Thakur Dass Bhargava Senior Secondary Model School

Rajgarh Road, Hisar

1
Class 12 - Accountancy
Time Allowed: 3 hours Maximum Marks: 80

General Instructions:

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

2. This question paper is divided into two parts, Part A and B.

3. Part - A is compulsory for all candidates.

4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students

must attempt only one of the given options.

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

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

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

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

9. 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. A and B are partners sharing profits in the ratio of 7 : 3. They decided to admit Rishi as a new partner and new [1]
profit sharing ratio is 4 : 3 : 3. Rishi Paid ₹ 12,000 as his share of goodwill. Amount of goodwill transfer to the
capital account of B:

a) 4800 b) 3600

c) 1200 d) Nil
2. Assertion (A): When a clause in partnership deed differs from provisions of Partnership Act 1932, clause in [1]
partnership deed will be applicable.
Reason (R): Provisions of Partnership Act 1932 will be applicable only when partners have not agreed on a
matter.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. A Company forfeited 1,000 shares of ₹ 10 each fully called, on which ₹ 6,000 has been paid. Out of these 800 [1]
shares were reissued upon payment of ₹ 6,600. What is the amount to be transferred to Capital Reserve?

a) ₹ 4,800 b) ₹ 4,600

c) ₹ 3,400 d) ₹ 6,000
OR

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When a company purchases some assets and not paying cash instead issues debentures as a payment for the purchase,
from the vendors it is known as the issue of:

a) Debentures issued for cash b) Debentures issued for consideration other

than cash

c) Debentures issued as collateral security d) Debenture issued in consideration of asset

4. Rahul and Pankaj are partners sharing profits in the ratio of 3 : 2. They changed their profit-sharing ratio to 2 : 3 [1]

w.e.f. 1st April, 2022. The Balance Sheet as on the date of change in profit-sharing ratio showed credit balance in
Profit & Loss Account of ₹ 1,00,000, which the partners decide to carry forward and not distribute. The balance
of ₹ 1,00,000 will be adjusted by
i. Crediting Rahul's Capital Account and Debiting Pankaj's Capital Account by ₹ 1,00,000.
ii. Crediting Rahul's Capital Account and Debiting Pankaj's Capital Account by ₹ 20,000.
iii. Debiting Rahul's Capital Account and Crediting Pankaj's Capital Account by ₹ 1,00,000.
iv. Debiting Rahul's Capital Account and Crediting Pankaj's Capital Account by ₹ 20,000

a) Statement (iv) is correct. b) Statement (iii) is correct.

c) Statement (i) is correct. d) Statement (ii) is correct.

OR
Ram and Rocky are partners sharing profits and losses in the ratio of 3 : 2. The firm maintains fluctuating capital
accounts and the balance of the same as on 31st March, 2023 is ₹ 4,00,000 and ₹ 4,65,000 for Ram and Rocky
respectively. Drawings during the year were ₹ 65,000 each. As per the partnership Deed, Interest on capital @ 10%
p.a. on Opening Capital has been allowed to them. Calculate the opening capital of Ram given that the divisible
profits during the year 2022-23 was ₹ 2,25,000.

a) ₹ 3,00,000 b) ₹ 3,30,000

c) ₹ 4,40,000 d) ₹ 4,00,000
5. The Agreement of Partnership may be: [1]

a) Oral and Written b) Written

c) Oral d) Implied
6. LMN Limited acquired assets of Rs.18,00,000 and took over creditors of ₹2,00,000 from Vidhi Enterprises. [1]
LMN Limited issued 8% Debenture of Rs.100 each at par as purchase consideration. Find out how many
debentures issued by the company?

a) 16,000 b) 2,000

c) 18,000 d) 16,00,000
OR
A Limited purchased the assets from B Limited for ₹ 8,10,000. A Limited issued 10% debentures of ₹ 100 each at
10% discount against the payment. The number of debentures received by B Limited will be:

a) 9,000 b) 8,100

c) 90,000 d) 81,000
7. Assertion (A): Calls-in-arrear is the amount that has not been called by the company but has been paid by the [1]
shareholders.

