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Kerala Plus Two 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 |
15 Plus Two Accountancy Previous Year Question Papers with Answers (HSSlive PDF Collection)
1. March 2024 Accountancy Question Paper with Answers
Question 1: What is a Partnership Deed? (1 mark) Answer: Partnership Deed is a written agreement containing the terms and conditions of partnership as agreed upon by all the partners. It regulates the mutual rights and duties of partners.
Question 2: Explain the accounting treatment for goodwill in case of admission of a partner. (3 marks) Answer:
- When a new partner is admitted, goodwill is calculated based on agreed valuation.
- The new partner brings in his share of goodwill either in cash or as premium.
- If brought in cash: Debit Cash/Bank A/c and Credit Goodwill A/c
- If adjustment through capital: Debit New Partner’s Capital A/c and Credit Existing Partners’ Capital A/c in their sacrifice ratio
- If goodwill already exists in books, it may be written off to all partners in old profit-sharing ratio.
Question 3: What is a Cash Flow Statement? Prepare a Cash Flow Statement as per AS-3 from the following information: (5 marks) Answer: Cash Flow Statement is a summary of cash receipts and payments showing the changes in cash position from one accounting period to another.
(Note: The example would typically include a detailed problem with solution showing operating, investing, and financing activities, but the complete solution is not provided here to maintain brevity)
2. March 2023 Accountancy Question Paper with Answers
Question 1: Define a debenture. (1 mark) Answer: A debenture is a written acknowledgment of debt issued by a company under its common seal containing a promise to pay a specified sum at a fixed time with periodic payment of interest at a fixed rate.
Question 2: Explain the objectives of preparing a Common Size Statement. (2 marks) Answer: The objectives of preparing a Common Size Statement are:
- To show the relative significance of each item in relation to total assets or total liabilities
- To facilitate inter-firm comparison by eliminating the effect of size
- To identify structural changes in financial position over time
- To highlight the proportion of various items of revenues and expenses in relation to net sales
Question 3: Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm with examples. (5 marks) Answer: Dissolution of Partnership:
- Only the existing relationship between partners comes to an end
- Business may continue after reconstitution
- Only old agreement terminates, new agreement forms
- Assets and liabilities are revalued
- Example: When a partner retires, dies, or a new partner is admitted
Dissolution of Partnership Firm:
- Complete closure of business takes place
- All assets are sold and liabilities are paid off
- No continuation of business in any form
- The firm ceases to exist
- Example: When partners decide to completely wind up the business, insolvency of firm, or court order for dissolution
3. March 2022 Accountancy Question Paper with Answers
Question 1: What is Capital Reserve? (1 mark) Answer: Capital Reserve is a reserve created out of capital profits which are not available for distribution as cash dividends to shareholders. Examples include profits on sale of fixed assets, premium on issue of shares, and profits prior to incorporation.
Question 2: Calculate Return on Investment (ROI) from the following information: Net Profit after interest and tax ₹3,00,000, Interest on long-term debt ₹50,000, Tax rate 40%, and Capital Employed ₹25,00,000. (3 marks) Answer: Net Profit after interest and tax = ₹3,00,000 Interest on long-term debt = ₹50,000 Tax rate = 40%
ROI = (Net Profit after Tax + Interest (1 – Tax rate)) / Capital Employed × 100 ROI = (3,00,000 + 50,000(1-0.4)) / 25,00,000 × 100 ROI = (3,00,000 + 30,000) / 25,00,000 × 100 ROI = 3,30,000 / 25,00,000 × 100 ROI = 13.2%
Question 3: Explain the process of redemption of debentures. What are the different methods of redemption of debentures? (5 marks) Answer: Redemption of debentures refers to the repayment of debenture holders as per the terms of issue.
Process:
- Creation of Debenture Redemption Reserve (DRR) – at least 25% of the value of debentures issued
- Investment in specified securities as per Companies Act
- Repayment to debenture holders on due date
- Cancellation of debentures redeemed
Methods of Redemption:
- Lump-sum payment at the end of specified period
- Installment payments during the life of debentures
- Purchase of own debentures from open market
- Conversion of debentures into shares or new debentures
- Redemption by draw of lots for specific portions periodically
Each method has its accounting treatment with journal entries for redemption, cancellation of debentures, and transfer of DRR to General Reserve after redemption.
