ACCOUNTANCY (055)

CLASS XII (2024–25)

SAMPLE QUESTION PAPER

TIME 3 HOURS MAX. MARKS 80

GENERAL INSTRUCTIONS:

1. This question paper contains 34 questions. All questions are compulsory.

2. Question 1 to 16 and 27 to 30 carries 1 mark each.

3. Questions 17 to 20, 31and 32 carries 3 marks each.

4. Questions from 21 ,22 and 33 carries 4 marks each

5. Questions from 23 to 26 and 34 carries 6 marks each

6. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2
questions of three marks, 1 question of four marks and 2 questions of six marks.

PART A (Accounting for Partnership Firms and Companies)

1. Aditya and Shiv were partners in a firm with capitals of ₹ 3,00,000 and ₹ 2,00,000, respectively. Naina was
admitted as a new partner th share in the profits of the firm. Naina brought ₹ 1,20,000 for her share of goodwill
premium and ₹ 2,40,000 for her capital. The amount of goodwill premium credited to Aditya will be:

A. ₹ 30,000 B. ₹ 72,000

C. ₹ 40,000 D. ₹ 60,000

2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. Reasoning: In case of Fixed
capitals all the transactions other than Capital are done through Current account of the partner.

A. Both A and R are true and R is the correct explanation of A.

B. Both A and R are true but R is not the correct explanation of A.

C. A is true but R is false

D. A is false but R is true

3. Forfeiture of shares leads to reduction of _________________Capital.

A. Authorised

B. Issued

C. Subscribed

D. Called up

4. Moon ltd. issued 40,000, 10% debentures of ₹100 each at certain rate of discount and were to be redeemed
at20% premium. Exiting balance of Securities premium before issuing of these debentures was ₹12,00,000 and
after writing off loss on issue of debentures, the balance in Securities Premium was ₹2,00,000. At what rate of
discount these debentures were issued?
 A. 10% B. 5%

C. 25% D. 15%

5. The business of a partnership concern may be carried on by all the partners, or any of them acting for all. The
above statement highlights which of the following features of partnership?

A. Business B. Sharing of profit

C. Agreement D. Mutual Agency

6. Maira Ltd. took over assets of ₹ 12,00,000 and liabilities of ₹ 4,00,000 of Subav Ltd. for an agreed purchase
consideration of ₹ 9,00,000. The amount was payable by issue of 11% debentures of ₹ 100 each at 10% discount.
The number of debentures issued will be:

A. 8,000 B. 9,000

C. 10,000 D. 11,000

7. Ram and Shyam were partners sharing profits and losses in the ratio of 3:2. Their balance sheet shows building
at ₹ 1,60,000. They admitted Mohan as a new partner for 1/4th share. In additional information it is given that
building is undervalued by 20%. The share of loss/gain of revaluation of Shyam is ____________ & current value
of building shown in new balance sheet is _______.

A. Gain ₹ 12,800, Value₹ 1,92,000 B. Loss ₹ 12,800, Value₹ 1,28,000

C. Gain ₹ 16,000, Value₹ 2,00,000 D. Gain ₹ 40,000, Value₹ 2,00,000 1

8. A company forfeited 6,000 shares of ₹ 10 each, on which only application money of ₹ 3 has been paid. 4,000
of these shares were re-issued at ₹ 12 per share as fully paid up. Amount of Capital Reserve will be _______.

A. ₹ 18,000 B. ₹ 12,000

C. ₹ 30,000 D. ₹ 24,000

9. Salary or Commission to a partner is an:

A. Appropriation cum charge B. Charge against profits

C. Asset D. Appropriation out of profits

10. In the Balance Sheet of a company, interest accrued and due on debentures is shown under the main head:

A. Reserves and Surplus B. Share Capital

C. Non-current Liabilities D. Current Liabilities

Question No. 11 to 12 are based on the given text. Read the text carefully and answer the questions:

P, Q and R are partners in a firm. Their capitals are ₹ 30,000, ₹ 20,000 and ₹ 10,000 respectively. As per
partnership deed,

i. R is to be allowed remuneration of ₹ 3,000 p.a.

 ii. Interest on capital @ 5% p.a.
iii. Profits should be distributed in the ratio of [Link].

Ignoring the above terms, net profit of ₹ 18,000 was distributed among the partners equally

11. How much interest on capital is to be credited to partner

A. ₹ 1,500 B. ₹ 1,000

C. ₹ 900 D. ₹ 800

12. How much profit is to be credited to Partner Q after all adjustments?

A. ₹ 1,000 B. ₹ 2,400

C. ₹ 4,800 D. ₹ 1,200

13. Shares issued as sweat equity can be:

(I) Issued at par.

