets = 1.5 Current Liabilities

Current Assets − Quick Assets = Inventory
3.2 Current Liabilities − 1.5 Current Liabilities = 68,000
1.7 Current Liabilities = 68,000
Current Liabilities = 40,000

(i) Current Assets = 40,000 x 3.2 = ₹1,28,000 (1)
(ii) Quick Assets = 40,000 x 1.5 = ₹60,000 (1)
(iii) Current Liabilities = ₹40,000 (1)

(=4 marks)

Q83.2025 Main 67/5/1 · QB-I 33(b)4 marks

From the following information obtained from the books of KVK Ltd., calculate ‘Net Assets Turnover Ratio’ and ‘Debt Equity Ratio’ :

InformationAmount (₹)
Preference Share Capital8,00,000
Equity Share Capital12,00,000
General Reserve2,00,000
Balance in the Statement of Profit and Loss6,00,000
15% Debentures4,00,000
12% Loan4,00,000
Revenue from Operations for the year 2023 – 2472,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(i) Net Assets Turnover Ratio = Revenue From Operations / Net Assets or Capital Employed (½)
Net Assets or Capital Employed = Debt + Equity = 8,00,000 + 28,00,000 = ₹36,00,000 (1)
Net Assets Turnover Ratio = 72,00,000 / 36,00,000 = 2 times (½)

(2 marks)

(ii) Debt Equity Ratio = Long Term Debt / Equity or Shareholder’s Funds (½)
Debt = Debentures + Loan = 4,00,000 + 4,00,000 = ₹8,00,000 (½)
Equity or Shareholder’s Funds = Preference Share Capital + Equity share Capital + General Reserve + Balance in Statement of P&L
= 8,00,000 + 12,00,000 + 2,00,000 + 6,00,000 = ₹28,00,000 (½)
Debt Equity Ratio = 8,00,000 / 28,00,000 = 2:7 = 0.28:1 (½)

(2 marks) (=4 marks)

Q84.2025 Main 67/6/1 · QB-I 33(a)4 marks

The following information has been obtained from the books of Vivek Ltd. :

₹
10% Debentures15,00,000
Current Liabilities2,00,000
Non-Current Assets25,00,000
Current Assets7,00,000

During the year ended 31st March, 2024, net profit after interest and tax amounted to ₹4,10,000. Tax paid was ₹40,000.

Calculate Return on Investment.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Return on Investment = (Net Profit before interest and tax / Capital employed) × 100

Interest on 10% debentures = 10/100 × 15,00,000 = ₹1,50,000 (1)

Net Profit before interest and tax = Net Profit after interest and tax + Tax + Interest on 10% debentures = 4,10,000 + 40,000 + 1,50,000 = ₹6,00,000 (1)

Capital employed = Non Current Assets + Current Assets – Current Liabilities = 25,00,000 + 7,00,000 – 2,00,000 = ₹30,00,000 (1)

Return on Investment = (Net Profit before interest and tax / Capital employed) × 100 = (6,00,000 / 30,00,000) × 100 = 20% (1)

(1 × 4 = 4 marks)

Q85.2025 Main 67/6/1 · QB-I 33(b)4 marks

Calculate 'Operating Ratio' from the following information :

₹
Revenue from operations
   Cash
   Credit

5,00,000
20,00,000
Purchases
   Cash
   Credit

2,00,000
10,00,000
Carriage Inward20,000
Salaries1,45,000
Increase in inventory50,000
Wages85,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Operating Ratio = (Operating Cost / Revenue from operations) × 100 (1)

Operating Cost = Cost of revenue from operations + Operating expenses

Cost of revenue from operations = 2,00,000 + 10,00,000 + 20,000 – 50,000 + 85,000 = ₹12,55,000

Operating expenses = ₹1,45,000

Operating Cost = 12,55,000 + 1,45,000 = ₹14,00,000 (1)

Revenue from operations = Cash Revenue from Operations + Credit Revenue from Operations = 5,00,000 + 20,00,000 = ₹25,00,000 (1)

Operating Ratio = (Operating Cost / Revenue from operations) × 100
Operating ratio = (14,00,000 / 25,00,000) × 100 = 56% (1)

(1 × 4 = 4 marks)

Q86.2025 Main 67/7/1 · QB-I 33(a)4 marks

The following information has been obtained from the books of Gama Ltd. :

ParticularsAmount (₹)
Inventory2,50,000
Total Current Assets3,40,000
Shareholder’s Funds10,00,000
12% Debentures20,00,000
Net Profit Before Tax9,60,000
Cost of Revenue from Operations6,00,000

Calculate :

  1. Debt Equity Ratio
  2. Interest Coverage Ratio
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(i) Debt Equity Ratio = Debt / Equity ……… ½
= 20,00,000 / 10,00,000 ……… 1
= 2:1 ……… ½

(ii) Interest Coverage Ratio = Net Profit before Interest and Tax / Interest on Long Term Debt ……… ½
Net Profit before Interest and Tax = 9,60,000 + 2,40,000
= ₹12,00,000 ……… ½
Interest on Long Term Debt = 12% of 20,00,000 = ₹2,40,000 ……… ½
Interest Coverage Ratio = 12,00,000 / 2,40,000 = 5 times ……… ½

(2 + 2 = 4 Marks)

Q87.2025 Main 67/7/1 · QB-I 33(b)4 marks

Calculate Current Assets and Quick Assets of Beeta Ltd. from the following information :

Quick Ratio = 0·75 : 1
Current Liabilities = ₹6,00,000
Revenue from Operations are ₹4,00,000
Gross Profit ratio is 20% of revenue from operations
Inventory turnover ratio = 4 times
Inventory at the end is ₹40,000 more than inventory at the beginning.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Quick Ratio = Quick Assets / Current Liabilities ……… ½
0.75 = Quick Assets / 6,00,000
Quick Assets = ₹4,50,000 ……… ½

Gross Profit = 20% of Revenue from Operations
= 20% of 4,00,000
= ₹80,000 ……… ½

Cost of Revenue from Operations = Revenue from Operations − Gross Profit
= 4,00,000 − 80,000
= ₹3,20,000 ……… ½

Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory ……… ½
4 = 3,20,000 / Average Inventory
Average Inventory = ₹80,000
Average Inventory = (Opening Inventory + Closing Inventory) / 2
80,000 = [Opening Inventory + (Opening Inventory + 40,000)] / 2
Opening Inventory = ₹60,000 ……… ½
Closing Inventory = ₹1,00,000 ……… ½

Current Assets = Quick Assets + Closing Inventory
Current Assets = 4,50,000 + 1,00,000
Current Assets = ₹5,50,000 ……… ½

(4 Marks)

Q88.2025 Supp. 67/S/1 · QB-I 33(a)4 marks

Calculate Current Assets and Quick Assets of a company from the following information :

Quick Ratio = 0·70 : 1
Inventory Turnover Ratio = 5 times
Inventory at the end was ₹ 20,000 more than inventory in the beginning
Gross Profit = ₹ 75,000
Current Liabilities = ₹ 80,000
Revenue from Operations = ₹ 4,00,000

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Inventory Turnover Ratio = 5 times

Inventory Turnover Ratio = Cost of Revenue from Operations/ Average Inventory ……… ½

Cost of Revenue from Operations = Revenue from Operations − Gross profit
= ₹4,00,000 − ₹75,000
= ₹3,25,000 ……… ½

Inventory Turnover Ratio = ₹3,25,000/ Average Inventory
5 = ₹3,25,000/ Average Inventory
Average Inventory = ₹3,25,000/5
Average Inventory = ₹65,000 ……… ½

Average Inventory = (Opening Inventory + Closing Inventory)/2
₹65,000 = [Opening Inventory + (Opening Inventory + ₹20,000)]/2
Opening Inventory = ₹55,000 ……… ½

Closing Inventory = ₹55,000 + ₹20,000 = ₹75,000 ……… ½

Quick Ratio = Quick Assets/ Current Liabilities ……… ½
0.70 = Quick Assets/ ₹80,000
Quick Assets = ₹56,000 ……… ½

Current Assets = Quick Assets + Closing Inventory
Current Assets = ₹56,000 + ₹75,000
= ₹1,31,000 ……… ½

= 4 marks

Q89.2025 Supp. 67/S/1 · QB-I 33(b)4 marks

Calculate ‘Return on Investment’ from the following information :

Net profit after interest and tax ₹ 6,00,000
10% Debentures ₹ 20,00,000
Capital employed ₹ 50,00,000
Tax rate 40%

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Return on investment = (Profit before interest and tax / Capital Employed) x 100 ……… 1

Let Profit after interest but before tax be x.
Therefore, x − 40x/100 = ₹6,00,000
60x/100 = ₹6,00,000
Profit after interest but before tax = x = ₹10,00,000

Interest on Debentures = 10% of ₹20,00,000 = ₹2,00,000

Profit before Interest and Tax = Profit after interest but before tax + Interest on Debentures
Profit before Interest and Tax = ₹10,00,000 + ₹2,00,000
Profit before Interest and Tax = ₹12,00,000 ……… 2

Note:- If an examinee has calculated Profit before Interest and Tax in any other way, full credit (2 marks) is to be awarded.

Return on investment = (₹12,00,000 / ₹50,00,000) x 100
Return on investment = 24% ……… 1

= 4 marks

Q90.2023 Main 67/1/1 · QB-I 33(i)4 marks

Calculate Gross Profit Ratio from the following information :

Inventory Turnover Ratio : 6 times
Average Inventory : ₹ 4,00,000
Goods are sold at a profit of 25% on cost

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Gross Profit ratio = Gross Profit / Revenue from Operations × 100 [½]

Inventory turnover ratio = Cost of Revenue from Operations / Average Inventory

Cost of Revenue from Operations = 6 × 4,00,000 = ₹ 24,00,000 [1]

Gross Profit : 25% of Cost = 25/100 × 24,00,000 = ₹ 6,00,000 [1]

Gross Profit Ratio = 6,00,000 / 30,00,000 × 100 [1]
= 20% [½]

(½ + 1 + 1 + 1 + ½ = 4 marks)

Q91.2023 Main 67/1/1 · QB-I 33(ii)4 marks

The Current Ratio of a company is 2 : 1. State giving reasons, which of the following transactions would improve, reduce or not change the ratio :

  1. Purchased goods on credit ₹ 40,000
  2. Sale of furniture of ₹ 8,000 at a loss of ₹ 2,000
  3. Cash received from trade receivables ₹ 15,000
  4. Issued equity shares ₹ 6,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1
  1. Current Ratio would reduce.
    Reason: Current assets as well as Current Liabilities would increase by the same amount.
  2. Current Ratio would improve.
    Reason: Current assets would increase, while current liabilities remain the same.
  3. Current Ratio would not change.
    Reason: Both Current assets and Current liabilities remain the same.
  4. Current Ratio would improve.
    Reason: Current assets would increase whereas there would be no change in Current Liabilities.

(½ mark for effect and ½ mark for reason; 4 marks)

Q92.2023 Main 67/2/1 · QB-I 33(a)4 marks

(i) Calculate Revenue from operations of 'BN Ltd.' from the following information :

Current Assets₹8,00,000
Quick ratio1.5 : 1
Current ratio2 : 1
Inventory turnover ratio6 times

Goods were sold at a profit of 25% on cost.

(ii) The operating ratio of a company is 60%. State whether 'purchase of goods costing ₹20,000' will increase, decrease or not change the operating ratio. 3 + 1 = 4

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(i) Current Ratio 2 : 1
Current Ratio = Current Assets/ Current Liabilities
Therefore, 2/1 = 8,00,000/Current Liabilities
Current liabilities = ₹4,00,000 …… [½]

Quick Ratio = 1.5:1
Quick Ratio = Quick Assets/ Current Liabilities
1.5/1 = Quick Assets/ 4,00,000
So, Quick Assets = ₹6,00,000 (1.5 × 4,00,000) …… [½]

Inventory = Current Assets − Quick Assets
= 8,00,000 − 6,00,000 = ₹2,00,000 …… [½]

Inventory Turnover Ratio = 6 times
Inventory Turnover Ratio = Cost of Revenue from Operations/Average Inventory
6 = Cost of Revenue from Operations/ 2,00,000
∴ Cost of Revenue from Operations = 2,00,000 × 6 = ₹12,00,000 …… [½]

Gross Profit Ratio = 25% on cost
So, GP = 12,00,000 × 25% = ₹3,00,000 …… [½]

Revenue from Operation = Cost of Revenue from Operations + Gross Profit
= 12,00,000 + 3,00,000
= ₹15,00,000 …… [½]

(3 Marks)

(ii) Purchase of Goods costing ₹20,000 will not change the operating ratio. (1 Mark)

(3+1 = 4 Marks)

Q93.2023 Main 67/2/1 · QB-I 33(b)4 marks

The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio :

  1. Obtained a loan from ICICI Bank ₹1,00,000 payable after 5 yrs.
  2. Purchased machinery for cash ₹1,50,000.
  3. Redeemed 9% debentures ₹1,00,000.
  4. Issued equity shares for purchase of machinery of ₹5,00,000 to the vendors.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1
  1. Increase, Reason = Debt will increase, Equity will not change.
  2. No change, Reason = Neither debt nor equity are affected.
  3. Decrease, Reason = Debt will decrease while equity will remain same.
  4. Decrease, Reason = Equity will increase, debt remain same.

(½ Mark for effect + ½ mark for reason) = 1×4 = 4 Marks

Q94.2023 Main 67/3/1 · QB-I 33(a)4 marks

Calculate Gross Profit Ratio from the following information :

Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade Receivables ₹ 2,00,000; Trade Receivables Turnover Ratio 6 times and Cash Sales 25% of Total Sales.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Gross Profit Ratio = Gross Profit / Revenue from Operations × 100 (½)

Credit Revenue from Operations = Trade Receivables Turnover Ratio × Average Trade Receivables
= 6 × 2,00,000
= ₹12,00,000 (1)

Then, Revenue from operations = Cash revenue from operations + Credit revenue from operations
x = x/4 + 12,00,000
3x/4 = 12,00,000
x = 12,00,000 × 4/3
Revenue from Operations or x = ₹16,00,000 (1)

Cost of Revenue from Operations = Average Inventory × Inventory Turnover Ratio
= 8 × 1,60,000
= ₹12,80,000 (½)

Gross Profit = Revenue from operations – Cost of revenue from operations
Now, Gross profit = 16,00,000 – 12,80,000
= ₹3,20,000 (½)

Gross Profit Ratio = 3,20,000/16,00,000 × 100 = 20% (½)

= 4 marks

Q95.2023 Main 67/3/1 · QB-I 33(b)4 marks

From the following information, calculate Working Capital Turnover Ratio :

Particulars₹
Capital Employed₹ 1,00,000
Non-Current Assets₹ 80,000
Cost of Revenue from Operations₹ 3,20,000
Gross Profit Ratio20%
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Working Capital Turnover Ratio = Revenue from Operations / Working Capital (1)

Revenue from Operations = Cost of Revenue from Operations + Gross Profit
x = 3,20,000 + x/5
4/5 x = 3,20,000
Revenue from Operations or x = ₹ 4,00,000 (1)

Working capital = Capital Employed – Non Current Assets
= 1,00,000 – 80,000
= 20,000 (1)

Now, Working Capital Turnover ratio = ₹4,00,000/ ₹20,000
= 20 times (1)

= 4 marks

Q96.2023 Main 67/4/1 · QB-I 33(i)4 marks

(a) Y Ltd. has a Current Ratio of 3·5 : 1 and Quick Ratio of 2 : 1. If excess of current assets over quick assets represented by inventory is ₹ 48,000, calculate current assets and current liabilities.

(b) Calculate Debt to Equity Ratio :

Shareholder Funds– ₹ 2,00,000
Reserves and Surplus– ₹ 1,00,000
Total Debt– ₹ 4,00,000
Current Liabilities– ₹ 1,00,000

2+2=4

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(i)(a)
Current Ratio= Current Assets/ Current Liabilities
Current Ratio= 3.5:1
Current Assets/ Current Liabilities= 3.5:1
Current Assets(CA)= 3.5 Current Liabilities(CL) ..... ½

Quick Ratio= Quick Assets/ Current Liabilities
Quick Ratio = 2:1
Quick Assets/ Current Liabilities= 2:1
Quick Assets(QA) = 2 Current Liabilities(CL) ..... ½

Inventory= CA- QA
48,000= 3.5 CL- 2 CL
48,000= 1.5 CL

Current Liabilities (CL)= ₹32000 ..... ½

Current Assets(CA)= 3.5x 32000= ₹1,12,000 ..... ½

2 marks

(i)(b)
Debt Equity Ratio= Debt/ Equity ..... ½

Debt= Total Debt- Current Liabilities= 4,00,000-1,00,000= 3,00,000 ..... ½

Equity= Shareholder’s funds= 2,00,000 ..... ½

Debt Equity Ratio= 3,00,000/ 2,00,000= 1.5:1 ..... ½

2 marks

2+2=4 marks

Q97.2023 Main 67/4/1 · QB-I 33(ii)4 marks

The Current Ratio of a company is 2 : 1. State giving reasons which of the following transactions would improve, reduce or not change the ratio :

  1. Purchase of goods for cash ₹ 60,000
  2. Purchase of fixed assets for cash ₹ 2,00,000
  3. Sale of goods costing ₹ 20,000 for ₹ 23,000 on credit
  4. Issue of shares ₹ 10,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1
S. No.Effect on RatioReason
aNo changeNo change in both current assets and current liabilities.
bDeclineCurrent assets decrease with no change in current liabilities.
cImproveCurrent assets increase with no change in current liabilities
dImproveCurrent assets increase with no change in current liabilities

½ mark for effect & ½ mark for reason
1x4 =4 marks

Q98.2023 Main 67/5/1 · QB-I 33(a)4 marks

From the following information, calculate the value of opening and closing inventory :

Inventory Turnover Ratio – 4 times
Gross Profit = 20% on Revenue from operations
Revenue from operations = ₹ 10,00,000
Opening inventory is 25% of the inventory at the end.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory ……… (½)

Revenue from Operations = ₹10,00,000

Gross profit = 20% of Revenue from Operations
= 20% of 10,00,000
= ₹2,00,000 ……… (½)

Cost of Revenue from Operations = Revenue from Operations – Gross Profit
= 10,00,000 – 2,00,000
= ₹8,00,000 ……… (1)

Now, Inventory Turnover Ratio = 4 times
4 = 8,00,000 / Average Inventory
Average Inventory = ₹2,00,000 ……… (½)

Average Inventory = (Opening Inventory + Closing Inventory) / 2
2,00,000 = (1/4 Closing Inventory + Closing Inventory) / 2
4,00,000 = 1/4 Closing Inventory + Closing Inventory
4,00,000 = 5/4 Closing Inventory

Closing Inventory = ₹3,20,000 ……… (1)

Opening Inventory = 1/4 × 3,20,000
= ₹80,000 ……… (½)

(4 marks)

Q99.2023 Main 67/5/1 · QB-I 33(b)4 marks

Debt-Equity Ratio of Z Ltd. is 2 : 1. State with reason whether the following transactions will improve, decline or will not change the debt-equity ratio :

  1. Conversion of ₹ 3,00,000, 9% debentures into equity shares.
  2. Cash received from debtors ₹ 1,00,000.
  3. Redemption of ₹ 10,00,000, 11% debentures.
  4. Purchase of goods on credit ₹ 4,00,000.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1
S.No.Effect on RatioReason
iDeclineDecrease in Debt and Increase in Equity
iiNo ChangeNo change in Debt and No change in Equity
iiiDeclineDecrease in Debt and No change in Equity
ivNo ChangeNo change in Debt and No change in Equity

(½ × 8 = 4 marks)

Q100.2023 Supp. 67/C/1 · QB-I 33(a)4 marks

(i) From the following information, calculate Operating Ratio :

₹
Revenue from Operations10,00,000
Cost of Revenue from Operations4,00,000
Selling expenses80,000
Administrative expenses1,20,000

(ii) From the following details, calculate Interest Coverage Ratio :

Net Profit before Tax : ₹ 2,00,000
10% Long term debt : ₹ 5,00,000
Tax rate 40%

(2+2=4)

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(i) Operating Ratio = (Cost of Revenue from Operations + Operating Expenses) / Revenue from Operations …….1/2 mark

= (₹4,00,000 + (₹80,000 + ₹1,20,000)) / 10,00,000 ……………..1 mark

= 60% ……………..1/2 mark

2 marks

+

(ii) Interest Coverage Ratio = Profit before Interest and Tax / Interest on Long Term Debt …………… 1/2 mark

Interest on Long Term Debt = 10% of ₹5,00,000 = ₹50,000

Interest Coverage Ratio = (₹2,00,000 + ₹50,000) / ₹50,000 ……………..1 mark

= 5 times ……………..1/2 mark

2 marks = 4 marks

Q101.2023 Supp. 67/C/1 · QB-I 33(b)4 marks

The Current Ratio of Zenith Ltd. is 2 : 1. State giving reasons, which of the following transactions will improve, reduce or not change the current ratio :

  1. Payment to creditors ₹ 20,000
  2. Purchased goods on credit ₹ 80,000
  3. Cash received from debtors ₹ 15,000
  4. Issue of equity shares ₹ 5,00,000
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1
S.No.Effect on RatioReason
(i)IncreaseDecrease in Current Assets and Current Liabilities
(ii)DecreaseIncrease in Current Assets and Current Liabilities
(iii)No ChangeNo change in Current Assets and Current Liabilities
(iv)IncreaseIncrease in Current Assets with No change in Current Liabilities

½ mark for the effect + ½ mark for reason = 1 x 4 = 4 marks

Q102.SQP 2025-26 · QB-I 33(a)4 marks

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transactions will increase , decrease or will have no change on the ratio

  1. Goods purchased on Credit
  2. Outstanding Expenses paid
  3. Sale of Fixed Assets a 20% loss
  4. Issue of Debentures at Premium to Vendors
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CBSE Sample Question Paper 2025-26 · Marking Scheme
  1. Ratio will decrease Current Liabilities (Trade Payables) will increase
  2. Ratio will decrease as both Quick Assets (Cash) and Current Liabilities (Outstanding Expenses) will decrease.
  3. Ratio will increase as Current Assets (Cash and Cash Equivalents) will increase.
  4. No change as no impact on Quick Assets and Current Liabilities.
Q103.SQP 2025-26 · QB-I 33(b)4 marks

From the following information, calculate Trade Receivables Turnover Ratio:

Cost of Revenue from Operations (Cost of Goods Sold) : Rs. 6,00,000 Gross Profit on Cost : 25% Cash Sales: 20% of Total Sales Opening Debtors: Rs. 1,00,000 Closing Debtors : Rs. 2,00,000. Provision for Doubtful Debts: Opening Rs. 10,000 and Closing Rs.20,000.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Trade Receivables Turnover Ratio = Credit Revenue from Operations / Average Trade Receivables
= 6,00,000/1,50,000 = 4 times

Revenue From Operations Cost of Revenue from Operations + Gross Profit = 6,00,000 + 1,50,000 = 7,50,000

Cash Revenue from Operations = 20% of Revenue From Operations = 20% of 7,50,000 = 1,50,000

Credit Revenue from Operations = Revenue from operations – Cash Revenue from operations = 7,50,000 – 1,50,000 = 6,00,000

Average Trade Receivables = (Opening Trade Rec. + Closing Trade Rec.) / 2 = (1,00,000 + 2,00,000)/2 = 1,50,000

Q104.SQP 2026-27 · QB-I 33(a)4 marks

Quick Ratio of Alpha Traders is 1.2 : 1. Given that their operating cycle is of 8 months, state with reasons whether the following transactions will increase, decrease, or not affect the Quick Ratio:

  1. Bills Receivable ₹40,000 were dishonoured and treated as bad debts.
  2. Stock worth ₹25,000 was destroyed by fire; insurance company admitted claim of ₹18,000 receivable within 6 months.
  3. Furniture having book value ₹60,000 was sold for ₹52,000; sale proceeds to be received in 11th month from the date of sale.
  4. 12% Debentures of ₹2,00,000 were issued at a premium of 10% to a supplier of machinery costing ₹ 3,00,000 and balance was settled through cheque.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

I. Decrease in Quick Ratio
Reason: Quick Assets decrease while Quick Liabilities remain unchanged

II. Increase in Quick Ratio
Reason: A new Quick Asset (insurance receivable) is created, received with in operating cycle

III. Increase in Quick Ratio
Reason: Quick Assets will increase as cash will be received in 12 months.

IV. Decrease in Quick Ratio
Reason: Quick Assets decrease (Bank reduced by 80,000), while Quick Liabilities remain unchanged.

Q105.SQP 2026-27 · QB-I 33(b)4 marks

From the given information, calculate the following ratios:

  1. Current ratio
  2. Inventory Turnover ratio

Information Revenue from operations (Net sales) ₹ 5,00,000, opening inventory ₹7,000, closing inventory ₹ 4,000 more than the opening inventory, net purchase is 70% of revenue from operations, operating expenses ₹ 30,000, liquid assets ₹ 75,000, wages ₹ 10,000, salaries ₹ 20,000, carriage inwards ₹ 40,000, prepaid expenses ₹2,000, current liabilities ₹ 60,000, 9% debentures ₹ 3,00,000, long - term loan from bank ₹ 1.00,000, equity share capital ₹ 10,00,000 and 8% preference share capital ₹2,00,000.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Current ratio = Current Assets/Current Liabilities
Current Assets = Liquid assets + Closing inventory+ Prepaid expenses =75,000+ 11,000+2,000 = 88,000
Current ratio = 88,000/60,000 = 1.47:1

Inventory Turnover ratio = Cost of revenue from operation/Average inventory
Cost of revenue from operation = Opening Inventory + Purchases + Direct expenses – Closing inventory = 7,000+3,50,000+10,000+40,000-11,000
= ₹ 3,96,000
Average inventory = (7,000+11,000)/2 = ₹ 9,000
Inventory Turnover ratio = 3,96,000/9,000 = 44 times

Part B · Financial Statement Analysis

12. Cash Flow Statement

Q1.2026 Main 67/1/1 · QB-I 29(a)1 mark

Purchase of marketable securities or short term investments are not considered for the preparation of cash flow statement because :

  1. These are current assets
  2. These constitute cash equivalents
  3. These are intangible assets
  4. These are tangible assets
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) These constitute cash equivalents

Q2.2026 Main 67/1/1 · QB-I 29(b)1 mark

Which of the following will not amount to cash outflow from operating activities ?

  1. Purchase of marketable securities
  2. Cash payment to suppliers of goods
  3. Payment of employee benefit expenses
  4. Payment of insurance premium
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) Purchase of marketable securities

Q3.2026 Main 67/1/1 · QB-I 301 mark

Statement – I : In case of non-financial enterprises, receipts of interest and dividend are classified as financing activities.

Statement – II : In case of financial enterprises receipts of interest and dividend are classified as investing activities.

Choose the correct option from the following :

  1. Both the Statements are true.
  2. Statement I is true and Statement II is false.
  3. Statement I is false and Statement II is true.
  4. Both the Statements are false.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(D) Both the Statements are false.

Q4.2026 Main 67/2/1 · QB-I 271 mark

Statement-I : Cash equivalents mean short term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Statement-II : An investment normally qualifies as a cash equivalent only when it has a short maturity period of three months or more from the date of acquisition.

Choose the correct alternative from the following :

  1. Both the Statements are false.
  2. Both the Statements are true.
  3. Statement I is false and Statement II is true.
  4. Statement I is true and Statement II is false.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) Statement I is true and Statement II is false

Q5.2026 Main 67/2/1 · QB-I 29(a)1 mark

Which of the following transactions is NOT a cash flow from investing activity ?

  1. Sale of machinery for cash ₹ 90,000
  2. Purchase of goodwill ₹ 5,00,000
  3. Purchase of marketable securities for cash ₹ 20,000
  4. Sale of furniture for ₹ 43,000 for cash
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Purchases of marketable securities for cash ₹ 20,000

Q6.2026 Main 67/2/1 · QB-I 29(b)1 mark

Which of the following transactions will not result in flow of cash ?

  1. Purchase of furniture through a cheque
  2. Payment of salaries
  3. Issue of shares
  4. Cash deposited in the bank
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(D) Cash deposited in the bank

Q7.2026 Main 67/3/1 · QB-I 29(a)1 mark

Which of the following are ‘investing activities’ for preparation of Cash Flow Statement ?

  1. Payment of taxes
  2. Payment of dividend and interest
  3. Receipt of interest and dividend

Choose the correct option from the following :

  1. (i), (ii) and (iii)
  2. (i) and (ii)
  3. (ii) and (iii)
  4. (iii) only
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) (iii) only

Q8.2026 Main 67/3/1 · QB-I 29(b)1 mark

Which of the following statements is correct ?

  1. Sale of property is a financing activity.
  2. Cash deposited into bank will result in outflow of cash.
  3. Receipt of royalties is an operating activity.
  4. Buy-back of own equity shares is an investing activity.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C) Receipt of royalties is an operating activity

Q9.2026 Main 67/3/1 · QB-I 301 mark

Statement I : Operating activities are the activities that constitute the primary or main activities of an enterprise.

Statement II : Cash advances and loans made by financial enterprises are usually classified as operating activities.

Choose the correct option from the following :

  1. Both the Statements are false.
  2. Statement I is true and Statement II is false.
  3. Statement I is false and Statement II is true.
  4. Both the Statements are true.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) Both the statements are true

Q10.2026 Main 67/4/1 · QB-I 271 mark

Statement I : Quick Credit Ltd., a finance company, paid interest on borrowings amounting to ₹ 80,000. This will be shown as cash outflow from operating activities in its Cash Flow Statement.

Statement II : Royal Foods Ltd., a non-financial enterprise, paid dividends amounting to ₹ 2,30,000. It will be shown as cash outflow from operating activities in its Cash Flow Statement.

Choose the correct option from the following :

  1. Statement I is true and Statement II is false.
  2. Statement I is false and Statement II is true.
  3. Both the Statements are true.
  4. Both the Statements are false.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Statement I is true and Statement II is false

Q11.2026 Main 67/4/1 · QB-I 28(a)1 mark

The following information was obtained about the cash flows of XYZ Ltd. for the year ended 31st March, 2025 :

Cash inflows from operating activities ₹ 28,000; cash used in investing activities ₹ 32,000 and cash inflows from financing activities ₹ 5,000. If the opening balance of cash and cash equivalents on 1st April, 2024 was ₹ 25,000, the closing balance of cash and cash equivalents on 31st March, 2025 will be :

  1. ₹ 90,000
  2. ₹ 6,000
  3. ₹ 26,000
  4. ₹ 70,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 26,000

Q12.2026 Main 67/4/1 · QB-I 28(b)1 mark

The following information was obtained from the books of PQR Ltd. :

Profit and Loss balance (Dr.) as at 31st March, 2024 : ₹ 30,000
Profit and Loss balance (Cr.) as at 31st March, 2025 : ₹ 56,000
Interim Dividend paid during the year : ₹ 36,000

The net profit before taxation for the year ended 31st March, 2025 will be :

  1. ₹ 86,000
  2. ₹ 62,000
  3. ₹ 1,22,000
  4. ₹ 50,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) ₹ 1,22,000

Q13.2026 Main 67/5/1 · QB-I 281 mark

Statement I : In case of non-financial enterprises, payment of interest and dividend are classified as financing activities.

Statement II : In case of financial enterprises, payment of interest and dividend are classified as investing activities.

Choose the correct option from the following :

  1. Both the statements are true.
  2. Both the statements are false.
  3. Statement I is true, but Statement II is false.
  4. Statement I is false, but Statement II is true.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) Statement I is true, but Statement II is false.

Q14.2026 Main 67/5/1 · QB-I 29(a)1 mark

During the year ended 31st March, 2025, H.P. Ltd. paid an interim dividend of ₹50,00,000.

From the following, choose the correct option for the purpose of preparing ‘Cash Flow Statement’ :

  1. ₹50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and added back to net profit to calculate cash flows from operating activities.
  2. ₹50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and deducted from net profit to calculate cash flows from operating activities.
  3. ₹50,00,000 paid as interim dividend during the year will be shown as cash outflow from financing activities only.
  4. ₹50,00,000 paid as interim dividend during the year will be added back to net profit to calculate cash flows from operating activities only.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(A) ₹50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and added back to net profit to calculate cash flows from operating activities.

Q15.2026 Main 67/5/1 · QB-I 29(b)1 mark

Which of the following is a financing activity for the purpose of preparing a Cash Flow Statement ?

  1. Interest received
  2. Dividend received
  3. Royalties received
  4. Interest paid on debentures
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) Interest paid on debentures

Q16.2026 Supp. 67/7/1 · QB-I 27(a)1 mark

Which of the following is a financing activity for the purpose of preparing a cash flow statement ?

  1. Cash purchases
  2. Receipt of rent
  3. Interest paid on long-term borrowings
  4. Income tax paid
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) Interest paid on long-term borrowings

Q17.2026 Supp. 67/7/1 · QB-I 27(b)1 mark

Which of the following transactions will result in the cash flows from operating activities ?

  1. Interim dividend paid on equity shares
  2. Employee benefit expenses paid
  3. Proceeds from sale of patents
  4. Redemption of preference shares
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) Employee benefit expenses paid

Q18.2026 Supp. 67/7/1 · QB-I 301 mark

Statement I : Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise.

Statement II : Financing transactions that do not require the use of cash or cash equivalents should be included in a cash flow statement.

Choose the correct option from the following :

  1. Statement I is true and Statement II is false.
  2. Statement I is false and Statement II is true.
  3. Both the Statements are true.
  4. Both the Statements are false.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) Statement I is true and Statement II is false.

Q19.2025 Main 67/1/1 · QB-I 29(a)1 mark

Which of the following are operating activities for the purpose of preparing cash flow statement ?

  1. Cash payments to suppliers for goods and services.
  2. Dividend received from investments in other enterprises.
  3. Cash receipts from royalties, fees, commissions and other revenues.
  4. Cash repayments of amounts borrowed.
  1. (i), (ii) and (iii)
  2. (i) and (iii)
  3. (i), (iii) and (iv)
  4. (iii) and (iv)
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) (i) and (iii)

Q20.2025 Main 67/1/1 · QB-I 29(b)1 mark

Which of the following statements is incorrect ?

  1. Payment of dividend and interest will result in cash outflow from financing activities.
  2. Payment of employee benefit expenses will result in cash outflows from operating activities.
  3. Receipt of interest and dividend will result in cash inflow from financing activities.
  4. Operating activities are the principal revenue generating activities of the enterprise.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) Receipt from interest and dividend will result in cash inflow from financing activities

Q21.2025 Main 67/1/1 · QB-I 301 mark

Statement – I : Investing activities are the acquisition and disposal of long term assets and other investments not included in cash equivalents.

Statement – II : Cash payments to acquire fixed assets including intangibles and capitalised research and development results in cash outflow from investing activities.

Choose the correct option from the following :

  1. Both the Statements are true.
  2. Both the Statements are false.
  3. Only Statement I is true.
  4. Only Statement II is true.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) Both the Statements are true.

Q22.2025 Main 67/2/1 · QB-I 281 mark

Statement-I : Snow Limited earned a profit of ₹ 2,00,000 after charging depreciation of ₹ 50,000 on machinery. So, operating profit before working capital changes would be ₹ 2,50,000.

Statement-II : Depreciation is added back to net profit as it does not result in any cash flow.

Choose the correct option from the following :

  1. Only Statement-I is true.
  2. Only Statement-II is true.
  3. Both the Statements are false.
  4. Both the Statements are true.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) Both the statements are true.

Q23.2025 Main 67/2/1 · QB-I 30(a)1 mark

Short-term highly liquid investments qualify as cash equivalents if they are realisable into known amounts of cash from the date of acquisition within a period of :

  1. 6 months or less
  2. 9 months or less
  3. 12 months or less
  4. 3 months or less
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) 3 months or less

Q24.2025 Main 67/2/1 · QB-I 30(b)1 mark

Which of the following item is not included in cash and cash equivalents ?

  1. Trade Receivables
  2. Demand deposits with bank
  3. Short-term marketable securities
  4. Cheques in hand
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Trade Receivables

Q25.2025 Main 67/4/1 · QB-I 281 mark

Statement I : Snow Ltd. made a net profit of ₹ 5,00,000 after taking into consideration interest on investment of ₹ 1,00,000. Operating profit before working capital changes would be ₹ 4,00,000.

Statement II : To calculate operating profit, before working capital changes, interest on investment is subtracted from net profit because it is a non-operating income.

Choose the correct option from the following :

  1. Only Statement I is true.
  2. Only Statement II is true.
  3. Both the Statements are false.
  4. Both the Statements are true.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Both the Statements are true

Q26.2025 Main 67/4/1 · QB-I 30(a)1 mark

Cash Flow Statement is prepared in accordance with :

  1. Accounting Standard 3
  2. Accounting Standard 26
  3. The Companies Act, 2013
  4. The Companies Act, 1956
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) Accounting Standard 3

Q27.2025 Main 67/4/1 · QB-I 30(b)1 mark

Which of the following statements is correct ?

  1. Proceeds from sale of goods and services will result in cash outflow from operating activities.
  2. Payment of dividend will result in cash outflow from investing activities.
  3. Sale of machinery will result in cash outflow from investing activities.
  4. Payment of employee benefit expenses will result in cash outflow from operating activities.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Payment of employee benefit expenses will result in cash outflow from operating activities.

Q28.2025 Main 67/5/1 · QB-I 29(a)1 mark

The activities that result in changes in the size and composition of the owners’ capital and borrowings of the enterprise are called __________.

  1. Operating Activities
  2. Investing Activities
  3. Managerial Activities
  4. Financing Activities
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) Financing Activities

Q29.2025 Main 67/5/1 · QB-I 29(b)1 mark

Which of the following transactions will not result in the inflow of cash ?

