CBSE Class 12 Accountancy Question Paper 2020 Set 67-4 Solutions

-Strictly Confidential: (For Internal and Restricted Use Only)
Senior School Certificate Examination March -2020
Marking Scheme – Accountancy
SUBJECT CODE: 055 PAPER CODE: 67/4/1, 67/4/2, 67/4/3

General Instructions:

1. You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake in evaluation may lead to serious problems
which may affect the future of the candidates, education system and teaching profession. To
avoid mistakes, it is requested that before starting evaluation, you must read and understand the
spot evaluation guidelines carefully. Evaluation is a 10-12 days mission for all of us. Hence,
it is necessary that you put in your best efforts in this process.

2. Evaluation is to be done as per instructions provided in the Marking Scheme. It should not be
done according to one’s own interpretation or any other consideration. Marking scheme should
be strictly adhered to and religiously followed. However, while evaluating, answers which
are based on latest information or knowledge and innovative, they may be assessed and
marks be awarded to them.

3. The Head-Examiner must go through the first five answer books evaluated by each evaluator
on the first day to ensure that evaluation has been carried out as per the instructions given in the
Marking Scheme. The remaining answer scripts meant for evaluation shall be given only after
ensuring that there is no significant variation in the marking of individual evaluators.

4. Evaluators will mark (√) wherever the answer is correct . for wrong answers (×) be marked
.Evaluators will not put right mark (√) while evaluating which gives an impression that answer
is correct but no mark is awarded. This is most common mistake which evaluators are
committing.

5. If a question has parts, please award marks on the right hand side for each part. Marks awarded
for different parts of the question should then be totalled up and written in the left hand margin
and encircled. This may be followed strictly.

6. If a question does not have any parts, marks must be awarded in the left hand margin and
encircled. This may be followed strictly.

7. If a student has attempted an extra question, answer of the question deserving more marks
should be retained and other answer scored out.

8. No marks to be deducted for the cumulative effect of an error. It should be penalized only once.

9. Deductions up to 25% of the marks must be made if the student has not drawn formats of the
Journal and Ledger and has not given the narrations.

1

10. No marks are to be deducted or awarded for writing / not writing ‘TO and BY’ while preparing
Journal and Ledger accounts.

11. In theory questions, credit is to be given for the content and not for the format.

12. A full scale of marks 0-80 has to be used. Please do not hesitate to award full marks if the
answer deserves it.

13. Every examiner has to necessarily do evaluation work for full working hours i.e. 8 hours
everyday and evaluate 20 answer books per day.

14. Avoid the following common types of errors committed by the Examiners in the past.
- Leaving answer or part thereof unassessed in an answer script
- Giving more marks for an answer than assigned to it or deviation from the marking scheme.
- Wrong transference of marks from the inside pages of the answer book to the title page.
- Wrong question wise totaling on the title page.
- Wrong totaling of marks of the two columns on the title page
- Wrong grand total
- Marks in words and figures not tallying
- Wrong transference to marks from the answer book to award list
- Answers marked as correct but marks not awarded

15. Half or a part of answer marked correct and the rest as wrong but no marks awarded.

16. While evaluating the answer scripts if the answer is found to be totally incorrect, it should be
marked as (x) and awarded zero(0) Marks.

17. Any unassessed portion, non-carrying over of marks to the title page or totalling error detected
by the candidate shall damage the prestige of all the personnel engaged in the evaluation work
as also of the Board. Hence in order to uphold the prestige of all concerned, It is again
reiterated that the instructions be followed meticulously and judiciously.

18. The Examiners should acquaint themselves with the guidelines given in the Guidelines for
Spot Evaluation before starting the actual evaluation.

19. Every Examiner shall also ensure that all the answers are evaluated, marks carried over to the
title page, correctly totaled and written in figures and words.

20. The board permits candidates to obtain photocopy of the Answer Book on request in an RTI
application and also separately as a part of the re- evaluation process on payment of the
processing charges.

2

.

Marking Scheme 2019-20
Accountancy (055)
67/4/1 Marks
Expected Answers/ Value Points
1 13 13 Q. When a company plans to redeem………….

Ans. 25 1 mark

2 12 12 Q.___________ capital accounts always……..

Ans. Fixed Capital accounts always show a credit balance. 1 mark

3 11 11 Q. In the case of retirement……………..

Ans. (d)/ Have a choice to get either (i) or (ii) 1 mark

4 10 10 Q. The following information has been……………..

Ans. (d)/ Both (b) and (c) 1 mark

5 9 9 Q. Anita and Babita were partners…………………..

Ans. (a)/ 41:7:12 1 mark

6 7 8 Q. Amla, Bimla and Kavita…………………….

Ans. (c)/ 6:5 1 mark

7 8 1 Q. Capital Reserve is created out of ………………

Ans. Capital Reserve is created out of capital profits 1 mark

8 6 2 Q. Avya, Divya and Kavya…………………………..

Ans. (d)/ 1 mark
Avya’s Capital A/c 10,000
To Kavya’s capital A/c 10,000
3

9 5 3 Q. Mohit, Shobhit and Rohit…………………………

Ans. Mohit ₹6,000 and Shobhit ₹3,000. 1 mark

10 4 4 Q. Which of the following is not……………….

Ans. (b)/ Issuing partly paid up bonus shares to shareholders 1 mark

11 3 5 Q. Tangible assets of the firm are…………………

Ans. (a)/ ₹10,00,000 1 mark

12 2 6 Q. Income and Expenditure Account records……………..

Ans. (b)/ Income and Expenditure of Revenue nature only. 1 mark

13 1 7 Q. When the business of the firm becomes illegal……

Ans. Compulsory dissolution 1 mark

14 14 14 Q. On 31st March 2018 SS Ltd…………………………………

Ans.

SS Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Surplus i.e. balance in Statement of Profit and Loss Dr. 7,50,000
Mar 31 To Debenture Redemption Reserve A/c 7,50,000
(Debenture Redemption Reserve created out of 1 mark
profits)

Apr 1- Debenture Redemption Investments A/c Dr. 7,50,000
Apr30 To Bank A/c 7,50,000 ½ mark
(Debenture Redemption Investments purchased)

4

2019 Bank A/c Dr. 7,50,000
Mar.31 To Debenture Redemption Investments A/c 7,50,000
(Debenture Redemption Investments realised) ½ mark

” 10% Debentures A/c Dr. 50,00,000
To Debenture holders A/c 50,00,000
( Amount payable to Debenture holders on ½ mark
redemption)

” Debenture holders A/c Dr. 50,00,000
To Bank A/c 50,00,000
( Payment made to Debenture holders) ½ mark

” Debenture Redemption Reserve A/c Dr. 12,50,000
To General Reserve A/c 12,50,000 -
(Proportionate amount of Debenture Redemption =
Reserve transferred to General Reserve) 3 marks

(No marks have been allotted for the transfer of Debenture redemption Reserve to
General Reserve)
OR OR

Q. X Ltd. has 4,000 12% debentures……………………

X Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Debenture Interest A/c Dr. 24,000
Sep 30 To Debenture holders A/c 21,600
2,400 1 mark
To TDS Payable A/c
(Debenture Interest due to debenture holders,
TDS deducted @10%)

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400 ½

5

To Bank A/c 24,000 mark

(Payment made to Debenture holders and tax
deposited)

(Note: If an examinee has passed separate
entries for payment to Debenture holders
and tax deposited, full credit be given)

2019 Debenture Interest A/c Dr. 24,000
Mar 31 To Debenture holders A/c 21,600
To TDS Payable A/c 2,400 ½
(Debenture Interest due to debenture holders, mark
TDS @10%)

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400
To Bank A/c 24,000
(Payment made to Debenture holders and tax
deposited)

½
(Note: If an examinee has passed separate mark
entries for payment to Debenture holders
and tax deposited, full credit be given)

” Statement of Profit and Loss Dr. 48,000
½
To Debenture Interest A/c 48,000
mark

(Debenture Interest account transferred to
=
Statement of Profit and Loss)
3 marks

15 - - Q. From the following information, calculate……………….

Ans.

6

Dr. Stock of Sports Materials A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d 1,10,000 By Income and
To Cash 2,50,000 Expenditure A/c- Sports
To Creditors –credit purchases 1,40,000 Materials consumed 3,50,000 2 marks
By balance c/d 1,50,000
5,00,000 5,00,000
.

Dr. Creditors for Sports Materials A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d (advance) 25,000 By balance b/d (creditors) 25,000
To Cash 1,50,000 By Purchases 1,40,000 2 marks

To balance c/d (creditors) 60,000 By balance c/d (Advance) 70,000
2,35,000 2,35,000

Alternatively:

Credit Purchases= Payment made to creditors+ closing Creditors – Opening Creditors –
Closing advance + Opening advance
= ₹1,50,000 + ₹60,000 – ₹25,000 - ₹70,000 + ₹25,000
=
= ₹1,40,000………………………………………………………2 marks

4 marks
Sports Materials consumed = Opening stock of Sports Materials + Purchases – Closing
Stock of Sports Materials
= ₹1,10,000 + (₹2,50,000 + ₹1,40,000) – ₹1,50,000
= ₹3,50,000…………………………2 marks

16 17 16 Q. A and B are partners sharing profits and losses………………

7

Ans.
. JOURNAL
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
A’s capital A/c Dr. 140 1 mark
To B’s capital A/c 140
(Omission of interest on capital, now rectified)

Working Notes:

Table showing adjustments
Partners Interest on Interest on Profits Net Effect
capital Cr. drawings Cr. Dr. Dr. Cr.
(₹) (₹) (₹) (₹) (₹)
A 10,000 4,500 14,640 140 - 2 marks

B 7,500 2,400 9,760 - 140
17,500 6,900 24,400 140 140

Note: if an examinee has calculated Net effect by any other method, full credit be
given.

Calculation of Interest on capital:

Calculation of Opening Capitals:

A (₹) B (₹)

Closing Capitals 1,65,500 1,27,600
Add Drawings 60,000 40,000
Add Interest on drawings 4,500 2,400
1 mark
Less Profits (30,000) (20,000)
Opening Capitals 2,00,000 1,50,000

Interest on Capital@5% p.a. 10,000 7,500
=

Interest on Drawings:
4 marks
A: 12/100 x ₹60,000 x 7.5/12 = ₹4,500
B: 12/100 x ₹40,000 x 6/12 = ₹2,400

8

OR OR

Q. Arun, Shobha and Yuvraj were ……………………….

Ans.

Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Profit and Loss A/c Dr. 90,000
To Profit and Loss Appropriation A/c 90,000
(Profit transferred from Profit and Loss A/c to Profit and 1 mark
Loss Appropriation A/c)

Partner’s Salary A/c Dr. 60,000
To Arun’s Current A/c 20,000
To Shobha’s Current A/c 20,000
To Yuvraj’s Current A/c 20,000 ½ mark
(Salary credited to Partner’s Current Accounts)

Profit and Loss Appropriation A/c Dr. 60,000
To Partner’s Salary A/c 60,000
(Partner’s Salary transferred to Profit and Loss ½ mark

Appropriation A/c)

Interest on Capital A/c Dr. 20,000
To Arun’s Current A/c 10,000
To Shobha’s Current A/c 5,000 ½ mark

To Yuvraj’s Current A/c 5,000
(Interest on Capital credited to Partner’s Current Accounts)

Profit and Loss Appropriation A/c Dr. 20,000
To Interest on Capital A/c 20,000 ½ mark

(Interest on Capital transferred to Profit and Loss
Appropriation A/c)

9

Profit and Loss Appropriation A/c Dr. 10,000
To Arun’s Current A/c 6,000 1 mark
To Shobha’s Current A/c 2,000
To Yuvraj’s Current A/c 2,000
(Divisible profit credited to Partner’s Current Accounts)
=
4 marks

17 - - Q. From the following Receipts and Payments Account……………………..

