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+2 അക്കൗണ്ടൻസി പഠന സഹായി

ഉണർവ്വ് അക്കൗണ്ടൻസി ബാലികേറാമലയല്ല

+2 കൊമേഴ്‌സ് വിദ്യാർത്ഥികൾക്ക് വിജയത്തിലേക്കൊരു കൈത്താങ്ങ്

തയ്യാറാക്കിയത്

ശ്രീകുമാർ പി.ആർ
എച്ച്. എസ്. എസ്. ടി സീനിയർ സെലക്ഷൻ ഗ്രേഡ് കോമേഴ്‌സ്
ടി.ഡി. ഹയർ സെക്കന്ററി സ്‌കൂൾ , തുറവൂർ, ആലപ്പുഴ ജില്ല

HSS COMMERCE
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ആമുഖം

അക്കൗണ്ടൻസി പരീക്ഷ എന്ന് പറയുന്നത് ചുരുക്കം ചില

വിദ്യാർത്ഥികൾക്കെങ്കിലും ബാലികേറാമലയാണ്. പ്രസ്തുത വിദ്യാർത്ഥികളെ ചുരുങ്ങിയ
ദിവസങ്ങൾക്കുള്ളിൽ കൈപിടിച്ചുയർത്തി വിജയസോപാനത്തിലെത്തിക്കുന്നതിന് വേണ്ടിയാണ്
ഈ പഠനക്കുറിപ്പ് തയ്യാറാക്കിയിരിക്കുന്നത്. വളരെ പ്രധാനപ്പെട്ട പാഠഭാഗങ്ങളാണ് ഇതിൽ
ഉൾപ്പെടുത്തിയിരിക്കുന്നത്.

ഈ ഉദ്യമത്തിൽ എനിക്കാവശ്യമായ മാർഗ്ഗനിർദ്ദേശങ്ങൾ

നൽകുകയും ആവശ്യമായ സഹായസഹകരണങ്ങൾ ചെയ്തു തരികയും ചെയ്ത എന്റെ പ്രിയ
സുഹൃത്ത്കൂടിയായ താമരക്കുളം V V H S S സ്കൂളിലെ കോമേഴ്‌സ് അധ്യാപകൻ
ശ്രി .ഹരികുമാറിനോടുള്ള നിസ്സീമമായ നന്ദിയും കടപ്പാടും അറിയിക്കുന്നു .

എന്റെ പഠനക്കുറിപ്പുകൾക്ക് നേരിട്ടും സമൂഹമാധ്യമങ്ങളിലൂടെയും

പ്രോത്സാഹിപ്പിക്കുന്ന എല്ലാ പ്രിയ അധ്യാപകസുഹൃത്തുക്കൾക്കും നന്ദി അറിയിക്കുന്നു. എല്ലാ

പ്രിയവിദ്യാർത്ഥികൾക്കും വിജയാശംസകൾ.

തുറവൂർ ശ്രീകുമാർ പി .ആർ

22.02.2024 എച്ച്. എസ്. എസ്. ടി സീനിയർ സെലക്ഷൻ ഗ്രേഡ് കോമേഴ്‌സ്
ടി.ഡി. ഹയർ സെക്കന്ററി സ്‌കൂൾ , തുറവൂർ, ആലപ്പുഴ ജില്ല
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+2 Accountancy with Compterised Accounting

Chapter 1

Accounting for Partnership – Basic Concepts

Provisions Relevant for Accounting
If partnership deed is silent, then the following provisions of the Indian Partnership Act,
1932 will become applicable :
a) Profit Sharing Ratio : The profits and losses of the firm are to be shared equally
by partners..
b) Interest on capital : No interest on capital is payable to partners.
c) Interest on drawings : No interest is to be charged on the drawings made by
the partners.
d) Interest on Advances : If any partner has given some loan to the firm, he is
entitled to get interest @ 6% per annum.
e) Remuneration for Firm’s work : No partner is entitled get salary or other
remuneration .
Tips
➢ Remember the rules applicable in the absence of Partnership deed :
1.Profits and losses are to be shared equally.
2.No interest on capital.
3.No interest on drawings.
4.6% interest on loan
5. No remuneration to partners.
Illustration
Firoz and Shahin are partners in a firm. The firm did not have any partnership deed.
Specify how the following situations are treated :
(a) Sharing of profit and losses.
(b) Interest on advance given by Firoz to the firm [HSE March 2017] (1 Score)
Ans. (a) Profits and losses shared equally.
(b) 6% interest is given to Firoz’s loan.
Illustration
Prasanth and Janish are partners. They do not have any partnership agreement. What
should be done in the following cases ?
i. Prasanth spends twice the time that Janish devotes to business. Prasanth claims
that he should get a salary of ₹ 3,000 per month for his extra time spent.
ii. Prasanth wants to introduce his son Shenoi as a partner. Janish objects to it.
(June 2016) 4 Scores

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+2 Accountancy with Compterised Accounting

Ans. i. In the absence of partnership agreement, Prasanth will not get any salary.
ii. Shenoi will not be admitted as a partner.

