VIKAS PRE-UNIVERSITY COLLEGE II PUC-COMMERCE ACCOUNTANCY(30) Section A 1. Reserve means the amount set aside out of profits which are not earmarked in any way to meet any particular known liability on the date of balance sheet. It is a part of profit retained for any unknown contingency, liability or decrease in the value of asset. Reserve is an appropriation of profit and is debited to profit and loss appropriation account. 2. The profit and loss appropriation account is merely an extension or a continuation of usual profit and loss account. The profit and loss appropriation is the account which shows the appropriation of profit of the firm or the distribution of profits of the firm among the partners. It records the preliminary appropriation of profits among the partners such as interest on partners capital, interest on partners drawings, partner salary or commission and also the final appropriation of net profits or net losses among the partners. 3. 1. Super profit method: under this method, goodwill is calculated by multiplying super profit with the given number of years of purchases, where super profit is the excess of a actual earnings of the business over the normal earnings. 2. Average profit method: Under this method, the given number of years of profit and loss are averaged and the average profit is multiplied by with the agreed number of years of purchase to ascertain goodwill. 4. Deceased partner capital a/c dr To Deceased partner Executors a/c (being balance transferred to deceased partner executors a/c) 5. Dissolution of partnership: 1. The business of the firm is not terminated. 2. Assets and liabilities are revalued and new balance sheet is drawn. Dissolution of partnership firm: 1. The business of the firm is not terminated. 2. Assets are realised and liabilities are paid off. 6. Authorised capital is the maximum amount of capital which a company is authorised to raise from the public by the issue of shares. It is mentioned in the capital clause of the memorandum of association of a company. It is also called a Registered Capital or Nominal Capital. 7. Dividend distribution tax is the amount of tax to be paid to Indian government on all the dividends declared by the company. The company has to pay tax at the rate of 16.995%. 8. 1. Comparative statement analysis 2.Common size statement analysis

3. Trend analysis 9. Examples for Non profit organisations: Hospitals, schools, colleges, libraries etc. 10. Object based logical models Record based logical models 11. Section B Interest on drawings = Total product x Rate x 1/12 = 144000 X 10 % X 1/12 = 1200 12. Old Ratio = 6:4 C s share =6/20 Sacrifice share =4/20 : 2/20 New ratio = old ratio sacrifice ratio A = 6/10 4/20 = 8/20 B = 4/10 2/20 = 6/20 C = 6/20 New Ratio = 8:6:6 13. Date o/s month Amount Product 01-04-2015 12 5000 60000 30-06-2015 9 8000 72000 01-12-2015 4 3000 12000 31-03-2015 0 2000 0 Dr Sheenu's Executor's account cr Particulars Rs. Particulars Rs. To Drawings a/c 5000 By Sheenu's capital a/c 100000 To balance b/d 110000 Total Product 144000 By Int. on capital a/c 6000 By Goodwill a/c 5000 By profit and loss suspense a/c 4000 115000 115000

14... Journal entries in the book of Karnataka co. ltd. Bank a/c dr 20000 To 8%debenture application a/c 20000 (being application money received) 8% Debenture application a/c dr 20000 To 8%debenture a/c 20000 (being application money transferred) 8% Debenture allotment a/c dr 40000 To 8% debenture a/c 40000 (being the allotment money due) Bank a/c dr 40000 To 8% Debenture allotment a/c 40000 (being allotment money received) 8%Debenture 1st and final call a/c dr 40000 To 8% debenture a/c 40000 (Being debentiure first and final call money due) Bank a/c dr 40000 To 8%Debenture 1st and final call a/c 40000 (being first & final call money received) 15. Inventory turnover Ratio = cost of goods sold =300000/75000 = 3 times Average stock Cost of good sold = sales net profit = 400000-100000 = 300000 Average stock = 60000 +90000 2 = 75000 Gross profit Ratio = Gross profit = 100000 x 100 = 25% Net sales 400000 16.. Shree Sports Club Dr Receipt and Payment a/c for the year ending 31-3-2016 cr Receipt Rs Payment Rs To balance c/d 10000 By subscription Toproceeds from concerts 10000 to newspaper 3000 To subscription received 40000 By upkeep of ground 10000 To rent received 2000 By computers purchased 5000 To Endowment fund 2000 By books purchased 5000 By balance c/d 41000 64000 64000

