ISC 2024

ANALYSIS OF PUPIL
PERFORMANCE
ACCOUNTS

Research Development and Consultancy Division

Council for the Indian School Certificate Examinations
New Delhi
November 2024
____________________________________________________________________________________________

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Council for the Indian School Certificate Examinations (CISCE)

MISSION STATEMENT

The Council for the Indian School Certificate

Examinations is committed to serving the nation's
children, through high quality educational
endeavours, empowering them to contribute towards
a humane, just and pluralistic society, promoting
introspective living, by creating exciting learning
opportunities, with a commitment to excellence.

ETHOS OF CISCE

Trust and fair play.

Minimum monitoring.
Allowing schools to evolve their own niche.
Catering to the needs of the children.
Giving freedom to experiment with new ideas
and practices.
Diversity and plurality - the basic strength for
evolution of ideas.
Schools to motivate pupils towards the
cultivation of:
Excellence - The Indian and Global
experience.
Values - Spiritual and cultural - to be the bedrock
of the educational experience.
Schools to have an 'Indian Ethos', strong roots in
the national psyche and be sensitive to national
aspirations.
 FOREWORD
The National Education Policy 2020 emphasises building 21st-century skills and competencies
through systemic reforms in pedagogy and assessments. It is an endeavour of Council for Indian
School Certificate Examinations (CISCE) to ensure that assessments are utilised as tools for
promoting learning and development in students rather than a mere end to the instruction year.

With the objective to provide feedback on the common errors made by the students in the board
examinations of both ISC and ICSE and to provide information on the question-wise performance of
students, CISCE releases the Analysis of Pupils’ Performance document every year. It is one of the
unique and best practice of the CISCE board, which supports the candidates in their preparation for
the upcoming board examinations.
We would like to extend our appreciation to the Research Development and Consultancy Division
(RDCD) of the CISCE for their efforts in creating this detailed document for the benefit of our
students. We also express our gratitude to the examiners who have provided meticulous feedback on
the candidates’ performance during the examinations and also suggested pedagogical interventions
for the teachers to mitigate the common errors made by the candidates.
We are sanguine that students, teachers, and parents would make the best use of this document by
going through the various sections in detail and implementing the learnings from the same for
successful performance in the upcoming examinations.

November 2024 Dr. Joseph Emmanuel

Chief Executive & Secretary
CISCE

i
 PREFACE
As you are aware, the Analysis of Pupil Performance document has been developed by the Council
for Indian School Certificate Examinations (CISCE) with the objective to provide feedback to
teachers on the performance of students in the ICSE and ISC examinations. These subject-wise
documents highlight the misconceptions that students might have related to certain topics that are
reflected as common errors made by them while answering questions in the examinations. The
document also contains certain suggestive teaching strategies to reduce the occurrence of similar
errors in forthcoming examinations by students. The criteria used for marking each question has also
been provided in brief so that the teachers and students can comprehend the scope of the question
and the correct approach to answer it. Topics in the question paper that were found to be difficult or
unclear by the majority of the candidates have also been highlighted so that teachers can lay more
stress on bringing clarity to them, along with recommendations for candidates to attempt the
examination of a particular subject keeping in mind subject-specific nitty-gritty and techniques of
answering.
The Analysis of Pupil Performance document for ICSE for the Examination Year 2024 covers the
following 16 subjects - English Language, Literature in English, Hindi, History and Civics,
Geography, Mathematics, Physics, Chemistry, Biology, Commercial Studies, Economics, Computer
Applications, Economic Applications, Commercial Applications, Environmental Science and Home
Science.
The 20 subjects covered in the ISC Analysis of Pupil Performance document for the Year 2024 are -
Accounts, English Language, Literature in English, Hindi, Economics, Commerce, Business Studies,
Mathematics, Physics, Chemistry, Biology, Elective English, History, Political Science, Geography,
Psychology, Sociology, Computer Science, Environmental Science and Home Science
I extend my appreciation and gratitude to all the ICSE and ISC examiners who have shared their
valuable comments on each question. I also acknowledge the efforts of the RDCD team of Dr. Manika
Sharma, Ms. Parul Kohli, Ms. Lyimee Saikia and Ms. Mansi Guleria, for their focused hard work
and diligence towards the preparation of this document.
We are hopeful that this document will be helpful to teachers to bring in timely interventions for the
topics required, in order to support the students in their preparation and readiness towards the
upcoming ICSE and ISC examinations. We also hope the students learn from the detailed notes on
the common errors made while answering, so as to be well-prepared with the correct answering
strategies for the upcoming ICSE and ISC examinations.

November 2024 Dr. Bhawna Taragi

Deputy Head
RDCD, CISCE

ii
 ACCOUNTS
SECTION A – (60 Marks)
Answer all questions.
Question 1
In subparts (i) to (iv), choose the correct option and in subparts (v) to (x) answer the
questions as instructed.
(i) On the date of admission of Ajay as a partner, the Balance Sheet of the firm of [1]
Nita and Rita showed a balance of ₹ 80,000 in the Workmen Compensation
Reserve.
Choose the correct option to record the effect of a workmen compensation claim
of ₹ 90,000 on the accounts of the partnership firm.
(a) The Revaluation Account to be credited with ₹ 10,000.
(b) The Revaluation Account to be debited with ₹ 10,000.
(c) The Capital Accounts of Nita and Rita to be debited with ₹ 90,000.
(d) The Capital Accounts of Nita and Rita to be credited with ₹ 90,000.
(ii) Credit Access Grameen Ltd., a listed NBFC – MFI (Micro Finance Institution), is [1]
all set to enter the bond market next week to raise up to ₹ 1,000 crore in non-
convertible debentures, as it looks to diversify its liability profile.
(Source: Economic Times, 20 August, 2023)
According to the provisions of the Companies Act, 2013, what is the maximum
amount of these non-convertible debentures which Credit Access Grameen Ltd.
will redeem out of its capital?
(a) ₹ 100 crore
(b) ₹ 150 crore
(c) ₹ 900 crore
(d) ₹ 1,000 crore

(iii) Choose the correct order in which a partnership firm, at the time of its dissolution, [1]
will apply the amount realised from the sale of its assets, including any amount
contributed by the partners, towards the payment of:
P Partners’ loan
Q Firm’s debts
R Balance of partners’ capital
S Surplus divided amongst the partners in their profit-sharing ratio
(a) P, Q, R, S
(b) Q, P, S, R
(c) S, P, Q, R
(d) Q, P, R, S

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2024 ISC- Accounts
(iv) Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and [1]
final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited
by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid
up.
What is the Subscribed Capital of the company?
(a) ₹ 4,49,200
(b) ₹ 4,50,000
(c) ₹ 4,40,000
(d) ₹ 4,46,000
(v) Assertion: A revaluation account is prepared at the time of dissolution of a [1]
partnership.
Reason: A revaluation account is prepared to determine the net gain / loss on
realisation of assets and settlement of liabilities.
Which one of the following is correct?
(a) Both Assertion and Reason are true and Reason is the correct explanation
for Assertion.
(b) Both Assertion and Reason are true but Reason is not the correct explanation
for Assertion.
(c) Both Assertion and Reason are false.
(d) Assertion is true but Reason is false.
(vi) A firm having a debtor of ₹ 30,000 from whom the amount was due on 30th June, [1]
2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date
of dissolution of the firm at a discount of 4% per annum.
Give the journal entry passed by the firm to realise the payment from the
debtor.
(vii) Xylo Ltd. issued 9,000, 7% Debentures of ₹ 100 each at a certain rate of discount. [1]
After writing off the discount on the issue of debentures, the company was left
with a balance of ₹ 35,000 in its Securities Premium out of the original amount of
₹ 71,000.
At what rate of discount did the company issue these Debentures?
(viii) The Annual Report of ITC Ltd., for the financial year 2021-22, showed Claims [1]
against the Company not acknowledged as debts of ₹ 880·58 crores including
Third party claims arising from disputes relating to contracts aggregating ₹ 29.22
crores.
(Source: Annual Report of ITC Ltd. 2021-22)
Mention the heading and the sub-heading under which this item would have
been shown in the Notes to Accounts accompanying the Balance Sheet of ITC
Ltd. as at 31st March, 2022.
(ix) Deepa and Pia are in partnership sharing profits and losses in the ratio of 3:2. They [1]
admit Charu as a partner for 𝟏𝟏�𝟓𝟓 share in the profits. The capitals of Deepa and
Pia, before adjusting the loss of ₹ 5,000 on revaluation of assets and liabilities, are
₹ 30,000 and ₹ 20,000 respectively.

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2024 ISC- Accounts
It is decided that Charu will contribute 25% of the combined capitals of Deepa
and Pia.
What is Charu’s capital contribution?
(x) The Balance Sheet of Anjum Ltd. as at 31st March, 2022, had outstanding [1]
1,000, 8% Debentures of ₹ 100 each. These debentures were to be redeemed by
the company on 31st March, 2023.
Give the journal entry for the amount due to the Debenture holders on
31st March, 2023, including the interest on debentures due to them.

