PUBLIC EXAM - MARCH – 2024 - ANSWER KEY

XII STANDARD – ACCOUNTANCY – ENGLISH

MEDIUM

Time Allowed : 3 Hours Maximum Marks : 90

I. Choose the most suitable from the given four alternatives and write the option code and the corresponding answer
20 x 1 = 20

A B
1 B Securities Premium Account 1 B Contra Voucher
2 A Self Generated Goodwill 2 B Securities Premium Account
3 A 2:1 3 C Ctrl + Q
4 D Nominal Account 4 A Surplus or Deficit
5 B Additional Capital Introduced 5 B Total Debtors Account
6 C 5:3 6 D (i) and (iv)
7 A Goodwill under Annuity Method = 7 C Reserve Capital
Average Profit x Present value of
annuity factor
8 A Sale of Old Sports Materials – 8 A Self Generated Goodwill
Capital Receipt
9 D 110 % 9 C Standard Costing
10 D Rs.8,000 and Rs.4,000 10 C 5:3
11 C Rs.64,000 11 D Old Profit Sharing Ratio
12 D Old Profit Sharing Ratio 12 A Goodwill under Annuity Method =
Average Profit x Present value of
annuity factor
13 B Total Debtors Account 13 D Rs.8,000 and Rs.4,000
14 A Surplus or Deficit 14 B An Asset
15 D (i) and (iv) 15 A Sale of Old Sports Materials –
Capital Receipt
16 B An Asset 16 A 2:1
17 C Standard Costing 17 D Nominal Account
18 C Reserve Capital 18 B Additional Capital Introduced
19 C Ctrl + Q 19 D 110 %
20 B Contra Voucher 20 C Rs.64,000

II. Answer any seven questions. Question No.30 is compulsory. 7 x 2 = 14

21) Receipts and Payments Account – Meaning:
• Receipts and Payments account is a summary of cash and bank transactions of not-for-profit
organisations prepared at the end of each financial year.
• It is a real account in nature.

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 1
22) .Goodwill – Meaning:
 Goodwill is the good name or reputation of the business which brings benefit to the business.
 It enables the business to earn more profit.
 It is the present value of a firm’s future excess earnings.

23) .Shares Forfeited – Meaning:

 When a shareholder defaults in making payment of allotment and/or call money, the shares
may be forfeited.

24) .Working Capital – Meaning:

 Working capital statement or schedule of changes in working is prepared to disclose net
changes in working capitals on two specific dates (generally two balance sheet dates).
 It is prepared from current assets and current liabilities.
 Working Capital = Current Assets – Current Liabilities

25) .Automated Accounting System:

 Automated accounting is an approach to maintain up-to-date accounting records with the aid
of accounting software.

26) . Statement of profit or loss for the year ended 31st December, 2018
Particulars Rs.
Closing capital (as on 31.12.2018) (B/F) 1,45,000
Add: Drawings during the year (goods taken for personal use) 30,000
1,75,000
Less: Additional capital introduced during the year 15,000
Adjusted closing capital 1,60,000
Less: Opening capital (as on 1.1.2018) 1,00,000
Profit made during the year 60,000

27) Calculation of Sacrificing Ratio:

Old ratio of Praveena and Dhanya = 7:3 that is, 7 : 3
10 10
New ratio of Praveena, Dhanya and Malini = 5:2:3 that is, 5 : 2 : 3
10 10 10

Share sacrificed = Old share - New share

Praveena = 7 - 5 = 2
10 10 10

Dhanya = 3 - 2 = 1
10 10 10

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 2
 Sacrificing ratio of Praveena and Dhanya is 2 : 1 that is 2:1
10 : 10

28) Journal Entry

Date Particulars L.F. Debit Credit
Rs. Rs.
2018 Reserve fund A/c Dr. 50,000
March 31 To Dheena’s capital A/c (50,000 × 5/10) 25,000
To Surya’s capital A/c (50,000 × 3/10) 15,000
To Janaki’s capital A/c (50,000 × 2/10) 10,000
(Reserve fund transferred to all partners’
capital account in the old profit sharing ratio)

29) Calculation of Gross Profit Ratio:

Gross Profit Ratio = Gross Profit x 100 = 20,000 x 100 = 20%
Revenue from Operations 1,00,000

