12TH 1ST TERM 24-25

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

1. Match the following (Capital account is to be prepared on fixed method) [1]

(a) Drawing against Profit (i) Partners current a/c (Credit side)

(b) Drawing Against capital (ii) Partners current a/c (Debit side

(c) Interest on Capital (Charge against profit) (iii) Partners' capital a/c (Credit side)

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(d) Additional capital (iv) Partners' capital a/c (Debit side)

a) (a) - (iv), (b) - (ii), (c) - (i), (d) - (iii) b) (a) - (ii), (b) - (iv), (c) - (iii), (d) - (i)

c) (a) - (ii), (b) - (iv), (c) - (i), (d) - (iii)

TS d) (a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)
2. A and B are partners in partnership firm without any agreement. A has given a loan of ₹ 50,000 to the firm. At [1]
the end of year, loss was incurred in the business. Following interest may be paid to A by the firm:
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a) @5% per annum b) As there is a loss in the business, interest

can't be paid

c) @ 6% per annum d) @ 6% per month

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3. For the firm, interest on capital is: [1]

a) income b) capital receipt

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c) capital payment d) loss

4. Y and X are partners in a firm and sharing the profit & loss in the ratio of 3 : 2 with a capital of ₹ 5,00,000 and ₹ [1]
3,00,000 respectively. Calculate the amount of profit or loss to be distributed among the partner if partnership
deed provides interest on capital @ 10% p.a. and Profit for the year is ₹ 8,000.
Amount to be credited to the partners' capital account:

a) X = 4,000 and Y = 4,000 b) Loss: X = 45000 and Y = 27000

c) Profit: Y = 5000 and X = 3000 d) Profit: Y = 3000 and X = 5000

5. A and B sharing profits in the ratio of 7 : 3 have fixed capitals of ₹ 2,00,000 and ₹ 1,00,000 respectively. After [1]

closing the accounts for the year ending 31st March, 2021 it was discovered that interest on capitals was
provided @ 12% instead of 10% p.a. In the adjusting entry:

a) A will be credited by ₹ 4,000 and B will be b) A will be credited by ₹ 200 and B will be
credited by ₹ 2,000 debited by ₹ 200

c) A will be debited by ₹ 200 and B will be d) A will be debited by ₹ 4,000 and B will be
credited by ₹ 200 debited by ₹ 2,000

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 6. Bharat and Laxman are partners sharing profits and losses in the ratio of 3 : 2. They changed their profit-sharing [1]

ratio to 2 : 3 w.e.f. 1st April, 2022. The assets were revalued, and liabilities were reassessed on that date which
resulted in a loss of ₹ 80,000. It was decided that the changed values will not be shown in the books of accounts.
It will be adjusted in their Capital Accounts as by:
i. Debiting Bharat's Capital Account and Crediting Laxman's Capital Account by ₹ 16,000.
ii. Crediting Bharat's Capital Account and Debiting Laxman's Capital Account by ₹ 16,000.
iii. Debiting Bharat's Capital Account and Crediting Laxman's Capital Account by ₹ 80,000.
iv. Crediting Bharat's Capital Account and Debiting Laxman's Capital Account by ₹ 80,000.

a) Statement (iv) is correct. b) Statement (i) is correct.

c) Statement (iii) is correct. d) Statement (ii) is correct.

7. A and B are partners in the ratio of 3 : 2. C is admitted as a partner and he takes th of his share from A. B gives [1]
1

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

3

16

a) b)
1 1

4 20

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c) 1

6
d) 1

16

8. M and N are partners in a firm sharing profits in the ratio of 3 : 2. They admitted R as a new partner for 1 th [1]
4

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Share. The new profit sharing ratio between M and N will be 2 : 1.
Sacrificing Ratio of M and N:

a) 2 : 3 b) 1 : 1
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c) 3 : 2 d) 2 : 1
9. Incoming partner may acquire his share from the old partners [1]
A. In their old profit sharing ratio
B. In a particular ratio
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C. In particular fraction from some of the partners

