Kerala Plus Two Answer Key 2023 Accountancy with AFS

SECOND YEAR

Kerala Board
Answer Key
2023

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ANSWER KEY
SECOND YEAR HSE MARCH 2023
PART III
SUBJECT: ACCOUNTANCY WITH AFS
CODE No: SY549
80 Scores 2 'l.iHrs
Qn Sub Total
ValuePoints Score
No Qns Score
PARTlACCOUNTANCY
Answer any 4 questions from 1 to 5 ( 4 xl - 4)
1 a) Partnership Deed 1 1
2 a) Old Ratio - NewRatio 1 1
3 b) 19:11 1 1
4 d) Articles of Association 1 1
5 b) Partners Capital alc Or c) Bank Alc 1 1
Answer all the question from 6 to 7 (2 x 2 -4)
6 Two or More Persons
Agreement
Business 2 2
Mutual Agency
Sharing of Profit
Unlimited liability etc. (any 2)
7 The ratio in which the continuing partners have acquired the
share from the retiring/deceased partner is called the gaining 2 2
ratio.
Answer any 2 questions from 8 to 10 (2 x 3 - 6)
8 Fixed capital method & Fluctuating capital method
Basis Fixed capital Fluctuating capital
Number of 2 Accounts for each Each partner has one
accounts partner Account
Adjustments made in the current made in the capital Any 3
accounts of partners accounts of partners differ
Fixed balance Capital account Balance of the capital ence
balance remain account fluctuates from with 1
unchanged year to year 3
score
Credit balance Capital accounts Capital account may each
always show a credit sometimesshow a debit
balance balance
9 Old ratio = 5:3
New share of Sreekumar - 118
New share of Maneesh - 7/8 x 5/8 = 35/64 1
New share of Vasanth - 7/8 x 3/8 = 21164 1 3

Sreekumar's share = 8/64
1
New ratio = 35:21:8
10 Basis Dissolution of Partnership Dissolution of firm
Termination Business is not terminated Business of the firm
of business is closed
Settlement Assets and liabilities Assets are sold and
of assets and revalued liabilities are paid-
any 3
liabilities off.
Intervention No intervention by the Court has inherent 3 xl 3
by court court. power to intervene
Closure of Does not require The books of
books account are closed.
Answer all the question from 11 to 12 (2 x 4 -8)
11 Goodwill = Average profit x No. of years purchase
Average Profit = 20,5000014 = 5,12,500 2
Goodwill = 5,12,500 x 3 = 15,37,500 2 4
12 Prakash's Loan Account
Year Particulars Amount Year Particulars Amount
1 Cash 28,000 1 Prakash's 80,000
Balance cld 60,000 capital
Interest 8,000 1
88,000 88,000
2 Cash 26,000 2 Balance bid 60,000
Balance cld 40,000 Interest 6,000
1
66,000 66,000
3 Cash 24,000 3 Balance bid 40,000 1
Balance cld 20,000 Interest 4,000 4
44,000 44,000
1
4 Cash 22,000 4 Balance bid 20,000
Interest 2,000
22,000 22,000
Answer all the question from 13 to 14 (2 x 5 - 10)
13 Profit & Loss Appropriation Account
Particulars ~ Particulars ~

Interest on capital: Net Profit 85,000 1
Manu 5000 1
Anu 3750 8,750
Sinu's salary 15,000 1
Sinu 's Commission 3,000
5
Partners Capital: 1
Manu 29,125
Anu 29,125 58,250 1

1 185,000 I I 85,000 1
(one score for each correct posting)
14 Revaluation Account
Particulars Amount Particulars Amount
Provision for 3,000 Stock 5,000
doubtful debt 3
Partners capital:
Mane 1,000
Bale 667
Deppe 333 2,000 5
5,000 5,000
Deppe's Capital Account
Particulars Amount Particulars Amount
Balance bId 50,000 2
Deppe's Loan Nc 58,666 Revaluation Nc 333
General Reserve 8333
58,666 58.666

Answer any one question from 15 to 16 (1 x 8 - 8)
15 Realisation Account
Particulars Amount Particulars Amount
Stock 20,000 Creditors 15,000
Furniture 50,000 Bank Loan 17,500
Debtors 10,000 Bank (Assets 1,90000 6
Plant & Machinery 1,00,000 realised)
Bank 31,000 Stock 15000
Creditors 13500 Furniture 55000
Bank loan 17500 P&M 110000
Bank (expense) 2,500 Drs 10000
Partners capital
Ajith 5400
Asha 3600 9,000
2,22,500 2,22,500 8
Partners Ca oital Account
Particulars Ajith Asha Particulars Ajith Asha
Balance bid 100000 50000
2
Bank 105400 53600 Realisation 5400 3600

105400 53600 105400 53600

16 Revaluation Nc
Particulars Amount Particulars Amount
Stock 2,500 Investment 7,500
Provision for bad 500
debt 2,000
Creditors 2112
Partners capital