Ans.
Shyam Music Club

Dr. Income and Expenditure A/c for the year ended March 31, 2019 Cr.
Expenditure Amount Income… Amount
(₹) (₹)
To Depreciation on Musical By Subscriptions 2,00,000
Instruments 3,000 Add subscriptions outstanding ½x8
25,000 =
To Honorarium 71,000 2,25,000 4 marks
By Locker rent 8,000
To Electricity bill 31,000 By Gain on sale of old furniture 5,000
By Admission Fee 5,000
To excess of income over 1,38,000
expenditure (surplus)

2,43,000 2,43,000

18 - - Q. X, Y and Z were partners in a firm…………………

Ans.

10

Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 X’s Capital A/c Dr. 32,000
Jun.24 Z’s Capital A/c 16,000
To Y’s Capital A/c 48,000
(Deceased partner’s share of goodwill transferred to his
capital A/c)

“ Profit and Loss Suspense A/c Dr. 16,000
To Y’s Capital A/c 16,000
(Share of Profit till date of death credited to Y’s Capital 1x4
A/c) =
4 marks

“ Y’s Capital A/c Dr. 1,75,000
To Y’s Executors A/c 1,75,000
(Y’s capital A/c transferred to her Executors A/c)

Jul.15 Y’s Executors A/c Dr. 1,75,000
To Bank A/c 1,75,000
(Paid the amount due to Y’s Executors)

.

Note 1: if an examinee has raised the goodwill, full credit be given.

Note 2: No marks are to be deducted if the dates are not mentioned.

19 19 19 Q. Harish and Gopal were partners…………………………

Ans.

11

Dr. Realisation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹) 1 mark
To Debtors 76,000 By Creditors 36,000 for
To Stock 2,00,000 By O/s expenses 10,000 transfer
To Furniture 20,000 By Gopal’s wife’s loan 50,000 of
To Leasehold premises 1,00,000 assets
+
1 mark
To Gopal’s capital A/c By Bank A/c for
Gopal’s wife’s loan 50,000 Leasehold premises1,50,000 transfer
Realisation expenses 10,000 60,000 1 Debtors 64,000 of
Stock 1,84,000 3,98,000 1 liabilities
To Bank A/c +
Creditors 16,200 (1 x 4)
Outstanding expenses 10,000 26,200 1 =

To profit transferred to: 6 marks
Harish’s Capital A/c 7,080
Gopal’s capital A/c 4,720 11,800 1
4,94,000 4,94,000

OR
OR

Q. Sudha, Naresh and Geeta were partners…………………

Ans.

12

Dr. Profit and Loss Appropriation A/c for the year ended 31st March 2019 Cr.

Particulars Amount Particulars Amount
(₹) (₹)
To Interest on capital: By Net Profit 7,00,000 1
Sudha’s Current A/c 54,000
Naresh’s Current A/c 36,000 By Interest on Drawings
Geeta’s Current A/c 18,000 1,08,000 1 Sudha’s Current A/c 9,000
Naresh’s Current A/c 9,000
To Partner’s Salary: Geeta’s Current A/c 4,200 22,200 2
Sudha’s Current A/c 3,60,000
Naresh’s Current A/c1,60,000 6 marks
5,20,000 1

To Profit transferred to:
Sudha’s Current A/c 47,100
Naresh’s Current A/c 28,260
Geeta’s Current A/c 18,840 94,200 1

7,22,200 7,22,200

Net Profit 7,06,750
Less Interest on Geeta’s Loan 6,750
7,00,000

20 - - Q. Pass journal entries in the books of X Ltd………………

Ans. Journal of X Ltd.
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
(i) Bank A/c Dr. 1,60,000
To Bank Loan A/c 1,60,000
(Loan taken from SBI)

Debenture Suspense A/c Dr. 2,00,000
To 12% Debentures A/c 2,00,000
(12% Debentures issued in favour of SBI as a
collateral security)

13

(ii) Bank A/c Dr. 1,10,000 1x6
To Debenture Application and Allotment A/c 1,10,000 =
(Application money received on 1,000 12% 6 marks
Debentures)

Debenture Application and Allotment A/c Dr. 1,10,000
Loss on issue of Debentures A/c Dr. 5,000
To 12% Debentures A/c 1,00,000
To Securities Premium Reserve A/c 10,000
To Premium on redemption of debentures A/c 5,000
(Allotment of 12% debentures at a premium,
redeemable at a premium)

(iii) Machinery A/c Dr. 4,60,000
To Beta Ltd. A/c 4,60,000
(Machinery purchased on credit)

Beta Ltd. Dr. 4,60,000
To 9% Debentures A/c 4,00,000
To Securities Premium Reserve A/c 60,000
(Purchase consideration discharged by issuing 9%
Debentures at a premium)

21 22 21 Q. Zee Ltd. invited………………

Ans.
Zee Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Application money received on 6,00,000 shares) ½ mark

14

Equity Share Application A/c Dr. 24,00,000
To Equity Share Capital A/c 6,80,000
To Securities Premium Reserve A/c 6,80,000
To Equity Share Allotment A/c 3,20,000 1 mark
To Bank A/c 7,20,000
(Application money adjusted towards capital, share
allotment, premium and excess refunded)

Equity Share Allotment A/c Dr. 17,00,000
To Equity Share Capital A/c 10,20,000
To Securities Premium Reserve A/c 6,80,000 ½ mark
(Allotment money due including premium)

Bank A/c Dr. 14,20,800
To Equity Share Allotment A/c 13,80,000
To Calls in Advance 40,800
(Allotment money received except on 1,700 shares and
advance received of first and final call)

or

Bank A/c Dr. 14,13,900
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c 13,80,000 1 mark
To Calls in Advance A/c 40,800
(Allotment money received except on 1,700 shares)

Alternate entry:
Bank A/c Dr. 13,73,100
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c 13,80,000
(Allotment money received)

Equity Share Capital A/c Dr. 8,500
Securities Premium Reserve A/c Dr. 3,400
To Share Forfeiture A/c 5,000
To Equity Share Allotment A/c 6,900
15

(Yamini’s shares forfeited for non payment of allotment
money)

Alternatively:
Equity Share Capital A/c Dr. 8,500 1 mark
Securities Premium Reserve A/c Dr. 3,400
To Share Forfeiture A/c 5,000
To Calls in arrears A/c 6,000
(Yamini’s shares forfeited for non payment of allotment
money)

Equity Share First and Final call A/c Dr. 20,29,800
To Equity Share Capital A/c 16,91,500
To Securities Premium Reserve A/c 3,38,300 1 mark
( Share First and final call due)

Bank A/c Dr. 19,89,000
Calls in advance A/c Dr. 40,800
To Equity Share First and Final call A/c 20,29,800
(First and final call money received except on 6,800
shares) 1 mark

Alternate entry:
Bank A/c Dr. 20,29,800
To Equity Share First and Final call A/c 20,29,800
(First and final call money received except on 6,800
shares)
Bank A/c Dr. 6,800
Share Forfeiture A/c Dr. 1,700
To Equity Share Capital A/c 8,500
(Shares reissued for ₹8 per share fully paid) 1 mark

Share Forfeiture A/c Dr. 800
To Capital Reserve A/c 800
(Gain on reissue of forfeited shares transferred to capital 1 mark

reserve) =
8 marks

OR OR

16

Q. K.N. Ltd. invited………………………………..

K.N. Ltd.
Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application and Allotment A/c 24,00,000
(Application money received on 8,00,000 shares) ½ mark

Equity Share Application and Allotment A/c Dr. 24,00,000
To Equity Share Capital A/c 18,00,000
To Calls in Advance A/c 4,50,000
To Bank A/c 1,50,000
(Shares allotted and excess application money adjusted 1 mark
on call, balance refunded)

Equity Share First Call A/c Dr. 24,00,000
To Equity Share Capital A/c 24,00,000
(Share first call money due) 1 mark

Bank A/c Dr. 19,32,000
Calls in Advance A/c Dr. 4,50,000
Calls in arrears A/c Dr. 18,000
To Equity Share First Call A/c 24,00,000 1 mark

(Share first call money received)

Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Equity Share First Call A/c 18,000
(Rakesh’s shares forfeited for non payment of first call) 1 mark

or

17

Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Calls in arrears A/c 18,000
(Rakesh’s shares forfeited for non payment of first call)

Bank A/c Dr. 78,000
To Equity Share Capital A/c 60,000
To Securities premium Reserve A/c 18,000 1 mark
(Shares reissued for ₹13 per share fully paid)

Share Forfeiture A/c Dr. 24,000
To Capital Reserve A/c 24,000
(Gain on reissue of forfeited shares transferred to capital 1 mark
reserve)

Equity Share Second and Final Call A/c Dr. 35,64,000
To Equity Share Capital A/c 17,82,000
To Securities premium Reserve A/c 17,82,000 ½ mark
(Share Second and Final call money due including
premium)

Bank A/c Dr. 35,64,000
To Equity Share Second and Final Call A/c 35,64,000
(Share second and final call money received) 1 mark

. =
8 marks
22 21 22 Q. Raman and Aman…..

Ans.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 2,20,000
To Suman’s Capital A/c 2,00,000 1 mark
To Premium for goodwill A/c 20,000
(Capital and premium for goodwill brought in by Suman)

18

Premium for goodwill A/c Dr. 20,000
To Raman’s Capital A/c Dr. 15,000
To Aman’s Capital A/c 5,000 1 mark
(Premium for goodwill credited to the capital accounts of
old partners in the sacrificing ratio)

Outstanding Expenses A/c Dr. 18,000
To Bank A/c 18,000 1 mark
(Outstanding expenses paid off)

Bad debts A/c Dr. 5,000
To Debtors A/c 5,000 ½ mark
(Bad debts written off)

Provision for bad debts A/c Dr 5,000
To Bad Debts A/c 5,000 ½ mark
(Bad debts adjusted from the provision)

Revaluation A/c Dr. 2,500
To Provision for bad debts A/c 2,500
(Provision for bad debts created) 1 mark

Workmen’s Compensation Reserve A/c Dr. 55,000
Revaluation A/c Dr. 5,000
To Workmen’s Compensation claim A/c 60,000 1 mark

(Workmen’s compensation claim recorded)

Revaluation A/c Dr. 72,000
To Machinery A/c 18,000
To Land and Building A/c 54,000
(Machinery and Land and building depreciated) 1 mark

Raman’s Capital A/c Dr. 59,625
Aman’s Capital A/c Dr. 19,875
To Revaluation A/c 79,500
(Loss on Revaluation debited to old partners in the old 1 mark

ratio) =
8 marks

19

Note 1: In case an examinee has given a combined entry for bad debts and provision,
full credit be given.
Note 2: if an examinee has raised and written off the goodwill, full credit be given.