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a) Only A b) A and B

c) All of these d) A and C

10. A and B are partners sharing profits in the ratio of 3 : 2. They admit C into partnership for 1 th share. Partners [1]
4

have decided to share future profits in the ratio of 3 : 3 : 2. Premium brought in by C was credited to the
sacrificing partners capital accounts. Out of which A withdrew ₹ 3,600 (40% of the amount credited to him).
Premium for goodwill brought in by C:

a) 20,000 b) 12,000

c) 10,000 d) 9,000
11. Himanshu and kapil are partners sharing profits in the ratio of 2 : 1 respectively. Himanshu Capital is ₹ 1,02,000 [1]
and kapil Capital is ₹ 73,000. They admit Rohit and agree to give him 1

5
th share in future profit. Rohit brings ₹
14,000 as his share of goodwill. He agrees to contribute capital in the new profit sharing ratio. How much capital
will be brought by Rohit?

a) ₹ 47,250 b) ₹ 48,000

c) ₹ 45,000 d) ₹ 43,750

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12. X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1

5
th share of profits, for which he paid [1]
₹ 1,20,000 against capital and ₹ 60,000 as goodwill. Find the capital balances for each partner taking Z’s capital
as base capital.

a) ₹ 3,00,000, ₹ 1,80,000 and ₹ 1,80,000 b) ₹ 3,00,000, ₹ 1,20,000 and ₹ 1,20,000

c) ₹ 3,00,000, ₹ 1,20,000 and ₹ 1,80,000 d) ₹ 1,92,000, ₹ 2,88,000 and ₹ 1,20,000

13. Riva, Meetu and Asha were partners in a firm sharing profit and losses in the ratio of 1 : 2 : 3. Meetu died on [1]
31st July, 2019. According to the partnership agreement, her share of profit from the closure of last accounting
year till the date of her death was to be calculated on the basis of aggregate profits of two completed years
before her death. Profits of the firm for the years ending 31st March, 2018 and 31st March, 2019 were ₹ 46,000
and ₹ 44,000 respectively. The firm closes its books on 31st March every year. Meetu’s share of profit till the
date of her death will be:

a) ₹ 10,000 b) ₹ 45,000

c) ₹ 20,000 d) ₹ 5,000

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14. Total creditors of the firm (already transferred to Realisation Account) were ₹30,000. Out of this, creditors [1]
waived their claim of ₹5,000 while the rest agreed to allow discount @ 10% of their respective claim. Journal
Entry would be TS
a) Realisation b) Bank A/c Dr. 22,500
Dr. 25,000
A/c
To Realisation
22,500
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To Bank A/c 25,000 A/c

c) Mohan's d) Bank A/c Dr. 25,000

Dr. 22,500
Capital A/c
To Realisation
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25,000
To Realisation A/c
22,500
A/c
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15. Statement of profit and loss shows: [1]

a) financial position b) financial performance

c) assets and liabilities d) Income statement

16. Following items are the example of operating expenses except [1]

a) Bad debts and Provision for doubtful debts b) Cash discount allowed to customers

c) Selling and Distribution expenses d) Loss on sale of fixed assets

17. Which of the following is not the limitation of financial statements? [1]
a. Ignore qualitative aspects.
b. Personal bias.
c. Ignores price level changes.
d. Provide information about the profitability of the business.

a) Option (d) b) Option (b)

c) Option (a) d) Option (c)

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18. When some part of profit is transferred to the Debenture Redemption Reserve, General Reserve or Workmen [1]
compensation reserve etc. It is called:

a) Share Application money pending allotment b) Creation of Contingent Reserve

c) Revaluation process d) Appropriation of Profit

19. Which analysis is considered more dynamic? [1]

a) Horizontal Analysis b) Vertical Analysis

c) External Analysis d) Internal Analysis

20. Which objective is useful for the external users of financial statements? [1]

a) Assessing the Managerial Efficiency b) Inter-firm Comparison

c) Assessing the Short-term and Long-term d) Assessing the Earning Capacity or

Solvency of the Firm profitability

21. The partners of a firm distributed the profits for the year ended 31st March, 2023, ₹ 1,50,000 in the ratio of 2 : 2 [3]

