BRAIN BUILDER COACHING

HALF YEARLY EXAMINATION

Subject :ACCOUNTANCY Class : XII
Time : 3 Hour MM : 70

Q.1. Which one of the following items cannot be recorded in the profit and loss appropriation account?
(A) Interest on capital (B) Interest on drawings
(C) Rent paid to partners (D) Partner’s salary
Q.2. The relation of partner with the firm is that of:
(A) An Owner (B) An Agent
(C) An Owner and an Agent (D) Manager
Q.3. A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not
sufficient for this interest, then the net profit will be distributed among partners in :
(A) Agreed Ratio (B) Profit Sharing Ratio
(C) Capital Ratio (D) Equally
Q.4. X and Y are partners in a firm with capital of Rs. 1,80,000 and Rs.2,00,000. Z was admitted for 1/3rd share
in profits and brings Rs.3,40,000 as capital, calculate the amount of goodwill:
(A) Rs.2,40,000 (B) Rs. 1,00,000
(C) Rs. 1,50,000 (D) Rs. 3,00,000
Q. 5. Sacrificing ratio is used to distribute ......... in case of admission of a partner:
(A) Reserves (B) Goodwill
(C) Revaluation Profit (D) Balance in Profit and Loss Account
Q.6. A and B are partners sharing profits and losses in the ratio of 5 : 3. On admission, C brings Rs.70,000 as
cash and Rs.43,000 against Goodwill. New profit ratio between A, B and C is 7 : 5 : 4, The sacrificing ratio
of A and B is:
(A) 3:1 (B) 1 : 3
(C) 4 : 5 (D) 5 :9
Q. 7. A firm earns Rs. 1,10,000. The normal rate of return is 10%. The assets of the firm amounted to
Rs.11,00,000 and liabilities to Rs. 1,00,000. Value of goodwill by capitalisation of Average Actual Profits
will be :
(A) Rs.2,00,000 (B) Rs. 10,000
(C) Rs. 5,000 (D) Rs. 1,00,000
Q. 8. On dissolution, if a partner undertakes to make payment of a liability of the firm ….. is debited)
 (A)Profit & Loss Account (B) Realisation Account
(C) Partner’s Capital Account (D) Cash Account
Q. 9. In the Balance Sheet Total Debtors appear at Rs.50,000 and Provision for Doubtful Debts appear at Rs.
1,500. How much amount will be realised from Debtors, if bad debts amount to Rs. 10,000 and remaining
debtors are realised at a discount of 5%
(A) Rs.38,000 (B) Rs.36,500
(C) Rs.36,575 (D) Rs.39,500
Q.10. Goodwill of a firm of A and B is valued at Rs.30,000. It is appearing in the books at Rs. 12,000. C is
admitted for 1/4 share. What amount he is supposed to bring for goodwill?
(A)Rs.3,000 (B) Rs.4,500
(C) Rs.7,500 (D) Rs. 10,500
Q. 11.A business has a current ratio of 3 : 1 and a quick ratio of 1.2 : 1. If the working capital is Rs. 1,80,000,
calculate the total Current Assets and Inventory. (3)
Q.12. X, Y and Z were sharing profits and losses in the ratio of 5 : 3 : 2. They decided to share future profits
and losses in the ratio of 2 : 3 : 5 with effect from 1.4.2017. They decided to record the effect of the following,
without effecting their book values:—
(i) Profit and Loss Account Rs.24,000
(ii) Advertisement Suspense Account Rs. 12,000
Pass the necessary adjusting entry. (3)
Q.13.Radha Ltd. purchased machinery for Rs.4,00,000 from Krishna Ltd. on 1st April 2017. Rs. 1,00,000 were
paid immediately and the balance was paid by issue of Rs.2,80,000 12% debentures in Radha Ltd. Pass the
necessary journal entries for recording the transactions in the books of Radha Ltd. (4)
Q.14.Give journal entries for forfeiture and re-issue of shares :
B Ltd. forfeited 1,000 shares of Rs. 10 each, Rs.7 called up, issued at a premium of 20% (to be paid at the
time of allotment) for non-payment of allotment money of Rs.4 per share (including premium) and first call
of Rs.2 per share. Out of these, 600 shares were re-issued as fully paid in such a way that Rs.900 were
transferred to capital reserve. (4)
Q.15. A, B and C were in Partnership sharing profits four-seventh, two- seventh and one-seventh respectively.
It being provided that in no year C’s share be less than Rs. 1,80,000.
The Profit for the year ending 31st March, 2016 amounted to Rs. 10,50,000. You are required to show the
appropriation of profit between the partners. (4)
Q. 16. X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2 with capitals of Rs.
10,00,000 and Rs.5,00,000 respectively. As per the partnership deed, they are to be allowed interest on capital
@ 8% p.a. The net profit for the year ended 31st March, 2016 before providing for interest on capital amounted
to Rs.45,000. Show the distribution of profit.(4)
Q.17. Classify the following items under Major Head and Sub-Head (if any) in the Balance Sheet of a company
as per Schedule II! of the Companies Act, 2013 :
(i) Capital Work in Progress;
(ii) Provision for Warranties;
(iii) Income received in advance;
(iv) Capital Advances;
(v) Capital Reserve;
(vi) Bank Overdraft. (4)
Q.18 . A, B and C are partners sharing profits and losses equally. They agree to admit D for equal share. For
this purpose goodwill is to be valued at 3 year’s purchase of average profits of last 5 years which were as
follows :