Comments of Examiners
(i) Majority of the candidates chose the correct
option (b). Suggestions for teachers
(ii) Very few candidates were able to choose − Ensure that the students are well versed
the correct option. Most of the candidates with the rules of the Companies Act,
chose option (a) instead of correct option 2013, regarding redemption of
(d). Debentures for listed and unlisted
(iii) Majority of the candidates chose the correct companies.
option. However, some candidates chose − Ensure that the students are well versed
option (b) instead of correct option (d). with the provisions of Section 48 (a) and
(iv) Very few candidates were able to choose (b) of IPA, 1932.
the correct option. Candidates chose option − Explain the meaning of subscribed
capital and clarify that forfeited shares
(a) instead of option (d).
are not included in subscribed capital as
(v) Very few candidates answered this question they are not held by the shareholders.
correctly. Most of the candidates chose − Clearly bring out the difference between
option (c) instead of option (d) as they ‘Dissolution of Partnership’ and
mistook dissolution of partnership ‘Dissolution of Partnership Firm’.
(admission, retirement, death of a partner) − Give practice of inserting adjustments
for dissolution of partnership firm. involving payment to creditors and
(vi) Almost all candidates gave the correct amount received from debtors at a
journal entry. A few candidates calculated discount before the due date to ensure
the discount for the full year. that students do not neglect the time
(vii) Majority of the candidates were able to period while making such entries.
calculate the rate of discount at which the − Explain all the items under Schedule III
debentures were issued by the company. of the Companies Act, 2013, given in
the scope of the syllabus and in the
(viii) Very few candidates could give the correct
guidelines followed by discussions for
heading and sub-heading of the item given better clarity.
in the question.
(ix) Majority of the candidates could answer
this question satisfactorily.
(x) Most of the candidates could answer this
question correctly.

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2024 ISC- Accounts

MARKING SCHEME
Question 1
(i) (b) or The Revaluation Account to be debited with ₹ 10,000.

(ii) (d) or ₹ 1,000 crore

(iii) (d) or Q, P, R, S

(iv) (d) or ₹ 4,46,000

(v) (d) or Assertion is true but Reason is false.

(vi) Cash / Bank A/c Dr 29,700

To Realisation A/c 29,700

4 3
Workings: Discount = 30,000 × 100 × 12 = 300

Amount realised = 30,000 – 300 = ₹ 29,700

(vii) 4% or ₹ 4 per debenture

X = 71,000 – 35,000
X = 36,000
36,000
× 100 = 4
9,00,000

(viii) Item Heading Sub-heading

Claims against the Company Contingent Liabilities & Contingent Liabilities

not acknowledged as debts
Capital Commitments

(ix) ₹ 11,250
1
Working: [50,000 – 5,000] × 4 = ₹ 11,250

(x) 8% Debentures A/c Dr 1,00,000

Interest on Debentures A/c Dr 8,000
To Debenture holders’ A/c 1,08,000

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2024 ISC- Accounts

Question 2 [3]
The Balance Sheet of Hari, Jacob and James as at 31st March, 2023, stood as follows:
Balance Sheet of Hari, Jacob and James
As at 31st March, 2023
Liabilities (₹) Assets (₹)
Capital Accounts Fixed Assets 3,50,000
Hari 3,40,000 Debtors 2,50,000
Jacob 1,90,000 Bank 1,50,000
James 2,20,000 7,50,000
7,50,000 7,50,000
Jacob died on 30th June, 2023.
His drawings from 1st April, 2023, up to the date of his death amounted to ₹ 1,00,000.
According to the partnership deed, Jacob was:
(a) To be charged with interest on drawings @ 4% per annum.
(b) Entitled to his share of interim profits for which his capital account was credited with
₹ 1,10,000.
(c) Entitled to his share in the non-purchased goodwill of the firm.
The firm’s non-purchased goodwill on the date of Jacob’s death had no value.
The final amount due to Jacob by the firm was transferred to his executor’s loan account.
You are required to prepare the Interim Balance Sheet of the reconstituted firm as at
30th June, 2023.
OR
Kamal, Ali and John are partners in a firm. On Kamal’s retirement from the firm on
30th June, 2023, his capital account stood at ₹ 40,000 after all adjustments.
The partners decided that Kamal be paid 50% of the amount due to him immediately and the
balance, along with interest @ 6% per annum, be paid on 30th June, 2024.
The firm closes its books on 31st March every year.
You are required to prepare Kamal’s Loan Account till it is finally closed.

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2024 ISC- Accounts

Comments of Examiners
Very few candidates attempted this option and Suggestions for teachers
answered it correctly. Majority of the candidates − Elucidate the concept of interim profits,
were unable to calculate the bank balance and the and make clear the calculation and
amount due to Jacob’s executor. treatment of interest on drawings and
OR interest on capital in case of death of a
Very few candidates were able to prepare the partner during the course of the year.
correct Loan A/c. The common errors made by − Lay stress on the date of the preparation
majority of the candidates were – of the Balance Sheet, both interim and
- Crediting the Loan A/c with the total amount final.
due and not with 50% of it. − Explain to the students the importance of
- Not being able to calculate the amount of the date column in a Loan A/c.
interest due but not accrued on 31st March, − Go by the scope of the syllabus regarding
2024, and accrued and due on 30th June, 2024. the preparation of the Loan A/c at the
time of retirement and death of a partner.
- Preparing the Loan A/c without recording the
dates of the transactions.

MARKING SCHEME
Question 2
Balance Sheet of Hari and James
As at 30th June, 2023 / 1st July, 2023
Liabilities (₹) Assets (₹)
Capital Accounts Fixed Assets 3,50,000
Hari 3,40,000 Debtors 2,50,000
James 2,20,000 5,60,000 Bank 50,000
P/L Suspense 1,10,000
Jacob’s Executor’s Loan 1,99,500 (500) 1,09,500
7,59,500 7,59,500
4 1·5
Workings: IOD = 1,00,000 × 100 × 12
= 500

OR
Kamal’s Loan A/c
Date Particulars Amount Date Particulars Amount (₹)
(₹)
31.3.24 To Balance c/d 20,900 30.6.23 By Kamal’s Capital A/c 20,000

31.3.24 By Interest accrued but 900

not due A/c
20,900 20,900
30.6.24 To Cash/ Bank A/c 21,200 1.4.24 By Balance b/d 20,900
(20,000 + 1,200) 30.6.24 By Interest accrued and 300
due
21,200 21,200

6 9
Workings: Interest on Loan accrued but not due = 20,000 × 100 × 12 = 900
6 3
Interest on Loan accrued and due = 20,000 × 100 × 12 = 300

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2024 ISC- Accounts

Question 3 [3]
On 1st April, 2022, Harbour Ltd. issued 50,000, 6 % Debentures of ₹ 100 each to the public
at a discount of 5% to be redeemed after three years at a premium of 7%.
On this date, the company also issued 1,00,000 Equity shares of ₹ 10 each at a premium of
₹ 2 per share.
Both the issues were fully subscribed.
You are required to prepare the following accounts for the year 2022-23 in the books of
Harbour Ltd.:
(i) 6 % Debentures Account.
(ii) Loss on issue of Debentures Account.

Comments of Examiners
(i) The majority of the candidates were unable to Suggestions for teachers
prepare the 6% Debentures A/c satisfactorily. − Ensure that the students understand that
The common errors made were: the Debenture Application and Allotment
- Instead of crediting Debenture Application Account should be debited when
& Allotment A/c, candidates credited debentures are issued at their full-face
Debentures Application A/c or Bank A/c. value.
- Instead of taking both the losses- Discount − Regarding debentures teach the concepts
on Issue of Debentures and Premium on that both - discount on issue of
Redemption of Debentures in Loss on issue debentures and premium on redemption
of Debentures A/c, a separate Discount on of debentures are losses on issue of
Issue of Debentures A/c was opened which debentures and have to be debited
through one account which is ‘Loss on
was credited in the Debentures A/c.
issue of Debentures A/c’.
- Passing journal entries instead of making
− Give adequate practice to the students in
ledger accounts. making ledger accounts independent of
(ii) Some of the candidates could answer this passing journal entries.
question correctly. − Ensure that the students are clear about
- Most of the candidates did not use the the concept of writing off capital losses
Securities Premium to write off part of the in the year in which they occur.
Loss of issue on Debentures. They either − Give sufficient practice for writing off
wrote off the entire amount from the these losses first from the Securities
revenue profits or did not write it off at all Premium, then from Capital Reserve and
lastly from the Revenue profits.
but simply carried it forward.
− Lay emphasis on the fact that general
- A few candidates, while writing off the loss Reserve is to be used only if the question
from the Securities Premium A/c, wrote specifies.
‘Premium A/c’ instead of ‘Securities − Instruct students not to use abbreviations.
Premium A/c’.

