Std.

: 12th (CBSE)(B) MID TERM EXAM Date : 26/10/2024

Time : 3 Hours. ACCOUNTANCY (055)
Marks: 80

 GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question 1 to 16 and 27 to 30 carries 1 mark each.
3. Questions 17 to 20, 31and 32 carries 3 marks each.
4. Questions from 21, 22 and 33 carries 4 marks each
5. Questions from 23 to 26 and 34 carries 6 marks each

SECTION - A
1 Ostensible partners are those who [1]
a) contribute very less capital but get equal profit
b) do not contribute any capital but get some share of profit for lending
their name to the business
c) contribute maximum capital of the business
d) do not contribute any capital and without having any interest in the
business, lend their name to the business
2 Is rent paid to a partner appropriation of profits? [1]
a) It is not appropriation of profit
b) If partner’s contribution as capital is maximum
c) If partner is a working partner
d) It is appropriation of profit
3 Assertion (A) : The standard ratio of current ratio is 2 : 1. [1]
Reason (R) : A high operating ratio leaves a high margin to meet non -
operating expenses.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

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4 When some part of profit is transferred to the Debenture Redemption Reserve,
General Reserve or Workmen compensation reserve etc. It is called: [1]
a) Share Application money pending allotment
b) Creation of Contingent Reserve
c) Revaluation process
d) Appropriation of Profit
5 Financial Statements are prepared on certain basic assumptions (pre-requisites)
known as ________ [1]
a) Postulates
b) Basis of Accounting
c) Provisions of Companies Act, 2013
d) Accounting Standards
6 In case of a change in profit sharing ratio among the existing partners who will
compensate the existing partners : [1]
a) Gaining partner shall compensate
b) All partners shall compensate
c) Only one partner compensate
d) Sacrificing partner shall compensate
7 X, Y and Z are sharing profits in the ratio of 50%,40% and 10% respectively.
Now, they have decided to share future profits equally. Identify the gainer
partner. [1]
a) Y is gainer b) Both X and Y are gainer
c) Z is gainer d) X is gainer
8 Sunaina, Rohan and Rina were partners in a firm sharing profits and losses in
the ratio of 4 : 3 : 1. Sunaina retired, selling her share of profits to Rohan and
Rina in the ratio of 3 : 1. The new profit - sharing ratio between Rohan and
Rina will be : [1]
a) 3:1 b) 4:1 c) 4:3 d) 2:1
9 Surbhi and Leena were partners in a firm sharing profits and losses in the ratio
of 5 : 3. Ashi was admitted as a new partner for share in the profits of the firm.
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Ashi acquired of her share from Surbhi. From the following, how much
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share did Ashi acquire from Leena: [1]
2 3 3 1
a) b) c) d)
5 8 20 10

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10 Asha and Nisha were partners in a firm sharing profits and losses in the ratio
1
3 : 1. Charu was admitted as a new partner for th share in the profits of the
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firm which she acquired equally from Asha and Nisha. The new profit sharing
ratio of Asha, Nisha and Charu will be: [1]
a) 1 :2 : 1 b) 1 :1 : 2 c) 5 :1 :2 d) 3 :1 :4
11 Assertion (A) : A trading company sells its fixed assets through an agent.
The agent is to be paid 50,000 as fee which can be shown
as Trade payables in the Balance sheet. [1]
Reason (R) : Trade payables are defined as the amount payable against
purchase of goods or services taken in the normal course
of business and includes both sundry creditors and bills
payable.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
12 If net revenue from operations of a firm are 15,00,000; Gross Profit is 9,00,000
and operating expenses are 75,000, what will be percentage of operating income
on net revenue from operations ? [1]
a) 55% b) 35% c) 65% d) 45%
13 While preparing Statement of Profit and Loss , net sales is Recorded as: [1]
a) Other income b) Revenue from operations
c) Other Expenses d) Finance Cost
14 It designed to show the changes in the assets, liabilities and capital of the firm
between the dates of two balance sheets is known as. [1]
a) Common Size Statement b) Cash Flow Statement
c) Trend Analysis d) Funds Flow Statement
15 Machinery was purchased for 10,00,000, paying 40% by issue of equity shares
of 10 each and the balance by a cheque. This transaction will result in : [1]
a) Decrease in cash and cash equivalents 10,00,000
b) Cash used in investing activities 6,00,000.
c) Cash used in investing activities 10,00,000.
d) Cash generated from financing activities 4,00,000.

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16 How will you deal increase in the balance of Securities Premium Reserve while
preparing a Cash Flow Statement ? [1]
a) Cash flow from Investing activities
b) Cash Equivalent
c) Cash flow from Financing activities
d) Cash flow from operating activities
17 A, B and C were partners sharing profits and losses in the ratio of 7 : 5 : 4.
From 1st April, 2023, they decided to share profits and losses in the ratio of
3 : 2 : 1. You are required to fill up the following journal entry: [3]
JOURNAL

18 A and B were partners sharing profits in 2 : 1 ratio. During the year ended 31
March, 2023, A’s drawings were 50,000 per month drawn in the beginning of
everymonth and B’s drawings were 25,000 per month drawn at the end of
every month. After the preparation of final accounts, it was discovered that
interest on A’s drawings @ 12% p.a. was not taken into consideration. Give the
necessary adjusting entry on 1 April, 2022. [3]
19 State giving reason whether Trade Receivables are classified as Current Assets
or Non - current Assets in the Balance Sheet of a Company as per Schedule III
of the Companies Act, 2013 in the following cases: [3]

