AccountancyCBSE Class 12 · Board exam 2026 (session 2025-26)

CBSE Class 12 Accountancy: 2026 board paper, set 67/1/1

The question paper set in the CBSE Class 12 board exam of 2026, as printed: 42 questions for 80 marks, in sections, with each OR choice shown as an alternative. Try each question first, then open our solution.

55 of 57 questions (counting each OR alternative) have our step-by-step solution so far. We show a solution only after an independent re-solve agrees with it; the rest say "Solution being checked".

Source: official question paper from cbse.gov.in: https://www.cbse.gov.in/cbsenew/question-paper/2026/XII/Accountancy.zip (a zip; this paper is the file 67_1_1_Accountancy_cl12.pdf). Questions are transcribed from that PDF; figures are described in words, so check the official paper for them.

Practise a paper like this, timedMy board paper sets a full paper in this exact format from real board questions, with a timer.Get your written answers markedThe Answer Coach marks a photo of your handwritten answer step by step, like the examiner.

How the paper is set

Section	Questions	What it has
A	1-26	Part A compulsory: MCQ 1-16 (1 mark), short 17-20 (3 marks), long I 21-22 (4 marks), long II 23-26 (6 marks)
B-I	27-34	Option I Analysis of Financial Statements: MCQ 27-30, short 31-32, long 33 (4), 34 (6)
B-II	27-34	Option II Computerised Accounting: MCQ 27-30, short 31-32, long 33 (4), 34 (6)

Instructions in brief: All questions compulsory; Part B has two options, attempt only one; no overall choice but internal choice in a few questions.

Section A

Part A compulsory: MCQ 1-16 (1 mark), short 17-20 (3 marks), long I 21-22 (4 marks), long II 23-26 (6 marks)