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2024 ISC- Accounts

MARKING SCHEME
Question 3
(i) 6% Debentures A/c
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31.03.23 To Balance c/d 50,00,000 01.04.22 By Deb App & Allot 47,50,000
A/c
01.04.22 By Loss on issue of 2,50,000
Deb A/c
50,00,000 50,00,000
(ii) Loss on issue of Debentures A/c

Date Particulars Amount Date Particulars Amount

(₹) (₹)
01.04.22 To 6% Deb 2,50,000 31.03.23 By Sec Premium 2,00,000
01.04.22 To Premium on 3,50,000 31.03.23 By St of P/L 4,00,000
Red of Deb
6,00,000 6,00,000

Question 4 [3]
On 1st April, 2022, the following balances appeared in the books of Alpha Pvt. Ltd.
9% Debentures (redeemable on 31st March, 2023, at a premium of 2%) ₹ 50,00,000
Debenture Redemption Reserve ₹ 5,00,000
The Debenture Redemption Investment, which was purchased by the company on 1st April,
2022, was realised at 101% on the date of redemption and the debentures were redeemed on
the due date.
You are required to prepare the following accounts for the year 2022-23 in the books of
Alpha Pvt. Ltd.
(i) Debenture holders’ Account.
(ii) Debenture Redemption Investment Account.
OR

On 1st April, 2022, Resorts Ltd. (a listed construction company) had 60,000, 5% Debentures
of ₹ 100 each due for redemption at par on 31st March, 2023.
As per the law, investment was made in a fixed deposit of a bank on 30th April, 2022, earning
interest @ 5% per annum.
Tax @ 10% was deducted by the bank on the interest.
You are required to pass necessary journal entries in the year of redemption of
debentures, including entries for interest on Debenture Redemption Investment.
(Ignore the interest on Debentures)

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2024 ISC- Accounts

Comments of Examiners
(i) Majority of the candidates were able to Suggestions for teachers
prepare the Debenture holders’ Account.
However, a few candidates made wrong − Explain to the students that a Debenture
entries by crediting the Debentures holder’ can be debited / credited only at its face
A/c with ₹51,00,000 for Debentures instead value.
of ₹50,00,000 for Debentures and ₹1,00,000 − Make clear the concept that the change
in the value of an asset / liability at the
for Premium on Redemption of Debentures. time of its sale or settlement has to be
(ii) Only a few candidates answered this question reflected in the concerned account.
correctly. Some candidates did not debit the − Provide sufficient practice to the
Debenture Redemption Investment Account students to calculate interest on
with the gain made on the sale of the Debenture Redemption Investment
Investments. A few candidates simply using the formula - Principle × Rate
debited the Debenture Redemption ×Time period.
Investment Account with ‘Gain A/c’ instead − Explain to the students and reiterate the
of ‘Gain on sale of Debenture Redemption fact that all expenses and income
Investment A/c’. accounts must be closed at the end of the

OR
Majority of the candidates were unable to calculate the correct interest earned on the Debenture
Redemption Investment. They calculated it for twelve months instead of eleven months. Many
candidates did not pass the journal entry to close the Interest on Debenture Redemption Investment
A/c.

MARKING SCHEME
Question 4
(i) Debenture holders’ A/c
Date Particulars Amount Date Particulars Amount
(₹) (₹)
31.3.23 To Bank A/c 51,00,000 31.03.23 By 9% Deb A/c 50,00,000
31.03.23 By Premium on Red 1,00,000
of Deb A/c
51,00,000 51,00,000
(ii) Debenture Redemption Investment A/c
Date Particulars Amount Date Particulars Amount
(₹) (₹)
01.04.22 To Bank A/c 7,50,000 31.03.23 By Bank A/c 7,57,500
31.03.23 To Gain on Sale
of DRI 7,500
7,57,500 7,57,500
OR
Journal of Resorts Ltd.
Date Particulars L.F. Debit (₹) Credit
(₹)
30.04.22 Debenture Redemption Invest. A/c Dr 9,00,000
To Bank A/c 9,00,000
(Being DRI made in a fixed deposit)
31.03.23 Bank A/c Dr 37,125
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2024 ISC- Accounts
Tax Collected (Receivables) A/c Dr 4,125
To Interest on DRI A/c 41,250
(Being int. recd on DRI)
31.03.23 Bank A/c Dr 9,00,000
To Deb Redemption Invest A/c 9,00,000
(Being DRI matured)
OR
Bank A/c Dr 9,37,125
Tax Collected (Receivables) A/c Dr 4,125
To Interest on DRI A/c 41,250
To Deb Redemption Invest A/c 9,00,000
(Being DRI matured and int. received)
31.03.23 5% Debentures A/c Dr 60,00,000
To Debenture holders’ A/c 60,00,000
(Being amount due to Deb holders’)
31.03.23 Debenture holders’ A/c Dr 60,00,000
To Bank A/c 60,00,000
(Being 5% Debentures redeemed)
31.03.23 Interest on DRI A/c Dr 41,250
To Statement of P/L 41,250
(Being interest on DRI transferred to
St. of P/L)

Question 5 [3]
On 1st April, 2020, Anish started a business with a capital of ₹ 3,00,000.
During the three years ending 31st March, 2023, the results of his business were:
Year (₹)
2020-21 Loss 20,000
2021-22 Profit 34,000
2022-23 Profit 46,000
From the year 2020-21 to the year 2022-23, Anish withdrew ₹ 30,000 from the firm for his
personal use.
On 1st April, 2023, he admitted Danish into partnership on the following terms:
(a) Goodwill of the firm to be valued at two years’ purchase of the average profits of the
last three years.
(b) Danish to have 1�4 share in the future profits.
(c) Danish’s capital to be equal to 1�4 of Anish’s capital determined on 1st April, 2023,
after the goodwill compensation has been taken into account.
You are required to give:
(i) The formula to calculate goodwill by the Average Profit Method.
(ii) The value of self-generated goodwill of the firm.
(iii) Danish’s capital contribution.
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2024 ISC- Accounts

Comments of Examiners
(i) The majority of the candidates could answer
this question satisfactorily. However, a few Suggestions for teachers
candidates failed to apply the appropriate − Ensure, while teaching valuation of
formula of valuation of goodwill by using the goodwill, that the students write the
average profit method. A few other formula of its valuation and stress upon
candidates did not multiply the Average the same.
Profit with the ‘Number of Years’ Purchase’. − Explain the meaning of and difference
(ii) Most of the candidates answered this question between self-generated and inherent
correctly. Some candidates failed to infer the goodwill and purchased goodwill.
meaning of self-generated goodwill. They − Bring out clear distinction between the
worked it out correctly along with the formula different types of goodwill along with
emphasizing on the type of goodwill
but then did some further calculations to get
being dealt with while teaching.
an incorrect figure of self-generated goodwill
− Reiterate the formula to calculate closing
which they considered as its value. capital.
(iii)Very few candidates were able to calculate
the new partner’s capital. Majority of the
candidates were unable to get the correct
amount of profit earned over the three years. Some candidates did not subtract the drawings made
by the old partner from his opening capital.

MARKING SCHEME
Question 5
(i) Goodwill = Average profit × Number of years’ purchase

(ii) = 60,000/3 × 2 = ₹ 40,000

(iii) Danish Capital Contribution = 1/4 × 3,40,000 = ₹ 85,000

Workings:
Anish’s Particulars (₹)
Opening capital on 1st April 2020 3,00,000
Profit Capital during 2020-23 60,000
Drawings during 2020-23 30,000
Goodwill Compensation 10,000
Capital on 1st April, 2023 3,40,000

Question 6 [6]
The following balances have been extracted from the books of Meadow Ltd. as at
31st March, 2023.
Particulars (₹) Particulars (₹)
Capital Reserve 1,20,000 Bank Overdraft 40,000
Plant and Machinery (at cost) 6,00,000 Bills Receivables 20,000
Land and Building 6,80,000 Patents 80,000
Statement of Profit & Loss (Dr) 1,70,000 Sundry Debtors 90,000
Short-term Loans and Advances 50,000 Provision for Doubtful 10,000
Debts
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Cash & Bank Balances 1,60,000 Inventories 30,000

Trade Payables 90,000 Share Capital 12,20,000
Accumulated depreciation on 1,00,000 5% Debentures (1�5 of the 3,00,000
Plant and Machinery Debentures to be redeemed
on 31st March, 2024)
Additional information:
• The company had issued 1,25,000 Equity shares of ₹ 10 each which were all applied for and
allotted to the public. These shares were fully called up by the company.
• There were calls-in arrears @ ₹ 2 per share on 15,000 shares out of which 5,000 shares were
forfeited by the company.
You are required to:
(i) Show the Share Capital in the Notes to Accounts.
(ii) Give the amount for each of the following:
(a) Short-term borrowings
(b) Current Assets
(c) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment

Comments of Examiners
(i) Some of the candidates could correctly
answer this question. Many candidates were
Suggestions for teachers
unable to show the ‘Share Capital’ in the − Teach according to the scope of the
Notes to Accounts satisfactorily. syllabus and the guidelines issued by the
The common errors made by most of the CISCE.
candidates were: − Explain to the students that subscribed
- they did not give the details of the kinds of shares mean the number of shares held by
the shareholders and therefore subscribed
Share Capital- Authorised and Issued
capital does not include the balance of
Capital. Share Forfeited Account as forfeited
- they were unable to calculate calls-in- shares have not been subscribed.
arrears. − Discuss in detail all those items given in
- Candidates could not get the correct the Balance Sheet of the company which
amount of balance of Share Forfeiture A/c. are included in the scope of the ISC
- The balance of Share Forfeiture was shown syllabus.
as a part of Subscribed Capital and not as a − Clearly explain the difference between
separate item under Share Capital. the - gross value and net value of
Property and Plant and Equipment in
(ii) (a) Majority of the candidates were unable to such a manner that the students are able
get the correct amount of short-term to identify which of the two has been
borrowings. They did not include the given in the information of the question.
amount of ‘Current Maturities of Long- − Ensure that the students are able to
term Debt’. identify the tangible and intangible
(b) Majority of the candidates calculated the assets.
correct amount of Current Assets. Some
candidates, however, did not subtract
Provision from Doubtful Debts from the total of Sundry Debtors and Bills Receivable in order
to get the Net Trade Receivables.
(c) Most of the candidates were able to calculate the amount of Property, Plant and Equipment.
However, some candidates did not subtract the amount of accumulated depreciation from its

12
2024 ISC- Accounts
gross value. A few candidates also included the value of Patents (an intangible asset) in the
amount of Property, Plant and Equipment. (tangible fixed assets).

