Accountancy Sample Paper

of the partners. Calculate the amount of capital to be

Q1. After closing accounts, it was found that interest on contributed by the individual partners.
capital of Mr. Rehan @ 12% p.a. was omitted: (a) E will contribute Rs 20,000; F 80,000 and G Rs 70,000
(b) E will contribute Rs 80,000; F 70,000 and G Rs 20,000
His capital (Fluctuating) 5,00,000 (c) E will contribute Rs 70,000; F 20,000 and G Rs 80,000
balance as on 31.03.2021 is (d) E will contribute Rs 70,000; F 80,000 and G Rs 20,000
Additional capital 100,000
introduced on 01.07.2020 is Q7. Heena, Manish and Neha were partners sharing profits in
Drawing against profit on 60,000 the ratio of 2:2:1. They decided to share future profits in the
01.10.2020 is ratio of 7:5:3 with effect from 1st April, 2022. Their Balance
Mr. Rehan's salary is 80,000 p.a Sheet as on that date showed a balance of ₹45,000 in
Mr. Rehan's commission is 10,000 Advertisement Suspense Account. The amount to be debited
Interest on drawing (Mr. 5,000 p.a respectively to the capital accounts of Heena, Manish and
Rehan) Neha for writing off the amount in Advertisement Suspense
Interest on his capital will be: Account will be:
(a) 60,000 (a) ₹15,000, ₹15,000 and ₹15,000
(b) 50,400 (b) ₹22,500, ₹22,500 and Nil
(c) 50,000 (c) ₹21,000, ₹15,000 and ₹9,000
(d) 54,000 (d) ₹18,000, ₹18,000 and ₹9,000

Q2. When the profits are guaranteed by the partners on the Q8. X, Y and Z were partners sharing profits in the ratio 2:3:4
old profit sharing ratio, which of the following is not true with effect from 1st January, 2023 they agreed to share profits
(a) Amount guaranteed to a partner is transferred to Profit in the ratio 3:4:5. Each partner's gain or sacrifice due to
and Loss Appropriation A/c. change in the ratio will be:
(b) All of these (a) X Gain 1/36; Y Sacrifice 1/36; Z Nil
(c) Then the remaining profits are distributed among old (b) X Sacrifice 1/36; Y Nil; Z Gain 1/36
partners/remaining partners in remaining ratio. (c) X Gain 1/36; Y Nil; Z Sacrifice 1/36
(d) Guaranteed amount is calculated according to his share. (d) X Sacrifice 1/36; Y Gain 1/36; Z Nil

Q3. For the firm, interest on drawings is: Q9. Current assets do not include:
(a) Capital payment (a) Bills Receivable
(b) Capital receipt (b) Inventory
(c) Expenses (c) Prepaid Expenses
(d) Income (d) Goodwill

Q4. A and B are partners with the capitals of ₹2,00,000 and Q10. Gagan, Vinod and Shubham are partners. Juhi is admitted
₹1,00,000 respectively. Interest payable on capital is 10% p.a. as new partner. Sacrificing ratio of the partners is 1:2:1. New
Determine amount of appropriation for each partner when the profit sharing ratio 2:1:1:1. What was the old profit sharing
profit earned by the firm is ₹24,000. ratio of Gagan, Vinod and Shubham?
(a) ₹15,000 and ₹9,000 (a) 9:6:5
(b) No interest will be paid (b) 1:2:1
(c) ₹20,000 and ₹10,000 (c) 2:1:1
(d) ₹16,000 and ₹8,000 (d) 13:14:9