: 1 without providing for the following adjustments:

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i. A and B were entitled to a salary of ₹ 1,500 per quarter.
ii. C was entitled to a commission of ₹ 18,000.
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iii. A and C had guaranteed a minimum profit of ₹ 50,000 p.a. to B.
iv. Profits were to be shared in the ratio of 3 : 3 : 2.
Pass necessary journal entry for the above adjustments in the books of the firm.
AN

22. Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from [3]

1st April, 2022, they mutually agreed to share profits and losses in the ratio of 2 : 2 : 1. It was agreed that:
i. Goodwill of the firm was valued at ₹ 1,40,000.
ii. Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 1,20,000.
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Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes
clearly.
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23. A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on [3]
31st March every year. On 30th June, 2021 A died. The partnership deed provided that on the death of a partner,
his share in the profits of the firm in the year of his death will be calculated on the basis of the average profits of
the past two years.
The profits of the firm for the last two years were as follows:

Profit
Year
₹

2019 - 2020 70,000 (loss)

2020 - 2021 2,70,000

Calculate A's share in the profits of the firm till the date of his death and pass necessary journal entry for this on
the same date.
24. Sabita and Sonam were partners in firm sharing profits in the ratio of 4 : 1. On 31st March, 2023, their Balance [3]
Sheet was as follows:

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 BALANCE SHEET OF SABITA AND SONAM
as at 31 st March, 2023

Liabilities ₹ Assets ₹

Creditors 45,000 Bank 55,000

Workmen Compensation Fund 40,000 Debtors 60,000

Sonam's Current Account 65,000 Stock 85,000

Capital A/cs: Goodwill 60,000

Sabita 2,00,000 Furniture 1,00,000

Sonam 1,00,000 3,00,000 Machinery 70,000

Sabita's Current Account 20,000

4,50,000 4,50,000

The firm was dissolved:

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i. Sabita took 40% of the stock at 10% less than its book value and the remaining stock was sold for ₹ 40,000.
Furniture realised ₹ 80,000.
ii. An unrecorded investment was sold for ₹ 20,000.
iii. Debtors realised ₹ 55,000.
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iv. There was an outstanding bill for repairs for which ₹ 19,000 was paid.
Prepare Realisation Account.
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25. Operating Cycle and the expected period of realisation of trade receivables is given below. How will you classify [3]
the asset?

Particulars (i) (ii) (iii) (iv) (v) (vi) (vii)

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Operating Cycle (Months) 9 17 10 10 14 24 10

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Expected period of realisation of trade receivables (Months) 8 15 11 15 16 20 12

OR
Under which main head and sub-head of Equity and Liabilities side are the following items shown in a Company’s
Balance Sheet:
i. Calls in Advance.
ii. Surplus i.e., Balance in Statement of Profit and Loss.
iii. Surplus i.e., Balance in Statement of Profit and Loss (Dr.).
iv. Advances received from Customers.
v. Interest Accrued and Due on Debentures.
vi. Interest Accrued but not Due on Debentures.
vii. Arrears of Fixed Cumulative Preference Dividends.
viii. Provision for Employee Benefits.
OR
Give the major headings under which the following items will be shown in a company’s balance sheet as per
Schedule III, Part I of the Companies Act, 2013.
i. Trade payables (Sundry creditors)

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 ii. Provision for tax
iii. Preliminary expenses
iv. Loose tools
v. Interest accrued on investments
vi. Goodwill
26. From the following information, prepare Comparative Statement of Profit & Loss: [3]

Particulars 31st March, 2023 (₹) 31st March, 2022 (₹)

Revenue from Operations 20,00,000 16,00,000

Other Income 4,40,000 3,00,000

Cost of Materials Consumed 8,00,000 6,00,000

Changes in Inventories of Finished Goods and Work-in-

4,00,000 2,00,000
Progress

Other Expenses (% of Cost of Revenue from Operations) 15% 10%

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Tax Rate 30% 30%

27. P, Q and R were partners in a firm sharing profits in the ratio of 5 : 6 : 9. On 31, march 2023 their Balance Sheet [4]
was as follows:
TS
Liabilities ₹ Assets ₹

