CA Foundation Question Paper with Solution Dec 2023 - ACCOUNTS

  • Team Koncept
  • 22 June, 2024
CA Foundation Question Paper with Solution Dec 2023 - ACCOUNTS

CA Foundation Question Paper with Solution Dec 2023 - ACCOUNTS

Ca Foundation Question Paper with Solution | Accounts Dec 23 Attempt

 

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ca foundation accounts paper dec 2023 with answers
Table of Content
  1. 1 (a) : State with reason, whether the following statement is true or false:
  2. 1 (b) : Briefly explain the following term:
  3. 1 (c) : From the following information, ascertain the value of Closing Stock...
  4. 2 (a) : From the following particulars, prepare a Bank Reconciliation...
  5. 2 (b) : ABC sports club had the following income and expenditure...
  6. 3 (a) : R draws a bill of exchange on P for ₹ 2,00,000 on 1st July, 2022...
  7. 3 (b) : Mr. B and Mr. G had the following mutual dealings and... 
  8. 3 (c) : Attempt any ONE of the following two sub-parts i.e. either (i)..
  9. 4 (a) : The following is the schedule of balances as on 31.03.23 extracted... 
  10. 4 (b) : P, Q and R are the 3 partners in partnership firm. Partnership... 
  11. 5 (a) : X, Y and Z were partners sharing profit and losses in the ratio of... 
  12. 5 (b) : From the following transactions of a concern, prepare the Machinery...
  13. 5 (c) : Prepare Triple Column Cash Book from the following transactions...
  14. 6 (a) : A Ltd issued 25000 equity shares of ₹ 100 each at a premium of...
  15. 6 (b) : What are the sub-fields of accounting?

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ca foundation accounts paper dec 2023 with answers
Question 1 : (a) 

State with reason, whether the following statement is true or false:

(i) The financial statements must disclose all the relevant and reliable information in accordance with the Full Disclosure Principle.

Answer  :  True, The financial statements must disclose all the relevant and reliable information in accordance with the Full Disclosure Principle.

(ii) The gain from sale of capital assets is added to revenue to ascertain the net profit of the business.

Answer  : 

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(iii) Depreciation is non-cash and non-operating expense which is to be provided for if there are profits.

Answer  : 

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(iv) Sum of the year's digit method is an example of accelerated method of charging depreciation.

Answer  : True, Higher depreciation is charged in earlier years under some years digit method.

(v) Inauguration expenses of 10 lakhs incurred on the new unit in an existing business is a capital expenditure.

Answer  : 

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(vi) Discount column of cash book records the trade discount.

Answer  : 

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Question 1 : (b) 

Briefly explain the following term :

(i) Conversion Cost :

Answer  : 

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(ii) Diminishing Balance Method :

Answer  : 

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(iii) Money Measurement Concept :

Answer  : 

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(iv) Realisation Concept :

Answer  : 

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Question 1 : (c)

From the following information, ascertain the value of Closing Stock as on 31 March, 2023.

Particulars (₹)
Opening Stock 1,47,500
Cash Sales 5,50,000
Credit Sale 4,00,000
Purchases 8,85,000
Manufacturing Expenses 1,35,000
Advertisement Expenses 43,000
Rate of Gross Profit on Cost 25%

At the time of valuing inventory as on 31st March, 2022, a sum of ₹ 12,500 was written off on a particular item, which was originally purchased for ₹ 50,000 and was sold during the year for ₹ 40,000.

