CLASS: XII SUBJECT: ACCOUNTANCY (055) F.

M: 40 TIME: 90 MINS
General instruction:
 Q.No- 01 to Q.No- 11 carries 1 Mark each (Internal Choices: 3)
 Q.No- 12 to Q.No- 14 carries 3 Marks each (Internal Choices: 1)
 Q.No- 15 to Q.No- 16 carries 4 Marks each (Internal Choices: 1)
 Q.No- 17 to Q.No- 18 carries 6 Marks each (Internal Choices: 1)
 Show working notes clearly both in MCQs as well as 3, 4 & 6 mark questions.

1. Ritik, a partner withdrew ₹ 5,000 in the beginning of each quarter and interest on drawings was calculated as ₹ 1,500
at the year ending 31st March, 2024. What is the rate of interest on drawings charged?
a) 6% b) 8% c) 10% d) 12%
2. Priyanshu, Aarushi and Anshu are partners sharing profits in the ratio 5 : 4 : 1. Anshu is given guarantee that her
share of profit in any year will not be less than ₹ 5,000. Deficiency in profit share of Anshu will be borne by Aarushi.
The journal entry for deficiency is as follows-
Date Particulars Dr. (₹) Cr. (₹)
Aarushi’s Capital A/c…Dr. 1,000 -
a) To Anshu’s Capital A/c - 1,000
(Being deficiency met by Aarushi)
The Profits earned by the firm during the year was-
a) ₹ 30,000 b) ₹ 35,000 c) ₹ 50,000 d) ₹ 40,000
3. Under which method of maintaining Partners’ Capitals, the Capital Accounts may have either Credit balance or Debit
balance?
a) Fixed Capital Method b) Fluctuating Capital Method c) Both (a) and (b) d) None of these
OR
Partner’s Drawings Account is closed by-
a) Capital Account- Credit Side c) Capital Account- Debit Side
b) Current Account- Debit Side d) Either (b) or (c)
4. Which of the following is True in relation to Goodwill?
a) A Fictitious Asset b) A Current Asset c) A wasting Asset d) An Intangible Asset
5. Avya, Divya & Kavya were equal partners. They decided to change the profit sharing ratio to 4: 3: 2. The Goodwill
of the firm was valued at ₹ 90,000. The journal entry for the treatment of Goodwill will be-
Kavya’s Capital A/c…Dr. 10,000 - Avya’s Capital A/c…Dr. 90,000 -
a) To Avya’s Capital A/c - 10,000 c) To Kavya’s Capital A/c - 90,000
Divya’s Capital A/c…Dr. 10,000 - Avya’s Capital A/c…Dr. 10,000 -
b) To Avya’s Capital A/c 10,000 d)
- To Kavya’s Capital A/c - 10,000
6. ‘A’ and ‘B’ are partners sharing profits & losses in the ratio 3: 2. ‘C’ is admitted for 1/4th share. The new profit
sharing ratio between A, B & C will be-
a) 3: 2: 1 b) 9: 5: 6 c) 9: 6: 5 d) 9: 5: 4
OR
‘A’ and ‘B’ are partners sharing profits & losses in the ratio 3: 2. ‘C’ is admitted. The new profit sharing ratio
between A, B & C is 9: 7: 4. The sacrificing ratio will be-
a) 3 : 1 b) 3 : 2 c) 1 : 3 d) 9 : 7
7. Assertion (A): At the time of admission, assets are revalued and liabilities reassessed so that incoming partner is not
put to an advantage or disadvantage because of changes in value.
