CBSE Accountancy Class 12 NODIA Sample Paper 8 Page 1

Sample Paper 8
Accountancy
Class XII Session 2023-24
Time: 3 Hours Max. 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. Badal and Deepesh are partners sharing profits and losses in the ratio 4 : 1. Samay was manager who received
the salary of ` 2,000 pm in addition to a commission of 5% on net profits after charging such commission.
Profit for the year is ` 3,39,000 before charging salary. What will be the total remuneration of Samay ?
(a) ` 43,500 (b) ` 38,000
(c) ` 39,000 (d) ` 44,000

2. Calculate interest for the year, when 6% debentures are issued for ` 10,00,000 of ` 100 each.
(a) ` 80,000 (b) ` 6,00,000
(c) ` 6,000 (d) ` 60,000
o
A company can charge interest @_______% p.a. on calls-in-arrears and allow @_______% p.a. on
calls-in-advance.
(a) 12, 10 (b) 5, 6
(c) 8, 10 (d) 10, 12

3. Workmen Compensation Reserve (WCR) appears in the balance sheet of Uday and Abhey who share profits
in the ratio of 2 : 3 at ` 40,000. Vijay is admitted and the new profit sharing ratio is 1 : 1 : 1.
If the claim on account of WCR is estimated at ` 50,000, then
(a) the difference of ` 10,000 will be debited to Uday’s capital account
(b) the difference of ` 10,000 will debited to Abhey’s capital account
(c) the difference of ` 10,000 will be debited to revaluation account
(d) None of the above

4. Assertion (A): Goodwill is treated as an asset of the firm.

Reason (R): Goodwill helps a business to earn more profits and attract more customers.
Alternatives
(a) Assertion (A) is true, but Reason (R) is false
(b) Assertion (A) is false, but Reason (R) is true
(c) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion
(A)

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Page 2 NODIA Sample Paper 8 CBSE Accountancy Class 12

5. At the time of forfeiture of shares, share capital account will be debited with______value.
(a) called-up (b) uncalled
(c) received (d) None of these
o
For writing-off loss on issue of debentures, first of all company use its______and deficiency is met from
surplus balance of statement of profit and loss.
(a) general reserves (b) securities premium reserves
(c) capital reserve (d) Either (a) or (b)

6. Ascertain the correct sequence of deductions of the following items from the profit of the partnership firm.
(i) Interest on capital
(ii) Commission paid to a partner
(iii) Interest on loan from partner
(a) (ii), (iii), (i) (b) (iii), (ii), (i)
(c) (i), (ii), (iii) (d) None of these
o
In the context of debit side of profit and loss appropriation account, pick odd one out.
(a) Interest on Drawings (b) Partner’s Commission
(c) Interest on Capital (d) Partners’ Salaries

7. Rajesh Steel Limited issued 20,000, 9% debentures of ` 50 each at a discount of 8%, redeemable at par at
any time after 9 years. Record journal entry in the books of Rajesh Steel Limited for transferring debentures
application money to debenture account.

(a) Debenture Application A/c Dr. 9,20,000

To 9% Debentures A/c 9,20,000
(b) Debenture Application A/c Dr. 9,20,000
Loss on Issue of Debentures A/c Dr. 1,80,000
To 9% Debentures A/c 10,00,000
To Premium on Redemption of Debentures A/c 1,00,000
(c) Debenture Application and Allotment A/c Dr. 9,20,000
Discount on Issue of Debentures A/c Dr. 80,000
To 9% Debentures A/c 10,00,000
(d) None of the above

8. Harsh Enterprises Limited purchased assets of ` 12,60,000 from Crown Sales Limited. Harsh Enterprises
Limited paid this amount by issuing equity shares of ` 100 each at premium of 20%. You are required to
find out the amount of premium.
(a) ` 2,10,000 (b) ` 12,60,000
(c) ` 10,50,000 (d) None of these