Gross profit = Revenue from operations – Cost of revenue from operations

= 1,00,000 – 80,000 = Rs. 20,000

30) Final Accounts of Partnership Firms:

1) Manufacturing Account
2) Trading and Profit and Loss Account
3) Profit and Loss Appropriation Account
4) Balance Sheet

PART - III
III. Answer any seven questions. Question No.40 is compulsory. 7 x 3 = 21

31) Differences between the Statement of Affairs and the Balance Sheet

Basis of Statement of Affairs Balance Sheet

Distinction
1. Objective Statement of affairs is generally prepared to Balance sheet is prepared to
find out the capital of the business. ascertain the financial position of
the business.
2. Accounting Statement of affairs is prepared when Balance sheet is prepared when
system double entry system is not strictly followed. accounts are maintained under
double entry system.
3. Reliability It is not reliable as it is based on incomplete It is reliable as it is prepared under
records. double entry system.

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 3
32) Dr. Income and Expenditure Account for the year ended 31st March, 2018 Cr.
Expenditure Rs. Rs. Income Rs. Rs.
To Stationery consumed:
Opening stock 300
Add: Purchases 1,500
1,800
Less: Closing stock 200 1,600

Balance sheet as on 31st March, 2018

Liabilities Rs. Assets Rs.
Stock of stationery 200

33) Calculation of Amount of Interest of Drawings:

Interest on drawings = Amount of drawings x Rate of interest x Period of interest

Withdrawal on March 1 = 4,000 x 6/100 x 10/12 = 200

Withdrawal on June 1 = 4,000 x 6/100 x 7/12 = 140

Withdrawal on September 1 = 4,000 x 6/100 x 4/12 = 80

Withdrawal on December1 = 4,000 x 6/100 x 1/12 = 40

Total interest on drawings = 440

34) Calculation of Goodwill:

Total capitalized value of the business = Average profit × 100
Normal rate of return

= 20,000 × 100 = Rs. 2,00,000

10

Goodwill = Total capitalized value of the business - Capital employed

= 2,00,000 – 1,50,000 = Rs.50,000

35) . Dr. Revaluation Account Cr.

Particulars Rs. Rs. Particulars Rs.
To Machinery A/c 4,000 By Buildings A/c 15,000
To Provision for doubtful debts A/c 1,000
To Profit on revaluation transferred to
Rajesh’s capital A/c (3/5) 6,000
Ramesh’s capital A/c (2/5) 4,000 10,000
15,000 15,000

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 4
36) .Adjustments made at the time of retirement
1) Distribution of accumulated profits, reserves, and losses.
2) Revaluation of assets and liabilities.
3) Determination of new profit sharing ratio and gaining ratio.
4) Adjustment for goodwill.
5) Adjustment for current year profit or loss up to the date of retirement.
6) Settlement of the amount due to the retiring partner.

37) Differences between Preference Shares and Equity Shares (Any 3)

BASIS EQUITY SHARES PREFERENCE SHARES

Payment of The dividend is paid after the payment Priority in payment of dividend over
dividend of all liabilities. equity shareholders.

Repayment of In the event of winding up of the In the event of winding up of the

capital company, equity shares are repaid at company, preference shares are repaid
the end. before equity shares.

Rate of dividend Fluctuating Fixed

Redemption No Yes

Convertibility Equity shares can never be converted. Preference shares can be converted into
equity shares.

38) Common-size income statement of Raja Ltd for the year ended 31st March, 2017

Absolute amount Percentage of revenue from

Particulars
operations
Rs.
Revenue from operations 4,50,000 100
Add: Other income 67,500 15
Total revenue 5,17,500 115
Less: Expenses 1,35,000 30
Profit before tax 3,82,500 85

Note: Computation of percentage for Revenue from Operation

67,500 x 100 = 15% 1,35,000 x 100 = 30%
4,50,000 4,50,000

5,17,500 x 100 = 115% 3,82,000 x 100 = 85%

4,50,000 4,50,000

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 5
39) Calculation of Debt-equity Ratio:

Debt Equity Ratio = Long Term Debt = 80,000 = 0.5 : 1

Shareholders’ Fund 1,60,000

Long term debt = Debentures = Rs. 80,000

Shareholders’ funds = Equity share capital + Reserves and surplus
= 1,00,000 + 60,000 = Rs. 1,60,000

40) Gateway of Tally:

(i) Profit and Loss A/c -- Gateway of Tally > Reports > Profit & Loss A/c > AltF1 (detailed).
(ii) Balance Sheet -- Gateway of Tally > Reports > Balance Sheet > AltF1 (detailed).
(iii) Day Book -- Gateway of Tally > Reports > Day Book > AltF1 (detailed).

