CBSE Class 12 Accountancy Question Paper 2024 (Set 3- 67/1/3) Available: Download Solution PDF with Answer Key

Step 1: Identify the profit-sharing ratios:
Old ratio = 5 : 3 : 2.
New ratio = 2 : 3 : 5.

Step 2: Calculate the change in ratios: \[ Gain or loss = Old Ratio - New Ratio. \]

Step 3: Adjust General Reserve:
Dan’s gain = \(\frac{5}{10} - \frac{2}{10} = \frac{3}{10}\).
Furhan’s loss = \(\frac{2}{10} - \frac{5}{10} = -\frac{3}{10}\).

Adjustment amount = General Reserve × Change in Ratio = Rs.90,000 × \(\frac{3}{10}\) = Rs.27,000. Quick Tip: Changes in profit-sharing ratios require adjustments for reserves and profits among partners using the gaining and sacrificing ratios.

Step 1: Determine the old profit-sharing ratio:
Old ratio = 3 : 2 : 1.

Step 2: Distribute the debit balance of Profit and Loss Account:
- Sia’s share = \(\frac{3}{6} \times Rs.60,000 = Rs.30,000\).

- Tom’s share = \(\frac{2}{6} \times Rs.60,000 = Rs.20,000\).

- Vidhi’s share = \(\frac{1}{6} \times Rs.60,000 = Rs.10,000\).


Step 3: Record the adjustment:
The journal entry reflects the adjustment of the debit balance against the partners’ capital accounts. Quick Tip: Debit balances in the Profit and Loss Account are adjusted among partners in their old profit-sharing ratio before changes to the ratio are applied.

Step 1: Definition of calls in advance:
Calls in advance refer to the amount received from shareholders before the call is made by the company’s directors.

Step 2: Accounting treatment:
This amount is considered a liability until the call is made and is credited to the Calls in Advance Account. Quick Tip: Calls in advance are recorded as a liability because the company owes this amount back to shareholders until the call is made.

Private placement of shares refers to offering securities to a specific group of investors rather than the public.
This is typically done to raise capital quickly and is regulated by the Companies Act.
It is different from public offerings, which are open to all investors. Quick Tip: Private placement allows companies to access funds from select investors without going through public offerings.

Step 1: Understanding Share Forfeiture

When shares are forfeited, the Share Capital Account is debited by the amount already called-up on those shares.

The total face value of each share is Rs.10, with the following calls made before forfeiture:

- Application Money: Rs.4 per share

- Allotment Money: Rs.5 per share

- First and Final Call: Not yet called


Since the first and final call was not made, only the Application and Allotment money were called up, totaling:
\[ Called-up Amount per share = 4 + 5 = 9 \]


Step 2: Calculate the Amount to be Debited

Since 1,500 shares were forfeited, the amount debited to the Share Capital Account is:
\[ Total Amount = 1,500 \times 9 \]
\[ = 13,500 \]


% Final Answer
Final Answer: \[ \boxed{Rs.13,500} \] Quick Tip: In share forfeiture, the Share Capital Account is debited with the called-up amount on forfeited shares.

Step 1: Understand the initial profit-sharing ratio and Damini's share.

The initial profit-sharing ratio of Atul, Beena, and Sita is \( 8 : 7 : 5 \), and Damini is admitted with a \(\frac{1}{5}\) share in the profits. Damini's share is acquired entirely from Atul.


Step 2: Calculate Atul's new share after giving Damini \(\frac{1}{5}\).

Atul's original share is \(\frac{8}{20}\). Damini’s share, \(\frac{1}{5} = \frac{4}{20}\), is subtracted entirely from Atul’s share. Thus, Atul's new share is: \[ \frac{8}{20} - \frac{4}{20} = \frac{4}{20}. \]

Step 3: Beena and Sita's shares remain unchanged.

Beena’s share is \(\frac{7}{20}\), and Sita’s share is \(\frac{5}{20}\). These remain the same as Damini's share only affects Atul's share.

