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CBSEClass12ACCOUNTANCY
SamplePaper(ByCBSE)
GeneralInstructions:
Thisquestionpapercontainstwoparts-AandB.
PartAiscompulsoryforall.
PartBhastwooptions-‘AnalysisofFinancialStatements’and‘Computerised
Accounting’.
AttemptanyoneoptionofPartB.
Allpartsofaquestionshouldbeattemptedatoneplace.
PartA
(AccountingforPartnershipFirmsandCompanies)
1.SixfriendsstartedapartnershipbusinessbyinvestingRs.2,00,000each.Theydecidedto
shareprofitequally.Namethetermsbywhichtheywillbecalledindividuallyand
collectively.(1)
2.A,BandCwerepartnersinafirmsharingprofitsintheratioof3:2:1.Bwasguaranteed
aprofitofRs.2,00,000.DuringtheyearthefirmearnedaprofitofRs.84,000.Calculatethe
netamountofProfit/LosstransferredtothecapitalaccountsofAandC.(1)
3.H,PandSwerepartnersinafirmsharingprofitsintheratioof4:3:3.OnAugust1,2017,
Pdied.His20%sharewasacquiredbyHandremainingbyS.Calculatethenewprofit
sharingratio.(1)
4.Howisdissolutionofpartnershipdifferentfromdissolutionofpartnershipfirm?(1)
5.Whyareirredeemabledebenturesalsoknownasperpetualdebentures?(1)
6.Distinguishbetweensharesanddebenturesonthebasisofconvertibility.(1)
7.KKLimitedobtainedaloanofRs.10,0,000fromStateBankofIndia@9%interst.The
companyissuedRs.15,0009%debenturesinfavourofStateBankofIndiaascollateral
security.PassnecessaryJournalentriesfortheabovetransactions:(3)
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(i)Whencompanydecidednottorecordtheissueof9%Debenturesascollateralsecurity.
(ii)Whencompanydecidedtorecordtheissueof9%Debenturesascollateralsecurity.
8.P,QandRwerepartnerssharingprofitsintheratioof2:2:1.Thefirmclosesitsbookson
March31everyyear.OnJune30,2017,Rdied.ThefollowinginformationisprovidedonR’s
death:(3)
(i)BalanceinhiscapitalaccountinthebeginningoftheyearwasRs.6,50,000.
(ii)HewithdrewRs.60,000onMay15,2017forhispersonaluse.
Onthedateofdeathofapartnerthepartnershipdeedprovidedforthefollowing:
(a)Interestoncapital@10%perannum.
(b)Interestondrawings@12%perannum.
(c)Hisshareintheprofitofthefirmtillthedateofdeath,tobecalculatedonthebasisofthe
rateofNetProfitonSalesofthepreviousyear,whichwas25%.TheSalesofthefirmtillJune
30,2017wereRs.6,00,000.
PrepareR’sCapitalAccountonhisdeathtobepresentedtohisexecutors.
9.MMLimitedisregisteredwithanAuthorisedcapitalofRs.200Croresdividedintoequity
sharesofRs.100each.TheSubscribedandCalledupcapitalofthecompanyisRs.
10,00,00,000.Thecompanydecidedtohelptheunemployedyouthofthenaxalaffectedareas
ofAndhraPradesh,ChhattisgarhandOdishabyopening100‘SkillDevelopmentCentres’.The
companyalsodecidedtoprovidefreemedicalservicestothevillagersofthesestatesby
startingmobiledispensaries.Tomeetthecapitalexpenditureoftheseactivitiesthecompany
issued1,00,000equityshares.Theseshareswerefullysubscribedandpaid.
PresentthesharecapitalofthecompanyinitsBalanceSheet.Alsoidentifyanytwovalues
thatthecompanywantstopropagate.(3)
10.VKLimitedpurchasedmachineryfromModernEquipmentManufacturersLimited.The
companypaidthevendorsbyissueofsomeequitysharesanddebenturesandthebalance
throughanacceptanceintheirfavourpayableafterthreemonths.Theaccountantofthe
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companywhileJournalisingtheabovementionedtransactionsleftsomeitemsblank.You
arerequiredtofillintheblanks.(3)
VKLimited
Journal
Date Particular LFDR.Amount
(Rs.)
DR.Amount
(Rs.)
MachineryAccountDr.
To………………………………………………………
(PurchasedmachineryforRs.7,00,000from
ModernEquipmentManufacturersLimited)
ModernEquipmentManufacturersLtd.A/CDr.
LossonIssueof9%DebenturesAccountDr.
To……………………………………………………..
To……………………………………………………..
ToSecuritiesPremiumAccount
ToPremiumonRedemptionofDebenturesA/C
(IssuedRs.1,00,0009%debenturesatadiscountof
10%redeemableatapremiumof10%and50,000
equitysharesofRs.10eachissuedatapremiumof
15%)
……………………………………………….Dr.
To………………………………………………
(…………………………………………………………………………)
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
11.E,FandGwerepartnersinafirmsharingprofitsintheratioof2:2:1.OnSeptember30,
2017,theirfirmwasdissolved.Onthedateofdissolution,theBalanceSheetofthefirmwas
asfollows:(4)
BalanceSheet
AsatMarch31,2017
Liabilities Rs. Assets Rs.
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Capitals:
E1,30,000
F1,00,000
Creditors
OutstandingExpenses
2,30,000
45,000
17,000
G’sCapital
Profit&LossAccount
Land&Building
Furniture
Machinery
Debtors
Bank
500
10,000
1,00,000
50,000
90,000
36,500
5,000
2,92,000 2,92,000
Fwasappointedtoundertaketheprocessofdissolutionforwhichhewasalloweda
remunerationofRs.5,000.Fagreedtobearthedissolutionexpenses.Assetsrealizedas
follows:
(i)TheLand&Buildingwassoldthroughapropertydealeratapriceof110%ofthebook
value.ACommissionof1%onthesellingpriceofLand&Buildingwaspaidtotheproperty
dealer.
(ii)Furniturewassoldat25%ofbookvalue.
(iii)MachinerywassoldasscrapforRs.9,000.
