CLASS 12 ACCOUNTANCY

SAMPLE QUESTION PAPER-2

Time Allowed: 3 Hours Max. Marks:80

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
5. Questions Nos. from 21, 22 and 33 carries 4 marks each.
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each.
7. There is no overall choice. However, an internal choice has been provided in 7 questions of
one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

Q. PART A Marks
N0 (Accounting for Partnership Firms and Companies)
.

1. A and B are partners sharing profits in the ratio 4:3. They admitted C as a new partner
who get 1/7th share of profit, entirely from A. The new profit sharing ratio will be:
A) 3:3:1 B) 4:3:1 C) 3:3:2 D) 4:3:2 1
OR
X and Y are partners sharing profit in the ratio of 3 : 2. Z was admitted with 1/4 share
in profits which he acquires equally from X and Y. The new ratio will be:
(A) 9 : 6 : 5
(B) 19 : 11 : 10
(C) 3 : 3 : 2
(D) 3 : 2 : 4

2. On the admission of a new partner:

(a) Old firm is dissolved. (b) Old partnership is dissolved. (c) Both old firm and
partnership are dissolved. (d) Neither partnership nor firm is dissolved
1
3.

A Company forfeited 1,000 shares of ₹ 10 each fully paid on which

₹ 7,000 has been paid. Out of these 800 shares were reissued upon payment of ₹
7,600. Amount transferred to Capital Reserve will be: 1
a) ₹ 7,600
b) ₹ 6,600
c) ₹ 9,000
d) ₹ 5,200
OR
If shares are reissued at premium then forfeited balance on shares reissued is
transferred to.
(a) Capital Reserve (b) General Reserve
4.
(c) Securities Premium Reserve (d) Statement of Profit and Loss
Janak, Chaman and Anmol are partners sharing profits and losses in the ratio of 3:2:1.
They decide to change their profit-sharing ratio to 2:2:1. To give effect tothis new 1
profit-sharing ratio, they valued goodwill at
 Rs 60,000.
What will be the necessary Journal entry if goodwill does not appear in the old
BalanceSheet and it is not raised and written off?
a) Chaman’s Capital A/c ……..Dr. Rs 4,000
Anmol’s Capital A/c ……….Dr. Rs 2,000
To Janak’s Capital A/c Rs6,000
b) Goodwill A/c ……………….Dr. Rs 60,000
To Janak’s Capital A/c Rs 30,000
To Chaman’s Capital A/c Rs 20,000
To Anmol’s Capital A/c Rs 10,000
c) Janak’s Capital A/c ..............Dr. Rs 24,000
Chaman’s Capital A/c .........Dr. Rs 24,000
Anmol’s Capital A/c ………..Dr. Rs 12,000
To Goodwill A/c Rs 60,000
d) Janak’s Capital A/c ………...Dr. Rs 6,000
To Chaman’s Capital A/c Rs 4,000
To Anmol’s Capital A/c Rs 2,000

OR
A and B are partners with capitals of Rs 2,00,000 and Rs 1,00,000 respectively.
Interest payable on capital is 10% p.a. Determine amount of appropriation for each
partner when the profit earned by the firm is Rs 24,000.
(a) Rs 20,000 and Rs 10,000.
(b) Rs15,000 and Rs 9,000.
(c) No interest will be paid.
(d) Rs 16,000 and Rs 8,000.
5.

A and B are partners. C is admitted with a guaranteed profit of ₹ 10,000 from A. New 1
Profit-sharing ratio is 3:2:1. Profit for the year 2021-22 is ₹ 1,20,000. C will get
A. ₹ 10,000 B. ₹ 20,000 C. ₹ 30,000 D. None of these
6.

Tamy Limited issued 5,000 debentures @ 1,000 each at a discount of 10%. Rs.300 is 1
payable on application and balance
payable on the allotment. Find the amount received on an allotment?
a) 45,00,000.
b) 40,00,000
c) 30,00,000
d) 35,00,000
OR
Premium received on issue of debentures may be utilised for
a) All of these
b) For writing off preliminary expenses
c) For writing off premium allowed on redemption of debentures
d) For writing off discount allowed on issue of shares
7.

Assertion (A): Forfeited shares may be reissued by the company at a discount also. 1
Reason (R): Amount of discount on reissue of forfeited shares cannot exceed the
amount forfeited on reissued shares.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
 d) A is false but R is true.
8.

