Kerala Plus Two Accountancy Question Paper March 2020 with Answers

Reviewing Kerala Syllabus Plus Two Accountancy Previous Year Question Papers and Answers Pdf March 2020 helps in understanding answer patterns.

Kerala Plus Two Accountancy Previous Year Question Paper March 2020

Time: 2 Hours
Total Score: 60

Part – A
Accounting

I. Answer all questions from 1 to 5. Each carries 1 score. (5 × 1 = 5)

Question 1.
The amount received by the Not-for Profit organisation as per the will of a deceased person is called _________________
(a) Honorarium
(b) Subscription
(c) Legacy
(d) Specific grant
Answer:
(c) Legacy

Question 2.
At the time of dissolution of a firm, which of the following liabilities will be paid first?
(a) Outstanding Salary of Partners
(b) Partners Loan
(c) Partners Capital
(d) Sundry Creditors
Answer:
(d) Sundry Creditors

Question 3.
A Partnership firm incurred a loss of Rs. 28,000 during the year 2018-19. Which among the following is admissible to Partners at the end of this year?
(a) Interest on Partner’s Loan
(b) Interest on Partners Capital
(c) Commission to Pamters
(d) Salary to Pamters
Answer:
(a) Interest on Partner’s Loan

Question 4.
Goodwill brought in by the incoming partner in cash is credited to _________________
(a) Old Partners Capital Account in Sacrificing ratio
(b) Old Partners Capital Account in new ratio
(c) New Partners Capital Account in Gaining ratio
(d) New Partners Capital Account in new ratio
Answer:
(a) Old Partners Capital Account in Sacrificing ratio

Question 5.
At the time of reconstitution of a firm, the value ofthe  Building is found to have appreciated by 20%. What journal entry will be passed for the above adjustment about revaluation?
Answer:
Building A/c Dr
To Revaluation A/c

II. Answer any 4 questions from 6 to 10. Each carries 2 scores. (4 × 2 = 8)

Question 6.
Siva is a partner in United Tours and Travels. He withdraws Rs. 4,000 per month regularly in the middle of every month during the year 2019. The rate of interest on drawings is 8%. Calculate Interest on drawings for the year 2019.
Answer:
Interest on drawings = Total Amount × Average period × Rate of interest
Total amount = 4000 × 12 = 48,000
Interest on drawings = 48,000 × \(\frac{6}{12}\) × \(\frac{8}{100}\) = 1,920

Question 7.
Briefly explain any two circumstances that need the valuation of goodwill in a Partnership firm.
Answer:
Need for valuation of goodwill

• Change in the profit sharing ratio amongst the existing partners.
• Admission of new partner.
• Retirement or death of a partner.

Question 8.
Do you think that there is a need for the revaluation of assets and liabilities of a firm on the retirement of a partner? Justify your answer.
Answer:
Yes, it is necessary to revalue the assets and liabilities of a firm on the retirement of a partner. The following are the reasons:

• To show the true value of assets and liabilities.
• To ascertain profit or loss on revaluation of assets and liabilities.

Question 9.
Show how the following items will appear in the financial statement of a Not-for-Profit organisation:
(i) Cricket Match fund Rs. 40,000
(ii) Cricket Match Expenses Rs. 23,000
(iii) Donations received for conducting cricket matches Rs. 12,00,000
(iv) Sale of Cricket Match tickets Rs. 16,00,000
Answer:
Balance Sheet

Question 10.
Enumerate any two rights acquired by a newly admitted partner of a firm.
Answer:
(a) Right to share the assets of the firm.
(b) Right to share the profits of the firm.