Creditorswerepayableonanaverageof3monthsfromthedateofdissolution.On
dischargingtheCreditorsonthedateofdissolution,theyallowedadiscountof5%.Pass
necessaryJournalentriesfordissolutioninthebooksofthefirm.
12.A,B&Cwerepartnersinafirmsharingprofits&lossesintheratioof3:2:1.OnMarch
31,2017,theirBalanceSheetwasasfollows:(4)
BalanceSheet
asatMarch31,2017
Liabilities Rs. Assets Rs.
Capitals:
A50,000
B40,000
1,20,000
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C30,000
ReserveFund
Creditors
EmployeesProvident
Fund
18,000
27,000
50,000
FixedAssets
CurrentAssets
1,80,000
35,000
2,15,000 2,15,000
FromApril1,2017,theydecidedtosharefutureprofitsequally.Forthispurposethe
followingswereagreedupon:
(i)GoodwillofthefirmwasvaluedatRs.3,00,000.
(ii)FixedAssetswillbedepreciatedby10%.
(iii)Afterdoingtheaboveadjustmentsthecapitalsofthepartnerswillbeinproportionto
theirnewprofitsharingratio.ForthispurposeCurrentAccountswillbeopened.
PassnecessaryJournalentriesfortheabovetransactionsinthebooksofthefirm.
13.L,MandNarepartnersinafirmsharingprofits&lossesintheratioof2:3:5.OnApril
1,2016theirfixedcapitalswereRs.2,00,000,Rs.3,00,000andRs.4,00,000respectively.Their
partnershipdeedprovidedforthefollowing:(6)
(i)Interestoncapital@9%perannum.
(ii)InterestonDrawings@12%perannum.
(iii)Interestonpartners’loan@12%perannum.
OnJuly1,2016,LbroughtRs.1,00,000asadditionalcapitalandNwithdrewRs.1,00,000from
hiscapital.DuringtheyearL,MandNwithdrewRs.12,000,Rs.18,000andRs.24,000
respectivelyfortheirpersonaluse.OnJanuary1,2017thefirmobtainedaLoanofRs.
1,50,000fromM.TheNetprofitofthefirmfortheyearendedMarch31,2017aftercharging
interestonM’sLoanwasRs.85,000.
PrepareProfit&LossAppropriationAccountandPartnersCapitalAccount.
14.PassnecessaryJournalentriesinthebooksofPPLimitedfortheissueofdebenturesin
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thefollowingcases:(6)
(a)Issued5009%debenturesofRs.100eachatadiscountof6%redeemableatapremiumof
9%.
(b)IssuedRs.10,00,0009%debenturesofRs.100eachatapremiumofRs.20perdebenture
redeemableatapremiumofRs.10perdebenture.
(c)Issued3,0008%debenturesofRs.100eachatadiscountofRs.15,000redeemableata
premiumof5%.
15.OnApril1,2013,XYLimitedissuedRs.9,00,00010%debenturesatadiscountof9%.The
debenturesweretoberedeemedinthreeequalannualinstalmentsstartingfromMarch31,
2015.(6)
Prepare‘DiscountonIssueofDebentureAccount’forthefirstthreeyearsstartingfromApril
1,2013.Alsoshowyourworkingsclearly.
16.ZXLimitedinvitedapplicationsforissuing5,00,000EquitysharesofRs.10eachpayable
atapremiumofRs.10eachpayablewithFinalcall.Amountpersharewaspayableas
follows:(8)
Rs.
OnApplication 2
OnAllotment 3
OnFirstCall 2
OnSecond&Final
CallBalance
Applicationsfor8,00,000shareswerereceived.Applicationsfor50,000shareswererejected
andtheapplicationmoneywasrefunded.Allotmentwasmadetotheremainingapplicants
asfollows:
Category No.ofsharesApplied No.ofSharesallotted
I 2,00,000 1,50,000
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II 5,50,000 3,35,000
Excessapplicationmoneyreceivedwithapplicationswasadjustedtowardssumsdueon
allotment.Balance,ifanywasadjustedtowardsfuturecalls.Govind,ashareholder
belongingtocategoryI,towhom1,500shareswereallottedpaidhisentiresharemoneywith
application.
ManoharbelongingtocategoryIIhadappliedfor11,000sharesfailedtopay‘Second&Final
Callmoney’.Manohar’sshareswereforfeitedafterthefinalcall.Theforfeitedshareswere
reissuedatRs.10pershareasRs.7paidup.
Assumingthatthecompanymaintains“CallsinAdvanceAccount”and“CallsinArrears
Account”,passnecessaryJournalentriesfortheabovetransactionsinthebooksofZX
Limited.
OR
(a)AXLimitedforfeited6,000sharesofRs.10eachfornon-paymentofFirstcallofRs.2per
share.TheFinalcallofRs.3persharewasyettobemade.Oftheforfeitedshares4,000
shareswerereissuedatRs.9pershareasfullypaidup.Assumingthatthecompany
maintains‘CallsinAdvanceAccount’and‘CallsinArrearsAccount’,prepare“ShareForfeited
Account”inthebooksofAXLimited.
(b)BGLimitedissued2,00,000equitysharesofRs.20eachatapremiumofRs.5pershare.
Theshareswereallottedintheproportionof5:4ofsharesappliedandallottedtoallthe
applicants.Deepak,whohadappliedfor900shares,failedtopayAllotmentmoneyofRs.7
pershare(includingpremium)andonhisfailuretopay‘First&FinalCall’ofRs.2pershare,
hisshareswereforfeited.400oftheforfeitedshareswerereissuedatRs.15pershareas
fullypaidup.Showingyourworkingclearly,passnecessaryJournalentriesfortheforfeiture
andreissueofDeeapk’ssharesinthebooksofBGLimited.Thecompanymaintains‘Callsin
Arrears’Account’.
(c)MLLimitedforfeited1,200sharesofRs.10eachallottedtoRaviforNon-payment‘Second
&FinalCall’ofRs.5pershare(includingpremiumofRs.2pershare).Theforfeitedshares
werereissuedforRs.10,800asfullypaidup.
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PassnecessaryJournalentriesforreissueofsharesinthebooksofMLLimited.