G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues 1
towards the firm including Capital balance, Accumulated profits and losses share,
Revaluation Gain amounted to ₹ 5,80,000. G was being paid ₹ 7,00,000 in full
settlement. For giving that additional amount of ₹ 1,20,000, S was debited for ₹
40,000. Determine goodwill of the firm.
a). ₹ 1,20,000
b). ₹80,000
c). ₹2,40,000
d). ₹ 3,60,000
OR
A, B, and C are partners with profit sharing ratio 4:3:2. B retires and goodwill was
valued ₹1,08,000. If A and C share profits in 5:3, find out the goodwill shared by A and
C in favour of B
A) ₹ 22,500 and ₹ 13,500
B) ₹ 16,500 and ₹ 19,500
C) ₹ 67,500 and ₹ 40,500
D) ₹ 19,500 and ₹ 16,500

Essential features of goodwill don’t involve.

a) It is a valuable asset. B) It is helpful in earning excess profit.
c) It is an intangible asset. D) It is very easy to place an exact value on goodwill.
9. 1
10.

Tick the odd one, out of the following: 1

a) Rent to Partner b)Manager’s Commission
c) Interest on Partner’s Loan d) Interest on Partner’s Capital
11.

A and B are sharing profits and losses in the ratio 5: 3. They admitted C as a partner 1
and gave him 1/5th share of the profits. He acquired his share equally from A and B.
New profit-sharing ratio will be:
12.
A) 5: 6: 3 B) 2: 4: 6 C) 21: 11: 8 D) 18: 24: 38
On 28th February, 2022, the first call of Rs 2 per share became due on 25,000 equity 1
shares allotted by Zerox Enterprises Limited. Jack, a holder of 500 shares did not pay
the first call money. Mack, a holder of 375 shares paid the second and final call of Rs 4
per share along with the first call. Journal entry for the amount received will
be_______
a) Bank A/c……………………….Dr.50,500
Calls-in-advance A/c…………..Dr.1,000
To Equity Share First Call A/c 50,000
To Calls-in-arrear A/c 1,500
b) Equity Share First Call A/c …….Dr.50,000
Calls-in-arrear A/c ………………Dr.1,000
To Bank A/c 49,500
To Calls-in-advance A/c 1,500
c) Bank A/c …………………………Dr.50,500
Calls-in-arrear A/c ………………Dr.1,000
To Equity Share First Call A/c 50,000
To Calls-in-advance A/c 1,500
d) Bank A/c …………………………Dr.50,000
 Calls-in-arrear A/c ………………Dr.1,000
To Equity Share First Call A/c 50,000
To Calls-in-advance A/c 1,000
13.

A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including 1
₹1 premium) has been paid. Out of these few shares were re-issued at a discount of
₹1 per share were and ₹6,000 were transferred to Capital Reserve. How many shares
were re-issued?
a) 3,000 shares
b) 1,000 shares
c) 2,000 shares
14.
d) 1,500 shares
A, B and C are partners in a firm without any agreement. They have contributed ₹ 1
5,000, ₹ 3,000 and ₹ 2,000 by way of capital in the firm. A was unable to work for six
months in a year due to illness. At the end of year, firm earned a profit of ₹ 1,500. A's
share in the profit will be:
a) ₹ 375
b) ₹ 750
c) ₹ 500
15.
d) ₹ 250
Ajay and Vijay are partners. Ajay withdrew fixed amount from the firm in middle of the 1
each quarter for the year ended 31st March, 2023. Interest on drawings is charged @
10% p.a. which on Ajay’s drawings was Rs 1,200 for the year. Quarterly drawings of
Ajay were
a) Rs 5,000
b) Rs 5,500
c) Rs 6,000
d) Rs 6,500

OR

Suraj, a partner withdrew Rs 10,000 p.m. during the middle of each month for the year
ended 31st March, 2023. Interest on drawings charged was Rs 6,000.Rate of interest
on drawings charged is
a) 8% p.a.
b) 9% p.a.
c) 10% p.a.
d) 7% p.a.
16.

On dissolution, goodwill account is transferred to: 1

a) On the Credit of Cash Account
b) On the Debit of Realisation Account
c) In the Capital Accounts of Partners
d) On the Credit of Realisation Account
17.

X, Y and Z are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in 3

the books at a value of ₹ 60,000. Y retires and at the time of Y's retirement, goodwill is
valued at ₹ 84,000. X and Z decided to share future profits in the ratio of 2: 1. Pass the
necessary Journal entries through Goodwill Account.
18.

Govind and Kavita are partners in a firm. As per the Partnership Deed, Govind is to get 3
 salary of ₹ 30,000 per month and commission of 10% of net profit before charging any
commission. Kavita is to get a salary of ₹ 50,000 p.a. and commission of 8% of the net
profit after charging all commissions. Profit after partner's salary but before
commission to
partners for the year ended 31 March, 2023 was ₹ 5,50,000. Show the distribution of
st

profit.