Qn : What are the two methods of maintaining Capital Accounts of partners ? Give any
four differences between these two methods. July 2020 3 Scores
Ans: There are two methods by which the capital accounts of partners can be
maintained. They are :
(1) Fixed capital method and
(2) Fluctuating capital method
Distinction between Fixed and Fluctuating Capital Accounts

Basis of distinction Fixed Capital Account Fluctuating Capital Account

Two separate accounts are Under this method, each partner
(1) Number of
maintained i.e, ‘capital account’ and ‘ has one account, i.e. capital
accounts
‘current account’ . account.
All adjustments are made in the All adjustments are made in the
(2) Adjustments
current account. capital accounts.
The capital account balance remain The balance of the capital
(3) Fixed balance unchanged . account fluctuates from year to
year.
The capital accounts always show a The capital account may
(4) Credit balance
credit balance. sometimes show a debit balance.

Qn : List out any four items appearing in the credit side of Partners Capital Account,
when capitals are fluctuating. March 2023 (2 Scores)
Ans: Format of Partner’s Capital Account (Fluctuating Capital Method)
Partner’s Capital Account
Dr. Cr.

J. Amount J. Amount
Date Particulars Date Particulars
F. ₹ F. ₹
Drawings xxx Balance b/d xxx
Interest on drawings xxx Bank (fresh capital xxx
Profit and Loss introduced)
Appropriation A/c xxx Salaries xxx
(share of loss) Interest on capital xxx
Balance c/d xxx Profit and Loss
Appropriation A/c xxx
(share of profit)
xxxx xxxx
====== =======

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+2 Accountancy with Compterised Accounting

➢ Tips for preparing problems on fluctuating capital method

➢ Under fluctuating capital method, only one account, i.e. ‘capital account ‘ is
maintained for each partner.
➢ Additional capital should be recorded on the credit side of the capital account
(Reason : Increase in capital is to be credited)
➢ Interest on capital,Salary and Commission should also be credited on the credit
side of the capital account (Reason : Increase in capital is to be credited)
➢ Drawings, Interest on drawings and share in loss should be debited on the debit
side of the capital account (Reason : Decrease in capital is to be debited)
➢ Find out the balance of Partner’s Capital Accounts.

Illustration
Rajeev and Pradeep are partners sharing profits and losses in the ratio of 2 : 1. on 1 st
April, 2019 their capitals were ₹ 5,00,000 and ₹ 3,00,000 respectively. Prepare the
capital accounts of the partners on 31 st March 2020 under fluctuating capital method.

Particulars Rajeev (₹) Pradeep (₹)

Interest on capital 8% 8%
Drawings during the year 10,000 8,000
Interest on drawings 1,000 800
Salary 7,000 -
Commission - 5,000

Profit for the year after making all the adjustments was ₹ 24,000 (SAY 2021)

Solution
Capital Account
Dr. Cr.

J J
Rajeev Pradeep Rajeev Pradeep
Date Particulars . Date Particulars .
₹ ₹ ₹ ₹
F F
Drawings 10,000 8,000 Balance b/d 5.00,000 3,00,000
Interest on Interest on Capital 40,000 24,000
drawings 1,000 800 Salary 7,000 -
Commission - 5,000
P & L Appropriation
Balance c/d 5,52,000 3,28,200 A/c 16,000 8,000
----------- ------------ ------------ ----------------
5,63,000 3,37,000 5,63,000 3,37,000
======= ======= ====== =========

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+2 Accountancy with Compterised Accounting

Qn : David and Kesav are partners in a firm sharing profits and losses in the ratio of
2 :1. Their capitals were ₹1,50,000 and ₹1,00,000. The profit during the year were
₹60,000. According to Partnership Deed, both partners are allowed salary ₹1,500 per
month to David and ₹1,000 per month to Kesav. Interest allowed on capital @8% p.a.
The drawings at the end of the period were ₹10,000 for David and ₹8,000 for Kesav.
Interest on drawings : David ₹600 and Kesav ₹400. Prepare partner’s capital accounts
assuming that the capital accounts are fluctuating.
First Term 2018
Worksheet Capital Account
Dr. Cr.

J J
David Kesav David Kesav
Date Particulars . Date Particulars .
₹ ₹ ₹ ₹
F F

Ans. Partner’s Capital Account : David ₹2,09,400 Kesav ₹1,31,600

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+2 Accountancy with Compterised Accounting

Profit and Loss Appropriation Account

Format of Profit and Loss Appropriation Account

Profit and Loss Appropriation Account
Dr.
Cr.

Amount Amount
Particulars Particulars
₹ ₹
Profit and Loss A/c xxx Profit and Loss A/c xxx
(If there is loss) (If there is profit)
Interest on Capital xxx Interest on Drawings xxx
Salary to Partner xxx Partner’s Capital xxx
Commission to Partner xxx (distribution of loss)
Interest on Partner’s Loan xxx
Partner’s Capital Accounts xxx
(distribution of profit)
xxxx xxxx
======= ========
Tips
➢ Profit and Loss Appropriation A/c is an extension of the Profit and Loss
Account. So firstly we have to transfer net profit to Profit and Loss
Appropriation on the credit side.
➢ All adjustments reducing net profit should be recorded on the debit side of
Profit and Loss appropriation A/c
➢ All adjustments increasing distributable profit should be credited to the
Profit and Loss Appropriation A/c (Eg.Interest on drawings).
➢ Find out the net balance of Profit and loss appropriation
Account.(Profit/Loss)
➢ The profit should be divided among partners in profit sharing ratio.
➢ The share of profit should be transferred to partner’s capital accounts.