17.A,B&Cwerepartnersinafirmsharingprofits&lossesinproportiontotheirfixed
capitals.TheirBalanceSheetasatMarch31,2017wasasfollows:(8)
BalanceSheet
asatMarch31,2017
Liabilities Rs. Assets Rs.
Capitals:
A5,00,000
B3,00,000
C2,00,000
GeneralReserve
Creditors
OutstandingSalary
B’sLoan
10,00,000
75,000
23,000
7,000
15,000
Bank
Stock
Debtors15,000
Less:ProvisionD.D.
1,500
A’sLoan
Plant&Machinery
Land&Building
Profit&LossAccount
21,000
9,000
13,500
35,500
2,00,000
6,00,000
2,41,000
11,20,000 11,20,000
OnthedateofaboveBalanceSheet,Cretiredfromthefirmonthefollowingterms:
(i)GoodwillofthefirmwillbevaluedattwoyearspurchaseoftheAverageProfitsoflast
threeyears.TheProfitsfortheyearendedMarch31,2015&March31,2016wereRs.
4,00,000&Rs.3,00,000respectively.
(ii)ProvisionforBadDebtswillbemaintainedat5%oftheDebtors.
(iii)Land&BuildingwillbeappreciatedbyRs.90,000andPlant&MachineryWillbe
reducedtoRs.1,80,000.
(iv)AagreedtorepayhisLoan.
(v)TheloanrepaidbyAwastobeutilizedtopayC.ThebalanceoftheamountpayabletoC
wastransferredtohisLoanAccountbearinginterest@12%perannum.
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PrepareRevaluationAccount,Partners’CapitalAccountsandtheBalanceSheetofthe
reconstitutedfirm.
OR
P&Kwerepartnersinafirm.OnMarch31,2017theirBalanceSheetwasasfollows:
BalanceSheet
asatMarch31,2017
Liabilities Rs. Assets Rs.
Capitals:
P3,00,000
K2,00,000
GeneralReserve
Creditors
OutstandingExpenses
C’sLoan
Profit&LossAccount
(Profitfor2016-17)
5,00,000
1,00,000
50,000
8,000
1,20,000
55,000
Bank
Stock
Debtors22,000
Less:ProvisionD.D.
1,500
UnexpiredInsurance
SharesinKLimited
Plant&Machinery
Land&Building
18,000
19,000
20,500
5,000
65,000
1,45,500
5,60,000
8,33,000 8,33,000
OnApril1,2017,theydecidedtoadmitCasanewpartnerfor1/4thshareinprofitsonthe
followingterms:
(i)C’sLoanwillbeconvertedintohiscapital.
(ii)CwillbringhisshareofgoodwillpremiuminCash.Goodwillofthefirmwillbe
calculatedonthebasisofAverageProfitsofpreviousthreeyears.Profitsfortheyearended
March31,2015andMarch31,2016wereRs.65,000andRs.1,00,000respectively.
(iii)10%depreciationwillbechargedonPlant&MachineryandLand&Buildingwillbe
appreciatedby5%.
(iv)CapitalsofP&KwillbeadjustedonthebasisC’scapital.Actualcashwillbeboughtinor
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paidoffasthecasemaybe.
PassnecessaryJournalentriesonC’sadmission.
PartB
OptionI
(AnalysisofFinancialStatements)
18.Giveanytwoexamplesofcashinflowsfromoperatingactivitiesotherthancashreceipts
fromsaleofgoods&renderingofservices.(1)
19.PPLimitedisShareBrokerCompany.GGLimitedisengagedinmanufacturingof
packagedfood.PPLimitedpurchased5,000equitysharesofRs.100eachofSavitaLimited.G
GLimitedalsopurchased10,000equitysharesofRs.100eachofSavitaLimited.Forthe
purposeofpreparingtheirrespectiveCashFlowStatements,underwhichcategoryof
activitiesthepurchaseofshareswillbeclassifiedbyPPLimitedandGGLimited?(1)
20.MKLimitedisacomputerhardwaremanufacturingcompany.Whilepreparingits
accountingrecordsittakesintoconsiderationthevariousaccountingprinciplesand
maintainstransparency.Attheendoftheaccountingyear,thecompanyfollowsthe
‘CompaniesActandRules,2013’forthepreparationofitsFinancialStatements.Italso
preparesitsIncomeStatementandBalanceSheetaspertheformatprovidedinScheduleIII
totheAct.ItsFinancialStatementsdepictitsfair&truefinancialposition.Forthefinancial
yearendingMarch31,2017,theaccountantofthecompanyisnotcertainaboutthe
presentationofthefollowingitemsunderrelevantMajorHeads&SubHeads,ifany,inits
BalanceSheet:(4)
(i)SecuritiesPremiumReserve
(ii)CallsinAdvance
(iii)Stores&Spares
(a)AdvicetheaccountantofthecompanyunderwhichMajorHeadsandSubHeads,ifany,
heshouldpresenttheaboveitemsintheBalanceSheetofthecompany,
(b)Listanytwovaluesthatthecompanyisobservinginthemaintenanceofitsaccounting
recordsandpreparationofitsfinancialstatements.
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21.FortheyearendedMarch31,2017,NetProfitaftertaxofKXLimitedwasRs.6,00,000.
ThecompanyhasRs.40,00,00012%DebenturesofRs.100each.CalculateInterestCoverage
Ratioassuming40%taxrate.Stateitssignificancealso.WilltheInterestCoverageRatio
changeifduringtheyear2017-18,thecompanydecidestoredeemdebenturesofRs.5,00,000
andexpectstomaintainthesamerateofNetProfitandassumethattheTaxratewillnot
change.(4)
22.FollowingistheStatementofProfit&LossofXLLimitedfortheyearendedMarch31,
2017:(4)
StatementofProfit&Loss
fortheyearendedMarch31,2017
ParticularsNotesto
Accounts
2015-16
Amount(Rs.)
2016-17
Amount(Rs.)
RevenuefromOperations
Expenses:
(a)EmployeeBenefitExpenses:10%of
Revenuefrom
Operations
(b)OtherExpenses
50,00,000
10,00,000
80,00,000
12,00,000
TaxRate40%
PrepareComparativeStatementofProfit&LossofXLLimited.
