Pass

Study
&60
1 . Mat 2 -

10
.

Min

Theory + True False +

Imp Ques
.
2 PYRs + RTPs + MTPs
 Most Important Questions
Inventory – PYQ May 2025
A trader prepared his final accounts on 31st March, each year. Due to some unavoidable
reasons, no inventory taking could be possible till 15th April,2025 on which date total
cost of goods in his store came to Rs.1,50,000. -

The following facts were established between 31st March and 15th April, 2025:
Sales (Credit) Rs. 70,000
795 19000 76000
,

000 - =

Sales (Cash) Rs. 25,000

Purchases (Cash) Rs. 15,000
Purchases (Credit) Rs. 25,000 750 000
,

D -

I I
On 25th March, goods of the sale value of Rs. 30,000 were sent on sale or return basis
to a customer, the period of approval being four weeks. He returned 25% of the goods
Lignore
~
on 12th April, approving the rest; the customer was billed on 25th April.

o
-
MThe trader had also received goods costing Rs. 10,000 in March, for sale on consignment
basis. 50% of the goods had been sold by 31st March and another 25% by 15th April.
These sales are not included in above sales. -
-
Goods are sold by the trader at a profit of 20% on sales.
-
You are required to ascertain the value of inventory as on 31st March, 2025.
-

-
Purch
+
coys-
150, 000

Add
: Cost
of goods Sent on
App. 18000
[(30 000 X75 1)
-
.
.

Sale value 22508

zyp (4500 (2500

Less Goods Res cons
:
on
t 76000

sto
-
40 000
,

-
 BRS – PYQ May 2025
Prepare the Bank Reconciliation Statement of M/s. XYZ Brothers on 31st March, 2025
from the particulars given below:
--
- O
(i) The Bank Pass Book had a debit balance of Rs. 62,500 on 31st March, 2025.
(ii) A cheque worth Rs. 1,000 directly deposited into Bank by customer but no entry
- - -
was made in the Cash Book.
-
35000
(iii) Out of cheques issued worth Rs. 85,000. Cheques amounting to Rs. 50,000 only
-
were presented for payment till 31st March, 2025.
-
⑧
(iv) A cheque for Rs. 10,000 received and entered in the Cash Book but in was not sent
to the Bank.
- -
(v) Cheques worth Rs. 50,000 had been sent to Bank for collection but the collection
1
was reported by the Bank as under.
-

Tis
(1) Cheques collected before 31st March,2025, Rs. 35,000.
(2) Cheques collected on 10th April, 2025 Rs. 10,000.
(3) Cheques collected on 12th April, 2025 Rs. 5,000.
(vi) The Bank made a direct payment of Rs. 1,500 which was not recorded in the Cash
-
Book.
(vii) Interest on Overdraft charges by the bank Rs. 4,000 was not recorded in the Cash
-
Book.
↓ ~ Cash
- (viii)Bank charges worth Rs. 200 have been entered twice in the book whereas
-

Insurance charges for Rs. 175 directly paid by Bank was not at all entered in the Cash
Book. -

O
-

(ix) The credit side of bank column of Cash Book was under cast by Rs. 5,000.
-

Payment
↑
 35675 98700
- -
-

t -

PB 62500
-
-
1000

35000

10 000
,

15000

1500

4000
200

175

5000

Cr bal B 63025
.
as
per -

98700
-

98700
Incomplete Records – RTP Sep 2025

Cr

-
To Disc Rec

Cr to BIP
.

-
O .

- -

X
- -
Debtor Dr .

Bank
Dishonoured To
X X - -
-
-
- -

- -
-

Debtor Als
To BIRAK -

Cr Cash C Cash
sales sales
Debtor Dr .

To Creditor
↓ creditor
Debtor
-
-
#N Debors As

To bal told 157500 By BIR Ac 105758

To BIR(0ish] 11258 By Cash Als 351008

To Creditor Alc 6750

By Disc . all 20250

To Bank 4500
By Sales Ret 24750

To Sales As 506258
↑
Iba1 fig)
.

bal old
- by 184500
-
-

Creditors Al

To BIP As 11 P2JO
by balbid 182250
To Cash 387008
By Debtors 6150

To BIR Alc 60 750

By purch
.

