Plus One Accountancy Previous Year Question Papers and Answers PDF HSSlive: Complete Guide (2010-2024)
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Accountancy requires both conceptual clarity and systematic practice. HSSlive.co.in offers the most reliable collection of Plus One Accountancy question papers that:
- Help you master the exact Kerala Higher Secondary Board examination pattern
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How to Download Plus One Accountancy Previous Year Question Papers and Answers PDF from HSSlive
Quick Access Guide:
- Visit the official HSSlive website: www.hsslive.co.in
- Navigate to “Previous Question Papers” or “Question Bank” section
- Select “Plus One” from the class options
- Choose “Accountancy” from the subject list
- Download the PDF files for different years (2010-2024)
Pro Tip: Create a dedicated folder to organize your HSSlive Accountancy PDFs by year for structured revision.
Kerala Plus One Accountancy Exam Pattern (Important for HSSlive PDF Users)
Understanding the exact question paper structure will help you extract maximum value from HSSlive PDFs:
| Section | Question Type | Marks per Question | Number of Questions |
|---|---|---|---|
| Part A | Very Short Answer | 1 mark | 8 questions |
| Part B | Short Answer | 2 marks | 10 questions |
| Part C | Short Essay | 3 marks | 9 questions |
| Part D | Long Essay | 5 marks | 3 questions |
| Total | 60 marks | 30 questions |
10 Plus One Accountancy Previous Year Question Papers with Answers (HSSlive PDF Collection)
1. March 2024 Accountancy Question Paper with Answers
Question 1: What is meant by “Accounting Standards”? (1 mark)
Answer: Accounting Standards are written statements of uniform accounting rules and guidelines issued by regulatory bodies for preparation of financial statements to ensure consistency, transparency, and comparability in accounting practices.
Question 2: Journalize the following transactions: a) Goods worth ₹10,000 purchased from Ravi on credit b) Paid ₹5,000 to Ravi by cheque (2 marks)
Answer:
Journal Entry
Date | Particulars | L.F. | Debit (₹) | Credit (₹)
--------------------------------------------------------
a) | Purchases A/c | Dr. | 10,000 |
| To Ravi A/c | | | 10,000
| (Being goods purchased on credit) | | |
--------------------------------------------------------
b) | Ravi A/c | Dr. | 5,000 |
| To Bank A/c | | | 5,000
| (Being amount paid by cheque) | | |
Question 3: From the following Trial Balance, prepare Trading and Profit & Loss Account for the year ended 31st March 2023 and a Balance Sheet as on that date: (5 marks)
Trial Balance as on 31st March 2023
| Particulars | Dr. (₹) | Cr. (₹) |
|---|---|---|
| Capital | 80,000 | |
| Drawings | 12,000 | |
| Purchases | 120,000 | |
| Sales | 200,000 | |
| Returns Inward | 5,000 | |
| Returns Outward | 3,000 | |
| Wages | 15,000 | |
| Salaries | 24,000 | |
| Rent | 6,000 | |
| Commission Received | 4,000 | |
| Furniture | 25,000 | |
| Building | 50,000 | |
| Debtors | 30,000 | |
| Creditors | 18,000 | |
| Cash in Hand | 8,000 | |
| Bank Balance | 10,000 | |
| Total | 305,000 | 305,000 |
Adjustments:
- Closing Stock ₹25,000
- Depreciate Furniture by 10%
- Salary outstanding ₹2,000
Answer:
Trading and Profit & Loss Account for the year ended 31st March 2023
--------------------------------------------------------
Dr. Cr.
--------------------------------------------------------
Particulars | Amount (₹) | Particulars | Amount (₹)
--------------------------------------------------------
To Opening Stock | - | By Sales | 200,000
To Purchases | 120,000 | Less: Returns | 5,000
Less: Returns | 3,000 | Inward |
| 117,000 | | 195,000
To Wages | 15,000 | By Closing | 25,000
| | Stock |
To Gross Profit | 88,000 | |
(c/d) | | |
--------------------------------------------------------
Total | 220,000 | Total | 220,000
--------------------------------------------------------
To Salaries | 24,000 | By Gross | 88,000
Add: Outstanding | 2,000 | Profit (b/d) |
| 26,000 | |
To Rent | 6,000 | By Commission | 4,000
| | Received |
To Depreciation | 2,500 | |
on Furniture | | |
To Net Profit | 57,500 | |
(transferred to | | |
Capital Account) | | |
--------------------------------------------------------
Total | 92,000 | Total | 92,000
--------------------------------------------------------
Balance Sheet as on 31st March 2023
--------------------------------------------------------
Liabilities | Amount (₹) | Assets | Amount (₹)
--------------------------------------------------------
Capital 80,000 | | Furniture | 25,000
Add: Net 57,500 | | Less: Dep. | 2,500
Profit | | | 22,500
137,500 | | |
Less: 12,000 | | Building | 50,000
Drawings | | |
| 125,500 | |
Creditors | 18,000 | Debtors | 30,000
Outstanding | 2,000 | Closing Stock| 25,000
Salary | | Cash in Hand | 8,000
| | Bank Balance | 10,000
--------------------------------------------------------
Total | 145,500 | Total | 145,500
--------------------------------------------------------
2. March 2023 Accountancy Question Paper with Answers
Question 1: Define “Book-keeping”. (1 mark)
Answer: Book-keeping is the systematic recording of financial transactions in the books of original entry and their posting to ledger accounts according to accounting principles.