(ii) Issued at discount.

(iii) Issued at a premium.

Which of the following is correct?

A. Only (i) is correct. B. Both (i) and (iii) are correct.

C. All are correct. D. Only (ii) is correct.

14. String and Kite were partners sharing profits and losses in the ratio 5:3. They admitted spinner as a new
partner. String sacrificed ¼ from his share and Kite sacrificed 1/6 of his share. What will be the new ratio?

A. [Link] B. [Link]

C. [Link] D. [Link]

15. In the absence of a partnership deed, the allowable rate of interest on partner’s loan account will be:

A. 6% p.a. Simple Interest B. 12% Compounded Annually

C. 6% Simple Interest D. 12% Simple Interest

16. In which circumstances partners’ can dissolve the firm without the interference of the court?

A. When business of the firm cannot be carried on except at a loss

B. Mutual Agreement

C. When a partner has become of unsound mind

D. When a partner is found guilty of breath of contract frequently

17. Rusting, a partner of a firm under dissolution was to get a remuneration 2% of the total assets realised other
than cash and 10% of the amount distributed to the partners. Sundry assets (including Cash ₹ 8,000) realised at
₹ 1,16,000 and sundry liabilities to be paid ₹ 31,340. Calculate Rusting’s remuneration and Show your workings
clearly. Also pass necessary journal entry for remuneration.

18. Z Ltd purchased machinery from K Ltd, Z Ltd, paid K Ltd as follows i. By issuing 5,000 equity shares of ₹ 10
each at a premium of 30%. ii. By issuing 1,000, 8% debentures of ₹ 100 each at a discount of 10%. iii. Balance by
giving a promissory note of ₹ 48,000 payable after two months. Pass necessary journal entries for the purchase
of machinery and payment to K Ltd in the books of Z Ltd.

19. Aman, Bobby and Chandani were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1
April, 2022 they decided to share profits equally. The revaluation of assets and re-assessment of liabilities
resulted in a loss of ₹ 5,000. The goodwill of the firm on its reconstitution was valued at ₹ 1,20,000. The firm had
a balance of ₹ 20,000 in General Reserve. Showing your workings clearly pass necessary journal entries on the
reconstitution of the firm.

20. D, E and F were partners in a firm sharing profits in the ratio of 5 : 7 : 8. Their fixed capitals on 1 April, 2022
were D - ₹ 5,00,000, E - ₹ 7,00,000 and F - ₹ 8,00,000. Their partnership Deed provided for the following: i.
Interest on capital @10% p.a. ii. Salary of ₹ 10,000 per month to F. iii. Interest on drawing @12% p.a. [3] st h D
withdrew ₹ 40,000 on 30 April, 2022; E withdrew ₹ 50,000 on 30th June 2022 and F withdrew ₹ 30,000 on 31
March, 2023. During the year ended 31 March, 2023 the firm earned a profit of ₹ 3,50,000. Prepare the Profit
and Loss Appropriation Account for the year ended 31 March, 2023.

21. A Company invited applications for 5,000 shares of ₹ 100 each. The amount is payable as follows:

On Application ₹ 20 per share

On Allotment ₹ 30 per share

On First Call ₹ 20 per share

On Second and Final Call ₹ 30 per share

Applications were received for 8,000 shares. Applications for 1,000 shares were rejected and pro-rata allotment
was made to the remaining applicants. All calls were made and duly paid except:

i. Govind, the holder of 200 shares paid the two calls with allotment.
ii. Sanjay, the holder of 300 shares failed to pay the first and second call money.

Pass necessary journal entries to record the above transactions.

22. 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 instalments.

23. 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.

24. X and Y are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet as at 31 March, 2023 was:

Liabilities Rs. Assets Rs.

Sundry Creditors 25,000 Cash / Bank 5,000
General Reserve 18,000 Sundry Debtors 15,000
Capital Accounts Stock 10,000
X 75,000 Investment 8,000
Y 62,000 1,37,000 Printer 5000
Fixed Assets 1,37,000
1,80,000 1,80,000

They admit Z into partnership on 1st April, 2023 on the following terms:

i. Z brings in ₹ 40,000 as his capital and he is given 1/4th share in profits.

ii. Z brings in ₹ 15,000 for goodwill, half of which is withdrawn by old partners.
iii. Investments are valued at ₹ 10,000. X takes over Investments at this value.
iv. Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%.
v. An unrecorded stock on 31 March, 2023 is ₹ 1,000.
vi. By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to
that of Z on their profit-sharing basis.

