L.K.

Commerce Classes
Sample Paper 2
SUBJECT – ACCOUNTANCY
Student’s Name: - CLASS – XII
Time allowed: - 3 Hours Maximum Marks :80

PART – A (Accounting for Partnership Firms and Companies)

1. Assertion(A): Rent to partner is shown in Profit& Loss Appropriation Account. 1

Reason (R): Rent to partner is a charge against profit.
(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 the (R) is false
(d) (A) is false but the (R) is true

2. Which one of the following is not an essential feature of a partnership? 1

(a) There must be a business.
(b) The business must be carried on for profits.
(c) The business must be carried on by all the partner
(d) There must be an agreement.

3. Sankalp Ltd offered 2,00,000 Equity Shares of ₹ 10 each, of these1,98,000 shares were subscribed. The 1
amount was payable as ₹ 3 on application, ₹ 4 an allotment and balance on first call. If a shareholder holding
3,000 shares has defaulted on first call, what was the amount of money received on first call?
(a) ₹ 9,000.
(b) ₹ 5,85,000.
(c) ₹ 5,91,000.
(d) ₹ 6,09,000.
OR
On 1st April 2021, Sunlight Ltd issued 5,000, 8% debentures of ₹ 100 each at a discount of 5%. What will be
the total amount of interest for the year ending 31 st March, 2022?
(a) ₹ 40,000
(b) ₹ 42,000
(c) ₹ 38,000
(d) ₹ 25,000

4. In case of admission of a partner, the entry for unrecorded investments will be: 1
(a) Debit Revaluation A/c and Credit Investment A/c.
(b) Debit Investment A/c and Credit Revaluation A/c.
(c) Debit Partners Capital A/cs and Credit Investments A/c.
(d) None of the above options are correct.
OR
If at the time of admission, there is some unrecorded liability, it will be:
(a) Debited to Revaluation Account
(b) Credited to Revaluation Account
(c) Debited to Goodwill Account
(d) Credited to partners’ Capital Accounts

5. A firm earns ₹ 1,10,000. The normal rate of return is 10%. The assets of the company amounted to 1
₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalisation of average actual profit will
be:
(a) ₹ 2,00,000
(b) ₹ 10,000
(c) ₹ 5,000
(d) ₹ 1,00,000

6. The Earth Ltd. invited applications for 35,000 shares of ₹ 10 each and received applications for 40,000 1
shares along with the application money ₹ 4 per share. Which of the following alternatives can be followed?
1. Refund of excess application money and full allotment to the rest of the applicants.
2. Not to allot any share to some applicants, Full allotment to some applicants and pro rata allotment to
rest of the applicants.
3. Not to allot any shares to some applicants and pro rata allotment to rest of the applicants.
4. Make pro rata allotment to all the applicants and adjust the excess amount received towards further
instalments.
(a) (1), (3) and (4)
(b) (1), (2) and (3)
(c) (1), (2), and (4)
(d) (1), (2), (3) and (4)
OR
Arrange the following in proper sequence as types of “Share Capital”
1. Paid up capital
2. Issued capital
3. Subscribed capital
4. Authorised capital
(a) 4, 3, 1, 2
(b) 2, 3, 4, 1
(c) 4, 2, 1, 3
(d) 4, 2, 3, 1
7. Premium on Redemption of debenture account is a ___________ of a Company payable after 5 years at the 1
time of redemption. This account is shown under the subhead of balance sheet by the name of:
(a) Liability and Other long-term liabilities
(b) Liability and Non-current liabilities.
(c) Written off and Long-term Provision.
(d) Written off and Other Long-term borrowing

8. On dissolution of a firm, an unrecorded furniture of the value of ₹ 5,000 was taken up by a partner for ₹4,300. 1
Which Account will be credited and by how much amount?
(a) Cash Account by ₹ 4,300
(b) Realisation Account by ₹ 700
(c) Partner’s Capital Account by ₹ 5,000
(d) Realisation Account by ₹ 4,300
OR
If total assets are ₹ 2,00,000; total liabilities are ₹ 40,000; amount realised on sale of assets is ₹ 1,75,000 and
realisation expenses are ₹ 3,000, the profit or loss on realisation will be:
(a) Profit ₹12,000
(b) Loss ₹68,000
(c) Loss ₹28,000
(d) Loss ₹25,000

9. In the absence of a partnership deed, partners are entitled to receive_______________. 1

(a) Interest on loan.
(b) Salary.
(c) Commission.
(d) Interest on capital.

