St Xavier's High School

Barabati Stadium

ACCOUNTANCY
Class 12 - Accountancy
Time Allowed: 3 hours Maximum Marks: 118

1. Calculate Interest on drawings of Mr. Mukul @ 8% p.a. from the following information as on 31.03.2021 [1]
Drawings on 15.04.2020 = 12,000
After 15.04.2020 Mr. Mukul has withdrawn ₹ 10,000 at the beginning of each month
Interest on his drawings will be:

a) 5,720 b) 5,520

c) 6,120 d) 5,320
2. X and Y are partners. They have provided the following information: [1]
Manager salary = 20,000 per Quarter
Manager commission = 10% of the profit after charging such commission
Total Remuneration (Salary + commission) to manager = 1,40,000
Profit for the year before charging salary & commission was:

a) 6,60,000 b) 8,00,000

c) 6,80,000 d) 7,40,000
3. Which of the following is shown in P/L Appropriation A/c? [1]

a) Manager's Commission b) Partner's Commission

c) Rent to partner d) Interest on loan

4. When is the Partnership Act enforced? [1]

a) Where there is a partnership deed but there b) When there is no partnership deed
are differences of opinion between the
partners

c) When capital contribution by the partners d) When the partner’s salary and interest on
varies capital are not incorporated in the
partnership deed
5. Varun, Monu and Ramesh are partners sharing profits and losses equally. Their capital balances on March, 31, [1]
2019 are ₹ 1,60,000; ₹ 1,20,000 and ₹ 80,000 respectively.
Their personal assets are worth as follows: Varun ₹ 40,000; Monu ₹ 30,000 and Ramesh ₹ 20,000. The extent of
their liability in the firm would be:

a) Equal (all three partners) b) Varun ₹ 1,60,000; Monu 1,20,000 and

Ramesh ₹ 80,000

c) Varun ₹ 40,000; Monu 30,000 and Ramesh d) Varun ₹ 2,00,000; Monu 1,50,000 and
₹ 20,000 Ramesh ₹ 1,00,000

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 6. When a partner is given guarantee by other partners, loss on such guarantee will be borne by: [1]

a) Partner with highest profit sharing ratio b) Partners who give the guarantee

c) Partnership firm d) All the other partners

7. X, Y and Z are partners with a capital of ₹ 5,00,000, ₹ 2,50,000 and ₹ 2,50,000 respectively. At the time of [1]
division of profit for the year there was a dispute between the partners for profit sharing ratio. X wanted that
profit should be distributed in their capital ratio, but other partners do not agree on this. Profit during the year is
₹ 15,000.
Z ’s share of Profit will be:

a) 7,000 b) 7,500

c) 3,750 d) 5,000
8. In the absence of the Partnership Deed, Interest on Capital [1]

a) is allowed at the borrowing rate. b) is not allowed.

c) is allowed @ 10% per annum. d) is allowed @ 6% per annum.

9. A and B are partners sharing profits equally. Their capitals as on 1st April, 2022 were ₹ 5,00,000 each. Partners [3]
are allowed interest on capital @ 5% p.a. Drawings of each partner were ₹ 1,00,000. Salary is to be allowed to B

@ ₹ 5,000 per month. Net Profit for the year ended 31st March, 2023 was ₹ 8,80,000.10% of the net divisible
profit is to be set aside to General Reserve. Prepare Profit & Loss Appropriation Account for the year ended 31st
March, 2023.
10. Mention any four provisions of the Partnership Act, in the absence of Partnership Deed. [3]
11. Rohit and Ravi are partners in a firm sharing profits in the ratio of 3 : 2. The Partnership Deed provided that [4]
Rohit was to be paid salary of ₹ 2,500 per month and Ravi was to get a commission of ₹ 10,000 per year. Interest
on capital was to be allowed @ 5% p.a. and interest on drawings was to be charged @ 6% p.a. Interest on
Rohit’s drawings was ₹ 1,250 and on Ravi’s drawings ₹ 425. Capital of the partners were ₹ 2,00,000 and ₹
1,50,000 respectively and were fixed. The firm earned a profit of ₹ 90,575 for the year ended 31st March, 2023.
Prepare the Profit and Loss Appropriation Account of the firm.
12. If goodwill is not brought in cash by the new partner, it should be debited to his ________ Account. [1]

a) Current b) Capital

c) Both Current or Capital d) Loan

13. If X pays ₹ 1,50,000 as his share of goodwill to Y (Privately), an existing partner, the treatment will be: [1]

a) goodwill account will be debited by ₹ b) goodwill account will be credited by ₹

