KENDRIYA VIDYALAY SANGATHAN, JAMMU REGION

SAMPLE PAPER SET-2

CLASS-XII SUBJECT-ACCOUNTANCY
TIME: 3 HOURS M.M. – 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 consist of Accounting for Partnership Firms and Companies
4. Part - B consist of Analysis of Financial Statements
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.

1. Part A :- Accounting for Partnership Firms and Companies.

QUESTI QUESTION MAR
ON NO. KS
1 Yash and Manan are partners sharing profits in the ratio of2:1. They admit 1
Kushagra into partnership for 25% share of profit. Kushagra
acquired the share from old partners in the ratio of 3:2. The new
profit-sharing ratio will be:
a) 14:31:15
b) 3:2:1
c) 31:14:15
d) 2:3:1

2 True/ False: 1
Securities premium received on issue of shares cannot be used for the
purpose of buy back of shares.
Or
1. Excess value of net assets over purchase consideration at the time
of purchase of business is credited to:
a. General reserve
b. Capital reserve
c. Vendor's account
d. Goodwill account.
3 U V and W are partners sharing profits in the ration of 2:3:5. They also 1
decide to record the effect of the following revaluations and
reassessments without affecting the book values of assets and
liabilities by passing a single adjustment entry:

Book Value (Rs) Revised Value

(Rs)

Land and Building 3,00,000 3,50,000

Furniture 1,50,000 1,00,000

Sundry Creditors 60,000 20,000

Outstanding Salaries 10,000 15,000

The single adjustment entry will

(a) Dr. W and Cr. U by 10,500

(b) Dr. U and Cr. W by Rs. 10,500

(c) Dr. V and Cr. U by Rs. 10,500

(d) Dr. W and Cr. V by Rs. 10,500

4 10% debenture issued at Rs105 is repayable at Rs110, the face value of 1

debenture being Rs100. Calculate the amount of loss on redemption of
debentures:
a. 10
b. 5
c. 15
d. 25.
OR

A ltd took over the assets of Rs6,60,000 and liabilities of Rs80,000 of B

 Ltd for an agreed purchase consideration of Rs6,00,000 payable 10% in
cash and the balance by issue of 15% debentures of Rs100 each at 10%
discount. The number of debentures to be issued is:
e. 6600
f. 5400
g. 6000
h. 4500

5 The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 1

each. There were no calls in arrear till the final call was made. The final
call made was paid on 97,500 shares. The calls in arrear amounted to
Rs.87,500.The final call on share :
A)Rs.20
B)Rs.35
C)Rs.25
D)Rs.45

6 A and B are partners sharing profit and losses in ratio of 5:3. C is admitted 1
for 1/4th share. On the date of reconstitution, the debtors stood at Rs
40,000, bill receivable stood at Rs. 10,000 and the provision for
doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000
which was discounted from the bank, earlier has been reported to be
dishonored. The firm has sold, the debtor so arising to a debt
collection agency at a loss of 40%. If bad debts now have arisen for
Rs 6,000 and firm decides to maintain provisions at same rate as
before then amount of Provision to be debited to Revaluation
Account would be:
a) Rs 4,400
b) Rs 4,000
c) Rs 3,400
d) None of the above

7 If a partner withdraws `40,000 out of his capital. Its effect will be recorded 1
as:
a) Deducted from capital while calculating interest on capital,
b) Used for the calculation of interest on drawings,
c) Both a and b,
d) None of these.
OR
Any change in the relationship of existing partners which results in an end
 of the existing agreement and enforces making of a new agreement is
called:
a) Realisation of Partnership
b) Revaluation of partnership
c) Reconstitution of partnership
d)None of the above