Step 4: Finalize the new profit-sharing ratio.

The new profit-sharing ratio of Atul, Beena, Sita, and Damini is: \[ 4 : 7 : 5 : 4. \] Quick Tip: When a new partner is admitted, their share is deducted from the contributing partner(s), and the new ratio is calculated accordingly.

Step 1: Determine new shares:
Rushil’s new share = \(4 - \frac{2}{7} = \frac{28}{7} - \frac{2}{7} = \frac{26}{7}\).
Abheer’s new share = \(3 - \frac{1}{7} = \frac{21}{7} - \frac{1}{7} = \frac{20}{7}\).
Sunil’s share = \(\frac{3}{7}\).

Step 2: Combine shares and simplify: \[ Rushil : Abheer : Sunil = \frac{26}{7} : \frac{20}{7} : \frac{3}{7} = 26 : 20 : 3 = 2 : 2 : 3. \] Quick Tip: Ensure the shares transferred match the agreed new partner contribution.

Step 1: Understand the pro-rata allotment.

The company invited applications for 50,000 equity shares, but applications were received for 2,50,000 shares. Hence, the pro-rata allotment ratio is: \[ Pro-rata ratio = \frac{Shares Allotted}{Shares Applied} = \frac{50,000}{2,50,000} = \frac{1}{5}. \]
This means for every 5 shares applied, only 1 share was allotted.

Step 2: Calculate the total amount received on applications.

The application money for each share is \(Rs.10 + Rs.3\) (premium) = \(Rs.13\). The total amount received for 2,50,000 shares is: \[ Total Amount Received = 2,50,000 \times 13 = Rs.32,50,000. \]

Step 3: Calculate the amount retained by the company.

Since 50,000 shares were allotted, the company retained application money for only these shares. The total amount retained is: \[ Amount Retained = 50,000 \times 13 = Rs.6,50,000. \]

Step 4: Calculate the amount refunded.

The amount refunded to the applicants is the difference between the total amount received and the amount retained: \[ Amount Refunded = Total Amount Received - Amount Retained. \]
Substituting the values: \[ Amount Refunded = Rs.32,50,000 - Rs.6,50,000 = Rs.26,00,000. \]

Step 5: Finalize the refund amount.

The amount refunded by the company is \(Rs.26,00,000\). Quick Tip: For pro-rata allotments, refunds are based on the application price for shares not allotted.

Step 1: Understand irredeemable debentures:
These are long-term debentures without a fixed maturity date.

Step 2: Explanation of the reason:
Repayment of these debentures is either on winding up or as specified by the company after a long duration. Quick Tip: Irredeemable debentures are perpetual liabilities and are repayable only under specific circumstances like winding up.

Step 1: Determine the interest on capital as per the partnership deed.

The partnership deed provides for interest on capital at 10% per annum. For Abha: \[ Interest on Abha's capital = Rs.5,00,000 \times \frac{10}{100} = Rs.50,000. \]

Step 2: Check the adequacy of profits to provide full interest on capital.

The firm's total profit for the year is Rs.90,000. The total interest on capital for both partners is: \[ Interest on Abha's capital + Interest on Babita's capital = Rs.50,000 + (Rs.10,00,000 \times \frac{10}{100}) = Rs.50,000 + Rs.1,00,000 = Rs.1,50,000. \]
Since the available profit (Rs.90,000) is less than the total interest on capital (Rs.1,50,000), the interest will be distributed proportionally to their capital balances.

Step 3: Distribute the available profit in proportion to capital balances.

The capital balances of Abha and Babita are Rs.5,00,000 and Rs.10,00,000, respectively. The ratio of their capitals is: \[ \frac{Abha's capital}{Babita's capital} = \frac{5,00,000}{10,00,000} = 1 : 2. \]
The available profit of Rs.90,000 will be distributed in the ratio \( 1 : 2 \): \[ Abha's share of interest = \frac{1}{3} \times 90,000 = Rs.30,000. \]

Step 4: Finalize the interest on capital for Abha.

