Accountancy

Normal profit = Capital employed × Normal rate of return ÷ 100
So, Normal rate = Normal profit ÷ Capital employed × 100 = 60,000 ÷ 6,00,000 × 100 = 10%.
The super profit (₹20,000) is extra information here – it is not needed. Common mistake: using average profit (80,000) instead of normal profit, which would give 13.33%.

Partnership is created by agreement, not by status or birth (Section 4, Indian Partnership Act, 1932). Because the relationship arises only out of an agreement, that agreement (oral or written deed) becomes the basis of the partners' rights and duties. Hence R correctly explains A.

Share Forfeiture A/c is always credited with the amount received towards share capital (premium excluded).
Amount received per share = ₹6, of which premium ₹1 is already received → capital received = ₹5.
Forfeiture = 600 × ₹5 = ₹3,000 (credit).
Common mistake: crediting ₹6 × 600 = ₹3,600 – premium once received is never transferred to forfeiture.

Loss on issue = Discount on issue + Premium payable on redemption.
Discount = 10% of 10,00,000 = ₹1,00,000
Premium on redemption = ₹1,00,000 (given)
Loss on issue = 1,00,000 + 1,00,000 = ₹2,00,000.

With no agreed rate, a partner's loan earns interest @ 6% p.a. (Partnership Act).
Interest = 50,000 × 6% × 12/12 = ₹3,000.
Interest on partner's loan is a charge against profit, so it is deducted in the P&L Account itself.
Profit transferred = 3,75,000 − 3,000 = ₹3,72,000.

Work backwards from the closing capital.
Vasu's share of profit = 1,40,000 × 3/7 = ₹60,000.
Opening capital = Closing capital + Drawings − Additional capital − Share of profit
= 3,75,000 + 40,000 − 1,50,000 − 60,000 = ₹2,05,000.

Combined capital of old partners = 7,00,000 + 13,00,000 = ₹20,00,000, which is for their remaining share of 1 − 1/5 = 4/5.
Total capital of the new firm = 20,00,000 × 5/4 = ₹25,00,000.
Hitesh's capital = 25,00,000 × 1/5 = ₹5,00,000.

Collateral security is security given in addition to the principal (primary) security – so it is additional/subsidiary/secondary. It is never the primary security; hence (A) is the incorrect statement.

A company is a body corporate – an artificial person created by law (registered under the Companies Act). Perpetual succession means its life is unaffected by members changing; limited liability concerns members' risk; common seal is its signature. Formation under law = body corporate.

Reserves are profits earned in the past, when the old ratio applied. So on a change in profit sharing ratio, accumulated reserves are credited to partners in their OLD ratio (here 5 : 4 : 1).

'Undervalued by 10%' means book value is 10% less than the true value.
Book value = 90% of true value → True value = 4,50,000 × 100/90 = ₹5,00,000.
Common mistake: adding 10% of book value (4,95,000).

Withdrawals: 31 Dec, 31 Jan, 28/29 Feb, 31 Mar = 4 × 40,000 = ₹1,60,000.
Months outstanding till 31 March: 3, 2, 1, 0 → average = (3 + 0)/2 = 1.5 months.
Interest = 1,60,000 × 12/100 × 1.5/12 = ₹2,400.

Gain = New share − Old share.
Dharam = 11/20 − 7/20 = 4/20; Karam = 9/20 − 8/20 = 1/20.
Gaining ratio = 4 : 1.

Raju's share 6/20 is taken equally → 3/20 each.
Deen = 7/20 + 3/20 = 10/20; Hari = 7/20 + 3/20 = 10/20.
New ratio = 1 : 1.

Full interest: Nidhi 18,000; Kunal 12,000; total ₹30,000.
Interest on capital is an appropriation, so it cannot exceed the available profit of ₹15,000.
The profit is shared in the ratio of interest due, 18,000 : 12,000 = 3 : 2.
Nidhi = 15,000 × 3/5 = ₹9,000; Kunal = 15,000 × 2/5 = ₹6,000.
Common mistake: dividing in the profit sharing ratio 4 : 1.