Rs.

Year ending on 31st March 2013 60,000 (Profit)

Year ending on 31st March 2014 1,50,000 (Profit)

Year ending on 31st March 2015 20,000 (Loss)

Year ending on 31st March 2016 2,00,000 (Profit)

Year ending on 31st March 2017 1,85,000 (Profit)

On 1st October, 2016 a computer costing Rs.40,000 was purchased and debited to office expenses account
on which depreciation is to be charged @25% p.a. Calculate the value of goodwill.
(4)

Q.19.Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the
following after various assets (other than Cash and Bank) and third party liabilities have been transferred to Realisation
A/c.
(a) There was furniture worth Rs.50,000. Aman took over 50% of the furniture at 10% discount and the
remaining furniture was sold at 30% profit on book value.
(b) Profit and Loss Account was showing a credit balance of Rs. 15,000 which was distributed between the
partners.
(c) Harsh’s loan of Rs.6,000 was discharged at Rs.6,200.
(d) The firm paid realization expenses amounting to Rs. 5,000 on behalf of Harsh who had to bear these
expenses. (4)
Q.20.On 1st April, 2012, Vishwas Ltd. was formed with an authorized capital of Rs. 10,00,000 divided into
1,00,000 equity shares of Rs.10 each. The company issued prospectus inviting applications for 90,000 equity
shares. The company received applications for 85,000 equity shares. During the first year, Rs.8 per share were
called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs.2 per share.
Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs.6
per share, Rs.8 called up.
Show the following :
(a) Share capital in the Balance Sheet of the company as per Schedule-3 Part-I of the Companies Act, 2013.
(b) Also prepare ‘Notes to Accounts’ for the same. (4)
Q.21.On 2-3-2016, L and B Ltd. issued 600, 9% debentures of Rs.500 each.
Pass necessary Journal entries for the issue of debentures in the following situations :
(a) When debentures were issued at 5% discount, redeemable at 10% premium.
(b) When debentures were issued at 12% premium, redeemable at 6% premium. (4)
Q.22.X Ltd. purchased a running business from Y Ltd. for a sum of Rs.30,00,000 payable 40% by a cheque and
the balance by the issue of fully paid equity shares of Rs. 100 each at a premium of 20%. The assets and
liabilities consisted of the following :

Rs. Rs.

