Government of Karnataka

Karnataka School Examination and Assessment Board

II Year PUC Supplementary Examination -2
Scheme of Evaluation
Subject: Accountancy Subject Code: 30

PART – A
I
1) d) All of the above 1

2) c) Death of a Partner 1

3) b) Authorised Capital 1

4) c) Inventories 1

5) c) Debt-Equity ratio and proprietary ratio 1

II
6) Member 1

7) New Ratio 1

8) Capital Reserve 1

9) Intangible 1

10) Interpretation 1
III
11) 1x5=5
(a) (ii) Service

(b) (iv) Fixed Capital System

(c) (i) 2013

(d) (v) Shareholders Fund

(e) (iii) Investing Activity

IV
12) 1) Name and Address of the firm
2) Name and Address of the partners …………. any other (one) 1

13) To increase the capital of the firm 1

To extend business of the firm ………………. any other (one)
1
14) An executor is a legal representative of deceased partner.
1
15) False

16) Institute of Chartered Accountants of India 1

PART – B
17) 1) Charitable Institutions, Educational Institutions/school/colleges, Hospitals .. any two 1+1
18) According to Section 4 of the India Partnership Act, 1932 “the relation between persons who have agreed
to share the profits of a business carried on by all or any of them acting for all”. 2

19) The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is 2
called sacrifice ratio.

20) Realisation A/cDr. XXXX

To Partner’s Capital A/c XXXX 2
[Being realisation profit transferred]

21) 1) Shares issued at par 1+1

2) Shares issued at a discount

22) 1) To provide information about economic resources and obligations of a business 1+1
2) To provide information about the earning capacity of the business …… any other (two)

23) 1) Comparative Statement

2) Common Size Statement 1+1
3) Ratio Analysis etc. … any other (two)

24) 1) Operating Activities. 1+1

2) Financing Activities any other (two)

PART – C
25) Dr Profit and Loss Appropriation Account for the year ended 31-3-2022 Cr
Particulars Amount Particulars Amount 6
Rs. Rs.
To Interest on Capital A/c By Profit & Loss A/c 40,000
-Akash [Net Profit b/d]
[200000x7%] 14,000
-Ankith By Interest on Drawings A/c
[100000x7%] 7,000 21,000 Akash3,000
Ankith2,000 5,000
To Akash’s Salary A/c 12,000
[1,000 x 12]

To Partners’ Capital A/c

-Akash
[12000x2/3] 8,000
-Ankith
[12000x1/3] 4,000 12,000

45,000 45,000
26) Calculation of Gain Ratio of Tejas and Tilak 1

Gain Ratio = New Share – Old Share

2
1 5 6 - 5 1
Gained Share of Tejas= --- - --- = ----------- = --
2 12 12 12 2

1 4 6 - 4 2
Gained Share of Tilak = --- - --- = ----------- = -- 1
2 12 12 12
 Gain Ratio = 1:2

Dr Y’s Executors Account Cr

27) Particulars Amount Particulars Amount 6
Rs. Rs.
To Y’s Drawings A/c 5,000 By Y’s Capital A/c 1,00,000

To Y’s Executors loan A/c 1,15,500 By Interest on Capital A/c 7,500

(100000x10/100x9/12)
By X’s Capital A/c 6,000
[Goodwill- 8,000x3/4]

By Z’s Capital A/c 2,000

[Goodwill- 8,000x1/4]

By Profit & Loss Suspense A/c 5,000

[20,000 x9/12 x 2/6]

1,20,500 1,20,500

Journal Entries in books of ABC Co. Ltd.

28) Date Particulars LF Debit Credit
Rs. Rs. 6
1 Bank A/c Dr 2,00,000
To 12% Debenture Application A/c 2,00,000

2 12% Debenture Application A/c Dr 2,00,000

To 12% Debentures A/c 2,00,000

3 12% Debenture Allotment A/c Dr 4,00,000

To 12% Debentures A/c 3,00,000
To Securities Premium Reserve A/c 1,00,000

4 Bank A/c Dr 4,00,000

To 12% Debenture Allotment A/c 4,00,000

5 12% Debenture First & Final Call A/c Dr 5,00,000

To 12% Debentures A/c 5,00,000

Simple entry 1 mark and compound entry 2 mark (with full narration)

Surabhi Company Ltd.