Interest is always calculated on the face (nominal) value, not on the issue price.
Face value = 8,000 × 100 = ₹8,00,000.
Interest = 8,00,000 × 9% = ₹72,000.

Final call ₹4 = ₹2 capital + ₹2 premium (premium is included in this call).
So, capital called before the final call = 10 − 2 = ₹8, and this has been received.
Forfeited amount per share = ₹8.
Maximum discount on reissue = amount forfeited = ₹8 per share.

Call = 10 − 3 − 2 = ₹5 per share; total due = 50,000 × 5 = ₹2,50,000.
Less: Usha's call already received in advance = 700 × 5 = ₹3,500
Less: Raj's unpaid call = 300 × 5 = ₹1,500
Bank receives = 2,50,000 − 3,500 − 1,500 = ₹2,45,000.

On dissolution every receipt from an unrecorded asset (including bad debts recovered) is a realisation gain.
Amount = 40% × 25,000 = ₹10,000.
Entry: Cash/Bank A/c Dr. 10,000; To Realisation A/c 10,000.

Each gives 1/10 to Mohan.
Chaman = 4/9 − 1/10 = (40 − 9)/90 = 31/90
Vatika = 5/9 − 1/10 = (50 − 9)/90 = 41/90
Mohan = 1/5 = 18/90
New ratio = 31 : 41 : 18.

Excess paid over capital = 2,25,000 − 1,80,000 = ₹45,000 = Madhuri's share of goodwill.
Her share = 1/6, so firm's goodwill = 45,000 × 6 = ₹2,70,000.

Capital employed = Assets − External liabilities = 60,00,000 − 20,00,000 = ₹40,00,000
Normal profit = 10% × 40,00,000 = ₹4,00,000
Super profit = Average profit − Normal profit = 8,00,000 − 4,00,000 = ₹4,00,000
(i) Capitalisation of super profit: Goodwill = Super profit × 100 / NRR = 4,00,000 × 100/10 = ₹40,00,000
(ii) Super profit method: Goodwill = Super profit × Years' purchase = 4,00,000 × 4 = ₹16,00,000
Tip: super profit need be worked out only once and used for both parts.

Excess interest allowed = 2% of capital: Sultan 12,000; Singh 10,000; Tulsi 8,000; total ₹30,000.
This ₹30,000 must be taken back and redistributed as profit in 9 : 7 : 4 → Sultan 13,500; Singh 10,500; Tulsi 6,000.
\[\begin{array}{|l|r|r|r|}\hline \text{Partner} & \text{Excess interest (Dr)} & \text{Profit (Cr)} & \text{Net}\\\hline \text{Sultan} & \text{12,000} & \text{13,500} & \text{1,500 Cr}\\ \text{Singh} & \text{10,000} & \text{10,500} & \text{500 Cr}\\ \text{Tulsi} & \text{8,000} & \text{6,000} & \text{2,000 Dr}\\\hline\end{array}\]
Adjustment entry (capitals are fixed, so use current accounts):
Tulsi's Current A/c ... Dr. ₹2,000
To Sultan's Current A/c ₹1,500
To Singh's Current A/c ₹500
(Being excess interest on capital rectified)

Sandeep's share = 3,20,000 × 1/5 = ₹64,000 → deficiency = 80,000 − 64,000 = ₹16,000.
Remaining 4/5 = ₹2,56,000 shared 5 : 3 → Sameer 1,60,000; Manveer 96,000.
Deficiency borne 3 : 5 → Sameer 6,000; Manveer 10,000.
\[\begin{array}{|l|r|l|r|}\hline \text{Dr Particulars} & \text{₹} & \text{Cr Particulars} & \text{₹}\\\hline \text{To Sameer's Capital (1,60,000 − 6,000)} & \text{1,54,000} & \text{By P\&L A/c (net profit)} & \text{3,20,000}\\ \text{To Manveer's Capital (96,000 − 10,000)} & \text{86,000} & & \\ \text{To Sandeep's Capital (64,000 + 16,000)} & \text{80,000} & & \\\hline & \text{3,20,000} & & \text{3,20,000}\\\hline\end{array}\]
Common mistake: bearing the deficiency in the old ratio 5 : 3 – the agreed ratio 3 : 5 must be used.

