APK Institute

ACCOUNTNACY REVISION EXAM I ( DEC) - FULL PORTION

Class 12 - Accountancy
Time Allowed: 3 hours Maximum Marks: 80

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 is compulsory for all candidates.

4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students

must attempt only one of the given options.

5. Question 1 to 16 and 27 to 30 carries 1 mark each.

6. Questions 17 to 20, 31and 32 carries 3 marks each.

7. Questions from 21 ,22 and 33 carries 4 marks each

8. Questions from 23 to 26 and 34 carries 6 marks each

9. There is no overall choice. However, an internal choice has been provided in 7 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

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

a) Asset Account b) Real Account

c) Nominal Account d) Personal Account

2. Assertion (A): Each partner is a principal as well as an agent for all the other partners. [1]
Reason (R): As per the definition of Partnership Act, partnership business may be carried on by all the partners
or any of them acting for all.

a) Both Assertion (A) and Reason (R) are b) Both Assertion (A) and Reason (R) are
correct, but Reason (R) is not the correct correct and Reason (R) is the correct
explanation of Assertion (A). explanation of Assertion (A).

c) Assertion (A) is correct, but Reason (R) is d) Assertion (A) is incorrect, but Reason (R) is
incorrect. correct.
3. Star Ltd. issued 10,000 equity shares of ₹ 100 each at a premium of 20%. Manshi, who has been allotted 2,000 [1]
shares did not pay first and final call of ₹ 5 per share. On forfeiture of Manshi's shares, amount debited to
Securities Premium Account will be

a) NIL. b) ₹ 5,000.

c) ₹ 15,000. d) ₹ 10,000.

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4. Due to change in profit-sharing ratio, X's sacrifice is 3

10
, while Z's gain is 3

10
. They decide to record the effect of [1]
the following without affecting the book figures, by passing an adjusting entry:

General Reserve ₹ 35,000

Profit & Loss (Cr.) ₹ 15,000

Advertisement Suspense A/c (Dr.) ₹ 20,000

The necessary adjustment entry will be

a) Dr. Y and Cr. X by ₹ 18,000 b) Dr. X and Cr. Y by ₹ 9,000

c) Dr. X and Cr. Y by ₹ 18,000 d) Dr. Z and Cr. X by ₹ 9,000

5. P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed that he will get minimum of ₹ 20,000 as his share of [1]
profit every year. Firm’s profit was ₹ 90,000. Partners will get:

a) P ₹ 45,000; Q ₹ 30,000; R ₹ 15,000 b) P ₹ 42,500; Q ₹ 27,500; R ₹ 20,000

c) P ₹ 42,000; Q ₹ 28,000; R ₹ 20,000 d) P ₹ 40,000; Q ₹ 30,000; R ₹ 20,000

6. What journal entry will be passed when purchase consideration is equal to net assets while purchasing business [1]
from vendor:

a) Sundry Assets A/c Dr. b) Capital Reserve A/c Dr.

To Sundry Liabilities A/c To Vendor's A/c

To Vendor's A/c

c) Sundry Assets A/c Dr. d) Sundry Assets A/c Dr.

Goodwill A/c Dr. To Capital Reserve A/c

To Vendor's A/c To Vendor's A/c

OR
What type of debentures can be issued by an Indian company?

a) Unsecured b) Secured

c) Convertible d) Redeemable
7. Assertion (A): Called-up Capital means share capital called-up by the company on the Subscribed Shares. [1]
Reason (R): When a company issues shares amount of which is receivable in instalments, it calls upon the
shareholders to pay the amount as called. Thus, it is the Called-up Capital.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. P, Q and R share profits in the ratio of 5 : 4 : 3. R retires and the new ratio is 5 : 3. If R is given ₹ 6,000 as [1]
goodwill, journal entry will be:

a) P's Capital A/c Dr. 3,333 b) P's Capital A/c Dr. 5,000

Q's Capital A/c Dr. 2,667 Q's Capital A/c Dr. 1,000

To R's Capital A/c 6,000 To R's Capital A/c 6,000

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 c) P's Capital A/c Dr. 1,000 d) P's Capital A/c Dr. 3,750

Q's Capital A/c Dr. 5,000 Q's Capital A/c Dr. 2,250

To R's Capital A/c 6,000 To R's Capital A/c 6,000

OR
A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. It was provided that B's share of profit will not be
less than ₹ 1,50,000 per annum. The losses for the year ended 31st March, 2023 were ₹ 80,000, before allowing

interest on Loan of ₹ 2,00,000 taken from A on 1st June, 2022.

