II YEAR ACCOUNTANCY WITH AFS MARCH 2024 - ANSWER KEY (PART A)

(UNOFFICIAL)

I ANSWER ANY 5 QUESTIONS. 1 SCORE EACH

NO ANSWER SPLIT TOTAL

SCORE SCORE
1 c.Sacrificing Ratio 1 1
2 a.Old Partner’s Capital Account 1 1
3 b.3:1 1 1
4 Profit and Loss Suspense A/c Dr 1 1
5 c.Partner’s Capital a/c 1 1
6 c.Realisation a/c 1 1

II ANSWER ALL QUESTIONS. 2 SCORE EACH

NO ANSWER SPLIT TOTAL

SCORE SCORE
7 1. Additional Capital introduced by partners 1 2
2. Drawings out of Capital 1
8 1. Location Of business ½
2. Nature of Product ½ 2
3. Market Condition ½
4. Special Advantages ½
9 SR =OR – NR
Jaya Sacrifice
3/5 – 3/6 = 18/30 – 15/30 = 3 1
Lalitha Sacrifice 2
2/5 – 2/6 = 12/30 – 10/30 = 2 1

SR = 3:2
10 Dissolution of Partnership - Dissolution of Firm
1.Revaluation A/c - Realisation a/c 1 2
2.Business continues - Business closed 1

III ANSWER ANY 3 QUESTIONS. 3 SCORE EACH

NO ANSWER SPLIT TOTAL

SCORE SCORE
11 Anu – 5000 x 12 x 6/100 x 6.5/12 = 1,950 1½
3
Manu – 10000 x 12 x 6/100 x 5.5/12 = 3,300 1½
12 Goodwill = Super Profit x No of year Purchases
Super Profit = Average Profit – Normal Profit
Average Profit = 6,00,000/5 = 1,20,000 1
Normal Profit = 10,00,000 x 10/100 = 1,00,000 1 3
Super Profit = 1,20,000 – 1,00,000 = 20,000 1
Goodwill = 20,000 x 3 = 60,000
13 Sacrificing Ratio - Gaining Ratio
1. OR – NR - NR – OR 1
2. At the time of admission - At the time of Retirement 1 3
3. Share of Profit decreased - Share of profit increased 1
14 a. Realisation a/c Dr 3000
To Cash a/c 3000 1

b. Cash a/c Dr 5000 3

To Realisation 5000 1

c. Realisation a/c Dr 10000

To Furniture a/c 10000 1

IV ANSWER ALL QUESTIONS. 5 SCORE EACH

15
LOAN A/C

TO CASH 180000 BY CAPITAL 6,00,000

TO BALANCE 480000 BY INTEREST 60,000
----------- --------------
660000 660000
====== ========
TO CASH 168000 BY CAPITAL 4,80,000
TO BALANCE 360000 BY INTEREST 48,000
----------- --------------
528000 528000
====== ========
TO CASH 156000 BY CAPITAL 3,60,000
TO BALANCE 240000 BY INTEREST 36000
----------- --------------
396000 396000
 ====== ========
TO CASH 144000 BY CAPITAL 2,40,000
TO BALANCE 120000 BY INTEREST 24,000
----------- --------------
264000 264000
====== ========
TO CASH 132000 BY CAPITAL 1,20,000
TO BALANCE 000000 BY INTEREST 12000
----------- --------------
132000 132000
====== ========
16.
PROFIT AND LOSS APPROPRIATION A/C

PARTICULARS AMT PARTICULARS AMT

To Salary – Asha 60,000 By P & L 4,00,000
To Interest on Capital – Asha 18,000
To Interest on Capital – Nisha 12,000
To Commission – Nisha 10,000
To Asha Capital 1,50,000
To Nisha Capital 1,50,000
4,00,000 4,00,000

V ANSWER ANY 1 QUESTIONS. 8 SCORE

17
REVALUATION A/C
PARTICULARS AMT PARTICULARS AMT
To Stock 3,000 By Plant & Machinery 20,000
To Provision for Baddebt 3,000 By Building 15,000
To Amal Capital 19,333
To Bimal Capital 9,667
35,000 35,000
 PARTNERS CAPITAL A/C
PARTICULR Amal Bimal Kamal PARTICULR Amal Bimal Kamal
S S
Balance Balance 18000 15000 -
Cash 0 0 12000
Revaluation - - 0
Reserve 19333 9667 -
Goodwill 6000 3000 -
60000 30000 -

26533 19266 12000 26533 19266 12000

3 7 0 3 7 0

BALANCE SHEET
LIABILITIES AMT ASSET AMT
Creditors 61000 Cash in Hand 260000
Amal Capital 265333 Debtors 60000
Bimal Capital 192667 (-)Provisions 3000 57000
Kamal Capital 120000 Stock 37000
Plant and Machinery 120000
Building 165000
639000 639000
18
RIALISATION A/C
PARTICULARS AMT PARTICULARS AMT
To Stock 6,000 By Creditors 38,000
To Debtors 19,000 By Ajay Capital(Investment) 8,000
To Furniture 4,000 By Bank(Assets Realised) 53,000
To Plant 28,000 By Ajay Capital 3,000
To Investment 10,000 By Vijay Capital 2,000
To Bank(Realisation Expense) 2,000
To Bank(Creditors) 35,000
1,04,000 1,04,000

