Class XII – Accountancy Sample Paper 3

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1. Leela and Meeta were partners in a firm sharing profits and losses in the ratio of 7:3. Geeta was admitted as a new partner for a 3/13th share in the profits of the firm. The new profit-sharing ratio will be:

(A) 7:3:7

(B) 7:3:3

(C) 3:7:7

(D) 1:1:1

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2. Assertion (A): The treatment of revaluation of assets and reassessment of liabilities is done in same manner as done in case of change in profit sharing ratio.

Reason (R): Revaluation of assets and liabilities is done only when the new partner is admitted.

(A) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(C) Assertion (A) is correct but Reason (R) is incorrect.

(D) Assertion (A) is incorrect but Reason (R) is correct.

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3. Vanya Ltd. forfeited 20,000 equity shares of ₹100 each for non-payment of first and final call of ₹40 per share. The maximum amount of discount at which these shares can be re-issued will be:

(A) ₹8,00,000

(B) ₹12,00,000

(C) ₹20,00,000

(D) ₹20,000

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OR

A company forfeited 4,000 shares of ₹10 each on which application money of ₹3 has been paid. Out of these 2,000 shares were reissued as fully paid up and ₹4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued:

(A) ₹10 per share

(B) ₹9 per share

(C) ₹11 per share

(D) ₹8 per share

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4. X and Y are partners in a firm with capital of ₹1,80,000 and ₹2,00,000. Z was admitted for 1/3rd share in profits and brings ₹3,40,000 as capital. Calculate the amount of goodwill:

(A) ₹2,40,000

(B) ₹1,00,000

(C) ₹1,50,000

(D) ₹3,00,000

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OR

Sun and Star were partners in a firm sharing profits in the ratio of 2:1. Moon was admitted as a new partner in the firm. New profit-sharing ratio was 3:3:2. Moon brought the following assets towards his share of goodwill and his capital:

If his capital is considered as ₹3,80,000, the goodwill of the firm will be:

(A) ₹70,000

(B) ₹2,80,000

(C) ₹4,50,000

(D) ₹1,40,000

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5. After the new partnership agreement, when preparing the balance sheet, assets and liabilities should be recorded at:

(A) Historical cost

(B) Current cost

(C) Realisable value

(D) Revalued figures

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6. Star Ltd. forfeited 1,000 shares of ₹10 each (which were issued at par) of Jeevan, a shareholder of the company, for non-payment of allotment money of ₹4 per share. The called-up value per share was ₹7. On forfeiture, the amount debited to share capital account is:

(A) ₹3,000

(B) ₹7,000

(C) ₹4,000

(D) ₹10,000

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OR

Once forfeited shares are reissued, balance of share forfeiture money will be transferred to:

(A) General Reserve

(B) Capital Reserve

(C) Reserve Capital

(D) Securities Premium Reserve

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7. Assertion (A): Shares in a company are fractional portions of the share capital and serve as the basis for ownership interests.

Reason (R): The total share capital of a company is divided into units known as shares.

(A) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(C) Assertion (A) is correct but Reason (R) is incorrect.

(D) Assertion (A) is incorrect but Reason (R) is correct.

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8. A and B are partners sharing profits and losses in the ratio of 5: 3. On admission, C brings ₹70,000 as cash and ₹43,000 against Goodwill. New profit ratio between A, B and C is 7:5:4. The sacrificing ratio of A and B is:

(A) 3:1

(B) 1:3

(C) 4:5

(D) 5:9

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OR

Anant and Bhanu are equal partners in a firm. They admitted Charu as 1/6 partner who brought in ₹1,00,000 as goodwill. The new profit sharing ratio is 3:2:1. If goodwill of ₹1,00,000 is to be paid to the old partners as per sacrificing ratio, Bhanu will receive:

(A) ₹30,000

(B) ₹40,000

(C) ₹4,00,000

(D) Nil

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Read the following hypothetical situation, answer question no. 9 and 10.

A and B are partners sharing profits in the ratio of 2:5. They admit C on the condition that he will bring in ₹14,000 as his share of goodwill in cash to be distributed between A and B. C’s share in the future profits or losses will be 1/4th.

9. What will be the new profit-sharing ratio?

(A) 6:15:7

(B) 2:5:1

(C) 6:15:3

(D) 1:1:1

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10. What amount of goodwill brought in by C will be received by A:

(A) ₹14,000

(B) ₹4,000

(C) ₹10,000

(D) ₹20,000

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11. Which of the following is not incorporated in the Partnership Act:

(1) profit and loss are to be shared equally.

(2) no interest is to be charged on capital.

(3) all loans are to be charged interest @6% p.a.

(4) all drawings are to be charged interest.