29)
Balance Sheet as on 31-3-2022
Particulars Note No. Amount
Rs.
I EQUITY AND LIABILITIES:
1 Shareholders Fund:
a) Share Capital 4,00,000
b) Reserves and Surplus 2,50,000
 2 Non-Current Liabilities:
a) Long Term Borrowings 3,50,000
3 Current Liabilities: 3
a) Trade Payables 1 3,00,000

Total 13,00,000
II ASSETS:
1 Non-Current Assets:
a) Fixed Assets: 6,00,000
b) Other Non Current Assets 3,00,000 2

2 Current Assets:
a) Cash and Cash Equivalents 2 4,00,000

Total 13,00,000

Notes to Accounts:
Particulars Amount (Rs.)
Note No.:1 Trade Payables
1 Creditors 2,00,000
2 Bills Payable 1,00,000
Total 3,00,000
Note No.:2 Cash and Cash Equivalents 1
1 Cash in hand 2,50,000
2 Cash at Bank 1,50,000
Total 4,00,000

Calculation of Current Ratio:

30) Current Assets

Current Ratio = -------------------------
Current Liabilities

Current Assets = Debtors + Stock + Cash in Hand + Pre-paid Expenses

= 1,50,000 + 90,000 + 50,000 + 10,000
= 3,00,000

Current Liabilities = Bank Overdraft + Creditors + Short term Provisions

= 70,000 + 60,000 + 20,000
= 1,50,000

3,00,000
Current Ratio = --------------- = 2 : 1
1,50,000 3

Quick Assets
Quick Ratio = -------------------------
Current Liabilities

Quick Assets = Current Assets – Stock – Pre-Paid Expenses

= 3,00,000 – 90,000 – 10,000
= 2,00,000
 2,00,000
Quick Ratio = --------------- = 1.33 : 1 3
1,50,000

Cash Flow Statement for the year ended 31st March 2022
31) Particulars Amount (Rs.)
I Cash Flows from Operating Activities:

1) Issue of Preference Shares [Fresh issue] (+) 5,00,000

2) Redemptions of Debentures [Repayment] (-) 3,00,000 2

Net Cash inflow from Operating Activities (+) 2,00,000

Dr Preference Capital Account Cr

Particulars Amount Particulars Amount
Rs. Rs.
By Balance b/d 10,00,000
To Balance c/d 15,00,000
By Bank A/c 5,00,000
[New Capital issued] 2
15,00,000 15,00,000

Dr 10% Debentures Account Cr

Particulars Amount Particulars Amount
Rs. Rs.
To Bank A/c 3,00,000 By Balance b/d 8,00,000
[Redemption]

To Balance c/d 5,00,000 2

8,00,000 8,00,000

PART – D
Champion Sports Club, Bengalore
Dr Income & Expenditure Account for the year ending 31-3-2022 Cr
Expenditure Amount Income Amount
32)
Rs. Rs.
To Office Expenses 35,000 By Subscriptions 60,000
(+) C/y O/s 3,000 (+) O/s Subscription 5,000
(-) Last year O/s 5,000 33,000 (+) Pre-received
Subscriptions 3,000 68,000
To Salary 10,000
By Entrance Fees 10,000
To Printing 2,000 (-) Capitalised (50%) 5,000 5,000
To Rent 13,000 By Sports Fees 12,000
7
To Depreciation: By Sale of Old Sports materials 3,000
-Building 8,000

To Surplus 22,000
88,000 88,000
 Champion Sports Club, Bengalore
Balance Sheet as on 31-3-2022
Liabilities Amount Assets Amount
Rs. Rs.
Capital Fund Cash at Bank 20,000
Opening Balance 1,82,000
(+) Entrance Fees 5,000 Furniture 25,000
(+) Surplus 22,000 2,09,000
Sports Materials 60,000
Building Fund 10,000 Add: Purchases 20,000 80,000
5
O/s Office Expenses 3,000 Buildings 1,00,000
Less:Depreciation 8,000 92,000

O/s Subscriptions 5,000

2,22,000 2,22,000

Dr Revaluation Account Cr
33) Particulars Amount Particulars Amount
Rs. Rs.
To Furniture A/c 3,000 By Building A/c 10,500
[30,000 x 10%] [70,000 x 15%]
To PDD on Debtors A/c 1,800
[36,000 x 5/100]
To O/s Repair bills A/c 1,200 3
To Partners’ Capital A/c
-Pavithra 3,000
[5,700 x 2/3]
-Pavana 1,500 4,500
[5,700 x 1/3]
10,500 10,500

Dr Partners’ Capital Account Cr

Particulars Amount (Rs.) Particulars Amount (Rs.)
Pavithra Pavana Pallavi Pavithra Pavana Pallavi
To Pavithra’s - - 8,000 By Balance b/d 80,000 60,000 -
Capital A/c
By Profit & Loss A/c 6,000 3,000
To Pavana’s - - 4,000 [9000x2/3,1/3] -
\ Capital A/c
By Revaluation A/c 3,000 1,500
To Cash A/c 8,000 4,000 -
[G/W withdrawn] By Cash A/c -
[50000 + 12000] 62,000
To Balance c/d 89,000 64,500 50,000
By Pallavi’s
Capital A/c 8,000 4,000 5
[12,000x 2/3,1/3] -
97,000 68,500 62,000 97,000 68,500 62,000

