CBSE Class 12 Accountancy Question Paper 2024 (Set 1- 67/2/1) Available: Download Solution PDF with Answer Key

Solution:
For a forfeited share, the minimum re-issue price is the amount that was unpaid at the time of forfeiture. The unpaid amount here is:
₹100 - ₹70 = ₹30.

Hence, the minimum price at which the share can be reissued is ₹30.

Solution:
To calculate the amount debited to the Share Capital Account upon forfeiture of shares:

Step 1: Determine the nominal value of the share.
The nominal value is ₹10.

Step 2: Calculate the called-up amount excluding the premium.
The total called-up amount is ₹8, including a premium of ₹2. Exclude the premium to find the called-up capital:
Called-up Capital = ₹8 - ₹2 = ₹6.

Step 3: Debit the Share Capital Account.
Since ₹6 has been called up and ₹6 has been paid, the Share Capital Account is debited with ₹6.
Hence, the correct answer is (D) ₹6.

Solution:
In a partnership firm, when the capital accounts are fixed, only permanent changes like additional capital, withdrawal of capital, or opening balances are recorded in the capital account. Temporary adjustments, such as drawings, interest on capital, or share of profit/loss, are recorded in the current account. Therefore, drawings cannot be recorded in the fixed capital account.

Solution:
Step 1: Determine the share sacrificed by Ashu and Basu.
Chetan's share is ¹⁄₄ , which is acquired equally from Ashu and Basu. Therefore:
Ashu's Sacrifice = ¹⁄₄ x ¹⁄₂ = ¹⁄₈ , Basu's Sacrifice = ¹⁄₄ x ¹⁄₂ = ¹⁄₈ .

Step 2: Calculate the new shares of Ashu and Basu.
Ashu's New Share = ²⁄₃ - ¹⁄₈ = ¹⁶⁄₂₄ - ³⁄₂₄ = ¹³⁄₂₄.
Basu's New Share = ¹⁄₃ - ¹⁄₈ = ⁸⁄₂₄ - ³⁄₂₄ = ⁵⁄₂₄.

Chetan's Share = ¹⁄₄ = ⁶⁄₂₄.

Step 3: Simplify the new ratio.
The new profit-sharing ratio is:
13:5:6.

Hence, the correct answer is (1).

Solution:
In the absence of a partnership agreement, interest on loans provided by a partner is charged at 6% per annum. The loan was advanced on 1st January, 2023, and the year ends on 31st March, 2023, making the duration 3 months.
Interest = ₹3,00,000 x ⁶⁄₁₀₀ x ³⁄₁₂ = ₹4,500.

Hence, the correct answer is (2).

Solution:
If a partner withdraws a fixed amount at the end of each quarter, the average period for which interest is charged is calculated as: Average Period = ^{Time from First Withdrawal + Time from Last Withdrawal}⁄₂ .

Withdrawals occur at the end of: - 1st quarter: Remaining time is 9 months. - 2nd quarter: Remaining time is 6 months. - 3rd quarter: Remaining time is 3 months. - 4th quarter: Remaining time is 0 months.
For average period: Average Period = ^{9 + 0}⁄₂ = 4.5 months.

Hence, the correct answer is (4).

Solution:
The initial profit-sharing ratio is 4 : 3 : 3, and the new profit-sharing ratio is 1:1:1 (equal sharing).

For Arjun:
Old Share = ³⁄₁₀ , New Share = ¹⁄₃.

Calculate Arjun's sacrifice or gain:
Sacrifice or Gain = New Share - Old Share.

Substitute the values:
Sacrifice or Gain = ¹⁄₃ - ³⁄₁₀.

Take the LCM of denominators 10 and 3, which is 30:
¹⁄₃ = ¹⁰⁄₃₀ , ³⁄₁₀ = ⁹⁄₃₀.

Sacrifice or Gain = ¹⁰⁄₃₀ - ⁹⁄₃₀ = ¹⁄₃₀.

Since the result is positive, it represents a gain.
Hence, the correct answer is (2) Gain ¹⁄₃₀.

