Karnataka 2nd PUC Accountancy 2026 Question Paper with Solution PDF

Part – A

Question 1:

In order to form a partnership, there should be atleast :

• (A) One person
• (B) Two people
• (C) Seven people
• (D) Fifty people

A, B and C are partners sharing profits in the ratio of \(5 : 3 : 2\). If C retires, the New Profit Sharing Ratio between A and B will be :

• (A) \(3 : 2\)
• (B) \(5 : 3\)
• (C) \(5 : 2\)
• (D) \(1 : 1\)

Unrecorded liabilities, when paid are shown in

• (A) Debit side of Realisation A/c
• (B) Debit side of Bank A/c
• (C) Credit side of Realisation A/c
• (D) Debit side of Cash A/c

Issued capital is a part of :

• (A) Reserve capital
• (B) Unissued capital
• (C) Authorised capital
• (D) Subscribed capital

Following is an extraordinary item :

• (A) Salary paid
• (B) Tax paid
• (C) Rent paid
• (D) Loss due to theft

Fill in the blank by choosing the appropriate answer from the choices:

Question 6:
Partnership comes into existence as a result of ________ among the partners.

Old Ratio \(-\) New Ratio = ________ Ratio.

On dissolution of a firm, Partner's Loan Account is transferred to ________ Account.

Loans which are repayable within ________ months, are called as short-term borrowings.

Common Size Statement is also known as ________ analysis.

Match the items in Column A with the correct corresponding items in Column B:

Column A:

a) Valuation of goodwill

b) Debentures

c) Revenue from operations

d) Profitability Ratio

e) Cash flow statement

Column B:

i) Acknowledgement of debt

ii) Earnings per share

iii) Inflows and Outflows of cash

iv) Average profit method

v) Sales

vi) Financial position

Profit or loss on revaluation is transferred to all partners' capital accounts in case of retirement of a partner. [State True/False]

State any one type of shares.

What do you mean by Redemption of debentures?

State any one user of Financial Statement Analysis.

Expand R.O.I.

Part – B

Question 17:

State any two differences between fixed capital method and fluctuating capital method.

Mention any two modes of disposal of amount due to retiring partner.

Give the meaning of over subscription.

Name the two types of financial statements.

Write any two examples for financing activities.

Part – C

Question 22:

Ravi and Kiran commenced partnership business on 01.04.2024 with capitals of ₹ 1,50,000 and ₹ 1,00,000 respectively. Their profit sharing ratio is \(3 : 2\) respectively.

They earned a profit of ₹ 50,000 for the year, before allowing :

a) Interest on capital at 10% per annum.

b) Interest on drawings : Ravi ₹ 4,000 and Kiran ₹ 2,000.

c) Commission payable to Ravi ₹ 3,000 per annum.

d) Salary payable to Kiran ₹ 8,000 per annum.

Prepare Profit and Loss Appropriation Account for the year ended 31.03.2025.

Geetha, Latha and Sangeetha are partners sharing profits and losses in the ratio of \(5 : 3 : 2\) respectively. Latha retires from the firm. Geetha and Sangeetha decided to share future profits in the ratio of \(3 : 2\).

Calculate Gaining Ratio of Geetha and Sangeetha.

Anil, Vishal and Sunil are partners sharing profits and losses in the ratio of \(4 : 3 : 3\). Their capitals on 01.04.2025 are ₹ 1,00,000, ₹ 80,000 and ₹ 50,000 respectively.

Vishal died on 31.12.2025. The partnership deed provides the following :

a) Interest on capital at 12% per annum.

b) Salary to Vishal ₹ 2,000 per month.

c) Vishal's share of goodwill ₹ 14,000 [as per A.S. -- 26].

d) Vishal's share of accrued profit upto the date of death, based on previous year profit.

Firm's previous year profit was ₹ 36,000.

Prepare Vishal's Executors Account.

From the following particulars, prepare statement of profit and loss for the year ended 31.03.2025 as per Schedule III of Companies Act, 2013 :

LG Company Limited earned a net profit of ₹ 7,00,000 for the year ended 31.03.2025. Depreciation for the year is ₹ 1,50,000. There was a profit of ₹ 60,000 on assets sold which was transferred to statement of profit and loss.

Trade receivables decreased during the year by ₹ 55,000 and trade payables also decreased by ₹ 45,000.

Compute cash flow from operating activities by indirect method.

Part – D

Question 27:

Govind and Sudeep are partners sharing profits and losses in the ratio of \(3 : 1\) respectively. Their Balance sheet as on 31.03.2025 is as follows :

Balance Sheet as on 31.03.2025

On 01.04.2025, they admitted Tarun into partnership on following terms :

a) Tarun should bring in ₹ 30,000 as capital for \(1/5^{th}\) share and ₹ 10,000 towards goodwill [As per A.S. -- 26].

b) Goodwill amount is withdrawn by old partners.

c) Depreciate furniture at 5%.

d) Appreciate building value by 10%.

e) Machinery revalued at ₹ 27,000.

Prepare :

i) Revaluation Account,

ii) Partners' Capital Accounts and

iii) New Balance Sheet of firm on 01.04.2025.

Anitha and Sunitha are equal partners. Their Balance Sheet on 31.03.2025 is as under :




a) Assets realised as follows :

Debtors ₹ 30,000 ; Bills Receivable ₹ 12,000 ; Computers ₹ 25,000 ; Machinery ₹ 45,000 ; Land ₹ 85,000 ; and Unrecorded investment ₹ 3,000

b) Liabilities are paid in full.

c) Cost of dissolution amounted to ₹ 6,000.

Prepare :

i) Realisation Account,

ii) Partners' Capital Accounts and

iii) Bank Account.

Supreme Company Limited issued 10,000 equity shares of ₹ 100 each at a premium of ₹ 10 per share. The amount payable is as follows :

On application ₹ 20

On allotment ₹ 50 (including premium)

On first and final call ₹ 40.

All the shares were subscribed and money duly received except the first and final call on 500 shares.

The directors forfeited these shares and re-issued them as fully paid-up at ₹ 80 per share.

Pass the necessary journal entries regarding issue, forfeiture and re-issue of shares.

Atridatta Company Limited issued 10,000, 10% debentures of ₹ 100 each on 01.04.2024 at a discount of 10% and redeemable at a premium of 10%.

Pass journal entries relating to the issue of debentures and debenture interest for the period ending 31.03.2025 assuming that interest is paid half yearly on \(30^{th}\) September and \(31^{st}\) March, tax deducted at source is 10%.

From the following Balance sheets of Sunstar Company Limited on 31.03.2024 and 31.03.2025, prepare Comparative Balance sheet :

From the following particulars, calculate :

a) Current Ratio,

b) Debt to Capital Employed Ratio,

c) Trade Receivables Turnover Ratio,

d) Trade Payables Turnover Ratio,

e) Operating Ratio and

f) Net Profit Ratio.