OR

The partners of a firm distributed the profits for the year ended 31 st

March, 2023, ₹ 1,50,000 in the ratio of 2 : 2 : 1. without providing for the following
adjustments:
i. A and B were entitled to a salary of ₹ 1,500 per quarter.
ii. C was entitled to a commission of ₹ 18,000.
iii. A and C had guaranteed a minimum profit of ₹ 50,000 p.a. to B.
iv. Profits were to be shared in the ratio of 3 : 3 : 2.
Pass necessary journal entry for the above adjustments in the books of the firm.
19.

Pass the necessary journal entries for issue of 1,000, 7% debentures of Rs.100 each 3
in the following cases:
i. Issued at 5% premium, redeemable at a premium of 10%.
ii. Issued at a discount of 5%, redeemable at par.
OR

Madhur Ltd. took over the assets of ₹3,90,000 and Liabilities of ₹40,000 of Rasova
Ltd. for a consideration of₹4,00,000. 20% was paid by a cheque and the balance by
issue of fully paid equity shares of ₹ 100 each at a premium of60%. Show necessary
journal entries for these transactions in the books of Madhur Ltd.
20.

Gupta and Bose had a firm in which they had invested ₹ 50,000. On an average, the 3
profits were ₹ 16,000. The normal rate of return in the industry is 15%. Goodwill is to
be valued at four years' purchase of profits in excess of profits @15% on the money
invested. Calculate the value goodwill.
21.

On 1 st April 2022, Apurva Ltd was registered with share capital of 4

Rs 10,00,000divided into 1,00,000 equity shares of Rs10 each. The company issued
prospectus inviting applicants for 90,000 Equity shares. The company received
applications for85000 shares. During the first year, Rs 8 per share was called. Raman
holding 1000shares and Aman holding 2000 shares did not pay first call of Rs 2 per
share. Aman’s shares were forfeited and later on 1500 shares were reissued at Rs 6
per share, 8called up.
Show how ‘Share capital’ will be disclosed in the balance sheet as per
schedule III of Companies Act 2013. Also prepare Notes to Accounts.
22.

Gaurav, Saurabh, and Vaibhav were partners in a firm sharing profits and losses in the 4
ratio of 2 : 2 : 1. They decided to dissolve the firm on 31st March 2023. After
transferring Sundry assets (other than cash in hand and cash at Bank) and third party
liabilities to realisation account, the assets were realized and liabilities were paid off as
follows:
 i. A machinery with a book value of Rs.6,00,000 was taken over by Gaurav at
50% and stock worth Rs.5,000 was taken over by a creditor of Rs.9,000 in full
settlement of his claim.

ii. Land and building (book value Rs.3,00,000) was sold for Rs.4,00,000 through a
broker who charged 2% commission.

iii. The remaining creditors were paid Rs.76,000 in full settlement of their claim and
the remaining assets were taken over by Vaibhav for Rs.17,000.

iv. Bank loan of Rs.3,00,000 was paid along with interest of Rs.21,000.

Pass necessary journal entries for the above transactions in the books of the firm.
23.

‘Guru Ltd’ invited applications for issuing 80,000 equity shares of Rs. 10 each at a 6
premium of Rs. 10 per share. The amount was payable as follows:
On application and allotment — Rs. 10 (including Rs. 5 premium)
On first and final call — Rs. 10 (including Rs. 5 premium)

Applications for 1,00,000 share were received. Applications for 10,000 shares were
rejected and application money was refunded. Shares were allotted on pro-rata basis
to the remaining applicants. Excess application money received from applicants to
whom shares were allotted on pro-rata basis was adjusted towards sums due on first
and final call.

All calls were made and were duly received except the first and final call money from
Kumar who had applied for 1,800 shares. His shares were forfeited. The forfeited
shares were reissued at Rs. 9 per share as fully paid up.

Pass necessary journal entries for the above transactions of the books of ‘Guru Ltd’.

OR

Pass entries for forfeiture and reissue in both the following cases:

(a) Climax Ltd. forfeited 200 shares of Rs 10 each issued at a premium of 20% to
Ramesh who had applied for 240 shares. Ramesh paid Rs 2 per share on application
and did not pay the allotment money Rs 5 (including premium) per share and the first
call of Rs 3 per share. Out of these, 100 shares were re-issued to Krishan credited as
fully paid for Rs 9 per share.
Pass Journal entries to record the forfeiture and re-issue of shares.