To Disc Res 15758 607500

Ibalfig C
-

To baled 2. 13758 =
-
-
Total Sales = 506250 + 379125

Total Purchase :
" 607500 + 445050
 ROE – MTP Sep 2025 -
Mr. Kamal’s trial balance as on 31st March, 2025 did not agree. The difference was put
to a Suspense Account.
-
3rd Stass
F
During the next trading period, the following errors were discovered:
-
(i) The total of the Purchases Book of one page, Rs. 15,615 was carried forward to the
next page as Rs. 16,551. + 936
+ 180 ~
(ii) A sale of Rs. 462 was entered in the Sales Book as Rs. 642 and posted to the credit
-
of the customer.
PIR--G . ~ SIR-Dr
(iii) A return to creditor, Rs. 5,420 was entered in the Returns Inward Book; however,
-
the creditor's account was correctly posted. LCU .

· Cr
.
-
(iv) Cash received from Sita, Rs. 1,420 was posted to debit of Geeta.
-
-
(v) Goods worth Rs. 1,400 were dispatched to a customer before the close of the year
but no invoice was made out.
SP -
(vi) Goods worth Rs. 3,200 were-
sent on sale or return basis to a customer and entered
-
in the Sales Book at the close of the year, the customer still had the option to return the
goods. The gross profit margin was 20% on Sale. Dr

H
.

(vii) Rs.
- 500 due from Mr. Sam was omitted to be taken ·to the trial balance.
(viii) Sale of goods to Mr. Manoj for Rs. 16,000 was omitted to be recorded.
You are required to give journal entries to rectify the errors in a way so as to show the
current year's profit or loss correctly (10 Marks)

capa-
sheet ~
By CapA X

~ befig-opbal
Dr .
Cre
462 642

Dr G.
I .

SuspAk 936

To
P & LAd All 936

.
2
POLAdj Al Or . 180
Debtor Dr - 1104

To
Sup Al 1284

.
3
Sup Dr .
10840
To
p & Lady Al 10sU0

4 Sup A. Or 2800
To Geeta 1420
To Sita 1428

.
5 Debtor Or 1400

To p & LAdj Ale 1400

.
6 P& Or
a .

LAdjAk 3200

To Debtors 3200

b .

Closingstock Or 2560

To p & LAb Alc 2560

T Mr
.
Sam Or 500
500
To
Sup Ac
S Dri 16000
.

Manoj
16000
To
PALAdy Al
.
9

P&
LAdj As
WN
=

By hasp
Partnership – PYQ Sep 2024
X, Y and Z were in a firm sharing profit and loss as 3: 2: 1. Their Balance Sheet on 31st
March, 2024 was as follows:

old go
#
X
J write ofd
Old Ratio

-Part
=
-
-
X
~ ,7000
=

>
- Li -
10 %: 5000
-- ~ >
-

00
00
-

Z retired on the above date on the following terms:

-

(1) Goodwill of the firm was valued at Rs. 60,000. _

GoS
↓ 10
(2) Value of patents was to be reduced by 20% and that of machinery to 90%.
(3) Provision for doubtful debts was to be raised to 10%.
(4) Liability on account of Provident fund was only Rs. 6,000.~~

2
(5) Liability for workmen compensation to the extent of Rs. 6,000 is to be created.
(6) Z took over the investment at market value.
-
-
(7) Amount due to Z is to be settled on the following basis- 50% on retirement, 50%
O-
of the balance within one year and the balance by a bill of exchange (without interest)
at 3 months.
-

10
S
.

0005000 -
You are required the following: 50 %
(i) Show entries for the treatment of goodwill,
(ii) Prepare Revaluation Account,
(iii) Partner Capital Account, &
Bank
Want P

(iv) Balance Sheet. (10 Marks)