Solution:
The interest on capital (IOC) is calculated at the rate of 10% p.a. on the capital contributions.
IOC (Neeru) = ¹⁰⁄₁₀₀ x 2,00,000 = ₹20,000 IOC (Meetu) = ¹⁰⁄₁₀₀ x 1,50,000 = ₹15,000

The total interest exceeds the available profit of ₹17,500. Therefore, the interest will be adjusted in the ratio of their capitals, which is 2,00,000 : 1,50,000 = 4 : 3.
Adjusted IOC (Neeru) = ⁴⁄₇ x 17,500 = ₹10,000 Adjusted IOC (Meetu) = ³⁄₇ x 17,500 = ₹7,500

Hence, the correct answer is (4) Neeru ₹10,000; Meetu ₹7,500

Solution:
To calculate the profit or loss on realisation, use the formula: Profit or Loss on Realisation = Total Realisation - (Outside Liabilities + Realisation Expenses).
Substitute the values: Total Realisation = ₹7,20,000, Outside Liabilities = ₹2,40,000, Realisation Expenses = ₹8,000
Profit or Loss = ₹7,20,000 - (₹2,40,000 + ₹8,000) = ₹7,20,000 - ₹2,48,000 = ₹4,72,000
The profit on realisation is ₹4,72,000. However, after accounting for initial total assets ₹6,00,000, the net profit is: ₹7,20,000 - ₹6,00,000 - ₹8,000 = ₹1,12,000.

Hence, the correct answer is (4) Profit ₹1,12,000.

Solution:
Step 1: Calculate the total debenture amount.
The face value of each debenture is ₹100, and 30,000 debentures were issued. Therefore: Total face value = 30,000 x ₹100 = ₹30,00,000.

Step 2: Calculate the annual interest.
The interest rate is 10%, so the total interest for one year is: Total interest = 10% x ₹30,00,000 = ₹3,00,000.

Hence, the correct answer is (2) ₹3,00,000

Solution:
The old profit-sharing ratio of Kishore and Bimal is 4:3, and Nand takes ¹⁄₄ of the profits. The remaining ³⁄₄ will be shared equally between Kishore and Bimal.

Step 1: Calculate old shares of Kishore and Bimal.
Kishore's old share = ⁴⁄₇, Bimal's old share = ³⁄₇.

Step 2: Calculate new shares of Kishore and Bimal.
The remaining ³⁄₄ is shared equally: Kishore's new share = ³⁄₄ x ¹⁄₂ = ³⁄₈, Bimal's new share = ³⁄₈.

Step 3: Calculate sacrifice.
Kishore's sacrifice = ⁴⁄₇ - ³⁄₈ = ³²⁄₅₆ - ²¹⁄₅₆ = ¹¹⁄₅₆, Bimal's sacrifice = ³⁄₇ - ³⁄₈ = ²⁴⁄₅₆ - ²¹⁄₅₆ = ³⁄₅₆.

Step 4: Determine the sacrificing ratio.
The sacrificing ratio is 11:3.

Hence, the correct answer is (3).

Solution:
Step 1: Calculate Tina's profit share based on the profit-sharing ratio.
The total profit is ₹1,60,000, and the profit-sharing ratio is 2:2:1. Tina’s share is: Tina's share = ¹⁄₅ x 1,60,000 = ₹32,000.

Step 2: Determine the deficiency.
Tina is guaranteed ₹40,000. Since her calculated share is ₹32,000, the deficiency is: Deficiency = ₹40,000 - ₹32,000 = ₹8,000.

Step 3: Allocate the deficiency.
The deficiency of ₹8,000 will be borne by Raju as per the agreement.

Hence, the correct answer is (1) ₹8,000.

Solution:
Dissolution of a partnership can take place by mutual agreement among partners, and in such cases, the court does not intervene. Assertion (A) correctly states this, and Reason (R) explains it accurately. Thus, both Assertion (A) and Reason (R) are correct, and Reason (R) provides the correct explanation.

Hence, the correct answer is (1).

Solution:
To calculate the number of debentures issued, use the formula: Number of Debentures = ^{Purchase Consideration}⁄_{Issue Price per Debenture} .

Step 1: Calculate the Issue Price per Debenture.
The face value of each debenture is ₹100, and the discount is 10%. Hence, the issue price is: Issue Price = ₹100 - ₹10 = ₹90.

Step 2: Calculate the Number of Debentures.
Number of Debentures = ^12,60,000⁄₉₀ = 14,000.

Hence, the correct answer is (4) 14,000.

Solution:
The debentures account is always credited with the face value of the debentures, regardless of whether they are issued at a premium or a discount.

Calculation:
Face Value of Debentures = 6,000 x ₹100 = ₹6,00,000.