(b) Das Ltd. forfeited 250 shares of Rs 100 each issued at 10% premium on which
allotment money of Rs 30 per share (including premium), and first call of Rs 30 per
share were not received, second & final call of Rs 20 per share was not yet called. 100
of these shares were re-issued as
Rs 80 paid-up for Rs 90 per share.
Pass Journal entries for forfeiture and re-issue of shares.
24.

A and B are partners sharing profits and losses in the ratio of 2: 3. On 31st March,
2023, their Balance Sheet was as follows: 6
Liabilities ₹ Assets ₹
Bank Overdraft 32,000 Cash in Hand 3,000
Creditors 25,000 Cash at Bank 12,000
P & L Account 10,000 Debtors40,000
Capital A/cs: Less: Provision 35,000
A 1,00,000 5000 40,000
B 1,05,000 2,05,000 Furniture 80,000
Building 1,00,000
Machinery 2,000
2,72,000 Investments 2,72,000

On 1st April, 2023 they admitted C for 1/5 share in profits which he acquires wholly
from B. The other terms of agreement were:
i. Goodwill of the firm was to be valued at two year’s purchase of the average of
the last 3 year’s profits. The profit for the last 3 years were ₹ 58,000; ₹ 66,000
and ₹ 56,000 respectively.
ii. Provision for Doubtful debts was found in excess by ₹ 2,000.
iii. Buildings were found undervalued by ₹ 20,000 and furniture overvalued by ₹
5,000.
iv. ₹ 5,000 for damages claimed by a customer had been disputed by the firm. It
was agreed at ₹ 2,000 by a compromise between the customer and the firm.
v. C was to bring in ₹ 60,000 as his capital and the necessary amount for his
share of goodwill.
vi. Capitals of A and B were to be adjusted in the new profit sharing ratio by
opening necessary current accounts.
Prepare necessary journal entries.
OR
Kushal, Kumar and Kavita were partners in a firm sharing profits in the ratio of
3 : 1 : 1. On 1st April, 2023, their Balance Sheet was as follows:
BALANCE SHEET OF KUSHAL, KUMAR AND KAVITA as at 1st April, 2023
Liabilities ₹ Assets ₹
Creditors 1,20,000 Cash 70,000
Bills Payable 1,80,000 Debtors 2,00,000
General Reserve Less: Provision for Doubtful Debts
Capital A/cs: 1,20,000 10,000 1,90,000
Kushal 3,00,000 Stock 2,20,000
Kumar Furniture 1,20,000
2,80,000 8,80,000 Building 3,00,000
Kavita 3,00,000 Land 4,00,000
13,00,000 13,00,000

On the above date, Kavita retired and the following was agreed:
i. Goodwill of the firm was valued at ₹ 40,000.
ii. Land was to be appreciated by 30% and building was to be reduced by ₹
1,00,000.
iii. Value of furniture was to be reduced by ₹ 20,000.
iv. Provision for Doubtful Debts is to be increased to ₹ 15,000.
 v. 10% of the amount payable to Kavita was paid immediately and the balance
was transferred to her Loan Account.
vi. Capitals of Kushal and Kumar are to be in proportion to their new profit-sharing
ratio. Surplus/deficit, if any, in their Capital Accounts will be adjusted through
Current Accounts.
You are required to prepare: (a) Revaluation Account. (b) Partners’ Capital Accounts.
25.

Bibin, Chetan and Dev were partners in a firm sharing profits in the ratio of
5 : 3 : 2. On 31st December, 2022, their balance sheet was as follows:
Balance Sheet as on 31st December, 2022
Liabilities ₹ Assets ₹
Creditors 43,000 Cash 10,200
Bills Payable 17,000 Stock 24,500
General Reserve 70,000 Debtors 27,300
Capital A/cs: Land and Building 1,40,000
Bibin 40,000 Chetan Profit and Loss 70,000
50,000
Dev 52,000 1,42,00
0
2,72,00 2,72,000
0

Bibin died on 31st March, 2023 The partnership deed provided for the following on the
death of a partner.
i. Goodwill of the firm was to be valued at 3 years’ purchase of the average profits
of last 5 years. The total profits for the years ending 31st December, 2021, 31st
December, 2020, 31st December, 2019 and 31st December, 2018 were Rs
70,000, Rs 60,000, Rs 50,000 and Rs 40,000 respectively.
ii. Bibin’s share of profit or loss till the date of his death was to be calculated on
the basis of the profits or loss for the year ending 31st December, 2022.
You are required to calculate the following
i. Goodwill of the firm and Bibin’s share of goodwill at the time of his death. 1
ii. Bibin’s share in the profit and loss of the firm till the date of his death.
iii. Prepare Bibin’s capital account at the time of his death to be presented to his 1
executor. 4
26.

