Answer Key for Accountancy

Second Pre-Board Examination

Class -XII Commerce

Q. Answers Ma
No rks
.
Part- A
(Accounting for Partnership Firms and Companies)
1 b) 11/28 1
2 d) Assertion (A) is not correct but Reason (R) is correct. 1
3 a) Purchase Consideration 1
OR
c) Goodwill Account

4 a) ₹10,00,000 1
OR
c) Super profit divided by the normal rate of return

5 c) ₹ 48,000 1
6 b) Loss on issue will be debited by ₹ 35,000 1
OR
c) ₹40,000

7 c) 48 1

8 c) ₹ 40,000 1
OR
d) Interest on Partner’s Capital.
9 c) ₹3,15,000 (5,00,000-5,000-1,80,000) 1
10 b) Charu ₹90,000 and Dushyant ₹90,000 1
Hint (Profit 3,15,000 + IOD 5,000 -IOC 1,40,000=1,80,000)

11 a) (i) b; (ii) a; (iii) d; (iv) c. 1

12 c) It can be used for writing off capital losses 1

13 c) ₹ 1,800 1

14 b) ₹ 27,500 1

15 b) ₹1,950 1
OR
a) ₹ 50,000
16 d) ₹2,000 1
17 Date Particulars L/f ₹ ₹ 3
1 A’s Capital A/c Dr. 24,000
C’s Capital A/c Dr. 24,000
To B’s Capital A/c 48,000
2 P & L Suspense A/c Dr. 16,000
To B’s Capital A/c 16,000
3 B’s Capital A/c Dr. 4,64,000
To B’s Executor A/c 4,64,000
Working note:
1) Goodwill of the firm = ₹80,000×1.5 year= 1,20,000
B’s share in Goodwill = ₹1,20,000 ×2/5 =48,000
2) Profit = growth 4% in current year
Profit = ₹ 5,00,000×24/100 ×2/5×4/12= 16,000

18 Date Particulars L/ ₹ ₹ 3
f
2018 Interest on Capital A/c 1,44,000
31 March To E’s Current A/c 36,000
i) To F’s Current A/c 48,000
To G’s Current A/c 60,000
( Int on capital credited to partner’s current
A/c)
ii) Profit & Loss A/c 1,44,000
To Interest on Capital A/c 1,44,000
(Int. on Capital Debited to P&L a/c)
iii) E’s Current A/c 10,200
F’s Current A/c 10,200
G’s Current A/c 13,600
To Profit & Loss A/c 34,000
(Net loss transfer t current account)

OR

Journal Entry
Date Particulars L/ ₹ ₹
f
2018 To Kumar’s Current A/c 11,100
31 March To Raja’s Current A/c 11,100
i)

Table Showing Adjustment

Particulars A B Total
Interest on Capital 81,000 36,000 1,71,000
Salary 50,000 36,000 86,000
Total Amount Paid (cr) 1,31,000 72,000 2,03,000
Division of firm’s loss 2,03,000 in the ratio 7:3 1,42,100 60,000 2,03,000
Net Effect 11,100 (Dr.) 11,100 (Cr.)
19 Date Particulars L ₹ ₹ 3
/
f
1 Plant & Machinery A/c 25,00,000
Stock A/c 15,00,000
Sundry Debtors A/c 8,60,000
Goodwill A/c (B/F) 2,40,000
To Sundry Creditors A/c 3,00,000
To Tulsi Bros. 48,00,000
2 Tulsi Bros. 48,00,000
To Equity Share Capital A/c 40,00,000
To Securities Premium Reserves A/c 8,00,000

Working Note:
Number of Share = 4,00,000/24=2,00,000
OR

Date Particulars L/f ₹ ₹

1 Machinery A/c 2,03,000
To K Ltd. 2,03,000
2 K Ltd. 65,000
To Equity Share Capital A/c 50,000
To Securities Premium Reserves A/c 15,000
3 K Ltd. 90,000
Discount on Issue of Debenture A/c 10,000
To 8% Debenture A/c 1,00,000
4 K Ltd. 48,000
To Bills Payable A/c 48,000
Working Note:
Purchase Consideration:
5000 Equity Share @ ₹13 ₹65,000
1,000 Debentures@ ₹90 ₹90,000
Promissory Note ₹48,000
2,03,000

