SAMPLE PAPER ACCOUNTANCY

CLASS:- XII, SET-3 (2022-23)

Time: 3 Hrs MM: 80

General Instructions:
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper is divided into two parts, Part A and B.
(iii) Part-A is compulsory for all candidates.
(iv) Part-B. Analysis of Financial Statements.
(v) Question 1 to 16 and 27 to 30 carries 1 mark each.
(vi) Questions 17 to 20, 31 and 32 carries 3 marks each.
(viii) Questions from 21, 22 and 33 carries 4 marks each.
(ix) Questions from 23 to 26 and 34 carries 6 marks each.
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.

Part A - Accounting for Partnership Firms and Companies

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1. Kumar, Verma and Naresh were partners in a firm sharing profit and loss in the ratio of
3:2:2.
On 23rd January, 2015 Verma died. Verma’s share of profit till the date of his death was
calculated at ₹ 2,350.
Pass necessary journal entry for the same in the books of the firm.
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2. There are two statements marked as Assertion (A) and Reason (R.). Read the statement and
choose the appropriate option from the options given below:

Assertion (A): On dissolution, goodwill account is transferred to Realisation

Account.
Reason (R): Goodwill is an Asset which cannot be seen or touched.
(a) Both A and R are true and R is the (a) Both A and R are true but R is not the
correct explanation of A correct explanation of A
(c) A is true but R is false (d) A is false but R is true

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3. A Ltd. forfeited 100 equity shares of ₹ 10 each for the non-payment of final call of ₹ 3.
State the minimum reissue price at which these shares can be re-issued:
(a) ₹ 700
(b) ₹ 300
(c) ₹ 400
(d) ₹ 1,000

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4. P, Q and R sharing profit and losses in the ratio of 8:5:3. Q retires from the firm takes 3/16
from P and R takes 5/16 from P. New profit-sharing ratio between Q & R will be:
(a) 1:1
(b) 10:6
(c) 9:7
(d) 5:3
OR
In case of Workmen Compensation Reserve, if the amount claimed is more than the
amount lying in WCR, then the shortfall will be recorded in:
(a) Revaluation Account (b) Partners’ Capital Account
(c) Balance Sheet (d) None of these
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5. Which one of the following items cannot be recorded in the profit and loss appropriation
account?
(a) Interest on capital
(b) Interest on drawings
(c) Rent paid to partners
(d) Partner’s salary
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6. ABC took over the assets of Rs 7, 60,000 and liabilities of Rs 80,000 of Y limited for
purchase consideration of Rs 5, 85,000 payable by the issue of 12% debentures of Rs 100
each at a discount of 10%. The number of debentures to be issued is:
(a) 6,600
(b) 6,500
(c) 4,500
(d) 5,400.
OR
Premium received on issue of debentures may be utilised for writing off:
(a) Premium allowed on redemption of debentures
(b) Writing off preliminary expenses
(c) Writing off discount allowed on issue of debentures
(d) All of the above.
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7. Luxor Ltd. issued 10,000, 7% debentures of Rs. 100 each at a discount of Rs. 4 redeemable
at a premium of Rs. 6. It will write off loss on Issue of debentures from:
(a) Securities Premium Reserve (b) Statement of Profit and Loss Account
(c) Capital Reserve (d) General Reserve
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8. A and B share profits in the ratio of 2:1. C is admitted with 1/4 share in profits. C acquires
3/4 of his share from A and 1/4 of his share from B. The new ratio will be:
(a) 2:1:1
(b) 23:13:12
(c) 3:1:1
(d) 13 : 23 : 12
OR
A and B are partners. The net divisible profits as per Profit & Loss appropriation account is
Rs 2, 50, 000.The total interest on drawings is Rs 4,000.A’s salary is Rs 4,000 per quarter
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 and B’s salary is Rs 40,000 p.a. The net profit/loss during the year was _____________.
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9. A Company got its mining right recently. You are required to show this right in financial
statements of the company as :
(a) Expense (b) Intangible Asset
(c) Current Asset (d) Non-Current Liability
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10. Ambrish Ltd offered 2, 00,000 Equity Shares of ₹ 10 each, of these 1, 98,000 shares were
subscribed. The amount was payable as ₹ 3 on application, ₹ 4 an allotment and balance on
first call. If a shareholder holding 3,000 shares has defaulted on first call, what is the
amount of money received on first call?
(a) ₹ 9,000.
(b) ₹ 5, 85,000.
(c) ₹ 5, 91,000.
(d) ₹ 6, 09,000.
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11. Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1.
Balance Sheet (Extract)
Liabilities ₹ Assets ₹
Machinery 40,000
If the value of machinery reflected in the balance sheet is overvalued by 33 %, find out the
value of Machinery to be shown in the new Balance Sheet:
(a) ₹ 44,000
(b) ₹ 48,000
(c) ₹ 32,000
(d) ₹ 30,000
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12. Balance of Share Forfeiture account is shown in the balance sheet under the item:
(a) Current Liabilities & Provisions (b) Reserves & Surplus
(c) Share Capital (d) Unsecured Loans
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13. ABC limited issues 10,000 9% debentures of ₹ 100 each at a premium of 5% payable at a
premium of 10%, the loss on issue of debentures account will be debited to by:
(a) ₹ 10,00,000
(b) ₹ 1,00,000
(c) ₹ 10,50,000
(d) ₹ 1,05,000
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14. E, F and G are partners sharing profits in the ratio of 3:3:2. According to the partnership
agreement, G is to get a minimum amount of ₹ 80,000 as his share of profits every year and
any deficiency on this account is to be personally borne by E. The net profit for the year
ended 31st March 2021 amounted to ₹ 3, 12, 000.
Calculate the amount of deficiency to be borne by E?
(a) ₹ 1,000
(b) ₹ 4,000
(c) ₹ 8,000
(d) ₹ 2,000

