JAWAHAR NAVODAYA VIDYALAYA

TIME :3 Hrs. ACCOUNTANCY – XII MM: 80

PRE-BOARD II – (2023-24)
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 and B is compulsory for all the candidates.
4. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
6. Questions Nos. from 21 ,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each.
8. There is no overall choice. However, an internal choice has been provided in 8 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)

Q.1 On a share of ₹ 100 issued at a premium of ₹ 10 the whole amount has been called-up but from a 1
shareholder only ₹ 80 has been received. The share capital would be credited by.
a) ₹ 100.
b) ₹ 110.
c) ₹ 80.
d) ₹ 70.
Q.2 Ratan Ltd. forfeited 5,000 shares of ₹ 10 each on which application money of ₹ 3 was received. Out 1
of these 2,500 shares were reissued as fully paid-up and ₹ 5,000 has been transferred to Capital
Reserve. Calculate the rate at which these shares were reissued.
a) ₹ 10 per share
b) ₹ 9 per share
c) ₹ 11 per Share
d) ₹ 8 per share

Q.3 On retirement of a partner, the remaining partners compensate. 1

a) retiring partner only.
b) remaining partners only who have sacrificed.
c) retiring partner as well as remaining partner who have sacrificed.
d) None of the above
Or
‘X’, a partner, agreed to take the responsibility of completing dissolution at an agreed amount of ₹
10,000 and was to bear all realisation expenses. Realisation expenses of ₹ 8,000 were paid by the
firm. Realisation Account is to be debited with
a) ₹ 8,000.
b) ₹ 10,000.
c) ₹ 18,000.
d) None of these.

Q.4 X and Y were partners sharing profits and losses in the ratio of 3:2. At the time of dissolution of the 1
firm, Workmen Compensation Reserve was ₹ 12,000 and liability did not exist in this respect.
Journal entry will be:
 Or
Pick the odd one out:
a) Interest on Partner’s Capital
b) Partners’ Salaries/Commission
c) Transfer of Part of Profit to Reserve
d) Interest on Partner’s Loan
Q.5 If a fixed amount is withdrawn on the first day of every month of a financial year, the interest on total 1
amount of drawings will be calculated for
a) 4.5 months.
b) 5.5 months.
c) 6 months.
d) 6.5 months.
Or
Capitals of Om and Shiv are ₹ 50,000 and ₹ 40,000. To increase the capital base of the firm to ₹
1,50,000, they admit Mohan. Mohan brings ₹ 70,000 in the firm as his capital and share of premium
for goodwill. What is the amount of premium for goodwill?
a) ₹ 20,000
b) ₹ 30,000
c) ₹ 10,000
d) ₹ 5,000
Q.6 Stock ₹ 80,000, X took 50% of the stock at cost less 20%. Remaining stock was sold at a profit of 1
30% on cost. Realisation Account will be credited by
a) ₹ 32,000.
b) ₹ 52,000.
c) ₹ 84,000.
d) None of these.

Q.7 A partnership firm is compulsorily dissolved if. 1

a) all partners have become insolvent.
b) firm’s business has become unlawful.
c) the fixed term has expired.
d) All the above.

Q.8 Which of the following is not shown under the head ‘Share Capital’ of Balance Sheet? 1
a) Preference Share Capital
b) Calls-in-Arrears
c) Equity Share Capital
d) Capital Reserve Account

Q.9 Retiring partner’s claim is payable in the following manner: 1

a) Fully in cash.
b) Fully transferred to his loan account to be paid later with interest.
c) Partly in cash and partly as loan repayable later with agreed interest.
d) Any of the above method.
Or
When a partner retires and the remaining partners continue as partners in the business without
payment being made to retiring partner, the retiring partner is entitled to.
a) interest @ 6% p.a. on the amount due to him.
 b) such share of the profits as may be attributable to amount due to him.
c) either of the above two at the option of the retiring partner.
d) interest @ 15% p.a. on the amount due to him.
Q.10 Omega Ltd. forfeited 2,000 shares of ₹10 each held by Mohan for non-payment of allotment money 1
of ₹ 3 per share. The called-up value per share was ₹ 8. On forfeiture, the amount debited to share
capital will be.
a) ₹ 6,000.
b) ₹ 20,000.
c) ₹ 10,000.
d) ₹ 16,000.
Or
Pragya Ltd. forfeited 8,000 equity shares of ₹ 100 each issued at a premium of 10% for non-payment
of first and final call of ₹ 30 per share. The maximum amount of discount at which these shares can
be reissued will be.
a) ₹ 80,000.
b) ₹ 3,20,000.
c) ₹ 5,60,000.
d) ₹ 2,40,000.

