Accountancy

Write the old shares in twentieths: Atul 8/20, Beena 7/20, Sita 5/20.
Damini's share = 1/5 = 4/20, given up wholly by Atul.
Atul's new share = 8/20 − 4/20 = 4/20; Beena 7/20 and Sita 5/20 stay the same; Damini 4/20.
New ratio = 4 : 7 : 5 : 4.
Common mistake: reducing every old partner's share – here only Atul sacrifices.

Rushil = 4/7 − 2/7 = 2/7.
Abheer = 3/7 − 1/7 = 2/7.
Sunil = 2/7 + 1/7 = 3/7.
New ratio = 2 : 2 : 3.

Boris's normal share = 3/10 × 2,00,000 = ₹60,000.
Shortfall = 95,000 − 60,000 = ₹35,000.
Abhay and Chetan bear it equally: Abhay = 35,000 ÷ 2 = ₹17,500.

Creditors accept the furniture at its agreed value ₹45,000 (book value ₹50,000 is irrelevant here).
Balance payable = 60,000 − 45,000 = ₹15,000 by cheque.
Common mistake: using the book value of furniture (would give ₹10,000).

Premium for goodwill compensates the old partners for the share of profit they give up to the new partner.
So it is credited to the old partners' capital accounts in their sacrificing ratio (here all three sacrifice equally, so 1 : 1 : 1).

Combined adjusted capital of old partners = 1,20,000 + 80,000 + 1,00,000 = ₹3,00,000.
This is for 1 − 1/5 = 4/5 of the firm, so total capital = 3,00,000 × 5/4 = ₹3,75,000.
Dona's capital = 3,75,000 × 1/5 = ₹75,000.

The 'mutual agency' element comes from the definition: business carried on by all or any of them acting for all.
When one partner acts for all, he is an agent of the others and bound by their acts as a principal – so R is the reason for A.

Full interest: Abha 10% of 5,00,000 = ₹50,000; Babita 10% of 10,00,000 = ₹1,00,000; total ₹1,50,000.
Interest on capital is an appropriation, so it cannot exceed the profit of ₹90,000.
The profit is shared in the ratio of interest 50,000 : 1,00,000 = 1 : 2.
Abha = 90,000 × 1/3 = ₹30,000.
Common mistake: giving the full ₹50,000 when profit is insufficient.

Interest on capital due (₹1,50,000) is more than the profit (₹90,000).
The whole ₹90,000 is used up as interest on capital (Abha ₹30,000, Babita ₹60,000).
Nothing is left to share in the profit ratio, so Babita's share of profit = Nil.

Amount per share on application = 10 + 30% of 10 = ₹13.
Excess applications = 2,50,000 − 50,000 = 2,00,000 shares.
With the full amount payable on application there is nothing to adjust, so the excess is refunded: 2,00,000 × 13 = ₹26,00,000.

A company may resolve (by special resolution) that a part of its uncalled capital will be called only on winding up.
That part is reserve capital – it is a part of uncalled capital.

On forfeiture, Share Capital is debited with the amount called up on the forfeited shares.
Called up so far = application ₹4 + allotment ₹5 = ₹9 per share.
Debit = 1,500 × 9 = ₹13,500.
Common mistake: debiting the full face value ₹10 when the final call is not yet made.

Because there is no fixed repayment date (repayable only on winding up or after a long period), these debentures are 'perpetual'.
So R correctly explains A.

Entry: Bank A/c Dr. To Calls in Advance A/c.
Calls in advance is a liability of the company (not part of share capital) until the call is made, so it is credited.

Private placement = issue of securities to a select group of persons (not to the public at large) through a private placement offer letter.

The maximum discount on reissue = amount forfeited = ₹80 per share.
Minimum reissue price (as fully paid) = 100 − 80 = ₹20.

Amount forfeited = 500 × 7 = ₹3,500.
Discount on reissue = 500 × (10 − 9) = ₹500, met from Share Forfeiture.
Balance to Capital Reserve = 3,500 − 500 = ₹3,000.

