CBSE Accountancy Class 12 Sample Paper 3 Page 1

Sample Paper 3
Accountancy (055)
Class XII Session 2024-25
Time : 3 Hours Max. 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, 31 and 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. Power Marketing Limited bought business of Vaishnavi Marketing Limited and purchase consideration is
to be decided by net asset value method. Total assets and liabilities which were taken over were `22,40,000
and `4,00,000 respectively. `4,00,000 was paid in cash and for the balance amount, 6% debentures of `100
each were issued at a premium of 20%. Identify the number of debentures issued
(a) 4,000 debentures
(b) 22,400 debentures
(c) 12,000 debentures
(d) 20,000 debentures

2. Assertion (A): Gaining ratio is the ratio in which one or more partners gain some portion of other partners’
share of profit.
Reason (R): New ratio plus sacrificing ratio is gaining ratio.
Options:
(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.

3. If a partner withdraws consistently at the end of each quarter for a year, average period will be_____
(a) 6.5 (b) 7.5
(c) 4.5 (d) 5.5

O
On 1st April, 2020 P’s capital was `10,000. On 1st October, 2020, he introduces additional capital of
`5,000. Interest on capital @ 6% p.a. on 31st March, 2021 will be
(a) `900 (b) `525
(c) `750 (d) `450
Page 2 Sample Paper 3 CBSE Accountancy Class 12

4. Jaswant Private Limited invited applications for issuing 1,000, 12% debentures of `100 each at a discount
of 5%. These debentures were redeemable after three years at par. Applications for 1,200 debentures were
received. Pro-rata allotment was made to all the applicants. Journalise.

(a) Bank A/c Dr 1,00,000

12% Debentures A/c Dr 19,000
To Debenture Application and Allotment A/c 1,14,000
To Discount on Issue of Debentures A/c 5,000
(b) Bank A/c Dr 1,14,000
To Debenture Application and Allotment A/c 1,14,000
(c) Debenture Application and Allotment A/c Dr 1,14,000
Discount on Issue of Debentures A/c Dr 5,000
To 12% Debentures A/c 1,00,000
To Bank A/c 19,000
(d) Both (b) and (c)

O
Ishaan and Aarav were partners sharing profits and losses in the ratio of 7:3. Their balance sheet shows
machinery at `1,50,000. They admitted Vihaan as a new partner for 1/5th share. In additional information,
it is given that the machinery is undervalued by 25%. The share of gain/loss of revaluation of Aarav is
______ and current value of the machinery shown in the new balance sheet is ______.
(a) Gain `15,000, Value `2,00,000 (b) Gain `12,500, Value `2,00,000
(c) Loss `20,000, Value `1,90,000 (d) Gain `10,000, Value `1,80,000

5. The profit earned by a firm after retaining `90,000 to its reserve was `4,50,000. The firm had total tangible
assets worth `60,00,000 and outside liabilities `18,00,000. The value of the goodwill as per capitalization of
average profit method was `3,00,000. Determine the rate of Normal Rate of Return (NRR).
(a) 10% (b) 12%
(c) 8% (d) 15%

6. Anil applied for 1,200 shares, allotted in the ratio of 2:1. He paid an application money of `3 per share but
did not pay the allotment money of `6 per share on the 600 shares allotted. The first and final call of `1
per share was not yet made. His shares were forfeited. The journal entry is:
Share Capital A/c Dr. X
To Share Forfeited A/c Y
To Share Allotment A/c Z
Here X, Y, and Z are:
(a) `5,400; `3,600; `1,800 (b) `6,000; `3,600; `2,400
(c) `4,800; `3,000; `1,800 (d) `5,400; `3,000; `2,400

O
If vendors are issued fully paid shares of `62,500 in consideration of net assets of `75,000, the balance
(a) `12,500 will be credited to goodwill account
(b) `12,500 will be credited to statement of profit and loss
(c) `12,500 will be credited to capital reserve account
(d) `12,500 will be credited to securities premium reserve account

7. On 1st July 2020, a company raised a loan of `75,00,000 secured against its warehouse. The loan was
backed by issuing 30,000, 12% Debentures of `100 each. On 30th June 2024, the company failed to repay
the loan, and the warehouse was sold for `50,00,000. The debentures were sold on 1st August 2024 to settle
the remaining dues. From which date would the interest on debentures start accruing?
(a) 1st July 2020 (b) 30th June 2024
(c) 1st July 2024 (d) 1st August 2024
CBSE Accountancy Class 12 Sample Paper 3 Page 3

8. Shyam, a partner, took over Stock worth `75,000 against his loan of `80,000. The Stock was already
transferred to the Realisation Account.
How will it affect the Realisation Account?