Read the following hypothetical text and answer the given questions 1

Amit and Mahesh are partners in fast food sharing profits and losses in
3:2. They sold fast food item across the counter and did free home
delivery also. Their initial fixed capital contribution was Rs. 120000 and
Rs. 80000 respectively.
At the end of the first year their profit was Rs. 120000 before allowing the
remuneration of Rs. 3000 per quarter to Amit paid Rs. 2000 per half year
to Mahesh. Such a promising performance for the first year was
encouraging, therefore they decided to expend the area of operations.
For the purpose they needed a delivery van a few Scotties and an
additional person to support. 6 months into the accounting year decided to
admit Sundaram as a new partner and Offred his 20% as a share of profit
along with monthly remuneration of Rs. 1200. Sundaram was asked to
introduce Rs. 130000 for capital and Rs. 70000 for premium for goodwill.
Besides the Sundaram was acquired to provide Rs. 100000 as loan for 2
years. Sundaram readily accepted the offer. The terms of the offer were
duly executed and was admitted as a partner.

8 Remuneration will be transferred to --------- of Amit and Mahesh at the

end of the accounting year.
(a) Capital account
(b) Loan account
(c) Current account
(d) None of the above

9 Upon the admission of Sundaram the sacrifice for providing his share of
profits would be below
(a) By Amit omly
(b) By Mahesh only
(c) By Amit and Mahesh equally
 (d) By Amit and Mahesh in the ratio of 3:2

10 Sundaram will be entitled to a remuneration of ----------- at the end of the

year.
(a) Rs. 10000
(b) Rs. 15000
(c) Rs. 20000
(d) Rs. 25000

11 For the amount of the loan that Sundaram has agreed to provide he is
entitled to interest thereon at the rate of ----------
(a) 6%
(b) 5%
(c) No interest will be provided
(d) 8%

12 X and Y are partners in 3:2. They decided to change the ratio in equal 1
proportion. At that time reserve appears in the books worth ` 20,000. What
will be the treatment of reserve if the partners do not want to distribute?
a) General reserve account Dr 20,000
To X
12,000
To Y
8,000
b) General reserve account Dr 20,000
To X
10,000
To Y
10,000
c) Y' Capital a/c Dr. 2,000
To X's capital account 2,000
d) None of these.

13 E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on 1

pro-rata basis, application money on another 6000 shares was
refunded .The amount payable on the application was Rs.2. Sitar aman
applied for 420 shares . The number of shares allotted to him will be:
(A.) 60 shares
(B.) 340 shares
(C.) 320 shares
 (D.) 300 shares

OR

If a partner withdrew `10,000 in the end of each quarter throughout the

year. For what period interest will be calculated on his drawings?
a) 7.5 months,
6.5 months,
b) 5.5 months,
4.5 months.

14 Amount of money not received out of called up capital is : 1

(A.) Added to share capital
(B.) Subtracted from share capital
(C.) Shown as current liabilities
(D.) Shown as current asset

15 Match the following: 1

i. Sacrificing Ratio A Nominal Account
ii. Gaining Ratio B Reconstitution of Partnership
iii. Revaluation Account C New Ratio – Old Ratio
iv. Admission of a Partner D Old Ratio – New Ratio

a) i- B, ii-C, iii-A, iv-D

b) i- D, ii-B, iii-A, iv-C
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A
OR
E,F and G are partners sharing profits and losses 3:3:2. As per partnership
agreement G is to get a minimum amount of Rs. 80000 as his share of
profit every year. Any deficiency on his account is to be personally borne
by E. the net profit for the year ended 31st march 2020 amounted to Rs.
312000. Calculate the amount of deficiency to be borne by E
(a) 1000
(b) 2000
 (c) 3000
(d) 4000

16 In case of dissolution A one of the partner was paid only RS5000 for his 1
loan to the firm which amounted to Rs5500. Rs 500 will be recorded in
which account and on which side:
a. Realisation account credit side correct
b. Realisation account debit side
c. loan account debit side
d. A's capital account credit side.

17 M, B and K are partners sharing profits in the ratio of 6:4:1. K is 3

guaranteed a minimum profit of Rs. 2,00,000. The firm incurred a loss of
Rs. 22,00,000 for the year ended 31st march 2018. Pass necessary journal
entry regarding deficiency borne by M and B and prepare profit and loss
appropriation A/c.

