OLIVE INTERNATIONAL SCHOOL, QATAR
Academic Year 2024– 2025
PRE-BOARD REVISION SERIES - I
ACCOUNTANCY (055)
Grade : 12
Date : 24.10.2024 Submission Date : 03/11/2024
QUES MARKS
NO
1 Ishu, Vishu and Nishu are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their 1
fixed capitals were ₹1,50,000, ₹3,00,000 and ₹6,00,000 respectively. After the final accounts
have been prepared it was discovered that interest on capital was credited to them @ 12%
instead of 10%.
(A) Nishu’s Current A/c will be Debited by ₹1,500.
(B) Nishu’s Current A/c will be Credited by ₹1,500.
(C) Nishu’s Capital A/c will be Credited by ₹1,500.
(D) Nishu’s Capital A/c will be Debited by ₹1,500.
2 If there exist insufficient profits for appropriations, the available profit is distributed in: 1
(A) Profit-sharing ratio (B) Appropriation ratio (C) Capital ratio (D) Equally
3 The journal entry for transfer of profits to reserves will be: 1
(A) Reserves A/C ……Dr. To Profit & Loss Appropriation A/C
(B) Reserves A/C ……Dr. To Profit & Loss A/C
(C) Profit & Loss Appropriation A/C ……Dr. To Reserves A/C
(D) Profit & Loss A/C ……Dr. To Reserves A/C
4 Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager 1
who received the salary of ₹ 4,000 p.m. in addition to a commission of 5% on net profits after
charging such commission. Profit for the year is ₹ 6,30,000 before charging salary. Find the total
remuneration of Meeta.
(A) ₹78,000 (B) ₹88,000 (C) ₹87,000 (D) ₹76,000
5 A partnership firm earned divisible profit of ₹ 5,00,000, interest on capital is to be provided to 1
partner is ₹3,00,000, interest on loan taken from partner is ₹50,000 and profit-sharing ratio of
partners is 5:3. Sequence the following in correct way:
A. Distribute profits between partners
B. Charge interest on loan to Profit and Loss A/c
C. Calculate the net profit Transfer to Profit and Loss appropriation A/C.
D. Provide interest on capital
6 Match the following: 1
7 Revenue from operations is ₹ 60, 00,000; other income is 15% of Revenue from operations, 1
Expenses are 60% of Revenue from operations and tax rate is 40%. Amount of profit after tax
will be.
a) ₹ 14,40,000 b) ₹ 19,80,000 c) 13,80,000 d) ₹ 16,56,000
8 Which of the following are the tools of vertical analysis? 1
i) Ratio Analysis ii) Comparative Statements iii) Common size Statements
a) Only iii b) Both i & iii c) Both i & ii d) Only i
9 Name the sub head under the head ‘Non-Current Liabilities’. 1
i) Long term borrowings ii) Deferred tax liabilities iii) Short term borrowings iv) Trade payables
a) ii and iv b) only i c) i and ii d) only iv
10 Financial statements are prepared on certain basic assumptions (pre-requisites) known 1
as___________.
11 A company has an operating cycle of eight months. It has account receivables amounting to ₹ 1
1,00,000 out of which ₹ 60,000 have a maturity of 11 months. How would this information be
presented in the Balance sheet?
a) ₹ 40,000 as Current Assets and ₹ 60,000 as Non-Current Assets
b) ₹ 60,000 as Current Assets and ₹ 40,000 as Non-Current Assets
c) ₹ 1,00,000 as Non-Current Assets
d) ₹ 1,00,000 as Current Assets
12 ‘Calls in Advance’ is shown in the company’s Balance Sheet under the head 1
a) Non-current Asset b) Current liabilities c) Shareholders’ Funds d) Non-Current liabilities
13 A , B and C are partners sharing profits in the ratio 4:3:1.The partners agreed to share future 1
profits in the ratio of 5:4:3. Calculate each partners gain or sacrifice due to change in ratio.
14 A and B are partners sharing profit in the ratio of 3:2.they admit C into partnership. C pays a 1
premium of Rs 1000 for 1/4th share of profit. The new ratio is 3:3:2.goodwill a/c appears in the
books at Rs 1000. Give necessary journal entry
15 The ratio in which the old partners are surrendering their share of profits in favour of the new 1
partner is called……………………
16 K, N and A were partners in a firm sharing profits and losses in the ratio 3:2:1. At the time of 3
admission of a partner, the goodwill of the firm was valued at Rs.4,00,000. The accountant of
the firm passed the entry in the books of accounts and thereafter showed goodwill at
Rs.4,00,000 as an asset in the Balance Sheet. Was he correct in doing so? Why?