10. On dissolution of a firm, debtors were ₹17,000. Of these ₹500 became bad and the rest realised 60%. Which 1
account will be debited and by how much amount?
(a) Realisation Account by ₹ 16,500
(b) Profit & Loss Account by ₹ 500
(c) Cash Account by ₹ 9,900
(d) Debtors Account by ₹ 7,100

11. X, Y and Z were partners sharing profits and losses equally. Their capital balances on March, 31, 2012 were 1
₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Their personal assets were worth as follows: X — ₹ 20,000,
Y — ₹ 15,000 and Z —₹ 10,000. The extent of their liability in the firm would be:
(a) X — ₹80,000: Y — ₹60,000: and Z — ₹40,000
(b) X — ₹20,000: Y — ₹15,000: and Z — ₹10,000
(c) X — ₹1,00,000: Y — ₹75,000: and Z — ₹50,000
(d) Equal

12. 12. Assertion (A): Calls in Advance are shown as an asset in the Balance Sheet. 1
Reason (R): Sometimes shareholders pay a part, or the whole of the amount of the calls not yet made, which
is known as ‘Calls in Advance’.
(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 the (R) is false
(d) (A) is false but the (R) is true

13. 12,000 shares of ₹ 100 each forfeited due to non-payment of allotment of ₹ 40 per share and first & final call 1
of ₹ 30 per share. Out of the forfeited shares, 9,000 shares were reissued at ₹ 80 per share fully paid. Which
of the following amount of share forfeiture account will be transferred to Capital Reserve Account?
(a) 90,000
(b) 1,80,000
(c) 3,60,000
(d) 2,70,000

14. A and B were partners in a firm sharing profit or loss in the ratio of 3:1. With effect from Jan. 1, 2019 they 1
agreed to share profit or loss in the ratio of 2:1. Due to change in profit-loss sharing ratio, B’s gain or sacrifice
was to be:
(a) Gain 1/12
(b) Sacrifice 1/12
(c) Gain 1/3
(d) Sacrifice 1/3

15. X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th profits, for which he paid 1
₹60,000 against capital and ₹ 30,000 against goodwill. Find the capital balance for each partner taking Z’s
capital as base capital.
(a) ₹1,50,000; ₹60,000 and ₹60,000
(b) ₹1,50,000; ₹60,000 and ₹90,000
(c) ₹1,50,000; ₹90,000 and ₹60,000
(d) ₹1,50,000; ₹90,000 and ₹90,000
OR
A, B and C were partners in a firm sharing profit/loss in the ratio of 2 : 2 : 1. On March 31, 2019, C died.
Accounts were closed on Dec. 31 every year. The sales for the year 2018 was ₹ 6,00,000 and the profits
were ₹ 60,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹ 2,00,000. The share of
C’s profits in the deceased year’s on the basis of sales was:
(a) ₹20,000
(c) ₹3,000
(b) ₹8,000
(d) ₹4,000
16. A and B were partners sharing profits and losses in the ratio of 7:5. They agreed to admit C as a partner, who 1
was their manager. He got 1/6th share in the profits. He acquired this share as 1/24th from A and 1/8th from
B, the new profit-sharing ratio was to be:
(a) 13:7:4
(b) 7:13:4
(c) 7:5:6
(d) 5:7:6

17. Give the necessary Journal entries in each of the following alternative cases: 3
(i) Realisation expenses of ₹ 1,000 paid by a partner X.
(ii) X, a partner, agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ₹ 1,000 and to bear all Realisation expenses. Actual Realisation expenses amounted to ₹800
were paid by firm.
(iii) ₹ 2,000 for damages claimed by a customer had been disputed by the firm. It was agreed at 75% by a
compromise between the customer and the firm.

18. A, B and C sharing profits and losses in the ratio of 3:2:1 decided to admit D for 1/5th share with effect from 3
1st April, 2022. An extract of their Balance Sheet as at 31st March, 2022 is:
Liabilities ₹ Assets ₹
Investment Fluctuation Reserve 30,000 Investment (At Cost) 5,00,000
Show the accounting Journal treatment under the following alternative cases:
Case 1. If the market value of investments is ₹ 5,00,000.
Case 2. If the market value of investments is ₹ 4,55,000.
OR
Mohan, Sohan, and Rohan were partners in a firm sharing profits and losses in the ratio 5:4:6. On 30th April
2021, Rohan died, and the new profit-sharing ratio between the remaining partners was decided to 5:2. On
the date of death, Workmen Compensation Reserve showed a balance of ₹ 20,000. There was a claim against
Workmen Compensation Reserve for ₹ 34,500.
Pass the necessary Journal Entries.

