Delhi Public School, Sitapur

I Term Exam 2024-25

Time: 3Hrs. Class XII Subject: Accountancy MM: 80

General Instructions:
1. There are 32 questions in this Question paper and all are compulsory.
2. Question No.1 to 20 are very short answer type questions carrying 1 mark each.
3. Answer should be brief and to the point and the answer of each part should be written at one place.
4. There is no overall choice, however an internal choice has been provided in 2 questions of 8 marks (Question 31 and 32.)

1. Which types of partnership have no agreement in terms of the duration of partnership? 1

a. Partnership-at-will b. Limited partnership c. General partnership d. Particular partnership
2. A and B are partners sharing profits in the ratio of 1:2. C was manager, who received the salary of R.s 10000 p.m in addition to
commission of 10% on net profit after charging such commission total remuneration to C amounted to R.s 180000. Profit for the
year after charging salary and commission was
a. R.s 720000 b. R.s 600000 c. R.s 780000 d. R.s 660000 1
3. X, Y and Z are partners sharing profits and losses in the ratio of 6:4:1. X has guaranteed Z for his minimum profit of Rs. 15000
firm’s profit was Rs. 99000. In the firm profit X’s share will be:
a. Rs. 30000 b. Rs. 48000 c.Rs. 15000 d.Rs. 45000 1

4. Capital employed Rs. 800000, Normal rate of return 15%, Profit for the year Rs. 1200000. The value of goodwill of the firm as
per capitalization:
a. Rs. 8200000 b. Rs. 1200000 c. Rs. 4200000 d. Rs. 7200000 1

5. A and B share profits and losses in the ratio of 3:2 with effect from 01.04.2021. They agreed to share profits equally sacrificing
ratio and gaining ratio will be 1
a. Sacrifice by A 1/10, Sacrifice by B 1/10 b. Gain by A 1/10, Gain by B 1/10
c. Sacrifice by A 1/10, Gain by B 1/10 d. Gain by A 1/10, Sacrifice by B 1/10

6. Sacrificing Ratio:
a. New Ratio – Old Ratio b. Old Ratio – New Ratio c. Old Ratio – Gaining Ratio d. Gaining Ratio – Old Ratio 1

7. Sacrificing ratio is used to distribute in case of admission of a partner.

a. Reserves b. Goodwill c. Revaluation Profit d. Balance in Profit & Loss Account 1

8. A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share remaining profits in the ratio of 3:2.
Find the profit sharing ratio of A, B, C & D.
a. 5 : 5 : 3 : 2 b. 7 : 7 : 6 : 4 c. 2.5 : 2.5 : 8 : 6 d. 3 : 9 : 8 : 3 1

9. A, B and C sharing profits in the ratio of 4:3:2. A retires B and C decided to share profitsin the future in the ratio of 5:3. Gaining
ratio will be
a. 11:21 b. 21:11 c. 11:13 d. 13:11 1
10. A, B and C have been sharing profits in the ratio of 4:2:1. C retires. A and B take C’s share equally. New profit-sharing ratio
will be
a. 5:2 b. 5:3 c. 9:5 d. 4:2 1
11. On the death of a partner the amount due to him will be credited to 1
a. All Partner’s Capital Accounts b. His Executor’s Account
c. Remaining Partner’s Capital Account d. Government’s Revenue Account
12. Profit and Loss Suspense Account is closed by transferring its balance to Account 1
a. Profit and Loss Account b. Profit and Loss Appropriation Account
c. Remaining Partner’s Capital Account d. None of these
13. Which of the following statement does not relate to Reserve Capital 1
a. It is a part of uncalled capital of a company b. It cannot be used during the lifetime of a company
c. It can be used for writing off Capital losses d. It is a part of Subscribed Capital
14. What happens when interest on drawings is charged to partner? 1
a. Credited to partner’s current a/c b. Not shown in current account
c. Debited to partner’s capital a/c d. None of the above
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15. What percentage of the partners’ capital is charged interest on without a partnership deed? 1
A) 6 % Per annum B) 12 % Per annum C) 14 % Per annum D) No interest is levied
16. Which of the partnership firm’s accounts cannot record rent paid to partners? 1
A) Depreciation Account B) Expenses Account
C) Profit & Loss Account D) Salary Account
17. In the absence of a partnership agreement, how will the earnings be split among the partners? 1
A) Equal B) Depending on the capital invested. C) Unequal D) Depending on the work experience.
18. What is a partner in profits only? 1
A) A person who gives some money to a business but doesn’t play a big role in running it.
B) A person who has a stake in the partnership and is involved in the day-to-day running.
C) An 18-year-old partner
D) A partner who gets into an agreement to share only the profits of the partnership firm and not the losses.
19. In what kind of relationship does one partner have known risk, and the other has limited obligation? 1
A) Particular Partnership B) Limited Liability Partnership
C) General Partnership D) Partnership At will provide no reason,
20. In the lack of a partnership agreement, which of the following rules governs the partnership firm?
A) Partner pay is determined by how much they make.
B) Six per cent Interest on Drawings: The profit-sharing ratio is the same.
C) No interest shall be charged on capital D) All