9. Umesh and Suresh are partners sharing profits equally. They admit Yogesh into partnership for equal share.
It was agreed that the firm’s goodwill will be valued at two years’ purchase of average normal profit of the
last three years. Profits of the business for last three years ended on 31st March were
2018 — ` 80,000 (after charging an abnormal loss ` 20,000)
2019 — ` 1,50,000 (including an abnormal gain ` 50,000)
2020 — ` 1,00,000
The value of goodwill will be______
(a) ` 3,00,000 (b) ` 2,50,000
(c) ` 1,00,000 (d) ` 2,00,000

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CBSE Accountancy Class 12 NODIA Sample Paper 8 Page 3

10. Kings Marketing Private Limited is registered with 1,00,000 shares and invited public to apply for the
complete registered capital. Per share value is ` 10 which is payable as ` 2 on application, ` 5 on allotment
and rest on first and final call. What will be the amount that the company will receive till allotment?
(a) ` 10,00,000 (b) ` 7,00,000
(c) ` 2,00,000 (d) ` 5,00,000

11. On 1st January, 2020, a partner advanced a loan of ` 20,000 to the firm. In the absence of agreement,
interest on loan on 31st March, 2020 will be
(a) Nil (b) ` 600
(c) ` 300 (d) ` 1,200

12. Net profit of a firm is ` 9,900. Manager is entitled to a commission of 10% on profit; before charging his
commission. Manager’s commission will be
(a) ` 1,100 (b) ` 970
(c) ` 990 (d) ` 900
o
David is a partner in a firm. He withdraw regularly ` 4,000 every month for the six months ending 31st
March, 2020. If interest on drawings is charged @ 8% p.a., the interest charged will be
(a) ` 560 (b) ` 400
(c) ` 480 (d) ` 960

13. The firm of Virender and Mahender earned a profit of ` 3,25,000 during the year ending on 31st March,
2019. They have decided to donate 10% of this profit to an NGO working for senior citizens. Pass the journal
entry.

(a) Virender’s Capital A/c Dr. 1,46,250

Mahender’s Capital A/c Dr. 1,46,250
To Profit and Loss Appropriation A/c 2,92,500
(b) Profit and Loss Appropriation A/c Dr. 32,500
To Mahender’s Capital A/c 16,250
To Virender’s Capital A/c 16,250
(c) Profit and Loss Appropriation A/c Dr. 2,92,500
To Virender’s Capital A/c 1,46,250
To Mahender’s Capital A/c 1,46,250
(d) None of the above

14. At the time of change in profit sharing ratio, accumulated_____are______in partners’capital account.
(a) losses, credited (b) profits, debited
(c) Both (a) and (b) (d) None of these
o
‘Profit and loss adjustment account’ is_______in nature.
(a) personal (b) real
(c) nominal (d) Both (a) and (b)

DIRECTION : Direction Read the following hypothetical situation and answer Q. No. 15 and 16
3
Donald and Edmond are partners sharing profits in the ratio of 3 : 2. They admit Ziff into the firm for 10 th
2 1
profit,which he takes 10 th from Donald and 10 th from Edmond and brings a part of his share of premium
for goodwill in cash.

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Page 4 NODIA Sample Paper 8 CBSE Accountancy Class 12

Journal

Date Particulars L.F. Dr. (`) Cr. (`)

Bank A/c Dr. 1,20,000
To Premium for Goodwill A/c 1,20,000
(Being share of goodwill brought in by Ziff)
Premium for Goodwill A/c Dr. .........
Ziff’s Current A/c Dr. 3,30,000
To Donald’s Capital A/c .........
To Edmond’s Capital A/c .........
(Being premium for goodwill credited to old partners)

15. What will be the new profit sharing ratio of Donald, Edmond and Ziff ?
(a) 3 : 3 : 4 (b) 3 : 4 : 3
(c) 3 : 3 : 3 (d) 4 : 3 : 3