19. Zen Ltd., purchased building worth ₹ 1,50,000, machinery worth ₹ 1,40,000 and furniture worth ₹ 10,000 from 3
Shine Co., and took over its liabilities of ₹ 20,000 for a purchase consideration of ₹ 3,15,000.
Zen Ltd., paid the purchase consideration by issuing 12% Preference shares of ₹ 100 each at a premium of 5%.
Record necessary journal entries.
OR
Sunil Ltd. Issued 8,000, 8% debentures of ₹50 each payable on application. The debentures were
oversubscribed by 3000 8% Debentures and all the money was duly received. As per terms of issue, the
debentures will be redeemable at ₹55 per debenture after 10 years.
Record necessary journal entries regarding issue of debentures.

20. Suman, Vivek and Vinod were partners in a firm sharing profit and losses in the ratio of 5:3:2. Suman retired 3
on 1st April, 2022.After making all adjustments relating to revaluation, goodwill and accumulated profits, etc.
the capital accounts of Vivek and Vinod showed credit balances of ₹3,60,000 and ₹1,40,000 respectively. It was
decided to adjust the capitals of Vivek and Vinod in their new profit-sharing ratio.
Pass necessary journal entries for bringing in or withdrawal of the necessary amounts in cash. Show your
working clearly.

21. Sudhanshu Ltd forfeited certain number of shares of the Face Value ₹ 10 each, for the non-payment of final 4
call money of ₹ 2. These shares were reissued at a discount of ₹ 5 as fully paid up and amount of ₹ 10,800 was
transferred to capital Reserve account.
Pass the necessary journal entries to show the above transactions and prepare Share forfeited account.
22. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3:3:4 as at 31st March, 4
2022 was as follows:
Liabilities ₹ Assets ₹
General Reserve 10,000 Cash 16,000
Bills Payable 5,000 Stock 44,000
Loan 12,000 Investment 47,000
Capitals Land and Building 60,000
Sudha 60,000 Sudha’s Loan 10,000
Rahim 50,000
Kartik 40,000 1,50,000
1,77,000 1,77,000
Sudha died on June 30th 2022. The partnership deed provided for the following on the death of a partner:
(a) Goodwill of the firm be valued at two years purchase of average profits for the last three years.
(b) Sudha's share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for
the year ended 31st March, 2022 amounted to ₹ 4,00,000 and that from 1st April to 30th June 2022 to ₹
1,50,000. The profit for the year ended 31st March, 2022 was ₹ 1,00,000.
(c) Interest on capital was to be provided @ 6% p.a.
(d) The average profits of the last three years were ₹ 42,000.
Prepare Sudha's Capital Account to be rendered to her executor.

23. Anandam Ltd. issued a prospectus inviting applications for 4,00,000 equity shares of ₹ 10 each issued at a 6
premium of 10% payable as:
₹ 3 on Application, ₹ 5 on Allotment (including premium) and ₹ 3 on call. Applications were received for
5,60,000 shares. Allotment was made as follows:
(a) Applicants of 3,00,000 shares were allotted in full.
(b) Applicants of 2,00,000 shares were allotted 50% on prorate basis.
(c) Applicants of 60,000 shares were issued letters of regret.
A shareholder to whom 500 shares were allotted under category (a) paid full amount on shares allotted to him
along with allotment money.
Another shareholder to whom 1,000 shares were allotted under category (b) failed to pay the amount due on
allotment. His shares were immediately forfeited.
These shares were then reissued at ₹ 10 per share as ₹ 7 paid up. Call has not yet been made. Journalise the
above transactions.
OR
Journalise the following transactions
a) Z Ltd. issued ₹ 10,00,000, 11% Debentures of ₹ 100 each at a premium of 5% redeemable at par.
b) K Ltd. issued10 % Debentures at a discount of 10% to a vendor of machinery for payment of ₹ 5,40,000.
c) S Ltd. taken a loan of ₹ 12,00,000 and Issued 15,000 12% debentures of ₹ 100 each as collateral in favour of
State Bank of India. Company opted to pass necessary entry for issue of debentures.