Issue price = 50 + 20% of 50 = ₹60; value of shares = 10,500 × 60 = ₹6,30,000 (capital 5,25,000; premium 1,05,000). Balance by cheque = 6,80,000 − 6,30,000 = ₹50,000.
(1) Machinery A/c ... Dr. 6,80,000
To Heavy Machines Ltd. 6,80,000
(Being machinery purchased)
(2) Heavy Machines Ltd. ... Dr. 6,80,000
To Equity Share Capital A/c 5,25,000
To Securities Premium A/c 1,05,000
To Bank A/c 50,000
(Being payment by issue of shares at premium and the balance by cheque)
(The payment may also be shown as two separate entries – shares and cheque.)

Net assets = 25,00,000 − 12,00,000 = ₹13,00,000; consideration 18,00,000 → Goodwill = ₹5,00,000.
No. of debentures = 18,00,000 ÷ 90 = 20,000 → face value ₹20,00,000; discount ₹2,00,000.
(1) Sundry Assets A/c ... Dr. 25,00,000
Goodwill A/c ... Dr. 5,00,000
To Sundry Liabilities A/c 12,00,000
To Madura Ltd. 18,00,000
(2) Madura Ltd. ... Dr. 18,00,000
Discount on Issue of Debentures A/c ... Dr. 2,00,000
To 11% Debentures A/c 20,00,000
(Being 20,000 debentures issued at 10% discount)

Commission = 5% × 1,00,000 = ₹5,000 (on net profit before commission, since the deed says 'of net profit').
(i) Partner's (Hari's) Commission A/c ... Dr. 5,000
To Hari's Current A/c 5,000
(Being commission credited – capitals are fixed, so current account)
(ii) Profit and Loss Appropriation A/c ... Dr. 5,000
To Partner's (Hari's) Commission A/c 5,000
(Being commission closed to P&L Appropriation)

Face value = 500 × 500 = ₹2,50,000; issue price 450 → cash ₹2,25,000; discount ₹25,000; premium on redemption 6% = ₹15,000; loss = ₹40,000.
2024 Apr 1: Bank A/c Dr. 2,25,000; To Debenture Application & Allotment A/c 2,25,000
Apr 1: Debenture Application & Allotment A/c Dr. 2,25,000; Loss on Issue of Debentures A/c Dr. 40,000; To 9% Debentures A/c 2,50,000; To Premium on Redemption of Debentures A/c 15,000
2025 Mar 31: Securities Premium A/c Dr. 30,000; Statement of Profit and Loss Dr. 10,000; To Loss on Issue of Debentures A/c 40,000
\[\begin{array}{|l|r|l|r|}\hline \text{Dr} & \text{₹} & \text{Cr} & \text{₹}\\\hline \text{To 9\% Debentures A/c} & \text{25,000} & \text{By Securities Premium A/c} & \text{30,000}\\ \text{To Premium on Redemption A/c} & \text{15,000} & \text{By Statement of P\&L} & \text{10,000}\\\hline & \text{40,000} & & \text{40,000}\\\hline\end{array}\]
Rule: loss on issue is written off first from Securities Premium, the balance from the Statement of Profit and Loss.

(i) Average profit = (4,75,000 + 4,05,000 + 3,20,000)/3 = 12,00,000/3 = ₹4,00,000
Goodwill = 4,00,000 × 4 = ₹16,00,000; Hina's share = 16,00,000 × 2/10 = ₹3,20,000
(ii) 1 April to 1 July = 3 months. Share = 3,20,000 × 2/10 × 3/12 = ₹16,000
(iii) Gaining ratio = old ratio of remaining partners 5 : 3.
Kiran's Capital A/c Dr. 2,00,000; Raveena's Capital A/c Dr. 1,20,000; To Hina's Capital A/c 3,20,000 (Hina's share of goodwill adjusted in gaining ratio)
Profit and Loss Suspense A/c Dr. 16,000; To Hina's Capital A/c 16,000 (Hina's profit share till death)