16. What will be the amount credited to Donald’s capital account ?

(a) ` 3,00,000 (b) ` 3,30,000
(c) ` 1,20,000 (d) ` 1,50,000

17. Jack and Luke are partners in a firm sharing profit and losses in the ratio of 2 : 1. They decide to admit
Ryan as a new partner for 1/3 share on 01.04.2022. For this purpose goodwill of the firm is to be valued on
the basis of two years’ purchase of the average profits/losses for the last 3 years. The profit/loss of the firm
for the last three years were:
Year ending Profit/(Loss) (`)
31st March 2020 3,00,000
31st March 2021 (1,00,000)
31st March 2022 2,50,000
Additional Information:
(a) There was an abnormal loss of ` 30,000 in the year ended 31st March, 2020.
(b) Closing Stock as on 31st March, 2022 was overvalued by ` 30,000.
Calculate the value of goodwill.

18. Devesh and Nitesh are partners in a firm sharing profits in the ratio 2:3. Their Balance Sheet as at 31”
March, 2022 was as follows:

Liabilities Amount Assets Amount (`)

(`)
Bank Overdraft 10,000 Cash 32,000
Salary Outstanding 5,000 Debtors 48,000
Creditors 13,000 Less : Provision for
General Reserve 4,000 doubtful debts (2,000) 46,000
Capital Account : Stock 35,000
Devesh 80,000 Prepaid expenses 21,000
Nitesh 1,20,000 2,00,000 Investments 60,000
Furniture 38,000
2,32,000 2,32,000

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CBSE Accountancy Class 12 NODIA Sample Paper 8 Page 5

On the above date they admitted Sarvesh as a partner for 1/4th share in the business which he acquires
equally from Devesh and Nitesh. Following are the required adjustments:
(a) Sarvesh will contribute ` 60,000 as his share of capital and ` 30,000 towards goodwill.
(b) Stock is overvalued by ` 5,000.
(c) Market value of investments is ` 54,000.
(d) Provision for doubtful debts to be maintained at 5% on debtors.
Pass necessary journal entries on Sarvesh’s admission.
o
Sudesh, Bhavesh and Sarvesh are partners sharing profits in the ratio 5 : 3 : 2. Their Balance Sheet as at
31st March 2022 stood as follows.

Liabilities Amount (`) Assets Amount (`)

Capital A/cs: Land and Building 4,25,000
Sudesh 2,50,000 Investments 70,000
Bhavesh 2,50,000 Computers 95,000
Sarvesh 2,00,000 7,00,000 Furniture and Fittings 40,000
General Reserve 3,000 Sundry Debtors 1,20,000
Investment Fluctuation Fund 10,000 Cash at Bank 80,000
Workmen Compensation Reserve 42,000
Sundry Creditors 75,000
8,30,000 8,30,000
On this date, the partners decided to share profits equally. They, further, agreed upon the following terms:
(i) The goodwill of the firm is valued at ` 90,000.
(ii) Market price of investments is ` 62,000.
(iii) The liability against workmen compensation reserve was found to be ` 50,000.
(iv) Land and building and furniture and fittings is to be reduced by 10%.
(v) Computers is to be reduced to 40%.
Pass necessary journal entries to give effect to the above transactions.

19. GER Electrical Limited 2,500, 9% Debentures of ` 100 each on 1st April, 2022 redeemable at a premium of
8% after 3 years. The issue was fully subscribed.
According to the terms of the prospectus ` 40 is payable on application and the balance on allotment of
debentures, Record the necessary entries regarding issue of Debentures.
o
Baldev Enterprises Limited issued 30,000, 12% debentures of ` 100 each on 1st April 2021. The issue was
subscribed by public for 25,000 debentures. Pass journal entries for interest due and paid for the full year
as on 31st March 2022.

20. On 1-4-2020, Jaxon and Parker, entered into partnership for supplying laboratory equipments to government
schools situated in remote and backward areas. They contributed capitals of ` 80,000 and ` 50,000 respectively
and agreed to share the profits in the ratio of 3 : 2. The partnership deed provided that interest on capital
shall be allowed at 9% per annum. During the year, the firm earned a profit of ` 7,800.
Showing your calculations clearly, prepare ‘Profit and Loss Appropriation Account’ of Jaxon and Parker for
the year ended 31-3-2022.