(a) Realisation Account will be credited by (b) Realisation Account will be credited by `5,000
`80,000
(c) Realisation Account will be credited by (d) No effect on Realisation Account
`75,000

O
Ajay, Raj, and Sameer were partners sharing profits and losses in the ratio of 2:2:1. Their books showed
Workmen Compensation Reserve of `90,000. Workmen Claim amounted to `70,000. How will it affect the
books of accounts at the time of dissolution of the firm?
(a) `20,000 will be distributed amongst partners.
(b) `90,000 will be credited to the Realisation Account, and `70,000 will be paid off.
(c) `70,000 will be credited to the Realisation Account, and `20,000 will be distributed amongst partners.
(d) `70,000 will be credited to the Realisation Account and paid off.

9. Arjun, Bhavna, and Chitra are partners sharing profits and losses in the ratio of 4:3:2. Their fixed capital
balances are `8,00,000, `6,00,000, and `4,00,000, respectively. For the year ended March 31, 2024, profits of
`88,000 were distributed without providing for Interest on Capital @ 10% p.a., as per the partnership deed.
While passing an adjustment entry, which of the following is correct?
(a) Chitra will be credited by `4,000
(b) Chitra will be credited by `3,200
(c) Chitra will not require any adjustment
(d) Chitra will be debited by `4,000

10. Following amounts were payable on issue of shares by a company `3 on application, `3 on allotment, `2 on
first call and `2 on final call. Jairaj holding 250 shares paid only application and allotment money whereas
Viraj holding 200 shares did not pay final call. Amount of calls-in-arrear will be
(a) `900 (b) `3,100
(c) `1,900 (d) `1,400

11. Tarun and Arun are partners sharing profits in the ratio of 10 : 2. Ankit is admitted and the new profit
sharing ratio is now 10 : 6 : 4. At the date of admission, general reserve appears in the books at ` 48,000.
Arun’s share in the reserve will be
(a) ` 40,000 (b) ` 14,400
(c) ` 8,000 (d) None of these

12. Shares issued as sweat equity:

(i) Are issued to employees or directors.
(ii) Can be issued for providing intellectual property rights or value addition.
(iii) Must always be issued at par.
Which of the following is correct?
(a) Only (i) is correct. (b) Both (i) and (ii) are correct.
(c) All are correct. (d) Only (iii) is correct.

13. 5,000 shares allotted to Mr. Rohan, on which `100 each was called up and `80 paid, were forfeited and
reissued for `90 each as `100 paid-up. What amount will be transferred to the Capital Reserve Account?
(a) `3,50,000 (b) `90,000
(c) `1,50,000 (d) `2,00,000
Page 4 Sample Paper 3 CBSE Accountancy Class 12

14. Rupa Publishing Co. purchased a running business from Unnati Publishing Co. for a sum of `60,00,000.
Company received from vendor these assets and liabilities in this running business.
Plant and machinery `40,00,000; furniture `5,00,000; debtors `8,00,000; land and building `20,00,000 and
creditors `3,00,000. What will be the amount of goodwill or capital reserve, as per the given information?
(a) Goodwill `3,00,000 (b) Capital Reserve `3,00,000
(c) Goodwill `10,00,000 (d) Capital Reserve `10,00,000

15. Kunal, Ramesh, and Deepak were partners sharing profits and losses in the ratio of 4:3:3. Their capital
balances as on March 31, 2024, were `8,00,000, `6,00,000, and `4,00,000, respectively. On the same date,
they admitted Arjun as a new partner for a 25% share. Arjun was to bring `1,50,000 for his share of
goodwill and 1/4 of the combined capital of all the partners of the new firm. What will be the amount of
capital brought in by Arjun on his admission as a new partner?
(a) `6,50,000 (b) `5,50,000
(c) `6,00,000 (d) `5,00,000
O
X, Y, and Z were partners sharing profits and losses in the ratio of 5:4:3. Z passed away on February 1,
2024, and the total amount payable to Z’s executors was `18,00,000. The firm agreed to pay `5,00,000
immediately, and the balance was to be paid in three equal annual installments along with interest at 10%
p.a. Calculate the total interest credited to Z’s executors’ account for the year ended March 31, 2024.
(a) `45,000 (b) `21,667
(c) `55,000 (d) `40,000