Stock realised = 2,50,000 × 80% = ₹2,00,000. Expenses ₹7,500 are Ravneet's own – the firm records only his commission ₹9,000.
Realisation Account:
\[\begin{array}{|l|r|l|r|}\hline \text{Dr} & \text{₹} & \text{Cr} & \text{₹}\\\hline \text{To Stock} & \text{2,50,000} & \text{By Creditors} & \text{4,50,000}\\ \text{To Debtors} & \text{2,00,000} & \text{By Bank: P\&M} & \text{4,87,000}\\ \text{To Plant \& Machinery} & \text{5,50,000} & \text{By Bank: Stock} & \text{2,00,000}\\ \text{To Bank (creditors paid)} & \text{4,50,000} & \text{By Bank: Debtors} & \text{1,40,000}\\ \text{To Ravneet's Capital (commission)} & \text{9,000} & \text{By Loss: Ravneet 1,27,400} & \\ & & \quad\text{Manmeet 54,600} & \text{1,82,000}\\\hline & \text{14,59,000} & & \text{14,59,000}\\\hline\end{array}\]
Loss = 14,59,000 − 12,77,000 = ₹1,82,000 shared 7 : 3.
Capital Accounts:
Ravneet: 5,00,000 + 9,000 (commission) − 1,27,400 (loss) = ₹3,81,600 paid by bank
Manmeet: 3,00,000 − 54,600 = ₹2,45,400 paid by bank
Check: Bank = 2,50,000 + 8,27,000 − 4,50,000 = ₹6,27,000 = 3,81,600 + 2,45,400.

Allotted to 3,60,000 applicants → 3,00,000 shares (ratio 6 : 5). Call = ₹12 (capital 8 + premium 4).
(1) Bank A/c Dr. 16,00,000; To Equity Share Application & Allotment A/c 16,00,000 (4,00,000 × 4)
(2) Equity Share Application & Allotment A/c Dr. 16,00,000; To Equity Share Capital A/c 6,00,000; To Securities Premium A/c 6,00,000; To Calls in Advance A/c 2,40,000; To Bank A/c 1,60,000
(Excess = 60,000 shares × 4 = 2,40,000; refund = 40,000 × 4 = 1,60,000)
(3) Equity Share First & Final Call A/c Dr. 36,00,000; To Equity Share Capital A/c 24,00,000; To Securities Premium A/c 12,00,000
(4) Jain: applied 3,600 → allotted 3,000; paid 14,400, needed 12,000 → excess 2,400; call due 36,000 → arrears 33,600.
Bank A/c Dr. 33,26,400; Calls in Arrears A/c Dr. 33,600; Calls in Advance A/c Dr. 2,40,000; To Equity Share First & Final Call A/c 36,00,000
(5) Equity Share Capital A/c Dr. 30,000; Securities Premium A/c Dr. 12,000; To Share Forfeiture A/c 8,400; To Calls in Arrears A/c 33,600
(Forfeiture = capital received 3,000 × 2 = 6,000 + excess 2,400 already applied to the call.)
Common mistake: forgetting to debit the unpaid premium (3,000 × 4) on forfeiture.

(i) Forfeited per share = ₹8 → 3,000 × 8 = 24,000.
Share Capital A/c Dr. 30,000; To Share Forfeiture A/c 24,000; To Share Final Call A/c 6,000
Forfeiture on 600 shares = 4,800; capital reserve 4,200 → discount allowed = 600 → reissue price ₹9.
Bank A/c Dr. 5,400; Share Forfeiture A/c Dr. 600; To Share Capital A/c 6,000
Share Forfeiture A/c Dr. 4,200; To Capital Reserve A/c 4,200
(ii) Total payable 110 = application ? + allotment 60 + call 20 → application ₹30 (all capital). Called up = ₹80 capital.
Equity Share Capital A/c Dr. 1,60,000; Securities Premium A/c Dr. 20,000; To Share Forfeiture A/c 60,000; To Equity Share Allotment A/c 1,20,000
Bank A/c Dr. 1,40,000; Share Forfeiture A/c Dr. 60,000; To Equity Share Capital A/c 2,00,000
The whole forfeiture (₹30 × 2,000) is used as discount (₹30 per share), so nothing goes to capital reserve.