20 Goodwill= Super Profit x 3 year’s Purchase 3

1) Super Profit = 36,000/2= ₹ 12,000
2) Capital Employed = Assets – creditors = ₹2,00,000- ₹10,000= ₹ 1,90,000
3) Normal Profit = Capital Employed x NRR/100
₹1,90,000 x 15/100= ₹28,500
4) Average Profit = Super Profit + Normal Profit
= 12,000 + 28,500= ₹40,500
21 Balance Sheet 4
Particulars Note No. Current Previous
Year ₹ Year ₹
I Equity and Liabilities
Shareholder’s Fund;
a) Share Capital 1 9,69,600

Notes to Accounts:
1) Share Capital:
Authorized Capital:
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Issued Capital
 1,50,000 Equity Shares of Rs. 10 each 15,00,000
Subscribed and Fully paid Capital:
1,38,800 Equity Share of Rs 7 called up 9,71,600
Less: Calls in Arrears (8,000)
Add: Share Forfeiture 6,000 9,69,600
22 Date Particulars L/ ₹ ₹ 4
f
2018 Bank A/c 1,63,000
31 March To Realization A/c 1,63,000
i) (Amount received from Debtors)
ii) Realization A/c 3,500
To Bank A/c 3,500
(Payment made to creditors)
iii) Realization A/c 2,000
To Bank A/c 2,000
(Discounted bill Dishonoured)
iv) Realization A/c 6,000
To Ravi’s Capital A/c 4,200
To Shankar’s Capital A/c 1,200
To Madhur’s Capital A/c 600
( Profit on Realization transferred to partner’s
capital A/c)
23 Date Particulars L/ ₹ ₹ 6
f
1 Bank A/c 36,00,000
To Share Application A/c 36,00,000
2 Share Application A/c 36,00,000
To Share Capital A/c 24,00,000
To Share Allotment A/c 12,00,000
3 Share Allotment A/c 24,00,000
To Share Capital A/c 16,00,000
To Securities Premium Reserves A/c 8,00,000
4 Bank A/c 11,76,000
Calls in Arrear A/c 24,000
To Share Allotment A/c 12,00,000
5 Share First Call A/c 24,00,000
To Share Capital A/c 24,00,000
6 Bank A/c 22,32,000
Calls in Arrear A/c 1,68,000
To Share First Call A/c 24,00,000
7 Share Capital A/c 4,48,000
Securities Premium Reserves A/c 16,000
To Calls in Arrear A/c 1,92,000
To Share Forfeiture A/c 2,72,000
8 Bank A/c 1,90,000
To Share Capital A/c 1,60,000
To Securities Premium Reserves A/c 30,000
9 Share Forfeiture A/c 92,000
To Capital Reserves A/c 92,000

OR
A)
Date Particulars L/ ₹ ₹
f
1 Share Capital A/c 2,100
To Share Call A/c 600
To Share Forfeiture A/c 1,500
 2 Bank A/c 600
Share Forfeiture A/c 100
To Share Capital A/c 700
3 Share Forfeiture A/c 400
To Capital Reserves A/c 400

B)
Date Particulars L/ ₹ ₹
f
1 Share Capital A/c 37,500
To Share First Call A/c 10,000
To Share Forfeiture A/c 27,500
2 Bank A/c 12,000
Share Forfeiture A/c 3,000
To Share Capital A/c 15,000
3 Share Forfeiture A/c 8,000
To Capital Reserves A/c 8,000