Change in shares: Dan 5/10 → 2/10 (sacrifice 3/10); Elf 3/10 → 3/10 (no change); Furhan 2/10 → 5/10 (gain 3/10).
Reserve kept in the books, so the gaining partner compensates the sacrificing partner: 3/10 × 90,000 = ₹27,000.
Entry: Furhan's Capital A/c Dr. 27,000 To Dan's Capital A/c 27,000.

An accumulated loss (debit balance of P&L) belongs to the period of the old ratio, so it is written off in the OLD ratio 3 : 2 : 1.
Sia 3/6 × 60,000 = 30,000; Tom 2/6 × 60,000 = 20,000; Vidhi 1/6 × 60,000 = 10,000.
Entry: the three Capital A/cs Dr. To Profit and Loss A/c 60,000.

Gain = new share − old share.
Anju = 5/8 − 3/6 = 15/24 − 12/24 = 3/24.
Divya = 3/8 − 2/6 = 9/24 − 8/24 = 1/24.
Gaining ratio = 3 : 1.

Atul's share = 1/6. Mita takes 1/5 of it = 1/30; Veena takes 4/5 = 4/30.
Mita = 3/6 + 1/30 = 15/30 + 1/30 = 16/30.
Veena = 2/6 + 4/30 = 10/30 + 4/30 = 14/30.
New ratio = 16 : 14 = 8 : 7.

Step 1 – Gain/sacrifice (new − old):
Aamir = 1/3 − 3/8 = 8/24 − 9/24 = −1/24 (sacrifice)
Bashir = 2/3 − 3/8 = 16/24 − 9/24 = +7/24 (gain)
So only Bashir gains; he gains Chirag's 6/24 plus Aamir's 1/24.
Step 2 – Amounts: Chirag's share of goodwill = 2/8 × 5,40,000 = ₹1,35,000; Aamir's sacrifice = 1/24 × 5,40,000 = ₹22,500; Bashir's gain = 7/24 × 5,40,000 = ₹1,57,500.
Step 3 – Entry:
Bashir's Capital A/c ... Dr. ₹1,57,500
To Aamir's Capital A/c ₹22,500
To Chirag's Capital A/c ₹1,35,000
(Goodwill adjusted on Chirag's retirement)
Common mistake: assuming the gaining ratio equals the new ratio 1 : 2 – always compute new minus old.

Step 1 – Adjust profit: overvalued closing stock inflated 2022-23 profit, so 33,000 − 5,000 = ₹28,000.
Step 2 – Total = 35,000 + 25,000 + 32,000 + 28,000 = ₹1,20,000; average profit = 1,20,000 ÷ 4 = ₹30,000.
Step 3 – Normal profit = 10% of 2,50,000 = ₹25,000.
Step 4 – Super profit = 30,000 − 25,000 = ₹5,000.
Step 5 – Goodwill = 5,000 × 3 = ₹15,000.

Working: Net assets = 3,60,000 − 1,00,000 = ₹2,60,000; consideration ₹4,80,000 is more, so Goodwill = ₹2,20,000.
Issue price = 100 − 4 = ₹96; number of debentures = 4,80,000 ÷ 96 = 5,000.
Entry 1:
Sundry Assets A/c ... Dr. ₹3,60,000
Goodwill A/c ... Dr. ₹2,20,000
To Creditors A/c ₹1,00,000
To Moonlight Ltd. ₹4,80,000
(Business purchased)
Entry 2:
Moonlight Ltd. ... Dr. ₹4,80,000
Discount on Issue of Debentures A/c ... Dr. ₹20,000
To 9% Debentures A/c ₹5,00,000
(5,000 debentures issued at 4% discount)

Working: Net assets = 25,00,000 − 5,00,000 = ₹20,00,000; consideration ₹18,00,000 is less, so Capital Reserve = ₹2,00,000.
Issue price = ₹120; number of debentures = 18,00,000 ÷ 120 = 15,000.
Entry 1:
Sundry Assets A/c ... Dr. ₹25,00,000
To Sundry Liabilities A/c ₹5,00,000
To Allore Ltd. ₹18,00,000
To Capital Reserve A/c ₹2,00,000
Entry 2:
Allore Ltd. ... Dr. ₹18,00,000
To 11% Debentures A/c ₹15,00,000
To Securities Premium A/c ₹3,00,000
(15,000 debentures issued at 20% premium)

Excess interest credited (3% extra): Mohan 6,000, Suhaan 3,000, Adit 3,000 – total ₹12,000; this must be reversed (debited).
The ₹12,000 should have been profit, shared 3 : 2 : 1 = Mohan 6,000, Suhaan 4,000, Adit 2,000 (credited).
Net: Mohan 0; Suhaan +1,000 (Cr); Adit −1,000 (Dr).
Entry:
Adit's Current A/c ... Dr. ₹1,000
To Suhaan's Current A/c ₹1,000
(Excess interest on capital adjusted)
Note: capitals are fixed, so adjustments go through current accounts.

