KENDRIYA VIDYALAYA SANGATHAN, R. O.

PATNA

ACCOUNTANCY FIRST PRE - BOARD EXAM 2024 CLASS 12

Set-B
Time Allowed : 3 Hours Maximum Marks : 80
General Instructions:
Read the following instructions carefully and follow them:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts- Part A and Part 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. Questions number 1 to 16 (Part A) and Questions number 27 to 30 (Part B)
are multiple choice questions. Each question carries 1 mark.
6. Questions number 17 to 20 (Part A), and Questions number 31 and 32 (Part
B) are short answer type questions. Each question carries 3 marks.
7. Questions number from 21 ,22 (Part A) and Question number33 (Part B) are
Long answers Type - I questions. Each question carries 4 marks.
8. Questions number from 23 to 26 (Part A) and Question number34 (Part B) are
Long answers Type - II questions. Each question carries 6 marks.
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 Vijay and Ajay are partners in a firm. The partnership agreement provides for [1]
interest on drawings @ 12% per annum. Which of the following accounts will be
debited to transfer interest on drawings to Profit and Loss Appropriation A/c?
a) Partners’ Current accounts b) Bank Account
c) Partners’ Capital accounts d) Interest on Drawings account
2 What journal entry will be recorded to settle a retired partner’s account while paying [1]
cash to retiring partner (for his due amount) at the time of retirement?
a) Cash A/c ... Dr. b) Executor’s A/c ... Dr.
To Retiring partner’s capital A/c To Cash A/c

c) Retiring Partner’s capital A/c ... Dr. d) Retiring Partner’s capital A/c ... Dr.
(with the amount to be paid) To cash A/c
To Cash A/c