  1. Cash deposited in the bank ₹ 80,000
  2. Payment of salaries ₹ 50,000
  3. Issue of 9% debentures ₹ 10,00,000
  4. Purchase of machinery ₹ 2,00,000
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A)/ (B)/ (D) / (A,B,D)

Note: As there are more than one correct answer, therefore, 1 mark is to be awarded to the examinees, who have given all the three options or any of the three as correct answer.

Q30.2025 Main 67/5/1 · QB-I 301 mark

Statement I : In case of non-financial enterprises, payment of interest and dividends are classified as financing activities, whereas receipt of interest and dividends are classified as investing activities.

Statement II : Investing and financing transactions that require the use of cash or cash equivalents, should be excluded from cash flow statement.

Choose the correct alternative from the following :

  1. Both the statements are false.
  2. Both the statements are true.
  3. Statement I is false and Statement II is true.
  4. Statement I is true and Statement II is false.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) Statement I is true and statement II is false.

Q31.2025 Main 67/6/1 · QB-I 29(a)1 mark

Which of the following transactions will result in outflow of cash ?

  1. Cash payments to and on behalf of the employees
  2. Cash receipts from royalties
  3. Issue of shares
  4. Dividend received from investments in other enterprises
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Cash payments to and on behalf of the employees

Q32.2025 Main 67/6/1 · QB-I 29(b)1 mark

In case of a non-financial enterprise, payment of dividend is considered as a/an :

  1. Operating Activity
  2. Investing Activity
  3. Financing Activity
  4. Both Investing and Financing Activity
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) Financing Activity

Q33.2025 Main 67/6/1 · QB-I 301 mark

There are two statements :

Statement I : The balance in the Statement of Profit and Loss in the Balance Sheet of Samta Ltd. showed a deficit of ₹2,00,000 on 31.03.2023 and a surplus of ₹3,00,000 on 31.3.2024. ₹5,00,000 will be considered as profit earned during the year for preparing Cash Flow Statement.

Statement II : On 31.03.2023 the goodwill account of Zeeta Ltd. showed a balance of ₹4,00,000 and on 31.03.2024 it showed a balance of ₹5,00,000. ₹1,00,000 will be considered as goodwill acquired during the year for the preparation of Cash Flow Statement.

Choose the correct option from the following :

  1. Both the Statements are true.
  2. Both the Statements are false.
  3. Statement I is true, Statement II is false.
  4. Statement II is true, Statement I is false.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Both the Statements are true.

Q34.2025 Main 67/7/1 · QB-I 29(a)1 mark

Which of the following transactions will result in ‘Cash Flows from Operating Activities’ ?

  1. Purchase of Inventory
  2. Payment of Dividend
  3. Purchase of Property
  4. Issue of Debentures
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) Purchase of Inventory

Q35.2025 Main 67/7/1 · QB-I 29(b)1 mark

‘Sale of Patents’ will result in :

  1. Cash outflows from investing activities
  2. Cash inflows from investing activities
  3. Cash inflows from financing activities
  4. Cash inflows from operating activities
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) Cash inflows from investing activities.

Q36.2025 Main 67/7/1 · QB-I 301 mark

Statement I : Sale of marketable securities will result in flow of cash.

Statement II : Cash flow implies movement of cash in and out due to some non-cash items.

Choose the correct option from the following :

  1. Both the statements are true.
  2. Both the statements are false.
  3. Statement I is true, Statement II is false.
  4. Statement I is false, Statement II is true.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) Statement I is false, Statement II is true.

Q37.2025 Supp. 67/S/1 · QB-I 291 mark

Statement I : Purchase of goodwill is classified as investing activity in case of all types of enterprises.

Statement II : Payment of interest is classified as financing activity in case of all types of enterprises.

Choose the correct option from the following :

  1. Both statement I and statement II are true.
  2. Both statement I and statement II are false.
  3. Statement I is false and statement II is true.
  4. Statement I is true and statement II is false.
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) Statement I is true and Statement II is false.

Q38.2025 Supp. 67/S/1 · QB-I 30(a)1 mark

Manish Ltd. had balance in Provision for Taxation Account of ₹ 9,00,000 and ₹ 12,00,000 as on 31st March, 2023 and 2024 respectively. Provision for tax made during the year was ₹ 6,00,000. The amount of tax paid during the year was :

  1. ₹ 12,00,000
  2. ₹ 9,00,000
  3. ₹ 6,00,000
  4. ₹ 3,00,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) ₹3,00,000

Q39.2025 Supp. 67/S/1 · QB-I 30(b)1 mark

Acquisition of machinery by issue of equity shares of ₹ 30,00,000 will result in :

  1. Cash inflow from investing activities ₹ 30,00,000
  2. Cash outflow from investing activities ₹ 30,00,000
  3. Cash outflow from financing activities ₹ 30,00,000
  4. No flow of cash
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) No flow of cash

Q40.2024 Main 67/1/1 · QB-I 281 mark

Identify which of the following transactions will result in ‘Cash Inflow From Operating Activities’ :

  1. Payment to creditors
  2. Interest received by a non-finance company
  3. Dividend received by a non-finance company
  4. Amount received from debtors
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) Amount received from debtors

Q41.2024 Main 67/1/1 · QB-I 30(a)1 mark

The transaction ‘Acquisition of machinery by issue of equity shares of ₹5,00,00,000’ will result in :

  1. Cash inflow of ₹5,00,00,000 from financing activities
  2. Cash outflow of ₹5,00,00,000 from financing activities
  3. Cash outflow of ₹5,00,00,000 from investing activities
  4. No flow of cash
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) No flow of cash

Q42.2024 Main 67/1/1 · QB-I 30(b)1 mark

The transaction ‘Capital Gains Tax paid on sale of fixed assets’ is classified under which of the following :

  1. Operating Activities
  2. Investing Activities
  3. Financing Activities
  4. Cash and Cash Equivalents
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) Investing Activities

Q43.2024 Main 67/2/1 · QB-I 29(i)1 mark

Statement I : Issue of Debentures will result in inflow of cash.

Statement II : Issue of Debentures to the vendors for purchase of machinery will result in outflow of cash.

Choose the correct option from the following :

  1. Both statements are correct.
  2. Both statements are incorrect.
  3. Statement I is correct and Statement II is incorrect.
  4. Statement I is incorrect and Statement II is correct.
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) Statement I is correct and Statement II is incorrect.

Q44.2024 Main 67/2/1 · QB-I 29(ii)1 mark

What will be effect of ‘Purchase of Marketable Securities for Cash’ on Cash Flow Statement ?

  1. No effect
  2. Inflow from financing activities
  3. Outflow from investing activities
  4. Outflow from financing activities
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) No effect

Q45.2024 Main 67/2/1 · QB-I 301 mark

‘Paid ₹ 5,00,000 to acquire shares in Neligare Industries and received a dividend of ₹ 30,000 after acquisition.’ This transaction will result in :

  1. Cash outflow from financing activities ₹ 4,70,000
  2. Cash inflow from investing activities ₹ 4,70,000
  3. Cash inflow from financing activities ₹ 4,70,000
  4. Cash outflow from investing activities ₹ 4,70,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(D) Cash outflow from investing activities ₹4,70,000

Q46.2024 Main 67/3/1 · QB-I 281 mark

Statement I : ‘Issue of fully paid bonus shares out of Securities Premium Account’ will result in inflow of cash.

Statement II : ‘Cash withdrawn from bank’ will result in inflow of cash.

In the context of the above two statements, choose the correct option :

  1. Both statement I and statement II are correct
  2. Both statement I and statement II are incorrect
  3. Statement I is correct and statement II is incorrect
  4. Statement I is incorrect and statement II is correct
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) Both Statement I and Statement II are incorrect

Q47.2024 Main 67/3/1 · QB-I 30(a)1 mark

Which of the following transactions will result in cash flows from operating activities ?

  1. Cash receipts from sale of investments ₹ 60,000
  2. Cash receipts from sale of goods ₹ 94,000
  3. Dividend received ₹ 31,000
  4. Payment of cash for purchase of fixed assets ₹ 3,00,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) Cash receipts from sale of goods ₹ 94,000

Q48.2024 Main 67/3/1 · QB-I 30(b)1 mark

‘Dividend paid by a finance company’ is classified under which of the following :

  1. Operating Activities
  2. Investing Activities
  3. Financing Activities
  4. Cash and Cash Equivalents
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) Financing Activities

Q49.2024 Main 67/4/1 · QB-I 29(a)1 mark

Statement I : Financing activities relate to long term funds or capital of an enterprise.
Statement II : Separate disclosure of cash flows arising from financing activities is important because they represent the extent to which expenditures have been made for resources intended to generate future income and cash flows.

Choose the correct option from the following :

  1. Both Statement I and Statement II are correct.
  2. Both Statement I and Statement II are incorrect.
  3. Statement I is incorrect and Statement II is correct.
  4. Statement I is correct and Statement II is incorrect.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) Statement I is correct and Statement II is incorrect.

Q50.2024 Main 67/4/1 · QB-I 29(b)1 mark

What will be the effect of transaction ‘Payment of employee benefit expenses’ on the cash flow statement ?

  1. Outflow from operating activities.
  2. Outflow from investing activities.
  3. Outflow from financing activities.
  4. No effect on cash flow.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) Outflow from Operating Activities

Q51.2024 Main 67/4/1 · QB-I 301 mark
Purchased (₹)Sold (₹)
Investments2,00,0001,80,000
Goodwill3,00,000—

From the above information, ‘Cash flows from investing activities’ will be :

  1. Inflow ₹ 3,20,000
  2. Outflow ₹ 3,20,000
  3. Outflow ₹ 20,000
  4. Inflow ₹ 20,000
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) Outflow ₹3,20,000

Q52.2024 Main 67/5/1 · QB-I 29(a)1 mark

Shyam Sunder Ltd. is a financing company. Under which of the following activity will the amount of 'Interest paid on loan' be shown :

  1. Investing activity
  2. Financing activity
  3. Both Financing & Operating activity
  4. Operating activity
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) Operating activity

Q53.2024 Main 67/5/1 · QB-I 29(b)1 mark
Particulars1-4-202231-3-2023
Provision for Tax₹ 10,000₹ 25,000

Tax paid during the year ended 31st March, 2023 was ₹ 15,000.

While calculating Net Profit before Tax and Extra ordinary items, the amount of provision for tax to be added is _______.

  1. ₹ 30,000
  2. ₹ 25,000
  3. ₹ 10,000
  4. ₹ 15,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(A) ₹30,000

Q54.2024 Main 67/5/1 · QB-I 301 mark

Which of the following transaction will result in flow of cash ?

  1. Cash withdrawn from bank ₹ 71,000.
  2. Issue of 9% debentures of ₹ 1,00,000 to the vendors of Machinery.
  3. Received from debtors ₹ 74,000.
  4. Redeemed 10% debentures by converting into equity shares.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) Received from debtors ₹74,000

Q55.2024 Supp. 67/S/1 · QB-I 281 mark

Which of the following transactions will result in cash outflow from operating activities ?

  1. Payment to creditors
  2. Proceeds from sale of investments
  3. Dividend received by a non-finance company
  4. Depreciation charged on furniture
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) Payment to creditors

Q56.2024 Supp. 67/S/1 · QB-I 30(a)1 mark

Sale of patents of ₹ 50,00,000 will result in :

  1. Cash inflow of ₹ 50,00,000 from financing activities
  2. Cash outflow of ₹ 50,00,000 from financing activities
  3. Cash outflow of ₹ 50,00,000 from investing activities
  4. Cash inflow of ₹ 50,00,000 from investing activities
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) Cash inflow of ₹50,00,000 from investing activities

Q57.2024 Supp. 67/S/1 · QB-I 30(b)1 mark

Income tax paid is classified under :

  1. Operating activities
  2. Investing activities
  3. Financing activities
  4. Cash and cash equivalents
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) Operating activities

Q58.2023 Main 67/1/1 · QB-I 29(i)1 mark

‘Dividend paid’ by a financial enterprise will come under which kind of activity from the following while preparing cash flow statement :

  1. Operating Activity
  2. Investing Activity
  3. Financing Activity
  4. Both (b) and (c)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) Financing Activity

Q59.2023 Main 67/1/1 · QB-I 29(ii)1 mark

‘Interest received on investments’ will come under which type of activity from the following, while preparing cash flow statement of a non-financial enterprise :

  1. Investing Activity
  2. Financing Activity
  3. Operating Activity
  4. Both (b) and (c)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) Investing Activity

Q60.2023 Main 67/1/1 · QB-I 301 mark

Which of the following transactions are shown under financing activities while preparing cash flow statement :

  1. Issue of Equity Shares
  2. Cash Received from Debtors
  3. Redemption of Debentures
  4. Cash Paid Against Trade Payables

Choose the correct option :

  1. (i)
  2. (i) and (ii)
  3. (i) and (iii)
  4. (i), (ii) and (iv)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) (i) and (iii)

Q61.2023 Main 67/2/1 · QB-I 29(a)1 mark

Interest of ₹3,000 received in cash on loans and advances will result in :

  1. cash inflow from operating activities.
  2. cash inflow from investing activities.
  3. cash inflow from financing activities.
  4. No change in cash or cash equivalents.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) cash inflow from investing activities.

Q62.2023 Main 67/2/1 · QB-I 29(b)1 mark

In case of a financial enterprise whose main business is lending and borrowing, 'interest paid' and 'interest received' are classified as :

  1. Operating activities
  2. Investing activities
  3. Financing activities
  4. Cash equivalents
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Operating Activities

Q63.2023 Main 67/2/1 · QB-I 301 mark

Which of the following transactions will not result in flow of cash :

  1. Cash withdrawn from the bank ₹7,000
  2. Issue of shares ₹20,00,000
  3. Purchase of investments ₹60,000
  4. Payment of wages ₹11,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Cash withdrawn from the bank ₹7,000.

Q64.2023 Main 67/3/1 · QB-I 291 mark

Which of the following transactions would result in inflow of cash and cash equivalents :

  1. Furniture costing ₹ 80,000 sold for ₹ 75,000
  2. Issue of bonus shares ₹ 5,00,000
  3. Payment to trade payables ₹ 15,000
  4. Provided depreciation on fixed assets ₹ 11,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) Furniture costing ₹80,000 sold for ₹75,000

Q65.2023 Main 67/3/1 · QB-I 301 mark

Which of the following transactions is not related to cash flows from investing activities :

  1. Purchase of marketable securities ₹ 25,000
  2. Sale of land ₹ 2,80,000
  3. Sale of investments ₹ 3,00,000
  4. Purchase of equipment ₹ 1,00,000
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(A) Purchase of marketable securities ₹25,000

Q66.2023 Main 67/4/1 · QB-I 281 mark

While preparing Cash Flow Statement, ‘Interest received’ by a finance company is classified as :

  1. Financing activity
  2. Operating activity
  3. Investing activity
  4. Cash and cash equivalents
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) Operating Activity

Q67.2023 Main 67/4/1 · QB-I 29(i)1 mark

Which of the following will result in flow of cash ?

  1. Cash withdrawn from the bank ₹ 50,000
  2. ₹ 2,00,000, 9% debentures issued to vendors of machinery
  3. ₹ 30,000 received from debtors
  4. Cheques of ₹ 20,000 deposited in the bank
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) ₹30,000 received from debtors

Q68.2023 Main 67/4/1 · QB-I 29(ii)1 mark

An investment normally qualifies as cash equivalent only when it has a short maturity, of say, ________ from the date of acquisition.

  1. Three months or more
  2. Six months or less
  3. One year or less
  4. Three months or less
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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(D) Three months or less

Q69.2023 Main 67/5/1 · QB-I 28(a)1 mark

Which of the following transaction will result in no flow of cash ?

  1. Purchase of machinery
  2. Sale of investments
  3. Acquisition of machinery by issue of equity shares
  4. Redemption of debentures
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) Acquisition of machinery by issue of equity shares

Q70.2023 Main 67/5/1 · QB-I 28(b)1 mark

Match the transactions given in Column – II with their correct category given in Column – I for the purpose of preparation of ‘Cash Flow Statement’.

Column – IColumn – II
(a) Investing Activity(i) Interest paid
(b) Financing Activity(ii) Purchase of Goodwill
(c) Operating Activity(iii) Cash receipts from sale of goods
(a)(b)(c)
(A)(iii)(i)(ii)
(B)(ii)(i)(iii)
(C)(i)(iii)(ii)
(D)(ii)(iii)(i)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) (a) – (ii), (b) – (i), (c) – (iii)

Q71.2023 Main 67/5/1 · QB-I 301 mark

Which of the following activities are operating activities for the purpose of preparing ‘Cash flow statement’ ?

  1. Dividend and Interest received on securities.
  2. Payment of employee benefit expenses.
  3. Cash receipts from royalties and fees.
  4. Issue of shares against purchase of machinery.
  1. (i), (ii) and (iii)
  2. (ii), (iii) and (iv)
  3. (i), (ii) and (iv)
  4. (ii) and (iii)
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) (ii) and (iii)

Q72.2023 Supp. 67/C/1 · QB-I 291 mark

Which of the following transaction does not result in ‘Inflow or outflow of cash and cash Equivalents’ ?

  1. Collection of cash from trade receivables
  2. Payment to trade payables
  3. Cash received on maturity of marketable securities
  4. Payment to employees
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Cash received on maturity of marketable securities

Q73.2023 Supp. 67/C/1 · QB-I 301 mark

Which of the following is not included in ‘Cash and Cash Equivalents’ ?

  1. Demand deposits with banks
  2. Short-term marketable securities
  3. Cheques in hand
  4. Trade receivables
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(D) Trade Receivables

Q74.SQP 2025-26 · QB-I 29(a)1 mark

Proposed Dividend for the year ended March 31, 2025 and March 31, 2024 were ₹ 2,50,000 and ₹ 2,00,000 respectively. Shareholders finalised the dividend amount at ₹ 1,80,000 during the year ended March 31, 2025 in AGM held in June-July 2024. Unclaimed dividend as at March 31, 2025 was ₹ 10,000.

Choose the correct option while preparing Cash Flow Statement for the year ended March 31, 2025:

  1. Proposed Dividend added in Net Profit after tax will be ₹ 2,00,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.
  2. Proposed Dividend added in Net Profit after tax will be ₹ 2,50,000 and outflow of Dividend paid in financing activities will be ₹ 2,00,000.
  3. Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.
  4. Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,70,000.
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,70,000.

Q75.SQP 2025-26 · QB-I 29(b)1 mark

Provision for Tax for the year ended March 31, 2025 and 31 March 2024 were ₹ 3,00,000 and ₹ 2,80,000 respectively. During the year Tax paid was ₹ 2,50,000. Determine the amount of Tax proposed during the year by the firm.

  1. ₹ 3,00,000
  2. ₹ 2,30,000
  3. ₹ 2,80,000
  4. ₹ 2,70,000
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) ₹ 2,70,000

Q76.SQP 2025-26 · QB-I 301 mark

Which of the following is cash flow from Operating activities for a finance company:

  1. Conversion of debentures into shares
  2. Dividend received
  3. Building purchased
  4. Dividend paid
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CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) Dividend received

Q77.SQP 2026-27 · QB-I 291 mark

Vivek Consultancy Private Limited purchased furniture for ₹20,00,000 paying 60% by issue of equity shares of ₹10 each and the balance by a cheque. This transaction will result in:

  1. Cash used in Investing activities ₹20,00,000 and Cash generated from financing activities ₹ 12,00,000.
  2. Cash used in investing activities ₹ 8,00,000.
  3. Cash used in investing activities ₹ 20,00,000.
  4. Cash generated from financing activities ₹ 12,00,000.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) Cash used in investing activities ₹ 8,00,000

Q78.SQP 2026-27 · QB-I 301 mark

Which of the following is not a cash flow from investing activities?

  1. Sale of 2,500 shares (held as investment) for ₹ 15 each
  2. Purchase of equipment for ₹ 500 cash
  3. Purchase of marketable securities for ₹ 25,000 cash
  4. Sale of land for ₹ 28,000 cash
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CBSE Sample Question Paper 2026-27 · Marking Scheme

(C) Purchase of marketable securities for ₹ 25,000 cash

Q79.2022 Main 67/1/1 · QB-I 102 marks

State the objective of preparing 'Cash Flow Statement'.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

The objective of preparing Cash Flow Statement is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads, i.e., operating activities, investing activities and financing activities. (2)

Q80.2022 Main 67/2/1 · QB-I 102 marks

State with reason, whether ‘Redemption of Debentures’ would result in inflow, outflow or no flow of cash while preparing Cash Flow Statement.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Redemption of debentures would result in outflow of cash.

Reason: It involves use of cash. [For the payment of debentures]

(1+1 = 2 marks)

Q81.2022 Main 67/3/1 · QB-I 102 marks

What is meant by ‘Cash Flow Statement’?

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

A Cash Flow Statement is a statement that provides information about historical changes in cash and cash equivalents of an enterprise by classifying cash flow into operating, investing and financing activities.

(Any other meaning) 2 Marks

Q82.2022 Main 67/4/1 · QB-I 102 marks

What is meant by ‘Cash Flow Statement’ ?

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Cash Flow Statement is a statement that provides information about historical changes in Cash and Cash Equivalents of an enterprise by classifying cash flows into Operating, Investing and Financing activities.

(2 marks)

Q83.2022 Main 67/5/1 · QB-I 102 marks

State whether the following transactions will result in inflow, outflow or no flow of cash while preparing cash flow statement :

  1. Issued bonus shares ₹5,00,000.
  2. Interest received in cash from loans and advances ₹80,000.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

(i) No flow
(ii) Inflow

(1 × 2 = 2 marks)

Q84.2022 Supp. 67/6/1 · QB-I 102 marks

State the primary objective of preparing ‘Cash Flow Statement’.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Primary objective of preparing ‘Cash Flow Statement’ is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads i.e. operating activities, investing activities and financing activities.

2 marks

Q85.2022 Main 67/1/1 · QB-I 125 marks

Following was the Balance Sheet of Bajaj Ltd. as on 31st March, 2021 :

Bajaj Ltd.
Balance Sheet as on 31st March, 2021

ParticularsNote No.31.03.2021 (₹)31.03.2020 (₹)
I. Equity and Liabilities :
1. Shareholder's funds :
(a) Share Capital19,00,00017,00,000
(b) Reserves and Surplus16,00,0003,00,000
2. Non-Current Liabilities :
12% long term borrowings
5,00,0004,00,000
3. Current Liabilities :
(a) Short term Borrowings21,70,0001,75,000
(b) Short term Provisions32,00,0001,65,000
Total33,70,00027,40,000
II. Assets :
1. Non Current Assets :
Fixed Assets
(i) Tangible Assets425,00,00021,00,000
(ii) Intangible Assets54,00,0003,00,000
2. Current Assets :
(a) Current Investments1,40,0001,70,000
(b) Inventories2,60,0001,30,000
(c) Cash and Cash Equivalents70,00040,000
Total33,70,00027,40,000

Notes to Accounts

Note No.Particulars31.03.2021 (₹)31.03.2020 (₹)
1Reserves & Surplus :
Surplus i.e. Balance in Statement of Profit and Loss
6,00,0003,00,000
2Short term borrowings :
Bank Overdraft
1,70,0001,75,000
3Short term provisions :
Provision for tax
2,00,0001,65,000
4Tangible Assets :
Machinery
25,00,00021,00,000
5Intangible Assets :
Goodwill
4,00,0003,00,000

Additional Information :

  1. A machine of the book value of ₹ 40,000 was sold for ₹ 50,000.
  2. Depreciation charged on machinery during the year was ₹ 2,00,000.
  3. ₹ 1,00,000, 12% long term borrowings were obtained on 31-3-2021.

Calculate cash flows from investing and financing activities.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Calculation of Cash Flows from Investing and Financing Activities For the year ended on 31st March, 2021

ParticularsDetails (₹)Amount (₹)Marks
Cash Flows from Investing Activities :
Sale of Machinery50,000½
Purchase of Machinery(6,40,000)½
Purchase of Goodwill(1,00,000)½
Cash used in Investing Activities(6,90,000)½
Cash flows from Financing Activities :
Proceeds from Issue of Shares2,00,000½
Proceeds from Long-term borrowings1,00,000½
Repayment of Bank Overdraft(5,000)½
Payment of Interest on 12% long term borrowings(48,000)½
Cash Inflow from Financing Activities2,47,000½

Working Notes

Dr. Machinery A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d21,00,000By Bank A/c (Sale of Machinery)50,000
To Profit on Sale10,000By Depreciation2,00,000
To Bank A/c (Purchase) (Balancing figure)6,40,000By Balance c/d25,00,000
27,50,00027,50,000

(½) = 5

Q86.2022 Main 67/2/1 · QB-I 125 marks

Calculate ‘Cash Flows from Operating Activities’ for the year ended 31st March, 2021 from the following Balance Sheet of Raman Ltd. as at 31st March, 2021 :

Balance Sheet of Raman Ltd. as at 31st March, 2021

ParticularsNote No.31.3.2021
₹
31.3.2020
₹
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital7,50,0007,00,000
(b) Reserves and Surplus11,25,00055,000
2. Non-Current Liabilities
Long-term Borrowings1,00,00062,500
3. Current Liabilities
(a) Short-term Borrowings26,0005,000
(b) Trade Payables7,50041,500
(c) Short-term Provisions39,0005,500
Total9,97,5008,69,500
II – Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets49,30,0008,05,000
(b) Intangible Assets525,00015,000
2. Current Assets
(a) Current Investments4,0002,500
(b) Inventories18,50029,500
(c) Trade Receivables13,00011,500
(d) Cash and Cash Equivalents7,0006,000
Total9,97,5008,69,500

Notes to Accounts :

Note No.Particulars31.3.2021
₹
31.3.2020
₹
1Reserves and Surplus
(Balance in Statement of Profit and Loss)
1,25,00055,000
2Short-term Borrowings
Bank Overdraft
6,0005,000
3Short-term Provisions
Provision for Tax
9,0005,500
4Tangible Assets
Machinery
Accumulated Depreciation

10,00,000
(70,000)

8,50,000
(45,000)
9,30,0008,05,000
5Intangible Assets
Patents
25,00015,000

Additional Information :

Tax paid during the year amounted to ₹ 6,500.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Calculation of ‘Cash Flows from operating activities’ for the year ended 31st March, 2021

ParticularsAmount (₹)Marks
Net profit before tax and extraordinary items80,000
Add : Non-cash and Non-operating expenses :
Depreciation25,000½
Net profit before changes in working capital1,05,000
Add : Decrease in Current Assets and increase in Current Liabilities :
Inventories11,000½
Less : Increase in Current Assets and decrease in Current Liabilities :
Trade Receivables(1,500)½
Trade payables(34,000)½
Cash generated from operations80,500
Less : Tax paid(6,500)½
Cash Flow from operating activities74,000½

Dr. Provision for Tax Cr.

Particulars(₹)Particulars(₹)
To Bank A/c6,500By Balance b/d5,500
To Balance c/d9,000By Statement of Profit & loss10,000
15,50015,500

(1)

Working Notes :
Calculation of net profit before tax :

Particulars(₹)
Net Profit70,000
Add provision for Tax10,000
80,000

(1) = 5 marks

Q87.2022 Main 67/3/1 · QB-I 125 marks

From the following Balance Sheet of Jay Ltd. as at 31.3.2022, calculate ‘Cash Flows from Operating Activities’:

Jay ltd.
Balance Sheet as at 31.3.2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I. EQUITY AND LIABILITIES :
1. Shareholders’ Funds :
(a) Share Capital150,00,00030,00,000
(b) Reserves and Surplus210,00,0006,00,000
2. Non-Current Liabilities :
Long-term borrowings38,00,0004,00,000
3. Current Liabilities :
(a) Trade Payables2,00,0003,00,000
(b) Other Current Liabilities43,00,0001,00,000
(c) Short-term provisions51,50,0001,00,000
Total :74,50,00045,00,000
II. ASSETS :
1. Non-Current Assets :
Fixed Assets
(i) Tangible Assets660,00,00040,00,000
(ii) Intangible Assets74,00,0004,00,000
2. Current Assets :
(a) Inventories7,00,00040,000
(b) Cash and Cash equivalents3,50,00060,000
Total :74,50,00045,00,000

Notes to Accounts :

Note No.Particulars31.3.2022 (₹)31.3.2021 (₹)
1.Share Capital :
Equity Share Capital50,00,00030,00,000
2.Reserves and Surplus :
Surplus i.e. balance in the statement of profit and loss.10,00,0006,00,000
3.Long-term borrowings :
10% debentures8,00,0004,00,000
4.Other Current Liabilities :
Outstanding rent3,00,0001,00,000
5.Short-term provisions :
Provision for tax1,50,0001,00,000
6.Tangible Assets :
Land60,00,00040,00,000
7.Intangible Assets :
Patents4,00,0004,00,000

Additional Information :

₹ 4,00,000, 10% Debentures were issued on 31.3.2022.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Calculation of cash flow from operating activities
for the year ended 31st March 2022

ParticularsAmount (₹)Marks
Net profit before tax5,50,000½
Add : Interest on Debentures40,000½
Net Profit before working capital changes5,90,000½
Add : Outstanding rent2,00,000½
Less : Inventories(6,60,000)
Trade Payables(1,00,000)(7,60,000)½
Cash flow from operations30,000½
Less : Tax paid(100,000)½
Net cash outflow from operating activities(70,000)½

Working Note :

Calculation of Net Profit before tax :

Net Profit4,00,000
Add : Provision for tax1,50,000
5,50,000

(1)

= 5 Marks

Q88.2022 Main 67/4/1 · QB-I 125 marks

From the following Balance Sheet of Anuradha Ltd. as at 31st March, 2022, calculate Cash from Operating Activities :

Balance Sheet of Anuradha Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital13,00,0002,50,000
(b) Reserves and Surplus21,50,0001,00,000
2. Non-Current Liabilities
Long-term Borrowings375,00025,000
3. Current Liabilities
(a) Trade Payables25,00050,000
(b) Other Current Liabilities450,00075,000
Total6,00,0005,00,000
II – Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets54,50,0002,74,000
(b) Intangible Assets624,00026,000
2. Current Assets
(a) Inventories76,0001,00,000
(b) Trade Receivables20,00010,000
(c) Cash and Cash Equivalents30,00090,000
Total6,00,0005,00,000

Notes of Accounts :

Note No.Particulars31.3.2022 (₹)31.3.2021 (₹)
1.Share Capital
Equity Share Capital
3,00,0002,50,000
2.Reserves and Surplus
Surplus (Balance in the Statement of Profit and Loss)
1,50,0001,00,000
3.Long-term Borrowings
12% Debentures
75,00025,000
4.Other Current Liabilities
Outstanding Rent
50,00075,000
5.Tangible Assets
(a) Land and Building
(b) Furniture

4,00,000
50,000

2,00,000
74,000
4,50,0002,74,000
6.Intangible Assets
Patents
24,00026,000

Additional Information :

  1. ₹50,000, 12% Debentures were issued on 31st March, 2022.
  2. During the year ₹24,000 was charged as depreciation on furniture.
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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Anuradha Ltd.

Calculation of ‘Cash Flows from operating activities’ for the year ended 31st March, 2022

ParticularsAmount (₹)Marks
Net profit before tax and extraordinary items50,000½
Add : Non-cash and Non-operating expenses :
Depreciation24,000½
Patents written off2,000½
Interest on debentures3,000½
Operating profit before working capital changes79,000½
Add : Decrease in CA and increase in CL :
Inventories24,000½
Less : Increase in CA and decrease in CL :
Trade Receivables(10,000)½
Trade payables(25,000)½
Outstanding Rent(25,000)½
Cash generated from operations43,000
Less : Tax paid--------
Net Cash Flow from operating activities43,000½

(= 5 marks)

Q89.2022 Main 67/5/1 · QB-I 125 marks

Calculate 'Cash Flows from Investing Activities' and 'Cash Flows from Financing Activities' for the year ended 31st March, 2021 from the following Balance Sheet of Kamna Ltd. as at 31st March, 2021 showing your workings clearly :

Kamna Ltd.
Balance Sheet
as at 31st March, 2021

ParticularsNote No.31st March, 2021 (₹)31st March, 2020 (₹)
I. Equity and Liabilities
1. Shareholders' funds
(a) Share Capital12,00,00011,00,000
(b) Reserves and surplus13,00,0002,00,000
2. Non-Current Liabilities
Long-term borrowings2,40,0001,70,000
3. Current Liabilities
Trade payables2,20,0002,81,000
Total19,60,00017,51,000
II. Assets
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets210,70,0008,50,000
(ii) Intangible Assets340,0001,12,000
2. Current Assets
(a) Current Investments2,40,0001,50,000
(b) Inventories1,20,0001,21,000
(c) Trade Receivables1,70,0001,43,000
(d) Cash and Cash Equivalents3,20,0003,75,000
Total19,60,00017,51,000

Notes to Accounts :

Note No.Particulars31st March, 2021 (₹)31st March, 2020 (₹)
1.Reserve and Surplus
Surplus i.e. Balance in Statement of Profit & Loss
3,00,0002,00,000
2.Tangible Assets :
Machinery
Accumulated Depreciation

12,70,000
(2,00,000)
10,70,000

10,00,000
(1,50,000)
8,50,000
3.Intangible Assets :
Goodwill

40,000

1,12,000

Additional Information :

A piece of Machinery costing ₹24,000 on which accumulated depreciation was ₹16,000, was sold for ₹6,000.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Calculation of Cash Flows from Investing Activities
for the year ended 31st March 2021

Particulars(₹)(₹)Marks
Purchase of Machinery(2,94,000)½
Sale of Machinery6,000½
Cash used in Investing Activities(2,88,000)½

Working Notes:

Dr. Machinery A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d10,00,000By Bank A/c6,000
To Bank A/c (Balancing figure)2,94,000By Accumulated Depreciation16,000
By Statement of Profit & Loss2,000
By Balance c/d12,70,000
12,94,00012,94,000

(2 marks)

Dr. Accumulated Depreciation Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery16,000By Balance b/d1,50,000
To Balance c/d2,00,000By Statement of Profit & Loss (Balancing figures)66,000
2,16,0002,16,000

Calculation of Cash Flows from Financing Activities
for the year ended 31st March 2021

Particulars(₹)(₹)Marks
Issue of Share Capital1,00,000½
Long-term borrowings raised70,000½
Cash Flows from Financing Activities1,70,000½

(= 5 marks)

Q90.2022 Supp. 67/6/1 · QB-I 125 marks

From the following Balance Sheet of PP Ltd. as at 31st March, 2022, calculate Cash Flows from Operating Activities :

PP Ltd.
Balance Sheet as at 31st March, 2022

ParticularsNote No.31st March, 2022 (₹)31st March, 2021 (₹)
I – Equity and Liabilities :
1. Shareholder’s Funds
(a) Share Capital170,00,00050,00,000
(b) Reserves and Surplus210,00,0008,00,000
2. Non-Current Liabilities
Long-term Borrowings320,00,00015,00,000
3. Current Liabilities
(a) Trade Payables2,00,0001,00,000
(b) Short-term Provisions450,00080,000
Total1,02,50,00074,80,000
II – Assets :
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets565,00,00040,00,000
(ii) Intangible Assets62,00,0003,00,000
(b) Long-term Loans and Advances10,00,00015,00,000
2. Current Assets
(a) Inventories6,00,0007,00,000
(b) Trade Receivables5,00,0003,00,000
(c) Cash and Cash Equivalents14,50,0006,80,000
Total1,02,50,00074,80,000

Notes to Accounts :

Note No.Particulars31st March, 2022 (₹)31st March, 2021 (₹)
1Share Capital
Equity Share Capital
70,00,00050,00,000
2Reserves and Surplus
(Surplus i.e., Balance in the Statement of Profit and Loss)
10,00,0008,00,000
3Long-term Borrowings
6% Debentures
20,00,00015,00,000
4Short-term Provisions
Provision for Tax
50,00080,000
5Tangible Assets
Land and Building
65,00,00040,00,000
6Intangible Assets
Goodwill
2,00,0003,00,000

Additional Information :

₹ 90,000 interest was paid on 6% debentures.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Calculation of ‘Cash Flows from Operating Activities’ for the year ended 31st March 2022

ParticularsAmount (₹)Marks
Net Profit before tax and extraordinary items2,50,000
Add : Non-cash and Non-operating expenses :
Goodwill written off1,00,000½
Interest on Debentures90,000½
Operating profit before working capital changes4,40,000½
Add : Decrease in CA and increase in CL :
Increase in Trade Payables1,00,000½
Decrease in Inventories1,00,000½
Less : Increase in CA and decrease in CL :
Increase in Trade Receivables(2,00,000)½
Cash generated from operations4,40,000½
Less : Tax paid(80,000)½
Cash Flows from operating activities3,60,000½

Working Notes:
Calculation of Net Profit before tax:

Particulars₹
Net Profit2,00,000
Add Provision for Tax50,000
2,50,000

(½) = 5 Marks

Q91.2026 Main 67/1/1 · QB-I 346 marks

For the year ended 31st March 2025, Sona Ltd. made a profit of ₹4,00,000 after charging depreciation of ₹75,000 on fixed assets and a transfer of ₹1,50,000 to general reserve. Goodwill written off during the year was ₹80,000. The company sold machinery of the book value of ₹90,000 at ₹95,000. During the year, trade receivables increased by ₹40,000 and trade payables increased by ₹30,000. Prepaid expenses increased by ₹2,000 and outstanding wages decreased by ₹20,000.