MARKING SCHEME
Question 6
Notes to Accounts:
(i)
Particulars (₹)
1. Share Capital
Authorised Capital
………. Equity shares @ ₹ 10 each ……….

Issued Capital
1,25,000 Equity shares @ ₹ 10 each 12,50,000

Subscribed Capital
Subscribed and fully paid up
1,10,000 Equity shares @ ₹ 10 each 11,00,000
Subscribed but not fully paid
10,000 Equity shares @ ₹ 10 each 1,00,000
Less Calls-in-arrears (20,000) 80,000

11,80,000
Share Forfeited A/c (5,000 × 8) 40,000
12,20,000

(ii)
(a) Short-term borrowings ₹ 1,00,000
40,000 + 60,000
(b) Current Assets ₹ 3,40,000
1,60,000 + 50,000 + (20,000 + 90,000 – 10,000) + 30,000
(c) Property, Plant and Equipment and Intangible Assets ₹ 11,80,000
(i)Property, Plant and Equipment
6,00,000 – 1,00,000 + 6,80,000

Question 7 [6]
Amay and Sujoy are partners sharing profits and losses in the ratio of 3:1. Their Balance
Sheet as at 31st March, 2023, is given below.
Balance Sheet of Amay and Sujoy
As at 31st March, 2023
Liabilities (₹) Assets (₹)
Bills Payable 70,000 Land and Building 1,65,000
Capital Accounts: Stock 60,000
Amay 1,30,000 Sundry Debtors 70,000
Sujoy 1,25,000 2,55,000 Less Provision for
Doubtful Debts (10,000) 60,000
Cash in hand 40,000
3,25,000 3,25,000
On 1st April, 2023, they admit Malay as a new partner for 1�4 share in the profits on the
following terms:
13
2024 ISC- Accounts
(a) Malay to bring his share of capital of ₹ 1,20,000 and to pay ₹ 10,000 in cash for his
share of goodwill.
(b) Stock worth ₹ 45,000 to be taken over by Amay at ₹ 25,000.
(c) Bills Payable of ₹ 20,000 to be honoured by Sujoy, for which he is not to be reimbursed.
(d) The capitals of Amay and Sujoy to be adjusted on the basis of Malay’s Capital and his
share in the profits, any surplus to be readjusted through current account and deficiency
through cash.
You are required to prepare the Partners’ Capital Accounts.
OR

Mitu and Ritu are partners sharing profits and losses in the ratio of 2:3. An extract of their
Balance Sheet as at 31st March, 2023, is given below.
Balance Sheet of Mitu and Ritu (an extract)
As at 31st March, 2023
Liabilities (₹) Assets (₹)
Workmen Compensation Reserve 30,000 Investments 80,000
(Market Value ₹ 76,000)
General Reserve 40,000 Sundry Debtors 1,00,000
Investment Fluctuation Reserve 10,000 Profit & Loss A/c 55,000

On 1st April, 2023, they admit Nitu as a new partner for 1�5 share in the profits on the
following terms regarding the treatment of the reserves and the accumulated losses:
(a) Accumulated losses, if any, to be written off.
(b) A workmen compensation claim of ₹ 10,000 to be adjusted against the Workmen
Compensation Reserve. The balance of the reserve is not to be distributed.
(c) Any loss in the value of investments to be adjusted against the Investment Fluctuation
Reserve. The balance of the Investment Fluctuation Reserve is to be distributed.
(d) Provision for doubtful debts to be created to the extent of 10% of the debtors from the
General Reserve. The remaining amount in the General Reserve is to be distributed.
You are required to pass necessary journal entries to record the above adjustments at
the time of Nitu’s admission.

14
2024 ISC- Accounts

Comments of Examiners
Majority of the candidates were able to prepare
the Partners’ Capital Accounts satisfactorily. Suggestions for teachers
A few common errors committed by the − Instruct students to refrain from using
candidates were: short forms while answering during
- Writing short forms such as PWG for exams.
Premium for Goodwill. − Give sufficient practice to the students
- Debiting the partner’s capital account with regarding adjustment of surplus/ deficit
the amount of Bills Payable honoured by capital both through cash and current
him. account.
- failing to understand after adjustment of the − Prepare a list of adjustments from the
previous years’ question papers and
partners’ capital accounts as to which
specimen papers to give revision for
partner’s capital account had a deficit and various topics.
which one’s capital account showed a − Give sufficient practice to the students
surplus. in the treatment of accumulated profits
OR and losses at the time of dissolution of a
Majority of the candidates who attempted this partnership, both when distributed /
option were able to pass the necessary journal written off and when to be adjusted
entries correctly. However, some candidates through the partners’ capital accounts.
did not pass the journal entry to adjust the − Include these adjustments in the
amount of Workmen Compensation Reserve comprehensive problems being done in
which was not to be distributed. the class and given as an assignment.

MARKING SCHEME
Question 7
Partners’ Capital Accounts
Particulars Amay Sujoy Malay Particulars Amay Sujoy Malay
To Stock 25,000 By Bal b/d 1,30,000 1,25,000
To Bal c/d 1,12,500 1,27,500 1,20,000 By Cash / Bank 1,20,000
By Pr for GW 7,500 2,500
1,37,500 1,27,500 1,20,000 1,37,500 1,27,500 1,20,000
By Bal b/d 1,12,500 1,27,500 1,20,000
To Sujoy’s 37,500 By Cash / Bank 1,57,500
Current A/c
To Bal c/d 2,70,000 90,000 1,20,000
2,70,000 1,27,500 1,20,000 2,70,000 1,27,500 1,20,000
Workings:
Total Capital of the firm = 1,20,000 × 4 = ₹ 4,80,000
Amay : Sujoy : Malay
New Ratio 9 : 3 : 4
Capitals = 2,70,000 90,000 1,20,000
OR
Journal
Date Particulars L.F. Debit(₹) Credit(₹)
Mitu’s Capital A/c Dr 22,000
Ritu’s Capital A/c Dr 33,000

15
2024 ISC- Accounts
To P/L A/c 55,000
(Being accumulated loss written off)

Workmen Compensation Reserve A/c Dr 10,000

To Workmen Compensation Claim 10,000
(Being workmen compensation claim met
out of the reserve)

Nitu’s Current A/c Dr 4,000

To Mitu’s Capital A/c 1,600
To Ritu’s Capital A/c 2,400
(Being balance of WCR adjusted through
the old partners’ capital accounts in the SR)

Investment Fluctuation Reserve A/c Dr 10,000

To Investments A/c 4,000
To Mitu’s Capital A/c 2,400
To Ritu’s Capital A/c 3,600
(Being loss in value of investments met
from IFR and balance of IFR distributed to
the old partners in the old ratio)

General Reserve A/c Dr 40,000

To Provision for Doubtful Debts A/c 10,000
To Mitu’s Capital A/c 12,000
To Ritu’s Capital A/c 18,000
(Being Provision for Doubtful Debts
created from General Reserve and the
balance distributed to the old partners in the
old ratio)

Question 8 [6]
Adit and Shiv were partners sharing profits and losses in the ratio of 5:4. They dissolved their
partnership firm on 31st March 2023, when their Balance Sheet showed the following balances:
Particulars (₹)
Adit’s Capital 40,000
Shiv’s Capital 30,000
Adit’s Current A/c (Cr) 3,000
Shiv’s Current A/c (Dr) 6,000
Loan by the firm to Shiv 22,000
Profit & Loss Account (Dr) 4,500
On the date of dissolution of the firm:
(a) The firm suffered a loss of ₹ 18,000 upon realisation of assets and settlement of liabilities.

(b) The expenses of dissolution of ₹ 3,000, to be borne by Shiv, were paid by the firm on his
behalf.
(c) The firm had furniture of ₹ 15,000. Adit took over some pieces of the furniture at ₹ 9,000
(being 10% less than the book value). Shiv took over the remaining furniture at 80% of its
book value.
You are required to prepare the Partners’ Capital Accounts.

16
2024 ISC- Accounts

Comments of Examiner
Majority of the candidates answered this question
correctly. Suggestions for teachers
A few common errors of the candidates who − Adhere to the scope of the syllabus and
clarify that at the time of dissolution of
attempted this question were:
the firm, the fixed capital account is
- Crediting the partner’s capital accounts with converted into fluctuation capital
the accumulated loss. account and all adjustments are then
- The preparation of capital account not being passed through the capital account.
as per the requirement of the syllabus. − Explain to the students the logic behind
Instead of closing the current account of the transferring the loan given by the firm to
partners immediately and then posting all the the partner to his capital account and loan
adjustments in the partners’ capital accounts, given by the partner to the firm to be
the adjustments were made in the current dealt with through the Loan Account.
accounts and the balance of current account
so determined was transferred to the capital
accounts.
- Not being able to calculate 80% of the remaining book value of the furniture.
- Writing ‘To Loss on Realisation’ instead of ‘To Realisation A/c’ in the particulars while posting
the loss.
- Not transferring the loan given by the firm to the partner to his capital account.