Reason (R): Assets & Liabilities at the time of admission of a partner are revalued or reassessed because increase or
decrease in their values is for the period after admission of new partner and hence the gain or loss on revaluation is
distributed in new profit sharing ratio.
a) Both (A) & (R) are correct and (R) is the correct explanation of (A) c) Only (A) is correct
b) Both (A) & (R) are correct but (R) is not correct explanation of (A) d) Both (A) & (R) are incorrect
8. Sun Ltd. purchased the business of Star Ltd. and Purchase consideration is to be valued at Net Assets. Total assets &
liabilities were ₹ 22,40,000 and ₹ 4,00,000 respectively. ₹4,00,000 were paid by cheque and balance amount by issue
of 8% Debentures of ₹ 100 each issued at a discount of 20%. The number of debentures will be-
a) 12,000 b) 20,000 c) 4,000 d) 18,000
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 9. Durga Ltd. issued 80,000, 10% Debentures of ₹ 100 each at certain rate of discount and were to be redeemed at 20%
premium. Existing balance of Securities Premium before issuing of these debentures was ₹ 25,00,000 and after
writing-off Loss on Issue of Debentures, the balance in Securities Premium was ₹ 5,00,000. At what rate of discount,
these debentures were issued?
a) 10% b) 5% c) 25% d) 15%
OR
Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of premium and to be redeemed at 10%
premium. At the time of writing-off Loss on Issue of Debentures, Statement of Profit and Loss was debited with
₹ 2,00,000. At what rate of premium, these debentures were issued?
a) 10% b) 6% c) 16% d) 4%
10. Perpetual Debentures are also known as-
a) Unsecured Debenture b) Irredeemable Debenture c) Zero Coupon Debenture d) Bearer Debenture
11. At the time of purchase of fixed assets or a business, if the value of Net Assets becomes higher than the
purchase consideration, the balance so carried forward will be recorded as-
a) Goodwill b) General Reserve c) Capital Reserve d) Statement of P&L
12. Nitin, Prithika & Albert are partners sharing profits and losses in the ratio 2: 2: 1. They decided to share profits &
losses in the ratio 3: 2: 1 with effect from 1st April, 2024. An extract of their Balance sheet as at 31st March, 2024 is
as follows.
Liabilities ₹ Assets ₹
Workmen Compensation Reserve 80,000 Investment 1,00,000
Investment Fluctuation Reserve 60,000
Additional Information:
a) A liability against Workmen Compensation Reserve stood at ₹ 90,000.
b) The market value of Investment was ₹ 1,10,000.
Pass necessary journal entries when there is change in profit sharing ratio. (3)
13. Naitik and Vishal were partners in a firm sharing profits in the ratio of 3 : 5. Their fixed capitals were ₹ 4,00,000 and
₹ 6,00,000 respectively. On 1st April, 2024, Aarushi was admitted as a new partner for 1/4th share in the profits.
Aarushi brought ₹ 4,00,000 as her capital which was to be kept fixed like the capitals of Naitik and Vishal.
Calculate-
a) The goodwill of the firm on Aarushi’s admission
b) Pass necessary journal entry for the treatment of goodwill on Aarushi’s admission considering that Aarushi did
not bring her share of goodwill premium in cash. (3)
14. Flipcart Ltd. invited applications for issuing 15,000; 11% debentures of ₹ 100 each at a premium of ₹ 50 per
debenture. The full amount was payable on application. Applications were received for 25,000 debentures.
Applications for 10,000 debentures were rejected and the application money was refunded. Debentures were allotted
to the remaining applicants on pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of Flipcart Ltd. (3)
OR
Zen Ltd. purchased the following assets of Yen Ltd.-
Land and Building of ₹ 84,00,000 at ₹ 60,00,000
Plant and Machinery of ₹ 40,00,000 at ₹ 40,00,000
The purchase consideration was ₹ 1,10,00,000 and the payment was made by issuing a cheque in favor of Yen Ltd. of
₹ 20,00,000 and remaining by issue of 10% Debentures of ₹ 100 each at a discount of 10%.
Pass Journal Entries in the Books of Zen Ltd for the above transactions.
15. Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4: 3: 3. Their fixed capitals on 1st April,
2023 were ₹ 9,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. On 1st October, 2023, Yadu provided his house to the
firm for business purpose at an annual rent of ₹ 6,000. As per the partnership agreement- (4)
a) The partners were entitled to an interest on capital @ 6% p.a.
b) Interest on partners’ drawings was to be charged @ 8% p.a.
The firm earned profits of ₹ 2,53,000 before any charges during the year 2023-2024.