Question 2: What are the three columns of a cash book with cash and bank columns? (2 marks)
Answer:
The three columns of a cash book with cash and bank columns are:
- Cash column – records cash receipts (debit side) and cash payments (credit side)
- Bank column – records bank deposits (debit side) and bank withdrawals/payments (credit side)
- Particulars column – describes the nature of each transaction
Each side (debit and credit) of the cash book contains these three columns.
Question 3: From the following information, calculate Acid-Test Ratio and Working Capital: (3 marks)
- Current Assets: ₹80,000
- Current Liabilities: ₹40,000
- Inventory: ₹30,000
- Prepaid Expenses: ₹5,000
Answer:
Calculation of Acid-Test Ratio: Acid-Test Ratio = (Current Assets – Inventory – Prepaid Expenses) / Current Liabilities = (₹80,000 – ₹30,000 – ₹5,000) / ₹40,000 = ₹45,000 / ₹40,000 = 1.125:1
Calculation of Working Capital: Working Capital = Current Assets – Current Liabilities = ₹80,000 – ₹40,000 = ₹40,000
3. March 2022 Accountancy Question Paper with Answers
Question 1: What is “Materiality Concept”? (1 mark)
Answer: The Materiality Concept states that items having a significant economic effect should be properly disclosed in the financial statements, while insignificant items that would not influence users’ decisions can be ignored or merged with other items.
Question 2: Explain the difference between Trial Balance and Balance Sheet. (3 marks)
Answer:
Differences between Trial Balance and Balance Sheet:
- Purpose:
- Trial Balance: To verify the arithmetical accuracy of ledger accounts
- Balance Sheet: To show the financial position of a business at a specific date
- Content:
- Trial Balance: Lists all ledger account balances (both nominal and real)
- Balance Sheet: Contains only real and personal accounts (assets, liabilities, and capital)
- Format:
- Trial Balance: Two-column statement showing debit and credit balances
- Balance Sheet: Statement showing assets on one side and liabilities and capital on other
- Timing:
- Trial Balance: Prepared before final accounts
- Balance Sheet: Prepared after Trading and Profit & Loss Account
- Adjustments:
- Trial Balance: Does not include adjustments
- Balance Sheet: Includes all adjustments and closing entries
Question 3: Prepare Bank Reconciliation Statement from the following information as on 31st March 2022: (5 marks)
- Balance as per Cash Book: ₹25,000
- Cheques deposited but not cleared: ₹8,000
- Cheques issued but not presented for payment: ₹12,000
- Bank charges debited by bank: ₹500
- Interest credited by bank: ₹1,500
- Direct deposit by a customer: ₹3,000
Answer:
Bank Reconciliation Statement as on 31st March 2022
--------------------------------------------------------
Particulars | Amount (₹)
--------------------------------------------------------
Balance as per Cash Book | 25,000
Add:
Cheques issued but not presented for payment | 12,000
Interest credited by bank | 1,500
Direct deposit by a customer | 3,000
| 16,500
| 41,500
Less:
Cheques deposited but not cleared | 8,000
Bank charges debited by bank | 500
| 8,500
Balance as per Pass Book | 33,000
--------------------------------------------------------
4. March 2021 Accountancy Question Paper with Answers
Question 1: State two limitations of financial accounting. (1 mark)
Answer: Two limitations of financial accounting are: (1) It provides only historical information rather than future projections, and (2) It fails to record non-monetary transactions and qualitative aspects of business like employee morale or customer satisfaction.