Illustration
Dileep and Vipin are partners. Dileep’s capital is ₹10,000 and Vipin’s capital is ₹ 6,000.
Interest is payable at 6% p.a. Vipin is entitled to a salary of ₹300 per month. Profit for
the current year before interest and salary to Vipin is ₹.8,000. Divide the profit between
Dileep and Vipin.
(March 2009) 2 Scores

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+2 Accountancy with Compterised Accounting

Profit and Loss Appropriation A/c

Dr. Cr.

Particulars ₹ Particulars ₹
Interest on capital : Profit and Loss A/c 8,000
Dileep 600 (Net profit transferred)
Vipin 360
------- 960
Salary to Vipin 3,600
(Rs.300 x 12)
Capital Accounts :
Dileep 1,720
Vipin 1,720
----------- 3,440
8,000 8,000
========= =========

Illustration
Zeema and Neemasa are partners from 1 st January 2008 without partnership agreement
and they introduced capitals of ₹70,000 and ₹40,000 respectively. On ist July 2008,
Zeema advances ₹15,000 by way of loan to the firm without any agreement as to
interest. The profit and loss account for the year 2008 discloses a profit of ₹16,450, but
the partners cannot agree upon question of interest or upon the basis of division of
profit. You are required to divide the profit between them giving reasons for your
method.

Hint : Prepare profit and loss appropriation account.

March 2010 (5 Scores)

Solution
In the absence of partnership agreement, partners are entitled to
(a) Interest @ 6% on their loan to the firm
(b) Profits and losses should be shared equally.

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+2 Accountancy with Compterised Accounting

Profit and Loss Appropriation A/c

Dr. Cr.

Amount Particulars Amount

Particulars
₹ ₹
Interest on Zeema’s Loan 450 Profit and Loss A/c 16,450
(₹15,000 x 6/100 x 6/12) (Net profit transferred)
Capital Accounts :
Zeema(Rs.16,000x1/2) 8000
Neemsa(Rs.16,000x1/2) 8,000
--------- 16,000
16,450 16,450
======= =======

Qn : Rajan and Sajan are partners in a firm sharing profits and losses in the ratio of 2:1.
Their capital balance as on 01-04-2022 was ₹4,00,000 and ₹3,00,000 respectively. The
partnership deed provides that Rajan is to be paid a salary of ₹2,000 per month and
Sajan is to get a commission of ₹ 10,000 for the year. Interest on capital is to be
allowed at 8% p.a.
The drawings of Rajan and Sajan for the year were ₹30,000 and ₹ 10,000
respectively. Interest on Rajan’s drawings was ₹750 and Sajan’s drawings, ₹250. The
Net Profit of the firm before making these adjustments was ₹ 1,82,000.
Prepare Profit and Loss Appropriation A/c. March 2023 (5 Scores)
Worksheet Profit and Loss Appropriation A/c
Dr. Cr.

Amount Particulars Amount

Particulars
₹ ₹

Ans : Profit and Loss Appropriation A/c balance(Profit) ₹93,000

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+2 Accountancy with Compterised Accounting

Interest on capital
Illustration
Rejith is a partner in a firm. On 1 st January 2017, his capital account balance was
₹2,20,000. As per partnership agreement a partner is entitled to 6% interest per annum
on his capital. Rejith introduced additional capital ₹80,000 on 01-07-2017 and withdrew
₹50,000 on 1-10-2017. Calculate the interest on capital for the year ending 31 st
December 2017.
( March 2020) 3
Scores
Interest on capital
6 6
For ₹2,20,000 = ₹2,20,000 x x = ₹6,600
100 12
6 3
For ₹3,00,000 = ₹3,00,000 x x = ₹4,500
100 12
6 3
For ₹2,50,000 = ₹2,50,000 x x = ₹3,750
12 12
-----------
Total interest on capital = ₹14,850
=======
Interest on Drawings
Illustration
Partner of a firm withdrew ₹6,000 during the year. The accountant charged ₹300 as interest
on the same at 10% rate of interest. Is it correct? Show the calculation.
SAY 2009 (1 Score)
Solution
It is correct. If the date of drawings is not given, it may be assumed that drawings were
made evenly throughout the year. In such a case interest should be for six months on the
whole amount.
10 6
Interest on drawings = ₹6,000 x x = ₹300
100 12
When Varying Amounts are Withdrawn at Different Intervals
When the partners withdraw different amounts of money at different time intervals, the
interest is calculated using the product method.

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+2 Accountancy with Compterised Accounting

Illustration 13
Shahnaz withdrew the following amounts from her firm, for personal use during the year
ending March 31, 2015. Calculate interest on drawings by product method, if the rate of
interest to be charged is 7 per cent per annum..

Date Amount
₹
April 1, 2014 16,000
June 30, 2014 15,000
October 31, 2014 10,000
December 31, 2014 14,000
March 1, 2015 11,000

Tips
➢ To get the amount of product, multiply the amount of drawings with the
period for with they are withdrawn .
➢ Totalling of the amounts recorded in the ‘ Product’ column.
➢ Find the amount of interest by applying the formula
Rate 1
Interest = Sum of Products x x
100 12

Solution
Statement Showing Calculation of Interest on Drawings

Date Amount Time Period Product

₹ ₹
April 1, 2014 16,000 12 months 1,92,000
June 30, 2014 15,000 9 months 1,35,000
October 31, 2014 10,000 5 months 50,000
December 31, 2014 14,000 3 months 42,000
March 1, 2015 11,000 1 month 11,000
Total 4,30,000
==========

1
Interest on drawings = Sum of Products x Rate x
12
7 1
=Rs.4,30,000 x x
100 12
= ₹2,508

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+2 Accountancy with Compterised Accounting

Chapter 2
Reconstitution of a Partnership Firm -Admission of a partner
Qn : What do you mean by goodwill? List out any 2 factors affecting goodwill.
March 2021 3 Scores
Ans : Goodwill is the value of the reputation of a firm in respect of the profits expected
in future over and above the normal profits. In simple words, goodwill can be defined as
” the present value of a firm’s anticipated excess earnings”. It is regarded as an
intangible asset.