Q1 · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner
The books of Mehul and Barkha showed that their capital employed on 31st March, 2025 was ₹ 6,00,000. If the normal profits are ₹ 60,000 and super profits are ₹ 20,000, then the normal rate of return is :
1. (A)6%
2. (B)15%
3. (C)30%
4. (D)10%
Try it first, then show our solutionSolution
1. Normal profit = capital employed × normal rate of return, so normal rate = normal profit / capital employed.
2. Normal rate = 60,000 / 6,00,000 × 100 = 10%. Super profit is not needed. Option (D).
  1 mark
Answer: (D) 10%
Where the marks are
- Normal profit ÷ capital employed (1 mark)
Open Q1 on its own page
Q2 · 1 mark · Assertion-reasonCompetency-basedAccounting for Partnership: Basic Concepts
There are two statements Assertion (A) and Reason (R) :
Assertion (A) : Partnership Agreement becomes the basis of relationship among the partners.
Reason (R) : Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.
Choose the correct option from the following :
1. (A)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2. (B)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3. (C)Assertion (A) is correct, but Reason (R) is incorrect.
4. (D)Assertion (A) is incorrect, but Reason (R) is correct.
Try it first, then show our solutionSolution
1. A partnership arises from an agreement among persons to carry on business and share its profits and losses.
2. Because the relationship itself is created by agreement, that agreement (the deed) becomes the basis of the partners' relationship. Both are true and R explains A. Option (A).
  1 mark
Answer: (A) Both A and R are correct and R is the correct explanation of A
Where the marks are
- Recognises agreement as the basis of partnership (1 mark)
Open Q2 on its own page
Answer one of these 2 alternatives.
Q3(a) · 1 mark · MCQAccounting for Share Capital
If 600 shares of ₹ 10 each, issued at a premium of ₹ 1 per share are forfeited on which ₹ 8 per share (including premium) have been called and ₹ 6 per share (including premium) have been paid, then 'Share Forfeiture Account' will be ________ by ________.
1. (A)credited, ₹ 3,000
2. (B)debited, ₹ 3,000
3. (C)debited, ₹ 3,600
4. (D)credited, ₹ 3,600
Try it first, then show our solutionSolution
1. Paid ₹ 6 per share including the ₹ 1 premium, so capital received = ₹ 5 per share. Premium received is not forfeited.
2. Share Forfeiture A/c is credited with 600 × ₹ 5 = ₹ 3,000. Option (A).
  1 mark
Answer: (A) credited, ₹ 3,000
Where the marks are
- Credit of capital paid ₹ 5 × 600 (1 mark)
Open Q3(a) on its own page
OR
Q3(b) · 1 mark · MCQIssue and Redemption of Debentures
T.D. Ltd. issued ₹ 10,00,000, 9% debentures at a discount of 10% redeemable at a certain rate of premium. On issue of these 9% debentures, the premium on redemption of debentures account was credited by ₹ 1,00,000. The amount of 'loss on issue of debentures' was :
1. (A)₹ 1,00,000
2. (B)₹ 2,00,000
3. (C)₹ 3,00,000
4. (D)Nil
Try it first, then show our solutionSolution
1. Discount on issue = 10% of ₹ 10,00,000 = ₹ 1,00,000. Premium on redemption credited = ₹ 1,00,000.
2. Loss on issue = discount + premium on redemption = ₹ 2,00,000. Option (B).
  1 mark
Answer: (B) ₹ 2,00,000
Where the marks are
- Discount plus premium on redemption (1 mark)
Open Q3(b) on its own page
Answer one of these 2 alternatives.
Q4(a) · 1 mark · MCQAccounting for Partnership: Basic Concepts
Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, Tej had given a loan of ₹ 50,000 to the firm. The net profit of the firm before charging interest on loan was ₹ 3,75,000. The firm closes its books on 31st March every year. The amount of profit transferred from Profit and Loss Account to Profit and Loss Appropriation Account will be :
1. (A)₹ 3,75,000
2. (B)₹ 3,72,000
3. (C)₹ 4,25,000
4. (D)₹ 3,78,000
Try it first, then show our solutionSolution
1. Interest on a partner's loan is a charge against profit, at 6% p.a. when nothing is agreed: 50,000 × 6% = ₹ 3,000 for the full year.
2. Profit transferred to the Appropriation Account = 3,75,000 − 3,000 = ₹ 3,72,000. Option (B).
  1 mark
Answer: (B) ₹ 3,72,000
Where the marks are
- Interest on loan ₹ 3,000 charged before appropriation (1 mark)
Open Q4(a) on its own page
OR
Q4(b) · 1 mark · MCQAccounting for Partnership: Basic Concepts
Ashok and Vasu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their capitals on 31st March, 2025 were ₹ 3,00,000 and ₹ 3,75,000 respectively. During the year ended 31st March, 2025 Vasu withdrew ₹ 40,000 for his personal use and introduced ₹ 1,50,000 as additional capital in the business. Profit of the firm for the year ended 31st March, 2025 was ₹ 1,40,000. Vasu's capital in the beginning of the year was :
1. (A)₹ 2,75,000
2. (B)₹ 4,25,000
3. (C)₹ 2,05,000
4. (D)₹ 3,45,000
Try it first, then show our solutionSolution
1. Closing capital = opening + capital introduced + share of profit − drawings. Vasu's profit share = 1,40,000 × 3/7 = ₹ 60,000.
2. Opening = 3,75,000 − 1,50,000 − 60,000 + 40,000 = ₹ 2,05,000. Option (C).
  1 mark
Answer: (C) ₹ 2,05,000
Where the marks are
- Works back from closing capital (1 mark)
Open Q4(b) on its own page
Q5 · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner
Soni and Kush were partners in a firm sharing profits and losses in the ratio of 4 : 5. Hitesh was admitted as a new partner for 1/5th share in the profits of the firm. After all adjustments regarding general reserve, goodwill, and gain on revaluation of assets and reassessment of liabilities, the balances in capital accounts of Soni and Kush were ₹ 7,00,000 and ₹ 13,00,000 respectively. Hitesh brought in proportionate capital for his 1/5th share in the profits of the firm. The amount of proportionate capital brought in by Hitesh was :
1. (A)₹ 25,00,000
2. (B)₹ 20,00,000
3. (C)₹ 5,00,000
4. (D)₹ 10,00,000
Try it first, then show our solutionSolution
1. Adjusted capitals of Soni and Kush = 7,00,000 + 13,00,000 = ₹ 20,00,000 for their combined 4/5 share. Total capital = 20,00,000 × 5/4 = ₹ 25,00,000.
2. Hitesh's capital = 25,00,000 × 1/5 = ₹ 5,00,000. Option (C).
  1 mark
Answer: (C) ₹ 5,00,000
Where the marks are
- Total capital from old partners' 4/5 share (1 mark)
Open Q5 on its own page
Answer one of these 2 alternatives.
Q6(a) · 1 mark · MCQIssue and Redemption of Debentures
Which of the following is not correct about collateral security ?
1. (A)It is a primary security.
2. (B)It is an additional security.
3. (C)It is a subsidiary security.
4. (D)It is a secondary security.
Try it first, then show our solutionSolution
1. Collateral security is given in addition to the primary security, as a subsidiary or secondary security.
2. So "it is a primary security" is the incorrect statement. Option (A).
  1 mark
Answer: (A) It is a primary security
Where the marks are
- Collateral security is not primary (1 mark)
Open Q6(a) on its own page
OR
Q6(b) · 1 mark · MCQAccounting for Share Capital
'A company is formed according to the provisions of Company Law' indicates which of the following characteristics of a company ?
1. (A)Common Seal
2. (B)Perpetual Succession
3. (C)Body Corporate
4. (D)Limited Liability
Try it first, then show our solutionSolution
1. A company comes into existence by registration under the Companies Act, which makes it a legal person.
2. Being created by law is the feature "body corporate". Option (C).
  1 mark
Answer: (C) Body Corporate
Where the marks are
- Body corporate (1 mark)
Open Q6(b) on its own page
Answer one of these 2 alternatives.
Q7(a) · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner
Chandan, Ravi and Mahesh were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2025 they decided to share the future profits in the ratio of 3 : 2 : 1. On that date there existed a general reserve of ₹ 7,00,000 in the books of the firm which they decided to distribute among themselves.
In which ratio will the general reserve be distributed among the partners ?
1. (A)New profit sharing ratio
2. (B)Old profit sharing ratio
3. (C)Sacrificing / Gaining ratio
4. (D)Equally
Try it first, then show our solutionSolution
1. The general reserve was built from profits earned while the old ratio applied.
2. So it is distributed among the partners in their old profit sharing ratio 5 : 4 : 1. Option (B).
  1 mark
Answer: (B) Old profit sharing ratio
Where the marks are
- Old ratio (1 mark)
Open Q7(a) on its own page
OR
Q7(b) · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner
Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st April, 2025, they decided to share the profits equally. On that date furniture was appearing in the books of the firm at ₹ 4,50,000. At the time of change in the profit sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at :
1. (A)₹ 4,05,000
2. (B)₹ 4,50,000
3. (C)₹ 4,95,000
4. (D)₹ 5,00,000
Try it first, then show our solutionSolution
1. Undervalued by 10% means the book value is 10% below the true value: book value = 90% of true value.
2. True value = 4,50,000 × 100/90 = ₹ 5,00,000. Option (D).
  1 mark
Answer: (D) ₹ 5,00,000
Where the marks are
- True value = book value × 100/90 (1 mark)
Open Q7(b) on its own page
Q8 · 1 mark · MCQAccounting for Partnership: Basic Concepts
Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025 Madhvi withdrew ₹ 40,000 at the end of every month for her personal use. Interest on Madhvi's drawings will be :
1. (A)₹ 19,200
2. (B)₹ 4,800
3. (C)₹ 2,400
4. (D)₹ 1,600
Try it first, then show our solutionSolution
1. Drawings at the end of December, January, February and March: 4 drawings of ₹ 40,000, carrying interest for 3, 2, 1 and 0 months to 31st March.
2. Interest = 40,000 × 12% × (3 + 2 + 1 + 0)/12 = 40,000 × 12% × 6/12 = ₹ 2,400. Option (C).
  1 mark
Answer: (C) ₹ 2,400
Where the marks are
- Interest for 6 month-units on ₹ 40,000 (1 mark)
Open Q8 on its own page
Answer one of these 2 alternatives.
Q9(a) · 1 mark · MCQReconstitution of a Partnership Firm – Retirement/Death of a Partner
Dharam, Karam and Raman were partners in a firm sharing profits and losses in the ratio of 7 : 8 : 5. On 31st March, 2025, Raman retired from the firm. Dharam and Karam decided to share profits in future in the ratio of 11 : 9. Their gaining ratio will be :
1. (A)1 : 1
2. (B)1 : 2
3. (C)4 : 1
4. (D)2 : 1
Try it first, then show our solutionSolution
1. Gain = new share − old share. Dharam: 11/20 − 7/20 = 4/20. Karam: 9/20 − 8/20 = 1/20.
2. Gaining ratio = 4 : 1. Option (C).
  1 mark
Answer: (C) 4 : 1
Where the marks are
- New − old shares (1 mark)
OR
Q9(b) · 1 mark · MCQReconstitution of a Partnership Firm – Retirement/Death of a Partner
Deen, Raju and Hari were partners in a firm sharing profit and losses in the ratio of 7 : 6 : 7. On 31st March, 2025 Raju died. Deen and Hari decided to take over Raju's share equally. The new profit sharing ratio between Deen and Hari will be :
1. (A)1 : 1
2. (B)7 : 6
3. (C)6 : 7
4. (D)3 : 2
Try it first, then show our solutionSolution
1. Raju's 6/20 is taken equally: 3/20 each.
2. Deen = 7/20 + 3/20 = 10/20; Hari = 7/20 + 3/20 = 10/20. New ratio 1 : 1. Option (A).
  1 mark
Answer: (A) 1 : 1
Where the marks are
- Adds equal halves of Raju's share (1 mark)
Q10 · 1 mark · MCQAccounting for Partnership: Basic Concepts
Nidhi and Kunal were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their capitals were ₹ 3,00,000 and ₹ 2,00,000 respectively. They were entitled to interest on capital @ 6% p.a. The firm earned a profit of ₹ 15,000 during the year.
Interest on partners' capitals will be :
1. (A)Nidhi ₹ 18,000 ; Kunal ₹ 12,000
2. (B)Nidhi ₹ 7,500 ; Kunal ₹ 7,500
3. (C)Nidhi ₹ 9,000 ; Kunal ₹ 6,000
4. (D)Nidhi ₹ 12,000 ; Kunal ₹ 3,000
Try it first, then show our solutionSolution
1. Interest at 6%: Nidhi ₹ 18,000, Kunal ₹ 12,000 (total ₹ 30,000), but profit is only ₹ 15,000. Interest on capital is an appropriation, so it cannot exceed profit.
2. The ₹ 15,000 is shared in the ratio of interest 18,000 : 12,000 = 3 : 2: Nidhi ₹ 9,000, Kunal ₹ 6,000. Option (C).
  1 mark
Answer: (C) Nidhi ₹ 9,000 ; Kunal ₹ 6,000
Where the marks are
- Profit shared in ratio of interest when insufficient (1 mark)
Open Q10 on its own page
Q11 · 1 mark · MCQIssue and Redemption of Debentures
On 1st April, 2024, Dina Ltd. issued 8,000, 9% debentures of ₹ 100 each at a discount of 6%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be :
1. (A)₹ 48,000
2. (B)₹ 72,000
3. (C)₹ 1,20,000
4. (D)₹ 80,000
Try it first, then show our solutionSolution
1. Interest is on face value regardless of the issue discount: 8,000 × ₹ 100 = ₹ 8,00,000.
2. Interest = 9% of 8,00,000 = ₹ 72,000. Option (B).
  1 mark
Answer: (B) ₹ 72,000
Where the marks are
- 9% on face value (1 mark)
Q12 · 1 mark · MCQAccounting for Share Capital
Sakshi Ltd. forfeited 500 equity shares of ₹ 10 each, issued at a premium of ₹ 2 per share for non-payment of second and final call of ₹ 4 per share (including premium).
The maximum amount of discount at which these shares can be reissued is :
1. (A)₹ 1 per share
2. (B)₹ 6 per share
3. (C)₹ 8 per share
4. (D)₹ 5 per share
Try it first, then show our solutionSolution
1. The unpaid final call of ₹ 4 includes the ₹ 2 premium, so its capital part is ₹ 2. Capital received per share = ₹ 10 − ₹ 2 = ₹ 8.
2. The discount on reissue cannot exceed the amount forfeited: maximum ₹ 8 per share. Option (C).
  1 mark
Answer: (C) ₹ 8 per share
Where the marks are
- Maximum discount = capital forfeited ₹ 8 (1 mark)
Open Q12 on its own page
Q13 · 1 mark · MCQAccounting for Share Capital
Surya Ltd. issued 50,000 equity shares of ₹ 10 each. The amount was payable as follows :
on Application – ₹ 3 per share
on Allotment – ₹ 2 per share
on First and Final Call – the balance
Usha, to whom 700 shares were allotted, paid her entire share money on allotment. Raj, to whom 300 shares were allotted did not pay the first and final call. The amount to be debited to Bank Account for first and final call after it becomes due will be :
1. (A)₹ 2,50,000
2. (B)₹ 2,48,500
3. (C)₹ 2,45,000
4. (D)₹ 2,52,000
Try it first, then show our solutionSolution
1. Final call = 10 − 3 − 2 = ₹ 5 per share; total due = 50,000 × 5 = ₹ 2,50,000. Usha paid her 700 × 5 = ₹ 3,500 in advance with allotment; Raj owes 300 × 5 = ₹ 1,500.
2. Cash received on the call = 2,50,000 − 3,500 − 1,500 = ₹ 2,45,000. Option (C).
  1 mark
Answer: (C) ₹ 2,45,000
Where the marks are
- Deducts calls in advance and arrears (1 mark)
Open Q13 on its own page
Q14 · 1 mark · MCQDissolution of Partnership Firm
Sidhi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 31st March, 2025 their firm was dissolved. At the time of dissolution a debtor amounting to ₹ 25,000 whose debt had been previously written off as bad debt paid 40% of the amount. The accounting treatment for the above transaction will be :
1. (A)₹ 10,000 will be credited to bad debts recovered account.
2. (B)₹ 10,000 will be credited to the debtor's personal account.
3. (C)₹ 10,000 will be credited to realisation account.
4. (D)₹ 10,000 will be credited to bad debts account.
Try it first, then show our solutionSolution
1. On dissolution all receipts from assets, including bad debts recovered, go through the Realisation Account.
2. Cash received = 40% of 25,000 = ₹ 10,000, credited to Realisation Account. Option (C).
  1 mark
Answer: (C) ₹ 10,000 credited to realisation account
Where the marks are
- Realisation A/c credited ₹ 10,000 (1 mark)
Open Q14 on its own page
Q15 · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner
Chaman and Vatika were partners in a firm sharing profits and losses in the ratio of 4 : 5. They admitted Mohan as a new partner for 1/5th share in the profits of the firm. Mohan acquired his share equally from Chaman and Vatika. The new profit sharing ratio of Chaman, Vatika and Mohan will be :
1. (A)2 : 2 : 1
2. (B)31 : 41 : 18
3. (C)41 : 31 : 18
4. (D)7 : 8 : 5
Try it first, then show our solutionSolution
1. Mohan's 1/5 comes equally: 1/10 from each. Chaman = 4/9 − 1/10 = 31/90; Vatika = 5/9 − 1/10 = 41/90; Mohan = 18/90.
2. New ratio = 31 : 41 : 18. Option (B).
  1 mark
Answer: (B) 31 : 41 : 18
Where the marks are
- Old share less 1/10 each (1 mark)
Q16 · 1 mark · MCQReconstitution of a Partnership Firm – Retirement/Death of a Partner
Lalita, Shivani and Madhuri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Madhuri retired from the firm on 31st March, 2025. The balance in her capital account on the date of her retirement was ₹ 1,80,000. Lalita and Shivani agreed to pay her ₹ 2,25,000 in full settlement of her claim.
The goodwill of the firm on Madhuri's retirement was :
1. (A)₹ 1,80,000
2. (B)₹ 2,25,000
3. (C)₹ 45,000
4. (D)₹ 2,70,000
Try it first, then show our solutionSolution
1. Payment above her capital balance is her share of goodwill: 2,25,000 − 1,80,000 = ₹ 45,000.
2. Madhuri's share is 1/6, so firm's goodwill = 45,000 × 6 = ₹ 2,70,000. Option (D).
  1 mark
Answer: (D) ₹ 2,70,000
Where the marks are
- Goodwill share grossed up for 1/6 share (1 mark)
Open Q16 on its own page
Q17 · 3 marks · Short answerReconstitution of a Partnership Firm – Admission of a Partner
Average profit of a firm during the last few years is ₹ 8,00,000. In similar business, the normal rate of return is 10% of the capital employed. Assets of the business were ₹ 60,00,000 and its external liabilities were ₹ 20,00,000.
Calculate the value of goodwill by :
1. (i)
  Capitalisation of super profits method
  2 marks
2. (ii)
  Super profit method if the goodwill is valued at four years' purchase of super profits.
  1 mark
Try it first, then show our solutionSolution
1. Capital employed = assets − external liabilities = 60,00,000 − 20,00,000 = ₹ 40,00,000. Normal profit = 10% = ₹ 4,00,000.
  1 mark
2. Super profit = 8,00,000 − 4,00,000 = ₹ 4,00,000. (i) Goodwill by capitalisation of super profits = 4,00,000 × 100/10 = ₹ 40,00,000.
  1 mark
3. (ii) Goodwill at four years' purchase of super profits = 4,00,000 × 4 = ₹ 16,00,000.
  1 mark
Answer: (i) ₹ 40,00,000 (ii) ₹ 16,00,000
Where the marks are
- Capital employed and normal profit (1 mark)
- Super profit and goodwill by capitalisation (1 mark)
- Goodwill at 4 years' purchase (1 mark)
Open Q17 on its own page

