1 AS-12

P-12
PRE-BOARD (2024-25)
SUBJECT: TIME:180 M.M.:
SET:2 CLASS: XII
ACCOUNTANCY (055) MINUTES 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 ofone mark, 2 questions of three marks, 1
question of four marks and 2 questions of six marks.
Q.NO. QUESTION MARKS
Part A:- Accounting for Partnership Firms and
Companies
1 Krish and Laksh were partners in a firm sharing profits and 1
losses in the ratio of 4 : 1. They admitted Rani as a new
1
partner. Krish sacrificed th of his share and Laksh
4
1
sacrificed th of his share in favour of Rani. Rani’s share in
5
the profits of the reconstituted firm will be:
1 9 6 2
a) b) c) d)
9 30 25 5
2 Mohit and Rohit were partners in a firm with capitals of₹ 1
80,000 and ₹ 40,000 respectively. The firm earned a profit
of ₹ 30,000 during the year. Mohit’s share in the profit will
be:
a) ₹ 18,000 b) ₹ 15,000
c) ₹ 20,000 d) ₹ 10,000
3 Divya Ltd. forfeited 7,000 equity shares of₹ 100 each issued 1
at a premium of 10%, for non - payment of first and final call
of ₹ 40 per share. The maximum amount of discount at
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which these shares can be reissued will be:

a) ₹ 3,50,000 b) ₹ 4,20,000
c) ₹ 4,90,000 d) ₹ 2,80,000
OR
Sunbeam Limited issued 4,000, 6% Debentures of₹ 100
each at ₹ 95 per debenture. 6% Debentures account will be
credited by:
a) ₹ 4,00,000 b) ₹ 3,80,000
c) ₹ 20,000 d) ₹ 4,40,000
4 At the time of change in profit sharing ratio among existing 1
partners, Reserves are transferred to Partners’ Capital
Accounts in the following ratio:
a) Sacrificing ratio b) New profit sharing ratio
c) Old profit sharing ratio d) Gaining ratio
OR
Anu, Bindu and Siya were partners in a firm sharing profits
and losses in the ratio of 2 : 2 : 1. Siya was guaranteed that
her share of profit will not be less than₹ 50,000. The firm’s
profit for the year ended 31 𝑠𝑡 March, 2022 was ₹ 2,00,000.
The amount of deficiency to be borne by Anu was:
a) ₹ 10,000 b) ₹ 2,500
c) ₹ 75,000 d) ₹ 5,000
5 A and B were partners in a firm sharing profits and losses in 1
the ratio of 3 : 2. On 1𝑠𝑡 April, 2021 the balances in their
capital accounts were ₹ 1,50,000 and ₹ 2,00,000
respectively. The partnership deed provided that interest on
partner’s capital will be allowed @ 10% per annum. During
the year ended 31 𝑠𝑡 March, 2022, the firm incurred a loss of
₹ 10,000. Interest on A’s capital will be:
a) ₹ 6,000 b) Nil
c) ₹ 15,000 d) ₹ 9,000
6 Senco Ltd. issued 5,000, 8% Debentures of₹ 100 each at 1
par, redeemable after four years at a premium of 10%. The
minimum amount invested in Debenture Redemption
Investments will be:
a) ₹ 1,37,500 b) ₹ 82,500
c) ₹ 1,25,000 d) ₹ 75,000
OR
The debentures which are payable on the expiry of a
3 AS-12

