Bethany Convent School

Class XII (2025-26)

TIME 3 HOURS MAX. MARKS 80

GENERAL INSTRUCTIONS:

1. This question paper contains 34 questions..

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 20 carries 1 mark each.

4. Questions 20-25 carries 3 marks each.

5. Questions from 26- 29 carries 4 marks each

6. Questions from 30-34carries 6 marks each

All questions are compulsory

1. A partner’s capital account was credited with ₹80,000 during the year. Which of the
following can be the possibility for such a credit in his capital account?

A. Opening Balance B. Drawings during the year

C. Loss during the year D. Capital introduced

2. Assertion (A) :- Fluctuating Capital Account can show debit balance.

Reason (R) :- Losses and Drawings can be more than Capital Balance.

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

D. Both A and R are incorrect.

3.On 1st July, 2024, A, B and C entered into partnership sharing Profits & Losses in the
ratio 5:3:2. C was guaranteed that his share of profits will not be less than 60,000 p.a.
Deficiency if any will be borne by A and B equally. For the year ended March 31, 2025,
firm incurred loss of 1,25,000. Deficiency will be borne by A and B will be:

A. A 30,000 and B 30,000 B. A 43,750 and B 26,250

C. A 42,500 and B 42,500 D. A 35,000 and B 35,000

4. Bala and Lala were partners in a firm with Capitals of 24,00,000 and 16,00,000. They
admitted Mala as a new partner for 1/3 share for which Mala brings 20,00,000 as
capital. There was Investment and Investment Fluctuation Reserve appearing in the
books of 2,50,000 and 50,000 respectively. Bala took over 40% of the Investments at
80,000 and remaining Investments were valued at 1,10,000. By what amount
Revaluation account will be affected for the above information?

A. Debited 60,000 B. Credited with 60,000

C. Debited 10,000 D. Credited 10,000

5.Jai and Veeru were in a partnership sharing Profit &Loss in the ratio 5:3. Their Capitals
were 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 궧 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. 궧 18,00,000 D. Nil.

6.On 1st August, 2024 Tom, Jerry and Tyke entered into partnership with capitals of
5,00,000 each. Interest on Drawings was to be charged @ 6% p.a. For the year ended
March 31, 2025, Tyke withdrew 80,000. What amount of Interest on drawings will be
charged from Tyke?

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

7. A, B and C were partners sharing Profits &Losses in the ratio 7:2:1. B died. A took over
1/20 from his share and remaining share was taken over by C. Determine the new Profit
sharing Ratio.

A. 4 : 1 B. 7 : 1 C. 71 : 29 D. 3 : 1

8.X, Y and Z were partners sharing Profit & Losses in the ratio 5:3:2. Y retired, and he
gifted half of his 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.X, a partner was assigned to look after the dissolution process and was allowed
remuneration of 鈧 15,000. Actual realisation expenses amounted to 20,000, being paid
by another partner Y. By what amount Realisation account will be debited for the above-
mentioned information?
A. 20,000 B. 35,000 C. 5,000 D. 15,000

10. Arun and Barun were partners sharing Profits &Losses in the ratio 3:2. They
admitted Charan into partnership for 20% share. Charan was to bring proportionate
Capital and he brought 3,50,000 (including 50,000 for goodwill share) in firm. If adjusted
capital of Arun after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill
treatment was 8,40,000.

What was Barun’s Capital after Revaluation Gain/Loss, Accumulated Profits/Losses and

Goodwill treatment?

A. 5,60,000 B. 3,60,000 C. 12,00,000 D. 6,60,000

11.Raghav and Sahil were partners sharing Profit &Loss in the ratio 5:3. Their capital
balances were 7,20,000 and 2,80,000 respectively. There were balances of General
Reserve of 5,00,000 and Deferred Revenue Expenditure of 4,00,000 in the books of the
firm. They admitted Ojasv into partnership for 20% share for which he brings 4,00,000
as capital. Determine the goodwill share of Ojasv.

A. 5,00,000 B. 1,00,000 C. 1,20,000 D. 60,000

12. Building was appearing in the books at 20,00,000 which was overvalued by 25%.
What amount will be shown in the Balance Sheet of a reconstituted firm for building?

A. 25,00,000 B. 16,00,000 C. 24,00,000 D. 15,00,000

13.Arun, Basu and Tarun were partners sharing Profit &Loss in the ratio 5:3:2. Their firm
was dissolved 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 鈧 10,000 ; Debtors

40,000 ; Cash 20,000 ; Creditors 50,000 ; Arun Loan 60,000 ; Tarun 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

14.. John and Sourabh were partners sharing Profit &Loss equally. They decided to
share future 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.