C)
Date Particulars L/ ₹ ₹
f
1 Share Capital A/c 22,500
Securities Premium Reserves A/c 3,000
To Share Allotment A/c 9,000
To Share First Call A/c 6,000
To Share Forfeiture A/c 10,500
2 Bank A/c 9,600
Share Forfeiture A/c 400
To Share Capital A/c 10,000
3 Share Forfeiture A/c 3,100
To Capital Reserves A/c 3,100
24 Revaluation A/c 6
Particulars ₹ Particulars ₹
To Bad Debts 1,000 By Loss on revaluation
transfer to :
A’s Capital 750
B’s Capital 250
1,000 1,000

Partner’s Capital A/c

Particulars A B C Particulars A B C
To Goodwill 30,000 10,000 By Balance b/d 54,000 35,000
To By Workmen
Revaluation Compensation
(Loss) 750 250 Reserve 3,000 1,000
To Balance c/d 39,450 30,150 By Investment
Fluctuation
Reserve 1,200 400
By Premium for
Goodwill 12000 4000

By Bank 23,200
70,200 40,400 23,200 70,200 40,400 23,200

Working Note:
Calculation of C capital
C is given 1/4th share
Remaining 3/4th share is shared by A and B
The capital of A and B after all adjustments is ₹39,450 + ₹30,150=₹69,600
Then, Total capital of the firm= 69,600 x 4/3= ₹92,800
C’s capital for 1/4th share= 92,800 x ¼ = ₹23,200
OR
Revaluation A/c
Particulars ₹ Particulars ₹
To Sundry Creditors 1,000 By Stock A/c 1,000
To Gain on Revaluation By Building A/c 7,000
transfer to:
Prem’s Capital 1,000 By Investment (Profit on sale) 1,000
Kumar’s Capital 600
Aarti’s Capital 400 2,000

9,000 9,000

Partner’s Capital A/c

Particulars Prem Kumar Aarti Particulars Prem Kumar Aarti
To Kumar’s 8,000 4,000 By Balance 30,000 20,000 20,000
Capital b/d
To Cash - 30,000 - By General
Reserve
4,000 2,400 1,600
To Bills 5,600 By Investment
Payable Fluctuation
Reserve 1,000 600 400
By
Revaluation 1,000 600 400
To Balance c/d 48,000 - 28,400 By Prem’s - 8,000 -
Capital A/c
By Aarti’s - 4,000 -
Capital
By Cash 20,000 - 10,000
56,000 35,600 32,400 56,000 35,600 32,400
25 Revaluation A/c 6
Particulars ₹ Particulars ₹
To Patents A/c 3,000 By Buildings A/c 5,000
To Machinery A/c 2,000

5,000 5,000

A’ s Capital A/c
Particulars ₹ Particulars ₹
To Advertisement Suspense A/c 5,000 By Balance b/d 30,000
To A’s Executor A/c 51,500 By Reserves 2,500
By B’s Capital A/c (goodwill) 11,250
By C’s Capital A/c (goodwill) 7,500
By B’s Capital A/c (Profit) 2,250
By C’s Capital A/c (Profit) 1,500
By Interest on Capital 1,500
(for 6 Months )

56,500 56,500

A’s Executor A/c

Particulars ₹ Particulars ₹
To Bank A/c 25,750 By A’s Capital A/c 51,500
To A’s Executor’s Loan A/c 25,750

51,500 51,500

Working Note:
1) Gaining Ratio= New Ratio- Old Ratio
B’s Gain= 7/12- 4/12= 3/12
A’s Gain = 5/12-3/12= 2/12
Thus Gaining Ratio is 3:2

2) Valuation of Goodwill:
i) Average Profit = 19,000+15,000+20,000+18,000=₹72,000/4
=₹18,000
ii) Goodwill = Average Profit x Year’s Purchase
= 18,000x5/12=₹45,000
iii) A’s share in Goodwill= 45,000x5/12=₹18,750
3) Share of profit to A= 18,000 x 6/12 x 5/12= ₹3,750