Sacrifice: Sanjay 4/7 − 3/10 = 19/70; Vijay 3/7 − 3/10 = 9/70 → 19 : 9.
Average profit = (16,500 + 17,500 + 18,500)/3 = ₹17,500; goodwill = 70,000; Babul's share = 2/5 × 70,000 = ₹28,000.
Babul's capital = (3,50,000 + 2,50,000) × 5/3 × 2/5 = ₹4,00,000.
Entries:
1. Bank A/c Dr. 28,000; To Premium for Goodwill A/c 28,000
2. Premium for Goodwill A/c Dr. 28,000; To Sanjay's Capital 19,000; To Vijay's Capital 9,000
3. Sanjay's Capital Dr. 9,500; Vijay's Capital Dr. 4,500; To Bank 14,000 (half withdrawn)
4. Sanjay's Capital Dr. 40,000; Vijay's Capital Dr. 30,000; To Revaluation A/c 70,000 (loss in 4 : 3)
5. General Reserve A/c Dr. 28,000; To Sanjay's Capital 16,000; To Vijay's Capital 12,000
6. Bank A/c Dr. 4,00,000; To Babul's Capital A/c 4,00,000
Common mistake: sharing the premium in the old ratio – it goes in the sacrificing ratio 19 : 9.

Gaining ratio (new ratio not given) = Divij : Shilpa = 1 : 2 → Divij pays 30,000, Shilpa 60,000 of goodwill.
Revaluation gain 25,000 in 2 : 1 : 2 → 10,000; 5,000; 10,000.
Capital accounts:
Anuj: 3,00,000 + 30,000 + 60,000 (goodwill) + 10,000 = ₹4,00,000 → transferred to Anuj's Loan A/c
Divij: 4,00,000 + 5,000 − 30,000 = ₹3,75,000 (balance c/d)
Shilpa: 5,00,000 + 10,000 − 60,000 = ₹4,50,000 (balance c/d)
Anuj's Loan Account:
\[\begin{array}{|l|l|r|}\hline \text{Date} & \text{Particulars} & \text{₹}\\\hline \text{31.3.2023} & \text{By Anuj's Capital} & \text{4,00,000}\\ \text{31.3.2024} & \text{By Interest (12\% on 4,00,000)} & \text{48,000}\\ \text{31.3.2024} & \text{To Bank (2,00,000 + 48,000)} & \text{2,48,000}\\ \text{31.3.2024} & \text{To Balance c/d} & \text{2,00,000}\\ \text{31.3.2025} & \text{By Interest (12\% on 2,00,000)} & \text{24,000}\\ \text{31.3.2025} & \text{To Bank (2,00,000 + 24,000)} & \text{2,24,000}\\\hline\end{array}\]

(i) Nominal (authorised) capital = 3,00,000 × 10 = ₹30,00,000.
(ii) Issued capital = shares offered 90,000 × 10 = ₹9,00,000.
(iii) After forfeiting 7,000 shares, 83,000 shares remain, all fully paid → ₹8,30,000.
(v) Forfeiture = amount received on forfeited shares: Aditi 4,000 × 2 = 8,000; Rohit 3,000 × 7 = 21,000 → ₹29,000.
(iv) Share Capital in the balance sheet = 8,30,000 + 29,000 (forfeited shares account) = ₹8,59,000.
(vi) All calls on remaining shares are paid, so subscribed but not fully paid = Nil.

This is the textbook meaning of analysis of financial statements (financial analysis). Comparative, common-size and cash-flow analysis are only tools of it.

Liquidity ratios (current ratio, quick ratio) measure the ability to meet obligations as they become due, i.e. short-term solvency. Solvency ratios look at long-term ability to repay; activity ratios at efficiency; profitability ratios at earnings. (Answer as per the CBSE marking scheme.)