24. A and B were partners sharing profits and losses in the ratio of 3:1. On 1st April, 2022, their capitals were: A ₹ 6
50,000 and B ₹ 30,000. During the year ended 31st March, 2023 they earned a net profit of ₹ 50,000. The terms
of partnership deed are:
(a) Interest on capital is to allowed @ 6% p.a.
(b) A will get a commission @ 2% on turnover.
(c) B will get a salary of ₹ 500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including such commission.
Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000.
After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and
Partners' Capital Accounts.
OR
The Balance Sheet of A, B and C who were sharing profits and losses in the ratio of 1/2, 1/3 and 1/6 respectively
was as follows as on 1st April, 2019.
Liabilities ₹ Assets ₹
Bills Payable 6,400 Cash 25,650
Sundry Creditors 12,500 Bills Receivable 5,400
Profit and Loss Account 4,500 Debtors 17,800
Capitals Stock 22,300
A 40,000 Furniture 3,500
B 25,000 Plant & Machinery 9,750
C 20,000 85,000 Building 24,000
1,08,400 1,08,400
A retired from business on 1st April, 2019 and his share in the firm was to be ascertained on the revaluation of
assets as follows.
Stock ₹ 20,000, Furniture ₹ 3,000; Plant & Machinery ₹ 9,000; Building ₹20,000; ₹ 850 was to be provided for
doubtful debts. The goodwill of the firm was valued at ₹ 6,000.
A was paid ₹ 11,500 in cash on retirement and the balance in three equal yearly instalments with interest @
9% per annum starting from March 31, 2020.
Prepare Revaluation A/c, A’s Capital A/c and A’s Loan A/c till final payment is made to him.

25. Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5:3:1, On 2.3.2015, their firm was 6
dissolved. The assets were realized and the liabilities were paid off. Given below are the realization account,
partners' Capital Accounts and bank account of the firm. The accountant of the firm left a few amounts
unposted in these accounts.
You are required to complete these accounts by posting the correct amounts:
Dr. Realisation Account Cr.
Particulars ₹ Particulars ₹
To Stock A/c 10,000 By Provision for Bad Debts 5,000
To Debtors A/c 25,000 By Sundry Creditors 16,600
To Plant and Machinery 40,000 By Bills Payable 3,400
To Bank A/c: By Mortgage Loan 15,000
Sundry Creditors 16,000 By Bank A/c (Asset Realised)
Bills Payable 3,400 Stock 6,700
Mortgage Loan 15,000 34,400 Debtors 12,500
To Bank A/c(Outstanding Repairs) 400 Plant & Machinery 36,000
To Bank A/c (Expenses) 620 By Bank (Unrecorded Asset) 6,220
By ____________________ -------
1,10,420 1,10,420

Dr. Partner’s Capital Account Cr.

Particulars Bora Singh Ibrahim Particulars Bora Singh Ibrahim
To ………………………. By Balance b/d 22,000 18,000 10,000
To ………………………. By General Reserve 2,500 1,500 500
24,500 19,500 10,500 24,500 19,500 10,500

Dr. Bank Account Cr.

Particulars ₹ Particulars ₹
To Balance b/d 19,500 By Realisation A/c (Liabilities) 34,400
To Realisation A/c (Asset Realised) 55,200 By Realisation A/c (Unrecorded Liabilities) 400
To ……………………………. ….. By …………………… …..
By……………………. …..
80,920 80,920
26. X Ltd invited applications for issuing 5,00,000 equity shares of ₹ 10 each at par. 6
The amount per share was payable as follows
On application – ₹ 1 per share; On allotment – ₹ 2 per share; On first call – ₹ 3 per share; On second and final
call – Balance amount
Applications for 8,00,000 shares were received. Applications for 1,00,000 shares were rejected and pro-rata
allotment was made to the remaining applicants. Excess money received with applications was adjusted
towards sums due on allotment. All calls were made. Ashok, a shareholder, holding 5,000 shares failed to pay
the allotment and the call money. Mohan, a shareholder who had applied for 7,000 shares, failed to pay the
first and second and final call. Shares of Ashok and Mohan were forfeited after the second and final call. Of the
forfeited shares, 8,000 shares were re-issued at ₹ 12 per share fully paid-up. The re-issued shares included all
the forfeited shares of Ashok.
Answered the following questions:
1.The excess money on application transferred towards allotment
a. ₹ 2,00,000
b. ₹ 3,00,000
c. ₹ 4,00,000
d. ₹ 1,80,000