Q.11 Revaluation Account is debited. 1

a) on increase in Provision for Doubtful Debts.
b) on increase in value of Land and Building.
c) on decrease in amount of creditors.
d) to transfer loss on revaluation.

Q.12 Kavita, Leena and Monica are partners in a firm sharing profits in the ratio of 3 : 2 : 1. According to 1
the Partnership Deed, share of deceased partner is to be calculated on the basis of profit and turnover
of previous accounting year.
Kavita died on 31st December, 2019. Turnover till the date of death was ₹ 45,00,000. Their profit
and turnover for the year ended 31st March, 2019 was ₹ 10,00,000 and ₹ 50,00,000 respectively.
An amount of ₹ ____________ will be given to her executors as her share of profit till the date of
death.
Q.13 Meera, Myra and Neera were partners sharing profits in the ratio of 2 : 2 : 1. They decided to share 1
future profits in the ratio of 7 : 5 : 3 with effect from 1st April, 2019. Their Balance Sheet as on that
date showed a balance of ₹ 45,000 in Advertisement Suspense Account. The amount to be debited
respectively to the Capital Accounts of Meera, Myra and Neera for writing off the amount in
Advertisement Suspense Account will be:
a) ₹ 18,000, ₹ 18,000 and ₹ 9,000.
b) ₹ 15,000, ₹ 15,000 and ₹ 15,000.
c) ₹ 21,000, ₹ 15,000 and ₹ 9,000.
d) ₹ 22,500, ₹ 22,500 and Nil.
Or
X and Y shared profits and losses in the ratio of 3 : 2. With effect from 1st April, 2020, they agreed
to share profits equally. Goodwill of the firm was valued at ₹ 1,50,000. The necessary single
adjusting entry will be.
a) Debit Y and Credit X by ₹ 15,000.
b) Debit X and Credit Y with ₹ 15,000.
c) Debit X and Credit Y with ₹ 1,500.
d) Debit Y and Credit X with ₹ 1,500.

Q.14 Aman, Manish and Karan are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. 1
Manish retired from the firm. Manish gave his share to Aman and Karan in the profit-sharing ratio of
Aman and Karan. What is the gaining ratio?
a) 3 : 2.
b) 2 : 5.
c) 25 : 11.
d) 2 : 1.
Q.15 For which of the following situation, old profit-sharing ratio of partners is used at the time of 1
retirement/death of a partner:
a) For distribution of Accumulated Profit/Loss among partners.
b) For writing off the existing goodwill appearing in the books of the firm.
 c) Both (a) and (b).
d) For adjusting retiring/deceased partner’s share of goodwill in the capital accounts of gaining
partners.
Q.16 Dee Ltd. forfeited 2,000 equity shares of ₹ 10 each, issued at a premium of ₹ 5 per share held by 1
Ram for non-payment of the final call of ₹ 3 per share. Of these 100 shares were reissued to Vishnu
at a discount of ₹ 4 per share. The gain (profit) on reissue is.
a) ₹ 14,000.
b) ₹ 13,600.
c) ₹ 700.
d) ₹ 300.

Q.17 On 1st April, 2013 Mohan and Sohan entered into partnership for doing business of dry fruits. 3
Mohan introduced ₹ 1,00,000 as capital and Sohan introduced ₹ 50,000. Since Sohan could introduce
only ₹ 50,000 it was further agreed that as and when there will be a need Sohan will introduce further
capital. Sohan was also allowed to withdraw from his capital when the need for the capital was less.
During the year ended 31st March, 2014, Sohan introduced and withdrew the following amounts of
capital.
Date Capital Capital
Introduced Withdrawn
1st May, 2013 10,000 –
30th June, 2013 – 5,000
30th September, 2013 97,000 –
1st February, 2014 – 87,000

The partnership deed provided for interest on capital @ 6% per annum. Calculate interest on capitals
of the partners.
Q.18 Complete the following Journal entries: 3