21. Sivan Technologies Limited purchased assets of the book value of ` 4,00,000 and took over the liabilities
of ` 50,000 from Juke Exports Private Limited It was agreed that the purchase consideration, settled at `
3,80,000, be paid by issuing 9% debentures. What journal entries will be made if the debentures are issued:
(a) at par
(b) at discount of 10%,
(c) at premium of 10%.
It was agreed that any fraction of debentures will be paid in cash.

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Page 6 NODIA Sample Paper 8 CBSE Accountancy Class 12

22. Snehal, Suchita and Sindhu were partners sharing profits and losses in the ratio of 3:2:1. The firm was
dissolved on 31st March 2022. After transfer of assets and liabilities to Realisation A/c the following
transactions took place.
Give journal entries in the books on dissolution of the firm.
(a) Suchita’s Loan to the firm ` 30,000 was settled at ` 28,500.
(b) Workmen Compensation Reserve – ` 40,000. A liability equal to 60% of the reserve was settled.
(c) Sindhu was to receive 5% of the value of assets realised as remuneration for completing the dissolution
work and was to bear realisation expenses. Realisation expenses were ` 5,500 that was paid by Sindhu.
Assets realised ` 60,000.
(d) The Balance Sheet disclosed a footnote, contingent liability for ` 5,000 in respect of a bill discounted.
The bill was received from Megha. On the date of dissolution, Megha was declared insolvent and was
not able to pay the amount due. The bill had to be met by the firm.

23. Surya Industries Limited invited applications for 50,000 equity shares of ` 10 each at a premium of 10%
payable along with allotment. The amounts were payable as follows:
On Application ` 4 per share.
On Allotment ` 4 per share (including premium)
On First & Final call - balance
Applications for 70,000 shares were received, of which 10,000 shares were rejected and the remaining
applicants were given pro-rata allotment. Excess application money was applied towards sums due on
allotment.
Nitin to whom 1,500 shares were allotted failed to pay the allotment money. His shares were forfeited
immediately after allotment. The forfeited shares were reissued @ 8 per share as fully paid-up. Afterwards
the final call was made. Deepti who had applied for 1800 shares failed to pay the final call. Her shares were
also forfeited.
Journalise the above transactions.
o
Ocean Power Limited invited applications for 1,00,000 Equity shares of ` 10 each payable as under:
On Application ` 4 per share
On Allotment ` 3 per share
On First Call ` 2 per share
On Final Call ` 1 per share
All payments due on application, allotment and calls have been received with the following exceptions.
Rohit, a holder of 1,000 shares, failed to pay allotment and call money.
Mohit, a holder of 500 shares, failed to pay the amount due on first call and final call.
Luhit, a holder of 300 shares, failed to pay final call. The shares of all the above defaulters were forfeited.
Pass necessary journal entries in the books of the Company for the above transactions.

24. Tarun, Varun and Arun are partners in a firm sharing profits in the ratio 5:4:1. Their Balance Sheet as at
31st March, 2022 was as follows:

Liabilities Amount (`) Assets Amount (`)

Capital Accounts: Goodwill 27,000
Tarun 85,000 Land 64,000
Varun 54,000 Machinery 34,000
Arun 36,000 1,75,000 Patenrts 2,000
General Reserve 20,000 Stock 25,000
Outstanding Expenses 14,000 Debtors 50,000
Creditors 47,000 Bank 54,000
2,56,000 2,56,000
It was agreed that Tarun will retire on the following terms:
(i) The Goodwill of the firm is valued at two years purchase of the average annual profits of the preceding
three years. The profits for the last three years were ` 34,000, ` 42,000 and ` 50,000.
(ii) Provision for doubtful debts at 10% on Debtors to be created.

