KARNATAKA SCHOOL EXAMINATION AND ASSESSMENT BOARD

II PUC ANNUAL EXAMINATION-3, JUNE/JULY-2024

SUBJECT: ACCOUNTANCY MODEL ANSWERS SUBJECT CODE:30
PART -A MARKS
I
1 c. Oral/Written 1
2 b. 5:3 1
3 a. Non-payment of call money 1
4 d. Inventory 1
5 a. Operating activities 1
II
6 Capital
7 Realisation Account
8 Discount Each
9 Financial 1mark
10 Liquidity
III
11 a) v)
b) i) Each
c) iv) 1mark
d) iii)
e) ii)
IV
12 For extra/additional capital or any other reason. 1
13 False 1
14 Management or any other users 1
15 Earnings Per Share 1
16 Movement of cash in and out due to some non-cash item. 1

PART-B
17 The written agreement which specifies the terms and conditions that governs the partnership is 2
called the partnership deed.

18 Revaluation A/c…………………………... Dr. 1+1

To All partners’ capital A/c
(Profit on revaluation account transferred to all partners’ capital accounts)

19 1.Issue of shares at par 2

2. Issue of shares at premium
3. Issue of shares at discount (Each correct answer 1mark)

20 1. Share capital
2. Reserve and surplus or any other items (Each correct answer 1mark) 2

21 1. Purchase and sale of fixed assets

2. Long-term investments or any other investing activities (Each correct answer 1mark) 2
22 PART-C
Calculation of Interest on drawings for the year ended 31-12-2023.
Date Amount (₹) Period in months Product (₹)
31-03-2023 6,000 9 54,000
01-07-2023 10,000 6 60,000
31-10-2023 4,000 2 8,000
31-12-2023 1,000 0 0
Total Product 1,12,000 3

1 1
Interest on Drawings = Total Product×Rate×12
1
= 1,22,000×6/100× 2
12
23 = ₹ 610
Gain ratio = New share - old share 1
5 3
Akbar =8−9
45−24 21 2
= = 72
72

3 2
Anthony = 8 − 9
27−16
= 72 = 72
11 2
Gain ratio is 21:11.
1
Dr. Suresh Executors Account Cr.
Particulars Amount Particulars Amount
24
(₹) (₹)
Balance c/d 54,000 Suresh capital A/c 30,000 Each
Interest on capital A/c 2,250 correct
(30,000×10/100×9/12) entry
Salary A/c (1000×9) 9,000 carries 1
Akash capital A/c (9000×3/4) 6,750 mark
Ramesh capital A/c 2,250
(9000×1/4)
Profit and loss suspense A/c 3,750
54,000 54,000

Statement of Profit and Loss for the year ended 31/03/2023

Particulars Note No. Amount (₹)
25 I Income
Revenue of operations 5,00,000
Other income Nil
Total Revenue (I) 5,00,000 1
II Expenses
Purchase of stock in trade 3,00,000
Employee benefit expenses 1 50,000
Other expenses 2 50,000
Total Expenses (II) 4,00,000
III Profit After Tax (I-II) 1,00,000
Less: Tax (1,00,000×30/100) 30,000
Profit After Tax 70,000 3
 Notes to accounts:
1. Employee benefit expenses:
Salary to employees ₹ 40,000
Leave encashment ₹ 10,000 1
₹ 50, 000
2. Other expenses:
Rent and taxes ₹ 30,000
Repairs to machinery ₹ 20,000
₹ 50, 000 1
26 Cash flow from financing activities for the year ended 31-03-2023
Particulars Amount (₹)
Issue of debentures 3,00,000
Issue of preference shares 2,00,000
Redemption of debentures (1,00,000)
Cash flow from financing activities 4,00,000 4
(Each correct answer 1mark)
Note: Debenture issued:
Closing balance of debenture ₹ 10,00,000
Add: Debenture redeemed ₹ 1,00,000
₹ 11,00,000
Less: Opening balance ₹ 8,00,000
Fresh debenture issued ₹ 3,00,000 2

