CLASS XII ACCOUNTANCY HOLIDAY HOMEWORK QUESTIONS

A) Read the hypothetical text and answer the following questions.

Mahesh, Dinesh and Suresh are equal partners with capitals of ₹ 5,00,000, ₹ 3,00,000
and ₹ 2,00,000 respectively. Mahesh withdrew ₹ 60,000 in the beginning of each quarter
for the year ended 31st March, 2020. Dinesh withdrew ₹ 60,000 at the end of each
quarter for the year ended 31st March,2020. Suresh withdrew ₹ 90,000 in the middle of
each quarter for the year ended 31st March,2020. Interest on drawings is charged @ 10%
p.a.
Q1. What is the total amount of drawings of all the partners?
a) ₹ 9,00,000 b) ₹ 8,40,000 c) ₹ 8,60,000 d) ₹ 9,20,000
Q2. What is the average period of Dinesh’s drawings?
a) 4.5 months b) 6 months c) 7.5 months d) 12 months
Q3. Mahesh’s interest on drawings is………………………….
a) ₹ 12,000 b) ₹ 13,500 c) ₹ 10,000 d) ₹ 15,000
Q4. What is the total amount of interest on drawings of all the partners?
a) ₹ 42,000 b) ₹ 40,000 c) ₹ 45,000 d) ₹ 48,00
B) Read the hypothetical text and answer the following questions .
Amar, Saleem and John are partners without a Partnership Deed. On 1st April, 2020, their
capitals were ₹ 3,00,000, ₹ 2,00,000 and ₹ 1,00,000 respectively. During the year, they
withdrew ₹ 30,000, ₹ 20,000 and ₹ 10,000 respectively. On 1st October, 2020, Saleem gave
a loan of ₹ 50,000 to the firm and demands interest on loan @ 10% p.a. for the year ended
31st March, 2021. John wants to admit a new partner, Vinod but Amar and Saleem do not
agree for it. Amar demands a salary of ₹ 1,000 p.m. for the year for taking part in business of
the firm. For the year ended 31st March, 2021, the firm earned a profit of ₹ 60,000.
Q1. Interest on Saleem’s loan is ……………………… a) ₹ 5,000 b) ₹ 2,500 c) ₹ 3,000 d)
₹ 1,500
Q2. Find the amount to be given to Amar as salary.
a) ₹ 10,000 b) ₹ 12,000 c) ₹ 9,000 d) No salary will be
given
Q3. What is the distributable profit for each partner?
a) ₹ 20,000 each b) ₹ 19,500 each c) ₹ 30,000, ₹ 20,000, and ₹ 10,000
d) ₹ 30,000, ₹ 15,000 and ₹ 15,000
Q4. Vinod can be admitted as a new partner in the firm when…………………….
a) John agrees to admit him as a new partner.
b) John and Saleem agree to admit him as a new partner.
c) All the existing partners agree to admit him as a new partner.
d) There is no need of other partners’ consent.
C) Read the hypothetical text and answer the following questions. :
M, N and O entered into partnership firm on 1st July, 2018 and decided to share profits and
losses in the ratio of [Link]. M guaranteed that O’s share of profit after charging interest on
capitals @ 6% p.a. would not be less than ₹ 36,000 p.a. The capital contributed by M: ₹
2,00,000, N: ₹ 1,00,000 and O: ₹ 1,00,000 respectively. Profit for the year ended 31st
March, 2019 was ₹ 1,38,000.
Q1. What is the total amount of interest on capital?
a) ₹ 9,000 b) ₹ 12,000 c) ₹ 18,000 d) ₹ 24,000
Q2. What is the distributable amount of profit?
a) ₹ 1,00,000 b) ₹ 1,20,000 c) ₹ 1,10,000 d) ₹ 90,000
Q3. What is the share of profit of O? a) ₹ 27,000 b) ₹ 36,000 c) ₹ 18,000 d) ₹ 9,000
Q4. What is deficiency amount to be borne by M?
a) ₹ 16,000 b) ₹ 7,000 c) 12,000 d) ₹ 15,000