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CBSE Accountancy Class 12 NODIA Sample Paper 8 Page 7

(iii) Land revalued at ` 82,000 and Machinery at ` 24,000.

(iv) Sundry Creditors have agreed to accept 5% less.
(v) Patents were valueless.
Prepare Revaluation A/c and Partners’ Capital Accounts
o
Following is the Balance Sheet of Luna, Nora and Elena as on 31” March, 2022 who shared profits in the
ratio 3 : 2 : 1. They decided to dissolve their firm.

Liabilities Amount (`) Assets Amount (`)

Capital Accounts: Bank 69,500
Luna 1,70,000 Accruced Interest 3,500
Nora 1,40,000 Debtors 72,000
Elena 1,20,000 Less : Provision for
Investment Fluctuation Reserve 24,000 doubtful debts (8000) 64,000
Loan 32,000 Stock 70,000
Employees Provident Fund 42,000 Investment 75,000
Bills Payable 18,000 Furniture 98,000
Sundry Creditors 26,000 Machinery 1,32,000
Goodwill 60,000
5,72,000 5,72,000
Agreed terms of dissolution were as follows:
(i) Sundry Creditors agreed to take over an unrecorded asset as full and final payment.
(ii) Nora took over half the stock at 10% discount and also agreed to settle the Bills Payable.
(iii) Remaining stock realised 55% of the book value.
(iv) ` 7,000 of Debtors proved bad.
(v) Other assets realised:
Machinery : ` 1,15,050
Furniture : ` 76,000
Accrued Interest : Full amount
Goodwill ` 24,000.
(vi) Investments were sold in the market at a loss of 10%.
(vii) Firm had to pay ` 6,300 for outstanding rent which was not provided for in the books.
(viii) Realisation expenses were ` 3,000 paid by Elena.
Prepare Realisation A/c and Partners’ Capital Accounts.

25. Mayank, Aryan and Farhan were the partners sharing of 5:3:2. on 31st March, 2022 their Balance Sheet was
as under:

Liabilities Amount (`) Assets Amount (`)

Capitals: Leasehold Premises 1,25,000
Mayank 1,50,000 Patents 30,000
Aryan 1,25,000 Machinery 1,50,000
Farhan 75,000 3,50,000 Stock 1,90,000
Creditors 1,55,000 Cash at bank 40,000
Workmen’s Compensation Reserve 30,000
5,35,000 5,35,000
Aryan died on 1st August, 2022. It was agreed that:
(i) Goodwill of the firm is to be valued at ` 1,75,000.
(ii) Machinery to be valued at ` 1,40,000; Patents at ` 40,000; Leasehold Premises at ` 1,00,000 on this
date.

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Page 8 NODIA Sample Paper 8 CBSE Accountancy Class 12

(iii) For the purpose of calculating Aryan’s share in the profits of 2022-23, the profits should be taken to
have accrued on the same scale as in 2021-22, which were ` 75,000.
(iv) Interest on capital @ 9% p.a.
Prepare Aryan’s Capital Account to show the amount due to his executors.

26. Virat Fabric Company dealing in manufacture ladies garments decided to manufacture masks, gloves and
other precautionary kits for people for which it required more of additional funds. Since the company has
already raised money through shares equal to its authorised capital, the company decided to raise the
additional funds through issue of ` 40,00,000; 7% debentures of ` 100 each at a discount of 6%, redeemable
at a premium of 5% after five years. The amount was payable as follows:
On Application – ` 30
On Allotment – The Balance amount
Answer the following questions on the basis of the above information:
(i) Pass journal entry for allotment of debentures.
(ii) Prepare ‘Loss on Issue of Debentures Account.’
(iii) What entry will be passed for writing off the interest on debentures?