Calculate cash flows from operating activities.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Calculation of cash flows from operating activities :

Particulars(₹)Marks
Net Profit before tax (Working Note 1)5,50,000½
Adjustment for-
Add: Depreciation on fixed assets
75,000½
Add: Goodwill written off80,000½
Less: Gain on Sale of Machinery(5,000)½
Operating Profit before Working Capital Changes7,00,000½
Add: Increase in Trade Payables30,000½
Less: Increase in Trade Receivables(40,000)½
Less: Increase in Prepaid expenses(2,000)½
Less: Decrease in outstanding wages(20,000)½
Cash inflows from operating activities6,68,000½

Working Note 1: Calculation of Net Profit before tax:

Particulars(₹)Marks
Net Profit4,00,000½
Add : Amount transferred to general reserve1,50,000½
Net Profit before tax5,50,000

(= 6 Marks)

Q92.2026 Main 67/2/1 · QB-I 346 marks

From the following Balance Sheet of Rama Ltd. as at 31st March, 2025, calculate cash flows from Investing Activities and cash flows from Financing Activities.

ParticularsNote No.31-3-2025 (₹)31-3-2024 (₹)
I. Equity and Liabilities :
1. Shareholders funds
(a) Share Capital
(b) Reserves and Surplus


1

21,00,000
1,30,000

10,00,000
2,40,000
2. Non-current liabilities
Long-term borrowings

2

2,50,000

3,20,000
3. Current Liabilities
(a) Short-term borrowings
(b) Trade Payables

3

90,000
20,000

70,000
60,000
Total25,90,00016,90,000
II. Assets :
1. Non-current Assets
(a) Property, Plant and Equipment and Intangible Assets
(i) Property Plant and Equipment
(ii) Intangible Assets
(b) Non-current Investments


4
5


14,00,000
4,00,000
5,44,000


9,00,000
2,40,000
3,40,000
2. Current Assets
(a) Inventories
(b) Trade Receivables
(c) Cash and Cash Equivalents

1,45,000
62,000
39,000

54,000
1,26,000
30,000
Total25,90,00016,90,000

Notes to Accounts :

Note No.Particulars31-03-2025 (₹)31-03-2024 (₹)
1.Reserves and Surplus i.e. Balance in Statement of Profit and Loss1,30,0002,40,000
2.Long-term borrowings
10% Debentures

2,50,000

3,20,000
3.Short-term borrowings
Bank overdraft

90,000

70,000
4.Property, Plant and Equipment
Plant and Machinery
Accumulated Depreciation

15,20,000
(1,20,000)
14,00,000

9,80,000
(80,000)
9,00,000
5.Intangible Assets :
Goodwill

4,00,000

2,40,000

Additional Information :

  1. Depreciation amounting to ₹ 80,000 was charged on plant and machinery during the year.
  2. During the year a new machine costing ₹ 8,00,000 was purchased and an old machine was sold at a profit of ₹ 8,000.
  3. Interest paid on debentures amounted to ₹ 32,000.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Calculation of Cash Flows from Investing Activities
for the year ended 31st March 2025

ParticularsDetails (₹)Amount (₹)
Purchase of Goodwill(1,60,000) ½
Purchase of Machinery(8,00,000) ½
Proceeds from sale of Machinery2,28,000 ½
Purchase of Non-Current Investments(2,04,000) ½
Cash used in investing activities(9,36,000) ½

(2½ marks)

Working Notes :

Plant and Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d9,80,000By Bank/Cash A/c (Bal. figure)2,28,000
To Statement of Profit & Loss- (Gain on sale)8,000By Accumulated Depreciation A/c40,000
To Bank/Cash A/c8,00,000By Balance c/d15,20,000
17,88,00017,88,000

(½ mark)

Accumulated Depreciation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery A/c (Bal. figure)40,000By Balance b/d80,000
To Balance c/d1,20,000By Depreciation A/c/ Statement of Profit & Loss80,000
1,60,0001,60,000

(½ mark)

Calculation of Cash Flows from Financing Activities
for the year ended 31st March 2025

ParticularsDetails (₹)Amount (₹)
Issue of Equity Share Capital11,00,000 ½
Redemption of 10% Debentures(70,000) ½
Interest paid on Debentures(32,000) ½
Bank Overdraft Raised20,000 ½
Cash flows from financing activities10,18,000 ½

(2½ marks; 2½ + ½ + ½ + 2½ = 6 marks)

Q93.2026 Main 67/3/1 · QB-I 346 marks

JC Ltd. earned a net profit of ₹50,000 after providing depreciation of ₹20,000 on fixed assets and a transfer of ₹15,000 to general reserve. The position of its Current Assets and Current Liabilities was as follows :

Particulars31.03.2025 (₹)31.03.2024 (₹)
Trade Receivables75,00070,000
Trade Payables75,00065,000
Inventories40,00025,000
Expenses Payable7,5005,000
Prepaid Expenses5,00010,000
Accrued Incomes20,00015,000
Income Received in Advance5,00010,000

Calculate cash flows from operating activities.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Cash Flow from Operating Activities

ParticularsAmount (₹)Amount (₹)Marks
Net Profit Before Tax (Working Note 1)65,000(1)
Add: Depreciation20,000(½)
Operating Profit before Working Capital changes85,000(½)
Add: Increase in Current Liabilities and Decrease in Current Assets
Increase in Trade Payables10,000(½)
Increase in Expense Payable2,500(½)
Decrease in Prepaid Expenses5,00017,500(½)
Less: Decrease in Current Liabilities and Increase in Current Assets
Increase in Trade Receivable(5,000)(½)
Increase in Inventories(15,000)(½)
Increase in Accrued Income(5,000)(½)
Decrease in Income Received in Advance(5,000)(30,000)(½)
Cash inflows from operating activities72,500(½)

Working Note 1: Calculation of Net Profit Before Tax
Net Profit + General Reserve = 50,000 + 15,000
= ₹65,000

(6 Marks)

Q94.2026 Main 67/4/1 · QB-I 346 marks

(a) From the following information, calculate Cash Flows from Investing Activities :

Particulars31.03.2025 (₹)31.03.2024 (₹)
Machinery (At Cost)6,00,0002,60,000
Accumulated Depreciation1,00,00035,000

Additional Information :

During the year, a machine costing ₹ 80,000 on which accumulated depreciation was ₹ 20,000, was sold at a loss of 20%.

(b) From the following information, calculate Cash Flows from Financing Activities :

Particulars31.03.2025 (₹)31.03.2024 (₹)
Equity Share Capital15,00,00010,00,000
10% Debentures11,00,0008,00,000
Bank Overdraft3,00,0002,00,000
Cash at Bank78,00054,000

Additional Information :

₹ 3,00,000, 10% Debentures were issued on 1st October, 2024.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(a)

Calculation of Cash Flows from Investing Activities

Particulars(₹)(₹)
Sale of Machinery (½)48,000
Purchase of Machinery (Working Note 1) (½)(4,20,000)
Net Cash flow from Investing Activities (1)(3,72,000)

Working Note 1: (1)

Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d2,60,000By Bank/Cash A/c (sale)48,000
To Bank/ Cash A/c (purchase)4,20,000By Accumulated Depreciation A/c20,000
By Statement of Profit & Loss- (loss on sale)12,000
By Balance c/d6,00,000
6,80,0006,80,000

(b)

Calculation of Cash Flows from Financing Activities

Particulars(₹)(₹)
Issue of Equity Share Capital (½)5,00,000
Issue of 10% Debentures (½)3,00,000
Raising Bank Overdraft (½)1,00,000
Interest paid on Debentures (½)(95,000)
Net Cash flow from Financing Activities (1)8,05,000

= 6 marks

Q95.2026 Main 67/5/1 · QB-I 346 marks

From the following information obtained from the books of ‘Informatics India Ltd.’, calculate ‘Cash from Operations’ :

Net Profit for year ended 31st March, 2025 after providing depreciation was ₹60,000 and after writing off goodwill ₹2,000 was ₹3,40,000.

Additional Information :

Particulars31.3.2024 (₹)31.3.2025 (₹)
Rent received in advance20,00010,000
Accrued interest30,00040,000
Prepaid insurance15,00020,000
Outstanding salary25,00040,000
Trade receivables1,24,0001,25,000
Trade payables1,30,0001,50,000
Inventory50,00080,000
Other current assets1,00,0001,20,000
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Calculation of Cash from Operations for the year ended 31 March 2025

ParticularsAmount (₹)Marks
Net Profit before Tax3,40,0001
Add: Non-Cash & Non-Operating Items:
Depreciation60,000
Goodwill written off2,00062,0001
Operating Profit before Working Capital Changes4,02,000
Add: Increase in Current Liabilities & Decrease in Current Assets
Increase in Trade Payables20,000½
Increase in Outstanding Salaries15,00035,000½
Less: Decrease in Current Liabilities & Increase in Current Assets
Decrease in Rent Received in Advance(10,000)½
Increase in Accrued Interest(10,000)½
Increase in Trade Receivables(1,000)½
Increase in Prepaid Insurance(5,000)½
Increase in Inventory(30,000)½
Increase in Other current assets(20,000)(76,000)½
Cash generated from operations3,61,000

(Note: If an examinee has taken Net Profit before tax as ₹60,000 or ₹3,40,000, one mark for profit should be awarded)

(6 Marks)

Q96.2026 Supp. 67/7/1 · QB-I 346 marks

From the following particulars of Nishant Ltd., calculate ‘Cash Flows from Investing Activities’. Show your working clearly :

Particulars31.03.2025 (₹)31.03.2024 (₹)
Machinery (At Cost)3,80,0003,00,000
Accumulated Depreciation62,00045,000
Investments1,00,00080,000
Goodwill1,80,0002,00,000

Additional Information :

  1. A machine having a book value of ₹ 1,40,000 was sold for ₹ 1,10,000.
  2. Depreciation charged on the machine during the year was ₹ 40,000.
  3. Investments costing ₹ 90,000 were purchased and some investments were sold at a profit of ₹ 8,000.
  4. Interest received on investments was ₹ 8,000.
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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Calculation of Cash Flows from Investing Activities for the year ended 31st March 2025

Particulars(₹)(₹)
Machinery purchased(2,43,000)
Machinery sold1,10,000
Investments purchased(90,000)
Investments sold78,000
Interest received on Investments8,000
Net Cash used in Investing Activities(1,37,000)

(½ × 6) = 3

Machinery A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Balance b/d3,00,000By Bank/Cash A/c1,10,000
To Bank/ Cash A/c
(Machinery purchased)
2,43,000To Statement of Profit & Loss- Loss on sale30,000
By Accumulated Depreciation A/c23,000
By Balance c/d3,80,000
5,43,0005,43,000

(1)

Accumulated Depreciation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Machinery A/c23,000By Balance b/d45,000
To Balance c/d62,000By Depreciation A/c40,000
85,00085,000

(1)

Investments A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Balance b/d80,000By Bank/Cash A/c78,000
To Bank/ Cash A/c90,000By Balance c/d1,00,000
To Statement of Profit & Loss- Profit on sale8,000
1,78,0001,78,000

(1) = 6 marks

Q97.2025 Main 67/1/1 · QB-I 346 marks
  1. From the following information, calculate Cash Flows from Investing Activities :

    Particulars31-3-2024 (₹)31-3-2023 (₹)
    Machinery (at cost)3,80,0003,00,000
    Accumulated Depreciation62,00045,000

    Additional Information :

    A machine costing ₹ 50,000 on which accumulated depreciation was ₹ 20,000 was sold at a profit of 10%.

  2. From the following information, calculate Cash flows from Financing Activities :

    Particulars31-3-2024 (₹)31-3-2023 (₹)
    Equity Share Capital12,00,0008,00,000
    11% Debentures3,00,0004,00,000
    Securities Premium1,40,0001,00,000

    Additional Information :

    Interest paid on debentures amounted to ₹ 40,000.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(a)

Calculation of Cash Flows from Investing Activities for the year ended 31st March 2024

Particulars(₹)(₹)
Purchase of Machinery(1,30,000)
Sale of Machinery33,000
Net Cash used in Investing Activities(97,000)

(1 × 3)

Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d3,00,000By Bank/Cash A/c33,000
To Statement of Profit & Loss- Profit on sale3,000By Accumulated Depreciation A/c20,000
To Bank/ Cash A/c (Balancing figure)1,30,000By Balance c/d3,80,000
4,33,0004,33,000

(1)

Accumulated Depreciation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery A/c20,000By Balance b/d45,000
To Balance c/d62,000By Depreciation A/c37,000
82,00082,000

(b)

Calculation of Cash Flows from Financing Activities for the year ended 31st March 2024

Particulars(₹)(₹)
Issue of Equity Shares (including premium of ₹40,000)4,40,000
Redemption of 11% Debentures(1,00,000)
Interest paid on debentures(40,000)
Net Cash flows from Financing Activities3,00,000

(½ × 4)

((1 × 3) + 1 + (½ × 4) = 6 marks)

Q98.2025 Main 67/2/1 · QB-I 346 marks

On 31st March, 2024 following is the Balance Sheet of Bhavik Limited :

Bhavik Ltd.
Balance Sheet as at 31st March 2024

ParticularsNote No.31-3-2024 (₹)31-3-2023 (₹)
I. Equity and Liabilities :
1. Shareholders funds
(a) Share Capital12,00,00010,00,000
(b) Reserves and Surplus14,00,0003,00,000
2. Non-current liabilities
Long-term borrowings26,00,00010,00,000
3. Current Liabilities
(a) Trade Payables5,00,0001,00,000
(b) Short-term provisions33,00,0004,00,000
Total30,00,00028,00,000
II. Assets :
1. Non-current Assets
(a) Property, Plant and Equipment and Intangible Assets
Property plant and equipment
419,00,00015,00,000
(b) Non-current Investments3,00,0004,00,000
2. Current Assets
(a) Inventories4,50,0003,50,000
(b) Trade Receivables2,50,0004,50,000
(c) Cash and Cash Equivalents1,00,0001,00,000
Total30,00,00028,00,000

Notes to Accounts :

Note No.Particulars31-03-2024 (₹)31-03-2023 (₹)
1.Reserves and Surplus i.e. Balance in Statement of Profit and Loss4,00,0003,00,000
2.Long-term borrowings
10% Debentures
6,00,00010,00,000
3.Short-term provisions
Provision for tax
3,00,0004,00,000
4.Property plant and equipment
Plant and Machinery
21,50,00016,00,000
Less : Accumulated Depreciation2,50,0001,00,000
19,00,00015,00,000

Additional Information :

  1. During the year a piece of machinery costing ₹ 8,00,000 accumulated depreciation thereon ₹ 50,000 was sold for ₹ 6,50,000
  2. Debentures were redeemed on 31-03-2024.

Calculate :

  1. Cash flows from Investing Activities
  2. Cash flows from Financing Activities
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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(a)

Books of Bhavik Ltd.
Calculation of Cash Flows from Investing Activities
for the year ended 31st March 2024

Particulars(₹)(₹)
Purchase of Plant and Machinery(13,50,000)
Sale of Machinery6,50,000
Sale of Non-Current Investments1,00,000
Net Cash used in Investing Activities(6,00,000)

(½ x 4)

Working Note:

Plant and Machinery A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Balance b/d16,00,000By Bank/Cash A/c6,50,000
To Bank/ Cash A/c (Balancing figure)13,50,000By Accumulated Depreciation A/c50,000
By Statement of Profit and Loss- Loss on sale of machinery1,00,000
By Balance c/d21,50,000
29,50,00029,50,000

(1 mark)

Accumulated Depreciation A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Plant and Machinery A/c50,000By Balance b/d1,00,000
To Balance c/d2,50,000By Depreciation A/c2,00,000
3,00,0003,00,000

(-)

(b)

Books of Bhavik Ltd.
Calculation of Cash Flows from Financing Activities
for the year ended 31st March 2024

Particulars(₹)(₹)
Issue of Shares (½)2,00,000
Redemption of 10% Debentures (½)(4,00,000)
Interest paid on debentures. (1)(1,00,000)
Net Cash used in Financing Activities (1)(3,00,000)

(½ x 4) + 1 + 3 = 6 marks

Q99.2025 Main 67/4/1 · QB-I 346 marks

Calculate ‘Cash Flows from Investing Activities’ from the following information :

Particulars31.03.2024 (₹)31.03.2023 (₹)
10% Long Term Investments2,50,0004,50,000
Plant and Machinery8,00,0006,00,000
Goodwill1,40,0001,00,000
Investment in shares of ‘Pinnacle Ltd.’14,00,0005,00,000
Patents–1,50,000

Additional Information :

  1. A machine costing ₹ 60,000 (depreciation provided thereon ₹ 18,000) was sold for ₹ 48,000. Depreciation charged during the year was ₹ 60,000.
  2. Dividend received from Pinnacle Ltd. ₹ 40,000.
  3. Interest received on 10% Long Term Investments ₹ 45,000.
  4. Patents were sold at their book value.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Cash Flow from Investing Activities

ParticularsAmount (₹)
Sale of 10% Long Term Investment(½)2,00,000
Purchase of Machinery (note no. 1)(½)(3,02,000)
Sale of Machinery(½)48,000
Purchase of Goodwill(1)(40,000)
Purchase of Investments in Shares of Pinnacle Ltd.(½)(9,00,000)
Dividend Received from Pinnacle Ltd.(½)40,000
Interest Received on 10% Long Term Investment(½)45,000
Sale of Patents(1)1,50,000
Net Cash used in Investing Activities(½)(7,59,000)

(5½)

Note No. 1
Plant and Machinery Account

Dr. ParticularsAmount (₹)ParticularsCr. Amount (₹)
To Balance b/d
To Statement of P/L (gain)
To Bank A/c (purchase)
6,00,000
6,000
3,02,000
By Bank A/c (sale)
By Depreciation A/c
By Balance c/d
48,000
60,000
8,00,000
9,08,0009,08,000

(½)

(5½) + (½) = 6 marks

Q100.2025 Main 67/5/1 · QB-I 34(a)6 marks

The following information has been extracted from the books of Ram Lal Ltd. :

Particulars31.3.2024 (₹)31.3.2023 (₹)
Surplus : Balance in Statement of Profit and Loss17,00,0008,00,000
Patents–50,000
Sundry Debtors5,80,0004,20,000
Sundry Creditors1,40,00060,000
Cash and Cash Equivalents2,00,00090,000

Additional Information :
Interim dividend paid during the year was ₹ 1,20,000.
Calculate Cash Flows from Operating Activities.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Alternative (i) - If patents are assumed to be amortised:

Ram Lal Ltd.
Cash flows from Operating Activities

ParticularsAmount (₹)
Net Profit before Tax & Extraordinary items10,20,000
Adjustment for non-cash and non-operating items:
Add: Patents written off

50,000
Operating Profit before Working Capital changes10,70,000
Add: Increase in Current Liabilities (Creditors)80,000
Less: Increase in Current Assets ( Debtors)(1,60,000)
Net Cash Inflows from Operating Activities9,90,000

(2 marks)

Calculation of Net Profit before Tax and Extraordinary items:
Net Profit for the year = 9,00,000
Add: Interim Dividend = 1,20,000
Net Profit before Tax & Extraordinary items = 10,20,000 (1 mark)

(=3 marks)

Alternative (ii) - If patents are assumed to be sold:

Ram Lal Ltd.
Cash flows from Operating Activities

ParticularsAmount (₹)
Net Profit before Tax & Extraordinary items10,20,000
Operating Profit before Working Capital changes10,20,000
Add: Increase in Current Liabilities (Creditors)80,000
Less: Increase in Current Assets ( Debtors)(1,60,000)
Net Cash Inflows from Operating Activities9,40,000

(2 marks)

Calculation of Net Profit before Tax and Extraordinary items:
Net Profit for the year = 9,00,000
Add: Interim Dividend = 1,20,000
Net Profit before Tax & Extraordinary items = 10,20,000 (1 mark)

(=3 marks)

Q101.2025 Main 67/5/1 · QB-I 34(b)6 marks

The following information has been extracted from the books of Lata Ltd. :

Particulars31.3.2024 (₹)31.3.2023 (₹)
Machinery (Cost)70,00,00050,00,000
Accumulated Depreciation10,00,0008,00,000

Additional Information :

  1. During the year a piece of machinery costing ₹ 1,40,000 on which accumulated depreciation was ₹ 90,000, was sold at a gain of ₹ 10,000.
  2. Depreciation charged during the year amounted to ₹ 2,90,000.

Calculate Cash Flows from Investing Activities.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Lata Ltd.
Cash flows from Investing Activities

ParticularsAmount (₹)Marks
Purchase of Machinery (W.N. 1)(21,40,000)1
Sale of Machinery60,000+1
Net Cash used in Investing Activities(20,80,000)+½

Working Note No.1:

Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d50,00,000By Accumulated Depreciation A/c90,000
To Statement of P&L10,000By Bank A/c60,000
To Bank A/c (Balancing Fig.)21,40,000By Balance c/d70,00,000
71,50,00071,50,000

(+½)

Accumulated Depreciation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery A/c90,000By Balance b/d8,00,000
To Balance c/d10,00,000By Depreciation A/c2,90,000
10,90,00010,90,000

Sale Price = 1,40,000 − 90,000 + 10,000 = ₹60,000

(=3 marks; Total 6 marks)

Q102.2025 Main 67/6/1 · QB-I 346 marks

From the following Balance Sheet of Bose Ltd. as at 31st March, 2024, calculate 'Cash Flows from Operating Activities'.

Balance Sheet of Bose Ltd. as at 31st March, 2024

ParticularsNote No.31.03.2024 (₹)31.03.2023 (₹)
I – Equity and Liabilities :
1. Shareholders' Funds
(a) Share Capital37,00,00025,00,000
(b) Reserves and Surplus15,00,00012,00,000
2 Non-Current Liabilities
Long term borrowings220,00,00018,00,000
3. Current Liabilities
(a) Short term borrowings6,00,0005,50,000
(b) Trade Payables5,00,0003,50,000
Total73,00,00064,00,000
II – Assets :
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment345,00,00041,00,000
(ii) Intangible Assets43,00,0005,00,000
2. Current Assets
(a) Current Investments5,00,0002,00,000
(b) Inventories8,00,00010,00,000
(c) Trade Receivables10,00,0002,00,000
(d) Cash and Cash equivalents2,00,0004,00,000
Total73,00,00064,00,000

Notes to Accounts :

Note No.Particulars31.3.2024 (₹)31.3.2023 (₹)
1Reserves and Surplus
(i.e. Balance in the Statement of Profit and Loss)

5,00,000

12,00,000
2Long Term Borrowings
10% Debentures

20,00,000

18,00,000
3Property, Plant and Equipment
Plant and Machinery
Less : Accumulated Depreciation

50,00,000
5,00,000

44,00,000
3,00,000
45,00,00041,00,000
4Intangible Assets
Goodwill

3,00,000

5,00,000

Additional Information :

  1. A piece of machinery costing ₹4,00,000 on which accumulated depreciation was ₹3,00,000 was sold at a loss of ₹70,000.
  2. 10% Debentures of 2,00,000 were issued on 31.3.2024.
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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Calculation of Cash Flows from Operating Activities:

ParticularsAmount (₹)Marks
Net Profit before Tax and Extraordinary Items(7,00,000)½
Add: Non-Cash & Non-Operating Items:
Depreciation on Machinery5,00,000½
Goodwill written off2,00,000½
Interest on 10% debentures1,80,000½
Loss on sale of Machinery70,0009,50,000½
Operating Profit before Working Capital Changes2,50,000½
Add: Increase in Current Liabilities & Decrease in Current Assets
Increase in Trade Payables1,50,000½
Decrease in Inventories2,00,000½
Less: Decrease in Current Liabilities & Increase in Current Assets
Increase in Trade Receivables(8,00,000)(4,50,000)½
Cash generated from operations(2,00,000)
Less: Tax paidNIL
Net cash used in operating activities(2,00,000)½

(½ × 10 = 5)

Working notes:

Accumulated Depreciation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Plant and Machinery A/c3,00,000By Balance b/d3,00,000
To Balance c/d5,00,000By Statement of Profit & Loss5,00,000
8,00,0008,00,000

Plant and Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d44,00,000By Accumulated Depreciation A/c3,00,000
By Bank A/c30,000
To Bank A/c (Balancing figure)10,00,000By Statement of Profit & Loss- Loss on sale of machinery70,000
By Balance c/d50,00,000
54,00,00054,00,000

(1) = 6 marks

Q103.2025 Main 67/7/1 · QB-I 346 marks

(a) From the following information extracted from the books of Kant Ltd., calculate ‘Cash Flows from Operating Activities’.

Profit earned during the year is ₹1,95,000 after considering the following items :

ParticularsAmount (₹)
Depreciation on Machinery50,000
Goodwill written off30,000
Loss on Sale of Machinery10,000
Transfer to General Reserve1,05,000

At the end of the year, Trade Receivables showed an increase of ₹2,00,000 and Trade Payables a decrease of ₹10,000.

(b) From the following information extracted from the books of Vandana Ltd., calculate Cash Flows from Investing Activities.

Particulars31.3.2023 (₹)31.3.2024 (₹)
Machinery24,00,00028,00,000
Accumulated Depreciation on Machinery(2,00,000)(3,00,000)
22,00,00025,00,000

Additional Information :

A piece of machinery costing ₹8,00,000 on which accumulated depreciation was ₹40,000, was sold for ₹5,00,000.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(a) Calculation of Cash Flow from Operating Activities

ParticularsAmount (₹)
Net Profit before Tax and Extraordinary Items (W.N 1)3,00,000
Add: Non Cash & Non-Operating Items
Depreciation on Machinery
Goodwill written off
Loss on sale of Machinery
₹50,000
₹30,000
₹10,000 (1½)
90,000
Operating Profit before Working Capital Changes3,90,000
Less: Decrease in Current Liabilities & Increase in Current Assets
Increase in Trade Receivables
Decrease in Trade Payables
(₹2,00,000)
(₹10,000) (1)
(2,10,000)
Net Cash inflow from Operating Activities ……… (½)1,80,000

Working Note :-
1. Calculation of Net Profit before Tax and Extraordinary Items

₹
Profit earned during the year1,95,000
+ Transfer to General Reserve1,05,000
3,00,000 (1)

(4 Marks)

(b) Calculation of Cash Flow from Investing Activities

ParticularsAmount (₹)
Purchase of Machinery (W.N.1)(12,00,000)
Proceeds from the sale of Machinery5,00,000
Net cash outflow from Investing Activities(7,00,000)

(1½ marks)

Working Notes:
1.

Machinery A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d24,00,000By Accumulated Depreciation A/c40,000
To Bank A/c (Balancing figure)12,00,000By Bank A/c5,00,000
By Statement of Profit & Loss2,60,000
By Balance c/d28,00,000
36,00,00036,00,000

(½ mark)

Accumulated Depreciation A/c

Dr.Cr.
ParticularsAmount (₹)ParticularsAmount (₹)
To Machinery A/c40,000By Balance b/d2,00,000
To Balance c/d3,00,000By Statement of Profit & Loss1,40,000
3,40,0003,40,000

(4 + 2 = 6 Marks)

Q104.2025 Supp. 67/S/1 · QB-I 346 marks

Calculate Cash Flows from Operating and Investing Activities on the basis of the information given in the Balance Sheet of Pari Ltd. as at 31st March, 2024.

Balance Sheet of Pari Ltd. as at 31st March, 2024

ParticularsNote No.31.03.2024 (₹)31.03.2023 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital10,00,0005,00,000
(b) Reserves and Surplus15,00,0003,00,000
2. Non-Current Liabilities
Long-term Borrowings24,00,0004,00,000
3. Current Liabilities
(a) Short-term Borrowings3−1,00,000
(b) Short-term Provisions41,00,00050,000
Total20,00,00013,50,000
II − Assets
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets7,00,0003,00,000
(b) Non-Current Investments4,00,0001,00,000
2. Current Assets
(a) Inventories2,00,0002,50,000
(b) Trade Receivables3,00,0004,00,000
(c) Cash and Cash Equivalents4,00,0003,00,000
Total20,00,00013,50,000

Notes to Accounts :

Note No.Particulars31.03.2024 (₹)31.03.2023 (₹)
1.Reserves and Surplus
General Reserve2,00,0001,50,000
Surplus i.e. Balance in Statement of Profit and Loss3,00,0001,50,000
5,00,0003,00,000
2.Long-term Borrowings
10% Debentures
4,00,0004,00,000
3.Short-term Borrowings
Bank Overdraft
−1,00,000
4.Short-term Provisions
Provision for Taxation
1,00,00050,000
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Calculation of Cash Flow from Operating Activities

ParticularsAmount (₹)
Net Profit before Tax and Extraordinary Items (W.N 1)3,00,000
Add: Non Cash & Non-Operating Items
Interest on Debentures ……… (½)40,000
Operating Profit before Working Capital Changes3,40,000
Add: Decrease in Current Assets & Increase in Current Liabilities
Decrease in Trade Receivables₹1,00,000
Decrease in Inventories (1)₹50,0001,50,000
Cash Generated from Operations4,90,000
Less: Tax Paid ……… (½)(50,000)
Net Cash flows from Operating Activities ……… (½)4,40,000

Working Note :-

1. Calculation of Net Profit before Tax and Extraordinary Items

₹
Profit earned during the year =1,50,000
+ Transfer to General Reserve =50,000
+ Provision for Tax for the Current Year =1,00,000
3,00,000

[1½]

4 marks

Calculation of Cash Flows from Investing Activities

ParticularsAmount (₹)
Purchase of Property, Plant and Equipment and Intangible Assets(4,00,000)
Purchase of Non-Current Investments(3,00,000)
Net cash outflow from Investing Activities(7,00,000)

2 = 6 marks

Q105.2024 Main 67/1/1 · QB-I 346 marks

From the following information, calculate ‘Cash Flows From Operating Activities’ :

ParticularsAmount (₹)
Surplus i.e. Balance in Statement of Profit and Loss6,28,000
Provision for Tax1,50,000
Proposed Dividend for the previous year72,000
Depreciation1,40,000
Loss on Sale of Machinery30,000
Gain on Sale of Investments20,000
Dividend Received on Investments6,000
Increase in Current Liabilities1,61,000
Increase in Current Assets (other than cash and cash equivalents)6,00,000
Decrease in Current Liabilities64,000
Income Tax Paid1,18,000
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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Cash Flows from Operating Activities

ParticularsDetails ₹Amount ₹
Net Profit before Tax and Extraordinary items8,50,000
Adjustments for Non- Cash and Non- operating items
Add: Depreciation1,40,000(½)
  Loss on Sale of Machinery30,000(½)
Less: Gain on Sale of Investments(20,000)(½)
  Dividend Received on Investments(6,000)(½)
Operating profit before Working Capital changes9,94,000
Add: Increase in Current Liabilities1,61,000(½)
Less: Increase in Current Assets(6,00,000)(½)
  Decrease in Current Liabilities(64,000)(½)
Cash generated from operations4,91,000
Less: Income Tax paid(1,18,000)(½)
Net cash inflows from Operating Activities3,73,000(1)

Calculation of Net Profit before Tax and Extraordinary items
Surplus = 6,28,000
+ Provision for Tax = 1,50,000
+ Proposed Dividend = 72,000
= 8,50,000 (1)

= 6 marks

Q106.2024 Main 67/2/1 · QB-I 346 marks

From the following Balance Sheet of Nishant Ltd. as at 31st March, 2023, calculate ‘Cash Flows From Operating Activities’.

Balance Sheet of Nishant Ltd. as at 31st March, 2023

ParticularsNote No.31.3.2023 (₹)31.3.2022 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital6,00,0005,50,000
(b) Reserves and Surplus11,50,0001,00,000
2. Non-Current Liabilities
(a) Long-term Borrowings21,20,00085,000
3. Current Liabilities
(a) Trade Payables89,5001,02,000
(b) Short-term Provisions325,00038,500
Total9,84,5008,75,500
II – Assets :
1. Non-Current Assets
(a) Fixed Assets/Property, Plant and Equipment and Intangible Assets
(i) Tangible Assets/Property, Plant and Equipment45,35,0004,25,000
(ii) Intangible Assets520,00056,000
2. Current Assets
(a) Current Investments1,20,00075,000
(b) Inventories64,50060,500
(c) Trade Receivables85,00071,500
(d) Cash and Cash Equivalents1,60,0001,87,500
Total9,84,5008,75,500

Notes to Accounts :

Note No.Particulars31.3.2023 (₹)31.3.2022 (₹)
1Reserves and Surplus
Surplus i.e. Balance in Statement of Profit and Loss

1,50,000

1,00,000
1,50,0001,00,000
2Long-term Borrowings
10% Debentures

1,20,000

85,000
1,20,00085,000
3Short-term Provisions
Provision for Tax

25,000

38,500
25,00038,500
4Tangible Assets/Property, Plant and Equipment
Machinery
Less : Accumulated Depreciation

6,35,000
(1,00,000)

5,00,000
(75,000)
5,35,0004,25,000
5Intangible Assets
Goodwill

20,000

56,000
20,00056,000

Additional Information :

  1. A piece of machinery costing ₹ 12,000 on which accumulated depreciation was ₹ 8,000 was sold for ₹ 3,000.
  2. Interest paid on 10% Debentures amounted to ₹ 8,500.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Nishant Ltd.
Cash flows from Operating Activities

ParticularsAmount ₹Amount ₹
Net Profit before Tax & Extraordinary items75,000
Adjustment for non-cash and non-operating items:
Add: Depreciation on machinery
Loss on sale of machinery
Interest on debentures
Goodwill written off (2)

33,000
1,000
8,500
36,000
Operating Profit before Working Capital changes1,53,500
Less: Decrease in Trade Payables
Increase in Inventories
Increase in Trade Receivables (1½)
(12,500)
(4,000)
(13,500)
Cash generated from Operations (½)1,23,500
Less: Tax paid (½)(38,500)
Net Cash Inflows from Operating Activities (½)85,000

[5]

Calculation of Net Profit before Tax and Extraordinary items: [1]
Net Profit for the year = 50,000
Add: Provision for Tax = 25,000
Net Profit before Tax & Extraordinary items = 75,000

= 6 marks

Working Notes:

Dr. Accumulated Depreciation A/c Cr.

Particulars₹Particulars₹
To Machinery A/c
To Balance c/d
8,000
1,00,000
By Balance b/d
By Depreciation A/c (Balancing Fig.)
75,000
33,000
1,08,0001,08,000

Note: No marks to be awarded for the working notes.

Q107.2024 Main 67/3/1 · QB-I 346 marks

Calculate ‘Cash Flows from Investing Activities’ from the following information :

Particulars31st March, 2023 (₹)31st March, 2022 (₹)
Plant and Machinery4,10,0003,00,000
Goodwill1,80,00080,000

Additional Information :

  1. A machine costing ₹ 85,000 (depreciation provided thereon ₹ 15,000) was sold for ₹ 62,000. Depreciation charged during the year amounted to ₹ 48,000.
  2. Calculate ‘Cash Flows From Financing Activities’ from the following information :
    Particulars31st March, 2023 (₹)31st March, 2022 (₹)
    Equity Share Capital15,00,00010,00,000
    Bank Overdraft90,0001,20,000
    Loan from bank7,00,0006,00,000

    Additional Information :

    1. Interest paid on bank loan amounted to ₹ 60,000.
    2. Dividend paid ₹ 1,10,000.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(a)

Machinery Account

Dr. ParticularsAmount (₹)ParticularsAmount (₹) Cr.
To Balance b/d


To Bank A/c (purchase)
3,00,000


2,28,000
By Depreciation A/c
By Bank A/c (sale)
By Statement of P/L (loss)
By Balance c/d
48,000
62,000
8,000
4,10,000
5,28,0005,28,000

(1)

Cash Flow from Investing Activities

ParticularsAmount (₹)
Purchase of Machinery(2,28,000)
Sale of Machinery62,000
Purchase of Goodwill(1,00,000)
Net Cash used in Investing Activities(2,66,000)

(2)

(b)

Cash Flow from Financing Activities

ParticularsAmount (₹)
Issue of Equity Share Capital5,00,000
Bank Overdraft Repaid(30,000)
Loan taken from Bank1,00,000
Interest Paid on Bank Loan(60,000)
Dividend Paid(1,10,000)
Net Cash Inflow from Financing Activities4,00,000

(3)

= 6 marks

Q108.2024 Main 67/4/1 · QB-I 346 marks

Following is the Balance Sheet of Bharat Gas Ltd. as at 31.3.2023 :

Balance Sheet of Bharat Gas Ltd. as at 31.3.2023

ParticularsNote No.31.3.2023 (₹)31.3.2022 (₹)
I Equity and Liabilities :
1. Shareholders’ funds
(a) Share capital14,00,00010,00,000
(b) Reserves and Surplus15,00,0004,00,000
2. Non-current Liabilities
Long term borrowings5,00,0001,40,000
3. Current liabilities
(a) Trade payables1,00,00060,000
(b) Short term provisions280,00060,000
Total25,80,00016,60,000
II Assets :
1. Non-current Assets
(a) Fixed Assets (Property, plant and equipment and intangible assets)
(i) Tangible assets (Property, plant and equipment)316,00,0009,00,000
(ii) Intangible assets41,40,0002,00,000
2. Current Assets
(a) Inventories2,50,0002,00,000
(b) Trade receivables5,00,0003,00,000
(c) Cash and cash equivalents90,00060,000
Total25,80,00016,60,000

Notes to Accounts :

Note No.Particulars31.3.2023 (₹)31.3.2022 (₹)
1.Reserves and Surplus :
Balance in Statement of Profit and Loss

5,00,000
5,00,000

4,00,000
4,00,000
2.Short term provisions :
Provision for Taxation

80,000
80,000

60,000
60,000
3.Tangible Assets :
(Property, plant and equipment)
Machinery
Less : Accumulated Depreciation


18,50,000
(2,50,000)
16,00,000


10,00,000
(1,00,000)
9,00,000
4.Intangible Assets :
Goodwill

1,40,000
1,40,000

2,00,000
2,00,000

Adjustments : During the year a machine costing ₹ 3,00,000 on which accumulated depreciation was ₹ 45,000 was sold for ₹ 1,35,000.

