Kerala Plus Two Accountancy Board Model Paper 2021 with Answers

Teachers recommend solving Kerala Syllabus Plus Two Accountancy Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.

Kerala Plus Two Accountancy Board Model Paper 2021 with Answers

Time: 2 Hours
Maximum Score: 60

Part – A
Accounting

Answer the following questions from 1 to 37 up to a maximum Score of 60.
From the following questions, answer for 40 scores from Part-A and 20 Scores from Part-B.

I. Questions from 1 to 4 carry 1 score each. (4 × 1 = 4)

Question 1.
Which of the following is not included in the final accounts of a not-for-profit organisation?
(a) Profit and Loss A/c
(b) Receipt and Payment A/c
(c) Income and Expenditure A/c
(d) Balance Sheet
Answer:
(a) Profit and Loss A/c

Question 2.
Partners are entitled to get which of the following in the absence of partnership deed?
(a) Interest on capital at specified rate.
(b) Interest on partners loan @ 6% per annum.
(c) Salary or Commission
(d) All of these
Answer:
(b) Interest on partners loan @ 6% per annum.

Question 3.
Suresh and Vinod are partners in a firm sharing profits in the ratio of 4 : 1 They admit Hari as a partner for \(\frac{1}{6}\) share. Their sacrificing ratio will be _________________
(a) 3 : 2
(b) 4 : 1
(c) 2 : 1
(d) 1 : 1
Answer:
(b) 4 : 1

Question 4.
The revaluation profit or loss at the time of retirement of a partner is distributed among the partners in _________________ ratio.
(a) New Ratio
(b) Old Ratio
(c) Gaining Ratio
(d) Sacrificing Ratio
Answer:
(b) Old Ratio

II. Questions from 5 to 7 carry 2 scores each. (3 × 2 = 6)

Question 5.
Where will you record the following items in the final accounts of a not-for-profit organisation?
(i) General donation
(ii) Life membership fee
(Hint: Debit or credit side of Income and expenditure a/c., asset or liability side of Balance sheet)
Answer:
(i) General Donation – Credit side of Income & Expenditure A/c
(ii) Life Membership Fee – Liability side of the Balance Sheet

Question 6.
Muneer, a partner in a firm withdraws Rs.4,000 at the beginning of every month for 12 months. The books of the firm closes on 31st of the December every year. Calculate interest on drawings of Muneer @ 10% per annum.
Answer:
Interest on drawing = Total Drawing × Rate of Interest × \(\frac{6.5}{12}\)
Total drawings = 4000 × 12 = 48,000
Interest on drawings = 48,000 × \(\frac{10}{100}\) × \(\frac{6.5}{12}\) = 2600

Question 7.
State any two differences between dissolution of partnership and dissolution of firm.
Answer:

• When the partnership between all the partners of a firm comes to an end, it is called the dissolution of the partnership firm.
• When the relation of partnership among different partners changes without affecting the entity of the firm, it is called dissolution of partnership.
• In the case of dissolution of partnership, assets and liabilities are revalued.
• In the case of dissolution of the firm, assets are realised and liabilities are paid off.

III. Questions from 8 to 10 carry 3 scores each. (3 × 3 = 9)

Question 8.
State the three features of a Not-for-Profit organisation.
Answer:
Features of a Not-for-Profit organisation
(a) The main objective is to render services to members and the public.
(b) They are not expected to earn profit.
(c) They do not engage in trading activities.
(d) Credit transactions are not usually made.

Question 9.
Calculate the value of goodwill of a firm based on 3 years purchase of super profit given that capital employed is 2,00,000; normal rate of return is 10% and average profit for last few years is 25,000.
Answer:
Goodwill = Super Profit × No. of the years purchase
Super Profit = Actual or Average profit – Normal profit
Normal profit = Capital employed × Normal rate of return
Normal Profit = 2,00,000 × \(\frac{10}{100}\) = 20,000
Average profit = 25,000
Super profit = 25,000 – 20,000 = 5,000
Goodwill = 5,000 × 3 = 15,000

Question 10.
Anu, Manu and Sonia are partners in a firm sharing profits and losses in the ratio of 2 : 1 : 1. Sonia retires and the goodwill of the firm is valued at Rs. 1,20,000. Write journal entry regarding adjustment for goodwill.
Answer:
Old ratio = 2 : 1 : 1
Sonia retires,
Gaining ratio = 2 : 1
Sofia’s share of goodwill = 1,20,000 × \(\frac{1}{4}\) = 30,000

IV. Questions from 11 to 15 carry 4 scores each. (5 × 4 = 20)

Question 11.
State any four differences between Fixed Capital Method and Fluctuating Capital Method.
Answer:

Fixed Capital Method	Fluctuating Capital Method
1. In this method, two accounts, namely the capital account and the current account, are prepared for each partner.	1. Each partner has one account, i.e. capital account.
2. All adjustments are made in the current account.	2. All adjustments are made in the capital accounts.
3. The capital account balance remains unchanged unless there is an addition to or withdrawal of capital.	3. The balance of the capital account fluctuates from year to year.
4. The capital account always shows a credit balance.	4. The capital account may sometimes show a debit balance.