specified period either in lump - sum or in instalments

during the life time of the company are known as:
a) Convertible debentures
b) Redeemable debentures
c) Secured debentures
d) Specific coupon rate debentures
7 ________ is transferred to capital reserve. 1
a) Profit on forfeiture of shares
b) Premium on issue of shares
c) Profit from sale of fixed assets
d) All of these
8 X, Y and Z were partners in a firm sharing profits in the ratio 1
1 1 1
of , and respectively. Z decided to retire from the firm.
2 3 6
On the date of his retirement, Workmen Compensation
Reserve of ₹ 1,20,000 was appearing in the Balance Sheet
of the firm. The claim on account of Workmen
Compensation was determined at ₹ 67,500. Excess of claim
amount over the reserve will be:
a) Debited to Revaluation Account
b) Credited to Partners’ Capital Accounts
c) Credited to Revaluation Account
d) Debited to Partners’ Capital Accounts
OR
Which of the following will not be recorded in the Current
Account?
a) Interest in capital
b) Interest on drawings
c) Partner’s Commission
d) Additional capital brought by a partner
Question No. 9 to 10 are based on the given text. Read
the text carefully and answer the questions:
Sumit and Mohit are partners sharing profits and losses in
the ratio of 2:1. Their capital Accounts as at 1st April, 2015
were₹ 10,00,000 and ₹ 8,00,000 respectively. The partners
are allowed interest on capital @ 5% p.a. Drawings of the
partners during the year ended 31st March, 2016 were ₹
1,44,000 and ₹ 1,00,000 respectively. Mohit is entitled to get
a salary of ₹ 10,000 p.m.
Profit for the year before allowing interest on capital and
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salary was ₹ 16,00,000. 10% of the net profit is to be

transferred to General Reserve.
9 Find the amount which is to be transferred to General 1
Reserve Account?
a) ₹ 2,00,000 b) ₹ 1,60,000
c) ₹ 1,20,000 d) ₹ 80,000
10 What is the distributable amount of profit which is to be 1
credited to Partners’ Capital Accounts?
a) ₹ 12,30,000 b) ₹ 16,00,000
c) ₹ 14,40,000 d) ₹ 10,00,000
11 Manu and Kanu were partners in a firm, sharing profits and 1
losses in the ratio of 2 : 3. Their fixed capitals were₹
10,00,000 and ₹ 5,00,000, respectively. They were entitled
to an interest on capital @ 10% p.a. The firm earned a profit
of ₹ 60,000 during the year. The amount of interest on
capital credited to Kanu will be:
a) ₹ 36,000 b) ₹ 24,000
c) ₹ 40,000 d) ₹ 20,000
12 On forfeiture of 100 shares of₹ 50 each, ₹ 2,500 were 1
credited to share forfeited account. These shares were re -
issued at ₹ 25 per share fully paid up. The amount credited
to Capital Reserve Account will be:
a) No amount b) ₹ 5,000
c) ₹ 3,000 d) ₹ 2,500
13 Forfeited Shares Account appears in the Balance Sheet of 1
the company under the subhead:
a) Long - term Provisions
b) Reserves and Surplus
c) Other Current Liabilities
d) Share Capital
14 If a fixed amount is withdrawn by a partner at the beginning 1
of each month, interest on drawings on the total amount
will be calculated for:
1
a) 5 months b) 6 months
2
1
c) 7 months d) 6 months
2
15 X and Z were partners in a firm with capitals of₹ 45,000 1
1
each. They admitted Y as a new partner for rd share in the
3
profits of the firm. Y brought ₹ 60,000 as his capital. Based
5 AS-12

on Y’s share in the profits of the firm and his capital

contribution, the goodwill of the firm will be:
a) ₹ 90,000 b) ₹ 1,50,000
c) ₹ 1,80,000 d) ₹ 30,000
OR
Loan by the deceased partner to the firm is transferred to
a) the debit of Remaining Partners ‘Capital Accounts.
b) the credit of his Capital Account.
c) the debit of his Current Account.
d) the credit of Remaining Partners ‘Capital Accounts
16 In which of the following conditions is a partnership firm 1
dissolved by Agreement?
a) In accordance with a contract between the partners
b) When the business of the firm becomes illegal
c) When a partner becomes insane
d) If any one of the partners gives a notice in writing to the
other partners
17 Sangeeta, Deepa, Ajay and Lalit were partners in a firm 3
sharing profits and losses in the ratio of 3 : 2 : 4 : 1. They
decided to share profits and losses in the ratio of 5 : 1 : 2 : 2
with effect from 1𝑠𝑡 April, 2022. On this date, the goodwill of
the firm was valued at ₹ 5,20,000, General Reserve
appeared in the books at ₹ 1,00,000.
Pass necessary journal entries for the above transactions.
Show your workings clearly.
18 A, B and C were partners in a firm sharing profits and losses 3
equally. Their respective capitals were₹ 10,00,000, ₹
9,00,000 and ₹ 8,00,000. The partnership deed provided for
the following:
(1) Interest on capital @ 9% per annum.
(2) Interest on drawings @ 12% per annum.
(3) Interest on partners loan to the firm @ 10% per annum.
During the year, B had withdrawn ₹ 20,000 for his personal
use. On 30.9.2021, A had given a loan of ₹ 70,000 to the
firm.
Pass the necessary journal entries in the books of the firm
for the following for the year ended 31 𝑠𝑡 March, 2022:
1. Allowing interest on C’s Capital.
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2. Providing interest on A’s Loan.