Answer one of these 2 alternatives.

Q18(a) · 3 marks · Short answerAccounting for Partnership: Basic Concepts

Sultan, Singh and Tulsi were partners in a firm sharing profits and losses in the ratio of 9 : 7 : 4. Their fixed capitals were ₹ 6,00,000, ₹ 5,00,000 and ₹ 4,00,000. The partnership deed provided that interest on partners capital accounts will be allowed at 10% per annum. After the final accounts for the year were prepared, it was found that interest on capital was allowed @ 12% per annum.

Pass the necessary adjusting journal entry.

Try it first, then show our solutionSolution

Excess interest given at 2% (12% − 10%): Sultan ₹ 12,000, Singh ₹ 10,000, Tulsi ₹ 8,000 = ₹ 30,000. This ₹ 30,000 should have been profit, shared 9 : 7 : 4: ₹ 13,500, ₹ 10,500, ₹ 6,000.
½ mark
Adjustment table
Partner Excess interest to reverse, Dr. (₹) Profit to give, Cr. (₹) Net effect (₹)
Sultan 12,000 13,500 1,500 Cr.
Singh 10,000 10,500 500 Cr.
Tulsi 8,000 6,000 2,000 Dr.
Total 30,000 30,000 Nil
1½ marks
Capitals are fixed, so the adjustment goes through current accounts.
Particulars Dr. (₹) Cr. (₹)
Tulsi's Current A/c Dr. 2,000
To Sultan's Current A/c 1,500
To Singh's Current A/c 500
(Being excess interest on capital rectified)
1 mark

Partner	Excess interest to reverse, Dr. (₹)	Profit to give, Cr. (₹)	Net effect (₹)
Sultan	12,000	13,500	1,500 Cr.
Singh	10,000	10,500	500 Cr.
Tulsi	8,000	6,000	2,000 Dr.
Total	30,000	30,000	Nil

Particulars	Dr. (₹)	Cr. (₹)
Tulsi's Current A/c Dr.	2,000
To Sultan's Current A/c		1,500
To Singh's Current A/c		500
(Being excess interest on capital rectified)

Answer: Tulsi's Current A/c Dr. ₹ 2,000 to Sultan's Current A/c ₹ 1,500 and Singh's Current A/c ₹ 500

Where the marks are

Excess interest worked out (½ mark)
Adjustment table with net effect (1½ marks)
Adjusting entry through current accounts (1 mark)

Open Q18(a) on its own page

Q18(b) · 3 marks · Short answerReconstitution of a Partnership Firm – Admission of a Partner

Sameer and Manveer were partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st April, 2024, they admitted Sandeep as a new partner for 1/5th share in the profits with a guaranteed minimum amount of ₹ 80,000. Sameer and Manveer continue to share profits as before but agreed to bear any deficiency on account of guarantee to Sandeep in the ratio of 3 : 5. The net profit of the firm for the year ended 31st March, 2025 was ₹ 3,20,000.

Prepare Profit and Loss Appropriation Account of Sameer, Manveer and Sandeep for the year ended 31st March, 2025.

Try it first, then show our solutionSolution

Sandeep's 1/5 of ₹ 3,20,000 = ₹ 64,000, short of his ₹ 80,000 guarantee by ₹ 16,000, borne 3 : 5 (Sameer ₹ 6,000, Manveer ₹ 10,000). The remaining 4/5 = ₹ 2,56,000 is shared 5 : 3: ₹ 1,60,000 and ₹ 96,000.
1 mark

Profit and Loss Appropriation Account for the year ended 31st March, 2025

Particulars	₹	Particulars	₹
To Sameer's Capital A/c (1,60,000 − 6,000)	1,54,000	By Profit and Loss A/c (net profit)	3,20,000
To Manveer's Capital A/c (96,000 − 10,000)	86,000
To Sandeep's Capital A/c (64,000 + 6,000 + 10,000)	80,000
	3,20,000		3,20,000

2 marks

Answer: Sameer ₹ 1,54,000, Manveer ₹ 86,000, Sandeep ₹ 80,000 (deficiency ₹ 16,000 borne 3 : 5)

Where the marks are

Shares and deficiency (1 mark)
Appropriation account with final shares (2 marks)

Open Q18(b) on its own page

Answer one of these 2 alternatives.

Q19(a) · 3 marks · Short answerAccounting for Share Capital

Raunak Cotton Ltd. purchased machinery of ₹ 6,80,000 from Heavy Machines Ltd. The Payment to Heavy Machines Ltd. was made by issuing 10,500 equity shares of ₹ 50 each at a premium of 20% and the balance through a cheque.

Pass necessary journal entries for the above transactions in the books of Raunak Cotton Ltd.

Try it first, then show our solutionSolution

Shares: 10,500 × ₹ 60 (₹ 50 + 20% premium) = ₹ 6,30,000 (capital ₹ 5,25,000, premium ₹ 1,05,000). Balance by cheque = 6,80,000 − 6,30,000 = ₹ 50,000.
Particulars Dr. (₹) Cr. (₹)
Machinery A/c Dr. 6,80,000
To Heavy Machines Ltd. 6,80,000
(Being machinery purchased)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Machinery A/c Dr.	6,80,000
To Heavy Machines Ltd.		6,80,000
(Being machinery purchased)

Particulars	Dr. (₹)	Cr. (₹)
Heavy Machines Ltd. Dr.	6,80,000
To Equity Share Capital A/c		5,25,000
To Securities Premium A/c		1,05,000
To Bank A/c		50,000
(Being vendor paid by 10,500 shares at 20% premium and a cheque)

The payment can also be split into two entries: shares ₹ 6,30,000 and cheque ₹ 50,000.

2 marks

Answer: Machinery Dr. ₹ 6,80,000 to Heavy Machines Ltd.; Heavy Machines Ltd. Dr. ₹ 6,80,000 to Share Capital ₹ 5,25,000, Securities Premium ₹ 1,05,000, Bank ₹ 50,000

Where the marks are

Purchase entry (1 mark)
Payment by shares at premium and cheque (2 marks)

Open Q19(a) on its own page

Q19(b) · 3 marks · Short answerIssue and Redemption of Debentures

Neo Ltd. took over assets of ₹ 25,00,000 and liabilities of ₹ 12,00,000 of Madura Ltd. for a purchase consideration of ₹ 18,00,000. Neo Ltd. issued 11% debentures of ₹ 100 each at a discount of 10% in full satisfaction of the purchase consideration.

Pass necessary journal entries for the above transactions in the books of Neo Ltd.

