CBSE Class 12 Accountancy Question Paper 2023

Set 1 (67/4/1) Solutions

PART A

(Accounting for Partnership Firms and Companies)

1. Vijay and Ajay are partners in a firm. The partnership agreement provides for
interest on drawings @ 12% per annum. Which of the following accounts will be
debited to transfer interest on drawings to Profit and Loss Appropriation A/c ?
1

(a) Interest on Drawings Account

(b) Bank Account

(c) Partners Current Account

(d) Partners Capital Account

Answer:(a) Interest on Drawings Account

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2. On dissolution of the firm of Ramesh, Suresh and Naresh, Naresh had agreed to
bear all realisation expenses for which he was paid ₹14,500.

Actual expenses on realisation amounted to ₹ 11,000 which were paid by Naresh.

The amount to be credited to Naresh’s capital account will be: 1

(a) ₹11,000

(b) ₹ 3,500

(c) ₹14,500

(d) ₹25,5003.

Answer:(b) ₹3,500

3 (i) Manmohan Ltd. invited applications for issuing 50,000 equity shares of ₹ 10
each at par. The amount payable per share was as follows :
On application ₹ 3; on allotment ₹ 4 and on first and final call ₹ 3.
Applications were received for 1,45,000 equity shares. Applications for 20,000
equity shares were rejected and remaining applicants were allotted shares on a pro-
rata basis. Excess application money received with application was adjusted
towards sums due on allotment and first and final call. Amount credited to calls-in-
advance account was : 1
(a) ₹ 2,25,000
(b) ₹ 25,000
(c) ₹ 1,75,000
(d) Nil

Answer: (c) ₹ 1,75,000

Or

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(ii) Which of the following statement is correct regarding subscribed capital?
1
(a) It is the amount of share capital which a company is authorised to issue by its
Memorandum of Association.
(b) It is that part of authorised capital which is actually issued to the public for
subscription.
(c) It is that part of the issued capital which has been actually subscribed by the
public.
(d) It is that part of the called-up capital which has been actually received from
shareholders.

Answer: (c) It is that part of the issued capital which has been actually subscribed by the
public.

4. (i) On 1st October 2020, Amit, a partner, advanced a loan of ₹ 1,20,000 to the
firm. In the absence of partnership deed, the amount of interest on loan to be paid
on 31st March 2021 will be:
(a) ₹ 3,600
(b) ₹ 7,200
(c) ₹ 12,000
(d) ₹ 6,000

Answer: (b) ₹ 7,200

OR

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(ii) Vijay, Ajay and Sanjay are partners in a firm sharing profits and losses in the
ratio of 7 : 5 : 8. Sanjay died on 28th August, 2021. His share in the profits of the
firm till the date of his death was determined at ₹ 75,000. It will be debited to which
of the following accounts? 1
(a) Profit and Loss Suspense Account
(b) Sanjay’s Capital Account
(c) Profit and Loss Adjustment Account
(d) Profit and Loss Appropriation Account

Answer: (c) Profit and Loss Adjustment Account

5.(i) Anuradha Ltd. issued 2,00,000, 7% debentures of ₹ 100 each at a discount of

5% redeemable at a premium of 5%. Discount on issue and premium on
redemption were accounted for through ‘Loss on Issue of Debentures Account.’ On
issue of debentures, ‘Loss on Issue of Debentures Account’ will be :
1
(a) Credited by ₹ 10,00,000
(b) Debited by ₹ 10,00,000
(c) Debited by ₹ 20,00,000
(d) Credited by ₹ 20,00,000

Answer: (c) Debited by ₹ 20,00,000

or

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(ii) Diksha Ltd. issued 4,000, 9% Debentures of ₹ 100 each at a discount of 10%,
redeemable at a premium. ‘Discount on Issue of Debentures’ and ‘Premium on
Redemption of Debentures’ were accounted for through ‘Loss on Issue of
Debentures Account’. If the amount of ‘Loss on Issue of Debentures Account’ was ₹
60,000, then the amount of premium on redemption was : 1
(a) ₹ 60,000
(b) ₹ 40,000
(c) ₹ 20,000
(d) ₹ 80,000

Answer: (b) ₹ 40,000

[Link] (A) : Increase in the value of liabilities on reconstitution of a firm is

debited to Revaluation Account. 1

Reason (R) : Increase in the value of liabilities is a loss.

Select the correct alternative from the following :

(a) Assertion (A) is correct, but Reason (R) is wrong.
(b) Assertion (A) is wrong, but Reason (R) is correct.
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct
explanation of Assertion (A).
(d) Both Assertion (A) and Reason (R) are wrong.

Answer: (c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the
correct explanation of Assertion (A).

[Link] 5
[Link] dissolution of a partnership firm, furniture appearing in the Balance Sheet
was ₹ 2,00,000. 50% of the furniture was taken over by a partner at ₹ 65,000 and
balance 50% was sold at 20% less than the book value. The amount debited to
bank account was : 1
(a) ₹ 1,45,000
(b) ₹ 80,000
(c) ₹ 65,000
(d) ₹ 1,85,000

Answer: (b) ₹ 80,000

8. Part of the uncalled share capital that can be called up only at the time of
winding up of the company is called: 1
(a) Issued capital
(b) Paid-up capital
(c) Reserve capital
(d) Un-issued capital

Answer: (c) Reserve capital

9.(i) Ria and Surbhi were partners in a firm sharing profits and losses in the ratio
of 3 : 2. With effect from 1st April, 2022, they agreed to share profits equally. The
goodwill of the firm was valued at ₹ 3,00,000. The adjustment will be done by which
of the following transaction ? 1
(a) Debiting Surbhi’s account by ₹ 30,000 and crediting Ria’s account by ₹ 30,000.
(b) Debiting Ria’s account by ₹ 30,000 and crediting Surbhi’s account by ₹ 30,000.
(c) Debiting Surbhi’s account by ₹ 3,000 and crediting Ria’s account by ₹ 3,000.
(d) Debiting Ria’s account by ₹ 3,000 and crediting Surbhi’s account by ₹ 3,000.

Answer: (a) Debiting Surbhi’s account by ₹ 30,000 and crediting Ria’s account by ₹
30,000.

