ALL KERALA BHAVAN’S MODEL EXAMINATION

2024-25
ANSWER KEY
SET II
Std: XII ACCOUNTANCY (055) Max. Marks: 80
Time: 3 hrs.

PART A
(Accounting For Partnership Firms and companies)
1 A) ₹ 59000 1
2 B) Both A and R are true but R is not the correct explanation of A. 1

3 A)For providing premium on redemption of debentures and preference shares. 1

OR
A) Rs 5,00,000
4 B) Rs 2,80,000 1
OR
B) N’s Current a/c Dr 8,000
To L’s Capital a/c 5,000
To M’s Capital a/c 3,000
5 B) 54,000 1
6 D) Rs 1500 1
OR
A) Rs 1500
7 A) ₹ 5,00,000 1

8 D) Rs 1,50,000 (Loss) 1
OR
A) Nitin’s Capital a/c Dr 3,000
To Realisation a/c 3,000
9 C) Azad’s current a/c will be debited by Rs 1000 1

10 B) Rs 80,000 1

11 D) Credit balance or nil balance in their capital accounts. 1

12 A) Share Capital 1

13 C) 300 shares, Rs 240 1

14 D) Nishal capital a/c Dr 9000 1

To Ishal capital 9000
15 C) ₹ 30,000 1
OR
B) Remaining partners (who have sacrificed) as well as retiring partners.
16 D) 2:2:3 1
17 A) Realisation a/c Dr 34000 ½
To Star Ltd (10000 + *24000) 34000
*1200000 x 2% = 24000
B) Star Capital a/c Dr 14000
Moon Capital a/c Dr 14000 ½
To Deferred advertisement 28000
C) (i) Moon capital a/c Dr 30000
To Realisation 30000 1
(ii) No entry
(iii) Bank a/c Dr 25000 ½
To Realisation 25000
½

18 Super Profit = Average profit – Normal profit

Normal profit = Capital employed x Normal rate/100
Capital employed = Total asset except Goodwill – outside liabilities
(6,14,000 – 61000) – (50,000 + 25,000) 1
5,53,000 – 75,000 =4,78,000
OR
Capital employed = Capital + reserves- Goodwill
5,00,000 + 39,000 – 61,000 = 4,78,000
Normal profit = 4,78,000 x 10/100 = 47,800
Super profit = 75,000 – 47,800 = 27,200 1
Goodwill = Super profit x 3 = 27200 x 3 = 81600
Kartik’s share of G/W = 81600 x 1/6 =13,600 1
OR
Av. Profit = (80,000 + 90,000 + 1,00,000)/3 = 90,000 1
Estimated profit till date of death = 90000 x 4/12 = 30,000
C’s share = 30000x 1/3 = 10,000 1
Journal entry:
Profit and Loss suspense a/c Dr 10,000
To C’s capital a/c 10,000 1
19 1.Sundry Assets a/c Dr 50,00,000
To Sundry Liabilities 7,50,000
To Capital Reserve 5,00,000 1.5
To Herbal India Ltd 37,50,000

2. Herbal India Ltd Dr 37,50,000

Loss on issue of Debenture Dr 3,00,000
To Bank 4,50,000 1.5
To 8% Debenture 30,00,000
To Securities Premium 3,00,000
To Prem. On redemption of Deb. 3,00,000
OR
Share capital a/c(300 x 10) Dr 3000
To Forfeited shares a/c (300 x 3) 900 1
To Calls in arrears (300 x 7) 2100

Bank a/c(250 x 8) Dr 2000

 Forfeited shares a/c (250 x 2) Dr 500 1
To Share Capital(250 x 10) 2500

Forfeited shares a/c Dr 250

To Capital Reserve 250 1
900/300 x 250 =750
750-500 = 250
20 Case 1: Workmen compensation Reserve a/c Dr 40,000 1
To Workmen compensation claim 25,000
To A’s Capital 6,000
To B’s Capital 9,000

Case 2 – Workmen compensation Reserve a/c Dr 40,000

To Workmen compensation claim 40,000 1

Case 3- Workmen compensation Reserve a/c Dr 40,000

Revaluation a/c Dr 10,000
To Workmen compensation claim 50,000 1

A’s Capital a/c Dr 4,000

B’s Capital a/c Dr 6,000
To Revaluation a/c 10,000
21 Balance Sheet as at ……………
Particulars Note No: Amount
I Equity and Liabilities
(i) Share holder’s funds 1
(a) Share Capital 2,40,000
Note to Accounts:
Share Capital
Particulars Amount
Authorised Share Capital
1,00,000 equity shares of ₹ 10 each 10,00,000 ½
Issued Capital:
28,000 Equity shares of ₹ 10 each 2,80,000 ½
Subscribed Capital:
Subscribed and fully paid up
8000 equity shares of ₹ 10 each 80000 1
Subscribed but not fully paid up
20,000 Equity shares of ₹ 8 each 1,60,000 1