OR OR

Q. A, B and C were partners in a firm…………………….

Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Provision for doubtful debts 3,100 By Land and Building 12,000

To Furniture 8,000

To Profit transferred to: 3 marks
A’s Capital A/c 300
B’s Capital A/c 300
C’s Capital A/c 300 900
12,000 12,000

Dr. Partners Capital Accounts Cr.
Particulars A B C Particulars A B C
(₹) (₹) (₹) (₹) (₹) (₹) 1 mark
To B’s Capital 10,000 - - By balance b/d 60,000 40,000 32,000
for each
A/c
capital
By General Reserve 10,000 10,000 10,000
To Bank A/c - 20,000 - A/c
By A Capital A/c (goodwill) - 10,000 - =
To B’s loan - 41,800 - 1x3
By Workmen’s Compensation
=
To balance c/d 61,800 - 43,800 Reserve 1,500 1,500 1,500
3 marks
By Revaluation A/c 300 300 300
71,800 61,800 43,800 71,800 61,800 43,800

20

Dr. Bank A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d 20,000 By B’s Capital A/c 20,000
2 marks
To Furniture 20,000 By Balance c/d 20,000

=
40,000 40,000 3+3+2
. =
(No marks are to be deducted for the cumulative effect of any transaction) 8 marks

PART B
OPTION 1
Analysis of Financial Statements

23 - - Q. The quick ratio of a ……………………… ½ mark
+
Ans. Increase ½ mark
=
Reason: Quick assets (cash) with no change in Current Liabilities 1 mark

24 24 24 Q. Employee benefit expenses………….

Ans. Bonus 1 mark

25 - 25 Q. Which of the following is not a limitation……………

Ans. (d)/ Intra firm comparison possible 1 mark

26 27 - Q. Under which of the following…………

Ans. (a)/ Current Liabilities 1 mark

27 26 27 Q. Interest received in cash……………..

Ans. Investing 1 mark

21

28 - - Q. List any two items…………..

Ans. Any two of the following:
(i) Balance with banks
(ii) Bank drafts in hand ½ mark
(iii) Current Investments +
(iv) Treasury Bills ½ mark
(v) Commercial Paper =
(vi) Preference Shares redeemable within three months from the date of purchase 1 mark

(Or any other correct item)

29 29 29 Q. While preparing cash flow statement………….
½ mark
Ans. No Flow +
½ mark
Reason: There is no change in cash and cash equivalents =
1 mark
30 - - Q. The Revenue from operations……………

Ans. Revenue from Operations= ₹6,00,000

Gross profit = 25/100 x ₹6,00,000 = ₹1,50,000………………………………….…1/2

Cost of Revenue from Operations =₹6,00,000 – ₹1,50,000

= ₹4,50,000……………………………….……1/2

Inventory turnover Ratio = Cost of Revenue from Operations/ Average Inventory… …1/2

3 marks
ð 3 = ₹4,50,000/ Average Inventory

ð Average Inventory =₹1,50,000…………………….…………………………1/2

Average Inventory = (Opening Inventory + Closing Inventory)/2= ₹1,50,000

22

ð (1/4 Closing inventory + Closing Inventory)/2 = ₹1,50,000

ð Closing Inventory = ₹2,40,000……………………………………………1/2

ð Opening Inventory = ¼ x ₹2,40,000 = ₹60,000………….………………1/2

OR

OR

Q. From the following information……………..

Interest Coverage Ratio = Profit before Interest and Tax/ Capital employed x 100…….1

Profit after Interest and Tax = ₹6,00,000

Profit before Interest and Tax = ₹6,00,000 + ₹80,000+₹ 4,00,000………………………1 3 marks

Interest Coverage Ratio = ₹10,80,000/ ₹80,000

= 13.5 times……………………………………………..………1

31 31 31 Q. Fill in the amounts……………

23

Ans.

Common Size Statement of Profit and Loss
For the year ended 31st March 2019

Absolute Change % of Revenue
Particulars from Operations
2017-18 (₹) 2018-19 (₹) 2017-18 2018-19
I. Revenue from Operations 20,00,000 25,00,000 100 100 ½ mark

II. Other Income 1,00,000 2,50,000 5 10 ½ mark

III. Total Revenue 21,00,000 27,50,000 105 110
IV. Expenses
(a) Cost of materials consumed 6,00,000 8,00,000 30 32 ½ mark

(b) Change in Inventory 1,00,000 2,00,000 5 8 ½ mark

(c) Employee benefit expenses 3,00,000 4,50,000 15 18 ½ mark

(d) Other Expenses 2,00,000 2,25,000 10 9 ½ mark

Total Expenses 12,00,000 16,75,000 60 67 ½ mark

V. Profit before Tax (III-IV) 9,00,000 10,75,000 45 43

Less: Tax 2,00,000 2,50,000 10 10 ½ mark
7,00,000 8,25,000 35 33 =
(Note: ½ mark has been allotted for each missing figure) 4 marks

OR OR

Q. From the following Statement…………….

24

Comparative Statement of Profit and Loss
for the years ended 31st March 2018 and 31st March 2019

Particulars 2017-18 2018-19 Absolute Percentage
(₹) (₹) Increase/ Increase/
Decrease Decrease
(₹) (%)
I. Revenue from operations 20,00,000 45,00,000 25,00,000 25
½ mark

II. Total Revenue 20,00,000 45,00,000 25,00,000 25
½ mark

III. Expenses

½ mark
Employee benefit expenses 8,00,000 10,00,000 2,00,000 25

½ mark
Other expenses 2,00,000 5,00,000 3,00,000 150

½ mark
IV. Total expenses 10,00,000 15,00,000 5,00,000 50

½ mark
V. Profit before Tax 10,00,000 30,00,000 20,00,000 200

VI. Less Tax ½ mark
3,00,000 9,00,000 6,00,000 200

VII. Profit after Tax 7,00,000 21,00,000 14,00,000 200 ½ mark
=
4 marks

32 32 32 Q. From the following Balance Sheet……………….

Ans.

25

Cash Flow Statement of Gopal Ltd. for the year ended 31st March 2019
Particulars Details(₹) Amount (₹)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit before Tax 6,75,000
Adjustment for non cash and non operating items
Add
Interest on debentures 1,08,000
Depreciation 2,00,000
Goodwill written off 12,000
Operating profit before Working capital changes 9,95,000 2½
Less Increase in Inventory (1,24,000) marks
Cash from operations 8,71,000
Less Tax paid (1,50,000)

Cash Inflows from Operating activities 7,21,000

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Plant and Machinery (7,58,000)
Purchase of Investments (55,000) 1 mark
Cash used in Investing activities (8,13,000)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash Inflows from Financing activities 2,32,000 1 mark

Net increase in Cash and Cash equivalents 1,40,000

Add Opening balance of Cash and Cash equivalents
Current Investments 1,20,000
Cash and Cash equivalents 1,20,000 2,40,000 ½ mark
Closing balance of Cash and Cash equivalents
Current Investments 2,00,000
Cash and Cash equivalents 1,80,000 3,80,000

Working Notes:

26

Calculation of Net Profit before Tax:
Net Profit 5,00,000 ½ mark
Add Provision for Tax 1,75,000
6,75,000

Dr. Provision for Tax A/c Cr.
Particulars ` Particulars `
To Cash A/c 1,50,000 By Balance b/d 1,75,000
½ mark
To Balance c/d 2,00,000 By Statement of P & L – 1,75,000
Provision made
=
3,50,000 3,50,000 6 marks

PART B
OPTION II
Computerised Accounting
23 25 28 Q. The process of comparing……………
1 mark
Ans. (c) / Data validation

24 26 29 Q. A _______ attribute can be ……………… ½ mark
+
Ans. A composite attribute can be divided into smaller sub-parts but a simple attribute ½ mark
cannot be further sub divided. =
1 mark
25 - - Q. Name the accounting information……………
1 mark
Ans. (a) / Cash and Bank sub-system

26 28 - Q. Match the movement of mouse………………….
1 mark
Ans. (a) Down arrow key (ê)

27

27 29 25 Q. ________ prompts the user…………………………..
1 mark
Ans. Parameter query

28 27 24 Q. Hardware refers to…………………
1 mark
Ans. (b)/ Computer associated peripherals and their network

29 - 23 Q. Rows are referred by…………………………

Ans. False. 1 mark

30 30 30 Q. State any three features…………….

Ans. Following are the features of good accounting software (Any three):

(a) Do all basic accounting functions
(b) Manage your stored data and stores 1x3
(c) Do the job for costing =
(d) Manage payroll 3 marks
(e) Get many MIS (Management information system)
(f) File tax return
(g) Maintain budget etc
(h) Calculate interest pending amounts
(i) Manage data over different locations and synchronize it and many more other features.

OR OR

Q. Name the function of excel…………………

Ans. The name of the function is ‘TEXT’
3 marks
Its syntax is
TEXT ( value, format _ text)
Value - numeric value which, evaluates a numeric value or referenced cell containing
numeric value.
Formal Text – is a numeric format as a text string enclosed in quotation mark.

31 - - Q. Why is it necessary to have…………………security.
28

Ans. It is necessary to have safety features in accounting software to maintain the secrecy 1 mark
of accounting data.

Tools which provide data security: (Any two)

1) Password Security: Password is widely accepted security control to access the data. 1½x2
Only the authorized person can access the date. Any user who does not know the password =
cannot retrieve information from the system. It ensures data integrity. It was a binary 3 marks
according format of storage and offers access to the data base. =
1+3
2) Data audit: Audit feature of accounting software provides the user with administrator =
right in order to keep track of unauthorized access to the database. It audits for the 4 marks
correctness of entries. Once entries are audited with adulteration, if any, the software
displays all along with the name of the auditor user and date and – lime of attention. OR

3) Data Vault : Software provides additional security for the imputed data and this feature
is referred as data vault. Data vault ensures that original information is presented and is not
tempered. Data vault password cannot be broken. Some software’s even use data 1 mark
encryption method.
1½x2
OR =
3 marks
Q. What is meant by #DIV/O!Error? ……….. =
Ans. This means an error where the number is divided by zero (0). 1+3
=
Reasons 4 marks

(i) Entering a formula that contains explicit division by zero (0)
e.g. = 5/0

(ii) Using the cell reference to a blank cell or to a cell that contains zero as a division to
correct this. Either your need to change the cell reference or put a value in the cell used as a
divisor.

32 32 32 Q. A Ltd. wants to enter their sales………………

Ans. The basic steps to prepare a presentation to present sales related data are:

29

1) Collect data from various departments, heads/division for each quarter.

2) The data to be entered on excel sheet for different quarters before the product in 1x6
consideration.
=
3) Total sale for all the product and single product for all different quarters be calculated by
summing up rows and columns. 6 marks

4) Select to plot product wise total sales. Into a chart by selecting chart type (use insert tab
and click on chart.)

5) To draw a chart/graph for the given data, the data worksheet should be reorganised.

6) Draw a chart or variety of chart mixing up the options to be presented in the meeting.

..

30

.

Marking Scheme 2019-20
Accountancy (055)
67/4/2 Marks
Expected Answers/ Value Points
13 1 7 Q. When the business of the firm becomes illegal……

Ans. Compulsory dissolution 1 mark

12 2 6 Q. Income and Expenditure Account records……………..

Ans. (b)/ Income and Expenditure of Revenue nature only. 1 mark

11 3 5 Q. Tangible assets of the firm are…………………

Ans. (a)/ ₹10,00,000 1 mark

10 4 4 Q. Which of the following is not……………….

Ans. (b)/ Issuing partly paid up bonus shares to shareholders 1 mark

9 5 3 Q. Mohit, Shobhit and Rohit…………………………

Ans. Mohit ₹6,000 and Shobhit ₹3,000. 1 mark

8 6 2 Q. Avya, Divya and Kavya…………………………..

Ans. (d)/ 1 mark
Avya’s Capital A/c 10,000
To Kavya’s capital A/c 10,000

6 7 8 Q. Amla, Bimla and Kavita…………………….