MARKING SCHEME
Question 8
Partners’ Capital Accounts
Particulars Adit Shiv Particulars Adit Shiv
To Shiv’s Curr A/c 6,000 By Balance b/d 40,000 30,000
To Loan to Shiv 22,000 By Adit’s Curr A/c 3,000
To P/L A/c 2,500 2,000 By Cash / Bank 15,000
To Realisation A/c 10,000 8,000
To Cash/ Bank 3,000
To Realisation A/c 9,000 4,000
To Cash/ Bank 21,500
43,000 45,000 43,000 45,000
Workings:
Book value of furniture taken over by Adit = x – 10 x / 100 = 9,000
x = ₹ 10,000
Furniture taken over by Shiv = 80% (15,000 – 10,000) = ₹ 4,000

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2024 ISC- Accounts

Question 9
Tanuj and Ravi are partners in a business with capital balances of ₹ 1,50,000 and ₹ 1,00,000
respectively on 1st April, 2022.
Their partnership deed contains the following clauses:
(a) Interest on capital to be allowed @ 10% per annum.
(b) Interest on drawings to be charged @ 4% per annum.
(c) Tanuj to be allowed a commission @ 5% of the trading profit after charging his
commission.
(d) Ravi to be allowed an annual commission of ₹ 10,000.
Additional information:
During the year 2022-23:
• Tanuj withdrew ₹ 6,000 at the end of every quarter.
• The trading profit of the firm was ₹ 84,000.
• The firm’s divisible profit was ₹ 46,360.
• On 1st October, 2022, Ravi permanently withdrew ₹ 20,000 from his capital.
You are required to do the following:
(i) Pass the journal entries to record: [6]
(a) The permanent withdrawal made by Ravi.
(b) The distribution of the divisible profits between the partners.
(c) The adjusting entry for commission due to Ravi.
(ii) Calculate the interest on capital allowed to: [2]
(a) Tanuj
(b) Ravi
(iii) Calculate the commission allowed to Tanuj. [1]
(iv) Calculate the interest on drawings charged from Tanuj. [1]
OR
Amit and Iqbal are partners in a business. Their partnership deed contained the following
clauses:
(a) Interest on drawings to be charged @ 6% per annum.
(b) Amit to get a salary of ₹ 1,000 per month.
(c) Iqbal to get an annual commission of ₹ 10,000.
(d) Any partner taking a loan from the firm to be charged interest on it @ 8% per
annum.

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Additional Information Amit (₹) Iqbal (₹)

Drawings made on 1st May, 2022 30,000
Borrowed from the firm on 1st July, 2022 10,000
Capital Balances on 31st March, 2023 75,000 10,000 (Dr)
Divisible profits for the year 2022-23 credited to the 9,000 9,000
Partners’ Capital Accounts

You are required to:

(i) Give the closing journal entry for interest on loan due from Amit. [1]
(ii) Find the opening capital balance of the partners on 1st April, 2022, by preparing [9]
the Partners’ Capital Accounts for the year 2022-23.

Comments of Examiners
(i) (a) Most of the candidates answered this
question correctly. However, many Suggestions for teachers
candidates passed the entry for − Explain the distinction between
temporary withdrawals instead of permanent withdrawal (against capital)
permanent withdrawal. and temporary withdrawal (against
(b) A few candidates debited the ‘Divisible profits) through reasoning and
Profits A/c’ or P&L A/c instead of necessary journal entries.
debiting the ‘P&L Appropriation A/c’ in − Explain the formula and give sufficient
the journal entry to record the practice to the students to calculate
commission on trading profits before
distribution of divisible profits between
and after charging commission.
the partners.
− Ensure that the students are clear about
(c) Some candidates passed the closing the adjusting and closing entries of all
entry to record the commission due to appropriations made to the partners
the partner. along with adjusting and closing entries
(ii) (a) Majority of the candidates were able to of Interest on drawings and temporary
calculate the commission due to partner. withdrawals made by the partners.
(b) Most of the candidates did not take into − Deal separately with - loan given by a
account the permanent withdrawal made partner to the firm and the interest on it
by the partner while calculating interest is a separate topic to ensure coherence
on capital. with the scope of the syllabus.
(iii)Most of the candidates used the formula of
‘commission on trading profit’ before
charging commission.
(iv) Majority of the candidates were able to calculate interest on drawings.
OR
(i) Very few candidates attempted this option, However, amongst those candidates who attempted
this question very few were able to give the closing journal entry for interest on loan due.
(ii) Majority of the candidates who attempted this option were unable to calculate the opening capital
balances of the partners.

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2024 ISC- Accounts

MARKING SCHEME
Question 9
(i) Journal
Date Particulars L.F. Debit(₹) Credit(₹)
(a) Ravi’s Capital A/c Dr 20,000
To Cash / Bank A/c 20,000
(Being permanent withdrawals made by
Ravi)

(b) P/L Appropriation A/c Dr 46,360

To Tanuj’s Capital A/c 23,180
To Ravi’s Capital A/c 23,180
(Being divisible profits transferred to the
partners’ capital accounts)
(c) Commission A/c Dr 10,000
To Ravi’s Capital A/c 10,000
(Being commission due to Ravi)
(ii) (a) Interest on Capital:
Tanuj= ₹ 15,000

(b) Ravi = ₹ 9,000

10 1 10 1
Workings: 1,00,000 × 100 × 2 + 80,000 × 100 × 2 = 5,000 + 4,000 = ₹ 9,000

(iii) Commission due to Tanuj: ₹ 4,000

(iv) Interest on Drawings:

Tanuj = ₹ 360
OR
(i) Journal
Date Particulars L.F. Debit(₹) Credit(₹)
Interest on Loan A/c Dr 600
To Profit and Loss A/c 600
(Being interest on loan due to the firm)
(ii) Partners’ Capital Accounts
Particulars Amit Iqbal Particulars Amit Iqbal
To Drawings 30,000 By Balance 54,600 2,650
b/d
To IOD 1,650 By Salary 12,000
To IOL 600 By Comm 10,000
To Balance c/d 75,000 By P/L App 9,000 9,000
A/c
By Bal c/d 10,000
75,600 31,650 75,600 31,650
Working:
6 11
IOD = 30,000 × 100 × 12 = ₹1,650
8 9
IOL = 10,000 × 100 × 12 = ₹600

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2024 ISC- Accounts

Question 10 [10]
Gama Ltd. issued 20,000 Equity shares of ₹ 10 each to the public, payable as follows:
₹ 2 on Application
₹ 3 on Allotment (on 1st November, 2022)
₹ 5 on First & Final Call (on 1st March, 2023)
Applications were received for 25,000 shares. The directors of the company accepted
applications for 20,000 shares and refunded the application money on the remaining shares.
One shareholder who was allotted 30 shares paid the first and final call with allotment.
Another shareholder did not pay his allotment on 20 shares when due but paid it with the
first and final call along with interest on calls-in-arrears.
The directors of the company charged interest on calls-in-arrears at the rate provided in
Table F of the Companies Act, 2013. No interest was allowed on calls-in-advance.
You are required to pass journal entries to record the above transactions in the books
of Gama Ltd.
OR

(A) Roxy Ltd. issued Equity shares of ₹ 10 each payable as: [9]
₹ 4 on Application and Allotment; ₹ 2 on First Call; ₹ 4 on Second and Final Call.

Following is an extract of the Journal of Roxy Ltd.

21
2024 ISC- Accounts
Journal of Roxy Ltd. (an extract)
Date Particulars LF Debit Credit
(₹) (₹)
Share First Call A/c Dr 28,000
To Share Capital A/c 28,000
(Being first call due on __??__
shares @ ₹ 2 each)
Bank A/c Dr ??
Calls in arrears A/c Dr 2,000
To Share First Call A/c 28,000
(Being first call received on _??_
shares)
Share Capital A/c Dr ??
To Shares Forfeited A/c 4,000
To Calls in arrears A/c ??
(Being __??__shares of ₹ 10 each
forfeited for non-payment of first call)
Share Second & Final Call A/c Dr 52,000
To Share Capital A/c 52,000
(Being second & final call due on
__??__ shares @ ₹ 4 each)
Bank A/c Dr ??
Calls in arrears A/c Dr 10,000
To Share Second & Final Call A/c 52,000
(Being second call received
on_??_shares
Share Capital A/c Dr ??
To Shares Forfeited A/c ??
To Calls in arrears A/c 10,000
(Being __??__shares of ₹ 10 each
forfeited for non-payment of final call)
Bank A/c Dr ??
Shares Forfeited A/c Dr ??
To Share Capital A/c ??
(Being 1,500 forfeited shares, including
those on which the first call was not
received, reissued @ ₹ 6 per share fully
called up)
Share Forfeiture A/c Dr ??
To Capital Reserve A/c ??
(Being____________??____________)
You are required to complete the journal entries by filling up the missing
information represented by ‘??’, including the number of shares and narration,
if any.

(B) Savi Ltd. forfeited 50 shares of ₹ 100 each issued at a premium of 10%, on which [1]
allotment money of ₹ 30 per share (including premium) and first and final call of
₹ 40 per share were not received.
What is the minimum amount per share at which the company can reissue these
shares?

