GURUKUL INDEPENDENT PU COLLEGE – KALABURAGI

Answer Key – Accountancy – Mar 2024 Examination

1 b) Two persons
2 b)3:1
3 a)70,000
4 d) 12 Months
5 b) Horizontal analysis
6 Remains Fixed
7 Death
8 Creditors
9 Capital Reserve
10 Inflows & Outflows
11 a) ii b) iv c) v d) iii e) i
12 Court Order, After expiry of term etc.
13 False
14 In dissolution partnership firm business is closed in dissolution of partnership the
business is continued.
15 Inventory, Debtors, cash etc
16 Earning Per Share
17 Name and address of firm, Name and address of partners, Profit sharing ratio etc.
18 Partners Capital A/c – Dr xx
To Realisation Ac/c xx
(Being assets taken over by partner)
19 Calls in arrears are the calls made but not received.
20 Financial Statements are the basic and formal annual reports through which
corporate management communicates financial information to its owners and
various other external parties
21 a- Helps in balancing cash flows.
b- Enhances the comparability of the reporting of operating performance."
22 Calculation of Interest on drawings of Mr Surya under product method
Date of
drawings Amount of Drawings O/s Months Product
30/6/2022 4,000 09 36,000
01/11/2022 12,000 05 60,000
31/12/2022 8,000 03 24,000
1/2/2023 4,000 02 8,000
Total Product 1,28,000
Interest on Drawings = Total Product x Rate / 100 x 1/12
=1,16,000 x 12/100 x 1/12 =Rs.1,280
23 Calculation of Sacrifice Ratio of Sanju and Manju
Gain Ratio = New Ratio – Old Ratio
Sanju = 5/8 – 3/10 = 13/40
Manju = 3/8 – 2/10 = 7/40
Hence Sacrifice Ratio = 13:7
24 GEETA'S CAPITAL ACCOUNT
Particulars Rs. Particulars Rs.

Balance b/d 60,000

By Salary to Geeta
 36,000

To Rathna's Executor A/c 140,100 By Seeta Capital A/c 18,000

( 84000 x 3/10 x 5/7)
By Kavita Capital A/c

( 84000 x 3/10 x 2/7) 7,200

Profit & Loss suspense A/c 13,500

( 60,000 x 9/12 x 3/10)

Interest on Capital 5,400

(60,000 x 12% x 9/12) )

140,100 140,100
-
GEETA'S EXECUTOR ACCOUNT
Particulars Rs. Particulars Rs.

To Balance c/d 140,100 By Geeta's Capital A/c 140,100

140,100 140,100
25 In the books of __
STATEMENT OF PROFIT OR LOSS
For the year ended 31.03.2023
As per Schedul 3 of Co. Act 2013
Particulars Note Amount
No. Rs.
I Revenue from operations 800,000
II Other Income -
III Total Revenue (I+II) 800,000
IV Expenses
Purchase of stock in trade 200,000
Employee benefit expenses 1 60,000
Other Expenses 2 40,000
Total Expenses 300,000
V Net Profit Before Tax (III-IV) 500,000
VI Income Tax 150,000
VII Net Profit After Tax (V-VI) 350,000
26 Calculation of cash flow from Operating Activities
Particulars Amount
Net profit as per P& L A/c 600,000
Add Depreciation 100,000
 Add Loss on sale of old machinery 40,000

Cash flow before WC changes 740,000

Add Decrease in current asset 40,000
Less Decrease in current liability (20,000)
Cash flow from operating activities 760,000
27 REVALUATION ACCOUNT
Particulars Rs. Particulars Rs.
To Provision for LC 700 By Building 10,000
To Motor Car A/c 3,000
To Stock A/c 4,800

To Partners Capital A/c 1,500

Anita 1000
Sunita 500
10,000 10,000

OLD PARTNERS CAPITAL ACCOUNT

Particulars Anita Sunita Particulars Anita Sunita
To Cash A/c 10,000 5,000 By Balance b/d 80,000 60,000
By Reserve Fund 12,000 6,000
To Balance c/d 103,000 71,500 By Revaluation A/c 1,000 500
By Pandit's Capital A/c 20,000 10,000

113,000 76,500 113,000 76,500

VINUTA CAPITAL ACCOUNT

Particulars Rs. Particulars Rs.
To Anita Cap A/c 20,000 By Cash A/c 70,000
( Capital + Goodwill)
To Sunita Cap A/c 10,000

To Balance c/d 40,000

70,000 70,000
 Balance Sheet As on 01.04.2017
Liabilities Rs. Assets Rs.
Bills Payable 6,000 Cash 63,000
Sundry Creditors 16,000 Debtors 30,000
Provision for LC 700 Stock 43,200
Furniture 8,000
Capitals Buildings 66,000
Anita 103,000 Motor Car 27,000
Sunita 71,500
Vinuta 40,000
237,200 237,200