17. Types of Data processing System: 1. Batch processing systems 2. Online processing systems 3. Real processing systems 4. Distributed data processing system (page 513-514) Section c 18. Dr Lease a/c cr Date Particulars Rs Date Particulars Rs 01-04-2011 To Bank a/c 50000 31-03-2012 By Depreciation a/c 11548.75 31-03-2012 To Interest a/c 2500 By Balance b/d 40951.25 52500 52500 01-04-2012 To balance c/d 40951.25 31-03-2013 By Depreciation a/c 11548.75 31-03-2013 To Interest a/c 2047.56 By Balance b/d 31450.06 42998.81 42998.81 01-04-2013 To balance c/d 31450.06 31-03-2014 By Depreciation a/c 11548.75 31-03-2014 To Interest a/c 1572.5 By Balance b/d 21473.81 33022.56 33022.56 01-04-2014 To balance c/d 21473.81 31-03-2015 By Depreciation a/c 11548.75 31-03-2015 To Interest a/c 1073.69 By Balance b/d 10998.75 22547.5 22547.5 01-04-2015 To balance c/d 10998.75 31-03-2016 By Depreciation a/c 11548.75 31-03-2016 To Interest a/c 549.99 11548.75 11548.75 Dr Interest a/c cr Date Particulars Rs Date Particulars Rs 31-03-2012 To P & L a/c(transferred) 2500 31-03-2012 By Lease a/c 2500 2500 2500 31-03-2013 To P & L a/c(transferred) 2047.56 31-03-2013 By Lease a/c 2047.56 2047.56 2047.56 31-03-2014 To P & L a/c(transferred) 1572.5 31-03-2014 By Lease a/c 1572.5 1572.5 1572.5 31-03-2015 To P & L a/c(transferred) 1073.69 31-03-2015 By Lease a/c 1073.69 1073.69 1073.69 31-03-2016 To P & L a/c(transferred) 549.99 31-03-2016 By Lease a/c 549.99 549.99 549.99

19.... Revaluation a/c Particulars Rs Particulars Rs To P.B.D 2000 By Stock a/c 4000 To Dep. On machinery 2000 By App. On Buildings 10000 To deo on furniture 1000 To parrtners capital a/c x - 3600 y - 3600 z - 1800 9000 14000 14000 Partners capital a/c Particulars x y z particulars x y z To Goodwill a/c 12500 12500 By balance b/d 50000 30000 20000 To Z's loan a/c 31400 By P&L a/c 1200 1200 600 To Balance c/d 60300 40300 By Reserve Fund 8000 8000 4000 BY Revaluation a/c 3600 3600 1800 By Goodwill a/c 10000 10000 5000 72800 52800 31400 72800 52800 31400 Balance sheet as on at 1-4-2016 Liabiliteis Rs Assets Rs Creditors 25000 Cash @ bank 10000 Bills payable 10000 bills Receivable 10000 Z's loan 31400 Debtors 40000 less: 2000 38000 less : PBD 2000 36000 Stock 20000 add: App 4000 24000 Capitals: Machinery 20000 x 60300 less: dep 2000 18000 y 40300 furniture 10000 less: dep 1000 9000 Building 50000 add: App 10000 60000 167000 167000