Encryption turns readable data into a coded form that only an authorised user with the key can turn back.
So encryption is essentially the codification of data; the official marking scheme gives (D) Codification.

The official CBSE marking scheme accepts (C) 275.

GP ratio = Gross profit ÷ Revenue from operations × 100.
Selling goods costing 50,000 for 60,000 adds 60,000 to revenue and 10,000 to gross profit (16.67% margin) – this changes the existing ratio.
Purchases or goods withdrawn change purchases/closing stock but not the gross profit earned on sales, so the ratio is not affected (as per the marking scheme).

The Formulas tab has the groups Function Library, Defined Names, Formula Auditing and Calculation. Page Layout is a separate ribbon tab.

Highly liquid short-term investments (maturity of 3 months or less) are cash equivalents. Moving money from cash into cash equivalents is only a change within 'cash and cash equivalents', so it is not a cash flow.

Paying suppliers, employees and insurance premium are routine operating outflows. Purchase of marketable securities is not an operating activity – such securities are investments/cash equivalents.

#NAME? appears when Excel does not recognise text in a formula. #DIV/0! = division by zero; #N/A = value not available; #NULL! = intersection of ranges that do not intersect.

Non-financial enterprise: interest/dividend received → investing activity (not financing). Financial enterprise: they are its main business → operating activity (not investing). So both statements are false.

A value typed directly into a cell is a basic (constant) value; a value that results from a formula, expression or function is a derived value.

range_lookup = FALSE (or 0) forces an exact match; TRUE or omitted gives an approximate match (data must be sorted).

\[\begin{array}{|l|l|l|}\hline \text{Item} & \text{Major head} & \text{Sub-head}\\\hline \text{Stores and spare parts} & \text{Current Assets} & \text{Inventories}\\ \text{Livestock} & \text{Non-current Assets} & \text{Property, Plant \& Equipment and Intangible Assets}\\ \text{Public deposits} & \text{Non-current Liabilities} & \text{Long-term Borrowings}\\\hline\end{array}\]
½ mark each for the major head and the sub-head.

Advantages (any three, ½ each):
1. Reports and information are generated quickly in the required format.
2. Records are kept efficiently and accurately.
3. Effective control over the accounting system.
4. Economical processing of accounting data.
5. Confidentiality of data through passwords.
Limitations (any three, ½ each):
1. Technology becomes obsolete fast, so fresh investment is needed often.
2. Data may be lost or corrupted due to power interruption or system failure.
3. Data is exposed to hacking.
4. Reports that are not programmed cannot be produced.

% change = Absolute change ÷ Previous year × 100.
\[\begin{array}{|l|r|r|r|r|}\hline \text{Particulars} & \text{2024} & \text{2025} & \text{Change} & \text{\%}\\\hline \text{Share Capital} & \text{20,00,000} & \text{24,00,000} & \text{4,00,000} & \text{20}\\ \text{Long-term borrowings} & \text{10,00,000} & \text{12,00,000} & \text{2,00,000} & \text{20}\\ \text{Trade payables} & \text{5,00,000} & \text{6,00,000} & \text{1,00,000} & \text{20}\\ \text{Total} & \text{35,00,000} & \text{42,00,000} & \text{7,00,000} & \text{20}\\\hline \text{PPE \& Intangibles} & \text{25,00,000} & \text{30,00,000} & \text{5,00,000} & \text{20}\\ \text{Inventories} & \text{4,00,000} & \text{2,00,000} & \text{(2,00,000)} & \text{(50)}\\ \text{Cash \& cash equivalents} & \text{6,00,000} & \text{10,00,000} & \text{4,00,000} & \text{66.67}\\ \text{Total} & \text{35,00,000} & \text{42,00,000} & \text{7,00,000} & \text{20}\\\hline\end{array}\]
Keep the I. Equity and Liabilities / II. Assets headings of Schedule III in the statement.