16. Calvin, Justin and Devin are partners in a firm sharing profits equally. With effect from 1st April, 2021,
they decided to share profits in the ratio 3 : 2 : 1. In adjustment entry, what will be the treatment and
amount for Justin if goodwill of firm is ` 5,000?
(a) Credit ` 5,000 (b) Debit ` 10,000
(c) Debit ` 5,000 (d) No treatment

17. Harish and Pratham were partners sharing profits and losses in the ratio of 3 : 1. Mukesh was admitted
into partnership on 1st April, 2022 for 1/3rd share in profits. Mukesh brought in `45,000 as goodwill for
her 1/3rd share in profits which was entirely credited to Harish’s capital account. On the day of admission
,Pratham also compensated `15,000 to Harish for a share of profit sacrificed by Harish in favour of
Pratham. Following journal entries were passed :

Date Particulars L.F. Dr. (`) Cr. (`)

2022 Cash/Bank A/c Dr. 45,000
April 1 To Premium for Goodwill A/c 45,000
(Being Premium for Goodwill Brought in by Mukesh)
2022 Premium for Goodwill A/c Dr. 45,000
April 1 Pratham’s Capital A/c Dr. 15,000
To Harish’s Capital A/c 60,000
(Being entry for goodwill treatment passed)
Find the new ratio of Harish, Pratham and Mukesh.

18. RK Machines Limited took over Plant and Machinery of Altech Machine Limited at an agreed price of
`1,90,000 and payment was made by the issue of 9% Debentures of `100 each issued at a premium of 10%,
fraction, if any, is paid in cash. Pass necessary journal entries for the above in the books of RK Machines
Limited.
O
Pass journal entries at the time of issued of debentures.
(i) 1,300, 6% debentures of `100 each issued at a premium of `20 per debenture redeemable at a premium
of `35 per debenture.
(ii) 900, 6% debentures of `100 each issued at a discount of `10 per debenture redeemable at 120%.
CBSE Accountancy Class 12 Sample Paper 3 Page 5

19. Calculate the value of goodwill valued at two years purchase of the average profit of the past four years.
The profits for the past four years of the firm run by Rajkumar and Ashish are:

Year Profit (`) Adjustment to be made

1. 57,000 Two items ignored to be accounted for:
Outstanding expenses `3,000
Accrued Interest earned `2,000
2. 74,000 ––
3. 92,000 After including an abnormal gain of `3,000
4. 1,16,000 Personal insurance premium `18,000 paid for partner wrongly
debited to firm’s account.
Pass journal entry for treatment of goodwill on Neel’s admission into the firm for 1/4th share of profit,
assuming he did not bring any premium for goodwill. Rajkumar and Ashish shared profits in ratio 3 : 2.

O
Neel and Bhuvnesh are partners sharing profits in the ratio 2:1. They admit Pratham for 1/4th share of
profit with a minimum guaranteed amount of `20,000. Any deficit will be borne equally. The profits earned
by the firm at the end of the financial year amounted to `64,000.
Pass necessary journal entries for the above.

20. Blume Foods Limited registered with capital of `90,00,000 divided into 90,000 equity shares of `100 each.
The company issued prospectus inviting applications for 50,000 equity shares of `100 each payable as `20
on application, `30 on allotment, `20 on first call and balance on second call. Applications were received for
40,000 shares. Rohit to whom 1600 shares were allotted failed to pay final call money and these shares were
forfeited. Of the forfeited shares, 600 shares were reissued to Daksh, credited as fully paid for `90 per share.
(i) Pass journal entries for forfeiture and reissue of shares.
(ii) What amount of shares forfeiture Account will be shown in the Balance Sheet?
(iii) What amount will be shown under the head Shareholders’ Funds in the Balance Sheet?


Ans :
(i)

Journal of Bliss Products Ltd.