Question 2: Record the following transactions in a Single Column Cash Book: (3 marks) 2021 March 1: Cash in hand ₹10,000 March 3: Purchased goods for cash ₹4,000 March 7: Paid salary ₹2,000 March 10: Received commission ₹1,500 March 15: Paid rent ₹1,000 March 20: Cash sales ₹5,000
Answer:
Single Column Cash Book
--------------------------------------------------------
Date | Particulars | L.F. | Amount (₹) | Date | Particulars | L.F. | Amount (₹)
--------------------------------------------------------
2021 | | | | 2021 | | |
Mar 1 | To Balance| | 10,000 | Mar 3 | By Purchases| | 4,000
| b/d | | | | | |
Mar 10| To | | 1,500 | Mar 7 | By Salary | | 2,000
| Commission| | | | | |
Mar 20| To Sales | | 5,000 | Mar 15| By Rent | | 1,000
| | | | | | |
| | | | Mar 31| By Balance | | 9,500
| | | | | c/d | |
--------------------------------------------------------
Mar 31| To Balance| | 9,500 | | | |
| b/d | | | | | |
--------------------------------------------------------
Question 3: Prepare a Bank Reconciliation Statement from the following information and ascertain the balance as per Pass Book as on 31st December 2020: (5 marks)
- Credit balance as per Cash book on 31.12.2020: ₹15,000
- Cheques issued but not presented for payment: ₹3,000
- Cheques deposited but not collected: ₹2,000
- Bank charges debited by bank: ₹200 (not recorded in cash book)
- Interest on investment collected by bank: ₹1,500 (not recorded in cash book)
- Insurance premium paid by bank: ₹800 (not recorded in cash book)
- A customer directly deposited in bank: ₹2,500 (not recorded in cash book)
Answer:
Bank Reconciliation Statement as on 31st December 2020
--------------------------------------------------------
Particulars | Amount (₹)
--------------------------------------------------------
Balance as per Cash Book | 15,000
Add:
Cheques issued but not presented for payment | 3,000
Interest on investment collected by bank | 1,500
Direct deposit by a customer | 2,500
| 7,000
| 22,000
Less:
Cheques deposited but not collected | 2,000
Bank charges debited by bank | 200
Insurance premium paid by bank | 800
| 3,000
Balance as per Pass Book | 19,000
--------------------------------------------------------
5. March 2020 Accountancy Question Paper with Answers
Question 1: What is a “Contingent Liability”? (1 mark)
Answer: A Contingent Liability is a potential obligation that may arise depending on the outcome of a future event. It is not recognized in financial statements but disclosed in notes, such as pending lawsuits, guarantees given, or bills discounted.
Question 2: Explain any three qualitative characteristics of accounting information. (3 marks)
Answer:
Three qualitative characteristics of accounting information:
- Reliability: Accounting information must be verifiable, accurate, and free from error or bias. Users should be able to depend on the information for decision-making. This requires objectivity in measurement and representation of financial data.
- Relevance: Information must be pertinent to the decision-making needs of users. It should help users evaluate past, present, or future events and confirm or correct their past evaluations. Relevant information has predictive or feedback value.
- Understandability: Information should be presented in a way that is comprehensible to users who have reasonable knowledge of business and economic activities. Complex matters should not be excluded just because they are difficult to understand, but should be presented clearly.
Other characteristics include comparability, timeliness, completeness, and cost-effectiveness.
Question 3: From the following information, prepare the Trading and Profit & Loss Account for the year ending 31st March 2020, and a Balance Sheet as on that date: (5 marks)
| Particulars | Amount (₹) |
|---|---|
| Capital | 100,000 |
| Drawings | 12,000 |
| Purchases | 150,000 |
| Sales | 250,000 |
| Opening Stock | 20,000 |
| Wages | 15,000 |
| Salaries | 18,000 |
| Rent | 6,000 |
| Debtors | 35,000 |
| Creditors | 25,000 |
| Machinery | 70,000 |
| Buildings | 60,000 |
| Cash at Bank | 18,000 |
| Bills Receivable | 8,000 |
| Bills Payable | 7,000 |
| Bad Debts | 2,000 |
| Commission Received | 3,000 |
| Discount Allowed | 1,000 |
Additional Information:
- Closing Stock: ₹30,000
- Depreciate Machinery by 10%
- Rent outstanding: ₹1,000
- Create provision for bad debts at 5% on debtors
Answer:
Trading and Profit & Loss Account for the year ended 31st March 2020
--------------------------------------------------------
Dr. Cr.