D) Varun and Vivek were partners in a firm sharing profits in the ratio of 3:2. The balance
in their capital and current accounts as on 1 st April, 2022 were as under: Particulars
Varun(₹) Vivek(₹) Capital accounts Current accounts 3,00,000 (Cr.) 1,00,000 (Cr.)
2,00,000 (Cr.) 28,000 (Dr) The partnership deed provided that Varun was to be paid a
salary of ₹ 5,000 p.m. whereas Vivek was to get a commission of ₹ 30,000 for the year.
Interest on capital was to be allowed @ 8% p.a. whereas interest on drawings was to be
charged @ 6% p.a. The drawings of Varun were ₹ 3,000 at the beginning of each
quarter while Vivek withdrew ₹ 30,000 on 1 st September, 2022. The net profit of the
firm for the year, 2022-23, before making the above adjustments was ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account and Partners' Capital and Current
Accounts
E) X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April,
2018, they decided to share profits and losses equally. The profit and loss account
showed adebit balance of ₹10,000. The Partnership Deed provides that in the event of
any change in the profit-sharing ratio, the goodwill should be valued at two years'
purchase of the average profit of the preceding five years ₹ The profits and losses of the
preceding years ended 31st March, are:

Year 2013-14 2014-15 2015-16 2016-17 2017-18

Profits (₹) 70,000 85,000 45,000 35,000 10,000
(Loss)

Answer the following questions:

i Change in the existing agreement of profit sharing ratio is considered as
(a) Reconstitution of a partnership firm (b) Revaluation of a partnership firm
 (c) Dissolution of a partnership firm (d) None of the above
ii State the ratio in which the partners share the accumulated profits when there is a
change in the profit sharing ratio amongst existing partners
(a) Old ratio (b) New ratio (c) Equal ratio (d) Sacrificing ratio
iii How is the sacrificing ratio determined?
(a) Old ratio – New ratio (b) New ratio – old ratio (c) Old ratio + New ratio (d) None of the
above
iv) What is the amount of Goodwill credited to X Capital A/c?
(a) ₹ 15,000 (b) ₹ 90,000 (c) ₹ 12,000 (d) ₹ 3,000

F) Chabi and Tanya were partners sharing Profit and Losses in 3 : 2 with affect from 1st
April 2021, they decided to share future profits equally.
Answer the following questions:
On that date, following journal entry was passed by the firm
Chabi’s Capital A/c Dr. 30,000
To Tanya’s Capital A/c 30,000
Which of the following balance was existing in the books of the firm on the date of
reconstitution?
(a) Contingency Reserve ₹ 3,00,000
(b) Profit and Loss (Dr.) Balance ₹ 3,00,000
(c) Profit and Loss (Cr.) Balance ₹ 3,00,000
(d) Advertisement Suspense Account ₹ 2,00,000
G) Rahul and Modi are two partners into a firm sharing profits equally . On 1st January ,
2020, they decided to admit Vikas as a new partner into the firm for 1/5th share. Vikas brings
Rs 10,00,000 for his share to capital and premium of goodwill in cash . Half goodwill is
withdrew by the old partners. Goodwill of the firm is valued on the basis of one year
purchase of profits or losses of preceding last 3 yea₹ Profits of last four years are Rs 6,00,000
in 2016; Rs 7,00,000 in 2017; Rs 8,00,000 in 2018 and Rs 15,00,000 in 2019.
1. What was the value of goodwill of the firm?
(a)Rs 7,00,000 (b) Rs 8,00,000 (c) Rs 9,00,000 (d) Rs 10,00,000
2. What was the amount of capital brought in by Vikas?
(a) Rs 2,00,000 (b) Rs 8,00,000 (c) Rs 10,00,000 (d) Can’t be determined
3. What was the goodwill share given to Modi?
(a) Rs 1,00,000 (b) Rs 2,00,000 (c) Rs 4,00,000 (d) Can’t be determined
4. Which account is debited when the goodwill is withdrawn by partners?
(a) goodwill a/c (b) premium for goodwill a/c (c) partner’s capital a/c (d) cash/bank a/c

