VIKAS PRE-UNIVERSITY COLLEGE

II PUC-COMMERCE

ACCOUNTANCY(30)

Section A

1. Reserve means the amount set aside out of profits which are not earmarked in any way to

meet any particular known liability on the date of balance sheet. It is a part of profit retained

for any unknown contingency, liability or decrease in the value of asset. Reserve is an

appropriation of profit and is debited to profit and loss appropriation account.

2. The profit and loss appropriation account is merely an extension or a continuation of usual

profit and loss account. The profit and loss appropriation is the account which shows the

appropriation of profit of the firm or the distribution of profits of the firm among the

partners. It records the preliminary appropriation of profits among the partners such as

interest on partners capital, interest on partners drawings, partner salary or commission and

also the final appropriation of net profits or net losses among the partners.

3. 1. Super profit method: under this method, goodwill is calculated by multiplying super profit

with the given number of years of purchases, where super profit is the excess of a actual

earnings of the business over the normal earnings.

2. Average profit method: Under this method, the given number of years of profit and loss

are averaged and the average profit is multiplied by with the agreed number of years of

purchase to ascertain goodwill.

4. Deceased partner capital a/c dr

To Deceased partner Executors a/c

(being balance transferred to deceased partner executors a/c)

5. Dissolution of partnership:

1. The business of the firm is not terminated.

2. Assets and liabilities are revalued and new balance sheet is drawn.

Dissolution of partnership firm:

1. The business of the firm is not terminated.

2. Assets are realised and liabilities are paid off.

6. Authorised capital is the maximum amount of capital which a company is authorised to raise

from the public by the issue of shares. It is mentioned in the capital clause of the

memorandum of association of a company. It is also called a “Registered Capital or Nominal

Capital”.

7. Dividend distribution tax is the amount of tax to be paid to Indian government on all the

dividends declared by the company. The company has to pay tax at the rate of 16.995%.

8. 1. Comparative statement analysis

2.Common size statement analysis

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3. Trend analysis

9. Examples for Non profit organisations: Hospitals, schools, colleges, libraries etc.

10. Object based logical models

Record based logical models

Section B

11.

Interest on drawings = Total product x Rate x 1/12

= 144000 X 10 % X 1/12

= 1200

12. Old Ratio = 6:4 C’s share =6/20

Sacrifice share =4/20 : 2/20

New ratio = old ratio – sacrifice ratio

A = 6/10 – 4/20 = 8/20

B = 4/10 – 2/20 = 6/20

C = 6/20

New Ratio = 8:6:6

13.

Dr Sheenu's Executor's account cr

Particulars Rs. Particulars Rs.

To Drawings a/c 5000 By Sheenu's capital a/c 100000

By Int. on capital a/c 6000

By Goodwill a/c 5000

To balance b/d 110000

By profit and loss suspense

a/c 4000

115000 115000

Date o/s month Amount Product

01-04-2015 12 5000 60000

30-06-2015 9 8000 72000

01-12-2015 4 3000 12000

31-03-2015 0 2000 0

Total Product 144000

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14. ..

Journal entries in the book of Karnataka co. ltd.

Bank a/c dr 20000

To 8%debenture application a/c 20000

(being application money received)

8% Debenture application a/c dr 20000

To 8%debenture a/c 20000

(being application money transferred)

8% Debenture allotment a/c dr 40000

To 8% debenture a/c 40000

(being the allotment money due)

Bank a/c dr 40000

To 8% Debenture allotment a/c 40000

(being allotment money received)

8%Debenture 1st and final call a/c dr 40000

To 8% debenture a/c 40000

(Being debentiure first and final

call money due)

Bank a/c dr 40000

To 8%Debenture 1st and final call a/c 40000

(being first & final call money received)

15. Inventory turnover Ratio = cost of goods sold =300000/75000 = 3 times

Average stock

Cost of good sold = sales – net profit = 400000-100000 = 300000

Average stock = 60000 +90000

2

= 75000

Gross profit Ratio = Gross profit = 100000 x 100 = 25%

Net sales 400000

16. .