Answer  : 

Statement of Stock as on 31st March, 2023

   
Inventory as on 1st April, 2022 1,47,500  
Less: Book value of abnormal inventory (₹ 50,000 - ₹ 12,500) 37,500 1,10,000
Add: Purchases   8,85,000
  Manufacturing Expenses   1,35,000
      11,30,000
Less: Cost of goods sold:    
  Sales as per books (cash sales + credit sales) 9,50,000  
  Less:  Sales of abnormal item 40,000  
  9,10,000  
  Less:  Gross Profit @ 20% (25% on cost, so 20% on sales) 1,82,000 7,28,000
Closing Stock as on 31st March, 2023   4,02,000

 

Question 2 : (a) 
From the following particulars, prepare a Bank Reconciliation Statement as on 31 December, 2022
 
(i) Debit balance (overdraft) shown by the pass book ₹ 2,48,000.
(ii) Cheques of ₹ 2,10,000 were issued in the last week of December, but of these ₹ 1,40,000 only were presented for payment.
(iii) A Cheque fort ₹ 19,200 drawn for the payment of telephone bill had been entered in the cash book as ₹ 29,200 but was shown correctly in the bank statement.
(iv) A Cheque received of ₹ 37,520 entered the Cash Book.
(v) A Cheque for ₹ 1,17,000 was issued for purchase of merchandise and was paid by the bank but not recorded in cash book.
(vi) Interest on overdraft and bank charges amounting to ₹ 3,500 were not entered in the Cash Book.
(vii) A Cheque ₹ 45,000 was credited in the Pass Book but was not recorded in the cash book.
(viii) A bill of exchange for ₹ 26,200 which was discounted with bank, returned dishonored but no entry was made in the cash book.
(ix) Payment side of the Cash Book has been undercast by ₹ 12.000.

Answer  : 

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Question 2 : (b)

ABC sports club had the following income and expenditure account for the year ended 31st Dec 2022.

Income and Expenditure Account for the year ended 31 Dec 2022

Particular Amount ₹ Particular Amount ₹
To Salaries 2,35,000 By Subscriptions 2,50,000
To Stationary Expenses 30,000 By Interest 90,000
To Rent and Taxes 5,000 By Donations 40,000
To Insurance 2,000 By Misc. Receipts 3,000
To Office Expenses 8,000    
To Depreciation      
Building 37,500    
Furniture 1,200    
Sports Equipment 1,000    
To Excess of Income over Expenditure 63,300    
  3,83,000   3,83,000

Additional information :

  31-12-2021 (₹) 31-12-2022 (₹)
Govt. securities 18,00,000 18,00,000
Subscription outstanding 70,000 1,00,000
Subscription received in advance 2,000 6,000
Salaries unpaid 10,000 15,000
Furniture 20,000 19,800
Land and Building 20,00,000 19,62,500
Sports Equipment 35,000 39,000
Stock of stationary 3,000 5,500

Cash in hand and Cash at bank as on 31-12-2021 is ₹ 1,08,000.

You are required to prepare Receipts and Payments Account for the period ending 31.12.2022 and Balance Sheet as on 31.12.2022.

Answer  : 

Receipts and Payments Account for the period ending 31.12.2022

Particular Particular
Opening balance   1,08,000 By Salaries (WN 1) 2,30,000
To Subscriptions (WN 3) 2,24,000 By Stationary Expenses (WN 2) 32,500
To Interest 90,000 By Rent and Taxes 5,000
To Donations 40,000 By Insurance 2,000
To Misc. Receipts 3,000 By Office Expenses 8,000
    By Furniture (WN 4) 1,000
    By Sports equip (WN 5) 5,000
    By Bal. c/d 1,81,500
  4,65,000   4,65,000

Balance sheet as on 31.12.2022

Liabilities (₹) Asset
Op. Capital(WN 6) 40,24,000 Govt. securities 18,00,000
Surplus 63,300 Subscription outstanding 1,00,000
Subscription received in advance 6,000 Furniture 19,800
Unpaid Salary 15,000 Land and Building 19,62,500
    Sports Equipment 39,000
    Stock of stationery 5,550
    Cash/Bank 1,81,500
  41,08,300   41,08,300

Working Note 1

Salary paid in cash/bank during the year

Particular
opening balance (31-12-22) 2,35,000
Less : salary unpaid (31-12-22) 15,000
Add : salary unpaid (31-12-21) 10,000
Salary paid in cash/bank during the year 2,30,000