Calculate ‘Cash flows from Operating Activities’.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Cash flow from Operating Activities

ParticularsAmount ₹Amount ₹
Net Profit before Tax & Extra Ordinary Items1,80,000
Adjustment for Non-cash and Non-operating items
Add:
Goodwill written off ............ ½60,000
Depreciation ............ 11,95,000
Loss on sale of Machinery ............ 11,20,000
Operating Profit before working capital changes5,55,000
Add- Decrease in Current Assets Increase in Current Liability
Increase in Trade Payables ............ ½40,000
Less: Increase in Current Assets Decrease in Current Liability
Increase in Inventories ............ ½(50,000)
Increase in Trade Receivables ............ ½(2,00,000)
Cash Generated from Operations3,45,000
Less: Tax Paid ............ ½(60,000)
Cash flow from operating activities ............ ½2,85,000

(5)

Calculation of Net Profit before Tax and Extraordinary items: ............ 1
Net Profit for the year ₹1,00,000
+ Provision for tax + ₹80,000
Net Profit before Tax and Extraordinary items = ₹1,80,000

(1) (= 6 Marks)

Working Notes:-

Dr. Accumulated Depreciation A/c Cr.

Particulars₹Particulars₹
To Machinery A/c
To balance c/d
45,000
2,50,000
By balance b/d
By Depreciation A/c
1,00,000
1,95,000
2,95,0002,95,000

Note:- No marks to be awarded for working notes.

Q109.2024 Main 67/5/1 · QB-I 346 marks

From the following Balance Sheet of Yogita Ltd., calculate 'Cash flows from Investing Activities' and 'Cash flows from Financing Activities'. Show your working properly.

Yogita Ltd.
Balance Sheet as at 31st March, 2023

ParticularsNote No.31-3-2023 (₹)31-3-2022 (₹)
I. Equity and Liabilities :
(1) Shareholders' Funds
(a) Share Capital4,00,0002,00,000
(b) Reserves and Surplus12,00,0001,00,000
(2) Non-Current Liabilities
(a) Long term borrowings21,50,0002,20,000
(3) Current Liabilities
(a) Short term borrowings31,00,000–
(b) Trade payables70,00050,000
(c) Short term provisions450,00030,000
Total9,70,0006,00,000
II. Assets
(1) Non-Current Assets
(a) Fixed Assets (Property, plant and equipment and intangible assets)
(i) Tangible Assets (Property, plant and equipment)57,00,0004,00,000
(2) Current Assets
(a) Inventories1,70,0001,00,000
(b) Trade Receivables1,00,00050,000
(c) Cash & Cash equivalents–50,000
Total9,70,0006,00,000

Notes to Accounts :

Note No.Particulars31-3-2023 ₹31-3-2022 ₹
1.Reserves and Surplus
Balance in statement of Profit & Loss1,50,00080,000
General Reserve50,00020,000
2,00,0001,00,000
2.Long term borrowings
10% Bank Loan1,50,0002,20,000
1,50,0002,20,000
3.Short term borrowings
Bank Overdraft1,00,000–
1,00,000–
4.Short term provisions
Provision for tax50,00030,000
50,00030,000
5.Tangible Assets (Property, plant & equipment)
Plant and Machinery7,90,0004,70,000
Less : Accumulated depreciation(90,000)(70,000)
7,00,0004,00,000

Additional Information :

  1. ₹ 50,000 was charged as depreciation on Plant and Machinery. A machinery costing ₹ 60,000 (Book value ₹ 45,000) was sold for ₹ 42,000.
  2. Bank loan was repaid on 1st April, 2022.
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

Calculation of Cash Flows from Investing Activities
for the year ended 31st March 2023

Particulars(₹)(₹)
Purchase of Machinery ½(3,80,000)
Sale of Machinery 142,000
Net Cash used in Investing Activities ½(3,38,000)

(2 marks)

Dr. Plant and Machinery A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d4,70,000By Bank /Cash A/c42,000
To Bank/ Cash A/c (Balancing figure)3,80,000By Accumulated Depreciation A/c15,000
By Statement of Profit & Loss3,000
By balance c/d7,90,000
8,50,0008,50,000

(1 mark)

Dr. Accumulated Depreciation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Plant and Machinery A/c15,000By Balance b/d70,000
To Statement of Profit & Loss15,000By Depreciation A/c50,000
To balance c/d90,000
1,20,0001,20,000

(No marks)

Alternate Answer

Calculation of Cash Flows from Investing Activities
for the year ended 31st March 2023

Particulars(₹)(₹)
Purchase of Machinery ½(3,95,000)
Sale of Machinery 142,000
Net Cash used in Investing Activities ½(3,53,000)

(2 Marks)

Dr. Plant and Machinery A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d4,70,000By Bank A/c42,000
To Cash A/c (Balancing figure)3,95,000By Accumulated Depreciation A/c30,000
By Statement of Profit & Loss3,000
By Balance c/d7,90,000
8,65,0008,65,000

(1 mark)

Dr. Accumulated Depreciation A/c Cr.

ParticularsAmount (₹)ParticularsAmount (₹)
To Plant and Machinery A/c30,000By Balance b/d70,000
To balance c/d90,000By Depreciation A/c50,000
1,20,0001,20,000

(No marks)

Calculation of Cash Flows from Financing Activities
for the year ended 31st March 2023

Particulars(₹)(₹)
Issue of Share Capital ½2,00,000
Bank Overdraft raised ½1,00,000
Bank loan repaid ½(70,000)
Interest on bank loan paid 1(15,000)
Net Cash Inflows from Financing Activities ½2,15,000

(3 marks; 3 + 3 = 6 marks)

Q110.2024 Supp. 67/S/1 · QB-I 346 marks

From the following particulars of Ruparel Ltd., calculate ‘Cash Flow from Investing Activities’. Show your working clearly.

Particulars31.03.2023 (₹)31.03.2022 (₹)
Goodwill3,00,0001,00,000
Patents1,60,0002,80,000
Machinery12,40,00010,20,000
10% Investments1,60,00060,000

Additional Information :

  1. Patents of ₹ 1,20,000 were sold at book value.
  2. Depreciation charged during the year on machinery was ₹ 1,40,000. A machine having a book value of ₹ 80,000 was sold for ₹ 50,000.
  3. On 31.03.2023, 10% investments were purchased for ₹ 1,80,000 and some investments were sold at a profit of ₹ 20,000.

Interest received on investments was ₹ 6,000.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Cash flow from Investing Activities

ParticularsAmount (₹)Amount (₹)
Purchase of goodwill(2,00,000)
Proceeds from sale of patents1,20,000
Proceeds from sale of machinery50,000
Purchase of machinery(4,40,000)
Purchase of 10% investments(1,80,000)
Proceeds from sale of 10% investments1,00,000
Interest received on 10% investments6,000
Net cash used in Investing Activities(5,44,000)

(½ x 8 =4)

Working Notes:-

Machinery A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Balance b/d10,20,000By Depreciation A/c1,40,000
To Bank/Cash A/c
(Bal. Fig.)
4,40,000By Bank/Cash A/c50,000
By Statement of Profit and Loss30,000
By Balance c/d12,40,000
14,60,00014,60,000

(1 mark)

10% Investments A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Balance b/d60,000By Bank/Cash A/c
(Bal. Fig.)
1,00,000
To Statement of Profit and Loss20,000By Balance c/d1,60,000
To Bank/Cash A/c1,80,000
2,60,0002,60,000

(1 mark)

=6 Marks

Q111.2023 Main 67/1/1 · QB-I 346 marks

Read the following hypothetical text and answer the given questions on the basis of the same.

In 2011, two young Indian entrepreneurs, Vaishali Bhatia and Vivek Bhatia decided to start an online auto portal. At that time, there were no major players in the market and they saw an opportunity to fill the gap. They used a user-friendly website and mobile app which made it easy for users to research and buy cars. It was converted into a company ‘Car Easy Ltd.’ in 2018.

From the following Balance Sheet of the company as on 31st March, 2022, calculate ‘Cash Flows From Operating Activities’.

Balance Sheet of ‘Car Easy Ltd’ as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital9,00,0003,00,000
(b) Reserves and Surplus175,0003,60,000
2. Non-Current Liabilities
Long-term Borrowings22,40,0001,80,000
3. Current Liabilities
(a) Trade Payables18,00060,000
(b) Short-term Provisions32,04,0002,10,000
Total14,37,00011,10,000
II – Assets :
1. Non-Current Assets
Fixed Assets410,08,0005,76,000
2. Current Assets
(a) Inventories3,54,0003,87,000
(b) Cash and Cash Equivalents75,0001,47,000
Total14,37,00011,10,000

Notes to Accounts :

Note No.Particulars31.3.2022 (₹)31.3.2021 (₹)
1Reserve and Surplus
Surplus i.e. Balance in Statement of Profit and Loss

75,000

3,60,000
75,0003,60,000
2Long-term Borrowings
10% Debentures

2,40,000

1,80,000
2,40,0001,80,000
3Short-term Provisions
Provision for Tax

2,04,000

2,10,000
2,04,0002,10,000
4Fixed Assets
Machinery
Accumulated Depreciation

11,52,000
(1,44,000)

6,45,000
(69,000)
Total10,08,0005,76,000

Additional Information :

  1. 10% Debentures were issued on 31st March, 2021.
  2. Tax of ₹ 80,000 was paid during the year.
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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Calculation of ‘Cash Flows from operating activities’ for the year ended 31st March, 2022

ParticularsDetails (₹)Amount (₹)
Net profit before tax and extraordinary items(2,11,000) [½]
Add : Non-cash and Non-operating expenses :
Depreciation on machinery75,000 [½]
Interest on Debentures24,000 [1]99,000
Net profit before changes in working capital(1,12,000) [½]
Add : Decrease in Current Assets and Increase in Current Liabilities :
Decrease in Inventories33,000 [½]
Less : Increase in Current Assets and Decrease in Current Liabilities:
Trade Payables(42,000) [½](9,000)
Cash generated from operations(1,21,000) [½]
Less : Tax paid(80,000) [½]
Net cash outflow/used in operating activities(2,01,000) [½]

(5 marks)

Dr. Provision for Tax A/c Cr.

Particulars₹Particulars₹
To Bank A/c80,000By Balance b/d2,10,000
To Balance c/d2,04,000By Statement of Profit & Loss74,000
2,84,0002,84,000

(½ mark)

Working Notes :
Calculation of net profit before tax :

(₹)
Net Profit(2,85,000)
Add provision for Tax74,000
(2,11,000)

(½ mark; 5 + ½ + ½ = 6 marks)

(Note: Full credit to be given if the examinee has taken interest on debentures as ₹ 18,000 and consequently, net cash outflow/used in operating activities has been calculated as ₹ 2,07,000)

[Figures in square brackets are the marks shown against items in the marking scheme.]

Q112.2023 Main 67/2/1 · QB-I 346 marks

Read the following hypothetical text and answer the given question on the basis of the same.

Sujata started a small enterprise under the 'Skill India Scheme'. As the business grew, the revenue started increasing and she decided to form 'Sujata Ltd.' to achieve her objectives with 10 other like minded persons. The financial position of the company is given in its Balance Sheet as at 31.3.2022 :

Balance Sheet of Sujata Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I. Equity and Liabilities
1. Shareholders' Funds
(a) Equity share capital20,00,00017,00,000
(b) Reserves and Surplus
(Statement of Profit and Loss)
3,00,0004,00,000
2. Non-current Liabilities
Long term Borrowings

3,00,000

2,00,000
3. Current Liabilities
Trade payables

50,000

25,000
Total26,50,00023,25,000
II. Assets
1. Non-current Assets
(a) Fixed Assets
(i) Tangible Assets8,00,0009,00,000
(ii) Intangible Assets5,00,0002,00,000
(b) Non-current Investments3,00,0004,00,000
2. Current Assets
(a) Inventories4,00,0005,00,000
(b) Trade Receivables1,50,0001,25,000
(c) Cash & Cash equivalents5,00,0002,00,000
Total26,50,00023,25,000

Additional Information :

Depreciation of ₹1,00,000 was charged on Tangible Assets during the year.

On the basis of the above information prepare the 'Cash Flow Statement' of Sujata Ltd.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Cash flow statement (As per AS 3 revised)
for the year ended 31st March 2022

ParticularsAmount ₹Amount ₹Marks
Cash flow from Operating Activities
Net loss before Tax(1,00,000)½
Adjustment for Non-cash and Non-operating items
Add : Depreciation1,00,000½
Operating profit before change in Working CapitalNil
Add Decrease in Current Assets
Increase in Current Liability
Inventories 1,00,000½
Trade payable 25,0001,25,000½
Less Increase in Current Assets
Decrease in Current Liability
Trade Receivable


(25,000)
½
New Cash flow from Operating Activities1,00,000½
Cash flows from Investing Activities :
Purchase of Intangible Assets(3,00,000)½
Sale of Non-current Investment1,00,000½
Net Cash used in Investing Activities(2,00,000)
Cash flow from Financing Activities :
Issue of Share Capital3,00,000½
Proceeds from long-term Borrowings1,00,000½
Cash flow from Financing Activity4,00,000
Net Increase in Cash and Cash Equivalents (A + B + C)3,00,000½
Cash and Cash Equivalents in the beginning2,00,000½
Cash and Cash Equivalents in the end5,00,000

(6 Marks)

Q113.2023 Main 67/3/1 · QB-I 346 marks

Read the following hypothetical text and answer the given question on this basis :

Azad, inspired by ‘Make-in-India’ mission, initiated his start-up in the form of a company ‘Azad Ltd.’ along with six other promoters in 2016. The company has been earning good revenue consistently. The financial position of Azad Ltd. as at 31st March, 2022 was as follows :

Balance Sheet of Azad Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 ₹31.3.2021 ₹
I – Equity and Liabilities :
1. Shareholders’ Funds
  (a) Share Capital19,00,00017,00,000
  (b) Reserves and Surplus16,00,0003,00,000
2. Non-Current Liabilities
  Long-term Borrowings25,00,0004,00,000
3. Current Liabilities
  (a) Short-term Borrowings31,70,0001,75,000
  (b) Short-term Provisions42,00,0001,65,000
Total33,70,00027,40,000
II – Assets :
1. Non-Current Assets
  (a) Fixed Assets
    (i) Tangible Assets524,00,00019,00,000
    (ii) Intangible Assets64,00,0003,00,000
  (b) Non-current Investments1,00,0002,00,000
2. Current Assets
  (a) Current Investments1,40,0001,70,000
  (b) Inventories2,60,0001,30,000
  (c) Cash and Cash Equivalents70,00040,000
Total33,70,00027,40,000

Notes to Accounts :

Note No.31.3.2022 ₹31.3.2021 ₹
(1)Reserves and Surplus
(Surplus i.e. Balance in Statement of Profit and Loss)
6,00,0003,00,000
(2)Long-term Borrowings
12% Debentures
5,00,0004,00,000
(3)Short-term Borrowings
Bank Overdraft
1,70,0001,75,000
(4)Short-term Provisions
Provision for Tax
2,00,0001,65,000
(5)Tangible Assets
Machinery
Less Accumulated Depreciation

26,00,000
(2,00,000)
24,00,000

20,00,000
(1,00,000)
19,00,000
(6)Intangible Assets
Goodwill

4,00,000

3,00,000

Additional Information :

  1. ₹ 1,00,000, 12% Debentures were issued on 1st April, 2021.
  2. A piece of machinery costing ₹ 80,000 on which accumulated depreciation was ₹ 40,000, was sold at a gain of ₹ 10,000.

Calculate cash flows from ‘Investing Activities’ and ‘Financing Activities’.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Azad Ltd.

Cash Flows from Investing Activities

ParticularsDetails ₹Amount ₹
Purchase of Machinery (½)(6,80,000)
Sale of Machinery (½)50,000
Purchase of Intangible Assets (½)(1,00,000)
Sale of Non- Current Investments (½)1,00,000
Net Cash used in Investing Activities (½)(6,30,000)

(2½)

Cash Flows from Financing Activities

ParticularsDetails ₹Amount ₹
Proceeds from issue of share capital (½)2,00,000
Proceeds from 12% Debentures (½)1,00,000
Repayment of Bank Overdraft (½)(5,000)
Payment of Interest on 12% Debentures (½)(60,000)
Net Cash inflow from Financing Activities (½)2,35,000

(2½)

Working Notes:

Machinery A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Bal b/d20,00,000By Accumulated Depreciation A/c40,000
To Gain on sale of Machinery A/c10,000By Bank A/c50,000
To Bank (b/f) (purchase)6,80,000By Bal c/d26,00,000
26,90,00026,90,000

Accumulated Depreciation A/c

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Accumulated Depreciation A/c40,000By Bal b/d1,00,000
To Bal c/d2,00,000By Depreciation A/c / Statement of Profit & Loss1,40,000
2,40,0002,40,000

(1) = 6 marks

Q114.2023 Main 67/4/1 · QB-I 346 marks

Read the following hypothetical text and answer the given question on this basis :

Madhav is a young entrepreneur. On 1st April, 2019, he formed a partnership firm with two of his friends, Mohan and Sohan. They started their business of exporting dry fruits. Their business was a successful business. Now they wanted to expand the business in many other countries. For meeting the financial requirements, they changed the form of business organisation and formed Madhav Ltd. The Balance Sheet of Madhav Ltd. as at 31.3.2022 was as follows :

Balance Sheet of Madhav Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 ₹31.3.2021 ₹
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Share Capital35,00,00025,00,000
(b) Reserves and Surplus (Statement of P & L)12,50,00010,00,000
2. Non-Current Liabilities
Long-term Borrowings (10% Debentures)12,50,0003,50,000
3. Current Liabilities
(a) Short-term Borrowings (Bank Overdraft)50,00075,000
(b) Trade Payables2,50,0001,50,000
(c) Short-term Provisions11,50,00075,000
Total64,50,00041,50,000
II – Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets240,00,00022,50,000
(b) Intangible Assets (Goodwill)3,50,0005,00,000
2. Current Assets
(a) Inventories6,25,0005,00,000
(b) Trade Receivables12,50,0007,50,000
(c) Cash and Cash Equivalents2,25,0001,50,000
Total64,50,00041,50,000

Notes to Accounts :

Note No.Particulars31.3.2022 Amount ₹31.3.2021 Amount ₹
1Short term Provisions
Provision for Tax

1,50,000

75,000
2Tangible Assets
Plant and Machinery44,00,00025,00,000
Less Accumulated Depreciation(4,00,000)(2,50,000)
40,00,00022,50,000

Additional Information :

  1. A part of the machine costing ₹ 1,25,000 accumulated depreciation thereon being ₹ 50,000 was sold for ₹45,000 during the year.
  2. Interest of ₹ 1,25,000 was paid on Debentures.

Calculate cash flows from ‘Investing activities’ and ‘Financing activities’ of Madhav Ltd. from the information provided above.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Cash flows from Investing activities

ParticularsDetails ₹Amount ₹
Sale of machinery (½)45,000
Purchase of machinery (1)(20,25,000)
Cash used in investing activities (½)(19,80,000)

[2 marks]

Cash flows from Financing activities

ParticularsDetails ₹Amount ₹
Issue of shares (½)10,00,000
10% Debentures issued (½)9,00,000
Interest on debentures paid (½)(1,25,000)
Payment of Bank Overdraft (½)(25,000)
Cash flows from Financing activities (½)17,50,000

[2½ marks]

Working notes:

Plant & Machinery A/c

Dr.
Particulars
₹ParticularsCr.
₹
To Balance b/d25,00,000By Accumulated Depreciation A/c50,000
To Bank A/c (Purchase-Bal.Fig)20,25,000By Bank A/c45,000
By Statement of P & L (Loss on sale A/c)30,000
By Balance c/d44,00,000
45,25,00045,25,000

Accumulated Depreciation A/c

Dr.
Particulars
₹ParticularsCr.
₹
To Machinery A/c50,000By Balance b/d2,50,000
To Balance c/d4,00,000By Depreciation A/c2,00,000
4,50,0004,50,000

[1½ marks]

2+2½ +1 ½ =6 marks

Q115.2023 Main 67/5/1 · QB-I 346 marks

Read the following hypothetical text and answer the questions given below on the basis of the same :

Aditi, initiated her start-up ‘Fizz Ltd.’ in 2019. ‘Fizz Ltd.’ is an organic juice extracting unit. Its profits are increasing year-after-year because of the increasing awareness towards health.

Following information has been extracted from the Balance Sheet of ‘Fizz Ltd.’ for the year ended 31st March, 2022 :

31st March, 2022 (₹)31st March, 2021 (₹)
Equity Share Capital90,00,00060,00,000
11% Debentures30,00,00050,00,000
Machinery (at cost)28,00,00020,00,000
Accumulated Depreciation on Machinery90,00060,000

Additional Information :

  1. During the year, a machine costing ₹ 4,00,000 was sold at a gain of ₹ 30,000.
  2. Depreciation charged on machinery during the year was ₹ 50,000.
  3. Interest paid on 11% debentures amounted to ₹ 5,50,000.
  4. Dividend of ₹ 3,00,000 was paid on equity shares.
  5. Debentures were redeemed at a premium of 10% on 31st March, 2022.

Calculate cash flows of ‘Fizz Ltd.’ from ‘Investing Activities’ and ‘Financing Activities.’

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Machinery Account

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Balance b/d20,00,000By Accumulated Depreciation A/c20,000
To Statement of P/L (gain)30,000By Bank A/c (sale)4,10,000
To Bank A/c (purchase)12,00,000By Balance c/d28,00,000
32,30,00032,30,000

(1 mark)

Accumulated Depreciation on Machinery Account

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Machinery A/c20,000By Balance b/d60,000
To Balance c/d90,000By Depreciation A/c50,000
1,10,0001,10,000

(½ mark)

Cash Flow from Investing Activities

ParticularsAmount (₹)
Purchase of Machinery(12,00,000)
Sale of Machinery4,10,000
Net cash used in investing activities(7,90,000)

(1½ marks)

Cash Flow from Financing Activities

ParticularsAmount (₹)
Redemption of 11% Debentures(20,00,000)
Premium on Redemption of 11% Debentures(2,00,000)
Interest Paid on 11% Debentures(5,50,000)
Issue of equity share capital30,00,000
Dividend paid on Equity Shares(3,00,000)
Net cash used in financing activities(50,000)

(1 + 1 + 1 marks)

(1 + ½ + 1½ + 3 = 6 marks)

Note – If an examinee has prepared Machinery Disposal Account, due credit is to be given.

Q116.2023 Supp. 67/C/1 · QB-I 346 marks

Read the following hypothetical text and answer the given questions on this basis :

Shobha started a small enterprise selling hand-knitted sweaters under ‘Skill India Scheme’. As the business grew, the revenue started increasing. On 1st April 2020, she decided to form ‘Shobha Ltd.’ along with twelve other like-minded persons. The Balance Sheet of Shobha Ltd. as at 31st March, 2022, is given below.

From the figures given in the Balance Sheet and additional information, calculate ‘Cash Flows from Investing Activities’ and ‘Cash Flows from Financing Activities’.

Balance Sheet of SHOBHA Ltd. as at 31st March, 2022

ParticularsNote No.31.3.2022 (₹)31.3.2021 (₹)
I – Equity and Liabilities :
1. Shareholders’ Funds
(a) Equity Share Capital8,00,0006,00,000
(b) Reserves and Surplus12,00,00050,000
2. Non-Current Liabilities
Long-term Borrowings24,00,0003,00,000
3. Current Liabilities
(a) Trade Payables40,00045,000
(b) Bank Overdraft1,00,00085,000
(c) Short-term Provisions330,00020,000
Total15,70,00011,00,000
II – Assets :
1. Non-Current Assets
Fixed Assets
(i) Tangible Assets46,00,0005,00,000
(ii) Intangible Assets550,000
2. Current Assets
(a) Inventories5,00,0004,00,000
(b) Trade Receivables4,00,00090,000
(c) Cash and Cash Equivalents70,00060,000
Total15,70,00011,00,000

Notes to Accounts :

Note No.Particulars31.3.2022 (₹)31.3.2021 (₹)
1Reserve and Surplus
Surplus i.e. Balance in Statement of Profit and Loss2,00,00050,000
2,00,00050,000
2Long-term Borrowings
10% Debentures4,00,0003,00,000
4,00,0003,00,000
3Short-term Provisions
Provision for tax30,00020,000
30,00020,000
4Tangible Assets
Machinery7,00,0006,50,000
Less : Accumulated Depreciation(1,00,000)(1,50,000)
6,00,0005,00,000
5Intangible Assets
Goodwill–50,000

Additional Information :

  1. A piece of machinery costing ₹ 1,60,000 was sold at a loss of ₹ 20,000. Depreciation charged during the year amounted to ₹ 40,000.
  2. ₹ 1,00,000, 10% debentures were issued on 31.3.2022.
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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Machinery A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Balance b/d6,50,000By Accumulated Depreciation A/c90,000
To Bank A/c (purchase)2,10,000By Bank A/c (sale)50,000
By Statement of P/L (loss)20,000
By Balance c/d7,00,000
8,60,0008,60,000

1

+

Accumulated Depreciation on Machinery A/c

Dr.
Particulars
Amount (₹)Cr.
Particulars
Amount (₹)
To Machinery A/c90,000By Balance b/d1,50,000
To Balance c/d1,00,000By Depreciation A/c40,000
1,90,0001,90,000

1

+

Cash Flow from Investing Activities

ParticularsAmount (₹)
Purchase of Machinery(2,10,000)
Sale of Machinery50,000
Net cash used in investing activities(1,60,000)

1 ½

+

Cash Flow from Financing Activities

ParticularsAmount (₹)
Issue of Equity share capital2,00,000
Issue of 10% Debentures1,00,000
Interest Paid on 10% Debentures(30,000)
Bank Overdraft taken15,000
Net cash generated from financing activities2,85,000

2 ½ = 6 marks

Q117.SQP 2025-26 · QB-I 346 marks

Extracts of the Balance Sheets of M/s Agrawal Ltd. as on 31st March,2024 and 31st March 2025alonwith additional information are given below. You are required to calculate:
(i) Operating profit before changes in working capital.
(ii) Cash Flows from Financing Activities.

31.03.202531.03.2024
Equity Share Capital12,00,0009,00,000
10% Preference Share Capital4,00,0005,00,000
Cash Credit2,50,0001,00,000
Profit and Loss (Cr.)8,00,0006,00,000
12% Debentures4,00,0003,00,000
Bank overdraft1,00,00075,000
Outstanding Interest on Debentures3,000--------

Additional Information:

  1. New equity shares and debentures were issued on last day the current accounting year ended 31st March, 2025. Debentures were issued at a discount of 5% which was written off at the end of the year.
  2. Dividend on preference shares and interim dividend @ 15% were paid on equity shares on 31st March, 2025
  3. Preference Shares were redeemed on 1st April, 2025 at a premium of 5%. The premium was provided out of profits.
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CBSE Sample Question Paper 2025-26 · Marking Scheme

Cash Flow from Operating activities

ParticularsAmount
Net Profit before tax3,75,000
Non-Operating and non-cash items
Add: Premium on redemption on preference Shares (5%of 1,00,000)5,000
Interest on debentures36,000
Discount on issue of debentures written off5,000
Operating profit before changes in working Capital4,21,000

Working notes :

Calculation of net profit before tax

Profit & Loss account balance as at 31st Marc 20258,00,000
Less Profit and loss account balance as at 31st Marc 2024(6,00,000)
2,00,000
Add Dividend paid on preference shares (10% of 4,00,000)40,000
Interim dividend on equity shares (15% of 9,00,000)1,35,000
3,75,000

Cash flow from Financing activities

ParticularsAmount
Proceeds from issue of equity shares3,00,000
Redemption of preference shares(1,00,000+5,000)(1,05,000)
Proceeds from issue of debentures (1,00,000-5,000)95,000
Increase in Bank overdraft25,000
Increase in cash Credit1,50,000
Dividend paid on preference shares(40,000)
Interim dividend on equity shares(1,35,000)
Interest on debentures (36,000-3,000)(33,000)
Net cash from Financing activities2,57,000
Q118.SQP 2026-27 · QB-I 346 marks

From the following Balance Sheet of Krishang Ltd. as at 31st March 2026, calculate Cash Flow from Operating Activities and Investing Activities.

Balance Sheet of Krishang Ltd. as at 31st March 2026

ParticularsNote No.31-03-2026 (₹)31-03-2025 (₹)
I. Equity and Liabilities
1. Shareholders' Funds
(a) Share Capital6,00,0005,50,000
(b) Reserves and Surplus11,50,0001,00,000
2. Non- Current Liabilities
(a) Long term Borrowings21,20,00085,000
3. Current Liabilities
(a) Trade Payables89,5001,02,000
(b) Short - term Provisions325,00038,500
Total9,84,5008,75,500
II. Assets
1. Non- Current Assets
(a) Fixed Assets/Property Plant and Equipment and Intangible Assets
(i) Tangible Assets/Property, Plant and Equipment45,35,0004,25,000
(ii) Intangible Assets520,00056,000
2. Current Assets
(a) Current Investments1,20,00075,000
(b) Trade Receivables1,52,5001,32,000
(c) Cash and Cash Equivalents1,57,0001,87,500
Total9,84,5008,75,500

Notes to Accounts:

Note No.Particulars31-03-2026 (₹)31-03-2025 (₹)
1Reserves and Surplus
Surplus i.e. Balance in Statement of Profit and Loss

1,50,000

1,00,000
1,50,0001,00,000
2Long-term Borrowings
10% Debentures

1,20,000

85,000
1,20,00085,000
3Short - term Provisions
Provision for Tax
25,000
25,000
38,500
38,500
4Tangible Assets/Property, Plant and Equipment
Machinery
Less: Accumulated Depreciation

6,35,000
(1,00,000)

5,00,000
(75,000)
5,35,0004,25,000
5Intangible Assets
Goodwill

20,000

56,000
20,00056,000

Additional Information:

  1. A piece of machinery costing ₹12,000 on which accumulated depreciation was ₹8,000 was sold for ₹3,000.
  2. 10% Debentures were issued on 1st October 2025.
  3. On 1st May, 2025, Land was purchased of ₹ 2,00,000 for investment purpose but due to financial requirements the company had to sell it on 31st January 2026 for ₹ 2,20,000.
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CBSE Sample Question Paper 2026-27 · Marking Scheme

Cash Flow Statement
for the year ended 31st March 2026

ParticularsAmounts(₹)
A. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items75,000
Adjustments for non-cash and non-operating items:
Add: Depreciation33,000
Amortization of goodwill36,000
Loss on sale of Machinery1,000
Interest on debentures10,250
Less: Gain on sale of land(20,000)60,250
Operating profit before working capital changes1,35,250
Less: Increase in Current Assets and Decrease in Current Liabilities
Trade Receivables(20,500)
Trade Payables(12,500)(33,000)
Cash generated from operation1,02,250
Less: Tax paid(38,500)
Net Cash flow in Operating Activities63,750
B. Cash Flow from Investing Activities
Sale of Machinery3,000
Purchase of Machinery(1,47,000)
Purchase of land(2,00,000)
Sale of land2,20,000
Net Cash used in Investing Activities(1,24,000)

Working Notes:

Dr. Machinery A/c Cr.

Particulars(₹)Particulars(₹)
To Balance b/d5,00,000By Accumulated Depreciation A/c8,000
To Bank A/c1,47,000By Bank A/c3,000
By Loss on sale of machinery A/c1,000
By balance c/d6,35,000
6,47,0006,47,000

Dr. Accumulated Depreciation A/c Cr.

Particulars(₹)Particulars(₹)
To Machinery A/c8,000By Balance b/d75,000
To Balance c/d1,00,000By Statement of profit & loss33,000
1,08,0001,08,000
Net profit before tax and extraordinary item:(₹)
Surplus i.e. change in closing balance and opening balance =50,000
Add: Provision for tax =25,000
75,000
Part B (Option II) · Computerised Accounting

13. Computerised Accounting

Q1.2026 Main 67/1/1 · QB-II 27(a)1 mark

The encryption of data facilitates :

  1. Easy processing of data and keeping records.
  2. Securing the accounting reports.
  3. Generation of mnemonic codes.
  4. Codification
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(D) Codification

Q2.2026 Main 67/1/1 · QB-II 27(b)1 mark

How many columns exist on Excel 2006 worksheet ?

  1. 2056
  2. 256
  3. 275
  4. 26
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) 275

Q3.2026 Main 67/1/1 · QB-II 281 mark

Which of the following is not contained on formula tab on Excel ribbon ?

  1. Defined names
  2. Page layout
  3. Function library
  4. Calculation
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) Page layout

Q4.2026 Main 67/1/1 · QB-II 291 mark

What will be displayed on the screen when Excel does not recognise the text or formula ?

  1. Correct a # DIV/0! Error
  2. Correct a # N/A Error
  3. Correct a # Name Error
  4. Correct a # Null! Error
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(C) Correct a # Name Error

Q5.2026 Main 67/1/1 · QB-II 30(a)1 mark

What is the outcome of an arithmetic expression or function called ?

  1. Horizontal value
  2. Derived value
  3. Basic value
  4. Vertical value
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(B) Derived value

Q6.2026 Main 67/1/1 · QB-II 30(b)1 mark

What value of range look up in VLOOKUP ( ) and HLOOKUP ( ) is used for returning only exact value ?

  1. False
  2. True
  3. Blank
  4. Zero
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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

(A) False

Q7.2026 Main 67/2/1 · QB-II 27(a)1 mark

Mainly the components of computer are :

  1. Hardware and software
  2. System software and Hardware
  3. Application software and Hardware
  4. System software and Application software
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) Hardware & Software

Q8.2026 Main 67/2/1 · QB-II 27(b)1 mark

Which of the following is not a part of equity and liability group of accounts ?

  1. Money received against share warrants
  2. Deferred tax liability
  3. Capital work in progess
  4. Trade payable
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Capital work in progress

Q9.2026 Main 67/2/1 · QB-II 281 mark

Which chart element details the data values and categories below the chart :

  1. Data marker
  2. Data labels
  3. Data tables
  4. Data point
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) Data labels

Q10.2026 Main 67/2/1 · QB-II 291 mark

Depreciation is generated from which of the following accounting sub-system :

  1. Tax accounting sub-system
  2. Expense accounting sub-system
  3. Fixed assets accounting sub-system
  4. Final accounts sub-system
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(C) Fixed assets accounting sub-system

Q11.2026 Main 67/2/1 · QB-II 30(a)1 mark

Which type of software package is suitable for an organization where the volume of accounting transaction is very low and adaptability is very high ?

  1. Specific
  2. Generic
  3. Tailored
  4. (A) and (C) both
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(B) Generic

Q12.2026 Main 67/2/1 · QB-II 30(b)1 mark

What is used to build single formula with multiple results in Excel ?

  1. Array
  2. Derived value
  3. Vectors
  4. Round ( )
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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(A) Array

Q13.2026 Main 67/3/1 · QB-II 27(a)1 mark

Which of the following is not a feature of ‘Generic’ Computerised Accounting Software ?

  1. Increased data security
  2. Suitable for business with low accounting operations
  3. Requires minimal system support
  4. Cheaper
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) Increased data security

Q14.2026 Main 67/3/1 · QB-II 27(b)1 mark

Identify what will be displayed on the screen when we specify an intersection of two areas that do not intersect.

  1. Correct a ##### Error
  2. Correct a #NULL! Error
  3. Correct a #Name Error
  4. Correct a #REF! Error
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Correct a # NULL! Error

Q15.2026 Main 67/3/1 · QB-II 281 mark

Which financial function calculates the lump-sum amount for series of future payments ?

  1. NPER
  2. FV
  3. PV
  4. PMT
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(C) PV

Q16.2026 Main 67/3/1 · QB-II 291 mark

________ provides additional information about a data marker to identify the details of data point in a data series.

  1. Source data
  2. Secondary data
  3. Data series
  4. Data label
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(D) Data Label

Q17.2026 Main 67/3/1 · QB-II 30(a)1 mark

‘Computerised Accounting System enables changing the volume of data processing in accordance with the size and growth of the business.’ Identify the feature of Computerised Accounting System being highlighted in the statement :

  1. Reliability
  2. Scalability
  3. Transparency
  4. Simple and integrated
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(B) Scalability

Q18.2026 Main 67/3/1 · QB-II 30(b)1 mark

The process of comparing input data with some known data is known as :

  1. Data Validation
  2. Storage data
  3. Data entry
  4. Redundant data
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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

(A) Data Validation

Q19.2026 Main 67/4/1 · QB-II 27(a)1 mark

Fixed Asset Accounting sub-system generates information about :

  1. Loans
  2. Purchase expenses
  3. Depreciation
  4. Inventory purchased
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(C) Depreciation

Q20.2026 Main 67/4/1 · QB-II 27(b)1 mark

A column chart can be changed to a pie chart because :

  1. Only one data series is used to plot it.
  2. The plotted data values are positive.
  3. The data values are not equal to zero also.
  4. More than seven categories of data can be represented.

Identify the correct option :

  1. All except point I are correct.
  2. All except point II are correct.
  3. All except point III are correct.
  4. All except point IV are correct.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(D) All except point IV are correct

Q21.2026 Main 67/4/1 · QB-II 281 mark

It is a widely accepted security control. It uses binary encoding format of storage to offer access to database. It is known as :

  1. Password security
  2. Data audit
  3. Data vault
  4. Data integrity
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Password security

Q22.2026 Main 67/4/1 · QB-II 291 mark

A1 : E2 refers to :

  1. Rows on Excel sheet
  2. Cells between starting point A1 to ending point E2
  3. Column on Excel sheet
  4. Alphabetic arrangement between A to E
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) Cells between starting point A1 to ending point E2

Q23.2026 Main 67/4/1 · QB-II 30(a)1 mark

The accounting software which satisfies the requirement of large business organisations with multiusers and geographically scattered locations is :

  1. Generic software
  2. Tailored software
  3. Specific software
  4. Both (A) and (C)
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(B) Tailored software

Q24.2026 Main 67/4/1 · QB-II 30(b)1 mark

Which of the following is not contained on formula tab on Excel ribbon ?