Share of each partner’s profit/loss will be:

a) A (Loss) ₹ 1,60,000; B (Profit) ₹ 1,50,000; b) A (Loss) ₹ 1,80,000; B (Profit) ₹ 1,50,000;

C (Loss) ₹ 80,000 C (Loss) ₹ 90,000

c) A (Loss) ₹ 1,40,000; B (Profit) ₹ 1,20,000; d) A (Loss) ₹ 1,20,000; B (Profit) ₹ 1,80,000;

C (Loss) ₹ 70,000 C (Loss) ₹ 60,000

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
A and B are partners in a firm sharing profits equally. On 1st April, 2020, the capitals of the partners were ₹ 2,00,000
and ₹ 1,50,000 respectively. The Profit and Loss Appropriation Account of the firm showed a net profit of ₹ 3,75,000
for the year ended 31st March, 2021.
The Partnership Deed provided the following:
i. Transfer 10% of distributable profit to Reserve Fund.
ii. Interest on capital @ 6% p.a.
iii. Interest on drawings @ 6% p.a. Drawings for A and B were ₹ 40,000 and ₹ 30,000 respectively.

9. What is the average period for which interest on drawings will be calculated?
i. 3 months
ii. 6 months
iii. 9 months
iv. 12 months

a) Option (iii) b) Option (iv)

c) Option (ii) d) Option (i)

10. Total interest on capital provided is ________.

a) ₹ 9,000 b) ₹ 21,000

c) ₹ 18,000 d) ₹ 12,000
11. X and Y are partners in a firm sharing profits in 3 : 2. They are entitled to interest on their capitals but the net [1]
profit was not sufficient for this interest, then the net profit will be distributed among partners in:

a) Equally b) Profit Sharing Ratio 3 : 2

c) Agreed Ratio d) Ratio of Appropriation (Ratio of Interest on

capital payable to them)
12. X Ltd. issued ₹ 40,00,000 equity shares of ₹ 10 each. The amount payable on these shares was as follows: [1]
On application: ₹ 1 per share

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 On allotment: ₹ 2 per share
On first call: ₹ 3 per share
On second and final call: ₹ 4 per share
All calls were made and were duly received, except first and second & final call on 2,000 shares held by Ajay
and second & final call on 1,000 shares held by Sanjay. These shares were forfeited.
Subscribed and Fully Paid Capital will be:

a) ₹ 39,70,000 b) ₹ 3,99,82,000

c) ₹ 3,99,70,000 d) ₹ 39,82,000
13. Ankit Ltd. was registered with a capital of ₹ 3,00,000 in Equity Shares of ₹ 100 each. It issued 2,000 of such [1]
shares payable ₹ 25 per share on application; ₹ 25 on allotment; ₹ 20 on first call; and the balance as and when
required. All amounts payable on application and allotments were duly received but company could not call the
first call money till 31.03.2021. Total amount to be received by the company till 31.03.2021 is:

a) 50,000 b) 1,00,000

c) 1,50,000 d) 75,000
14. How would you calculate interest on drawing of the equal amount drawn on the last day of every month? [1]
5.5 5.5
a) rate ×
b) rate ×

100 × 12 100

6.5 6.0
c) rate ×
d) rate ×

100 × 12 100 × 12

15. A and B are partners sharing profits and losses in 3 : 2. They admit C into partnership for th share in the [1]
3

10

profits. A surrenders 1

3
rd of his share and B surrenders 1

4
th of his share in favour of C. Goodwill of the firm is
valued at ₹ 3,00,000 but C is unable to bring his share of goodwill in cash. Credit will be given to:

a) A ₹ 54,000; B ₹ 36,000 b) A ₹ 60,000; B ₹ 30,000

c) A ₹ 1,80,000; B ₹ 1,20,000 d) A ₹ 2,00,000; B ₹ 1,00,000

OR
A and B are sharing profits in the ratio of 3 : 2. They admit C into partnership for 1 th share. New profit sharing
5

among the partners decided 5 : 3 : 2.