PART - IV
IV. Answer all the questions. 7 x 5 = 35
41.a.
Statement of affairs of Ganesh as on 31st March, 2018
Liabilities Rs. Assets Rs.
Creditors 9,000 Cash 5,000
Bills payable 6,000 Cash at bank 24,000
Capital (balancing figure) 88,000 Stock of goods 18,000
Debtors 16,000
Bills receivable 7,000
Land and buildings 30,000
Furniture 3,000
1,03,000 1,03,000

Statement of profit or loss for the year ending 31st March, 2018
Particulars Rs.
Closing capital as on 31.03.2018 88,000
Add: Drawings during the year 15,000
1,03,000
Less: Additional capital introduced during the 20,000
year
Adjusted closing capital 83,000
Less: Opening capital as on 01.04.2017 75,000
Profit made during the year ending 31.03.2018 8,000

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 6
 [OR]

41.b. Dr. Revaluation Account Cr.

Particulars Rs. Rs. Particulars Rs.

To Stock A/c 2,000 By Furniture A/c 15,000
To Debtors A/c 2,500
To Outstanding Wages A/c 4,500
To Profit on revaluation
transferred to 3,600
Vetri’s capital A/c (3/5) 2,400 6,000
Ranjit’s capital A/c (2/5)
15,000 15,000

Partners’ Capital Account

Particulars Vetri Ranjit Suriya Particulars Vetri Ranjit Suriya
Rs. Rs. Rs. Rs. Rs. Rs.
To Profit and Loss A/c 6,000 4,000 ----- By Balance B/d 30,000 20,000 -----
To Balance C/d 30,600 20,400 10,000 By Reserve Fund A/c 3,000 2,000 -----
By Revaluation A/c 3,600 2,400 -----
By Cash A/c ----- ----- 10,000
36,600 24,400 10,000 36,600 24,400 10,000
By Balance B/d 30,600 20,400 10,000

Balance Sheet as on 31st January 2018

Liabilities Rs. Rs. Assets Rs. Rs.
Capital A/c Furniture 25,000
Vetri 30,600 (+) Appreciation 15,000 40,000
Ranjit 20,400
Suriya 10,000 61,000 Stock 20,000
(-) Depreciation 2,000 18,000
Sundry Creditors 45,000
Debtors 10,000
Outstanding Wages 4,500 (-) Decrease 2,500 7,500

Cash in hand 35,000

(+) Suriya’s
Capital 10,000 45,000

1,10,500 1,10,500

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 7
42.a). In the books of Poompuhar Literary Association

Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr.
Receipts Rs. Payments Rs.

To Balance b/d By Balance b/d

Cash in hand 5,000 Bank overdraft 4,000
To Sale of investments 1,000 By Printing and stationery 1,500
To Endowment fund receipts 2,000 By Interest paid 3,250
To Subscriptions received 20,000 By Purchase of refreshments 1,500
To Sundry receipts 750 By Lighting charges 1,300
To Government grants received 6,000 By Repairs and renewals 2,500
To Sale of refreshments 1,500 By Conveyance paid 2,750
By Books purchased 10,000
By Insurance premium paid 4,000
By Balance c/d
Cash at bank 2,000
Cash in hand 3,450
36,250 36,250

[OR]

42.b. Factors determining the value of goodwill of a partnership firm:

(i) Profitability of the firm

 The profit earning capacity of the firm determines the value of its goodwill.

 A firm earning higher profits and having potential to generate higher profits in future will have
higher value of goodwill.

(ii) Good quality of goods or services offered

 If a firm enjoys good reputation among the customers and general public for the good quality
of its products or services, the value of goodwill for the firm will be high.
(iii) Efficiency of management
 A firm having efficient management will earn more profits and the value of its goodwill will be
higher compared to a firm with less efficient managerial personnel.
(iv) Degree of competition
 In the case of business enterprises having no competition or negligible competition, the value
of goodwill will be high.
(v) Other factors
 There are other factors which add to the value of goodwill of a business such as popularity of
the proprietor, impressive advertisements and publicity, good relations with customers, etc.