The discount amount of ₹4 per debenture (₹96 issue price) is recorded separately as a loss under “Discount on Issue of Debentures.”

Hence, the correct answer is (3) ₹6,00,000.

Solution:
Nominal or authorised share capital refers to the maximum value of shares that a company is authorised to issue as per its Memorandum of Association. It is the upper limit of share capital that a company can legally raise.

Hence, the correct answer is (3).

Solution:
Debentures are classified based on whether they are secured against company assets. Unsecured Debentures, also known as naked debentures, do not have any specific charge on the company's assets. These debentures rely on the general creditworthiness of the issuer for repayment.

Hence, the correct answer is (2).

Solution:
Step 1: Calculate the total capital of the firm based on Sanju’s share.
Sanju's share in the profits is ¹⁄₅. This means the total capital of the firm can be calculated as: Total Capital of the Firm = ^{Sanju's Capital}⁄_{Sanju's Share} = ^1,00,000⁄_¹⁄5 = 5,00,000.

Step 2: Calculate the combined capital of existing partners.
The combined capital of Manas and Ranvir is: Combined Capital = 1,20,000 + 80,000 = 2,00,000.

Step 3: Calculate the goodwill of the firm.
Goodwill of the firm is the difference between the total capital of the firm and the combined capital of the existing partners: Goodwill = Total Capital of the Firm – Combined Capital of Existing Partners. Goodwill = 5,00,000 - 2,00,000 = 3,00,000.

Final Answer: The goodwill of the firm on Sanju's admission is ₹2,00,000

Solution:
Interest on drawings is calculated as: Interest on Drawings = Amount Withdrawn × Rate of Interest × Average Period. Assuming regular withdrawals, the average period is 6 months: Interest on Drawings = ₹80,000 × ⁵⁄₁₀₀ × ⁶⁄₁₂ = ₹2,000.

Solution:
Interest on capital is calculated as: Interest on Capital = Capital Amount × Rate of Interest. Assuming Vivek's capital is ₹3,80,000, and the rate of interest is 15% per annum: Interest on Capital = ₹3,80,000 × 15% = ₹57,000. Thus, the correct answer is (3).

Solution:
1. Chetan's share is ¹⁄₄, leaving ³⁄₄ to be shared between Ashu and Basu. 2. Ashu and Basu sacrifice equally: Ashu's new share = ²⁄₃ x ³⁄₄ + ¹⁄₈ = ¹³⁄₂₄ Basu's new share = ¹⁄₃ x ³⁄₄ + ¹⁄₈ = ⁵⁄₂₄ 3. Chetan's share is ¹⁄₄ = ⁶⁄₂₄. Thus, the new ratio is 13:5:6. Hence, the correct answer is (1).

Solution:
Step 1: Calculate the total capital of Charu and Sirima in the new ratio. The new profit-sharing ratio between Charu and Sirima is 2:1. The total capital of the firm is 6,30,000.
Charu's Capital = ²⁄₃ × 6,30,000 = 4,20,000 Sirima's Capital = ¹⁄₃ × 6,30,000 = 2,10,000

Step 2: Adjust the current balances of Charu and Sirima.
• Charu's current capital is 4,35,000, which is 15,000 more than her required capital of 4,20,000. Therefore, Charu will withdraw 15,000.
• Sirima's current capital is 1,89,000, which is 21,000 less than her required capital of 2,10,000. Therefore, Sirima will bring in 21,000.

Step 3: Journal Entries:

Solution:
Step 1: Distribution of Net Profit in the Profit-Sharing Ratio. The net profit of 1,20,000 is distributed among Chaman, Burman, and Aman in the ratio of 3:2:1:
Chaman's Share = 1,20,000 × ³⁄₆ = 60,000
Burman's Share = 1,20,000 × ²⁄₆ = 40,000 Aman's Share = 1,20,000 × ¹⁄₆ = 20,000

Step 2: Adjustment for Aman's Guaranteed Profit. Aman is guaranteed 60,000, but his calculated share is only 20,000. Hence, an adjustment of 40,000 needs to be made from the profits of Chaman and Burman in their profit-sharing ratio (3:2):
Adjustment from Chaman = 40,000 × ³⁄₅ = 24,000
Adjustment from Burman = 40,000 × ²⁄₅ = 16,000