Ayusha 1667
Vidhya 833 2,500
7,500 7,500

Partners Capital Alc
Particulars Ayusha Vidhya Smitha Particulars Ayusha Vidhya Smitha
Balance bid 100000 75000
Bank 25000
Bala c/d 115001 82499 25000 Premium(GW) 6667 3333 3
General Rese 6667 3333
Revaluation 1667 833
115001 82499 25000 115001 82499 25000
(Sacrificing ratio = 2:1) 8
Balance sheet
Liabilities Amount Assets Amount
Creditors 80000 Cash at bank 38000
Bills payable 20000 Debtors 9500 2~
Outstanding exp: 5000 Stock 22500
Capital: Plant & Machinery 50000
Ayush 115001 Building 200000
Vidhya 82499 Investment 7500
Smitha 25000 222500
327500 327500
PART II
(ANALYSIS OF FINANCIAL STATEMENTS)
Answer any 4 questions from 17 to 21 (4 x 1- 4)
17 Any option 1 1
18 c) Bearer debenture 1 1
19 d) Long term borrowings 1 1
20 c) Solvency ratio 1 1
21 c) Purchase of Plant 1 1
Answer all the question from 22 to 23 (2 x 2 - 4)
22 Debenture Suspense Ale Dr. 15,000,00
1x2 2
To 8% Debentures Ale 15,000,00
23 Limitations of Accounting Data
Ignores Price-level Changes
Ignore Qualitative or Non-monetary Aspects 1x2 2
Variations in Accounting Practices
Forecasting (any 2)
Answer any 2 questions from 24 to 26 (2 x 3 - 6)
24 Distinction between Shares and Debentures
Basis Share Debenture
Ownership Part of owned capital part of borrowed capital
Return Dividend Interest Any 3

Repayment Not repayable Repayable after the expiry
Voting Rights Enjoy voting rights Do not enjoy voting right
Convertibility Cannot be converted Can be converted to 3xl 3
into debentures shares
Security Not secured by any Generally secured
charge
25 a) BankAic Dr. 500000
To 8 % Debenture Alc 500000 1
b) Bank Alc Dr 550000
To 8 % Debenture Alc 500000 3
To Securities Premium Reserve Alc 50000 2
26 Operating activities - (c) Pay operating expenses,
(d) Receipts for Royalties
Investing activities - (a) Sale of property,
(e)Purchase of furniture
1;2 x 6 3
Financing activities -(b )Redemption of debentures,
f) Procurement of loan
Answer all the question from 27 to 28 (2 x 4 - 8)
27 To issue fully paid bonus shares to the extent not exceeding
unissued share capital of the company.
To write-off preliminary expensesof the company.
To write-off the expenses of, or commission paid, or discount
allowedon any securities of the company.
To pay premium on the redemption of preference shares or lx4 4
debentures of the company.
Purchase of its own shares (any 4)
28 Objectives of Financial statements
To provide information about economic resources and
obligations of a business
To provide information about the earning capacity of the
business lx4 4
To provide information about cash flows
To judge effectiveness of management
Information about activities of business affecting the society
Disclosing accounting policies (any 4)
Answer all the question from 29 to 30 (2 x 5 - 10)
29 Comparative statement of profit and loss for the year ended
March 31, 2021 and 2022
Absolute % of
Particulars 2020-21 2021-22 increase/ increase
decrease /decrease
1
Revenuefromoperations 2000000 2500000 500000 25
Less: Expenses
1 5
a) Empl benefit exp: 400000 600000 200000 50
1

~-
b) Other expenses 100000
··t -
50000 (50000)
..-~.~+.--.---. .....
(50) . .

1
Profit before tax 1500000 1850000 350000 23.33
1
Less:
~ Income tax
-.~~-~~.,."'"- ..,-., ..--'"".--.-----
750000 925000 .. 175000 23.33 .
c.: c_'--''-'-+--'--'--'
Profit after tax 750000 925000 175000 23.33
30 Cash Flows from Financine Activities
Proceeds from long-term borrowings (loan taken) - 2,00,000 3
Repayment of long-term borrowings -..(J",S_Q,JJ).QJ)) 1
Net cash inflow from Financing Activities - 50.000 1

Working Notes:
Lon. Term Loan Ale
5
Particulars Amount Particulars Amount
Cash (repayment) 150000 Balance bid 300000
Balance cld 350000 Cash (Loan 200000
taken) (Bal fig)
500000 500000
Answer anyone question from 31 to 32 (1 x 8 - 8)

31 i) Bank Ale Dr 4,80,000
To Share application Ale 4,80,000
ii) Share application ale Dr 4,80,000
To Share Capital Ale 4,00,000
To Bank Ale 80,000
iii) Share Allotment Ale Dr 3,00,000
To Share capital Ale 3,00,000
iv) Bank Ale Dr 3,00,000
To Share allotment Ale 3,00,000 1
score
v) Share First & Second Call Ale Dr 3,00,000 for
To Share capital Ale 3,00,000 8
any 8
vi) Bank Ale Dr 2,85,000 entry
To Share First & Second call 2,85,000
vii) Share capital Ale Dr 50,000
To Share First & Second call 15,000
To Share forfeiture Ale 35,000
viii) Bank Ale Dr 30,000
Share forfeiture Ale Dr 20,000
To Share capital Ale 50,000
ix) Share forfeiture Ale Dr 15,000
To Capital reserve Ale 15,000
32 a) Current ratio = Current assets 2
Current liabilities

= 3,15,000
1,40,000
= 2.25:1
b) Quick ratio = Quick assets
Current liabilities 2
= 65 OOO
J

1,40,000
= 0.46: 1
c) Proprietory Ratio = Shareholders Funds 8
2
Total assets
= 2JOOJOOO
8,40,000
= 0.24:1
d) Inventory to working capital
= 250JOOO
1,75,000 2
= 1.43:1
Scheme Finalised by:
1) ANIL KUMAR G GHSS AYYANKOICKAL KOLLAM 944610970
2) REJI MAlHAI GHSS KUMMIL KOLLAM 8281256790
3)JAGANH GHSS KIDANGARAALAPUZHA
4) JAYARAM SANTHOSH GHSS KADAVALLUR THRISSUR
5) BINDU P K KCP HSS KAVASSERYPALAKKAD
6) JOY J GHSS WEST KALLADA KOLLAM