Factors affecting the value of goodwill

The main factors affecting the value of goodwill are as follows :
1. Nature of business : A firm that produces high value added produces or having
a stable demand is able to earn more profits and therefore has more goodwill.
2. Location : If the business is centrally located, the goodwill tends to be high.
3. Efficiency of management : A well – managed concern is able to earn higher
profits and so the value of goodwill will also be high.
4. Market situation : The monopoly condition or limited competition enables the
concern to earn high profits which leads to higher value of goodwill.
5. Special advantages : The firm that enjoys special advantages like import
licences, low rate and assured supply of electricity, long-term contracts for supply
of materials etc. enjoy higher value of goodwill.
Methods of valuation of Goodwill
1.Average Profit Method
Illustration 8 (Simple Average)
The profit for the five years of a firm are as follows – year 2010 ₹4,00,000; year 2011
₹3,98,000; year 2012 ₹4,50,000; year 2013 ₹4,45,000 and year 2014 ₹5,00,000.
calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.
(SCERT)

Steps
Total Profit
1. Calculate average profit ( )
No . of years
2. Calculate the amount of goodwill (Average Profits x No. Of years
purchased)

Solution
Profit
Year
(₹)
2010 4,00,000
2011 3,98,000
2012 4,50,000
2013 4,45,000
2014 5,00,000
Total 21,93,000

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+2 Accountancy with Compterised Accounting

Total Profit 21,93,000

Average Profit = = = ₹4,38,600
No . of years 5
Goodwill = Average Profits x No. of years purchased
= ₹4,38,600 x 4 = ₹17,54,400
2 Super Profit Method

Illustration
The books of a business showed that the capital employed on December 31, 2014,
₹5,00,000 and the profits for the last five years were : 2010 - ₹40,000; 2011 - ₹50,000;
2012 - ₹55,000 ; 2013 - ₹70,000 and 2014 - ₹85,000. you are required to find out the
value of goodwill based on 3 years purchase of the super profits of the business, given
that the normal rate of return is 10%.
Solution
Average Profits
Year Profit
(₹)
2010 40,000
2011 50,000
2012 55,000
2013 70,000
2014 85,000
Total 3,00,000

Average Profits = ₹3,00,000/5 = ₹60,000

Capital Employed x Normal Rate of Return
Normal Profits =
100
5,00,000 x 10
=
100
= ₹50,000
Super Profit = Average Profit – Normal Profit
= ₹60,000- ₹50,000 = ₹10,000
Goodwill = Super profit x No. of years purchase
= ₹10,000 x 3
= ₹30,000
Revaluation A/c

Tips for preparing Revaluation Account

1. Increase in the value of asset(Gain) – Credited to Revaluation A/c
2. Decrease in the value of asset(Loss) – Debited to Revaluation A/c
3. Increase in the value of liabilities(Loss)- Debited to Revaluation A/c
4. Decrease in the value of liabilities(Gain) – Credited to Revaluation A/c.
5. Unrecorded assets(Gain) – Credited to Revaluation A/c
6. Unrecorded Liabilities (Loss) – Debited to Revaluation A/c
In short,all gains must be credited to revaluation a/c and all losses must be debited
to revaluation a/c

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+2 Accountancy with Compterised Accounting

Illustration 18

Given below is the Balance Sheet of Ramu and Jafar who were sharing Profits and
Losses in the ratio of 3 : 2 as on 31st December, 2015
Balance sheet as on 31st December, 2015
Liabilities Amount Assets Amount
₹ ₹
Sundry creditors 27,500 Cash 12,000
Bills payable 12,000 Debtors 27,000
Outstanding expense 2,500 Stock 15,000
Capital : Furniture 20,000
Ramu 50,000 Plant and Machinery 58,000
Jafar 40,000
---------- 90,000
------------------- ---------------------
1,32,000 1,32,000
========== ===========

Shoby is admitted as a partner on the date of Balance Sheet on the following

terms :
(a) Shoby will bring ₹30,000 as capital and ₹12,000 for his share of
goodwill for 1/4 share in profits.
(b) Plant and Machinery is depreciated by ₹8,000.
(c) Stock is found overvalued by ₹3,000.
(d) A provision for doubtful debts is to be created at 10% on debtors.
(e) Creditors were unrecorded to the extent of ₹1,000.
Prepare Revaluation Account, Partners Capital Account and the new Balance
Sheet after the admission of Shoby. (July 2020 8 Scores)

Ans. Revaluation A/c

Particulars Amount Particulars Amount

₹ ₹
Plant and Machinery 8,000
Stock 3,000
Provision for debts 2,700 Capital Accounts :
Unrecorded Creditors 1,000 Ramu 8,820
Jaffer 5,880
------------- 14,700
----------------- -------------------
14,700 14,700
========= ===========

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+2 Accountancy with Compterised Accounting