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15. Vee and Anu are partners in a firm sharing profits and losses in the ratio 2:1. Their capital
balances were Rs. 10, 00,000 and 8, 00,000 respectively. The firm made a profit during the
year amounted to Rs. 3, 45,000. Both partners are allowed a salary of Rs. 2,500 per month.
Interest on capital is allowed @ 5% on capital balance. Calculate the Capital balance of
Anu.
(a) Rs. 9,35,000 (b) Rs. 9,10,000
(c) Rs. 9,85,000 (d) None of these
Or
N, P and S are equal partners At the time of N’s retirement. Workmen compensation
Reserve (WCR) appears in the books at Rs. 70,000 and the claim of Rs. 25,000 was against
it. The amount of WCR credited to N’s Capital account will be :
(a) Rs. 33,300 (b) Rs. 15,000
(c) Rs. 45,000 (d) Rs. 95,000

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16. At the time of dissolution total assets are worth ₹ 3, 00,000 and external liabilities are
worth ₹ 1, 20,000. If assets realized 120% and realization expenses paid were ₹ 4,000, then
profit/loss on realization will be:
(a) Profit ₹ 60,000
(b) Loss ₹ 60,000
(c) Loss ₹ 56,000
(d) Profit ₹ 56,000
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17. Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14:5:6
respectively. Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill
of the firm is valued at 2 years Purchase of super profits based on average Profits of last 3
years. The profits for the last 3 years are ₹ 50,000, ₹ 55,000 and ₹ 60,000 respectively. The
normal profits for the similar firm are ₹ 30,000. Goodwill already appears in the books of
the firm at ₹ 75,000.
The Profit for the first year after Bhim’s retirement was ₹ 1, 00,000.
Give the necessary Journal Entries to adjust Goodwill and distribute Profits showing your
working.
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18. A, B and C are partners in a firm sharing profits and losses in the ratio of 3:3:2.The
partnership deed provided for the following:
(i) Salary of ₹ 2,000 per quarter to A and B.
(ii) C was entitled to a commission of ₹ 8,000.
(iii) B was guaranteed a profit of ₹ 50,000 p.a.

The profit of the firm for the year ended 31st March, 2019 was ₹ 1, 50,000 which was
distributed among A, B and C in the ratio of 2:2:1, without taking into consideration the
provisions of partnership deed.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Show
your working clearly.
OR
A and B are partners in a firm sharing profits and losses in the ratio of 7:3. Their fixed
capitals were: A ₹ 9, 00,000 and B ₹ 4, 00,000. The partnership deed provided the
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 following:
(i) Interest on Capital @ 10% p.a
(ii) A’s salary ₹ 50,000 per year and B’s salary ₹ 3,000 per month.
Profit for the year ended 31st March, 2019 ₹ 2, 78,000 was distributed without providing
for interest on capital and partners’ salary.
Showing your working clearly, pass the necessary adjustment entry for the above omission.
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19. Lemon Ltd. purchased from C. Ltd., computers of Rs. 3,00,000 and software for Rs.
5,00,000 payable Rs. 80,000 by cheque and balance by issue of 7% Debentures of Rs. 100
each at a discount of 10%. The company has balance in Securities Premium Reserve of Rs.
40,000 and in Capital Reserve of Rs. 25,000. Pass the journal entries in the books of
Lemon Ltd.
OR
Y Ltd took over the assets of Rs. 15, 00,000 and liabilities of Pvt. Ltd. doe purchase
consideration of Rs. 13, 68,500. Rs. 25,500 were paid by issuing a promissory note in
favour of P Ltd. payable after two months and the balance was paid by issue of Equity
shares of Rs. 100 each at a premium of 25%. Pass necessary journal entries for the above
transaction I the books of Y Ltd.

20. Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6:4:1. Komal is 3
guaranteed a minimum profit of ₹ 2,00,000. The firm incurred a loss of ₹ 22, 00,000 for the
year ended 31st March, 2018.
Pass necessary journal entry regarding deficiency borne by Maanika and Bhavi and prepare
Profit and Loss Appropriation Account.
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21. (a) Give journal entries for the issue of debentures in the following conditions:
(3+1)
(i) Issued 2,000, 12% debentures of ₹ 100 each at a premium of 5%, redeemable at par.
(ii) Issued 2,000, 12% debentures of ₹ 100 each at a premium of 5%, redeemable at a
premium of 10%.
(b) On 1st April, 2015, X Ltd. took a long-term loan of ₹ 6, 00,000 from SBI Bank and
issued 5,000; 10% Debentures of ₹ 100 each as collateral security. Show the entry passed
for issue of debenture as collateral security.
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22. P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:2:1. The firm
was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and
external liabilities to the realization account, the following transactions took place:
(i) A debtor whose debt of Rs. 90,000 had been written off as bad, paid Rs. 88,000 in full
settlement.
(ii) Creditors to whom Rs. 1, 21,000 were due to be paid, accepted stock at Rs. 71,000 and
the balance was paid to them by a cheque.
(iii) Q had given a loan to the firm of Rs 18,000. He was paid Rs. 17,000 in full settlement
of his loan.
(iv) Profit & loss A/c were showing a debit balance of Rs. 15,000 on the date of
dissolution.
Pass necessary Journal entries for the above transactions in the books of the firm.

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23. Guru Limited invited applications for issuing 80,000 equity shares of ₹ 10 each at a
premium of ₹ 10 per shares. The amount was payable as follows:
On Application and Allotment: ₹ 10 (including ₹ 5 premium)
On First and Final Call : ₹ 10 (including ₹ 5 premium)
Application for 100,000 shares 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 re-
issued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Guru Limited.
OR
(a) N Ltd .issued 2,000 shares of ₹ 100 each. All the money was received except on 200
shares on which only ₹ 90 were received. These shares were forfeited and out of the
forfeited shares 100 shares were reissued at ₹ 80 each as fully paid up.
Pass necessary journal entries for the forfeiture and re-issue of shares. (3 marks)

(b) Complete the following Entries: (3 marks)

Date Particulars Debit Credit

(₹) (₹)
i _____________________ Dr. ______
To _____________________ ______
To _____________________ ______
(Being the forfeiture of 1000 shares of Rs 10 each ,Rs 8
Called up, on which allotment money of Rs 2 and First Call
of Rs 3 has not been received)
ii _____________________ Dr. ______
To _____________________ ______
To _____________________ ______
(Being reissue of 1000 forfeited shares fully paid up at Rs 11
per share)
iii _____________________ Dr. ______
To ____________________ ______
(Being gain on forfeiture and reissue of shares trf. to Capital
reserve Account)
24. ‘A’ and ‘B’ are partners in a firm sharing profits in the ratio of 3:2. On C’s admission the 6
Balance Sheet of the firm was as follows:
Balance Sheet as on 31st March, 2021
Liabilities Amount Assets Amount
Investment fluctuation fund 4,000 Cash at bank 87,000
Sundry Creditors 66,000 Plant & Machinery 70,000
Reserves 10,000 Land Building 98,000
Capital A - 1,50,000 Investment(market value 19,000) 21,000
B - 1,41,000 2,91,000 Debtors 42,000
Less: Provision 7,000 35,000
3,71,000 3,71,000

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 On the above date, C was admitted into partnership on the following terms:
(a) C was to pay ₹ 56,000 as capital and ₹ 14,000 as goodwill for 1/6th share in profits.
(b) Land and building were to be increased to ₹ 1, 20,000 and Plant and Machinery
decreased by 20 %. All debtors were good. Creditors included ₹ 9,800 no longer
payable.
Pass journal entries to record the above transactions.
OR
The Balance Sheet of A, B and C who were sharing profits and losses in the ratio of1/2,
1/3 and 1/6 respectively was as follows as on 1st April, 2019.