The Partners’ drawings for the year amounted to Yadu: ₹ 80,000, Vidu: ₹ 70,000 and Radhu: ₹ 50,000.
Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2024.
OR
P, Q and R were partners with fixed capital of ₹ 40,000, ₹ 32,000 and ₹ 24,000. After distributing the profit of
₹ 48,000 for the year ended 31st March 2022 in their agreed ratio of 3: 1: 1, it was observed that:
a) Interest on capital was provided at 10% p.a. instead of 8% p.a.
b) Salary of ₹ 12,000 was credited to Q instead of R.
Pass a single journal entry in the beginning of the next year to rectify the above omissions.
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16. A, B and C were partners in a firm sharing profits in the ratio of 3: 2: 1. Their Balance sheet as at 31st March, 2024 is-
Liabilities ₹ Assets ₹
Creditors 1,00,000 Land 1,00,000
Bank Overdraft 40,000 Building 1,00,000
General Reserve 60,000 Plant 2,00,000
A’s Capital 2,00,000 Goodwill 80,000
B’s Capital 1,00,000 Debtors 60,000
C’s Capital 50,000 Bank 10,000
5,50,000 5,50,000
They decided to share future Profits equally with effect from 1st April, 2024. For this, it was agreed that-
a) Goodwill of the firm be valued at ₹ 3,00,000.
b) Land be revalued at ₹ 1,60,000 and Building be depreciated by 6%.
c) Creditors of ₹ 12,000 were not to be likely claimed and hence written off.
Prepare Revaluation Account and Partners’ Capital Accounts. (4)

17. Pass necessary Journal Entries for the issue of Debentures in the following cases- (6)
a) Issued ₹ 30,000; 10 % Debentures of ₹ 100 each at a Premium of 10% and redeemable at a premium of 15%.
b) Issued ₹ 70,000; 12% Debentures of ₹ 100 each at a Discount of 10% and redeemable at a premium of 5%.
Also prepare ‘Loss on issue of Debentures’ Account in both the cases.
18. Following is Balance sheet of Jai & Sai sharing profits in ratio 2 : 1 as at 1st April, 2024. (6)
Liabilities ₹ Assets ₹
Creditors 1,60,000 Plant & Machinery 1,65,000
Capital Accounts: Furniture and Fixtures 65,000
Jai 1,40,000 Stock 47,000
Sai 1,00,000 2,40,000 Debtors 1,07,000
Profit & Loss Account 30,000 Bank 44,000
Provision for Doubtful Debt 7,000 Advertising Suspense 9,000
4,37,000 4,37,000
On 1st April, 2024,’Jerry’ was admitted for 1/5th share in profits. It was agreed that-
a) Jerry brings ₹ 1,50,000 capital and ₹ 42,000 as his share of goodwill.
b) Plant & Machinery will be reduced by ₹ 34,000.
c) Stock was overvalued by ₹ 7,000.
d) Further Bad debt was ₹ 7,000. Also create a Provision for Doubtful Debt @ 10% on Debtors.
Prepare Revaluation A/c and Partners’ Capital Accounts.
OR
Following is Balance sheet of A & B sharing profits in ratio 2 : 1 as at 1st April, 2024.
Liabilities ₹ Assets ₹
Creditors 1,60,000 Plant & Machinery 1,65,000
Capital Accounts: Furniture and Fixtures 65,000
A 1,20,000 Stock 47,000
B 1,20,000 2,40,000 Debtors 1,05,000
Workmen Compensation Reserve 30,000 Bank 46,000
Provision for Doubtful Debt 7,000 Profit & Loss Account 9,000
4,37,000 4,37,000
On 1st April, 2024,’C’ was admitted 1/5th share in profits which he took from ‘B’ only. It was agreed that-
a) ‘C’ brings ₹ 1,20,000 capital and ₹ 21,000 as his share of goodwill.
b) Plant & Machinery will be reduced by ₹ 35,000.
c) Stock was undervalued by ₹ 7,000.
d) Further Bad debt was ₹ 5,000. Also create a Provision for Doubtful Debt @ 10% on Debtors.
Prepare Revaluation A/c and Partners’ Capital Accounts.