Time: 3 Hours | Maximum Marks: 100
Instructions:
- Attempt all questions.
- Show all workings clearly.
- Figures in ₹ unless otherwise stated.
- Marks are indicated against each question.
Section A – Conceptual & Theory (Short / Medium Questions)
Q1 [10 Marks]
Explain the difference between IFRS and AS (Accounting Standards) in India. Include examples where the treatment of revenue recognition differs.
Q2 [10 Marks]
The following balances are extracted from the books of a company:
- Cash ₹50,000, Bank ₹1,00,000, Sundry Debtors ₹2,50,000, Stock ₹1,20,000, Creditors ₹1,80,000.
Prepare a Balance Sheet as per AS 1 and AS 4 adjustments if necessary.
Q3 [10 Marks]
Write journal entries for the following transactions in the books of a company:
- Issue of 5,000 shares of ₹10 each at a premium of ₹2.
- Calls in arrears of ₹1,000 received.
- Forfeiture of 500 shares issued at ₹12 each, on which ₹8 was paid.
Section B – Practical / Numerical Questions
Q4 [15 Marks] – Issue and Redemption of Debentures
XYZ Ltd. issued 1,000 8% debentures of ₹100 each at par on 01-04-2025. On 31-03-2026, interest was due. Pass necessary journal entries for issue, interest, and redemption of 50% debentures at a premium of 5% on 31-03-2027.
Q5 [10 Marks] – Valuation of Goodwill
From the following information, calculate goodwill of a firm using 3 years’ purchase of super profits method:
- Average profit = ₹2,50,000
- Normal profit = ₹1,80,000
- Capital employed = ₹10,00,000
Q6 [10 Marks] – Accounting for Share Capital
A company issued 10,000 shares of ₹10 each at a premium of ₹5. The amount received was:
- Application money ₹4 per share
- Allotment ₹6 per share
- Call ₹5 per share
Prepare journal entries and ledger accounts for the issue of shares.
Q7 [15 Marks] – Partnership Accounts
A and B are partners sharing profits in the ratio 3:2. C is admitted on 01-04-2025. The following adjustments are made:
- C brings ₹1,00,000 as capital for 1/4th share in profits.
- Revalue assets: Stock ₹10,000, Building ₹50,000, Liabilities ₹20,000.
Prepare revaluation account, partners’ capital accounts, and balance sheet after C’s admission.
Q8 [10 Marks] – Accounting for Companies
Prepare profit and loss appropriation account of a company showing:
- Net profit ₹3,00,000
- General Reserve 10% of profit
- Dividend 12% on ₹5,00,000 equity share capital
Q9 [10 Marks] – Depreciation Accounting
A machine was purchased on 01-04-2022 for ₹2,50,000. Depreciation is to be provided at 10% p.a. using:
a) Straight line method
b) Written down value method
Q10 [10 Marks] – Accounting for Branch Accounts
Prepare Branch Account (Debtors System) from the following:
- Goods sent to branch ₹50,000
- Expenses incurred at branch ₹5,000
- Cash received from debtors ₹40,000
- Branch stock at year-end ₹12,000
| Q. No | Solution / Explanation |
|---|---|
| Q1 [10] | Difference between IFRS and AS (India): – Revenue recognition: IFRS 15 recognizes revenue when control passes; AS 9 recognizes on transfer of significant risks & rewards. – Inventory: IFRS allows reversal of write-down; AS 2 does not. – Leases: IFRS 16 treats almost all leases as finance; AS 19 differentiates operating vs finance leases. – Disclosure: IFRS requires more extensive disclosure of judgments and assumptions. |
| Q2 [10] | Balance Sheet (simplified): Assets: Cash ₹50,000, Bank ₹1,00,000, Sundry Debtors ₹2,50,000, Stock ₹1,20,000 → Total ₹5,20,000 Liabilities: Creditors ₹1,80,000, Share Capital / Reserves (balancing figure) ₹3,40,000 → Total ₹5,20,000 |
| Q3 [10] | Journal Entries: 1. Share issue: Dr Bank ₹60,000; Cr Share Capital ₹50,000; Cr Share Premium ₹10,000 2. Calls in arrears received: Dr Calls in arrears ₹1,000; Cr Bank ₹1,000 3. Forfeiture: Dr Share Capital ₹4,000; Cr Share Forfeited Account ₹4,000 |
| Q4 [15] | Debenture Accounting: – Issue: Dr Bank ₹1,00,000; Cr 8% Debenture A/C ₹1,00,000 – Interest: Dr Interest Expense ₹8,000; Cr Bank ₹8,000 – Redemption (50% at 5% premium): Dr 8% Debenture A/C ₹50,000; Dr Loss on Redemption ₹2,500; Cr Bank ₹52,500 |
| Q5 [10] | Goodwill (Super Profits Method): Super Profit = Average Profit – Normal Profit = 2,50,000 – 1,80,000 = 70,000 Goodwill = Super Profit × No. of years’ purchase = 70,000 × 3 = ₹2,10,000 |
| Q6 [10] | Journal Entries for Share Issue: – Application: Dr Bank ₹40,000; Cr Share Application ₹40,000 – Allotment: Dr Share Application ₹40,000; Cr Share Capital ₹60,000; Cr Share Premium ₹20,000 – Call: Dr Share Call ₹50,000; Cr Bank ₹50,000 |
| Q7 [15] | Partnership Admission Accounts: – Revaluation: Stock ↑ ₹10,000 → Dr Asset ₹10,000; Cr Revaluation A/C ₹10,000 Building ↑ ₹50,000 → Dr Building ₹50,000; Cr Revaluation A/C ₹50,000 Liabilities ↑ ₹20,000 → Dr Revaluation A/C ₹20,000; Cr Liabilities ₹20,000 – Profit transferred to old partners in old ratio (3:2) – C brings ₹1,00,000 → Dr Bank ₹1,00,000; Cr C’s Capital ₹1,00,000 – Adjust old partners’ capital for new ratio → Final Balance Sheet prepared |
| Q8 [10] | P&L Appropriation Account: Net Profit ₹3,00,000 General Reserve 10% of 3,00,000 = ₹30,000 Dividend 12% on ₹5,00,000 = ₹60,000 Remaining balance transferred to retained earnings = ₹3,00,000 – 30,000 – 60,000 = ₹2,10,000 |
| Q9 [10] | Depreciation: a) Straight Line: ₹2,50,000 × 10% = ₹25,000 p.a. b) Written Down Value: Yr1: 2,50,000 × 10% = 25,000 → Book Value = 2,25,000; Yr2: 2,25,000 × 10% = 22,500 → Book Value = 2,02,500 |
| Q10 [10] | Branch Account (Debtors System): Dr Branch A/C: To Goods Sent ₹50,000 To Expenses ₹5,000 Cr Bank (cash remitted) ₹40,000 Cr Branch Stock (closing) ₹12,000 Difference = Profit/Loss on Branch ₹3,000 (Balancing figure) |
Disclaimer
This mock test paper is an original educational resource created for practice purposes only. The questions and solutions are inspired by the CA Intermediate exam pattern and previous year trends, but are not taken from or affiliated with the Institute of Chartered Accountants of India (ICAI). This content is intended solely for academic practice and learning.