15.________ is the basis of relationship between the partners to run the partnership business.

a) Agreement

b) Understanding

c) Offer

d) Acceptance

16.S and T were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted U
as a new partner in the firm. On U's admission there existed a provision for bad and doubtful debts
of 7,000. It was decided to write off 3,000 as bad debts. The remaining debtors were considered
as good. The amount to be debited/credited to Revaluation Account on account of the above
treatment will be:

a) Debit 3,000

b) Debit 7,000

c) Debit 4,000

d) Credit 4,000

17.Asha and Deepti were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their
fixed capitals were 3,00,000 and 2,00,000 respectively. They were entitled to interest on capital
@ 10% p.a. The firm earned a profit of 20,000 during the year. The amount of interest on capital
credited to Deepti will be:
a) 8,000

b) 12,000

c) 5,000

d) 20,000

18.Nidhi, Kunal and Kabir are partners in a firm sharing profits in the ratio of 2 : 1 : 2. Kunal
retired and the balance in his capital account after making necessary adjustments on account of
reserves, revaluation of assets and reassessment of liabilities was 80,000. Nidhi and Kabir agreed
to pay him 1,00,000 in full settlement of his claim. Kunal's share of goodwill of the firm, on his
retirement was:

a) 1,80,000

b) 16,000

c) 4,000

d) 20,000

19. Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of
3:2. Madhu withdrew 20,000 in each quarter during the year ended 31.03.2023. Interest on
drawings was to be charged @ 6% p.a. Interest on Madhu's drawings will be:

a) 1,800

b) 4,800

c) 3,000

d) 2,400

20. What is the average period for which interest on drawings will be calculated?

i. 3 months

ii. 6 months

iii. 9 months

iv. 12 months
21. Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio 3:1:1.
They admitted 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.

22. 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.

23. Hemant and Pankaj were partners sharing Profit & Loss in the ratio of 3:2. The firm
was dissolved on March 31, 2024 and the following balances were appearing in the
books of the firm.

a. Hemant’s Loan 80,000

b. Rub’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.

24. Ankur and Vikram were partners sharing Profits &Losses in the ratio 3:2. They
decided to share future Profits & Losses equally. On the date of reconstitution there was
Investment Fluctuation Reserve of 4,00,000 in the books of accounts. Pass entries in the
following cases

A. 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.

25. Prepare Common Size Statement of Profit and Loss for the year ended March 31,
2025

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)

26.Amit, Sumit and Pulkit were partners sharing Profit &Loss in the ratio 5:3:2. Their
Capitals were 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.

27.Complete the following Comparative Balance Sheet as at March 31, 2024 and Match
31, 2025

PARTICULARS 31/3/24 31/3/25 Absolute Change Percentage

Shareholders' Funds 6,00,000 ?? 3,00,000 ??
Non-current Liabilities 3,00,000 ?? NIL ??

Current Liabilities ?? 3,00,000 2,00,000 ??

TOTAL ?? ?? ?? ??

Non-current Assets 7,00,000 ?? ?? 50

Current Assets ?? ?? ?? ??

TOTAL ?? ?? ?? ??

28.Yogesh, Ram and Rohit are partners. Each partner regularly withdrew 20,000 per month as
given below:

a. Yogesh withdrew in the beginning of the month;

b. Ram withdrew in the middle of the month; and

c. Rohit withdrew at the end of the month.

Interest on drawings charged for the year ended 31st March, 2023 was 15,600, 14,400 and 13,200
respectively. Determine the rate of interest charged on drawings.

29.On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of 6,00,000,
6,00,000 and 3,00,000 respectively. The partnership deed provided for the following:

i. Interest on capital @ 10% per annum.

ii. Interest on drawings @ 12% per annum.

iii. An annual salary of 1,20,000 to Avi.

iv. Profits and losses were to be shared in the ratio of their capitals. The net profit of the firm for
the year ended 31.03.2023 was 3,08,000. Interest on partners' drawings was Ravi 4,800, Kavi
4,200 and Avi 3,000.

Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended
31.03.2023.
30.Alok, Deepak and Manish were partners sharing Profit &Loss in the ratio 5:3:2.
Deepak retired 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.

31.Dhwani and Iknoor were partners sharing Profits & Losses in the ratio 3:2. Their
Balance Sheet on 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

Reserve 50,000

Debtors 80,000

(-) Prov for Debts (8,000) 72,000

Employee Provident Fund 50,000

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:-

a) Bad Debts amounted to ₹ 5,000 and Provision for doubtful debts to be created at
same existing rate.

b) Investments were valued at ₹ 1,00,000.

c) Accrued Income was recovered only of ₹ 14,500 in settlement.

d) Building was overvalued by 20%.

e) 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.

32.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 Comp Reserve 50,000 Debtors 50,000

AccDepreciation 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
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.

33.

Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4: 3: 3. The firm was dissolved
on 31-3-2018. Pass the necessary Journal entries for the following transactions after various assets
(other than cash and bank) and third party liabilities had been transferred to Realisation Account:
(i) The firm had stock of * 80,000. Ankit took over 50% of the stock at a discount of 20% while the
remaining stock was sold off at a profit of 30% on cost.
(i) A liability under a suit for damages included in creditors was settled at 7 32,000 as against only
13,000 provided in the books. Total creditors of the firm were 50,000.
(i) Bobby's sister's loan of * 20,000 was paid off along with interest of 2,000. (iv) Kartik's Loan of 7
12,000 was settled at 12,500.

34. Girija, Yatin and Zubin were partners sharing profits in the ratio 5: 3: 2. Zubin died on 1st August,
2015. Amount due to Zubin's executor after all adjustments was & 90,300. The executor was paid 7
10,300 in cash immediately and the balance in two equal annual instalments with interest @ 6% p.a.
starting from 31st March, 2017. Accounts are closed on 31st March each year.
Prepare Zubin's Executors Account till he is finally paid.