3. Charging interest on B’s Drawings.
Also give transfer entries in the Profit and Loss
Account/Profit and Loss Appropriation Account, as the case
may be.
OR
Name any six items which are shown in Profit and Loss
Appropriation Account.
19 Vimal Ltd. purchased assets worth₹ 5,00,000 and took over 3
liabilities of₹ 1,00,000 of Kapil Ltd. for a purchase
consideration of ₹ 4,50,000. Vimal Ltd. paid one third of the
amount by cheque and balance was settled by issuing 11%
debentures of ₹ 100 each at a premium of 20%.
Pass necessary journal entries in the books of Vimal Ltd. for
the above transactions.
OR
What is meant by a share? Give any two differences
between preference share and equity shares.
20 Malhotra and Rana had a firm in which they had invested₹ 3
50,000. On an average, the profits were ₹ 16,000. The
normal rate of return in the industry is 15%. Goodwill is to
be valued at four years’ purchase of profits in excess of
profits @ 15% on the money invested. Calculate the value
goodwill.
21 Narmada Ltd. has an authorized capital of₹ 10,00,000 4
divided into equity shares of ₹ 10 each. The company
issued a prospectus inviting applications for issuing 80,000
equity shares. The company received applications for
75,000 equity shares. All calls were made and were duly
received except the first and final call of ₹ 2 per share on
5,000 shares held by Arti. These shares were forfeited.
1. Present the share capital in the Balance Sheet of the
company as per Schedule III, Part I of the Companies
Act, 2013.
2. Also prepare ’Notes to Accounts’ for the same
22 J, K and L were partners in a firm sharing profits in the ratio 4
of 4 : 5 : 1. On 31st March, 2023 their firm was dissolved.
7 AS-12

On this date the Balance Sheet showed a balance of₹

1,34,000 in debtors account and a balance of ₹ 14,000 in
provision for bad debts account. Both the accounts were
closed by transferring their balances to realisation account.
₹ 4,000 of the debtors became bad and nothing could be
realised from them on dissolution. K agreed to look after the
dissolution work for which he was allowed a remuneration of
₹ 16,000. K also agreed to bear dissolution expenses for
which he was allowed a lumpsum payment of ₹ 4,000.
Actual dissolution expenses were ₹ 6,500 and the same
were paid from the firm’s cash. Loss on dissolution
amounted to ₹ 37,000.

Pass necessary journal entries for the above transactions in

the books of the firm on its dissolution.
23 Bhagwati Ltd invited applications for issuing 2,00,000 equity 6
shares of Rs.10 each. The amounts were payable as
follows
On application — Rs.3 per share
On allotment — Rs.5 per share
On first and final call — Rs. 2 per share
Applications were received for 3,00,000 shares and pro -
rata allotment was made to all the applicants. Money
overpaid on application was adjusted towards allotment. B,
who was allotted 3,000 shares, failed to pay the first and
final call money. His shares were forfeited. Out of the
forfeited shares, 2,500 shares were reissued as fully paid up
@ Rs.8 per share.
Pass necessary journal entries to record the above
transactions in the books of Bhagwati Ltd.
OR
1. Sonu Ltd., forfeited 800 shares of₹ 10 each, ₹ 7.50
paid, for non - payment of Final Call of ₹ 2.50 per
share. Out of these, 600 shares were re - issued as
fully paid up in such a way that ₹ 2,100 were
transferred to capital reserve. Pass necessary journal
entries.
2. X Ltd., forfeited 800 shares of₹ 10 each, ₹ 7.50 called
- up, for non - payment of First Call of ₹ 2.50 per
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share. Out of these, 600 shares were re - issued for ₹