OR

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(ii) Naman, Suman and Mohit were partners in a firm sharing profits in the ratio of
8 : 5 : 3. With effect from 1st April, 2022, they decided that in future, they will
share the profits in the ratio 5 : 6 : 5. Identify the gain or sacrifice by the partners
due to change in profit sharing ratio, from the following : 1
(a) Naman’s gain 3/16, Suman’s sacrifice 1/16, Mohit’s sacrifice 2/16
(b) Naman’s sacrifice 3/16, Suman’s gain 1/16, Mohit’s gain 2/16
(c) Naman’s sacrifice 3/16, Suman’s gain 1/16, Mohit’s sacrifice 2/16
(d) Naman’s gain 3/16, Suman’s sacrifice 1/16, Mohit’s gain 2/16

Answer: (c) Naman’s sacrifice 3/16, Suman’s gain 1/16, Mohit’s sacrifice 2/16

10. Sujata Ltd. issued 5,000, 7% Debentures of ₹ 100 each at a premium of 10%.
According to the terms of issue, 40% of the amount was payable on application and
the balance on allotment. The issue was fully subscribed and all amounts were duly
received. The amounts received on application and allotment respectively were :
1
(a) ₹ 2,50,000 and ₹ 3,00,000
(b) ₹ 2,00,000 and ₹ 3,00,000
(c) ₹ 2,00,000 and ₹ 3,50,000
(d) ₹ 2,00,000 and ₹ 2,50,000

Answer: (c) ₹ 2,00,000 and ₹ 3,50,000

[Link] 7
[Link] goodwill of a firm was valued on the basis of 3 years purchase of average
profits for the last four years. The profits of last four years ending 31st March were
as follows : 1

Year Profit/Loss (₹)

2018 – 19 (14,500)

2019 – 20 15,400

2020 – 21 32,900

2021 – 22 16,800

The value of goodwill of the firm was :

(a) ₹ 8,885
(b) ₹ 37,950
(c) ₹ 58,950
(d) ₹ 20,690

Answer: (b) ₹ 37,950

12. Chavi Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of ₹ 5
per share for non-payment of first and final call of ₹ 4 per share. On forfeiture,
‘Share Forfeiture Account’ will be credited by : 1
(a) ₹ 20,000
(b) ₹ 30,000
(c) ₹ 50,000
(d) ₹ 55,000

Answer: (d) ₹ 55,000

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Read the following hypothetical situation and answer questions number 13 and 14
on the basis of the given information :

Keshav, Krishna and Murari were in partnership sharing profits and losses in the
ratio of 3 : 2 : 1. Their fixed capitals were : ₹ 12,00,000, ₹ 10,00,000 and ₹
8,00,000 respectively. It was agreed that interest on capital will be allowed at 10%
per annum. Partners were entitled to salaries as follows :

Keshav ₹ 5,000 per month and Krishna ₹ 3,000 per quarter.

13. Amount credited to the Partners’ Current Accounts on account of ‘interest on

capital’ and ‘salary’ was : 1
(a) Keshav ₹ 1,20,000, Krishna ₹ 1,00,000 and Murari ₹ 80,000
(b) Keshav ₹ 1,80,000, Krishna ₹ 1,12,000 and Murari ₹ 80,000
(c) Keshav ₹ 60,000, Krishna ₹ 12,000 and Murari ₹ Nil
(d) Keshav ₹ 3,30,000, Krishna ₹ 2,12,000 and Murari ₹ 1,30,000

Answer: (b) Keshav ₹ 1,80,000, Krishna ₹ 1,12,000 and Murari ₹ 80,000

[Link] of profit transferred to Partners’ Current Accounts was : 1

(a) Keshav ₹ 1,00,000, Krishna ₹ 1,50,000 and Murari ₹ 50,000
(b) Keshav ₹ 50,000, Krishna ₹ 1,50,000 and Murari ₹ 1,00,000
(c) Keshav ₹ 1,50,000, Krishna ₹ 1,00,000 and Murari ₹ 50,000
(d) Keshav ₹ 1,51,500, Krishna ₹ 1,01,000 and Murari ₹ 50,500

Answer: (d) Keshav ₹ 1,51,500, Krishna ₹ 1,01,000 and Murari ₹ 50,500

[Link] 9
[Link], Naman and Nityam were partners sharing profits in the ratio of 4 : 3 : 2.
Niva and Naman each give 1/9 from their share to Nityam on reconstitution of the
firm. The new profit sharing ratio among Niva, Naman and Nityam will be : 1
(a) 3 : 4 : 2
(b) 3 : 3 : 4
(c) 4 : 2 : 3
(d) 3 : 2 : 4

Answer: (a) 3 : 4 : 2

16. (i) Anu, Monu and Sonu were partners in a firm sharing profits in the ratio of 5
: 3 : 2. Monu died on 1st January, 2022. Anu and Sonu will acquire Monu’s share in
the ratio of: 1
(a) 1:1
(b) 3:2
(c) 5:3
(d) 5:2

Answer: (b) 3:2

OR

(ii) Vidit, Sumit and Mita were partners in a firm sharing profits in the ratio of 4 : 3
: 1. Mita died and her entire share was taken up by Vidit. The new profit sharing
ratio of Vidit and Sumit will be : 1
(a) 1:1
(b) 5:3
(c) 3:5
(d) 5:2

Answer: (d) 5:2

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17. Rohit and Mohit were partners in a firm sharing profits and losses in the ratio
1
of 3 : 2. Rahul was admitted into partnership for share in profits. Goodwill of the
3
firm was valued at ₹ 30,000. Rahul brought ₹ 40,000 as capital and ₹ 5,000 out of
his share of goodwill premium in cash. At the time of Rahul’s admission, goodwill
was appearing in the books of the firm at ₹ 15,000.
Pass necessary journal entries for the above transactions in the books of the firm on
Rahul’s admission. 3
Answer:
The journal entries to be passed are as follows:

Date Particulars L.F. Debit (₹) Credit (₹)

1 Cash A/c Dr. 45,000

To Rahul’s Capital A/c 40,000

To Premium for Goodwill A/c 5,000

2 Premium for Goodwill A/c Dr. 5,000

To Rohit’s Capital A/c 3,000

To Mohit’s Capital A/c 2,000

3 Goodwill A/c Dr. 15,000

To Rohit’s Capital A/c 9,000

To Mohit’s Capital A/c 6,000

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18. Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of 6 :
4 : 1. Kamolika is guaranteed a minimum amount of ₹ 3,00,000 as her share in
profits. The firm earned a net profit of ₹ 22,00,000 for the year ended 31st March
2022.
Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st
March, 2022. 3