3 A Company invited applications for 1,00,000 shares and it received applications for [1]
1,50,000 shares. Applications for 30,000 shares were rejected and the remaining
 were allotted shares on a pro - rata basis. How many shares an applicant for 3,000
shares will be allotted?
a) 2,500 Shares b) 2,000 Shares c) 4,500 Shares d) 3,600 Shares
OR
Mishra Ltd. issued 2,50,000 Equity Shares of₹ 10 each at a premium of ₹ 3 each
payable as ₹ 7 on Application & Allotment (including premium) and balance on First
and final call. Applications were received for 3,50,000 shares and company allotted
them 2,50,000 shares. Excess money was applied towards Call. Last call on 1,000
shares not received and these shares were forfeited.
Which of the following is not part of the above situation?
a) Under Subscription b) Over - subscription
c) Pro - rata Allotment d) Forfeiture of Shares
4 Securities Premium Reserve can be utilised for: [1]
a) To Pay the dividend to equity share holders
b) To write off the preliminary expense
c) To create general reserve
d) To pay direct expenses
OR
Arrange the following sentences in sequence:
1. Receiving calls amount
2. Receiving applications
3. Issuing prospectus
4. Allotment of shares
a) ii, iii, iv, i b) iii, iv, ii, i c) iii, ii, iv,i d) i, ii, iii, iv
5 Sunbeam Limited issued 4,000, 6% Debentures of₹ 100 each at ₹ 95 per [1]
debenture. 6% Debentures account will be credited by:
a) ₹ 4,00,000 b) ₹ 3,80,000 c) ₹ 20,000 d) ₹ 4,40,000
6 Assertion (A): Aman and Vikas are partners sharing profits and losses in the ratio [1]
of 3:2. They do not have Partnership Deed. At the end of the year, Vikas
demanded interest on capital @ 10 p.a.
Reason (R): In the absence of Partnership Deed, interest on capital is not allowed.
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.
7 Assertion (A): At the time of retirement of a partner, besides the Retiring Partner, [1]
if a continuing partner also sacrifices his profit share, he along with the retiring
partner will get share in firm’s goodwill equal to the profit share sacrificed.
Reason (R): Goodwill is paid by the Gaining Partners to the Sacrificing Partners for
sacrificing their profit share.
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.
8 Assertion (A): BlueFlowers Ltd. had issued 10,000, Equity Shares of ₹ 10 each. It [1]
received the nominal (face) value of the shares except First & Final Call of ₹ 3 per
share on 1,000 shares. These 1,000 Equity Shares will be shown as Subscribed
but not fully paid - up under Subscribed Capital .
Reason (R): The company has not received ₹ 3 per share on 1,000 Equity Shares.
Hence, these shares are not fully paid - up. They will be shown as Subscribed but
not fully paid - up under Subscribed Capital .
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.
9 While transferring assets to realisation account ________ is omitted to be [1]
transferred.
a) Goodwill b) Investments c) Patents d) Cash
OR
Section 48 of the Indian Partnership Act, 1932 deals with the settlement of
accounts at the time of ________.
a) Retirement of a partner b) Change in profit sharing ratio
c) Death of a partner d) Dissolution
10 Statement I: Issue of Debentures will result in inflow of cash. [1]
Statement II: Issue of Debentures to the vendors for purchase of machinery will
result in outflow of cash.
Choose the correct option from the following:
a) Statement I is incorrect and Statement II is correct.
b) Both statements are correct.
c) Both statements are incorrect.
d) Statement I is correct and Statement II is incorrect.
11 Which of the following statement is not correct? [1]
a) Debentures can be issued at discount
b) A Debenture holder is a lender
c) Debenture is considered as external equity
d) Debentures are completely unsafe
12 Which of the following statement is correct? [1]
1. Goodwill is a fictitious asset.
2. Goodwill is a current asset.
3. Goodwill is a tangibleasset.
4. Goodwill is an intangible asset.
a) Option (c) b) Option (d) c) Option (b) d) Option (a)
13 A, B and C are partners sharing profits in the ratio of capitals (old 5:3:2 and new [1]
2:3:5). Their capital after adjustment in the new capital ratio is Rs 20,000, Rs
30000, Rs 50000. Who will bring the amount of actual cash for adjustment?
a) A and B b) C c) B d) A
OR
P, Q and R who are presently sharing profits and losses in the ratio 5:3:2 decide to
 share future profits and losses in the ratio of 2:3:5 with effect from 1st April 2012.
Balance sheet show creditors amounted Rs 2,00,000. If it is decided that an item of
Rs10,000 included in sundry creditors is not likely to be claimed. What will be the
effect of this decision?
a) Increase in the amount of creditors b) Decrease in the amount of Debtors
c) No change in the amount of Debtors d) Decrease in the amount of creditors
14 L and M are partners in a firm profit sharing ratio are 7:3 and N is admitted as a [1]
3 2 1
new partner for share which he acquires from L and from M. N brings in ₹
7 7 7
40,000 as capital and ₹ 15,000 as his share of goodwill. How much amount will be
credited to L:
a) ₹ 20,000 b) ₹ 25,000 c) ₹ 15,000 d) ₹ 10,000
15 Directors of Varun Ltd forfeited 200 shares of₹ 20 each, ₹ 15 per share called upon [1]
which ₹ 10 per share had been paid. Directors reissued all the forfeited shares to B
as ₹ 15 per share paid up for payment of ₹ 10 each. State the minimum amount at
which these shares can be reissued.
a) Rs.15 b) Rs.55 c) Rs.10 d) Rs.20
OR
X Limited forfeited 1,000 shares of 10 each for the non - payment of the final call of
Rs.2 per share. These shares were reissued @ Rs.8 per share fully paid up. Find
out the amount of capital reserve.
a) Capital Reserve ₹ 4,000 b) Capital Reserve ₹ 6,000
c) Capital Reserve ₹ 8,000 d) Capital Reserve ₹ 10,000
16 Vinod Limited offered 20,000 debentures @ 100 each at a premium of 10%. The [1]
issue was oversubscribed by 3 times. The company made full allotment to 4,000
applicants and pro - rata allotment made to the 36,000 applicants and remaining
applications are rejected. How much amount is to be refunded by the company?
a) 22,00,000 b) 33,00,000 c) 44,00,000 d) 18,00,000
17 P, Q and R are partners sharing profits equally. They decided that in future R will [3]
1
get share in profits. On the day of change, firm’s Goodwill is valued at ₹ 42,000.
7
Give Journal Entries arising on account of change in profit sharing ratio.
OR
Aman, Bobby and Chandani were partners in a firm sharing profits and losses in
the ratio of 5 : 4 : 1. From 1 April, 2022 they decided to share profits equally. The
revaluation of assets and re - assessment of liabilities resulted in a loss of ₹ 5,000.
The goodwill of the firm on its reconstitution was valued at ₹ 1,20,000. The firm had
a balance of ₹ 20,000 in the General Reserve.
Showing your workings clearly pass necessary journal entries on the reconstitution
of the firm.
18 Kaushal, Bhuvan and Harsh were partners in a firm. Harsh died on 12th June, [3]
2022. His share of profit from the closure of last accounting year till the date of his
death was to be calculated on the basis of an average of four completed years of
profit before death. Profits for the year ended 31st March, 2018, 2019, 2020 & 2021
 were 14,000, 16,000, (15,000), & 25,000 respectively.
Calculate Harsh’s share of profit till his death and past necessary journal entry for
the following cases:
1. profit sharing ratio of remaining partners does not change, and
2. profit sharing ratio of remaining partners changes and new ratio being 2 : 1.
19 Pass the necessary journal entries for issue of 1,000, 7% debentures of Rs.100 [3]
each in the following cases
1. Issued at 5% premium, redeemable at a premium of 10%.
2. Issued at a discount of 5%, redeemable at par.
20 Complete the following journal entries: [3]
Journal Entries in the books of Sundram Ltd.
Date Particulars LF Dr.(₹) Cr. ( ₹)