By Balance b/d 89,000 64,500 50,000

New Balance Sheet of firm as on 01-04-2022

Liabilities Amount Assets Amount
Rs. Rs.
Creditors 25,000 Cash in hand 65,000
[15,000+62,000-12,000]
Bills Payable 15,000
 Debtors 36,000
Capitals: Less: PDD 1,800 34,200
Krishna 89,000
Murthy 64,500 Stock 28,000
Veena 50,000
Buildings 70,000
O/s Repair Bills 1,200 Add: Appreciation 10,500 80,500

Furniture 30,000 4
Less: Depreciation 3,000 27,000

Investments 10,000
2,44,700 2,44,700

Dr Realisation Account Cr
Particulars Amount Particulars Amount
Rs. Rs.
34) To Bills Receivable 5,000 By Creditors 24,000
To Debtors 32,000 By Bills Payable 18,000
To Investments 20,000 By Bank Loan 11,000
To Machinery 36,000
To Buildings 60,000 By Bank A/c
-Bills Receivable 6000
-Debtors 36000
To Bank A/c -Investments 22000
-Creditors 24,000 -Machinery 38000 1,02,000
-Bills Payable 18,000
-Bank Loan 11,000 53,000 By Manju’s Capital A/c 56,000
[Building took over]
To Bank A/c 2,000
[Dissolution Exp.]
6
ToPartners Capital A/c
-Manju [3000x3/5] 1,800
-Sanju [3000x2/5] 1,200 3,000
2,11,000 2,11,000

Dr Partners’ Capital Account Cr

Particulars Amount (Rs.) Particulars Amount (Rs.)
Manju Sanju Manju Sanju
To Realisation A/c 56,000 - By Balance b/d 60,000 40,000
[Asset took over]
By Reserve Fund A/c 9,000 6,000 3
To Bank A/c 14,800 47,200 [15000x3/5,2/5]
[Final Payment]
By Realisation A/c 1,800 1,200

70,800 47,200 70,800 47,200

Dr Bank Account Cr
Particulars Amount Particulars Amount
Rs. Rs.
To Balance b/d 15,000 By Realisation A/c 53,000
[Liabilities Paid]
To Realisation A/c 1,02,000 3
 [Assets sold] By Realisation A/c 2,000
[Dissolution Exp.]

By Partners’ Capital A/c

-Manju 14,800
-Sanju 47,200

1,17,000 1,17,000

Journal Entries in books of Bright Company Ltd.

Date Particulars LF Debit Credit
35) Rs. Rs.
1 Bank A/c Dr 60,000
To Equity Share Application A/c 60,000

2 Equity Share Application A/c Dr 60,000

To Equity Share Capital A/c 60,000

3 Equity Share Allotment A/c Dr 1,00,000

To Equity Share Capital A/c 60,000
To Securities Premium Reserve A/c 40,000

4 Bank A/c Dr 1,00,000

To Equity Share Allotment A/c 1,00,000

5 Equity Share First & Final Call A/c Dr 80,000

To Equity Share Capital A/c 80,000

6 Bank A/c Dr 72,000

To Equity Share First & Final Call A/c 72,000

7 Equity Share Capital A/c Dr 20,000

To Equity Share First & Final Call A/c 8,000
To Forfeited Shares A/c 12,000

8 Bank A/c Dr 16,000

Forfeited Shares A/c Dr 4,000
To Equity Share Capital A/c 20,000
12
9 Forfeited Shares A/c Dr 8,000
To Capital Reserve A/c 8,000

Simple entry 1 mark and compound entry 2 mark (with full narration)

Journal Entries
Date Particulars LF Debit Credit
36)
Rs. Rs.
(a) 1 Bank A/c Dr 4,50,000
To 8% Debenture Application & Allotment A/c 4,50,000

2 8% Debenture Application & Allotment A/c Dr 4,50,000

Discount on Issue of Debentures A/c Dr 50,000
To 8% Debentures A/c 5,00,000
 (b) 1 Bank A/c Dr 5,50,000
To 8% Debenture Application & Allotment A/c 5,50,000

2 8% Debenture Application & Allotment A/c Dr 5,50,000

To 8% Debentures A/c 5,00,000
To Securities Premium Reserve A/c 50,000
(c)1 Bank A/c Dr 5,50,000
To 8% Debenture Application & Allotment A/c 5,50,000

2 8% Debenture Application & Allotment A/c Dr 5,50,000

Loss on Issue of Debentures A/c Dr 50,000
To 8% Debentures A/c 5,00,000
To Securities Premium Reserve A/c 50,000
To Premium on Redemption of Debentures A/c 50,000

(d) 1 Bank A/c Dr 5,00,000

To 8% Debenture Application & Allotment A/c 5,00,000

2 8% Debenture Application & Allotment A/c Dr 5,00,000

To 10% Debentures A/c 5,00,000

12
Simple entry 1 mark and compound entry 2(3) mark (with full narration)

Abhiman Company Ltd.