Answer:
Profit and Loss Appropriation Account
For the year ended 31st March, 2022

Amount Amount
Particulars Particulars
(₹) (₹)

To Kamolika's Current A/c By Net

3,00,000 22,00,000
(Guaranteed Profit) Profit

To Monika's Current A/c (Profit) 10,36,364

To Bhoomika's Current A/c (Profit) 6,90,909

To Profit Equalization Reserve

1,72,727
(Deficiency of Kamolika)

Total 22,00,000 Total 22,00,000

Working Notes:

1. Profit Sharing Ratio = [Link]

Monika = 6/11, Bhoomika = 4/11, Kamolika = 1/11

2. Profit Sharing Without Guarantee:

o Monika's Share = 6/11 × ₹ 22,00,000 = ₹ 12,00,000

[Link] 12
 o Bhoomika's Share = 4/11 × ₹ 22,00,000 = ₹ 8,00,000

o Kamolika's Share = 1/11 × ₹ 22,00,000 = ₹ 2,00,000

3. Guaranteed Profit to Kamolika:

Kamolika is guaranteed ₹ 3,00,000, but her calculated share is ₹ 2,00,000.
Deficiency = ₹ 3,00,000 - ₹ 2,00,000 = ₹ 1,00,000.

4. Adjustment:
The deficiency of ₹ 1,00,000 is deducted from Monika's and Bhoomika's share in
the ratio of their original profit sharing ratio (6:4).

o Monika's Share = ₹ 12,00,000 - ₹ 60,000 = ₹ 10,36,364

o Bhoomika's Share = ₹ 8,00,000 - ₹ 40,000 = ₹ 6,90,909

18. (b) Ananya, Bhavi and Chandni were partners in a firm with capitals of ₹
3,00,000, ₹ 2,00,000 and ₹ 1,00,000 respectively.
According to the provisions of the partnership deed :
(i) Ananya and Chandni were each entitled to a monthly salary of ₹ 1,500.
(ii) Bhavi was entitled to a salary of ₹ 4,000 per annum.
The profit for the year ended 31st March, 2022, ₹ 80,000 was divided between the
partners in their profit-sharing ratio of 3 : 3 : 2 without providing for the above
adjustments.
Pass the necessary adjustment entry to rectify the above omissions in the books of
the firm. Show your working notes clearly. 3

Answer:
The adjustment entry is as follows:

Journal Entry:

[Link] 13
Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Profit & Loss Adjustment A/c Dr. 30,000

To Ananya’s Capital A/c 18,000

To Bhavi’s Capital A/c 4,000

To Chandni’s Capital A/c 8,000

Working Notes:

1. Ananya's Salary: ₹ 1,500 × 12 = ₹ 18,000

2. Bhavi's Salary: ₹ 4,000

3. Chandni's Salary: ₹ 1,500 × 12 = ₹ 18,000

Total Salary to be provided: ₹ 18,000 + ₹ 4,000 + ₹ 18,000 = ₹ 40,000

Since the profit was divided as per the ratio [Link] without considering the salaries, the
above entry corrects the distribution.

19.(a) On 1st April, 2021, Hitesh Ltd. took over assets of ₹ 8,00,000 and liabilities of
₹ 40,000 of Pranjal Ltd. at an agreed value of ₹ 8,30,000. Hitesh Ltd. paid the
amount to Pranjal Ltd. as follows :
(i) Gave an acceptance payable after 3 months for ₹ 2,00,000, and
(ii) Issued 10% Debentures of ₹ 100 each at a discount of 10% to Pranjal Ltd. in
satisfaction of the balance amount of purchase consideration.
Pass the necessary journal entries to record the above transaction in the books of
Hitesh Ltd. 3

Answer:
The journal entries to be passed are as follows:

[Link] 14
Date Particulars L.F. Debit (₹) Credit (₹)

01.04.2021 Sundry Assets A/c Dr. 8,00,000

To Sundry Liabilities A/c 40,000

To Pranjal Ltd. 7,60,000

01.04.2021 Pranjal Ltd. Dr. 8,30,000

To 10% Debentures A/c 6,30,000

To Bills Payable A/c 2,00,000

OR

(b) Disha Ltd. forfeited 500 shares of ₹ 100 each issued at 10% premium, ₹ 90
called up, on which the shareholders did not pay ₹ 30 per share on allotment
(including premium) and first call of ₹ 20 per share. Out of these, 300 shares were
reissued for ₹ 80 per share, fully paid up.
Pass necessary journal entries for forfeiture and reissue of shares. 3

Answer:
The journal entries to be passed are as follows:

Forfeiture of Shares:

Date Particulars L.F. Debit (₹) Credit (₹)

01.04.2022 Share Capital A/c Dr. 45,000

Securities Premium A/c Dr. 5,000

To Share Forfeiture A/c 20,000

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Date Particulars L.F. Debit (₹) Credit (₹)

To Calls in Arrears A/c 30,000

Reissue of Shares:

Date Particulars L.F. Debit (₹) Credit (₹)

01.04.2022 Bank A/c Dr. 24,000

Share Forfeiture A/c Dr. 6,000

To Share Capital A/c 30,000

Transfer of Share Forfeiture (Capital Reserve):

Date Particulars L.F. Debit (₹) Credit (₹)

01.04.2022 Share Forfeiture A/c Dr. 14,000

To Capital Reserve A/c 14,000

[Link] 16
20. A, B and C were partners in a firm sharing profits and losses equally. Their
respective capitals were ₹ 10,00,000, ₹ 9,00,000 and ₹ 8,00,000. The partnership
deed provided for the following :
(1) Interest on capital @ 9% per annum.
(2) Interest on drawings @ 12% per annum.
(3) Interest on partners loan to the firm @ 10% per annum.
During the year, B had withdrawn ₹ 20,000 for his personal use. On 30.9.2021, A
had given a loan of ₹ 70,000 to the firm.
Pass the necessary journal entries in the books of the firm for the following for the
year ended 31st March, 2022 :
(i) Allowing interest on C’s Capital.
(ii) Providing interest on A’s Loan.
(iii) Charging interest on B’s Drawings.
Also give transfer entries in the Profit and Loss Account/Profit and Loss
Appropriation Account, as the case may be. 3

Answer:
Journal Entries:

1. For Interest on C’s Capital:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Interest on Capital A/c Dr. 72,000

To C’s Capital A/c 72,000

2. For Interest on A’s Loan:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Interest on Loan A/c Dr. 7,000

To A’s Loan A/c 7,000

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 3. For Interest on B’s Drawings:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 B’s Capital A/c Dr. 2,400

To Interest on Drawings A/c 2,400

4. Transfer of Interest on Capital to Profit & Loss Appropriation Account:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Profit and Loss Appropriation A/c

31.03.2022 72,000
Dr.