Shree Sports Club

Dr Receipt and Payment a/c for the year ending 31-3-2016 cr

Receipt Rs Payment Rs

To balance c/d 10000 By subscription

Toproceeds from concerts 10000 to newspaper 3000

To subscription received 40000 By upkeep of ground 10000

To rent received 2000 By computers purchased 5000

To Endowment fund 2000 By books purchased 5000

By balance c/d 41000

64000 64000

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17. Types of Data processing System:

1. Batch processing systems

2. Online processing systems

3. Real processing systems

4. Distributed data processing system (page 513-514)

Section c

18.

Dr Lease a/c cr

Date Particulars Rs Date Particulars Rs

01-04-2011 To Bank a/c 50000 31-03-2012 By Depreciation a/c 11548.75

31-03-2012 To Interest a/c 2500

By Balance b/d 40951.25

52500

52500

01-04-2012 To balance c/d 40951.25 31-03-2013 By Depreciation a/c 11548.75

31-03-2013 To Interest a/c 2047.56

By Balance b/d 31450.06

42998.81

42998.81

01-04-2013 To balance c/d 31450.06 31-03-2014 By Depreciation a/c 11548.75

31-03-2014 To Interest a/c 1572.5

By Balance b/d 21473.81

33022.56

33022.56

01-04-2014 To balance c/d 21473.81 31-03-2015 By Depreciation a/c 11548.75

31-03-2015 To Interest a/c 1073.69

By Balance b/d 10998.75

22547.5

22547.5

01-04-2015 To balance c/d 10998.75 31-03-2016 By Depreciation a/c 11548.75

31-03-2016 To Interest a/c 549.99

11548.75 11548.75

Dr Interest a/c cr

Date Particulars Rs Date Particulars Rs

31-03-2012 To P & L a/c(transferred) 2500 31-03-2012 By Lease a/c 2500

2500

2500

31-03-2013 To P & L a/c(transferred) 2047.56 31-03-2013 By Lease a/c 2047.56

2047.56

2047.56

31-03-2014 To P & L a/c(transferred) 1572.5 31-03-2014 By Lease a/c 1572.5

1572.5

1572.5

31-03-2015 To P & L a/c(transferred) 1073.69 31-03-2015 By Lease a/c 1073.69

1073.69

1073.69

31-03-2016 To P & L a/c(transferred) 549.99 31-03-2016 By Lease a/c 549.99

549.99 549.99

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19. ...

Revaluation a/c

Particulars Rs Particulars Rs

To P.B.D 2000 By Stock a/c 4000

To Dep. On machinery 2000 By App. On Buildings 10000

To deo on furniture 1000

To parrtners capital a/c

x - 3600

y - 3600

z - 1800 9000

14000 14000

Partners capital a/c

Particulars x y z particulars x y z

To Goodwill

a/c 12500 12500

By balance b/d 50000 30000 20000

To Z's loan a/c 31400 By P&L a/c 1200 1200 600

To Balance c/d 60300 40300

By Reserve Fund 8000 8000 4000

BY Revaluation a/c 3600 3600 1800

By Goodwill a/c 10000 10000 5000

72800 52800 31400 72800 52800 31400

Balance sheet as on at 1-4-2016

Liabiliteis Rs Assets Rs

Creditors 25000 Cash @ bank 10000

Bills payable 10000 bills Receivable 10000

Z's loan 31400 Debtors 40000

less: 2000

38000

less : PBD 2000 36000

Stock 20000

add: App 4000 24000

Capitals: Machinery 20000

x 60300 less: dep 2000 18000

y 40300 furniture 10000

less: dep 1000 9000

Building 50000

add: App 10000 60000

167000 167000

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20.