PART-D
27 Dr. Revaluation Account Cr.
Particulars Amount Particulars Amount
(₹) (₹)
Machinery A/c (80,000×10/100) 8,000 By Buildings A/c 22,000
Furniture A/c (40,000×10/100) 4,000 By Investments A/c 10,000
(50,000-40,000)
PDD A/c(40,000×5/100) 2,000
Outstanding salary A/c 2,000
Profit transferred to old partners
capital accounts:
Saritha 9,600
Sangeetha 6,400 16,000
32,000 32,000
Dr. Partners Capital Accounts Cr.
Particulars Saritha Sangee Savitha Particulars Saritha Sangee Savitha
(₹) tha (₹) (₹) (₹) tha (₹) (₹)
P & L A/c 6,000 4,000 Balance b/d 1,20,000 80,000 -
Saritha Cap - - 12,000 Reserve fund 30,000 20,000 -
A/c
Sangeetha - - 8,000 Revaluation A/c 9,600 6,400 -
Cap A/c
Cash A/c 12,000 8,000 - Cash A/c - - 80,000
(G/W (60,000+20,000)
withdrawn)
Balance C/d 1,53,600 1,14,400 60,000 Savitha Cap A/c 12,000 8,000 -
1,71,600 1,02,400 80,000 1,71,600 1,14,400 80,000
Balance C/d 1,53,600 1,02,400 60,000
 New Balance Sheet of the firm as on 01-04-2023
Liabilities Amount Assets Amount
(₹) (₹)
Creditors 1,00,000 Cash (40,000+60,000) 1,00,000
Bills payable 50,000 Stock 50,000
O/S salaries 2,000 Debtors (40,000-2,000) 38,000
Capitals: Furniture (40,000-4,000) 36,000
Saritha 1,53,600 Machinery (80,000-8,000) 72,000
Sangeetha 1,02,400 Buildings (1,22,000) 1,22,000
Savitha 60,000 Investments 50,000
4,68,000 4,68,000 4+4+4

28 Dr. Realisation A/c Cr.

Particulars Amount (₹) Particulars Amount (₹)
Investments A/c 10,000 Creditors A/c 10,000
B/R A/c 10,000 B/P A/c 20,000
Debtors A/c 25,000
Stock A/c 10,000 Bank A/c:
Machinery A/c 10,000 B/R 7,500
Furniture A/c 10,000 Debtors 22,500
Buildings A/c 20,000 Stock 9,000
Machinery 10,500
Bank A/c: Buildings 15,000 64,500
Creditors 10,000 Sachin Capital A/c 5,000
B/P 20,000 (Furniture taken over)
Dissolution Expenses 1,000 31,000 Rahul Capital A/c 5,000
(Investments taken over)
Loss on realisation A/c
transferred to partners’ capital
A/c
Sachin 12,900 21,500
Rahul 8,600
1,26,000 1,26,000
Dr. Partners Capital Accounts Cr.
Particulars Sachin (₹) Rahul (₹) Particulars Sachin (₹) Rahul (₹)
Realisation A/c 12,900 8,600 Balance b/d 30,000 20,000
Realisation A/c (asset 5,000 5,000 Reserve fund 6,000 4,000
taken)
Bank A/c 18,100 10,400
36,000 24,000 36,000 24,000
Dr. Bank A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
Balance b/d 5,000 Realisation A/c 31,000
Realisation A/c 64,500 Sachin Capital A/c 18,100
Rahul Capital A/c 10,400
Sachin Loan A/c 10,000
6+4+2
69,500 69,500
29 Journal entries in the bools of Vijayalakshmi sugars Ltd.,
Date Particulars L.F Debit (₹) Credit (₹)
1 Bank A/c………………………………………………………Dr. 20,000 -
To Preference share application A/c - 20,000
2 Preference share application A/c………………….Dr. 20,000 -
To Preference share capital A/c - 20,000
3 Preference share allotment A/c …………………..Dr. 60,000 -
To Preference share capital A/c - 40,000 For simple
To Securities premium reserve A/c - 20,000 journal
4 Bank A/c………………………………………………………Dr. 60,000 - entries 1
To Preference share allotment A/c - 60,000 mark and
5 Preference share first and final call A/c………..Dr. 40,000 - compound
To Preference share capital A/c - 40,000 journal
6 Bank A/c………………………………………………………Dr. 38,000 - entries 2
To Preference share first and final call A/c - 38,000 marks
7 Preference share capital A/c………………………..Dr. 5,000 - (with
To Forfeited shares A/c - 3,000 narration)
To Preference share first and final call A/c - 2,000
8 Bank A/c……………………………………………………..Dr. 3,500 -
Forfeited shares A/c……………………………………Dr. 1,500 -
To Preference share capital A/c - 5,000
9. Forfeited shares A/c……………………………………Dr. 1,500 -
To capital reserve A/c 1,500