  1. Page layout
  2. Function library
  3. Defined names
  4. Calculations
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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

(A) Page layout

Q25.2026 Main 67/5/1 · QB-II 27(a)1 mark

Which of the following is not a feature of Tailored accounting software ?

  1. Designed specially for large enterprises
  2. Requires minimal or no support from system
  3. Requires special training before use
  4. Needs technical installation efforts
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) Requires minimal or no support from system

Q26.2026 Main 67/5/1 · QB-II 27(b)1 mark

When an arithmetic expression or function is executed, the value produced is known as :

  1. Horizontal value
  2. Vertical value
  3. Derived value
  4. Basic value
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) Derived value

Q27.2026 Main 67/5/1 · QB-II 281 mark

How is navigation conducted from the first to the last cell in a cluster of data in a column by skipping all the cells in between ?

  1. END + Down arrow (↓)
  2. HOME + Page down
  3. HOME + Down arrow (↓)
  4. CTRL + Down arrow (↓) successively
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(A) END + Down arrow (↓)

Q28.2026 Main 67/5/1 · QB-II 291 mark

The PMT function in MS Excel is used to :

  1. Calculate the total interest on a loan.
  2. Calculate the periodic payment for a loan or investment.
  3. Calculate the future value of an investment.
  4. Calculate the present value of a series of payments.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(B) Calculate the periodic payment for a loan or investment

Q29.2026 Main 67/5/1 · QB-II 30(a)1 mark

#NAME? Error indicates :

  1. Syntax error in the formula
  2. Missing data in the worksheet
  3. Formula referring to a protected call
  4. Excel does not understand the text used in the formula.
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(D) Excel does not understand the text used in the formula.

Q30.2026 Main 67/5/1 · QB-II 30(b)1 mark

Which of the following statements best describes the purpose of a data vault in an accounting software ?

  1. It helps in data analysis and reporting.
  2. It is used to maintain audit trails.
  3. It ensures data confidentiality and integrity through restricted access.
  4. It is used to back up deleted vouchers automatically.
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

(C) It ensures data confidentiality and integrity through restricted access.

Q31.2026 Supp. 67/7/1 · QB-II 27(a)1 mark

Which of the following is not a feature of customised accounting software ?

  1. Software is modified to meet user-specific needs
  2. Higher maintenance
  3. Increased data privacy and security
  4. No training required to use the software
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) Training for the Software is not required

Q32.2026 Supp. 67/7/1 · QB-II 27(b)1 mark

How many auto-formatting styles are available in MS Excel 2007 to give a spreadsheet a professional look ?

  1. 17
  2. 34
  3. 7
  4. 119
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) 17

Q33.2026 Supp. 67/7/1 · QB-II 281 mark

Name the voucher which does not affect the accounts of the user.

  1. Post-Dated Voucher
  2. User-Defined Voucher
  3. Memo Voucher
  4. Contra Voucher
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(C) Memo voucher

Q34.2026 Supp. 67/7/1 · QB-II 291 mark

Which window will be used to change the system period on the screen in Tally from the following ?

  1. Alt + F1
  2. Alt + F2
  3. Alt + F4
  4. Alt + F6
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(B) ALT + F2

Q35.2026 Supp. 67/7/1 · QB-II 30(a)1 mark

From the following, identify the chart that displays data in rings, where each ring represents a data series :

  1. Doughnut chart
  2. Radar chart
  3. Pie chart
  4. Both (B) and (C)
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(A) Doughnut chart

Q36.2026 Supp. 67/7/1 · QB-II 30(b)1 mark

‘LABELS’ in MS Excel means :

  1. Information which can be treated mathematically
  2. A text or special character
  3. It is used for descriptive information of rows or columns
  4. Both (B) and (C)
Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

(D) Both (B) and (C)

Q37.2025 Main 67/1/1 · QB-II 27(a)1 mark

Which of the following is not an advantage of Computerised Accounting System ?

  1. Timely generation of reports in desired format.
  2. Unprogrammed and un-specific reports cannot be generated.
  3. Economy in processing of accounting data.
  4. Efficient record keeping.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) Unprogrammed and un-specific reports cannot be generated

Q38.2025 Main 67/1/1 · QB-II 27(b)1 mark

The need for codification is for :

  1. easy processing of data and keeping the records.
  2. generation of mnemonic codes.
  3. to secure accounting reports.
  4. the encryption of data.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) the encryption of data

Q39.2025 Main 67/1/1 · QB-II 281 mark

To see all the available shape styles, which of the following button is to be clicked ?

  1. More
  2. Custom
  3. Chart root
  4. Picture
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(A) More

Q40.2025 Main 67/1/1 · QB-II 29(a)1 mark

To safeguard assets and optimise the use of resources of a business :

  1. shield and secure its assets only.
  2. try to earn sufficient profits only.
  3. keep internal checks and controls.
  4. ensure accuracy in accounting records only.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(C) keep internal checks and controls

Q41.2025 Main 67/1/1 · QB-II 29(b)1 mark

Which of the following item is not included in Account group-loans (liabilities) in the Account group of Balance Sheet ?

  1. Bank overdraft
  2. Sundry creditors
  3. Unsecured loans
  4. Secured loans
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(B) Sundry creditors

Q42.2025 Main 67/1/1 · QB-II 301 mark

Which of the following is an adjustment voucher normally used for non-cash transaction ?

  1. Payment voucher
  2. Receipt voucher
  3. Contra voucher
  4. Journal voucher
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(D) Journal voucher

Q43.2025 Main 67/2/1 · QB-II 27(a)1 mark

A piece of information shown in a graph which is assigned to the data series is known as :

  1. data point
  2. data label
  3. legend
  4. plot area
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(C) legend

Q44.2025 Main 67/2/1 · QB-II 27(b)1 mark

Identify the type of code used by a trading company Ms. Ahana Ltd. :

CodesAccounts
CA005Super Ltd.
CA006Regina Ltd.
CA007Nasir & Sons Ltd.
  1. Block codes
  2. Mnemonic codes
  3. Encryptic codes
  4. Sequential codes
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) Sequential codes

Q45.2025 Main 67/2/1 · QB-II 281 mark

The software of computerised accounting system can be used for any size of business and type of organization as it enables changing the volume of data processing in tune with the change in the size of business. Which feature of Computerised Accounting System is being highlighted in above lines ?

  1. Scalability
  2. Simple
  3. Speed
  4. Reliability
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(A) Scalability

Q46.2025 Main 67/2/1 · QB-II 29(a)1 mark

Which of the following is a part of Asset group 'Current Assets' in account group of Assets ?

  1. Duties and Taxes
  2. Miscellaneous Expenditures
  3. Reserves & Surplus
  4. Direct Expenses
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(B) Miscellaneous Expenditures

Q47.2025 Main 67/2/1 · QB-II 29(b)1 mark

Null value is the special value which represents :

  1. Stores value items
  2. Data with many values
  3. Absence of data items
  4. Single value data item
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(C) Absence of data items

Q48.2025 Main 67/2/1 · QB-II 301 mark

To see all available shape styles which of the following button is clicked ?

  1. Chart tool
  2. Picture
  3. Custom
  4. More
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

(D) More

Q49.2025 Main 67/4/1 · QB-II 27(a)1 mark

‘LABELS’ in Excel means :

  1. A text or special character
  2. Used for rows, columns or descriptive information
  3. Can be treated mathematically
  4. Both (A) and (B)
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Both (A) and (B)

Q50.2025 Main 67/4/1 · QB-II 27(b)1 mark

Which of the following is not contained on formula tab on Excel ribbon ?

  1. Function library
  2. Defined names
  3. Page layout
  4. Calculations
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) Page Layout

Q51.2025 Main 67/4/1 · QB-II 281 mark

It is a widely accepted security control. It uses binary coding format of storage to offer access to database. It is known as :

  1. Data vault
  2. Password security
  3. Data audit
  4. Data integrity
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(B) Password Security

Q52.2025 Main 67/4/1 · QB-II 291 mark

What is the activity sequence of the basic information processing model ?

  1. Organise data, collect data and then process data.
  2. Process data, organise data and then collect data.
  3. Process data, communicate information and then collect data.
  4. Collect data, organise and process data and then communicate information.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(D) Collect data, organise and process data and then communicate information.

Q53.2025 Main 67/4/1 · QB-II 30(a)1 mark

The code that enables identification of missing documents is :

  1. Sequential code
  2. Mnemonic code
  3. Alphabetic code
  4. Block code
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(A) Sequential Code

Q54.2025 Main 67/4/1 · QB-II 30(b)1 mark

Absence of data item is represented by a special value i.e. :

  1. Single value
  2. Store value
  3. Null value
  4. Multi value
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(C) Null Value

Q55.2025 Main 67/5/1 · QB-II 27(a)1 mark

Name the accounting information sub-system which deals with payment of wages and salaries of employees.

  1. Costing sub-system
  2. Expense accounting sub-system
  3. Payroll accounting sub-system
  4. Tax accounting sub-system
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) Payroll accounting sub-system

Q56.2025 Main 67/5/1 · QB-II 27(b)1 mark

When the accumulated data from various sources is processed in one slot it is called :

  1. Batch processing
  2. Data validation
  3. Real time processing
  4. Processing and Revalidation
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) Batch Processing

Q57.2025 Main 67/5/1 · QB-II 281 mark

A cell reference that either holds raw or column constant when the formula or function is copied to another location is known as :

  1. Mixed cell reference
  2. Relative cell reference
  3. Ranges
  4. Absolute cell reference
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(D) Absolute cell reference

Q58.2025 Main 67/5/1 · QB-II 29(a)1 mark

‘MAJN’ for Mangaluru Junction is an example of :

  1. Secret code
  2. Mnemonic code
  3. Sequential code
  4. Block code
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(B) Mnemonic code

Q59.2025 Main 67/5/1 · QB-II 29(b)1 mark

Which of the following is not contained in Account group – Current Liabilities in the Account group of Balance Sheet ?

  1. Bank Overdraft
  2. Duties and Taxes
  3. Provisions
  4. Sundry Creditors
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(A) Bank overdraft

Q60.2025 Main 67/5/1 · QB-II 301 mark

In a graph, the area bounded by different axes is known as :

  1. Data point
  2. Axis title
  3. Plot area
  4. Legend
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

(C) Plot area

Q61.2025 Main 67/6/1 · QB-II 27(a)1 mark

Which of the following voucher records outflow of money from the business ?

  1. Journal Voucher
  2. Receipt Voucher
  3. Contra Voucher
  4. Payment Voucher
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Payment Voucher

Q62.2025 Main 67/6/1 · QB-II 27(b)1 mark

The raw facts for any business application is known as which of the following components of Computerised Accounting System ?

  1. Data
  2. Hardware
  3. Software
  4. Procedure
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Data

Q63.2025 Main 67/6/1 · QB-II 281 mark

The outcome of an arithmetic expression or function is called :

  1. Horizontal value
  2. Derived value
  3. Basic value
  4. Vertical value
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(B) Derived value

Q64.2025 Main 67/6/1 · QB-II 29(a)1 mark

How are ranges identified within Excel ?

  1. Using Hashtag
  2. Using Vector
  3. Using Colour
  4. Using Comma
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(C) Using Colour

Q65.2025 Main 67/6/1 · QB-II 29(b)1 mark

Two important requirements of an accounting report are :

  1. Language processing and utility
  2. Storage and presentation
  3. System analysis and operations
  4. Timelines and relevance
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(D) Timelines and relevance

Q66.2025 Main 67/6/1 · QB-II 301 mark

Which chart element provides additional information about a data marker to identify the details of data in data series ?

  1. Data label
  2. Data table
  3. Data point
  4. Data marks
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

(A) Data label

Q67.2025 Main 67/7/1 · QB-II 27(a)1 mark

Computerised Accounting System rests on Five Pillars :
Data, People, Procedure and ________, ________.
Identify the blank pillars from the following :

  1. Hardware, Software
  2. User, Customer
  3. Software, Logic
  4. Timely access, Hardware
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(A) Hardware, Software

Q68.2025 Main 67/7/1 · QB-II 27(b)1 mark

Which of the following is not a limitation of Computerised Accounting System ?

  1. Faster obsolescence.
  2. Economy in processing of accounting data.
  3. Data are prone to hacking.
  4. Data may be lost or corrupted due to power interruptions.
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(B) Economy in processing of accounting data.

Q69.2025 Main 67/7/1 · QB-II 281 mark

MS Excel considers which of the following group of mathematical operations to be of equal importance ?

  1. Subtraction and Division
  2. Multiplication and Addition
  3. Division and Multiplication
  4. Exponents and Division
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Division and Multiplication

Q70.2025 Main 67/7/1 · QB-II 29(a)1 mark

How is navigation conducted from first to last cell in a cluster of data in a column by skipping all the cells in between ?

  1. Home + Page down
  2. Home + Down arrow (↓)
  3. End + Down arrow (↓)
  4. CTRL + Down arrow (↓) successively
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) End + Down arrow (↓)

Q71.2025 Main 67/7/1 · QB-II 29(b)1 mark

Individual values represented by bars, columns, lines, pie or various forms plotted on a chart are known as :

  1. data point
  2. data label
  3. data series
  4. data markers
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(D) data markers

Q72.2025 Main 67/7/1 · QB-II 301 mark

Identify the error which will be displayed on the screen when the value is not available to a function or formula :

  1. Correct #DIV/0! Error
  2. Correct #NUM! Error
  3. Correct #N/A Error
  4. Correct #Name Error
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(C) Correct # N/A Error

Q73.2025 Supp. 67/S/1 · QB-II 27(a)1 mark

What is the outcome of an arithmetic expression or function called ?

  1. Horizontal vector
  2. Derived value
  3. Basic value
  4. Vertical vector
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Derived value

Q74.2025 Supp. 67/S/1 · QB-II 27(b)1 mark

How are ‘absolute cell reference’ and ‘mixed cell reference’ identified in Excel ?

  1. Using # sign
  2. Using ~ sign
  3. Using $ sign
  4. Using £ sign
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) Using $ sign

Q75.2025 Supp. 67/S/1 · QB-II 281 mark

How many categories of function are available in Excel 2007 ?

  1. 2
  2. 6
  3. 12
  4. 7
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(C) 12

Q76.2025 Supp. 67/S/1 · QB-II 29(a)1 mark

What is the result for the following function based on the data provided ?

1AB
24·23Mango
34·62Orange
45·86Banana
57·94Pear

= LOOKUP(8,A2:A5,B2:B5)
= LOOKUP(3·5,A2:A5,B2:B5)

  1. Pear, #N/A
  2. Pear, Mango
  3. #N/A, Mango
  4. #N/A, #N/A
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(A) Pear, #N/A

Q77.2025 Supp. 67/S/1 · QB-II 29(b)1 mark

What is used to build single formula with multiple results in Excel ?

  1. Derived value
  2. Vectors
  3. Round()
  4. Array
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(D) Array

Q78.2025 Supp. 67/S/1 · QB-II 301 mark

Identify the error which will be displayed on screen when the set of co-ordinates that a cell occupies on a worksheet is invalid.

  1. Correct a # NAME ? Error
  2. Correct # REF ! Error
  3. Correct a # N/A Error
  4. Correct a ##### Error
Reveal answerHide answer
Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

(B) Correct # REF! Error

Q79.2024 Main 67/1/1 · QB-II 271 mark

Data, ___________, ___________, Hardware and Software are five pillars of Computerised Accounting System (CAS).

From the following, which two pillars of CAS are missing in the above statement :

  1. Printer and Mouse
  2. People and Procedures
  3. Mouse and CPU
  4. Information and Accounts
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(B) People and Procedures

Q80.2024 Main 67/1/1 · QB-II 28(a)1 mark

Name the Accounting Information sub-system which deals with receipt and payment of cash and electronic funds transfer :

  1. Sales and Accounts Receivable sub-system
  2. Purchase and Accounts Payable sub-system
  3. Cash and Bank sub-system
  4. Costing sub-system
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Cash and Bank sub-system

Q81.2024 Main 67/1/1 · QB-II 28(b)1 mark

When the accumulated data from various sources is processed in one shot it is called :

  1. Real time processing
  2. Data validation
  3. Batch processing
  4. Processing and revalidation
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(C) Batch processing

Q82.2024 Main 67/1/1 · QB-II 291 mark

How many categories of data can be plotted on a pie chart in Excel software ?

  1. 4
  2. 12
  3. 20
  4. 7
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(D) 7

Q83.2024 Main 67/1/1 · QB-II 30(a)1 mark

Codes — Dealer Type
100 – 199 — Cycle tyres
200 – 299 — Cycle seats

From the following, identify the type of code used by a trading company :

  1. Block code
  2. Sequential code
  3. Mnemonic code
  4. Secret code
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) Block code

Q84.2024 Main 67/1/1 · QB-II 30(b)1 mark

Correct ##### appears :

  1. When column is not wide enough.
  2. When a number is divided by zero.
  3. When value is not available.
  4. When there are exceptions of summary of data.
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(A) When column is not wide enough

Q85.2024 Main 67/2/1 · QB-II 271 mark

‘Data, people _________, _________ and software are five pillars of a Computerised Accounting System (CAS)’.

Which of the pillars of CAS are missing from the statement ?

  1. Procedures and Hardware
  2. Printer and CPU
  3. Mouse and Desktop
  4. Information and Accounts
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(A) Procedures and Hardware

Q86.2024 Main 67/2/1 · QB-II 28(i)1 mark

‘Sales and Accounts Receivable Sub-system’ of Accounting Information System deals with which of the following ?

  1. Receipt and payment of cash sub-system
  2. Recording and maintaining the sales ledger and receivables
  3. Ascertaining cost of goods produced
  4. Purchase and payment to creditors
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(B) Recording and maintaining the sales ledger and receivables.

Q87.2024 Main 67/2/1 · QB-II 28(ii)1 mark

A Null value is a special value which represents :

  1. Single value data item
  2. Item with many values
  3. Absence of data items
  4. Stored value
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) Absence of data items

Q88.2024 Main 67/2/1 · QB-II 291 mark

The process of comparing input data with some unknown data is called :

  1. Data storage
  2. Data entry
  3. Data validation
  4. Data filter
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) Data validation

Q89.2024 Main 67/2/1 · QB-II 30(i)1 mark

From the following, identify a ‘Data label’ as a chart element :

  1. Details and positions a legend on the chart.
  2. Indicates the individual value plotted on the chart.
  3. Details the data value and categories below the chart.
  4. Is a descriptive text for the chart.
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) Details the data value and categories below the chart.

Q90.2024 Main 67/2/1 · QB-II 30(ii)1 mark

How many logical values can be entered into a logical function ?

  1. 525
  2. 552
  3. 255
  4. 15
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

(C) 255

Q91.2024 Main 67/3/1 · QB-II 271 mark

Identify the type of software which is suited for large and medium organisations and can be linked to other information systems.

  1. Specific
  2. Generic
  3. Tailored
  4. Both (B) and (C)
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(A) Specific

Q92.2024 Main 67/3/1 · QB-II 28(a)1 mark

In a graph, the area bounded by different axes is known as :

  1. Legend
  2. Data point
  3. Axis title
  4. Plot area
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(D) Plot Area

Q93.2024 Main 67/3/1 · QB-II 28(b)1 mark

Which of the following is not contained on formula tab on Excel ribbon ?

  1. Function library
  2. Defined names
  3. Calculations
  4. Page layout
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(D) Page Layout

Q94.2024 Main 67/3/1 · QB-II 291 mark

How is navigation conducted from the first to the last filled cells of clusters when moving one cell at a time in a row ?

  1. Home + Right arrow (→)
  2. CTRL + Right arrow (→) successively
  3. END + Right arrow (→)
  4. CTRL + END
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(B) CTRL + Right Arrow (→) successively

Q95.2024 Main 67/3/1 · QB-II 30(a)1 mark

Which Date and Time function returns value of today’s date with time ?

  1. Today( )
  2. Day( )
  3. Now( )
  4. Day time( )
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) Now ( )

Q96.2024 Main 67/3/1 · QB-II 30(b)1 mark

What is the outcome of an arithmetic expression or function called ?

  1. Basic Value
  2. Vertical Vector
  3. Derived Value
  4. Horizontal Vector
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

(C) Derived Value

Q97.2024 Main 67/4/1 · QB-II 271 mark

Which of the following type of software suffers from the limitation of low secrecy level and software being prone to data frauds ?

  1. tailored
  2. specific
  3. generic
  4. (A) and (B) both
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(C) generic

Q98.2024 Main 67/4/1 · QB-II 28(a)1 mark

‘A piece of information shown in a graph which is assigned to the data series’ is known as :

  1. data point
  2. data table
  3. plot point
  4. legend
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) legend

Q99.2024 Main 67/4/1 · QB-II 28(b)1 mark

‘LABELS’ in Excel means :

  1. A text or special character
  2. Used for rows, columns or descriptive information
  3. Can be treated mathematically
  4. (A) and (B) both
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(D) (A) and (B) both

Q100.2024 Main 67/4/1 · QB-II 291 mark

How are ‘absolute cell references’ and ‘mixed reference’ identified in Excel ?

  1. using $ sign
  2. using £ sign
  3. using # sign
  4. using ~ sign
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(A) Using $ sign

Q101.2024 Main 67/4/1 · QB-II 30(a)1 mark

Excel considers which of the following group of mathematical operations of equal importance ?

  1. Multiplication and Addition
  2. Division and Multiplication
  3. Exponent and Multiplication
  4. Subtraction and Division
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) Division and Multiplication

Q102.2024 Main 67/4/1 · QB-II 30(b)1 mark

How many rows are available in Excel 2007 ?

  1. 5663
  2. 65536
  3. 72257
  4. 4332
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

(B) 65536

Q103.2024 Main 67/5/1 · QB-II 271 mark

Which chart has depth axis ?

  1. 2D chart
  2. 3D chart
  3. Radar chart
  4. Doughnut chart
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(B) 3D chart

Q104.2024 Main 67/5/1 · QB-II 28(a)1 mark

Which of the following is not a limitation of computerised accounting system ?

  1. Data may be lost or corrupted due to power interruptions.
  2. Data are prone to hacking.
  3. Data is made available to everybody.
  4. Unprogrammed and unspecific reports cannot be generated.
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) Data is made available to everybody

Q105.2024 Main 67/5/1 · QB-II 28(b)1 mark

To safeguard assets and optimize the use of resources a business _______.

  1. Only tries to earn sufficient revenue.
  2. Only ensures accuracy in accounting records.
  3. Keeps internal controls.
  4. Only protects its assets.
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(C) Keeps internal controls

Q106.2024 Main 67/5/1 · QB-II 291 mark

“A value or function or an arithmetic expression is recorded in ______.”

  1. Row
  2. Column
  3. Range
  4. Cell
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) Cell

Q107.2024 Main 67/5/1 · QB-II 30(a)1 mark

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
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) Fixed assets accounting sub-system

Q108.2024 Main 67/5/1 · QB-II 30(b)1 mark

Which type of software package is suitable for an organization where the volume of accounting transactions is very low and adaptability is very high ?

  1. Specific
  2. Tailored
  3. ERP Software
  4. Generic
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

(D) Generic

Q109.2024 Supp. 67/S/1 · QB-II 271 mark

Which of the following is not an advantage of computerised accounting system ?

  1. Timely generation of reports in desired format
  2. Ensures effective control over the system
  3. Faster obsolescence of technology
  4. Confidentiality of data is maintained
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(C) Faster obsolescence of technology

Q110.2024 Supp. 67/S/1 · QB-II 28(a)1 mark

A ‘legend’ can be repositioned on the chart :

  1. On the right side only
  2. On the left side only
  3. On the bottom of x-axis
  4. Anywhere
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) Anywhere

Q111.2024 Supp. 67/S/1 · QB-II 28(b)1 mark

The need for codification is for :

  1. the generation of mnemonic codes
  2. securing the accounting reports
  3. easy processing of data and keeping records
  4. the encryption of data
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(D) the encryption of data

Q112.2024 Supp. 67/S/1 · QB-II 291 mark

To see all available shape styles of a chart, which of the following buttons is clicked ?

  1. More
  2. Chart tool
  3. Picture
  4. Custom
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(A) More

Q113.2024 Supp. 67/S/1 · QB-II 30(a)1 mark

A sequential code refers to code applied to some documents where :

  1. Account heads are assigned to documents
  2. Numbers and letters are assigned in consecutive order
  3. Special names are given to accounts
  4. Documents are arranged in special sequence
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) Numbers and letters are assigned in consecutive order

Q114.2024 Supp. 67/S/1 · QB-II 30(b)1 mark

Name the Accounting information sub-system which is linked with other sub-systems for obtaining information about cost and expenses :

  1. Cash and Bank sub-system
  2. Costing sub-system
  3. Expense accounting sub-system
  4. Final accounts sub-system
Reveal answerHide answer
Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(B) Costing sub-system

Q115.2023 Main 67/1/1 · QB-II 27(i)1 mark

The need of codification is for :

  1. The generation of mnemonic codes.
  2. To secure accounts, reports, etc.
  3. The encryption of data.
  4. Easy to process data, keeping proper records.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) The encryption of data.

Q116.2023 Main 67/1/1 · QB-II 27(ii)1 mark

Which of the following software packages is suitable for an organisation where the volume of accounting transactions is very small and adaptability is very high :

  1. Specific
  2. Tailored
  3. Specific and tailored both
  4. Generic
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(D) Generic

Q117.2023 Main 67/1/1 · QB-II 281 mark

The outcome of an arithmetic expression or function is called :

  1. Derived Value
  2. Basic Value
  3. Vertical Value
  4. Horizontal Value
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) Derived Value

Q118.2023 Main 67/1/1 · QB-II 291 mark

When the accumulated data from various sources is processed in one shot, it is called :

  1. Real-time processing
  2. Batch processing
  3. Data validation
  4. Processing and Revalidation
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(B) Batch processing

Q119.2023 Main 67/1/1 · QB-II 30(i)1 mark

The name of accounting information sub-system which is linked with other sub-systems for obtaining information about cost and expenses is :

  1. Cash and Bank sub-system
  2. Expense Accounting sub-system
  3. Costing sub-system
  4. Final Accounts sub-system
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(C) Costing sub-system

Q120.2023 Main 67/1/1 · QB-II 30(ii)1 mark

The process of comparing input data with some unknown data is called :

  1. Data validation
  2. Data entry
  3. Information data
  4. Storage data
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

(A) Data validation

Q121.2023 Main 67/2/1 · QB-II 27(a)1 mark

Which of the following components of computerised accounting system are known as raw facts for any business organisation ?

  1. Procedure
  2. Data
  3. Hardware
  4. Software
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Data

Q122.2023 Main 67/2/1 · QB-II 27(b)1 mark

Which of the following software packages is suitable for an organization where the volume of accounting transactions is small and adaptability is very high ?

  1. Specific
  2. Tailored
  3. Generic
  4. (b) and (c) both
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) Generic

Q123.2023 Main 67/2/1 · QB-II 281 mark

How many worksheets are available to a user by default while working on a workbook ?

  1. 5
  2. 1
  3. 10
  4. 3
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(D) 3

Q124.2023 Main 67/2/1 · QB-II 291 mark

What is the outcome of an arithmetic expression or function called :

  1. Derived value
  2. Basic value
  3. Horizontal vector
  4. Vertical vector
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(A) Derived value

Q125.2023 Main 67/2/1 · QB-II 30(a)1 mark

A _______ is identified by combination of letter and number corresponding to particular location within the spreadsheet.

  1. Row
  2. Cell
  3. Column
  4. Range
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(B) Cell

Q126.2023 Main 67/2/1 · QB-II 30(b)1 mark

Entries required to make trading account and profit and loss account are known as :

  1. Opening entries.
  2. Adjusting entries.
  3. Closing entries.
  4. (a) and (b) both.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

(C) Closing entries

Q127.2023 Main 67/3/1 · QB-II 27(i)1 mark

From the following a legend can be repositioned on a chart :

  1. On the corner only
  2. Anywhere
  3. On right-side only
  4. On the bottom of x-axis
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Anywhere

Q128.2023 Main 67/3/1 · QB-II 27(ii)1 mark

Which of the following are the five pillars of computerised accounting system :

  1. Data, Report, Ledger, Hardware, Software
  2. Data, People, Procedure, Hardware, Software
  3. People, Procedure, Ledger, Data, Chart of Accounts
  4. Data, Coding, Procedure, Rules, Output
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Data, People, Procedure, Hardware, Software

Q129.2023 Main 67/3/1 · QB-II 281 mark

Which of the following menu is used to create a group :

  1. Gateway to Tally > master > accounting information > display
  2. Gateway to Tally > master > edit > accounting information
  3. Gateway to Tally > master > accounting information > create
  4. Gateway to Tally > master > alter > accounting information
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(C) Gateway to Tally > master > accounting information > create

Q130.2023 Main 67/3/1 · QB-II 291 mark

From the following, identify the Accounting information sub-system which generates periodic reports about sales and collections made :

  1. Cash and Bank sub-system
  2. Sales and Accounts Receivable sub-system
  3. Inventory sub-system
  4. Budget sub-system
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(B) Sales and Accounts Receivable sub-system

Q131.2023 Main 67/3/1 · QB-II 30(i)1 mark

Absence of data items is represented by one of the special values from the following i.e. :

  1. Single value
  2. Stored value
  3. Multi value
  4. Null value
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) Null Value

Q132.2023 Main 67/3/1 · QB-II 30(ii)1 mark

The process of comparing input data with some unknown data is called :

  1. Storage data
  2. Information data
  3. Data entry
  4. Data validation
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(D) Data validation

Q133.2023 Main 67/4/1 · QB-II 27(i)1 mark

The need of codification is for :

  1. Generation of mnemonic codes.
  2. The encryption of data
  3. Securing the accounts, reports, etc.
  4. Easy processing of data and keeping proper records
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) The encryption of data

Q134.2023 Main 67/4/1 · QB-II 27(ii)1 mark

Where are the amounts owed by customers for credit purchases found in books of accounts ?

  1. Accounts Receivable Journal
  2. General Ledger
  3. Accounts Receivable Subsidiary Ledger
  4. Sales Journal
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) Accounts Receivable Subsidiary Ledger

Q135.2023 Main 67/4/1 · QB-II 281 mark

Pie Charts do not have more than ______ categories.

  1. Three
  2. Twenty
  3. Twelve
  4. Seven
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(D) Seven

Q136.2023 Main 67/4/1 · QB-II 291 mark

Which of the following statement is not a limitation of computerised accounting system ?

  1. Data is not made available to everyone.
  2. Data may be lost or corrupted due to power interruptions.
  3. Data are prone to hacking.
  4. Unprogrammed and unspecified reports cannot be generated.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(A) Data is not made available to everyone

Q137.2023 Main 67/4/1 · QB-II 30(i)1 mark

To safeguard assets and optimise the use of resources, a business

  1. Only tries to earn maximum revenue.
  2. Keeps internal controls.
  3. Only ensures accurate accounting records.
  4. Only safeguards assets.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(B) Keeps internal controls

Q138.2023 Main 67/4/1 · QB-II 30(ii)1 mark

Correct ##### error appears :

  1. When a number is divided by zero.
  2. When value is not available.
  3. When column is not wide enough.
  4. When formula is not available.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

(C) When column is not wide enough

Q139.2023 Main 67/5/1 · QB-II 27(a)1 mark

Maximum number of characters that can be used to write a field name in MS Access is :

  1. 28
  2. 32
  3. 64
  4. 104
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(C) 64

Q140.2023 Main 67/5/1 · QB-II 27(b)1 mark

Which of the following command reverses the last action performed in the worksheet ?

  1. Undo
  2. Cut
  3. Paste
  4. Redo
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) Undo

Q141.2023 Main 67/5/1 · QB-II 281 mark

Codes comprising of alphabets or abbreviation are known as ______.

  1. Sequential codes
  2. Block codes
  3. Number codes
  4. Mnemonic codes
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) Mnemonic Codes

Q142.2023 Main 67/5/1 · QB-II 29(a)1 mark

Which of these is not a argument of the IF function ?

  1. Value-if-true
  2. Value-when-false
  3. Value-if-false
  4. Logical test
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(B) Value-when-false

Q143.2023 Main 67/5/1 · QB-II 29(b)1 mark

How many blank worksheets are shown when a new workbook is created ?

  1. Three
  2. Four
  3. One
  4. Two
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(A) Three

Q144.2023 Main 67/5/1 · QB-II 301 mark

Which of the following is not the advantage of Pivot table ?

  1. Filtering of data
  2. User-friendly
  3. Moving rows to columns and columns to rows
  4. Cannot summarise large amount of data
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(D) Cannot summarise large amount of data

Q145.2023 Supp. 67/C/1 · QB-II 27(a)1 mark

Computer-related peripherals and their network is known as which of the following components of Computerised Accounting System ?

  1. Procedure
  2. Data
  3. Hardware
  4. Software
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Hardware

Q146.2023 Supp. 67/C/1 · QB-II 27(b)1 mark

Which of the following functions automatically totals a column or row of values ?

  1. AVG
  2. TOTAL
  3. SUM
  4. ADD
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) SUM

Q147.2023 Supp. 67/C/1 · QB-II 281 mark

Which of the following menu is used to create a ledger in Tally ?

  1. Gateway of Tally > Master > Accounting information > Ledger > Alter
  2. Gateway of Tally > Master > Accounting information > Ledger > Create
  3. Gateway of Tally > Master > Accounting information > Ledger > Display
  4. Gateway of Tally > Create > Master > Edit > Accounting information > Ledger
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) Gateway of Tally > Master > Accounting information > Ledger > Create

Q148.2023 Supp. 67/C/1 · QB-II 291 mark

A sequential code refers to code applied to some documents where :

  1. account heads are assigned to documents.
  2. special names are given to documents.
  3. documents are arranged in special sequence.
  4. numbers and letters are assigned in consecutive order.
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(D) numbers and letters are assigned in consecutive order.

Q149.2023 Supp. 67/C/1 · QB-II 30(a)1 mark

Entries required to make Trading account and Profit and Loss account are known as :

  1. Opening entries
  2. Adjustment entries
  3. Closing entries
  4. (a) and (b) both
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(C) Closing entries

Q150.2023 Supp. 67/C/1 · QB-II 30(b)1 mark

A cell reference that holds either row or column constant when the formula or function is copied to another location is known as :

  1. Range
  2. Absolute cell reference
  3. Relative cell reference
  4. Mixed cell reference
Reveal answerHide answer
Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

(B) Absolute cell reference

Q151.SQP 2025-26 · QB-II 27(a)1 mark

A ‘legend’ can be repositioned on the chart:

  1. On the right side only
  2. On the left side only
  3. On the bottom of x-axis
  4. Anywhere
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) Anywhere

Q152.SQP 2025-26 · QB-II 27(b)1 mark

The need for codification is for:

  1. the generation of mnemonic codes
  2. securing the accounting reports
  3. easy processing of data and keeping records
  4. the encryption of data
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(D) The encryption of data

Q153.SQP 2025-26 · QB-II 281 mark

To see all available shape styles of a chart, which of the following buttons is clicked?

  1. More
  2. Chart tool
  3. Picture
  4. Custom
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(A) More

Q154.SQP 2025-26 · QB-II 291 mark

Which of the following is not an advantage of computerised accounting system?

  1. Timely generation of reports in desired format
  2. Ensures effective control over the system
  3. Faster obsolescence of technology
  4. Confidentiality of data is maintained
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(C) Faster obsolescence of technology

Q155.SQP 2025-26 · QB-II 30(a)1 mark

A sequential code refers to code applied to some documents where:

  1. Account heads are assigned to documents
  2. Numbers and letters are assigned in consecutive order
  3. Special names are given to accounts
  4. Documents are arranged in special sequence
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) Numbers and letters are assigned in consecutive order

Q156.SQP 2025-26 · QB-II 30(b)1 mark

Name the Accounting information sub-system which is linked with other sub-systems for obtaining information about cost and expenses:

  1. Cash and Bank sub-system
  2. Costing sub-system
  3. Expense accounting sub-system
  4. Final accounts sub-system
Reveal answerHide answer
CBSE Sample Question Paper 2025-26 · Marking Scheme

(B) Costing sub-system

Q157.SQP 2026-27 · QB-II 271 mark

Identify the error which will be displayed on screen when the set of co-ordinates that a cell occupies on a worksheet is invalid.

  1. Correct a # NAME ? Error
  2. Correct # REF ! Error
  3. Correct a # N/A Error
  4. Correct a ##### Error
Reveal answerHide answer
CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) Correct # REF ! Error

Q158.SQP 2026-27 · QB-II 281 mark

How are ‘absolute cell reference’ and ‘mixed cell reference’ identified in Excel ?

  1. Using # sign
  2. Using ~ sign
  3. Using $ sign
  4. Using £ sign
Reveal answerHide answer
CBSE Sample Question Paper 2026-27 · Marking Scheme

(C) Using $ sign

Q159.SQP 2026-27 · QB-II 291 mark

What is used to build single formula with multiple results in Excel ?