21. On 01.04.2021 an existing firm had assets of Rs. 75000 including cash of Rs. 5000. The Partner’s Capital Account showed a
balance of Rs. 60000 and reserves constitute the rest. If normal rate of return is 10% and the goodwill of the firm is valued
at Rs. 24000 at four year’s purchase of super profits. Find average profits of the firm. 3
22. State the average period taken for calculating interest on drawings in different cases if the amount has been withdrawn at
a regular interval? 3
23. P, Q and R are partners in a firm sharing profits and losses in the ratio of 2:1:2.
Their fixed capitals were Rs. 300000, Rs. 100000 and Rs. 200000 respectively. Interest on capital for the year ended
31.03.2021 was credited to them @ 9% p.a. instead of 12% p.a. Pass necessary adjustment entry. 4
24. A and B started business on 01.04.2020 with capitals of Rs. 200000 and Rs. 150000respectively. The partnership deed
provided: - 4
i. Interest on capital @ 10% p.a
ii. A to get a salary of Rs. 2000 p.a and B Rs. 3000 p.m
iii. Profits are to be shared in the ratio of 3:2. The profit for the year ended 31.03.2021 before making above
appropriation were Rs. 216000. Interest on Drawings amounted to Rs. 2200 for A and Rs. 2500 for B. Prepare
Profit and Loss Appropriation Account.

25. X and Y are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as at31.03.2021 as follows:

Liabilities Amount (Rs.) Asset s Amount (Rs.)

X’s Capital 54000 Cash 18000

Y’s Capital 36000 Plant 36000
36000
Creditors Building 72000

126000 126000

The goodwill of the firm has been valued at Rs. 36000 and the building at Rs. 90000 on 31.04.2021. The partners decide to
share profits equally with effect from 01.04.2013. You are required to record the necessary journal entries to be made in
the books of firm on account of change in profit sharing ratio without affecting the existing figure of building. 4

26. Pass the necessary journal entries for the following transactions on the dissolution of the firm of R and S after the various
assets (other than cash) and outside liabilities have been transferred to Revaluation Account 4
a) Stock Rs. 60000 was taken over by R for Rs. 50000
b) S agreed to pay his wife’s loan Rs. 70000
c) Creditors of Rs. 20000 paid Rs. 17000 in full settlement
d) Loss on dissolution was divided between R and S equally (Rs. 9000)

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27. Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires from the firm. On his date of retirement, Rs.
60,000 becomes due to him. Amrinder and Joginder promised to pay him in instalments every year at the end of the year
to which he agreed. Prepare Mahinder’s Loan Account. When payment is made four yearly instalments plus interest @
12% p.a. on the unpaid balance. 4

28. Explain the meaning of Goodwill along with its accounting standard and also explain the need and valuation of Goodwill.
6

29. Balance Sheet of P, Q and R as at 31st March, 2018, who were sharing profits in the ratio of 5 : 3 : 1 , was:
Amount Amount
Liabilities Assets
(₹) (₹)
Bills Payable 40,000 Cash at Bank 40,000
Loan from Bank 30,000 Stock 19,000
Reserve Fund 9,000 Sundry Debtors 42,00

Capital A/cs: 5,800 Less: Provision for D. Debts 2,000 40,000

P 44,00

Q 36,00 Building 40,000

R 20,00 1,00,000 Plant and Machinery 40,000

1,79,000 1,79,000

The partners dissolved the business. Assets realised:

Stock ₹ 23,400; Debtors 50%; Fixed Assets 10% less than their book value . Bills Payable were settled for
₹ 32,000. There was an Outstanding Bill of Electricity ₹ 800 which was paid off. Realisation expenses ₹ 1,250 were
also paid.
Prepare Realisation Account , Partner's Capital Accounts and Bank Account . 6
30. Following is the Balance Sheet of X and Y who share profits and Losses in the ratio of4:1, as at 31.03.2021