OR
The partners of a firm, A,B and C distributed the profits for the year ended
31st march, 2017, Rs. 80,000 in the ratio of 3:3:2 without providing for the
following adjustments:
a) A and C were entitled to a salary of Rs. 1,500 each p.m.
b) B was entitled for a salary of Rs. 4,000 p.a.
Pass necessary journal entry for the above adjustment
18 A, B and C are partners in a firm whose books are closed on March 31 3
each year. A died-on 30th June, 2021 and according to the agreement, the
share of profits of a deceased partner up to the date of the death is to be
calculated on the basis of the average profits for the last five years.
The net profits for the last 5 years have been: 2017- ₹ 14,000;
2018- ₹ 18,000; 2019- ₹ 16,000; 2020- ₹10,000 (loss) and 2021- ₹
16,000. Calculate A’s share of the profits upto the date of death and pass
necessary journal entry.

19 P Ltd. Purchase business from Q Ltd. for a sum of 3,00,000, payable a 3

80,000 by issuing a cheque and the balance in fully paid equity shares of
100 each at 10% premium.
The assets and liabilities consisted the following:
Building 4,00,000 Bills Payable 30,000
Bills Receivables 50,000 Sundry creditors
 40,000
Pass necessary journal entries in the books of P Ltd.
OR
Venus ltd is a real estate co. The company took over assets of Rs
10,00,000and liabilities of Rs 1,80,000 of Cains Ltd for Rs 7,60,
000.Venus Ltd. issued 9% debentures of Rs 100 each at a discount of 5%
in full satisfaction of purchase consideration in favour of Cains ltd
Pass journal entries in books of Venus Ltd.

20 The net assets of the firm including fictitious assets of 5,000 are 3
85,000.The net liabilities of the firm are 30,000.The normal rate of return
is 10% and the average profits of the firm are 8,000.Calculate the goodwill
as per capitalization of super profits.

21 On 1st april 2017 Aradhana Ltd. Was formed with an authorised capital of 4
Rs. 90,00,000 divided into 90,000 shares of Rs. 100 each. The company
invited applications for issuing 75,000 equity shares.
The amount was payable as follows:
On application----- Rs. 20 per share
On allotment------- Rs. 50 per share
On first and final call Balance amount
The issue was fully subscribed and the company allotted shares to all the
applicants. All money was received except the first and final call on 5,000
shares.
1. Show the share capital in the balance sheet of the company as per
schedule III of the companies act, 2013 as at 31st march, 2018 and
also show notes to A/c.

OR
Shyam Ltd. Obtained a loan of Rs 5,00,000 from State Bank of India at
10% interest.
The company issued Rs 7,50,000, 10% debentures of Rs 100 each in
favour of State Bank of India as collateral security. Pass necessary journal
entries for the above transactions:
(i) When the company decided not to record the issue of 10%
 Debentures as collateral security
(ii) When the company decided to record the issue of 10%
Debentures as collateral security