Date Particulars L.F. Dr. (`) Cr. (`)

(a) Share Capital A/c Dr. 1,60,000
To Share Forfeiture A/c 1,12,000
To Share Second and Final Call A/c 48,000
(Being 1,600 shares forfeited for non-payment of final call money)
(b) Bank A/c Dr. 54,000
Share Forfeiture A/c Dr. 6,000
To Share Capital A/c 60,000
(Being 600 forfeited shares reissued @ `90 fully paid up)
(c) Share Forfeiture A/c Dr. 3,600
To Capital Reserve A/c 3,600
(Being gain on forfeiture transferred to capital reserve)
(ii) `70,000 i.e., 1,000 (s) # `70
(iii) [40,000 (s) – 1,600 (s) + 600(s)] # `100 + `70,000 (forfeited amount) = `39,70,000
Page 6 Sample Paper 3 CBSE Accountancy Class 12

21. Toolnex Tool Limited issued 50,000; 11% debentures of `100 each payable `40 on Application and Allotment,
`30 on First call and `30 on Second and Final call.
All debentures were subscribed for by the public and duly allotted.
When the first call was made one debentures holder holding 250 debentures failed to pay the call money
whereas another debentures holder holding 1,200 debentures paid the entire balance along with the first
call. The company maintains Calls-in-Arrears and Calls-in-Advance A/c.
Pass necessary journal entries for both the calls.

22. Amar, Bharat and Satish are partners of the firm Agrawal Sweets. Their capitals as on 1st April, 2021 were
`90,000; `70,000 and `50,000 respectively. Partnership deed states that partners are entitled to:
(a) Interest on Capital @ 10% p.a.
(b) Each partner has a right to withdraw up to `6,000 p.a. for personal use. Drawings in excess of this
limit will be charged interest @ 12% p.a.
(c) Satish will get a commission of 5% of the net profit.
During the year 2021-2022, firm earned a profit of `51,300. Amar, Bharat and Satish’s total annual
drawings were `12,000; `8,000 and `5,000 respectively. Prepare Profit and Loss Appropriation Account.

23. Jagdamba Fabric Limited invited applications for 1,00,000 equity shares of `10 each issued at 20% premium
per share. The amount were payable as follows:
On Application `4.
On Allotment `5 per share. (including premium)
On First & Final call `3 per share.
Applications for 2,30,000 shares were received. Allotment was made as under:
Application Allotment
20,000 Nil
1,50,000 50,000
60,000 50,000
Excess application money to be adjusted against allotment and remaining excess money if any to be
refunded. All money were duly received except:
(a) Mahesh to whom 500 shares were allotted in the group applying for 1,50,000 shares did not pay any
amount after application.
(b) Kishore, who applied for 1,200 shares from the group applying for 60,000 shares failed to pay the first
and final call.
All shares on which payments were overdue were forfeited after the final call was made.
50% of the forfeited shares were re-issued @ `9 per share fully paid.
Pass necessary Journal entries for the above transaction in the books of Rajesh Limited.

O
Rani Sati Cloths Limited issued a prospectus inviting applications for 50,000 equity shares of `10 each at
a premium of
`4 per share payable as follows:
On Application `5 (including premium `2)
On Allotment `5 (including premium `2)
On First and Final Call `4
Applications were received for 90,000 shares and prorata allotment was made to applicants of 75,000 shares,
the remaining applications being rejected.
It was decided to utilise the excess application money towards sums due on allotment.
Varsha who applied for 1,800 shares, failed to pay the allotment money due and her shares were forfeited
immediately after allotment.
Neha who was allotted 1,200 shares failed to pay the call money and subsequently her shares were forfeited.
The Directors decided to reissue 50% of forfeited shares held by Varsha for `12 per share and 50% of
forfeited shares held by Neha for `9 per share.
Pass necessary journal entries in the books of the Company for the above transactions.
CBSE Accountancy Class 12 Sample Paper 3 Page 7

24. Following is the Balance Sheet of Alakh, Tanuj and Saroj as on 31st March, 2022 who shared profits in the
ratio 5:4:1.
Liabilities Amount (`) Assets Amount (`)
Capital Accounts: Machinery 2,50,000
Alakh 2,80,000 Investment 84,000
Tanuj 1,70,000 Stock 58,000
Saroj 90,000 Debtors 75,000
Bills Payable 22,000 Bills Receivable 38,000
Sundry Creditors 25,000 Bank 48,000
Workmen’s Compensation Fund 26,000 Goodwill 60,000
6,13,000 6,13,000
Tanuj died on 31 August 2022. Under the terms of the deed the executor of the deceased partner was
st

entitled to the following:

(i) Amount standing to the credit of the Partner’s Capital Account.
(ii) Interest on Capital at 12% p.a.
(iii) Tanuj had withdrawn `23,000 during the current year.
(iv) The deceased partner will be entitled to his share of profit up to the date of death based on the sales
during that period which amounted to `2,40,000. The rate of profit during the last three years has
been 10% on Sales.
(v) There was a claim on Workmen’s Compensation of `9,000.
(vi) Share of Goodwill was to be calculated by taking twice the amount of profit credited to his account
in the last year less 20%. Profits for the year 2021-2022 `72,000.
(vii) Tanuj’s Executors agreed to take over Investment at its book value, 30% of the balance amount due to
be paid immediately and the remaining amount to be transferred to Loan Account to be paid in two
annual instalments with interest @ 10% p.a.
Prepare Tanuj’s Capital A/c to be rendered to his Executor and Executor’s Account as on August 31, 2022.
O
Neel, Rohan and Naman were in partnership sharing profits in the ratio 2:1:1. On 31st March, 2019 their
Balance Sheet was as follows:
Liabilities Amount Assets Amount
(`) (`)
Creditors 15,000 Cash at bank 17,000
Employee Provident Fund 5,000 Book Debts 24,500
Profit & Loss A/c 15,000 Less: Provision for doubtful debts (1,200) 23,300
Capital Accounts: Stock 14,700
Neel 40,000 Machinery 35,000
Rohan 30,000 Land & Building 40,000
Naman 25,000 95,000
1,30,000 1,30,000
On the above date Rohan retired and the following was agreed:
(i) Goodwill of the firm was valued at 2 years’ purchase of super profits. Average profits amounted to
`21,500 and normal rate of return in the industry was 10%.
(ii) Land and Building was to be appreciated by 20% and Machinery was to be reduced to 70%.
(iii) Bad debts amounted to `600.
(iv) Rohan was to be paid `9,250 on the date of retirement and balance amount to be paid in two equal
instalments together with interest @ 10% p.a.
(v) Capital of the new firm is fixed at `90,000. Surplus/Deficit will be adjusted through Bank Accounts.
(vi) There was an unrecorded liability for outstanding legal charges `500.
(vii) Creditors worth `10,000 allowed a discount of 10% on immediate payment and partners decided to pay immediately.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm after
Rohan’s retirement.
Page 8 Sample Paper 3 CBSE Accountancy Class 12

25. Neel and Vimal are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st
March, 2022 was as follows:

Liabilities Amount (`) Assets Amount (`)

Outstanding Expenses 12,000 Cash in hand 71,000
Bills Payable 60,000 Debtors 1,50,000
Creditors 96,000 Less : Provision for
Employee Provident Fund 18,000 doubtful debts (25,000) 1,25,000
Investment Fluctuation Fund 20,000 Stock 50,000
Reserve 40,000 Investments (Market value of 1,20,000
investments `90,000)
Capital Accounts: Machinery
Neel 2,50,000 Building 60,000
Vimal 1,50,000 Profit & Loss A/c 2,00,000
20,000
6,46,000 6,46,000
On 1 April, 2022 they admitted Rajesh as a partner for 1/5th share in profits on the following terms:
st

(i) Rajesh will contribute proportionate capital and his share of goodwill in cash.
(ii) The Goodwill of the firm is valued at `50,000.
(iii) Provision on debtors was found to be in excess by `5,000.
(iv) Outstanding expenses will be increased by `1,000.
(v) A liability of `6,000 included in Sundry Creditors is not likely to arise.
Prepare Revaluation A/c, Partners’ Capital Accounts and the Balance Sheet of the newly constituted firm.

26. ABC Ltd. provides the following extracts from its Balance Sheets as on 31.03.2023 and 31.03.2024:

Balance Sheet (Extract)

as at 31 March, 2024
I- Equity & Liabilities Note no. 31.3.2023 31.3.2024
1. Shareholders’ Funds
(a) Share Capital 1 29,98,000 39,94,000
(b) Reserves & Surplus 2 1,00,000 2,20,000

Note 1 (as at 31.03.2023)

Share Capital
1. Authorised Share Capital 60,00,000
6,00,000 Equity Shares of `10 each

2. Issued Share Capital

3,00,000 Equity Shares of `10 each 30,00,000

3. Subscribed Share Capital

(a) Subscribed & Fully Paid 29,80,000
2,98,000 shares @ `10
(b) Subscribed but not fully paid 20,000
2,000 shares @ `10
Less : Calls in arrears (2,000 × `1) –2,000
29,98,000
CBSE Accountancy Class 12 Sample Paper 3 Page 9