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Reason (R): Calls-in-arrear will be shown as a deduction from the subscribed but not fully paid-up capital.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. A, B and C are partners sharing profit or loss in the ratio of 3 : 2 : 1. B retires and after B's retirement A and C [1]
agreed to share profit or loss in the ratio of 3 : 2 in future. Their gaining ratio will be:

a) 7 : 3 b) 3 : 1

c) 1 : 3 d) 3 : 7
OR
A, B and C are partners sharing profits equally. A and B has given a minimum guarantee of Rs. 8,000 to the C. How
much amount of profit C will get when the profit of the firm is Rs.30,000.

a) 22,000 b) 10,000

c) 30,000 d) 8,000

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
Vinod and Mohit are partners in a firm. On 1st April, 2020, their capitals were ₹ 4,00,000 and ₹ 6,00,000. The profit for
2020-21 was ₹ 5,24,000. Partnership Deed provided that interest on drawings/capital to be calculated @ 10%, Mohit
had withdrawn ₹ 1,00,000 on 31st December, 2020. In addition to it, rent (in case of any partner providing his premises
for business) for premises decided to be ₹ 8,000 per month. Due to lockdown during pandemic, the partners decided to
shut down the factory and shifted to Vinod’s farmhouse on 1st August, 2020.
9. What amount is to be transferred to Profit and Loss Appropriation Account?

a) ₹ 5,24,000 b) ₹ 4,88,000

c) ₹ 4,60,000 d) ₹ 5,00,000
10. What is the interest on drawings of Mohit?

a) ₹ 10,000 b) ₹ 3,000

c) ₹ 2,500 d) ₹ 7,500
11. Rohit, Raja and Mohit are partners in a firm sharing profits and losses in the ratio of 6 : 4 : 1. Rohit guaranteed a [1]

minimum profit of ₹ 16,000 to Mohit. The trading profit of the firm for the year ending 31st March, 2023, was ₹
1,32,000. Rohit's share in the profits of the firm will be:

a) ₹ 16,000 b) ₹ 68,000

c) ₹ 69,600 d) ₹ 72,000
12. Magnum Ltd. invited applications for issuing 2,00,000 shares of ₹ 50 each at a premium of ₹ 15 per share. The [1]
amount was payable as follows:
On Application - ₹ 20 (including premium ₹ 10)
On Allotment - ₹ 30 (including premium ₹ 5)
On First and Final Call - ₹ 15
Applications were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. All calls
were made and were duly received except allotment and first and final call from Rakhi who applied for 600

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shares. Her shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

a) ₹ 10,000 b) ₹ 8,000

c) ₹ 12,000 d) ₹ 6,000
13. Swarna Limited invited applications for subscription of 10,000 Equity shares @ Rs.100 each. Applications were [1]
received for 25,000 shares. This situation is called as ________.

a) Oversubscription of shares b) Prorata allotment

c) Full Allotment of shares d) Under subscription of shares

14. Pick the odd one out: [1]

a) Interest on Partner's Loan b) Rent to partner

c) Salary to partner (charge) d) Interest on Partner's capital

15. When the balance sheet is prepared after the new partnership agreement, the assets and liabilities are recorded at: [1]

a) Revalued figures b) Historical cost

c) Current cost d) Realisable value

OR
Manas and Mili are partners in a firm sharing profits in the ratio of 3 : 2. Anita is admitted as a new partner for 1 th
4

share in future profits. Capitals of Manas and Mili were ₹ 3,00,000 and ₹ 1,50,000 respectively. Anita brought ₹
2,00,000 as her capital. The value of goodwill of the firm on Anita's admission.

a) ₹ 8,00,000 b) ₹ 2,50,000

c) ₹ 1,50,000 d) ₹ 4,50,000
16. In case of dissolution, assets are transferred to Realisation Account : [1]

