SHAHEED RAJPAL D.A.
V PUBLIC SCHOOL
SECOND UNIT TEST (2024-2025)
CLASS-XII
ACCOUNTANCY (SET-A)
TIME: 1 Hour MM.25
GENERAL INSTRUCTIONS:
Attempt all the questions.
Marks are indicated against each question.
Show your workings clearly.
This question paper contains 11 questions.
In multiple choice questions, write complete answer along with correct option.
________________________________________________________________________________
Q1. When goodwill is not purchased, goodwill account can: (1)
(a) Never be raised in the books
(b) Be raised in the books
(c) Be partially raised in the books.
(d) Be raised as per partnership deed
Q2. The average capital employed in a business is ₹5,00,000 and the average net profit earned is
₹65,000. If normal rate of return on capital employed is 8% and a remuneration of ₹20,000 is
expected, then the super profit of the concern is: (1)
(a) ₹15,000
(b) ₹25,000
(c) ₹ 5,000
(d) ₹5,200
Q3. P and Q are partners in a firm sharing profits in the ratio 7: 3. R is admitted into the firm for
2/5th share of profit which he takes from P and Q in the ratio 2: 1. The new ratio will be: (1)
(a) 7:3:4
(b) 11:8:5
(c) 13:5:12
(d) 14:5:13
Q4. A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share remaining
profits in the ratio of 3: 2. Find the profit sharing ratio of A, B, C and D. (1)
(a) 5:5:3:2
(b) 2.5: 2.5:8:6
(c) 7:7:6:4
(d) 3:9:8:3
Q5 A, B and C were partners in a firm sharing profits and losses in the ratio of 4:3: 2. The partners
decide to share future profits and losses in the ratio of 2: 2: 1. Each partner's gain or sacrifice
due to change in the ratio will be : (1)
(a) Sacrifice A 2/45 Sacrifice B 1/45 Gain C 3/45
(b) Gain A 2/45 Sacrifice B 3/45 Gain C 1/45
(c) Sacrifice A 2/45 Gain 3 3/45 Sacrifice C 1/45
(d) Gain A 2/45 Gain B 3 1/45 Sacrifice C 3/45
Q6. Choose the correct answer out of the following choices (1)
(a) (A) is correct but (R) is wrong.
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(c) Both (A) and (R) are incorrect.
(d) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
Assertion (A): The reserves and accumulated profits or losses existing in the books of firm at
the time of change in profit sharing ratio, are to be transferred to the partners' capital
accounts or current accounts in their old profit sharing ratio.
Reason (R): The reserves and profits existing in the books of the firm are earned before the
reconstitution of the firm.
Q7. Shreya and Seemant are equal partners in business that supplies handmade toys to children's
stores. The capital of their firm is₹ 1,00,000. In the past two years, they have earned a profit of
₹45,000 and ₹50,000 respectively.
Their friends Arsh and Sejal are equal partners in a similar business that supplies handmade
toys to children's stores. The capital of their firm is ₹1,20,000, with a profit at the normal rate
of return at ₹12,000 and ₹11,900 in the past two years.
Trishant decides to join Shreya and Seemant's firm as a new partner. As goodwill calculations
are going on, Trishant changes his mind and decides to join Arsh and Sejal's firm instead, for
1/5th share in the future profits which he will get equally from Arsh and Sejal. In order to
reconstitute the firm, what elements must they now take into consideration? (1)
(a) Only the new profit-sharing ratio
(b) Share of goodwill and new profit-sharing ratio
(c) Only the share of goodwill
(d) Share of goodwill, new profit-sharing ratio and sacrificing ratio
Q8. L and M are partners in a firm sharing profits in the ratio of 3:1. They admitted O as a new
partner. L surrenders 1/4 of his share and M surrenders 1/3 of his share in favour of O.
O brought the following assets towards his share of capital and goodwill: Stock ₹40,000,
Debtors ₹60,000, Land ₹1,00,000, Plant ₹3,60,000. The goodwill of the firm was valued at
₹4,80,000. Record the necessary journal entries for the same.
Record the necessary Journal entry for goodwill on O's admission. (3)
Q9. The average profit earned by the firm is ₹75,000 which include undervaluation of stock of
₹5,000 on an average basis. The capital invested in the business is ₹7,00,000 and the normal
rate of return is 7%. Calculate goodwill of the firm on the basis of 5 times the super profit. (3)
Q10. Sim, Tim and Jim are partners in a firm sharing profits and losses equally.