The amount of interest on capital allowed to Abha is Rs.30,000. Quick Tip: Interest on capital is an appropriation of profit, not a charge against profit, and is calculated based on the agreement.

Step 1: Total profit available for the firm.

The firm earned a total profit of Rs.90,000 for the year. As per the partnership deed, interest on capital is provided before distributing the remaining profit.

Step 2: Calculate the total interest on capital.

The capital balances of Abha and Babita are Rs.5,00,000 and Rs.10,00,000, respectively. The interest on capital is calculated at 10% per annum: \[ Interest on Abha's capital = Rs.5,00,000 \times \frac{10}{100} = Rs.50,000, \] \[ Interest on Babita's capital = Rs.10,00,000 \times \frac{10}{100} = Rs.1,00,000. \]
The total interest on capital required is: \[ Rs.50,000 + Rs.1,00,000 = Rs.1,50,000. \]

Step 3: Check if the available profit is sufficient to cover the interest on capital.

The available profit (Rs.90,000) is less than the required interest on capital (Rs.1,50,000). Hence, the available profit is distributed proportionally to the partners’ capital balances.

Step 4: Distribute the available profit.

The ratio of capital balances is: \[ \frac{Abha's capital}{Babita's capital} = \frac{5,00,000}{10,00,000} = 1 : 2. \]
The available profit of Rs.90,000 is distributed in the ratio \(1 : 2\): \[ Abha's share of interest = \frac{1}{3} \times 90,000 = Rs.30,000, \] \[ Babita's share of interest = \frac{2}{3} \times 90,000 = Rs.60,000. \]

Step 5: Check if Babita's profit share remains.

Babita's interest on capital (Rs.60,000) is fully covered by the available profit. Since all the available profit has been used to pay the interest on capital, no additional profit remains to be distributed. Therefore, Babita’s share in profit is: \[ Nil. \] Quick Tip: Profit is allocated according to the profit-sharing ratio specified in the partnership deed or agreement.

Step 1: Determine Boris's entitled profit:
Boris’s share as per the profit ratio = \(\frac{3}{10} \times 2,00,000 = Rs.60,000\).

Step 2: Calculate the shortfall:
Shortfall = Rs.95,000 - Rs.60,000 = Rs.35,000.

Step 3: Share the shortfall:
Abhay and Chetan bear the shortfall equally: \[ Abhay's contribution to Boris = \frac{Rs.35,000}{2} = Rs.17,500. \] Quick Tip: Profit guarantees ensure the guaranteed partner receives the committed amount, with the burden shared as per the agreement.

Step 1: Goodwill premium is distributed to old partners in their sacrificing ratio.

Step 2: Calculate the sacrificing ratio:

Sacrificing ratio = Old ratio - New ratio = 1 : 1 : 1. Quick Tip: Goodwill premium compensates old partners for the share of profits they sacrifice in favor of the new partner.

Step 1: Role of partners:
According to the Partnership Act, each partner acts as both a principal and an agent.

Step 2: Explanation of Reason (R):
The Partnership Act defines that the business can be conducted collectively by all partners or by one partner acting on behalf of the rest.

Step 3: Conclusion:
Reason (R) accurately explains Assertion (A), making both the assertion and the reason correct. Quick Tip: In partnerships, each partner plays a dual role as both a principal and an agent for the other partners.

Step 1: Understand reserve capital:
Reserve capital refers to the uncalled portion of the subscribed capital that is earmarked for use only in case of company liquidation.

Step 2: Purpose of reserve capital:
It acts as a safeguard for creditors during the winding-up process. Quick Tip: Reserve capital is a part of uncalled capital that provides financial security to creditors during liquidation.

Step 1: Rules for reissue of forfeited shares:
As per the Companies Act, forfeited shares can be reissued at a price not less than the unpaid amount.

Step 2: Calculate the unpaid amount:
Unpaid amount = Rs.100 (face value) - Rs.80 (amount received) = Rs.20.