28 REALISATION ACCOUNT
Particulars Rs. Particulars Rs.
To Debtors 50,000 By Creditors 20,000
To Stock 30,000 By Bills Payable 40,000
To Furniture 20,000 By Bank loan 20,000
To Machinery 30,000
To Building 90,000 By Bank A/c
Debtors 52,000
To Bank A/c Stock 39,000
Crediors 20,000 Machinery 24,000
Bills Payable 40,000 Building 80,000 195,000
Bank Loan 20,000 80,000
By Shilpa Capital A/c 12,000
To Bank A/c 3,000
By Partners Capital A/c
Shilpa 8000
Amruta 8000 16,000
303,000 303,000
PARTNERS CAPITAL ACCOUNT
Particulars Shilpa Amruta Particulars Shilpa Amruta
Realisation A/c 12,000 Balance b/d 70,000 70,000
Realisation A/c 8,000 8,000 By Reserve Fund 10,000 10,000

Bank A/c 60,000 72,000

80,000 80,000 80,000 80,000

BANK ACCOUNT
Particulars Rs. Particulars Rs.
 Balance b/d 20,000 Realisation A/c 80,000
Realisation A/c 3,000
Realisation A/c 195,000 Shilpa Cap A/c 60,000
Amruta Cap A/c 72,000
215,000 215,000
29 In the Books of
JOURNAL ENTRIES
Amount Amount
Sl.No. Particulars LF (Dr) (Dr)
1 Bank A/c Dr 1,600,000 -
To Equity share application A/c 1,600,000
2 Equity share application A/c Dr 1,600,000
To Equity share Capital A/c
3 Equity share allotment A/c Dr 3,200,000
To Equity share Capital A/c 2,400,000
To Securities Premium A/c 800,000
4 Bank A/c Dr 3,200,000
To Equity share allotment A/c 3,200,000
5 Equity share first & final A/c Dr 4,000,000
To Equity share Capital A/c 4,000,000
6 Bank A/c Dr 3,500,000 -
Equity share first & final A/c 3,500,000
7 Equity share capital A/c Dr 1,000,000
To Forfeited shares A/c 500,000
To Equity share first & final A/c 500,000
8 Bank A/c Dr 800,000 -
Forfeited Shares A/c Dr 200,000
To Equity share Capital A/c 1,000,000
9 Forfeited Shares A/c Dr 300,000

To Capital Reserve A/c 300,000

30 JORNAL ENTRIES
Sl.No. Particulars LF Amount (Dr) Amount (Cr)
a 1 Bank A/c Dr 90,000
To Debenture App. All. A/c 90,000
2 Debenture App. All. A/c Dr 90,000
Discount on issue of debentures Dr 10,000
To 12% Debentures A/c 100,000
b 1 Bank A/c Dr 220,000
To Debenture App. All. A/c 220,000
2 Debenture App. All. A/c Dr 220,000
 Loss on issue of debentures A/c Dr 20,000
To 12% Debentures A/c 200,000
To Premium on redemption A/c 20,000
To Securities Premium A/c 20,000
c 1 Bank A/c Dr 330,000
To Debenture App. All. A/c 330,000
2 Debenture App. All. A/c Dr 330,000
To 12% Debentures A/c 300,000
To Securities Premium A/c 30,000
d 1 Bank A/c Dr 400,000
To Debenture App. All. A/c 400,000
2 Debenture App. All. A/c Dr 400,000
To 12% Debentures A/c 400,000
31 COMPARATIVE BALANCE SHEET
As on 31.03.22 & 31.03.23
Particulars 31.3.22 31.3.23 Difference Difference
Rs. Rs. Rs. %
I. Equity and Liabilities
1. Shareholders Funds
a) Share capital 800,000 900,000 100,000 12.50
b) Reserves and Surplus
Reserve 80,000 90,000 10,000 12.50

2. Non-Current Liabilities
a) Long term loan 20,000 30,000 10,000 50.00

3. Current Liabilities 30,000 20,000 (10,000) -33.33

Total 930,000 1,040,000 110,000 11.83
II. Assets : `
1. Non-Current Assets
a) Fixed Assets
i) Tangible Assets
Buildings 400,000 500,000 100,000 25.00
Machinery 100,000 200,000 100,000 100.00
2. Current Assets
a) Inventory 300,000 -300,000 0.00
b) Trade receivables 90,000 (70,000) 20,000 -77.78
c) Cash & Cash equivalent 40,000 (20,000) 20,000 -50.00
-
Total 930,000 1,040,000 110,000 11.83
32 Inventory Turnover Ratio = 10,00,000 / 2,00,000 = 5 Times
TR Turnover Ratio = 8,00,000 / 2,00,000 = 4 Times
TP Turnover Ratio = 7,50,000 / 1,50,000 = 5 Times
 Gross Profit Ratio = 5,00,000 /15,00,000 x 100 = 33.33%
Operating Ratio = 10,50,000 / 15,00,000 = 70.00%
Net Profit Ratio = 3,00,000 / 15,00,000 x 100 = 20.00%

Note :
COGS = 15,00,000 – 5,00,0000 = 10,00,000
Operating Cost = 10,00,000 + 50,000 = 10,50,000

Prepared By : Praveen Haridas

Youtube Channel : http://www.youtube.com/@ThePraveenHaridas