20. Dr Realisation a/c cr Particulars Rs Particulars Rs To Bills receivable 15000 By Creditors 20000 To Debtors 20000 By Bills payable 10000 To Motor car 10000 By Bank loan 15000 To Machinery 30000 To Furniture 15000 By Cash a/c: To Building 50000 Buildings 60000 Machinery 28000 To Cash a/c B/R 14000 Creditors 19000 Debtors 19000 Bills Payable 9500 Unrecorded assets 20000 141000 Bank Loan 15000 43500 By Raju's capital a/c 10000 To Cash a/c 2000 (motor car taken over) (dissolution expenses) By Ravi's capital a/c 13000 To Partners capital a/c (Furniture taken over) Raju 14100 Ravi 9400 23500 209000 209000 Dr Partners capital a/c cr Raju Ravi Raju Ravi To profit and loss a/c 3000 2000 By Balance b/d 50000 40000 To realisation a/c 10000 13000 By General reserve a/c 6000 4000 (assets realised) By Realisation a/c 14100 9400 To cash a/c 57100 38400 70100 53400 70100 53400 Dr Cash a/c cr To Balance b/d 5000 By raju's loan a/c 5000 To Realisation a/c 141000 By Realisation a/c 43500 (assets realised) (liabiliteis paid off) By Realisation a/c 2000 By raju's capital a/c 57100 By Ravi's capital a/c 38400 146000 146000

21... Journal entries in the books of Sagar co. ltd. particulars l.f debit credit Bank a/c dr 400000 To share application a/c 400000 (being application money received ) Share application a/c dr 400000 To share capital a/c 400000 (being application money transferred to share capital a/c) share allotment a/c dr 400000 Discount on issue of shares a/c 200000 To share capital a/c 600000 (being allotment money due) Bank a/c dr 400000 To share allotment a/c 400000 (being allotment money received ) share first call a/c dr 600000 To share capital a/c 600000 (being share first call money due) Bank a/c dr 600000 To share first call a/c 600000 ( being share first call money received) share final call a/c dr 400000 To share capital a/c 400000 (being share final call money due) Bank a/c dr 380000 To share final call a/c 380000 being final call money received exept 1000 shares) Share capital a/c dr 100000 To discount on issue of shares a/c 10000 To forfeited shares a/c 70000 To share final call a/c 20000 (being non payment of final call on 1000 shares) Bank a/c dr 80000 Forfeited shares a/c dr 20000 To Share capital a/c 100000 (being forfeited shares are reissued) Forfeited shares a/c dr 50000 To Capital Reserve a/c 50000 ( Being balance transferred to capital reserve a/c)

22.. Balance Sheet as on at 31-3-2016 equity & Liabiliteis notes Rs. I. Shareholder's Funds: Share capital 1 800000 Reserves and surplus 2 339502 II. Non Current Liabilities Long term Borrowings 3 200000 III. Current Liabiliteis Short term borrowings 4 nil Trade payable 180000 Other current liabiliteis 5 nil Short term provisions 6 88498 Assets TOTAL 1608000 Non current assets fixed assets 7 Tangible assets 579000 Intangible assets 350000 Current assets Investments nil Inventories 145000 Trade receivables 8 250000 cash and cash equivalents 9 200000 Short term loans & advances 10 84000 TOTAL 1608000 Statement of Profit &Loss for the year ending 31/3/2016 particulars Notes Rs. Income Revenue from operations 950000 less: Returns Revenue from operations 950000 less: Excise duty Revenue from operations 950000 Other income Total income from operations 950000 Expenses Cost of materials consumed Purchase of stock in trade 400000 Changes in inventory -85000 employee benefit expenses 175000 Finance costs 16000

Depreciation 31000 Other expenses 160000 Total expenses 697000 Profit before tax 253000 less: tax 30000 Profit after tax 223000 Note 1: Share capital Amt. Equity capital 800000 Note 2: Reserve & surplus General reserve 100000 add: Transferred to reserve 40000 Closing balance 140000 Surplus opening balance 75000 add: surplus from P&L 223000 298000 less: Appropriation Proposed dividend -50000 DD@16.995% -8498 transferred to G.R -40000 339502 Note 3 : long term borrowings 8% debentures 200000 Note 4 : Short term borrowings Note 5: Other current liabiliteis Trade payable 180000 Note 6: short term provisions Provision for taxation 30000 DDT 8498 Prop. Dividend 50000 88498 Note 7:fixed assets Particulars gross dep netblock Goodwill 300000 300000 Patents 50000 50000 Machinery 260000 26000 234000 Buildings 250000 250000 Furniture 100000 5000 95000 Note 8: trade receivables 250000 Note 9: Cash & Cash equivalents 200000 Note 10: Short term loans & Advances 84000 nil

