GOVERNMENT OF KARNATAKA

KARNATAKA SCHOOL EXAMINATION AND ASSESSMENT BOARD

6TH CROSS, MALLESHWARAM, BENGALURU – 560 003
2025 -26 II PUC MODEL QUESTION PAPER – 3
SUBJECT: ACCOUNTANCY (30) MAXIMUM MARKS : 80
TIME: 03 HOURS NUMBER OF QUESTIONS: 32
Instructions :
1] The question paper contains four parts A, B, C and D. Part – A contains of four sections I, II, III and IV.
2] Provide working notes wherever necessary.
3] 15 minutes extra has been allotted for candidates to read the questions.
4] Figures in the right hand margin indicate full marks.
5] For PART - A questions, only the first written answers will be considered for evaluation.

PART – A
I. Choose the correct answer from the choices given. (5 x 1 = 5)
1] The Balance of reserve and other accumulated profits at the time of admission of a new partner are
transferred to :
a] All partners in new ratio b] Old partners’ in new ratio
c] Old partners’ in old ratio d] Old partner in sacrifice ratio
2] The profit sharing ratio among Kavana, Kavya and Keerthi were 2 : 2 : 1. The new profit sharing
ratio after Kavya’s retirement is 3:2. The gain ratio is
a] 3 : 2 b] 1 : 1 c] 2 : 1 d] 2 : 3
3] The following journal entry appears in the books of a company
Debenture Application and Allotment A/c Dr. 95,000
Loss on issue of debentures Account Dr. 10,000
To 10% debentures A/c 1,00,000
To Premium on redemption of debentures A/c 5,000
In this case the debentures are issued at a discount of
a] 15% b] 10% c] 5% d] 3%
4] Percentage of each liability to the total liabilities is shown in
a] Common size balance sheet b] Common size Income statement
c] Comparative Balance Sheet d] Comparative Income Statement
5] S.R.G. Company Ltd., extends credit terms of 30 days, to its customers. Its credit collection would
be poor if its average collection period was ________.
a] 36 days b] 30 days c] 25 days d] 15 days

2025-26 ACCOUNTANCY MQP - 3 Page 8 of 13

II. Fill in the blanks by choosing the appropriate answers from those given in the bracket. (5 x 1 = 5)
[ capital profit, twelve, complimentary, cash inflow, future profit, cash outflow]
6] New profit sharing ratio is required for sharing _____________.
7] Capital reserve is created out of ______________.
8] Loans which are repayable within ________ months are called as short term borrowings.
9] Analysis and interpretation are ___________ to each other.
10] Collection of Cash from trade receivable is ____________.

III. Match the following. (5 x 1 = 5)

11] A B
a] Fluctuating Capital system (i) Death of a partner
b] Executor’s Account (ii) Debentures
c] Assets taken over by partner (iii) Financial expenses
d] Long term borrowings (iv) Operating expenses
e] Interest paid (v) Capital A/c. balance changes
(vi) Debited to partner’s capital A/c

IV. Answer the following questions in one word or one sentence each. (5 x 1 = 5)
12] State any one content of partnership deed.
13] A firm is compulsorily dissolved when a partner decides to retire (State True / False).
14] What is issue of shares at premium?
15] Expand AIFIs.
16] Give an example for investing activity.

PART – B
V. Answer any three questions, each question carries two marks. (3 x 2 = 6)
17] What is Partnership deed?
18] Give journal entry to close retiring partner’s capital A/c when payment is made immediately.
19] List out any two categories of share capital.
20] Under which heads do you show the following items in the balance sheet of a company?
a] Building
b] Unclaimed dividend
21] Write any two objectives for preparing cash flow statement.

2025-26 ACCOUNTANCY MQP - 3 Page 9 of 13

 PART – C
VI. Answer any three questions, each question carries six marks. (3 x 6 = 18)

22] Sanju and Manju were partners in a firm sharing profits and losses in the ratio of 3:2. They admit

Anju for 1/6th Share in profit and guaranteed that her share of profit will not be less than ₹50,000.

The total profits of the firm was ₹1,80,000. Calculate the share of profits for each partner when

guarantee is given by Sanju and Manju equally. Prepare profit and loss appropriation account.

23] Bharat and Bhavana are partners sharing profits and losses in the ratio of 3:2. They admit Bhagya

into partnership and the new ratio was agreed to be [Link]. Calculate the sacrifice ratio of Bharat

and Bhavana.

24] Yuvaraja, Lingaraja and Giriraja are partners sharing profits and losses in the ratio of 2 : 2 : 1.

Their capitals as on 01.04.2024 were ₹1,00,000 each. Giriraja died on 30.09.2024 and the

partnership deed provides the following:

a] Interest on Giriraja’s capital at 10% p.a.

b] Salary to Giriraja ₹3,000 p.m.

c] Giriraja’s share of accrued profit upto the date of death based on previous year profit. Firm’s

profit for the year 2023-24 was ₹50,000.

d] Giriraja’s share of goodwill ₹15,000 (As per A.S.–26)

Prepare Giriraja’s Executors Account.