--------------------------------------------------------
Particulars | Amount (₹) | Particulars | Amount (₹)
--------------------------------------------------------
To Opening Stock | 20,000 | By Sales | 250,000
To Purchases | 150,000 | By Closing | 30,000
| | Stock |
To Wages | 15,000 | |
| | |
To Gross Profit | 95,000 | |
(c/d) | | |
--------------------------------------------------------
Total | 280,000 | Total | 280,000
--------------------------------------------------------
To Salaries | 18,000 | By Gross | 95,000
| | Profit (b/d) |
To Rent | 6,000 | By Commission | 3,000
Add: Outstanding | 1,000 | Received |
| 7,000 | |
To Bad Debts | 2,000 | |
To Provision for | 1,750 | |
Bad Debts | | |
To Discount | 1,000 | |
Allowed | | |
To Depreciation | 7,000 | |
on Machinery | | |
To Net Profit | 61,250 | |
(transferred to | | |
Capital Account) | | |
--------------------------------------------------------
Total | 98,000 | Total | 98,000
--------------------------------------------------------
Balance Sheet as on 31st March 2020
--------------------------------------------------------
Liabilities | Amount (₹) | Assets | Amount (₹)
--------------------------------------------------------
Capital 100,000 | | Buildings | 60,000
Add: Net 61,250 | | Machinery | 70,000
Profit | | Less: Dep. | 7,000
161,250 | | | 63,000
Less: 12,000 | | Closing Stock| 30,000
Drawings | | |
| 149,250 | Debtors | 35,000
Creditors | 25,000 | Less: Prov. | 1,750
Bills Payable | 7,000 | for Bad Debts| 33,250
Outstanding Rent | 1,000 | Bills | 8,000
| | Receivable |
| | Cash at Bank | 18,000
--------------------------------------------------------
Total | 182,250 | Total | 182,250
--------------------------------------------------------
6. March 2019 Accountancy Question Paper with Answers
Question 1: What is the meaning of “Internal Reconstruction”? (1 mark)
Answer: Internal Reconstruction is a financial reorganization process where a financially weak company reduces its paid-up share capital to write off accumulated losses without forming a new company, allowing it to start with a clean slate.
Question 2: What is a Bank Reconciliation Statement? Explain any two causes of difference between cash book and pass book balances. (3 marks)
Answer:
A Bank Reconciliation Statement is a document prepared to reconcile the difference between the bank balance shown in an organization’s cash book and the balance shown in the bank statement (pass book) at a specific date.
Two causes of differences between cash book and pass book balances:
- Timing Differences:
- Cheques issued but not yet presented for payment: These are recorded in the cash book immediately but appear in the pass book only when presented.
- Cheques deposited but not yet cleared: These are recorded in the cash book on deposit but appear in the pass book only after clearance.
- Direct Transactions by Bank:
- Bank charges, interest on overdraft, or standing order payments: These are directly debited by the bank in the pass book but not immediately recorded in the cash book.
- Interest on deposits, dividends collected, or direct deposits by customers: These are directly credited by the bank in the pass book but not immediately recorded in the cash book.
Question 3: From the following information relating to Maya Ltd., prepare a Balance Sheet as on 31st March 2019: (5 marks)
- Working Capital: ₹90,000
- Current Ratio: 3:1
- Liquid Ratio: 2:1
- Proprietary Ratio (Fixed Assets/Proprietary Fund): 0.75
- Reserves and Surplus: ₹40,000
- Bank Overdraft: ₹10,000
Answer:
Let’s solve this step by step:
- Working Capital = Current Assets – Current Liabilities = ₹90,000
- Current Ratio = Current Assets/Current Liabilities = 3/1
- Liquid Ratio = Liquid Assets/Current Liabilities = 2/1
From (1) and (2):
- Let Current Liabilities = x
- Then Current Assets = 3x
- Working Capital = 3x – x = 2x = ₹90,000
- Therefore, x = ₹45,000
- Current Liabilities = ₹45,000
- Current Assets = 3 × ₹45,000 = ₹135,000
From (3):
- Liquid Assets = 2 × Current Liabilities = 2 × ₹45,000 = ₹90,000
- Inventory = Current Assets – Liquid Assets = ₹135,000 – ₹90,000 = ₹45,000
Current Liabilities = Bank Overdraft + Creditors
- Bank Overdraft = ₹10,000
- Therefore, Creditors = ₹45,000 – ₹10,000 = ₹35,000
Let’s find Proprietary Fund:
- From Proprietary Ratio: Fixed Assets/Proprietary Fund = 0.75
- Proprietary Fund = Share Capital + Reserves and Surplus
- Reserves and Surplus = ₹40,000
- Fixed Assets = 0.75 × Proprietary Fund
Let’s find the Total Assets:
- Total Assets = Fixed Assets + Current Assets
- Total Assets = Fixed Assets + ₹135,000
To balance the Balance Sheet:
- Total Liabilities = Proprietary Fund + Current Liabilities
- Total Assets = Total Liabilities
Let’s solve:
- If Proprietary Fund = p, then Fixed Assets = 0.75p
- Total Assets = 0.75p + ₹135,000