PART—B
Analysis of Financial Statements

27. The Liquidity ratio of a concern is 1.5:1, and it purchased goods of ` 50,000 for cash. What will be the ratio ?
(a) either increase or decrease
(b) increase
(c) decrease
(d) not change

28. Om Tools Private Limited had investment of ` 68,000 as on 31.3.2021 and investment of ` 56,000 as
on 31.3.2022. During the year, Om Tools Private Limited sold 40% of its investments being held in the
beginning of period at a profit of ` 16,800. Determine cash flow from investing activities.
(a) ` 28,800 (b) ` 72,800
(c) ` 59,200 (d) None of these

29. Thakkar Tools Private Limited sold its machinery used in business at a profit of ` 42,000. How will it be
shown in the Statement of Profit and Loss?
(a) Other income (b) Finance costs
(c) Revenue from operations (d) None of these
o
Revenue from sale of scrap iron cutting of manufacturing will be shown under
(a) Other income (b) Cost of materials consumed
(c) Revenue from operations (d) None of these

30. Where will a manufacturing company record dividend/interest received while preparing Cash Flow Statement?
(a) Investing Activities (b) Financing Activities
(c) Operating Activities (d) None of these
o
Sale of Marketable Securities at par would result in
(a) outflow (b) no flow
(c) inflow (d) None of these

31. Explain any three importance of analysis of financial statements.

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CBSE Accountancy Class 12 NODIA Sample Paper 8 Page 9

32. Give major heading and sub-heading under which following items will be shown in a Company’s Balance
Sheet as per Schedule III, Part I of the Companies Act 2013:
(a) Preliminary Expenses
(b) Goodwill
(c) Long-term Investments
(d) Securities Premium
(e) Bank overdraft
(f) Encashment of Employees Earned Leave payable on retirement

33. The current ratio of a company is 2 : 1. State giving reasons which of the following would improve, reduce
or not change the ratio:
(i) Repayment of trade payables.
(ii) Sale of Motor vehicles at a loss of 20%.
(iii) Sale of goods at a profit of 10%.
(iv) Purchase of Machinery for ` 10,000 on credit of 2 months.
o
From the following information calculate the Working Capital Turnover Ratio and Fixed Assets Turnover
Ratio.
Cost of Revenue from Operations ` 5,00,000
Gross Profit Ratio 20%
Fixed Assets ` 5,00,000
Capital Employed ` 7,50,000

34. Following is the Balance Sheet of Vidhata Enterprises Private Limited as on 31st March, 2022 and 2021.

Balance Sheet of Vidhata Enterprises Private Limited

as on 31st March 2022 and 2021
Particulars Note 31 March 2022 31 March 2021
No. (`) (`)
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(a) Share Capital 19,60,000 14,00,000
(b) Reserves and Surplus 1 7,00,000 5,60,000
2. Non-Current Liabilities :
Long-term Borrowings 7,00,000 1,96,000
3. Current Liabilities :
(a) Trade Payables 1,40,000 84,000
(b) Short-term Provisions 2 1,12,000 84,000
Total 36,12,000 23,24,000
II. ASSETS
1. Property, Plant and Equipments and Intangible Assets
(a) Fixed Assets
(i) Tangible Assets 3 22,40,000 12,60,000
(ii) Intangible Assets 4 1,96,000 2,80,000
2. Current Assets :
(a) Inventories 3,50,000 2,80,000
(b) Trade Receivables 7,00,000 4,20,000
(c) Cash and Cash Equivalents 1,26,000 84,000
Total 36,12,000 23,24,000

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Page 10 NODIA Sample Paper 8 CBSE Accountancy Class 12

Notes to Accounts :

Note No. Particulars 31 March 2022 31 March 2021

(`) (`)
1. Reserves and Surplus
Surplus i.e.., Balance in Statement of Profit and Loss 7,00,000 5,60,000
2. Short-term Provisions
Provision for Tax 1,12,000 84,000
3. Tangible Assets
Machinery 24,64,000 14,00,000
Less : Accumulated Depreciation (2,24,000) (1,40,000)
22,40,000 12,60,000
4. Intangible Assets
Goodwill 1,96,000 2,80,000
Prepare Cash Flow Statement after taking into account the following adjustment:
Tax paid during the year amounted to ` 98,000.

******

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