22 The firm of Rakesh, Kunal and Suresh was dissolved on 31.03.2019. pass 4
necessary journal entries for the following after various assets (other than
cash and bank) and the Third party liabilities had been transferred to
realisation A/c.
(i) Kunal agreed to pay of his wife’s loan of Rs. 6,000.
(ii) Total creditors of the firm were Rs. 40,000. Creditors worth Rs.
10,000 were given a piece of furniture costing Rs. 8,000 in full
and final settlement. Remaining creditors allowed a discount of
10%.
(iii) A machine that was not recorded in the books was taken over by
Kunal at Rs. 3,000 whereas its expected value was Rs. 5,000.
The firm had a debit balance of Rs. 15,000 in the profit and loss A/c on
the date of dissolution.
23 6
Creative Ltd issued equity shares Rs.10,00,000 divided into Rs.10 shares
at a premium @ 20% per share, payable as under:
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First and Final Call Balance
Over payments on application were to be applied towards sums
due on allotment. Where no allotment was made, money was to be
refunded in full. The issue was oversubscribed to the extent of 1,20,000
shares. Applicants for 10,000shares were sent letters of regret. Shares
were allotted in full to the remaining applicants. All the money due was
duly received except a shareholder who applied for 110 shares failed to
pay allotment and first call his share were forfeited and re-issue at Rs.950
fully paid up.
Give Journal Entries to record the above transactions in the books of the
company.
Or
x limited company invites applications for 50,000 equity shares of Rs. 10
each, at a maximum discount by the Companies Act, payable as follows:
On application Rs. 3; on allotment Rs. 3; on first call Rs. 2; on final call
the balance.
Applications were received for 55,000 shares. Allotments were made on
the following
 basis:
(i) To applicants for 35,000 shares- in full
(ii) To applicants for 20,000 shares- 15,000 shares.
(i) Excess money paid on application was utilized towards
allotment money. A shareholder who was allotted 1,500 shares
out of the group applying for 20,000 shares Failed to pay
allotment money and money due on calls. These shares were
forfeited. 1,000 forfeited shares were reissued as fully paid on
receipt of Rs. 8 per share. Pass journal entries.

24 L and M share profits of a business in the ratio of 5:3. They admit 6

N into the firm for fourth share in the profits to be contributed
equally by L and M. On the date of admission the balance sheet of
L and M was as follows:

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

Capitals: Machinery 26,000

L 30,000 Furniture 18,000

M 20,000 Stock 10,000

Reserve Fund 4,000 Debtors 8,000

Bank Loan 12,000 Cash 6,000

Creditors 2,000

68,000 68,000

The terms of N’s admission were as follows:

i) N will bring Rs. 25,000 as his capital.
ii) Goodwill of the firm is to be valued at 4 years purchase of
the average super profit of the last three years.
 Average profits of the last three years are Rs.20,000. While the
normal profits that can be earned on the capital employed are
Rs.12, 000.

Furniture is to be revalued at Rs.24,000 and the value of the stock to be

reduced by 20%. Prepare revaluation account, partners capital and balance
sheet of the firm after admission of N.

OR

The Balance Sheet of A,B and C who were sharing profits and losses in
the ratio of ½, 1/3, and 1/6 respectively, was as follows on 01/04/2018:

Liabilities Amount (Rs.) Assets Amount (Rs.)

Bills Payable 6,400 Cash 25,650
Sundry 12,500 Bills Receivable 5,400
Creditors
A’s Capital 40,000 Debtors 17,800
B’s Capital 25,000 Stock 22,300
C’s Capital 20,000 Furniture 3,500
Profit & Loss 4,500 Machinery 9,750
A/cs
Buildings 24,000
1,08,400 1,08,400

‘A’ retired from the business on 01/01/2018 and his share in the firm was
to be ascertained on the revaluation of the assets as follows:
(i) Stock Rs 20,000, Furniture Rs 3,000, Plant & Machinery Rs
9,000, Building Rs 20,000
(ii) Rs 850 was to be provided for doubtful debts
(iii) The Goodwill of the firm was valued at Rs 6,000
(iv) ‘A’ was to be paid Rs 11,500 in cash on retirement and the
balance in three equal yearly instalments with interest at 9%
per annum.
Prepare revaluation acc, capital acc of partners.
25 A ,B and C are partners in a firm sharing profits in the ratio of 5:3:2 on 1st 6
april 2016, the capitals of the partners were Rs.500000, Rs.300000, and
200000, respectively. The firm closes its books on 31st march every year,
C dies on 5 april 2016, On this that :
a. goodwill of the firm was valued at Rs.30000, and
b. gain on Revaluation was calculated at Rs.8000
c. Advertisement Suspense Account appearing in the books was
Rs.10000
d. C’s share of profit till the date of his death was calculated as
Rs.200.
Prepare C’s capital a/c to be rendered to his executors.