Q.19 Rehman, Suleman and Harish were partners in a firm sharing profits in the ratio of 7 : 2 : 1. Their 3
fixed capitals were: Rehman ₹ 3,00,000, Suleman ₹ 2,00,000 and Harish ₹ 1,00,000. The Partnership
Deed provided as follows for the division of profit:
i) 10% of the Net Profit will be transferred to General Reserve.
ii) Harish was guaranteed a profit of ₹ 50,000 p.a. Deficiency because of guarantee to Harish
will be shared by Rehman and Suleman equally. Net Profit for the year ended 31st March,
2020 was ₹ 2,00,000.
Pass necessary Journal entries in the books of the firm.
Or
Kavita, Meenakshi and Gauri are partners in a paper business. After the accounts of partnership had
been prepared, it was noticed that for the years ending 31st March, 2019 and 2020, Interest on capital
was allowed to partners @ 6% per annum although there is no provision for interest on capital in the
Partnership Deed. Their fixed capitals were ₹ 2,00,000; ₹ 1,60,000 and ₹ 1,20,000 respectively.
During the last two years, they had shared the profits as under:
Pass necessary adjusting entry on 1st April, 2020.
Q.20 A earns ₹ 1,20,000 as its annual profits, the rates of normal profit being 10%. The assets of the firm 3
amounted to ₹ 14,40,000 and liabilities to ₹ 4,80,000. Find out the value of goodwill by capitalization
method.
Q.21 Atishyokti Ltd. company was registered with an authorized capital of ₹ 20,00,000 divided into 4
2,00,000 Equity Shares of ₹ 10 each, payable ₹ 3 on application, ₹ 6 on allotment (including ₹ 1
premium) and balance on call. The company offered 80,000 shares for public subscription. All the
money has been duly called and received except allotment and call money on 5,000 shares held by
Manish and call money on 4,000 shares held by Alok. Manish’s shares were forfeited and out of
these 3,000 shares were re-issued ₹ 9 per share as fully paid up. Show share capital in the books of
the company. Also prepare notes to accounts.

Q.22 A firm under dissolution has already transferred its assets (other than cash) and outside liabilities to 4
Realisation Account. Firm has two partners X and Y. What entries will be passed for the following
transactions:
a) There is furniture of ₹ 50,000. X took 50% of the furniture at 10% discount and the remaining
furniture was sold at 30% profit on the book value.
b) Firm had unrecorded investment (Nominal value ₹ 20,000), 70% of investment were sold at a
loss of 20% and remaining were taken by X, a partner, at 90%.
c) Y’s loan of ₹ 6,000 was discharged at ₹ 6,400.
d) One bill receivable for ₹ 5,000 under discount was dishonoured as the acceptor had become
insolvent and was unable to pay hence the bill had to be met by the firm.

Q.23 i) Pranshu Ltd. took over business of Mahesh Ltd. on 1st April, 2020 for ₹ 57,00,000. The details 6
of assets and liabilities to be taken over are:

It was decided to pay for purchase consideration as ₹ 10,00,000 by Cheque and balance by issue
of 9% Debentures of ₹ 100 each at a premium of 25%. Journalise.
ii) On 1st April, 2019, Star Ltd. issued, 5,000, 8% Debentures of ₹ 100 each at premium of 5%, to
be redeemed at a premium of 10%, after 5 years. The issue price was payable on application. The
issue was oversubscribed to the extent of 5,000 debentures and the allotment was made
proportionately to all the applicants. Securities premium amount was not utilised for any other
purpose during the year. Give Journal entries for issue of debentures and writing off loss on issue
of debentures.

Q.24 Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as 6
at 31st March, 2019 was as under:
 On the above date, Kumar retired. The terms of retirement were:
i) Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000.
ii) Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000.
iii) Investments were sold for ₹ 11,000.
iv) There was an unrecorded creditor of ₹ 7,000.
v) 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, Capital Accounts of partners and the Balance Sheet of the
reconstituted firm.
Or
Asha, Deepa and Lata were partners in a firm sharing profits in the ratio of 2 : 3 : 5. On 31st March,
2020, their Balance Sheet was as follows:

On the above date Lata retired from the firm on the following terms:
i) Building was to be decreased by ₹ 40,000.
ii) Provision for Doubtful Debts was to be maintained at 20% on debtors.
iii) Salary outstanding ₹ 5,000 was to be recorded and creditors ₹ 4,000 will not be claimed.
iv) Goodwill of the firm was valued at ₹ 72,000.
v) Lata was to be paid ₹ 15,000 by cheque and the balance was transferred to her loan account.
Prepare Revaluation Account, Partners’ Capital Accounts, and the Balance Sheet of the new firm.