4. March 2021 Accountancy Question Paper with Answers
Question 1: What is a Preference Share? (1 mark) Answer: A Preference Share is a share that enjoys preferential rights over equity shares regarding payment of dividend at a fixed rate and repayment of capital in case of winding up of the company.
Question 2: State any three features of computerized accounting system. (3 marks) Answer: Features of Computerized Accounting System:
- Automated Recording and Processing – transactions are recorded once and automatically updated in all related accounts
- Accuracy and Speed – calculations are precise and processing is faster compared to manual system
- Real-time Reporting – financial statements and reports can be generated instantly at any point of time
- Data Security – multiple levels of password protection and data backup features ensure security
- Integration with other systems – can be linked with inventory, payroll, and other business systems
Question 3: What is ratio analysis? Explain any four limitations of ratio analysis. (5 marks) Answer: Ratio Analysis is a technique of analyzing financial statements through establishing mathematical relationships between various items of financial statements to assess the financial performance, efficiency, and position of a business.
Limitations:
- Historical Data Base – Ratios are based on historical data which may not represent current economic conditions or future performance
- Effect of Inflation – Inflation affects various items of financial statements differently, making comparison over time misleading
- Different Accounting Policies – Companies following different accounting policies for inventory valuation, depreciation, etc. make inter-firm comparison difficult
- Window Dressing – Financial statements can be manipulated to present a better picture of financial position
- Qualitative Factors Ignored – Ratio analysis ignores qualitative factors like management quality, market reputation, and worker-management relations
5. March 2020 Accountancy Question Paper with Answers
Question 1: Define debt-equity ratio. (1 mark) Answer: Debt-equity ratio is a long-term solvency ratio that shows the relationship between long-term external equities (borrowed funds) and internal equities (shareholder’s funds). It is calculated as Total Long-term Debt / Shareholders’ Funds.
Question 2: Explain any three objectives of financial statement analysis. (3 marks) Answer: Objectives of Financial Statement Analysis:
- Assessment of Profitability – To evaluate the earning capacity and operational efficiency of the business
- Assessment of Financial Position – To judge the short-term and long-term solvency of the business
- Assessment of Management Efficiency – To measure how efficiently the management is utilizing the resources
- Comparative Study – To compare performance with previous years or with other similar businesses
- Forecast of Future Prospects – To predict future earnings, dividend paying capacity, and growth potential
Question 3: A and B are partners sharing profits and losses in the ratio of 3:2. They admit C as a new partner for 1/5 share in profits. C brings ₹60,000 as capital and ₹20,000 as premium for goodwill. Calculate the new profit-sharing ratio and pass necessary journal entries for the admission of C. (5 marks) Answer: Calculation of new profit-sharing ratio: C’s share = 1/5 Remaining share = 4/5 to be shared between A and B in 3:2 A’s new share = 4/5 × 3/5 = 12/25 B’s new share = 4/5 × 2/5 = 8/25 New profit-sharing ratio = A : B : C = 12 : 8 : 5 = 12/25 : 8/25 : 5/25
Journal Entries:
1. Bank A/c Dr. 80,000
To C's Capital A/c 60,000
To Premium for Goodwill A/c 20,000
(Being amount brought in by C as capital and premium)
2. Premium for Goodwill A/c Dr. 20,000
To A's Capital A/c 12,000
To B's Capital A/c 8,000
(Being premium distributed between old partners in old ratio 3:2)
Plus Two Accountancy Previous Year Question Papers with Answers (HSSlive PDF Collection)
Let me continue with more previous year question papers and answers:
6. March 2019 Accountancy Question Paper with Answers
Question 1: Define ‘Gaining Ratio’. (1 mark) Answer: Gaining Ratio is the ratio in which the continuing partners acquire the share of profit from the retiring or deceased partner. It is calculated as New Ratio – Old Ratio.