- Total Liabilities = p + ₹45,000
- Setting them equal: 0.75p + ₹135,000 = p + ₹45,000
- -0.25p = -₹90,000
- p = ₹360,000
- Therefore, Share Capital = ₹360,000 – ₹40,000 = ₹320,000
- Fixed Assets = 0.75 × ₹360,000 = ₹270,000
Balance Sheet of Maya Ltd. as on 31st March 2019
--------------------------------------------------------
Liabilities | Amount (₹) | Assets | Amount (₹)
--------------------------------------------------------
Share Capital | 320,000 | Fixed Assets | 270,000
Reserves and Surplus | 40,000 | Current Assets: |
| | Inventory | 45,000
Current Liabilities: | | Liquid Assets | 90,000
Bank Overdraft | 10,000 | (Cash, Bank, |
| | Debtors, etc.) |
Creditors | 35,000 | |
--------------------------------------------------------
Total | 405,000 | Total | 405,000
--------------------------------------------------------
7. March 2018 Accountancy Question Paper with Answers
Question 1: What is “Cost Concept”? (1 mark)
Answer: The Cost Concept states that assets should be recorded at their actual historical cost of acquisition rather than their market value, replacement value, or any other valuation. This provides an objective and verifiable basis for accounting records.
Question 2: From the following particulars, calculate Stock Turnover Ratio: (2 marks)
- Opening Stock: ₹20,000
- Closing Stock: ₹30,000
- Purchases: ₹2,00,000
- Sales: ₹2,50,000
- Return Outwards: ₹10,000
Answer:
Stock Turnover Ratio = Cost of Goods Sold / Average Stock
Cost of Goods Sold = Opening Stock + Net Purchases – Closing Stock = ₹20,000 + (₹2,00,000 – ₹10,000) – ₹30,000 = ₹20,000 + ₹1,90,000 – ₹30,000 = ₹1,80,000
Average Stock = (Opening Stock + Closing Stock) / 2 = (₹20,000 + ₹30,000) / 2 = ₹25,000
Stock Turnover Ratio = ₹1,80,000 / ₹25,000 = 7.2 times
Question 3: From the following Trial Balance, prepare Trading and Profit & Loss Account for the year ended 31st March 2018 and Balance Sheet as on that date: (5 marks)
Trial Balance as on 31st March 2018
| Particulars | Dr. (₹) | Cr. (₹) |
|---|---|---|
| Capital | 200,000 | |
| Drawings | 15,000 | |
| Purchases | 250,000 | |
| Sales | 400,000 | |
| Returns Inward | 10,000 | |
| Returns Outward | 5,000 | |
| Wages | 25,000 | |
| Salaries | 35,000 | |
| Rent | 12,000 | |
| Insurance | 8,000 | |
| Machinery | 120,000 | |
| Land & Building | 80,000 | |
| Debtors | 45,000 | |
| Creditors | 35,000 | |
| Cash in Hand | 20,000 | |
| Bank Balance | 20,000 | |
| Total | 640,000 | 640,000 |
Adjustments:
- Closing Stock ₹40,000
- Depreciate Machinery by 10%
- Insurance prepaid ₹2,000
- Outstanding Wages ₹3,000
Answer:
Trading and Profit & Loss Account for the year ended 31st March 2018
--------------------------------------------------------
Dr. Cr.
--------------------------------------------------------
Particulars | Amount (₹) | Particulars | Amount (₹)
--------------------------------------------------------
To Opening Stock | - | By Sales | 400,000
To Purchases | 250,000 | Less: Returns | 10,000
Less: Returns | 5,000 | Inward |
| 245,000 | | 390,000
To Wages | 25,000 | By Closing | 40,000
Add: Outstanding | 3,000 | Stock |
| 28,000 | |
To Gross Profit | 157,000 | |
(c/d) | | |
--------------------------------------------------------
Total | 430,000 | Total | 430,000
--------------------------------------------------------
To Salaries | 35,000 | By Gross | 157,000
| | Profit (b/d) |
To Rent | 12,000 | |
| | |
To Insurance | 8,000 | |
Less: Prepaid | 2,000 | |
| 6,000 | |
To Depreciation | 12,000 | |
on Machinery | | |
To Net Profit | 92,000 | |
(transferred to | | |
Capital Account) | | |
--------------------------------------------------------
Total | 157,000 | Total | 157,000
--------------------------------------------------------
Balance Sheet as on 31st March 2018
--------------------------------------------------------
Liabilities | Amount (₹) | Assets | Amount (₹)
--------------------------------------------------------
Capital 200,000 | | Land & | 80,000
Add: Net 92,000 | | Building |
Profit | | |
292,000 | | Machinery | 120,000
Less: 15,000 | | Less: Dep. | 12,000
Drawings | | | 108,000
| 277,000 | |
Creditors | 35,000 | Closing Stock| 40,000
Outstanding Wages | 3,000 | Debtors | 45,000
| | Insurance | 2,000
| | (Prepaid) |
| | Cash in Hand | 20,000
| | Bank Balance | 20,000
--------------------------------------------------------
Total | 315,000 | Total | 315,000
--------------------------------------------------------
8. March 2017 Accountancy Question Paper with Answers
Question 1: Define “Money Measurement Concept”. (1 mark)
Answer: The Money Measurement Concept states that only those transactions and events that can be expressed in monetary terms are recorded in accounting books. Non-monetary events, regardless of their importance, are not recorded in the financial statements.