Working Note 2

Stationary Purchase during the year

Particular
Stationary consume (31-12-22) 30,000
Add: closing stock 5,500
Less : opening balance  3,000
Stationary Purchase during the year 32,500

Working Note 3

Cash/Bank- Subscriptions received during the year

Particular
Income recognized during the year 2,50,000
Add : Subscription outstanding(31-12-22) 70,000
Add : Subscription received in Advance ( 31-12-22) 6,000
Less : Subscription outstanding (31-12-21) 1,00,000
Less : received in advance ( 31-12-21) 2,000
cash/bank Subscription received during the year 2,24,000

Working Note 4

Purchase furniture during the year

Particular
Closing balance 19,800
less: Depreciation 1,200
Opening Balance 20,000
Purchase furniture  during the year 1,000

Working Note 5

Purchase Sports Equipment during the year

Particular
Closing balance 39,000
less: Depreciation 1,000
Opening Balance 35,000
Purchase Sports Equipment during the year 5,000

Working Note 6

Balance sheet as on 31.12.2021

Liabilities (₹) Asset
Op. Capital Balancing (fig) 40,24,000 Govt. securities 18,00,000
Subscription received in advance 2,000 Subscription outstanding 70,000
Unpaid Salary 10,000 Furniture 20,000
    Land and Building 20,00,000
    Sports Equipment 35,000
    Stock of stationery 3,000
    Cash/Bank 1,08,000
  40,36,000   40,36,000
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Question 3 : (a) 
R draws a bill of exchange on P for ₹ 2,00,000 on 1st July, 2022 for 4 months. P accepted the bill and sent it to R. R discounts the bill from his bankers for ₹ 1,88,000. R immediately remits ₹ 75,200 to P. On the due date, R, being unable to remit the amount due, accepts a bill for ₹ 2,50,000 for 4 months which is discounted by P for ₹ 2,36,250. P sends ₹ 56,700 to R. Before the bill is due for payment R becomes insolvent, his estate is paying fifty paise in the rupee.

Give the journal entries in the books of P. Also show R's account in P's books.

Answer  : 

In the books of P 

Journal Entries 

Date  Particulars   L.F. DR. (in ₹) CR. (in ₹)
01/07/2022 R A/c   Dr.   2,00,000  
   To Bills payable A/c        2,00,000
  (Being bill of exchange accepted and sent to Mr. R)         
01/07/2022 Bank A/c  Dr.   75,200  
  Discount charges A/c Dr.   4,800  
  To R A/c         80,000
  (Being the amount received from X on account of the bills  receivable)          
04/11/2022  Bills  payable A/c  Dr.   2,50,000  
  To R A/c         2,50,000
  (Being the bills honoured)        
04/11/2022  Bank A/c Dr.   2,36,250  
  Discount charges A/c  Dr.   13,750  
  To Bills receivable A/c       2,50,000
  (Being X acceptance discounted with bank)         
04/11/2022  Bills receivable A/c  Dr.   2,00,000  
  To R A/c         2,00,000
  (Being the new bills accepted by R)        
04/11/2022  R A/c  Dr.   66,984  
  To Bank A/c       56,700
  To Discount account        10,284
  (Being the amount received, and the discount debited to R)         
07/03/2023 R A/c   Dr.   2,50,000  
  To Bank A/c        2,50,000
  (Being R’s acceptance which was discounted dishonored due to R’s bankruptcy)        
07/03/2023 Bank A/c  Dr.   93,492  
  Bad debts A/c  Dr.   93,492  
  To R A/c         1,86,984
  (The amount received from R and the balance being written off as debt)        

R' A/C

Particulars (₹) Particulars Cr.(₹)
To Bills payable A/c  2,00,000 By cash 75,200
To Bank  2,50,000 By Disc 4,800
To Disc 10,284 By B/R 2,50,000
To cash 56,700 By Bank 93,492
    By  Bad debt A/c  93,492
  5,14,950   5,14,950