Dr Realisation a/c cr

Particulars Rs Particulars Rs

To Bills receivable

15000 By Creditors 20000

To Debtors

20000 By Bills payable 10000

To Motor car

10000 By Bank loan 15000

To Machinery

30000

To Furniture

15000 By Cash a/c:

To Building

50000 Buildings 60000

Machinery 28000

To Cash a/c

B/R 14000

Creditors 19000 Debtors 19000

Bills Payable 9500 Unrecorded assets 20000 141000

Bank Loan 15000 43500

By Raju's capital a/c 10000

To Cash a/c

2000 (motor car taken over)

(dissolution expenses)

By Ravi's capital a/c 13000

To Partners capital a/c

(Furniture taken over)

Raju 14100

Ravi 9400 23500

209000 209000

Dr Partners capital a/c cr

Raju Ravi

Raju Ravi

To profit and loss a/c 3000 2000 By Balance b/d 50000 40000

To realisation a/c 10000 13000 By General reserve a/c 6000 4000

(assets realised) By Realisation a/c 14100 9400

To cash a/c 57100 38400

70100 53400 70100 53400

Dr Cash a/c cr

To Balance b/d 5000 By raju's loan a/c 5000

To Realisation a/c 141000 By Realisation a/c 43500

(assets realised) (liabiliteis paid off)

By Realisation a/c 2000

By raju's capital a/c 57100

By Ravi's capital a/c 38400

146000 146000

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21. ..

Journal entries in the books of Sagar co. ltd.

particulars l.f debit credit

Bank a/c dr 400000

To share application a/c

400000

(being application money received )

Share application a/c dr 400000

To share capital a/c

400000

(being application money transferred

to share capital a/c)

share allotment a/c dr 400000

Discount on issue of shares a/c 200000

To share capital a/c

600000

(being allotment money due)

Bank a/c dr 400000

To share allotment a/c

400000

(being allotment money received )

share first call a/c dr 600000

To share capital a/c

600000

(being share first call money due)

Bank a/c dr 600000

To share first call a/c

600000

( being share first call money received)

share final call a/c dr 400000

To share capital a/c

400000

(being share final call money due)

Bank a/c dr 380000

To share final call a/c

380000

being final call money received

exept 1000 shares)

Share capital a/c dr 100000

To discount on issue of shares a/c

10000

To forfeited shares a/c

70000

To share final call a/c

20000

(being non payment of final call

on 1000 shares)

Bank a/c dr 80000

Forfeited shares a/c dr 20000

To Share capital a/c

100000

(being forfeited shares are reissued)

Forfeited shares a/c dr 50000

To Capital Reserve a/c

50000

( Being balance transferred to

capital reserve a/c)

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22. .

Balance Sheet as on at 31-3-2016

equity & Liabiliteis notes Rs.

I. Shareholder's Funds:

Share capital 1 800000

Reserves and surplus 2 339502

II. Non Current Liabilities

Long term Borrowings 3 200000

III. Current Liabiliteis

Short term borrowings 4 nil

Trade payable 180000

Other current liabiliteis 5 nil

Short term provisions 6 88498

TOTAL 1608000

Assets

Non current assets

fixed assets 7

Tangible assets 579000

Intangible assets 350000

Current assets

Investments nil

Inventories 145000

Trade receivables 8 250000

cash and cash equivalents 9 200000

Short term loans & advances 10 84000

TOTAL 1608000

Statement of Profit &Loss for the year ending 31/3/2016

particulars Notes Rs.

Income

Revenue from operations 950000

less: Returns

Revenue from operations 950000

less: Excise duty

Revenue from operations 950000

Other income

Total income from operations 950000

Expenses

Cost of materials consumed

Purchase of stock in trade 400000

Changes in inventory -85000

employee benefit expenses 175000

Finance costs 16000

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Depreciation 31000

Other expenses 160000

Total expenses 697000

Profit before tax 253000

less: tax 30000

Profit after tax 223000

Note 1: Share capital Amt.