B's Capital Account was credited with ₹ 5,000 for premium for goodwill.
Premium for goodwill brought in by C:

a) 40,000 b) 30,000

c) 20,000 d) 10,000
16. On dissolution of a firm, a partner took-over the investments of ₹ 15,000 at ₹ 19,000. By how much amount the [1]
Realisation Account will be credited?

a) ₹ 4,000 b) ₹ 23,000

c) ₹ 19,000 d) Nil
17. Give two characteristics of Goodwill. [3]
18. Yogesh, Mohit and Ram are partners sharing profits equally. Yogesh is guaranteed minimum annual profit of ₹ [3]
1,00,000. Ram is to get Commission @ 5% of Net Sales and the commission is determined at ₹ 25,000. Net

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 Profit for the year ended 31st March, 2023 is ₹ 1,25,000. Prepare Profit & Loss Appropriation Account for the
year.
OR
In the absence of Partnership Deed, state the provisions of the Partnership Act, 1932 relating to:
a. Salaries of partners
b. Interest on partners'capitals
c. Interest on loan by partner,
d. Division of profit
e. Interest on partners'drawings,
f. Interest on Loan given to partners?
19. Vinay Ltd. purchased the following assets of M.P. Ltd.: [3]
Land and Building of ₹ 60,00,000 at ₹ 84,00,000; Plant and Machinery of ₹ 40,00,000 at ₹ 36,00,000.
The purchase consideration was ₹ 1,10,00,000. Payment was made by issuing a cheque in favour of M.P. Ltd. of
₹ 20,00,000 and remaining by issue of 8% Debentures of ₹ 100 each at a premium of 20%.
Record the necessary Journal entries for the above transactions in the books of Vinay Ltd.
OR
X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the
first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made. The forfeited shares were
reissued for ₹ 90 per share, ₹ 75 paid-up. Journalise the above.
20. The total capital of the firm of Seema, Muskan and Heena is ₹ 1,00,000 and the market rate of interest is 15%. [3]
The net profits for the last 3 years were ₹ 30,000; ₹ 36,000 and ₹ 42,000. Goodwill is to be valued at 2 year’s
purchase of the last 3 years’ super-profits. Calculate the goodwill of the firm.
21. K Ltd. took over the assets of ₹ 15,00,000 and liabilities of ₹ 5,00,000 of P Ltd. for a purchase consideration of ₹ [4]
13,68,500. ₹ 25,500 were paid by issuing a promissory note in favour of P Ltd. payable after two months and the
balance was paid by issue of equity shares of ₹ 100 each at a premium of 25%. Pass necessary Journal entries for
the above transactions in the books of K Ltd.
22. A, B and C were equal partners On 31st March 2019 their balance sheet stood as: [4]

Liabilities ₹ Assets ₹

Creditors 50,400 Cash 3,700

Reserve 12,000 Stock 20,100

Capital A /c: Debtors 62,600

A 40,000 Loan to A 10,000

B 25,000 Investments 16,000

C 15,000 Furniture 6,500

Building 23,500

Total 1,42,400 Total 1,42,400

The firm was dissolved on the above date on the following terms:
i. For the purpose of dissolution Investments were valued at ₹ 18,000 and A took over the investments at this
value,

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 ii. Fixed Assets realised ₹ 29,700 whereas Stock and Debtors realised ₹ 80,000.
iii. Expenses of Realisation amounted to ₹ 1,300.
iv. Creditors allowed a discount of ₹ 800.
v. One bill receivable for ₹ 1,500 under discount was dishonoured as the acceptor had become insolvent and
was unable to pay anything and hence the bill had to be met by the firm.
Prepare the Realisation Account, Cash Account and Partners' Capital Accounts showing how the accounts would
finally be settled among the partners
23. Riya Ltd. issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share payable [6]
as:

On Application ₹ 2 per share;

On Allotment ₹ 5 per share (including premium),

On First call ₹ 2 per share,

On Second and Final call ₹ 3 per share.

Applications were received for 60,000 shares. Allotment was made on pro-rata basis to the applicants for 48,000
shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due
on allotment. Raj to whom 1,600 shares were allotted failed to pay the allotment money and Suraj to whom
2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second
and final call was made. All the forfeited shares were reissued as fully paid-up @ ₹ 8 per share. Give necessary
Journal entries for the above transactions.
OR
Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of ₹ 10 each at a premium of ₹ 3 per share.
The amounts were payable as follows:
On application and allotment – ₹ 7 per share.
On first and final call – balance (including premium of ₹ 3)
Applications were received for 4,00,000 shares and allotment was made as follows:
i. To applicants for 80,000 shares – 80,000 shares.
ii. To applicants for 40,000 shares – nil
iii. Balance of the applicants were allotted shares on pro rata basis.
Excess money received with applications was adjusted towards sums due on first and final call.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was
allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares
were reissued at ₹ 7 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
24. 0, R and S were partners in a firm sharing profits in the ratio of 3:2:1. On 1st April, 2014 their balance sheet was [6]
as follows:
Balance Sheet
as on 1st April, 2014

Amount Amount
Liabilities Assets
(Rs) (Rs)

General Reserve 15,000 R's Current A/c 7,000

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Profit and Loss A/c 7,000; Land and Building 1,75,000