To Interest on Capital A/c 72,000

5. Transfer of Interest on Loan to Profit & Loss Account:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Profit and Loss A/c Dr. 7,000

To Interest on Loan A/c 7,000

6. Transfer of Interest on Drawings to Profit & Loss Account:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Interest on Drawings A/c Dr. 2,400

To Profit and Loss A/c 2,400

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21. Prakash, Aakash and Vikas were partners in a business sharing profits in the
ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows: 3

Balance Sheet of Prakash, Aakash and Vikas as at 31st March, 2022

Liabilities Amount (₹) Assets Amount (₹)

Creditors 2,00,000 Bank 40,000

General Reserve 1,00,000 Stock 60,000

Capitals :

Prakash ₹ 1,20,000 1,20,000 Goodwill 1,00,000

Aakash ₹ 2,00,000 2,00,000 Debtors 1,60,000

Vikas ₹ 80,000 80,000 Investments 1,40,000

Furniture 70,000

Building 2,30,000

7,00,000 7,00,000

Vikas died on 30th September, 2022. On the death of a partner the partnership
deed provided for the following :
(i) Deceased partner will be entitled to his share of profit up to the date of death
calculated on the basis of previous year’s profit.
(ii) His share in the Goodwill of the firm, calculated on the basis of 3 years purchase
of average profits of last four years. Profits for last four years ended 31st March
were as follows :
2018 – 19, ₹ 1,60,000; 2019 – 20, ₹ 1,00,000; 2020 – 21, ₹ 80,000 and 2021 – 22, ₹
60,000.
(iii) Drawings of the deceased partner up to the date of death were ₹ 20,000.

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(iv) Interest on capital was allowed @ 12% per annum.
Prepare Vikas’s Capital account to be rendered to his executors. 4

Answer:
Vikas’s Capital Account

Amount Amount
Date Particulars Date Particulars
(₹) (₹)

Drawings
01.04.2022 Balance b/d 80,000 30.09.2022 20,000
A/c

General
Executors
30.09.2022 Reserve 20,000 30.09.2022 1,55,600
A/c
A/c

30.09.2022 Profit A/c 15,000

Interest on
30.09.2022 4,800
Capital A/c

Goodwill
30.09.2022 55,800
A/c

30.09.2022

1,75,600 1,75,600

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22.
Sunstar Ltd. has an authorised capital of ₹ 20,00,000 divided into equity shares of ₹
10 each. The company invited applications for issuing 60,000 shares. Applications
were received for 58,000 shares.

All calls were made and were duly received except the final call of ₹ 3 per share on
2,000 shares. These shares were forfeited.

Present the ‘Share Capital’ in the Balance Sheet of the Company as per Schedule
III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the
same. 4

Answer:

Balance Sheet of Sunstar Ltd. as at 31st March, 2022

Particulars Note No. Amount (₹)

I - Equity and Liabilities:

1. Shareholders' Funds

(a) Share Capital 1 5,54,000

Notes to Accounts:

Note No. 1 - Share Capital

Amount
Particulars
(₹)

Authorised Share Capital:

2,00,000 Equity Shares of ₹ 10 each 20,00,000

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 Amount
Particulars
(₹)

Issued Share Capital:

58,000 Equity Shares of ₹ 10 each 5,80,000

Subscribed Capital:

Subscribed and Fully Paid-up

56,000 Equity Shares of ₹ 10 each 5,60,000

Less: Calls-in-Arrears (Final Call not received on 2,000 shares @ ₹ 3

(6,000)
per share)

Total 5,54,000

[Link] necessary journal entries for issue of 12% debentures in the books of
Ghanshyam Ltd. in the following cases :
(i) Issued 1,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at
a premium of 5%.
(ii) Issued 5,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable
at par.
(iii) Issued 2,000, 12% debentures of ₹ 100 each at a discount of 10%, redeemable
at a premium of 5%. 6

Answer:

Journal Entries:

1. (i) Issue of 1,000, 12% Debentures at a Premium of 10%, Redeemable at a

Premium of 5%

[Link] 22
 Debit Credit
Date Particulars L.F.
(₹) (₹)

Bank A/c Dr. 1,10,000

Loss on Issue of
5,000
Debentures A/c Dr.

To 12% Debentures A/c 1,00,000

To Securities Premium
10,000
A/c

To Premium on
Redemption of 5,000
Debentures A/c

2. (ii) Issue of 5,000, 12% Debentures at a Premium of 10%, Redeemable at Par

Date Particulars L.F. Debit (₹) Credit (₹)

Bank A/c Dr. 5,50,000

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

To Securities Premium A/c 50,000

3. (iii) Issue of 2,000, 12% Debentures at a Discount of 10%, Redeemable at a

Premium of 5%

Debit Credit
Date Particulars L.F.
(₹) (₹)

Bank A/c Dr. 1,80,000

[Link] 23
 Debit Credit
Date Particulars L.F.
(₹) (₹)

Loss on Issue of
30,000
Debentures A/c Dr.

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

To Discount on Issue of
20,000
Debentures A/c

To Premium on
Redemption of 10,000
Debentures A/c

24. Pass the necessary journal entries for the following transactions on dissolution
of the firm of Varun and Vivek after various assets (other than cash) and outside
liabilities were transferred to Realisation Account :
(i) Varun paid creditors ₹ 18,500 in full settlement of their claim of ₹ 20,000.
(ii) Vivek agreed to pay his wife’s loan of ₹ 70,000.
(iii) The firm had unrecorded investments of ₹ 2,00,000, which were sold at a loss of
20%.
(iv) The firm had stock of ₹ 1,00,000. Varun took over the stock at a discount of
10%.
(v) Reema, a debtor whose account for ₹ 2,000 was written off as a bad debt in the
previous year, paid 70% of the amount.
(vi) Expenses of realisation ₹ 4,900 were paid by partner, Vivek. 6

Answer:
Journal Entries:

1. For Payment to Creditors:

[Link] 24
Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Realisation A/c Dr. 18,500

To Bank A/c 18,500

To Creditors A/c 1,500

2. For Payment of Wife's Loan by Vivek:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Vivek’s Capital A/c Dr. 70,000