Q5. Sunny and Manish are partners sharing profits in the ratio 11. A and B are partners in a firm sharing profits in the ratio of
of 3:2 before they changed the profit-sharing ratio to equal. 5:3. They admit C as a new partner for share. New Ratio will be
The Balance Sheet as on the date of change in profit-sharing 4:2:1. Sacrificing ratio will be:
ratio showed debit balance in Profit & Loss Account of (a) 5:3
₹50,000. The balance of ₹50,000 should (b) 3:2
(a) be carried forward in the Balance Sheet as it is (c) 4:2
(b) be transferred to their respective Capital Accounts in the (d) 3:5
ratio of 1:1.
(c) be transferred to their respective Capital Accounts in the 12. Kabir and Farid are partners in a firm sharing profits in the
ratio of 3:1. ratio of 3:1 on 1-4-2019 they admitted Manik into partnership
(d) be transferred to their respective Capital Accounts in the for 1/4th share in the profits of the firm. Manik brought his
ratio of 3:2 share of goodwill premium in cash. Goodwill of the firm was
valued on the basis of 2 years purchase of last three years
Q6. E, F and G are partners sharing profits in 7:6:5 ratio. Their average profits. The profits of last three years were
fixed capitals are Rs.70,000, Rs.40,000 and Rs.80,000 2016-17 90,000
respectively. It is now decided that the total capital of the firm 2017-18 1,30,000
should be Rs.3,60,000 and should be in the profit sharing ratio 2018-19 86,000
During the year 2018-19 there was a loss of 20,000 due to fire 20. On firm's dissolution, when a partner voluntarily gives his
which was not accounted for while calculating the profit. personal asset to firms' creditor as payment, the account
Goodwill of the firm: credited will be:
(a) 2,00,000 (a) Partner's Capital A/c
(b) 1,02,000 (b) Cash A/c
(c) 2,04,000 (c) Realisation A/c
(d) 1,08,667 (d) Partner's loan A/c

Q13. Sakshi and Chandra were partners in a firm sharing Q21. Lalita Ltd. forfeited Mamta's shares. Mamta who had
profits and losses in the ratio of 5:3. Mansi was admitted as a applied for 600 shares of ₹10 each and was allotted 400 shares
new partner. It was decided that the new profit sharing ratio failed to pay allotment money of ₹4 per share including
of Sakshi, Chandra and Mansi will be 10:6:5. The sacrificing premium of ₹2. She had paid only the application money of ₹2
ratio of Sakshi and Chandra will be: per share. The first and final call was not yet called. The
(a) 2:1 Journal entry for forfeiture of shares by opening calls in
(b) 6:5 arrears account will be
(c) 25:78 (a)
(d) 5:3 Date Particulars L.F Dr. (₹) Cr. (₹)
Share 1,600
Q14. Increase in liability at the time of retirement of a partner Capital Dr.
is: A/c
(a) Credited to Revaluation Account Securities 800
(b) Shown in balance sheet Premium
(c) Debited to Profit and Loss Account Dr. A/c
(d) Debited to Revaluation Account To Share 1,600
forfeited
Q15. A, B and C are the partners sharing profits in the ratio A/c
3:2:1, C retires. If A and B purchase the share of retiring To Calls in 800
partner equally, what will be the new profit-sharing ratio? Arrears A/c
(a) 1:1
(b) 7:5
(c) 2:3 (b)
(d) 3:2 Date Particulars L.F Dr. (₹) Cr. (₹)
Share 2,000
Q16. When will old partners capital account is debited and Capital Dr.
goodwill account is credited? A/c
(a) When existing Goodwill is given To Share 1,200
(b) To Find out the amount due to outgoing partner forfeited A/c
(c) When goodwill shown after balance sheet To Calls in 800
(d) To Calculate the retiring partner's share of Goodwill Arrears A/c

Q17. On dissolution of a firm, a partner took over ₹17,000

investments for ₹14,000. Which one of the following account (c)
will be debited/credited with how much amount? Date Particulars L.F Dr. (₹) Cr. (₹)
(a) Realisation Account Credit with ₹3,000 Share 1,600
(b) Partner's Capital Account Debit with ₹ 14,000 Capital Dr.
(c) Partner's Capital Account Credit with ₹17,000 A/c
(d) Realisation Account Credit with ₹17,000 Securities 800
Premium
Q18. Investments valued ₹2,00,000 were not shown in the Dr. A/c
books. One of the creditors took over these investments in foil To Share 1,200
satisfaction of his debt of ₹2,20,000. How much amount will forfeited
be deducted from creditors? A/c
(a) ₹2,00,000 (b) ₹4,20,000 To Calls in 1,200
(c) ₹2,20,000 (d) ₹20,000 Arrears A/c