 

Question 3 : (b)

Mr. B and Mr. G had the following mutual dealings and allow each other one month's credit. At the end of three months the accounts rendered are as follow:

Date Goods sold by Mr. B to Mr. G (₹) Date Goods sold by Mr. G to Mr. B (₹)
July 20 35,000 July 25 24,000
Aug 17 30,000 Aug 16 22,000
Sep 13 32,000 Sep 05 25,000

You are required to calculate the date upon which the balance should be paid so that no interest is due either to Mr. B or Mr. G (consider 20 Aug. as base date)

Answer  : 

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Question 3 : (c)

Attempt any ONE of the following two sub-parts i.e. either (i) or (ii)

(i) From the following particulars prepare account current, as sent by Rose to Lily as on 31st March, 2023 by means of product method charging interest @ 6% p.a.

   
01/01/2023 Balance due from Lily 8,500
10/01/2023 Sold goods to Lily 14,700
15/01/2023 Purchased goods from Lily 10,200
20/01/2023 Goods returned by Lily 2,500
25/02/2023 Lily paid by cheque 9,500

Answer  : 

XY in Account Current with AB as on 31.03.23

Date Particular Due date (₹)  Days  Product (₹) Date Particular Due date (₹)  Days  Product (₹)
1-1-23 To Bal. b/d 1-1-23 8,500 90 7,65,000 15-1-23 By Purchase 15-1-23 10,200 75 7,65,000
10-1-23 To Sales  10-1-23 14,700 80 11,76,000 20-2-23 By Sales Returns 20-1-23 2,500 70 1,75,000
31-3-23 To Interest  - 111.45 - - 25-2-23 By Bank 25-2-23 9,500 34 3,23,000
            31-3-23 By Balance of Products  - - - 6,78,000
               By Bal. c/d  - 1111.45 - -
      23,311.45           23,311.45    

 Note:

Interest = ₹ 6,78,000 x 6/100 x 1/365 =₹111.45(approx.) 

 

(ii) Mr. X consigned goods costing ₹ 1,50,000 to Mr. Y and spent ₹ 1,800 on insurance. Mr. Y received the goods and spent ₹ 2,000 on freight. He also spent ₹ 1,500 on godown rent. Mr. Y sent bank draft of ₹ 50,000 to Mr. X as advance payment and sent his Account sales showing that 4/5 of the goods had been sold for ₹ 1,40,000. Mr. Y is entitled to a commission of 8%. One of customers turned insolvent and could not pay ₹ 5,000 due from him. (Commission does not include del-credere).

Show the necessary journal entries in the consignee's book.

Answer  : 

Journal Entries in the books of Consignee

Date Particulars  
i X A/c Dr. 2,000  
            To Bank A/c     2,000
  (To record the freight expenses incurred by Mr. Y.)      
ii X A/c Dr.   1,800  
            To Bank A/c     1,800
  (To record the insurance expenses incurred by Mr. Y.)      
iii X A/c   Dr. 1,500  
          To Bank A/c      1,500
  (To record the godown rent expenses incurred by Mr. Y.)      
iv X A/c   Dr. 1,50,000  
         To bank A/c      1,50,000
  (To record the cost of goods sent to Mr. Y.)      
v Cash / Debtores Dr. 1,40,000  
          To X A/c      1,40,000
  (To record the sales made by Mr. Y.)      
vi X A/c   Dr. 11,200  
         To Commission A/c      11,200
  ( Commission to be paid to Y - 1,40,000 X 8%)      
vii X A/c   Dr. 5,000  
        To Debtores A/c      5,000
  (Customer turned insolvent)      

 

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Question 4 : (a) 

The following is the schedule of balances as on 31.03.23 extracted from the M/s RM & Co.