17 Write the journal entries for the following accounting treatment of goodwill in different cases: 3
1.Goodwill paid privately
2.Goodwill brought in cash and Distribution of Goodwill
3.Goodwill withdrawn by the sacrificing partners
4.Goodwill not brought in cash
5.Goodwill brought in kind
18 From the information extracted from the statement of Profit & Loss of AXN Ltd. for the year 3
ended 31st March 2022 and 31st March 2023, prepare a Common - Size Statement of Profit and
Loss:
19 Following information is extracted from the statement of profit & loss of Crypto finance Ltd. for 3/4
the years ended 31.03.2023 and 31.03.2024 fill in the missing figures.
20 From the following information provided, prepare a comparative statement for the period 2008 3/4
and 2009.
21 D, S and M are partners sharing profits and losses in the ratio of 3:2:1. With effect from 1st April, 3
2022 they agree to share profits equally. For this purpose, goodwill is to be valued at two year’s
purchase of the average profit of last four years which were as follows: Year ending on 31st
March,2019 ₹ 50,000 (Profit) Year ending on 31st March,2020 ₹ 1,20,000 (Profit) Year ending on
31st March,2021 ₹ 1,80,000 (Profit) Year ending on 31st March,2022 ₹ 70,000 (Loss) On 1st
April, 2021 a Motor Bike costing ₹ 50,000 was purchased and debited to travelling expenses
account, on which depreciation is to be charged @ 20% p.a by Straight Line Method. The firm
also paid an annual insurance premium of ₹ 20,000 which had already been charged to Profit
and Loss Account 3 for all the years. Calculate the amount of Goodwill.
22 A business has earned average profits of ₹1,00,000 during the last few years and the normal rate 4
of return in similar business is 10%.
Find out the value of goodwill by (i) Capitalisation of super profit method. (ii) Super profit
method, if the goodwill is valued at 3 years’ purchase of super profit. The assets of the business
were ₹10,00,000 and its external liabilities ₹1,80,000.
23 Prepare Common Size Statement of Profit and Loss from the following information of Ama Ltd. 4
for the year ended March 31st 2023.
24 Find the heads and sub-heads under which the following items will appear in the balance sheet 3/4
of a company as per Schedule III, Part I of Companies Act, 2013?
a) Furniture and Fixture;
b) Advance paid to contractor for building under construction
c) Accrued Income
d) Loans repayable on demand to Bank
e) Employees earned leaves cashable
f) Employees earned leaves payable on retirement
25 Under which major heads and sub heads the following items be placed in the Balance sheet of a 3/4
company as per Schedule III, part I of the Companies Act, 2013?
i) Securities Premium
ii) Sundry Debtors
iii) Cash and Bank balance
iv) Provision for Employees Benefit
v) Negative Balance in Statement of Profit & Loss
vi) Bank Overdraft
vii) Mining Rights
viii) Trade Marks
26 David and John were partners in a firm sharing profits in the ratio of 4 : 1. Their capitals on 4
1.4.2006 were : David Rs.2,50,000 and John Rs.50,000. The partnership deed provided that
David will get a commission of 10% on the net profit after allowing a salary of Rs.2,500 per
month to John. The profit of the firm for the year ended 31.3.2007 was Rs.1,40,000. Prepare
Profit and Loss Appropriation Account for the year ended 31.3.2007.
27 Calculate interest on A’ drawing: 4
(1) If he has withdrawn 60,000 on 1stoct. 2006 and the rate of interest on drawing is 8% per
annum.
(2) If he has withdrawn 60,000 on 1stoct. 2006 and the rate of interest on drawing is 8% .
Books are closed on 31st march 2023.
28 X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3:2:1. X retires from the 4
firm on 1st April2015.On the date of Z’s retirement, following balances appeared in the books of
the firm: GeneralReserveRs.90,000; Profit and loss Account (Dr.) Rs.15,000;
Workmencompensation Reserve Rs, 12,000 which was no more required. Pass journal Entries for
the adjustment of these items on Z’s retirement
29 Fill in the blanks in the following journal, where R and L are partners in the firm at the time of 4
dissolution:
30 A , B and C are partners with fixed capitals of ₹ 1,00,000 , ₹200,000 and ₹3,00,000 respectively. 6
Their partnership deed provides that :
(a) A is to be allowed a monthly salary of ₹ 600 and B is to be allowed a monthly salary of ₹400.
(b) C will be allowed a commission of 5% of the net profit after allowing salaries of A and B.
(c) Interest is to be allowed on capitals @ 6%.
(d) Interest will be charged on partners annual drawings at 4%.
(e) The annual drawings were :B ₹10,000 and C ₹15,000.
The net profit for the year ending 31st march, 2014 amounted to ₹1,72,000.
Prepare P&L Appropriation account.