22
2024 ISC- Accounts

Comments of Examiners
Very few candidates attempted this question. Suggestions for teachers
Amongst those candidates who attempted it, most
of them were able to solve it satisfactorily. Some − Give sufficient practice for calculating
candidates were unable to calculate the interest the interest on calls-in-arrears and calls-
on call-in- arrears. A few candidates did not pass in-advance along with the due, payment
and closing journal entries.
the closing entry for interest on call-in- arrears.
− Ensure that the students do not write
OR amounts as for example, 5 × 1,000 or 50;
(A) Majority of the candidates solved this 10; 40 etc. with ‘amounts in thousands’
problem quite satisfactorily. However, some written at the top of the journal.
candidates were unable to calculate the − Guide students in solving questions
number of shares on which the second call where blanks have to be filled up.
was received. A few candidates did not write − Explain to the students with examples
the complete journal entries but only that a certain minimum amount has to be
mentioned the amounts by numbering them as received by the company on the reissue
1,2… etc or (a). (b) and so on while neither of forfeited shares as there can never be a
the journal entries nor the blanks were net loss on the reissue of forfeited shares.
numbered. − Provide sufficient practice to the students
to calculate the minimum amount /
(B) Only a few candidates could solve this maximum discount by giving them small
question. The majority of them, instead of problems.
calculating the minimum amount received on
the share, calculated the maximum discount
per share which the company could give on its reissue. A few candidates took the securities
premium also into consideration.

MARKING SCHEME
Question 10
In the Books of Gama Ltd.
Journal
Date Particulars L.F. Debit(₹) Credit(₹)
Bank A/c Dr 50,000
To Share Application A/c 50,000
(Being share app recd)

Share Application A/c Dr 50,000

To Equity Share Capital A/c 40,000
To Bank A/c 10,000
(Being Share App tsfd to Share Capital)

Share Allotment A/c Dr 60,000

To Equity Share Capital A/c 60,000
(Being Share Allot due)

Bank A/c Dr 60,090

Calls-in-arrears A/c Dr 60
To Share Allotment A/c 60,000
To Calls-in-advance A/c 150
(Being Share Allot received)

Share First & Final Call A/c Dr 1,00,000

23
2024 ISC- Accounts
To Equity Share Capital A/c 1,00,000
(Being Share First & Final Call due)

Bank A/c Dr 99,910

Calls-in-advance A/c Dr 150
To Share First & Final Call A/c 1,00,000
To Calls-in-arrears A/c 60
(Being Share First & Final Call received)

Shareholders / Sundry Members A/c Dr 2·00

To Interest on Calls-in-arrears A/c 2·00
(Being interest on calls-in-arrears due)

Bank A/c Dr 2·00

To Shareholders/Sundry Members A/c 2·00
Being interest on calls-in-arrears received)

Interest on Calls-in-arrears A/c Dr 2·00

To Statement of P/L 2·00
(Being interest on calls-in-arrears A/c closed)
OR
(A) Journal of Roxy Ltd.
Date Particulars LF Debit(₹) Credit(₹)
Share First Call A/c Dr 28,000
To Share Capital A/c 28,000
(Being first call due on 14,000 shares @ ₹ 2
each)
Bank A/c Dr 26,000
Calls in arrears A/c Dr 2,000
To Share First Call A/c 28,000
(Being first call received on 13,000 shares)
Share Capital A/c Dr 6,000
To Shares Forfeited A/c 4,000
To Calls in arrears A/c 2,000
(Being 1,000 shares of ₹ 10 each forfeited
for non-payment of first call)
Share Second & Final Call A/c Dr 52,000
To Share Capital A/c 52,000
(Being second & Final call due on
13,000 shares @ ₹ 4 each)
Bank A/c Dr 42,000
Calls in arrears A/c Dr 10,000
To Share Second & Final Call A/c 52,000
(Being second call received on 10,500 shares
Share Capital A/c Dr 25,000
To Shares Forfeited A/c 15,000
To Calls in arrears A/c 10,000
(Being 2,500 shares of ₹ 10 each forfeited
for non-payment of final call)
Bank A/c Dr 9,000
Shares Forfeited A/c Dr 6,000
24
2024 ISC- Accounts
To Share Capital A/c 15,000
(Being 1,500 forfeited shares, including those
on which the first call was not received,
reissued @ ₹ 6 per share fully called up)
Share Forfeiture A/c Dr 1,000
To Capital Reserve A/c 1,000
(Being net gain on reissue of forfeited shares
transferred to Capital Reserve)
(B) ₹ 60

SECTION B – (20 Marks)

Answer all questions.
Question 11
In subparts (i) and (ii) choose the correct options and in subparts (iii) to (v) answer the
questions as instructed.
(i) What is the difference between Total Assets and Current Liabilities? [1]
(a) Total Liabilities
(b) Shareholders’ Funds
(c) Total Debt
(d) Capital Employed
(ii) While preparing its Cash Flow Statement, which of the following will be classified [1]
by a company as its Cash Outflow from Investing Activities?
P Investment in Government Securities
Q Investment in bank deposits (having maturity of six months)
R Proceeds from redemption of liquid mutual fund units
S Proceeds from bank deposits with original maturity of less than three months
(a) P and Q
(b) R and S
(c) Only P
(d) Only R
(iii) A company has a Quick Ratio of 1·8:1. Mention whether this ratio will improve / [1]
reduce / not change after it sells a machine worth ₹ 1,20,000 at a loss of ₹ 30,000.
(iv) State whether creditors would prefer lending to a company with a high Debt-Equity [1]
Ratio or a low Debt-Equity Ratio. Give a reason.
(v) An extract of the Balance Sheet of Nova Ltd. shows: [1]

Particulars 31.3.2023 (₹) 31.3.2022 (₹)

Share Capital (Equity shares @ ₹ 10 each) 8,00,000 5,00,000
Securities Premium 70,000 1,70,000
During the year 2022-23, the company raised its share capital by issuing bonus shares
to the shareholders at the beginning of the year in the ratio of 1:5 (one bonus share
was issued for every five equity shares). The balance shares were issued for cash to
the public.
How many shares were issued for cash by the company?

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Comments of Examiners
(i) Majority of the candidates chose the
correct option (d). Some candidates made Suggestions for teachers
an error by choosing option (a). − Ensure that the students understand the
(ii) The majority of the candidates responded computation of capital employed both
selection g the correct option (a). from the assets side and the liabilities side
(iii) Majority of the candidates wrote the of the Balance Sheet.
correct answer. Some candidates wrote − Adhere to the scope of the syllabus very
‘not change’ as they did not increase the diligently and also make students practice
quick assets with the amount of the sale problems similar to the ones given in the
specimen papers.
proceeds.
(iv) Majority of the candidates wrote the
correct answer along with stating the right
reason.
(v) Majority of the candidates were not able to give the correct number of 20,000 shares issued by
the company for cash as they did not take into account the 1,000 bonus shares issued from the
Securities Premium and thus the balance of 2,000 shares issued for cash. Some candidates wrote
2,00,000 shares instead of ₹ 20,000shares.

MARKING SCHEME
Question 11
(i) (d) or Capital Employed

(ii) (a) or P and Q

(iii) Improve

(iv) Low Debt-Equity Ratio

Reason: A low Debt-Equity Ratio implies larger margin of safety for the creditors.
20,000 shares
(v)
Workings: Bonus shares worth = 5,00,000 / 5= ₹ 1,00,000 = 10,000 shares

Therefore 3,00,000 -1,00,000 = ₹ 2,00,000 worth of shares for cash= 20,000 shares
Or ₹ 1,00,000 of Securities Premium used for issuing bonus shares. So, remaining
₹ 2,00,000 capital issued for cash= 20,000 shares.

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2024 ISC- Accounts

Question 12 [3]
Following is the Comparative Income Statement of Violet Ltd. for the years ending
31.3.2023 and 31.3.2022.
You are required to present the Comparative Income Statement in its complete form
after calculating the missing information represented by “??”.
Comparative Income Statement of Violet Ltd.
For the years ending 31.3.2023 and 31.3.2022

Particulars 31.03.2023 31.03.2022 Absolute %

(₹) (₹) change Change
Revenue from Operations ?? 7,098 364 ??
Expenses 8,998 7,931 ?? ??
Net Profit ?? (833) (703) ??

Comments of Examiners
Most of the candidates answered this question
correctly. Majority of the candidates presented Suggestions for teachers
the Comparative Income Statement in its − Give practice to solve questions with %
complete form. change up to two decimal places.
A few common errors made by some candidates − Ensure that students are able to
were: understand how to round off the second
- Not presenting the Comparative Income decimal place.
Statement in its complete Form but simply − Guide the students in solving questions
writing the missing figures. where blanks have to be filled up.
- Not calculating the % change up to two
decimal places.
- Not rounding of the second decimal place correctly.
- Not indicating a negative net profit for the year 2022-23.