1 .
In 2600
To Rece 2000

I Or 27600
cap
>
-

To Inv .
27600
-
-
Dia
 10668
-

O
E
·
 BRS – MTP Sep 2025 ( - 3

-
On 30th June. 2025, Cash Book of Mr. Gaurav (Bank Column of Account No. 1) shows
a Bank Overdraft of Rs. 1,97,400. On going through the Bank Pass book for reconciling
the Balance, she found the following:
-

(a) Out of cheques drawn on 26th June, those for Rs. 14,800 were cashed by the
bankers on 2nd July. issue
ICBX + Dish X
-
(b) A crossed cheque for Rs. 3000 given to Abdul, was returned by him on 1st July,2025
and a bearer cheque was issued to him on the same date.
-

(c) Cash and cheques amounting to Rs. 13,600 were deposited in the Bank on 29th
-
June., but cheques worth Rs. 5,200 were cleared by the Bank on 1st July.,
-
-
and one
-

cheque for Rs. 1,000 was returned by them as dishonoured on the latter date. 5200- -

1000
(d) According to Gaurav’s standing instructions, the bankers have on 30th June, paid
(3)Rs. 1,280 as interest to his creditors, paid quarterly premium on his policy amounting
-

to Rs. 640 and have paid a second call of Rs. 2,400 on shares held by his and lodged 3800
-
-
-

with the bankers for safe custody. They have also received Rs. 600 as dividend on hist
4360 shares and recovered an Insurance Claim(of ]
Rs. 3,200, as their charges and commission t
[ charged on the above being Rs. 400. On receipt of information of the above
-
=

transaction, he has passed necessary entries in his Cash Book on 1st July.
-

- ↑ ~ deposit -
* (e) Bankers seem to have given a wrong credit for Rs. 2,000 paid in by him in No. 2
account and wrong debit in respect of a cheque for Rs. 1,200 drawn against her No. 2
-
account. ()
Prepare Bank Reconciliation Statement. (10 Marks)
 15 shares $6
~

Company Accounts – MTP Sep 2025 2) 5 Marks

The Balance Sheet of XYZ Ltd. as at 31st March, 2023 inter alia includes the following
information:
~ -
- > fully P
1,00,000, 8% Preference Shares of Rs. 100 each, Rs. 70 paid up 70,00,000
2,00,000 Equity Shares of Rs. 100 each fully paid up 2,00,00,000
Securities Premium - 10,00,000
Capital Redemption Reserve ↑ 40,00,000
General Reserve ~ 1,0000,000
Bank - 30,00,000
Under the terms of their issue, the preference shares are redeemable on 31st March,
-2024 at 5% premium. In order to finance the redemption, the company makes a rights
issue of 1,00,000 equity shares of Rs. 100 each at Rs. 110 per share, Rs. 20 being payable
on application, Rs. 35 (including premium) on allotment and the balance on 1st
January, 2025. The issue was fully subscribed and allotment made on 1st March, 2024.
The money due on allotment were duly received by 31st March, 2024. The preference
shares were redeemed after fulfilling the necessary conditions of Section 55 of the
Companies Act, 2013.
You are asked to pass the necessary Journal Entries. (Ignore date column).
100 + 10

20 55
-

35 X
125410]
-
See
Ex
of pref shares redeemed 100 00 000
=
,
,

(100 .000 x100)

7 Ev of ep .
Share issued ,
til =
45 ,
00 000 ,

31st Mar 24 (100 000 x45)

, ,

PR 55 00 000
, ,
 (WN1)

- E
*
T
-

-
 Partnership – MTP Sep 25
M/s. Wellore is a partnership firm with the partners X, Y and Z sharing profits and losses
-

in the ratio of 3:2:5. The balance sheet of the firm as on 30th June, 2025 was as under:

J 20 000
.