6 per share as ₹ 7.50 paid up. Pass necessary journal
entries.
3. 400 shares of₹ 10, on which ₹ 8 have been called and
₹ 6 have been paid, are forfeited. Out of these, 300
are re - issued for ₹ 7 as fully paid. Pass necessary
journal entries.
24 R and S were partners in a firm sharing profits and losses in 6
the ratio of 3 : 2. Their Balance Sheet as at 31 𝑠𝑡 March,
2020 was as follows:
Balance Sheet of Rand S as at 31𝑠𝑡 March, 2020

Liabilities Amount Assets Amount

Capital Account Cash at Bank 10000
R- 60000 Debtors 65000

S- 40000 100000 Less: Provision for

doubtful debts 5000 60000

General Reserve 20000 Stock 20000

Creditors 20000 Machinery 50000
Bills Payable 20000 Land & Building 20000

160000 160000

1
M was admitted on the above date as a new partner for th
5
share in the profits of the firm. The terms of agreement were
as follows:
1. M will bring₹ 80,000as his capital and ₹ 60,000as his
share of goodwill premium.
2. Machinery was revalued at₹ 45,000.
3. Stock will be reduced by 10%and Land and Building
will be appreciated by 40%.
Prepare Revaluation Account and Partners’ Capital
Accounts.
OR
X, Yand Zwere partners in a firm sharing profits and losses
9 AS-12

in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31 𝑠𝑡

March, 2020 was as follows: Balance Sheet of X, Yand
Zas at 31𝑠𝑡 March, 2020

Liabilities Amount Assets Amount

Creditors 66500 Land 300000
Bills Payable 10000 Furniture 10000
Profit & Loss Account 22500 Stock 20000
Provision for Legal Claims 57500 Debtors 20000
Capital Accounts: Less: Provision for
Bad Debts 500 19500
X- 120000 Patents 45000
Y- 97000 Bank 50000
Z- 71000 288000
444500 444500
On the above date, Zretired. The terms of retirement were:
1. Goodwill of the firm was valued at₹ 80,000.
2. Land will be appreciated by 10%and furniture will be
depreciated by 5%.
3. Provision for legal claims will be made at₹ 61,000.
4. ₹ 90,000 from Z’s capital account will be transferred to
his Loan Account and the balance will be paid to him
by cheque.
Prepare Revaluation Account and Partners’ Capital
Accounts.
25 Prem, Kumar and Aarti were partners sharing profits in the 6
ratio of 5 : 3 : 2. Their Balance Sheet as at 31𝑠𝑡 March, 2019
was as under:
Balance Sheet of Prem, Kumar and Aarti
as at 31𝑠𝑡 March, 2019

Liabilities Amount Assets Amount

Capital Account Building 25000
Prem 30000 Plant & Machinery 15000
Kumar 20000 Investments 10000
Aarti 20000 70000 Debtors 10000
General Reserve 8000 Stock 5000
Investment Fluctuation 2000 Cash 25000
Reserve
Sundry Creditors 10000
90000 90000
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On the above date, Kumar retired. The terms of retirement