MARKING SCHEME
Question 12
Comparative Income Statement of Violet Ltd.
For the year endings 31.3.2023 and 31.3.2022 (₹ in crores)
Particulars 31.03.2023 31.03.2022 Absolute %
(₹) (₹) change (₹) Change
Revenue from Operations 7,462 7,098 364 5·13
Expenses 8,998 7,931 1,067 13·45
Net Profit (1,536) (833) (703) (84·39)

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Question 13
Based on the following information of Neon Ltd., answer the questions given below in
relation to the Cash Flow Statement of the company for the year 2022-23.
Particulars 31.3.2023 (₹) 31.3.2022 (₹)
Provision for Tax 80,000 50,000
7% Debentures 8,00,000 3,00,000
__
Unclaimed Dividend 6,000
Plant & Machinery (at book value) 1,00,000 1,00,000
Land 4,50,000 6,00,000
Note: Dividend proposed in the years 2021-22 and 2022-23 were ₹ 30,000 and ₹ 40,000
respectively.
Additional information:
During the year 2022-23, the company:
(a) Provided ₹ 75,000 for tax.
(b) Issued 7% Debentures at a discount of 5%.
(c) Purchased Plant & Machinery for ₹ 40,000.
(i) What is the amount of tax paid by the company? [1]
(ii) Give the reason for the opening book value and closing book value of Plant & [1]
Machinery remaining the same, despite the purchase of a machine during the year.
(iii) What is the inflow of cash from the issue of 7% Debentures? [1]
(iv) Give the company’s outflow of cash for dividend paid to the shareholders. [1]
(v) State with reason whether Neon Ltd. will consider the decrease in the amount of land [2]
as an Operating Activity or as an Investing Activity, while preparing its Cash Flow
Statement.
OR
From the following Balance Sheets of Halogen Ltd., you are required to prepare a [6]
Cash Flow Statement (as per AS 3) for the year 2022-23.
Balance Sheets of Halogen Ltd.
As at 31st March, 2023 and 31st March, 2022
Particulars Note 31.3.2023 31.3.2022(₹)
No. (₹)
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 4,50,000 4,00,000
(Equity shares @ ₹ 10 each)
(b) Reserves and Surplus 1,06,000 (20,000)
(Statement of P/L)
2. Non- Current Liabilities
Long-term Borrowings 6,00,000 4,00,000
(15% Debentures)
3. Current Liabilities
Short-term Provisions 50,000 70,000
(Provision for Tax)
TOTAL 12,06,000 8,50,000

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II ASSETS

1. Non-Current Assets
Property, Plant & Equipment &
Intangible Assets
(i) Property, Plant & Equipment 1. 4,80,000 7,00,000
2. Current Assets
(a) Current Investments 2,56,000 10,000
(b) Cash & Bank Balances 4,70,000 1,40,000
(Cash at Bank)
TOTAL 12,06,000 8,50,000

Notes to Accounts:

Particulars 31.3.2023 (₹) 31.3.2022 (₹)

1. Property, Plant & Equipment
Plant & Machinery 7,42,000 9,00,000
Less Accumulated Depreciation (2,62,000) (2,00,000)
Additional information:
During the year 2022-23, the company:
(a) Issued additional debentures on 1st October, 2022.
(b) Sold Plant & Machinery, the book value of which was ₹ 1,20,000 (accumulated
depreciation ₹ 38,000), for ₹ 50,000.

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Comments of Examiners
(i) This option was well answered by majority
of the candidates who attempted it.
Suggestions for teachers
However, some candidates wrote the amount − Explain the increase / decrease of every
of tax provided as tax paid. item given in the syllabus which has to be
(ii) Some candidates wrote sale/purchase as the considered in the preparation of a Cash
reason. Flow Statement with reasons.
(iii) A few candidates did not take into − Ensure that the students have clearly
consideration the discount on the issue of understood the preparation of the Asset
A/c both at its Gross Value along with the
debentures.
Accumulated Depreciation A/c and the
(iv) A few candidates did not consider that Asset A/c at its Net Value.
unclaimed dividend would have reduced the − Instruct students to show the calculation
outflow of cash for dividend paid to the of 'Net Profit before Tax' as a working
shareholders. note and not in the main body of the Cash
(v) Some candidates wrote both operating and Flow Statement.
investing activity. A few candidates were − Give sufficient practice to the students in
unable to give the reason for the reduction in the treatment of writing off capital losses
the amount of land. from capital profits while preparing a
OR Cash Flow Statement.
Most of the candidates were able to answer this − Provide practice of sufficient number of
question correctly. However, some candidates, problems with hidden adjustments
did not record the interest on debentures, a hidden involving interest on debentures and
interest on investments.
adjustment, as a non- operating expense under
− Ensure that the students understand the
Operating Activities and an outflow of cash under
meaning of the terms accumulated
Financing Activities. Some candidates were depreciation and depreciation charged.
unable to calculate the depreciation charged on − Insist that students must mention the
Plant & Machinery during the year. period for which the Cash Flow
A few candidates also did not mention the period Statement is prepared.
for which the Cash Flow Statement was being
prepared.

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MARKING SCHEME
Question 13
(i) ₹ 45,000

(ii) Depreciation of ₹ 40,000 charged during the year.

(iii) ₹ 4,75,000

(iv) ₹ 24,000

(v) As an inflow of cash under Investing Activity

Reason- Land never depreciates / Sale of Land

OR
Working Note: 1 Plant & Machinery A/c
Particulars Amount (₹) Particulars Amount (₹)
To Balance b/d 9,00,000 By Acc. Depreciation 38,000
By Bank 50,000
By Loss on sale 70,000
By Balance c/d 7,42,000
9,00,000 9,00,000
Working Note: 2 Accumulated Depreciation A/c
Particulars Amount (₹) Particulars Amount (₹)
To P/M A/c 38,000 By Balance b/d 2,00,000
To Balance c/d 2,62,000 By Depreciation 1,00,000
3,00,000 3,00,000

Working Note: 3 (₹)

Net Profit for the year 1,26,000
Provision for Tax 50,000
Net Profit before Tax 1,76,000
Cash Flow Statement of Halogen Ltd.
For the year ending 31st March, 2023/ For the year 2022-23
Particulars (₹) (₹)
I. Cash from Operating Activities
NP before Tax (WN 3) 1,76,000
Add non op / non cash exp
Depreciation on Plant & Machinery 1,00,000
Loss on sale of Plant & Machinery 70,000
Interest on 15% Debentures 75,000
Net Op Profit before WC changes 4,21,000
Less Current Investments (2,46,000)
Cash from Operating Activities before Tax Paid 1,75,000
Less Tax paid (70,000)

Cash flow from Operating Activities 1,05,000

II. Cash from Investing Activities
Sale of Plant & Machinery 50,000
Cash flow from Investing Activities 50,000
III. Cash from Financing Activities
Issue of Share Capital 50,000
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2024 ISC- Accounts
Issue of 15% Debentures 2,00,000
Interest on 15% Debentures paid (75,000)
Cash Flow from Financing Activities 1,75,000
Net increase in Cash as per I, II and III 3,30,000
Add Opening Cash and Cash Equivalents
Cash at Bank 1,40,000
Closing Cash and Cash Equivalents
Cash at Bank 4,70,000
4,70,000 4,70,000

Question 14 [6]
Answer any three of the following questions.
(i) From the following particulars of Hind Ltd., calculate the preference dividend
paid by the company.
Particulars
Net Profit before Tax ₹ 20,00,000
Equity Shares of ₹ 10 each (Market Value ₹ 15) ₹ 40,00,000
Tax Rate 30%
Earning per share ₹ 2·75
(ii) Calculate the Current Ratio (up-to two decimal places) of Windlas Biotech Ltd.
from the following extract of its Annual Report of 2021-22.
Particulars (₹) (in
millions)
Opening Inventory of consumables (raw materials) 264·79
Closing Inventory of consumables (raw materials) 389·85
Opening Inventory of finished goods and work- 149·82
in-progress
Closing Inventory of finished goods and 197·24
work-in-progress
Current Assets (other than inventory of consumables 3,229·23
and of finished goods and work-in-progress)
Current Liabilities 936·52
(Source: Annual Report 2021-22 of Windlas Biotech Ltd.)
(iii) For the year 2022-23, the Return on Investment of Yolo Ltd. was 20%; its Capital
Employed being ₹ 50,00,000.
(a) You are required to give the formula used by Yolo Ltd, to calculate the
Return on Investment.
(b) You have been provided with two components for calculating Return on
Investment. Calculate the missing third component.
(iv) Calculate the Working Capital Turnover Ratio of Moonlight Ltd., (up-to two
decimal places) from the following particulars.
Particulars
Cash ₹ 10,00,000
Short-term Loans and Advances ₹ 3,00,000
Inventory ₹ 2,00,000
Trade Payables ₹ 5,00,000
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2024 ISC- Accounts
Cost of Revenue from operations ₹ 12,00,000
Gross Profit on Cost of Revenue from Operations 25%

Comments of Examiners
(i) Some of the candidates answered this
question correctly. Majority of the
Suggestions for teachers
candidates who attempted this option did not − Explain to the students the logic behind
use the correct formula of calculating closing inventory being part of current
‘Earning per share’ and hence were unable to assets and not the opening inventory.
get the correct amount of preference − Ensure that the students are able to
dividend. recognise the current assets and current
liabilities.
(ii) Most of the candidates considered the
− Encourage students to write the terms in
opening inventory of consumables and
full and instruct that they shall refrain
finished goods and work-in-progress to from using short forms such as CA, CL,
calculate the current assets. Some candidates CE, RFO and WC.
did not consider the closing inventory of − Give sufficient practice for questions
consumables. pertaining to the use of percentage.
(iii)(a) Majority of the candidates were unable to
write the correct formula for calculating
‘Return on Investment’. Candidates wrote
‘Net profit after tax’ or ‘Net Profit before tax’ instead of ‘Net Profit before Interest and Tax’.
(b) Most of the candidates were able to calculate the missing third component. However, some
candidates multiplied the numerator with 100 and also took 20% and as a result got ₹ 10 crore
as the net profit before interest and tax.
(iv) Majority of the candidates wrote the incorrect formula to calculate the ‘Working Capital
Turnover Ratio.’ They either calculated it on Cost of Revenue from Operations or multiplied the
Revenue from Operations with 100. Most of the candidates considered Short-term Loans and
Advances as a current liability. Some candidates did not write the unit in the answer.