23.FromthefollowingBalanceSheetofAjantaLimitedasonMarch31,2017,prepareaCash
FlowStatement:(6)
ParticularsNote
Number
31-3-2017
(Rs.)
31-3-2016
(Rs.)
I.EquityandLiabilities
(1)Shareholders’
Funds
(a)EquityShare
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Capital
(b)Reservesand
Surplus
(2)Non-Current
Liabilities
Long-Term
Borrowings-9%
Debentures
(3)CurrentLiabilities
(a)TradePayables
(b)OtherCurrent
Liabilities
10,00,000
2,40,000
3,20,000
1,80,000
1,80,000
10,00,000
1,20,000
2,40,000
2,40,000
1,60,000
Total 19,20,000 17,60,000
II.Assets
(1)Non-CurrentAssets
(a)FixedAssets
TangibleAssets
(b)Non-Current
Investments
(2)CurrentAssets
(a)Inventories
(b)TradeReceivables
(c)CashandCash
Equivalents
13,40,000
2,40,000
1,20,000
1,60,000
60,000
12,00,000
1,60,000
1,60,000
1,60,000
80,000
Total 19,20,000 17,60,000
NoteofAccounts
Note
NumberParticulars
31-3-2017
(Rs.)
31-3-2016
(Rs.)
1.
ReservesandSurplus
GeneralReserve 1,20,000 1,20,000
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BalanceinStatement
ofProfit&Loss
1,20,000 ……………
2,40,000 1,20,000
2.
TradePayables
Creditors
BillsPayable
1,40,000
40,000
1,20,000
1,20,000
1,80,000 2,40,000
3.
OtherCurrent
Liabilities
OutstandingRent
1,80,000 1,60,000
1,80,000 1,60,000
4.
TangibleAssets
Plant&Machinery
Accumulated
Depreciation
14,90,000
(1,50,000)
13,00,000
(1,00,000)
13,40,000 12,00,000
5.
Non-Current
Investments
SharesinXYZLimited
2,40,000 1,60,000
2,40,000 1,60,000
(a)Duringtheyear2016-17,amachinerycostingRs.50,000andaccumulateddepreciation
thereonRs.15,000wassoldforRs.32,000.
(b)9%DebenturesRs.80,000wereissuedonApril1,2016.6
PART–B
Option-II
ComputerisedAccounting
18.Whilenavigatingintheworkbook,whichofthefollowingcommandsisusedtomoveto
thebeginningoftheCurrentrow:(1)
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a.[ctrl]+[home]
b.[pageup]
c.[Home]
d.[ctrl]+[Backspace]
19.JoinlineinthecontextofAccesstablemeans:(1)
a.Graphicalrepresentationoftablesbetweentables
b.Linesbondingthedatawithintable
c.Lineconnectingtwofieldsofatable
d.Lineconnectingtworecordsofatable
20.Enumeratethebasicrequirementsofcomputerizedaccountingsystemforabusiness
organization.(4)
21.Thegenerationofledgeraccountsisnotanecessaryconditionformakingtrialbalancein
acomputerizedaccountingsystem.Explain.(4)
22.Internalmanipulationofaccountingrecordsismucheasierincomputerizedaccounting
thaninmanualaccounting.How?(4)
23.Computerisationofaccountingdataononehandstoresvoluminousdatainasystematic
andorganizedmannerwhereasontheotherhandsuffersfromthreatsofvulnerabilityand
manipulations.Discussthesecuritymeasuresyouwouldliketoemployforsecuringthedata
fromsuchthreats.(6)
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CBSEClassXIIAccountancy
SamplePaper(byCBSE)
MarkingScheme
PartA
(AccountingforPartnershipFirmsandCompanies)
1.Individually:Partners
Collectively:Firm
2.NetAmountofLosstransferredto:
A’sCapitalAccount:Rs.87,000
C’sCapitalAccount:Rs.29,000
3.RatioofH,PandSis4:3:3
H’sGain=3/10X20/100=3/50
H’snewshare=H’soldshare+H’sGain
=4/10+3/50=23/50
S’sGain=3/10X80/100=12/50
S’snewshare=S’soldshare+S’sGain
=3/10+12/50=27/50
NewProfitsharingRatioofHandSis23:27
4.Solution:Incaseofdissolutionofpartnership,thefirmcontinuetodobusinessbutwitha
changedagreement.Incaseofdissolutionofpartnershipfirm,thefirmceasestoexist,the
assetsofthefirmarerealisedanditsliabilitiesaredischarged.
5.Solution:Irredeemabledebenturesarecalledperpetualdebenturesbecausethesearenot
repayableduringthelifespanofthecompany.
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6.Solution:Sharescannotbeconvertedintodebenturesoranyothersecuritywhereasthe
debenturescanbeconvertedintosharesifthetermssoprovide.
7.(i)
KKLimited
Journal
Date Particulars LF Dr.Amount(Rs.) Dr.Amount(Rs.)
BankAccountDr.
ToBankLoanAccount
(ObtainedloanfromStateBankof
India@9%.)
10,00,000 10,00,000
(ii)
KKLimited
Journal
Date Particulars LFDr.Amount
(Rs.)
Dr.Amount
(Rs.)
BankAccountDr.
ToBankLoanAccount
(ObtainedloanfromStateBankofIndia
@9%.)
10,00,000
10,00,000
DebentureSuspenseAccountDr.
To9%DebenturesAccount
(Issued9%Debenturesascollateral
securityin
favourofStateBankofIndia)
15,00,000
15,00,000
8.
R’sCapitalAccount
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Date
2017Particulars JF Amount
(Rs)
Date
2017Particulars JF Amount
(Rs)
Jun30
Jun30
Jun30
ToDrawingsA/C
ToIntereston
DrawingsA/C
ToR’sExecutor’s
A/c
60,000
900
6,35,350
Apr1
Jun
30
Jun
30
ByBalanceb/d
ByIntereston
capitalA/c
ByProfit&Loss
SuspenseA/C
6,50,000
16,250
30,000
6,96,250 6,96,250
Note:½markmaybedeductedifthedatesarenotcorrectlyrecorded.
9.
MMLimited
BalanceSheet
Asat……….