31 The balance Sheet of Madan and Mohan who share profits and losses in the ratio of 3:2, on 31st 6
March, 2010 was as follows: Balance Sheet (as on 31st March , 2010)
They decided to admit Gopal on 1st April, 2010 for 1/4th share on the following terms:
(i) Gopal shall bring Rs. 25000 as his share of Premium for Goodwill.
(ii) That unaccounted accrued income of Rs. 500 be provided for.
(iii) An Unrecorded typewriter was sold for Rs. 800.
(iv) The market value of Investments was Rs. 45000.
(v) A claim of Rs. 2000 on account of Workmen compensation to be provided for.
(vi) Patents are undervalued by Rs. 5000.
(vii) Gopal to bring in capital equal to 1/4th of the total capital of the new firm after all
adjustments.
Prepare the Revaluation account and Partner’s Capital account.
32 X, Y and Z are partners sharing profits in the ratio of 5:3:2. On 31-03-2014 the Balance Sheet of 6
the firm stood as under : Balance Sheet (As on March 31,2014)
Additional information :-
(i)B retires on the same day. The goodwill be valued at Rs.75,000.
(ii)The fixed assets be appreciated by 20%; that stock be reduced to Rs.50,000.
Give the necessary Ledger accounts and balance sheet of the firm after Z’s retirement.
33 You are given the B/S of A,B& C who sharing P&L in the ratio of 2:2:1. As at 31st march 2007. 6
B died on June 15, 2007. According to the deed , his legal representative are entitled to ;
(a) Balance in capital a/c.
(b) Share of goodwill valued on the basis of thrice the average profits of past 4 years.
(c) Share in profit up to the date of death on the basis of average profits for the past 4 year.
(d) Interest on capital @ 12% p.a. Profits for the year ending on march 31 of
2004,2005,2006,2007 were Rs. 15,000; ₹17,000; ₹19,000 and ₹13,000 respectively.
B’s legal representative were to be paid the amount due. A and C continue as equal partners.
Prepare B’s capital a/c and executors a/c.
34 P,Q and R sharing P&L in the ratio of 5:3:2. They decided to dissolve the firm on 31/03/2013 6
Their balance sheet as on date
An unrecorded assets is taken by P at ₹5,000. Investment are taken by Q at 10% ₹7,800 ,
machinery ₹20,500.expenses on realization amounted to ₹500 are met by R.
Close the books of the firm giving relevant ledger.
35 Asha and Babli are partners sharing profits and losses equally. They decided to dissolve their 6
firm. Assets and Liabilities have been transferred to Realisation Account. Pass necessary Journal
entries for the following.
a) Asha was to bear all the expenses of Realisation for which he was given a commission of
₹ 4000.
b) Advertisement suspense account appeared on the asset side of the Balance sheet amounting
₹ 28000
c) Creditors of ₹ 40,000 agreed to take over the inventory of ₹ 30,000 at a discount of 10% and
the balance in cash.
d) Babli agreed to take over Investments of ₹ 5000 at ₹ 4900
e) Loan of ₹ 15000 advanced by Asha to the firm was paid off.
f) Bank loan of ₹ 12000 was paid off.
36 Rashmi and Pooja are partners in a firm. They share profits and losses in the ratio of 2:1. They 6
admit Santosh into partnership firm on the condition that she will bring ₹ 30,000 for Goodwill
and will bring such an amount that her capital will be 1/3 of the total capital of the new firm.
Santosh will be given 1/3 share in future profits. At the time of admission of Santosh, the
Balance Sheet of Rashmi and Pooja was as under:
It was decided to:
Revalue inventory at ₹ 45,000.
Depreciated furniture by 10% and machinery by 5%.
Make provision of ₹ 3,000 on sundry trade receivable for doubtful debts.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new firm.
Give full workings.
37 X and Y are partners as they share profits in the proportion of 3:1 their balance sheet as at 6
31.03.14 as follows.
BALANCE SHEET
On the same date, Z is admitted into partnership for 1/5th share on the following terms
* Goodwill is to be valued at 3½ years purchase of average profits of last for year which was ₹
20,000 ₹ 17,000 ₹ 9,000 (Loss) respectively.
* Inventory is fund to be overvalued by ₹ 2,000 Furniture is reduced and Land to be appreciated
by 10% each, a provision for Bad Debts @ 12% is to be created on Trade receivable and a
Provision of Discount of Creditors @ 4% is to be created.
* A liability to the extent of ₹ 1,500 should be created for a claim against the firm for damages.
* An item of ₹ 1,000 included in Creditors is not likely to be claimed, and hence it should be
written off.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new firm if Z
is to contribute proportionate capital and goodwill. The capital of partners is to be in profit
sharing ratio by opening current Accounts.