(A) (1) and (2) only

(B) (3) and (4) only

(C) (2) only

(D) (4) only

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12. Oraino Ltd. earned a profit of ₹4,00,000 during the year ending on 31st March, 2016. 15% of this profit was to be transferred to general reserve. The necessary journal entry for the same will be:

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13. Kavya Ltd. Forfeited 1,000 equity shares of ₹10 fully called-up, held by Mr. Ram for non-payment of first call of ₹5 and final of ₹3 each. However, he paid application money @ ₹2 per share. These shares were reissued at ₹10 each. On reissue, amount to be transferred to Capital Reserve Account will be _________

(A) ₹3,000

(B) ₹5,000

(C) ₹1,000

(D) ₹2,000

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OR

A company forfeited 4,000 shares of 10 each which were issued at par, held by A for non-payment of allotment money of 14 per share. The called-up value per share was 9. On forfeiture, the amount debited to share capital is:

(A) ₹20,000

(B) ₹16,000

(C) ₹36,000

(D) ₹4,000

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14. A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounts to ₹8,250. Drawings of B were:

(A) ₹12,000 p.m.

(B) ₹10,000 p.m.

(C) ₹9,000 p.m.

(D) ₹8,000 p.m.

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15. K and L sharing profits in the ratio of 7:3 admit M on 3/7 share in the new firm which he takes 2/7 from K and 1/7 from L. The new ratio of K, L and M will be ____________

(A) 7:3:3

(B) 4:3:2

(C) 14:6:15

(D) 29:11:30

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16. John, Alex, and Ben are partners in the ratio of 6:4:1 in the firm. John has guaranteed Ben for his minimum profit of ₹15,000. Firm’s profit was ₹99,000. In the firm’s profit, John’s share will be:

(A) ₹30,000

(B) ₹15,000

(C) ₹48,000

(D) ₹45,000

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17. Aman, Barua and Zaid are partners sharing profits in the ratio of 5:3:2. They decide to share future profits in the ratio of 2:3:5 with effect from 1st April, 2018. They also decide to record the effect of following revaluation without affecting the book values of assets and liabilities, by passing single adjusting entry:

Pass the necessary single adjusting journal entry.

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18. Karan draws ₹2,000 per month. Under the Partnership Deed, interest on drawings is to be charged @ 15% p.a. Calculate interest that should be charged to the partner if the drawings are made:

(i) in the beginning of the month,

(ii) in the middle of the month, or

(iii) at the end of the month.

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OR

Ram and Mohan are partners in a business. Their capitals at the end of the year were ₹24,000 and ₹18,000 respectively. During the year, Ram’s drawings and Mohan’s drawings were ₹4,000 and ₹6,000 respectively. Profit (before charging interest on capital) during the year was ₹16,000. Calculate interest on capital @ 5% p.a. for the year ended 31st March, 2018.

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19. Random Ltd. took over the running business of Mature Ltd. comprising of Assets of ₹45,00,000 and Liabilities of ₹6,40,000 for a purchase consideration of ₹36,00,000. The amount was settled by bank draft of ₹1,50,000 and balance by issuing 12% preference shares of ₹100 each at 15% premium. Pass entries in the books of Random Ltd.

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OR

AH Ltd. forfeited 500 shares of ₹10 each on which first call of ₹3 per share was not received, the second and final call of ₹2 per share has not yet been called. Out of these 125 shares were re-issued to I as ₹8 paid-up for ₹7 per share. Calculate profit on re-issue of shares.

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20. Profits and Losses for the last years are:

The average capital employed in the business is ₹2,00,000. The rate of interest expected from capital invested is 12%. Calculate the value of goodwill on the basis of four years’ purchase of super-profits.

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21. Sharma Ltd. has authorised share capital of ₹1,00,00,000 divided into 1,00,000 equity shares of ₹100 each. It has existing issued and paid-up capital ₹25,00,000. It further issued to public 25,000 equity shares at a premium of 20% for subscription payable as under:

On application: ₹30

On allotment: ₹60

On call: balance amount

The issue was fully subscribed and allotment is made to all applicants. The company didn’t make the call during the year. Show share capital of the company in the balance sheet of the company.

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22. Pass necessary Journal entries on the dissolution of a firm in the following cases:

(A) Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of ₹12,000 and he had to bear the dissolution expenses. Dissolution expenses ₹11,000 were paid by Dharam.

(B) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of ₹15,000. Jay agreed to bear dissolution expenses. ₹16,000 were paid by Vijay another partner on behalf of Jay.

(C) Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of ₹7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses ₹6,000 were paid from the firm’s bank account.

(D) Dev, a partner, agreed to do the work of dissolution for ₹7,500. He took away stock of the same amount as his commission. The stock had already been transferred to Realisation Account.

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23. A company issued 10,000 shares of the value of ₹10 each, payable ₹3 on application, ₹3 on allotment and ₹4 on the first and final call. All amounts are duly received except the call money on 100 shares. These shares are subsequently forfeited by directors and are resold as fully paid-up for ₹500. Give necessary journal entries for the transactions.

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OR

A company issued 10,000 equity shares of ₹10 each at a premium of ₹3 per share payable ₹5 on application, ₹5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.

Pass necessary journal entries to record the above.

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24. X and Y are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as at 31st March, 2019 was as follows:

On 1st April, 2019, they admitted Z as a partner for 1/6th share on the following terms:

(i) Z brings in ₹40,000 as his share of capital but he is unable to bring any amount for Goodwill. (ii) Claim on account of Workmen Compensation is ₹3,000.