On 1st October, 2022, First Computers Ltd. paid M/s Computer Mart 6
₹ 15,00,000 by cheque and issued 5,000, 9% Debentures of ₹ 50 each at par
redeemable at premium of 10% after four years as purchase consideration for
purchase of 40 computers for resale. You are required to:
(a) Pass necessary Journal entries for the year ended 31st March, 2023;
(b) Prepare account of Computer Mart; and
(c) Prepare Loss on Issue of Debentures Account

PART B
27.
(Analysis of Financial Statements)
Which analysis is considered as static? 1
a) Vertical Analysis
b) Horizontal Analysis
 c) Internal Analysis
d) External Analysis
OR
Which of the following items appear in the Statement of Profit and Loss
a) Creditors
b) Goodwill
c) Trade payables
d) Sales
28.

The ratio of Current Assets (₹ 6,00,000) to Current Liabilities (₹ 5,00,000) is 1

1.2 : 1. The accountant of the firm is interested in maintaining a Current Ratio of 2 : 1,
by paying off a part of the Current Liabilities. Current liability paid will be:
a) 3,00,000
b) 2,00,000
c) 1,00,000
d) 4,00,000
29.

State whether cash deposited in bank will be classified under which kind of activity? 1
a) Cash Flow from Operating Activities
b) Cash Flow from Financing Activities
c) Cash Flow from Investing Activities
d) No Cash Flow
OR

An example of cash flow from investing activity is:

a) purchase of raw materials for cash
b) repayment of long-term loan
c) issue of debenture
d) sale of investment by non-financial enterprise.
30.

Dividend paid by a finance company is classified under which kind of activity while 1
preparing cash flow statement?
a) Cash Flow from Investing Activities
b) No Cash Flow
c) Cash Flow from Financing Activities
d) Cash Flow from Operating Activities
31.

Classify the following items under Major heads and Sub heads (If any) in the balance 3
sheet of a Company as per schedule III of the Companies Act 2013.
i. Public Deposits
ii. Office Furniture
iii. Prepaid Rent
iv. Outstanding Salaries
v. Computer Software
vi. Interest Accrued on Investment
vii.
32.

Following particulars are obtained from the books of India Ltd.: 3

Note No 31.3.2022 31.3.2023
(₹) (₹)
Revenue from Operations 40,00,000 25,00,000
 Purchase of Stock in 33,60,000 18,50,000
Trade (2,00,000) 1,50,000
Changes in Inventories 1,20,000 1,00,000
Other Expenses 1,60,000 50,000
Other Income

You are required to prepare a Common Size Statement of Profit & Loss.

33. From the following information, compute ‘Debt-Equity Ratio’ and Total Assets to Debt 4
Ratio:
Particulars ₹
Long-Term 2,00,000
Borrowings 1,00,000
Long-Term Provisions 50,000
Current Liabilities 3,60,000
Non-Current Assets 90,000
Current Assets
OR
Calculate Current Ratio and Quick Ratio.
Particulars ₹ Particulars ₹
Goodwill 1,00,000 Cash and Cash Equivalents 40,000
Inventories 2,50,000 Accrued Income 10,000
Trade Receivables Short term Provision 20,000
1,35,000 1,30,000 Short term Borrowings 30,000
Less: Provision 5,000 30,000 (Bank Overdraft)
Investments (Short term) 20,000 Trade Payables 95,000
34.
Expenses Paid in Advance Expenses Payable 5,000
Balance Sheets of Kewal Ltd. as at 31st March 2023 and 31st March 2022 were: 6
Particulars 31st March, 31st March,
2023 2022
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds
(a) Share Capital 10,00,000 7,00,000

(b) Reserves and Surplus:

Surplus i.e, Balance in Statement of Profit and 2,50,000 1,50,000
Loss

2. Current Liabilities 50,000 40,000

Short - term Provisions: Proposed Dividend 13,00,000 8,90,000

II. ASSETS
1. Non - Current Assets 8,00,000 5,00,000
Fixed Assets(Tangible) : Plant and Machinery
1,00,000 75,000
2. Current Assets
a. Inventories (Stock) 4,00,000 3,15,000
13,00,000 8,90,000
(b) Cash and Cash Equivalents
Additional Information :
1. ₹ 50,000 depreciation has been charged to Plant and Machinery during the
year 2023.
2. A piece of machinery costing ₹ 12,000 (book value ₹ 5,000) was sold at 60%
profit on book value.
Prepare a Cash Flow Statement