Step 3: Final Distribution of Profit. After adjustments:
Chaman's Final Share = 60,000 - 24,000 = 36,000
Burman's Final Share = 40,000 – 16,000 = 24,000
Aman's Final Share = 20,000 + 40,000 = 60,000

Step 4: Journal Entries:

Solution:
Step 1: Calculate the old and new profit-sharing ratios.
Old Ratio = 3:2:4:1
New Ratio = 1 : 1 : 1 :1

Step 2: Calculate the sacrifice or gain for each partner.
Sacrificing Ratio = Old Share - New Share
Madhu's Share: ³⁄₁₀ - ¹⁄₄ = ¹²⁄₄₀ - ¹⁰⁄₄₀ = ²⁄₄₀ (Sacrifice)
Raj's Share: ²⁄₁₀ - ¹⁄₄ = ⁸⁄₄₀ - ¹⁰⁄₄₀ = ^-2⁄₄₀ (Gain)
Atul's Share: ⁴⁄₁₀ - ¹⁄₄ = ¹⁶⁄₄₀ - ¹⁰⁄₄₀ = ⁶⁄₄₀ (Sacrifice)
Prachi's Share: ¹⁄₁₀ - ¹⁄₄ = ⁴⁄₄₀ - ¹⁰⁄₄₀ = ^-6⁄₄₀ (Gain)

Step 3: Distribute the goodwill. The goodwill of 20,00,000 is distributed based on the sacrificing ratio (Madhu:Atul = 2:6):
Madhu's Share of Goodwill = 20,00,000 × ²⁄₈ = 5,00,000
Atul's Share of Goodwill = 20,00,000 × ⁶⁄₈ = 15,00,000

Step 4: Distribute the General Reserve. The General Reserve of 1,00,000 is distributed in the old profit-sharing ratio (3:2:4:1):
Madhu's Share = 1,00,000 × ³⁄₁₀ = 30,000
Raj's Share = 1,00,000 × ²⁄₁₀ = 20,000
Atul's Share = 1,00,000 × ⁴⁄₁₀ = 40,000
Prachi's Share = 1,00,000 × ¹⁄₁₀ = 10,000

Step 5: Journal Entries:

Solution:
Step 1: Analyze the transaction.
• Assets taken over: 5,40,000
• Liabilities taken over: 1,20,000
• Purchase consideration: 5,28,000
• Payment:
Half of 5,28,000 = 2,64,000 paid by cheque.
Remaining 2,64,000 settled by issuing 10% Debentures.
• Debentures issued at a 10% premium:
Face Value of Debentures = ^2,64,000⁄_1.10 = 2,40,000
Premium Amount = 2,40,000 × 10% = 24,000

Step 2: Journal Entries:

Solution:
Step 1: Analyze the transaction.
• Total debentures issued: 4,000 at 100 each + 50 premium 150 per debenture.
• Applications received: 5,000 debentures.
• Rejected applications: 1,000 debentures (150 per debenture refunded).
• Applications accepted: 4,000 debentures.
• Total application money received: 5,000 debentures × 150 = 7,50,000.

Step 2: Journal Entries:

Solution:
Goodwill = No. of years’ purchase X Super Profits
₹60,000 = 4 X Super Profits
Super Profits = ₹15,000
Capital Employed= Total Assets- Outside Liabilities = ₹2,00,000- Nil= ₹2,00,000
Normal Profit =10% of ₹2,00,000 = ₹20,000 Super Profit = Average Profit- Normal Profit
₹15,000 = Average profit- ₹20,000
Average Profit= ₹35,000

Solution:

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Solution:
Balance Sheet of RR Ltd. as on ... (extract) Notes to Accounts:

​​​

Solution:

(i) Books of Kajal Ltd. - Journal

(Alternative entry combining the debit to the loss account is also acceptable.)

(ii) Books of Ninja Ltd. - Journal

(iii) Books of Him Ltd. - Journal

Solution: Books of Nandu, Bandu, and Chandu - Journal

Solution:
Journal Entries:

Solution:

Solution:
Journal Entries:

Solution (i) Star Ltd.:
Books of Star Ltd. - Journal

Solution (ii) Premier Ltd.:
Books of Premier Ltd. - Journal

Solution: Journal Entries

Solution: The primary objective of financial statement analysis is to evaluate the profitability, financial health, and efficiency of the firm. It also helps understand the contribution of various financial components to the company's overall position. However, the analysis does *not* take into account price level changes; these are typically handled by inflation accounting or price level adjustment techniques.