Creditors 80,000 Plant and Machinery 67,500

Bills Payable 45,000 Furniture 80,000

Capital A/cs Investments 36,500

O 1,75,000 Bills Receivable 17,000

R 1,50,000 Sundry Debtors 43,500

S 1,25,000 4,50,000 Stock 1,37,000

Current A/cs Bank 43,500

O 4, 000

S 6,000 10,000

6,07,000 6,07,000
======= =======

On the above date H was admitted on the following terms

i. H will bring Rs 50,000 as his capital and will get 1/6th share in the profits.
ii. He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs
90,000.
iii. The new profit sharing ratio will be 2: 2: 1: 1.
iv. A liability of Rs 7,004 will be created against bills receivables discounted.
v. The value of stock, furniture and investments is reduced by 20%, whereas the value of land and building and
plant and machinery will be appreciated by 20% and 10% respectively.
vi. The capital accounts of the partners will be adjusted on the basis of H’s capital through their current
accounts.
Prepare revaluation account and partners’ current accounts and capital accounts.
OR
A, B and C are partners sharing profits and losses in the ratio of . Following is their Balance Sheet as at
3 2 1
: :
6 6 6

31st March, 2023:

Liabilities ₹ Assets ₹

Creditors 52,000 Plant 2,50,000

Outstanding Expenses 10,000 Stock 1,50,000

Capitals: Debtors 80,000

A 2,00,000 Bank 70,000

B 1,60,000 Profit & Loss A/c 12,000

C 1,40,000 5,00,000

5,62,000 5,62,000

B retires on 1st April, 2023 and the following terms were agreed:
i. The Goodwill of the firm has been valued at ₹ 1,50,000.

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 ii. Plant and Machinery has been revalued at ₹ 3,00,000 and stock revalued at ₹ 1,20,000.
iii. A sum of ₹ 30,000 out of debtors was agreed to be bad and was to be written off.
iv. Liability for workmen’s compensation to the extent of ₹ 8,000 is to be brought into the books.
v. A and C will continue to carry on the business and shall share profits and losses equally in future.
vi. Amount payable to B shall remain in the business as loan carrying interest at 18% p.a.
You are required to:
a. give journal entries to give effect to the above, and
b. prepare the opening balance sheet of A and B at 1st April, 2023.
25. The Balance Sheet of Ram, Shyam, and Hari as at 31.3.2003 stood as follows: [6]
Balance Sheet
as at 31.3.2003

Liabilities Amt(Rs.) Assets Amt(Rs.)

Creditors 24,400 Cash 1,00,000

Bills Payable 90,000 Debtors 30,000

General Reserve 24,000 Less: Provision 1,600 28,400

Investment Fluctuation Reserve 2,000 Stock 4,000

Profit and Loss Account 3,000 Computers 9,000

Ram's Capital 51,000 Building 1,00,000

Shyam's Capital 40,000 Investments 30,000

Hari's Capital 40,000 Goodwill 3,000

2,74,400 2,74,400

Hari retired on 1.4.2003 and the following adjustments were agreed upon:
a. The building is appreciated by Rs 10,000.
b. Investments are valued 10% less than the book value.
c. All Debtors were good.
d. Stock be reduced to 93%.
e. Goodwill is valued at one year’s purchase of the average profit of the past three years. It was decided not to
show goodwill in the balance sheet of the reconstituted firm.
f. Hari shall be paid Rs 13,440 immediately and the balance in four equal yearly installments together with
interest @ 10% p.a.
g. New ratio of Ram and Shyam would be 2:1.
The profit for the year 2000-01 and 2001-02 were Rs 9,000 and Rs 6,000 respectively. Prepare Revaluation
Account, Partners’ Capital Accounts, Hari’s Loan Account (till it is paid off) and Balance Sheet as at 1.4.2003
(figure may be rounded off to nearest one rupee.)
26. Himanshu Ltd. issued on 1st July, 2022, 20,000, 7% Debentures of ₹ 100 each for subscription at 10% premium, [6]
payable ₹ 40 on application; ₹ 40 (including premium) on allotment and balance on first and final call. The
debentures were subscribed and allotted. The company has not made first and final call during the year ended
31st March 2023. Interest was payable on 31st March each year.