Note 1 (as at 31.03.2024)

Share Capital
1. Authorised Share Capital 60,00,000
6,00,000 Equity Shares of `10 each

2. Issued Share Capital

4,00,000 Equity Shares of `10 each 40,00,000
(Of these, 20,000 shares were issued at par to a vendor for purchase of building)

3. Subscribed Share Capital

(a) Subscribed & Fully Paid 39,70,000
3,97,000 shares @ `10
(b) Subscribed but not fully paid 30,000
3,000 shares @ `10
Less : Calls in arrears (3,000 × `2) –6,000
39,94,000

Note 2 – Reserves and Surplus:

31.03.2023 31.03.2024
Capital Reserve Nil 40,000
Securities Premium 1,00,000 1,80,000
Additional Information:
• During 2023–24, ABC Ltd. acquired a building worth `2,20,000. The vendor accepted `2,00,000 in
shares at par and `20,000 in cash.
• After this transaction, Securities Premium increased by `80,000 (from `1,00,000 to `1,80,000) due to
shares issued for cash.
• On April 1, 2024, the company forfeited all shares on which calls were in arrears.
• Later, 1,000 of these forfeited shares were reissued at `13 each.
(i) What is the total face value of shares issued by the company during 2023–24?
(a) `10,00,000 (b) `11,00,000
(c) `12,00,000 (d) `10,20,000
(ii) At what price per share were the shares issued for cash during 2023–24 (given 20,000 shares were
issued at par)?
(a) `10 (b) `11
(c) `12 (d) `13
(iii) Upon forfeiting the defaulting shares on 01.04.2024, what amount is transferred to the Share Forfeiture
Account?
(a) `24,000 (b) `30,000
(c) `6,000 (d) `18,000
(iv) What will be the number of issued shares after the forfeiture of these defaulting shares on 01.04.2024?
(a) 4,00,000 shares (b) 3,97,000 shares
(c) 3,99,000 shares (d) 3,98,000 shares
(v) If 1,000 of the forfeited shares are reissued at `13 each, what will be the revised amounts of Securities
Premium and Capital Reserve?
(a) Securities Premium: `1,83,000, Capital Reserve: `48,000
(b) Securities Premium: `1,90,000, Capital Reserve: `46,000
(c) Securities Premium: `1,85,000, Capital Reserve: `50,000
(d) Securities Premium: `1,83,000, Capital Reserve: `40,000
Page 10 Sample Paper 3 CBSE Accountancy Class 12

(vi) What will be the ‘Subscribed and Fully Paid’ amount after reissuing these 1,000 shares?
(a) `39,80,000 (b) `39,94,000
(c) `40,00,000 (d) `40,10,000

PART—B
Analysis of Financial Statements (Option-I)
27. Financial statement analysis helps in understanding the ______ of financial data for decision-making.
(a) Profitability (b) Meaning
(c) Objectives (d) Significance
O
______ Ratios measure the company’s ability to meet its short-term obligations.
(a) Solvency (b) Liquidity
(c) Activity (d) Profitability

28. As on 31.03.2024, the following information of Vega Enterprises is available:

Net Profit Ratio: 28%
Operating Profit Ratio: 40%
On 1st April 2024, it was discovered that a cash discount of Rs. 30,000 received from a supplier (which
should have reduced the cost of purchases) was not recorded during the financial year 2023-24. After
rectifying this omission, what will be the effect on the Net Profit Ratio and the Operating Profit Ratio?
(a) Net Profit Ratio will increase and Operating Profit Ratio will decrease
(b) Both Net Profit Ratio and Operating Profit Ratio will increase
(c) Net Profit Ratio will increase and Operating Profit Ratio will remain unchanged
(d) Net Profit Ratio will remain unchanged and Operating Profit Ratio will increase

29. When preparing the Cash Flow Statement using the indirect method, which of the following adjustments
relate to non-operating items?
(i) Profit on sale of investments
(ii) Interest received
(iii) Depreciation
(iv) Dividend received
(a) Only (i) and (ii) (b) Only (i) and (iv)
(c) Only (ii) and (iii) (d) Only (iii) and (iv)

O
Which of the following statements is correct?
(a) Bank overdrafts should be classified as long-term borrowings in the Cash Flow Statement.
(b) Depreciation and amortization are subtracted from net profit when computing cash from operating
activities.
(c) Current investments are treated as marketable securities unless specified otherwise.
(d) Dividends received are classified as financing activities under AS 3 (Revised).