230 .000
=>
119250
-
-
-

~
It was mutually agreed that Y will retire from partnership and in his place P will be
admitted as a partner with effect from 1st July, 2025. For this purpose, following
adjustments are to be made:

-
(a) Goodwill of the firm is to be valued at Rs. 15 lakhs due to the firm's location
advantage but the same will not appear as an asset in the books of the reconstituted
firm.
↓,57 .
↓ Lot
(b) Building and Plant & Machinery are to be valued at 95% and 80% of the respective
-

balance sheet values. Investments are to be taken over by the -retiring partner at Rs.
2,30,000. Trade receivables are considered good only upto 85% of the balance sheet
~

figure. Balance to be considered bad. X

-
-
(c) In the reconstituted firm, the total capital will be 20 lakhs, which will be contributed
-
by X, Z and P in their new profit sharing ratio, which is 3:4:3. -
(d) The amount due to retiring partner shall be transferred to his loan account.
You are required to prepare Revaluation Account and Partners' Capital Accounts after
reconstitution, along with working notes. (10 Marks)
WN Old Share -
New Share
=

Y NL
8 -

T :

Y Sac
To = .

2
-to =
to So .

P
T Gain
Pcop Or .
450.000

To Y 300 000
cap .

150 000
cap Al
To I ,
 Cro

To Bank
=
By Bank
Add
- -

20 00 000
, ,

X-
Bx20Lac
Glac

2-SL
P
- GL
Depreciation - PYQ Jan 2025
A firm purchased a second-hand machinery on April 1, 2021 for Rs. 15,00,000
subsequent to which Rs, 2,00,000 were spent on its repairs and installation. On
October 1, 2021 another machinery was purchased for Rs. 9,00,000 and cost of
installing the machine in a new plant is Rs. 20,000. The firm also shifted the machinery
purchased on April 1, 2021 to the new plant and incurred freight of Rs. 10,000. They
adopted a policy of charging depreciation @ 12% per annum on diminishing balance
method. On April 1, 2023 it was decided to change the method and rate of depreciation
to straight line basis. On this date, the remaining useful life was assessed as 5 years for
both the machines purchased with no scrap value. On October 1, 2023 the first machine
become outdated and sold for Rs. 2,50,000. On the same date, another machinery was
purchased for Rs. 8,50,000. The estimated useful life of the machine is 10 years and
residual value is Rs. 30,000. You are required to prepare the machinery account for the
year ending March 31, 2024. (10 Marks)
Company Accounts – PYQ May 2025

-
-
-

28s000
=
-
is 90 00 000
x
.
.

-
-

X
~-
&
Sola
- ↑

55LaG
-+ 480 000
,

⑦-
-
-

- c
- -

-
-
100-118
-

Bank 5280 000

.
240 000
.

Xt hosh
To Math cap 4800 000 .

ToSee .

Pum Al 40000
Bills of Exchange – PYQ Jan 2025
- BIRI BIR2
Mr. A accepts two bills of exchange on June 1, 2024 for Rs. 1,50,000 and Rs. 60,000
-

O ~
drawn on him by Mr. B. The bill of exchange for Rs. 1,50,000 is for two months while -

the bill of exchange for Rs. 60,000 is for three months. Mr. B got the first bill discounted
with the bank for Rs. 1,49,000 on June 3, 2024. On August 2, 2024 Mr. A requested
Mr. B to cancel both the bills and drew a new bill on him with the combined amount
-
of both the bills along with interest @ 12% per annum for a period of two months.
Before the due date of the renewed bill on September 3, 2024, Mr. A becomes insolvent
and only 40 paise in a rupee could be recovered from his estate. You are required to
give the journal entries in the books of Mr. B. Mr. A 214200 ~
3Sep
Junel -

BIRI-4thAug- To BIR(3) 214200

BIR2
Sep-
.
4th Bank Dr 85680
.

Bad debt 128520

BanREPr T149000
A 214200 To
.

Disch Dr 1000 .
.

To
BIRIA)s 150 000
.

# Mr. .

A Dr . 000
150

To Bank Al , 150 000 ,

Mr A .
Dr .
60 000 ,
-

To BIR 2 Al ,
60 000
.