Furniture A/c Dr. 3,00,000

To Ravindram Ltd. 3,00,000
(Being furniture purchased)

................................................. Dr. ----

To ................................................ ----
(Being a part payment made to Ravindram
Ltd. by an issue of a promissory note of Rs.
1,00,000)

................................................ Dr. —---

To............................................... —----
To............................................... —----
(Being the balance of payment made by issue
of 16,000 equity shares of Rs. 10 each at a
premium of 25%)

21 Yogesh Ltd. issued 40,000, 9% debentures of₹ 100 each on April 1, 2022 at a [4]
discount of 10%, redeemable at a premium of 10%.
Assuming that the interest was paid half yearly on September 30 and March 31,
give Journal entries relating to debenture interest for the half year ended 31st
March, 2023.
22 Ram, Raja and Rohit were partners sharing profits in the ratio of 3 : 3 : 2. The [4]
partnership deed provided for the following
1. Salary of ₹ 2,000 per quarter to Ram and Raja.
2. Rohit was entitled to a commission of₹ 8,000.
3. Raja was guaranteed a profit of₹ 50,000 per annum.
The profit of the firm for the year ended 31st March, 2023 was ₹ 1,50,000 which
was distributed among Ram, Raja and Rohit in the ratio 2: 2: 1, without taking into
consideration the provisions of partnership deed. Pass necessary rectifying entry
for the above adjustments in the books of the firm. Show your workings clearly.
23 Harshit and Naval are partners sharing profits in the ratio of 3 : 2. Their Balance [6]
 Sheet as at 31st March, 2023 is as follows:

Liabilities (₹) Assets (₹)

Capital A/cs: Plant and Machinery 1,80,000

Harshit 1,00,000 Furniture 30,000

Naval 1,00,000 2,00,000 Computer 10,000

Current A/cs: Stock 40,000

Harshit 70,000 Debtors 50,000

Naval 50,000 1,20,000 Bills Receivable 10,000

Creditors 40,000 Cash 10,000

Bills Payable 10,000 Bank 40,000

3,70,000 3,70,000

1
Naveen is admitted as a partner for th share on 1st April, 2023 on the following
4
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 31st 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 Mohan, Vinay and Nitya were partners in a firm sharing profits and losses in the [6]
1 1 1
proportion of , and respectively. On 31st March 2023, their Balance Sheet was
2 3 6
as follows:

Liabilities (₹) Assets (₹)

Creditors 48,000 Cash at Bank 31,000

Employee's 1,70,000 Bills Receivable 54,000

Provident Fund
Contingency 30,000 Book Debts 63,000
Reserve

Capitals: Less: Provision for 2,000 61,000

Doubtful Debts

Mohan 1,20,000 Plant and 1,20,000

Machinery

Vinay 1,00,000 Land and Building 2,92,000

Nitya 90,000 3,10,000

5,58,000 5,58,000
Mohan retired on the above date and it was agreed that:
1. Plant and machinery will be depreciated by 5%.
2. An old computer previously written off was sold for₹ 4,000.
3. Bad debts amounting to₹ 3,000 will be written off and a provision of 5% on
debtors for bad and doubtful debts will be maintained.
4. Goodwill of the firm was valued at ₹ 1,80,000 and Mohan’s share of the
same was credited in his account by debiting Vinay’s and Nitya’s accounts.
5. The capital of the new firm was to be fixed at₹ 90,000 and necessary
adjustments were to be made by bringing in or paying off cash as the case
may be.
6. Vinay and Nitya will share future profits in the ratio of 3 : 2.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of
the reconstituted firm.
OR
Azhar, Sumit and Robit were partners in a firm sharing profits and losses in the
ratio of 3:1:1. Their Balance Sheet as at 31st March, 2023, was as follows:
Balance Sheet of Azhar, Sumit and Robit as at 31 st March, 2023:

Liabilities (₹) Assets (₹)

Creditors 90,000 Bank 20,000

General Reserve 60,000 Stock 40,000

Capitals: Debtors 1,50,000

Azhar 60,000 Fixed Assets 60,000

Sumit 40,000

Robit 20,000

2,70,000 2,70,000
 Robit died on 30 June, 2023. According to the Partnership deed, Robit’s legal
representatives were entitled to:
1. Balance in his Capital Account.
2. His share of the General Reserve.
3. Interest on capital @ 10% p.a.
4. His share of goodwill. Goodwill of the firm was valued on the basis of thrice
the average of the past four years’ profits.
5. His share in profits up to the date of death on the basis of the profit for the
last year.
Profit for the previous years were: 2019 - 20: (3,000), 2020 - 21: 28,000, 2021 - 22:
16,000, 2022 - 23: 15,000.
Prepare Robit’s Capital Account to be rendered to his legal representatives.
25 A, B and C are partners sharing profits in the ratio of 5: 3: 2. They decided to [6]
dissolve the firm whose Balance Sheet is given below:
Balance Sheet
as at ............

Liabilities (₹) Assets (₹)

A's Capital 2,00,000 Bank 70,000

B's Capital 1,50,000 Debtors 50,000

C's Capital 1,50,000 Stock 60,000

A's Current A/c 30,000 Furniture 25,000

B's Current A/c 20,000 Patents 35,000

Profit and Loss Account 50,000 Machinery 1,00,000

Trade Creditors 70,000 Building 3,20,000

C's Current A/c 10,000

6,70,000 6,70,000
Following transactions took place at the time of dissolution:
1. Realisation expenses were to be fully borne by A, for which he is to get a
credit of Rs 10,000. Actual realisation expenses paid out of the firm’s Bank
Account amounted to Rs. 12,000.
2. B took over stock for Rs. 55,000 and C took over Buildings for Rs. 4,00,000.
3. Other assets realised as follows:
Debtors Rs. 48,000; Furniture Rs. 17,000 and Machinery Rs. 80,000.
4. Patents didn’t realise anything and trade creditors were settled in full by
paying them Rs. 65,000.
5. Accounts of Partners were settled after realising assets and paying outside
liabilities.
 Prepare Realisation Account, Partners’ Current Account, Capital Account and Bank
Account.
26 DP Shah Company Ltd made an issue of 1,00,000 equity shares of Rs.10 each at a [6]
premium of 30% payable as follows
On application — Rs.3.50 per share
On allotment — Rs. 6.50 per share
On first and final call — Balance
Applications were received for 2,00,000 equity shares and the directors made pro -
rata allotment. Harsh who had applied for 1,600 shares did not pay the allotment
and final call money. With the result his shares were forfeited. Later on 60% of the
forfeited shares were reissued at Rs.8 per share fully paid - up. Pass necessary
journal entries for the mentioned transactions in the books of the company.
OR
Give journal entries for forfeiture and re - issue of shares:
1. A Ltd. forfeited 1,000 shares of₹ 10 each, ₹ 7 called up, issued at a premium
of 20% (to be paid at the time of allotment) for non - payment of a first call of
₹ 2 per share. Out of these, 600 shares were re - issued as ₹ 7 paid up for ₹
4 per share.
2. B Ltd. forfeited 1,000 shares of₹ 10 each, ₹ 7 called up, issued at a premium
of 20% (to be paid at the time of allotment) for non - payment of allotment
money of ₹ 4 per share (including premium) and first call of ₹ 2 per share.
Out of these, 600 shares were re - issued as fully paid in such a way that ₹
900 were transferred to capital reserve.
PART B
(Analysis of Financial Statements)
27 A firm’s current ratio is 3.5 : 2. Its current liabilities are₹ 80,000. Its working capital [1]
will be:
a) ₹ 1,60,000 b) ₹ 2,80,000 c) ₹ 60,000 d) ₹ 1,20,000
OR
Gross profit ratio of a company was 25%. Its credit revenue from operations was₹
16,00,000 and its cash revenue from operations was 20% of the total revenue from
operations. If the indirect expenses of the company were ₹ 50,000, its net profit
ratio will be:
a) 22.5% b) 20% c) 25% d) 27.5%
28 Assertion (A): Financial statements are the end products of the accounting [1]
process which reveal the financial results of a specified period and financial
position as on a particular date.
Reason (R): The basic objective of these statements is to provide the information
required for decision - making by the management as well as other outsiders who
are interested in the affairs of the undertaking, as per Section 129 Schedule III to
the Companies Act, 2013 every year.
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.
29 Dividend paid by a non - financial company is shown as: [1]
a) Cash and Cash Equivalent b) Investing Activities
c) Operating Activities d) Financing Activities
OR
Loss on sale of Marketable Securities debited to Statement of Profit and Loss will
a) be added to net profit before tax and extraordinary items and reduced from Cash
and Cash Equivalents.
b) be deducted from Net Profit before Tax and Extraordinary Items and added to
Cash and Cash Equivalents.
c) not be adjusted.
d) deducted only from cash and cash equivalents
30 Dividend Received is considered as operating activity when ________. [1]
a) Received by a manufacturing company b) Received by a Trading Company
c) Received by any company d) Received by a finance company
31 Read the text carefully and answer the questions: [3]