Step 1 – Opening capitals = closing + drawings − profit share:
Manoj = 90,000 + 40,000 − 20,000 = ₹1,10,000; Nitin = 80,000 + 20,000 − 10,000 = ₹90,000.
Step 2 – Interest on capital @10%: Manoj 11,000; Nitin 9,000.
Step 3 – Net to credit = IOC − IOD: Manoj 11,000 − 3,000 = 8,000; Nitin 9,000 − 2,000 = 7,000; total ₹15,000.
Step 4 – This ₹15,000 is taken back from profit in 2 : 1: Manoj 10,000, Nitin 5,000 (debit).
Step 5 – Net: Manoj 8,000 − 10,000 = −2,000 (Dr); Nitin 7,000 − 5,000 = +2,000 (Cr).
Entry:
Manoj's Capital A/c ... Dr. ₹2,000
To Nitin's Capital A/c ₹2,000

Forfeited amount = only application money paid on 4,000 shares = 4,000 × 2 = ₹8,000.
Balance Sheet (extract): Equity and Liabilities → 1. Shareholders' Funds → (a) Share Capital (Note 1) ₹4,68,000.
Note 1 – Share Capital:
\[\begin{array}{|l|r|}\hline \text{Particulars} & \text{₹}\\\hline \text{Authorised: 1,00,000 equity shares of ₹10 each} & 10{,}00{,}000\\\hline \text{Issued: 50,000 equity shares of ₹10 each} & 5{,}00{,}000\\\hline \text{Subscribed and fully paid: 46,000 shares of ₹10 each} & 4{,}60{,}000\\ \text{Add: Share Forfeiture A/c} & 8{,}000\\\hline \text{Total} & 4{,}68{,}000\\\hline\end{array}\]
Common mistake: showing forfeited shares in subscribed capital – they are no longer outstanding.

Workings: Vandana's investments = 25% × 80,000 = 20,000 book, taken at ₹18,000. Archana's = 60,000 book less 10% = ₹54,000. Cash from assets = 40,000 + 50,000 + 60,000 = ₹1,50,000.
\[\begin{array}{|l|r|l|r|}\hline \text{Dr.} & \text{₹} & \text{Cr.} & \text{₹}\\\hline \text{To Investments} & 80{,}000 & \text{By Creditors} & 60{,}000\\ \text{To Plant} & 1{,}00{,}000 & \text{By Bank (assets realised)} & 1{,}50{,}000\\ \text{To Stock} & 40{,}000 & \text{By Vandana's Capital} & 18{,}000\\ \text{To Debtors} & 50{,}000 & \text{By Archana's Capital} & 54{,}000\\ \text{To Bank (creditors)} & 60{,}000 & \text{By Loss: Archana} & 34{,}000\\ \text{To Arti's Capital (expenses)} & 20{,}000 & \text{By Loss: Vandana} & 20{,}400\\ & & \text{By Loss: Arti} & 13{,}600\\\hline \text{Total} & 3{,}50{,}000 & \text{Total} & 3{,}50{,}000\\\hline\end{array}\]
Loss = 3,50,000 − 2,82,000 = ₹68,000, shared 5 : 3 : 2.
Note: General Reserve and Cash at Bank do not go to Realisation Account.