Particulars Dr. ₹ Cr. ₹
Bank charges 24,000  
Buildings 9,00,000  
Capital A/c   19,48,000
Carriage Outwards 30,000  
Cash at bank 39,000  
Cash in hand 21,000  
Discount allowed 36,000  
Discount received   24,000
Drawings 1,80,000  
Electricity Charges 33,000  
Freight on purchases 18,000  
Furniture & fixtures 3,21,000  
General office expenses 45,000  
Insurance Premium 82,500  
Interest on loan 35,000  
Loan   6,00,000
Printing and Stationery 27,000  
Purchase Returns   39,000
Purchases 21,30,000  
Rent for Godown 82,500  
Salaries 1,65,000  
Sales   35,50,000
Sales Returns 63,000  
Stock on 1.4.2022 9,30,000  
Sundry Creditors   6,45,000
Sundry Debtors 12,90,000  
Vehicles 3,00,000  
Vehicles running expenses. 54,000  
TOTAL 68,06,000 68,06,000

Prepare Trading and Profit & Loss Account for the year ended 31st March 2023 and the Balance Sheet as at that date after making provision for the following:

(i) Value of stock as on 31.03.2023 is ₹ 4,10,000. This includes goods returned by customers on 31st March, 2023 to the value of ₹ 22,000 for which no entry has been passed in the books.

(ii) Purchases include furniture purc 01.10.2022 for ₹ 30,000.

(iii) Depreciate:

  1. Building by 5%
  2. Furniture and Fixtures by 10%
  3. Vehicles by 20%

(iv) Sundry debtors include ₹ 35,000 due from Goku and Sundry creditors include ₹ 25,000 due to him

(v) Provision for bad debts is to be maintained at 4% of Sundry Debtors.

(vi) Insurance premium includes ₹ 42,000 paid towards proprietor's life insurance policy and the balance of the insurance charges cover the period from 1.05.2022 to 30.4.2023.

Answer  : 

M/s RM & Co.

Trading A/c for the year ended 31st March 2023

Particulars   Amount ₹ Particulars   Amount ₹
To Opening Stock   9,30,000 By Sales 35,50,000  
To Purchases 21,30,000   Less: Sale Returns (63,000)  
Less: Purchase Returns (39,000)   Less: Goods returned by customers on 31.3.23 (22,000) 34,65,000
Less: Furniture included in purchase (30,000) 20,61,000 By Closing Stock   4,10,000
To Freight on purchase   18,000      
To Gross Profit c/d (Bal. fig.)   8,66,000      
    38,75,000     38,75,000

Profit/Loss Account for the year ended 31st March, 2023

Particulars Amount ₹ Particulars Amount ₹
To Salaries 1,65,000 By Gross profit b/d 8,66,000
To Bank Charges 24,000 By Discount received 24,000
To Carriage outwards 30,000    
To Discount Allowed 36,000    
To Electricity charges 33,000    
To General expenses 45,000    
To Insurance premium (WN 1) 37,125    
To Interest on loan 35,000    
To Provision for doubtful debts (WN 3) 49,720    
To Printing and stationery 27,000    
To Rent for Godown 82,500    
To Vehicles running expenses 54,000    
To Depreciation (WN 2) 1,38,600    
To Net Profit transferred to Capital a/c 1,33,055    
  8,90,000   8,90,000

Balance Sheet of M/s RM & Co.

as at 31st March 2023

Liabilities   Amount ₹ Assets   Amount ₹
Capital 19,48,000   Building 9,00,000  
Add: Net Profit 1,33,055   Less: Dep. (45,000) 8,55,000
Less: Drawings (1,80,000)   Vehicles 3,00,000  
Less: Insurance Premium (42,000) 18,59,055 Less: Dep. (60,000) 2,40,000
Loan   6,00,000 Furniture & Fixture 3,21,000  
Sundry Creditors 6,45,000   Add: Addition included in purchase 30,000  
Less: Goku 25,000 6,20,000 Less: Dep. (WN 2) (33,600) 3,17,400
      Stock in Trade   4,10,000
      Sundry Debtors (WN 3)    11,93,280
      Cash in hand   21,000
      Cash at bank   39,000
      Prepaid insurance (WN 1)   3,375
    30,79,055     30,79,055