ParticularsNote
Number
CurrentYear
Rs.
PreviousYear
Rs.Crores
I.EquityandLiabilities
1.Shareholders’Funds
a)ShareCapital
1 11 10
NotestoAccounts
NoteNumber1
Particulars CurrentYearsRs.Crores
ShareCapital:
AuthorisedCapital
2,00,00,000EquitySharesofRs.100each
200
IssuedCapital
11,00,000EquitysharesofRs.100each11
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SubscribedCapital
SubscribedandFullypaid
11,00,000EquitysharesofRs.100each
11
10.
VKLimited
Journal
Date Particular LF DR.Amount Dr.Amount
MachineryAccountDr.
ToModernEquipmentManufacturersLimited
(PurchasedmachineryforRs.7,00,000from
ModernEquipmentManufacturersLimited)
70,000
70,000
ModernEquipmentManufacturersLtd.A/C
Dr.
LossonIssueof9%DebenturesAccountDr.
To9%DebenturesAccount
ToEquityShareCapitalAccount
ToSecuritiesPremiumAccount
ToPremiumonRedemptionofDebenturesA/C
(IssuedRs.1,00,0009%debenturesata
discountof10%redeemableatapremiumof
10%and50,000equitysharesofRs.10each
issuedatapremiumof15%)
6,65,000
20,000
1,00,000
5,00,000
75,000
10,000
ModernEquipmentManufacturersLtd.A/C
Dr.
ToBillsPayableAccount
(AcceptancegiventoModern
EquipmentManufacturersLimited)
35,000 35,000
11.
E,FandG
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Journal
Date Particulars LF Dr.Amount(Rs.) Dr.Amount(Rs.)
RealisationAccountDr.
ToLand&BuildingAccount
ToFurnitureAccount
ToMachineryAccount
ToDebtorsAccount
(IndividualAssetsaccountsclosedby
transferringtheirbalancesto
RealisationAccount)
2,76,500
1,00,000
50,000
90,000
36,500
CreditorsAccountDr.
OutstandingExpensesAccountDr.
ToRealisationAccount
(IndividualExternalLiabilities
Accountsclosedbytransferringtheir
balancestoRealisationAccount)
45,000
17,000
62,000
BankAccountDr.
ToRealisationAccount
(Land&Buildingrealized)
1,08,900
1,08,900
BankAccountDr.
ToRealisationAccount
(Furniturerealized)
12,500
12,500
BankAccountDr.
ToRealisationAccount
(MachinerySoldasscrap)
9,000
9,000
RealisationAccountDr.
ToBankAccount
(Creditorspaidatadiscountof5%)
42,750
42,750
RealisationAccountDr.
ToBankAccount 17,000
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(PaidoutstandingExpenses) 17,000
RealisationAccountDr.
ToF’sCapitalAccount
(RemunerationpaidtoFfor
undertakingdissolutionprocess)
5,000
5,000
E’sCapitalAccountDr.
F’sCapitalAccountDr.
G’sCapitalAccountDr.
ToRealisationAccount
(LossonRealisationtransferredto
partners’CapitalAccounts)
59,540
59,540
29,770
1,48,850
BankAccountDr.
ToG’sCapitalAccount
(FinalpaymentreceivedfromG)
30,270
30,270
E’sCapitalAccountDr.
F’sCapitalAccountDr.
ToBankAccount
(FinalpaymentmadetoEandF)
1,89,540
1,89,540
3,49,080
12.
A,BandC
Journal
Date Particular LF DR.Amount(Rs.) Dr.Amount(Rs.)
C’sCapitalAccountDr.
ToA’sCapitalAccount
(Treatmentofgoodwillduetochangein
profitsharingratio)
50,000
50,000
ReserveFundAccountDr.
ToA’sCapitalAccount
ToB’sCapitalAccount 18,000
9,000
MaterialdownloadedfrommyCBSEguide.com. 21/37
ToC’sCapitalAccount
(ReserveFundtransferredtopartners’
capitalaccountsintheiroldprofit
sharingratio)
6,000
3,000
RevaluationAccountDr.
ToFixedAssetsAccount
(Revaluationoffixedassetsonchangein
profitsharingratio)
18,000
18,000
A’sCapitalAccountDr.
B’sCapitalAccountDr.
C’sCapitalAccountDr.
ToRevaluationAccount
(Lossonrevaluationtransferredto
partners’capitalaccounts)
9,000
6,000
3,000
18,000
A’sCapitalAccountDr.
ToA’sCurrentAccount
(Adjustmentofcapitalbyopeningof
currentaccount)
60,000
60,000
C’sCurrentAccountDr.
ToC’sCapitalAccount
(Adjustmentofcapitalbyopeningof
currentaccount)
60,000
60,000
13.
Profit&LossappropriationAccount
FortheyearendedonMarch31,2017
Particulars Amount(Rs.) Particulars Amount(Rs.)
ToInterestonCapital:
L’sCurrentAccount24,750
M’sCurrentAccount27,000
N’sCurrentAccount29,250
ByProfit&LossAccount-
NetProfitb/d
ByInterestonPartners’
Drawings
85,000
MaterialdownloadedfrommyCBSEguide.com. 22/37
ToProfittransferredto
Partners’Current
Accounts
L1,448
M2,172
N3,620
81,000
7,240
88,240
L’sCurrentAccount720
M’sCurrentAccount1,080
N’sCurrentAccount1,440
3,240
88,240
Partner’sCapitalAccount
Date Particulars L M N Date Particulars L M N
2016
Jul1
2017
Mar
31
ToBank
Account
ToBalance
c/d
3,00,000
3,00,000
1,00,000
3,00,000
2016
Apr
1
Jul1
ByBalance
b/d
ByBank
Account
2,00,000
1,00,000
3,00,000
4,00,000
3,00,000 3,00,000 4,00,000 3,00,000 3,00,000 4,00,000
14.(6)
PPLimited
Journal
Date Particulars LFDr.Amount
Rs.
Dr.Amount
(Rs.)
(a)
(i)
BankAccountDr.
To9%DebentureApplication&Allotment
A/C
(Applicationmoneyreceivedfor5009%
Debentures)
47,000
47,000
9%DebentureApplication&AllotmentA/C
Dr.