Building 12,00,000 Sundry Debtors 4,30,000

Plant and Machinery 8,00,000 Cash 90,000

Stock 5,00,000 Sundry Creditors 2,00,000

Pass the necessary Journal entries in the books of X Ltd. (4)

Q.23. A, B and C are partners with Fixed Capitals of Rs. 1,00,000; Rs.2,00,000 and Rs.3,00,000
respectively. Their partnership deed provides that:
(a) A is to be allowed a monthly salary of Rs.600 and B is to be allowed a monthly salary of Rs.400.
(b) C will be allowed a commission of 5% of the net profit after allowing salaries of A and B.
(c) Interest is to be allowed on Capitals @ 6%.
(d) Interest will be charged on partner’s annual drawings at 4%.
(e) The annual drawings were : B Rs. 10,000 and C Rs. 15,000.
The net profit for the year ending 31 st March, 2016 amounted to Rs. 1,72,000.
Prepare Profit and Loss Appropriation Account. (6)

Q.24The following particulars are extracted from the Balance Sheet of Goodwill Enterprises Ltd. as at 31st
March, 2019 :

Rs.
Equity Share Capital 3,00,000

10% Preference Share Capital 1,20,000

Capital Reserve 60,000

Profit & Loss Balance 1,20,000

12% Debentures 50,000

10% Mortgage Loan 1,50,000

Current Liabilities 2,80,000

Non Current Assets 4,80,000

Current Assets 6,00,000

Showing the full working, calculate the following ratios :

(i) Debt Equity Ratio
(ii) Proprietary Ratio
(iii) Interest Coverage Ratio
Net Profit after interest and tax amounted to Rs.63,000 Rate of Income Tax was 50%. (6)
Q.25.The following information relates to a partnership firm :
(a) Profits for the last five years :

2012 Rs. 80,000 2015 Rs.1,50,000

2013 Rs.1,00,000 2016 Rs.2,70,000

2014 Rs.2,00,000

(b) Average Capital Employed is Rs.5,00,000.

(c) Rate of normal profit 20%.
Find out the value of goodwill on the basis of
(i) Three year’s purchase of average profits
(ii) Three year’s purchase of super profits.
(iii) Capitalisation of super profits ......................... (6)
Q.26.KS Ltd. invited applications for issuing 1,60,000 equity shares of Rs.10 each at a premium of Rs.6 per
share. The amount was payable as follows :
On Application — Rs.4 per share (including premium Rs. 1 per share)

On Allotment — Rs.6 per share (including premium Rs.3 per share)

 On First and Final Call — Balance.

Applications for 3,20,000 shares were received. Applications for 80,000 shares were rejected and
application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money
received with applications was adjusted towards sums due on allotment. Jain holding 800 shares, failed to pay
the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made.
Gupta who had applied for 1,200 shares failed to pay the final call. These shares were also forfeited. Out of the
forfeited shares 1,000 shares were re-issued at Rs.8 per share fully paid up. The re-issued shares included all the
forfeited shares of Jain.

Assuming that the Company maintains Calls in Arrears Account, pass necessary Journal entries for the
above transactions in the books of KS Ltd.

OR

Anishka Ltd. invited applications for 2,00,000 equity shares of Rs.10 each at a premium of Rs.4 per share.
The amount was payable as follows :

On Application Rs.6 (including premium Rs.2)

On Allotment Rs.7 (including premium Rs.2)

Balance on first and final call.

Applications for 3,00,000 shares were received. Allotment was made to all the applicants on pro-rata basis.

Mehak, to whom 400 shares were allotted failed to pay allotment and call money. Khushboo, who had
applied for 300 shares failed to pay the call money. Their shares were forfeited after final call. 400 of the
forfeited shares (including all shares of Khushboo) were reissued @ Rs.8 per share as fully paid up.

Pass the necessary journal entries by opening ‘Calls in Arrears A/c’ wherever necessary.(6)