Workings:
General Reserve share = 1/5 × 60,000 = ₹12,000.
Interest on capital = 20,000 × 10% × 3/12 = ₹500.
Average profit = (−3,000 + 28,000 + 16,000 + 15,000) ÷ 4 = 56,000 ÷ 4 = ₹14,000; goodwill = 3 × 14,000 = ₹42,000; Robit's share = 1/5 × 42,000 = ₹8,400, borne by Azhar and Sumit in gaining ratio 3 : 1 → ₹6,300 and ₹2,100.
Profit till death = 15,000 × 1/5 × 3/12 = ₹750 (Profit and Loss Suspense).
\[\begin{array}{|l|r|l|r|}\hline \text{Dr.} & \text{₹} & \text{Cr.} & \text{₹}\\\hline \text{To Robit's Legal Representatives A/c} & 41{,}650 & \text{By Balance b/d} & 20{,}000\\ & & \text{By General Reserve} & 12{,}000\\ & & \text{By Interest on Capital} & 500\\ & & \text{By Azhar's Capital} & 6{,}300\\ & & \text{By Sumit's Capital} & 2{,}100\\ & & \text{By P\&L Suspense} & 750\\\hline \text{Total} & 41{,}650 & \text{Total} & 41{,}650\\\hline\end{array}\]
Common mistake: ignoring the loss year (−3,000) while averaging.

Number of debentures = 10,00,000 ÷ 100 = 10,000; issue price ₹106; redemption price ₹104.
(a) Journal:
1 Apr 2022: Bank A/c ... Dr. ₹10,60,000
To Debenture Application & Allotment A/c ₹10,60,000
1 Apr 2022: Debenture Application & Allotment A/c ... Dr. ₹10,60,000
Loss on Issue of Debentures A/c ... Dr. ₹40,000
To 7% Debentures A/c ₹10,00,000
To Securities Premium A/c ₹60,000
To Premium on Redemption of Debentures A/c ₹40,000
31 Mar 2023: Securities Premium A/c ... Dr. ₹40,000
To Loss on Issue of Debentures A/c ₹40,000
(Securities Premium available = 30,000 + 60,000 = ₹90,000, enough to write off the whole loss.)
(b) Loss on Issue of Debentures Account:
\[\begin{array}{|l|l|r|l|l|r|}\hline \text{Date} & \text{Dr.} & \text{₹} & \text{Date} & \text{Cr.} & \text{₹}\\\hline \text{1.4.22} & \text{To Premium on Redemption} & 40{,}000 & \text{31.3.23} & \text{By Securities Premium} & 40{,}000\\\hline\end{array}\]

1. Bank A/c Dr. ₹12,80,000 To Equity Share Application & Allotment A/c ₹12,80,000 (1,60,000 × 8)
2. Equity Share Application & Allotment A/c Dr. ₹12,80,000
To Equity Share Capital A/c ₹5,00,000 (1,00,000 × 5)
To Securities Premium A/c ₹3,00,000 (1,00,000 × 3)
To Bank A/c ₹4,80,000 (60,000 shares × 8 refunded)
3. Equity Share First & Final Call A/c Dr. ₹8,00,000
To Equity Share Capital A/c ₹5,00,000; To Securities Premium A/c ₹3,00,000
4. Bank A/c Dr. ₹7,98,400; Calls in Arrears A/c Dr. ₹1,600 (200 × 8)
To Equity Share First & Final Call A/c ₹8,00,000
5. Forfeiture: Equity Share Capital A/c Dr. ₹2,000 (200 × 10); Securities Premium A/c Dr. ₹600 (200 × 3, not received)
To Calls in Arrears A/c ₹1,600; To Share Forfeiture A/c ₹1,000 (200 × 5 paid towards capital)
6. Reissue: Bank A/c Dr. ₹1,000; Share Forfeiture A/c Dr. ₹1,000
To Equity Share Capital A/c ₹2,000
Forfeiture balance = 1,000 − 1,000 = 0, so nothing goes to Capital Reserve.
Common mistake: crediting the ₹3 premium paid on application to Share Forfeiture – premium already received stays in Securities Premium.