III. Answer any 3 questions from 11 to 14. Each carries 3 scores. (3 × 3 = 9)

Question 11.
Rejith is a partner in a firm. On 1st January 2017, his capital account balance was Rs. 2,20,000. As per partnership agreement, a partner is entitled to 6% interest per annum on his capital. Rejith introduced additional capital Rs. 80,000 on 01-07-2017 and withdrew Rs. 50,000 on 1-10-2017. Calculate the interest on capital for the year ending 31st December 2017.
Answer:
Interest on capital
1. 2,20,000 × \(\frac{6}{100}\) × \(\frac{9}{12}\) = 9,900 (January to September)
2. 2,20,000 – 50,000 = 1,70,000
1,70,000 × \(\frac{6}{100}\) × \(\frac{3}{12}\) = 2,550 (October to December)
3. 80,000 × \(\frac{6}{100}\) × \(\frac{6}{12}\) = 2400 (July to December)
Interest oncapital for the year ending on 31.12.2017 = 9,900 + 2,550 + 2,400 = 14,850

Question 12.
State any three differences between dissolution of partnership and dissolution of firm.
Answer:
Difference between dissolution of partnership and dissolution of firm
(a) In the case of dissolution of partnership, the business is not terminated. But, in dissolution of the firm, the business of the firm is completely closed.
(b) In the case of dissolution of partnership assets and liabilities are revaluated and new balance sheet is drawn. But, in dissolution of firm, assets are sold and liabilities are paid off.
(c) The book of accounts are not closed in the case of dissolution of partnership. But, all books of accounts are closed in the case of dissolution of fthe irm.

Question 13.
The profit for the last five years of a firm were as follows:

Year	Profit
2014	62,000
2015	58,000
2016	84,000
2017	78,000
2018	80,000

Capital employed in the firm is Rs. 5,00,000. Calculate the value of goodwill based on 3 years purchase of Super Profit, assuming that the normal rate of return on capital employed is 12%.
Answer:
Calculation of Goodwill
Goodwill = Super profit × Number of year purchase
Super profit = Average profit – Normal profit
Average profit = \(\frac{62,000+58,000+84,000+78,000+80,000}{5}\) = 72,400
Normal profit = Capital employed × Normal rate of return
= 5,00,000 × \(\frac{12}{100}\)
= 60,000
Super profit = 72,400 – 60,000 = 12,400
Goodwill = 12.400 × 3 = 37,200

Question 14.
List out the various adjustments required in the accounts of a firm on retirement of a partner. (6 Points).
Answer:
Adjustment required on retirement of a partner

• Ascertainment of new profit sharing ratio and gaining ratio.
• Adjustment regarding goodwill.
• Adjustment of general reserves and accumulated profit/losses.
• Revaluation of assets and liabilities.
• Ascertainment of share of profit or loss up to the date of retirement.
• Adjustment of capital.
• Settlement of total amount due to the retiring partner.

IV. Answer any 2 questions from 15 to 17. Each carries 5 scores. (2 × 5 = 10)

Question 15.
Following is the Balance Sheet of Lekshmi, Priya, and Deepa, who share profits and losses equally.
Balance Sheet of Lekshmi, Priya and Deepa as on 31/03/2017

Lekshmi died on 31st May 2017. According to the Partnership deed her legal representatives are entitled to:
1. Balance in the capital account and undistributed profit/loss.
2. Share of Goodwill under average profit method.
3. Share in the profit upto the date of death based on last year Profit.
4. Interest on capital @ 6% p.a.
The goodwill of the firm under average profit method is Rs. 42,000 and profit for the year 2016-17 Rs. 21,600. Calcualte the amount payable to Lekshmi’s legal representatives.
Answer:

Note:
1. Calculation of goodwill
Lekshmi’s share of goodwill = 42,000 × \(\frac{1}{3}\) = 14,000
Priya’s gain = 14,000 × \(\frac{1}{2}\) = 7,000
Deepa’s gain = 14,000 × \(\frac{1}{2}\) = 7,000
Gaining ratio = 1 : 1

2. Profit upto the date of death = 21,600 × \(\frac{1}{3}\) × \(\frac{2}{12}\) = 1200

Question 16.
Sathy and Varsha are partners in a firm sharing profit and losses in the ratio of 3 : 1. Their Balance Sheet as on 1st January 2019 was as follows:
Balance Sheet of Sathy and Varsha as on 01/01/2019