a) At Book Value b) Cost or Market Value, whichever is lower

c) Cost or Market Value, whichever is higher d) At Market Value

17. Why are reserves and accumulated profits credited to the partner’s capital accounts in case of change in profit [3]
sharing ratio amongst the existing partners?
18. P, Q, and R are the three partners of a business. On 3 Dec. 2000 after all the necessary adjustments, the capital [3]
account of P, Q and R stood as Rs 50,000, Rs 30,000, Rs 20,000 respectively.
It was discovered that interest on capital @ 5% per annum had been omitted. The profit for the same year
amounted to ^ 70,000 and the partner’s drawings had been Rs 10,000, Rs 7,500, and Rs 4,500 respectively for P,
Q, and R. The profit sharing ratio for P, Q, R is 4: 1: 2. Calculate the Interest on Capital.
OR
X, Y and Z shared profits of ₹ 1,50,000 in the ratio of 2 : 2 : 1 but the Partnership Deed was silent as to the profit-
sharing ratio. Pass the necessary adjusting entry.
19. X Limited Issued 10,000, 12% debentures of ₹100 each payable ₹40 on application and ₹60 on the allotment. [3]
The public applied for 14,000 debentures. Applications for 9,000 debentures were accepted in full; applications
for 2,000 debentures were allotted 1,000 debentures and the remaining applications, were rejected. All money
was duly received. Journalise the transactions.
OR

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Tata Ltd is registered with an authorised capital of ₹ 7,00,00,000 divided into 7,00,000 shares of ₹ 100 each. The
company issued 50,000 shares to the vendor for building purchased and 2,00,000 shares were issued to the public.
The amount was payable as follows:
On application and allotment - ₹ 20 per share,
On first call - ₹ 50 per share,
On second and final call - The balance.
All calls were made and were duly received except on 100 shares held by Reshma, who failed to pay the second and
final call. Her shares were forfeited.
Present the Share Capital in the Balance Sheet of the company as per Schedule III Part I of the Companies Act,
2013. Also prepare Note to Accounts.
20. The average profits of a firm is ₹ 48,000. The total assets of the firm are ₹ 8,00,000. Value of other liabilities is ₹ [3]
5,00,000. Average rate of return in the same business is 12%.
Calculate the value of goodwill according to capitalisation of Super Profits Method.
21. J Ltd. issued applications for 5,00,000 equity shares of ₹ 10 each, at a premium of ₹ 4 per share. The amount [4]
was payable as follows:
On application ₹ 6 (including ₹ 2 premium), on Allotment ₹ 6 (including ₹ 2 premium) and Balance on first and
final call. Applications for 7,50,000 shares were received. Allotment was made to all the applicants on pro rata
basis. Mayank to whom 1,000 shares were allotted did not pay allotment and call money. Vinay to whom 500
shares were allotted, did not pay the call money. These shares were forfeited and afterwards reissued @ ₹ 8 per
share fully paid-up. Pass the necessary Journal entries.
22. Pass the necessary journal entries for the following transactions in case of dissolution of the partnership firm of [4]
X and Y after various assets (other than cash and bank) and third party liabilities have been transferred to
Realisation Account:
i. Dissolution expenses were ₹ 4,000.
ii. Machinery of the book value of ₹ 50,000 was sold in the market for ₹ 47,000 for which a commission of ₹
500 was paid to the broker.
iii. A creditor for ₹ 70,000 accepted stock valued at ₹ 90,000 and paid to the firm ₹ 20,000.
iv. Loss on realisation ₹ 40,000 was divided between the partners X and Y in the ratio of 5 : 3.
23. Ram Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each. The amount was payable as [6]
follows:
On Application - ₹ 3 per share,
On Allotment - ₹ 5 per share, and
On First and Final call - Balance.
Applications for 70,000 shares were received. Allotment was made to all applicants on pro-rata basis. Excess
money received on application was adjusted towards sums due on allotment. Rajesh, who had applied for 700
shares, did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited.
Afterwards, the first and the final call was made. Arun, who had been allotted 500 shares, did not pay the first
and final call. His shares were also forfeited. Out of the forfeited shares 900 shares were reissued at₹ 8 per share
as fully paid-up. The reissued shares included all the shares of Rajesh. Pass necessary Journal entries for the
above transactions in the books of the company.
OR
S.K. Ltd. invited applications for issuing 70,000 equity shares of ₹ 10 each at a premium of ₹ 35 per share. The

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amount was payable as follows:

On Application ₹ 15 (including ₹ 12 premium)

On Allotment ₹ 10 (including ₹ 8 premium)

On First and Final Call Balance

Applications for 65,000 shares were received and allotment was made to all applicants. A shareholder Vikash, who
was allotted 2,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment.
Afterwards, the first and final call was made. Rakesh, who had 3,000 shares, failed to pay the first and final call. His
shares were also forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 50 per share fully paid-up.
The re-issued shares included all the shares of Vikash.
Pass necessary journal entries for the above transactions in the books of S.K Ltd.
24. P, Q and R were partner in ratio of 3:2:1. Their Balance Sheet as at 31st March, 2021 [6]

Liabilities Rs. Assets Rs.