Creditors 30,000 Cash 10,000

AN

Bills Payable 40,000 Bank 80,000

General Reserve 60,000 Stock 40,000

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Capitals: Debtors 70,000

P 1,30,000 Building 2,00,000

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Q 2,00,000 Land 3,00,000

R 4,00,000 7,30,000 Profit & Loss A/c 1,60,000

8,60,000 8,60,000

R died on 30th April, 2023. The partnership deed provided for the following on the death of a partner:
i. Goodwill of the firm was to be valued at 3 year’s purchase of the average profits of the last 5 years. The
profits for the years ending 31-3-2022, 31-3-2021, 31-3-2020 and 31-3-2019 were ₹ 80,000; ₹ 80,000; ₹
1,10,000 and ₹ 2,20,000 respectively.
ii. R's share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the
year ending 31-3-2023.
You are required to calculate the following:
a. Goodwill of the firm and R's share of goodwill at the time of his death.
b. R's share in the profit or loss of the firm till the date of his death.
Prepare R's Capital Account also at the time of his death to be presented to his executors.
28. Prepare a common size balance sheet of HJ Ltd from the following information. [4]

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 Particulars Note No. 31st March, 2023 (₹) 31st March, 2022 (₹)

EQUITY AND LIABILITIES

(1) Shareholder's Funds 8,00,000 4,00,000

(2) Non-current Liabilities 5,00,000 2,00,000

(3) Current Liabilities 3,00,000 2,00,000

Total 16,00,000 8,00,000

ASSETS

(1) Non-current Assets

10,00,000 5,00,000
Property, Plant and Equipment and Intangible Assets

(2) Current Assets 6,00,000 3,00,000

Total 16,00,000 8,00,000

29. From the following information, calculate Cash Flow from Investing and Financing activities: [4]

IR
Particulars 31st March, 2023 31st March, 2022

TS ₹ ₹

Machinery (At cost) 50,000 40,000

Accumulated Depreciation 12,000 10,000

AN

Capital 35,000 30,000

Bank Loan ____ 10,000

During the year, a machine costing ₹ 10,000 was sold at a loss of ₹ 2,000. Depreciation on machinery charged
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during the year amounted to ₹ 6,000.

30. A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2022, their capitals were: A ₹ [6]
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5,00,000 and B ₹ 3,00,000. During the year ended 31st March, 2023, the firm earned a net profit of ₹ 5,00,000.
The terms of partnership are:
a. Interest on capital is to be allowed @ 6% p.a.
b. A will get a commission @ 2% on net sales.
c. B will get a salary of ₹ 5,000 per month.
d. B will get commission of 5% on profits after deduction of all expenses including such commission.
Partners' drawings for the year were: A ₹ 80,000 and B ₹ 60,000. Net Sales for the year was ₹ 30,00,000. After
considering the above facts, you are required to prepare Profit & Loss Appropriation Account and Partners'
Capital Accounts.

31. Prashant and Vinit are partners in a firm. They share profits in the ratio of 3 : 2. Their Balance Sheet as at 31st [6]
March, 2023 was:

Liabilities ₹ Assets ₹

Creditors 2,30,000 Cash at Bank 1,20,000

Outstanding Rent 20,000 Debtors 2,00,000

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 Capital A/cs: Less: Provision for Doubtful Debts 20,000 1,80,000

Prashant 3,00,000 Stock 50,000

Vinit 1,50,000 4,50,000 Prepaid Expenses 10,000

Plant and Machinery 3,40,000

7,00,000 7,00,000

They admitted Amit as partner on 1st April, 2023 on the following terms:
i. Amit will bring ₹ 2,00,000 as capital and the necessary amount for goodwill.
ii. New profit-sharing ratio among Prashant, Vinit and Amit will be 5 : 3 : 2.
iii. Amount of goodwill is to be based on Amit's share in profits and capital contributed by him.
iv. Stock is to be reduced by 10%.
v. Provision for Doubtful Debts is to be ₹ 5,000.
vi. Plant and Machinery is to be reduced by 5%.
vii. Expenses on revaluation were ₹ 1,400 and were paid by the firm.