To Bank A/c 70,000

3. For Sale of Unrecorded Investments:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Bank A/c Dr. 1,60,000

Realisation A/c Dr. 40,000

To Realisation A/c 2,00,000

4. For Varun Taking Over Stock at a Discount:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Varun’s Capital A/c Dr. 90,000

To Realisation A/c 90,000

5. For Reema Paying Part of the Bad Debt:

[Link] 25
Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Bank A/c Dr. 1,400

To Realisation A/c 1,400

6. For Payment of Realisation Expenses by Vivek:

Date Particulars L.F. Debit (₹) Credit (₹)

31.03.2022 Realisation A/c Dr. 4,900

To Bank A/c 4,900

25. (a) Bhumi and Chavi were partners in a firm sharing profits and losses in the
ratio of 5 : 3. They admitted Aditi in the firm on 1st April, 2022. On that date their
Balance Sheet was as follows: 6

Balance Sheet of Bhumi and Chavi as at 1st April, 2022

Liabilities Amount (₹) Assets Amount (₹)

Capitals :

Bhumi ₹ 3,20,000 3,20,000 Machinery 3,80,000

Chavi ₹ 3,40,000 3,40,000 Furniture 50,000

Debtors 2,30,000

General Reserve 60,000 Stock 1,50,000

[Link] 26
Liabilities Amount (₹) Assets Amount (₹)

Bank Loan 1,40,000 Cash 50,000

Creditors 60,000

8,60,000 8,60,000

1
Aditi was admitted in the firm with share in profits on the following terms :
3
(i) Aditi will bring ₹ 3,00,000 as her capital.
(ii) Aditi will bring her share of goodwill premium in cash.
Goodwill of the firm was valued on the basis of two years purchase of average
profits of the last three years. Average profits of the last three years were ₹ 60,000.
(iii) Machinery was revalued at ₹ 4,60,000.
(iv) The capitals of Bhumi and Chavi were adjusted on the basis of Aditi’s capital
by opening current accounts.
Prepare Revaluation Account and Partners’ Capital Accounts.

Answer:

Revaluation Account

Amount Amount
Particulars Particulars
(₹) (₹)

To Furniture A/c By Machinery A/c

10,000 80,000
(Depreciation) (Appreciation)

To Stock A/c
30,000 By Capital A/c (Profit) 40,000
(Depreciation)

Bhumi 25,000

[Link] 27
 Amount Amount
Particulars Particulars
(₹) (₹)

Chavi 15,000

40,000 40,000

Partners’ Capital Accounts

Bhu Bhu
Particul Chav Aditi Particul Chav Aditi
mi mi
ars i (₹) (₹) ars i (₹) (₹)
(₹) (₹)

To Bank By
80,00 60,00 3,20, 3,40,
Loan Balance -
0 0 000 000
A/c b/d

To By
2,00, 1,40, 25,00 15,00
Current - Revalua -
000 000 0 0
A/c tion A/c

To Bank
A/c 1,20, 80,00 By Bank 3,00, 1,20,
- -
(Goodw 000 0 A/c 000 000
ill)

To
4,60, 5,00, 3,00, By Bank 1,00, 1,00,
Balance -
000 000 000 A/c 000 000
c/d

By
60,00 40,00
Goodwil -
0 0
l A/c

[Link] 28
 Bhu Bhu
Particul Chav Aditi Particul Chav Aditi
mi mi
ars i (₹) (₹) ars i (₹) (₹)
(₹) (₹)

8,60, 8,60, 3,00, 8,60, 8,60, 3,00,

000 000 000 000 000 000

OR

(b) Anna, Bina, and Teena were partners sharing profits and losses in the ratio of 5
: 3 : 2. Their Balance Sheet on 31st March, 2022 was as follows: 6

Balance Sheet of Anna, Bina, and Teena as at 31st March, 2022

Liabilities Amount (₹) Assets Amount (₹)

Creditors 66,000 Furniture 1,12,000

Bills Payable 59,000 Stock 1,77,000

Capitals: Debtors 2,80,000

Anna 2,00,000 Less: Provision for Bad Debts (7,000)

Bina 2,00,000 2,73,000

Teena 1,00,000 Cash 63,000

5,00,000

Total 6,25,000 Total 6,25,000

On the above date, Anna retired on the following terms:

[Link] 29
(i) Goodwill of the firm was valued at ₹ 60,000 and Anna’s share of goodwill was
adjusted through the capital accounts of remaining partners.

(ii) Furniture was depreciated by ₹ 10,000.

(iii) Anna was to be paid through cash brought in by Bina and Teena in such a way
as to make their capitals proportionate to their new profit-sharing ratio of 1 : 1.

Prepare Revaluation and Partners’ Capital Accounts.

Solution:

Revaluation Account

Amount Amount
Particulars Particulars
(₹) (₹)

To Furniture A/c By Loss Transferred

10,000
(Depreciation) to:

Anna’s Capital A/c

5,000
(5/10)

Bina’s Capital A/c

3,000
(3/10)

Teena’s Capital A/c

2,000
(2/10)

Total 10,000 Total 10,000

Partners’ Capital Accounts

[Link] 30
Particul Anna Bina Teen Particul Anna Bina Teen
ars (₹) (₹) a (₹) ars (₹) (₹) a (₹)

To By
2,00, 2,00, 1,00,
Revalua 5,000 3,000 2,000 Balance
000 000 000
tion A/c b/d

To
Anna’s By
Capital 30,00 18,00 12,00 Bina’s 30,00
A/c 0 0 0 Capital 0
(Goodw A/c
ill)

By
To
1,65, Teena’s 30,00
Cash/Ba
000 Capital 0
nk A/c
A/c

By
Cash/Ba
nk A/c
1,60, 1,60,
(Adjust
000 000
ment for
Proporti
on)

2,00, 1,81, 1,74, 2,00, 1,81, 1,74,

Total Total
000 000 000 000 000 000

Working Notes:

1. Goodwill Calculation:

o Total Goodwill = ₹ 60,000

[Link] 31
 o Anna's Share (5/10) = ₹ 30,000

o Bina's Share (3/10) = ₹ 18,000

o Teena's Share (2/10) = ₹ 12,000

2. New Capital Ratio (1:1):

o After adjusting goodwill and revaluation loss, the capitals of Bina and
Teena are equalized to make the ratio 1:1 by bringing in cash.