Question 12.
Record the following in the Revaluation a/c of a firm at the time of admission of a partner.
(a) The value of Furniture increased by Rs. 5,000.
(b) Unrecorded investment Rs. 3,000.
(c) Provide Rs. 1,000 for doubtful debt.
(d) Stock reduced to Rs. 24,000 (Book Value: Rs. 30,000).
Answer:
Revaluation A/c

Question 13.
Kaushik and Devan are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit Arjun into partnership with \(\frac{1}{4}\) share in profit. Arjun brings Rs. 30,000 for capital and his share of goodwill in cash. The goodwill of the firm is valued at Rs. 20,000. Their new ratio is 2 : 1. Give journal entries.
Answer:
Journal

Note: Goodwill of the firm = 20000
Sacrificing ratio = 3 : 2
Arjun’s share of goodwill = 20,000 × \(\frac{1}{4}\) = 5000
Kaushik’s sacrifice = 5000 × \(\frac{3}{5}\) = 3000
Devan’s sacrifice = 5000 × \(\frac{2}{5}\) = 2000

Question 14.
Balu, Rajesh and Abhijith are partners in a firm. Rajesh retires from the firm. On the date of retirement, Rs. 48,000 due to him. Balu and Abhijith promise to pay him in four equal early instalments plus interest @ 10% per annum at the end of every year. Prepare Rajesh’s loan a/c.
Answer:
Rajesh’s Loan A/c

Note: Amount of instalment = \(\frac{48000}{4}\) = 12000
1st year interest = 48000 × \(\frac{10}{100}\) = 4800

Question 15.
Write the journal entries for recording the following transactions at the time of dissolution of a firm.
(a) Assets realised Rs. 36,000.
(b) Liability paid by Ashok, a partner Rs. 4,000.
(c) Realisation expenses paid by firm Rs. 1000.
(d) Furniture taken by Sunil, a partner Rs.5,000.
Answer:
Journal

V. Questions from 16 to 20 carry 5 scores each. (5 × 5 = 5)

Question 16.
Differentiate between Receipt and Payment Account and Income and Expenditure Account (any 5).
Answer:

Receipts and Payment Account	Income and Expenditure Account
1. It is a real account.	1. It is a nominal account.
2. It is a summary of cash book.	2. It is like a Profit and Loss account.
3. It records both revenue and capital items.	3. It records only revenue items.
4. It starts with an opening balance of Cash/Bank balance.	4. It does not start with cash/bank balance.
5. Includes receipts and payments for current year, previous year and next year.	5. Includes item relating to current year only.

Question 17.
From the following information ascertain the amount of subscription to be shown in the Income and Expenditure Account of A-One Sports Club for the year ending 31.12.2020.
(a) Subscription received during the year 2020 Rs. 72,000.
(b) Subscription outstanding on 01.012020.Rs. 4,000
(c) Subscription received in advance on 01.01.2020 Rs. 3,000
(d) Subscription outstanding on 31.12.2020. Rs. 5000
(e) Subscription received in advance on 31.12.2020 Rs. 2,000
Answer:

Question 18.
Sumathi and Manju are partners in a firm sharing profits in the ratio of 3 : 2. Their capital balance as on 01.01.2020 was Rs. 40,000 and Rs. 30,000 respectively. The partnership provides that Sumathi is to be paid a salary of Rs. 1,000 per month and Manju is to get a commission of Rs. 10,000 for the year. Interest on capital is allowed at 8% per annum. Interest on drawing charged from Sumathi Rs. 1,500 and Manju Rs. 1,200. The net profit of the firm before making all these adjustments was Rs. 74,900. Prepare Profit and Loss Appropriation Account.
Answer:
Profit and Loss Appropriation Account

Question 19.
What do you mean by goodwill? Explain the various factors affecting the value of goodwill of a firm.
Answer:
Goodwill is the value of the reputation of a firm in respect of profits in future over and above the normal profits.
Factors affecting the value of goodwill

• Nature of business
• Favourable location
• Efficiency of management
• Requirements of capital
• Market condition

Question 20.
Answer the following:
(a) Lallu and Omar are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Mathew as a partner. On the date of his admission, their balance sheet showed a balance of Rs. 24,000 in the profit and loss A/c. (Dr.) and Rs. 12,000 in reserve fund.
Record necessary journal entries for treatment of accumulated profit or loss. (3)
(b) Calculate the value of goodwill based on three years’ purchase of average profit of the last five years. The profits for the last 5 years were: (2)