Equity capital 800000

Note 2: Reserve & surplus

General reserve 100000

add: Transferred to reserve 40000

Closing balance 140000

Surplus opening balance 75000

add: surplus from P&L 223000

298000

less: Appropriation

Proposed dividend -50000

DD@16.995% -8498

transferred to G.R -40000

339502

Note 3 : long term borrowings

8% debentures 200000

Note 4 : Short term borrowings nil

Note 5: Other current liabiliteis

Trade payable 180000

Note 6: short term provisions

Provision for taxation 30000

DDT 8498

Prop. Dividend 50000

88498

Note 7:fixed assets

Particulars gross dep netblock

Goodwill 300000

300000

Patents 50000

50000

Machinery 260000 26000 234000

Buildings 250000

250000

Furniture 100000 5000 95000

Note 8: trade receivables 250000

Note 9: Cash & Cash equivalents 200000

Note 10: Short term loans & Advances 84000

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Note 11: employee benefit expenses

Salary & Wages 175000

Note 12: Finance cost

Int. on debenture 16000

Note 13: Depreciation 31000

23. .

Common size Balance sheet as on at 2015 &2016

2015 % 2016 %

Share holders fund

Share Capital 500000 34.48 600000 38.09

Reserve & Surplus 300000 20.69 350000 22.22

Total(A) 800000 55.17 950000 60.32

Non Current Liabilities

Debentures (B) 400000 27.59 300000 19.04

Current Liabiliteis

Trade payables 200000 13.79 250000 15.87

Short term Provisions 50000 3.45 75000 4.76

Total© 250000 17.24 325000 20.63

Total(A+B+C) 1450000 100.00 1575000 100

Assets:

Non Current assets

Tangible assets 550000 37.93 700000 44.44

Intangible Assets 200000 13.79 250000 15.87

Total(A) 750000 51.72 950000 60.31

Current Assets

Current Investment 260000 17.93 200000 12.7

Inventoreis 40000 2.76 75000 4.76

Trade Receivable 375000 25.86 290000 18.41

Cash in hand 10000 0.69 20000 1.27

cash at bank 15000 1.03 40000 2.54

total (B) 700000 48.28 625000 39.68

Total (A+B) 1450000 100 1575000 100

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24..

Sun Club Dharwad

Income and expenditure a/c for the year ended 31/3/2016

Expenditure Rs Income Rs

To salary 26500 By subscription 70000

add: o/s 2000 28500 add: o/s 5000

To telephone charges 6500 75000

To Games expenses 10000 less: received in advance 3000 72000

To Office expenses 10000 By games fees 25000

To Depreciation : By Interest 11000

furniture 3000

Sports material 11500

Buildings 20000

to excess income over expenses 18500

97000 97000

Balance sheet as on at 31-3-2016

Liabiliteis Rs Assets Rs

Tournament fund 30000 Sports materials 20000

less: tournament expenses 20000 10000 less: dep 11500 8500

outstanding salary 2000 Buildings 200000

subscription received in advance 3000 less: dep 20000 180000

Capital fund: Furniture 30000

Life membership fees 40000 less: Dep 3000 27000

Donation 200000 Investments 100000

Entrance fees 100000 Cash 53000

excess income 18500 358500 O/S Subscription 5000

373500 373500

Section D

25. .

Comparative statement of profit &loss of ABC co.

for the year ending 2015 &16

2015 2016 increaseor decrease %

Revenue from operations 600000 750000 150000 25

Other incomes 12000 15000 3000 25

Total (A) 612000 765000 153000 25

less: Expenses(B) 506000 440000 (-)66000 (-)13.04

Profit before tax 106000 325000 219000 206.6

less:Tax 42400 113750 71350 168.28

profit after tax 63600 211250 147650 232.15

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26. .

Dr Machinery a/c cr

Date Particulars Rs. Date Particulars Rs.

01-04-2012 By Bank a/c 50000 31-03-2013 By Depreciation a/c 5000

By balancce c/d 45000

50000

50000

01-04-2013 To Balance b/d 45000 31-03-2014 By depreciation a/c 5000

By Balance c/d 40000

45000 45000

27. .

Dr Partners Current a/c cr

Particulars Bhavi Rakshi Particulars Bhavi Rakshi

To drawings a/c 4000 3000 By interest on capital 2500 2000

To Interest on drawings a/c 250 150 By salary 1500

To Balance c/d 4750 3850 By Profit &Loss app. a/c 5000 5000

9000 7000 9000 7000

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