Try it first, then show our solutionSolution

Net assets = 25,00,000 − 12,00,000 = ₹ 13,00,000; consideration ₹ 18,00,000, so goodwill = ₹ 5,00,000. Debentures at ₹ 90: 18,00,000 / 90 = 20,000 debentures, face value ₹ 20,00,000, discount ₹ 2,00,000.
Particulars Dr. (₹) Cr. (₹)
Sundry Assets A/c Dr. 25,00,000
Goodwill A/c Dr. 5,00,000
To Sundry Liabilities A/c 12,00,000
To Madura Ltd. 18,00,000
(Being assets and liabilities of Madura Ltd. taken over)
1½ marks
Particulars Dr. (₹) Cr. (₹)
Madura Ltd. Dr. 18,00,000
Discount on Issue of Debentures A/c Dr. 2,00,000
To 11% Debentures A/c 20,00,000
(Being 20,000 debentures issued at 10% discount)
1½ marks

Particulars	Dr. (₹)	Cr. (₹)
Sundry Assets A/c Dr.	25,00,000
Goodwill A/c Dr.	5,00,000
To Sundry Liabilities A/c		12,00,000
To Madura Ltd.		18,00,000
(Being assets and liabilities of Madura Ltd. taken over)

Particulars	Dr. (₹)	Cr. (₹)
Madura Ltd. Dr.	18,00,000
Discount on Issue of Debentures A/c Dr.	2,00,000
To 11% Debentures A/c		20,00,000
(Being 20,000 debentures issued at 10% discount)

Answer: Goodwill ₹ 5,00,000; 20,000 debentures issued: Madura Ltd. ₹ 18,00,000 + Discount ₹ 2,00,000 to 11% Debentures ₹ 20,00,000

Where the marks are

Purchase entry with goodwill (1½ marks)
Issue of debentures at discount (1½ marks)

Open Q19(b) on its own page

Q20 · 3 marks · Short answerAccounting for Partnership: Basic Concepts
Shree and Hari were partners in a firm sharing profits and losses in the ratio of 2 : 3. Their fixed capitals were ₹ 4,00,000 and ₹ 3,00,000 respectively. The partnership deed provided that Hari is to be allowed a commission of 5% of net profit.
The net profit of the firm for the year ended 31st March, 2025 was ₹ 1,00,000.
Pass the following journal entries in the books of the firm :
1. (i)
  For crediting Hari's commission to his current account.
  1½ marks
2. (ii)
  For transferring the commission to Profit and Loss Appropriation Account.
  1½ marks
Try it first, then show our solutionSolution
1. Commission = 5% of ₹ 1,00,000 = ₹ 5,000. Capitals are fixed, so it goes to Hari's Current Account.
  Particulars Dr. (₹) Cr. (₹)
  Hari's Commission A/c Dr. 5,000
  To Hari's Current A/c 5,000
  (Being commission credited to Hari's current account)
  1½ marks
2. Particulars Dr. (₹) Cr. (₹)
  Profit and Loss Appropriation A/c Dr. 5,000
  To Hari's Commission A/c 5,000
  (Being commission transferred to Profit and Loss Appropriation Account)
  1½ marks
Answer: (i) Hari's Commission A/c Dr. ₹ 5,000 to Hari's Current A/c (ii) P&L Appropriation A/c Dr. ₹ 5,000 to Hari's Commission A/c
Where the marks are
- Commission credited to current account (1½ marks)
- Commission closed to appropriation account (1½ marks)
Open Q20 on its own page

Particulars	Dr. (₹)	Cr. (₹)
Hari's Commission A/c Dr.	5,000
To Hari's Current A/c		5,000
(Being commission credited to Hari's current account)

Particulars	Dr. (₹)	Cr. (₹)
Profit and Loss Appropriation A/c Dr.	5,000
To Hari's Commission A/c		5,000
(Being commission transferred to Profit and Loss Appropriation Account)

Q21 · 4 marks · Long answerIssue and Redemption of Debentures

On 1st April, 2024 Bhumika Ltd. issued 500, 9% debentures of ₹ 500 each at a discount of 10% redeemable at a premium of 6% after five years. On 31st March, 2025 the company had a balance of ₹ 30,000 in its Securities Premium Account.

Pass necessary journal entries for issue of 9% Debentures and writing off Loss on issue of Debentures. Also prepare 'Loss on Issue of Debentures Account'.

Try it first, then show our solutionSolution

Face value = 500 × ₹ 500 = ₹ 2,50,000; issue price ₹ 450, cash ₹ 2,25,000. Loss on issue = discount ₹ 25,000 + premium on redemption 6% ₹ 15,000 = ₹ 40,000.
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 2,25,000
To Debenture Application and Allotment A/c 2,25,000
(Being application money received, 1st April, 2024)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	2,25,000
To Debenture Application and Allotment A/c		2,25,000
(Being application money received, 1st April, 2024)

Particulars	Dr. (₹)	Cr. (₹)
Debenture Application and Allotment A/c Dr.	2,25,000
Loss on Issue of Debentures A/c Dr.	40,000
To 9% Debentures A/c		2,50,000
To Premium on Redemption of Debentures A/c		15,000
(Being debentures allotted at 10% discount, redeemable at 6% premium)

1 mark

Write off on 31st March, 2025: Securities Premium first (₹ 30,000), balance ₹ 10,000 from the Statement of Profit and Loss.
Particulars Dr. (₹) Cr. (₹)
Securities Premium A/c Dr. 30,000
Statement of Profit and Loss Dr. 10,000
To Loss on Issue of Debentures A/c 40,000
(Being loss on issue written off)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Securities Premium A/c Dr.	30,000
Statement of Profit and Loss Dr.	10,000
To Loss on Issue of Debentures A/c		40,000
(Being loss on issue written off)

Loss on Issue of Debentures Account

Particulars	₹	Particulars	₹
01.04.2024 To 9% Debentures A/c	25,000	31.03.2025 By Securities Premium A/c	30,000
01.04.2024 To Premium on Redemption of Debentures A/c	15,000	31.03.2025 By Statement of Profit and Loss	10,000
	40,000		40,000

1 mark

Answer: Bank ₹ 2,25,000; Loss on issue ₹ 40,000 (discount ₹ 25,000 + premium ₹ 15,000); written off Securities Premium ₹ 30,000 and Statement of P&L ₹ 10,000

Where the marks are

Receipt entry (1 mark)
Allotment with loss on issue (1 mark)
Write-off entry (1 mark)
Loss on Issue of Debentures Account (1 mark)

Open Q21 on its own page

Q22 · 4 marks · Long answerReconstitution of a Partnership Firm – Retirement/Death of a Partner
Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. As per the terms of the partnership deed, on the death of any partner, the goodwill of the firm will be calculated on the basis of four times the average profits of the last three years. Hina died on 1st July 2025. The Profits for the last three years were :
2022-23 ₹ 4,75,000
2023-24 ₹ 4,05,000
2024-25 ₹ 3,20,000
Hina's share of profit upto the date of death was to be calculated on the basis of previous year's profit.
1. (i)
  Calculate goodwill of the firm and Hina's share of goodwill.
  1 mark
2. (ii)
  Calculate Hina's share in the profits of the firm till the date of her death.
  1 mark
3. (iii)
  Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Hina's share of profit at the time of her death.
  2 marks
Try it first, then show our solutionSolution
1. (i) Average profit = (4,75,000 + 4,05,000 + 3,20,000)/3 = ₹ 4,00,000. Goodwill = 4 × 4,00,000 = ₹ 16,00,000; Hina's share = 2/10 × 16,00,000 = ₹ 3,20,000.
  1 mark
2. (ii) Hina's profit share from 1st April to 1st July 2025 (3 months), on last year's profit: 3,20,000 × 2/10 × 3/12 = ₹ 16,000.
  1 mark
3. (iii) Goodwill is borne by Kiran and Raveena in their gaining ratio 5 : 3.
  Particulars Dr. (₹) Cr. (₹)
  Kiran's Capital A/c Dr. 2,00,000
  Raveena's Capital A/c Dr. 1,20,000
  To Hina's Capital A/c 3,20,000
  (Being Hina's share of goodwill adjusted)
  1 mark
4. Particulars Dr. (₹) Cr. (₹)
  Profit and Loss Suspense A/c Dr. 16,000
  To Hina's Capital A/c 16,000
  (Being Hina's share of profit till date of death)
  1 mark
Answer: (i) Goodwill ₹ 16,00,000; Hina's share ₹ 3,20,000 (ii) ₹ 16,000 (iii) Kiran ₹ 2,00,000 and Raveena ₹ 1,20,000 Dr. to Hina ₹ 3,20,000; P&L Suspense Dr. ₹ 16,000 to Hina
Where the marks are
- Goodwill and Hina's share (1 mark)
- Profit till death (1 mark)
- Goodwill entry (1 mark)
- P&L Suspense entry (1 mark)
Open Q22 on its own page

Particulars	Dr. (₹)	Cr. (₹)
Kiran's Capital A/c Dr.	2,00,000
Raveena's Capital A/c Dr.	1,20,000
To Hina's Capital A/c		3,20,000
(Being Hina's share of goodwill adjusted)

Particulars	Dr. (₹)	Cr. (₹)
Profit and Loss Suspense A/c Dr.	16,000
To Hina's Capital A/c		16,000
(Being Hina's share of profit till date of death)

Q23 · 6 marks · Long answerDissolution of Partnership Firm

Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Ravneet and Manmeet as on 31st March, 2025

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	4,50,000	Cash at Bank	2,50,000
Capitals :		Stock	2,50,000
Ravneet 5,00,000		Debtors	2,00,000
Manmeet 3,00,000	8,00,000	Plant & Machinery	5,50,000
	12,50,000		12,50,000

On the above date, the firm was dissolved. The plant and machinery was sold at ₹ 4,87,000 and stock at 20% less than the book value. Debtors realised ₹ 1,40,000.

Ravneet agreed to bear all realisation expenses for which he was allowed a commission of ₹ 9,000. Actual realisation expenses amounted to ₹ 7,500.

Prepare Realisation Account and Partners' Capital Accounts.