  1. Derived value
  2. Vectors
  3. Round()
  4. Array
Reveal answerHide answer
CBSE Sample Question Paper 2026-27 · Marking Scheme

(D) Array

Q160.SQP 2026-27 · QB-II 301 mark

A sequential code refers to code applied to some documents where:

  1. Account heads are assigned to documents
  2. Numbers and letters are assigned in consecutive order
  3. Special names are given to accounts
  4. Documents are arranged in special sequence
Reveal answerHide answer
CBSE Sample Question Paper 2026-27 · Marking Scheme

(B) Numbers and letters are assigned in consecutive order

Q161.2022 Main 67/1/1 · QB-II 102 marks

Give the meaning of the terms 'Report' and 'Report Wizard'.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Report in Access is an object which is designed to print information from the database on to the screen or to a file or directly to the printer. (1)

Report Wizard is a tool that guides the designer through a series of dialogue boxes to create the most suitable Report. (1)

= 2

Q162.2022 Main 67/2/1 · QB-II 102 marks

State any two characteristics of Computerised Accounting System.

Reveal answerHide answer
Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Characteristics of Computerized Accounting System : ( Any two )

  1. Simple and integrated
    Computerized Accounting System is designed to automate and integrate all the business operations, such as sales, finance, purchase, inventory and manufacturing. CAS is integrated to provide accurate, up-to-date business information rapidly. The CAS may be integrated with enhanced MIS (Management Information System), Multi-lingual and Data Organisation capabilities to simplify all the business processes of the organization easily and cost-effectively.
  2. Transparency and Control
    CAS provides sufficient time to plan, increases data accessibility and enhances user satisfaction. With computerized accounting, the organization will have greater transparency for day-to-day business operations and access to the vital information.
  3. Accuracy and Speed
    CAS provides user-definable templates ( data entry screens or forms ) for fast, accurate data entry of the transactions. It also helps in generalising desired documents and reports.
  4. Scalability
    CAS enables in changing the volume of data processing in tune with the change in the size of the business. The software can be used for any size of the business and type of the organization.
  5. Reliability
    CAS makes sure that the generalised critical financial information is accurate, controlled and secured.

(1×2 = 2 marks)

Q163.2022 Main 67/3/1 · QB-II 102 marks

What is the meaning of the term ‘Data Audit’?

Reveal answerHide answer
Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Meaning of Data Audit

Audit feature of accounting software provides the user with administrator right in order to keep track of unauthorised access to the database. It audits for the correctness of entries. Once entries are audited with alterations, if any the software displays all entries along with the name of the auditor user and date and time of alteration.

2 Marks

Q164.2022 Main 67/4/1 · QB-II 102 marks

Give the meaning of the term ‘Password Security’.

Reveal answerHide answer
Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Password is widely accepted Security control to access the data. Only the authorized person can access the data. Any user who does not know the password can not retrieve information from the system. It ensures data integrity.

(2 marks)

Q165.2022 Main 67/5/1 · QB-II 102 marks

Explain the meaning of the term 'Normalisation' and 'Relational database'.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Normalisation is the process of breaking up of information into separate but related tables to avoid duplication of information. (1)

Relational database is the database created on the basis of relationships between different data tables so as to reconstruct the original information (1)

Or

Relational database is the database created on the basis of links established between different tables so as to reconstruct the original information

(= 2 marks)

Q166.2022 Supp. 67/6/1 · QB-II 102 marks

Give the meaning of ‘Group of Account’ as per Tally software.

Reveal answerHide answer
Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Group of Account is a method of organising the large number of ledger accounts into sequential arrangement for recording and summarization of accounting data.

2 marks

Q167.2026 Main 67/1/1 · QB-II 313 marks

State any three advantages and three limitations of Computerised Accounting System.

Reveal answerHide answer
Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Advantages of Computerised Accounting System: (ANY THREE)

  1. Timely generation of reports and information in desired format ……… ½
  2. Efficient record keeping ……… ½
  3. Ensures effective control over the system ……… ½
  4. Economy in processing of accounting data ……… ½
  5. Confidentiality of data is maintained ……… ½

Disadvantages of Computerised Accounting System : (ANY THREE)

  1. Faster obsolescence of technology necessitates investment in shorter period of time. ……… ½
  2. Data may be lost or corrupted due to power interruption. ……… ½
  3. Data are prone to hacking ……… ½
  4. Un-programmed and un-specified reports cannot be generated ……… ½

(3 marks)

Q168.2026 Main 67/1/1 · QB-II 323 marks

What are ‘Radar Charts’ ? What purpose do they serve ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Meaning: A radar chart is a graphical tool in which data series or related data points are plotted in a chart. The data is multivariate as three or more quantitative are plotted. Each data series in chart has a unique colour or pattern. ……… 2

Purpose: It is drawn for the comparison of highest and lowest value. ……… 1

(2 + 1 = 3 marks)

Q169.2026 Main 67/2/1 · QB-II 313 marks

What is meant by cell reference, absolute cell reference and relative cell reference ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Cell reference : It identifies the location of a cell or group of cells in the spread sheet also referred as a cell address. ……… 1

Absolute cell : reference means a cell which consists of the column letter and row number surrounded by $ sign e.g. $ D$6. It is used when we want a cell reference to stay fixed on specific cell. ……… 1

Relative cell reference : means that as a formula or function is copied and pasted to other cells, the cell reference in the formula or function change to reflect the new location ……… 1

(3 marks)

Q170.2026 Main 67/2/1 · QB-II 323 marks

Explain any three features of Computerized Accounting System.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

(Any three features from the following with suitable explanation)

  1. Simple & Integrated ……… ½
    The CAS may be integrated with enhanced MIS, multi-lingual and data organization capabilities to simplify all the business processes of the organization easily and cost-effectively. ……… ½
  2. Transparency and Control ……… ½
    CAS provides sufficient time to plan, increases data accessibility and enhances user satisfaction. It provides transparency for day-to-day business operations and access to vital information. ……… ½
  3. Accuracy and Speed ……… ½
    It provides user-definable templates for fast and accurate data entry of transactions. ……… ½
  4. Scalability ……… ½
    CAS enables change in the volume of data processing over time with the change in the size of the business. The software can be used for any size of business and type of organisation. ……… ½
  5. Reliability ……… ½
    CAS makes sure that the generalised critical financial information is accurate, controlled and secured ……… ½

(3 marks)

Q171.2026 Main 67/3/1 · QB-II 313 marks

Explain Sequential codes and Block codes with the help of example.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

Sequential Codes

  • Numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices etc. (½)
  • This process enables in either identification of missing codes (numbers) relating to a particular document or a relevant document can be traced on the basis of cod (½)
  • Example (½)
    CODESACCOUNTS
    CL001GCERT LTD
    CL002XYZ LTD
    CL003ARIL CORPORATION OF INDIA

Block Codes

  • In a block code, a range of numbers is partitioned into a desired number of sub ranges and each sub-range is allotted to a specific group. (½)
  • In most of the uses of block codes, numbers within a sub-range follow sequential coding scheme, i.e. numbers increase consecutively. (½)
  • Example (½)
    CODESDEALER-TYPE
    100-199Small Pumps
    200-299Medium Pumps
    300-399Pipes
    400-499Motors

(3 Marks)

Q172.2026 Main 67/3/1 · QB-II 323 marks

What are the three categories in which accounting entries can be classified while entering them in vouchers ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

The three types entries are:

  1. Opening Entry: (½)
    In order to begin the new financial year, balances of accounts of the previous year are brought forward. For this opening entry in journal is recorded. All those accounts which show the assets of a business are debited and all the accounts showing amounts owned by the business are credited. (½)
  2. Closing Entry: (½)
    The entries required to make the trading account and profit and loss account are known as closing entries because their effect is to close the books of account for the year concerned. (½)
  3. Adjusting Entry: (½)
    The adjusting entry is recorded to relate the figures to the trading period. The amounts which are outstanding or prepaid and the incomes which are accrued or received in advance are recorded with the help of this entry. (½)

(3 Marks)

Q173.2026 Main 67/4/1 · QB-II 313 marks

What are the three categories in which entries can be classified while making voucher entry ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

The three categories are :

  1. Opening entries : (½)
    In order to begin the new financial year, balances of accounts of previous year are brought forward. For this opening entry in the Journal is recorded. These are the balances which are transferred from the books of previous year to the books of present year. (½)
  2. Closing entry : (½)
    These are the entries which are required to complete trading account and profit/loss account. These are known as closing entries because their effect is to close the books of account for the year concerned. (½)
  3. Adjusting entries : (½)
    These entries are recorded to relate the figures to the trading period. These include prepaid and paid in advance expenses and received in advance and accrued incomes (½)

= 3 marks

Q174.2026 Main 67/4/1 · QB-II 323 marks

What is a ‘Radar Chart’ ? What purpose does it serve ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Meaning: (2)
A radar chart is a graphical tool in which data series or related data points are plotted in a chart. The data is multivariate as three or more quantitative are plotted. Each data series in chart has a unique colour or pattern.

Purpose: (1)
It is drawn for the comparison of highest and lowest value.

2 + 1 = 3 marks

Q175.2026 Main 67/5/1 · QB-II 313 marks

What is meant by codification ? Explain the meaning of mnemonic codes with the help of an example.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1
  • The term code means ‘a system of letter or figure with arbitrary meaning for brevity and for machine processing of information. Thus code is an identification mark. [1]
  • Mnemonic codes consists of alphabets or abbreviations as symbols to codify the piece of information. [1]
  • For example S J is used for sales journal in Accountancy. You need a reference to understand these codes. [1]

(1 + 1 + 1 = 3 Marks)

Q176.2026 Main 67/5/1 · QB-II 323 marks

State any three limitations of Computerised Accounting System.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Any three from the following:

  1. Faster obsolescence of technology necessitates investment in shorter period of time.
  2. Data may be lost or corrupted due to power interruptions.
  3. Data are prone to hacking.
  4. Un-programmed and un-specified reports cannot be generated.

(1 + 1 + 1 = 3 Marks)

Q177.2026 Supp. 67/7/1 · QB-II 313 marks

Explain ‘Chart of Accounts’ in accounting software.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Chart of Accounts is the Segmentation of liabilities and Assets of Balance Sheet and Income and Expenses of Profit and Loss Account. In the accounting software such chart of accounts is classified into two categories.
Such as ledger Accounts.
Account Groups :

Ledger Account : It represent the assorted summarised and balanced transactions of similar nature. All accounting transactions are linked to ledger account.

Account group : It is a convenient method of organising the ledger accounts into a tree structured hierarchical view for better understanding and interpretation.

(3 marks)

Q178.2026 Supp. 67/7/1 · QB-II 323 marks

Explain any three advantages of conditional formatting in Computerised Accounting System.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Three advantages are :

(i) Quick data analysis : Conditional formatting helps by highlighting unusual values and makes data visually appealing by using data bars, colour scales etc.

(ii) Improves accuracy : It reduces manual errors by applying colour or format change based on defined condition.

(ii) Helps in better decision making : Since the data is analysed clearly and in detail it helps in better decision making.

(3 marks)

Q179.2025 Main 67/1/1 · QB-II 313 marks

What is meant by 'Data', 'Information' and 'Transaction' ?

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(a) Data: Data item or data element is the smallest name unit of data in the information system. These are processed through an accounting software to generate different sets of information in the form of accounting reports such as journals, etc.

(b) Information: The information may be viewed as data at one level and when it is processed keeping in view the requirements of decision maker. It becomes the information at another level.

(c) Transaction: Transaction consists of four data elements such as name of account, accounting code, date of transaction and amount. The transaction is a record of inflow and outflow of resources.

(1 × 3 = 3 marks)

Q180.2025 Main 67/1/1 · QB-II 323 marks

List six features of an Accounting Software.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(Any six)

  1. It can perform basic accounting functions.
  2. It can manage stores.
  3. Do the job costing
  4. Manage Payroll
  5. Get many Management Information System reports which are useful for day to day functions.
  6. File tax returns like prepare Balance Sheet, Profit and loss Statement, VAT forms, TDS returns, Service tax returns, etc.
  7. Manage budget and scenarios.
  8. Calculate interest on pending amount.
  9. Manage data over different locations and synchronize it with m other features.

(½ × 6 = 3 marks)

Q181.2025 Main 67/2/1 · QB-II 313 marks

Name the error which occurs when Excel doesn't recognize a 'Text' formula. Give any two solutions to correct it.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

1. Name of the Error is:

Correct a #NAME? Error

This error occurs when Excel doesn't recognize text in a formula.

Solution: (Any two)

  1. Click the Microsoft office button, click Excel option and then click the Add-ins category.
  2. Select Excel Add-ins in the manage list box and then click Go.
  3. In the Add-ins available list, select the Euro Currency Tools check box and then click Ok.

(3 marks)

Q182.2025 Main 67/2/1 · QB-II 323 marks

State the advantages of 'Pivot Table' report.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Any three of the following:

  1. Querying large amounts of data in user-friendly ways. Sub totalling and aggregating numeric data, summarizing data by categories and subcategories and creating custom calculations and formulas.
  2. Expanding and collapsing level of data to focus on results and providing from details to the summary of data for areas of interest.
  3. Moving rows to column or columns to rows (or pivoting) to see different summaries of the source data.
  4. Filtering, sorting, grouping and conditionally formatting the most useful and the interesting subset of data to enable us to focus on the information that we want.
  5. Presenting concise, attractive and annotated online or printed reports.
  6. The use of a Pivot table report is to analyse related totals, when we have a long list of figures to sum and to compare several facts about each figure.

(1 x 3 = 3 marks)

Q183.2025 Main 67/4/1 · QB-II 313 marks

Write the advantages of using Graphs.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Following are the advantages of using graphs.

  1. Help to Explore: It helps to find relationship between variables. A graph may be quicker and easier way to establish possible relationships rather than paging through raw data.
  2. Help to present: When you want to present information in as little time as possible, Graphing plays a key role. Graphs provide the ideas and information in such a way that they catch the attention of users of information and they also appreciate the less time-consuming presentation which helps in taking quick decisions.
  3. Help to Convince: Different characteristics of data can be presented in such a way that it convinces the seeker. Graphs have the ability to take large amounts of information and make them into exhibitions that are easily used to persuade.

(1 x 3) = 3 marks

Q184.2025 Main 67/4/1 · QB-II 323 marks

Differentiate between tailored and specific softwares on any three basis.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

(any three)

BasisTailored SoftwaresSpecific Softwares
(i)Nature of businessIt is suitable for large/typical businesses.It is suitable for medium businesses.
(ii)Cost of installationCost of installation is high in case of tailored software.Cost of installation is lower than the tailored software.
(iii)Expected level of secrecyLevel of Secrecy is high.Level of Secrecy is less than the tailored software.
(iv)No. of users and their interfaceThey are for unlimited users.They are for specific users and interface is as per specification.
(v)AdaptabilityTheir adaptability is specific.Their adaptability is less than the tailored software.
(vi)Training requiredRequirement for training is high.Requirement for training is medium.

(1 x 3) = 3 marks

Q185.2025 Main 67/5/1 · QB-II 313 marks

Explain the ways in which accounting software provide data security, safety and confidentiality.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Password security controls the access to the data in which only the authorized person can access the data. Any user who does not know the password cannot retrieve information from the system.

Data audit feature of accounting software provides the user with administrator rights in order to keep track of unauthorized access to the database. It audits for the correctness of entries. Once entries are audited with correctness and necessary alterations, the software will display the name of the user for any change made afterwards.

Data Vault Software provides additional security for the inputted data and this feature, referred to as data vault, ensures that original information is preserved and is not tampered with. Data Vault password cannot be broken.

(1 x 3 = 3 marks)

Q186.2025 Main 67/5/1 · QB-II 323 marks

In an accounting software how many pre-defined account groups exist ? State their further division with reference to number and type.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

In accounting software, the pre-defined options are 28 in number, out of these, 15 are primary groups and 13 are sub-groups.

  • Primary group: It is a basic grouping of the set of sub-groups into major account heads according to their listing in the balance sheet and profit and loss account.
  • Sub-group: A sub-group is a set of accounts opened in the ledger for recording related transactions.

(1 + 1 + 1 = 3 marks)

Q187.2025 Main 67/6/1 · QB-II 313 marks

State the phases of 'Accounting Cycle'.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Phases of accounting cycle:

  • Business transactions are analysed and the transactions are recorded in the journal.
  • Journal entries are posted to ledger accounts.
  • A trial balance is prepared from balances of accounts.
  • Accounts are reviewed and the necessary adjustments made. Adjustments are posted in the ledger to prepare adjusted trial balance.
  • Adjusted trial balance is used to prepare the balance sheet and profit and loss account.
  • Financial statements are prepared from the finally adjusted ledger accounts and balancing the accounts.

(½ × 6 = 3 marks)

Q188.2025 Main 67/6/1 · QB-II 323 marks

Which built-in function can be used to compute monthly instalments of repayment of loan ? State its parameters also.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

PMT is the built in function which can be used to compute monthly instalments of repayment of loan. (½)

Following are the parameters: (2½)
Rate: Interest rate per period for the loan.
Nper: Total number of payments for the loan. Its unit (year) should match with the unit of the interest rate.
PV: Present Value : loan amount
FV: Future Value, which is taken as 0 is the balance at the end of the loan period.
Type: Whether payment is made at the beginning (value=1) or at the end (value=0) of the period.

(= 3 marks)

Q189.2025 Main 67/7/1 · QB-II 313 marks

With the help of an example explain sequential code and block code.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Sequential Code: Numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices etc. A sequential code can facilitate document searches. This process enables in either identification of missing codes relating to a particular document or a relevant document can be traced on the basis of codes.

Example:

CodeAccount
CL001SCERT Ltd

Block Code: In a block code a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group. In most of the users.
Block codes, numbers within a sub range follow a sequential coding scheme. Numbers increase consecutively. Example: A dealer code, for trading firms.

CodesDealers
100-199Small pumps

(1 mark for explanation + ½ mark for example) 1½ × 2 = 3 Marks

Q190.2025 Main 67/7/1 · QB-II 323 marks

Explain the following :

  1. Memo Voucher
  2. Post-dated Voucher
  3. User defined Voucher
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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

(i) Memo Voucher: Memo Voucher is a non-accounting voucher. It does not affect accounts of the user. These entries are stated or recorded in a separate register, but not as a part of ledger.

(ii) Post-dated Vouchers: Some accounting vouchers allow the user to enter the voucher for future transactions which are usually similar as the previous one.

(iii) User defined vouchers: In accounting software there are 23 pre-defined vouchers. It allows the user to define or create new accounting or inventory vouchers as per the requirement.

(1 × 3 = 3 Marks)

Q191.2025 Supp. 67/S/1 · QB-II 313 marks

Explain ‘cell reference’, ‘relative cell reference’ and ‘absolute cell reference’.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Cell Reference
A cell reference identifies the location of a cell or group of cells in the spreadsheet, also referred to as a cell address. This is used in formulas, functions, charts, other Excel commands, and also refers to a group or range of cells.

Relative Cell Reference
By default, cell reference is relative which means that as a formula or function is copied and pasted to other cells, the cell reference in the formula or function changes to reflect new location.

Absolute Cell Reference
Consists of the column letter and row number surrounded by dollar ($) sign. It is used when we want a cell reference to stay fixed on a specific cell. This means that when a formula or function is copied and pasted to other cells, the cell references in the formula or function do not change.

1x3 = 3 marks

Q192.2025 Supp. 67/S/1 · QB-II 323 marks

Explain the following :

  1. Contra voucher
  2. Post-dated voucher
  3. Receipt voucher
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Contra Voucher
This voucher is used for fund transfer between Cash and Bank. When money is either withdrawn from bank for office use or money excess from office is deposited to the Bank.
e.g. ₹10,000 Cash withdrawn from Union Bank of India for office use.
This will be posted with the help of Contra Voucher.

Post Dated Voucher
Some accounting softwares allow the user to enter the voucher for future transactions which are usually similar to memo voucher. These also do not affect account of the user.

Receipt Voucher
All inflow of money is recorded through Receipt Voucher. Such receipt may be toward any income such as receipt from debtors, loan/advance taken or refund of loan/advance etc.

1x3 = 3 marks

Q193.2024 Main 67/1/1 · QB-II 313 marks

Explain the terms ‘Doughnut’ and ‘Exploded Doughnut’ as types of charts.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(a) Doughnut Chart:
It displays data in rings where each ring represents a data series. It is like pie-chart. It shows the relationship of parts to a whole, but it can contain more than one. These charts are not easy to read.

(b) Exploded Doughnut:
Much like exploded pie chart, exploded doughnut display the contribution of each value to a total while emphasising individual values but they can contain more than one data series.

(1½ × 2 = 3 marks)

Q194.2024 Main 67/1/1 · QB-II 323 marks

Explain ‘Transparency and Control’ and ‘Accuracy and Speed’ as features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

(a) Transparency and Control:
CAS provides sufficient time to plan, increase data accessibility and enhances user satisfaction. With computerised accounting, the organisation will have greater transparency for day-to- day business operations and access to vital information. This will make feedback and decision making timely, hence, better control over the processes can be established. (1½)

(b) Accuracy and Speed:
CAS provides user definable templates (data entry screen or forms) for fast, accurate data entry of the transactions. It not only makes data entry fast but also provides checks to check its accuracy from time to time. At the same time, the facility of generating desired documents and reports is also there. (1½)

= 3 marks

Q195.2024 Main 67/2/1 · QB-II 313 marks

Explain the advantages of using a chart.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Following are the advantages of using a chart:

Helps to explore: [1]

  • Helps in exploring the relationships between various variables.
  • A quick in easier way to find possible relationships than paging through raw data.

Helps to present: [1]

  • Quick provision of information.
  • Provides summary of ideas.

Helps to convince: [1]

  • Can be used to present and explore different characteristics of data.
  • Large amount of information can be exhibited to persuade decision making.

= 3 marks

Q196.2024 Main 67/2/1 · QB-II 323 marks

Explain ‘Sequential Codes’ and ‘Block Codes’ with the help of an example.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Sequential codes:

Meaning: [1]
Numbers and /or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheque, invoices etc. This code can facilitate searches. This process enables in either identification of missing codes relating to a particular document, or a relevant document can be traced on the basis of code.

For example, [½]
A creditor Rohit Ltd can be given a code
CL 001-Rohit Ltd.
Similarly, for Ms. Raj
CL 002- Ms. Raj

Block codes:

Meaning: [1]
A range of numbers is partitioned into a desired number of sub ranges and each subrange is allotted to a specific group. In most of the uses of block codes, numbers within a subrange follow sequential coding scheme.

For example, [½]

CodesDealer type
100-199Small pump
200-299Medium pump
300-399Pipes

Or any other suitable example.

= 3 marks

Q197.2024 Main 67/3/1 · QB-II 313 marks

Explain ‘Transparency and Control’ and ‘Accuracy and Speed’ as features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Transparency and Control:

CAS provides sufficient time to plan, increase data accessibility and enhances user satisfaction with computerised accounting the organization will have greater transparency for day-to-day business operations and access to vital information.

This will make feedback and decision making timely hence better control over the processers can be established.

Accuracy and Speed:

CAS provides user definable templets (data entry screen or forms) for fast, accurate data entry of the transactions. It not only makes data entry fast but also provides checks to check its accuracy from time to time. At the same time the facility of generating desired documents and reports is also there.

1½ x 2 = 3 marks

Q198.2024 Main 67/3/1 · QB-II 323 marks

State the parameters of Excel’s PMT function. What is the use of this function ?

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

The parameters of the PMT function are as follows.

  1. Rate: Interest rate per period of loan.
  2. Nper: Total number of payments for the loan. Its units should match with the unit of interest rate.
  3. PV: Present value i.e. loan amount.
  4. FV: Future value, which is taken as zero, is the balance at the end of the loan period.
  5. Type: Whether payment is made at the beginning (value =1) or at the end (value = 0) of the period.

USE : This function calculates the periodic payment for an annuity assuming equal payment and a constant rate of interest.

3 marks

Q199.2024 Main 67/4/1 · QB-II 313 marks

How to use ‘Mark Common Formula Error’ in Excel ? Explain.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Following are the steps to mark common formula errors:

  1. Click the Microsoft Office button, click Excel options and then click the formulas category.
  2. In the error checking section, select the Enable background error checking check box.
  3. To change the colour of the triangle, that marks where an error occurs in the indicate errors using the colour box, select a new colour.
  4. Select a cell with triangle in top left corner of a cell.
  5. Next to the cell click error checking button that appears, and then click the option that we want. The commands are different for each type of error and the first entry describes the error. If we click Ignore Error, the error is marked to be ignored for each consecutive check.
  • Repeat the two previous steps

(½ × 6 = 3 Marks)

Q200.2024 Main 67/4/1 · QB-II 323 marks

Explain ‘Sequential Codes’ and ‘Block Codes’ with examples.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Sequential codes:
Numbers and /or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheque, invoices etc. This code can facilitate searches. This process enables in either identification of missing codes relating to a particular document or a relevant document can be traced on the basis of code.
For example
A creditor Rohit Ltd can be given a code CL001-Rohit Ltd.
Similarly for MS Raj

Block codes:
A range of numbers is partitioned into a desired number of sub ranges and each subrange is allotted to a specific group. In most of the uses of block codes, numbers within a subrange follow sequential coding scheme.
e.g.

CodesDealer type
100-199Small pump
200-299Medium pump
300-399Pipes

Or any other suitable example.

(1½ × 2 = 3 Marks)

Q201.2024 Main 67/5/1 · QB-II 313 marks

How can a#DIV/0! error be corrected ?

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

To correct #DIV/0! Error

Following steps can be followed:

  • Change the call reference to another cell
  • Enter a value other than zero in the cell used as a divisor
  • Enter the value #N/A into the cell referenced as the divisor, which changes the result of the formula to #N/A from # DIV/0! to denote that the divisor value is not available
  • Prevent the error value from displaying by using IF worksheet function

(3 marks)

Q202.2024 Main 67/5/1 · QB-II 323 marks

Explain various 'Data tables' used in 'Pivot Table.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

There are two types of data tables which are used in Pivot table:

(i) One-variable data table: The table in which formula used must refer to an input cell. The input cell is a cell used by Excel in which each input value from a data table is substituted.

(ii) Two-variable data table: Where two input two cells are used to generate a new table that table is known as two variable data table.

These are required for the analysis of information and to create a tabulation summary of data in which heading can subsequently moved to give different views of the data.

(3 marks)

Q203.2024 Supp. 67/S/1 · QB-II 313 marks

Explain the following two features of computerised accounting system :

  1. Accuracy and speed
  2. Scalability
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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

(a) Accuracy & Speed

CAS provides user definable templates (data entry screen or forms) for fast, accurate data entry of the transactions. It not only makes data entry fast but also provides checks to check its accuracy from time to time. At the same time, the facility of generating desired documents and reports is also there.

(b) Scalability

Today the size of the business is growing rapidly which results in increase in the volume of transactions. CAs enables in changing the volume of data processing in time with change in the size of the business. The software can be used for any size of the business and type of the organization.

(1½ x2 =3 Marks)

Q204.2024 Supp. 67/S/1 · QB-II 323 marks

Give the meaning of ‘Labels’ and ‘Formulas’ as used in spreadsheet.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Labels

A text or special character will be treated as labels for rows or columns or descriptive information. Labels cannot be treated mathematically, multiplied, subtracted etc. Labels include any cell contents beginning with A-Z.

Formula

It means a mathematical calculation on asset of cells. By convention, the left hand side of equal sign in a formula is normally considered then it is calculated and displayed in cell. A formula identifies the calculation needed to place the result in the cell it is contained within. The cell will display two components –the formula itself and resulting value. A spreadsheet without any formula is a collection of data which are arranged in rows and columns.

(1 ½ x2 =3 Marks)

Q205.2023 Main 67/1/1 · QB-II 313 marks

Which error occurs when Excel does not recognise ‘text’ in the formula ? State the steps to correct it.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

The name of the error is correct a # Name ? Error. Steps or solution to correct it :

  1. Click the Microsoft Office Button. Click Options and then click the Add – ins category.
  2. Select Excel Ad - ins in the Manage list box and click Go.
  3. In the Add – ins available list, select the Euro Currency tools check box and then click OK.

(3 marks)

Q206.2023 Main 67/1/1 · QB-II 323 marks

Explain the terms ‘Memo Voucher’, ‘Post-dated Voucher’ and ‘User-defined Voucher’.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Memo Voucher : It is a non-accounting voucher. It does not affect accounts of the user. These entries are stated/recorded in a separate register, but not as a part of ledger.

Post dated voucher : Some accounting softwares allow user to enter the voucher for future transactions which are usually similar as the previous once.

User defined voucher : In accounting software there are 23 pre-defined vouchers. It allows the user to define or create new accounting or inventory vouchers as per the requirement in the voucher entry, entry can be classified into three basic categories of opening entry, closing entry and adjustment entry.

(3 marks)

Q207.2023 Main 67/2/1 · QB-II 313 marks

Explain any three advantages of using charts.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

There are three advantages of using charts.

  1. Help to Explore : It is helpful in finding relationship between variables.
  2. Help in Presentation : It takes little time to present information. Here graphing and presentation plays a key role. Due to shortage of time, detailed reports are not preferred by analysers. Charts seem to be the answer to this change in the need of users of information.
  3. Help to Convince : The chart can help to present and explore different characteristics of data simultaneously. Charts have the ability to exhibit large amounts of information which is helpful in persuasion to take quick decision.

(1×3 = 3 Marks)

Q208.2023 Main 67/2/1 · QB-II 323 marks

Explain two main groups in which 'Group of Accounts' is classified in Accounting Software 'Tally'.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Two main groups in which 'Group of Accounts' is classified in Accounting Software 'Tally' are:-

  1. Primary Groups: It is basic grouping of the set of sub-groups into major account heads according to their listing in Balance Sheet and Profit and Loss account.
  2. Sub-Groups: It is a set of accounts opened in the ledger of recording of related transactions.

(½ mark for heading and 1 mark for explanation) 1½×2 = 3 Marks

Q209.2023 Main 67/3/1 · QB-II 313 marks

Differentiate between ‘Generic software’ and ‘Specific software’ on any three bases.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Difference between ‘Generic software’ and ‘Specific software’ (any three):

BasesGeneric softwareSpecific software
(i) Nature of businessSmall, conventional businessLarge and medium business
(ii) Cost of installationLowRelatively high
(iii) Expected level of secrecyLowRelatively high
(iv) No. of users and their interfaceLimitedAs per specification
(v) Linkage to other information systemRestrictedYes
(vi) AdaptabilityHighRelatively high
(vii) Training requirementsLowMedium

1 × 3 = 3 marks

Q210.2023 Main 67/3/1 · QB-II 323 marks

Explain the following two features of Computerised Accounting System :

  1. Simple and integrated
  2. Accuracy and speed
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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

(i) Simple and Integrated (1½)

  • Designed to automate and integrate all business operations.
  • Accuracy in information along with latest information.
  • It has multilingual and Data Organisation capabilities to simplify all the business processes of the organisation easily and cost effectively.

(ii) Accuracy and speed (1½)

  • Provides user-definable templates (Data entry screen or forms)
  • Which leads to accurate and fast data entry of the transactions.
  • It helps in generalising desired documents and reports.

= 3 marks

Q211.2023 Main 67/4/1 · QB-II 313 marks

What is meant by ‘Memo Voucher’, ‘Post-dated Voucher’ and ‘User-defined voucher’ ?

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Memo Voucher:
It is a non-accounting voucher. It does not affect accounts of the user. The entries contained in these vouchers are recorded/stated in a separate register, but not as a part of ledger.

Post-dated Voucher:
Some software allows the users to enter the voucher for future transactions which are usually similar as the previous once.

User defined Voucher :
In accounting software there are 23 pre-defined vouchers. It allows the user to define or create new accounting or inventory vouchers as per the requirement.

1x3 =3 marks

Q212.2023 Main 67/4/1 · QB-II 323 marks

Differentiate between ‘Generic Software’ and ‘Tailored Software’ on any three basis.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Any three of the following differences:

BasisGenericTailored
1Nature of businessSmall, Conventional businessLarge, typical business
2Cost of installation and MaintenanceLowHigh
3Expected level of secrecyLowRelatively high
4No. of users and their interfaceLimitedUnlimited
5Linkage to other information systemRestrictedYes
6AdaptabilityHighSpecific
7Training requirementsLowHigh

1x3 =3 marks

Q213.2023 Main 67/5/1 · QB-II 313 marks

Explain the following :

  1. Block codes
  2. Sequential codes
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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

(a) Block Codes
In a block codes, a range of number is partitioned into a desired numbers of sub-ranges and each sub-range is allotted to a specific group. In most of the cases of block codes, numbers within a sub-range follow sequential coding scheme. (1½)

(b) Sequential Codes
In sequential code, numbers and letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search. (1½)

(1½ + 1½ = 3 marks)

Q214.2023 Main 67/5/1 · QB-II 323 marks

Explain any three advantages of using graph/chart.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Three advantages of using Graph/Chart are

  1. Help to Explore: Many times we would like to see if there is a relationship between variables. It may be quicker and easier to create a chart immediately to see the possible relationship of variables to one another, rather than paging through raw data.
  2. Help to Present: When we want to provide information in as little time as possible, graphing play a buy role. When there is no longer time to sit and read the data it is better to provide graphs to convey and sum up ideas.
  3. Help to Convince: A graph can be used to present and explore different characteristics of data. Graphs have the ability to take longer amounts of information and make them into exhibitions that are easily used to persuade.

(1 × 3 = 3 marks)

Q215.2023 Supp. 67/C/1 · QB-II 313 marks

Explain the two main groups in which ‘Group of Accounts’ are classified in accounting software.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Two main groups in which ‘Group of Accounts’ is classified in Accounting Software ‘Tally’ are:-

(i) Primary Groups: It is basic grouping of the set of sub-groups into major account heads according to their listing in Balance Sheet and Profit and Loss account.

(ii) Sub-Groups: It is a set of accounts opened in the ledger of recording of related transactions.

½ mark for heading and 1 mark for explanation: 1½ x 2 = 3 marks

Q216.2023 Supp. 67/C/1 · QB-II 323 marks

Explain three features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Features of computerized accounting system: (Any three)

(i) Simple and integrated.
(ii) Transparency and control.
(iii) Accuracy and speed.
(iv) Scalability.
(v) Reliability

1 x 3 = 3 marks

The marking scheme lists only the feature names, without explanations.

Q217.2022 Main 67/1/1 · QB-II 11(a)3 marks

Explain the terms 'Basic Pay', 'House Rent Allowance' and 'Tax Deducted at Source' as used in preparation of payroll.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Basic Pay: It is the pay in the pay scale plus Grade Pay, but does not include Special Pay. (1)

House Rent Allowance: It is an amount paid to facilitate employee in acquiring on lease of residential accommodation. (1)

Tax Deducted at Source: It is a statutory deduction, which is deducted monthly towards Income Tax liability of an employee. It is essentially an appointment of yearly Income Tax liability over 12 months. (1)

= 3

Q218.2022 Main 67/1/1 · QB-II 11(b)3 marks

Explain 'Accounts Group' and 'Loan' (Liabilities).

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Accounts Group-Loans (Liabilities) consists of the following sub-groups:

  1. Bank Overdraft: In computerized Accounting System, Current Bank Account, bank Overdraft and Cash Credit is sub-group of Loan (Liabilities) because Bank Overdraft and Cash Credit operation on day- to- day basis should be placed under this group. (1)
  2. Secured Loans: Secured Loans are fully secured against security like (mortgage, hypothecation, pledge, etc) should be placed under this group. (1)
  3. Unsecured Loans: Such loans are without any security. Examples of such loans are: Loans from Outside parties, Directors, friends and relatives, etc. (1)

= 3

Q219.2022 Main 67/2/1 · QB-II 11(a)3 marks

List any three features of DBMS.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1
  1. Provides high-level of security (1)
  2. Permanent storage of data (1)
  3. Large database maintenance (1)

( Any other correct answer )

= 3 marks

Q220.2022 Main 67/2/1 · QB-II 11(b)3 marks

Define the following :

  1. Attribute
  2. Database Design
  3. Normalisation
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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1
  1. Attribute : In DBMS, data is organized in tables that has a number of rows and columns which are called attributes. The information in a row consists of a sequence of columns or attributes, such as transaction number, transaction date, etc, or it could be party’s name, party’s address, etc. (1)
  2. Database Design : Data base design is used to describe the structure of different parts of the overall database . (1)
  3. Normalization : Normalization is the process of breaking up of information into separate but related tables to avoid duplication of information. (1)

= 3 marks

Q221.2022 Main 67/3/1 · QB-II 11(a)3 marks

State the three elements used in ‘Payroll’ calculation.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Any three from the following:

  1. Pay in the scale plus grade pay which is known as Basic pay.
  2. Grade pay is decided by the designation of the employee and added to Basic pay.
  3. Dearness pay is that portion of the Dearness allowance which is merged to Basic pay.
  4. Dearness allowance is a compensation for erosion in purchasing power of wage earner due to price rise.
  5. House rent allowance is an amount paid to facilitate employee in acquiring on lease of residential accommodation.
  6. Transport allowance is an amount paid to facilitate commuting to the place of work.
  7. Any other earning may include any other allowance not included above but declared from time to time, such as Medical Allowance, Education Allowance, etc.
  8. Professional Tax is a statutory deduction according to the legislature of the State Government.
  9. Provident Fund is a statutory declaration, as part of social security.
  10. Tax deduction at source is a statutory deduction, which is deducted monthly towards Income Tax Liability of an employee.
  11. Recovery of loan Instalment (LOAN) denotes any amount signified by the employee for deduction on account of any loan taken up by him/her.
  12. Any other deduction may include any deduction not included above

1 × 3 = 3 Marks

Q222.2022 Main 67/3/1 · QB-II 11(b)3 marks

What is the use of ‘CUMIPMT’ function? Write and explain its syntax.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

This function returns the cumulative interest paid between two periods syntax.