Working Notes :

(1). Insurance premium

 
Insurance premium as given in trial balance 82,500
Less: Personal premium (42,000)
  40,500
Less: Prepaid for 1 month [(40500/12) x 1] (3,375)
Transfer to P/L a/c 37,125

(2) Depreciation 

   
Building @ 5% on 9,00,000   45,000
Vehicles @ 20% on 3,00,000   60,000
Furniture & Fixtures    
3,21,000 @ 10% 32,100  
30,000 @ 10% for 6 months (Included in purchase) 1,500 33,600
Total   1,38,600

(3) Debtors

Particulars Amount ₹
Opening Balance 12,90,000
Less: Return by customer on 31.3.23 22,000
Less: Goku 25,000
  12,43,000
Less: Provision for doubtful debts @ 4% 49,720
  11,93,280

 

Question 4 : (b)

P, Q and R are the 3 partners in partnership firm. Partnership deed includes the following

(i) R is entitled to get salary of ₹ 10,000 p.a.

(ii) P, Q and R are to get interest @ 6% on their respective capital of ₹ 2,50,000; ₹ 1,50,000 and ₹ 1,00,000.

(iii) R is to get extra benefit of 10% of profit in excess of ₹ 50,000 after providing for (i) and (ii) mentioned above.

(iv) Q is entitled to 10% of profits after providing all the amounts in para (i), (ii) and (iii)mentioned above.

(v) The balance of profits will be shared by P. Q and R is ratio of 5: 3:2.

The profits for the year before providing above items are ₹ 3,50,000.

You are required to prepare Profit and Loss Appropriation Account.

Answer  : 

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Question 5 : (a) 

X, Y and Z were partners sharing profit and losses in the ratio of 5: 3: 2. Their Balance Sheet as on 31 March 2023 is as follows.

Balance Sheet as on 31 March 2023

Liabilities Amount ₹ Assets Amount ₹
Capital Accounts   Building 2,00,000
X 4,25,000 Machinery 3,50,000
Y 2,55,000 Debtors 1,95,000
Z 1,40,000 Stock 1,05,000
General Reserve 25,000 Bank 25,000
Trade Creditors 30,000    
  8,75,000   8,75,000

Y retired from the business on 1 April 2023 on the following terms:

(i) To appreciate building by 20% and to depreciate machinery by 5%.

(ii) Provision for doubtful debts is to create at 10%

(iii) Goodwill of the firm is valued at 1,60,000 and Goodwill is not to be raised in the books of accounts. New profit sharing ratio will be 5:3.

(iv) Entire sum payable to Y should be brought by X and Z in such a way to make their capital ratios according to new profit ratio. Balance of Y to be paid immediately.

You are required to prepare Revaluation Account,  Partners Capital Accounts and Balance Sheet after retirement.

Answer  : 

Revaluation Account

  (₹)   (₹) 
To Machinery 17,500 By Building 40,000
To Provision for doubtful debts 19,500    
To Partners’ Capital A/cs (Profit on revaluation)      
    X (5/10) - 1500      
    Y (3/10) - 900      
    Z (2/10) - 600 3,000    
  40,000   40,000

Partners’ Capital Accounts

  X (₹) Y (₹) Z (₹)   X (₹) Y (₹) Z (₹)
To Y's Capital A/c (WN 2) 20,000 - 28,000 By Balance b/d 4,25,000 2,55,000 1,40,000
To Bank A/c (settlement bal. fig.) (WN 1) - 3,11,400 - By General Reserve 12,500 7,500 5,000
To Balance c/d 4,19,000 - 1,17,600 By X's and Z's Capital A/c (WN 2) - 48,000 -
        By Revaluation A/c 1,500 900 600
  4,39,000 3,11,400 1,45,600   4,39,000 3,11,400 1,45,600
To Balance c/d (WN 4) 5,14,375 - 3,08,625 By Balance b/d 4,19,000 - 1,17,600
        By Bank A/c (bal. fig.) 95,375 - 1,91,025
  5,14,375 - 3,08,625   5,14,375 - 3,08,625