LossonissueofDebenturesAccountDr. 47,000
MaterialdownloadedfrommyCBSEguide.com. 23/37
(ii)
To9%DebenturesAccount
ToPremiumonredemptionAccount
(Applicationmoneytransferredto9%
Debenturesaccountandrecordedlosson
issueofdebenturesandpremiumon
redemption)
7,500
50,000
4,500
(b)(i)
BankAccountDr.
To9%DebentureApplication&Allotment
A/C
(ApplicationmoneyreceivedforRs.
10,00,0009%Debentures)
12,000
12,000
(ii)
9%DebentureApplication&AllotmentA/C
Dr.
LossonissueofDebenturesAccountDr.
To9%DebenturesAccount
ToSecuritiesPremiumAccount
ToPremiumonredemptionAccount
(Applicationmoneytransferredto9%
DebenturesaccountandSecurities
PremiumReserveAccountandrecorded
lossonissueofdebenturesandpremium
onredemption)
12,00,000
1,00,000
10,00,000
2,00,000
1,00,000
(c)(i)
BankAccountDr.
To8%DebentureApplication&Allotment
A/C
(Applicationmoneyreceivedfor3,0008%
Debentures)
2,85,000
2,85,000
(ii)
8%DebentureApplication&AllotmentA/C
Dr.
LossonissueofDebenturesAccountDr.
To8%DebenturesAccount
ToPremiumonredemptionAccount
2,85,000
30,000
3,00,000
15,000
MaterialdownloadedfrommyCBSEguide.com. 24/37
(Applicationmoneytransferredto8%
Debenturesaccountandrecordedlosson
issueofdebenturesandpremiumon
redemption)
15.
DiscountonIssueof10%DebenturesAccount
Date Particulars JFAmount
(Rs)Date Particulars JF
Amount
(Rs)
2013
Apr1
To10%
Debentures
A/C
81,0002014
Mar31
By
Statement
ofProfit&
Loss
ByBalance
c/d
27,000
54,000
81,000 81,000
2014
Apr1
2015
Apr1
ToBalanceb/d
ToBalanceb/d54,000 2015Mar31
ByStatement
ofProfit&
Loss
ByBalancec/d
27,000
27,000
54,000 54,000
2015Apr1 Tobalanceb/d 27,0002016
Mar31
ByStatement
ofProfit&
Loss
ByBalancec/d
18,000
9,000
27,000 27,000
16.
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Journal
Date Particulars LFDr.Amount
(Rs.)
Dr.Amount
(Rs.)
BankAccountDr.
ToEquityShareApplication
Account
(Applicationmoneyreceived)
16,36,000
16,36,000
EquityShareApplicationAccount
Dr.
ToEquityShareCapitalAccount
ToEquityShareAllotment
Account
ToBankAccount
ToCallsinAdvanceAccount
(Applicationmoneytransferredto
EquityShareCapitalaccount,
EquityShareAllotmentaccount,
CallsinAdvanceaccountand
remainingamountrefunded)
16,36,000
10,00,000
5,03,500
1,10,000
22,500
EquityShareAllotmentAccount
Dr.
ToEquityShareCapitalAccount
(Allotmentmoneydueon5,00,000
15,00,000
15,00,000
BankAccountDr.
ToEquityShareAllotment
Account
(NetamountofAllotmentmoney
received)
9,96,500
9,96,500
EquityShareFirstCallAccount
MaterialdownloadedfrommyCBSEguide.com. 26/37
Dr.
ToEquityShareCapitalAccount
(FirstCallmoneydueon5,00,000
10,00,000
10,00,000
BankAccountDr.
CallsinAdvanceAccountDr.
ToEquityShareFirstCallAccount
(Firstcallmoneyreceived)
9,97,000
3,000
10,00,000
EquityShareFinalCallAccount
Dr.
ToEquityShareCapitalAccount
ToSecuritiesPremiumReserve
Account
(FinalCallmoneydueon5,00,000
includingpremiumofRs.10each)
65,00,000
15,00,000
50,00,000
BankAccountDr.
CallsinAdvanceAccountDr.
CallinArrearsAccountDr.
ToEquityShareFinalCall
Account
(Finalcallmoneyreceived)
63,89,500
19,500
91,000
65,00,000
ShareCapitalAccountDr.
SecuritiesPremiumReserve
AccountDr.
ToShareForfeitureAccount
ToCallsinArrearsAccount
(Manohar’sSharesforfeited)
70,000
70,000
49,000
91,000
BankAccountDr.
ToShareCapitalAccount
ToSecuritiesPremiumReserve
70,000
49,000
MaterialdownloadedfrommyCBSEguide.com. 27/37
Account
(ForfeitedSharesofManoharre-
issued)
21,000
ShareForfeitureAccountDr.
ToCapitalReserveAccount
(Shareforfeitedaccountin
respectof400sharestransferred
tocapitalreserveaccount)
49,000
49,000
OR
(a)
ShareforfeitureAccount
Date Particulars JFAmount
(Rs)Date Particulars JF
Amount
(Rs)
ToShare
Capital
Account
ToCapital
ReserveA/C
ToBalance
c/d
4,000
16,000
10,000
ByShare
CapitalA/C 30,000
30,000 30,000
(b)
Journal
Date Particulars LF Dr.Amount(Rs.) Dr.Amount(Rs.)
ShareCapitalAccountDr.
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SecuritiesPremiumReserveAccount
Dr.
ToShareForfeitureAccount
ToCallsinArrearsAccount
(Sharesforfeited)
14,400
3,600
14,400
3,600
BankAccountDr.
ShareForfeitureAccountDr.
ToShareCapitalAccount
6,000
2,000
8,000
ShareForfeitureAccountDr.
ToCapitalReserveAccount
(Gainonre-issueofforfeitedshares
transferredtocapitalreserveaccount)
6,000
6,000
WorkingNotes:
(i)SincetheSharesareallottedintheproportionof5:4,thereforefor900appliedshares,
sharesallottedare4/5x900=720Shares.
