NEW GMT PUBLIC SCHOOL

ACCOUNTANCY (055)

TERM 1 EXAMINATION

Class XII (2025-26)

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 contain (i) Accounting for Partnership Firms and Part B contain (ii) Accounting for Companies.
4. Question 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions 17 to 20, 31and 32 carries 3 marks each.
6. Questions from 21 ,22 and 33 carries 4 marks each
7. Questions from 23 to 26 and 34 carries 6 marks each
8. 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
S.No Part A :- Accounting for Partnership Firms
1. Interest on Capital is Allowed on: 1

A. Opening Balance B. The capital at the year end

C. Average capital of the year D. The capital in the middle of the
year

2. On 1st January, 2023 Ajay, a partner, advanced loan of ₹ 3,00,000 to the firm. In the absence of a 1
partnership agreement, the amount of interest on the loan for the year ending 31 st March, 2023 will
be:
A. ₹ 18,000 B. ₹ 4,500
C. ₹ 9,000 D. No interest will be provided
3. Tangible Assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is 1
₹1,50,000 and normal rate of return is 10%. The amount of capital employed will be:
A. ₹ 10,00,000 B. ₹ 1,00,000
C. ₹ 50,000 D. ₹ 20,000

4. On the time of dissolution of a partnership firm, there were debtors of ₹ 34,000. Debtors of ₹ 1,000 1
became bad and 60% was realised from the remaining debtors. Which account will be debited and by
how much amount on the realisation from debtors?
A. Realisation A/c by ₹ 33,000 B. Profit & Loss A/c by ₹ 1,000
C. Cash A/c by ₹ 1,000 D. Debtors A/c by ₹ 14,200

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Please note that the assessment scheme of the academic session 2024-25 will continue in the current session i.e.
2025-26
5. Mona and Tina were partners in a firm sharing profits in the ratio 3:2. Naina was admitted with 1/6 th 1
share in the profit of the firm. At the time of admission, workmen compensation Reserve appeared in
the Balance sheet of the firm at ₹32,000. The claim on account of workmen compensation was
determined at ₹ 40,000. Excess of claim over the reserve will be:
A. Debited to Revaluation A/c B. Credited to Revaluation A/c
C. Debited to old partner’s capital A/c D. Credited to old partner’s capital A/c
6. Preeti and Krishma were in a partnership sharing Profit & Loss in the ratio 5:3. Their Capitals were ₹ 1
10,00,000 and ₹ 8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of
return was 10%. Firm made average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after
adjustment of loss of machinery of book value of ₹2,00,000 by fire against which insurance claim of
₹1,50,000 was admitted). Value of goodwill as per Capitalisation of super profits will be:
A. ₹ 10,00,000 B. ₹ 3,00,000 C. ₹ 18,00,000 D. Nil.
7. On 1st August, 2024 A, B and C entered into partnership with capitals of ₹5,00,000 each. Interest on 1
Drawings was to be charged @ 6% p.a. For the year ended March 31, 2025, C withdrew ₹ 80,000. What
amount of Interest on drawings will be charged from C ?

A. ₹ 4,800 B. ₹ 1,600 C. ₹ 3,200 D. ₹ 2,400

8. X, Y and Z were partners sharing Profit & Losses in the ratio 5:3:2. Y retired, and he gifted half of his 1
share to X and remaining half was taken over equally by X and Z. Determine the new Profit-sharing
Ratio.
A. 29 : 11 B. 13 : 7 C. 1 : 1 D. 5 : 2

9. At the time of dissolution of a firm, creditors are ₹ 3,50,000; Firm’s capital is ₹ 6,00,000; cash balance is 1
₹ 50,000. Other assets realised ₹7,50,000. Gain/ Loss in the realised account will be:

A. ₹1,50,000 Gain B. ₹ 2,00,000 Gain C. ₹ 2,00,000 Loss D. ₹ 1,50,000 Gain

10. On the reconstitution of a firm value of furniture increased from ₹ 7,00,000 to ₹ 8,00,000 and stock 1
reduced to ₹ 4,00,000 from ₹ 4,20,000. Gain or Loss on revaluation will be :
A. ₹ 80,000 Loss B. ₹ 80,000 Gain C. ₹ 1,20,000 Gain D. ₹ 1,20,000 Loss
11. From the given hypothetical situation, answer Q 12 – 14.