Q.25 Sunrise Ltd. invited applications for allotting 5,00,000 equity shares of ₹ 10 each at par, amount 6
being 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.
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 amounts due on allotment. All calls were made. Raj, a shareholder holding
5,000 shares, did not pay the allotment and the call money. Shiv, a shareholder who had applied for
7,000 shares, did not pay the first and second and final call. Shares of Raj and Shiv were forfeited
after the second and final call. Of the forfeited shares, 8,000 shares were reissued at ₹ 12 per share as
fully paid-up. Reissued shares included all the forfeited shares of Raj.
Pass necessary Journal entries for the above transactions in the books of Sunrise Ltd.
Or
BMY Ltd. invited applications for issuing 10,00,000 equity shares of ₹ 10 each payable as follows:
On application and allotment — ₹ 4 per share (including premium ₹ 1),
On first call — ₹ 4 per share,
 On second and final call — ₹ 3 per share.
Applications for 15,00,000 shares were received and pro rata allotment was made to all the
applicants. Excess application money was adjusted on the sums due on calls. A shareholder who had
applied for 6,000 shares did not pay the first, and the second and final call. His shares were forfeited.
90% of the forfeited shares were reissued at ₹ 8 per share fully paid-up.
Pass necessary Journal entries for the above transactions in the books of the company.

Q.26 Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The 6
firm closes its books on 31st March every year. On 30th June, 2020Maheepdied. The partnership
deed provided that on the death of a partner his executors will be entitled to the following: a)
Balance in his capital account which amounted to ₹1,15,000and interest on capital till date of death
which amounted to ₹5,000. b) His share in the profits of the firm till the date of his death amounted
to ₹20,000. c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was
valued at ₹ 1,50,000. d) Loan to Maheep amounted ₹ 20,000. It was agreed that the amount will be
paid to his executor in three equal yearly instalments with interest @10% p.a. The first instalment
was to be paid on 30.06.2021. Calculate the amount to be transferred to Maheep’s executors Account
and prepare the executor’s account till it is finally settled.

PART B
(Analysis of Financial Statements)

Q.27 Which of the following is an example of Cash Flow from Operating Activities? 1
a) Payment of Dividend
b) Issue of Shares
c) Purchase of Fixed Assets for Cash
d) Receipts from Debtors
Or
If Debt-equity Ratio is 2, which of the transactions will increase the ratio, state the reason:
a) Sale of a Fixed Asset (Book value ₹ 40,000) at a loss of ₹ 10,000.
b) Sale of a Fixed Asset (Book value ₹ 40,000) for ₹ 50,000.
c) Sale of a Fixed Asset (Book value ₹ 40,000) for ₹ 40,000.
d) Issue of bonus shares.

Q.28 State whether the following statement is true or false: 1

‘Prepaid expenses and closing debtors are not considered while calculating the quick assets’.

Q.29 Which one of the following is not the objective of financial analysis? 1
a) To determine liquidity (short-term solvency).
b) To determine long-term solvency.
c) To determine operating efficiency.
d) To determine tax liability.
Or
Which of the following is correct?
a) Time Series Analysis involves the comparison of actual ratios of one firm with those of other
similar firm belonging to the same industry.
b) Cross Sectional Analysis involves the comparison of actual ratios of one period with those of
earlier periods for the same enterprise.
c) The qualitative elements like quality of management and quality of labour force are ignored in
analysis of financial statements.
d) Current Liabilities = Current Assets + Working Capital.

Q.30 Which of the following statements is not correct? 1

a) Capital Employed = Shareholders’ Funds + Non-current Liabilities.
b) Capital Employed= (Share capital + Reserves and Surplus) + (Long-term Borrowings + Long-
term Provisions).
c) Equity = Total Assets – Total Debt.
d) Capital Employed = Equity.

Q.31 From the following information, calculate Inventory Turnover Ratio: 3

Q.32 How are the following items shown while preparing the Balance Sheet of a company: 3
a) Computer Software;
b) Prepaid Expenses;
c) Stores and Spares;
d) Capital Work-in-Progress?

Q.33 From the following information, prepare Comparative Balance Sheet: 4

Or
From the following information, prepare a Comparative Statement of Profit and Loss of R.K. Ltd.
for the year ended 31st March, 2020:

Q.34 From the following Balance Sheet of Vikas Ltd., prepare Cash Flow Statement: 6
Additional Information:
i) Proposed Dividend for the year ended 31st March, 2019 and 2020 were 15% and 20%
respectively.
ii) Land and Building of book value ₹ 1,50,000 was sold at a profit of 10%.
iii) Rate of depreciation on Plant and Machinery is 10%.