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 8
43.a.

Dr. Partners’ Capital Account Cr.

Date Particulars Mannan Savagan Date Particulars Mannan Savagan
Rs. Rs. Rs. Rs.
To Drawings 40,000 35,000 By Balance b/d 2,00,000 1,75,000
To Interest on By Profit & Loss
drawings 1,000 500 Appropriation A/c 21,000 16,500
To Balance C/d 2,10,000 1,69,000 (Share of Profit)
By Interest of Capital 12,000 10,500
By Salary 18,000
By Commission --- 2,500

2,51,000 2,04,500 2,51,000 2,04,500

By Balance b/d 2,10,000 1,69,000

[OR]

43.b.

Journal Entries
Date Particulars L.F. Debit Credit
Rs. Rs.
2017 Building A/c Dr. 30,000
April 1 To Revaluation A/c 30,000
(Value of building increased)
Revaluation A/c Dr. 18,000
To Stock A/c 5,000
To Furniture A/c 12,000
To Outstanding liability A/c 1,000
(Decrease in value of assets and outstanding
liability recorded)
Revaluation A/c Dr. 12,000
To Roja's capital A/c 4,800
To Neela's capital A/c 3,600
To Kanaga's capital A/c 3,600
(Profit on revaluation transferred)

Dr. Revaluation Account Cr.

Particulars Rs. Rs. Particulars Rs.
To Stock A/c 5,000 By Building A/c 30,000
To Furniture A/c 12,000
To Outstanding liability A/c 1,000
To Profit on revaluation transferred to
To Roja’s capital A/c (4/10) 4,800
To Neela's capital A/c (3/10) 3,600
To Kanaga's capital A/c (3/10) 3,600 12,000

30,000 30,000

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44.a. Calculation of Goodwill:

Average Profit = Rs.42,000

Normal profit = Capital employed × Normal rate of return

= 2,00,000 × 15/100 = Rs. 30,000

Super profit = Average profit – Normal profit

= 42,000 – 30,000 = Rs. 12,000

Goodwill = Super profit × Number of years of purchase

= 12,000 × 3 = Rs. 36,000

[OR]

44.b. The applications of CAS are as follows:

1. Maintaining accounting records:
 In CAS, accounting records can be maintained easily and efficiently for long time
period.
 It does not require a large amount of physical space.
 It facilitates fast and accurate retrieval of data and information.

2. Inventory management:
 CAS facilitates efficient management of inventory.
 Fast moving, slow moving and obsolete inventory can be identified.

3. Report generation:
 CAS helps to generate various routine and special purpose reports.

4. Data import/export:
 Accounting data and information can be imported from or exported to other users
within the organisation as well as outside the organisation.

5. Taxation:
 CAS helps to compute various taxes and to deduct these and deposit the same to the
Government account.

DR.A.VENNILA, PRINCIPAL, MYDEEN MATRIC. HR. SEC. SCHOOL, MELACAUVERY – KUMBAKONAM - 8608481579 Page 10
 45.a.

In the books of Kumbakonam Basket Ball Association

Dr. Income and Expenditure Account for the year ended 31st March, 2018 Cr.
Expenditure Rs. Income Rs.

To Rent of ground 12,000 By Rent of hall received 6,000

To Printing Charges 5,000 By Subscription 9,000
To Bank charges 1,000 By Locker rent 2,000
To Insurance for building 2,000
To Tournament expenses 16,000
To Audit fees 3,000
To Sports materials purchased 4,000 By Deficit
(Excess of expenditure over income) 26,000

43,000 43,000

[OR]

45.b.
Comparative balance sheet of Chandra Ltd as on 31st March 2017 and 31st March 2018
Absolute amount Percentage
2016-17 2017-18
Particulars of increase ( +) or increase (+) or
Rs. Rs.
decrease (–) decrease (–)
I EQUITY AND LIABILITIES
Shareholders’ fund 4,00,000 4,40,000 +40,000 +10
Non-current liabilities 1,50,000 1,65,000 +15,000 +10
Current liabilities 75,000 82,500 +7,500 +10
Total 6,25,000 6,87,500 +62,500 +10
II ASSETS
Non-current assets 5,00,000 6,00,000 +1,00,000 +20
Current assets 1,25,000 87,500 -37,500 -30
Total 6,25,000 6,87,500 +62,500 +10