26 Date Particulars L/ ₹ ₹ 6
f
April 1 Bank A/c 26,00,000 26,00,000
To 9% Debenture Application & Allotment
A/c
April 1 9% Debenture Application & Allotment A/c 26,00,000
To 9% Debenture 25,00,000
To Securities Premium Reserve A/c 1,00,000
April 1 Fixed Assets A/c 10,00,000
To Current Liabilities A/c 70,000
To Y Ltd. 9,30,000
April 1 Y Ltd 4,00,000
To Bank A/c 4,00,000
 April 1 Y Ltd 5,30,000
To 9% Debenture A/c 5,00,000
To Securities Premium Reserves A/c 30,000
April 1 Bank A/c 6,00,000
To Bank Loan A/c 6,00,000
April 1 9% Debenture Suspense A/c 6,00,000
To 9% Debenture A/c 6,00,000

Balance Sheet
Particulars Not Current Previous
e Year Year
No.
I Equity and Liabilities:
Shareholder’s Funds:
a) Reserve and Surplus 1 1,30,000
Non-Current Liabilities:
Long term Borrowings 2 36,00,000
Current Liabilities 70,000

II Assets
Non-Current Assets:
Fixed Assets 3 10,00,000

Notes to Accounts:
1) Reserve and Surplus:
Securities Premium Reserve 1,30,000

2) Long Term Borrowings:

9% Debentures 36,00,000
Less: Debenture Suspense Account 6,00,000
30,00,000
Bank Loan 6,00,000
36,00,000
Part- B
Analysis of Financial Statements
(Option-I)
27 c) Both (i) and (iii) 1
OR
c) Issue of Debenture for cash.

28 c) ₹4,50,000 1

29 c) Cash used in investing activities ₹3,60,000. 1

OR
a) Cash used in investing activities ₹8,000

30 c) Cash flow from Financing Activities. 1

31 S. Items Heading Sud-Heading 3

No.
i) Calls in advance Current Liabilities Other Current
Liabilities
ii) Loose tools Current Assets Inventories
 iii) Patent and Trade Non-Current Assets Fixed Assets-
Mark Intangible
iv) Long term Loans Non-Current Long term
Liabilities borrowings
v) Provision for tax Current Liabilities Short term
Provision
vi) Shares in D.C.M. Non-Current Assets Non-Current
Ltd. Investment
32 Solvency of business refers to the ability of the business to pay its long-term 3
liabilities.
Name of Solvency ratios are:
1. Debt-Equity Ratio
2. Total assets to debt ratio
3. Proprietary ratio
33 𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒂𝒏𝒅 𝑻𝒂𝒙 4
1) ROI= ∗ 𝟏𝟎𝟎
𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑬𝒑𝒍𝒐𝒚𝒆𝒅

Net Profit before interest and tax= ₹ 60,000profit+ 24,000 interest

= ₹84,000
Capital Employed = Share Capital+ Reserves & Surplus
+ 12%Long term Borrowings
=₹50,000+₹25,000+₹2,00,000= ₹2,75,000
𝟖𝟒,𝟎𝟎𝟎
ROI =𝟐,𝟕𝟓,𝟎𝟎𝟎 ∗ 𝟏𝟎𝟎= 30.55%

𝑺𝒉𝒂𝒓𝒆 𝑯𝒐𝒍𝒅𝒆𝒓′ 𝒔 𝑭𝒖𝒏𝒅

2) Proprietary Ratio = ∗ 𝟏𝟎𝟎
𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔

Share Holder’s Fund = Share Capital + Reserves and Surplus

=₹50,000+ ₹25,000= ₹75,000
Total Assets = Net Fixed Assets+ Non-Current Trade Investment
+ Current Assets
= ₹2,25,000+₹25,000+₹1,10,000= ₹3,60,000
𝟕𝟓,𝟎𝟎𝟎
Proprietary Ratio = 𝟑,𝟔𝟎,𝟎𝟎𝟎 ∗ 𝟏𝟎𝟎 = 20.83%