Partner’s Capital A/c

Date Particulars J Ramu Jafer Shoby Date Particulars J Ramu jafer Shoby
F F
Revaluation 8,820 5,880 - Balance b/d 50,000 40,000 -
(Loss) Cash 30,000
Balance c/d 48,380 38,920 30,000 Goodwill 7,200 4,800
---------- ---------- ---------- ---------- ---------- ------------
57,200 44,800 30,000 57,200 44,800 30,000
===== ===== ====== ===== ====== =======

Balance sheet
As on ------------
Liabilities Amount Assets Amount
₹ ₹
Sundry Creditors 28,500 Cash 54,000
Bills Payable 12,000 Debtors 27,000
Outstanding Expenses 2,500 Less : Provisions 2,700
Capital Accounts : ---------- 24,300
Ramu 48,380 Stock 12,000
Jafer 38,920 Furniture 20,000
Shoby 30,000 Plant & Machinery 50,000
----------- 1,17,300
-------------------- -------------------
1,60,300 1,60,300
=========== ===========

Qn : The following is the Balance Sheet of Arun and Varun sharing profits and losses in
the ratio of 5 : 3.
Balance sheet as on March 31, 2022
Liabilities Amount Assets Amount
(₹) (₹)
Creditors 40,000 Cash 20,000
Bills payable 20,000 Debtors 60,000
Capital : Stock 80,000
Arun 1,20,000 Machinery 1,20,000
Varun 1,00,000
------------ 2,20,000
----------------- -------------------
2,80,000 2,80,000

They agreed to admit Sabu into partnership on the following terms :

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(a) Sabu brings ₹80,000 as his capital and ₹ 40,000 as his share of goodwill.
(b) Machinery is valued at ₹ 1,50,000 and Stock at ₹ 1,00,000.
(c) A provision for bad debts is to be created @ 5% on debtors.
(d) The new profit sharing ratio is 7 :5 : 4.
Prepare :
i. Revaluation A/c
ii. Partners Capital A/c
iii. Balance sheet of new firm. March 2023 ( 8 Scores)

Worksheet : Revaluation A/c

Particulars Amount Particulars Amount

₹ ₹

Partner’s Capital A/c

Date Particulars J Arun Varun Sabu Date Particulars J Arun Varun Sabu
F ₹ ₹ ₹ F ₹ ₹ ₹

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Balance sheet
As on ------------
Liabilities Amount Assets Amount
₹ ₹

Ans : Revaluation Profit : ₹47,000,Partners Capital A/c Balance : Arun ₹ 1,79,375,

Varun ₹ 1,27,625 Sabu ₹ 80,000 Balance sheet Total : ₹4,47,000

Chapter 3
Reconstitution of a Partnership Firm-Retirement & Death of a Partner

Adjustment of Accumulated Profits and Losses

The journal entries for recording accumulated profits and losses are:
i. For Accumulated profits :
Reserves/Profit and Loss Account Dr.
To All Partner’s Capital Accounts
(Reserves transferred to all partner’s capital account’s in old ratio)
ii. For Accumulated Losses
All Partner’s Capital Accounts Dr.
To Profit and Loss Account
(Accumulated loss transferred to all partner’s capital accounts in their old profit
sharing ratio)

Illustration
‘M’, ‘N’ and ‘O’ are equal partners. M decides to retire from the firm. On the date of his
retirement the Balance Sheet of the firm showed the following :
(a) Profit and Loss Account (Dr.) ₹12,000.
(b) General Reserve ₹ 48,000.
Pass necessary journal entries to record the above. SAY 2020 (2 Scores)

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Ans : Journal

Date Particulars J.F. Debit Credit

₹ ₹
(a) M’s Capital Account Dr. 4,000
N’s Capital Account Dr. 4,000
O’s Capital Account Dr. 4,000
To Profit and Loss A/c 12,000
(Accumulated loss distributed to partners
equally)
General Reserve A/c Dr. 48,000
(b) To M’s Capital A/c 16,000
To N’s Capital A/c 16,000
To O’s Capital A/c 16,000
(Reserves transferred to all partners in old
ratio)

Revaluation Account

Illustration
Pranav, Pinki and Prasad are partners sharing P & L in the ratio of 3:2:1. Their balance
sheet as on 31.12.2017 stood as follows :

Liabilities Amount Assets Amount

₹ ₹
Creditors 50,000 Cash in hand 20,000
Trade payable 20,000 Debtors 45,000
Reserves & Surplus 2,000 Less : Provisions 5,000
Capital A/c : --------- 40,000
Pranav 40,000 Inventories 30,000
Pinki 50,000 Plant & Machinery 42,000
Prasad 30,000 Goodwill 10,000
Furniture 50,000
--------------- ---------------
1,92,000 1,92,000
======== =========

Pranav retires and the following is agreed upon :

1. Provision for doubtful debts is not required.
2. Depreciation :
Furniture @ 5%.
Plant & Machinery @ 10%.
3. Creditors will be written off by ₹ 5,000.

Prepare Revaluation A/c. SAY 2019 ( 3 Scores)

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Ans: Revaluation A/c

Dr. Cr.