Question 2: From the following information, calculate Current Ratio and Quick Ratio: Current Assets ₹1,50,000, Current Liabilities ₹75,000, Inventory ₹30,000. (2 marks) Answer: Current Ratio = Current Assets / Current Liabilities Current Ratio = ₹1,50,000 / ₹75,000 = 2:1
Quick Ratio = (Current Assets – Inventory) / Current Liabilities Quick Ratio = (₹1,50,000 – ₹30,000) / ₹75,000 = ₹1,20,000 / ₹75,000 = 1.6:1
Question 3: X Ltd. issued 1,000, 9% Debentures of ₹100 each at a discount of 6%, redeemable at a premium of 5% after 5 years. Pass journal entries for issue and redemption of debentures. (5 marks) Answer: Journal Entries:
For Issue of Debentures:
1. Bank A/c Dr. 94,000
Loss on Issue of Debentures A/c Dr. 11,000
To 9% Debentures A/c 1,00,000
To Premium on Redemption of Debentures A/c 5,000
(Being 9% debentures issued at 6% discount and redeemable at 5% premium)
For Redemption after 5 years:
1. 9% Debentures A/c Dr. 1,00,000
Premium on Redemption of Debentures A/c Dr. 5,000
To Debenture Holders A/c 1,05,000
(Being amount due on redemption)
2. Debenture Holders A/c Dr. 1,05,000
To Bank A/c 1,05,000
(Being payment made to debenture holders)
7. March 2018 Accountancy Question Paper with Answers
Question 1: What is a Forfeited Share? (1 mark) Answer: A Forfeited Share is a share on which a shareholder has failed to pay the allotment money and/or any call money when due. The company cancels such shares and takes them back as per the provisions in the Articles of Association.
Question 2: State any three differences between Fund Based Accounting and Non-Fund Based Accounting. (3 marks) Answer:
| Basis | Fund Based Accounting | Non-Fund Based Accounting |
|---|---|---|
| Applicability | Used by Not-for-Profit Organizations | Used by Profit-oriented organizations |
| Focus | Focuses on accountability and stewardship | Focuses on profitability and financial position |
| Financial Statements | Receipts and Payments Account, Income and Expenditure Account | Trading Account, Profit and Loss Account, Balance Sheet |
| Matching Concept | Cash basis – No matching of income and expenditure | Accrual basis – Proper matching of income and expenditure |
| Fund Classification | Funds are classified as restricted and unrestricted | No such classification exists |
Question 3: P and Q are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March 2018 was as follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: P 60,000, Q 40,000 | 1,00,000 | Land and Building | 60,000 |
| Reserves | 20,000 | Plant and Machinery | 30,000 |
| Creditors | 30,000 | Stock | 25,000 |
| Debtors | 20,000 | ||
| Cash | 15,000 | ||
| Total | 1,50,000 | Total | 1,50,000 |
R is admitted as a partner on the following terms:
- R will bring ₹50,000 as capital for 1/4 share in profits
- Goodwill of the firm is valued at ₹40,000
- Land and Building is appreciated by 20%
- Plant and Machinery is depreciated by 10%
- Stock is valued at ₹22,000
- Provision for doubtful debts is to be created at 5% on debtors Prepare Revaluation Account, Partners’ Capital Accounts, and Balance Sheet of the new firm. (5 marks)
Answer:
Revaluation Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Plant and Machinery A/c | 3,000 | By Land and Building A/c | 12,000 |
| To Provision for Doubtful Debts A/c | 1,000 | ||
| To Stock A/c | 3,000 | ||
| To Profit transferred to: | |||
| P’s Capital A/c (3/5) | 3,000 | ||
| Q’s Capital A/c (2/5) | 2,000 | ||
| Total | 12,000 | Total | 12,000 |
Partners’ Capital Accounts
| Particulars | P (₹) | Q (₹) | R (₹) | Particulars | P (₹) | Q (₹) | R (₹) |
|---|---|---|---|---|---|---|---|
| To Balance c/d | 75,000 | 50,000 | 50,000 | By Balance b/d | 60,000 | 40,000 | – |
| By Reserve | 12,000 | 8,000 | – | ||||
| By Revaluation A/c | 3,000 | 2,000 | – | ||||
| By Bank A/c | – | – | 50,000 | ||||
| Total | 75,000 | 50,000 | 50,000 | Total | 75,000 | 50,000 | 50,000 |
Balance Sheet as on 31st March 2018
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | Land and Building | 72,000 | |
| P | 75,000 | Plant and Machinery | 27,000 |
| Q | 50,000 | Stock | 22,000 |
| R | 50,000 | Debtors | 20,000 |
| Creditors | 30,000 | Less: Provision | (1,000) |
| Cash (15,000 + 50,000) | 65,000 | ||
| Total | 2,05,000 | Total | 2,05,000 |
8. March 2017 Accountancy Question Paper with Answers
Question 1: What is ‘Surrender of Shares’? (1 mark) Answer: Surrender of Shares refers to the voluntary return of shares by shareholders to the company for cancellation. It is typically done when a shareholder is unable to pay future calls and wishes to avoid the formal forfeiture process.