Ans. (c)/ 6:5 1 mark

7 8 1 Q. Capital Reserve is created out of ………………

31

Ans. Capital Reserve is created out of capital profits. 1 mark

5 9 9 Q. Anita and Babita were partners…………………..

Ans. (a)/ 41:7:12 1 mark

4 10 10 Q. The following information has been……………..

Ans. (d)/ Both (b) and (c) 1 mark

3 11 11 Q. In the case of retirement……………..

Ans. (d)/ Have a choice to get either (i) or (ii) 1 mark

2 12 12 Q.___________ capital accounts always……..

Ans. Fixed Capital accounts always show a credit balance. 1 mark

1 13 13 Q. When a company plans to redeem………….

Ans. 25 1 mark

14 14 14 Q. On 31st March 2018 SS Ltd…………………………………

Ans.
SS Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Surplus i.e. balance in Statement of Profit and Loss Dr. 7,50,000
Mar 31 To Debenture Redemption Reserve A/c 7,50,000
(Debenture Redemption Reserve created out of 1 mark
profits)

Apr 1- Debenture Redemption Investments A/c Dr. 7,50,000
Apr30 To Bank A/c 7,50,000 ½ mark
(Debenture Redemption Investments purchased)

32

2019 Bank A/c Dr. 7,50,000
Mar.31 To Debenture Redemption Investments A/c 7,50,000 ½ mark
(Debenture Redemption Investments realised)

” 10% Debentures A/c Dr. 50,00,000
To Debenture holders A/c 50,00,000
( Amount payable to Debenture holders on ½ mark
redemption)

” Debenture holders A/c Dr. 50,00,000
To Bank A/c 50,00,000 ½ mark
( Payment made to Debenture holders)
=
” Debenture Redemption Reserve A/c Dr. 12,50,000 3 marks
To General Reserve A/c 12,50,000
(Proportionate amount of Debenture Redemption
Reserve transferred to General Reserve)

(No marks have been allotted to the transfer of Debenture Redemption Reserve to
General Reserve)

OR OR

Q. X Ltd. has 4,000 12% debentures……………………

X Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Debenture Interest A/c Dr. 24,000
Sep 30 To Debenture holders A/c 21,600
2,400 1 mark
To TDS Payable A/c
(Debenture Interest due to debenture holders,
TDS deducted @10%)

33

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400 ½

To Bank A/c 24,000 mark

(Payment made to Debenture holders and tax
deposited)

(Note: If an examinee has passed separate
entries for payment to Debenture holders
and tax deposited, full credit be given)

2019 Debenture Interest A/c Dr. 24,000
Mar 31 To Debenture holders A/c 21,600
To TDS Payable A/c 2,400 ½

(Debenture Interest due to debenture holders, mark

TDS @10%)

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400
To Bank A/c 24,000
(Payment made to Debenture holders and tax
deposited)
½
(Note: If an examinee has passed separate mark
entries for payment to Debenture holders
and tax deposited, full credit be given)

” Statement of Profit and Loss Dr. 48,000
½
To Debenture Interest A/c 48,000
mark

(Debenture Interest account transferred to
=
Statement of Profit and Loss)
3 marks

- 15 - Q. From the following information…………

34

Ans.

Dr. Stock of Sports Materials A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d 2,00,000 By Income and
To Cash- Cash Purchases 1,79,000 Expenditure A/c- Sports 2 marks
To Creditors –Credit Purchases 1,40,000 Materials consumed 2,69,000
By balance c/d 2,50,000
5,19,000 5,19,000
.
Dr. Creditors for Sports Materials A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d (advance) 70,000 By balance b/d (creditors) 3,50,000 2 marks

To Cash 2,40,000 By Purchases 1,40,000 =

To balance c/d (creditors) 2,90,000 By balance c/d (Advance) 1,10,000 4 marks

6,00,000 6,00,000

Alternatively:
Credit Purchases= Payment made to creditors+ closing Creditors – Opening Creditors –
Closing advance + Opening advance
= ₹2,40,000 + ₹2,90,000 – ₹3,50,000 - ₹1,10,000 + ₹70,000
= ₹1,40,000…………………………………………………….………2 marks

Sports materials consumed = Opening stock of Sports materials + Purchases – Closing
Stock of Sports materials
= ₹2,00,000 + (₹1,79,000 + 1,40,000) – ₹2,50,000
= ₹2,69,000………………………………2 marks

- 16 - Q. From the following Receipts and Payments………………

35

Ans.

Vandana Music Club

Dr. Income and Expenditure A/c for the year ended March 31, 2019 Cr.
Expenditure Amount Income… Amount
(₹) (₹)
To depreciation on Musical By Subscriptions 4,00,000
Instruments 7,000 Add subscriptions outstanding
50,000 4,50,000
To Honorarium 1,42,000
By Locker rent 30,000 ½x8
To Electricity bill 40,000 =
By Gain on sale of furniture 4,000 4 marks
To excess of income over
expenditure (surplus) 3,05,000 By Entrance Fees 10,000

4,94,000 4,94,000

16 17 16 Q. A and B are partners sharing profits and losses………………

Ans.

. JOURNAL
Date Particulars Dr. Cr.
Amount Amount 1 mark
(₹) (₹)
A’s capital A/c Dr. 140
To B’s capital A/c 140
(Omission of interest on capital, now rectified)

Working Notes:

36

Table showing adjustments
Partners Interest on Interest on Profits Net Effect
capital Cr. drawings Cr. Dr. Dr. Cr.
(₹) (₹) (₹) (₹) (₹)
A 10,000 4,500 14,640 140 - 2 marks
B 7,500 2,400 9,760 - 140
17,500 6,900 24,400 140 140

Note: if an examinee has calculated Net effect by any other method, full credit be
given.

Calculation of Interest on capital:

Calculation of Opening Capitals:

A (₹) B (₹)

Closing Capitals 1,65,500 1,27,600
Add Drawings 60,000 40,000
Add Interest on drawings 4,500 2,400
1 mark
Less Profits (30,000) (20,000)
Opening Capitals 2,00,000 1,50,000

Interest on Capital@5% p.a. 10,000 7,500
=

4 marks
Interest on Drawings:
A: 12/100 x ₹60,000 x 7.5/12 = ₹4,500
B: 12/100 x ₹40,000 x 6/12 = ₹2,400

OR
OR
Q. Arun, Shobha and Yuvraj were ……………………….

Ans.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)

37

Profit and Loss A/c Dr. 90,000
To Profit and Loss Appropriation A/c 90,000
(Profit transferred from Profit and Loss A/c to Profit and 1 mark
Loss Appropriation A/c)

Partner’s Salary A/c Dr. 60,000
To Arun’s Current A/c 20,000
To Shobha’s Current A/c 20,000
To Yuvraj’s Current A/c 20,000 ½ mark
(Salary credited to Partner’s Current Accounts)

Profit and Loss Appropriation A/c Dr. 60,000
To Partner’s Salary A/c 60,000
(Partner’s Salary transferred to Profit and Loss ½ mark
Appropriation A/c)

Interest on Capital A/c Dr. 20,000
To Arun’s Current A/c 10,000
To Shobha’s Current A/c 5,000
To Yuvraj’s Current A/c 5,000 ½ mark
(Interest on Capital credited to Partner’s Current Accounts)

Profit and Loss Appropriation A/c Dr. 20,000
To Interest on Capital A/c 20,000
(Interest on Capital transferred to Profit and Loss
Appropriation A/c) ½ mark

Profit and Loss Appropriation A/c Dr. 10,000
To Arun’s Current A/c 6,000
To Shobha’s Current A/c 2,000
To Yuvraj’s Current A/c 2,000 1 mark

(Divisible profit credited to Partner’s Current Accounts)
=
4 marks

- 18 - Q. Karim, Saleem amd Raheem……………….

38

Ans. Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2019
Oct.1 Saleem’s Capital A/c Dr. 60,000
Raheem’s Capital A/c 45,000
To Karim’s Capital A/c 1,05,000
(Deceased partner’s share of goodwill transferred to his
capital A/c)

” Profit and Loss Suspense A/c Dr. 22,500 1x4
To Karim’s Capital A/c 22,500 =
(Profit for the intervening period credited to Karim’s 4 marks
Capital A/c)

” Karim’s Capital A/c Dr. 7,35,000
To Karim’s Executors A/c 7,35,000
(Karim’s capital A/c transferred to his Executors A/c)

Oct.15 Karim’s Executors A/c Dr. 7,35,000
To Bank A/c 7,35,000
(Karim’s Executors paid the amount due to them)

(Note: If the examinee has raised goodwill, due credit should be given)

19 19 19 Q. Harish and Gopal were partners…………………………

39

Ans.
Dr. Realisation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Debtors 76,000 By Creditors 36,000
To Stock 2,00,000 By O/s expenses 10,000
To Furniture 20,000 By Gopal’s wife’s loan 50,000 1 mark
To Leasehold premises 1,00,000 for
transfer
of
To Gopal’s capital A/c By Bank A/c assets
Gopal’s wife’s loan 50,000 Leasehold premises1,50,000 +
Realisation expenses 10,000 60,000 1 Debtors 64,000 1 mark
Stock 1,84,000 3,98,000 1 for
To Bank A/c transfer
Creditors 16,200 of
Outstanding expenses 10,000 26,200 1 liabilities
+
To profit transferred to: (1 x 4)
Harish’s Capital A/c 7,080 =
Gopal’s capital A/c 4,720 11,800 1
6 marks

4,94,000 4,94,000

OR
OR

Q. Sudha, Naresh and Geeta were partners…………………

Ans.

40

Dr. Profit and Loss Appropriation A/c for the year ended 31st March 2019 Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Interest on capital: By Net Profit 7,00,000 1
Sudha’s Current A/c 54,000
Naresh’s Current A/c 36,000 By Interest on Drawings
Geeta’s Current A/c 18,000 1,08,000 1 Sudha’s Current A/c 9,000
Naresh’s Current A/c9,000
To Partner’s Salary: Geeta’s Current A/c 4,200 22,200 2
Sudha’s Current A/c 3,60,000
Naresh’s Current A/c 1,60,000 5,20,000 1 6 marks

To Profit transferred to:
Sudha’s Current A/c 47,100
Naresh’s Current A/c 28,260
Geeta’s Current A/c 18,840 94,200 1

7,22,200 7,22,200

Net Profit 7,06,750
Less Interest on Geeta’s Loan 6,750
7,00,000

- 20 - Q. Pass necessary journal entries…………….