Particulars Amount Particulars Amount

₹ ₹
Plant and Machinery 4,200 Creditors 5,000
Furniture 2,500 Provision for bad debts 5,000
Capital Accounts :
Pranav 1,650
Pinki 1,100
Prasad 550
---------- 3,300
------------ --------------
10,000 10,000
======= ========

Partner’s Loan Account

Illustration
Renjith, Sumesh and Aneesh are partners in a firm. Sumesh retires from the firm. On
the date of retirement of Sumesh, ₹ 45,000 become due to him. Renjith and Aneesh
promise to pay the amount in instalments. Prepare Sumesh’s loan account, when they
agree to pay three yearly instalments of ₹ 15,000 including interest at 12% p.a. on the
outstanding balance during the first 3 years and balance including interest in fourth year.
March 2017 ( 4 Scores)

Ans : Sumesh’s Loan A/c

Dr. Cr.
Date particulars J. Amount Date Particulars J. Amount
F. ₹ F. ₹
Bank 15,000 Sumesh’s Capital A/c 45,000
Balance c/d 35,400 Interest 5,400
------------ -----------
50,400 50,400

Bank 15,000 Balance b/d 35400

Balance c/d 24,648 Interest 4248
------------ -----------
39,648 39468

Bank Balance b/d

15,000 24,648
Balance c/d Interest
12,606 2,958
------------ -----------

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27,606 27,606

Bank 14,119 Balance b/d 12,606

Interest 1,513
------------ -----------
14,119 14,119
======= ======

Chapter 4
Dissolution of a Partnership Firm
Qn : Dissolution of a firm is different from the dissolution of a partnership. State any
three difference between the two July 2020 3 Scores
Ans: Distinction between Dissolution of Partnership and Dissolution of Firm

Basis Dissolution of Partnership Dissolution of Firm

1. Termination of The business is not terminated The business of the firm is closed
business
2. Settlement of Assets and liabilities are Assets are sold and liabilities are
assets and revalued and new balance paid-off.
liabilities sheet is drawn.
3. Court’s Court does not intervene. A firm can be dissolved by the
intervention court’s order.
4. Economic Economic relationship between Economic relationship between the
relationship the partners continues. partners comes to an end.
5. Closure of books The books of account are not The books of account are closed.
closed.

Preparation of Realisation A/c

Format of Realisation Account

Dr. Cr.
Particulars Amount Particulars Amount
₹ ₹
Land and Building xxx Sundry creditors Xxx
Plant and Machinery xxx Bills payables xxx
Furniture and Fittings xxx Bank overdraft xxx
Bills receivables xxx Outstanding expenses xxx
Sundry debtors xxx Provision for doubtful debts xxx
Cash / Bank xxx Cash/Bank(sale of assets) xxx
(Payment of liabilities) Partner’s capital account xxx
Cash /Bank xxx (assets taken by the partner)
(Payment of unrecorded Loss (transferred to partners

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liabilities) capital accounts) xxx

Partner’s Capital Account xxx
(liability assumed by the
partner)
Profit transferred to Partner’s
capital account’s in their profit
sharing ratio) xxx
--------------- ---------------
xxxxx xxxxx
======== =========

Qn : A, B & C are partners sharing profit and losses in the ratio of 5:3:2. their Balance
Sheet as on 31st March 2015 was as follows :

Balance Sheet of A, B & C as on 31st March 2015

Liabilities Amount Assets Amount

(₹) (₹)
Creditors 15,000 Buildings 1,78,000
Bills payable 15,000 Machinery 20,000
Bank Loan 1,00,000 Stock 65,000
Provident Fund 60,000 Bills receivables 72,000
A’s husband’s loan 65,000 Furniture 65,000
General Reserve 45,000 Cash at Bank 35,000
Capitals :
A 35,000
B 45,000
C 55,000
--------- 1,35,000
------------------- ------------------
4,35,000 4,35,000
========== ==========

The firm was dissolved on that date.

Prepare realization account with the following information :

(1) Building realized for ₹ 1,20,000 ; Bills receivables realized for ₹ 70,000 ; Stock realized
for ₹ 40,000 and Machinery sold for ₹ 33,000 and furniture ₹60,000.
(2) Bank loan was settled for ₹ 70,000 ; Creditors and bills payable were settled at 10%
discount.
(3) Realisation expenses ₹ 1,500. March 2017 (4 Scores)

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Ans: Realisation A/c

Particulars Amount Particulars Amount
₹ ₹
Buildings 1,78,000 Creditors 15,000
Machinery 20,000 Bills Payable 15,000
Stock 65,000 Bank loan 1,00,000
Bills Receivables 72,000 Provident Fund 60,000
Furniture 65,000 A’s Husband’s loan 65,000
Bank A/c Bank
Bank loan 70,000 Building 1,20,000
Creditors 13,500 Bills Receivable 70,000
Bills Payable 13,500 Stock 40,000
------------- 97,000 Machinery 33,000
Bank (Provident Fund) 60,000 Furniture 60,000
Bank (Realisation expenses) 1,500 ---------- 3,23,000
Bank (A’s husband’s loan) 65,000 Partner’s Capital :
A 22,750
B 13,650
C 9,100
----------- 45,500
--------------- ------------------
6,23,500 6,23,500
========== ==========

Illustration
Adithyan and Theertha are partners of Aswani Traders in the ratio of 2 : 3. Their Balance
Sheet as on 31-12-2019 stood as follows :
Balance Sheet as on 31-12-2019
Liabilities Amount Assets Amount
₹ ₹
Capital A/c : Land & Buildings 40,000
Adithyan ₹ 50,000 Furniture 20,000
Theertha ₹ 30,000 Stock 40,000
------------ 80,000
Sundry Creditors 20,000