Floater Ltd. issued 60,000; 8% debentures of ₹ 100 each at 5% Discount and to be redeemed at 10%
premium at the end of 5 years. On the date of issue, balance in Securities Premium was ₹ 8,00,000 and
Statement of Profit Loss (Dr.) was ₹ 5,00,000.

12. Loss on Issue of Debentures is to be written off as ______ out of Securities Premium and ______) out 1
of Statement of Profit and Loss.
A. ₹ 4,50,000 ; ₹ 4,50,000 B. ₹ 6,00,000 ; ₹ 3,00,000
C. ₹ 8,00,000 ; ₹ 1,00,000 D. ₹ 4,00,000 ; ₹ 5,00,000
13. After writing off Loss on Issue of Debentures, _______ balance in Statement of Profit and Loss will be 1
________
A. Debit ; ₹ 6,00,000 B. Credit ; ₹ 6,00,000
C. Debit ; ₹ 4,00,000 D. Credit ; ₹ 4,00,000

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14. Premium on Redemption of Debentures account will have a balance of________ to be treated as 1
______ in the first year.
A. ₹ 9,00,000 ; Non-Current Liabilities B. ₹ 9,00,000 ; Current Liabilities
C. ₹ 6,00,000 ; D. ₹ 6,00,00 ; Current Liabilities
Non-Current Liabilities
15. Arun, Basu and Tarun were partners sharing Profit &Loss in the ratio 5:3:2. Their firm was dissolved 1
on March 31, 2025. On this date following assets and liabilities were appearing in their books of
accounts.
Building ₹ 2,00,000 ; Furniture ₹ 80,000 ; Stock ₹ 70,000 ; Goodwill ₹ 10,000 ; Debtors ₹ 40,000 ; Cash
₹ 20,000 ; Creditors ₹ 50,000 ; Arun’s Loan ₹ 60,000 ; Tarun’s Brother Loan ₹ 30,000.
Assets realised at for ₹ 3,40,000. Determine the amount of Realisation Gain/Loss.

A. Realisation Loss ₹ 80,000 B. Realisation Gain ₹ 60,000

C. Realisation Loss ₹ 60,000 D. No Gain or Loss on Realisation
16. John and Sourabh were partners sharing Profit &Loss equally. They decided to share future 1
Profit &Loss in the ratio 3:2. Their manager Arya met with an accident in the office itself and his
claim for compensation amounted to ₹. 50,000. The firm had a Workmen Compensation
Reserve of ₹. 80,000. Which of the following statement holds true at the time of reconstitution?

A. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and
balance ₹ 30,000 will be distributed amongst partners in old ratio.
B. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and
balance ₹ 30,000 will be distributed amongst partners in new ratio.
C. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and
balance ₹ 30,000 will be credited to Revaluation Account.

D. ₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve

and balance ₹ 30,000 will be carried forward in the books of the firm without any
treatment.
17. Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio 3:1:1. They admitted 3
Chunni into partnership for 1/5 share. It was decided that Munni will have 1/4 share in future
profits. Goodwill of the firm was valued at ₹ 3,20,000 and Chunni was unable to bring anything.
Calculate New Ratio, Sacrificing Ratio and journalise for goodwill at the time of admission of
Chunni.
OR
Yashasvi, Nitish and Harshit were partners sharing Profit &Loss in the ratio 5:3:2. W.e.f 01 April,
2025, they decided to share future Profit &Loss in the ratio 4:3:2. On the date of reconstitution
Goodwill was appearing in the books of ₹ 4,00,000. Goodwill of the firm was valued at ₹
7,20,000 on the date of reconstitution. Determine gain or sacrifice for each partner and pass
necessary entries.

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Please note that the assessment scheme of the academic session 2024-25 will continue in the current session i.e.
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18. Hemant and Pankaj were partners sharing Profit & Loss in the ratio of 3:2. The firm was 3
dissolved on March 31, 2024 and the following balances were appearing in the books of the
firm.
a. Hemant’s Loan ₹ 80,000
b. Ruby’s Loan ₹ 50,000
c. Creditors ₹ 1,00,000
d. Capital Balances after all adjustments – Hemant ₹ 1,60,000 and Pankaj - ₹ 1,40,000 Assets
of the firm realised at ₹ 6,00,000. You are required to show the amounts and order of payments
as per section 48 of Indian Partnership Act 1932 at the time of Dissolution of the firm.