P's Capital 60000 Bank 10000

Q's Capital 60000 Machinery 40000

R's Capital 40000 Debtors 30000

Creditors 30000 Stock 20000

B/P 10000 Furniture 30000

Building 50000

B/R 20000

200000 200000

They admitted S for an equal share in future profits and is to pay Rs. 50000 as capital on the following terms:
a. Out of the Creditors a sum of Rs. 10000 is due to S which will be treated as his capital.
b. Prepaid advertisement Rs. 1200 to be recorded.
c. Q's personal expense Rs. 2000 was wrongly debited in the Profit and Loss account.
d. Provision of 5% is to be made on Debtors.
e. A B/R of Rs. 4000 which was previously discounted with the bank, was dishonoured.
f. Expenses on Revaluation Rs. 2100 is paid by P.
Prepare Revaluation Account, Partner's Capital Account and Balance Sheet of the new firm after S's admission.
OR
X, Y, and Z were partners sharing profits in the ratio 3: 2: 1. On 31st March 2008, their Balance Sheet stood as under
:

Liabilities Amt(Rs.) Assets Amt(Rs.)

Capitals: Cash at Bank 70,000

X 75,000 Investments 50,000

Y 70,000 Patents 15,000

Z 50,000 1,95,000 Stock 25,000

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Creditors 72,000 Debtors 20,000

General Reserve 24,000 Buildings 75,000

Machinery 36,000

2,91,000 2,91,000

Z died on May 31st, 2008. It was agreed that

a. Goodwill was valued at 3 years’ purchase of the average profits of the last five years, which were 2003: Rs.
40,000; 2004: Rs. 40,000; 2005: Rs. 30,000; 2006: Rs. 40,000 and 2007: Rs. 50,000.
b. Machinery was valued at Rs. 70,000, Patents at Rs. 20,000 and Buildings at Rs. 66,000.
c. For the purpose of calculating Z’s share of profits until the date of death, it was agreed that the same be calculated
based on the average profits for the last 2 years.
d. The executor of the deceased partner is to be paid the entire amount due by means of a cheque.
Prepare Z’s Capital Accounts to be rendered to the executor and also a journal entry for the settlement of the amount
due to Z’s executor.
25. Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31st March, [6]
2019, their balance sheet was as follows:
Balance Sheet of Gita, Radha & Garv as on 31st March, 2019

Amount
Liabilities Assets Amount (₹)
(₹)

Sundry Creditors 60,000 Cash 50,000

General Reserve 40,000 Stock 80,000

Capitals : Debtors 40,000

Gita 3,00,000 Investments 30,000

Radha 2,00,000 Buildings 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% [6]
Debentures of ₹ 100 each were issued for the acquisition of business at a premium of ₹ 20 per debenture. The

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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. Financial analysis becomes useless because it: [1]

a) measures the Solvency b) lacks Qualitative Analysis

c) makes a comparative study d) measures the profitability

OR
Match the followings:

Column I Column II

(a) Bonus paid (i) Revenue from operation

(b) Revenue from service rendered (ii) Finance cost

(c) Interest expense (iii) Depreciation and amortization expense

(d) Goodwill amortised (iv)Employee benefit expense

a) (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii) b) (a) - (iv), (b) - (iii), (c) - (ii), (d) - (i)

c) (a) - (i), (b) - (iii), (c) - (iv), (d) - (ii) d) (a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)
28. Which of the following is not a subhead under the Current Assets? [1]

a) Inventories b) Trademarks

c) Cash and Cash Equivalents d) Short-term Loans and Advances

29. Which of the following is not a cash inflow? [1]

a) Sale of asset at loss b) Interest received on investment

c) Goods purchased in cash d) Goods sold in cash

OR
An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a short maturity
period of:

a) One month or less b) Three months or less

c) Three months or more d) One year or less

30. Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow [1]
statement?