Pass Journal entries, prepare Revaluation Account, Capital Accounts and new Balance Sheet of the firm.

25. Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of [Link]. On 31st March,
2019, their balance sheet was as follows:

Balance Sheet of Gita, Radha & Garv as on 31st March, 2019

Amount Amount
Liabilities (Rs.) Assets (Rs.)
Sundry Creditors 60,000 Cash / Bank 50,000
General Reserve 40,000 Stock 80,000
Capital: Debtors 40,000
Gita 3,00,000 Investment 30,000
Radha 2,00,000 Building 5,00,000
Garv 1,00,000 6.00,000
7,00,000 7,00,000

Radha retired on the above date and it was agreed that:

a. Goodwill of the firm be valued at ₹ 3,00,000 and Radha’s share be adjusted through the capital
accounts of Gita and Garv.

b. Stock was to be appreciated by 20%.

c. Buildings were found undervalued by ₹ 1,00,000.

d. Investments were sold for ₹ 34,000.

 e. Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the
partners; the necessary adjustments for this purpose were to be made by opening current accounts of
the partners.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm on
Radha’s retirement.

26. Ravi Ltd. acquired running business of Amit Ltd. having assets of ₹ 10,00,000 and liabilities of ₹ 2,50,000. 9%
Debentures of ₹ 100 each were issued for the acquisition of business at a premium of ₹ 20 per debenture. The
company issued 10,000,8% Debentures of ₹ 100 each redeemable at premium of ₹ 20 per debenture after 5
years. You are required to pass the Journal entries for the above transactions.

Part B :- Analysis of Financial Statements

27. The ratio of Current Assets (₹ 10,00,000) to Current Liabilities (₹ 4,00,000) is 2.5 : 1. The accountant of the
firm is interested in maintaining a Current Ratio of 1.8 : 1, by acquiring some Current Assets on Credit. Current
asset acquired will be:

A. 2,80,000 B. 3,00,000

C. 3,50,000 D. 1,50,000

28. The objectives of Cash Flow Statement are

A. Analysis of cash position

B. Short-term cash planning

C. Evaluation of liquidity

D. Comparison of Operating Performance

A. A, B, C, D B. Both A and C

C. Both A and B D. Both B and D

29. Is payment for the purchase of fixed assets will be classified as an operating activity for both finance and non-
finance company?

A. No these are financing activities B. Yes these are Operating activities

C. Not to be recorded D. No these are investing activities

30. The financial statements of a business enterprise include:

A. All of these B. Profit & Loss Account

C. Cash Flow Statement D. Balance Sheet

31. The current ratio of Y Ltd is 2 : 1. State with reason, which of the following transactions would (a) increase,
(b) decrease (c) not change the ratio.

i. Trade receivables included debtors of ₹ 40,000 which were received earlier.

 ii. Company purchased furniture of ₹ 45,000. The vendor was paid by he issue of equity shares of ₹ 10
each at par.

32. From the following, calculate Debt to Capital Employed Ratio:

9% Debentures 2,00,000

8% Public Deposits 5,00,000

Long-term Provisions 2,00,000

Equity Share Capital 8,00,000

Reserves and Surplus 5,00,000

33. Following information is related to Harsh Ltd.

Particulars 31.3.2023 31.3.2022

(₹ in Lakhs) (₹ in Lakhs)

Equity Share Capital 16.00 16.00

Preference Share Capital 2.00 2.00

Reserves and Surplus 5.40 4.00

Non-Current Liabilities 14.40 14.00

Current Liabilities 7.20 4.00

Non-Current Assets

Property, Plant and Equipment and Intangible Assets 30.60 28.00

Current Assets 14.40 12.00

You are required to prepare a Common Size Balance Sheet.

34. Calculate Cash Flow from Operating Activities from the following information:

Particulars Opening Balances (₹) Closing Balances (₹)

Surplus, i.e., Balance in Statement

of Profit and Loss 30,000 35,000

General Reserve 10,000 15,000
Provision for Depreciation on Machinery 30,000 35,000
Outstanding Expenses 5,000 3,000
Goodwill 20,000 10,000
Trade Receivables (Sundry Debtors) 40,000 35,000

Machinery costing ₹ 20,000 having book value of ₹ 14,000 was sold for ₹ 18,000 during the year.