Year	2015	2016	2017	2018	2019
Profit	40,000	36,000	44,000	45,000	35,000

Answer:


(b) Goodwill = Average Profit × No. of the years purchase
Average Profit = \(\frac{40000+36000+44000+45000+35000}{5}\) = 40,000
Goodwill = 40,000 × 3 = 1,20,000

VI. Questions from 21 to 22 carry 8 scores each. (2 × 8 = 16)

Question 21.
From the following Receipt and Payment A/c and other information, prepare Income and Expenditure A/c of Multi star Sports Club as on 31.12.2019:

Other Information:
(a) Subscription outstanding on 31.12.2019 amounts to Rs. 4,000.
(b) Electricity includes a sum of Rs. 500 paid for the next year.
(c) Half of the entrance fee is to be capitalised.
Answer:
Receipt and Payment A/c for the year ending 31.12.2019.

Question 22.
Given below is the balance sheet of Akhil and Ameer carrying a partnership business as on 31.12.2018. Akhil and Ameer share profits and losses in the ratio of 3 : 2.
Balance Sheet of Akhil and Ameer as on 31.12.2018

Carlos is admitted as a partner on the date of Bthe alance Sheet on the following terms:
(a) Carlose will bring Rs. 1,00,000 as his capital for \(\frac{1}{6}\) share in profits.
(b) Plant is to be appreciated to Rs. 1,20,000 and buildings is to be appreciated by 10%.
(c) The value of stock is reduced by 10%.
(d) A provision for doubtful debt is to be created at 10% of debtors.
(e) creditors were unrecorded to the extent of Rs. 1,000.
Prepare Revaluation a/c and Partners Capital a/c after the admission of Carlos.
Answer:
Revaluation A/c

Capital Account

Balance Sheet

Part – B
Computerised Accounting

VII. Questions from 23 to 26, Carry 1 score each. (4 × 1 = 4)

Question 23.
The code assigned for Kerala as “KL” and Tamil Nadu as “TN” is an example of _________________
(a) Block Codes
(b) Mnemonic Codes
(c) Alpha Numerical Codes
(d) Sequential Codes
Answer:
(b) Mnemonic Codes

Question 24.
The intersection of a column and a row in a spreadsheet is called a _________________
(a) Range
(b) Cell
(c) Worksheet
(d) Workbook
Answer:
(b) Cell

Question 25.
The function used for preparing loan repayment schedule in LibreOffice calc is _________________
(a) SLN
(b) PMT
(c) AND
(d) DB
Answer:
(b) PMT

Question 26.
Which of the following is not a system generated ledger account in GNU Khata?
(a) Opening Stock
(b) Stock at the beginning
(c) Closing stock
(d) Cash
Answer:
(d) Cash

VIII. Questions from 27 to 30, carry 2 scores each. (4 × 2 = 8)

Question 27.
Select the financial functions from the following:
PV, RATE, IF, ROUND, COUNT, NPV, LOOKUP, ACRINT
Answer:
PV, RATE, NPV, ACRINT

Question 28.
Name any four elements of a chart or graph.
Answer:
Chart Area, Plot Area, Data Point, Grid Lines, Legend, Chart title

Question 29.
State any two advantages of charts and graphs in business applications.
Answer:

• It summarizes a large data set in visual form.
• Charts or graphs can clarify trends better than do tables.
• It helps to estimate key values at a glance.
• It shows each data category in a frequency distribution.

Question 30.
Fill the series as per hint given:

Answer:

Transactions	Voucher Type	Function Key
Salary Paid	Payment	F5
Deposited into Bank	Contra	F8
Interest Received	Receipt	F4

IX. Questions from 31 to 32, carry 3 scores each. (2 × 3 = 6)

Question 31.
Briefly explain the functions available in LibreOffice Calc for calculating depreciation under Fixed Instalment Method and Diminishing Balance Method.
Answer:
(a) Straight Line Method
Under this method a fixed amount is deducted from the value of an asset year after year on account of depreciation and debited to Profit and Loss account. This method is also called Fixed Instalment method, or Original Cost method. Under this method value of asset will be reduced to zero.
\(\text { Depreciation }=\frac{\text { Cost of the asset }- \text { Scrap Value }}{\text { Life of the asset }}\)

(b) Written Down Value Method (WDV)
This method is also known as Diminishing balance method or Reducing balance method. Under this method, a fixed percentage is written off every year on the book value of the asset at the beginning of the year. Here the amount of depreciation goes on decreasing and therefore, the book value of asset will not become zero even after its working life.
Amount of depreciation = Written Down Value of Asset × Rate of Depreciation

Question 32.
Describe the procedure to prepare a Bank Reconciliation Statement in GNU Khata.
Answer:
Procedure for preparation of Bank Reconciliation Statement.
Step 1: Create Organisation
Application → Office → GNU Khata
Here select ‘Create Organisation’ and enter necessary details and select ‘Create and login’.
Step 2: Create Ledger Accounts
Master → Create Account → Select Group → Select Sub Group → Enter Account Name → Save
Step 3: Voucher Entry
Voucher Menu → Select appropriate voucher → Enter Voucher Number → Date → Enter Debit and Credit Amount → Press Enter → Enter narration → Click on save
Step 4: Enter Clearance Date
Master → Bank Recociliation Statement → Select Name ofrthe Bank → Set Reconciliation period → Click on View → Enter ‘Clearance date’
Step 5: Output
To show Bank Reconciliation Statement, click on ‘View Statement’.