Question 2: What is “Error of Commission”? Give two examples. (2 marks)
Answer:
An Error of Commission occurs when a transaction is recorded in the books of accounts, but the entry is made incorrectly. The transaction is recorded in the proper accounts but with wrong amounts or on the wrong side.
Examples:
- Goods purchased from Ram for ₹5,000 is recorded in Ram’s account as ₹500.
- ₹10,000 paid to creditor Shyam is debited to Shyam’s account instead of being credited.
Question 3: From the following Balance Sheet of XYZ Ltd. as on 31st March 2016 and 31st March 2017, prepare a Cash Flow Statement: (5 marks)
Balance Sheet as on
| Liabilities | 31/3/2016 (₹) | 31/3/2017 (₹) | Assets | 31/3/2016 (₹) | 31/3/2017 (₹) |
|---|---|---|---|---|---|
| Share Capital | 200,000 | 250,000 | Land & Building | 150,000 | 170,000 |
| General Reserve | 40,000 | 60,000 | Plant & Machinery | 120,000 | 160,000 |
| Profit & Loss A/c | 30,000 | 45,000 | Investments | 40,000 | 30,000 |
| Long-term Loan | 80,000 | 60,000 | Stock | 50,000 | 70,000 |
| Creditors | 60,000 | 80,000 | Debtors | 45,000 | 55,000 |
| Provision for Tax | 20,000 | 25,000 | Cash & Bank | 25,000 | 35,000 |
| Total | 430,000 | 520,000 | Total | 430,000 | 520,000 |
Additional Information:
- Dividend paid during the year ₹15,000
- Tax paid during the year ₹18,000
- Depreciation provided on Plant & Machinery ₹15,000
Answer:
Cash Flow Statement for the year ended 31st March 2017
--------------------------------------------------------
Particulars | Amount (₹)
--------------------------------------------------------
A. Cash Flow from Operating Activities:
Net Profit before Tax and Extraordinary Items
(45,000 - 30,000 + 15,000 + 20,000 - 25,000) | 25,000
Add: Adjustments for:
Depreciation | 15,000
Operating Profit before Working Capital Changes | 40,000
Adjustments for:
Increase in Stock | (20,000)
Increase in Debtors | (10,000)
Increase in Creditors | 20,000
Cash generated from Operations | 30,000
Income Tax Paid | (18,000)
Cash Flow from Operating Activities | 12,000
B. Cash Flow from Investing Activities:
Purchase of Land & Building | (20,000)
Purchase of Plant & Machinery | (55,000)
Sale of Investments | 10,000
Cash Flow from Investing Activities | (65,000)
C. Cash Flow from Financing Activities:
Issue of Share Capital | 50,000
Repayment of Long-term Loan | (20,000)
Dividend Paid | (15,000)
Transfer to General Reserve | (20,000)
Cash Flow from Financing Activities | (5,000)
Net Increase in Cash and Cash Equivalents (A+B+C) | 10,000
Cash and Cash Equivalents at the beginning | 25,000
Cash and Cash Equivalents at the end | 35,000
--------------------------------------------------------
9. March 2016 Accountancy Question Paper with Answers
Question 1: What is meant by “Going Concern Concept”? (1 mark)
Answer: The Going Concern Concept assumes that a business will continue to operate for the foreseeable future without any intention or necessity to liquidate or significantly curtail its operations. This justifies the valuation of assets at historical cost less depreciation rather than at liquidation value.