Solution: The Quick Ratio, often referred to as the Acid-Test Ratio, measures a company's ability to meet its short-term obligations using its most liquid assets (cash, marketable securities, and receivables). It excludes inventory and prepaid expenses as they are less liquid compared to other current assets.

Solution: The current ratio is calculated as the ratio of current assets to current liabilities. Let's evaluate each transaction: 1. Payment of ₹40,000 to creditors: This reduces both current assets (cash) and current liabilities (creditors) equally, leaving the ratio unchanged. 2. Sale of furniture for ₹16,000: Furniture is a non-current asset, so this transaction does not impact the current ratio. 3. Repayment of long-term loan: This reduces current assets (cash) but does not affect current liabilities, leading to a decrease in the current ratio. 4. Cash collected from debtors: This is a movement within current assets (from debtors to cash), keeping the ratio unchanged.

Solution:
Statement I: The issue of debentures results in cash inflow as it involves borrowing money from investors, leading to an increase in the firm's cash resources. Hence, this statement is correct.

Statement II: When debentures are issued to vendors for the purchase of machinery, no cash flow is involved in the transaction. It is a non-cash financing activity. Therefore, this statement is incorrect.

Solution: The purchase of marketable securities for cash is classified as an investing activity because it involves acquiring a short-term asset. Such purchases lead to a reduction in cash resources, hence *no effect* will be there in the cash flow statement. It's a shift of assets, not a change in overall cash.

Solution: The payment for acquiring shares is considered an outflow under investing activities. Dividend income is also classified under investing activities and reduces the net outflow. Therefore:
Net Cash Flow = ₹5,00,000 – ₹30,000 = ₹4,70,000
This results in a cash outflow under investing activities.

Solution:

Solution:
Quick Ratio = ^{Quick Assets}⁄_{Current Liabilities}

Current Liabilities = Total Debt - Long Term Debt
Current Liabilities = 8,00,000 – 6,00,000 = 2,00,000

Quick Assets = Current Assets - Inventory
Current Assets = Working Capital + Current Liabilities
Current Assets = 2,40,000 + 2,00,000 = 4,40,000
Quick Assets = 4,40,000 - 2,20,000 = 2,20,000

Quick Ratio = ^2,20,000⁄_2,00,000 = 1.1:1

Debt-Equity Ratio = ^Debt⁄_Equity
Debt = Long Term Debt = 6,00,000
Equity = Shareholder's Funds = 12,00,000

Debt-Equity Ratio = ^6,00,000⁄_12,00,000 = 1:2 or 0.5:1

Solution:

Solution:

Table 1: Common Size Statement of Profit and Loss for Neurosci Ltd.

Solution:

Calculation of Cash Flows from Operating Activities:

1. Net Profit before Tax & Extraordinary Items:
   • Net Profit (Increase in Reserves and Surplus) = ₹1,50,000 – ₹1,00,000 = ₹50,000

   Add: Non-Cash and Non-Operating Items:

   • Depreciation on Machinery (calculated below)
   • Loss on Sale of Machinery = ₹1,000 (₹12,000 - ₹8,000 - ₹3,000)
   • Interest on Debentures = ₹8,500
   • Goodwill Written Off = ₹36,000 (Decrease in Goodwill from Balance Sheet)
2. Changes in Working Capital:

   Particulars	2023 (₹)	2022 (₹)	Effect on Cash Flow
   Trade Payables	89,500	1,02,000	Decrease ₹12,500
   Short-term Provisions	25,000	38,500	Decrease ₹13,500
   Inventories	64,500	60,500	Increase ₹4,000
   Trade Receivables	85,000	71,500	Increase ₹13,500

   Net *Decrease* in Working Capital = ₹12,500 + ₹13,500 - ₹4,000 - ₹13,500 = ₹8,500

3. Net Cash Flow from Operating Activities:

   Net Cash Flow from Operating Activities = Net Profit Before Tax + Non-Cash and Non-Operating Items – Net Decrease in Working Capital.

Calculation of Depreciation:

Depreciation = ₹33,000

Net Cash Flow from Operating Activities: ₹50,000 + ₹33,000 + ₹1,000 + ₹8,500 + ₹36,000 - ₹8,500 = ₹120,500

Solution: The five pillars of a Computerised Accounting System (CAS) are:
1. Data
2. People
3. Procedures
4. Hardware
5. Software

Procedures define the methods and processes, while hardware refers to the physical infrastructure used in the system.