Try it first, then show our solutionSolution

Workings. Stock realises 80% of 2,50,000 = ₹ 2,00,000. Ravneet bears the expenses himself, so the firm pays none; his commission of ₹ 9,000 is a realisation expense credited to his capital.
½ mark

Realisation Account

Particulars	₹	Particulars	₹
To Stock	2,50,000	By Creditors	4,50,000
To Debtors	2,00,000	By Bank A/c (plant and machinery)	4,87,000
To Plant and Machinery	5,50,000	By Bank A/c (stock)	2,00,000
To Bank A/c (creditors)	4,50,000	By Bank A/c (debtors)	1,40,000
To Ravneet's Capital A/c (commission)	9,000	By Loss: Ravneet's Capital A/c	1,27,400
		By Loss: Manmeet's Capital A/c	54,600
	14,59,000		14,59,000

3½ marks

Partners' Capital Accounts

Particulars	Ravneet (₹)	Manmeet (₹)	Particulars	Ravneet (₹)	Manmeet (₹)
To Realisation A/c (loss)	1,27,400	54,600	By Balance b/d	5,00,000	3,00,000
To Bank A/c	3,81,600	2,45,400	By Realisation A/c (commission)	9,000
	5,09,000	3,00,000		5,09,000	3,00,000

2 marks

Answer: Realisation loss ₹ 1,82,000 (Ravneet ₹ 1,27,400, Manmeet ₹ 54,600); final payments Ravneet ₹ 3,81,600, Manmeet ₹ 2,45,400

Where the marks are

Workings for stock and commission (½ mark)
Realisation Account (3½ marks)
Capital accounts closed by payment (2 marks)

Open Q23 on its own page

Answer one of these 2 alternatives.

Q24(a) · 6 marks · Long answerAccounting for Share Capital

Generic Pharma Ltd. invited applications for using 3,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows :

on Application and Allotment – ₹ 4 per share (including premium of ₹ 2 per share)

on First and Final Call – Balance

Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on applications was adjusted towards sums due on first and final call. Jain, an applicant for 3,600 shares failed to pay the first and final call. His shares were forfeited.

Pass necessary journal entries in the books of Generic Pharma Ltd. for the above transactions. Open 'calls in arrears account' and 'calls in advance account', wherever necessary.

Try it first, then show our solutionSolution

Working. Per share: application and allotment ₹ 2 capital + ₹ 2 premium; call ₹ 8 capital + ₹ 4 premium. 3,60,000 applicants get 3,00,000 shares (6 : 5); excess 60,000 × 4 = ₹ 2,40,000 held as calls in advance. Jain (3,600 applied, 3,000 allotted) had ₹ 2,400 in advance, so his arrears = 3,000 × 12 − 2,400 = ₹ 33,600.
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 16,00,000
To Equity Share Application and Allotment A/c 16,00,000
(Being application money received on 4,00,000 shares at ₹ 4)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	16,00,000
To Equity Share Application and Allotment A/c		16,00,000
(Being application money received on 4,00,000 shares at ₹ 4)

Particulars	Dr. (₹)	Cr. (₹)
Equity Share Application and Allotment A/c Dr.	16,00,000
To Equity Share Capital A/c		6,00,000
To Securities Premium A/c		6,00,000
To Calls in Advance A/c		2,40,000
To Bank A/c		1,60,000
(Being application money adjusted, excess held and rejected money refunded)

1½ marks

Particulars Dr. (₹) Cr. (₹)
Equity Share First and Final Call A/c Dr. 36,00,000
To Equity Share Capital A/c 24,00,000
To Securities Premium A/c 12,00,000
(Being call money due)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Equity Share First and Final Call A/c Dr.	36,00,000
To Equity Share Capital A/c		24,00,000
To Securities Premium A/c		12,00,000
(Being call money due)

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	33,26,400
Calls in Arrears A/c Dr.	33,600
Calls in Advance A/c Dr.	2,40,000
To Equity Share First and Final Call A/c		36,00,000
(Being call money received except from Jain)

1 mark

Forfeiture: capital called ₹ 10 × 3,000 and unpaid premium ₹ 4 × 3,000 are cancelled; Jain had paid 3,000 × 2 + 2,400 = ₹ 8,400 towards capital.
Particulars Dr. (₹) Cr. (₹)
Equity Share Capital A/c Dr. 30,000
Securities Premium A/c Dr. 12,000
To Share Forfeiture A/c 8,400
To Calls in Arrears A/c 33,600
(Being Jain's 3,000 shares forfeited)
1½ marks

Particulars	Dr. (₹)	Cr. (₹)
Equity Share Capital A/c Dr.	30,000
Securities Premium A/c Dr.	12,000
To Share Forfeiture A/c		8,400
To Calls in Arrears A/c		33,600
(Being Jain's 3,000 shares forfeited)

Answer: Application ₹ 16,00,000 (capital ₹ 6,00,000, premium ₹ 6,00,000, advance ₹ 2,40,000, refund ₹ 1,60,000); call ₹ 36,00,000, Bank ₹ 33,26,400, arrears ₹ 33,600; forfeiture to Share Forfeiture ₹ 8,400

Where the marks are

Money received (1 mark)
Application adjustment (1½ marks)
Call due (1 mark)
Call received (1 mark)
Forfeiture (1½ marks)

Open Q24(a) on its own page

Q24(b) · 6 marks · Long answerAccounting for Share Capital

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :

(i)
Diksha Ltd. forfeited 3,000 shares of ₹ 10 each for non-payment of final call of ₹ 2 per share. Out of these, 600 shares were reissued as fully paid up in such a way that ₹ 4,200 was transferred to capital reserve.
3 marks
(ii)
Ashoka Ltd. forfeited 2,000 equity shares of ₹ 100 each issued at a premium of 10% for non-payment of allotment money of ₹ 60 per share (including premium). The first and final call of ₹ 20 per share was not yet made. The forfeited shares were re-issued at ₹ 70 per share fully paid up.
3 marks

Try it first, then show our solutionSolution

(i) Diksha Ltd. Paid ₹ 8 per share: forfeiture = 3,000 × 8 = ₹ 24,000.
Particulars Dr. (₹) Cr. (₹)
Share Capital A/c Dr. 30,000
To Share Forfeiture A/c 24,000
To Share Final Call A/c 6,000
(Being 3,000 shares forfeited)
1 mark
Forfeited amount on 600 shares = ₹ 4,800. Since ₹ 4,200 goes to capital reserve, the discount was ₹ 600 (₹ 1 per share), i.e. reissue at ₹ 9.
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 5,400
Share Forfeiture A/c Dr. 600
To Share Capital A/c 6,000
(Being 600 shares reissued at ₹ 9 as fully paid)
1 mark
Particulars Dr. (₹) Cr. (₹)
Share Forfeiture A/c Dr. 4,200
To Capital Reserve A/c 4,200
(Being gain on reissued shares transferred)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Share Capital A/c Dr.	30,000
To Share Forfeiture A/c		24,000
To Share Final Call A/c		6,000
(Being 3,000 shares forfeited)

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	5,400
Share Forfeiture A/c Dr.	600
To Share Capital A/c		6,000
(Being 600 shares reissued at ₹ 9 as fully paid)

Particulars	Dr. (₹)	Cr. (₹)
Share Forfeiture A/c Dr.	4,200
To Capital Reserve A/c		4,200
(Being gain on reissued shares transferred)

(ii) Ashoka Ltd. Called up ₹ 80 per share (capital); allotment ₹ 60 included ₹ 10 premium. Only the application money (₹ 30 capital) was paid: forfeiture ₹ 60,000.

Particulars	Dr. (₹)	Cr. (₹)
Equity Share Capital A/c Dr.	1,60,000
Securities Premium A/c Dr.	20,000
To Share Forfeiture A/c		60,000
To Equity Share Allotment A/c		1,20,000
(Being 2,000 shares forfeited for non-payment of allotment)

1½ marks

Reissue at ₹ 70 fully paid: discount ₹ 30 per share = ₹ 60,000, which uses up the whole forfeited amount, so nothing goes to capital reserve.
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 1,40,000
Share Forfeiture A/c Dr. 60,000
To Equity Share Capital A/c 2,00,000
(Being 2,000 shares reissued at ₹ 70 fully paid)
1½ marks

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	1,40,000
Share Forfeiture A/c Dr.	60,000
To Equity Share Capital A/c		2,00,000
(Being 2,000 shares reissued at ₹ 70 fully paid)

Answer: (i) Forfeiture ₹ 24,000; reissue at ₹ 9: Bank ₹ 5,400 + Forfeiture ₹ 600; Capital Reserve ₹ 4,200 (ii) Capital ₹ 1,60,000 + Premium ₹ 20,000 to Forfeiture ₹ 60,000 and Allotment ₹ 1,20,000; reissue Bank ₹ 1,40,000 + Forfeiture ₹ 60,000; no capital reserve

Where the marks are

(i) forfeiture, reissue, capital reserve (1 mark each)
(ii) forfeiture (1½ marks) and reissue (1½ marks)

Open Q24(b) on its own page

Answer one of these 2 alternatives.

Q25(a) · 6 marks · Long answerReconstitution of a Partnership Firm – Admission of a Partner

Sanjay and Vijay were partners in a firm sharing profits and losses in the ratio of 4 : 3. On 1st April, 2025 they admitted Babul as a new partner for $\frac{2}{5}$ th share in the profits of the firm. On Babul's admission, the following was agreed upon :

(i) The new profit sharing ratio of Sanjay, Vijay and Babul will be 3 : 3 : 4.

(ii) The goodwill of the firm will be valued at four years purchase of the average profits of the last three years. The profits of the previous three years were :

Year	Profit (₹)
2022-23	16,500
2023-24	17,500
2024-25	18,500

(iii) Babul will bring his share of goodwill premium in cash, half of which will be withdrawn by Sanjay and Vijay.

(iv) On Babul's admission, revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 70,000.

(v) At the time of Babul's admission, the firm had a General Reserve of ₹ 28,000.

(vi) After making necessary adjustments relating to goodwill, loss on revaluation and general reserve, the capital accounts of Sanjay and Vijay showed balances of ₹ 3,50,000 and ₹ 2,50,000 respectively. Babul brought proportionate capital for his 2/5th share in the profits of the firm.

Showing your workings clearly pass necessary journal entries for the above transactions in the books of the firm on Babul's admission.