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viii. An unaccounted Commission Receivable of ₹ 1,400 be accounted.
Prepare Revaluation Account, Partners' Capital Accounts, Bank Account and the Balance Sheet of the New
Firm. TS
32. X, Y and Z were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2023 their Balance [6]
Sheet was as follows:
Balance sheet of X, Y and Z
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as at 31st March, 2023

Liabilities ₹ Assets ₹

Creditors 21,000 Land and Building 62,000

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Investment Fluctuation Fund 10,000 Motor Vans 20,000

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Profit and Loss A/c 40,000 Investments 19,000

Capitals: X 50,000 Machinery 12,000

Y 40,000 Stock 15,000

Z 20,000 1,10,000 Debtors 40,000

Less: Provision for doubtful debt (3,000) 37,000

Cash 16,000

1,81,000 1,81,000

On the above date, Y retired and X and Z agreed to continue the business on the following terms:
i. Goodwill of the firm was valued at ₹ 51,000.
ii. There was a claim of ₹ 4,000 for Workmen's Compensation.
iii. Provision for bad debts was to be reduced by ₹ 1,000.
iv. Y will be paid ₹ 8,200 in cash and the balance will be transferred in his loan account which will be paid in
four equal yearly instalments together with interest @ 10% p.a.

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 v. The new profit sharing ratio between X and Z will be 3 : 2 and their capitals will be in their new profit
sharing ratio. The capital adjustments will be done by opening Current Accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
33. Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, [6]
2022 their Balance Sheet was as follows:
Balance Sheet of Sonu, Monu and Ashu as at 31st March, 2022

Amount Amount
Liabilities Assets
₹ ₹

Creditors 35,000 Bank 22,000

General Reserve 25,000 Stock 25,000

Debtors 20,000

Capitals: Less: Provision for bad debts 2,000 18,000

Sonu 50,000 Furniture 15,000

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Monu 30,000 Land and Building 80,000

Ashu 20,000 1,00,000 TS

1,60,000 1,60,000

On the above date, the firm was dissolved on the following terms:
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i. Land and Building realised for ₹ 85,000, Furniture realised for ₹ 6,000 and Debtors realised full amount.
ii. Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu
for ₹ 3,000.
iii. Monu agreed to bear all realisation expenses. For his services Monu was paid ₹ 2,000. Actual expenses on
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realisation amounted to ₹ 2,200.

iv. Creditors were paid at 2% less.
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Prepare Realisation Account.

34. From the following Balance Sheets of Vishal Ltd., prepare Cash Flow Statement: [6]

Particulars Note No. 31.3.2023 (₹) 31.3.2022 (₹)

I. EQUITY AND LIABILITIES:

(1) Shareholder’s Funds:

(a) Share Capital 1 2,90,000 2,50,000

(b) Reserve & Surplus 1,52,000 50,000

(2) Current Liabilities:

(a) Trade Payables 5,000 23,000

(b) Short term Provision 2 35,000 27,000

TOTAL 4,82,000 3,50,000

II. ASSETS:

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(1) Non-Current Assets:

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

(i) Property, Plant and Equipment 3 1,50,000 1,40,000

(ii) Intangible Assets 20,000 30,000

(2) Current Assets:

(a) Inventory 95,000 45,000

(b) Trade Receivables 2,00,000 1,20,000

(c) Cash & Cash Equivalents 17,000 15,000

TOTAL 4,82,000 3,50,000

Notes:

Share Capital: 31.3.2023 (₹) 31.3.2022 (₹)

Equity Share Capital 2,50,000 2,00,000

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Preference Share Capital 40,000 50,000
TS 2,90,000 2,50,000

Short term Provision:

Provision for Tax 35,000 27,000

AN

Property, Plant and Equipment:

Building 80,000 1,00,000

Plant 70,000 40,000

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1,50,000 1,40,000
HE

Additional Information:
i. Depreciation charged on Plant was ₹ 30,000 and on Building ₹ 50,000.
ii. Income Tax paid during the year amounted to ₹ 25,000.

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