Model Examination - Accountancy February 2024
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Questions and Answers

What is the total amount that Nandu's Capital A/c is debited?

  • 8,000
  • 12,000 (correct)
  • 20,000
  • 40,000

    • What process is indicated by the transfer of reserve to an old partner's capital?

  • Reserve dissolution (correct)
  • Capital contribution
  • Investment liquidation
  • Profit sharing

    • How much is Sindu's Capital A/c debited?

  • 30,000
  • 20,000 (correct)
  • 8,000
  • 12,000

    • What does the abbreviation 'Dr.' signify in accounting?

    <p>Debit</p> Signup and view all the answers

    What is the significance of the figures 12,000 and 20,000 in the context provided?

    <p>Amounts debited from capital accounts</p> Signup and view all the answers

    What is the total amount of salary given to Saju?

    <p>36,000</p> Signup and view all the answers

    How much interest is charged on Raju's drawings?

    <p>2,000</p> Signup and view all the answers

    What is the total interest on capital allocated in the profit and loss appropriation account?

    <p>20,800</p> Signup and view all the answers

    What is Saju's share of profit as recorded in the account?

    <p>8,320</p> Signup and view all the answers

    What is the total amount recorded in both the profit and loss account for credits?

    <p>68,000</p> Signup and view all the answers

    What is the gaining ratio between Maya and Roja?

    <p>1:1</p> Signup and view all the answers

    What is the total debit recorded in Maya's capital account?

    <p>20,000</p> Signup and view all the answers

    What does the table indicate about the amount credited to Sobha's capital account?

    <p>20,000</p> Signup and view all the answers

    Which term describes the account that is credited when goodwill is accounted for?

    <p>Goodwill A/c</p> Signup and view all the answers

    What is the total credit recorded in Maya's capital account as stated in the table?

    <p>50,000</p> Signup and view all the answers

    How much was recorded as a debit for Roja's capital account?

    <p>20,000</p> Signup and view all the answers

    What is the total amount represented as a debit to the goodwill account?

    <p>20,000</p> Signup and view all the answers

    What does the expression 'Goodwill already appearing in the books' refer to?

    <p>Previous goodwill valuations</p> Signup and view all the answers

    What accounts for the decrease in the value of machinery recorded at 2,000?

    <p>Revaluation of Asset</p> Signup and view all the answers

    Which situation does NOT result in the compulsory dissolution of a firm?

    <p>One partner becomes insane</p> Signup and view all the answers

    What is the total interest on drawings calculated from the provided amounts?

    <p>$1,470</p> Signup and view all the answers

    How is the interest on drawings for one month calculated based on total sum of products?

    <p>Sum of products x $ rac{1}{12}$ x $ rac{Rate of interest}{100}$</p> Signup and view all the answers

    What amount represents the product for the 15,000 drawing over 6 months at a 7% interest rate?

    <p>$90,000</p> Signup and view all the answers

    In the provided adjustments, what does the credit side of Reserve A/c indicate?

    <p>Transfer of profits to the reserve</p> Signup and view all the answers

    What is the purpose of decreasing the provision for doubtful debts in the revaluation account?

    <p>To reflect more accurate financial forecasting</p> Signup and view all the answers

    What is the final step in calculating the total interest on drawings using the sum of products?

    <p>Calculating a percentage of the total sum</p> Signup and view all the answers

    What is the main difference between the Fixed Capital Method and the Fluctuating Capital Method in terms of the number of accounts involved?

    <p>Two accounts are used in the Fluctuating Capital Method.</p> Signup and view all the answers

    How is the credit balance presented in the Fixed Capital Method?

    <p>It should be specifically mentioned in the partnership deed.</p> Signup and view all the answers

    What is the formula used to calculate the value of goodwill based on super profit?

    <p>Super profit x 100 / Normal profit</p> Signup and view all the answers

    In terms of adjustments, how does the Fixed Capital Method differ from the Fluctuating Capital Method?

    <p>In the Fixed Capital Method, adjustments are made in the current account.</p> Signup and view all the answers

    What is the value of the normal profit if the average profit is ₹30,000 and the normal rate is 10%?

    <p>₹20,000</p> Signup and view all the answers

    Which statement best describes the nature of the Capital Account in the Fluctuating Capital Method?

    <p>It can show a debit balance.</p> Signup and view all the answers

    What ratio applies to the normal profit calculation in the context provided?

    <p>1:1</p> Signup and view all the answers

    What happens to the appearance of adjustments in the Balance Sheet when using the Fluctuating Capital Method?

    <p>They appear directly in the Capital Account itself.</p> Signup and view all the answers

    What is the total amount of the creditors listed in the balance sheet?

    <p>41,500</p> Signup and view all the answers

    What is the total value of the assets according to the balance sheet?

    <p>118,900</p> Signup and view all the answers

    Which capital account has the highest balance before adjustments?