Step 3: Determine the minimum price:
The minimum price for reissue is Rs.20, which is the unpaid amount on the share. Quick Tip: The minimum reissue price for forfeited shares is always equal to the unpaid amount on those shares.

Step 1: Calculate the total amount forfeited.

The amount paid on forfeited shares was Rs.7 per share. For 500 shares, the total amount forfeited is: \[ Total Forfeited Amount = 500 \times 7 = Rs.3,500. \]


Step 2: Calculate the total amount reissued.

The shares were reissued for Rs.9 per share. For 500 shares, the total amount reissued is: \[ Total Reissued Amount = 500 \times 9 = Rs.4,500. \]


Step 3: Determine the total nominal value and premium.

The nominal value of each share is Rs.10. Since the shares were reissued for Rs.9 per share, the loss on reissue per share is: \[ Loss on Reissue = Rs.10 - Rs.9 = Rs.1 per share. \]
For 500 shares, the total loss is: \[ Total Loss = 500 \times 1 = Rs.500. \]


Step 4: Calculate the amount transferred to Capital Reserve Account.

The amount forfeited is adjusted against the loss on reissue. The remaining balance is transferred to the Capital Reserve Account: \[ Capital Reserve = Total Forfeited Amount - Total Loss. \]
Substituting the values: \[ Capital Reserve = Rs.3,500 - Rs.500 = Rs.3,000. \]


Step 5: Finalize the answer.

The amount transferred to the Capital Reserve Account is Rs.3,000.
Quick Tip: The profit on reissue of forfeited shares is calculated as the difference between the total share value and the reissued value and is credited to the Capital Reserve Account.

Step 1: Understand the initial profit-sharing ratio.

The initial profit-sharing ratio of Anju, Divya, and Bobby is \(3 : 2 : 1\). Therefore: \[ Anju's share = \frac{3}{6}, \quad Divya's share = \frac{2}{6}, \quad Bobby's share = \frac{1}{6}. \]


Step 2: Determine the new profit-sharing ratio.

After Bobby's retirement, the new profit-sharing ratio between Anju and Divya is \(5 : 3\). Therefore: \[ Anju's new share = \frac{5}{8}, \quad Divya's new share = \frac{3}{8}. \]


Step 3: Calculate the gaining ratio.

The gaining ratio is calculated as the difference between the new share and the old share for each partner.
\[ Anju's gain = Anju's new share - Anju's old share = \frac{5}{8} - \frac{3}{6}. \]
Converting \(\frac{3}{6}\) to a denominator of 8: \[ Anju's gain = \frac{5}{8} - \frac{4}{8} = \frac{1}{8}. \]

Similarly, for Divya: \[ Divya's gain = Divya's new share - Divya's old share = \frac{3}{8} - \frac{2}{6}. \]
Converting \(\frac{2}{6}\) to a denominator of 8: \[ Divya's gain = \frac{3}{8} - \frac{4}{12} = \frac{3}{8} - \frac{2}{8} = \frac{1}{8}. \]


Step 4: Express the gaining ratio.

The gaining ratio between Anju and Divya is: \[ Gaining Ratio = 3 : 1. \]
Quick Tip: To calculate the gaining ratio, subtract the old profit-sharing ratio from the new profit-sharing ratio for each partner and simplify.

Step 1: Calculate Atul's share:
Atul's share = \(\frac{1}{6}\) (as total ratio = \(3 + 2 + 1 = 6\)).

Step 2: Distribute Atul's share between Mita and Veena:

- Mita's additional share = \(\frac{1}{6} \times \frac{1}{5} = \frac{1}{30}\).

- Veena's additional share = \(\frac{1}{6} \times \frac{4}{5} = \frac{4}{30} = \frac{2}{15}\).

Step 3: Calculate new profit-sharing ratios:

- Mita's new share = \(\frac{3}{6} + \frac{1}{30} = \frac{15}{30} + \frac{1}{30} = \frac{16}{30} = \frac{8}{15}\).