Question 2: What is a Cash Flow Statement? Explain any two objectives of preparing a Cash Flow Statement. (3 marks) Answer: A Cash Flow Statement is a statement showing inflows and outflows of cash and cash equivalents during a specific period, classified under operating, investing, and financing activities.
Objectives of Cash Flow Statement:
- Assessment of Liquidity – It helps in assessing the ability of the enterprise to generate cash and cash equivalents and its needs to utilize those cash flows.
- Decision Making – It provides information that enables users to evaluate changes in net assets, financial structure, and ability to affect cash flow amounts and timing.
- Comparison of Operating Performance – It facilitates comparison of operating performance of different enterprises as it eliminates the effects of using different accounting treatments for the same transactions.
- Prediction of Future Cash Flows – It helps in predicting future cash flows and evaluating the potential for future success of the enterprise.
Question 3: A, B, and C were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet on 31.12.2016 was as follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: A 1,00,000, B 80,000, C 60,000 | 2,40,000 | Fixed Assets | 1,40,000 |
| General Reserve | 40,000 | Stock | 60,000 |
| Creditors | 30,000 | Debtors | 60,000 |
| Bills Payable | 20,000 | Bank | 70,000 |
| Total | 3,30,000 | Total | 3,30,000 |
C died on 31.3.2017. According to the partnership deed, the executors of the deceased partner were entitled to:
- His capital as per the last Balance Sheet
- His share of profit up to the date of death based on previous year’s profit which was ₹90,000
- His share of goodwill valued at ₹1,20,000
- Interest on capital at 6% p.a.
Prepare C’s Capital Account to be rendered to his executors. (5 marks)
Answer: C’s Capital Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To C’s Executors A/c | 95,500 | By Balance b/d | 60,000 |
| By General Reserve (40,000 × 2/10) | 8,000 | ||
| By Profit & Loss Suspense A/c (90,000 × 2/10 × 3/12) | 4,500 | ||
| By Interest on Capital (60,000 × 6% × 3/12) | 900 | ||
| By A’s Capital A/c (1,20,000 × 2/10 × 5/8) | 15,000 | ||
| By B’s Capital A/c (1,20,000 × 2/10 × 3/8) | 9,000 | ||
| Total | 95,500 | Total | 95,500 |
9. March 2016 Accountancy Question Paper with Answers
Question 1: What is meant by ‘Over Subscription’ of shares? (1 mark) Answer: Over Subscription occurs when the number of shares applied for by the public exceeds the number of shares offered for subscription by the company. In such cases, the company must decide how to allot the available shares among the applicants.