2,40,000
22 Harish executor a/c
Date Particulars Amount Date Particulars Amount
31/3/15 To Bank 22,500 31/3/15 By H’s Capital 90,000
1
31/3/15 To Bala c/d 67,500
90,000 90,000
31/3/16 To Bank 34,650 1/4/15 By Bala b/d 67,500
To Bala c/d 45,000 31/3/16 By Interest 12,150 1
79,650 79,650
31/3/17 To Bank 30,600 1/4/16 By Bala b/d 45,000 1
 To Bala c/d 22,500 31/3/17 By Interest 8,100
53,100 53,100
31/3/18 To Bank 26550 1/4/17 By Bala b/d 22,500
31/3/18 By Interest 4050 1
26550 26550

23 Journal
Date Particulars Dr. Amount Cr, Amount
Bank a/c Dr 21,00,000 1/2
To Share application a/c 21,00,000
1,40,000 x 15
Share application a/c Dr 21,00,000
To Share Capital 140000x10 14,00,000 1
To Securities Premium 7,00,000
Share Allotment a/c Dr 21,00,000
To Share Capital 21,00,000 1/2
Bank a/c Dr 20,25,000
Calls in arrear a/c Dr 75,000 1
To Share Allotment 21,00,000
Share Capital a/c Dr 1,25,000
To forfeited shares a/c 50,000 1
To Calls in arrears a/c 75,000
Bank a/c Dr 60,000
To Share Capital a/c 50,000 1
To Securities Premium a/c 10,000
Forfeited Shares a/c Dr 20,000
To Capital Reserve a/c 20,000 1
50000/5000 x 2000

OR

Date Particulars Dr Amount Cr. Amount 1

1 Bank a/c Dr 1,60,000
To Loan from SBI 1,60,000
1
Debenture Suspense a/c Dr 2,00,000
To 12% Debenture a/c 2,00,000
1
2 Bank a/c Dr 1,10,000
To Debenture appl &Allot 1,10,000
Deb appl.& allot. a/c Dr 1,10,000
1
Loss on issue of Deb. a/c Dr 5,000
To 12% Deb 1,10,000
To Sec prem. Reserve 10,000
To Prem on redemption 5,000
1
3 Machinery a/c Dr 4,60,000
To Alpha Ltd 4,60,000
Alpha Ltd a/c Dr 4,60,000 1
To 9% Debenture 4,00,000
To Sec Prem. Reserve 60,000
No: of debentures = 4,60,000/115 = 4000 Debentures
24 Partner’s Capital a/c
X Y Z X Y Z
Def. 20,000 20,000 30,000 By 6,25,000 4,00,000 5,25,000
Rev Bala
Invest. 50,000 b/d
Y’s Rev 30000 30000 45000
capital 64,000 96,000 By X
Y’s By Z 64000
Loan 96000
a/c 5,20,000
By
Bala bank 3
c/d
12,80,000 19,20,000 7,09,000 14,76,000

1364000 590000 2046000 1364000 590000 2046000

Balance Sheet of Reconstituted firm

Liabilities Amount Assets Amount
Creditors 80,000 Building 5,00,000
Bank Overdraft 22,000 Machinery 2,50,000
Long term debts 2,00,000 Furniture 3,50,000
Capital accounts: Investment 50,000
X 12,80,000 Stock 3,00,000
Z 19,20,000 Debtors 2,00,000
Employee Provident Less Prov. (10000) 1,90,000
Fund 38,000
Y’s Loan a/c 5,20,000 Bank 22,05,000
3
40,60,000 40,60,000
OR
Profit and Loss Appropriation a/c
Particulars Amount Particulars Amount
To Interest on capital: By Profit & Loss a/c
Monu’s current a/c 25000 (3,06,000 – 6000) 3,00,000
Bolu’s current a/c 40000
Raju’s current a/c 20000 85,000 By Interest on drawings
To Salary Monu 1,800
Monu’s current a/c 4,000 (40000*4.5/12*12%)
To Commission Bolu 3,300 7,500
Bolu’s current a/c 30,000 (60000*5.5/12*12%)
Raju 2400
To Profit transferred to: (80000*3/12*12%)
Monu’s Current a/c 56,550
Less: Guarantee ( 37300) 19,250
Bolu’s current a/c 56550
Less : Guarantee (37300) 19,250
Raju’s current a/c 75400
Add: Guarantee 74600 1,50,000 3
(37300+37300)
3,07,500 3,07,500
 Partners current a/c
M B R M B R
Drawing 40,000 60,000 80,000 By IOC 25,000 40,000 20,000
IOD 1,800 3,300 2,400 Salary 4,000
Comm. 30,000
P&L 19,250 19,250 1,50,000
Bala c/d 6,450 25,950 87,600
48,250 89,250 1,70,000 48,250 89,250 1,70,000