26 Journalise the following transactions: 6

(a) Mehar Ltd. Issued Rs. 1,00,000, 12% debenture of Rs. 100 each at
a premium of 5% redeemable at a premium of Rs. 2%.
(b) 12% debenture were issued at a discount of 10% to a vendor of
machinery for payment of Rs. 9,00,000.
(c) Issued of 10,000 11% debenture of Rs. 100 each as a collateral in
the favour of state bank of india. Company opted to pass necessary
entry for issue of debentures.

OR
Faith and belief Ltd. Has total redeemable debenture of Rs. 5,00,000. It
decides redeem these debentures in two instalment of Rs. 3,00,000 and Rs.
2,00,000 on December 31st march 2018 and march 2020 respectively.
Assuming that the company has sufficient funds in debenture redemption
reserve A/c. Pass necessary journal entries for the year ending march
31st,2020.
PART B
27 Assuming liquid ratio of 1.2:1 cash collected from debtors would 1
1) increase
2) decrease
3) no effect

28 Interest received by other than financial enterprise is shown in the Cash 1

Flow Statement under ………………..activity
(a) Financing activity
(b) Operating activity
(c) Investing activity
 (d) None of these
OR
Which of the following is not a limitation of Finnancial Statement
Analysis?
a) ignores the Qualitative elements
b) not free from personal bias
c) intra-firm comparison
d) ignores the price level changes

29 Sale of a machinery costing Rs 70,000 (accumulated depreciation of Rs 1

40,000) is sold at a profit of 20%. The amount of cash inflow will be:
(a) Rs 30,000
(b) Rs 70,000
(c) Rs 36,000
(d) Rs 48,000

30 Which of the following is not included in cash and cash equivalents? 1

(a) Balance with banks
(b) Bank deposits with 100 days of maturity
(c) Cash in hand
(d) Bank deposits with 90 days of maturity

OR
Which of the following is not a part of cash and cash equivalents:
a) marketable securities b) Current investments c)short-
term deposits d)stock

31 Under which head and subhead, the following items will be shown in B/S 3
of a company as per companies Act 2013?
1. Creditors
2. Calls on advance
3. Copyright
4. Investment
5. Unclaimed dividend
6. Interest accrued
32 Explain three advantages of financial statements. 3
33 a) From the following information, calculate inventory turnover ratio: 4
Net sales Rs 4,00,000,
Average inventory Rs 55,000,
Gross loss on sales is 10%.
b) A company had current Assets of Rs 3,00,000 and current liabilities of
Rs 1,40,000. Afterwards it purchased goods for Rs 20,000 on credit.
Calculate current ratio after the purchase.

34 6
Prepare of Cash Flow Statement on the basis of the information given
in the Balance Sheet of Useless Limited
Particulars Note No 31-03-2014 31-03-2013
(Rs.) (Rs.)
1 2 3 4
I.EQUITY AND
LIABILITIES
1.Share Holder’s Fund
(a)Share Capital 70,000 60,000
(b)Reserve and Surplus 1 44,000 8,000
2. Non-Current Liabilities
a) Long term borrowings: 2 50,000 50,000
3.Current Liabilities
(a)Trade Payables 25,000 9,000
TOTAL 1,89,000 1,27,000
II.ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible assets 98,000 84,000
(b) Non-current 16,000 6,000
investments
2) CURRENT ASSETS
(a) Current investments 18,000 20,000
(Marketable) 49,000 12,000
(b) Inventories 8,000 5,000
(c) Cash & Cash
Equivalents
TOTAL 1,89,000 1,27,000

Notes to Accounts
Particulars
1. Reserves & Surplus
General Reserve 30,000 20,000
Surplus i.e. Balance in 14,000 (12,000)
Statement of Profit and
Loss
Additional information:-
(a)Depreciation provided on tangible assets (Machinery) Rs.8,000
for the year.
(b)Interest paid on debenture Rs. 5,000.