Try it first, then show our solutionSolution

Workings. Average profit = (16,500 + 17,500 + 18,500)/3 = ₹ 17,500; goodwill = 4 × 17,500 = ₹ 70,000; Babul's share = 2/5 × 70,000 = ₹ 28,000. Sacrifice: Sanjay 4/7 − 3/10 = 19/70, Vijay 3/7 − 3/10 = 9/70, ratio 19 : 9. Babul's capital = (3,50,000 + 2,50,000) × 5/3 × 2/5 = ₹ 4,00,000.
1 mark
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 28,000
To Premium for Goodwill A/c 28,000
(Being goodwill premium brought in by Babul)
½ mark
Particulars Dr. (₹) Cr. (₹)
Premium for Goodwill A/c Dr. 28,000
To Sanjay's Capital A/c 19,000
To Vijay's Capital A/c 9,000
(Being premium shared in sacrificing ratio 19 : 9)
1 mark
Particulars Dr. (₹) Cr. (₹)
Sanjay's Capital A/c Dr. 9,500
Vijay's Capital A/c Dr. 4,500
To Bank A/c 14,000
(Being half the premium withdrawn)
1 mark

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	28,000
To Premium for Goodwill A/c		28,000
(Being goodwill premium brought in by Babul)

Particulars	Dr. (₹)	Cr. (₹)
Premium for Goodwill A/c Dr.	28,000
To Sanjay's Capital A/c		19,000
To Vijay's Capital A/c		9,000
(Being premium shared in sacrificing ratio 19 : 9)

Particulars	Dr. (₹)	Cr. (₹)
Sanjay's Capital A/c Dr.	9,500
Vijay's Capital A/c Dr.	4,500
To Bank A/c		14,000
(Being half the premium withdrawn)

Particulars	Dr. (₹)	Cr. (₹)
Sanjay's Capital A/c Dr.	40,000
Vijay's Capital A/c Dr.	30,000
To Revaluation A/c		70,000
(Being revaluation loss shared in old ratio 4 : 3)
General Reserve A/c Dr.	28,000
To Sanjay's Capital A/c		16,000
To Vijay's Capital A/c		12,000
(Being general reserve shared in old ratio)

2 marks

Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 4,00,000
To Babul's Capital A/c 4,00,000
(Being proportionate capital brought in by Babul)
½ mark

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c Dr.	4,00,000
To Babul's Capital A/c		4,00,000
(Being proportionate capital brought in by Babul)

Answer: Goodwill ₹ 70,000; premium ₹ 28,000 to Sanjay ₹ 19,000 and Vijay ₹ 9,000, half withdrawn (₹ 9,500 and ₹ 4,500); revaluation loss ₹ 40,000 and ₹ 30,000; reserve ₹ 16,000 and ₹ 12,000; Babul's capital ₹ 4,00,000

Where the marks are

Workings: goodwill, sacrificing ratio 19 : 9, proportionate capital (1 mark)
Premium brought (½ mark)
Premium distributed (1 mark)
Withdrawal (1 mark)
Revaluation loss and reserve (2 marks)
Capital brought (½ mark)

Open Q25(a) on its own page

Q25(b) · 6 marks · Long answerReconstitution of a Partnership Firm – Retirement/Death of a Partner

Anuj, Divij and Shilpa were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their Balance Sheet as at 31st March, 2023 was as follows :

Balance Sheet of Anuj, Divij and Shilpa as at 31st March, 2023

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals :		Land & Building	8,00,000
Anuj 3,00,000		Furniture	2,40,000
Divij 4,00,000		Stock	1,20,000
Shilpa 5,00,000	12,00,000	Debtors	1,70,000
Bills Payable	60,000	Cash	50,000
Creditors	1,20,000
	13,80,000		13,80,000

Anuj retired on the above date on the following terms :

(i) Anuj's share of goodwill was valued at ₹ 90,000 and the same was to be treated without opening goodwill account.

(ii) Revaluation of assets and reassessment of liabilities resulted in a gain of ₹ 25,000.

(iii) Amount due to Anuj was transferred to his loan account, to be paid in two equal yearly instalments plus interest @ 12% p.a. on the unpaid balance starting from 31st March, 2024.

Prepare Partners' Capital Accounts and Anuj's Loan Account till it is fully discharged.

Try it first, then show our solutionSolution

Goodwill. Anuj's ₹ 90,000 is paid by the gainers Divij and Shilpa in their ratio 1 : 2: ₹ 30,000 and ₹ 60,000. Revaluation gain ₹ 25,000 in 2 : 1 : 2: ₹ 10,000, ₹ 5,000, ₹ 10,000.
½ mark

Partners' Capital Accounts

Particulars	Anuj (₹)	Divij (₹)	Shilpa (₹)	Particulars	Anuj (₹)	Divij (₹)	Shilpa (₹)
To Anuj's Capital A/c		30,000	60,000	By Balance b/d	3,00,000	4,00,000	5,00,000
To Anuj's Loan A/c	4,00,000			By Divij's Capital A/c	30,000
To Balance c/d		3,75,000	4,50,000	By Shilpa's Capital A/c	60,000
				By Revaluation A/c (gain)	10,000	5,000	10,000
	4,00,000	4,05,000	5,10,000		4,00,000	4,05,000	5,10,000

2½ marks

Loan ₹ 4,00,000 repaid in two equal instalments of ₹ 2,00,000 with 12% interest on the balance: ₹ 48,000 in 2024, ₹ 24,000 in 2025.
½ mark

Anuj's Loan Account

Particulars	₹	Particulars	₹
31.03.2023 To Balance c/d	4,00,000	31.03.2023 By Anuj's Capital A/c	4,00,000
	4,00,000		4,00,000
31.03.2024 To Bank A/c	2,48,000	01.04.2023 By Balance b/d	4,00,000
31.03.2024 To Balance c/d	2,00,000	31.03.2024 By Interest A/c	48,000
	4,48,000		4,48,000
31.03.2025 To Bank A/c	2,24,000	01.04.2024 By Balance b/d	2,00,000
		31.03.2025 By Interest A/c	24,000
	2,24,000		2,24,000

2½ marks

Answer: Anuj's loan ₹ 4,00,000; Divij ₹ 3,75,000, Shilpa ₹ 4,50,000; instalments ₹ 2,48,000 (2024) and ₹ 2,24,000 (2025)

Where the marks are

Goodwill and revaluation shares (½ mark)
Capital accounts (2½ marks)
Interest workings (½ mark)
Loan account till discharged (2½ marks)

Open Q25(b) on its own page

Q26 · 6 marks · Case-basedCompetency-basedAccounting for Share Capital
Dharma Ltd. was registered with an authorised capital of ₹ 30,00,000 divided into 3,00,000 equity shares of ₹ 10 each. The amount was payable as follows :
On Application – ₹ 2 per share
On Allotment – ₹ 5 per share
On First and Final Call – Balance
The company offered 90,000 shares for public subscription. All the shares were subscribed and the company received all the money due, except allotment and call money on 4,000 shares held by Aditi and call money on 3,000 shares held by Rohit. The directors forfeited shares of Aditi and Rohit.
Answer the following questions on the basis of above information :
1. (i)
  The nominal capital of Dharma Ltd. is :
  (A)₹ 30,00,000
  (B)₹ 3,00,000
  (C)₹ 9,00,000
  (D)₹ 33,00,000
  1 mark
2. (ii)
  The issued capital of the company is :
  (A)₹ 3,00,000
  (B)₹ 30,00,000
  (C)₹ 9,00,000
  (D)₹ 33,00,000
  1 mark
3. (iii)
  Subscribed and fully paid capital of Dharma Ltd. will be :
  (A)₹ 9,00,000
  (B)₹ 8,30,000
  (C)₹ 8,56,000
  (D)Nil
  1 mark
4. (iv)
  The amount of 'Share Capital' presented in the Balance sheet of Dharma Ltd. under 'Shareholders Funds' will be :
  (A)₹ 8,30,000
  (B)₹ 8,59,000
  (C)₹ 9,00,000
  (D)₹ 30,00,000
  1 mark
5. (v)
  In the Notes to Accounts, the amount to be shown under 'Share Forfeiture Account' will be :
  (A)₹ 32,000
  (B)₹ 12,000
  (C)₹ 44,000
  (D)₹ 29,000
  1 mark
6. (vi)
  Subscribed and not fully paid capital of Dharma Ltd. will be :
  (A)₹ 9,00,000
  (B)₹ 8,30,000
  (C)₹ 8,56,000
  (D)Nil
  1 mark
Try it first, then show our solutionSolution
1. (i) Nominal (authorised) capital = 3,00,000 × ₹ 10 = ₹ 30,00,000. Option (A).
  1 mark
2. (ii) Issued capital = 90,000 × ₹ 10 = ₹ 9,00,000. Option (C).
  1 mark
3. (iii) After forfeiting Aditi's 4,000 and Rohit's 3,000 shares, 83,000 shares remain fully paid: ₹ 8,30,000. Option (B).
  1 mark
4. (iv) Share capital in the Balance Sheet = ₹ 8,30,000 + Share Forfeiture ₹ 29,000 = ₹ 8,59,000. Option (B).
  1 mark
5. (v) Aditi paid only application money: 4,000 × 2 = ₹ 8,000. Rohit paid application and allotment: 3,000 × 7 = ₹ 21,000. Share Forfeiture = ₹ 29,000. Option (D).
  1 mark
6. (vi) All defaulters' shares were forfeited, so no shares are subscribed but not fully paid: Nil. Option (D).
  1 mark
Answer: (i) A ₹ 30,00,000 (ii) C ₹ 9,00,000 (iii) B ₹ 8,30,000 (iv) B ₹ 8,59,000 (v) D ₹ 29,000 (vi) D Nil
Where the marks are
- Each part (1 mark each)
Open Q26 on its own page