Note - 1 : Computation of percentage increase for revenue from operations

= Absolute amount of increase or decrease x 100

Year 1 amount
= 40,000 x 100 = 10% = 1,00,000 x 100 = 20%
4,00,000 5,00,000

= 15,000 x 100 = 10% = 37,500 x 100 = 30%

1,50,000 1,25,000

= 7,500 x 100 = 10% = 62,500 x 100 = 10%

75,000 6,25,000

= 62,500 x 100 = 10%

6,25,000

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46.a. Dr. Profit and loss appropriation account for the year ended 31st March 2019 Cr.

Particulars Rs. Rs. Particulars Rs.

To Interest on capital A/c: By Profit and loss A/c 20,000

Durai (25,000 x 5%) 1,250
Velan (30,000 x 5%) 1,500 2,750
By Interest on drawings A/c
To Salary to Durai A/c 5,000 Durai 300
Velan 450 750
To Commission to Velan A/c 2,000

To Partner’s capital A/c:

Durai (25,000 x 5%) 4,400
Velan (30,000 x 5%) 6,600 11,000
20,750 20,750

[OR]
46. b. Calculation of
(i) Debt Equity Ratio = Long Term Debt = 4,00,000 = 0.8 : 1
Shareholders’ Fund 5,00,000

Long term debt = 9% Debentures = Rs. 4,00,000

Shareholders’ funds = Equity share capital + Preference share capital + Reserves and
surplus
= 1,50,000 + 2,00,000 + 1,50,000 = Rs. 5,00,000

(ii) Proprietary Ratio = Shareholders’ Fund = 5,00,000 = 0.5 : 1

Total Assets 10,00,000

(iii) Capital Gearing Ratio = Funds bearing fixed interest and fixed dividend
Equity Shareholders’ Fund

= 6,00,000 = 2:1
3,00,000

Funds bearing fixed interest or dividend = 8% Preference share capital + 9% Debentures

= 2,00,000 + 4,00,000 = Rs. 6,00,000

Equity shareholders’ funds = Equity share capital + Reserves and surplus

= 1,50,000 + 1,50,000 = Rs. 3,00,000

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 47.a)
Trend analysis for Mullai Ltd
Particulars Rs. in thousands Trend percentages

2015-16 2016-17 2017-18 2015-16 2016-17 2017-18

Revenue from operations 100 120 160 100 120 160

Add: Other income 20 24 20 100 120 100
Total revenue 120 144 180 100 120 150
Less: Expenses 20 14 40 100 70 200
Profit before tax 100 130 140 100 130 140
Less: Income tax (30%) 30 39 42 100 130 140
Profit after tax 70 91 98 100 130 140

Note: Computation of trend percentage for revenue from operations:

For 2016-17 For 2017-18

: 120 /100 x 100 = 120% : 160 /100 x 100 = 160%

: 24 /20 x 100 = 120% : 20 /20 x 100 = 100%
: 144 /120 x 100 = 120% : 180 /120 x 100 = 150%
: 14 /20 x 100 = 70% : 40 /20 x 100 = 200%
: 130 /100 x 100 = 130% : 140 /100 x 100 = 140%
: 39 /30 x 100 = 130% : 42 /30 x 100 = 140%
: 91 /70 x 100 = 130% : 98 /70 x 100 = 140%

[OR]

47.b) In the books of Joy Company

Journal entries
Date Particulars L.F. Debit Credit
Rs. Rs.
Bank A/c (9,000 x 5) Dr. 45,000
To Equity share application A/c 45,000
(Application money received)

Equity share application A/c Dr. 45,000

To Equity share capital A/c 45,000
(Transfer of share application money to share
capital)

Equity share allotment A/c Dr. 27,000

To Equity share capital A/c 27,000
(Share allotment money due)

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 Bank A/c Dr. 27,000
To Equity share allotment A/c 27,000
(Allotment money received)

Equity share first and final call A/c Dr. 18,000

To Equity share capital A/c 18,000
(Share first and final call money due)

Bank A/c Dr. 18,000

To Equity share first and final call A/c 18,000
(Share first and final call money received)

************* All The Best *************

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