25
Date Particulars Dr Amount Cr. Amount
1 Bank a/c Dr 2,15,000 1
To Realisation 2,15,000
2 Bank a/c Dr 17,46,000
To Realisation 17,46,000 1
3 (i) Bank a/c Dr 90,000
To Realisation 90,000
1
(ii) Maya’s Capital a/c Dr 16,000
To Realisation 16,000
4 Bank a/c Dr 20,000
To Realisation 20,000 1
5 Realisation a/c Dr 85,000
To Bank a/c 85,000 1
6 Realisation a/c Dr 60,000
To Maya’s capital a/c 60,000 1
26 (i) B 1
(ii) B 1
(iii) D 1
(iv) D 1
(v) A 1
(vi) A 1
Part B: - Analysis of Financial Statements
(Option – I)
27 All of the above 1
OR
Interest coverage ratio.
28 All the above 1
29 Operating activity 1
OR
Subtracted under Operating activities as Extra-ordinary item and inflow under
Investing Activity.
30 A) Both (A) and (R) are true, but (R) is the correct explanation of (A). 1
31 Item Major Head Sub Head ½
Provision for tax Current Liabilities Short-term provisions each
Loan payable on demand Current Liabilities Short term Borrowings
 Computer No-Current Assets Property, plant &
Equipment
Goods acquired for Current Assets Inventories
trading
Current maturities of Current liabilities Short-term borrowings
long-term debt
Prepaid expense Current assets Other current assets
32 Particulars 2017 2018 Change % change
Revenue from operation 10,00,000 12,00,000 2,00,000 20 ½
Add: Other income 2,50,000 3,00,000 50,000 20 each
Total Revenue 12,50,000 15,00,000 2,50,000 20
Less Expenses:
Employee benefit exp 3,75,000 6,00,000 2,25,000 60
Profit before tax 8,75,000 9,00,000 25,000 2.86
Less Tax 3,50,000 3,60,000 10,000 2.86
Profit after tax 5,25,000 5,40,000 15,000 2.86
33 A) Inventory turnover ratio = 2
cost of revenue from operations / Average Inventory
Cost of revenue from operation =
Revenue from operation – G/P
G/P = 25% on sales ie 600000 x 25/100 = 1,50,000
Cost of revenue = 600000 – 150000 = 450000

Inventory turnover = 450000/Av inventory

5 = 4,50,000/ Av inventory
Av inventory = 450000/5 = 90,000
Let op.inventory = x Clo. Inventory – x+12000

Av. Inventory = Op invent. + clo. Invent/2

90000 = x+x+12000 / 2
90000 * 2 = 2x + 12000
180000 = 2x +12000
2x = 180000-12000
2x = 168000
x=168000/2 = 84000 (opening inventory)
Clo. Inventory = 84000+12000=96000
B) G/P Ratio = Gross profit / net sales *100
G/p = 25% of 16,00,000 = 4,00,000 2
Inventory turn over ratio = CGS/ Av inventory
8 = CGS/2,00,000
CGS = 2,00,000 *8 = 16,00,000
Revenue from operation = CGS + GP
16,00,000 + 4,00,000 = 20,00,000
G/P ratio = 4,00,000/20,00,000 *100 = 20%

OR
(i) Decrease
(ii) Decrease 2
(iii) Increase
 (iv) No change
B) C.L = C A – W.C
20,00,000 – 4,00,000 = 16,00,000
Long term Debt = Total Liabilities – C L 2
48,00,000- 16,00,000 = 32,00,000
Total Assets = Shareholders’ fund + Total liability
8,00,000+48,00,000 = 56,00,000
*Reserves & Surplus included in shareholders fund
34 Cash flow from Investing Activity
Particulars Amount Amount
Cash Inflow:
Proceeds from sale of Patents 1,00,000
Proceeds from sale of Machinery 50,000
Proceeds from sale of 10% Long term Investment 1,00,000 6
Interest received on 10% Long term Investment 16,000
Dividend Received from ITC 10,000
Rent Received 30,000 3,06,000
Cash Outflow:
Purchase of Goodwill (2,00,00)
Purchase of Machinery (4,40,000)
Purchase of 10% Long-term Investment (1,80,000) (8,20,000)
Net Cash used in Investing activity (5,14,000)