    <p>Suja's Capital</p> Signup and view all the answers

    What is the total amount of cash held by all partners in the Partners Capital A/c?

    <p>46,000</p> Signup and view all the answers

    What is the value of the provision for doubtful debts in the Revaluation A/c?

    <p>800</p> Signup and view all the answers

    How much is the revaluation profit carried forward in the Revaluation A/c?

    <p>1,050</p> Signup and view all the answers

    What amount is shown under 'Outstanding Electricity Bill' in the Balance Sheet?

    <p>1,000</p> Signup and view all the answers

    Which of the following is NOT an asset according to the Balance Sheet?

    <p>Outstanding Electricity Bill</p> Signup and view all the answers

    What is the total amount of stock listed in the Revaluation A/c?

    <p>2,000</p> Signup and view all the answers

    What is the total value recorded for 'Land and Building' in the Revaluation A/c?

    <p>5,200</p> Signup and view all the answers

    What is the balance of Anju's capital after adjustments in the Partners Capital A/c?

    <p>41,550</p> Signup and view all the answers

    Which of the following represents the assets in the Balance Sheet?

    <p>Land &amp; Building, Bills Receivable, Stock</p> Signup and view all the answers

    What amount is debited for cash goodwill in the Partners Capital A/c?

    <p>1,050</p> Signup and view all the answers

    How much is the total sum of provisions for doubtful debts and outstanding electricity bill?

    <p>2,200</p> Signup and view all the answers

    Study Notes

    Model Examination - February 2024, Part III - Accountancy

    • Time: 2 hours
    • Cool-off time: 15 minutes
    • Maximum marks: 60

    Part III - Accountancy with Computerised Accounting

    • Credits to Revaluation Account: 6 months
    • Loan Account Ratio: 1:1
    • Fixed vs. Fluctuating Capital Method
      • Fixed Capital Method:
        • Uses two accounts (Capital and Current)
        • Adjustments mostly to Current Account
        • Appears in the balance sheet
        • Specific mention in partnership deed
        • Shows credit balance
      • Fluctuating Capital Method:
        • Uses one account (Capital)
        • Adjustments directly to Capital account
        • Only Capital Account appears
        • Not necessary/optional mention in partnership deed
        • Shows debit balance
    • Normal Profit Calculation: 20,000 ( = 2,00,000 * 10/100)
    • Super Profit Calculation: Average Profit - Normal Profit.
    • Goodwill Calculation: Super Profit X 100/Normal Rate
    • Revaluation Account (Machinery): 2,000 Dr. to Machinery (Decrease in Machine value)
    • Dissolution of a Firm: Specified situations where a firm dissolves
      • All partners, or those excluding one, become insolvent
      • Business becomes illegal
      • All partners, or those excluding one, retire
      • All partners, or those excluding one, die
    • Interest on Drawings: Calculated for specific dates and given amounts. Examples include 16,000 for 9 months, 15,000 for 6 months, and 9,000 for 2 months.

    Bank Account Details (Financial Year 2019-2021)

    • Dec 31, 2019: Bank Account balance of 27,800
    • Balance carried forward (c/d) = 40,000
    • Dec 31, 2020: Bank Account balance of 25,200
    • Balance carried forward (c/d) = 20,000
    • Dec 31, 2021: Bank Account balance of 22,600
    • Instalment/year payment Calculation: 60,000 / 3 = 20,000

    Difference between Dissolution of Partnership and Dissolution of Firm

    • Meaning: Partnership relations change, a Firm's complete closure
    • Termination: Partnership not terminated, Firm terminated
    • Court's Intervention: Dissolution is by mutual agreement, Firm through court
    • Settlement: Partner assets/liabilities reassessed, Firm's assets sold, liabilities paid and balance assigned to partners
    • Closure: Book continuation/closure for the business type

    Profit and Loss Appropriation Account

    • Particulars Amounts
      • Salary, Interest on Capital, and Share of Profits specified amounts for Raju and Saju

    Gaining Ratio (New Ratio - Old Ratio)

    • Detailed ratio calculation given between partners for their shares.

    Goodwill A/c

    • Goodwill appearing and written off.

    Revaluation Account

    • Stock, Provision for doubtful debt, Outstanding Electricity bill, and Revaluation Profit/Loss with capital balances and amounts.
    • Additional calculations on Land and Building and amounts.

    Partners' Capital Account

    • Balances of existing Partners
    • Capital balances for specific partners listed.

    Outstanding Electricity Bill, Bills Receivable, and Debtors

    • Balances for each partner and an overall sum

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    Secondary Year Higher Secondary Model Exam - 2024 Accounting PDF

    Description

    Prepare for your upcoming accountancy examination with this comprehensive quiz covering key concepts in computerized accounting, including capital methods and profit calculations. Test your knowledge on revaluation accounts, loan ratios, and goodwill calculations. Ideal for students looking to solidify their understanding of the subject before the exam.

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