Comparative Statement of Profit and Lossfor the year ended 31-03-2021 and 31-03-2022
37)
Particulars Absolute Percentage
31-3-2021 31-3-2022 Increase or of Increase
Decrease or Decrease
Rs. Rs. Rs. %
I INCOME .
1 Revenue from Operation 10,00,000 12,00,000 2,00,000 20.00
2 Other Income 1,00,000 50,000 (50,000) (50.00) 3

TOTAL REVENUE -A 11,00,000 12,50,000 1,50,000 13.64

II EXPENDITURE
1 Cost of Material Consumed 5,00,000 5,80,000 80,000 16.00
2 Employees Benefit Expenses 2,00,000 2,30,000 30,000 15.00
3 Finance cost 1,00,000 1,20,000 20,000 20.00 6
4 Depreciation and Amortization 80,000 90,000 10,000 12.50
5 Other Expenses 70,000 60,000 (10,000) (14.29)
TOTAL EXPENDITURE - B 9,50,000 10,80,000 1,30,000 13.68
III Profit Before Tax [A-B] 1,50,000 1,70,000 20,000 13.33
Less: Tax Expenses: 3
Current Tax (30%) 45,000 51,000 6,000 13.33
IV Profit for the Year (PAT) 1,05,000 1,19,000 14,000 13.33

Calculation of Ratios:
38)
a) Net Assets Turnover Ratio:
Revenue from Operations
Net Assets Turnover Ratio = -----------------------------------
Capital Employed

Revenue from Operations = 15,00,000

Capital Employed = 30,00,000

 15,00,000
Net Assets Turnover Ratio = -------------- = 0.5 times
30,00,000

b) Fixed Assets Turnover Ratio:

Net Revenue from Operations
Fixed Assets Turnover Ratio = --------------------------------------
Net Fixed Assets
Net Revenue from Operations = 15,00,000

Net Fixed Assets = 35,00,000

15,00,000
Fixed Assets Turnover Ratio = ----------- = 0.43 times
35,00,000

c) Working Capital Turnover Ratio:

Net Revenue from Operations
Working Capital Turnover Ratio = -------------------------------------
Working Capital

Net Revenue from Operations = 15,00,000

Working Capital = 7,50,000

15,00,000
Working Capital Turnover Ratio = ----------- = 2 times
7,50,000

d) Gross Profit Ratio:

Gross Profit
Gross Profit Ratio = ----------------------------------- X 100
Net Revenue from Operations

3,75,000
Gross Profit Ratio = ----------- X 100 =25%
15,00,000

e) Operating Profit Ratio:

Operating Profit
Operating Profit Ratio = ----------------------------------- X 100
Net Revenue from Operations

2,25,000
Operating Profit Ratio = ----------- X 100 =15%
15,00,000

f) Operating Ratio:
Equity Shareholders Fund
Book Value per Share = -----------------------------------
No. of Equity shares

Equity Shareholders Fund = 20,00,000

 No. of Equity shares = 1,00,000

20,00,000
Book Value per Share = ---------------- = Rs.20 Each Ratio 2 marks
1,00,000 12

PART – E
[Practical Oriented Questions]
39) a) Equal Ratio
b) Not Allowed
c) Not Charged
d) Allowed at 6% p.a. 1x5=5
e) Not Allowed.

Dr. A’s Executor’s Loan Account Cr.

40) Date Particulars Amount Date Particulars Amount
31.3.2020 To Bank A/c 12,000 01.4.2019 By A’s Capital A/c 20,000
[10,000+2,000]
31.3.2020 By Interest A/c 2,000
31.3.2020 To Balance c/d 10,000 [20,000 x10/100]
22,000 22,000
31.3.2021 To Bank A/c 11,000 01.4.2020 By Balance b/d 10,000
[10,000+1,000]
31.3.2021 By Interest A/c 1,000
[10,000 x10/100] 5
11,000 11,000

Cash Flow from Operating Activities (Direct Method)

41) Particulars Amount Rs.
I Cash Flows from Operating Activities:
Cash Receipts from Customers XXXX
Less: Cash paid to Suppliers and employees (XXX)
Cash Generated from Operations XXXX
Less: Income Tax Paid (XXX)
Cash Flow before extraordinary items XXXX
Add/Less: Extraordinary Items XXX
5
Net Cash From Operating Activities XXXX