3. Capital Adjustment through Cash:

o Bina and Teena bring in cash to pay Anna and equalize their capitals as per
the new profit-sharing ratio.

26. (a) Yash Ltd. invited applications for 50,000 equity shares of ₹ 10 each at a
premium of 10%. The amount was payable as follows:
On application ₹ 3 per share; on allotment (including premium) ₹ 3 per share and
on first and final call, the balance amount.
Applications were received for 1,20,000 shares and shares were allotted on pro-rata
basis to all applicants. The excess money received on application was to be adjusted
towards sums due on allotment. Application money in excess of sums due on
allotment was refunded. A shareholder who applied for 6,000 shares could not pay
the first and final call money and his shares were forfeited. The forfeited shares
were reissued for ₹ 60,000 fully paid up.
Pass necessary journal entries for the above transactions in the books of Yash Ltd.

Answer:

Journal Entries:

1. For Application Money Received:

[Link] 32
Date Particulars L.F. Debit (₹) Credit (₹)

Bank A/c Dr. 3,60,000

To Share Application A/c 3,60,000

2. For Application Money Adjusted:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Application
3,60,000
A/c Dr.

To Share Capital
1,50,000
A/c

To Share Allotment
1,50,000
A/c

To Bank A/c
60,000
(Refund)

3. For Allotment Money Due:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Allotment
1,50,000
A/c Dr.

To Share Capital A/c 1,00,000

[Link] 33
 Debit Credit
Date Particulars L.F.
(₹) (₹)

To Securities
50,000
Premium A/c

4. For Allotment Money Received:

Date Particulars L.F. Debit (₹) Credit (₹)

Bank A/c Dr. 1,50,000

To Share Allotment A/c 1,50,000

5. For First and Final Call Due:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share First and Final

2,00,000
Call A/c Dr.

To Share Capital
2,00,000
A/c

6. For Non-Payment of Call Money (Forfeiture of Shares):

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Capital
60,000
A/c Dr.

[Link] 34
 Debit Credit
Date Particulars L.F.
(₹) (₹)

To Share First and Final

36,000
Call A/c

To Share Forfeiture A/c 24,000

7. For Reissue of Forfeited Shares:

Date Particulars L.F. Debit (₹) Credit (₹)

Bank A/c Dr. 60,000

To Share Capital A/c 60,000

8. For Transfer of Balance in Share Forfeiture A/c:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Forfeiture A/c

24,000
Dr.

To Capital Reserve
24,000
A/c

OR

[Link] 35
(b) Ajanta Ltd. used a prospectus inviting applications for issuing 5,00,000 equity
shares of ₹ 10 each issued at a premium of 10%. The amount was payable as
follows: 6
On application – ₹ 3 per share
On allotment (including premium) – ₹ 5 per share
On first and final call – ₹ 3 per share
Applications were received for 6,00,000 shares and pro-rata allotment was made to
all applicants. Excess money received on application was adjusted towards sums
due on allotment. All amounts were duly received except from Sumit, who was the
holder of 1,000 shares, and failed to pay the allotment and first and final call. His
shares were forfeited.
Pass journal entries for the above transactions in the books of Ajanta Ltd. Open
calls-in-arrears account wherever necessary.

Answer:

Journal Entries:

1. For Application Money Received:

Date Particulars L.F. Debit (₹) Credit (₹)

Bank A/c Dr. 18,00,000

To Share Application A/c 18,00,000

2. For Application Money Adjusted:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Application
18,00,000
A/c Dr.

[Link] 36
 Debit Credit
Date Particulars L.F.
(₹) (₹)

To Share Capital
15,00,000
A/c

To Share Allotment
3,00,000
A/c

3. For Allotment Money Due:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Allotment
25,00,000
A/c Dr.

To Share Capital A/c 20,00,000

To Securities
5,00,000
Premium A/c

4. For Allotment Money Received:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Bank A/c Dr. 22,00,000

Calls-in-Arrears
3,000
A/c Dr.

To Share Allotment
25,00,000
A/c

[Link] 37
 5. For First and Final Call Due:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share First and Final

15,00,000
Call A/c Dr.

To Share Capital
15,00,000
A/c

6. For First and Final Call Money Received:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Bank A/c Dr. 14,97,000

Calls-in-Arrears
3,000
A/c Dr.

To Share First and

15,00,000
Final Call A/c

7. For Forfeiture of Shares:

Debit Credit
Date Particulars L.F.
(₹) (₹)

Share Capital A/c

10,000
Dr.

To Calls-in-Arrears
6,000
A/c

[Link] 38
 Debit Credit
Date Particulars L.F.
(₹) (₹)

To Share Forfeiture
4,000
A/c

Part B

Option-1

(Analysis of Financial Statement)

27. If revenue from operations is ₹ 10,00,000 and gross profit is 25% on cost, cost of
revenue from operations will be : 1
(a) ₹ 2,50,000
(b) ₹ 12,50,000
(c) ₹ 2,00,000
(d) ₹ 8,50,000

Answer: (d) ₹ 8,50,000

[Link] preparing Cash Flow Statement, ‘Interest received’ by a finance company

is classified as: 1
(a) Financing activity
(b) Operating activity
(c) Investing activity
(d) Cash and cash equivalents

Answer: (b) Operating activity

[Link] 39
29. (i) Which of the following will result in flow of cash? 1
(a) Cash withdrawn from the bank ₹ 50,000
(b) ₹ 2,00,000, 9% debentures issued to vendors of machinery
(c) ₹ 30,000 received from debtors
(d) Cheques of ₹ 20,000 deposited in the bank

Answer: (c) ₹ 30,000 received from debtors

OR

(ii) An investment normally qualifies as cash equivalent only when it has a short
maturity, of say, ______ from the date of acquisition. 1
(a) Three months or more
(b) Six months or less
(c) One year or less
(d) Three months or less

Answer: (d) Three months or less

30. Which of the following is not a Solvency Ratio? 1

(a) Return on Investment
(b) Interest Coverage Ratio
(c) Proprietary Ratio
(d) Total Assets to Debt Ratio

Answer: (a) Return on Investment

[Link] 40
[Link] the following items under major heads and sub-heads (if any) in the
Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013
: 3
(i) Patents
(ii) Capital work-in-progress
(iii) Unpaid dividend

Answer:

1. Patents:
Major Head: Non-Current Assets
Sub-Head: Intangible Assets

2. Capital work-in-progress:
Major Head: Non-Current Assets
Sub-Head: Fixed Assets

3. Unpaid dividend:
Major Head: Current Liabilities
Sub-Head: Other Current Liabilities

32.‘These ratios are calculated for measuring the efficiency of operations of

business based on effective utilisation of resources.’
(a) Identify the types of ratios being discussed above.
(b) Explain any two ratios of the types of ratios identified in (a) above. 3

Answer:

(a) Types of Ratios: Activity Ratios or Turnover Ratios.