Suma is admitted into the firm with \(\frac{1}{4}\) share in profits on the following terms:
1. Market value of Investment re to be taken at Rs. 70,000.
2. Buildings were found undervalued by Rs. 4,000.
3. Stock is revalued at Rs. 26,000.
4. It was found that creditors included a sum of Rs. 3,000 which was not to be paid.
5. Machinery is to be depreciated by 10%.
Prepare Revaluation Account.
Answer:

Question 17.
Write any five differences between Receipts and Payments Account and Income and Expenditure Account.
Answer:
Difference between Receipts & Payment A/c and Income and Expenditure A/c

Receipts and Payment A/c	Income and Expenditure A/c
1. It is the summary of cash book.	1. It is like a profit and Loss Account.
2. Starts with opening balance of cash in hand and at bank.	2. No such opening balance.
3. Records receipts and payments of revenue as well as capital nature.	3. It records income and expenditure of revenue nature only.
4. Receipts and payments may relates to preceding and succeeding periods.	4. Income and expenditure item relates only to the current period.
5. Non-cash items such as depreciation, provision for bad debt etc. are not considered.	5. Non-cash items relating the current period included in the account.
6. Prepared on cash basis.	6. Prepared on accrual basis.

V. Answer any 1 question from 18 to 19, which carries 8 scores. (1 × 8 = 8)

Question 18.
Following is the Receipts and Payments Account of Madras Sports Club for the year ending 31st March 2019.
Receipts and Payments Account for the Year ending 31.03.2019

Additional Information:
1. Subscription outstanding during 2018-19 amounted to Rs. 26,000.
2. Salary outstanding for the year 2018-19 amounted to Rs. 8,000.
3. Entrance fees and Donation should be capitalized.
4. The stock of stationery as on 31-03-2019 is valued at Rs. 800.
5. Depreciation is to be charged @ 10% p.a. on Sports equipments.
6. On 1st April 2018, other balances were as under:
Land and Building Rs. 1,20,000
Sports Equipment Rs. 18,000
Library Books Rs. 10,000
Prepare Income & Expenditure Account for the year ended 31st March 2019 and Balance Sheet as on that date.
Answer:
Income and Expenditure A/c for the year ended 31.03.2019

Balance Sheet as on 01.04.2018


Balance sheet as on 31.03.2019

Question 19.
Manu and Manoj are partners, who share profit in the ratio of 2 : 1. Following is te Balance Sheet as on 31st March 2018.
Balance Sheet of Manu and Manoj as on 31/03/2018

On a dispute between the partners, they decided to dissolve the firm on the following terms:
1. Realisation expenses amounted to Rs. 4,000.
2. Debtors realised at a discount of 5%.
3. Stock realised at Rs. 50,000.
4. Fixed Assets realised-
Land & Building Rs. 1,40,000
Furniture Rs. 18,000
5. There was an unrecorded asset of Rs. 5,000, which was taken over by Manu.
6. Creditors are paid in full.
Prepare necessary ledger accounts to close the books of a firm.
Answer:

Part – B
Computerised Accounting

VI. Answer all questioris from 20 to 22. Each carries 1 score. (3 × 1 = 3)

Question 20.
The Code CS101, CS102, CS103 for customer x, y, and z is an example of _________________ code.
(a) Mnemonic
(b) Sequential
(c) Block
(d) None of these
Answer:
(b) Sequential

Question 21.
Which of the following is not a component of a Payroll statement?
(a) D.A
(b) D.B
(c) H.R.A
(d) P.F
Answer:
(b) D.B

Question 22.
The tool used to connect two tables in LibreOffice Base.
(a) Report
(b) Queries
(c) Form
(d) Relationship
Answer:
(d) Relationship