H) Read the following text and answer the following Rekha, Sunita and Teena are doing
paper business in Ludhiyana. They used to share profits in the ratio of [Link]. They
decided to provide note books to students of rural area at free of cost. Sunitha wants to
admit her friend Samiksha in their firm. All others are agreed with Sunitha and Rekha
 surrenders 1/4th of her share; Sunita surrenders 1/3rd of her share and Teena 1/5th of her
share in favour of Samiksha. Samiksha brought ₹ 50,000 as capital and ₹ 20000 as
goodwill. In the old partners’ balance sheet there was an existing goodwill ₹25,000.
There was an Investment fluctuation Reserve of ₹15000 and investment (book value)
₹30,000. At the time of admission of Samiksha all assets are revalued and liabilities are
reassessed and found that market value of investment is ₹25,000
1. What will be the new ratio?
a) [Link] b) [Link] c) [Link] d) [Link]
2. What will be the ratio of Samiksha?
a)3/12 b)6/12 c)97/360 d)45/ 150
3. What will be the journal entry for existing goodwill?
4. What will be the treatment of Investment Fluctuation Reserve? Pass Journal Entry.
I) DIRECTION: Analyses the following case study and answer the questions 1 to 4 the basis
of the same. R and S are partners in a firm sharing profits in the ratio of 3:2 they admit T as
new partner the new profit sharing ratio of R, S and T will be [Link] T contributed the
following assets towards his capital and for his share of Goodwill. Stock ₹ 1,67,000 debtors
₹1,40,000 (Less Provision for doubtful debts of 5%) and land ₹ 1,00,000 Plant &
Machinery ₹1,80,000. On the date of admission of T, the Goodwill of the firm was valued
at ₹13,00,000.
1. What could be the purpose of admitting T in the firm?
(a) Acquiring additional managerial skills (b) Procuring additional capital (c) Enhancing
efficiency of operations (d) None of the above
2. What was the amount of capital brought in by T?
(a) ₹ 5,80,000 (b) ₹ 3,00,000 (c) ₹ 2,85,000 (d) ₹ 2,80,000
3. What is the sacrificing ratio of R and S? (a) 2:3 (b) 3:2 (c) 1:1 (d) None of the above
4. What share of goodwill did R get? (a) ₹ 6,50,000 (b) ₹ 1,50,000 (c) ₹ 2,80,000 (d)
None of these
I) READ THE FOLLOWING TEXT AND ANSWER THE QUESTIONS:
A MBA graduate from IIT Kharagpur instead of going to America and Canada decided
to become an entrepreneur in India and decided to start a Public Limited Company in
the city of Kolkota. After preparing the Memorandum of Association for the company
he got the permission from the Comptroller of Capital Issues to issue 1,00,000 Equity
shares of ₹10 each at a premium of ₹2. The pubic subscribed for 95000 applications.
The company decided to allot the shares on 1- 4-2021. The company made all the calls
and all the money is received except 2000 shares which are forfeited and later on
reissued at ₹9 per share fully paid up.

Q ) Minimum subscription amount of 90% is related to which share capital.

a. Authorised capital b. Issued capital
 c. Paid up capital d. Reserve capital

Q2) As per SEBI guidelines, Application money should not be less than ……. Of
the issue price of each share
a. 10% of the issue price b. 15% of the issue price
c. 25% of the issue price d. 50% of the issue price

Q3) Which clause in the Memorandum of Association states about Authorized

capital of the company?
a. Name clause b. Object clause
c. Capital clause d. Association clause

Q4) . If the shares are forfeited how much money should be returned to the
defaulting shareholders?
a. Nothing b. All calls paid
c. Only application money d. Application and allotment money.