Balance Sheet
as at 31 March, 2023
Liabilities Amount Asset Amount
(in Rs) (in Rs)
Creditors 1,40,000 Building 2,00,000
General 60,000 Plant & machinery 1,00,000
reserve Patent & Copyright 1,50,000
Capital: 2,50,000 Stock 1,25,000
Sim 2,00,000 Debtors 1,50,000
Tim 1,50,000 Bank 75,000
Jim
8,00,000 8,00,000
From April 1 2023, the partners decide to share profits and losses in the ratio 3:2:1 and for that
purpose the following revised value of assets were agreed upon:
Building ₹2,75,000; Plant and Machinery 90,000; Patents and Copyrights ₹1,32,500, Stock ₹2,00,000:
Prepaid Insurance ₹5,000 and Debtors ₹1,42,500.
Goodwill of the firm was valued at ₹ 60,000.
You are required to prepare necessary ledgers if:
Partners decide to distribute the reserves. Also, they decide to record the revised values of assets in
the books of accounts. (6)
Q11. Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31st
March. 2023, their balance sheet was as follows:
Balance Sheet of Achla and Bobby
as on 31 March, 2023
Liabilities Amount Asset Amount
(in Rs) (in Rs)
Creditor 1,10,00 Cash at bank 60,000
0
General Reserve Debtors 40,000
40,000
Workmen compensation Stock 45,000
reserve
50,000 Furniture 1,55,000
Capital
Achla 4,00,000 Land & 5,00,000
Bobby 2,00,000 building
6,00,00
0
8,00,00 8,00,000
0
On 1 April, 2023, they admitted Vihaan as a new partner for 1/5th share in the profits of the firm on
the following terms:
(a) Vihaan brought ₹1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted
on the basis of Vihaan's capital; any surplus or deficiency was to be adjusted by opening current
accounts.
(b) Goodwill of the firm was valued at ₹4,00,000. Vihaan brought the necessary amount in cash for his
share of goodwill premium, half of which was withdrawn by the old partners.
(e) Liability on account of workmen's compensation amounted to ₹ 80,000.
(d) Achla took over stock at ₹35,000.
(e) Land and building was to be appreciated by 20%.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted
firm on Vihaan's admission. (6)
SHAHEED RAJPAL D.A.V PUBLIC SCHOOL
SECOND UNIT TEST (2024-2025)
CLASS-XII
ACCOUNTANCY (SET-B)
TIME: 1 Hour MM.25
GENERAL INSTRUCTIONS:
Attempt all the questions.
Marks are indicated against each question.
Show your workings clearly.
This question paper contains 10 questions.
In multiple choice questions, write complete answer along with correct option.
________________________________________________________________________________
Q1. Weighted average method of calculating goodwill be used: (1)
(a) When profits are fluctuating
(b) When profits show a trend
(c) When Profits are not equal
(d) None of the above
Q2. Capital employed of a firm is ₹ 3,00,000. The annual profit earned by the firm during the year
is₹ 48,000. The money could be kept in a bank for 5 years at 10% p.a. considering 2% as fair
compensation for risk involved in business, the goodwill of the firm on the basis of
capitalisation will be: (1)
(a) ₹1,00,000
(b) ₹1,20,000
(c) ₹ 1,80,000
(d) None of these
Q3. Bina and Ria are partners sharing profits in the ratio of 5: 3. They admitted Siya as a new
partner for 3/8th share which she acquired 2/8th from Bina and 1/8th from Ria. The new
profit sharing ratio of Bina, Ria and Siya will be: (1)
(a) 3:2:3 (b) 5:5:6 (c) 2:3:3 (d) 9:1:6
Q4. X, Y and Z are partners sharing profit in the ratio of 3:2: 1. They agree to admit M into the firm.
X, Y and Z agreed to give 1/3rd, 1/6th, 1/9th share of their profit. The share of profit of M will
be: (1)
(a) 11/54 (b) 13/54 (c) 12/54 (d) 14/54
Q5. Shreya and Seemant are equal partners in business that supplies handmade toys to children's
stores. The capital of their firm is₹ 1,00,000. In the past two years, they have earned a profit of
₹45,000 and ₹50,000 respectively.
Their friends Arsh and Sejal are equal partners in a similar business that supplies handmade
toys to children's stores. The capital of their firm is ₹1,20,000, with a profit at the normal rate
of return at ₹12,000 and ₹11,900 in the past two years.
Trishant decides to join Shreya and Seemant's firm as a new partner. As goodwill calculations
are going on, Trishant changes his mind and decides to join Arsh and Sejal's firm instead, for
1/5th share in the future profits which he will get equally from Arsh and Sejal. In order to
reconstitute the firm, what elements must they now take into consideration?