Q19. Which of the following is not the mode of dissolution of

the firm? (d)
(a) On happening of an event Date Particulars L.F Dr. (₹) Cr. (₹)
(b) Dissolution by court Share 1,600
(c) Retirement of a partner Capital Dr.
(d) By Mutual Agreement A/c
 To Share 1,600 Q29. Shares on which the company has not called the entire
forfeited A/c nominal value is shown in the Note to Accounts on Share
Capital under Subscribed Capital as
To Calls in 800 (a) Subscribed but not fully paid-up;
Arrears A/c (b) Any of these
To Calls in 1,200 (c) Subscribed and fully paid-up;
Arrears A/c (d) Paid up capital

Q30. Securities Premium Reserve is shown on the Equity and

Q22. Is there any limit of Securities Premium on the issue of Liabilities part of the Balance Sheet under the head
shares. If yes then what is the limit. (a) Reserves and Surplus
(a) 25% (b) 10% (b) Assets
(c) 20% (d) Unlimited (c) Share Capital
(d) Current Liabilities
Q23. X Ltd. forfeited Rohini's shares who has applied for 5,000
shares and was allotted 4,000 shares failed to pay allotment Q31. In the Statement of Profit & Loss of a Common Size
money of ₹4 per share (including premium of ₹2) on which she Statement:
had paid application money of ₹2 only. (a) Figure of assets is assumed to be equal to 100
Amount Credited to Forfeited Shares Account will be (b) Figure of net profit is assumed to be equal to 100
(a) ₹14,000 (c) Figure of net revenue from operations is assumed to be
(b) ₹16,000 equal to 100
(c) ₹2,000 (d) Figure of gross profit is assumed to be equal to 100
(d) ₹10,000
Q32. No profit no loss point is called:
Q24. Interest payable on debentures is: (a) Break-Even Point
(a) an appropriation of profits of the company (b) Fund Flow Point
(b) a charge against profits of the company (c) Cash Flow Point
(c) transferred to sinking fund investment account (d) Trend Analysis
(d) transferred to general reserve
Q33. In a common size Statement of Profit & Loss, the amount
Q25. Office Products Ltd, issued on 1st April, 2018, 20,000, 9% of net revenue from operations is assumed to be equal to
Debentures of 100 each at a premium of 10% redeemable at a (a) 1,000
premium of 5% after 5 years. Issue price was payable along (b) 1
with application. Calculate the amount of premium on (c) 100
redemption of debentures. (d) 10
(a) 1,80,000
(b) 20,00,000 Q34. Purchase of building results in
(c) 1,00,000 (a) no flow of cash
(d) 2,00,000 (b) outflow of cash
(c) inflow of cash
Q26. Mohit Ltd. issues 20,000, 9% debentures of 100 each at a (d) both inflow and outflow
discount of 5% redeemable at the end of 5 years at a premium
of 6%. For what amount Loss on Issue of Debentures Account Q35. How will you classify loans given by Tata Finance
will be debited? Company?
(a) ₹1,20,000 (a) Cash Flow from Operating Activities
(b) ₹1,00,000 (b) Cash Flow from Investing Activities
(c) ₹2,20,000 (c) Cash Flow from Financing Activities
(d) ₹2,80,000 (d) No Cash Flow