PARTNERS CAPITAL A/C

PARTICULRS Ajay Vijay PARTICULRS Ajay Vijay
To Realisation 3,000 2,000 Balance 12,000 11,000
To Realisation 8000 Reserve 15,000 10,000
To Bank 16,000 19,000
27,000 21,000 27,000 21,000
BANK A/C
PARTICULARS AMT PARTICULARS AMT
Balance 19,000 Realisation 2,000
Realisation 53,000 Realisation 35,000
 Ajay Capital 16,000
Vijay Capital 19,000
72,000 72,000
PART B

VI ANSWER ANY 5 QUESTIONS. 1 SCORE EACH

NO ANSWER SPLIT TOTAL

SCORE SCORE
19 b. Owners of the company 1 1
20 c.forfeited share a/c 1 1
21 b.Cash outflow 1 1
22 b.Bearer debentures 1 1
23 c.Shareholders Fund 1 1
24 a.Horizontal Analysis 1 1

VII ANSWER ALL QUESTIONS. 2 SCORE EACH

25
Share Debenture
1 Ownership Security Creditor ship Security
2 Return is Divident Return is interest

26 a. It does not consider price level changes

b. It is just a study of reports of the company

27 ITR = Cost of revenue from operations/Average inventory

Cost of revenue from operations = Revenue from operations – Gross profit
Gross profit = 8,00,000 x 10/100 = 80,000
Cost of revenue from operations = 8,00,000 – 80,000 = 7,20,000
ITR = 7,20,000/1,10,000 = 6.54 times

28 a. Took a bank loan

b. Issue of share
VIII ANSWER ANY 3 QUESTIONS. 3 SCORE EACH

29 Plant a/c Dr 2,70,000

To Omega Ltd 2,70,000
-----------------------------------------------------------------------
Omega Ltd a/c Dr 2,70,000
To Share Capital a/c (2250 x 100) 2,25,000
To Securities Premium a/c (2250 x 20) 45,000
------------------------------------------------------------------------
30 Share Capital a/c Dr (1000 x 10) 10,000
To Share Forfeited a/c (1000 x 8) 8,000
To Calls in Arrears a/c (1000 x 2) 2,000
--------------------------------------------------------------------------
Bank a/c Dr (1000 x 9) 9,000
Share forfeited a/c Dr.(1000 x 1) 1,000
To Share Capital a/c (1000 x 10) 10,000
-------------------------------------------------------------------------
Share forfeited a/c Dr. 7,000
To Capital Reserve a/c 7,000
---------------------------------------------------------------------

31. a. To judge effectiveness of management

b. To Disclose accounting policies
c. To provide information about cash flows

32
LOAN A/C
PARTICULARS AMT PARTICULARS AMT
To Cash 2,00,000 By Balance 4,00,000
To Balance 5,00,000 By Cash(New Loan) 3,00,000
 7,00,000 7,00,000

Cash Flows From Financing Activity

Inflow:-
New Loan 3,00,000
Out Flow:-
Loan Repayment 2,00,000
------------
Net Cash Inflow 1,00,000
=======
IX ANSWER ALL QUESTIONS. 5 SCORE EACH
33
a. Bank a/c Dr 100
To Debentures a/c 100
-------------------------------------------------------------
Debentures a/c Dr 100
To Bank a/c 100
-------------------------------------------------------------
b. Bank a/c Dr 95
Discount on issue of debentures 5
Loss on issue of debentures 5
To Debentures a/c 100
To Premium on Redemption 5
---------------------------------------------------------------
Debentures a/c Dr 100
Premium on Redemption 5
To Bank a/c 105

34
PARTICULARS 2017 -18 2018-19 Increase/Decrease %
Revenue From Operations 8,00,000 10,00,000 2,00,000 25
Employee Expense 4,00,000 5,00,000 1,00,000 25
Other Expense 1,00,000 50,000 (50,000) (50)

Profit Before Tax 3,00,000 4,50,000 1,50,000 50

Tax 1,20,000 2,25,000 1,05,000 87.5
 Profit after Tax 1,80,000 2,25,000 45,000 25

X ANSWER ANY 1 QUESTIONS. 8 SCORE

35. Bank a/c Dr 3,00,000
To Share Application 3,00,000

Share Application a/c Dr 3,00,000

To Share Capital 3,00,000

Share Allotment a/c Dr 3,00,000

To Share Capital 3,00,000

Bank a/c Dr 3,00,000

To Share Allotment 3,00,000

Share I Call a/c Dr. 2,00,000

To Share Capital 2,00,000

Bank a/c Dr. 2,00,000

To Share I Call a/c 2,00,000

Share II Call a/c Dr. 2,00,000

To Share Capital 2,00,000

Bank a/c Dr. 1,98,000

Calls in Arrears a/c Dr 2,000
To Share II Call a/c 2,00,000
36.
CR = 70,000/35,000 = 2:1
LR = (70000-30,000)/35,000 = 1.14:1
OR = 60,000 + 40,000/1,20,000 x 100 = 83.33%
GP Ratio = GP/Net Revenue from operations
GP = 1,20,000 – 60,000 = 60,000
GP Ratio = 60,000/1,20,000 = 50%

PREPARED BY K VINOD, VIVEKODAYAM BHSS, THRISSUR