- Veena's new share = \(\frac{2}{6} + \frac{4}{30} = \frac{10}{30} + \frac{4}{30} = \frac{14}{30} = \frac{7}{15}\).

The new profit-sharing ratio between Mita and Veena is \(8 : 7\).
Quick Tip: When a retiring partner's share is distributed, the additional shares are calculated based on the specified ratio and added to the remaining partners’ shares to determine the new ratio.

Step 1: Total creditors' amount = Rs.60,000.

Step 2: Adjust amount against furniture = Rs.45,000.

Step 3: Balance payable = Rs.60,000 - Rs.45,000 = Rs.15,000. Quick Tip: In dissolution, liabilities are settled by adjusting available assets first before paying the remaining balance.

Step 1: Determine the total capital of the firm.

The total capital of Alex, Benn, and Cole after adjustments is: \[ Total Capital = Alex's Capital + Benn's Capital + Cole's Capital. \]
Substituting the values: \[ Total Capital = Rs.1,20,000 + Rs.80,000 + Rs.1,00,000 = Rs.3,00,000. \]

Step 2: Calculate Dona's proportionate capital.

Dona is admitted with a \(\frac{1}{5}\) share in the future profits. The proportionate capital for Dona is calculated as: \[ Dona's Capital = \frac{Dona's Share}{Remaining Partners' Share} \times Total Capital. \]
Dona's share is \(\frac{1}{5}\), and the remaining partners' share is \(1 - \frac{1}{5} = \frac{4}{5}\). Substituting the values: \[ Dona's Capital = \frac{\frac{1}{5}}{\frac{4}{5}} \times 3,00,000 = \frac{1}{4} \times 3,00,000 = Rs.75,000. \]

Step 3: Finalize Dona's capital contribution.

Dona's proportionate capital to be brought into the firm is Rs.75,000. Quick Tip: When admitting a new partner, calculate their capital based on the proportionate share in total adjusted capital.

Step 1: To calculate the gaining ratio, we first calculate the new profit-sharing ratio between Anmol and Cheenu after Badal's retirement.

The original profit-sharing ratio of Anmol, Badal, and Cheenu is 5:4:3. After Badal's retirement, Anmol and Cheenu decided to share the profits in the ratio 1:2.

Step 2: Calculate the gain for Anmol and Cheenu:
- Anmol's gain = New Share – Old Share = \( \frac{1}{3} - \frac{5}{12} = -\frac{1}{12} \) (sacrifice).

- Cheenu's gain = New Share – Old Share = \( \frac{2}{3} - \frac{3}{12} = \frac{5}{12} \) (gain).

Step 3: To record the treatment of goodwill without opening a Goodwill account, we use the gaining ratio and the total goodwill amount (Rs. 1,20,000).

Step 4: Calculate the journal entry to record the treatment of goodwill:


% Journal Entry

Quick Tip: For calculating gaining ratio, the gain is the difference between the new share and the old share. Record the journal entry based on the gaining ratio, with no need to open a goodwill account.

Step 1: Calculation of Normal Adjusted Profit \[ \begin{array}{|c|c|c|c|} \hline Year & Profit (Rs.) & Adjustment (Rs.) & Adjusted Profit (Rs.)
\hline 2019-20 & 50,000 & - & 50,000
2020-21 & 90,000 & - & 90,000
2021-22 & 80,000 & - & 80,000
2022-23 & 70,000 & 10,000 & 80,000
\hline TOTAL & 3,00,000 & & 3,00,000
\hline \end{array} \]

Step 2: Calculate Average Profit: \[ Average Profit = \frac{Total Adjusted Profit}{No. of years} = \frac{3,00,000}{4} = Rs. 75,000 \]

Step 3: Calculate Normal Profit: \[ Normal Profit = Capital Employed \times \frac{Normal Rate of Return}{100} = 3,00,000 \times \frac{15}{100} = Rs. 45,000 \]

Step 4: Calculate Super Profit: \[ Super Profit = Average Profit - Normal Profit = 75,000 - 45,000 = Rs. 30,000 \]

Step 5: Calculate Goodwill: \[ Goodwill = \frac{Super Profit \times 100}{Normal Rate of Return} = \frac{30,000 \times 100}{15} = Rs. 2,00,000 \]

Final Conclusion: The goodwill of the firm is Rs. 2,00,000.
Quick Tip: To calculate goodwill using the capitalization of super profit method, find the super profit by subtracting the normal profit from the average profit, and then multiply by \( \frac{100}{Normal Rate of Return} \).