VII. Answer any 3 questions from 23 to 26. Each carries 2 scores. (3 × 2 = 6)

Question 23.
Discuss any two security features of Computerised Accounting System.
Answer:
Security features of CAS
(i) Password security
(ii) Data Audit
(iii) Data Vault

Question 24.
The details of the sales are given below in the following spreadsheet:

Write the formula to calculate:
(a) Total Sales in cell C5.
(b) 10% Sales Commission to Praveen in cell D2.
Answer:
(a) = SUM (C2:C4) (Or) = C2 + C3 + C4
(b) = C2 * 10% (Or) = C2 * 10/100

Question 25.
Name the system generated ledger accounts in GNUkhata.
Answer:
System Generated Ledger Accounts

• Closing Stock
• Opening Stock
• Profit & Loss A/c (Or) Income & Expenditure A/c
• Stock at the Beginning

Question 26.
List out any four “data types” available in “LibreOffice Base”.
Answer:
Data types in LibreOffice Base:

• Text
• Number
• Data
• Time
• Yes/No
• Integer
• Memo
• Decimal…etc.

VIII. Answer any 2 questions from 26 to 29. Each carries 3 scores. (2 × 3 = 6)

Question 27.
Arun Traders took a loan of Rs. 1,00,000 for 24 months from SBI @ 12% interest for that period.
(a) Identify the financial function used for preparing loan repayment schedule in calc.
(b) Give its Syntax and explain its parameters.
Answer:
(a) PMT function
(b) = PMT (Rate, Nper, Pv, Fv, Type)

Question 28.
A chart is given for you.

(a) Identify the name of the above chart type.
(b) Briefly explain any advantages of preparing charts.
Answer:
(a) Column Chart
(b) Advantages of Chart

• Visual appeal
• Read the data easily
• Analyse and interpret data quickly
• Know the trends

Question 29.
Write the different steps for creating a Table in LibreOffice Base.
Answer:
Steps to Create Table in LibreOffice Base

• Open LibreOffice Base
• Application → Office → Libre Office Base
• Create Tables
• Click on Tables → Create table in design view
• Enter the field Name → Field type → Set the Primary key
• Save

IX. Answer any 1 question from 30 to 31. Each carries 5 scores. (1 × 5 = 5)

Question 30.
Describe the use and Syntax of the following functions in LibreOffice Calc:
(a) Now
(b) Count
(c) IF
(d) Rate
(e) Concatenate
Answer:
Use and Syntax of calc functions
(a) Now – It shows the current system date and time
The Syntax is = NOW ()

(b) Count – It counts cells that contain Numbers.
Syntax is = COUNT (Value 1, Value 2..) (or) = COUNT (Range)

(c) IF – It analyzes a logical test and evaluates the condition is true or false
Syntax is = IF (Test, Then – value, otherwise – values) (or) = IF (Logical – test, value – if true, value – if false)

(d) Rate – It is used to evaluate the rate of return on investment or interest on loan.
Syntax is = Rate (Nper, Pmt, PV, FV, Type, Guess)

(e) Concatenate – It is used to join two or more strings together.
Syntax is = concatenate (“Text 1”, “Text 2”,……)

Question 31.
Devika Agencies already created an organisation in GNUkhata. Now they want to create ledger accounts. Write the procedure to create the following ledger accounts by preparing a table showing relevant groups and subgroups, assuming that ther is no opening balances.
1. Capital
2. Furniture
3. Cash
4. Debtors
7. Sales
8. Salary
Answer:
Create Leger Accounts
Master → Create Account → Select Group → Select Sub Group → Enter the Account Name → Save
The Groups and Sub-Groups of the Leger Account are:

Ledger Account	Group	Sub-Group
1. Capital	Capital	None
2. Furniture	Fixed Assets	Furniture
3. Cash	Current Assets	Cash
4. Debtors	Current Assets	Sundry Debtors
5. Creditors	Current Liabilities	Sundry Creditors for Purchase
6. Purchases	Direct Expense	None
7. Sales	Direct Income	None
8. Salary	Indirect Expense	None