SAMPLE QUESTION PAPER (2021-22)
ACCOUNTANCY (055)
TERM II
CLASS 12
Time: 2 Hrs Max. Marks: 40
GENERAL INSTRUCTIONS
1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All questions are compulsory.
2. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
3. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
4. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
5. There is no overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.
PART A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)
Short Answer (SA) Type I Questions (2 Marks)
1. A, B, C and D are partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3 respectively. A retires and B, C and D decided to share the future profits in the ratio of 1 : 2: 3. Goodwill of the firm is valued at ₹5,40,000.
Pass the necessary journal entry to record goodwill.
2. Distinguish between ‘dissolution of partnership’ and ‘dissolution of partnership firm’ on the basis of meaning and nature.
3. A, B, C were partners in a firm sharing profits in 2 : 2: 1 ratio. The firm closes its book on 31st March every year. A died 3 months after the last accounts were prepared.
On death of a partner, his share of profit in the year of death was to be calculated on the basis of average profits of the last four years.
The profits of last four years were
I. ₹2,00,000 II. ₹1,80,000
III. ₹2,10,000 IV. ₹1,70,000 (Loss)
Calculate A’s share of profits.
Short Answer (SA) Type II Questions (3 Marks)
4. Ajay, Pranav and Vijay are in partnership sharing profits in the ratio of 4 : 3 : 1. Pranav takes retirements on 30th June, 2019. The firm’s profits for various years were 2014 (profits ₹3,24,444), 2015 (profits ₹80,000), 2016 (profits ₹10,000), 2017 (losses ₹10,000), 2018 (profits ₹40,000) and 2019 (profits ₹50,000). Ajay and Vijay decided to share future profits in the ratio of 3:2. Goodwill is to be valued on the basis of 2 years’ purchase of average profit of 4 completed years immediately preceding the year of retirement of a partner. Pass the journal entry to record Pranav’s share of goodwill.
OR
Manish, Nirjhar and Kshitij are partners with ratio of 5 : 3 : 2
Additional Information:
(i) Manish takes retirement
(ii) New ratio of Nirjhar and Kshitij is 1 : 1 and goodwill of the firm is valued at ₹60,000.
(iii) Expenses owing increased by ₹10,000
(iv) Creditors increased to ₹1,05,000
(v) ₹10,000 bills receivable dishonoured and are not recoverable.
(vi) Patents are now value less.
(vii) ₹20,000 unrecorded investment brought into books.
Prepare revaluation account.
5. Pass the necessary journal entries for the following transactions on the dissolution of the firm of A, B and C (who were sharing profits in the ratio of 4 : 3 : 3) after the transfer of all assets (other than cash) and external liabilities to realisation account.
(i) A one of the partners was to bear all the realisation expenses for which he was given a commission of 2% of net cash realised from dissolution.
Cash realised from assets was ₹25,000 and cash paid for liabilities amounted to ₹5,000. Expenses of realisation ₹1,000 paid by A.
(ii) Commission received in advance ₹1,000 was returned to customers after deducting ₹200.
(iii) There was a bill for ₹1,000 under discount. The bill was received from X who proved insolvent and a first and final dividend of 25% was received from his estate.
OR
Sita, Reeta and Geeta are partners in a firm sharing profits and losses in the ratio 4 : 3 : 1. As per the terms of partnership deed, on the death of any partner, goodwill was to be valued at 50% of the net profits credited to that partner’s capital account during the last three completed years before her death. Sita died on 28th February, 2019. The profits for the last five years were 2014 – ₹60,000, 2015 – ₹97,000, 2016 – ₹1,05,000, 2017 – ₹30,000 and 2018 – ₹84,000.
On the date of Sita’s death, building was found undervalued by ₹80,000, which was to be considered. Calculate amount of Sita’s share of goodwill in the firm and complete the following journal entries. The new profit sharing ratio between Reeta and Geeta will be equal.
6. Ultimate Ltd. purchased machinery from Evergreen Ltd. for ₹10,00,000 to start a business of manufacturing low cost school dresses for children belonging to low income group. It made the payment as follows:
₹7,00,000 cheque, 3,000, 10% debentures of ₹100 each at par. You are required to pass the journal entries for the transactions.
Long Answer (LA) Type Questions (5 Marks)
7. From the following receipts and payments account and information given below, prepare income and expenditure account and balance sheet of Adult Literacy Organisation as on 31st December, 2020.
Additional Information
(i) Subscription outstanding as on 31st December, 2019, ₹2,000 and on 31st December, 2020, ₹1,500.
(ii) On 31st December, 2020, salary outstanding ₹600 and one month rent paid in advance.
(iii) On 1t January, 2020, organisation owned furniture ₹12,000, books ₹5,000
8. ‘ABC Pvt. Ltd. Company’ issued 50,000, 10% debentures of ₹100 each at 10% premium to the public on 1st April, 2019, which are redeemable after 5 years of issue at a premium of 20%. Pass journal entries for issue of debentures and writing-off ‘loss on issue of debentures’ in the same year of issue. Also, prepare ‘loss on issue of debentures account.’
OR
Pass the necessary journal entries for issue of debentures in the following cases
(i) Krishna Ltd. issued 2,000, 12% debentures of ₹10 each to the public at a premium of 10%. These debentures are redeemable after 5 years at a premium of 20%.
(ii) Krishna Ltd. issued 2,000, 12% debentures of ₹10 each to the public at a discount of 10%. These debentures are redeemable after 5 years at par.
(iii) Krishna Ltd. issued 2,000, 12% debentures of ₹10 each to the public at a premium of 10%. These debentures are redeemable after 5 years at par.
9. Following is the receipts and payments account of Star Literary Club for the year ended on 31st March, 2020.
Additional Information
(i) On 1st April, 2019, buildings stood in the books at ₹60,000 and investments in shares at ₹6,000. Buildings are subject to depreciation @5% p.a.
(ii) There were 200 members paying subscription at the rate of ₹300 p.a. each. Some members have paid their annual subscription in advance during the year.
(iii) As on 1st April, 2019, no subscription had been received in advance but subscriptions were outstanding to the extent of ₹1,200 as at 31st March, 2019. Subscription accrued as on 31st March, 2020 was ₹1,800.
(iv) Postage stamps worth ₹300 were in stock with secretary as on 1st April, 2019 and as on 31st March, 2020, they were valued at ₹180
(v) Telephone charges paid in advance were ₹360.
You are required to prepare the income and expenditure account for the year ended on 31st march, 2020 and the balance sheet as at that date.
PART B
(Analysis of Financial Statements)
Short Answer (SA) Type I Question (2 Marks)
10. State whether the following transactions will result in inflow, outflow or no flow of cash while preparing cash flow statement
(i) Deposit of cash into bank
(ii) Depreciation charged by a company.
Short Answer (SA) Type II Question (3 Marks)
11. Prepare common size statement of profits and loss from the following information
OR
From the following information, prepare comparative statement of profit and loss.
Long Answer (LA) Type Question (5 Marks)
12. From the following balance sheet of Vikas Ltd. as on 31st March, 2019 and 2020, prepare a cash flow statement.
Additional Information
(i) Depreciation charged on fixed assets for the year 2019-20 was ₹20,000.
(ii) Income tax ₹5,000 has been paid during the year.