Step 1: Calculate the issue price of debentures:

- Face value of each debenture = Rs.100.

- Discount = \(4%\) of Rs.100 = Rs.4.

- Issue price = Rs.100 - Rs.4 = Rs.96 per debenture.

Step 2: Calculate the number of debentures to be issued: \[ Number of Debentures to be Issued = \frac{Purchase Consideration}{Issue Price} = \frac{Rs.4,80,000}{Rs.96} = 5,000 debentures. \]

Step 3: Journal entries in the books of Sunrise Ltd.:


\begin{tabular{|l|p{8cm|c|r|
\hline
Date & Particulars & L.F. & Amount (Rs.)
\hline
2025-01-14 & Sundry Assets A/c Dr. & & 3,60,000
\cline{2-4
& Creditors A/c Dr. & & 1,00,000
\cline{2-4
& To Moonlight Ltd. & & 4,80,000
\cline{2-4
& \multicolumn{3{|l|{(Being assets and liabilities taken over from Moonlight Ltd.)
\hline
2025-01-14 & Moonlight Ltd. Dr. & & 4,80,000
\cline{2-4
& To 9% Debentures A/c & & 5,00,000
\cline{2-4
& To Discount on Issue of Debentures A/c & & 20,000
\cline{2-4
& \multicolumn{3{|l|{(Being issue of 5,000 debentures of Rs.100 each at a discount of 4%)
\hline
\end{tabular Quick Tip: When debentures are issued at a discount, the total discount is debited to the "Discount on Issue of Debentures" account and written off over the debenture's tenure.

Step 1: Calculate the issue price of debentures:

- Face value of each debenture = Rs.100.

- Premium = \(20%\) of Rs.100 = Rs.20.

- Issue price = Rs.100 + Rs.20 = Rs.120 per debenture.


Step 2: Calculate the number of debentures to be issued:
\[ Number of Debentures to be Issued = \frac{Purchase Consideration}{Issue Price} = \frac{Rs.18,00,000}{Rs.120} = 15,000 debentures. \]

Step 3: Journal entries in the books of Grapple Ltd.:



\begin{tabular{|l|p{8cm|c|r|
\hline
Date & Particulars & L.F. & Amount (Rs.)
\hline
2025-01-14 & Sundry Assets A/c Dr. & & 25,00,000
\cline{2-4
& To Sundry Liabilities A/c & & 5,00,000
\cline{2-4
& To Allore Ltd. & & 18,00,000
\cline{2-4
& \multicolumn{3{|l|{(Being assets and liabilities taken over from Allore Ltd.)
\hline
2025-01-14 & Allore Ltd. Dr. & & 18,00,000
\cline{2-4
& To 11% Debentures A/c & & 15,00,000
\cline{2-4
& To Securities Premium A/c & & 3,00,000
\cline{2-4
& \multicolumn{3{|l|{(Being issue of 15,000 debentures of Rs.100 each at a premium of Rs.20)
\hline
\end{tabular Quick Tip: Premium on debenture issues is credited to the "Securities Premium" account and shown under "Reserves and Surplus" in the Balance Sheet.

Step 1: Calculate the difference in interest on capital.

The excess interest on capital credited to the partners’ accounts is calculated as follows:
\[ Excess Rate of Interest = 8% - 5% = 3%. \]


Mohan's Capital: \( Rs.2,00,000 \times 3% = Rs.6,000 \).
Suhaan's Capital: \( Rs.1,00,000 \times 3% = Rs.3,000 \).
Adit's Capital: \( Rs.1,00,000 \times 3% = Rs.3,000 \).