Ans.
Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
(i) Bank A/c Dr. 1,80,000
To Debenture Application and Allotment A/c 1,80,000
(Application money received on 2,000 9%
Debentures)

41

Debenture Application and Allotment A/c Dr. 1,80,000
Loss on issue of Debentures A/c Dr. 50,000
To 9% Debentures 2,00,000 1x6
To Premium on redemption of debentures A/c 30,000 =
(Allotment of 9% debentures at a discount,
redeemable at a premium) 6
marks
or

Debenture Application and Allotment A/c Dr. 1,80,000
Discount on issue of Debentures A/c Dr. 20,000
Loss on issue of Debentures A/c Dr. 30,000
To 9% Debentures 2,00,000
To Premium on redemption of debentures A/c 30,000
(Allotment of 9% debentures at a discount,
redeemable at a premium)

(ii) Bank A/c Dr. 4,20,000
To Debenture Application and Allotment A/c 4,20,000
(Application money received on 4,000 9%
Debentures)

Debenture Application and Allotment A/c Dr. 4,20,000
Loss on issue of Debentures A/c Dr. 40,000
To 9% Debentures 4,00,000
To Securities Premium Reserve A/c 20,000
To Premium on redemption of debentures A/c 40,000
(Allotment of 9% debentures at a premium.,
redeemable at a premium)

(iii) Bank A/c Dr. 10,00,000
To Debenture Application and Allotment A/c 10,00,000
(Application money received on 10,000 9%
Debentures)

42

Debenture Application and Allotment A/c Dr. 10,00,000
Loss on issue of Debentures A/c Dr. 1,25,000
To 9% Debentures 10,00,000
To Premium on redemption of debentures A/c 1,25,000
(Allotment of 9% debentures at par, redeemable at a
premium)

.
22 21 22 Q. Raman and Aman…..
Ans.
Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 2,20,000
To Suman’s Capital A/c 2,00,000
To Premium for goodwill A/c 20,000 1 mark
(Capital and premium for goodwill brought in by Suman)

Premium for goodwill A/c Dr. 20,000
To Raman’s Capital A/c Dr. 15,000
To Aman’s Capital A/c 5,000
(Premium for goodwill credited to the capital accounts of 1 mark
old partners in the sacrificing ratio)

Outstanding Expenses A/c Dr. 18,000
To Bank A/c 18,000
(Outstanding expenses paid off) 1 mark

Bad debts A/c Dr. 5,000
To Debtors A/c 5,000
(Bad debts written off) ½ mark

Provision for bad debts A/c Dr 5,000
To Bad Debts A/c 5,000
(Bad debts adjusted from the provision) ½ mark

43

Revaluation A/c Dr. 2,500
To Provision for bad debts A/c 2,500
(Provision for bad debts created) 1 mark

Workmen’s Compensation Reserve A/c Dr. 55,000
Revaluation A/c Dr. 5,000
To Workmen’s Compensation claim A/c 60,000 1 mark
(Workmen’s compensation claim recorded)

Revaluation A/c Dr. 72,000
To Machinery A/c 18,000
To Land and Building A/c 54,000
(Machinery and Land and building depreciated) 1 mark

Raman’s Capital A/c Dr. 59,625
Aman’s Capital A/c Dr. 19,875
To Revaluation A/c 79,500
(Loss on Revaluation debited to old partners in the old 1 mark
ratio) =
8 marks
Note 1: In case an examinee has given a combined entry for bad debts and provision,
full credit be given.
Note 2: if an examinee has raised and written off the goodwill, full credit be given.

OR OR
Q. A, B and C were partners in a firm…………………….
Ans.
Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Provision for doubtful debts 3,100 By Land and Building 12,000
To Furniture 8,000
To Profit transferred to:
A’s Capital A/c 300
B’s Capital A/c 300
C’s Capital A/c 300 900
12,000 12,000 3 marks

44

Dr. Partners Capital Accounts Cr.
Particulars A B C Particulars A B C
(₹) (₹) (₹) (₹) (₹) (₹)
To B’s Capital 10,000 - - By balance b/d 60,000 40,000 32,000
1 mark
A/c
By General Reserve 10,000 10,000 10,000 for each
To Bank A/c - 20,000 - capital
By A Capital A/c (goodwill) - 10,000 - A/c
To B’s loan - 41,800 -
=
By Workmen’s Compensation
1x3
To balance c/d 61,800 - 43,800 Reserve 1,500 1,500 1,500
=
By Revaluation A/c 300 300 300 3 marks
71,800 61,800 43,800 71,800 61,800 43,800

Dr. Bank A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d 20,000 By B’s Capital A/c 20,000

To Furniture 20,000 By Balance c/d 20,000 2 marks

40,000 40,000
. =
(No marks are to be deducted for the cumulative effect of any transaction) 3+3+2
=
8 marks
21 22 21 Q. Zee Ltd. invited………………

Ans.

45

Zee Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Application money received on 6,00,000 shares) ½ mark

Equity Share Application A/c Dr. 24,00,000
To Equity Share Capital A/c 6,80,000
To Securities Premium Reserve A/c 6,80,000
To Equity Share Allotment A/c 3,20,000 1 mark
To Bank A/c 7,20,000
(Application money adjusted towards capital, share
allotment, premium and excess refunded)

Equity Share Allotment A/c Dr. 17,00,000
To Equity Share Capital A/c 10,20,000
To Securities Premium Reserve A/c 6,80,000 ½ mark

(Allotment money due including premium)

Bank A/c Dr. 14,20,800
To Equity Share Allotment A/c 13,80,000
To Calls in Advance 40,800
(Allotment money received except on 1,700 shares and
advance received of first and final call)

or
1 mark

Bank A/c Dr. 14,13,900
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c 13,80,000
To Calls in Advance A/c 40,800
(Allotment money received except on 1,700 shares)

46

Alternate entry:
Bank A/c Dr. 13,73,100
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c 13,80,000
(Allotment money received)

Equity Share Capital A/c Dr. 8,500
Securities Premium Reserve A/c Dr. 3,400
To Share Forfeiture A/c 5,000
To Equity Share Allotment A/c 6,900
(Yamini’s shares forfeited for non payment of allotment
money)

Alternatively: 1 mark
Equity Share Capital A/c Dr. 8,500
Securities Premium Reserve A/c Dr. 3,400
To Share Forfeiture A/c 5,000
To Calls in arrears A/c 6,000
(Yamini’s shares forfeited for non payment of allotment
money)

Equity Share First and Final call A/c Dr. 20,29,800
To Equity Share Capital A/c 16,91,500
To Securities Premium Reserve A/c 3,38,300 1 mark
(Share First and final call due)

Bank A/c Dr. 19,89,000
Calls in advance A/c Dr. 40,800
To Equity Share First and Final call A/c 20,29,800
(First and final call money received except on 6,800
shares)

Alternate entry: 1 mark

Bank A/c Dr. 20,29,800
To Equity Share First and Final call A/c 20,29,800
(First and final call money received except on 6,800
shares)
47

Bank A/c Dr. 6,800
Share Forfeiture A/c Dr. 1,700
To Equity Share Capital A/c 8,500 1 mark
(Shares reissued for ₹8 per share fully paid)

Share Forfeiture A/c Dr. 800
To Capital Reserve A/c 800 1 mark
(Gain on reissue of forfeited shares transferred to capital =
reserve) 8 marks

OR OR

Q. K.N. Ltd. invited………………………………..
Ans.

K.N. Ltd.
Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application and Allotment A/c 24,00,000
(Application money received on 8,00,000 shares) ½ mark

Equity Share Application and Allotment A/c Dr. 24,00,000
To Equity Share Capital A/c 18,00,000
To Calls in Advance A/c 4,50,000
To Bank A/c 1,50,000 1 mark

(Shares allotted and excess application money adjusted
on call, balance refunded)

48

Equity Share First Call A/c Dr. 24,00,000
To Equity Share Capital A/c 24,00,000 1 mark
(Share first call money due)

Bank A/c Dr. 19,32,000
Calls in Advance A/c Dr. 4,50,000
Calls in arrears A/c Dr. 18,000 1 mark
To Equity Share First Call A/c 24,00,000
(Share first call money received)

Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Equity Share First Call A/c 18,000
(Rakesh’s shares forfeited for non payment of first call)

or 1 mark
Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Calls in arrears A/c 18,000
(Rakesh’s shares forfeited for non payment of first call)

Bank A/c Dr. 78,000
To Equity Share Capital A/c 60,000
To Securities premium Reserve A/c 18,000 1 mark
(Shares reissued for ₹13 per share fully paid)

Share Forfeiture A/c Dr. 24,000
To Capital Reserve A/c 24,000
(Gain on reissue of forfeited shares transferred to capital 1 mark

reserve)

Equity Share Second and Final Call A/c Dr. 35,64,000
To Equity Share Capital A/c 17,82,000
To Securities premium Reserve A/c 17,82,000 ½ mark

(Share Second and Final call money due including
premium)

49

Bank A/c Dr. 35,64,000
To Equity Share Second and Final Call A/c 35,64,000 1 mark
(Share second and final call money received)
=
. 8 marks
PART B
OPTION 1
Analysis of Financial Statements
- 23 - Q. The quick ratio of a company………….. ½ mark
+
Ans. Decrease ½
mark
Reason: Current liabilities will increase with no change in quick assets. =
1 mark
24 24 24 Q. Employee benefit expenses………….

Ans. Bonus 1 mark

- 25 - Q. Which of the following…………………..

Ans. (c)/ Inter firm comparison 1 mark

27 26 27 Q. Interest received in cash……………..

Ans. Investing 1 mark

26 27 - Q. Under which of the following…………

Ans. (a)/ Current Liabilities 1 mark

- 28 - Q. List any two items…………………
½ mark
Ans. Any two of the following: +
(i) Income received in advance ½
(ii) Unpaid dividend mark
(iii) Calls in advance =
(iv) Outstanding expenses 1 mark
(or any other correct item)

50

29 29 29 Q. While preparing cash flow statement………….
½ mark
Ans. No Flow +
½ mark
Reason: There is no change in cash and cash equivalents =
1 mark
- 30 - Q. From the following information………………….

Ans. Trade Receivables Turnover Ratio = Credit Revenue from operations/ Average Trade
Receivables……………………………………………………………………………1/2

Average Trade Receivables = Average Debtors + Average Bills receivable
= ₹79,000 + ₹2,21,000
= ₹3,00,000……………………..………………………1/2
3 marks

Trade Receivables Turnover Ratio = ₹15,00,000/ ₹3,00,000
= 5 times………………………………………1/2

Trade Payables Turnover Ratio = Credit Purchases/ Average Trade Payables………1/2

Average Trade Payables = Average Creditors + Average Bills Payable
= ₹2,00,000 + ₹87,000
= ₹2,87,000

Trade Payables Turnover Ratio = ₹11,48,000/ ₹2,87,000……………………..……1/2
= 4 times……………………………………………1/2

31 31 31 Q. Fill in the amounts……………

Ans.

51

Common Size Statement of Profit and Loss
For the year ended 31st March 2019
Absolute Change % of Revenue
Particulars from Operations
2017-18 (₹) 2018-19 (₹) 2017-18 2018-19
I. Revenue from Operations 20,00,000 25,00,000 100 100 ½ mark

II. Other Income 1,00,000 2,50,000 5 10 ½ mark

III. Total Revenue 21,00,000 27,50,000 105 110
IV. Expenses
½ mark
(a) Cost of materials consumed 6,00,000 8,00,000 30 32
½ mark
(b) Change in Inventory 1,00,000 2,00,000 5 8
½ mark
(c) Employee benefit expenses 3,00,000 4,50,000 15 18
½ mark
(d) Other Expenses 2,00,000 2,25,000 10 9
Total Expenses 12,00,000 16,75,000 60 67
½ mark
V. Profit before Tax (III-IV) 9,00,000 10,75,000 45 43
Less: Tax 2,00,000 2,50,000 10 10
½ mark
7,00,000 8,25,000 35 33 =
4 marks
(Note: ½ mark has been allotted for each missing figure)

OR
OR

Q. From the following Statement………….

52

Comparative Statement of Profit and Loss
for the years ended 31st March 2018 and 31st March 2019

Particulars 2017-18 2018-19 Absolute Percentage
(₹) (₹) Increase/ Increase/
Decrease Decrease
(₹) (%) ½ mark

I. Revenue from operations 20,00,000 45,00,000 25,00,000 25
½ mark

II. Total Revenue 20,00,000 45,00,000 25,00,000 25

III. Expenses ½ mark
½ mark

Employee benefit expenses 8,00,000 10,00,000 2,00,000 25
2,00,000 5,00,000 3,00,000 150
Other expenses ½ mark

IV. Total expenses 10,00,000 15,00,000 5,00,000 50 ½ mark

V. Profit before Tax 10,00,000 30,00,000 20,00,000 200 ½ mark

VI. Less Tax 3,00,000 9,00,000 6,00,000 200 ½ mark
=
VII. Profit after Tax 7,00,000 21,00,000 14,00,000 200 4 marks

32 32 32 Q. From the following Balance Sheet……………….