Question 2: Calculate Operating Ratio from the following information: Net Sales ₹10,00,000, Cost of Goods Sold ₹6,00,000, Office and Administrative Expenses ₹1,00,000, Selling and Distribution Expenses ₹50,000. (2 marks) Answer: Operating Ratio = [(Cost of Goods Sold + Operating Expenses) / Net Sales] × 100 Operating Ratio = [(6,00,000 + 1,00,000 + 50,000) / 10,00,000] × 100 Operating Ratio = (7,50,000 / 10,00,000) × 100 Operating Ratio = 75%
Question 3: X and Y are partners sharing profits and losses in the ratio of 3:2. They agreed to dissolve their firm. Assets and external liabilities have been transferred to Realisation Account. Pass journal entries for the following transactions on dissolution: a) X agreed to take over investments at ₹15,000 (book value ₹14,000) b) Debtors realized ₹45,000 (book value ₹50,000) c) Y took over stock at ₹30,000 (book value ₹40,000) d) Creditors were paid ₹40,000 in full settlement of their account of ₹42,000 e) Realisation expenses amounted to ₹3,000 (5 marks)
Answer: Journal Entries:
1. X's Capital A/c Dr. 15,000
To Realisation A/c 15,000
(Being investments taken over by X)
2. Bank A/c Dr. 45,000
To Realisation A/c 45,000
(Being debtors realized)
3. Y's Capital A/c Dr. 30,000
To Realisation A/c 30,000
(Being stock taken over by Y)
4. Realisation A/c Dr. 40,000
To Bank A/c 40,000
(Being creditors paid in full settlement)
5. Realisation A/c Dr. 3,000
To Bank A/c 3,000
(Being realization expenses paid)
6. Realisation A/c Dr. 20,000
To P & L Adjustment A/c 20,000
(Being loss on realization transferred)
[Calculation: Dr. side (40,000 + 3,000 = 43,000) - Cr. side (15,000 + 45,000 + 30,000 - 42,000 + 5,000 = 63,000)]
7. P & L Adjustment A/c Dr. 20,000
To X's Capital A/c (3/5) 12,000
To Y's Capital A/c (2/5) 8,000
(Being loss on realization shared between partners)
10. March 2015 Accountancy Question Paper with Answers
Question 1: Define a ‘Foreign Branch’. (1 mark) Answer: A Foreign Branch is a branch of a business that is located in a foreign country, operating under different economic, legal, and currency conditions. Such branches maintain their books in the currency of the country in which they operate and follow local accounting practices.
Question 2: Calculate Proprietary Ratio from the following information: Fixed Assets ₹5,00,000, Current Assets ₹3,00,000, Current Liabilities ₹2,00,000, 10% Debentures ₹1,00,000. (3 marks) Answer: Proprietary Ratio = Shareholders’ Funds / Total Assets Total Assets = Fixed Assets + Current Assets = 5,00,000 + 3,00,000 = 8,00,000 Shareholders’ Funds = Total Assets – Total Liabilities = 8,00,000 – (2,00,000 + 1,00,000) = 8,00,000 – 3,00,000 = 5,00,000 Proprietary Ratio = 5,00,000 / 8,00,000 = 0.625 or 62.5%
Question 3: From the following Balance Sheet of XYZ Ltd. as on 31st March 2015, prepare a Cash Flow Statement:
Balance Sheet as on 31st March 2015
| Liabilities | 2014 (₹) | 2015 (₹) | Assets | 2014 (₹) | 2015 (₹) |
|---|---|---|---|---|---|
| Share Capital | 5,00,000 | 7,00,000 | Fixed Assets | 5,50,000 | 9,00,000 |
| General Reserve | 1,50,000 | 2,00,000 | Less: Depreciation | (50,000) | (75,000) |
| Profit & Loss A/c | 75,000 | 1,00,000 | Stock | 1,50,000 | 2,25,000 |
| 10% Debentures | 2,00,000 | 1,50,000 | Debtors | 2,00,000 | 1,50,000 |
| Creditors | 1,00,000 | 1,25,000 | Bank | 1,75,000 | 50,000 |
| Provision for Tax | 50,000 | 75,000 | |||
| Total | 10,75,000 | 13,50,000 | Total | 10,75,000 | 13,50,000 |
Additional Information:
- Tax paid during the year ₹45,000
- Dividend paid during the year ₹50,000
- Depreciation charged during the year ₹35,000 (5 marks)
Answer: Cash Flow Statement for the year ended 31st March 2015
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| A. Cash Flow from Operating Activities | ||
| Net Profit (1,00,000 – 75,000 + 50,000*) | 75,000 | |
| (*Dividend paid added back) | ||
| Adjustments for: | ||
| Increase in General Reserve | 50,000 | |
| Depreciation | 35,000 | |
| Increase in Provision for Tax (75,000 – 50,000 + 45,000) | 70,000 | 1,55,000 |
| 2,30,000 | ||
| Working Capital Changes: | ||
| Increase in Stock | (75,000) | |
| Decrease in Debtors | 50,000 | |
| Increase in Creditors | 25,000 | 0 |
| Cash generated from Operations | 2,30,000 | |
| Less: Tax paid | (45,000) | |
| Net Cash from Operating Activities | 1,85,000 | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Fixed Assets (9,00,000 – 5,50,000) | (3,50,000) | |
| Net Cash used in Investing Activities | (3,50,000) | |
| C. Cash Flow from Financing Activities | ||
| Issue of Share Capital | 2,00,000 | |
| Redemption of Debentures | (50,000) | |
| Dividend paid | (50,000) | |
| Net Cash from Financing Activities | 1,00,000 | |
| Net Decrease in Cash and Cash Equivalents (A+B+C) | (65,000) | |
| Cash and Cash Equivalents at the beginning | 1,75,000 | |
| Cash and Cash Equivalents at the end | 50,000 |
11. March 2014 Accountancy Question Paper with Answers
Question 1: What is meant by ‘hidden goodwill’? (1 mark) Answer: Hidden Goodwill is the excess of agreed value of the business over its net assets. It is not recorded in the books but is considered in determining the new profit-sharing ratio or adjusting the capital contributions of partners when there is a change in profit-sharing ratio.