CUMIPMT (rate, nper, pv, start_period, end_period, type)

Rate:Interest rate
nper:Total no. of interest period
pv:Present Value
start_period:Payment period no. 1
end_period:Last payment period
type:Timing of payment

3 Marks

Q223.2022 Main 67/4/1 · QB-II 11(a)3 marks

State any three components of payroll from sub-head ‘Deduction’.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Components of Payroll from sub-head ‘Deduction’ are : (any three)

  1. Professional Tax – (applicable in some states) [PT]
    It is a statutory deduction according to the legislature of the State Govt.
  2. Provident Fund –
    It is a Statutory deduction, as a part of social security. It is decided by the Govt. under the Provident Fund Act and is computed as percentage of basic pay + dearness pay, if applicable.
  3. Tax Deduction at Source – (TDS)
    It is a statutory deduction which is deducted monthly towards income tax liability of an employee. It is essentially an apportionment of yearly income tax liability over 12 months.
  4. Recovery of Loan Instalment (Loan)
    Any amount signified by the employee for deduction on account of any loan taken up by him/her.
  5. Any other deduction –
    It may include any other deduction not included above such as Recovery of “Advance against salary”, deduction on account of “Food Grain advance”, “Festival advance” etc.

(1×3 = 3 marks)

Q224.2022 Main 67/4/1 · QB-II 11(b)3 marks

Explain the three types of ‘Vouchers’.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

The three types of Vouchers are :

  1. Memo Voucher :
    Memo Voucher is a non accounting voucher. It does not affect accounts of the user. These entries are stated / recorded in a separate register, but not as a part of ledger.
  2. Post Dated Voucher :
    Some accounting software allows the user to enter the voucher for future transactions which are usually as the previous ones.
  3. User Defined Voucher :
    In accounting software, there are 23 predefined vouchers. It allows the user to define or create new accounting or inventory vouchers as per the requirement.

(1×3 = 3 marks)

Q225.2022 Main 67/5/1 · QB-II 11(a)3 marks

Explain any three components of the accounts group 'Current Liabilities'.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Components of the accounts group 'Current Liabilities': (Any three)

  1. Duties and Taxes
  2. Provisions
  3. Sundry Creditors
  4. Other Current Liabilities

(½ mark for naming the component + ½ Mark for its explanation = 1 × 3 = 3 Marks)

Q226.2022 Main 67/5/1 · QB-II 11(b)3 marks

Explain the meaning of the terms 'Query' and 'Join' as a tool of SQL.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Query is an Access object designed to extract data form one or more tables. (1½)

The process of matching rows in two tables based on their primary and foreign keys is called a Join. (1½)

(= 3 marks)

Q227.2022 Supp. 67/6/1 · QB-II 11(a)3 marks

Explain ‘Grade Pay’, ‘Dearness Pay’ and ‘Dearness Allowance’ as earnings components in Payroll.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Grade Pay- It is a pay to be added to the basic pay according to the designation of the employee and applicable pay band or scale of pay. (1)

Dearness Pay- It is that portion of dearness allowance which has been declared and deemed to have been merged with the basic pay. (1)

Dearness Allowance- It is a compensation for erosion in the purchasing power of wage earner due to price rise. It is granted by the government periodically as a percentage of basic pay and dearness pay if applicable. (1)

= 3 marks

Q228.2022 Supp. 67/6/1 · QB-II 11(b)3 marks

Explain the ‘Provident Fund’, ‘Professional Tax’ and ‘Any other deductions’ as deduction components of Payroll.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Provident Fund- It is a statutory deduction as a part of social security. It is decided by the government under the Provident Fund Act and is computed as a percentage of basic pay and dearness pay, if applicable. (1)

Professional Tax- It is a statutory deduction according to the legislature of the State government. (1)

Any other deductions- It includes recovery of ‘Advance against salary’, deductions on account of ‘Food Grain Advance’, Festival Advance etc. (1)

= 3 marks

Q229.SQP 2025-26 · QB-II 313 marks

What is encryption and how is it helpful in CAS?

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Encryption is a way to protect data by scrambling it into a code that can only be unlocked with a unique key. It's a vital component of cybersecurity and data privacy protection, and is used to keep sensitive information out of the hands of unauthorized users.

Encryption can be used to protect data in a number of ways, including:

  • At rest: Protecting data on computers or in the cloud
  • In transit: Protecting data while it's being sent between computers
  • While being processed: Protecting data while it's being processed
Q230.SQP 2025-26 · QB-II 323 marks

State any three limitations of Computerised Accounting System.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

1.System failure
The system may crash due to hardware failure, which can disrupt work. This is especially true if there is no backup.

2.High cost of training
New versions of hardware and software require training for staff, which can be costly.

3.Security risks
Computerized accounting systems store sensitive financial data, which can be vulnerable to cyber-attacks, data breaches, and theft.

Q231.SQP 2026-27 · QB-II 31(a)3 marks

Explain the following:

(I) Contra voucher
(II) Post-dated voucher
(III) Receipt voucher

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CBSE Sample Question Paper 2026-27 · Marking Scheme

(i) Contra Voucher
A Contra Voucher is used to record transactions involving cash and bank accounts only.
It is prepared when:

  • Cash is deposited into bank
  • Cash is withdrawn from bank
  • Transfer from one bank account to another

(ii) Post-dated Voucher
A Post-dated Voucher is a voucher prepared on the current date but entered in the books on a future date.
It is used when:

  • Payment or receipt is scheduled for a future date
  • Post-dated cheques are issued or received

The entry is recorded only on the specified future date.

(iii) Receipt Voucher
A Receipt Voucher is used to record cash or bank receipts.
It is prepared when:

  • Cash is received from customers
  • Cheque is received
  • Any other amount is received
Q232.SQP 2026-27 · QB-II 31(b)3 marks

State the advantages of ‘Pivot Table Report’.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Advantages of Pivot Table Report

  1. Summarizes large data quickly
  2. Easy data analysis (totals, averages, counts etc.)
  3. Flexible arrangement (rows and columns can be rearranged easily)
  4. Quick comparison of data
  5. Automatic calculations
  6. Time-saving and user-friendly
Q233.SQP 2026-27 · QB-II 323 marks

State any three limitations of Computerised Accounting System.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Three limitations of Computerised Accounting System:

  1. High Initial Cost
    Installation of hardware, software, and training of staff requires significant investment.
  2. Risk of Data Loss
    Data may be lost due to system failure, virus attack, hacking, or power breakdown if proper backup is not maintained.
  3. Dependence on Skilled Personnel
    Trained staff is required to operate and maintain the system. Lack of technical knowledge may lead to errors.
Q234.2026 Main 67/1/1 · QB-II 33(a)4 marks

Explain any two ways in which Computerized Accounting System safeguards the secrecy of business data.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Ways in which Computerised Accounting System safeguards the secrecy of business data: (ANY TWO)

(i) Password Security: (Explanation should include the following value points)

  • Only authorised person can access data ……… ½
  • Ensures integrity ……… ½
  • Uses binary decoding format ……… ½
  • Widely accepted ……… ½

(ii) Data Audit: (Explanation should include the following value points)

  • Provides administrator rights ……… ½
  • Avoids unauthorised access to data ……… ½
  • Audits for correction of data ……… ½
  • Displays all entries along with name of auditor, user and date and time of alteration to restrict alterations for window duration ……… ½

(iii) Data Vault: (Explanation should include the following value points)

  • Additional security for inputted information ……… ½
  • Ensures preservation of original information ……… ½
  • Its password cannot be broken ……… ½
  • Some software uses encryption of data. ……… ½

(4 marks)

Q235.2026 Main 67/1/1 · QB-II 33(b)4 marks

Name the table which is an interactive way to quickly summaries large amounts of data. State any three reasons why this table is designed.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

The name of the table is ‘Pivot Table’ ……… 1

Reasons why this table is designed (ANY THREE) :

  1. Querying large amounts of data in user friendly ways ……… 1
  2. Creating Custom Calculations and formulas. ……… 1
  3. Expanding and Collapsing levels of data to focus on results and providing from details to the summary of data for areas of interest. ……… 1
  4. Moving rows to columns and columns to rows to see different summaries of the source data. ……… 1
  5. Filtering, sorting, grouping and conditionally formatting the most useful and the interesting subset of data to enable focus on the wanted information. ……… 1
  6. Presenting concise attractive and annotated online or printed reports. ……… 1
  7. Report is used to analyse related totals when there is long list of figures to sum and compare several facts about each figure. ……… 1

(4 marks)

Q236.2026 Main 67/2/1 · QB-II 33(a)4 marks

What is Text Manipulation Function ? Explain its syntax.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

The function converts a numeric value to text in a specific number format ……… 1

Syntax. (value, format_____ text) ……… 1
where

Value: is a numeric value, a formula that evaluates to a numeric value or reference to cell containing a numeric value. ……… 1

Format – txt is a numeric format as a text string enclosed in quotation marks ……… 1

(= 4 marks)

Q237.2026 Main 67/2/1 · QB-II 33(b)4 marks

Write the steps to change format of selected chart element.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

The function that converts a numeric value to text in a specific number format ……… 1

Syntax ( value, format_text) ……… 1

Where value: is a numeric value a formula that evaluate to a numeric value or a reference to a cell containing a numeric value ……… 1

Format ____ text is a numeric format or text string enclosed in quotation Marks ……… 1

(= 4 marks)

The official marking scheme answer for 33(b) repeats the TEXT-function answer of 33(a) and does not give the steps to change the format of a selected chart element; it is reproduced as printed.

Q238.2026 Main 67/3/1 · QB-II 33(a)4 marks

List the necessary information to be filled by a user on company creation screen.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

In the company creation screen the following information is filled.

  1. Company name: In the name field the company’s name is filled which is displayed at all company selection lists and internal documents (½)
  2. Company mailing address (½)
  3. Company address (½)
  4. Income tax number allotted by the income tax department. (½)
  5. Accounting module: To maintain financial accounts only at maintain field, select accounts only. (½)
  6. Financial year: At financial year field: entered the beginning and closing date of the financial year (½)
  7. Saving the company profile: Finally, the software asks for the permission to save the company profile; after receiving confirmation the company profile is saved in data bank. (1)

(4 Marks)

Q239.2026 Main 67/3/1 · QB-II 33(b)4 marks

What is a Chart/Graph ? Explain its advantages.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

A chart or graph is a pictorial Presentation of data. (1)

Advantages:

Help to Explore: (½)
Many times we would like to see if there is a relationship between variables. Suppose, that we wanted to determine if there is a relationship between: a country's GNP and the infant mortality rate, between age and between genders. It may be quicker and easier to create a chart immediately to see the possible relationship of variables to one another, rather than paging through raw data. (½)

Help to Present: (½)
We want to provide information in as little time as possible. Graphing plays a key role. It seems that there is no longer any time to sit and read a newspaper in order to find out what is going on. However, newspapers, such as The Economics Times and India Today magazines (which were early users of charting techniques), seem to understand this phenomena and provide graphs to convey and sum up ideas that they are making in their articles. (½)

Help to Convince: (½)
The same way that a graph can be used to present and explore different characteristics of data. it can also be used to convince. Graphs have the ability to take large amounts of information and make them into exhibitions that are easily used to persuade. (½)

(4 Marks)

Q240.2026 Main 67/4/1 · QB-II 33(a)4 marks

What are the options available to select ‘Minimum’ and ‘Maximum’ type while changing conditional format ?

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Following options are available to select ‘Minimum’ and ‘Maximum’ type while changing conditional formatting.

  • Format lowest and highest values select lowest value and highest value. In this case we do not enter minimum and maximum values. (1)
  • Format a number, date or time value select number and then enter a minimum and maximum value. (1)
  • Format a percentage select percent and then enter a minimum and maximum value. Here the valid values are from (0) to (100). (1)
  • Format a percentile and then enter a minimum and maximum value valid percentiles are from (0) to (100). (½)
  • Format a formula result select formula and then enter a minimum and maximum value. (½)

= 4 marks

Q241.2026 Main 67/4/1 · QB-II 33(b)4 marks

The computer screen shows correct a #DIV/0! Error when a number is divided by zero in the calculations. Give the reason for showing this error (except the one given here). Also state the possible solutions to correct this error.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1

Reason :

(i) Using a cell reference to a blank cell or to a cell that contains zero as a divisor

Solutions →

  • Change the cell reference to another cell (1)
  • Enter a value other than zero in the cell used as a divisor (1)
  • Enter the value # N/A into the cell referenced as the divisor which changes the result of the formula to # N/A from # Div/O! to denote that the divisor value is not available. (1)
  • Prevent the error value from displaying by using the IF worksheet function. (1)

= 4 marks

Q242.2026 Main 67/5/1 · QB-II 33(a)4 marks

Give the meaning of the following :

  1. Cell reference
  2. Relative cell reference
  3. Absolute cell reference
  4. Mixed cell reference
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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1
  1. Cell reference: It identifies the location of a cell or group of cells in the spreadsheet also referred as a cell address. [1]
  2. Relative cell reference: By default cell reference is relative which means that as a formula or function is copied and pasted to other cells the cell reference in the formula or function change to reflect the new location. [1]
  3. Absolute cell reference: It consists of the column letter and row number surrounded by dollar ($) sign. It is used when the user wants a cell reference to stay fixed on specific cell. Which means even when the formula or function is copied and pasted to other cell, the cell reference will not change. [1]
  4. Mixed cell reference: It is a cell reference that holds either row or column constant when the formula or function is copied to another location. [1]

(4 Marks)

Q243.2026 Main 67/5/1 · QB-II 33(b)4 marks

Explain Array form of LOOKUP function.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Array form of lookup looks in the first row or column of an array for the specified value and then returns a value from the same position in the last row or column of the array. [1½]

The syntax is

LOOKUP (lookup _ value, array). [½]

(a) lookup _ value is the value that lookup searches in an array. It can be a number, text, a logical value or name.

  • If LOOKUP cannot find it, it uses the largest value in the array that is less than or equal to lookup _ value. [½]
  • If it is smaller than the smallest value in the first row or column. Then it returns the # N/A error value. [½]
  • If array covers an area that is wider than it is tall (more columns than rows) then it searches in first row. [½]
  • If array is square or taller than it is wide then it searches first column. [½]

(4 Marks)

Mark positions for the ½-mark points are read from the MS margin; their exact alignment is approximate.

Q244.2026 Supp. 67/7/1 · QB-II 33(a)4 marks

A business’ data needs to be guarded from its competitors. Explain any two features of Computerised Accounting System that help a business to maintain its secrecy.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Any of the two with suitable explanation :

(i) Password Security: Password is a widely accepted security control to access the data. Only the authorised person can access the data. Any user who does not know the password cannot retrieve information from the system. It ensures data integrity. It uses a binary encoding format of storage and offers access to the database.

(ii) Data Audit: Audit feature of accounting software provides the user with administrator rights in order to keep track of unauthorised access to the database. It audits the correctness of entries. Once entries are audited with alterations, if any, the software displays all entries along with the name of the auditor user and the date and time of alteration.

(iii) Data Vault: Software provides additional security for the inputted data and this feature is referred to as a data vault. Data vault ensures that original information is preserved and is not tampered with. The data vault password cannot be broken. Some software uses a data encryption method.

(2 + 2 = 4 marks)

Q245.2026 Supp. 67/7/1 · QB-II 33(b)4 marks

Internal margins are the distance between the text and the border of a chart element. Discuss various options available to increase or decrease these margins.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

Following are the options available to increase or decrease the amount of internal margins.

Left : To specify the distance between the left border of the selected chart element and the text, enter the margin number that we want in the Left box.

Right : To Specify the distance between the right border of the selected chart element and the text enter the margin number that we want the right box.

Top - To specify _ _ _ _ _

Bottom - To specify _ _ _ _

(4 marks)

Marking scheme gives Top and Bottom only as 'To specify _ _ _ _' (abbreviated, as printed).

Q246.2025 Main 67/1/1 · QB-II 33(a)4 marks

Each and every data from Notepad file can be saved as an Excel data file. This provides a lead that Excel worksheet consists of four types of data in cell. Name and state these data types.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

(1) Labels: (Text) are descriptive data such as names, months and usually include alphabetic characters. Excel aligns text to the left side of the cell.

(2) Values: (Numbers) are generally raw numbers or dates.

  • Whole Value: If the data is a whole value such as 34 or 5763, Excel aligns the data to the right side of the cell.
  • Value with a decimal: If the data is a decimal value, Excel aligns the data to the right side of the cell including the decimal point, with exception of a trailing 0. If we enter 3.75 then 3.75 displays; such as 3.70 will display as 3.7. We can change the display appearance column width and alignment of data.

(3) Formulas are instructions for Excel to perform calculations.

(4) Date: This format is dependent to country specific format.

(1 × 4 = 4 marks)

Q247.2025 Main 67/1/1 · QB-II 33(b)4 marks

What is meant by 'Data Validation' ? What is facilitated by 'Error Alert Tab' ?

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Data Validation is a feature to define restriction on type of data entered into a cell. It is invaluable because it is necessary that data must be accurate and consistent. ... 1

Error Alert Tab Enables:

(a) To display the error alert after invalid data is entered in the box.

(b) Enter message allows to type the desired message for user and title for reference purpose.

(c) In style drop-down menu select information, warning or stop as per the severity and accuracy requirement for data where

  1. Information displays a message but will prevent entry of invalid data.
  2. Warning: displays a warning message but will not prevent entry of invalid data.
  3. Stop: will prevent invalid entry of data.

(1 + (1 × 3) = 4 marks)

Q248.2025 Main 67/2/1 · QB-II 33(a)4 marks

What is data formatting ? What tools are used to format data ?

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Presenting a data in a form that it becomes easier to read and understand information is called Data formatting. (1)

Formatting tools are:

  1. Number formatting It includes adding percentages symbol (%) commas ('), decimal places (.) etc. data, time, specific values as well as some special formats to a spreadsheet.
  2. Special format category: Data (special numbers such as phone numbers, zip codes and social security numbers which require different format in a certain way) from the category option we select. Special and from corresponding drop-down box under the locale we select format special numbers. Appropriate to specific countries.
  3. Changing cell colours.
  4. Creating custom cell borders.

(1 + (1 x 3) = 4 marks)

Q249.2025 Main 67/2/1 · QB-II 33(b)4 marks

Explain 'ROUND' function of Excel.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

ROUND is the function to round off a number to specified number of digits the syntax of the function is ROUND (number, Num_digits) Where (1)

Number is the number to round (preferably fractional number) Num digits specifies the number of digits to round the Number. (1)

There may be some different situations for Num_digits as follows: (2)

  1. If Num_digits is greater than 0 (Zero) then number is rounded to the specified number of decimal places.
  2. If Num digits is 0, then number is rounded to the nearest digit.
  3. If Num digits is less than 0 than number is rounded to the left of the decimal point.

(1 + 1 + 2 = 4 marks)

Q250.2025 Main 67/4/1 · QB-II 33(a)4 marks

What are the different phases of accounting cycle which can be processed through the use of computers ?

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Different phases of accounting cycles which can be processed through computer are as Follows:

  1. Analysis of business transactions.
  2. Posting of Journal entries to ledger accounts.
  3. Preparation of trial balance from balances of accounts.
  4. Review of accounts and making of necessary adjustments.
  5. Posting of adjustments to ledger and preparation of adjusted trial balance.
  6. Adjusted trail balance in used to prepare Profit and Loss account and Balance Sheet.
  7. Financial statements are prepared from the finally adjusted ledger and balancing the accounts.

4 marks

Q251.2025 Main 67/4/1 · QB-II 33(b)4 marks

List eight uses of accounting softwares.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

Uses of accounting software. (Any 8)

  1. It can perform all basic accounting functions.
  2. Manage the stores
  3. Can perform the job of ‘Costing’
  4. Manage payroll
  5. Can get many Management Information System reports which are useful for day-to-day function.
  6. File Tax returns like prepare VAT Forms, TDS returns, etc.
  7. Maintain budgets
  8. Calculate interest on pending amounts.
  9. Manage data over different locations and synchronize it.

(½ x 8) = 4 marks

Q252.2025 Main 67/5/1 · QB-II 33(a)4 marks

State the steps to prepare a chart.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

Following are the steps to prepare a chart:

  1. Enter data in a worksheet with proper column and row titles.
  2. Create a basic chart using the pattern from the panel available on top of worksheet in chart groups' options.
  3. Change layout or style of chart
    • Apply predefined chart layout.
    • Apply pre-defined chart style.
    • Change the layout of chart element.
    • Change format of chart.
  4. Add or remove titles or data labels.
    • Add (Remove) a chart title.
    • Add (Remove) axis title.
    • Link a title to worksheet cell.
    • Add-remove data labels.
  5. Show or hide a legend.
  6. Display or hide chart axes or gridlines.
    • Display (hide) primary axes
    • Display (hide) secondary axes
    • Display (hide) gridlines
  7. Move (resize) a chart.
  8. Save a chart.

(½ X 8 = 4 marks)

Q253.2025 Main 67/5/1 · QB-II 33(b)4 marks

What is meant by internal margin while using MS Excel ? State the options available.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

The internal margin is the distance between the text and the outer border of the element and that this distance can be adjusted using the following options:

  • Left: To specify the distance between the left border of the selected chart element and the text, enter the desired margin number in the left box.
  • Right: Similar can be done for right side.
  • For Top and Bottom, enter the desired numbers in the respective boxes and the desired distance can be achieved.

(1 + 1½ + 1½ = 4 marks)

Q254.2025 Main 67/6/1 · QB-II 33(a)4 marks

Develop a code for Nisha, Roll No. 23 who took admission in Section A, Class XI in the year 2024 in School No. 10 run by the 'Education For All Trust'. Section A is a science stream section and its code is 1.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

The code for Nisha will be 10 24 1 11 1 23.

It will be developed as.

1024111123
School No.Year of admissionStreamClassSectionRoll No.

(4 marks)

Q255.2025 Main 67/6/1 · QB-II 33(b)4 marks

Explain number formatting.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

Following are the number formatting tools:

Number formatting: Number formatting includes adding percentage symbol(%) commas(,), decimal(.), decimal places and currency sign($) etc. date time scientific values and as well as some special formats to a spreadsheet. The type of number format can be determined once the date is entered into the cell.

Here are some examples.
Currency
Percentage
Dates (with explanation)

(4 marks)

Q256.2025 Main 67/7/1 · QB-II 33(a)4 marks

Explain ‘Generic’ and ‘Customised’ accounting software.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

The explanation should include:

Generic accounting software:

  • Suitable for small and conventional businesses where volume of accounting transaction is less.
  • Cost of installation is generally low and users are limited in number.
  • Secrecy is low and it is prone to data frauds.
  • Offers little scope for linking to other information systems.

Customised Accounting Software:

  • It meets the special requirement of the user, suitable for large and medium scale businesses.
  • Can be linked to other information systems.
  • Cost of installation and maintenance is relatively high.
  • It includes modification and addition to the contents of software, provision for specified number of users and their authentication.

(2 × 2 = 4 Marks)

Q257.2025 Main 67/7/1 · QB-II 33(b)4 marks

‘A business data needs to be guarded from its competitors.’ Explain which features of Computerised Accounting System help a business to maintain its secrecy.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Features of CAS to help business maintain secrecy:

  1. Password Security
  2. Data audit
  3. Data Vault

(With appropriate explanation)

(1½ + 1½ + 1 = 4 Marks)

Q258.2025 Supp. 67/S/1 · QB-II 33(a)4 marks

Explain ‘customised’ and ‘tailored’ accounting softwares.

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Customised Softwares

  • These softwares are prepared to meet special requirements of the user.
  • They are suitable for large and medium scale businesses.
  • They can be linked to other information systems.
  • The cost of installation and maintenance is relatively high.

Tailored Softwares

  • It is suitable for large organizations which have multiusers and geographically scattered locations.
  • It requires specialised training to use.
  • These softwares form an important part of MIS of the organisation.
  • The secrecy and authenticity tests of these softwares are robust

2x2 = 4 marks

Q259.2025 Supp. 67/S/1 · QB-II 33(b)4 marks

What is meant by ‘data validation’ ? What is facilitated by ‘Error Alert tab’ ?

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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Data validation is a feature to define restrictions on type of data entered into a cell. User can configure data validation rules for cells so that it will not allow users to enter invalid data. [1]

The Error Alert Tab enables:
(a) To display the error alert after invalid data is entered in the box.
(b) Enter message allows to type the desired message for user and title for reference purpose.
(c) In style drop-down menu select Information, Warning, or Stop as per the severity and accuracy requirement for data, where:
(i) Information: Displays a message but will not prevent entry of invalid data.
(ii) Warning: Displays a warning message but will not prevent entry of invalid data.
(iii) Stop: Will prevent invalid entry of data. [3]

= 4 marks

Q260.2024 Main 67/1/1 · QB-II 33(a)4 marks

State any four advantages of Computerised Accounting System.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Advantages of CAS (any four):

  1. Timely generation of reports and information in desired format
  2. Efficient record keeping
  3. Ensures effective control over the system
  4. Economy in the processing of accounting data
  5. Confidentiality of data is maintained
  6. Transparency in recording of data helps in avoiding frauds
  7. Better control can be established
  8. Accuracy in data makes the reports reliable

(1 × 4 = 4 marks)

Q261.2024 Main 67/1/1 · QB-II 33(b)4 marks

Explain ‘Password security’ and ‘Data audit’ as security features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

Password Security:
Password security is a mechanism, which enables a user to access a system including data. The system facilitates defining the user rights according to organisation policy. Consequently, a person in the organisation may be given access to a particular set of data while he may be denied access to another set of data.
Password is the key (Code) to allow the access to the system (2)

Data Audit:
This feature enables one to know as to who and what changes have been made in the original data, thereby helping and fixing the responsibility of the person who has manipulated the data and also answers data integrity. Basically, this feature is similar to Audit Trail. (2)

= 4 marks

Q262.2024 Main 67/2/1 · QB-II 33(a)4 marks

What is meant by Accounting Cycle ? List its basic phases.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Meaning: The accounting cycle means the process involved in identifying, measuring, and communicating the accounting information. [1]

The basic phases of this cycle are as follows: [3]

  • Business transactions are analysed.
  • The transactions are recorded in Journal.
  • Journal entries are posted to ledger accounts.
  • A trial balance is prepared from the balances of accounts.
  • Accounts are reviewed and necessary adjustments are made.
  • Adjustments are posted in the ledger to prepare adjusted trial balance.
  • Adjusted Trial balance is used to prepare the balance sheet and profit and loss account.
  • Financial statements are prepared from the finally adjusted ledger and balancing accounts.

= 4 marks

Q263.2024 Main 67/2/1 · QB-II 33(b)4 marks

What is ‘data formatting’ ? What tools are used to format a given data ?

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Data formatting refers to setting up spreadsheet in such a way that the user of the information can read and understand the information easily and quickly. [1]

Several tools and shortcuts are available to format spreadsheet effectively.

Following are the tools to format data: [½ × 6 = 3]

  1. Number formatting:
    • It includes adding %, decimal places, currency signs, date, time, scientific values etc.
    • Various number formats are available.
  2. Special format category- for which one has to select ‘Special’ from category option.
  3. Changing cell colours
  4. Adding text formatting
  5. Changing font size
  6. Changing cell borders

= 4 marks

The MS numbers this list 1, 1, 2, 3, 4, 5; renumbered sequentially here.

Q264.2024 Main 67/3/1 · QB-II 33(a)4 marks

Explain ‘Password Security’ and ‘Data Audit’ as security features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Password security

Password security is a mechanism, which enables a user to access a system including data. The system facilitates defining the user rights according to organization policy consequently a person in the organization may be given access to a particular set of a data while he may be denied access to another set of data.

Password is the key (code) to allow the access to the system.

Data Audit

This feature enables one to know as to who and what changes have been made in the original data there by helping and fixing the responsibility of the person who has manipulated the data and also ensures data integrity. Basically, this feature is similar to audit trail

2x2 = 4 marks

Q265.2024 Main 67/3/1 · QB-II 33(b)4 marks

What is Data formatting ? What tools are used to format a given data ?

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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1

Data formatting

It refers to setting up spread sheet in such a way that the user of information can read and understand the information easily and quickly. Several tools and shortcuts are available to format spread sheet effectively. (1)

Following are the tools to format data.

  1. Number formatting
    • It includes adding %, decimal places, currency signs, date, time, scientific values etc.
    • Various number formats are available.
  2. Special format category– for which one has to select ‘special’ form category option.
  3. Changing cell colours.
  4. Adding text formatting.
  5. Changing font size.
  6. Changing cell borders.

(1/2 x 6 = 3)

= 4 marks

Q266.2024 Main 67/4/1 · QB-II 33(a)4 marks

State why do you need to change a chart ? How can it be changed ? Why is it said that changing a column chart to a pie chart is easy ? Give reasons.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

A chart can be changed to another type (1)

  1. To give it a different look
  2. To serve a different purpose

It is easy to change from column chart or bar chart to pie chart because (3)

  1. Only one data series is used to plot.
  2. the plotted data values are positive.
  3. the data values are not equal to zero.

(= 4 Marks)

Q267.2024 Main 67/4/1 · QB-II 33(b)4 marks

State the advantages of computerized accounting system.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1

Following are the advantages of CAS (Any four):

  1. Timely generation of reports and information in desired format.
  2. Efficient record keeping
  3. Ensures effective control over the system
  4. Economy in processing the accounting data.
  5. Confidentiality of data is maintained
  6. Transparency in recording of data, helps in avoiding frauds.

(1 × 4 = 4 marks)

Q268.2024 Main 67/5/1 · QB-II 33(a)4 marks

List the points of nomenclature used in Excel for charts/graphs.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

The nomenclature used in Excel for charts is as follows:

  1. The chart area
  2. The plot area covering the plot of values in the selected type of chart
  3. The data points
  4. The Horizontal (Base Values e.g. Category) and Vertical (Derived Values) Axes.
  5. The legend to specify distinguishing criteria in case of multiple lines pies, bars etc.
  6. Chart and Axes Titles
  7. Data labels

(4 Marks)

Q269.2024 Main 67/5/1 · QB-II 33(b)4 marks

Explain the steps to define 'Print area' using Dialog box.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1

By default, Excel prints all data on the current worksheet but for specific formatted print, we have to define print area from page set up dialog box or print area command from page layout option of ribbon following are the steps to define Print area using Dialog box option:

  1. Select the page layout command tab on the ribbon
  2. In the page set up group click page set up. The page set up dialog box appears
  3. Select the sheet tab
  4. In the print area text box type the range of cells you want to print or ( to select the area
    • Click to collapse Dialog
    • Select the desired range of cells
    • Click restore the Dialog.
  5. Click Ok and the print area is defined

(4 marks)

Q270.2024 Supp. 67/S/1 · QB-II 33(a)4 marks

State steps to be taken in preparation of a chart.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Following are the steps taken to prepare a chart:

  1. Enter data in a worksheet with proper columns and rows titles.
  2. From chart group option, create a basic chart.
  3. Change layout or style of chart by applying predefined chart lay out and style the layout and format of chart elements can be changed.
  4. Add or remove titles or data tables.
  5. Show or hide a legend.
  6. Display or hide chart axes or gridlines.
  7. Move (resize) a chart.
  8. Save the chart.

(½x8 =4 Marks)

Q271.2024 Supp. 67/S/1 · QB-II 33(b)4 marks

What are the uses of ‘Error Alert tab’ ?

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Error Alert Tab enables:

  1. To display the error alert after invalid data is entered in the box.
  2. Enter message allow to type the desired message for user and title for reference purpose.
  3. In style drop down menu, select information warning or stop as per severity and accuracy requirement for data where-
    1. Information: display a message but will prevent entry of invalid data.
    2. Warning: display a warning message but will not prevent entry of invalid data.
    3. Stop: will prevent invalid entry of data.

(1+1+2 =4 Marks)

Q272.2023 Main 67/1/1 · QB-II 33(a)4 marks

What is ‘data formatting’ ? What tools are used to format a given data ? Explain.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

The use of following formatting tools to make the reading spreadsheet understandable is known as Data Formatting. [1]

Following tools with appropriate explanation :

  • Number formatting
  • Currency
  • Percentage
  • Dates

(1 + 1 + 1 + ½ + ½ = 4 marks)

Q273.2023 Main 67/1/1 · QB-II 33(b)4 marks

List eight uses of accounting software.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Following are the eight uses of accounting software: (Any eight)

  1. Do all the basic accounting functions
  2. Manage stores
  3. Do the job costing
  4. Manage payroll
  5. Get MIS reports
  6. Fill tax returns, prepare balance sheet and profit and loss statement, VAT form, TDS returns etc.
  7. Manage, maintain budget scenario.
  8. Manage data over different locations and synchronize it.
  9. Calculate interest on pending amount.

(½ × 8 = 4 marks)

Q274.2023 Main 67/2/1 · QB-II 33(a)4 marks

What is meant by 'conditional formatting' ? State its any three advantages.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

A conditional format changes the appearance of a cell range based on a condition. If the condition is true, the cell range is formatted based on that condition. If the condition is false, the cell range is not formatted based on that condition. [1]

The advantages of conditional formatting (any three). It is helpful : [3]

  1. To find out exceptions for the given period.
  2. To find Trend.
  3. To fix the responsibility for the results.
  4. To find age distribution of employees.
  5. To find peak performance.
  6. To highlight unusual values and visualise data by using data bar, colour scale, icons, etc.

(1+3 = 4 Marks)

Q275.2023 Main 67/2/1 · QB-II 33(b)4 marks

State any four salient features of 'Computerised Accounting System'. (CAS).

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

Any four

  1. CAS may be designed to automate and integrate all the business operations which inturn helps to simplify all the business processes easily.
  2. It provides sufficient time to plan, increases data accessibility and enhances user satisfaction which will lead to greater transparency and control over business operations.
  3. It provides user-definable templates for speedy and accurate data entry of the transactions.
  4. It enables business to be able to change the volume of data processing in tune with the change in the size of operation hence facilitates scalability.
  5. It makes sure that the generalised critical financial information is accurate, controlled and secure which makes it reliable.

(1×4 = 4 Marks)

Q276.2023 Main 67/3/1 · QB-II 33(a)4 marks

State the steps to be taken in preparation of a chart.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Following steps are taken to prepare a chart :

  1. Enter data in worksheet with proper column and row titles.
  2. Create a basic chart using the pattern from the panel available on top of the worksheet in chart group option.
  3. Change the layout or style of chart.
    • Apply pre-defined chart layout.
    • Apply pre-defined style.
    • Change layout of chart elements
    • Change the format of the elements.
  4. Add or remove titles or data labels.
    • Add (remove) axis titles.
    • Link a title to a worksheet cell.
    • Add remove data labels.
  5. Show or hide a legend.
  6. Display or hide chart axis or gridlines.
    • Display (Hide) primary axes
    • Display (Hide) secondary axes
    • Display (Hide) gridlines.
  7. More or resize a chart.
  8. Save the chart.

½ mark for each step = ½ × 8 = 4 marks

Q277.2023 Main 67/3/1 · QB-II 33(b)4 marks

What is meant by Accounting Cycle ? State its basic phases.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

Accounting cycle means the processes involved in identifying, measuring and communicating the accounting information. (1)

The phases of this cycle are as follows: (3)

  • Business transactions are analysed.
  • The transactions are recorded in journal.
  • Journal entries are posted to ledger accounts.
  • A Trial Balance is prepared from balances of accounts.
  • Accounts are reviewed and necessary adjustments are made.
  • Adjustments are posted in the ledger to prepare adjusted trial balance.
  • Adjusted trial balance is used to prepare the balance sheet and profit and loss account.
  • Financial statements are prepared from the finally adjusted ledger and balancing the accounts.

= 4 marks

Q278.2023 Main 67/4/1 · QB-II 33(a)4 marks

How can the format of a selected chart element be changed ? Explain.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

To change the format of a selected chart element following steps to be taken:

  1. Click anywhere in the chart. This will display the chart tools adding the Design, Layout, and Format tabs.
  2. On the Format tab, in the current selection group click the arrow next to the Chart Elements box, and then select the chart element which requires to format.
  3. On the Format tab, in the current selection group click the Format Selection.
  4. On the Format <Chart Element> dialog box, click a category, and then select the formatting s. You can change
    • Shape style
    • Shape outline
    • Text fill
    • Text outline, etc.

1x4 =4 marks

Q279.2023 Main 67/4/1 · QB-II 33(b)4 marks

List any eight uses of accounting software.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

Use of accounting software (Any Eight)

  1. Do all basic accounting functions
  2. Manage stores
  3. Does job costing
  4. Manage payroll
  5. Get many MIS reports which are useful for day to day functions.
  6. Fill tax returns; prepare balance sheet, profit and loss statement etc.
  7. Maintain budgets
  8. Calculate interest on pending amount
  9. Manage data over different locations and synchronize it.

½x8 =4 marks

Q280.2023 Main 67/5/1 · QB-II 33(a)4 marks

Define Accounting cycle and state the phases involved in an Accounting cycle.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Accounting Cycle
Accounting Cycle means the process involved in identifying, measuring and communicating the information. (½)

The basic phases of the cycle are as follows: (3½)

  • Business transactions are analysed
  • The transactions are recorded in the journal
  • Journal entries are posted to the ledger accounts
  • Accounts are reviewed and the necessary adjustments made.
  • Adjustments are posted in the ledger to prepare adjusted trial balance.
  • Adjusted trial balance is used to prepare the Balance Sheet and Profit and Loss Account
  • Financial statements are prepared from the finally adjusted ledger and balancing the accounts

(½ + 3½ = 4 marks)

Q281.2023 Main 67/5/1 · QB-II 33(b)4 marks

Explain the meaning of ‘Password Security’ and ‘Data Audit’ as security features of Computerised Accounting System.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

Password Security
Password is widely accepted security control to access the data. Only the authorised person can access the data. It ensures data integrity. (2)

Data Audit
Audit feature of accounting software provides the user with administrator right in order to keep track of unauthorised access to the database. It’s an audit for the correctness of the entries. (2)

(2 + 2 = 4 marks)

Q282.2023 Supp. 67/C/1 · QB-II 33(a)4 marks

What are the reasons if ‘Correct # N/A Error’ appears on the computer screen while working on a spreadsheet ? How can it be corrected ?