Ans.

53

Cash Flow Statement of Gopal Ltd. for the year ended 31st March 2019
Particulars Details(₹) Amount (₹)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit before Tax 6,75,000
Adjustment for non cash and non operating items
Add
Interest on debentures 1,08,000
Depreciation 2,00,000
Goodwill written off 12,000
Operating profit before Working capital changes 9,95,000
Less Increase in Inventory (1,24,000) 2½
Cash from operations 8,71,000 marks
Less Tax paid (1,50,000)

Cash Inflows from Operating activities 7,21,000

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Plant and Machinery (7,58,000)
Purchase of Investments (55,000) 1 mark
Cash used in Investing activities (8,13,000)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash Inflows from Financing activities 2,32,000 1 mark

Net increase in Cash and Cash equivalents 1,40,000 -

Add Opening balance of Cash and Cash equivalents
Current Investments 1,20,000
Cash and Cash equivalents 1,20,000 2,40,000
Closing balance of Cash and Cash equivalents ½ mark
Current Investments 2,00,000
Cash and Cash equivalents 1,80,000 3,80,000

Working Notes:
54

Calculation of Net Profit before Tax:
Net Profit 5,00,000
Add Provision for Tax 1,75,000 ½ mark
6,75,000

Dr. Provision for Tax A/c Cr.
Particulars ` Particulars `
To Cash A/c 1,50,000 By Balance b/d 1,75,000

To Balance c/d 2,00,000 By Statement of P & L – 1,75,000 ½ mark
Provision made

3,50,000 3,50,000 =

6 marks

PART B
OPTION II
Computerised Accounting
- 23 - Q. Name the accounting information……………
1 mark
Ans. (b) Sales and accounts receivable sub-system

- 24 - Q. A spreadsheet is used to…………………………
1 mark
Ans. A spreadsheet is used to record, calculate and compare numerical or financial data.

23 25 28 Q. The process of comparing……………
1 mark
Ans. (c) / Data validation

24 26 29 Q. A _______ attribute can be ……………… ½ mark
+
Ans. A composite attribute can be divided into smaller sub-parts but a simple attribute ½ mark
cannot be further sub divided. =
1 mark

55

28 27 24 Q. Hardware refers to…………………
1 mark
Ans. (b)/ Computer associated peripherals and their network

26 28 - Q. Match the movement of mouse………………….
1 mark
Ans. (a) Down arrow key (ê)

27 29 25 Q. ________ prompts the user…………………………..
1 mark
Ans. Parameter query

30 30 30 Q. State any three features…………….

Ans. Following are the features of good accounting software (Any three):

(a) Do all basic accounting functions
(b) Manage your stored data and stores 1x3
(c) Do the job for costing =
(d) Manage payroll 3 marks
(e) Get many MIS (Management information system)
(f) File tax return
(g) Maintain budget etc
(h) Calculate interest pending amounts
(i) Manage data over different locations and synchronize it and many more other features.

OR OR

Q. Name the function of excel…………………

Ans. The name of the function is ‘TEXT’
3 marks
Its syntax is
TEXT ( value, format _ text)
Value - numeric value which, evaluates a numeric value or referenced cell containing
numeric value.
Formal Text – is a numeric format as a text string enclosed in quotation mark.

- 31 - Q. Explain the elements to be considered……………….
56

Ans. Elements considered while calculating ‘deductions’ for current payroll period are :

1) PT, professional tax applicable in the state.
1x4
2) TDS- Tax deduction at source which is a statutory deduction and deducted towards
=
monthly income liability.
4 marks
3) Recovery of loan instalment if taken up by employee.

4) Any other deduction e.g. advance against salary or festival advance etc.
OR
OR

Q. Show with the help of a flowchart…………………

Ans.
Transactions and inputs that are processed through accounting software to generate the
following reports.
• Day books/ Journal
• Ledger
• Trail Balance
• Balance Sheet 4 marks
• Profit & Loss A/c

Input Data Accounting Accessed Information
transaction Entry application queries Displayed or
software printed

Accounting
Transaction

32 32 32 Q. A Ltd. wants to enter their sales………………

Ans. The basic steps to prepare a presentation to present sales related data are:

1) Collect data from various departments, heads/division for each quarter.

2) The data to be entered on excel sheet for different quarters before the product in 1x6
consideration.
=
3) Total sale for all the product and single product for all different quarters be calculated by
summing up rows and columns. 6 marks

4) Select to plot product wise total sales. Into a chart by selecting chart type (use insert tab

57

and click on chart.)

5) To draw a chart/graph for the given data, the data worksheet should be reorganised.

6) Draw a chart or variety of chart mixing up the options to be presented in the meeting.

..

58

Marking Scheme 2019-20
Accountancy (055)
67/4/3 Marks
Expected Answers/ Value Points

7 8 1 Q. Capital Reserve is created out of ………………

Ans. Capital Reserve is created out of capital profits. 1 mark

8 6 2 Q. Avya, Divya and Kavya…………………………..

Ans. (d)/
Avya’s Capital A/c 10,000 1 mark
To Kavya’s capital A/c 10,000

9 5 3 Q. Mohit, Shobhit and Rohit…………………………

Ans. Mohit ₹6,000 and Shobhit ₹3,000. 1 mark

10 4 4 Q. Which of the following is not……………….

Ans. (b)/ Issuing partly paid up bonus shares to shareholders 1 mark

11 3 5 Q. Tangible assets of the firm are…………………

Ans. (a)/ ₹10,00,000 1 mark

12 2 6 Q. Income and Expenditure Account records……………..

Ans. (b)/ Income and Expenditure of Revenue nature only. 1 mark

13 1 7 Q. When the business of the firm becomes illegal……

Ans. Compulsory dissolution 1 mark

59

6 7 8 Q. Amla, Bimla and Kavita…………………….

Ans. (c)/ 6:5 1 mark

5 9 9 Q. Anita and Babita were partners…………………..

Ans. (a)/ 41:7:12 1 mark

4 10 10 Q. The following information has been……………..

Ans. (d)/ Both (b) and (c) 1 mark

3 11 11 Q. In the case of retirement……………..

Ans. (d)/ Have a choice to get either (i) or (ii) 1 mark

2 12 12 Q.___________ capital accounts always……..

Ans. Fixed Capital accounts always show a credit balance. 1 mark

1 13 13 Q. When a company plans to redeem………….

Ans. 25 1 mark

14 14 14 Q. On 31st March 2018 SS Ltd…………………………………

Ans.
SS Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Surplus i.e. balance in Statement of Profit and Loss Dr. 7,50,000
Mar 31 To Debenture Redemption Reserve A/c 7,50,000
(Debenture Redemption Reserve created out of 1 mark
profits)

60

Apr 1- Debenture Redemption Investments A/c Dr. 7,50,000
Apr30 To Bank A/c 7,50,000
(Debenture Redemption Investments purchased) ½ mark

2019 Bank A/c Dr. 7,50,000
Mar.31 To Debenture Redemption Investments A/c 7,50,000
(Debenture Redemption Investments realised) ½ mark

” 10% Debentures A/c Dr. 50,00,000
To Debenture holders A/c 50,00,000
( Amount payable to Debenture holders on ½ mark
redemption)

” Debenture holders A/c Dr. 50,00,000
To Bank A/c 50,00,000 ½ mark
(Payment made to Debenture holders)

” Debenture Redemption Reserve A/c Dr. 12,50,000 =

To General Reserve A/c 12,50,000 3 marks
(Proportionate amount of Debenture Redemption
Reserve transferred to General Reserve)

(No marks have been allotted for transfer of Debenture Redemption Reserve to
General Reserve)

OR OR

Q. X Ltd. has 4,000 12% debentures……………………

X Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2018 Debenture Interest A/c Dr. 24,000
Sep 30 To Debenture holders A/c 21,600
2,400 1 mark
To TDS Payable A/c
(Debenture Interest due to debenture holders,

61

TDS deducted @10%)

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400
To Bank A/c 24,000
½
(Payment made to Debenture holders and tax
mark
deposited)

(Note: If an examinee has passed separate
entries for payment to Debenture holders
and tax deposited, full credit be given)

2019 Debenture Interest A/c Dr. 24,000
Mar 31 To Debenture holders A/c 21,600
2,400 ½
To TDS Payable A/c
mark
(Debenture Interest due to debenture holders,
TDS @10%)

” Debenture holders A/c Dr. 21,600
TDS Payable A/c Dr. 2,400
To Bank A/c 24,000
(Payment made to Debenture holders and tax
deposited)
½

(Note: If an examinee has passed separate mark

entries for payment to Debenture holders
and tax deposited, full credit be given)

” Statement of Profit and Loss Dr. 48,000
To Debenture Interest A/c 48,000 ½
mark
(Debenture Interest account transferred to
Statement of Profit and Loss) =
3 marks

62

- - 15 Q. From the following information……………………

Ans.

Dr. Stock of Medicines A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d 3,87,000 By Income and 2 marks
To Cash- Cash Purchases 9,33,000 Expenditure A/c-
To Creditors –Credit Purchases 19,67,400 Medicines consumed 28,08,400
By balance c/d 4,79,000
32,87,400 32,87,400
.
Dr. Creditors for Medicines A/c Cr.
Particulars Amount Particulars……………….. Amount
(₹) (₹)
To balance b/d (advance) 1,40,700 By balance b/d (creditors) 6,77,000 2 marks

To Cash 17,00,000 By Purchases 19,67,400 =

To balance c/d (creditors) 9,83,000 By balance c/d (Advance) 1,79,300 4 marks

28,23,700 28,23,700

Alternatively:
Credit Purchases= Payment made to creditors+ closing Creditors – Opening Creditors –
Closing advance + Opening advance
= ₹17,00,000 + ₹9,83,000 – ₹6,77,000 + ₹1,40,700 - ₹1,79,300
= ₹19,67,400…………………………………………………………2 marks

Medicines consumed = Opening stock of Medicines + Purchases – Closing Stock of
Medicines
= ₹3,87,000 + (₹9,33,000 + ₹19,67,400) – ₹4,79,000
= ₹28,08,400…………………………..2 marks

16 17 16 Q. A and B are partners sharing profits and losses………………

63

Ans.
. JOURNAL
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹) 1 mark
A’s capital A/c Dr. 140
To B’s capital A/c 140
(Omission of interest on capital, now rectified)

Working Notes:

Table showing adjustments
Partners Interest on Interest on Profits Net Effect
capital Cr. drawings Cr. Dr. Dr. Cr.
(₹) (₹) (₹) (₹) (₹) 2 marks

A 10,000 4,500 14,640 140 -
B 7,500 2,400 9,760 - 140
17,500 6,900 24,400 140 140

Note: if an examinee has calculated Net effect by any other method, full credit be
given.