25] From the following information, prepare Balance Sheet of Mechatronics Company Ltd., as at
31.03.2025 as per schedule III of Companies Act, 2013

Particulars ₹

Share Capital 4,00,000

Reserves and Surplus 2,00,000
Creditors 1,00,000
Long term borrowings 3,50,000
Bills Payable 50,000
Fixed Assets 5,00,000
Cash in hand 2,00,000
Cash at Bank 1,00,000
Other non-current assets 3,00,000

2025-26 ACCOUNTANCY MQP - 3 Page 10 of 13

 26] Balaji Company Limited has given the following information:
Machinery as on 01.04.2024 ₹1,50,000
Machinery as on 31.03.2025 ₹2,00,000
Accumulated depreciation as on 01.04.2024 ₹75,000
Accumulated depreciation as on 31.03.2025 ₹50,000
During the year, a machinery costing ₹80,000 with accumulated depreciation of ₹30,000 was
sold for ₹40,000. Calculate cash flow from investing activities on the basis of above information.

PART – D
VII. Answer any three questions, each question carries twelve marks. (3 x 12 = 36)
27] Varalakshmi, Vanajakshi and Bheemambika are partners sharing profits in the ratio of [Link].
Bheemambika retired on 31.03.2025 from the firm. On that date the Balance sheet of the firm was
as follows:
Balance Sheet as on 31.03.2025

Liabilities ₹ Assets ₹
Creditors 15,000 Bank 8,500
Bills Payable 12,000 Debtors - 6,000
Provision for legal fee 6,000 Less : PDD - 500 5,500
General reserve 10,000 Stock 9,000
Capitals : Furniture 40,000
Varalakshmi 50,000 Buildings 80,000
Vanajakshi 30,000
Bheemambika 20,000 1,00,000
1,43,000 1,43,000

Additional information :
a] Buildings have been appreciated by 20% and provision for doubtful debts increased to 10%
on debtors.
b] Furniture is valued at ₹45,000.
c] Goodwill of the firm is valued at ₹40,000 (As per A.S.–26).
d] The value of stock is reduced by 10%.
Prepare :
i] Revaluation Account
ii] Partners’ Capital Accounts and
iii] New Balance Sheet of the firm,.

2025-26 ACCOUNTANCY MQP - 3 Page 11 of 13

 28] Maya and Manasa are partners sharing profits and losses in the ratio of 2:1. Their balance sheet as
on 31.03.2025 was as follows.
Balance Sheet as on 31.03.2025

Liabilities ₹ Assets ₹
Creditors 20,000 Cash at Bank 6,000
Bills Payable 15,000 Bills Receivable 10,000
Maya’s Loan 30,000 Stock 30,000
General reserve 6,000 Debtors 45,000
Capitals: Less : P.D.D 5,000 40,000
Maya 50,000 Investments 15,000
Manasa 25,000 75,000 Furniture 20,000
Machinery 25,000

1,46,000 1,46,000
On the above date, they decided to dissolve the firm.
a] The assets were realized as follows :
Bills receivable ₹8,500
Sundry Debtors ₹42,000
Stock ₹25,000
Furniture ₹22,000
Machinery ₹28,000 and Unrecorded type writer ₹3,500.
b] Investment was taken over by Manasa at an agreed value of ₹14,000.
c] Creditors were settled @ 10% less than the book value.
d] Bills payable were discharged by Maya.
e] Realisation expenses amounted to ₹2,000.
Prepare :
i] Realisation Account
ii] Partners’ Capital Accounts and
iii] Bank Account.

29] City Central Company Ltd., issued 10,000 equity shares of ₹100 each at a premium of ₹20 per
share. The amount was payable as follows:
₹30 on application
₹50 on allotment (including premium)
₹40 on first and final call
All the shares were subscribed and money duly received except the first and final call money on
1000 shares. The directors forfeited these shares. Out of 1000 forfeited shares only 500 shares
were reissued as fully paid up for ₹80 per share.
Pass the necessary journal entries in the books of the company.

2025-26 ACCOUNTANCY MQP - 3 Page 12 of 13

 30] Atridatta Company Ltd., issued 10,000. 10% debentures of ₹100 each on 01.04.2024 at a discount
of 10%, redeemable at 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 was paid half yearly
on 30th September and 31st March, tax deducted at source is 10%.

31] From the following information prepare Comparative Statement of Profit and Loss for the year
ending 31.03.2024 and 31.03.2025 of Teju Company Ltd.

Particulars 31.03.2024 31.03.2025

₹ ₹
Revenue from Operations 10,00,000 11,00,000
Other Income 50,000 80,000
Employee benefits expense 1,50,000 1,65,000
Purchase of goods 4,00,000 5,50,000
Changes in inventories 2,00,000 1,00,000
Finance costs 50,000 30,000
Depreciation 60,000 50,000
Income Tax 57,000 85,500

32] From the following information, you are required to calculate:

a] Quick ratio
b] Debt Equity ratio
c] Total assets to debt ratio
d] Inventory turnover ratio
e] Trade receivable turnover ratio
f] Net profit ratio

Particulars ₹
Equity share capital 2,00,000
General reserve 1,00,000
Long term borrowings 1,00,000
Trade payables 1,25,000
Fixed Assets 1,50,000
Inventories 80,000
Trade receivables 2,20,000
Cash and Cash equivalents 75,000
Total Assets 5,25,000
Revenue from operations 4,00,000
Gross profit 80,000
Profit before tax 50,000
Income tax 15,000

*****

2025-26 ACCOUNTANCY MQP - 3 Page 13 of 13