X. Questions from 33 to 35, carry 4 scores each. (3 × 4 = 12)

Question 33.
Explain the security features of Computerised Accounting System.
Answer:
Security Features of Computerised Accounting Software
Every accounting software ensures data security, safety, and confidentiality by providing features like Password Security, Data Audit, and Data Vault.

1. Password Security: Password is the key to allow the access to the system. Computerised accounting system protects unauthorised persons from accessing to the business data. Only authorised person, who is supplied with the password, can enter to the system.
2. Data Audit: It enables one to know as to who and what changes have been made in the original data, thereby helping and fixing the responsibility of the person who has manipulated the data, and ensuring data integrity.
3. Data Vault: Software provides additional security through data encryption. Encryption means scrambling the data to make its interpretation impossible. Encryption converts readable data into an unreadable format. The encrypted data is commonly known as Ciphertext.

Question 34.
Describe the features of LibreOffice Calc.
Answer:
Features of LibreOffice Calc

• It is a spreadsheet application.
• It is both free software and open source software.
• It can be used to calculate, analyse, and manage data.
• The worksheet in Libre Office Calc contains Rows and Columns in a Table format.

Question 35.
Briefly explain the following:
(a) Tables
(b) Forms
Answer:
(a) Tables: Rows and columns to present fields in a database is called table. When creating a table, the characteristics of each field to be defined.
(b) Forms: Forms are used to enter or modify data (fields) into tables. Forms allow the user to display the data in a Table or Query.

XI. Question from 36 to 37, carry 5 scores each. (2 × 5 = 10)

Question 36.
Lists the merits and demerits of Computerised Accounting System (CAS). (any 5 each)
Answer:
(a) Advantages of Computerised Accounting System (CAS)

• Financial reports can be prepared in time.
• Alterations and additions in transactions are easy and give the changed result in all books of accounts instantly.
• It ensures effective control over the system.
• Economy in the processing of accounting data.
• Confidentiality of data is maintained

(b) Limitations of Computerised Accounting System

• Faster obsolescence of technology necessitates frequent upgradation in accounting software.
• Data may be lost or corrupted due to power interruption.
• Unprogrammed reports can not be generated.
• Alterations in transactions are easy. This reduces the reliability of accounting work.
• Work with CAS is expensive.

Question 37.
Explain any 5 statistical or logical functions in LibreOffice Calc.
Answer:
(a) Statistical functions
1. COUNT (): This function is used to count the number of cells in a range that contains numbers only.
Syntax :=COUNT (cell 1, cell 2, …) or =COUNT (Range)

2. COUNTA (): This function is used to count the number of cells in a range that contains any value. It will count number, text, time, date, logical values, error code, etc. In other words, this function counts the number of cells that are not empty in a range.
Syntax: = COUNTA(cell 1, cell 2….) or = COUNTA (Range)

3. COUNTBLANK (): This function in LibreOffice Calc count the number of empty cells in the given range. It is the opposite function of COUNTA.
Syntax: =COUNTBLANK (Range)

4. COUNTIF(): This function counts the number of cells within a given range that meet the criteria or condition.
Syntax: = COUNTIF (Range, Criteria)

5. AVERAGE (): This built-in statistical function is used to return the average value from a set of data.
Average = total sum of all the numbers – the number of items in the set.
Syntax: = AVERAGE (Cell 1, Cell 2, …)

(b) Logical Functions
1. IF (): This function is used to test a condition. When the condition is TRUE, then the first action is taken. When it is FALSE, then the second action is taken.
Syntax = IF (Test, Then value, Otherwise value)

2. NESTED IF (): LibreOffice Calc allows to include one function inside another function. It is called nesting of functions. The IF function can be nested, when you have multiple conditions to meet.
Syntax: =IF (Test_1, Then value_1, IF(Test_2, Then value _2, IF(………)))

3. AND (): This function gives only a TRUE or FALSE answer.
Syntax: =AND (Logical value 1, Logical value 2,…)

4. OR ( ): Returns TRUE if atleast one argument is TRUE. This function returns the value FALSE, If all the arguments have the logical value FALSE
Syntax: = OR (Logical value 1, Logical value 2,…)