(a) Only the new profit-sharing ratio
(b) Share of goodwill and new profit-sharing ratio
(c) Only the share of goodwill
(d) Share of goodwill, new profit-sharing ratio and sacrificing ratio
Q6. A, B and C were partners sharing profits and losses in the ratio of 7:3:2. From 1st April, 2023
they decided to share profits and losses in the ratio of 8:4:3. General reserve appear in the
books at ₹1,20,000 which they decided to continue in books as it is. The Adjustment entry for
this will be:
(a) Cr. A by ₹6,000; Dr. B by ₹2,000; Dr. C by ₹4,000
(b) Dr. A by ₹6,000; Cr. B by ₹2,000; Cr. C by ₹4,000
(c) Cr. A by ₹6,000; Dr. B by ₹4,000; Dr. C by ₹2,000
(d) Dr. A by ₹ 6,000; Cr. B by ₹4,000; Cr. C by ₹2,000
Q7. Choose the correct answer out of the following choices (1)
(a) (A) is correct but (R) is wrong.
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(c) Both (A) and (R) are incorrect.
(d) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
Assertion (A): Any gain or loss arising from the revaluation of assets and reassessment of
liabilities is credited or debited to partners' capital accounts in their old profit sharing ratio,
when the profit sharing ratio changes.
Reason (R): Any increases or decrease in the value of assets and liabilities upto the date of
change in profit sharing ratio is for the period before the change in profit sharing ratio.
Therefore, it is shared by the partners in their old profit sharing ratio.
Q8. Karan and Varun were partners in a firm sharing profits and losses in the ratio of 1: 2. Their
fixed capitals were ₹2,00,000 and ₹3,00,000 respectively. On 1st April, 2023 Kishore was
admitted as a new partner for 1/4th share in the profits. Kishore brought ₹2,00,000 for his
capital which was to be kept fixed like the capitals of Karan and Varun. Kishore acquired his
share of profit from Varun. Calculate goodwill of the firm on Kishore's admission. Also, pass
necessary Journal entry for the treatment of Goodwill on Kishore's admission considering that
Kishore did not bring his share of goodwill premium in cash. (3)
Q9. The capitals of the firm of Anuj and Benu is ₹10,00,000 and market rate of return is 15%.
Annual salary to the partners is ₹60,000 each. The profit for the last 3 years work ₹3,00,000 ;
₹3,60,000 and ₹4,20,000. Goodwill of the firm is to be valued on the basis of 2 years purchase
of the last 3 years average super profit. Calculate the value of the goodwill. (3)
Q10. Sim, Tim and Jim are partners in a firm sharing profits and losses equally
Balance Sheet
as at 31 March, 2023
Liabilities Amount Asset Amount
(in Rs) (in Rs)
Creditors 1,40,000 Building 2,00,000
General 60,000 Plant & machinery 1,00,000
reserve Patent & Copyright 1,50,000
Capital: 2,50,000 Stock 1,25,000
Sim 2,00,000 Debtors 1,50,000
Tim 1,50,000 Bank 75,000
Jim
8,00,000 8,00,000
From April 1 2023, the partners decide to share profits and losses in the ratio 3:2:1 and for that
purpose the following revised value of assets were agreed upon:
Building ₹2,75,000; Plant and Machinery ₹90,000; Patents and Copyrights ₹1,32,500, Stock ₹2,00,000:
Prepaid Insurance ₹5,000 and Debtors ₹1,42,500.
Goodwill of the firm was valued at ₹ 60,000.
You are required to prepare necessary ledgers if:
Partners decide not to distribute the reserves. Also, they decide not to record the revised values of
assets in the books of accounts. (6)
Q11. Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st
March, 2023. Their Balance Sheet was as follows:
Balance Sheet of Sanjana and Alok
as on 31-3-2023
Liabilities Amount Asset Amount
(in Rs) (in Rs)
Creditors 60,000 Cash 1,66,000
Workmen Compensation . Debtors 1,46,000
Fund 60,000
Capital: Less Provision for
Sanjana 5,00,000 Doubtful Debt 2,000 1,44,000
Alok 4,00,000 Stock 1,50,000
Investment 2,60,000
Furniture 3,00,000
10,20,000 10,20,000
On 1st April, 2023, they admitted Nidhi as a new partner for 1/4th share in the profits on the
following terms
(a) Goodwill of the firm was valued at ₹4,00,000 and Nidhi brought the necessary amount in cash for
her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
(d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the
new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted
firm on Nidhi's admission.