Balance Sheet after retirement

Liabilities (₹) Assets (₹) 
X's Capital A/c 5,14,375 Building (2,00,000 + 40,000) 2,40,000
Z's Capital A/c 3,08,625 Machinery (3,50,000 - 17,500) 3,32,500
Trade Creditors 30,000 Debtors (1,95,000 - provision 19,500) 1,75,500
    Stock 1,05,000
  8,53,000   8,53,000

Working Notes:

1. Bank A/c

  (₹) Assets (₹) 
To Balance b/d 25,000 By Y's Capital A/c 3,11,400
To X's Capital A/c 1,91,025    
To Z's Capital A/c 95,375    
  3,11,400   3,11,400

2. Calculation of gaining ratio

  X Y Z
Old Profit sharing ratio 5/10 3/10 2/10
New Profit sharing ratio 5/8   3/8
Gain 5/40   7/40

Gaining ratio = 5:7

3. Goodwill

Goodwill of the firm is valued at ₹ 1,60,000

Y's share = 1,60,000 x 3/10 = ₹ 48,000

to be provided by X and Z in the gaining ratio 5:7

X's share = 48,000 x 5/12 = ₹ 20,000

Z's share = 48,000 x 7/12 = ₹ 28,000

4. Capital of partners after Y's retirement

  (₹)
Balance of X and Z Capital (4,19,000 + 1,17,600) 5,36,600
Add: Amount required to pay to Y 3,11,400
  8,48,000
Less: Balance in Bank (25,000)
Total Capital 8,23,000
X's new capital balance = 8,23,000 x 5/8 5,14,375
Z's new capital balance = 8,23,000 x 3/8 3,08,625

 

Question 5 : (b) 

From the following transactions of a concern, prepare the Machinery Account for the year ending 31st Dec, 2022:

01.01.21 Purchased a second-hand Machinery for ₹ 2,00,000
01.01.21 Spent ₹ 50,000 on repairs for making it serviceable
30.06.21 Purchased additional new Machinery for ₹ 3,50,000
30.06.21 Installation charge of new Machine ₹ 15,000
01.04.22 Repairs and maintenance of Machinery ₹ 30,000
30.06.22 Sold second hand Machinery purchased on 01.01.21 for ₹ 1,55,000
31.12.22 Depreciate the Machinery at 10% per annum by WDV method

Answer  : 

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Question 5 : (c)

Prepare Triple Column Cash Book from the following transactions of G. Entreprise for the month of Jan 2023.

Date Particulars Amount ₹
01-01-2023 Cash in hand 14,500
  Cash at Bank 1,95,000
03-01-2023 Received from K  
  - Cash 7,300
  - Cheque 15,000
  Discount allowed to him 400
06-01-2023 Goods sold for cash 9,100
07-01-2013 Withdrew from bank by self-cheque 3,000
12-01-2023 Issued a cheque to B 10,590
  Discount received 410
14-01-2023 Received a cheque from R (in full settlement of her account ₹ 6,500) by cheque 6,350
17-01-2023 Withdrew from bank for personal use notes 15,000
18-01-2023 Paid electricity bill by cheque 5,000
20-01-2023 Cash purchases of stationary 1,200
31-01-2023 Deposit the entire cash in bank in excess of ₹ 10,000  

Answer  : 