1,00,000 1,00,000
========== =========

Prepare the realisation account on the assumption that the firm dissolved on the above
date by considering the following :
1. Land & Buildings realised ₹ 60,000.
2. Furniture sold for ₹ 20,000.
3. Stock taken over by Adithyan ₹ 15,000.
March 2021 (4 Scores)

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Realisation A/c
Dr. Cr.
Particulars Amount Particulars Amount
₹ ₹
Land and Building 40,000 Sundry Creditors 20,000
Furniture 20,000 Cash(Land & Buildings) 60,000
Stock 40,000 Cash (Furniture) 20,000
Cash (Creditors) 20,000 Adithyan’s Capital A/c(Stock) 15,000
Partner’s Capital A/c :
(Realisation Loss)
Adithyan 2,000
Theertha 3,000
-------- 5,000
------------------ ---------------
1,20,000 1,20,000
========== =========

Qn : Amal and Bimal are equal partners in a firm. Their balance sheet as on 31 st March
2022 was as follows :
Balance sheet as on 31st March, 2022
Liabilities Amount Assets Amount
₹ ₹
Creditors 10,000 Bank 5,000
Capital : Debtors 10,000
Amal 12,000 Stock 8,000
Bimal 8,000 Furniture 7,000
--------------- -------------------
30,000 30,000
======== ===========
st
The firm was dissolved on 31 March 2022.
1) The assets realised were :
Debtors - ₹8,500
Stock - ₹7,000
Furniture - ₹9,000
2) Creditors were paid ₹8,000 in full settlement
3) Expenses on realisation amounted to ₹500.
Prepare Realisation Account, Partner’s Capital Account and Bank Account.
March 2023 (8 Scores)

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Worksheet Realisation A/c

Dr. Cr.
Particulars Amount Particulars Amount
₹ ₹

Partner’s Capital A/c

Date Particulars J Amal Bimal Date Particulars J Amal Bimal

F ₹ ₹ F ₹ ₹

Bank A/c

Dr. Cr.
Date particulars J.F. Amount Date Particulars J.F. Amount
₹ ₹

Ans: Realisation Profit ₹ 1,000

Partners Capital Accounts : Amal ₹ 12,500 Bimal ₹ 8,500
Bank Account Total : ₹29,500

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Part 2 Computerised Accounting

Chapter 1
Overview of Computerised Accounting System
1. List out the merits of Computerised Accounting over Manual Accounting.
March 2022 Model 3 Scores
or
What are the advantages of CAS ? March 2016 2 Scores
The merits of CAS include ;
1.Timely generation of desired reports.
2.Efficiency in record keeping
3.Saves time and money.
4.Confidentiality of data is maintained.
5.Automated document preparation.
6.Transparency and reliability.
7.Accurate and updated information.
2. Explain the ways in which a software provides data security
March 2016 5 Scores
The software usually provides data security in the following ways :
1.Password security : Password is a mechanism which restricts the access to the
computer system and data to the user only.
2.Data Audit : This feature enables us to who and what changes have been made in the
original data.
3.Data vault : Vaulting will save data in encrypted form to ensure its security.
3. Describe the features of Computerised Accounting System.
SAY 2021 5 Scores
Ans : The features of Computerised Accounting System are :
1.Simple and integrated : Computerized Accounting System(CAS) is an easy way to
process the accounting transactions.
2.Transparency and Control : It provides greater transparency for day-to-day
operations.

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3.Accuracy and speed : The accuracy of computer is very high. Computer can also
process data millions of times faster than human beings.
4.Scalability : Computers are capable of performing variety of task.
5. Reliability : The computer generated financial information is more accurate and
reliable.
4. List out any four components of Computerised Accounting System
SAY 2020 2 Scores
Ans : People, Data, Procedure, Hardware and Software (Any 4)
5. Identify the types of codes for the given examples from the items given in brackets.
(Sequential code, Block code, Mnemonic code.)
(a) Code Name of Railway Station
QLN Kollam
TCR Thrissur
(b) Code Textile item
100-199 Gents wear
200-299 Ladies wear
Ans : (a) Mnemonic code
(b) Block code
Chapter 2
Spreadsheet
1. Write down the 5 features of LibreOffice Calc. Briefly explain.
March 2021 5 Scores
Ans : Features of LibreOffice Calc are:
1.Easy calculations : In LibreOffice Calc there are lot of tools which help the user to
perform even complex calculations on different data across sheets with ease.
2. Arranging Data : The data stored in LibreOffice Calc can be organised or
reorganised according to the needs of the user.
3.Serve as Database : This programme allows storing any number of data in different
sheets. Storing, retrieving, filtering etc. Are easy in it.
4.Dynamic Charts : Different types of charts are available in LibreOffice Calc and are
enable the user to present various data in an appealing manner.
5..What if calculations : This lets users to predict what will happen if conditions
change.
2. Briefly explain the three types of spreadsheet cell references used in LibreOffice Calc.
Model March 2022 3 Scores
Ans :A cell reference may be relative, absolute and mixed.