Calculation of Interest on capital:

Calculation of Opening Capitals:

A (₹) B (₹)

Closing Capitals 1,65,500 1,27,600
Add Drawings 60,000 40,000
Add Interest on drawings 4,500 2,400
1 mark
Less Profits (30,000) (20,000)
Opening Capitals 2,00,000 1,50,000

Interest on Capital@5% p.a. 10,000 7,500
=

4 marks

64

Interest on Drawings:
A: 12/100 x ₹60,000 x 7.5/12 = ₹4,500
B: 12/100 x ₹40,000 x 6/12 = ₹2,400

OR OR

Q. Arun, Shobha and Yuvraj were ……………………….

Journal

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Profit and Loss A/c Dr. 90,000
To Profit and Loss Appropriation A/c 90,000
(Profit transferred from Profit and Loss A/c to Profit and 1 mark

Loss Appropriation A/c)

Partner’s Salary A/c Dr. 60,000
To Arun’s Current A/c 20,000
To Shobha’s Current A/c 20,000
To Yuvraj’s Current A/c 20,000 ½ mark

(Salary credited to Partner’s Current Accounts)
Profit and Loss Appropriation A/c Dr. 60,000
To Partner’s Salary A/c 60,000
(Partner’s Salary transferred to Profit and Loss
Appropriation A/c) ½ mark

Interest on Capital A/c Dr. 20,000
To Arun’s Current A/c 10,000
To Shobha’s Current A/c 5,000
To Yuvraj’s Current A/c 5,000 ½ mark

(Interest on Capital credited to Partner’s Current Accounts)

Profit and Loss Appropriation A/c Dr. 20,000
½ mark
To Interest on Capital A/c 20,000
(Interest on Capital transferred to Profit and Loss
Appropriation A/c)

65

Profit and Loss Appropriation A/c Dr. 10,000
To Arun’s Current A/c 6,000
To Shobha’s Current A/c 2,000 1 mark
To Yuvraj’s Current A/c 2,000
(Divisible profit credited to Partner’s Current Accounts) =
4 marks

- - 17 Q. From the following Receipts and Payments Account…………………

Ans.

Jai Bharat Music Club

Dr. Income and Expenditure A/c for the year ended March 31, 2019 Cr.

Expenditure Amount Income… Amount
(₹) (₹)
To Depreciation on Musical By Subscriptions 1,00,000
Instruments 1,000 Add subscriptions outstanding ½x8
50,000 1,50,000 =
To Honorarium 35,500 4 marks
By Locker rent 4,000
To Electricity bill 10,000
By Gain on sale of old furniture 2,500
To excess of income over
expenditure (surplus) 1,12,500 By Admission Fee 2,500

1,59,000 1,59,000

- - 18 Q. Satnam, Harnam and Gurunam………………….

66

Ans. Journal of Satnam, Harnam and Gurunam
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
2019
July 1 Satnam’s Capital A/c Dr. 10,625
Gurunam’s Capital A/c 6,375
To Harnam’s Capital A/c 17,000

(Deceased partner’s share of goodwill transferred to his 1x4
capital A/c) =
4 marks
” Profit and Loss Suspense A/c Dr. 57,000
To Harnam’s Capital A/c 57,000

(Share of Profit till date of death credited to Harnam’s
Capital A/c)

” Harnam’s Capital A/c Dr. 3,40,000
To Harnam’s Executors A/c 3,40,000

(Harnam’s capital A/c transferred to his Executors A/c)

July Harnam’s Executors A/c Dr. 3,40,000
15 To Bank A/c 3,40,000

(Harnam’s Executors paid the amount due to them)

(Note: if an examinee has raised the goodwill, full credit be given)

19 19 19 Q. Harish and Gopal were partners…………………………

67

Ans.

Dr. Realisation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Debtors 76,000 By Creditors 36,000
To Stock 2,00,000 By O/s expenses 10,000
To Furniture 20,000 By Gopal’s wife’s loan 50,000 1 mark
To Leasehold premises 1,00,000 for
transfer
of
To Gopal’s capital A/c By Bank A/c assets
Gopal’s wife’s loan 50,000 Leasehold premises1,50,000 +
Realisation expenses 10,000 60,000 1 Debtors 64,000 1 mark
Stock 1,84,000 3,98,000 1 for
transfer
To Bank A/c of
Creditors 16,200 liabilities
Outstanding expenses 10,000 26,200 1 +
(1 x 4)
=
To profit transferred to:
Harish’s Capital A/c 7,080 6 marks
Gopal’s capital A/c 4,720 11,800 1

4,94,000 4,94,000

OR
OR

Q. Sudha, Naresh and Geeta were partners…………………

Ans.

68

Dr. Profit and Loss Appropriation A/c for the year ended 31st March 2019 Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Interest on capital: By Net Profit 7,00,000 1
Sudha’s Current A/c 54,000
Naresh’s Current A/c 36,000 By Interest on Drawings
Geeta’s Current A/c 18,000 1,08,000 1 Sudha’s Current A/c 9,000
Naresh’s Current A/c 9,000
To Partner’s Salary: Geeta’s Current A/c 4,200 22,200 2 6 marks
Sudha’s Current A/c 3,60,000
Naresh’s Current A/c 1,60,000 5,20,000 1

To Profit transferred to:
Sudha’s Current A/c 47,100
Naresh’s Current A/c 28,260
Geeta’s Current A/c 18,840 94,200 1

7,22,200 7,22,200

Net Profit 7,06,750
Less Interest on Geeta’s Loan 6,750
7,00,000

- - 20 Q. Pass necessary journal entries………………

Ans.

69

Journal of New India Ltd.

Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
(i) Bank A/c Dr. 47,000
To Debenture Application and Allotment A/c 47,000
(Application money received on 500 9% Debentures)

Debenture Application and Allotment A/c Dr. 47,000
Loss on issue of Debentures A/c Dr. 5,500
To 9% Debentures A/c 50,000 1x6
To Premium on redemption of debentures A/c 2,500 =
(Allotment of 9% debentures at a discount,
redeemable at a premium) 6
or marks

Debenture Application and Allotment A/c Dr.
Discount on issue of Debentures A/c Dr. 47,000
Loss on issue of Debentures A/c Dr. 3,000
To 9% Debentures A/c 2,500
To Premium on redemption of debentures A/c 50,000
(Allotment of 9% debentures at a discount, 2,500
redeemable at a premium)

(ii) Bank A/c Dr. 16,50,000
To Debenture Application and Allotment A/c 16,50,000
(Application money received on 15,000 9%
Debentures)

Debenture Application and Allotment A/c Dr. 16,50,000
Loss on issue of Debentures A/c Dr. 75,000
To 9% Debentures A/c 15,00,000
To Securities Premium Reserve A/c 1,50,000
To Premium on redemption of debentures A/c 75,000
(Allotment of 9% debentures at a premium,
redeemable at a premium

70

(iii) Bank A/c Dr. 75,00,000
To Debenture Application and Allotment A/c 75,00,000
(Application money received on 75,000 9%
Debentures)

Debenture Application and Allotment A/c Dr. 75,00,000
Loss on issue of Debentures A/c Dr. 3,75,000
To 9% Debentures A/c 75,00,000
To Premium on redemption of debentures A/c 3.75,000
(Allotment of 9% debentures at par, redeemable at a
premium)

21 22 21 Q. Zee Ltd. invited………………

Ans.
Zee Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Application money received on 6,00,000 shares) ½ mark

Equity Share Application A/c Dr. 24,00,000
To Equity Share Capital A/c 6,80,000
To Securities Premium Reserve A/c 6,80,000 1 mark
To Equity Share Allotment A/c 3,20,000
To Bank A/c 7,20,000
(Application money adjusted towards capital, share
allotment, premium and excess refunded)

Equity Share Allotment A/c Dr. 17,00,000
To Equity Share Capital A/c 10,20,000 ½ mark

To Securities Premium Reserve A/c 6,80,000
(Allotment money due including premium)

71

Bank A/c Dr. 14,20,800
To Equity Share Allotment A/c 13,80,000
To Calls in Advance 40,800
(Allotment money received except on 1,700 shares and
advance received of first and final call)

or

Bank A/c Dr. 14,13,900 1 mark
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c
To Calls in Advance A/c 13,80,000
(Allotment money received except on 1,700 shares) 40,800

Alternate entry:
Bank A/c Dr. 13,73,100
Calls in arrears A/c Dr. 6,900
To Equity Share Allotment A/c 13,80,000

(Allotment money received)

Equity Share Capital A/c Dr. 8,500
Securities Premium Reserve A/c Dr. 3,400
To Share Forfeiture A/c 5,000
To Equity Share Allotment A/c 6,900

(Yamini’s shares forfeited for non payment of allotment
money)
1 mark
Alternatively: 8,500
3,400
Equity Share Capital A/c Dr. 5,000
Securities Premium Reserve A/c Dr. 6,000
To Share Forfeiture A/c
To Calls in arrears A/c
(Yamini’s shares forfeited for non payment of allotment
money)
72

Equity Share First and Final call A/c Dr. 20,29,800
To Equity Share Capital A/c 16,91,500
To Securities Premium Reserve A/c 3,38,300 1 mark
( Share First and final call due)

Bank A/c Dr. 19,89,000
Calls in advance A/c Dr. 40,800
To Equity Share First and Final call A/c 20,29,800
(First and final call money received except on 6,800
shares)
1 mark
Alternate entry: 20,29,800
Bank A/c Dr. 20,29,800
To Equity Share First and Final call A/c
(First and final call money received except on 6,800
shares)
Bank A/c Dr. 6,800
Share Forfeiture A/c Dr. 1,700
To Equity Share Capital A/c 8,500 1 mark
(Shares reissued for ₹8 per share fully paid)

Share Forfeiture A/c Dr. 800
To Capital Reserve A/c 800 1 mark

(Gain on reissue of forfeited shares transferred to capital =

reserve) 8 marks

OR OR

Q. K.N. Ltd. invited………………………………..

73

K.N. Ltd.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 24,00,000
To Equity Share Application and Allotment A/c 24,00,000 ½ mark
(Application money received on 8,00,000 shares)

Equity Share Application and Allotment A/c Dr. 24,00,000
To Equity Share Capital A/c 18,00,000
To Calls in Advance A/c 4,50,000
To Bank A/c 1,50,000 1 mark
(Shares allotted and excess application money adjusted
on call, balance refunded)

Equity Share First Call A/c Dr. 24,00,000
To Equity Share Capital A/c 24,00,000 1 mark

(Share first call money due)

Bank A/c Dr. 19,32,000
Calls in Advance A/c Dr. 4,50,000
Calls in arrears A/c Dr. 18,000 1 mark

To Equity Share First Call A/c 24,00,000
(Share first call money received)

Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Equity Share First Call A/c 18,000
(Rakesh’s shares forfeited for non payment of first call) 1 mark

or
Equity Share Capital A/c Dr. 42,000
To Share Forfeiture A/c 24,000
To Calls in arrears A/c 18,000
(Rakesh’s shares forfeited for non payment of first call)

74

Bank A/c Dr. 78,000
To Equity Share Capital A/c 60,000 1 mark
To Securities premium Reserve A/c 18,000
(Shares reissued for ₹13 per share fully paid)

Share Forfeiture A/c Dr. 24,000
To Capital Reserve A/c 24,000 1 mark
(Gain on reissue of forfeited shares transferred to capital
reserve)

Equity Share Second and Final Call A/c Dr. 35,64,000
To Equity Share Capital A/c 17,82,000
To Securities premium Reserve A/c 17,82,000 ½ mark
(Share Second and Final call money due including
premium)

Bank A/c Dr. 35,64,000
To Equity Share Second and Final Call A/c 35,64,000
(Share second and final call money received) 1 mark

. =
8 marks
22 21 22 Q. Raman and Aman…..
Ans.
Journal
Date Particulars Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. 2,20,000
To Suman’s Capital A/c 2,00,000
To Premium for goodwill A/c 20,000 1 mark
(Capital and premium for goodwill brought in by Suman)

Premium for goodwill A/c Dr. 20,000
To Raman’s Capital A/c Dr. 15,000
To Aman’s Capital A/c 5,000
(Premium for goodwill credited to the capital accounts of 1 mark
old partners in the sacrificing ratio)

75

Outstanding Expenses A/c Dr. 18,000
To Bank A/c 18,000
(Outstanding expenses paid off) 1 mark

Bad debts A/c Dr. 5,000
To Debtors A/c 5,000
(Bad debts written off) ½ mark

Provision for bad debts A/c Dr 5,000
To Bad Debts A/c 5,000
(Bad debts adjusted from the provision) ½ mark

Revaluation A/c Dr. 2,500
To Provision for bad debts A/c 2,500
(Provision for bad debts created) 1 mark

Workmen’s Compensation Reserve A/c Dr. 55,000
Revaluation A/c Dr. 5,000
To Workmen’s Compensation claim A/c 60,000
(Workmen’s compensation claim recorded) 1 mark

Revaluation A/c Dr. 72,000
To Machinery A/c 18,000
To Land and Building A/c 54,000 1 mark

(Machinery and Land and building depreciated)

Raman’s Capital A/c Dr. 59,625
Aman’s Capital A/c Dr. 19,875
To Revaluation A/c 79,500 1 mark

(Loss on Revaluation debited to old partners in the old =

ratio) 8 marks

Note 1: In case an examinee has given a combined entry for bad debts and provision,
full credit be given.
Note 2: if an examinee has raised and written off the goodwill, full credit be given.