Solution: The Sales and Accounts Receivable Sub-system of an Accounting Information System (AIS) is responsible for managing sales records and tracking outstanding receivables. It ensures that all sales transactions are accurately recorded and customer balances are properly maintained.

Solution: A Null value is used in databases to indicate the absence of any data for a specific field or item. It signifies that no value has been entered or that the value is unknown, making it distinct from zero or an empty string.

Solution: Data validation is the process of verifying whether input data meets specific criteria or matches known values. It ensures the accuracy and reliability of data by comparing it with a reference set or predefined rules. - Data storage involves saving data. Data entry refers to the act of inputting data into a system. - Data filtering is used to display or retrieve specific data based on certain conditions.

Solution: Step 1: Understanding a Data Label. A data label is a chart element that displays the value of each data point directly on the chart, making it easier to interpret the information visually. It is typically placed near the corresponding data point for better clarity. Step 2: Analyze the options. Option (A): This refers to the legend, which explains the symbols or colors used in the chart, not the individual data points. Option (B): This is correct because a data label directly indicates the value of each individual data point plotted on the chart. Option (C): This describes the axis or gridlines, which are unrelated to data labels. - Option (D): This refers to the chart title or description, not a data label. Step 3: Finalize the answer. The correct answer is (B) Indicates the individual value plotted on the chart.

Solution: Logical functions in spreadsheet software, such as ‘IF‘, ‘AND‘, or 'OR', typically allow up to 255 logical arguments. This ensures manageable complexity and efficient processing of the function.

Solution: Charts offer various advantages, including:
- Visual Clarity: Charts provide a clear visual representation of data, making it easier to understand and interpret.
- Comparative Analysis: They allow easy comparison between different data points, helping to highlight trends and relationships.
- Summarizing Data: Complex data sets can be simplified into a more digestible format.
- Quick Insights: Charts offer immediate insight into data, enabling faster decision-making.
- Enhanced Communication: They make it easier to communicate information to a wider audience, particularly in presentations.

Solution:
Sequential Codes: Sequential codes are used when data is assigned in a predetermined, consecutive order. They help organize information based on a sequence. For example, in a product inventory system, products might be assigned sequential numbers (e.g., 001, 002, 003, etc.) for easy tracking.

Block Codes: Block codes assign numbers in a fixed-length format, where each part of the code represents specific information. For instance, in a coding system for products, the first two digits may represent the product category, and the next three digits represent a specific product in that category (e.g., 12-345 for product 345 in category 12).

Solution: The accounting cycle is a systematic series of steps followed to record, process, and summarize financial transactions over a specific period, culminating in the preparation of financial statements.

The basic phases of the accounting cycle are:
1. Identifying Transactions: Recognizing financial events and transactions.
2. Recording Transactions: Entering transactions in the journal.
3. Posting to Ledger: Classifying transactions in ledger accounts.
4. Trial Balance: Preparing a trial balance to ensure the books are balanced.
5. Adjusting Entries: Making corrections for accrued and deferred items.
6. Financial Statements: Preparing the income statement, balance sheet, and cash flow statement.
7. Closing Entries: Closing temporary accounts and transferring balances to permanent accounts.

Solution: Data formatting involves modifying the appearance or arrangement of data to improve its clarity, presentation, and readability.

It includes setting number formats, text alignment, font styles, and applying conditional formatting.

Tools used for data formatting include:
1. Spreadsheet Software (e.g., Excel, Google Sheets): For formatting tables, charts, and data cells.
2. Data Visualization Tools (e.g., Tableau, Power BI): To create and format visual representations like graphs and dashboards.
3. Word Processing Tools (e.g., Microsoft Word): For formatting reports and tables for professional presentation.

Solution: To create the 'If' function in a spreadsheet:
1. Select the cell where you want the result to appear.
2. Open the formula tab and click on the “Insert Function” option.
3. From the function list, choose "IF”.
4. In the logical test field, input the condition: (income – expenses) > 10000.
5. In the value if true field, input: (income – expenses) × 10%.
6. In the value if false field, input: (income – expenses) × 5%.
7. Click "OK" to finalize and apply the formula.

The syntax of the function is:
=IF((income - expenses) > 10000, (income - expenses) ×10%, (income – expenses) × 5%)