Step 2: Pass the adjusting journal entry.
\[ \begin{array}{|c|c|c|c|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (Rs.)} & \textbf{Credit (Rs.)}
\hline --- & Mohan’s Capital A/c Dr. & 6,000 & ---
--- & Suhaan’s Capital A/c Dr. & 3,000 & ---
--- & Adit’s Capital A/c Dr. & 3,000 & ---
--- & To Profit and Loss Adjustment A/c & --- & 12,000
\hline \end{array} \]

Explanation: The excess interest credited to the partners’ accounts is debited, and the Profit and Loss Adjustment Account is credited to rectify the error. Quick Tip: When calculating interest on capital, ensure the correct rate is applied. Any discrepancies are adjusted through the Profit and Loss Adjustment Account.

Step 1: Calculate the interest on capital.


Manoj's Interest on Capital: \( Rs.90,000 \times 10% = Rs.9,000 \).
Nitin's Interest on Capital: \( Rs.80,000 \times 10% = Rs.8,000 \).


Step 2: Adjust for interest on drawings.


Manoj's Interest on Drawings: Rs.3,000.
Nitin's Interest on Drawings: Rs.2,000.


Step 3: Net adjustment to the partners' accounts.


Manoj: \( Rs.9,000 - Rs.3,000 = Rs.6,000 \) (net credit).
Nitin: \( Rs.8,000 - Rs.2,000 = Rs.6,000 \) (net credit).


Step 4: Pass the adjusting journal entry.
\[ \begin{array}{|c|c|c|c|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (Rs.)} & \textbf{Credit (Rs.)}
\hline --- & Profit and Loss Adjustment A/c Dr. & 12,000 & ---
--- & To Manoj’s Capital A/c & --- & 6,000
--- & To Nitin’s Capital A/c & --- & 6,000
\hline \end{array} \]

Explanation: Interest on capital not credited earlier is now provided, net of interest on drawings. Quick Tip: Ensure that all interest calculations, both on capital and drawings, are accurate and adjusted in the partners’ accounts at the year-end.

Solution:
Step 1: Calculate Realisation from Assets and Investments
- Debtors realised Rs.40,000.
- Stock realised Rs.50,000.
- Plant realised Rs.60,000.
- Vandana took 25% of investments = (25/100) × 80,000 = 20,000. She paid Rs.18,000.
- Remaining 75% investments = Rs.60,000. Archana took these at 10% less = 60,000 - 6,000 = 54,000.

Step 2: Total Realisations:
Total = Debtors + Stock + Plant + Vandana + Archana = Rs.40,000 + Rs.50,000 + Rs.60,000 + Rs.18,000 + Rs.54,000 = Rs.2,22,000.

Step 3: Deduct Realisation Expenses and Liabilities:
- Realisation expenses = Rs.20,000.
- Creditors paid = Rs.60,000.

Step 4: Calculate Realisation Profit:
Profit = Total Realisation - (Expenses + Liabilities).
Profit = Rs.2,22,000 - (Rs.20,000 + Rs.60,000) = Rs.42,000.

Step 5: Share Profit in the Ratio 5 : 3 : 2:
- Archana’s share = ⁵⁄₁₀ × 42,000 = Rs.21,000.
- Vandana’s share = ³⁄₁₀ × 42,000 = Rs.12,600.
- Arti’s share = ²⁄₁₀ × 42,000 = Rs.8,400.

Realisation Account:

Solution:
Password Security:
- Password security in a Computerised Accounting System ensures that only authorized users can access the system. Each user must log in using a unique username and password.
- It protects financial data from unauthorized access and misuse by limiting access based on roles and permissions.

Data Audit:
- Data audit refers to the tracking and monitoring of all data activities within the accounting system. This includes recording changes to transactions, updates, and the users involved.
- It ensures accountability, provides a traceable record of all actions, and helps prevent fraudulent activities by maintaining an audit trail.