# 210 000
X1X 4
-

, =

>
- BIR(3) Dr .
214200
To Mr . A 210 . 000
To Int Ak 4200
Bill of Exchange – RTP May 2025 -
On October,1 2024, Samar sells goods to Amar for Rs. 25,000 plus IGST @ 18% and
=
draws two bills of exchange on him; the first bill for Rs. 15,000 for 2 months and second
bill for the balance for 3 months. Amar accepts and returns these bills to Samar. Both &

the bills are sent to the bank for collection on 1st October, 2024. In due course, Samar
receives the information from the bank on the due date of the respective bill that the
bill for Rs. 15,000 has been duly met and the other bill has been dishonored. Noting
charges paid on the dishonor of second bill are Rs. 500. Pass the journal entries in the
-
books of Samar along with narration.
-
29500
1 .

AmarTo Dr .

Sales Ac 25000
To
SYST output 4500

2 . BIR 1 N
O 15000

BIR 2 Dr 14500

To
Amar 0
#0

L
 NPO – RTP May 2025

, FBIsX - A
gilt 2&E
X
925
-

- BIs
- -
4500 =

36000
-

os, ~

- cost of St Cons
-

-
O -

- -

-
#N Creators Als
Ct .

Sobal DId
/Adv ) .
by balbld 39000

To Bank 134558 By purch (bal fig)

.
145050-
60
To bal old 000
by bel old 10500
CAdv paid)
,

-
= -

Purch-c
op St + .
Stock
F 1500 & 145050 -
45000
107556
-

SA
To as at
beg By Advat beg
&A
To 2430 000 ,

By Bank 2286000

To
Advat the end 5500 By ols at the end 202500
-
-
 20 000 X30 %
.
= 6000100
-
Redemption of Debentures – PYQ Jan 2025 600 000/20 = 30 000
- -
.
.

-
A company had issued 20,000, 8% partly convertible debentures of Rs. 100 each on
-

April 1, 2023. The debentures are due for redemption on June 1, 2024. The terms of
issue of debentures provided that 30% of the debentures will be converted into equity
shares (Nominal Value Rs.10) at a price of 20 per share and remaining will be
- #4000
&

redeemable at a premium of 5%.-

(i) Calculate the number of equity shares to be allotted to the debenture holders at the
time of conversion.
(ii) Give the necessary journal entries related to the conversion and redemption of
debentures assuming that the company has created the Debenture Redemption Reserve
and also invested required amount for redemption of debentures at the time of issue.
Debenture Redemption Reserve Investment are sold at par value.
-

DRR : 14000 X
X00
-

= 140 ,
000 -

DRRI 14000 X100X15

Too
=
210 . 000

>
-
 8 %. Deb Dr
>
- I .

Al . 20. 00 000
,

Trem on Red Dr .

70 000
,

(14000 X 5)
To Oc holder Af 2010000
-
-

.
2 Debentureholder Dr .

600 000 ,

130 000 X10) To Eg Sh

. .

bei Prem.
.

cap 300 000 ,

(50 000 X10) To

.
300 000
.

.
3 1 .
Bank A . Dr 210 . 000
To DRRI 210 000
.

2 .
Deb holder On 1470. 000
To Bank
Af 1470 008 ,

3
DRR Dr 140
.

.
000
To
You Res Al
, 140 000 .

4 . D&L 70 000 .

PromonRed
To 10 000
.
Redemption of Debentures – Sep 2024
XYZ Ltd. an unlisted company issued 6000, 12% debentures of Rs. 100 each at a
discount of 5% on 01.04.2021. Interest is payable annually on 31st March every year.
The debentures are redeemable at premium of 10% in 3 equal annual installments
beginning from 31.03.2022. The company invested in specified securities for the
redemption of debentures. Entire loss on issue to be booked in the 1st year. You are
required to pass journal entries for all the 3 years. (10 Marks)
 ~
-

4400
-
- 1000
-

1
-
X
-

>
-

Debtor Dr . 4400
TO Bank Ac 4000
To Discell Ap . now

b) Drawings Dr .