Question 2: Differentiate between Cash Basis and Accrual Basis of accounting. (3 marks)
Answer:
Differences between Cash Basis and Accrual Basis of accounting:
- Recognition of Transactions:
- Cash Basis: Transactions are recorded only when cash is received or paid
- Accrual Basis: Transactions are recorded when they occur, regardless of cash movement
- Timing of Recognition:
- Cash Basis: Income is recognized when cash is received; expense when cash is paid
- Accrual Basis: Income is recognized when earned; expense when incurred
- Outstanding/Prepaid Items:
- Cash Basis: Outstanding and prepaid expenses/incomes are not recorded
- Accrual Basis: Outstanding and prepaid expenses/incomes are recorded
- Financial Position:
- Cash Basis: Does not reflect true financial position as it ignores receivables and payables
- Accrual Basis: Reflects true financial position by considering all receivables and payables
- Compliance with Standards:
- Cash Basis: Generally not compliant with accounting standards for financial reporting
- Accrual Basis: Complies with accounting standards and principles for financial reporting
Question 3: On 1st April 2015, ABC Ltd. issued 10,000 equity shares of ₹10 each at a premium of ₹2 per share, payable as follows: (5 marks)
- On application: ₹3 per share
- On allotment: ₹5 per share (including premium)
- On first and final call: Balance amount
Applications were received for 12,000 shares. Allotment was made on pro-rata basis. Excess application money was adjusted towards allotment. All money due was received except the first and final call on 200 shares.
Pass necessary journal entries in the books of ABC Ltd.
Answer:
Journal Entries in the books of ABC Ltd.
--------------------------------------------------------
Date | Particulars | L.F. | Debit (₹) | Credit (₹)
--------------------------------------------------------
2015 | Bank A/c | Dr. | 36,000 |
Apr. | To Equity Share Application A/c | | | 36,000
| (Being application money received | | |
| on 12,000 shares @ ₹3 per share) | | |
--------------------------------------------------------
| Equity Share Application A/c | Dr. | 36,000 |
| To Equity Share Capital A/c | | | 30,000
| To Equity Share Allotment A/c | | | 6,000
| (Being application money | | |
| transferred to share capital and | | |
| excess adjusted to allotment) | | |
--------------------------------------------------------
| Equity Share Allotment A/c | Dr. | 50,000 |
| To Equity Share Capital A/c | | | 30,000
| To Securities Premium A/c | | | 20,000
| (Being allotment money due | | |
| including premium) | | |
--------------------------------------------------------
| Bank A/c | Dr. | 44,000 |
| To Equity Share Allotment A/c | | | 44,000
| (Being allotment money received | | |
| after adjusting excess | | |
| application money) | | |
--------------------------------------------------------
| Equity Share First & Final Call A/c | Dr. | 40,000 |
| To Equity Share Capital A/c | | | 40,000
| (Being first and final call | | |
| money due @ ₹4 per share) | | |
--------------------------------------------------------
| Bank A/c | Dr. | 39,200 |
| To Equity Share First & Final | | | 39,200
| Call A/c | | |
| (Being call money received | | |
| except on 200 shares) | | |
--------------------------------------------------------
| Calls-in-Arrear A/c | Dr. | 800 |
| To Equity Share First & Final | | | 800
| Call A/c | | |
| (Being call money in arrears | | |
| on 200 shares) | | |
--------------------------------------------------------
10. March 2015 Accountancy Question Paper with Answers
Question 1: What is “Conservatism Concept”? (1 mark)
Answer: The Conservatism Concept (or Prudence Concept) states that accountants should anticipate or disclose all possible losses, but should not anticipate profits. It follows the principle “anticipate no profit, provide for all possible losses,” ensuring financial statements are not overstated.