19. On January 01, 2025 Ritu Ltd. Issued ₹ 40,00,000, 8% Debentures of ₹ 100 each at 5% discount 3
to be redeemed at 10% premium at the end of 5 years. Balance in Securities Premium on the
date of such issue was of ₹ 2,70,000. Pass entries for Issue of debentures.
20. Ankur and Vikram were partners sharing Profits &Losses in the ratio 3:2. They decided to share 3
future Profits & Losses equally. On the date of reconstitution there was Investment Fluctuation (1+1.5+0.
Reserve of ₹ 4,00,000 in the books of accounts. Pass entries in the following cases A. 5)
Value of Investment reduced by ₹ 2,50,000.
B. Value of Investment increased by ₹ 5,00,000.

C. There was no change in value of investments.

21. Sapphire Ltd. Was registered with an authorised capital of ₹ 80,00,000 divided into 4,00,000 4
shares of ₹ 20 each. Company offered and issued 1,50,000 shares at a premium of ₹ 4 per share
payable as ₹ 7 on application (including ₹ 1 premium), ₹ 12 on allotment (including ₹ 2
premium) and balance on first call. Rancho, holding 10,000 shares failed to pay allotment and
call money. Another shareholder Sultan holding 5,000 shares failed to pay the call money. All
the shares held by Rancho were forfeited and of these 8,000 were reissued at ₹ 22 per share as
fully paid.
Show Share Capital sub head as it would in the Balance Sheet of Sapphire ltd. along with notes
to Account as per the Companies Act 2013.
22. Amit, Sumit and Pulkit were partners sharing Profit &Loss in the ratio 5:3:2. Their Capitals were 4
₹ 8,00,000; ₹ 7,00,000 and ₹ 5,00,000 respectively. According to Partnership Deed:- (a) Interest
on Capital @ 10% p.a.
(b) Salary to Amit ₹ 10,000 p.m and Pulkit ₹ 15,000 per quarter.
(c) Commission to Sumit ₹ 70,000.
(d) Sumit was being guaranteed that his share of profits will not be less than ₹ 65,000. Deficiency if
any will be borne by Amit and Pulkit equally.
Ignoring the above terms the profits of ₹ 6,00,000, for the year ended March 31, 2025 were
divided equally between partners. You are required to pass necessary adjustment entry. Show
your workings clearly.

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2025-26
23. Extract of Financial statements of Alexa Ltd are produced below. 6

Balance Sheet ( Extract)

Equity and Liabilities Note no. 31-03-25 31-03-24

Shareholders funds (₹) (₹)

Equity Share capital 1 2,37,60,000 2,00,00,000
Reserves and Surplus 2 20,00,000 10,00,000

During the year Alexa ltd. purchased business of Gloria ltd. with assets of Rs.50,00,000 and
liabilities of Rs.20,00,000. With regards to the following additional Information:
1) During the year 40,000 Equity Shares were issued at a premium of Rs.4 per share for cash.
2) Besides this no shares were issued as sweat equity, bonus or as ESOP or in any other form.

Give journal entries for issue of shares for cash and consideration other than cash. Also, prepare
Share Capital A/c and Securities Premium Account in the books of Alexa ltd.
24. Alok, Deepak and Manish were partners sharing Profit &Loss in the ratio 5:3:2. Deepak retired 6

on March 31, 2025. On this date his dues after all adjustments related to Revaluation Gain/Loss,
Accumulated Profits/Losses and Goodwill treatment came out to be ₹ 6,40,000. He was paid ₹
40,000 through Furniture on retirement and it was agreed to pay balance in three equal annual
instalments together with interest as per the rate permissible by act, in the absence of any
agreement. First instalment being paid on March 31, 2026. You are required to pass entry for
immediate payment to Deepak on retirement and prepare Deepak’s Loan
Account till it is finally closed.