2. The excess money on application refunded

a. ₹ 2,50,000
b. ₹ 1,20,000
c. ₹ 1,00,000
d. ₹ 95,000

3. Amount Received on allotment

a. ₹ 6,92,000
b. ₹ 7,92,000
c. ₹ 9,72,000
d. ₹ 9,62,000

4. Amount Received on first call

a. ₹ 13,70,000
b. ₹ 14,70,000
c. ₹ 15,70,000
d. ₹ 12,70,000

5. Total amount on share forfeited of Ashok and Mohan’s shares

a. ₹ 22,000
b. ₹ 33,000
c. ₹ 22,600
d. ₹ 23,500

6. Amount of share forfeiture transferred to capital account after reissue

a. ₹ 22,000
b. ₹ 15,000
c. ₹ 16,000
d. ₹ 4,14,400
PART B (Analysis of Financial Statements)
27. Ratio Analysis under financial analysis is significant as it: 1
(a) Ignores qualitative factors
(b) Helps in window dressing
(c) Does not requires any standards
(d) Helps in locating weak points of the firm
OR
Ratios are the measure of the speed with which various accounts are converted into revenue from operations
or cash.
(a) Activity
(b) Liquidity
(c) Deb
(d) Profitability
28. What will be the Creditors Turnover Ratio? 1
Total Purchase ₹ 1,70,000
Cash Purchase ₹ 16,000
Purchase Return ₹ 8,000
Creditors in the beginning ₹ 24,000 Creditors at the end of year ₹ 32,000
(a) 5.12 times
(b) 5.16 times
(c) 5.21 times
(d) 5.25 times
29. Z Ltd. redeemed ₹ 1, 00,000, 9% debentures at 10% premium. What will be the amount of Cash flow from 1
financing activities?
(a) ₹ 1,10,000
(b) ₹ 1,00,000
(c) ₹ 10,000
(d) None of these
OR
Dividend received by financial enterprise is shown in cash flow statement under:
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of the Above
30. Calculate purchase amount of furniture. 1
Closing Balance (₹) Opening Balance (₹)
Furniture 4,20,000 4,00,000
Depreciation 1,10,000 1,00,000
Furniture costing ₹ 40,000 with its accumulated depreciation of ₹ 24,000 was sold for ₹ 20,000.
(a) ₹ 40,000
(b) ₹ 50,000
(c) ₹ (70,000)
(d) ₹ (60,000)
31. Under which Heads and sub-headings will the following items be shown in the Balance Sheet of a company 3
Schedule III, Part I of the Companies Act, 2013.
(i) Long-term loan (ii) Capital Redemption Reserve.
(iii) Provision for Tax (iv) Goodwill.
(v) Proposed Dividends (vi) Brand/Trade-marks.
32. Fill up the missing figures: 3
Comparative Statement of Profit & Loss
For the years ended 31st March, 2022 and 2023
Particulars Note 2021-22 2022-23 Absolute %
No. Change Change
i. Revenue from Operations 40,00,000 ? 20,00,000 ?
ii. Less: Expenses:
Cost of Material Consumed ? 30,00,000 10,00,000 ?
Other Expenses 4,00,000 ? 150
Total Expenses ? ? ? ?
iii. Profit before Tax ? ? ? ?
iv. Tax 40% ? ? ? ?
v. Profit after tax ? ? ? ?

33. Assuming that the debt equity ratio is 2:1. State giving reasons whether this ratio would increase, decrease, or 4
remain unchanged in the following cases:
(i) Purchase of fixed assets on a credit of two months
(ii) Purchase of fixed assets on long-term deferred payment basis
(iii) Issue of new shares for cash
(iv) Issue of bonus shares
OR
From the following information, calculate the following ratios: (i) Liquid ratio
(ii) Gross profit ratio
Information:
Revenue from operations (Net sales) ₹ 4,00,000, opening inventory ₹ 10,000, closing inventory ₹ 3,000 less
than the opening inventory, net purchase 80% of revenue from operations, direct expenses ₹ 20,000, current
assets ₹ 1,00,000, prepaid expenses ₹ 3,000, current liabilities ₹ 60,000, 9% debentures ₹ 4,00,000, long-term
loan from bank ₹ 1,50,000, equity share capital ₹ 8,00,000 and 8%preference share capital ₹ 3,00,000.
34. From the following information, Compute cash flow from operating activities 6
st st
Particulars Note No. 31 March 2022 31 March 2021
₹ ₹
I) Equity and Liabilities:
1. Shareholders’ Funds
a) Share Capital 7,00,000 5,00,000
b) Reserve and Surplus 4,70,000 2,50,000
2. Non-current Liabilities
Long Term Borrowings (8% Debentures) 4,00,000 6,00,000
3. Current Liabilities
a) Trade Payables 9,00,000 6,00,000
Total 24,50,000 19,50,000
II) Assets:
1. Non – Current Assets
a) Property, Plant & Equipment
i) Tangible 7,00,000 5,00,000
ii) Intangible – Goodwill 1,70,000 2,50,000
2. Current Assets
a) Inventories 6,00,000 5,00,000
b) Trade Receivables 6,00,000 4,00,000
c) Cash and cash equivalents 4,00,000 3,00,000
Total 24,70,000 19,50,000
Additional Information:
Depreciation Charge on the plant amount to ₹ 80,000.
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