6,00,000 1,50,000

c) goodwill account will be debited by ₹ d) no entry will be passed

1,50,000
14. A and B are partners sharing profits in the ratio of 3 : 1. They decided to admit Girish as a new partner and new [1]
profit sharing ratio is 1 : 1 : 1. Girish Paid ₹ 2,00,000 as his share of goodwill.
B's Capital account is to be credited/debited with:

a) 50,000 (Cr) b) 16,667 (Dr)

c) 50,000 (Dr) d) 30,000 (Cr)

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 th
15. Vinod and Ankit were equal partners in a partnership. They admitted Govind for 1
share. He acquired his [1]
4

share equally from Vinod and Ankit. Consider the statements below:
i. Vinod and Ankit both will sacrifice equally to Govind.
ii. Vinod's sacrificing ratio is more than that of Ankit.
iii. The new profit sharing ratio of Vinod, Ankit and Govind will be 11 : 6 : 5.

a) Only (iii) is correct b) All of these

c) Only (i) is correct d) Only (ii) is correct

16. A and B are partners in the ratio of 3 : 2. C is admitted as a partner and he takes 1

4
th of his share from A. B gives [1]
3

16
from his share to C. What is the share of C?

a) 1

4
b) 1

20

c) 1

6
d) 1

16

17. Revaluation Account or Profit and Loss Adjustment Account is a: [1]

a) Asset Account b) Real Account

c) Nominal Account d) Personal Account

18. Girish and Sunita are sharing profits in the ratio of 5 : 3. They admit Yuvraj as a new partner for 1 th share. [1]
5

Yuvraj brings his share of premium in cash out of which 30% of the amount (which was credited to them) was
withdrawn by the Girish and Sunita. Amount withdrawn by Sunita was ₹ 450.
How much amount of premium was withdrawn by Girish?

a) 2,500 b) 1,500

c) 4,000 d) 750

19. X and Y sharing profits in the ratio of 2 : 1. Z joins the firm. X surrenders 1 th of his share and Y 1 th of his [1]
4 5

share in favour of Z.
New profit sharing ratio will be:

a) 2 : 1 : 1 b) 15 : 8 : 7

c) 15 : 10 : 5 d) 15 : 7 : 8
20. A, B and C are partners sharing profit in the ratio of 1

2
:
1

3
:
1

6
. D is admitted in the firm for 1

6
share. C’s share [3]
will remain unchanged, calculate new ratio.
21. On the admission of Mehta, goodwill of Gupta and Malhotra is valued at ₹ 30,000. Mehta is to get 1

4
th share of [3]
profits. Previously Gupta and Malhotra shared profits in the ratio of 3 : 2. Mehta is unable to bring amount of
goodwill. Give Journal entries in the books of Gupta and Malhotra when:
i. Goodwill does not exist in the books.
ii. Goodwill exists in the books at ₹ 10,000.
22. pass Journal entries to record the following arrangements in the books of the firm: [4]
a. B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of ₹
2,000 for 1
th share of the profits, shares of B and C remain as before.
4

b. B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of ₹ 2,100 for 1
th
4

share of profits which he acquires 1

6
th from B and 1

12
th from C.
23. Madhuri and Arsh were partners in firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as at [6]

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 31st March 2019, was as follows:
Balance Sheet of Madhuri and Arsh

as at 31st March 2019

Amount Amount
Liabilities Assets
(₹) (₹)