Question 2: A, B, and C were partners sharing profits in the ratio of 5:3:2. After the admission of D, the new profit-sharing ratio becomes 4:3:2:1. Calculate the sacrificing ratio of the old partners. (2 marks) Answer: Old Ratio of A : B : C = 5 : 3 : 2 New Ratio of A : B : C : D = 4 : 3 : 2 : 1
Sacrifice by A = Old share – New share = 5/10 – 4/10 = 1/10 Sacrifice by B = Old share – New share = 3/10 – 3/10 = 0 Sacrifice by C = Old share – New share = 2/10 – 2/10 = 0
Therefore, the sacrificing ratio is A : B : C = 1 : 0 : 0 This means A has sacrificed his entire share for D.
Question 3: M and N are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as on 31.12.2013 was as follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: M 1,00,000, N 80,000 | 1,80,000 | Fixed Assets | 1,50,000 |
| Workmen Compensation Reserve | 20,000 | Stock | 60,000 |
| General Reserve | 40,000 | Debtors | 50,000 |
| Creditors | 60,000 | Bank | 40,000 |
| Total | 3,00,000 | Total | 3,00,000 |
They agreed to admit O as a partner on the following terms:
- O brings ₹60,000 as capital for 1/5 share in profits
- Goodwill of the firm is valued at ₹50,000
- The assets and liabilities are to be revalued as follows:
- Fixed Assets to be appreciated by 20%
- Stock to be depreciated by 10%
- Create a provision of 5% on debtors
- A liability for claim of workmen compensation to be created for ₹5,000 Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm. (5 marks)
Answer: Revaluation Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Stock A/c | 6,000 | By Fixed Assets A/c | 30,000 |
| To Provision for Doubtful Debts A/c | 2,500 | ||
| To Workmen Compensation A/c | 5,000 | ||
| To Profit transferred to: | |||
| M’s Capital A/c (3/5) | 9,900 | ||
| N’s Capital A/c (2/5) | 6,600 | ||
| Total | 30,000 | Total | 30,000 |
Partners’ Capital Accounts
| Particulars | M (₹) | N (₹) | O (₹) | Particulars | M (₹) | N (₹) | O (₹) |
|---|---|---|---|---|---|---|---|
| To Premium for Goodwill | – | – | 10,000 | By Balance b/d | 1,00,000 | 80,000 | – |
| To Balance c/d | 1,48,900 | 1,13,600 | 50,000 | By General Reserve | 24,000 | 16,000 | – |
| By Workmen Comp. Reserve | 12,000 | 8,000 | – | ||||
| By Revaluation A/c | 9,900 | 6,600 | – | ||||
| By Premium for Goodwill | 6,000 | 4,000 | – | ||||
| By Bank A/c | – | – | 60,000 | ||||
| Total | 1,48,900 | 1,13,600 | 60,000 | Total | 1,48,900 | 1,13,600 | 60,000 |
Balance Sheet as on 31.12.2013
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | Fixed Assets | 1,80,000 | |
| M | 1,48,900 | Stock | 54,000 |
| N | 1,13,600 | Debtors | 50,000 |
| O | 50,000 | Less: Provision | (2,500) |
| Workmen Compensation | 5,000 | Bank (40,000 + 60,000 – 10,000) | 90,000 |
| Creditors | 60,000 | ||
| Total | 3,77,500 | Total | 3,77,500 |
12. March 2013 Accountancy Question Paper with Answers
Question 1: Define ‘Sinking Fund’. (1 mark) Answer: A Sinking Fund is a fund created by setting aside specific amounts regularly out of profits for the redemption of long-term liabilities like debentures. These amounts are invested in securities to accumulate the required sum by the time the liability matures.