Workings:
Category A: paid 80,000 × 3 = 2,40,000; needed 40,000 × 3 = 1,20,000; excess 1,20,000 → allotment due 80,000 fully adjusted, ₹40,000 to Calls in Advance.
Category B: paid 60,000 × 3 = 1,80,000; needed 1,20,000; excess 60,000 → adjusted to allotment (due 80,000).
Rejected 10,000 × 3 = ₹30,000 refunded.
Journal:
1. Bank A/c Dr. ₹4,50,000 To Equity Share Application A/c ₹4,50,000
2. Equity Share Application A/c Dr. ₹4,50,000
To Equity Share Capital A/c ₹2,40,000; To Equity Share Allotment A/c ₹1,40,000; To Calls in Advance A/c ₹40,000; To Bank A/c ₹30,000
3. Equity Share Allotment A/c Dr. ₹1,60,000 To Equity Share Capital A/c ₹1,60,000
4. Bank A/c Dr. ₹20,000 To Equity Share Allotment A/c ₹20,000 (1,60,000 − 1,40,000)
5. Equity Share First & Final Call A/c Dr. ₹4,00,000 To Equity Share Capital A/c ₹4,00,000 (80,000 × 5)
6. Bank A/c Dr. ₹3,60,000; Calls in Advance A/c Dr. ₹40,000 To Equity Share First & Final Call A/c ₹4,00,000

Revaluation: Dr. To Fixed Assets (30% of 90,000) ₹27,000; Cr. By Stock (45,000 − 38,000) ₹7,000, By Loss – Shubhi ₹12,000, Revanshi ₹8,000 (total ₹27,000).
Goodwill premium ₹50,000 goes to old partners in sacrificing ratio = old ratio 3 : 2 → ₹30,000 and ₹20,000. General Reserve 3 : 2 → ₹18,000 and ₹12,000.
Required capitals: total = 50,000 × 4 = ₹2,00,000; old partners hold 3/4 = 1,50,000 in 3 : 2 → Shubhi ₹90,000, Revanshi ₹60,000.
\[\begin{array}{|l|r|r|r|}\hline \text{Particulars} & \text{Shubhi} & \text{Revanshi} & \text{Pari}\\\hline \text{By Balance b/d} & 60{,}000 & 32{,}000 & -\\ \text{By General Reserve} & 18{,}000 & 12{,}000 & -\\ \text{By Premium for Goodwill} & 30{,}000 & 20{,}000 & -\\ \text{By Cash (capital brought)} & - & 4{,}000 & 50{,}000\\\hline \text{Cr. total} & 1{,}08{,}000 & 68{,}000 & 50{,}000\\\hline \text{To Revaluation (loss)} & 12{,}000 & 8{,}000 & -\\ \text{To Cash (withdrawn)} & 6{,}000 & - & -\\ \text{To Balance c/d} & 90{,}000 & 60{,}000 & 50{,}000\\\hline \text{Dr. total} & 1{,}08{,}000 & 68{,}000 & 50{,}000\\\hline\end{array}\]
Check: Shubhi before adjustment 96,000 vs required 90,000 → pays out 6,000; Revanshi 56,000 vs 60,000 → brings 4,000.

Ratio = 3 : 1 : 2. Revaluation: Dr. To Fixed Assets (80,000 − 56,000) ₹24,000; Cr. By Stock (taken at 26,000 vs 20,000) ₹6,000, By Loss ₹18,000 → Rishi 9,000, Shashi 3,000, Trishi 6,000.
General Reserve 3 : 1 : 2 → 15,000, 5,000, 10,000.
Shashi's goodwill share = 1/6 × 18,000 = ₹3,000, borne by Rishi and Trishi in gaining ratio 3 : 2 → ₹1,800 and ₹1,200.
\[\begin{array}{|l|r|r|r|}\hline \text{Particulars} & \text{Rishi} & \text{Shashi} & \text{Trishi}\\\hline \text{By Balance b/d} & 36{,}000 & 30{,}000 & 20{,}000\\ \text{By General Reserve} & 15{,}000 & 5{,}000 & 10{,}000\\ \text{By Rishi's and Trishi's Capital (goodwill)} & - & 3{,}000 & -\\\hline \text{Cr. total} & 51{,}000 & 38{,}000 & 30{,}000\\\hline \text{To Revaluation (loss)} & 9{,}000 & 3{,}000 & 6{,}000\\ \text{To Shashi's Capital (goodwill)} & 1{,}800 & - & 1{,}200\\ \text{To Stock} & - & 26{,}000 & -\\ \text{To Shashi's Loan A/c} & - & 9{,}000 & -\\ \text{To Balance c/d} & 40{,}200 & - & 22{,}800\\\hline \text{Dr. total} & 51{,}000 & 38{,}000 & 30{,}000\\\hline\end{array}\]

Quick ratio = quick assets ÷ current liabilities.
(A) Cash in, debtors out – no change in quick assets.
(B) Inventory (not quick) becomes debtors (quick) – quick assets rise, CL unchanged → ratio rises.
(C) CL rise, quick assets unchanged → ratio falls.
(D) Cash (quick) becomes inventory → ratio falls.