Capitals: Machinery 4,70,000

Madhuri 3,00,000 Investments 1,10,000

Arsh 2,00,000 5,00,000 Debtors 1,20,000

Workmen's Compensation Less: Provision for doubtful

60,000 10,000 1,10,000
Reserve debts

Creditors 1,90,000 Stock 1,40,000

Employees' Provident Fund 1,10,000 Cash 30,000

8,60,000 8,60,000

On 1st April 2019, they admitted Jyoti into a partnership for 1

4
th share in the profits of the firm. Jyoti brought
proportionate capital and ₹ 40,000 as her share of goodwill premium. The following terms were agreed upon:
i. Provision for doubtful debts was to be maintained at 10% on debtors.
ii. The stock was undervalued by ₹ 10,000.
iii. An old customer whose account was written off as bad and paid ₹ 15,000 in full settlement.
iv. 20% of the investments were taken over by Arsh at book value.
v. Claim on account of workmen’s compensation amounted to ₹ 70,000.
vi. Creditors included a sum of ₹ 27,000 which was not likely to be claimed.
Prepare Revaluation Account, Partners' Capital Accounts, and the Balance Sheet of the reconstituted firm.
24. At the time of firm's dissolution, if realised value of intangible asset is not given, the realised value will be taken [1]
as

a) Market value b) Nil

c) Book value d) Realised value

25. Which of the following is not transferred to Realisation Account? [1]
Balance of Profit & Loss A/c, Advertisement Suspense A/c, Partner’s Loan

a) Advertisement Suspense A/c b) All of these

c) Balance of Profit & Loss A/c d) Partner’s Loan

26. A and B share profits and losses in the ratio of 5:2. They have decided to dissolve the firm. Assets and external [1]
liabilities have been transferred to Realisation A/c. It is found that an unrecorded Computer was realized ₹7,000.
How would you record it?

a) Bank A/c Dr. 7,000 b) Computer A/c Dr. 7,000

To Realisation To Realisation
7,000 7,000
A/c A/c

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 c) Bank A/c Dr. 7,000 d) Bank A/c Dr. 700

To Computer To Capital A/c 700

7,000
A/c

27. Sundry Creditors amounted to ₹ 8,000. These were paid at a discount of 5%. Realisation account will be debited [1]
by ________.

a) ₹ 7,600 b) ₹ 8,400

c) ₹ 400 d) ₹ 8,000
28. On firm’s dissolution, which one of the following account should be prepared at the last? [1]

a) Partner’s Loan Account b) Realisation Account

c) Partner’s Capital Accounts d) Cash Account

29. On dissolution of a firm, partners’ capital accounts balance was ₹ 63,000; creditors balance was ₹ 12,000 and [1]
profit & loss account debit balance was ₹ 6,000. Profit on realisation of assets was ₹ 7,800, Total amount
realised from assets was:

a) ₹ 76,800 b) ₹ 81,000

c) ₹ 70,800 d) None of these

30. Anshika, Babita and Chaman are partners. The firm had given a loan of ₹ 20,000 to Babita. On the event of [1]
dissolution, the loan will be settled by:

a) Babita paying Anshika and Chaman b) Transferring it to debit side of Babita’s

privately. Capital Account.

c) Transferring it to credit side of Realization d) Transferring it to debit side of Realization

Account. Account.
31. Realisation expenses ₹ 15,000 were paid by the firm on behalf of a partner. The Journal entry passed will be: [1]

a) ₹ ₹ b) ₹ ₹

(d) Cash/Bank A/c Dr. 15,000 (b) Realisation A/c Dr. 15,000

To Realisation To Concerned
15,000
A/c Partner's Capital 15,000
A/c

c) ₹ ₹ d) ₹ ₹

Concerned (a) Realisation A/c Dr. 15,000

(c) Partner's Capital Dr. 15,000
To Cash/Bank
A/c 15,000
A/c
To Cash/Bank
15,000
A/c

32. L and M were partners in a firm sharing profits in the ratio of 2 : 3. On 28th February, 2023 the firm was [3]
dissolved. After transferring assets (other than cash) and outsiders' liabilities to Realisation Account you are
given the following information:

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 i. A creditor for ₹ 1,40,000 accepted building valued at ₹ 1,80,000 and paid to the firm ₹ 40,000.
ii. A second creditor for ₹ 30,000 accepted machinery valued at ₹ 28,000 in full settlement of his claim.
iii. A third creditor amounting to ₹ 70,000 accepted ₹ 30,000 in cash and investments of the book value of ₹
45,000 in full settlement of his claim.
iv. Loss on dissolution was ₹ 4,000.
Pass necessary Journal entries for the above transactions in the books of the firm assuming that all payments
were made by cheque.
33. What is the accounting treatment of Investments Fluctuation Fund when Investments, as shown in the firm's [3]
Balance Sheet are transferred to Realisation Account and are sold to a person other than a partner at their book
value, at the time of the dissolution of the firm?
34. Record journal entries at the time of dissolution of a partnership firm of Vibha, Shobha and Anubha in the [4]
following cases:
i. Dissolution expenses amounted to ₹ 6,500.
ii. Dissolution expenses ₹ 7,800 were paid by Anubha.
iii. Vibha was appointed to look after the dissolution process for which she was given a remuneration of ₹
12,000
iv. Shobha was appointed to look after the dissolution work for which she was allowed a remuneration of ₹
15,000. She agreed to bear dissolution expenses. Actual dissolution expenses paid by her amounted to ₹
11,800.
v. Anubha was to look after the dissolution process for which she was allowed a remuneration of ₹ 12,000 she
also agreed to bear dissolution expenses. Actual expenses of ₹ 9,500 were paid by the firm.
vi. Anubha looked after the dissolution work for remuneration of ₹ 8,500 and agreed to bear dissolution
expenses up to ₹ 6,000. The actual expenses paid by her were ₹ 7,600.
vii. Vibha was appointed to look after the dissolution work for which she was allowed a remuneration of ₹
14,000. She agreed to take over the investment of the book value of ₹ 13,000 towards payment of her
remuneration. Investments have already been transferred to realisation Account.
35. M, S and R were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31.03.2022, their [6]
Balance Sheet was as follows:

Balance Sheet of M, S and R as at 31st March, 2022

Liabilities Amount (₹) Assets Amount (₹)

Creditors 80,000 Fixed Assets 1,20,000

Capitals: Stock 70,000

M 60,000 Debtors 20,000

S 50,000 Bank 60,000

R 30,000 1,40,000

Profit and Loss A/c 50,000

2,70,000 2,70,000

On the above date the firm was dissolved. Fixed assets realised ₹ 1,20,000 and stock realised ₹ 10,000. Debtors
were realised at their book value and liabilities were paid in full.

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 Prepare Realisation Account and Partners' Capital Accounts.
36. Nominal/Authorised share capital is: [1]

a) the maximum amount of share capital which b) that part of the share capital which is issued
a company is authorised to issue. by the company.

c) the amount actually paid by the d) the amount of share capital which is actually
shareholders. applied for by the prospective shareholders.
37. When shares are issued and allotted to a selected group of persons privately and not to the public in general [1]
through public issue, it is known as ________.

a) Private Placement of Shares b) IPO

c) Public Allotment d) Right issue

38. NUK Ltd. forfeited 1,000 shares of ₹ 10 each, fully called up for non-payment of final call of ₹ 2 per share. 800 [1]
of these shares were reissued at ₹ 11 per share fully paid. The amount credited to Capital Reserve Account will
be:

a) ₹ 6,400 b) ₹ 10,000

c) ₹ 8,000 d) ₹ 7,200
39. X Ltd. forfeited 1200 shares of ₹ 10 each, ₹ 6 called up, for non-payment of First Call of ₹ 2 per share. Journal [1]
entry for forfeiture of share will be (Calls in arrear account is not opened)

a) Share capital A/c Dr. 1200 b) Share capital A/c Dr. 7200

To Share forfeiture A/c 4800 To Share forfeiture A/c 4800

To Calls in arrear A/c 7200 To Equity share 1st call

2400
A/c

c) Share capital A/c Dr. 12000 d) Share capital A/c Dr. 7200

To Share forfeiture A/c 4800 To Share forfeture A/c 4800

To Equity share 1st call To Calls in arrear A/c 2400

7200
A/c

40. X Ltd. forfeited the following shares: [1]

Forfeited 1000 shares of Ram for non payment of final call of ₹ 4 per share
Forfeited 500 shares of Shyam for non payment of first and final call of ₹ 5 per share.
Out of the above forfeited share 1200 shares are reissue at 9 per share as fully paid up, which includes all the
shares of Ram.
Amount transferable to capital reserve will be:

a) 7,300 b) 6,000

c) 5,550 d) 5,800
41. If 400 shares of ₹ 10 issued at a premium of ₹ 3 on which the full amount has been called and ₹ 8 (including [1]
premium) have been received are forfeited, the forfeiture account should be credited with:

a) ₹ 2,800 b) ₹ 3,200

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 c) ₹ 2,000 d) ₹ 1,200
42. Which of the following statement is not correct? [1]
i. Securities Premium Reserve cannot be used as working capital.
ii. Capital reserve is a reserve created out of the profits of capital nature.
iii. Preliminary expenses are those expenses which are incurred for incorporation of a company.
iv. It is mandatory to create Reserve Capital.

a) Option (i) b) Option (iii)

c) Option (ii) d) Option (iv)

43. Girish Ltd. acquired a running business of Ankit Ltd. consisting Assets of ₹ 20,00,000 and creditors of ₹ [1]
2,00,000, Bills Payable of ₹ 3,00,000. Purchase consideration is settled by a Bank draft of ₹ 4,00,000 and
1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.
Amount of Goodwill/capital Reserve at the time of purchase of business ________.

a) No capital reserve / No Goodwill b) Capital Reserve ₹ 1,00,000

c) Capital Reserve ₹ 3,00,000 d) Goodwill ₹ 1,00,000

44. 20,000 shares of ₹ 10 each were issued for public subscription at a premium of 10%. Full amount was payable [3]
on application. Applications were received for 30,000 shares and the Board decided to allot the shares on a pro
rata basis. Pass Journal entries.
45. What are the essential characteristics of a company? [3]
46. Pass necessary journal entries for forfeiture and reissue of shares in the following cases: [6]
i. Star Ltd. forfeited 8,000 shares of ₹ 100 each issued at 10% premium for non-payment of allotment money
of ₹ 40 per share (including premium) and first call of ₹ 30 per share. The second and final call of ₹ 20 per
share was not yet called. Out of these, 6,000 shares were reissued at ₹ 80 paid up for ₹ 70 per share.
ii. Premier Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received and
the second and final call of ₹ 2 per share was not yet called. Out of these, 2,000 shares were reissued to Gita
at ₹ 8 paid up for ₹ 12 per share.
47. What is the Maximum discount limit on issue of debentures as per law? [1]

a) 6% b) 10%

c) Not Fixed d) 15%

48. Raj Ltd. purchased a building for ₹ 5,00,000 payable as 15% in cash and balance by allotment of 9% debentures [1]
of ₹ 100 each at a premium of 25%. Number of debentures issued will be:

a) 4,000 b) 5,000

c) 4,250 d) 3,400
49. Naman Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of ₹ 4. It has a balance in Securities [1]
Premium Reserve of ₹ 25,000. It will write off Discount on Issue of Debentures as

a) ₹ 40,000 from Statement of Profit & Loss. b) ₹ 15,000 from Securities Premium and ₹
25,000 from Statement of Profit & Loss
(Finance Cost).

c) ₹ 25,000 from Securities Premium and ₹ d) ₹ 40,000 from Securities Premium.

15,000 from Statement of Profit & Loss

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 (Finance Cost)
50. If Vendors are issued debentures of ₹ 4,40,000 in consideration of assets of ₹ 5,00,000 and liabilities of ₹ [1]
1,00,000, the balance of ₹ 40,000 will be debited to:

a) Statement of Profit & Loss b) General Reserve Account

c) Goodwill Account d) Capital Reserve Account

51. Y Limited acquired assets of ₹100 Lakhs and took over liabilities of ₹40,00,000 from Sita Enterprises. Y [1]
Limited issued 8% Debenture of ₹100 each at a premium of 25% as purchase consideration. Calculate the
number of debentures issued by the company.