Meaning (2 marks): A radar chart plots data series on axes that start from a common central point; it shows multivariate data (three or more quantitative variables), and each data series gets its own colour or pattern, forming a web-like shape.
Purpose (1 mark): It is used to compare values – especially to spot the highest and lowest values – across several variables and series at a glance.

(i) Current assets = Total assets − Non-current assets = 6,00,000 − 5,20,000 = ₹80,000
Current liabilities = Total (equity + liabilities) − Non-current liabilities − Shareholders' funds = 6,00,000 − 1,40,000 − 4,20,000 = ₹40,000
Current ratio = 80,000 ÷ 40,000 = 2 : 1
(ii) Debt = Non-current liabilities = ₹1,40,000
Capital employed = Shareholders' funds + Debt = 4,20,000 + 1,40,000 = ₹5,60,000 (or Non-current assets + Current assets − Current liabilities)
Debt to capital employed = 1,40,000 ÷ 5,60,000 = 0.25 : 1 (1 : 4)

Debt (long-term) = 8,00,000 + 80,000 + 1,20,000 = ₹10,00,000
Equity = 24,00,000 + 6,00,000 = ₹30,00,000
(i) Debt-Equity = 10,00,000 ÷ 30,00,000 = 1 : 3 = 0.33 : 1
(ii) Total assets = 36,00,000 + 14,00,000 = ₹50,00,000
Total assets to debt = 50,00,000 ÷ 10,00,000 = 5 : 1
(The marking scheme also accepts debt taken as only borrowings + provisions = ₹9,20,000, giving 0.31 : 1 and 5.43 : 1.)

Any two, 2 marks each:
1. Password security – only authorised users can open the data; it protects integrity of data; passwords are stored in coded (encrypted) form; it is a widely used method.
2. Data audit – gives administrator rights to control access; prevents unauthorised access; helps audit and correct data; shows every entry with the user's name and the date/time of any change, so alterations can be traced.
3. Data vault – an extra layer of password protection for stored data; preserves the original information; its password is hard to break; some software also encrypts the data.

Name: Pivot Table (1 mark).
It is designed for (any three, 1 mark each):
1. Querying large data in user-friendly ways.
2. Creating custom calculations and formulas on subtotals.
3. Expanding and collapsing levels of data to focus on results and drill into details.
4. Moving rows to columns and columns to rows (pivoting) to see different summaries.
5. Filtering, sorting, grouping and conditionally formatting the most useful subset of data.
6. Presenting concise, attractive and annotated online or printed reports.

Net profit before tax = 4,00,000 + 1,50,000 (transfer to reserve) = ₹5,50,000
\[\begin{array}{|l|r|}\hline \text{Particulars} & \text{₹}\\\hline \text{Net profit before tax} & \text{5,50,000}\\ \text{Add: Depreciation} & \text{75,000}\\ \text{Add: Goodwill written off} & \text{80,000}\\ \text{Less: Gain on sale of machinery} & \text{(5,000)}\\ \text{Operating profit before WC changes} & \text{7,00,000}\\ \text{Add: Increase in trade payables} & \text{30,000}\\ \text{Less: Increase in trade receivables} & \text{(40,000)}\\ \text{Less: Increase in prepaid expenses} & \text{(2,000)}\\ \text{Less: Decrease in outstanding wages} & \text{(20,000)}\\\hline \text{Cash from operating activities} & \text{6,68,000}\\\hline\end{array}\]
Gain on sale of machinery (95,000 − 90,000) is an investing item, so it is removed from profit.

1. Text layout – Vertical alignment sets the vertical position of text (top/middle/bottom); Text direction sets the orientation (horizontal, rotated, stacked).
2. Autofit – 'resize shape to fit text' enlarges the cell/shape vertically so all text fits.
3. Internal margin – the gap between text and border, set separately as Left, Right, Top and Bottom; Columns sets the number of text columns and spacing.
Steps: select the range → Home tab → Alignment group (dialog launcher) → Alignment tab → choose Horizontal and Vertical alignment; optionally set an angle (orientation), Wrap text, Shrink to fit or Merge cells → OK.