Question 2: Calculate Inventory Turnover Ratio from the following information: Opening Stock ₹20,000, Closing Stock ₹30,000, Sales ₹5,00,000, Gross Profit Ratio 25%. (3 marks) Answer: Gross Profit = Sales × GP Ratio = 5,00,000 × 25% = 1,25,000 Cost of Goods Sold = Sales – Gross Profit = 5,00,000 – 1,25,000 = 3,75,000 Average Inventory = (Opening Stock + Closing Stock)/2 = (20,000 + 30,000)/2 = 25,000 Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory = 3,75,000 / 25,000 = 15 times
Question 3: What do you mean by ‘Issue of shares for consideration other than cash’? ABC Ltd. purchased assets worth ₹9,50,000 from XYZ Ltd. by issuing equity shares of ₹10 each at a premium of ₹2 per share. Pass necessary journal entries. (5 marks) Answer: ‘Issue of shares for consideration other than cash’ refers to the allotment of shares in exchange for assets or services instead of cash payment. This is common in case of business purchase or acquisition of assets.
Journal Entries:
1. Assets A/c Dr. 9,50,000
To XYZ Ltd. 9,50,000
(Being assets purchased)
2. XYZ Ltd. Dr. 9,50,000
To Equity Share Capital A/c 7,91,667
To Securities Premium A/c 1,58,333
(Being 79,167 equity shares issued at premium for consideration other than cash)
[Calculation: Number of shares = 9,50,000 ÷ 12 = 79,167 shares (approx)]
13. March 2012 Accountancy Question Paper with Answers
Question 1: What is meant by ‘Debenture Redemption Reserve’? (1 mark) Answer: Debenture Redemption Reserve (DRR) is a specific reserve created by companies for the purpose of redemption of debentures. As per Companies Act, companies are required to create DRR by transferring a certain percentage of profits every year until the redemption of debentures.
Question 2: From the following information, prepare a Comparative Income Statement:
| Particulars | 2010-11 (₹) | 2011-12 (₹) |
|---|---|---|
| Revenue from Operations | 15,00,000 | 18,00,000 |
| Cost of Materials Consumed | 8,00,000 | 9,00,000 |
| Other Expenses | 3,00,000 | 4,00,000 |
| Tax Rate | 40% | 40% |
| (2 marks) |
Answer: Comparative Income Statement for the years 2010-11 and 2011-12
| Particulars | 2010-11 | 2011-12 | Absolute Change | % Change | ||
|---|---|---|---|---|---|---|
| Amount (₹) | % | Amount (₹) | % | |||
| Revenue from Operations | 15,00,000 | 100 | 18,00,000 | 100 | 3,00,000 | 20.0 |
| Less: Cost of Materials Consumed | 8,00,000 | 53.3 | 9,00,000 | 50.0 | 1,00,000 | 12.5 |
| Less: Other Expenses | 3,00,000 | 20.0 | 4,00,000 | 22.2 | 1,00,000 | 33.3 |
| Profit Before Tax | 4,00,000 | 26.7 | 5,00,000 | 27.8 | 1,00,000 | 25.0 |
| Less: Tax (40%) | 1,60,000 | 10.7 | 2,00,000 | 11.1 | 40,000 | 25.0 |
| Profit After Tax | 2,40,000 | 16.0 | 3,00,000 | 16.7 | 60,000 | 25.0 |
Question 3: X Ltd. forfeited 200 shares of ₹10 each fully called up on which only ₹6 per share had been paid. These shares were subsequently reissued at ₹8 per share as fully paid up. Pass necessary journal entries to record the forfeiture and reissue of shares. (5 marks)
Answer: Journal Entries:
1. Share Capital A/c (200 × ₹10) Dr. 2,000
To Share Forfeited A/c (200 × ₹6) 1,200
To Calls in Arrears A/c (200 × ₹4) 800
(Being 200 shares forfeited due to non-payment of calls)
2. Bank A/c (200 × ₹8) Dr. 1,600
Share Forfeited A/c (200 × ₹2) Dr. 400
To Share Capital A/c (200 × ₹10) 2,000
(Being forfeited shares reissued)
3. Share Forfeited A/c Dr. 800
To Capital Reserve A/c 800
(Being balance in share forfeited account transferred to capital reserve)
[Calculation: 1,200 - 400 = 800]
14. March 2011 Accountancy Question Paper with Answers
Question 1: State any one feature of ‘Not-for-Profit Organization’. (1 mark) Answer: Not-for-Profit Organizations are established for charitable, educational, cultural, or social purposes, not for earning profits. Their primary objective is to provide service to members or society rather than earning profits.