MARKING SCHEME
Question 14
Net Profit after Tax and Preference Dividend
(i) Earning per share = No. of Equity Shares
Net Profit after Tax and Preference Dividend
2·75 = 𝟒𝟒,𝟎𝟎𝟎𝟎,𝟎𝟎𝟎𝟎𝟎𝟎
Net Profit after Tax and Preference Dividend = 4,00,000 × 2·75= 11,00,000
11,00,000 = 20,00,000 – 6,00,000 – Preference Dividend
Preference Dividend = ₹ 3,00,000
𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪 𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨
(ii) Current Ratio = 𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪 𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳

Current Assets = 3229·23 + 389·85 +197·24= ₹ (in millions) 3816·32

3816·32
=
936·52

= 4·08 :1
𝑵𝑵𝑵𝑵𝑵𝑵 𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷 𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃 𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰 𝒂𝒂𝒂𝒂𝒂𝒂 𝑻𝑻𝑻𝑻𝑻𝑻
(iii) Return on Investment = ×100
𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪 𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬
𝑵𝑵𝑵𝑵𝑵𝑵 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑 𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃𝒃 𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰𝑰 𝒂𝒂𝒂𝒂𝒂𝒂 𝑻𝑻𝑻𝑻𝑻𝑻
Revenue from Operations = 𝟓𝟓𝟓𝟓,𝟎𝟎𝟎𝟎,𝟎𝟎𝟎𝟎𝟎𝟎
×100 = 20
20
Net Profit before Interest and Tax = 100 × 50,00,000
= ₹ 10,00,000
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2024 ISC- Accounts
𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 𝒇𝒇𝒇𝒇𝒇𝒇𝒇𝒇 𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶𝑶
(iv) Working Capital Turnover Ratio = 𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾 𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪𝑪
15,00,000
= 10,00,000
= 1·5 times

SECTION C – (20 Marks)

Answer all questions.
Question 15
In subparts (i) and (ii), choose the correct options and in subparts (iii) to (v) answer the
questions as instructed.
(i) Which one of the following is the shortcut key in MS Excel to ‘undo the last action’? [1]
(a) Ctrl + Z
(b) Ctrl + V
(c) Ctrl + Y
(d) Ctrl + X
(ii) Which one of the following files contains one or more worksheets to organise data? [1]
(a) Workbook
(b) Excelbook
(c) Datasheet
(d) Spreadsheet
(iii) What is the intersection of a column and a row in a worksheet called? [1]
(iv) Which programming language is used to write a Macro in MS Excel? [1]
(v) State any one advantage of maintaining a journal using an electronic spreadsheet [1]
instead of preparing it manually.

Comments of Examiners
Suggestions for teachers
Very few candidates attempted this question.
Give more practice to students in attempting
questions based on application of
spreadsheets.

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2024 ISC- Accounts

MARKING SCHEME
Question 15
(i) (a) or Ctrl + Z

(ii) (a) or Workbook

(iii) Cell

(iv) Visual Basic

• Formulae can be used to instantly recalculate totals.
• It is easy to make changes, save work and take print outs.
(v) • Flexible presentation by highlighting or underlining.
• Using spreadsheet functions like IF statements, the SUM function, LOOKUP
function. (Any one option)

Question 16 [3]
(i) What is the use of UPDATE command in SQL?
(ii) Name the DBMS language component which can be embedded in a programme.

Comments of Examiners
Suggestions for teachers
Very few candidates attempted this question.
Provide more practice to students in
attempting questions based on Database
Management System.

MARKING SCHEME
Question 16
(i) The UPDATE command is used to update existing rows in a table.

(ii) The data manipulation language

Question 17 [6]
Answer any three of the following questions.
(i) Give the difference between data and information with the help of an example for
each.
(ii) Arrange the following in hierarchy to create a DBMS:
FIELD, DATA, FILE, RECORD
(iii) Give any two basic commands of SQL.
(iv) State any two requirements that should be considered before making an investing
decision to choose between ‘Server database’ or ‘Desktop database’.

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2024 ISC- Accounts

Comments of Examiners
Suggestions for teachers
Very few candidates attempted this question.
Provide adequate practice to ensure that
students attempt questions based on Database
Management System.

MARKING SCHEME
Question 17
Data Information
(i)
Various elements or items of accounting When data is processed at one level keeping in
transactions are essentially the data items view the requirements of the decision maker, it
which are processed through an accounting becomes information at another level.
software to generate different sets of
information in the form of accounting reports Example: Using the data regarding the
such as journals and ledger. Example: Name of employee, the calculation of the amount to be
the employee, working days, basic salary etc. paid to an employee as bonus is information.

(ii) FILE, RECORD, FIELD, DATA

• Select
(iii)
• Insert into
• Alter table
• Drop table
• Update
• Delete (Any two options)
• What date is to be stored in the database?
(iv)
• Who will capture or modify the data?
• How frequently will the data be modified?
• Who will be the users of the database?
• What tasks will the users of the database perform?
• Will the database (backend) be used by any other frontend application?
• Will access to database be given over LAN/ Internet?
• The level of hardware and operating system available. (Any two options)

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Question 18 [6]
Mink & Sons run a bakery that sells sandwiches, cookies, muffins and pastries. The raw material
is sourced from a well-known supplier and fresh items are prepared every day for the customers.
The cost of each item also includes the cost of cutlery and paper napkins.
During the festive season, the bakery gives small discounts to its customers.
The spread sheet given below is a summary of its Purchases, Sales and Unsold Stock for the
month of October, 2023:
A B C D E F G H I J K

1 Bakery No. of Cost Total No. of List Festival Total Cost of Cost of Profit
Items items Price Cost Items Price Discount Sales items unsold (₹)
prepared per (₹) Sold per per item (₹) sold stock
item item (₹) (₹) (₹)
(₹) (₹)

2 Sandwiches 275 80 22,000 220 105 5 ?? 17,600 4,400 4,400

3 Cookies 250 50 12,500 220 75 5 15,400 ?? 1,500 4,400

4 Muffins 330 40 13,200 300 75 5 21,000 12,000 ?? 9,000

5 Pastries 225 60 13,500 200 95 ?? 18,000 12,000 1,500 6,000

6 Total 1,080 61,200 940 23,800

Based on the above transactions and the information given in the spreadsheet, answer
any three of the following questions:
(i) Write the formula to calculate the total sales of sandwiches in cell H2.
(ii) Give the formula to calculate the cost of cookies sold in cell I3.
(iii) Write the formula to calculate the cost of unsold stock of muffins in cell J4.
(iv)
(a) Give the formula to calculate the festival discount on the sale of Pastries in cell
G5.
(b) Calculate the amount of festival discount per pastry in cell G5.

Comments of Examiners
Very few candidates attempted this question. Suggestions for teachers
Provide more practice to students in
attempting questions based on application of
spreadsheets.

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2024 ISC- Accounts

MARKING SCHEME
Question 18
(i) = E2*(F2-G2)
Or
=I2+K2 (Any one)

(ii) = B3*C3 – (B3-E3)*C3

Or
=D3-J3
Or
=H3 – K3 (Any one)
(iii) = (B4*C4)-I4
Or
=D4-I4 (Any one)
(iv) (a) =F5 - (H5/E5)
Or
=F5 − ((D5-J5+K5)/E5) (Any one)
(b) ₹ 5

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GENERAL COMMENTS
Topics found difficult by candidates

• Mentioning the head and sub-head of the contingent liability.

• Calculation of subscribed capital.
• Calculation of interest on debentures.
• Calculation of net gain on reissue of forfeited shares.
• Gain on sale of DRI.
• Formula and valuation of goodwill by the Average Profit Method.
• Dissolution of partnership firm- treatment of realisation expenses and the realizable value
of furniture.
• Determining the amount of Preference Dividend.
• Calculating the net gain on the reissue of forfeited shares.

Concepts in which candidates got confused

• The term ‘dissolution of partnership’.

• The journal entry for the amount due to the debenture holders.
• The journal entry for permanent withdrawal made by a partner.
• Adjusting the capital accounts of the continuing partners through cash / current account.
• Journal entry to close the partner’s drawings account when the firm follows the fixed
capital method.
• Calculating the depreciation charged on the machine sold while preparing the Cash Flow
Statement.
• Calculating the number of shares issued for cash.

Suggestions for candidates

(i) To gain comprehensive knowledge of the subject

• Not to neglect the class XI syllabus
• Ensure that the accounting concepts are clear. This will help in answering the theory
questions.
(ii) To perform better in the examination.
• Understand the concept before attempting any question.
• Do not resort to selective study. The entire syllabus must be done in totality.
• The scope of the syllabus should be strictly adhered to.
• Do not neglect Class XI syllabus.
• Do not write short forms in the formulae of the ratios.
• Do not write short forms in the particulars of ledger accounts.
• Write complete amounts in the ledger accounts.
• Always practice sums with proper formats drawn and correct dates/ years.
• All journal entries must be accompanied with narrations.
• Practice solving past years' question papers.
• Solve the sample papers and CFQs released by CISCE.
• Work on time management. Make effective use of the reading time.
39