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2025-26
25. Dhwani and Iknoor were partners sharing Profits & Losses in the ratio 3:2. Their Balance Sheet on 6
March 31, 2025 was as follows
Liabilities Amount Assets Amount
(₹) (₹)
Dhwani’s Capital 2,40,000 Cash in Hand 50,000
Iknoor’s Capital 2,60,000 Building 3,00,000
Investment Fluctuation 50,000 Debtors 80,000
Reserve (-) Prov for Doubtful Debts 72,000
Employee Provident Fund 50,000 (8,000)
General Reserve 60,000 Stock 88,000
Creditors 40,000 Accrued Income 20,000
Bills Payable 30,000 Profit and Loss 1,00,000
Bank Overdraft 20,000 Investment 1,20,000
7,50,000 7,50,000
On the above date, they admitted Ishaya into partnership for 25% share. Ishaya brings ₹
2,50,000 as capital and ₹ 40,000 for goodwill. Goodwill of the firm was valued at ₹ 2,00,000.
Following agreements were agreed upon:-
Bad Debts amounted to ₹ 5,000 and Provision for doubtful debts to be created at same existing rate.
Investments were valued at ₹ 1,00,000.
Accrued Income was recovered only of ₹ 14,500 in settlement.
Building was overvalued by 20%.
Capital of Dhwani and Iknoor were to be adjusted on the basis Ishaya’s capital contribution.
Necessary adjustment to be done by opening Current Accounts.
You are required to prepare Revaluation Account and Partner’s Capital Account at the time of
admission of partner.
OR
Aman, Barman and Raman were partners sharing Profits & Losses in the ratio 5:3:2. Their
Balance Sheet on March 31, 2025 was as follows

Liabilities Amount (₹) Assets Amount (₹)

Aman’s Capital 80,000 Bank 30,000
Barman’s Capital 70,000 Building 1,00,000
Raman’s Capital 50,000 Furniture 60,000
Workmen Compensation Reserve 50,000 Debtors 50,000
Accumulated Depreciation on Building 20,000 Stock 40.000
Profit and Loss 40,000 Prepaid Expenses 20.000
Creditors 25,000 Deferred Revenue Exp. 20.000
Outstanding Expenses 15,000 Goodwill 30.000
3,50,000 3,50,000

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2025-26
 On the above date Barman retired and his share was acquired by Aman and Raman equally.
Following agreements were agreed upon:-
a) Create Provision for doubtful debts @ 10%.
b) Market value of Building is ₹1,00,000 and Furniture was overvalued by 20%.
c) Stock was valued at ₹ 55,000. Creditors of ₹ 15,000 took over stock of ₹ 10,000 in settlement of
their claims.
d) Goodwill of the firm was valued at ₹ 80,000.
e) Prepaid Expenses are worthless and Outstanding Expenses are now ₹20,000.
f) ₹ 20,000 was immediately paid to Barman on retirement brought in Aman and Raman in ratio
3:2.
Prepare Revaluation Account and Partner’s Capital Account at the time of retirement of partner.

26. Space Ventures Limited was registered with an authorised capital of ₹ 20,00,000 divided into 6
2,00,000 shares of ₹ 10 each. The company offered 80,000 shares for public subscription
payable ₹ 4 on application and ₹ 7 on allotment (including ₹ 1 premium). Public had applied for
1,10,000 shares and pro-rata allotment was made in the ratio of 5:4. Remaining applications
were rejected. Mukta, holding 6,000 shares failed to pay allotment money. Her shares were
being forfeited and later re-issued 4,000 shares at a discount of ₹ 2 per share.
Pass necessary entries in the books of Space Ventures Ltd.
OR
Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹
5 on allotment (including ₹ 1 premium) and balance on call. Applications were received for
3,00,000 shares out of which 20% applications were rejected and remaining were allotted on
pro-rata basis. Rohan, an applicant of 12,000 shares failed to pay allotment money and Mohan
holding 8,000 shares paid the entire money along with allotment. Subsequently the call was
made, all the money was duly received except from Rohan. Later on, company issued a notice
to Rohan to pay the balance in 15 days failing which his shares would be forfeited.
Rohan cleared his dues within the stipulated time period. Journalise.

Part B
Accounting for companies

27. Mohan Ltd. Forfeited 160 shares of ₹ 10 each on which the holder had paid only the application 1
money of ₹ 2 per share. Out of these , 40 shares were reissued to Gaurav as fully paid for ₹ 9 per
share. The gain on reissue is:

A. ₹ 320 B. ₹ 160 C. ₹ 40 D. None of these.

28. Assertion (A) :- Forfeited shares may be reissued by the company at a discount also. 1
Reason (R) :- Amount of discount on re-issue of forfeited shares cannot exceed the amount
forfeited ln reissued shares.
A. Both A and R are correct, and R is the correct explanation of A
B. Both A and R are correct, but R is not the correct explanation of A
C. A is correct but R is incorrect

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 D. A is incorrect but R is correct

1
Read the following hypothetical situation and answer question number 29 and 30
Kanika limited issue 8,000 9% debenture of ₹ 100 each at a discount of 10%. The full amount
was payable on application. Application were received for 9,000 debentures and allotment was
made on pro rata basis. Pass the necessary journal entries for the above transaction in the books
of Kanika Ltd. Ignore writing of discount on issue of debentures.
Journal of kanika Ltd.