Triple Column Cash Book

Dr.                 Cr. 
Date  Particulars Discount Cash  Bank  Date Particulars Discount Cash  Bank
2023   2023  
Jan. 1 To Balance b/d  - 14,500 1,95,000 Jan. 7 By Cash (C) - - 3,000
Jan. 3 To K's A/c 400 7,300 15,000 Jan. 12 By B's A/c 410 - 10,590
Jan. 6 To Sales A/c - 9,100 - Jan. 17 By Drawings - - 15,000
Jan. 7 To Bank A/c (C) - 3,000 - Jan. 18 By Electricity Bill - - 5,000
Jan. 14 To R's A/c  150 - 6,350 Jan. 20 By Stationery - 1,200 -
Jan. 31 To Cash (C) (excess cash deposited) - - 22,700 Jan. 31 By Bal c/d - 10,000 (given) 2,05,460
          Jan. 31 By Bank (Bal. fig.) (C)  - 22,700 -
    550 33,900 2,39,050     410 33,900 2,39,050

Note: 

(1) Discount allowed and discount received ₹ 550 and ₹ 410 respectively should be posted in respective Accounts in the ledger.

 

Question 6 : (a)

A Ltd issued 25000 equity shares of ₹ 100 each at a premium of ₹ 25 per share payable as follows:

On Application ₹ 50
On Allotment ₹ 50 including premium, and
On Final Call ₹ 25

Applications were received for 29000 shares. Letter of regret were issued to applicants for 4000 shares and shares were allotted to all other applicants.

Mr. A, the holder of 150 shares, failed to pay the allotment and call money, the shares were forfeited.

Show the journal entries and cash book in the books of A Limited.

Answer  : 

In the Books of A Ltd.

Journal Entries

Date Particulars   Amount (₹) Dr. Amount (₹) Cr.
  Bank A/c (29,000 X 50) Dr. 14,50,000  
     To Equity share Application  A/c      14,50,000
  (Being application money received on 29,000 shares @ ₹ 50 each)      
  Equity Share Application A/c (29,000 X 50) Dr. 14,50,000  
     To Bank A/c (4,000 X 50)     2,00,000
     To Equity Share Capital A/c (25,000 X 50)     12,50,000
  (Being application money on 25,000 shares @ ₹ 50 each transferred to Equity Share Capital Account and excess money refunded on 4,000 shares @ ₹ 50 each as per Board’s Resolution No……dated…)      
  Equity Share Allotment  A/c (25,000 X 50) Dr. 12,50,000  
     To Equity Share Capital A/c (25,000 X 25)     6,25,000
     To  Security premium A/c (25,000 X 25)     6,25,000
  (Being allotment money on 25,000 shares @ ₹ 50 per share including premium of ₹ 25 per share being made due as per Board’s Resolution No……dated….)      
  Bank A/c (24,850 X 50) Dr. 12,42,500  
     To Equity Share allotment A/c (24,850 X 50)     12,42,500
  (Being allotment money received on 24,850 shares @ ₹ 50 each)      
  Equity Share Final Call A/c  (25,000 X 25) Dr. 6,25,000  
       To Equity Share Capital A/c (25,000 X 25)     6,25,000
  (Being final call money on 25,000 shares @ ₹ 25 per share being made due as per Board’s Resolution No……dated….)      
  Bank A/c (24,850 X 25) Dr. 6,21,250  
     To Equity Share Final Call A/c (24,850 X 25)     6,21,250
  (Being final call money received on 24,850 shares @ ₹ 25 each)      
  Equity Share Capital A/c (150 X 100) Dr. 15,000  
  Security premium A/c (150 X 25) Dr. 3,750  
     To Share forfeiture A/c (150 X 50)     7,500
     To Equity Share allotment A/c (150 X 50)     7,500
     To Equity Share Call A/c (150 X 25)     3,750
  (Being forfeiture of 150 shares for non-payment of allotment money and final call money as per Board’s Resolution No….dated…)      

Cash Book (Bank Columns)

Particulars Amount (₹) Particulars Amount (₹)
To Equity Share Application  14,50,000 By Equity Share Application  2,00,000
To Equity Share Allotment A/c 12,42,500 By Balance c/d 31,13,750
To Equity Share Final Call A/c 6,21,250    
  33,13,750   33,13,750

 

Question 6 : (b)

What are the sub-fields of accounting?

Answer  : 

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