Section B-I

Option I Analysis of Financial Statements: MCQ 27-30, short 31-32, long 33 (4), 34 (6)

Answer one of these 2 alternatives.
Q27(a) · 1 mark · MCQAnalysis of Financial Statements
The process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of Balance Sheet and the Statement of Profit and Loss is called :
1. (A)Comparative Statement Analysis
2. (B)Cash Flow Analysis
3. (C)Financial Analysis
4. (D)Common Size Analysis
Try it first, then show our solutionSolution
1. Financial analysis means studying the relationships among items of the Balance Sheet and the Statement of Profit and Loss to judge the firm's financial strengths and weaknesses.
2. Comparative, common size and cash flow analysis are only tools of it. Option (C).
  1 mark
Answer: (C) Financial Analysis
Where the marks are
- Financial analysis (1 mark)
Open Q27(a) on its own page
OR
Q27(b) · 1 mark · MCQAccounting Ratios
Ratios calculated to measure the ability of the business to pay the amount due to stakeholders as and when it is due are known as :
1. (A)Solvency ratios
2. (B)Liquidity ratios
3. (C)Activity ratios
4. (D)Profitability ratios
Try it first, then show our solutionSolution
1. The ability to pay amounts due to stakeholders as and when they fall due is liquidity.
2. Ratios that measure it (current ratio, quick ratio) are liquidity ratios. Option (B).
  1 mark
Answer: (B) Liquidity ratios
Where the marks are
- Liquidity ratios (1 mark)
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Q28 · 1 mark · MCQAccounting Ratios
Which of the following transaction will affect the 'Gross Profit Ratio' of a company :
(i) Revenue from operations ₹ 1,00,000
(ii) Purchased goods worth ₹ 70,000.
(iii) Goods costing ₹ 15,000 withdrawn for personal use.
(iv) Goods costing ₹ 50,000 sold for ₹ 60,000.
1. (A)(iv)
2. (B)(i) and (ii)
3. (C)(ii) and (iii)
4. (D)(i) and (iii)
Try it first, then show our solutionSolution
1. Gross profit ratio = gross profit / revenue from operations. A purchase of goods raises purchases and closing inventory equally, and goods withdrawn for personal use are taken out of purchases, so neither changes cost of revenue from operations or revenue.
2. Selling goods costing ₹ 50,000 for ₹ 60,000 changes both gross profit and revenue from operations, so only (iv) affects the ratio. Option (A).
  1 mark
Answer: (A) (iv)
Where the marks are
- Identifies the sale at a profit (1 mark)
Open Q28 on its own page
Answer one of these 2 alternatives.
Q29(a) · 1 mark · MCQCash Flow Statement
Purchase of marketable securities or short term investments are not considered for the preparation of cash flow statement because :
1. (A)These are current assets
2. (B)These constitute cash equivalents
3. (C)These are intangible assets
4. (D)These are tangible assets
Try it first, then show our solutionSolution
1. Short-term, highly liquid investments such as marketable securities are cash equivalents.
2. Moving cash into cash equivalents is not a cash flow, so it is ignored. Option (B).
  1 mark
Answer: (B) These constitute cash equivalents
Where the marks are
- Cash equivalents (1 mark)
Open Q29(a) on its own page
OR
Q29(b) · 1 mark · MCQCash Flow Statement
Which of the following will not amount to cash outflow from operating activities ?
1. (A)Purchase of marketable securities
2. (B)Cash payment to suppliers of goods
3. (C)Payment of employee benefit expenses
4. (D)Payment of insurance premium
Try it first, then show our solutionSolution
1. Payments to suppliers, employees and for insurance are operating outflows.
2. Purchase of marketable securities is not an operating outflow (they are cash equivalents or, if not, investing). Option (A).
  1 mark
Answer: (A) Purchase of marketable securities
Where the marks are
- Identifies the non-operating item (1 mark)
Open Q29(b) on its own page
Q30 · 1 mark · MCQCash Flow Statement
Statement – I : In case of non-financial enterprises, receipts of interest and dividend are classified as financing activities.
Statement – II : In case of financial enterprises receipts of interest and dividend are classified as investing activities.
Choose the correct option from the following :
1. (A)Both the Statements are true.
2. (B)Statement I is true and Statement II is false.
3. (C)Statement I is false and Statement II is true.
4. (D)Both the Statements are false.
Try it first, then show our solutionSolution
1. For a non-financial enterprise, interest and dividend received are investing activities, not financing: Statement I is false.
2. For a financial enterprise they are operating activities, not investing: Statement II is false too. Option (D).
  1 mark
Answer: (D) Both the Statements are false
Where the marks are
- Correct classification for both (1 mark)
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Q31 · 3 marks · Short answerFinancial Statements of a Company
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013 :
(i) Stores and Spare parts
(ii) Livestock
(iii) Public Deposits
Try it first, then show our solutionSolution
1. (i) Stores and spare parts: Current Assets – Inventories.
  1 mark
2. (ii) Livestock: Non-Current Assets – Property, Plant and Equipment and Intangible Assets (Property, Plant and Equipment).
  1 mark
3. (iii) Public deposits: Non-Current Liabilities – Long-term Borrowings.
  1 mark
Answer: (i) Current Assets – Inventories (ii) Non-Current Assets – Property, Plant and Equipment (iii) Non-Current Liabilities – Long-term Borrowings
Where the marks are
- Each item with major head and sub-head (1 mark each)
Open Q31 on its own page

Q32 · 3 marks · Short answerAnalysis of Financial Statements

From the following Balance sheets of Royal Sugar Mills Ltd. as at 31st March, 2024 and 2025, prepare a Comparative Balance Sheet :

Particulars	31-3-2025 (₹)	31-3-2024 (₹)
I. Equity and Liabilities :
1. Shareholders' Funds: Share Capital	24,00,000	20,00,000
2. Non-current Liabilities: Long term borrowings	12,00,000	10,00,000
3. Current liabilities: Trade Payables	6,00,000	5,00,000
Total	42,00,000	35,00,000
II. Assets :
1. Non-Current Assets: Property, plant and equipment and intangible assets	30,00,000	25,00,000
2. Current Assets: (a) Inventories	2,00,000	4,00,000
(b) Cash & Cash equivalents	10,00,000	6,00,000
Total	42,00,000	35,00,000

Try it first, then show our solutionSolution

Comparative Balance Sheet of Royal Sugar Mills Ltd. as at 31st March, 2024 and 2025

Particulars	31.3.2024 (₹)	31.3.2025 (₹)	Absolute change (₹)	% change
I. Equity and Liabilities
Shareholders' Funds: Share Capital	20,00,000	24,00,000	4,00,000	20
Non-current Liabilities: Long-term borrowings	10,00,000	12,00,000	2,00,000	20
Current Liabilities: Trade Payables	5,00,000	6,00,000	1,00,000	20
Total	35,00,000	42,00,000	7,00,000	20

1½ marks

Particulars	31.3.2024 (₹)	31.3.2025 (₹)	Absolute change (₹)	% change
II. Assets
Non-current Assets: Property, plant and equipment and intangible assets	25,00,000	30,00,000	5,00,000	20
Current Assets: Inventories	4,00,000	2,00,000	(2,00,000)	(50)
Current Assets: Cash and cash equivalents	6,00,000	10,00,000	4,00,000	66.67
Total	35,00,000	42,00,000	7,00,000	20

1½ marks

Answer: Every liability item and the total rise 20%; PPE +20%, inventories −50%, cash +66.67%; totals ₹ 35,00,000 → ₹ 42,00,000

Where the marks are

Liabilities side with changes (1½ marks)
Assets side with changes (1½ marks)

Open Q32 on its own page

Answer one of these 2 alternatives.

Q33(a) · 4 marks · Long answerAccounting Ratios

From the following information, calculate :

(i) Current ratio and

(ii) Debt to capital employed ratio

Information	₹
Total Assets	6,00,000
Non-Current Liabilities	1,40,000
Shareholders' Funds	4,20,000
Non-current Assets	5,20,000

Try it first, then show our solutionSolution

Current assets = total assets − non-current assets = 6,00,000 − 5,20,000 = ₹ 80,000. Current liabilities = total assets − non-current liabilities − shareholders' funds = 6,00,000 − 1,40,000 − 4,20,000 = ₹ 40,000.
1 mark
(i) Current ratio = 80,000 / 40,000 = 2 : 1.
1 mark
Debt = non-current liabilities ₹ 1,40,000; capital employed = 4,20,000 + 1,40,000 = ₹ 5,60,000 (equally, 5,20,000 + 80,000 − 40,000).
1 mark
(ii) Debt to capital employed = 1,40,000 / 5,60,000 = 0.25 : 1 (1 : 4).
1 mark

Answer: (i) Current ratio 2 : 1 (ii) Debt to capital employed 0.25 : 1

Where the marks are

Current assets and liabilities (1 mark)
Current ratio (1 mark)
Debt and capital employed (1 mark)
Debt to capital employed ratio (1 mark)

Open Q33(a) on its own page

Q33(b) · 4 marks · Long answerAccounting Ratios

From the following information, calculate :

(i) Debt-Equity Ratio and

(ii) Total Assets to Debt ratio

Information	₹
Long-term borrowings	8,00,000
Other long-term liabilities	80,000
Long term provisions	1,20,000
Share capital	24,00,000
Reserves and Surplus	6,00,000
Non-current Assets	36,00,000
Current Assets	14,00,000
Current Liabilities	10,00,000

Try it first, then show our solutionSolution

Debt = long-term borrowings + other long-term liabilities + long-term provisions = 8,00,000 + 80,000 + 1,20,000 = ₹ 10,00,000. Equity = 24,00,000 + 6,00,000 = ₹ 30,00,000.
1 mark
(i) Debt-equity ratio = 10,00,000 / 30,00,000 = 1 : 3 (0.33 : 1).
1 mark
Total assets = 36,00,000 + 14,00,000 = ₹ 50,00,000.
1 mark
(ii) Total assets to debt = 50,00,000 / 10,00,000 = 5 : 1. (The scheme also accepts debt taken as borrowings plus provisions only, ₹ 9,20,000: 0.31 : 1 and 5.43 : 1.)
1 mark

Answer: (i) Debt-equity 1 : 3 (0.33 : 1) (ii) Total assets to debt 5 : 1

Where the marks are

Debt and equity (1 mark)
Debt-equity ratio (1 mark)
Total assets (1 mark)
Total assets to debt ratio (1 mark)

Open Q33(b) on its own page

Q34 · 6 marks · Long answerCash Flow Statement

For the year ended 31st March 2025, Sona Ltd. made a profit of ₹ 4,00,000 after charging depreciation of ₹ 75,000 on fixed assets and a transfer of ₹ 1,50,000 to general reserve. Goodwill written off during the year was ₹ 80,000. The company sold machinery of the book value of ₹ 90,000 at ₹ 95,000. During the year, trade receivables increased by ₹ 40,000 and trade payables increased by ₹ 30,000. Prepaid expenses increased by ₹ 2,000 and outstanding wages decreased by ₹ 20,000.