a) 60,000 b) 48,000

c) 40,000 d) 45,000
52. Debentures are considered as ________ equity. [1]

a) Internal b) External and Internal

c) Only external d) External

53. How many debentures to be issued under purchase consideration are calculated. State the Formula. [1]
Purchase consideration Cash consideration
a) b)
Issue price of debentures Issue price of shares

Cash consideration Purchase consideration

c) d)
Issue price of debentures Issue price of shares

54. X Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 20 thousand from Y Ltd. X Ltd. issued 8% [1]
debentures of ₹ 200 each at a discount of 10% as purchase consideration. Number of debentures issued will be:

a) 10,000 b) 11,000

c) 9,000 d) 10,100
55. X Ltd. issued ₹ 2,00,000,12% debentures of ₹ 100 each at a discount of 6% but repayable after 8 years at a [3]
premium of 5%. Pass journal entry for the issue.

56. On 1st April, 2022 Yogesh Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of 5% and [3]

redeemable at a premium of 10% after 5 years. According to the terms of the issue, ₹ 200 was payable on
application and balance on the allotment. Record necessary entries regarding the issue of debentures writing off
loss on issue of debentures.
57. MN Ltd. issued ₹ 7,00,000; 10% Debentures of ₹ 100 each at a premium of ₹ 5 per debenture redeemable at [6]
110%, payable ₹ 40 on application, ₹ 35 on allotment (including premium) and balance on first and final call.
All the debentures were subscribed and due amount was received. Journalise the issue of debentures.
58. Explain the different terms for the issue of debentures with reference to their redemption. [6]
59. Read the text carefully and answer the questions: [6]
Govind and Julee are partners in a firm for the last 2 years. On 1st April,2020 their capitals are Rs 4,00,000 and
₹ 7,00,000 respectively. On 1st Sep 2020, they decided to keep their capitals Fixed at ₹ 5,00,000 each. On 1st
Oct,2020 they took loan of ₹ 4,00,000 from Axis Bank @ 9% p.a. On 1st Jan,2021 firm gave a loan to Julee of ₹
2,00,000 @ 6% p.a.
Govind is to be given a monthly salary of ₹ 3,500 and Juhi is to be given a quarterly salary of ₹ 4,000. Govind
withdrew ₹ 24,000 at the beginning of every quarter and Julee withdrew ₹ ₹ 5,500 at the end of every month for
personal use against the anticipated profits.

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Partners are to be allowed interest on capital of @6% per annum and Interest on Drawings is to be charged @10
% p.a
Govind is entitled to commission @ 8% on the profit (after considering all charge items, appropriations, and
interest on drawings) before charging such commission. Julee is entitled to commission @ 8% on the final profit
(after considering charge items, appropriations, interest on drawings, and Govind's commission) after charging
such commission. The profit was calculated at ₹ 5,04,475 (before considering charge items).
(a) Calculate the amount of Net profit to be transferred to Profit and loss Appropriation Account?

a) ₹ 4,89,475 b) ₹ 4,86,475

c) ₹ 498,475 d) ₹ 5,07,475
(b) Calculate the total amount of Interest on Drawings to be shown in the Profit and loss Appropriation
Account?

a) ₹ 6,600 b) ₹ 9,025

c) ₹ 6,000 d) ₹ 9,600
(c) Calculate the total amount of Interest on Capital to be shown in the Profit and loss Appropriation Account?

a) ₹ 35,000 b) ₹ 62,500

c) ₹ 63,000 d) ₹ 63,500
(d) Calculate the total amount of partners Salary to be shown in the Profit and loss Appropriation Account?

a) ₹ 90,000 b) ₹ 48,000

c) ₹ 58,000 d) ₹ 42,000
(e) Calculate the total partners commission to be shown in the Profit and loss Appropriation Account?

a) ₹ 30,240 b) ₹ 59,758

c) ₹ 56,000 d) ₹ 27,821
(f) Calculate the divisible profit?

a) ₹ 2,21,100 b) ₹ 3,22,000

c) ₹ 2,24,125 d) ₹ 2,15,100

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