OR OR

Q. A, B and C were partners in a firm…………………….
76

Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Provision for doubtful debts 3,100 By Land and Building 12,000

To Furniture 8,000

To Profit transferred to:
A’s Capital A/c 300 3 marks
B’s Capital A/c 300
C’s Capital A/c 300 900
12,000 12,000

Dr. Partners Capital Accounts Cr.
Particulars A B C Particulars A B C
(₹) (₹) (₹) (₹) (₹) (₹)
To B’s Capital 10,000 - - By balance b/d 60,000 40,000 32,000
1 mark
A/c
for each
By General Reserve 10,000 10,000 10,000
To Bank A/c - 20,000 - capital
By A Capital A/c (goodwill) - 10,000 - A/c
To B’s loan - 41,800 - =
By Workmen’s Compensation
1x3
To balance c/d 61,800 - 43,800 Reserve 1,500 1,500 1,500
=
By Revaluation A/c 300 300 300 3 marks
71,800 61,800 43,800 71,800 61,800 43,800

Dr. Bank A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d 20,000 By B’s Capital A/c 20,000 2 marks

To Furniture 20,000 By Balance c/d 20,000

=
40,000 40,000 3+3+2
. =

77

(No marks are to be deducted for the cumulative effect of any transaction) 8 marks

PART B
OPTION 1
Analysis of Financial Statements
- - 23 Q. The quick ratio……………………. ½ mark
+
Ans. Decrease. ½ mark
=
Reason: Quick Assets decrease with no change in Current Liabilities 1 mark

24 24 24 Q. Employee benefit expenses………….

Ans. Bonus 1 mark

25 - 25 Q. Which of the following is not a limitation……………

Ans. (d)/ Intra firm comparison possible 1 mark

- - 26 Q. Under which heading/ sub………………………………….

Ans. Heading- Shareholders Funds 1 mark
or
Sub- Heading- Share capital

27 26 27 Q. Interest received in cash……………..

Ans. Investing 1 mark

- - 28 Q. What is meant by……………..

Ans. Cash equivalents mean short term highly liquid investments that are readily converted 1 mark
into known amounts of cash and which are subject to an insignificant risk of changes in
value.

29 29 29 Q. While preparing cash flow statement………….
½ mark
Ans. No Flow +

78

½ mark
Reason: There is no change in cash and cash equivalents =
1 mark
- - 30 Q. From the following information……………

Ans.

Gross Profit ratio = (Gross profit/ Revenue from operations) x 100…………………1/2

Gross profit = Revenue from operations – Purchases – Carriage Inwards – Decrease in
inventory – Wages

= ₹2,50,000 – ₹1,00,000 – ₹4,000 – ₹15,000 – ₹18,000

= ₹1,13,000……………………………………………………………………………1/2

Gross Profit ratio = ₹1,13,000/ ₹2,50,000 x 100
3 marks

= 45.2%………………………………………………………..……1/2

Net Profit ratio = (Net profit/ Revenue from operations) x 100………..………….…1/2

Net profit = Gross profit – Salaries
= ₹1,13,000 – ₹30,000
= ₹83,000…………………………………………………………….…………….…1/2

Net Profit ratio = 83,000/ 2,50,000 x 100

= 33.2%………………………………………………………………1/2

31 31 31 Q. Fill in the amounts……………

79

Ans.
Common Size Statement of Profit and Loss
For the year ended 31st March 2019
Absolute Change % of Revenue
Particulars from Operations
2017-18 (₹) 2018-19 (₹) 2017-18 2018-19
I. Revenue from Operations 20,00,000 25,00,000 100 100
II. Other Income 1,00,000 2,50,000 5 10 ½ mark

III. Total Revenue 21,00,000 27,50,000 105 110 ½ mark

IV. Expenses
(a) Cost of materials consumed 6,00,000 8,00,000 30 32
½ mark
(b) Change in Inventory 1,00,000 2,00,000 5 8
½ mark
(c) Employee benefit expenses 3,00,000 4,50,000 15 18
½ mark
(d) Other Expenses 2,00,000 2,25,000 10 9
½ mark
Total Expenses 12,00,000 16,75,000 60 67
½ mark
V. Profit before Tax (III-IV) 9,00,000 10,75,000 45 43
Less: Tax 2,00,000 2,50,000 10 10
½ mark
7,00,000 8,25,000 35 33 =
(Note: ½ mark has been allotted for each missing figure) 4 marks
OR OR
Comparative Statement of Profit and Loss
for the years ended 31st March 2018 and 31st March 2019
Particulars 2017-18 2018-19 Absolute Percentage
(₹) (₹) Increase/ Increase/
Decrease Decrease
(₹) (%)
I. Revenue from operations 20,00,000 45,00,000 25,00,000 25 ½ mark
II. Total Revenue 20,00,000 45,00,000 25,00,000 25 ½ mark
III. Expenses
Employee benefit expenses 8,00,000 10,00,000 2,00,000 25 ½ mark
Other expenses 2,00,000 5,00,000 3,00,000 150 ½ mark
IV. Total expenses 10,00,000 15,00,000 5,00,000 50 ½ mark
V. Profit before Tax 10,00,000 30,00,000 20,00,000 200 ½ mark
VI. Less Tax 3,00,000 9,00,000 6,00,000 200 ½ mark
VII. Profit after Tax 7,00,000 21,00,000 14,00,000 200 ½ mark
=
80

4 marks

32 32 32 Q. From the following Balance Sheet……………….

Ans.
Cash Flow Statement of Gopal Ltd. for the year ended 31st March 2019
Particulars Details(₹) Amount (₹)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit before Tax 6,75,000
Adjustment for non cash and non operating items
Add
Interest on debentures 1,08,000
Depreciation 2,00,000
Goodwill written off 12,000 2½
Operating profit before Working capital changes 9,95,000 marks
Less Increase in Inventory (1,24,000)
Cash from operations 8,71,000
Less Tax paid (1,50,000)

Cash Inflows from Operating activities 7,21,000

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Plant and Machinery (7,58,000)
Purchase of Investments (55,000) 1 mark
Cash used in Investing activities (8,13,000)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash Inflows from Financing activities 2,32,000 1 mark

Net increase in Cash and Cash equivalents 1,40,000 -

Add Opening balance of Cash and Cash equivalents
Current Investments 1,20,000
Cash and Cash equivalents 1,20,000 2,40,000
Closing balance of Cash and Cash equivalents ½ mark
Current Investments 2,00,000
Cash and Cash equivalents 1,80,000 3,80,000

81

Working Notes:

Calculation of Net Profit before Tax:
Net Profit 5,00,000
Add Provision for Tax 1,75,000 ½ mark
6,75,000

Dr. Provision for Tax A/c Cr.
Particulars ` Particulars `
To Cash A/c 1,50,000 By Balance b/d 1,75,000

To Balance c/d 2,00,000 By Statement of P & L – 1,75,000 ½ mark
Provision made =
6 mark
3,50,000 3,50,000

PART B
OPTION II
Computerised Accounting
29 - 23 Q. Rows are referred by…………………………

Ans. False. 1 mark

28 27 24 Q. Hardware refers to…………………
1 mark
Ans. (b)/ Computer associated peripherals and their network

27 29 25 Q. ________ prompts the user…………………………..
1 mark
Ans. Parameter query

- - 26 Q. Name the accounting information……………
1 mark
Ans. (c) Costing subsystem

82

- - 27 Q. To facilitate duplication……..
1 mark
Ans. False Normulatisation process avoids duplication of information.

23 25 28 Q. The process of comparing……………
1 mark
Ans. (c) / Data validation

24 26 29 Q. A _______ attribute can be ……………… ½ mark
+
Ans. A composite attribute can be divided into smaller sub-parts but a simple attribute ½ mark
cannot be further sub divided. =
1 mark
30 30 30 Q. State any three features…………….

Ans. Following are the features of good accounting software (Any three):

(a) Do all basic accounting functions
(b) Manage your stored data and stores 1x3
(c) Do the job for costing =
(d) Manage payroll 3 marks
(e) Get many MIS (Management information system)
(f) File tax return
(g) Maintain budget etc
(h) Calculate interest pending amounts
(i) Manage data over different locations and synchronize it and many more other features.

OR OR

Q. Name the function of excel…………………

Ans. The name of the function is ‘TEXT’
3 marks
Its syntax is
TEXT ( value, format _ text)
Value - numeric value which, evaluates a numeric value or referenced cell containing
numeric value.
Formal Text – is a numeric format as a text string enclosed in quotation mark.
83

31 Q. Differentiate between………………………

Ans. Any four differences:
1x4
1) Application: Desktop database can be used by a single user. Server database can be used =
by many users at the same time. 4 marks

2) Additional provision for reliability: Desktop database doesn’t present these but serer
based database has elaborate provisions for this.

3) Cost: Desktop database tends to cost less than the server database.

4) Flexibility regarding the choice of performance is front end applications: It is present in OR
present in desktop database but server base database provide this.

5) Suitability: Desktop database are suitable for small/home offices and server database are
more suitable for large business organizations.

OR 4 marks

Q. List the various attributes………………

Ans. Attributes of payroll database:

1) Employees personal details

(A) Employee (ID) (B) Name (C) Designation (D) Location

2) Employee pay details

A Basic Pay (B) DA (C) HRA (D) TA (E) Provident fund (F) Any deduction for loan etc

the information helps in calculating gross & net salary.

32 32 32 Q. A Ltd. wants to enter their sales………………

Ans. The basic steps to prepare a presentation to present sales related data are:

84

1) Collect data from various departments, heads/division for each quarter.

2) The data to be entered on excel sheet for different quarters before the product in 1x6
consideration.
=
3) Total sale for all the product and single product for all different quarters be calculated by
summing up rows and columns. 6 marks

4) Select to plot product wise total sales. Into a chart by selecting chart type (use insert tab
and click on chart.)

5) To draw a chart/graph for the given data, the data worksheet should be reorganised.

6) Draw a chart or variety of chart mixing up the options to be presented in the meeting.

85