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 Pass the Journal entries for issue of debentures and interest for the year ended 31st March, 2023 and transfer the
interest to Statement of Profit & Loss.
Part B :- Analysis of Financial Statements
27. Who among the following is not an external user of financial statements analysis? [1]

a) Management b) Debentureholders

c) Creditors d) Shareholders
OR
A liability is classified as current when it satisfies the following conditions except:
A. It is due to be settled beyond 12 months
B. It is held for the purpose of being traded
C. It is expected to be settled in the company’s normal operating cycle
D. The company does not have an unconditional right to offer settlement of the liability for at least 12 months after
the reporting date

a) (C) b) (B)

c) (D) d) (A)
28. Ideal Liquid ratio is [1]

a) 2 : 1 b) 1 : 1

c) 1 : 2 d) 3 : 1
29. While calculating cash flow from operating activities which will be added: [1]

a) Increase in Creditors b) Increase in Trade Receivables

c) Increase in Inventory d) Decrease in Bills Payable

OR
Balance Sheet (Extract)

Particulars 31-03-2022 (₹) 31-03-2023 (₹)

EQUITY AND LIABILITIES

2,00,000 1,60,000
12% Debentures

Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March each year. Debentures were
redeemed on 30th September 2022. How much amount (related to above information) will be shown in Financing

Activity for Cash Flow Statement prepared on 31st March 2023?

a) Inflow ₹ 42,600 b) Outflow ₹ 64,000

c) Outflow ₹ 61,600 d) Outflow ₹ 40,000

30. Which of the following is not a Non-Cash Transaction? [1]

a) Issue of Bonus Shares b) Issue of Equity Shares for consideration

other than cash

c) Payment of Wages d) Depreciation

31. Show the following items in a Company’s Balance Sheet as at 31st March, 2017: [3]

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 Particulars ₹

Deferred Tax Assets 2,00,000

Loose Tools 1,20,000

Goods in Transit 5,00,000

Prepaid Expenses 15,000

Interest Accrued on Investments 10,000

32. From the following information, calculate Gross Profit Ratio: [3]

₹ ₹

Credit Sales 10,00,000 Decrease in Inventory 20,000

Purchases 6,00,000 Returns Outward 20,000

Carriage Inwards 20,000 Wages 1,00,000

Rate of Credit Sale to Cash Sale 4:1

33. From the following information obtained from the books of Vichar Ltd., prepare a Comparative Statement of [4]
Profit and Loss for the year ending 31st March, 2019:

Particulars 2018-19 2017-18

Revenue from operations 300% of cost of materials consumed 200% of cost of materials consumed

Cost of materials consumed ₹ 4,00,000 ₹ 2,00,000

Other expenses 20% of cost of materials consumed 20% of cost of materials consumed

Tax rate 50% 50%

OR
Prepare a Comparative Statement of Profit & Loss from the following:

Particulars 31.3.2023 31.3.2022

₹ ₹

Revenue from Operations 50,00,000 30,00,000

Finance Costs 30,00,000 27,00,000

Employee Benefit Expenses 4,00,000 3,00,000

Other Expenses 40,000 50,000

Income Tax 40% of Net Profit

34. From the following Balance Sheet of Shadow Converge Ltd. as at 31st March, 2023 and 31st March, 2022, [6]
calculate Cash from Operating Activities. Show your working clearly.

Particulars Note No 31.3.2023 31.3.2022

I. EQUITY AND LIABILITIES: ₹ ₹

(1) Shareholder’s Funds:

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 (a) Share Capital 7,00,000 5,00,000

(b) Reserve & Surplus 3,50,000 2,00,000

(2) Non Current Liabilities:

Long term Borrowings 50,000 1,00,000

(3) Current Liabilities:

(a) Trade Payables 1,22,000 1,05,000

(b) Short term Provisions (Provision for Tax) 50,000 30,000

TOTAL 12,72,000 9,35,000

II. ASSETS:

(1) Non-Current Assets:

(a) Property, Plant and Equipment and Intangible Assets:

(i) Property, Plant and Equipment 1 5,00,000 5,00,000

(ii) Intangible Assets 2 95,000 1,00,000

(b) Non-Current Investments 1,00,000 ---

(2) Current Assets:

(a) Inventory 1,30,000 55,000

(b) Trade Receivables 1,47,000 80,000

(c) Cash & Cash Equivalents 3,00,000 2,00,000

TOTAL 12,72,000 9,35,000

Notes to Accounts

31-3-2023 (₹) 31-3-2022 (₹)

1. Property, Plant and Equipment:

Machinery 2,80,000 2,00,000

Accumulated Depreciation (1,00,000) (80,000)

1,80,000 1,20,000

Equipment 3,20,000 3,80,000

5,00,000 5,00,000

2. Intangible Assets

Goodwill 95,000 1,00,000

Additional Information:
Machinery costing ₹ 80,000 (accumulated depreciation thereon ₹ 20,000) was sold at a loss of ₹ 18,000.

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