OR

𝑫𝒆𝒃𝒕
1) Debt Equity Ratio =𝑬𝒒𝒖𝒊𝒕𝒚

Debt= 6% Debenture +9% Loan

= ₹3,00,000+ ₹1,00,000= ₹4,00,000

Equity= Paid Up Share Capital+ Debenture Redemption Reserves

=₹6,00,000+ ₹2,00,000= ₹8,00,000
𝟒,𝟎𝟎,𝟎𝟎𝟎
Debt Equity Ratio = 𝟖,𝟎𝟎,𝟎𝟎𝟎 = 0.5:1

𝑵𝒆𝒕 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔

2) Working Capital Turnover Ratio = 𝑾𝒐𝒓𝒌𝒊𝒏𝒈 𝑪𝒂𝒑𝒊𝒕𝒂𝒍
 Working Capital = Other Current Assets + Closing Inventories
– Current Liabilities
=₹11,00,000+ ₹1,00,000 – ₹4,00,000= ₹8,00,000
𝟔𝟎,𝟎𝟎,𝟎𝟎𝟎
Working Capital Turnover Ratio = 𝟖,𝟎𝟎,𝟎𝟎𝟎 = 7.5 times

34 Particulars ₹ ₹ 6
Net Profit before Tax: (1,65,000)
Adjustments for non-cash and non-operating item:
Add: Depreciation (1,20,000-80,000) 40,000
Goodwill Written ff (20,000-15,000) 5,000 45,000
Operating Profit before working capital changes (1,20,000)
Add: Decrease in Current Assets
Prepaid Salaries 3,000
Add: Increase in Current Liabilities:
Trade Payables 16,000
Outstanding Expenses 8,000
Less: Increase in Current Assets:
Trade Receivables (30,000) (3,000)
Net Cash from Operating Activities (1,23,000)

Working Note:
Profit for current year ₹3,00,000
Profit for Previous year ₹5,00,000
Loss during year ₹(2,00,000)
Add: Debenture Sinking Fund ₹25,000
Development Rebate Reserve ₹10,000
Net Profit before Tax ₹ (1,65,000)
Part- B
Computerized Accounting
(Option-II)

27 c) ACC, ECO, ENG, MAL 1

Or
c) Data Bank

28 d) Management Information System 1

29 a) Hierarchical relationship between groups and components 1
Or
b) Application Software
30 a) Cash and Bank sub system – Deals with receipts and payments of cash 1
31 Data Information 3
1. It is used as input 1. It is the output of processed
data
2. Data is the raw material 2. Information is the product
3. It doesn’t carry a meaning 3. It must carry a logical
meaning
4. It is an independent value 4. Information depends on data
32 Features of computerised accounting system: 3
1. Simple and Integrated:
Computerised accounting system is designed to integrate all the business
operations such as sales, finance, purchase, etc.

2. Accuracy and speed:

Computrised Accounting system provides data entry forms for fast and
accurate data entry of the transactions.

3. Scalability:
The system can cope easily with the increase in the volume of business
transactions. The software can be used for any size and type of the
organization.

33 Security Features of Computerised Accounting Software: 4

Every accounting software ensures data security, safety, and confidentiality by
providing the features like Password Security, Data Audit and Data Vault.

1. Password Security:
Password is the key to allow the access to the system. Computerised
accounting system protects the unauthorised persons from accessing to the
business data. Only authorised person, who is supplied with the password, can
enter to the system.

2. Data Audit:
It enables one to know as to who and what changes have been made in the
original data there by helping and fixing the responsibility of the person who
has manipulated the data and ensures data integrity.

3. Data Vault:
Software provides additional security through data encryption. Encryption
means scrambling the data so as to make its interpretation impossible.

OR

GNUKhata, Tally, Dac Easy, Tata Ex, Peach Tree

34 The factors to be considered while source accounting software is. 6

• Flexibility
• Adaptability
• The cost of installation and maintenance
• Organisation size
• Secrecy level