The five components of CAS: Procedure, Data, People, Hardware and Software. The missing ones are People and Procedures.

Payment to creditors is an operating OUTflow.
Interest and dividend received by a non-finance company are investing inflows.
Cash collected from debtors comes from the main revenue activity → operating inflow.

The Cash and Bank sub-system deals with receipts and payments of cash, including electronic fund transfer.

In batch processing, transactions are collected over a period and processed together in one run; real-time processing handles each transaction as it happens.

Trade payables (suppliers/creditors) are short-term lenders; they look at liquidity – the firm's ability to pay them in the short run.

Solvency ratios (debt-equity, total assets to debt, proprietary, interest coverage) measure long-term ability to pay interest and repay debt.

A pie chart shows one data series; it is recommended for not more than seven categories, otherwise the slices become hard to read.

Shares are issued directly to the vendor in exchange for machinery – no cash is received or paid.
Such non-cash transactions are kept out of the Cash Flow Statement.

Tax is normally operating, but tax that can be specifically linked to an investing transaction (sale of fixed assets) is classified with that transaction – under investing activities.

A range of numbers is split into sub-ranges and each sub-range is given to one group of items – that is a block code.

##### means the value cannot be displayed in the current column width; widening the column shows it. Division by zero gives #DIV/0! and a missing value gives #N/A.

(a) Long-term loans from bank → Major head: Non-Current Liabilities; Sub-head: Long-term Borrowings.
(b) Loose tools → Current Assets; Inventories.
(c) Outstanding expenses → Current Liabilities; Other Current Liabilities.
(½ mark for each head and sub-head.)

Doughnut chart: like a pie chart it shows how parts make up a whole, but data is drawn as rings and each ring is one data series, so it can show more than one series. It is a little harder to read than a pie.
Exploded doughnut chart: like an exploded pie, its segments are separated from the ring so that each value's contribution to the total is emphasised; it too can hold more than one data series.

(a) Quick assets = 4,00,000 − 1,00,000 = ₹3,00,000.
Quick Ratio = 3,00,000 ÷ 2,00,000 = 1.5 : 1.
(b) Gross profit = 20% of 10,00,000 = ₹2,00,000.
Cost of revenue from operations = 10,00,000 − 2,00,000 = ₹8,00,000.
Inventory Turnover Ratio = 8,00,000 ÷ 1,00,000 (only one inventory figure, so taken as average) = 8 times.
Note: Net profit before tax is not needed – a distractor.

Transparency and Control: CAS makes data easily accessible, gives more time for planning and shows day-to-day operations clearly. With timely feedback and information, decisions are faster and processes can be controlled better.
Accuracy and Speed: CAS provides user-defined data-entry screens (templates) for quick entry of transactions, with checks that verify accuracy. Required documents and reports are generated instantly.

Each item is shown as % of total (₹8,00,000 for 2023, ₹5,00,000 for 2022).
\[\begin{array}{|l|r|r|r|r|}\hline \text{Particulars} & \text{2022 (₹)} & \text{2023 (₹)} & \text{2022 \%} & \text{2023 \%}\\\hline \text{Share Capital} & 2{,}50{,}000 & 4{,}00{,}000 & 50 & 50\\ \text{Long-term Borrowings} & 1{,}50{,}000 & 2{,}00{,}000 & 30 & 25\\ \text{Trade Payables} & 1{,}00{,}000 & 2{,}00{,}000 & 20 & 25\\\hline \text{Total} & 5{,}00{,}000 & 8{,}00{,}000 & 100 & 100\\\hline \text{PPE and Intangible Assets} & 3{,}50{,}000 & 4{,}00{,}000 & 70 & 50\\ \text{Inventories} & 70{,}000 & 2{,}00{,}000 & 14 & 25\\ \text{Trade Receivables} & 80{,}000 & 2{,}00{,}000 & 16 & 25\\\hline \text{Total} & 5{,}00{,}000 & 8{,}00{,}000 & 100 & 100\\\hline\end{array}\]
Example: Trade Receivables 2022 = 80,000 ÷ 5,00,000 × 100 = 16%.