Calculate cash flows from operating activities.

Try it first, then show our solutionSolution

Net profit before tax = profit ₹ 4,00,000 + transfer to general reserve ₹ 1,50,000 = ₹ 5,50,000.
1 mark
Add depreciation ₹ 75,000 and goodwill written off ₹ 80,000; deduct gain on sale of machinery (95,000 − 90,000) ₹ 5,000. Operating profit before working capital changes = ₹ 7,00,000.
2 marks

Cash flows from operating activities

Particulars	₹
Net profit before tax	5,50,000
Add: Depreciation	75,000
Add: Goodwill written off	80,000
Less: Gain on sale of machinery	(5,000)
Operating profit before working capital changes	7,00,000
Add: Increase in trade payables	30,000
Less: Increase in trade receivables	(40,000)
Less: Increase in prepaid expenses	(2,000)
Less: Decrease in outstanding wages	(20,000)
Cash flows from operating activities	6,68,000

3 marks

Answer: Cash flows from operating activities ₹ 6,68,000 (operating profit before working capital changes ₹ 7,00,000)

Where the marks are

Net profit before tax ₹ 5,50,000 (1 mark)
Non-cash and non-operating adjustments to ₹ 7,00,000 (2 marks)
Working capital changes and result (3 marks)

Open Q34 on its own page

Section B-II

Option II Computerised Accounting: MCQ 27-30, short 31-32, long 33 (4), 34 (6)

Answer one of these 2 alternatives.
Q27(a) · 1 mark · MCQOverview of Computerised Accounting System
The encryption of data facilitates :
1. (A)Easy processing of data and keeping records.
2. (B)Securing the accounting reports.
3. (C)Generation of mnemonic codes.
4. (D)Codification
Solution being checked. We show a solution only after an independent check agrees with it.
OR
Q27(b) · 1 mark · MCQSpreadsheet
How many columns exist on Excel 2006 worksheet ?
1. (A)2056
2. (B)256
3. (C)275
4. (D)26
Solution being checked. We show a solution only after an independent check agrees with it.
Q28 · 1 mark · MCQSpreadsheet
Which of the following is not contained on formula tab on Excel ribbon ?
1. (A)Defined names
2. (B)Page layout
3. (C)Function library
4. (D)Calculation
Try it first, then show our solutionSolution
1. The Formulas tab has the Function Library, Defined Names, Formula Auditing and Calculation groups.
2. Page Layout is a separate tab of the ribbon, not a group on the Formulas tab. Option (B).
  1 mark
Answer: (B) Page layout
Where the marks are
- Page Layout is not on the Formulas tab (1 mark)
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Q29 · 1 mark · MCQSpreadsheet
What will be displayed on the screen when Excel does not recognise the text or formula ?
1. (A)Correct a # DIV/0! Error
2. (B)Correct a # N/A Error
3. (C)Correct a # Name Error
4. (D)Correct a # Null! Error
Try it first, then show our solutionSolution
1. Excel shows the #NAME? error when it does not recognise text in a formula, such as a misspelt function or undefined name.
2. The help topic for fixing it is "Correct a #NAME? error". Option (C).
  1 mark
Answer: (C) Correct a #Name Error
Where the marks are
- #NAME? error (1 mark)
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Answer one of these 2 alternatives.
Q30(a) · 1 mark · MCQSpreadsheet
What is the outcome of an arithmetic expression or function called ?
1. (A)Horizontal value
2. (B)Derived value
3. (C)Basic value
4. (D)Vertical value
Try it first, then show our solutionSolution
1. A value typed into a cell is a basic value.
2. The result of evaluating an expression or function is a derived value. Option (B).
  1 mark
Answer: (B) Derived value
Where the marks are
- Derived value (1 mark)
OR
Q30(b) · 1 mark · MCQUse of Spreadsheet in Business Applications
What value of range look up in VLOOKUP ( ) and HLOOKUP ( ) is used for returning only exact value ?
1. (A)False
2. (B)True
3. (C)Blank
4. (D)Zero
Try it first, then show our solutionSolution
1. In VLOOKUP and HLOOKUP, range_lookup TRUE (or omitted) allows an approximate match.
2. Setting range_lookup to FALSE returns only an exact match (else #N/A). Option (A).
  1 mark
Answer: (A) False
Where the marks are
- FALSE for exact match (1 mark)
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Q31 · 3 marks · Short answerOverview of Computerised Accounting System
State any three advantages and three limitations of Computerised Accounting System.
Try it first, then show our solutionSolution
1. Advantages (any three): reports are produced on time in the format wanted; records are kept efficiently; effective control over the system; economy in processing data; confidentiality of data is maintained.
  1½ marks
2. Limitations (any three): technology goes out of date fast, needing fresh investment; data may be lost or corrupted by power failure; data are prone to hacking; reports not programmed in advance cannot be produced.
  1½ marks
Answer: Advantages: timely reports, efficient record keeping, effective control (also economy, confidentiality). Limitations: fast obsolescence, data loss from power failure, hacking (also no unprogrammed reports)
Where the marks are
- Three advantages (½ mark each)
- Three limitations (½ mark each)
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Q32 · 3 marks · Short answerGraphs and Charts for Business Data
What are 'Radar Charts' ? What purpose do they serve ?
Try it first, then show our solutionSolution
1. Meaning. A radar chart plots three or more quantitative variables, each on its own axis starting from a common centre, so that a data series forms a closed shape; each series has its own colour or pattern.
  2 marks
2. Purpose. It is used to compare several series across many variables at once, showing at a glance the highest and lowest values.
  1 mark
Answer: A radar chart plots multivariate data on axes from a common centre, each series in its own colour; it is used to compare series and spot the highest and lowest values
Where the marks are
- Meaning of radar chart (2 marks)
- Purpose (1 mark)
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Answer one of these 2 alternatives.
Q33(a) · 4 marks · Long answerOverview of Computerised Accounting System
Explain any two ways in which Computerized Accounting System safeguards the secrecy of business data.
Try it first, then show our solutionSolution
1. Password security: only authorised persons with the right password can enter the system or particular data, which keeps data secret and intact. Passwords are stored in coded form and the method is widely used.
  2 marks
2. Data audit: the software keeps a trail of every entry and change, showing the user, auditor, date and time, and gives administrator rights to control access; this deters unauthorised changes. (A data vault, which adds encrypted, password-protected storage, is another way.)
  2 marks
Answer: Any two of: password security, data audit, data vault (each explained)
Where the marks are
- First safeguard explained (2 marks)
- Second safeguard explained (2 marks)
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OR
Q33(b) · 4 marks · Long answerUse of Spreadsheet in Business Applications
Name the table which is an interactive way to quickly summaries large amounts of data. State any three reasons why this table is designed.
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1. The table is a Pivot Table.
  1 mark
2. It is designed for querying large amounts of data in a user-friendly way, and for creating custom calculations and formulas.
  1 mark
3. It lets the user expand and collapse levels of data to focus on results, and move rows to columns (and back) to see different summaries.
  1 mark
4. It allows filtering, sorting, grouping and conditional formatting of the most useful subset of data, and presenting concise, attractive reports.
  1 mark
Answer: Pivot Table; designed for querying large data easily, custom calculations, expanding/collapsing and pivoting data, filtering/sorting and concise reports (any three)
Where the marks are
- Pivot Table named (1 mark)
- Any three reasons (1 mark each)
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Q34 · 6 marks · Long answerSpreadsheet
Explain various options available to change the alignment of the text in the cells.
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1. Opening the options. Select the range, then open the Alignment group on the Home tab (or Format Cells → Alignment tab), choose the settings and click OK.
  1 mark
2. Text alignment: horizontal (left, centre, right, justify) and vertical (top, middle, bottom) position of text in the cell.
  1 mark
3. Orientation / text direction: text can be rotated to an angle or set to read in a chosen direction.
  1 mark
4. Text control: wrap text within the cell, shrink to fit (autofit the text to the cell) or merge cells so that text spreads across them.
  1 mark
5. Internal margins and indent: the space between the text and the cell or element border can be set on the left, right, top and bottom (and indent from the edge), and text can be placed in columns.
  2 marks
Answer: Home → Alignment (Format Cells): horizontal and vertical alignment, orientation/text direction, wrap text, shrink to fit/autofit, merge cells, and internal margins/indent
Where the marks are
- Procedure (1 mark)
- Horizontal and vertical alignment (1 mark)
- Orientation (1 mark)
- Text control (1 mark)
- Margins and indent (2 marks)
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