To
Petty Cash Al
1 Cast Dr 3000
To Sales A .
3000

as Purch Af .
Dr . 19000
To Disc Rec , 200
To Bank Al 18800
(i) Or 1792
Charity .

.
G
purch 1600
-
To .

All
To
CyST Input 96
To
SYST Input 96
Journal – RTP May 2025
Prepare Journal Entries for the following transactions in the books of Harpreet:
i. Customer’s cheque for Rs. 4,000 returned dishonoured for insufficient funds in
his accounts. The customer had availed a cash discount of Rs. 400.
ii. Income tax liability of proprietor Rs. 8,500 was paid out of petty cash.
iii. Defective goods worth Rs. 5,000 are sold for 3,000.
iv. Purchase of goods from Sunny of the list price of Rs. 20,000. He allowed 5%
trade discount, Rs. 200 cash discount was also allowed for quick payment.
v. Purchased goods from Sarah industries for Rs. 50,000 plus CGST and SGST@6%
each.
vi. Goods given as charity costing Rs. 1,600, sale price Rs. 2,000. CGST and SGST
@ 6% each was paid at the time of purchase of such goods

X
-

-
- -

-
 Issue of Shares – MTP Sep 2025
Divis Pharma Limited issued 50,000 equity shares of Rs. 10 each payable as Rs. 3per
share on application, Rs. 5 per share (including Rs. 2 as premium) on allotment and Rs.
4 per share on call. All these shares were subscribed. Money due on all shares was fully

money and Y, holding 2000

O
received except from X, holding 1000 shares who failed to pay the allotment and call
shares, failed to pay the call money. All those 3,000 shares
- --
were forfeited. Out of forfeited shares, 2,500 shares (including whole of X's shares)
=
were subsequently re-issued to Z as fully paid up at a discount of Rs. 2 per share.
Pass necessary journal entries in the books of Divis Pharma limited. Also prepare Balance
Sheet and notes to accounts of the company. (15 Marks)

+
h
Dr.
EgSh Cap 13000 x10) 30 000 ·

1. .
.

Sec Dr 2000 . 3
prem 11000 x2)
.

=
-
-

- >
-

(3+2)
1,000 X9 ToCall in Arisar 17000 -
- 2000 Xy)
To
eg .
Sh
↓
.

fort All 15000

1000X3 = 3000

+ 2000 X6 = 12000
-

(2500x8) 20 000
>
- Bank Or ,

Sh .

fort (200x2) 5000

To
Eg Sh cap
.
25000

- Eq Sh .
.

ford 7000

To
Capa ,
7000
 * -

X (1000 - Y (2000
1500 Reissus
Am for
+ => 1000X3 :
3000
Ant for on 1500Sh
-
: 9000

7 Disc . 2000) Disc . (3000]

Cap Res . Tood

 Depreciation – MTP May 2025 -
-
1On 1st April,2024, Supervisor & Co. which depreciates its machinery @10% p.a. on
diminishing balance method, had Rs. 29,16,000 to the debit of Machinery Account. On
1st October, 2024, part of machinery purchased on 1st April, 2022 for Rs. 240,000 was
sold for Rs. 1,35,000. Also, a new machinery at a cost of Rs. 4,50,000 was purchased
on 1st October, 2024 and installed on the same date and installation charges being Rs.
24,000. The company changed the method of depreciation from diminishing balance
method to straight line method with effect from 1st April,2024. The rate of depreciation
remains the same. Show the Machinery Account for the year 2024-25. (10 Marks)

2916000 .

194700
Mr #

# 1/4)22 -

240 . 000

22 23 .

Dep -
(240003
31 3.
.
23 216000
23 24 .

Dep (21600)
31 3 24.
. 194400
L1 4 . . 14
>
 ~

Model Test Papers

Following information is provided for M/s. Vikram traders for the year ended 31st
March, 2024:
~
1800 000
,
-

To purch
~
-
J- Mof Sales
Dv 300 000
-
PIR -
.
.

- To Sales Ret
-
300. 00

Sales 30 00 000
.
.

To Trad
-

-
-
-

-
2) Final Accounts
-