Patents a/c
Particulars Amount Particulars Amount
To Bala b/d 2,80,000 By Statement of P&L 40,000
To Profit & Loss a/c 20,000 By Bank (bal.fig.) 1,00,000

By Bala c/d 1,60,000

3,00,000 3,00,000

Machinery a/c
Particulars Amount Particulars Amount
To Bala b/d 10,20,000 By Depre. a/c 1,40,000
To Bank a/c (bal.fig) 4,40,000 By Bank (Sales) 50,000
By Statement of P& L 30,000

By Bala c/d 12,40,000

14,60,000 14,60,000

10% Long term Investment

Particulars Amount Particulars Amount
To Bala b/d 60,000 By Bank (Sales 1,00,000
To Bank a/c 1,80,000 Bal.fig)
To Profit & Loss a/c 20,000

By Bala c/d 1,60,000

 2,60,000 2,60,000

OR
Cash Flow from Operating Activity

Particulars Amount Amount

Net Profit before tax & Extraordinary items (WN 1) 10,000
Add: Non-cash Expenses:
Depreciation on Machinery (WN 3) 11,000
Goodwill amortised 10,000 21000
31,000
Less: Non-operating incomes:
Gain on sale of Machinery (WN 2) (4000) (4000)
Operating profit before working capital changes 27,000
Add: Decrease in Current assets
Trade receivable 5,000
32,000
Less : Decrease in Current Liabilities:
Outstanding expenses (2000)

Cash flow from operating activities 30,000

Working Notes:
1. Calculation of Net Profit before tax and extra- ordinary items:
Net profit for the year (35000 – 30000) 5000
Add : transfer to G/R 5000
10,000
Machinery a/c
Particulars Amount Particulars Amount
To Bala b/d 20,000 By Bank (sale) 18,000
To Statement of Profit & 4,000 By Prov. For Depre. 6000
Loss a/c ( Gain)

24,000 24,000
Prov. For Depreciation on machinery
Particulars Amount Particulars Amount
To Machinery a/c 6,000 By Bala bd 30.000

By Depreciation 11,000
To Bala c/d 35,000 (bal.fig)
41,000 41,000

27 D) =AND(C3<14,D4,200) 1
28 C) [Home] 1
OR
A) SUM and AVERAGE
29 B) Financial 1
30 A) PMT(rate,pv,nper, [fv],[type]) 1
OR
B) Design, Layout, Format
31 The points to be considered before making investment in a database: (any three) 3
(i) What all data is to be stored in the database? (ii) Who will capture or modify
the data, and how frequently the data will be modified? (iii) Who will be using
the database, and what all tasks will they perform? (iv) Will the database (
backend) be used by any other frontend application? (v) Will access to database
be given over LAN/ Internet, and for what purposes? 3 (vi) What level of
hardware and operating system is available?
32 Types of Accounting Vouchers (i) Contra Vouchers (ii) Payments Vouchers (iii) 3
Receipt Vouchers
33 Uses of conditional formatting: (i) It helps in making needed information 4
highlighted. (ii) It changes the appearance of cells ranges. (iii) Color scale may
be used to highlight cells. (iv) useful in making decision making.
OR
Features of computerized accounting system: (i) Simple and integrated. (ii)
Transparency and control. (iii) Accuracy and speed. (iv) Scalability. (v)
Reliability.
34 Two basic methods of charging depreciation are: Straight line method: This 6
method calculates fixed amount of depreciation every year which is calculated
keeping in view the useful life of assets and its salvage value at the end of its
useful life. Written down value method: This method uses current book value of
the asset for computing the amount of depreciation for the next period. It is also
known as declining balance method.
Differences: 1. Equal amount of depreciation is charged in straight line method.
Amount of depreciation goes on decreasing every year in written down value
method. 2. Depreciation is charged on original cost in straight line method. The
amount is calculated on the book value every year. 3. In straight line method the
value of asset can come to zero but in written down value method this can never
be zero. 4. Generally rate of depreciation is low in case of straight line method
but it is kept high in case of written down value method. 5. It is suitable for
assets in which repair charges are less and the possibility of obsolescence is less.
It is suitable for the assets which become obsolete due to changes in technology.