Accountancy: Karnataka PUC Year 2 Model Questions

• This document contains model question papers for Accountancy (30) for the second year of Pre-University Course (P.U.C) in Karnataka.
• The question papers are designed by the Karnataka School Examination and Assessment Board.
• Each paper has a maximum mark of 80 and a duration of 3 hours.
• The papers consist of four parts: A, B, C, and D, where Part A is divided into four sections (I, II, III, and IV).
• 15 minutes of extra time is allocated for reading the questions. Figures in the right-hand margin show full marks for each question.
• In Part-A questions, only the first written answers are considered for evaluation.
• Working notes should accompany answers wherever necessary.

Model Question Paper-1

• A and B share profits and losses in the ratio of 3:1, and C is admitted for a 1/4 share; the sacrificing ratio of A and B must be determined.
• The closing bank overdraft on the dissolution of a firm is transferred to the Realisation Account.
• Interest on calls in arrears is charged at 12% according to "Table F".
• The prescribed form of the Balance Sheet for Companies is found in Schedule III.
• Cash receipts from the sale of goods and rendering services aren't considered a cash inflow from investing activities.
• When transferring the final profit to partners, the P/L Appropriation A/c is debited To Partners' Capital / Current A/cs.
• The account debited for transferring a deceased partner's share of accrued profit is the Profit and loss suspense account.
• A partner's loan is transferred to the Realisation Account.
• For 10,000, 10% debentures issued at par, "10%" signifies the rate of interest.
• Quick Ratio is also known as the liquid ratio.
• Capitalisation Method is linked to the Valuation of Goodwill.
• A Limited Company has a limit on its liability.
• Debentureholders have no voting rights.
• Vertical analysis corresponds with Common Size Statement.
• Issue of Shares relates to Financing Activities.
• Interest at 8% p.a. on a capital of ₹50,000 for 9 months is ₹3,000.
• Sec. 37 of the Indian Partnership Act, 1932, states that the outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his money - this statement is true.
• An example of a non-current asset is building.
• Interpretation in financial analysis refers to explaining financial data to draw conclusions.
• ROI stands for Return on Investment.

Model Question Paper-2

• The capital account of a deceased partner is credited with the actual commission.
• When debentures have been issued at discount, the correct choice is Premium on Redemption of Debentures A/c
• Comparative statements are also known as Horizontal analysis
• Current ratio and liquid ratio are the two basic measures of liquidity
• Asset Account is debited for the increase in the value of an asset.
• Money received in advance is cash inflow
• Capital reserve is shown under Reserves and Surplus head
• Analysis and interpretation are Complimentary to each other
• Issue of new debentures is long term in nature
• Dissolution of Partnership firm is when the business of the firm becomes illegal
• The Old Share + Acquired Share formula is used to calculate a New Share
• Financial statements are Formal annual reports
• Solvency Ratio is Debt-Equity Ratio
• The special aspect of partnership accounts is treatment of goodwill
• Whether the Court can order a firm to be dissolved when a partner becomes insane is true
• When shares are forfeited, they need to be unpaid
• DRR stands for Debenture Redemption Reserve
• An example of a cash outflow from financing activities is redemption of debentures

Model Question Paper-3

• Interest on a fixed amount withdrawn on the first day of every month is calculated for 6½ months.
• On the dissolution of a firm, partners’ capital accounts are closed through Cash / Bank Account.
• Non-current assets are expected to be used in the business for a long period.
• Percentage of each liability to the total liabilities is shown in the Common Size Balance Sheet.
• Lenders and suppliers are especially interested in the average payment period of the statement
• New ratio is required for sharing future profits and also for adjustment of capitals
• Premium on issue of debentures is a capital profit
• financial statements are the basic and formal annual report
• Cash flow statement prepared by direct method is used by most companies
• Closing down of business is Dissolution of Partnership firm
• Financial Analysis tool is Trend Analysis
• Short-term in nature is Liquidity Ratios
• Write the formula for Sacrificing Ratio. Sacrificing Ratio = Old Ratio – New Ratio
• Deceased partner may be paid in one lump sum or installments with interest. - True
• OPC stand for one person company
• Give an example for extraordinary item. Loss due to earthquake etc
• Quarterly drawings is yearly amount divided by 4, so divide quarterly interest expense to 4 to derive the value for entire year
• Retiring partner is the journal entry to close retiring partner's capital account when the payment is made immediately. Retiring Partner’s Capital A/c Dr. To Bank A/c