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20 Give the heads under which the following items are shown in a company’s
Balance Sheet as per Schedule III, Part I of the Companies Act, 2013? [3]
1. Mortgage Loan 2. Patents
3. Investments 4. General Reserve
5. Bills Receivableand 6. 10% Debentures
21 A business has earned average profit of 8,00,000 during the last few years and
the normal rate of return in similar business is 10%. Find value of goodwill by: [4]
1. Capitalisation of Super Profit Method; and
2. Super Profit Method if the goodwill is valued at 3 years’ purchase of
super profit.
Assets of the business were 80,00,000 and its external liabilities 14,40,000
22 A Company made credit sales of Rs 7,20,000 during the year. If the collection
period is 50 days and the year is assumed to be of 360 days. Calculate - [4]
1. Average Debtors
2. Debtors Turnover ratio
3. Opening and Closing Debtors if the Closing Debtors are Rs 10,000 more
than the Opening Debtors.
23. Harshit and Naval are partners sharing profits in the ratio of 3 : 2. Their Balance
Sheet as at 31 March, 2023is as follows : [6]

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 1
Naveen is admitted as a partner for th share on 1 April, 2023on the following
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terms:
1. Naveen is to bring 65,000 as the capital after adjusting the amount due
to him included in creditors and his share of Goodwill.
2. 10,000 included in creditors is payable to Naveen which is to be
transferred to his Capital Account.
3. Furniture is to be reduced by 3,000 and Plant and Machinery is to be
increased to 1,98,000.
4. Stock is overvalued by 4,000.
5. A Provision for Doubtful Debts is to be created @ 5%.
6. Goodwill is to be valued at 2 years’ purchase of average profit for four
years. Profits of four years ended 31 March were as follows: 2023—
25,000, 2022— 10,000, 2021— 2,500, and 2020— 2,500.
Pass the Journal entries for the above arrangement.
24 M and N are partners in 5:3. Balance Sheet of M and N as at31st March, 2021 [6]

On the above date , R is admitted as a partner on the following terms:

1. New ratio of M, N and R will be 7 : 5 : 4 respectively.
2. R shall bring in Rs. 8000 as capital and Rs. 4000 as goodwill.
3. M and N will withdraw half of the goodwill in cash.
4. Machinery is to be valued at Rs. 15000; Stock at Rs. 10000 and a
Provision for doubtful debts is to be created Rs. 1000.
5. Unrecorded Outstanding Salaries is to be recorded Rs. 2000.
Prepare Revaluation Account, Partner’s Capital Account and Balance Sheet of
the new firm.

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25 The following is the Balance Sheet of A and B as at 31 March, 2022who share
profits in the ratio of 2 : 1. [6]

They admitted C into partnership on 1 April, 2022. New profit sharing ratio is
3 2 1
agreed as : : . Cbrings in proportionate capital after the following
6 6 6
adjustments:
1. C brings in 10,000 in cash as his share of Goodwill.
2. Provision for doubtful debts is to be reduced by 2,000.
3. There is an old typewriter valued 2,600. It does not appear in the books
of the firm. It is now to be recorded.
4. Patents are valueless.
5. 2% discount is to be received from creditors.
Prepare Revaluation A/c, Capital A/c’s and the opening Balance Sheet.

SECTION - B

26 An Example of cash flow from financing activity is : [1]

a) Payment of dividend
b) Receipt of dividend on investment
c) Purchase of fixed asset
d) Cash received from customer
27 Where will you show purchase of Goodwill in a Cash Flow Statement? [1]
a) Cash Flow from Operating Activities
b) Cash Flow from Financing Activities
c) Cash Equivalent
d) Cash Flow from Investing Activities

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28 ________ are highly liquid assets that can be converted into cash shortly. [1]
a) Non - current Investments b) Inventories
c) Loose Tools d) Cash Equivalents
29 A and B were partners in a firm with capitals of 3,00,000 and 2,00,000
respectively. The normal rateof return was 20% and the capitalised value of
average profits was 7,50,000. Goodwill of the firm bycapitalisation of average
profits method will be : [1]
a) 2,50,000 b) 2,20,000
c) 2,80,000 d) 2,00,000
30 From the following information, prepare Comparative Statement of Profit &
Loss: [3]

31 Cost of Revenue from Operations (Cost of Goods Sold) 2,20,000; Revenue

from Operations (Net Sales) 3,20,000; Selling Expenses 12,000; Office
Expenses 8,000; Depreciation 6,000. Calculate Operating Ratio. [3]
32 1. From the following information, calculate Operating Ratio: [4]

2. From the following details, calculate Interest Coverage Ratio:

OR

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 The quick ratio of a company is 2 : 1. State with giving reasons, (for any four)
which of the following would improve, reduce or not change the ratio.
1. Purchase of machinery incash.
2. Purchase of goods on credit.
3. Sale of furniture at the price atwhich it is purchased.
4. Sale of goods at a profit.
5. Cash received from debtors.
33 From the following particulars of P Ltd., you are required to calculate : [6]
1. Cash from Operating Activities, and
2. Cash from Investing Activities.

Additional Information :
During the year 2022 - 23, a machine with a book value of 50,000 (accumulated
depreciation 20,000) was sold at a loss of 6,000.
34 From the given notes to accounts and Cash Flow Statement of Tiwari Ltd.
complete the missing figures: [6]

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Additional Information:
1. During the year machine of the book value of 1,00,000 was sold for
30,000 and dividend paid 30,000.
2. Debentures for 20,000 were redeemed during the year. Interest paid on
debentures amounted to 10,000.
CASH FLOW STATEMENT
for the year ended 31 March 2023

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