30 Journal entries in the bools of Reliance company Ltd.,

Date Particulars L.F Debit (₹) Credit (₹)
a Bank A/c …………………………………………………………Dr. 2,00,000 -
To 9% Debenture application & allotment A/c - 200,000
9% Debenture application & allotment A/………Dr. 2,00,000 -
To 9% Debenture A/c - 2,00,000
b Bank A/c ………………………………………………………..Dr. 2,10,000 -
To 9% Debenture application & allotment A/c - 2,10,000
9% Debenture application & allotment A/c….…Dr. 2,10,000 - For simple
To 9% Debenture A/c - 2,00,000 journal
To Securities premium reserve A/c - 10,000 entries 5
c Bank A/c ………………………………………………………..Dr. 1,90,000 - marks and
To 9% Debenture application & allotment A/c - 1,90,000 compound
9% Debenture application & allotment A/c…...Dr. 1,90,000 - journal
Discount on issue of Debentures A/c………….….Dr. 10,000 - entries 7
To 9% Debenture A/c - 2,00,000 marks
d Bank A/c ………………………………………………….……Dr. 2,00,000 - (with
To 9% Debenture application & allotment A/c - 2,00,000 narration)
9% Debenture application & allotment A/c…...Dr. 2,00,000 -
Loss on issue of debentures A/c…………………….Dr. 10,000 -
To 9% Debentures A/c - 2,00,000
To Premium on redemption of debentures A/c - 10,000
31 Common Size Balance Sheet of Karnataka Company as on 31-03-2022 and 31-03-2023
Particulars Absolute Amount (₹) Percentage (%)
31-03-2022 31-03-2023 31-03-2022 31-03-2023
I. Equity and Liabilities
1. Shareholders fund
a. Share capital 8,50,000 10,00,000 54.84 54.50
b. Reserves and Surplus 1,00,000 50,000 6.45 2.70
2. Non-current Liabilities
a. Long-term borrowings 4,50,000 5,75,000 29.03 31.08
3. Current liabilities
a. Short-term borrowings 1,50,000 2,25,000 9.68 12.16
Total 15,50,000 18,50,000 100 100
II Assets
1. Non-current assets
a. Fixed assets
i) Tangible assets 7,50,000 9,00,000 48.39 48.65
ii) Intangible assets 4,00,000 4,50,000 25.81 24.32
2. Current assets
a. Inventory 1,00,000 2,00,000 6.45 10.81
b. Other current assets 3,00,000 3,00,000 19.35 16.22
Total 15,50,000 18,50,000 100 100 6+6

Cost of revenue from operations

a) Inventory turnover ratio =
32 Average inventory
8,00,000
= 1,00,000 =8times
Cost of revenue from operations = Revenue from operations-Gross profit
= ₹ 10,00,000 - ₹ 2,00,000
= ₹ 8,00,000

Net credit revenue from operations

b) Trade receivable turnover ratio = Average trade receivable
6,00,000
= 1,50,000 =4times

Net credit purchase

c) Trade payable turnover ratio =
Average trade receivable
5,00,000
= =2times Each
2,50,000
correct
Gross profit ratio
d) Gross ratio = × 100
Net revenue from operations carries 2
2,00,000
= × 100 =20% marks
10,00,000

Cost of revenue from operations +Operating expenses

e) Operating ratio = × 100
Net revenue from operations
8,00,000+1,00,000
= × 100 =90%
10,00,000

Net profit
f) Net profit ratio = Net revenue from operations × 100
1,00,000
= 10,00,000 × 100 =10%