Note 11: employee benefit expenses Salary & Wages 175000 Note 12: Finance cost Int. on debenture 16000 Note 13: Depreciation 31000 23.. Common size Balance sheet as on at 2015 &2016 2015 % 2016 % Share holders fund Share Capital 500000 34.48 600000 38.09 Reserve & Surplus 300000 20.69 350000 22.22 Total(A) 800000 55.17 950000 60.32 Non Current Liabilities Debentures (B) 400000 27.59 300000 19.04 Current Liabiliteis Trade payables 200000 13.79 250000 15.87 Short term Provisions 50000 3.45 75000 4.76 Total 250000 17.24 325000 20.63 Total(A+B+C) 1450000 100.00 1575000 100 Assets: Non Current assets Tangible assets 550000 37.93 700000 44.44 Intangible Assets 200000 13.79 250000 15.87 Total(A) 750000 51.72 950000 60.31 Current Assets Current Investment 260000 17.93 200000 12.7 Inventoreis 40000 2.76 75000 4.76 Trade Receivable 375000 25.86 290000 18.41 Cash in hand 10000 0.69 20000 1.27 cash at bank 15000 1.03 40000 2.54 total (B) 700000 48.28 625000 39.68 Total (A+B) 1450000 100 1575000 100

24.. Sun Club Dharwad Income and expenditure a/c for the year ended 31/3/2016 Expenditure Rs Income Rs To salary 26500 By subscription 70000 add: o/s 2000 28500 add: o/s 5000 To telephone charges 6500 75000 To Games expenses 10000 less: received in advance 3000 72000 To Office expenses 10000 By games fees 25000 To Depreciation : By Interest 11000 furniture 3000 Sports material 11500 Buildings 20000 to excess income over expenses 18500 97000 97000 Balance sheet as on at 31-3-2016 Liabiliteis Rs Assets Rs Tournament fund 30000 Sports materials 20000 less: tournament expenses 20000 10000 less: dep 11500 8500 outstanding salary 2000 Buildings 200000 subscription received in advance 3000 less: dep 20000 180000 Capital fund: Furniture 30000 Life membership fees 40000 less: Dep 3000 27000 Donation 200000 Investments 100000 Entrance fees 100000 Cash 53000 excess income 18500 358500 O/S Subscription 5000 25.. 373500 373500 Section D Comparative statement of profit &loss of ABC co. for the year ending 2015 &16 2015 2016 increaseor decrease % Revenue from operations 600000 750000 150000 25 Other incomes 12000 15000 3000 25 Total (A) 612000 765000 153000 25 less: Expenses(B) 506000 440000 (-)66000 (-)13.04 Profit before tax 106000 325000 219000 206.6 less:tax 42400 113750 71350 168.28 profit after tax 63600 211250 147650 232.15

26.. Dr Machinery a/c cr Date Particulars Rs. Date Particulars Rs. 01-04-2012 By Bank a/c 50000 31-03-2013 By Depreciation a/c 5000 By balancce c/d 45000 50000 50000 01-04-2013 To Balance b/d 45000 31-03-2014 By depreciation a/c 5000 By Balance c/d 40000 45000 45000 27.. Dr Partners Current a/c cr Particulars Bhavi Rakshi Particulars Bhavi Rakshi To drawings a/c 4000 3000 By interest on capital 2500 2000 To Interest on drawings a/c 250 150 By salary 1500 To Balance c/d 4750 3850 By Profit &Loss app. a/c 5000 5000 9000 7000 9000 7000