(b) Explanation of Two Ratios:

1. Inventory Turnover Ratio:

This ratio measures how efficiently a company is able to convert its inventory
into sales. It is calculated as:

[Link] 41
Inventory Turnover Ratio=Cost of Goods SoldAverage Inventory\text{Inventory
Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average
Inventory}}Inventory Turnover Ratio=Average InventoryCost of Goods Sold

A higher ratio indicates efficient management of inventory.

2. Debtors Turnover Ratio:

This ratio measures how efficiently a company collects its receivables or how
quickly customers pay their dues. It is calculated as:

Debtors Turnover Ratio=Net Credit SalesAverage Trade Receivables\text{Debtors

Turnover Ratio} = \frac{\text{Net Credit Sales}}{\text{Average Trade
Receivables}}Debtors Turnover Ratio=Average Trade ReceivablesNet Credit Sales

A higher ratio indicates faster collection of receivables.

33.(i) (a) Y Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If excess of
current assets over quick assets represented by inventory is ₹ 48,000, calculate
current assets and current liabilities. 2+2=4

Answer:
Let Quick Assets be Q and Current Liabilities be CL.

Q
Quick Ratio = =2
CL

Q = 2  CL

Current Assets = Q + 48, 000

Q + 48, 000
Current Ratio = = 3.5
CL

Q + 48, 000 = 3.5  CL

2  CL + 48, 000 = 3.5  CL

[Link] 42
 48, 000
CL = = 32, 000
1.5

Q = 2  32, 000 = 64, 000

Current Assets = 64, 000 + 48, 000 = 1,12, 000

Therefore, Current Assets = ₹ 1,12,000 and Current Liabilities = ₹ 32,000.

(b) Calculate Debt to Equity Ratio:

Answer:

Debt to Equity Ratio=Total DebtShareholder Funds + Reserves and Surplus

Total Debt
Debt to Equity Ratio =
Shareholder Funds + Reserves and Surplus

4, 00, 000 4, 00, 000

= = = 1.33:1
2, 00, 000 + 1, 00, 000 3, 00, 000

or

(ii) The Current Ratio of a company is 2 : 1. State giving reasons which of the
following transactions would improve, reduce or not change the ratio :

(a) Purchase of goods for cash ₹ 60,000

Answer: Reduce the current ratio.

(Current assets decrease due to cash payment, while current liabilities remain
unchanged.)

(b) Purchase of fixed assets for cash ₹ 2,00,000

[Link] 43
Answer: Reduce the current ratio.
(Current assets decrease due to cash payment, while current liabilities remain
unchanged.)

(c) Sale of goods costing ₹ 20,000 for ₹ 23,000 on credit

Answer: Improve the current ratio.

(Current assets increase due to the increase in trade receivables.)

(d) Issue of shares ₹ 10,00,000

Answer: Improve the current ratio.

(Current assets increase due to the receipt of cash from the share issue.)

[Link] 44
34. Read the following hypothetical text and answer the given question on this
basis:

Madhav is a young entrepreneur. On 1st April, 2019, he formed a partnership firm

with two of his friends, Mohan and Sohan. They started their business of exporting
dry fruits. Their business was a successful business. Now they wanted to expand the
business in many other countries. For meeting the financial requirements, they
changed the form of business organization and formed Madhav Ltd. The Balance
Sheet of Madhav Ltd. as at 31.3.2022 was as follows:

Balance Sheet of Madhav Ltd. as at 31st March, 2022

Note 31.3.2022 31.3.2021

Particulars
No. (₹) (₹)

I - Equity and Liabilities:

1. Shareholders' Funds:

(a) Share Capital 35,00,000 25,00,000

(b) Reserves and Surplus (Statement of

12,50,000 10,00,000
P & L)

2. Non-Current Liabilities:

Long-term Borrowings (10%

12,50,000 3,50,000
Debentures)

3. Current Liabilities:

(a) Short-term Borrowings (Bank

50,000 75,000
Overdraft)

[Link] 45
 Note 31.3.2022 31.3.2021
Particulars
No. (₹) (₹)

(b) Trade Payables 1,50,000 1,50,000

(c) Short-term Provisions 1 1,50,000 75,000

Total 64,50,000 41,50,000

II - Assets:

1. Non-Current Assets:

Fixed Assets

(a) Tangible Assets 40,00,000 22,50,000

(b) Intangible Assets (Goodwill) 1,00,000 1,00,000

2. Current Assets:

(a) Inventories 6,25,000 5,00,000

(b) Trade Receivables (Debtors) 6,50,000 5,00,000

(c) Cash and Cash Equivalents 10,75,000 8,00,000

Total 64,50,000 41,50,000

Notes to Accounts:

[Link] 46
Note 31.3.2022 Amount 31.3.2021 Amount
Particulars
No. (₹) (₹)

1 Short-term Provisions

Provision for Tax 1,50,000 75,000

2 Tangible Assets

Plant and Machinery 44,00,000 25,00,000

Less: Accumulated
(4,00,000) (2,50,000)
Depreciation

Net Plant and Machinery 40,00,000 22,50,000

Additional Information:

(i) A part of the machine costing ₹ 1,25,000 accumulated depreciation thereon being ₹
50,000 was sold for ₹ 45,000 during the year.

(ii) Interest of ₹ 1,25,000 was paid on Debentures.