30. Statement-I : ‘Sigma Ltd.’ is a manufacturing company that sold old furniture for `2,00,000, resulting in
a loss of `20,000. It also declared a final dividend of `5,00,000, which was paid during the year. To meet
its working capital needs, the company obtained a cash credit of `7,00,000 from the bank. Depreciation of
`3,00,000 was charged during the year. The Net Profit of the company was `10,00,000. Based on the above,
the cash flow from investing, financing, and operating activities will be `1,80,000 (Investing), `2,00,000
(Financing), and `13,00,000 (Operating), respectively.
Statement-II : ‘Theta Ltd.’ amortized patents worth `1,00,000 during the year and paid taxes amounting to
`2,50,000. It also purchased new patents for `3,00,000. As per AS 3 (Revised), amortization is a non-cash
expense and will be added back to net profit, while the purchase of patents will be shown as cash outflow
under investing activities.
(a) Both the statements are true. (b) Both the statements are false.
(c) Only Statement-I is true. (d) Only Statement-II is true.
CBSE Accountancy Class 12 Sample Paper 3 Page 11

31. Find the heads and sub-heads under which the following items will appear in the balance sheet of a
company as per Schedule III, Part I of Companies Act, 2013:
(a) Goodwill
(b) Advances to suppliers
(c) Dividend Receivable
(d) Bank Loan (repayable within 12 months)
(e) Provision for Doubtful Debts
(f) Outstanding Rent

32. Calculate ‘Return on Investment’ and ‘Debt to Equity Ratio’ from the undermentioned information:
Net Profit after Interest and Tax `12,00,000
10% Debentures `20,00,000
Tax Rate 40%
Capital Employed `1,60,00,000

33. Calculate the Gross Profit Ratio from the following information:
Revenue from Operations: `24,00,000
Purchases: `11,00,000
Carriage Inwards: `1,00,000
Employee Benefit Expenses: `2,40,000 (includes Wages of `1,80,000)
Opening Inventory: `2,00,000
Average Inventory: `3,00,000
Profit after tax amounted to `12,00,000, and the tax rate was 20%. If earnings before interest and tax were
`18,00,000 and the nominal value of debentures was `40,00,000, determine the rate of interest on debentures.

34. From the following information of Jaipur Products Private Limited, prepare Cash Flow Statement.

Balance Sheet of Jaipur Products Private Limited as at 31.03.2022

Particulars Note 31 March 2022 31 March 2021

No. (`) (`)

I. EQUITY AND LIABILITIES

1. Shareholder’s Funds :
(a) Share Capital 3,20,000 2,40,000
(b) Reserves and Surplus 1 1,36,000 1,24,000
2. Non-Current Liabilities
Long Term Borrowing – 12% Debentures 2,00,000 1,20,000
3. Current Liabilities:
(a) Trade Payables 88,000 68,000
(b) Other Current Liabilities
(c) Short-term Provisions (Provisions for Taxation) 12,000 8,000
Total 7,56,000 5,60,000
II. ASSETS
1. Non-Current Assets :
(a) Property, Plant and Equipments and Intangible assets:
(i) Property, Plant and Equipment - Machines 3,36,000 2,64,000
(ii) Intangible Assets – Goodwill 56,000 80,000
(b) Long-term Investments – 10% Govt.Bonds 64,000 24,000
Page 12 Sample Paper 3 CBSE Accountancy Class 12

2. Current Assets
(a) Inventories 40,000 32,000
(b) Trade Receivables 1,56,000 64,000
(c) Cash & Cash Equivalents 1,04,000 96,000
Total 7,56,000 5,60,000

Notes to Accounts:

Particulars 31 March 2022 (`) 31 March 2021 (`)

1. Reserves and Surplus
Reserves 80,000 72,000
Balance in Statement of Profit and Loss 56,000 52,000
1,36,000 1,24,000
Additional information:
(a) Investments costing `24,000 were sold for `16,000.
(b) Depreciation on Machinery `48,000
(c) Tax paid `4,800
(d) Debentures were issued and investments were purchased and sold on March 31st 2022.

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