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Kerala Plus Two Accountancy AFS Board Model Paper 2023 with Answers
Time: 2 Hours
Maximum Score: 60
Part – B
Answer any four questions from 17 to 21. each carries 1 Score. (4 × 1 = 4)
Question 17.
That part of called up capital which is not paid by the shareholders is:
(a) Call money
(b) Calls-in-arrears
(c) Calls-in-advance
(d) None
Answer:
(b) Calls-in-arrears
Question 18.
From the following, identify the cash inflows from operating activities:
(a) Purchase of land
(b) Sale of goods
(c) Sale of old furniture
(d) Issue of shares
Answer:
(b) Sale of goods
Question 19.
Find the odd one.
(a) Current ratio
(b) Liquid ratio
(c) Quick ratio
(d) Debt-equity ratio
Answer:
(d) Debt-equity ratio
Question 20.
From the given items, which is a part of current liabilities?
(a) Stock
(b) Trade payables
(c) Trade receivables
(d) Cash and Cash equivalents
Answer:
(b) Trade payables
Question 21.
Debentures having a charge on the fixed assets of the company are:
(a) Redeemable debentures
(b) Unsecured debentures
(c) Secured debentures
(d) Registered debentures
Answer:
(c) Secured debentures
Answer all questions from 22 to 23. each carries 2 Scores. (2 × 2 = 4)
Question 22.
Name the debentures mentioned in the following:
(a) Debentures redeemable after a specific period.
(b) Debenture redeemable on the winding up of the company.
Answer:
(a) Redeemable Debentures
(b) Irredeemable Debentures
Question 23.
Calculate current ratio from the following:
Debtors – ₹ 4,00,000
Stock – ₹ 2,40,000
Cash – ₹ 1,20,000
Prepaid expenses – ₹ 40,000
Bills Payables – ₹ 80,000
Creditors – ₹ 1,20,000
Answer:
Current Ratio = \(\frac{Current Assets}{Current Liabilities}\)
Current Assets = 4,00,000 + 2,40,000 + 40,000 + 1,20,000 = 8,00,000
Current Liabilities = 80,000 + 1,20,000 = 2,00,000
Current Ratio = \(\frac{8,00,000}{2,00,000}\) = 4 : 1
Answer any two questions from 24 to 26, each carries 3 marks. (2 × 3 = 6)
Question 24.
Write three examples for cash flows from investing activities.
Answer:
Cash flows from investing activities:
- Purchase of fixed assets.
- Purchase of investments (long term).
- Interest received.
- Dividend received.
Question 25.
Journalise the following:
(a) 500 Debentures of ₹ 100, issued at par, redeemable at par.
(b) 500 Debentures of ₹ 100, issued at par, redeemable at 10% premium.
Answer:
(a) Journal
(b) Journal
Question 26.
Match the following:
| A | B |
| Call money due but not received | Calls-in-advance |
| Call money not due but received | Forfeiture of shares |
| Cancellation of shares due to non-payment | Calls-in-arrears |
Answer:
(a) Calls in arrears
(b) Calls in advance
(c) Forfeiture of shares
Answer all questions from 27 to 28, each carries 4 scores. (2 × 4 = 8)
Question 27.
Under what heading would you record the following items in the financial statements of a company?
(a) Inventory
(b) Long term provisions
(c) Long term loans
(d) Share capital
Answer:
(a) Inventories – Current asset
(b) Long term provisions – Non-current liabilities
(c) Long term loans – Non-current liabilities
(d) Share capital – Shareholders’ fund
Question 28.
Distinguish between Shares and Debentures. (4 points)
Answer:
Difference between Share and Debenture
- Share is an ownership security. But debenture is a creditorship security.
- Dividend is paid on shares. But interest is paid on debentures.
- The rate of dividend on the share may vary from year to year. But the rate of interest on debenture is fixed.
- Shareholders are the owners of the company. But debenture holders are the creditors of the company.
- A share is unsecured. But debenture is secured.
- Shareholder enjoys voting right. But debenture holder has no voting rights.
Answer all questions from 29 to 30, each carries 5 points. (2 × 5 = 10)
Question 29.
From the following information, prepare a comparative statement of profit and loss for the year ended March 31st, 2022.
Answer:
Question 30.
From the following particulars, calculate cash flows from investing activities:
Purchase of Plant – ₹ 2,00,000
Sales of Plant – ₹ 30,000
Purchase of Investment – ₹ 1,50,000
Sale of Investment – ₹ 40,000
Interest Received on Investments – ₹ 10,000
Answer:
Calculation of Cash flows from investing activities:
Answer any one question from 31 to 32, which carries 8 scores. (1 × 8 = 8)
Question 31.
Omega Ltd., issued 20000 shares of ₹ 10 each payable ₹ 3 per share on application, ₹ 5 per share on allotment and the balance of first and final call. All the shares were fully subscribed for and the amount duly received except the call money on 500 shares. These shares were forfeited by the company. Pass the journal entries.
Answer:
Journal
Question 32.
(a) Complete the following table with suitable ratios:
Activity Ratios
1. __________________
2. __________________
Profitability Ratios
1. __________________
2. __________________
(b) Calculate Stock Turnover Ratio and Gross Profit ratio from the following:
Opening stock – ₹ 45,000
Closing stock – ₹ 55,000
Purchases – ₹ 1,60,000
Revenue from operations – ₹ 2,00,000
Answer:
(a) Activity Ratios – Inventory turnover ratio and Debtors turnover ratio
Profitability ratio – Gross profit ratio and Net profit ratio
(b) Stock turnover ratio = \(\frac{\text { Cost of revenue from operation }}{\text { Average inventory }}\)
Cost of Goods Sold or Cost of revenue from operation = Opening Stock + Purchases + Direct Expenses – Closing Stock
= 45,000 + 1,60,000 – 55,000
= 1,50,000
Average inventory = \(\frac{\text { Opening stock }+ \text { Closing stock }}{2}\)
= \(\frac{45,000+55,000}{2}\)
= 50,000
Stock turnover ratio = \(\frac{1,50,000}{50,000}\) = 3 times
Gross profit ratio = \(\frac{\text { Gross Profit }}{\text { Revenue from operations }}\)
Gross profit = Revenue from operations – Cost of revenue from operations
= 2,00,000 – 1,50,000
= 50,000
Gross profit ratio = \(\frac{50,000}{2,00,000}\) = 25%