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Practice Test Papers PTP.5

Practice Test Paper 3

1. Moonlight Ltd. bought back its own shares having nominal value of ` 10,00,000 at its
nominal value. Under which activity and how will this payment be shown in the Cash
Flow Statement? (1)

2. Top Securities Ltd., a company dealing in shares and other financial instruments declared
and paid final dividend of ` 5,00,000. Under which activity dividend paid will be shown
in Cash Flow Statement? (1)

3. Under which main-head and sub-head of the Balance Sheet will the following items
be shown?
(i) Share Application Money Pending Allotment

(ii) Workmen Compensation Reserve
(iii) Patents
(iv) Debentures (4)
4. (i) Calculate Gross Profit Ratio based on the following information:

Cash Revenue from Operations: 25% of Total Revenue from Operations; Purchases:
` 2,76,000; Credit Revenue from Operations: ` 2,40,000; Excess of Closing Inventory
over Opening Inventory: ` 20,000.

(ii) Current Ratio of Z Ltd. is 1 : 1 at present. In future the company wants to improve
this ratio to 2 : 1. Suggest any two accounting transactions for improving the
Current Ratio. (4)
5. XYZ Ltd. is in the business of readymade garments, decided to take part in Swachh
Bharat Abhiyan by educating the people about the benefits of cleanliness from the
health point of view. Its Comparative Balance Sheet as at 31st March, 2023 and 2024
was as follows:

Particulars Note 31st March, 31st March, Absolute Change Percentage Change
No. 2023 2024 (Increase/Decrease) (Increase/Decrease)
` ` ` %
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 15,00,000 20,00,000 5,00,000 33.33
(b) Reserves and Surplus 4,00,000 5,00,000 1,00,000 25.00
2. Non-Current Liabilities
Long-term Borrowings 27,00,000 25,00,000 (2,00,000) (7.41)
3. Current Liabilities
(a) Short-term Borrowings 3,00,000 4,00,000 1,00,000 33.33
(b) Trade Payables 80,000 1,00,000 20,000 25.00
Total 49,80,000 55,00,000 5,20,000 10.44