Amount (₹)

Plant & Machinery 10,00,000

Land & Building 6,00,000

Motor Car 3,70,000

Furniture 1,50,000

Stock 4,50,000

Debtors 90,000

Cash at Bank 3,40,000

Non-Current Liabilities 10,00,000

Current Liabilities 6,20,000

1. Calculate Proprietary Ratio?

a) 0.51 b) 0.46 c) 0.67 d) 0.33
2. How much is the Total Assets?
a) ₹ 21,00,000 b) ₹ 30,00,000 c) ₹ 26,60,000 d) ₹ 25,30,000
3. Proprietary ratio indicates the proportion of total assets funded by ________.
a) Creditors b) Borrowed funds c) Total debts d) Share Holders funds
32 Under what heads and sub - heads, will the following items appear in the balance [3]
sheet of a company as per Schedule III, Part I of the Companies Act, 2013.
1. Stores and spares
2. Proposed dividend
3. Computer software
OR
Operating Cycle and the period when payment is received is given below. How will
you classify the asset?
Particulars (i) (ii) (iii) (iv) (v) (vi)

Operating Cycle (Months) 10 10 10 15 15 20

Expected Period when payment is received 9 12 14 14 18 18

(Months)

33 Prepare Comparative Statement of Profit and Loss from the following : [4]

Particulars 31st March 2024(₹) 31st March 2023(₹)

Revenue from Operations 12,50,000 10,00,000

Cost of Materials 6,50,000 10,00,000

Consumed

Other Expenses 60,000 10,00,000

Interest on Investments @₹ 30,000 and Taxes Payable @ 50%.

OR
Prepare a Common Size Statement of Profit & Loss from the following and interpret
the same: STATEMENT OF PROFIT & LOSS

Note 31 st March 2023 31 st March 2022

No. (₹) (₹)

Revenue from Operations 25,00,000 20,00,000

Other Income 1,00,000 1,00,000

Cost of Materials Consumed 17,00,000 14,00,000

Finance Costs 2,00,000 1,60,000

Other Expenses 1,00,000 1,40,000

34 From the following particulars of BhanuGas Limited, calculate Cash Flows from [6]
Investing Activities. Also, show the workings clearly preparing the ledger accounts.
 31.3.2022 (₹) 31.3.2022 (₹)

Goodwill 1,00,000 3,00,000

Patents 2,80,000 1,60,000

Machinery 10,20,000 12,40,000

10% Long term 60,000 1,60,000

Investment

Investment in Land 1,00,000 1,00,000

Shares of Amartax Ltd. 1,00,000 1,00,000

Additional Information :
1. Patents were written off to the extent of₹ 40,000 and some Patents were
sold at a profit of ₹ 20,000.
2. A Machine costing₹ 1,40,000 (Depreciation provided thereon ₹ 60,000) was
sold for ₹ 50,000. Depreciation charged during the year was ₹ 1,40,000.
3. On March 31st, 2023, 10% Investments were purchased for₹ 1,80,000 and
someInvestments were sold at a profit of ₹ 20,000. Interest on Investment
was received on March 31st, 2023.
4. Amartax Ltd. paid Dividend @ 10% on its shares.
5. A plot of Land was purchased out of surplus funds for investment purposes
and let out for commercial use and rent received₹ 30,000.