(ii)ApplicationMoneyReceivedon900Shares=900x16=14,400
AmountadjustedonApplication=720x16=11,520
AmounttobeadjustedonAllotment=2,880
(iii)AllotmentMoneydueon720Shares=720x7=5,040
Less:Alreadyreceived=2,880
AllotmentMoneynotreceived=2,160
(iv)CallsinArrears:
AllotmentMoney=2,160+First&FinalCallMoney=1,440=3,600
(1markforeachcorrectJournalEntriesand1markforWorkingNotes)
(c)
Journal
MaterialdownloadedfrommyCBSEguide.com. 29/37
Date Particulars LF DR.Amount(Rs.) Dr.Amount(Rs.)
BankAccountDr.
ShareForfeitedAccountDr.
ToShareCapitalAccount
(1,200Sharesre-issuedforRs.10,800as
fullypaidup)
10,800
1,200
12,000
ShareForfeitureAccountDr.
ToCapitalReserveAccount
(Gainonre-issueofforfeitedshares
transferredtocapitalreserveaccount)
7,200
7,200
17.
RevaluationAccount
ParticularsAmount
(Rs.)Particulars
Amount
(Rs.)
ToPlant&Machinery
ToProfittransferred
toPartners’Current
Accounts
A35,375
B21,225
C14,150
20,000
70,750
ByProvisionfor
DoubtfulDebts
ByLand&Building
750
90,000
90,750 90,750
Partner’sCurrentAccounts
Date Particulars A B C Date Particulars A B C
ToC’s
Current
Account
By
Revaluation
Account
ByA’s
Current 35,375 21,225 14,150
38,250
MaterialdownloadedfrommyCBSEguide.com. 30/37
2017
Mar
31
ToProfit&
LossA/C
ToC’s
Capital
Account
38,250
1,20,500
22,950
72,300
48,200
42,150
2017
Mar
31
Account
ByB’s
Current
Account
ByGeneral
Reserve
ByBalance
c/d
37,500
85,875
22,500
51,525
22,950
15,000
1,58,750 95,250 90,350 1,58,750 95,250 90,350
Partner’sCapitalAccounts
Date Particulars A B C Date Particulars A B C
2017
Mar
31
ToBank
Account
ToC’s
Loan
Account
ToBalance
c/d
5,00,000
3,00,000
35,500
2,06,650
2017
Mar
31
ByBalance
b/d
ByC’s
Current
Account
5,00,000 3,00,000
2,00,000
42,150
5,00,000 3,00,000 2,42,150 5,00,000 3,00,000 2,42,150
BalanceSheet
AsatMarch31,2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Capitals:
A5,00,000
B3,00,000
C’sLoan
Creditors
OutstandingSalary
8,00,000
2,06,650
23,000
7,000
15,000
Bank
Stock
Debtors15,000
Less:ProvisionforD.Debts750
Plant&Machinery
Land&Building
A’sCurrentAccount
21,000
9,000
14,250
1,08,000
6,90,000
85,875
51,525
MaterialdownloadedfrommyCBSEguide.com. 31/37
B’sLoan 10,51,650 B’sCurrentAccount 10,51,650
OR
Journal
Date Particular LF Dr.Amount(Rs.) Dr.Amount(Rs.)
C’sLoanAccountDr.
ToC’sCapitalAccount
(C’sLoanaccounttransferredtohis
capitalaccount)
1,30,000
1,30,000
BankAccountDr.
ToPremiumforGoodwillAccount
(NewpartnerCbringsinhisshareof
goodwill)
17,500
17,500
PremiumforGoodwillAccountDr.
ToP’sCapitalAccount
ToK’sCapitalAccount
(PremiumforGoodwilltransferredto
oldpartners’capitalaccountsintheir
sacrificingratio)
17,500
8,750
8,750
RevaluationAccountDr.
ToPlant&MachineryAccount
(RevaluationofPlant&Machineryon
admissionofnewpartner)
14,550
14,550
Land&BuildingAccountDr.
ToRevaluationAccount
(RevaluationofLand&Buildingon
admissionofnewpartner)
28,000
28,000
RevaluationAccountDr.
ToP’sCapitalAccount
ToK’sCapitalAccount
13,450
6,725
6,725
MaterialdownloadedfrommyCBSEguide.com. 32/37
(Profitonrevaluationtransferredto
partners’capitalaccounts)
GeneralReserveAccountDr.
ToP’sCapitalAccount
ToK’sCapitalAccount
(GeneralReservetransferredto
partners’capitalaccount)
1,00,000
50,000
50,000
Profit&LossAccountDr.
ToP’sCapitalAccount
ToK’sCapitalAccount
(Profit&Lossaccounttransferredto
partners’capitalaccount)
45,000
22,500
22,500
P’sCapitalAccountDr.
K’sCapitalAccountDr.
ToBankAccount
(CashpaidtoPforadjustmentofhis
capital)
1,92,975
92,975
2,85,950
PartB
OptionI
(AnalysisofFinancialStatements)
18.Anytwoofthefollowings:
(i)Royalties
(ii)CommissionReceived
(iii)Anyotherrevenuereceipts
19.ForPPLimited:OperatingActivity½
ForGGLimited:InvestingActivity½
20.(a)
MaterialdownloadedfrommyCBSEguide.com. 33/37
S.No. Items MajorHead SubHead
(i)SecuritiesPremium
ReserveShareholders’Funds Reserves&Surplus
(ii) CallsinAdvance CurrentLiabilitiesOtherCurrent
Liabilities
(iii) Stores&Spares CurrentAssets Inventory
(b)Anytwoofthefollowingvalues:Transparency,Honesty,AbidingtheLaw.(Oranyother
relevantvalue)
21.InterestCoverageRatio=NetProfitbeforeInterestandTax/InterestonLongTerm
Debts
NetProfitafterTax=Rs.6,00,000,TaxRate=40%
NetProfitbeforetax=100/(100–Tax)XNetProfitaftertax
=100/60X6,00,000=10,00,000
InterestCoverageRatio=NetProfitbeforeInterestandTax/InterestonLongTermDebts
=10,00,000/4,80,000=2.08Times
SignificanceofInterestCoverageRatio:ItrevealsthenumberoftimesInterestonLongTerm
Debtsiscoveredbytheprofitsavailable.AhigherratioensuressafetyofinterestonLong
TermDebts.