were:
1. Kumar sold his share of goodwill to Prem for₹ 8,000
and to Aarti for ₹ 4,000
2. Stock was found to be undervalued by₹ 1,000 and
building by ₹ 7,000
3. Investments were sold for₹ 11,000.
4. There was an unrecorded creditor of₹ 7,000.
5. An amount of₹ 30,000 was paid to Kumar in cash
which was contributed by Prem and Aarti in the ratio
of 2 : 1. The balance amount of Kumar was settled by
accepting a Bill of Exchange in favour of Kumar.
Prepare the Revaluation Account and Capital Accounts of
partners of the reconstituted firm.
26 Pass the necessary journal entries for the issue of 6
debentures in the books of Amrit Ltd. for the following
transactions:
1. Issued₹ 10,00,000, 9% Debentures of ₹ 100 each at a
discount of 10%, redeemable at a premium of 5%
after three years.
2. Issued₹ 30,00,000, 8% Debentures of ₹ 100 each at
par, redeemable at a premium of 5%.
3. Issued 6,000, 9% Debentures of₹ 100 each at a
premium of 10%, redeemable at a premium of 5%.
Part B :- Analysis of Financial Statements
27 Which of the following is not a limitation of financial 1
analysis?
a) It may be misleading without the knowledge of the
changes in accounting procedures followed by a firm.
b) It identifies the reasons for change in the financial
position of the firm.
c) It does not consider price level changes.
d) It is just a study of interim reports.
OR
Calls - in - advance appear in a company’s balance sheet
under:
a) Reserve & Surplus b) Share Capital
c) Long - term Borrowing d) Current Liability
11 AS-12

28 ________ ratios are calculated for measuring the efficiency 1

of operations of business based on effective utilization of
resources.
a) Profitability b) Turnover c) Solvency d) Liquidity
29 Paid₹ 7,00,000 to acquire shares in K.L. Ltd. and received a 1
dividend of ₹ 20,000 after acquisition. These transactions
will result in
a) Cash used in Investing Activities₹ 7,00,000.
b) Cash generated from Financing Activities₹ 6,80,000.
c) Cash used in Investing Activities₹ 6,80,000.
d) Cash generated from Financing Activities₹ 7,20,000.
OR
Paid₹ 6,00,000 to acquire shares in R.T. Ltd. and received a
dividend of ₹ 60,000 after acquisition. These transactions
will result in:
a) Cash generated from financing activities₹ 5,40,000.
b) Cash used in investing activities₹ 6,60,000.
c) Cash generated from financing activities₹ 6,60,000.
d) Cash used in investing activities₹ 5,40,000.
30 Which of the following is not a Non - Cash Transaction? 1
a) Issue of Bonus Shares
b) Issue of Equity Shares for consideration other than cash
c) Payment of Wages
d) Depreciation
31 Give the major headings under which the following items will 3
be shown in a company’s balance sheet as per Schedule III,
Part I of the Companies Act, 2013.
1. Trade payables (Sundry creditors)
2. Provision for tax
3. Preliminary expenses
4. Loose tools
5. Interest accrued on investments
6. Goodwill
32 Working Capital₹ 5,40,000; Current Ratio 2.8 : 1; Inventory 3
₹ 3,30,000. Calculate Current Assets, Current Liabilities and
Quick Ratio.
33 From the following information, prepare a Comparative 4
Statement of Profit and Loss for the year ended 31 𝑠𝑡 March,
2022 and 2023:
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Particulars Note No 2022-23 2021-22

Revenue from operations 10,00,000 8,00,000
Employee benefit expenses 2,50,000 1,00,000
Other Expenses 5,50,000 4,00,000
Tax Rate 50%

OR
Prepare a Common Size Statement of Profit and Loss of
Neurosis Ltd. for the year ended 31 𝑠𝑡 March, 2023 from the
following information:
Particulars Note No 2022-23 2021-22
Revenue from 40,00,000 20,00,000
operations
Purchase of stock in 4,00,000 2,00,000
trade
Other Expenses 40,000 20,000
Tax Rate 50%
34 Calculate Cash Flow from Operating Activities from the 6
following:
1. Profit for the year is₹ 7,00,000 after considering the
following items:
Particulars Amt.
Depreciation on fixed assets 40000
Goodwill Amortised 20000
Gain(profit) on sale of land 90000
Appropriation of profit towards general reserve 60000
2. Following is the position of Current Assets and
Current Liabilities:
Particulars Closing balances Opening balances
Trade payables 50000 75000
Trade receivables 75000 60000
Prepaid Expenses 10000 18000