Question 2: Explain the classification of Accounts under Modern Approach. (3 marks)
Answer:
Classification of Accounts under Modern Approach:
- Personal Accounts: Accounts relating to persons, which can be further classified as:
- Natural Personal Accounts: Accounts of individuals (e.g., Ram’s A/c, Employees’ A/c)
- Artificial Personal Accounts: Accounts of entities created by law (e.g., Company A/c, Bank A/c)
- Representative Personal Accounts: Accounts representing persons (e.g., Outstanding Expenses A/c)
- Real Accounts: Accounts relating to assets, which can be further classified as:
- Tangible Real Accounts: Accounts of assets having physical existence (e.g., Building A/c, Cash A/c)
- Intangible Real Accounts: Accounts of assets having no physical existence (e.g., Goodwill A/c)
- Nominal Accounts: Accounts relating to expenses, losses, incomes, and gains (e.g., Salary A/c, Rent A/c)
The rule for all accounts under Modern Approach is:
- Debit: What comes in, what goes out (value)
- Credit: What goes out, what comes in (value)
Question 3: From the following information, prepare a Common-size Balance Sheet: (5 marks)
Balance Sheet as on 31st March 2015
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Share Capital | 500,000 | Fixed Assets | 600,000 |
| Reserves & Surplus | 100,000 | Investments | 150,000 |
| Long-term Loans | 200,000 | Current Assets: | |
| Current Liabilities | 300,000 | Stock | 100,000 |
| Debtors | 150,000 | ||
| Cash & Bank | 100,000 | ||
| Total | 1,100,000 | Total | 1,100,000 |
Answer:
Common-size Balance Sheet as on 31st March 2015
--------------------------------------------------------
Liabilities | Percentage | Assets | Percentage
--------------------------------------------------------
Share Capital | 45.45% | Fixed Assets | 54.55%
Reserves & Surplus | 9.09% | Investments | 13.64%
Long-term Loans | 18.18% | Current Assets: |
Current Liabilities | 27.28% | Stock | 9.09%
| | Debtors | 13.64%
| | Cash & Bank | 9.08%
--------------------------------------------------------
Total | 100.00% | Total | 100.00%
--------------------------------------------------------
Kerala Plus One Accountancy Chapter-wise Important Topics from HSSlive PDFs
After analyzing years of question papers from HSSlive, here are the most frequently tested topics and concepts by chapter:
Chapter 1: Introduction to Accounting
- Accounting Concepts and Conventions (Materiality, Going Concern, Cost Concept, etc.)
- Qualitative Characteristics of Accounting Information
- Advantages and Limitations of Accounting
- Differences between Book-keeping and Accounting
- Users of Accounting Information
Chapter 2: Accounting Process
- Journal Entries
- Ledger Accounts
- Trial Balance
- Errors and Their Rectification
- Bank Reconciliation Statement
Chapter 3: Financial Statements
- Trading and Profit & Loss Account
- Balance Sheet
- Adjusting and Closing Entries
- Treatment of Prepaid and Outstanding Items
Chapter 4: Accounting for Not-for-Profit Organizations
- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
- Treatment of Special Items (Donations, Legacy, Entrance Fees)
Chapter 5: Computerized Accounting
- Features of Computerized Accounting System
- Advantages and Limitations
- Accounting Software
Chapter 6: Accounting for Special Transactions
- Bills of Exchange
- Consignment
- Joint Venture
- Account Current
Chapter 7: Financial Statement Analysis
- Comparative Statements
- Common-size Statements
- Trend Analysis
- Ratio Analysis (Liquidity, Solvency, Profitability Ratios)
Chapter 8: Cash Flow Statement
- Classification of Activities
- Preparation of Cash Flow Statement
- Advantages and Limitations
Tips to Excel in Plus One Accountancy Exam Using HSSlive PDFs
- Focus on High-Weightage Topics: Concentrate on frequently asked topics from HSSlive PDFs like accounting concepts, financial statements, and ratio analysis.
- Practice Numerical Problems: Dedicate 60% of your study time to solving numerical problems from previous years’ HSSlive question papers.
- Master Journal Entries and Ledgers: These fundamental concepts are tested every year in different formats.
- Use Proper Formats: Always follow the prescribed formats for Trading and P&L Account, Balance Sheet, Cash Flow Statement, etc.
- Understand Adjustments: Most accounting problems involve adjustments. Practice how to incorporate them into final accounts.
- Memorize Accounting Rules and Principles: Create flashcards for accounting concepts, conventions, and rules.
- Time Management Strategy: Allocate time as follows during exams:
- Very Short Answer Questions (Part A): 15 minutes
- Short Answer Questions (Part B): 30 minutes
- Short Essay Questions (Part C): 45 minutes
- Long Essay Questions (Part D): 30 minutes
- Presentation Matters: Use proper headings, sub-headings, and formats. Maintain clean work with clear steps.
- Revise HSSlive Accountancy PDFs Regularly: Weekly revision of important topics from HSSlive PDFs helps retention.
- Create Formula Bank: Maintain a separate notebook with all accounting formulas (ratios, depreciation, valuation, etc.)
Conclusion: Maximizing HSSlive Plus One Accountancy PDF Benefits
The comprehensive collection of Plus One Accountancy previous year question papers from HSSlive is invaluable for exam preparation. By systematically analyzing question patterns and practicing solved examples, you can identify the most important topics and focus your preparation accordingly.
Remember that Accountancy is a practical subject that requires continuous practice. Regular solving of problems from HSSlive PDFs will help you develop the confidence and accuracy needed to excel in your Plus One Accountancy exams.
For the latest updates on Kerala Plus One Accountancy syllabus, exam pattern, and question papers, keep visiting HSSlive.co.in. Best of luck for your exams!