J) Sun and Kiran are partners sharing profits and losses equally. They decided to
dissolve their firm. Assets and Liabilities have been transferred to Realisation
Account. Pass necessary Journal entries for the following:

a) All partners are agreed that the process of realisation at the time dissolution will be
accomplished by Sun for which he will be paid ₹10,000 along with the amount of
expense which amounted to 2% of total value realised from the Assets on dissolution.
Some assets were sold for Cash at a cumulative Value of ₹12,00,000 and the remaining
were taken over by creditors at a valuation of ₹3,00,000.
b) Deferred Advertisement Expenditure A/c appeared in the books at ₹28,000.
c) Out of the Stock of ₹1,20,000; Kiran (a partner) took over 1/3 of the stock at a
discount of 25% and 50% of remaining stock was took over by a Creditor of ₹30,000 in
full settlement of his claim. Balance amount of stock realized at ₹25,000.
d) An outstanding bill for repairs and renewal of₹3,000 was settled through an
unrecorded asset which was valued at ₹10,000. Balance being settled in Cash.
K) Pass entries for forfeiture and re-issue in both the following cases.
(a) Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-
payment of allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Only
application money of ₹ 3 was paid by him. Out of these 3,000 shares were re-issued @ ₹ 12
per share as fully paid.
(b) Ratan Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-payment
of first call of ₹ 2 per share. Final call of ₹ 3 per share was not yet made. Out of these 2,000
shares were re-issued at ₹ 10 per share as fully paid.
L) A company forfeited certain number of shares of Face Value ₹ 10 each, for
nonpayment of final call money of ₹ 4. These shares were reissued at a discount of ₹ 5
and amount of ₹ 4500 was transferred to capital Reserve account. Pass the necessary
journal entries to show the above transactions and prepare Share forfeited account.
M) a) Pass the necessary journal entries for 'Issue of Debenture' for the following:
i. Arman Ltd. issued 750, 12% Debentures of ₹100 each at a discount of 10% redeemable at a
premium of 5%.
ii. Sohan Ltd. issued 800, 9% Debentures of ₹100 each at a premium of 20 per debenture
redeemable at a premium of ₹10 per Debenture.
b) X Ltd. obtained a loan of ₹4,00,000 from IDBI Bank. The company issued 5,000 9%.
Debentures of ₹100 each as a collateral security for the same. Show how these items
will be presented in the Balance Sheet of the company.
N) Assertion (A): It is considered desirable to have a partnership deed in writing
Reason (R): It helps in settling any disputes with regard to the terms of partnership and act
as an evidence in the court of law.
Both A and R are true and R is the correct explanation of A
b) Both A and R are true and R is not the correct explanation of A
c) A is true , but R is false
d) A is false , but R is true
O) Assertion (A): The amount of premium brought in by the new partner is shared by the
existing partners in their ratio of Sacrifice.
Reason (R): Because the old partners sacrifice their share of profits in favour of new partner.
a) Both Assertion (A) and Reason (R) are true.
b) Both Assertion (A) and Reason (R) are false.
c) Assertion (A) is true and Reason (R) is false.
d) Assertion (A) is false and Reason (R) is true.
P) Assertion (A): Change in profit sharing ratio does not change the relationship among the
existing partners.
Reason (R): Change in profit sharing ratio leads to dissolution of partnership.
a. Both A and R are correct and R is the correct explanation of A.
b. Both A and R are correct but R is not the correct explanation of A.
c. A is correct but R is wrong d. A is wrong but R is correct.

Q) X, Y and Z were partners sharing profits and losses equally. Y died on 1st October,
2023 and total amount transferred to Y’s executors was ₹ 15,60,000. Y’s executors were
being paid ₹ 3,60,000 immediately and balance was to be paid in four equal quarterly
instalments, together with Interest @ 6% p.a. Pass entries till payment of first two 4
instalments.