TheInterestcoverageratiowillimproveifthecompanydecidestoredeemRs.5,00,000
debenturesassumingthatNetProfitafterinterestandthetaxratewillbesame.1
22.
XLLimited
ComparativeStatementofProfits&Loss
FortheyearendedMarch31,2016and2017
MaterialdownloadedfrommyCBSEguide.com. 34/37
Particulars 2015-16
Amount(Rs.)
2016-17
Amount(Rs.)
Absolute
Change(Rs.)
%age
Change
RevenuefromOperations
Expenses:
(a)EmployeeBenefit
Expenses:10%of
Revenuefrom
Operations
(b)OtherExpenses
NetProfitbeforeTax
Less:Tax
NetProfitafterTax
50,00,000
5,00,000
10,00,000
35,00,000
14,00,000
21,00,000
80,00,000
8,00,000
12,00,000
60,00,000
24,00,000
36,00,000
30,00,000
3,00,000
2,00,000
25,00,000
10,00,000
15,00,000
60
60
20
71.43
71.43
71.43
23.
AjantaLimited
CashFlowStatement
fortheyearended31stMarch,2014
Particulars Amount(Rs.)
I–CASHFLOWFROMOPERATINGACTIVITIES
Surplus:BalanceintheStatementofProfit&Loss
AdjustmentforNon-CashandNon-OperatingItems
Depreciation65,000
LossonsaleofMachinery3,000
InterestonDebentures28,800
OperatingProfitbeforechangesinworkingcapital
Add:DecreaseinCurrentAssetsandIncreaseinCurrent
Liabilities
Inventories40,000
OutstandingRent20,000
Creditors20,000
Less:IncreaseinCurrentAssetsandDecreaseinCurrent
Liabilities
1,20,000
96,800
2,16,800
80,000
2,16,800
(2,40,000)
2,16,800
(2,88,000)
MaterialdownloadedfrommyCBSEguide.com. 35/37
BillsPayable
CashFlowfromOperatingActivities
II-CASHFLOWFROMINVESTINGACTIVITIES
PurchaseofMachinery
SaleofMachinery
PurchaseofSharesinXYZLimited
CashFlowfromInvestingActivities
III-CASHFLOWFROMFINANCINGACTIVITIES
Issueof9%Debentures
InterestonDebentures
CashFlowfromFinancingActivities
NetCashFlow
Add:OpeningBalanceofCashandCashEquivalents
ClosingBalanceofCashandCashEquivalents
32,000
80,000
2,88,000
80,000
(28,800)
51,200
51,200
(20,000)
80,000
60,000
PlantandMachineryAccount
ParticularsAmount
(Rs.)Particulars
Amount
(Rs.)
ToBalanceb/d
ToBankAccount
13,00,000
2,40,000
ByBankAccount
ByPlant&Machinery
Account
ByStatementofProfit
&Loss
ByBalancec/d
32,000
15,000
3,000
14,90,000
15,40,000 15,40,000
AccumulatedDeprecationAccount
ParticularsAmount
(Rs.)Particulars
Amount
(Rs.)
ToPlant&Machinery
Account15,000
1,50,000
ByBalanceb/d
ByStatementofProfit
&Loss
1,00,000
65,000
MaterialdownloadedfrommyCBSEguide.com. 36/37
ToBalancec/d
1,65,000 1,65,000
Part–B
Option–II
ComputerizedAccounting
18.Sol:(c)
19.Sol:(b)
20.Sol:Thecomputerizedaccountingisonethedatabase-orientedapplicationswhereinthe
transactiondataisstoredinwell-organizeddatabase.Theuseroperatesonsuchdatabase
usingtherequiredinterfaceandalsotakestherequiredreportsbysuitabletransformations
ofstoreddataintoinformation.Therefore,thefundamentalsofcomputerizedaccounting
includeallthebasicrequirementsofanydatabase-orientedapplicationincomputers.
Accountingframework.
Itistheapplicationenvironmentofthecomputerizedaccounting.Ahealthyaccounting
frameworkintermsofaccountingprinciples,codingandgroupingstructureisapre-
condition
foranycomputerizedaccountingsystem.
Operatingprocedure.
Awell-conceivedanddesignedoperatingprocedureblendedwithsuitableoperating
environmentoftheenterpriseisnecessarytoworkwiththecomputerizedaccounting
system.
21.Incomputerizedaccountingsystem,everydaybusinesstransactionsarerecordedwith
thehelpofcomputersoftware.Logicalschemeisappliedforcodificationofaccountand
transaction.Everyaccountandtransactionisassignedauniquecode.Thegroupingof
accountsisdonefromthefirststage.
[Brieflyexplainingwhatisaccountgroupsandhierarchyofledger.]
MaterialdownloadedfrommyCBSEguide.com. 37/37
ThehierarchyofledgeraccountsismaintainedandthedataistransferredintoLedger
accountsautomaticallybythecomputer.Inordertoproduceledgeraccountsthestored
transactiondataisprocessedtoappearasclassifiedsothatsameispresentedintheformof
report.Thepreparationoffinancialstatementsisindependentofproducingthetrial
balance.
22.Internalmanipulationofaccountingrecordsismucheasierincomputerizedaccounting
duetothefollowing:
i.Defectivelogicalsequenceattheprogrammingstage
ii.Pronetohacking
23.Everyaccountingsoftwareensuresdatasecurity,safetyandconfidentiality.Therefore
every,softwareshouldprovideforthefollowing:
PasswordSecurity:Passwordisamechanism,whichenablesausertoaccessasystem
includingdata.Thesystemfacilitatesdefiningtheuserrightsaccordingto
organizationpolicy.Consequently,apersoninanorganizationmaybegivenaccessto
aparticularsetofadatawhilehemaybedeniedaccesstoanothersetofdata.
DataAudit:Thisfeatureenablesonetoknowastowhoandwhatchangeshavebeen
madeintheoriginaldatatherebyhelpingandfixingtheresponsibilityoftheperson
whohasmanipulatedthedataandalsoensuresdataintegrity.Basically,thisfeature
issimilartoAuditTrial.
DataVault:Softwareprovidesadditionalsecuritythroughdataencryption.