(iii) To write off Bad Debts amounting to ₹6,000.

(iv) Creditors are to be paid ₹2,000 more.

(v) There being a claim against the firm for damages, liabilities to the extent of ₹2,000 should be created.

(vi) Outstanding rent be brought down to ₹11,200.

(vii) Goodwill is valued at 1.5 years’ purchase of the average profits of last 3 years, less ₹12,000. Profits for the last 3 years amounted to ₹10,000; ₹20,000 and ₹30,000.

Pass Journal entries.

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OR

Following is the Balance Sheet of Prateek, Rockey and Kushal as on March 31, 2017.

Rockey died on June 30, 2017. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:

(i) Amount standing to the credit of the Partner’s Capital Account.

(ii) Interest on capital at 5% per annum.

(iii) Share of goodwill on the basis of twice the average of the past three years’ profit.

(iv) Share of profit from the closing date of the last financial year to the date of death on the basis of last year’s profit.

Profits of the year ending on March 31, 2015, March 31, 2016 and March 31, 2017 were ₹12,000, ₹16,000 and ₹14,000 respectively. Profits were shared in the ratio of capitals.

Pass the necessary journal entries and draw up Rockey’s Capital A/c to be rendered to his executor.

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25. Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of 1/2, 1/6 and 1/3 respectively. The Balance Sheet on April 1, 2015 was as follows:

Bajaj retires from the business and the partners agree to the following:

(i) Freehold premises and stock are to be appreciated by 20% and 15% respectively.

(ii) Machinery and furniture are to be depreciated by 10% and 7% respectively.

(iii) Bad Debts reserve is to be increased to ₹1,500.

(iv) Goodwill is valued at 21,000 on Bajaj’s retirement.

(v) The continuing partners have decided to adjust their capitals in their new profit sharing ratio after retirement of Bajaj.

Surplus/deficit, if any, in their capital accounts will be adjusted through current accounts.

Prepare necessary ledger accounts and draw the Balance Sheet of the reconstituted firm.

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26. On 1st May, 2016 VKR Ltd. issued 10,000, 9% Debentures of 100 each at a discount of 10%, redeemable at par after five years. All the debentures were subscribed. It has a balance of ₹60,000 in Securities Premium Reserve which the company decided to use for writing-off the losses and also decided to write-off the remaining discount on issue of debentures.

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SECTION – B

(Analysis of Financial Statement)

27. Which of the following items is not taken into account when computing current ratio:

(A) Sundry Debtors

(B) Sundry Creditors

(C) Bank Overdraft

(D) Furniture

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OR

Which of the following are the limitations of financial analysis:

(i) Financial analysis does not consider price level.

(ii) Financial analysis is just a study of interim reports.

(iii) Financial analysis may be leading with the knowledge of the changes in accounting procedure followed by a firm.

(iv) Financial statements are prepared on the basis of going concern concept.

(A) Both (i) and (ii)

(B) Both (ii) and (iii)

(C) Both (iii) and (iv)

(D) Both (i) and (iv)

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28. Higher debt equity ratio (Debt/Equity) results in ______________

(A) Low financial risk

(B) High degree of operating risk

(C) High degree of financial risk

(D) High EPS

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29. Statement I: Bills receivables endorsed to creditors indicates neither an inflow nor an outflow.

Statement II: Cash receipts from royalties, fees, commissions and other revenues are considered as cash inflows from operating activities.

(A) Both statements are correct.

(B) Both statements are incorrect.

(C) Statement I is correct and statement II is incorrect.

(D) Statement I is incorrect and statement II is correct.

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OR

What items should be considered as cash outflows from operating activities?

(A) Cash payments to suppliers for goods and services.

(B) Cash payments to and on behalf of the employees.

(C) Cash payments to an insurance enterprise for premiums and claims, annuities, and other policy benefits.

(D) All of the above

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30. From the following information calculate the amount of cash flows from Investing Activities:

Additional Information:

During the year machine of the book value of ₹80,000 was sold for ₹50,000.

(A) Outflow of ₹2,30,000

(B) Inflow of ₹2,30,000

(C) Outflow of ₹2,80,000

(D) Inflow of ₹2,80,000

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31. Classify the following items under Major heads and Sub heads (if any) in the balance sheet of a company as per schedule III of the Companies Act, 2013.

(i) Trade Marks

(ii) Long-term Provisions

(iii) Provision for Retirement Benefits

(iv) Calls-in-Advance

(v) Bank Overdraft

(vi) Computer Software

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32. Calculate current ratio and liquid ratio from the following information:

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33. From the following information extracted from the Statement of Profit & Loss for the years ended 31^st March, 2017 and 2018, prepare a Comparative Statement of Profit & Loss:

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OR

Prepare a Common-size Statement of Profit & Loss of ‘Hari Darshan Ltd.’ From the following information:

Additional Information:

(i) Depreciation on Fixed Assets for the year 2017-2018 was ₹14,700.

(ii) An interim dividend ₹7,000 has been paid to the shareholders during the year.

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