DateParticular L.F. Dr. Balance Cr. Balance

Bank A/c. Dr. 8,10,000
To 9% Debenture Application & Allotment A/c 8,10,000
(Being application money received on 9,000
debentures @ Rs. 90 each)
9% Debenture Application & Allotment A/c. 8,10,000
Dr. ( 1 )
Discount on issue of debentures A/c. Dr. 8,00,000
To 9% Debenture A/c ( 2 )
To Bank A/c
(Being debenture allotted and excess application
money refunded)
29.
Amount to be reflected in blank (1):
A. ₹ 3,00,000 B. ₹ 2,30,000 C. ₹ 2,80,000 D. ₹ 2,70,000

30. Which of the following is cash flow from Operating activities for a finance company: 1
version of debentures into shares B. Dividend received

D. Dividend paid
31. Complete the following Comparative Balance Sheet as at March 31, 2024 and Match 31, 2025 3
PARTICULARS 31st March 31st March, Absolute Change Percentage Change
2024 2025
Shareholders' Funds 6,00,000 ?? 3,00,000 ??
Non-current Liabilities 3,00,000 ?? NIL ??
Current Liabilities ?? 3,00,000 2,00,000 ??
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 TOTAL ?? ?? ?? ??
Non-current Assets 7,00,000 ?? ?? 50
Current Assets ?? ?? ?? ??
TOTAL ?? ?? ?? ??
OR
Prepare Common Size Statement of Profit and Loss for the year ended March 31, 202 5
PARTICULARS
31st March, 2025
Revenue from Operations
40,00,000
Other Expenses
4,00,000
Other Income 6,00,000
Employee Benefit Expenses
8,00,000
Purchases of Stock in Trade
10,00,000
Change in Inventory (2,00,000)

Tax Rate 50 %
32.(i) Give two examples of Inventory except Raw Materials, Work in Progress, Finished Goods and 3
Stock in Trade.
(ii) Where will you disclose the amount of loss on issue of debentures written off out of Statement
of Profit and Loss?
(iii) Where will you disclose Purchase of Raw Materials in Financial Statement of Company?
33. Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transactions will 4
increase , decrease or will have no change on the ratio
a) Goods purchased on Credit
b) Outstanding Expenses paid
c) Sale of Fixed Assets a 20% loss
d) Issue of Debentures at Premium to Vendors
OR
From the following information, calculate Trade Receivables Turnover Ratio:
Cost of Revenue from Operations (Cost of Goods Sold) : Rs. 6,00,000 Gross Profit on Cost : 25%
Cash Sales: 20% of Total Sales Opening Debtors: Rs. 1,00,000 Closing Debtors : Rs. 2,00,000.
Provision for Doubtful Debts: Opening Rs. 10,000 and Closing Rs.20,000.

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34. Extracts of the Balance Sheets of M/s Agrawal Ltd. as on 31 st March,2024 and 31st March 6
2025alonwith additional information are given below. You are required to calculate:
(i) Operating profit before changes in working capital.
(ii) Cash Flows from Financing Activities.

31.03.2025 31.03.2024
Equity Share Capital 12,00,000 9,00,000

10% Preference Share Capital 4,00,000 5,00,000

Cash Credit 2,50,000 1,00,000
Profit and Loss (Cr.) 8,00,000 6,00,000
12% Debentures 4,00,000 3,00,000
Bank overdraft 1,00,000 75,000
Outstanding Interest on Debentures 3,000 --------

Additional Information:
a) New equity shares and debentures were issued on last day the current accounting year ended
31st March, 2025. Debentures were issued at a discount of 5% which was written off at the end
of the year.
b) Dividend on preference shares and interim dividend @ 15% were paid on equity shares on 31st
March, 2025
c) Preference Shares were redeemed on 1st April, 2025 at a premium of 5%. The premium was
provided out of profits.

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