Q27. Which one of the following is commitment? Q36. Which of the following transactions will result into flow
(a) Interim Dividend of cash?
(b) Dividend Arrears on Cumulative (a) Sold machinery of book value of ₹50,000 at a gain of
Preference Shares ₹10,000.
(c) Unpaid/Unclaimed Dividend (b) Deposited ₹40,000 into bank.
(d) Proposed Dividend (c) Sold short-term marketable securities for ₹25,000 at par.
(d) Withdrew cash from bank ₹54,000.
Q28. Accumulated Dividend Arrears on preference shares is
shown in the company's balance sheet as: Q37. How will you deal increase in the balance of Securities
(a) Short-term Provisions Premium Reserve while preparing a Cash Flow Statement?
(b) Commitments (a) Cash flow from Investing activities
(c) Contingent Liability (b) Cash Equivalent
(d) Current Liability (c) Cash flow from Financing activities
(d) Cash flow from operating activities
Q38.Which of the following statements is correct? Q45. The amount is not set aside to Debenture Redemption
(a) Subscribed Capital > Issued Capital Reserve (DRR) if
(b) Issued Capital ≤ Authorised Capital (a) The debentures are fully convertible
(c) Paid-up Capital > Subscribed Capital (b) The debentures are not convertible
(d) None of the above (c) The debentures are partly convertible
(d) None of these
Q39. Creditors to whom the firm owed 7,000 accepted
Debtors of₹ 6,000 at a discount of 10% and the balance in Q46. Average Inventory 60,000; Inventory turnover ratio 8
cash. Cash will be credited by: times; selling price 25% above cost. Revenue from operation
(a) ₹1,000 will be:
(b) ₹1,600 (a) 5,00,000
(c) ₹6,000 (b) 6,00,000
(d) ₹5,000 (c) 3,60,000
(d) 4,80,000
Q40. A business earns ₹3,30,000 annually. If the normal return
is 10%, total assets are ₹33,00,000 and liabilities are Q47. Credit Purchases ₹6,00,000; Trade Payables Turnover
₹3,00,000, what is the goodwill using the capitalisation of Ratio 5; Calculate Closing Creditors, if Closing Creditors
actual profits method? are₹10,000 less than Opening Creditors.
(a) ₹10,000 a) ₹ 1,15,000
(b) ₹3,00,000 b) ₹ 1,10,000
(c) ₹6,00,000 c) ₹ 1,30,000
(d) ₹30,000 d) ₹ 1,25,000

Q41. Rachna Ltd. purchased a running business from Madhav Q48. On the basis of following data, a Company's Closing
Ltd. for a sum of 16,00,000. A part of the consideration was Debtors will be: Credit Revenue from Operations ₹9,00,000;
paid by cheque of ₹5,00,000 and for the balance amount 9% Average Collection period 2 months; Opening Debtors are
debentures were issued of 100 each at par. 15,000 less as compared to Closing Debtors.
The assets and liabilities consisted of the following: (a) ₹75,000
Plant and Machinery ₹4,00,000 (b) ₹1,42,500
Building ₹6,00,000 (c) ₹1,80,000
Stock ₹5,00,000 (d) ₹1,57,500
Debtors ₹3,00,000
Creditors ₹2,50,000 Q49. A Company's Liquid Assets are ₹6,00,000, Inventory is
Calculate amount of capital reserve. ₹1,50,000 and its Current Liabilities are ₹4,00,000.
(a) ₹2,00,000 Subsequently, it purchased goods for ₹1,00,000 on credit.
(b) ₹1,00,000 Quick Ratio will be_______
(c) ₹1,50,000 (a) 1.2: 1
(d) None of these (b) 1.4: 1
(c) 1.5: 1
Q42. Average profit of a business over the last five years was (d) 1.7:1
₹60,000. The normal commercial yield on capital invested in
such business is 10% p.a. The net capital invested in the Q50. Match the following
business is ₹ 5,00,000. Amount of goodwill, if it is based on 3
years' purchase of last 5 year's super-profits will be (a) Trade unions are (i) Interest on loan and
(a) ₹1,50,000 interested in Financial repayment of principal
(b) ₹1,00,000 Statement Analysis because amount
(c) ₹1,80,000 (b) Bankers and Lenders are (ii) Safety of investment
(d) ₹30,000 interested in Financial
Statement Analysis because
Q43. When goodwill is not a purchased goodwill, goodwill: (c) Shareholders are (iii) Negotiation or revision
(a) may or may not be shown in the balance sheet. interested in Financial in wage agreement with
(b) is not shown in the balance sheet Statement Analysis because employer
(c) is partly shown in the balance sheet (d) Potential Investors are (iv) They want to know;
(d) is shown in the balance sheet interested in Financial they should invest in that
Statement Analysis because company or not
Q44. The provisions of the Companies Act, 2013 in respect of
redemption of debentures are to protect the interest of (a) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)
(a) Shareholders (b) (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
(b) Creditors (c) (a)-(i), (b)-(iii), (c)-(ii), (d)-(iv)
(c) Bankers (d) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)
(d) Debentureholdes