a) Cash Flow from Operating Activities b) Cash Flow from Investing Activities

c) Cash Flow from Financing Activities d) No Cash Flow

31. From the following information for the year ended 31st March, 2023, prepare Note to Accounts on Employees [3]
Benefit Expenses:
i. Wages ₹ 2,40,000;
ii. Salaries ₹ 3,60,000;
iii. Entertainment Expenses ₹ 15,000;
iv. Bonus ₹ 50,000

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v. Gratuity Paid ₹ 1,20,000
vi. Conveyance Expenses ₹ 25,000; and
vii. Medical Expenses ₹ 40,000.
32. From the following information, calculate Quick Ratio; [3]

₹ ₹

Total Debt 12,00,000 Long-term Provisions 4,00,000

Total Assets 16,00,000 Long-term Loans & Advances 1,00,000

Property, Plant and Equipment (Fixed Assets) 6,00,000 Inventories 1,90,000

Non-current Investments 1,00,000 Prepaid Expenses 10,000

Long-term Borrowings 4,00,000

33. Prepare a Common Size Balance Sheet from the following Balance Sheet of Shree Ltd. as at 31st March, 2022: [4]

Balance Sheet of Shree Ltd. as at 31st March, 2022

31.3.2022 31.3.2021
Particulars Note No.
(₹) (₹)

I - Equity and Liabilities:

1. Shareholder's Funds

Share Capital 40,00,000 30,00,000

2. Non-Current Liabilities

Long-term Borrowings 20,00,000 15,00,000

3. Current Liabilities

Trade Payables 20,00,000 5,00,000

Total 80,00,000 50,00,000

II - Assets:

1. Non-Current Assets

Fixed Assets

(a) Tangible Assets 20,00,000 15,00,000

(b) Intangible Assets 40,00,000 10,00,000

2. Current Assets

Inventories 20,00,000 25,00,000

Total 80,00,000 50,00,000

OR
From the following Statement of Profit and loss of Suntrack Ltd., for the years ended 31st March 2023 and 2022,
prepare a ‘Comparative Statement of Profit and Loss.’

Particulars Note No. 2023-22 2022-23

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₹ ₹

Revenue from Operations 40,00,000 24,00,000

Other Income 24,00,000 18,00,000

Expenses 16,00,00 14,00,000

34. Following are the Balance Sheets of Sunrise Power Ltd. as at 31st March, 2023 and 2022: [6]
Sunrise Power Ltd.
BALANCE SHEET

Particulars Note No. 31st March, 2023 31st March, 2022

₹ ₹

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital 24,00,000 22,00,000

(b) Reserves and Surplus 1 6,00,000 4,00,000

2. Non-Current Liabilities

Long-term Borrowings 4,80,000 3,40,000

3. Current Liabilities

(a) Trade Payables 3,58,000 4,08,000

(b) Short-term Provisions 1,00,000 1,54.000

Total 39,38,000 35,02,000

II. ASSETS

1. Non-current Assets

(a) Tangible 2 21,40,000 17,00,000

(b) Intangible 3 80,000 2,24,000

2. Current Assets

(a) Current Investments 4,80,000 3,00,000

(b) Inventories 2,58,000 2,42,000

(c) Trade Receivables 3,40,000 2,86,000

(d) Cash and Cash Equivalents 6,40,000 7,50,000

Total 39,38,000 35,02,000

Notes to Accounts

Particulars 31st March 2023 31st March 2022

₹ ₹

1. Reserves and Surplus

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Surplus (Balance in Statements of Profit and Loss) 6,00,000 4,00,000

2. Property, Plant and Equipment

Machinery 25,40,000 20,00,000

Less: Accumulated Depreciation (4,00,000) (3,00,000)

21,40,000 17,00,000

3. Intangible Assets

Goodwill 80,000 2,24,000

Additional Information:
During the year a piece of machinery costing ₹ 48,000 on which accumulated depreciation
was ₹ 32,000 was sold for ₹ 12,000. Prepare cash flow statement.

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