\[\begin{array}{|l|r|r|r|r|}\hline \text{Particulars} & \text{2021-22} & \text{2022-23} & \text{Change (₹)} & \text{Change \%}\\\hline \text{Revenue from operations} & 8{,}00{,}000 & 10{,}00{,}000 & 2{,}00{,}000 & 25\\ \text{Employee benefit exp.} & 1{,}00{,}000 & 2{,}50{,}000 & 1{,}50{,}000 & 150\\ \text{Other expenses} & 4{,}00{,}000 & 5{,}50{,}000 & 1{,}50{,}000 & 37.5\\ \text{Total expenses} & 5{,}00{,}000 & 8{,}00{,}000 & 3{,}00{,}000 & 60\\\hline \text{Profit before tax} & 3{,}00{,}000 & 2{,}00{,}000 & (1{,}00{,}000) & (33.33)\\ \text{Less: Tax @ 50\%} & 1{,}50{,}000 & 1{,}00{,}000 & (50{,}000) & (33.33)\\\hline \text{Profit after tax} & 1{,}50{,}000 & 1{,}00{,}000 & (50{,}000) & (33.33)\\\hline\end{array}\]
% change = change ÷ previous year × 100, e.g. 1,50,000 ÷ 1,00,000 × 100 = 150%.

Any four:
1. Reports and information are produced on time and in the desired format.
2. Records are kept efficiently and can be retrieved quickly.
3. Better and effective control over the system.
4. Processing of accounting data is economical.
5. Confidentiality of data is maintained (passwords).
6. Transparency in recording helps to avoid frauds.
7. Accurate data makes reports reliable.

Password security: a password is the key that allows a user into the system. User rights are defined as per the organisation's policy, so a person can be allowed access to one set of data and denied access to another.
Data audit: this feature shows who made which changes in the original data. It helps to fix responsibility on the person who altered the data and ensures data integrity – similar to an audit trail.

Net profit before tax = 6,28,000 + 1,50,000 (tax provision) + 72,000 (dividend paid out of profits) = ₹8,50,000.
\[\begin{array}{|l|r|}\hline \text{Particulars} & \text{₹}\\\hline \text{Net profit before tax} & 8{,}50{,}000\\ \text{Add: Depreciation} & 1{,}40{,}000\\ \text{Add: Loss on sale of machinery} & 30{,}000\\ \text{Less: Gain on sale of investments} & (20{,}000)\\ \text{Less: Dividend received} & (6{,}000)\\\hline \text{Operating profit before WC changes} & 9{,}94{,}000\\ \text{Add: Increase in current liabilities} & 1{,}61{,}000\\ \text{Less: Increase in current assets} & (6{,}00{,}000)\\ \text{Less: Decrease in current liabilities} & (64{,}000)\\\hline \text{Cash generated from operations} & 4{,}91{,}000\\ \text{Less: Income tax paid} & (1{,}18{,}000)\\\hline \text{Net cash from operating activities} & 3{,}73{,}000\\\hline\end{array}\]
Gain on investments and dividend received are investing items, so they are removed from profit.

1. Vector form – =LOOKUP(lookup_value, lookup_vector, result_vector)
• Searches a one-row or one-column range (lookup_vector) for the value and returns the value from the same position in a second one-row/one-column range (result_vector).
• lookup_value can be a number, text, logical value or a name.
• lookup_vector contains a single row or column; result_vector must be of the same size.
2. Array form – =LOOKUP(lookup_value, array)
• Searches the first row or column of the array for the value and returns the value from the same position in the last row or column.
• If an exact match is not found, it uses the largest value that is less than or equal to lookup_value.
• If lookup_value is smaller than the smallest value in the first row/column, it returns #N/A.
• array is a range of cells containing text, numbers or logical values.