ISC Accounts Answer Key 2025 (Available): Detailed Exam Analysis

10 (i) Shiv, Ravi and Roshan are partners in a firm following the fixed capital method. During the year 2023-24, Shiv withdrew & 15,000 in the middle of each half year, Ravi withdrew 20,000 to pay for premium of his life insurance policy. Roshan withdrew 12,000 from his capital. What is the interest on drawings charged from the partners at the end of the year, if the rate of interest on drawings mentioned in the partnership deed is 6% per annum?

Shiv- INR 900
Ravi- Nil
Roshan- INR 360

10 (ii) To value the goodwill of a partnership firm at the time of its reconstitution, which one of the following items is added back to the previous year's profit to find the normal profit?

Undervaluation of closing stock

10 (iii) Read the following news item regarding issue of shares by TVS Supply Chain and answer the question that follows:

TVS Supply Chain IPO
subscribed 2.8 times

Which of the following options can TVS Supply Chain avail to deal with its over-subscribed shares?
P: Reject all the over-subscribed shares and refund the excess application money.
Q: Allot all shares applied for on a pro-rata basis.
R: Allot all shares applied for.
S: Allot in full to some applicants, allot shares on a pro-rata basis to a few applicants and refund the application money to some applicants.

P, Q and S

10 (iv) Premium on redemption of debenture is debited to:

Loss on issue of Debenture Account

10 (v) Assertion: A partnership firm is said to maintain its accounts by the fixed capital account method when it has a separate capital account and current account for every partner.
Reason: A fixed capital account method is maintained to ensure that the balance in the current account of any partner is not overdrawn at any point of time.

Which one of the following is correct?

(a) Both Assertion and Reason are true and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are true but Reason is not the correct explanation for Assertion.
(c) Assertion is true and Reason is false.
(d) Both Assertion and Reason are false.

Both Assertion and Reason are true but Reason is not the correct explanation for Assertion.

10 (vi) What does a new partner acquire by contributing his share to the self-generated goodwill of the firm?

Share in future profits of the firm

10 (vii) At the time of dissolution of a partnership firm on 31 March, 2024, its Bills Payable of ₹ 42,000 due to be paid on 31 July 2024, was settled at a rebate of ₹ 350. Calculate the per annum percentage of rebate at which the Bills Payable was settled.

2.5%

10 (viii) At the time of the dissolution of the partnership firm of Sanjay and Mitali, its Balance Sheet showed Deferred Revenue Expenditure of ₹ 30,000. Give the Journal entry to treat this item.

Partners’ Capital A/c (individually) Dr.
To Fictitious Asset A/c