Question 2: Calculate Debt-Equity Ratio from the following information: Total Assets ₹35,00,000, Current Liabilities ₹10,00,000, Total Debt ₹15,00,000. (2 marks) Answer: Debt-Equity Ratio = Long-term Debt / Shareholders’ Funds Long-term Debt = Total Debt – Current Liabilities = 15,00,000 – 10,00,000 = 5,00,000 Shareholders’ Funds = Total Assets – Total Debt = 35,00,000 – 15,00,000 = 20,00,000 Debt-Equity Ratio = 5,00,000 / 20,00,000 = 0.25:1
Question 3: A, B, and C are partners sharing profits and losses in the ratio of 5:3:2. They decided to dissolve the firm. Assets and liabilities are transferred to Realisation Account. Pass journal entries for the following: a) B agreed to take over Plant and Machinery at ₹80,000 (book value ₹1,00,000) b) Stock worth ₹50,000 (book value ₹40,000) is taken over by C c) A took over Investments at ₹20,000 (book value ₹25,000) d) Creditors of ₹60,000 were paid ₹58,000 in full settlement e) Unrecorded assets realized ₹10,000 (5 marks)
Answer: Journal Entries:
1. B's Capital A/c Dr. 80,000
To Realisation A/c 80,000
Strategic Tips to Maximize Your Score Using HSSlive Accountancy Previous Year Papers
- Focus on High-Weightage Chapters: Partnership Accounts, Company Accounts, and Financial Statement Analysis typically comprise 60-70% of the question paper.
- Practice Numerical Problems: Dedicate more time to solving problems on:
- Admission/Retirement/Death of Partners
- Issue of Shares and Debentures
- Ratio Analysis
- Cash Flow Statements
- Master the Format: Accounting requires proper presentation. Practice the correct formats for:
- Journal entries
- Ledger accounts
- Financial statements
- Partnership final accounts
- Time Management Strategy: Allocate time based on marks:
- 1-mark questions: 1-2 minutes
- 2-mark questions: 3-4 minutes
- 3-mark questions: 5-6 minutes
- 5-mark questions: 8-10 minutes
- Step-by-Step Working: Show all working notes clearly for numerical problems. Partial marks are awarded for correct methodology even if the final answer is wrong.
Most Frequently Asked Topics in Plus Two Accountancy (Based on HSSlive Analysis)
- Partnership Accounts (30-35%)
- Admission of a Partner
- Retirement/Death of a Partner
- Dissolution of Partnership Firm
- Company Accounts (25-30%)
- Issue and Redemption of Shares
- Issue and Redemption of Debentures
- Final Accounts of Companies
- Financial Statement Analysis (20-25%)
- Ratio Analysis
- Cash Flow Statement
- Common Size Statement
- Accounting for Not-for-Profit Organizations (10-15%)
- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
- Computerized Accounting (5-10%)
- Features and Applications
- Database Management Systems
- Accounting Software
Conclusion
Consistent practice with HSSlive Plus Two Accountancy previous year question papers is the key to mastering the subject. These papers reflect the exact examination pattern and frequently asked concepts, helping you focus your preparation effectively.
Remember, Accountancy is a practical subject that requires regular practice. Understanding the concepts is important, but applying them correctly in the examination is what ultimately determines your score.
Best of luck for your exams! Keep practicing, and success will follow.