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

This error occurs when a value is not available to a function or formula.

(i) Missing data and #N/A or NAO has been entered in its place.

(ii) Giving an inappropriate value for lookup function as an argument, such function may be HLOOKUP, VLOOKUP, MATCH or LOOKUP.

(iii) Using these lookup functions to locate the value in an unsorted table.

(iv) Using an argument in the array formula that is not in the same number of rows or columns as the range that contains the array formula.

1 x 4 = 4 marks

Q283.2023 Supp. 67/C/1 · QB-II 33(b)4 marks

State the steps to be taken in preparation of a chart.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

Following steps are taken to prepare a chart:

(i) Enter data in worksheet with proper column and row titles.

(ii) Create a basic chart using the pattern from the panel available on top of the worksheet in chart group option.

(iii) Change the layout or style of chart.

  • Apply pre-defined chart layout.
  • Apply pre-defined style.
  • Change layout of chart elements
  • Change the format of the elements.

(iv) Add or remove titles or data labels.

  • Add (remove) axis titles.
  • Link a title to a worksheet cell.
  • Add remove data labels.

(v) Show or hide a legend.

(vi) Display or hide chart axis or gridlines.

  • Display (Hide) primary axes
  • Display (Hide) secondary axes
  • Display (Hide) gridlines.

(vii) More or resize a chart.

(viii) Save the chart.

½ x 8 = 4 marks

Q284.SQP 2025-26 · QB-II 33(a)4 marks

State steps to be taken in preparation of a chart.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Following are the steps prepare a chart:

Step – 1: Enter data in a worksheet with proper column and row titles.

Step – 2: Create a basic chart using the pattern from the panel available on top of worksheet in Chart groups’ option.

Step – 3: Change the layout or style of chart. Apply a predefined chart layout. Apply a predefined chart style. Change the layout of chart elements. Change the format of chart elements.

Step – 4: Add or remove titles or data labels. Add (Remove) a chart title. Add (Remove) axis titles. Link a title to a worksheet cell. Add (Remove) data labels.

Step – 5: Show or hide a legend.

Step – 6: Display or hide chart axes or gridlines. Display (hide) primary axes Display (hide) secondary axes Display (hide) gridlines

Step – 7: Move (resize) a chart

Step – 8: Save a chart

Q285.SQP 2025-26 · QB-II 33(b)4 marks

What are the uses of ‘Error Alert tab’?

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CBSE Sample Question Paper 2025-26 · Marking Scheme

This tab enables :

(a) To display the error alert after invalid data is entered in the box.

(b) Enter message allows to type the desired message for user and title for reference purpose.

(c) In Style drop-down menu select Information, Warning or Stop as per the severity and accuracy requirement for data where.

  1. Information: displays a message but will prevent entry of invalid data.
  2. Warning: displays a warning message but will not prevent entry of invalid data.
  3. Stop: will prevent invalid entry of data.
Q286.SQP 2026-27 · QB-II 33(a)4 marks

What is meant by ‘data validation’? What is facilitated by ‘Error Alert tab’?

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CBSE Sample Question Paper 2026-27 · Marking Scheme

Data Validation is a feature in MS Excel that controls the type of data entered into a cell.

It ensures that users enter correct and specific data according to predefined rules.
For example:

  • Allowing only whole numbers between 1 and 100
  • Allowing only dates within a certain range
  • Creating a drop-down list of allowed values

It helps in maintaining accuracy and consistency of data.

The Error Alert tab in Data Validation allows you to:

  • Display an error message when invalid data is entered
  • Prevent incorrect data entry
  • Choose the type of alert:
    • Stop (Prevents entry completely)
    • Warning (Allows entry after warning)
    • Information (Shows message but allows entry)

It helps in controlling wrong inputs effectively.

In the marking scheme the Error Alert tab part is printed after an “OR” and labelled 33 B, but it answers the second half of this question (33 A); combined here by content.

Q287.SQP 2026-27 · QB-II 33(b)4 marks

What is meant by internal margin while using MS Excel? State the options available.

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Answer not available in marking scheme

Q288.2022 Main 67/1/1 · QB-II 125 marks

State the steps in the installation of 'Computerised Accounting System'.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/1/1

Steps in the installation of 'Computerised Accounting System':

  1. Insert CD in the system;
  2. After inserting CD, select the option in the following steps:
    (a) Select any (C: or E: or D:) from My Computer icon on the Desktop, Double click on install.exe
    Or
    (b) Select start>run> type the file name E:\install.exe.
  3. After the above process the default directories of application, data and Configuration opens in a window. In case, the user wants to change the default directories then it can be changed by providing the desired drive and file name/directory name.
    For example: D:\software name, instead of C:\accounting software (default name)
  4. Click on install and installation process begins, accounting software displays the Message of successful installation, then the CD can be removed.

(5)

Q289.2022 Main 67/2/1 · QB-II 125 marks

Explain the steps involved in installation of Computerised Accounting System.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/2/1

Steps involved in installation of computerized accounting systems :

  1. Insert CD in the system
  2. After inserting CD, select the option in following steps :
    (a) Select any (C : or E :, D :) from My Computer icon on the Desktop. Double click on install.exe
    OR
    (b) Select Start > Run > Type the file name E:\install.exe
  3. After the above process the default directories of application, data and Configuration opens in a window. In case, the user wants to change the default directories then it can be changed by providing the desired drive and file name / directory name for example: D:\software name, instead of C : \accounting software ( default name )
  4. Click on Install and installation process begins, accounting software displays the message of successful installation, then this CD can be removed.

(5 marks)

Q290.2022 Main 67/3/1 · QB-II 125 marks

State the steps to construct ‘Bank Reconciliation statement’ in Tally.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/3/1

Following are the steps to construct BRS in Tally:

  • Bring up the monthly summary of any bank book
  • Bring your cursor to the first month, Enter. This brings up the vouchers for the month of April. Since this is a Bank Account, and additional button F5; Reconcile will be visible on the right press F5
  • The display now becomes an Edit screen in ‘Reconciliation’ mode. The primary components are: A column for the ‘Bankers Date’
  • The ‘Reconciliation’ at the bottom of the screen
  • Balance as per company books
  • Amount not reflected in the bank
  • Balance as per Bank

5 Marks

Q291.2022 Main 67/4/1 · QB-II 125 marks

Name and explain the accounts involved in Accounts Group ‘Profit and Loss Account’.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/4/1

Accounts involved in Accounts Group ‘Profit and Loss Account’ are :

(i) Sales Account :
For different sales accounts, the segregation is based on tax slabs ot types of sales. This also becomes a simple mechanism for preparation of tax returns. Sales account may be classified in groups such as domestic sales, export sales etc. of even sales returns account may be opened.

(ii) Purchase Account :
This is similar to sales accounts, except for the purpose of the transactions.

(iii) Direct Income : [Income Direct]:
All trade income accounts fall under sales accounts. This group may be used for accounts like servicing contract charges that follow after the sales of equipment.

(iv) Indirect Income (Income Indirect) :
These are the miscellaneous non-sale income accounts, e.g. rent received and interest received.

(v) Direct Expenses (Expenses Direct) :
These accounts determine the Gross Profit of the company.

(vi) Indirect Expenses (Expenses Indirect) :
These include all other administrative, selling or non- direct expenses.

(5 marks)

Q292.2022 Main 67/5/1 · QB-II 125 marks

State the steps to construct Bank-Reconciliation statement using Tally.

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Official CBSE Marking Scheme · 2022 (Main), Set 67/5/1

Following are the steps to construct Bank- Reconciliation using Tally:

  • Bring up the monthly summary of any bank book
  • Bring you cursor to the first month, Enter. This brings up the vouchers for the month of April. Since this is a Bank Account, and additional button F5; Reconcile will be visible on the right press F5
  • The display now becomes an Edit screen in 'Reconciliation' mode. The primary components are: A column for the 'Bankers Date'
  • The 'Reconciliation' at the bottom of the screen
  • Balance as per company books
  • Amount not reflected in the bank
  • Balance as per Bank

(5 marks)

Q293.2022 Supp. 67/6/1 · QB-II 125 marks

Explain three types of vouchers and two methods of voucher numbering used in Tally software.

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Official CBSE Marking Scheme · 2022 (Supplementary/Compartment), Set 67/6/1

Three types of vouchers:

(i) Memo Voucher
It is a non accounting voucher. It does not affect accounts of the user. These entries are stated/recorded in a separate register but not as a part of ledger.

(ii) Post dated Voucher
Some accounting software allows the user to enter the voucher for future transactions which are usually similar as the previous ones

(iii) User defined Voucher
In accounting software there are 23 predefined vouchers. It allows the user to define or create new accounting or inventory vouchers as per the requirement.

(1 × 3 = 3 marks)

Methods of Voucher Numbering:

(i) Manual
This method will allow you to number vouchers yourself. However it does not check for sequence of the numbers and permits you to specify anything you wish in the voucher number field.

(ii) Automatic
This method is both flexible and exhaustive. Automatic system instructs Tally to number the vouchers of this type incrementing automatically.

(1 × 2 = 2 marks)

= 3 + 2 = 5 Marks

Q294.2026 Main 67/1/1 · QB-II 346 marks

Explain various options available to change the alignment of the text in the cells.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/1/1

Options available to change the alignment of the text in cells are: (with explanation)

1. Text layout

Vertical alignment – To specify the vertical position of the text in a shape, select an option from the list (or from the tool box). ……… 1

Text direction – To specify the orientation of the text in a shape, select an option from the list. ……… 1

2. Autofit

Resize shape to fit text – To increase the size of the shape vertically so that the text fits inside of it, click this button. ……… 1

3. Internal margin

The internal margin is the distance between the text and the border of a chart element. We can increase or decrease the amount of this space by using the following options.

Left – To specify the distance between the left border of the selected chart element and the text, enter the margin number that we want in the Left box.

Right – To specify the distance between the right border of the selected chart element and the text, enter the margin number that we want in the Right box.

Top – To specify the distance between the top border of the selected chart element and the text, enter the margin number that we want in the Top box.

Bottom – To specify the distance between the bottom border of the selected chart element and the text, enter the margin number that we want in the Bottom box.

Columns – To specify the number of columns of text in a chart element and the spacing between the columns, click this button. ……… 3

The commands for this

  • Select the range.
  • Click on Home tab for Alignment option which displays the dialog box and select the Alignment tab.
  • Select horizontal and vertical as alignment required.
  • There are other options to display text in angular orientation or text to be contained within cell or to spread within the cell.
  • Click OK.

(= 6 marks)

Q295.2026 Main 67/2/1 · QB-II 346 marks

Name the error which will be displayed when a given number is divided by zero e.g. 25/0. State the reasons and the steps to be taken to correct this error.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/2/1

Name of the error is correct a # DIV/01 Error ……… 1

Reasons :
(i) Entering a formula that contains explicit division by zero (0) ……… 1
(ii) Using the cell reference to a blank cell or to a cell that contains zero as a divisor ……… 1

Solution :

  • Change the cell reference. ……… ½
  • Enter a value other than zero in the cell used as a divisor ……… 1
  • Enter the value #N/A into the cell referenced as the divisor which causes the result of the formula ……… ½
  • Prevent the error value from displaying by using IF worksheet function ……… 1

(6 marks)

The marking scheme prints the error name as "# DIV/01"; the Excel error is #DIV/0!.

Q296.2026 Main 67/3/1 · QB-II 346 marks

A user wishes to change a ‘Text Option’ as an element of chart. State how can this be done.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/3/1

To change the text in chart element one can use regular text formatting options, or we can apply a Word Art format

To use regular text formatting options (½)

  1. Click the chart element that contains the text to format (½)
  2. Right click the text or select the text to format, and then do one of the following
    • Click the formatting options that one want on the Mini toolbar (½)
    • On the home tab, in the font group, click the formatting buttons that we want to use. (½)

To use Word Art styles to format text use chart elements in the following steps. (½)

  1. In a chart, click the chart elements that contains the text to be changed or do the following to select the chart element from a list of chart elements. (½)
  2. Click anywhere in the chart. (½)
  3. This displays the chart tools, adding design, layout and format tabs. (½)
  4. On the format tab, in the current selection group, click the arrow next to the chart element box and then select the chart element to be formatted. (1)
  5. On the format tab, in the WordArt styles groups do one of the following select any from the given options Text fill, Text outline, Shadow, 3D formats, 3D rotation, text box. (1)

(6 Marks)

Q297.2026 Main 67/4/1 · QB-II 346 marks

Using the Formula tab and dialog box, write the formula to create function ‘IF’ on the given spreadsheet, where the total income minus expenses is 20% if it is more than ₹ 50,000 and 10% if it is less than ₹ 50,000. Also write the result statement.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/4/1
  • Suppose the income is shown in B2 then the syntax will be (1)
    = IF (B2 > 50,000, 20%, 10%)

Steps to create ‘IF’ function using formula tab and dialogue box.

  1. Select the cell where the function is to be introduced
  2. Click the formula tab on the ribbon and then click logical option (1)
  3. State ‘IF Function’ which will provide function arguments dialogue box (1)
  4. Type an appropriate condition in logical_test box (1)
  5. In the value_if_true box type the required value if the logic condition is met. (1)
  6. In the value_if_false box type the value if the logical condition is not met. Then click OK the answer for the condition will be displayed. (1)

(Note: No marks awarded for Point 1)

= 6 marks

Q298.2026 Main 67/5/1 · QB-II 346 marks

‘In MS Excel, charts can be formatted and customised to make them more attractive and meaningful.’ Explain the procedure to change the shape style of a chart element. Also state various shape fill options available to the user for enhancing the appearance of a chart.

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Official CBSE Marking Scheme · 2026 (Main), Set 67/5/1

Changing the shape style on the format tab in the shape styles group do one of the following .

  • To see all available shape styles click the more button [½]
  • To apply a pre-defined shape style, in the shape style box click the style that we want. [½]
  • To apply different shape fill, click shape fill and then do one of the following.
    • To use a different fill colour, under theme colours or standard colours, left click the select colour. [1]
    • To remove the colour from the selected chart element click No Fill. [1]
    • To use a fill colour that is not available under theme colours or standard colours click more fill colours . In the colours dialog box, specify the colour that we want to use on the standard or custom tab and then click OK. Custom fill colours are added under Recent Colours can also be used. [1]
    • To fill the shape with a picture, click picture. In the Insert Picture dialog box, click the picture to use and then click Insert. [1]
    • To use a gradient effect for the selected fill colour, click Gradient and then under variations click the gradient style to be used. For additional gradient styles, click more gradients and then in the fill category, click gradient option that to use [1]
    • To use texture fill. Click texture.

(6 Marks)

Q299.2026 Supp. 67/7/1 · QB-II 346 marks

Explain the use of the PV (Present Value) function in Computerised Accounting. How is it applied in MS Excel to calculate the present value of future payments ? Write the formula to calculate present value of ₹ 20,000 paid annually for the repayment of a loan for 10 years at an interest rate of 9%.

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Official CBSE Marking Scheme · 2026 (Supplementary/Compartment), Set 67/7/1

This function returns the present value of an investment. The present value is the total amount that a series of future payment is worth now.

Use : This is helpful in evaluating loans, investments or savings with fixed payments.

Syntax PV(rate, nper, pmt, fv, type)

Where
Rate : It Interest rate per period.
Nper : is the total number of payment periods in an annuity
Pmt : is the payment made each period and cannot be changed over the life of the annuity.
FV : is the future value, or a cash balance to attain after the last payment is made.
Type : is the number 0 or 1 and indicates when payments are due.

The formula in present situation = PV (9%, 10, - 20,000) output will indicate the present value.

(6 marks)

Q300.2025 Main 67/1/1 · QB-II 346 marks

'Different chart elements can be formatted and edited as per requirement.' State various options available to a user, when he/she wants to change 'shape style'.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/1/1

Following are the options available:

(a) Change shape style
(b) Shape outline
(c) Text format

Changing the shape style

On the Format tab, in the shape styles group, do one of the following:

  • To see all available shape styles click the more button.
  • To apply a pre-defined shape style, in the shape style box. Click the style that the user wants.
  • To apply a different shape fill click shape fill and then do one of the following.
  • To use different fill colour under Theme colours or standard colours left click and select the colour.
  • To remove the colour from the selected chart elements click No Fill.
  • To select a colour which is neither available in theme colour nor in standard colours click More Fill Colours and then specify the colour. Custom fill colours are added under Recent colours, can also be used.
  • To fill a shape with picture, click Picture. In the Insert Picture dialog box, click the picture to use and then click Insert.
  • To use gradient effect for the selected fill colour, click Gradient and then under Variation click the gradient style to be used.
  • To use texture, click Texture and then click the texture to use.

(6 marks)

Q301.2025 Main 67/2/1 · QB-II 346 marks

In case the total cost of a machine less installation charges is greater than ₹ 2,00,000, then 20% depreciation is charged and if total cost of machine is less than ₹ 2,00,000 then 10% depreciation is charged.

Write the steps to create 'IF' function using formula tab and dialogue box on a given spreadsheet. Also write the syntax of the result.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/2/1

Creating If function using the formula Tab and dialogue box.

  1. Select the cell say D4 where the function is to be introduced
  2. Click at the formula tab on the ribbon and click logical option.
  3. Select 'IF Function' which will provide function argument dialogue box.
  4. Type an appropriate condition in the logical test box.
  5. In the value if true, box type required value if logical test condition is met.
  6. In the value if false, box type value if logical test condition is not met.
  7. Click OK, the answer for the condition will be displayed. Copy the function from D4 to all other cells.

In the formula Box the function will be displayed as.

=If (D4 > 2,00,000, 20%, 10%)

(6 marks)

Q302.2025 Main 67/4/1 · QB-II 346 marks

State the steps to be followed to copy or import the data into required cells of Excel worksheet.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/4/1

To import data the following steps are to be taken:

  1. Create a data file using notepad.
  2. A comma- separated data value in one line of this text file is a row in a spreadsheet and each entry, separated by a comma, is a column entry for that row.
  3. In the first line provide names for the column of the spreadsheet.
  4. In the next line onwards start entering the data separated by comma as per the names given in first line.
  5. It may be possible that every data may not be of similar length but each data should be separated by comma as per the names of the columns.
  6. Open a new Excel Worksheet from the office button and select Data tab on the ribbon.
  7. On Data tab; an option ‘Get External Data’ click on “From Text” which will allow selecting a notepad file saved as .CVM into Excel format directly and Data will be copied in respective columns and rows.

6 marks

Q303.2025 Main 67/5/1 · QB-II 346 marks

= SUM (B2B3) will give an error while using a spreadsheet. Identify the error and state the steps to correct it.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/5/1

The error which will occur is Correct #NULL! Error.
As it was a typing mistake the Comma (,) was not inserted between B2 and B3. (1 mark)

Steps to correct it:
1. Show calculation steps it appears. Incorrect range operator refer to contiguous range of cells use colon to separate the reference.

  • To refer to two areas that don't intersect, use the union operator the comma (,).
    Ranges do not intersect.
  • If there are no squares at each corner of the color-coded border, then the reference is to a named range.
  • If there are squares at each corner of the color-coded border, then the reference is not to a named range.
  • Double-click the cell that contains the formula to change. Excel highlights each cell or range of cells with a different color.
  • On the Formulas tab, in the Defined Names group, click the arrow next to Define Name and then click Apply Names.
  • In the Apply Names box, click one or more names.

(1 + 5 = 6 marks)

Q304.2025 Main 67/6/1 · QB-II 346 marks

Name the error which occurs when the column is not wide enough or a negative date or time is used. How can it be corrected if (i) Error is due to the width of column, and (ii) Date or time is negative ?

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Official CBSE Marking Scheme · 2025 (Main), Set 67/6/1

The error : Correct a # # # # # Error occurs when the column is not wide enough or negative date or time is used. (1)

(i) When length of the column is not wide enough then: (2½)

  1. Select the column by clicking the column header.
  2. On the HOME tab, in the Cells group, click format, and then click 'AutoFit Column Width'. Alternatively also we can double click the boundary to the right of the column heading.
  3. Select the column.
  4. On the 'HOME' tab, in the Cells group, click format, click format Cells, and then click Alignment tab.
  5. Select the shrink to fit.

(ii) Dates and times are negative numbers, then: (2½)
When a date or time is typed in a cell, it appears in a default date and time format which is based on regional date and time setting that is specified in Windows Control Panel and changes when changes are made to those settings.

  • If we are using the 1900 date system, dates and times in Excel must be positive.
  • To subtract date and time be sure to make formula correctly.
  • If the formula is correct but result is still a negative value, display the value by formatting the cell with a format that is not a date or time format.

(= 6 marks)

Q305.2025 Main 67/7/1 · QB-II 346 marks

State the steps to import data from a text file.

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Official CBSE Marking Scheme · 2025 (Main), Set 67/7/1

Steps to import/copy data from other sources:

  1. Create the data file using Notepad program of MS Window. A comma-separated data value in one line of this text file is a row in a spreadsheet and each entry, separated by a comma is a column for that row.
  2. In the first line provide names for the columns of the spreadsheet. In the next line onward, start entering the data separate by comma as per the names given in the first line.
  3. It may be possible that every data may not be of similar length, but each data should be separated by comma as per the names of the column.
  4. Open a new Excel worksheet from the Office Button.
  5. Select data tab on the Ribbon.
  6. On data Tab; an option get external Data having from Text option.
  7. Click on 'from Text' which will allow Selecting a notepad file saved as, cum into Excel format directly and data will be copied into respective rows and columns.
  8. Each and every data from Notepad file can be saved as an excel date file. This provides a lead that Excel worksheet consist of four types of data in Cells: Labels, Values, date and formulas and Data Validation.
    Labels: are Descriptive data
    Values: are generally raw numbers of dates
    a) whole numbers.
    b) Value with decimal
    Formulas: instructions to perform Calculation
    Dates

(½ × 8 + 2 = 6 Marks)

Q306.2025 Supp. 67/S/1 · QB-II 346 marks

Which error occurs when a column is not wide enough or a negative date or time is used ? How can this error be corrected, if : (1 + 2½ + 2½ = 6)

  1. Error is due to the width of the column ?
  2. Date and time are negative numbers ?
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Official CBSE Marking Scheme · 2025 (Supplementary/Compartment), Set 67/S/1

Correct a ##### Error [1]

(i) This error occurs when a column is not wide enough, or a negative date or time is used.
Reason: The column is not wide enough to display the content.
● How to correct:
1. Select the column by clicking the column header.
2. On the Home tab, in the Cells group, click Format, and then click AutoFit Column Width.
Alternatively, also we can double-click the boundary to the right of the column heading.
3. Select the column.
4. On the Home tab, in the Cells group, click Format, click Format Cells, and then click the Alignment tab.
5. Select the Shrink to fit check box. [2½]

(ii) Dates and times are negative numbers
When a date or time is typed in a cell, it appears in a default date and time format. The default date and time format is based on the Regional date and time settings that are specified in Windows Control Panel, and changes when changes are made to those settings. We can display numbers in several other dates and time formats, most of which are not affected by Control Panel settings.
- If we are using the 1900 date system, dates and times in Excel must be positive values.
- When we subtract dates and times, make sure that we build the formula correctly.
- If the formula is correct but the result is still a negative value, we can display the value by formatting the cell with a format that is not a date or time format.
● Steps:
1. On the Home tab, in the Cells group, click Format, click Format Cells, and then click the Number tab.
2. Select a format that is not a date or time format. [2½]

= 6 marks

Q307.2024 Main 67/1/1 · QB-II 346 marks

Explain the two syntax forms of ‘Lookup’ function.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/1/1

The ‘LOOKUP’ function has two syntax forms:

(i) Vector
This ‘LOOKUP’ form looks in a one row or one column range for a value and then returns a value from the same position in a second one row or one column range. The syntax is LOOKUP ( lookup-value, lookup-vector, result-vector)

  • LOOKUP-Value is a value that LOOKUP searches for in the first vector. It can be a number, text, a logical number, name, etc.
  • LOOKUP- Vector is a range that contains only one row or one column. The value in LOOKUP- Vector can be text, numbers or logical values.
  • Result- Vector is range that contains only one row or column. It must be the same size as LOOKUP- Vector.

(ii) Array
It looks in the first row or column of an array for the specified value, and then returns a value from the same position in the last row or column of the array. The syntax is

  • LOOKUP (lookup- value-array)
  • LOOKUP- Value cannot find the lookup-value, it uses largest value in the array that is less than or equal to lookup-value.
  • If lookup-value is smaller than the smallest value in the first row or column, it returns the #N/A error values.
  • Array is the range of cells that contains text, numbers or logical values that we want to compare with lookup-values.

(3 × 2 = 6 marks)

Q308.2024 Main 67/2/1 · QB-II 346 marks

Write the steps to create ‘If’ function using formula tab and dialogue box on a given spreadsheet where the total income less expenses if greater than ₹ 10,000 then 10% savings and if income is less than ₹ 10,000 then 5% savings. Also write the syntax of the result.

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Official CBSE Marking Scheme · 2024 (Main), Set 67/2/1

Following will be the steps to create ‘IF’ function using formula tab and dialogue box. [5]

  1. Select the cell where the saving % is to be shown say F4.
  2. Click at the formula tab on the ribbon and click logical option.
  3. Select ‘IF Function’ which will provide function arguments dialogue box.
  4. Type an appropriate condition in the logical _test box.
  5. In the value_if_true box, type the required value (Here it is 100%) if logical condition test is met.
  6. In the value_if_false, type the value if logical test condition is not met. (Here it is 5%)
  7. Click OK, the answer for the condition will be displayed in F$. Copy the function from F4 cell to rest of F column till you want to calculate.

In the formula the syntax will be
= If(F4>10000, 10%, 5%) [1]

= 6 marks

Transcribed as printed in the MS (it says "100%" in step 5 and "F$" in step 7; the question states 10%).

Q309.2024 Main 67/3/1 · QB-II 346 marks

[Worksheet shown in an Excel window; cell B11 selected.]

ABCDEF
1S. No.ConsumablesPrice in FY 21 – 22Price in FY 23 – 24
21Apple5060
32Orange2040
43Banana6080
54Lemon4080
65Milk5360
76Bread4045
87Egg5860
9

Using the worksheet, find out the error and its reason for the given syntax :

  1. = VLOOKUP (B1, B4 : D6, 2, 0)
  2. = SQRT (VLOOKUP (C2, C2 : D8, 2, 0) – 100)
  3. = VLOOKUP (B5, B6 : D8, 1, 0)
  4. = VLOOKUP (B3, B2 : D8, 5, 0)
  5. = VLOOKUP (B5, B3 : D8, 0, 0)
  6. = VLOOKUP (B2, B2 : D7, 2, 0) / 0
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Official CBSE Marking Scheme · 2024 (Main), Set 67/3/1
S.N.ErrorReason
(i)# N/AValue being looked up is not in array range.
(ii)# NUM !Negative value in square root function is invalid.
(iii)# N/ALook up value is less than the array range provided.
(iv)# REF !The column value being searched is greater than array range provided.
(v)# VALUE !Value being searched is not available as column does not exist.
(vi)# DIV/ 0 !Value searched is being divided by zero

(1/2 x 12 = 6) = 6 marks

Q310.2024 Main 67/4/1 · QB-II 346 marks

[Worksheet shown in the question paper (Excel screenshot, active cell C11):]

ABCDE
1S. No.ProductQ1 SalesQ2 SalesTotal half yearly sales
21H150003000045000
32I380004000078000
43J230002800051000
54K320004900081000
65L260003600062000
76M200003200052000
87O240004000064000

Using the worksheet find out the error and its reason for the given ‘VLOOKUP’ syntax.

  1. = VLOOKUP (B1, B2 : E8, 2, 0)
  2. = SQRT (VLOOKUP (B5, B8 : E8, 2, 0) – 100000)
  3. = VLOOKUP (A2, A2 : A8, 2, 0)
  4. = VLOOKUP (B2, B3, E4, 5, 0)
  5. = VLOOKUP (B2, A2 : E8, 0, 0)
  6. = VLOOKUP (B2, B2, E8, 2, 0)/0
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Official CBSE Marking Scheme · 2024 (Main), Set 67/4/1
  1. Error # N/A
    Reason- Value being looked up is not in array range.
  2. Error # NUM!
    Reason- Negative value in square root function is invalid.
  3. Error # REF!
    Reason- The column value being searched is greater than array range provided.
  4. Error # N/A
    Reason- Lookup value is less than the array range provided.
  5. Error # VALUE!
    Reason- Value being searched is not available as column does not exist.
  6. Error # DIV/0!
    Reason- Value searched is being divided by zero.

(½ Mark each for identifying the error + ½ Mark each for the reason = 6 marks)

Q311.2024 Main 67/5/1 · QB-II 346 marks

[Excel worksheet screenshot, cell B19 selected; data reproduced below]

ABCDEF
1S. NoSubjects
2NameMathsEnglishScienceTotal
31Vipul385866162
42Ram889274254
53Kiara577791225
64Kian825645183
75Kabir555565175
86Yuvaan755157183
97Vishnu897866233
108Neha705884212
11

From the given 'VLOOKUP' syntax find out the error and its reason using the worksheet.

  1. = VLOOKUP (B5, C3 : F10, 2, 0)
  2. = SQRT (VLOOKUP (B3, B3 : F10, 2, 0) – 100)
  3. = VLOOKUP (B2, B3 : F10, 5, 0)
  4. = VLOOKUP (B3, B3 : B10, 2, 0)
  5. = VLOOKUP (B6, B3 : F10, 0, 0)
  6. = VLOOKUP (B6, B3 : F10, 2, 0)/0
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Official CBSE Marking Scheme · 2024 (Main), Set 67/5/1
  1. Error #N/A
    Reason Value being looked up is not in array range.
  2. #NUM! Error
    Reason - Negative value is square root functions is invalid.
  3. # N/A Error
    Reason lookup value is less than the array range provided.
  4. #REF! Error
    Reason Column value being searched is greater than array range provided.
  5. #Value! Error
    Reason Value being searched is not available as column does not exist.
  6. #DIV/0! Error
    Reason Value searched is being divided by zero.

(½ mark for identifying the error + ½ mark for its reason = 1×6 = 6 marks)

Q312.2024 Supp. 67/S/1 · QB-II 346 marks

What is meant by ‘Merging a range of cells’ ? How is it done ? State the steps to split a merged cell.

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Official CBSE Marking Scheme · 2024 (Supplementary/Compartment), Set 67/S/1

Merged cells are a single cell that is created by combining two or more selected cells. The cell reference for a merged cell is the upper left cell in the original selected range. When two or more adjacent horizontal or vertical cells are merged, the cells become one large cell and displayed across multiple columns or rows. The contents of one appear in the center of the merged cell.

To merge the cell:

  1. Select the two or more adjacent cells that we want to merge.
  2. On the Home tab, in the Alignment group, click, merge and center (or bottom).
  3. The cell will be merged in a row or column, and the cell contents will be centered in the merged cell. To merge cell without centering, click the arrow next to Merge and Centre and then click Merge Across or Merge Cells. The cell address of merge cells will be the address of lower active cell.
  4. To change the text alignment in the merged cell, select the cell; click any of the alignment buttons in the Alignment group on the Home tab.

To split a merged cell:

  1. Select the merged cell.
  2. When we select a merged cell, the Merge and Centre button also appears selected in the Alignment group on the Home tab.
  3. To split the merged cell, click merge and Centre. The contents of the merged cell will appear in the upper left cell of the range of split cell.

(2+2+2 =6 marks)

Q313.2023 Main 67/1/1 · QB-II 346 marks

What is meant by ‘Present Value’ of an investment ? Explain the financial function which helps in its calculation.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/1/1

Present value is the total amount that a series of future payments is worth now.

The financial function which helps in its calculation is known as PV.

Its syntax is
PV (rate, nper, pmt, fv, type)

Where
Rate : Interest rate per period.
Nper : Total number of payment periods in an annuity.
Pmt : The payment made each period and connot be changed over the life of annuity : Typically pmt includes principal and interest but no other fees and taxes.
FV : The future value, or a cash balance to attain after the last payment is made.
Type : is the number 0 or 1 and indicates when payments are due. The fv and type arguments are optional.

(6 marks)

Q314.2023 Main 67/2/1 · QB-II 346 marks

Name the function which is often used to calculate the payment for mortgage loans that have fixed rate of interest. Also explain its syntax.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/2/1

The name of the function is PMT. [1]

Its syntex is = PMT (rate, nper, pv [fv], [Type]) where [5]

  • rate = is the interest rate per period.
  • nper = is the number of periods.
  • pv = is the present value, or the amount the future payments are worth presently.
  • fv = is the future value, or cash balance that after the last payment is made a future value of zero when we omit the optional argument.
  • Type = is the value 0 for payments made at the end of the period or the value 1 for payments made at the beginning of the period.

(1+5 = 6 Marks)

Q315.2023 Main 67/3/1 · QB-II 346 marks

Name the financial function which returns accrued interest on a bond with 5% coupon rate and where issue and settlement date of investment is also given. Also explain its syntax.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/3/1

The name of the financial function is ACCRINT. (1)

Its syntax is
ACCRINT (issue, first_interest, settlement, rate, par, frequency, basis calc_method).

Where (5)

ArgumentMeaning
Issueis the security’s issue date.
First_interestis the security’s first interest date.
Settlementis the security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
Rateis the security’s annual coupon rate.
Paris the security’s par value. By default par is 1000.
Frequencyis the number of coupon payments per year for annual payments.
Basisis the type of day count basis to use.

= 6 marks

Q316.2023 Main 67/4/1 · QB-II 346 marks

Name and explain the financial function which will be used to verify the total interest on a loan between any two periods.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/4/1

The name of the function is CUMIPMT. [1]
This function returns the cumulative interest paid between two periods.
It syntax is
CUMPIMT (rate, nper, pv, start_period, end_period, type)
Where
Rate : is the interest rate
Nper : is the total number of payment periods.
Pv : is the present value.
Start_Period –is the first period in the calculation. Payment periods are numbered beginning with 1.
End_Period – is the last period in the calculation.
Type – is the timing of the payment (which may be either 0 or 1)
0-means payment at the end of the period.
1-means payment at the beginning of the period. [5]

1+5=6 marks

Q317.2023 Main 67/5/1 · QB-II 346 marks

Name the error which appears when the cell reference is not valid. State how this error can be corrected.

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Official CBSE Marking Scheme · 2023 (Main), Set 67/5/1

The error is known as ____ REF ! Error. (1)

This error is corrected by : (5)

  1. Click the cell that displays the error, click the button that appears and then click Show Calculations Steps if it appears.
  2. Review the following possible causes and solutions :
    • Deleting cells referred to by other formulas, or pasting moved cells over cells referred to by other formulas.
    • Change the formulas, or restore the cells on the worksheet by clicking undo immediately after we delete or paste the cells.
    • Using an object-linking and Embedding (OLE) link to a program that is not running.
    • Start the program.
    • Linking to a Dynamic Data Exchange (DDE) topic such as “system” that is not available.
    • Make sure that we are using the correct DDE topic.
    • Running a macro that enters a function that returns # REF!

(1 + 5 = 6 marks)

Q318.2023 Supp. 67/C/1 · QB-II 346 marks

Name and explain the financial function which will be used to know the returns in today’s currency value of a series of future payments assuming constant payments and rate of interest.

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Official CBSE Marking Scheme · 2023 (Supplementary/Compartment), Set 67/C/1

The name of the function is PV. [1]

Its syntax is = PV(rate, nper, pmt, [fv], [Type]) where

rate = is the interest rate per period.
nper = is the number of payment periods in an annuity.
pmt = The payment made in each period and cannot be changed over the life of annuity. Typically pmt includes principal and interest but no other fees and taxes.
fv = is the future value, or cash balance to attain after the last payment is made .
Type = is the number 0 or 1 and indicates when payments are due. The fv and type arguments are optional. [5]

= 1 + 5 = 6 marks

Q319.SQP 2025-26 · QB-II 346 marks

What is meant by ‘Merging a range of cells’? How is it done? State the steps to split a merged cell.

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CBSE Sample Question Paper 2025-26 · Marking Scheme

Merging a range of Cells:

Merged cells are a single cell that is created by combining two or more selected cells. The cell reference for a merged cell is the upper-left cell in the original selected range. When two or more adjacent horizontal or vertical cells are merged, the cells become one large cell and displayed across multiple columns or rows. The contents of one appear in the centre of the merged cell.

Steps:

  1. Select two or more adjacent cells that we want to merge.
  2. On the Home tab, in the Alignment group, click Merge and Centre.

Steps to split a merged cell:

  1. Select the merged cell.
  2. When we select a merged cell, the Merge and Centre button also appears selected in the Alignment group on the Home tab.
  3. To split the merged cell, click Merge and Centre. The contents of the merged cell will appear in the upper-left cell of the range of split cells.
Q320.SQP 2026-27 · QB-II 346 marks

=SUM(B2B3) will give an error while using spreadsheet. Identify the error and state the steps to correct it.

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CBSE Sample Question Paper 2026-27 · Marking Scheme

The formula =SUM(B2B3) will display a #NAME? error.

Reason:
Excel shows #NAME? error when:

  • The formula contains incorrect syntax.
  • A range operator (:) is missing between cell references.

In =SUM(B2B3), the colon (:) between B2 and B3 is missing.

Steps to Correct the Error:

  1. Select the cell showing the error.
  2. Click on the Formula Bar.
  3. Correct the formula by inserting a colon between the cell references:
    =SUM(B2:B3)
  4. Press Enter.

The formula will now correctly calculate the sum of cells B2 and B3.

Correct Formula: =SUM(B2:B3)