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1.Relative Cell Reference : Here when a formula is copied to a new location in a work
sheet, cell references in the formula change in relation to the new location of the
formula.
2.Absolute cell reference : Here the cell references in a formula remain the same even
when the formula is copied to a new location.
3.Mixed cell reference : Mixed cell reference means that when a formula is copied to a
new location, either row number or column number remain the same.
3. Name the functions and syntax used to display the following results in LibreOffice Calc.
(a) Current system date
(b) Current date with time
(c) Count of numeric values in a given range of cells.
(d) To count the number of empty cells in a given range. March 2021 ( 4 Scores)
Ans: Name of function Syntax
(a) Current system date TODAY = TODAY()
(b) Current date with time NOW =NOW()
(c)Count of numeric values in a given
range of cells COUNT =COUNT(Range)
(d)To count the number of empty cells in
a given range COUNTBLANK =COUNTBLANK(Range)

4. Write any three mathematical functions commonly used in spreadsheets and briefly
explain them. June 2019 3 Scores
Ans: 1.SUM : This function is used to get the sum of given numbers, cells or range of
cells.
Syntax : =SUM(Range)
2.SUMIF : It only sums its values when a particular condition or criteria is met.
Syntax : SUMIF(range,”criteria”,sum_range)
3ROUND : Calc provides ’ROUND’ function to round-off a number to a certain number of
decimal places.
Syntax : ROUND(Number,Count)
4.ROUNDUP : This function rounds a number up way from zero without considering the
value next to the rounding digit.
Syntax : ROUNDUP(number,count)
5.ROUNDDOWN : This function rounds a number down towards zero.
Syntax : =ROUNDDOWN(Number, Count)

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6.COUNT : This function is used to count numeric value in a given range of cells.
Syntax : =COUNT(Range)
7.COUNTA : This function will count the number of cells which contain any value.
Syntax : =COUNTA(Range)
8.COUNTBLANK : This function is used to count empty cells in a given range of cells.
Syntax : =COUNTBLANK(Range)

Chapter 3
Use of Spreadsheet in Business Applications
Qn : What is payroll and explain the components of payroll.
February 2024 Model Exam. (3 Scores)
Ans : Payroll is a statement showing various components and various deductions of
salary of employees in a business organisation
Payroll Components
I. Earnings
1. Basic Pay (BP) : It is the fixed amount paid to the employees based on their work.
2. Grade Pay (GP) : It is the pay added to the basic pay according to the designation of
the employee.
3. Dearness Pay : It is that portion of dearness allowance which has been declared and
deemed to have been merged with the basic pay.
4. Dearness Allowance : It is a compensation to make up the purchasing power of
employees due to price rise.
5. House Rent Allowance : It is an amount paid to facilitate an employee to enjoy the
benefit of a residential accommodation.
6. Transport Allowance(TA) : It is an amount paid to facilitate an employee to travel
between his home and place of work.
Deductions
1. Professional Tax (PT) : It is the tax levied by the State on the income earned by way
of profession, trade or employment.
2. Provident Fund (PF) : It is a statutory deduction made as a part of social security.
3. Tax Deduction at Source (TDS) : A statutory deduction made on a monthly basis
towards income tax liability of an employee.
4. Recovery of Loan Instalment : Amount of deduction on account of any loan taken by
the employee such as PF loan, house loan etc.

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Gross Pay = Basic Pay + Grade Pay + DA+ HRA + Other Allowances
Net Pay = Gross Pay – Total Deductions
Qn :Name the functions used for calculating depreciation under straight line and written
down value methods. Also write their syntax in a spreadsheet.
June 2019 3 Scores
Ans: Name of function Syntax
Depreciation under
straight line method SLN =SLN(Cost, Salvage,Life)
Depreciation under written
down value method DB =DB(Cost,Salvage,Life, Period,Month)

Chapter 4
Graphs and Charts for Business data
1. Show the steps for creating a chart. (SCERT)
Ans : 1. Open LibreOffice Calc
Applications ---> Office ------> LibreOffice Calc
2.Data entry
Input the necessary data into spreadsheet manually or we can import the data from
other sources.
3.Data selection
Select the cells which contain the data where chart is to be prepared.
4. Plotting the chart
Insert ----> Chart ----> Chart Wizard----->Finish
2. List out the advantages of charts and graphs in business applications.
Ans : 1.Create visual appeal
2.Read the data easy
3.Analyse and interpret quickly.
4. Grasp the data quickly
5.Present huge volume of data easily and within limited space.

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Chapter 5
Accounting Software Package – GNUKhata
1. Write any 3 features of GNUKhata Accounting Software. March 2021 (3 Scores)
Ans : Features of GNUKhata
1. It is a free and open source accounting software.
2. It is based on double entry book keeping
3.Comprehensive financial reports like Ledgers, Trial balance, Profit and loss Account,
Balance sheet etc. Are available.
4.Source document can be attached along with the voucher entry.
5.Export and import of data from Spreadsheet is possible.
6.Password security and data audit facility provided.
(Any three points)
2. Explain the uses of any five default accounting voucher types in an accounting
software. SAY 2019 ( 5 Scores)
Ans : Voucher Types
Voucher Type Used to Record Short cut Keys
1.Receipts To record all receipts of cash or cheque F4
2.Payments All payments made by cash or cheque F5
3.Sales Cash and credit sales of goods F6
4.Purchase Cash and credit purchase of goods F7
5.Contra Deposits or withdrawals of cash from F8
bank.

Chapter 6
Database Management System
1. Briefly explain how a ‘Table’ is created in LibreOffice Base.(First 4 steps)
March 2021 (5 Scores)
Ans:
Step 1 :Application ---> Office ----> LibreOffice Base
Step 2 : Click on Create Table in Design View
Step 3 : Enter the Field Name
Step 4 : Enter the Field Type
Step 5 : Enter the Field Properties

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