Calculate cash flows from ‘Investing activities’ and ‘Financing activities’ of

Madhav Ltd. from the information provided above. 6

Solution:

Investing Activities:

1. Sale of Machine:

o Cost of Machine Sold: ₹ 1,25,000

[Link] 47
 o Accumulated Depreciation: ₹ 50,000

o Book Value of Machine Sold: ₹ 75,000

o Sale Price: ₹ 45,000

o Cash Inflow from Sale of Machine: ₹ 45,000

2. Purchase of Plant and Machinery:

o Opening Balance of Plant and Machinery (Gross): ₹ 25,00,000

o Closing Balance of Plant and Machinery (Gross): ₹ 44,00,000

o Addition to Plant and Machinery during the year: ₹ 20,25,000 (₹

44,00,000 - ₹ 25,00,000 + ₹ 1,25,000)

Net Cash Flow from Investing Activities:

• Cash inflow from sale of machine: ₹ 45,000

• Cash outflow for purchase of machinery: ₹ 20,25,000

Net Cash Flow: ₹ (19,80,000) (Outflow)

Financing Activities:

1. Interest Paid on Debentures: ₹ 1,25,000 (Outflow)

2. Issue of Debentures:

o New Debentures Issued: ₹ 9,00,000 (₹ 12,50,000 - ₹ 3,50,000)

3. Issue of Share Capital:

o New Share Capital Issued: ₹ 10,00,000 (₹ 35,00,000 - ₹ 25,00,000)

Net Cash Flow from Financing Activities:

[Link] 48
 • Cash inflow from issue of debentures: ₹ 9,00,000

• Cash inflow from issue of share capital: ₹ 10,00,000

• Cash outflow for interest on debentures: ₹ 1,25,000

Net Cash Flow: ₹ 17,75,000 (Inflow)

PART B

OPTION II

(Computerised Accounting )

27. (i) The need of codification is for : 1

(a) Generation of mnemonic codes.

(b) The encryption of data

(c) Securing the accounts, reports, etc.

(d) Easy processing of data and keeping proper record

Answer: (d) Easy processing of data and keeping proper record

or

27. (ii) Where are the amounts owed by customers for credit purchases found in
books of accounts? 1

(a) Accounts Receivable Journal

(b) General Ledger
(c) Accounts Receivable Subsidiary Ledger
(d) Sales Journal

Answer: (c) Accounts Receivable Subsidiary Ledger

[Link] 49
28. Pie Charts do not have more than ______ categories. 1

(a) Three
(b) Twenty
(c) Twelve
(d) Seven

Answer: (c) Twelve

29. Which of the following statement is not a limitation of computerized accounting

system? 1

(a) Data is not made available to everyone.

(b) Data may be lost or corrupted due to power interruptions.
(c) Data are prone to hacking.
(d) Unprogrammed and unspecified reports cannot be generated.

Answer: (a) Data is not made available to everyone.

30. (i) To safeguard assets and optimize the use of resources, a business 1

(a) Only tries to earn maximum revenue.

(b) Keeps internal controls.
(c) Only ensures accurate accounting records.
(d) Only safeguards assets.

Answer: (b) Keeps internal controls.

OR

[Link] 50
(ii) Correct #### error appears : 1

(a) When a number is divided by zero.

(b) When value is not available.
(c) When column is not wide enough.
(d) When formula is not available.

Answer: (c) When column is not wide enough.

31. What is meant by ‘Memo Voucher’, ‘Post-dated Voucher’ and ‘User-defined

voucher’? 3

Answer:

1. Memo Voucher:
A memo voucher is a non-accounting voucher that is used to record provisional or
temporary entries that do not affect the accounts. It is typically used for internal
purposes and does not post any amount to the ledger.

2. Post-dated Voucher:
A post-dated voucher is a voucher that is recorded with a future date. The entry
will not affect the accounts until the date specified in the voucher arrives. It is
often used for transactions that are scheduled to occur at a later date.

3. User-defined Voucher:
A user-defined voucher is a custom voucher created by the user to suit specific
business needs. It allows the user to define the structure and fields of the voucher
based on the type of transactions they wish to record.

[Link] 51
32. Differentiate between ‘Generic Software’ and ‘Tailored Software’ on any three
basis. 3

Answer:

1. Purpose:

o Generic Software: Designed to cater to a wide range of users and

industries, offering common features that are useful to most businesses.

o Tailored Software: Customized to meet the specific needs and

requirements of a particular business or industry.

2. Flexibility:

o Generic Software: Less flexible, with fixed features that may not
accommodate specific business processes.

o Tailored Software: Highly flexible, as it is designed to adapt to the unique

processes and workflows of the business.

3. Cost:

o Generic Software: Generally less expensive as the development cost is

spread over many users.

o Tailored Software: More expensive due to the customization and specific

development involved for a single business.

[Link] 52
33.(a) How can the format of a selected chart element be changed? Explain. 4

Answer:

To change the format of a selected chart element, follow these steps:

1. Select the Chart Element: Click on the chart element that you want to format
(e.g., title, axis, data series).

2. Right-Click and Choose Format: Right-click on the selected element and

choose the 'Format' option from the context menu.

3. Format Pane: A format pane or dialog box will appear, where you can customize
various aspects of the chart element, such as font style, color, size, border, and
fill.

4. Apply Changes: Once you have made the desired changes, click 'OK' or 'Close'
to apply the formatting to the chart element.

OR

(b) List any eight uses of accounting software. 4

Answer:

1. Automated Invoicing: Accounting software can generate and send invoices

automatically.

2. Expense Tracking: Helps in tracking expenses and managing bills.

3. Financial Reporting: Generates financial reports such as balance sheets, income

statements, and cash flow statements.

4. Payroll Management: Manages employee payroll, deductions, and tax

calculations.

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 5. Inventory Management: Tracks inventory levels and manages stock efficiently.

6. Budgeting and Forecasting: Assists in budgeting and forecasting financial

performance.

7. Tax Compliance: Ensures accurate calculation and reporting of taxes.

8. Bank Reconciliation: Automatically reconciles bank statements with accounting

records.

34. Name and explain the financial function which will be used to verify the total
interest on a loan between any two periods. 6

Answer:

Function Name: CUMIPMT (Cumulative Interest Payment)

Explanation:
The CUMIPMT function in Excel is used to calculate the cumulative interest paid on a
loan between two periods. This function is particularly useful for determining the total
interest expense over a specific period of time.

Syntax:
CUMIPMT(rate, nper, pv, start_period, end_period, type)

• rate: The interest rate for each period.

• nper: The total number of payment periods in the loan.

• pv: The present value or the principal amount of the loan.

• start_period: The first period in the calculation.

• end_period: The last period in the calculation.

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 • type: Indicates when the payments are due. Use 0 if payments are due at the end
of the period and 1 if they are due at the beginning.

Example:
If you want to calculate the total interest paid from the 1st to the 12th period on a loan
with a 5% annual interest rate, a loan term of 20 years, and a principal amount of ₹
1,00,000, you would use the function:

=CUMIPMT(5%/12, 240, 100000, 1, 12, 0)

This function will return the total interest paid between the specified periods.

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