Liabilitie Amount Assets Amount

s (Rs.) (Rs.)
Sundry Creditors 8000 Bank 20000
Bank Overdraft X’s 6000 Debtors 17000
Brothers loan Y’s 8000 -- Provisions 2000 15000
Loan 3000 Stock Investments 15000
Investment Fluctuation Fund 5000 25000
X’s Capital Buildings
Y’s Capital 50000 Goodwill 25000
40000 Profit and Loss Account 10000
10000

120000 120000
The firm was dissolved on the above date and following arrangement were decided upon
i. X agreed to pay off his brother’s loan
ii. Debtors of Rs. 5000 proved bad
iii. Other assets realised – Investments 20% less and goodwill at 60%
iv. One of the creditors for Rs. 5000 was paid only Rs. 3000
v. Building were auctioned for Rs. 30000 and auctioneer’s commission amounted to Rs. 1000
vi. Y took over part of stock at Rs. 4000 (being 20% less than book value) Balance stock realised 50%
vii. Revaluation expenses amounted to Rs. 2000
Prepare Relisation Account 6
31. Digvijay, Brijesh and Parakaram were partners in a firm, sharing profits in the ratio of 2:2:1. Their Balance Sheet as on
March 31, 2017, was as follows:

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 Liabilities Amount ₹ Assets Amount ₹

Creditors 49,000 Cash 8,000

Reserves 18,500 Debtors 19,000
Digvijay’s Capital 82,000 Stock 42,000
Brijesh’s Capital 60,000 Buildings 2,07,000
Parakaram’s Capital 75,500 Patents 9,000
2,85,000 2,85,000
Brijesh retired on March 31, 2017, on the following terms:
(i) Goodwill of the firm was valued at ₹ 70,000 and was not to appear in the books.
(ii) Bad debts amounting to ₹ 2,000 were to be written off.
(iii) Patents were considered valueless.
Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of Digvijay and Parakaram after Brijesh’s
retirement. 8

32. Given below is the Balance Sheet of Krishna and Suresh who are partners in a firm sharing profits
in the ratio of 3:2.
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 15000 Plant and Machinery 30000
Reserves 5000 Patents 8000
Krishna Capital 30000 Stock 16000
Suresh Capital 20000 Debtors 15000
Cash 1000
70000 70000
On the above date Mohan is admitted as a partner for 1/5th share on the following terms:-
a) He is to contribute Rs. 14000 as his share of capital which includes his share of premium for goodwill
b) Goodwill is valued at two years purchase the average profits of the last four years which were Rs. 10000. Rs.
9000, Rs. 8000 and Rs. 13000 respectively.
c) Plant to be written down to Rs. 25000 and patents written up by Rs. 8000. Prepare Revaluation Account,
Partner’s Capital Account and Balance Sheet.
OR

Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as on
March 31, 2015, was as follows:

Books of Nithya, Sathya and Mithya

Balance Sheet on March 31, 2015

Liabilities Amount Assets Amount

₹ ₹

Creditors 14,000 Investments 10,000

Reserve Fund 6,000 Goodwill 5,000

Capitals: Premises 20,000

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 Nithya 30,000 Patents 6,000

Sathya 30,000 Machinery 30,000

Mithya 20,000 80,000 Stock 13,000

Debtors 8,000

Bank 8,000

1,00,000 1,00,000

Mithya died on August 1, 2015. The agreement between the executors of

Mithya and the partners stated that:

(a) Goodwill of the firm be valued at 2.5 times the average profits of the
last four years. The profits for four years were: in 2011-12, ₹ 13,000;
in 2012-13, ₹ 12,000; in 2013-14, ₹ 16,000; and in 2014-15, ₹ 15,000.

(b) The patents are to be valued at ₹ 8,000, Machinery at ₹ 25,000 and

Premises at ₹ 25,000.

(c) The share of profit of Mithya should be calculated on the basis of the
profit of 2014-15.

(d) ₹ 4,200 should be paid immediately, and the balance should be paid in 4
equal half-yearly instalments carrying interest @ 10%.

Prepare the Executor account and the Balance Sheet of Nithya and Sathya as
it would appear on August 1, 2015, after giving effect to the adjustments.

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