Liabilities Amount Assets Amount

Reserve fund 9,000 Cash 4,100
Sundry Creditors 12,600 Investments 10,000
Provident fund 3,000 Debtors 29,000
Capital A 40,000 Stock 25,000
B 36,500 Patent 5,000
C 20,000 Plant & Machinery 48,000
1,21,000 1,21,000
C retired from business on 1st April, 2019 and his share in the firm was to be ascertained
on the revaluation of assets as follows.
a) The goodwill of the firm was valued at ₹ 27,000.
b) Depreciation to be provided @10 % on machinery.
c) Patents were to be reduced by 20%.
d) Liability on account of provident fund was admitted at ₹ 2,400.
e) C took over investments at ₹ 15,800.
Prepare Revaluation A/c and Partners capital A/c.
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25. Vijay, Vivek and Vinay are partners in a business sharing profits as 3/4, 1/8 and 1/8
respectively and their Balance Sheet as at 31st March, 2020 was:
Liabilities Rs. Assets Rs.
Capital A/c: Plant 5,00,000
Vijay- 5,00,000 Debtors 4,00,000
Vivek- 3,00,000 Stock 2,00,000
Vinay- 2,50,000 10,50,000 Cash 50,000
General Reserve 50,000 Bank 2,50,000
Loan by Vinay 50,000
Creditors 2,50,000
14,00,000 14,00,000
Vinay died on 31st December, 2020 and the Partnership Deed provided the following:
(a) The deceased partner will be entitled to his share of profits up to the date of death,
calculated on the basis of previous year’s profits.
(b) He will be entitled to his share of goodwill of the firm, calculated on the basis of three
years’ purchase of the average profits of the four years. The net profits for the last four
years ended 31st March, 2017 – Rs. 8,00,000; 2018 – Rs. 6,00,000; 2019 – Rs. 4,00,000
and 2020 – Rs. 2,00,000.
(c) His drawing up to the date of death was Rs. 18,000.
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 Determine the amount payable to the legal representatives of the deceased partner by
preparing the accounts.
(3+3)
26. (A) C India Ltd. purchased machinery from B India Ltd. Payment to B India Ltd. was
=6
made as follows :
(i) By issuing 10,000 equity shares of ₹ 10 each at a premium of 20%.
(ii) By issuing 1000, 9% debentures of ₹ 100 each at a discount of 5%.
(iii) Balance by giving a bank draft of ₹ 37,000.
Pass necessary journal entries in the books of C India Ltd. for the purchase of machinery
and payment to B India Ltd.
(B) On April 1, 2019 Z Ltd. issued, 10,000, 8% Debentures of ₹ 100 each at premium of
5%, to be redeemable at a premium of 10%, after 5 years. The entire amount was payable
on application. The issue was oversubscribed to the extent of 10,000 debentures and the
allotment was made proportionately to all the applicants. The securities premium amount
has not been utilized for any other purpose during the year. Give journal entries for the
issue of debenture.

Part B – Analysis of Financial Statements

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27. Revenue from Operations Rs. 4,00,000; Cost of Revenue from Operations 60% of Revenue
from Operations; Operating expenses Rs. 30,000 and rate of income tax is 40%. What will
be the amount of profit after tax?
(a) Rs. 64,000
(b) Rs. 78,000
(c) Rs. 52,000
(d) Rs. 96,000

Or
Name two accounting ratios which are complementary to each other:
(a) Current ratio and Quick ratio
(b) Operating ratio and operating profit ratio
(c) Gross profit ratio and Net Profit ratio
(d) All of these
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28. Under which major headings and sub-heading will “Provision for employee benefits
“shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013?
(a) Head: Non-current liability Sub head ; Deferred provision
(b) Head: Non-current liability Sub head ; Long term provision
(c) Head: Current liability Sub head ; Current liability
(d) Head: Current liability Sub head ; Short term provision
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29. Proposed dividend is a :
(a) Current liability (b) Noncurrent liability
(c) other current liability (d) contingent liability

OR

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 Balance Sheet (Extract)

Equity and liabilities 31-3-2019 (₹) 31-3-2020 (₹)

10% Debentures 2,00,000 1,60,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March each
year. Debentures were redeemed on 30th September, 2019. How much amount (related to
above information) will be shown in Financing Activity for Cash Flow Statement prepared
on 31st March, 2020?
(a) Outflow ₹ 40,000.
(b) Inflow ₹ 42,000.
(c) Outflow ₹ 58,000.
(d) Outflow ₹ 64,000.
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30. A firm has Current ratio of 2.5:1 and a Liquid ratio of 2:1. Its opening Inventory is ₹
80,000 which is 3 times lesser than its closing inventory. What will be the Quick Assets?
(a) ₹ 2,40,000
(b) ₹ 9,60,000
(c) ₹ 4,80,000
(d) ₹ 12,00,000
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31. Classify the following items under Major heads and Sub-heads (if any) in the Balance
Sheet of the Company as per Schedule III of the Companies Act 2013.
(a) Security premium reserve
(b) Building under construction
(c) Publishing titles
(d) livestock
(e) cheques in hand
(f) Loose Tool
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32. State giving reasons, which of the following transactions would increase, decrease or not
change the Stock Turnover Ratio.
(a) Sale of goods for Rs. 25,000 (costing Rs. 20,000)
(b) Increase in the value of closing stock by Rs.12,000
(c) Goods purchased for Rs. 50,000.
(d) Purchase Return amounting to Rs. 5,000
(e) Goods costing Rs. 15,000 distributed as free samples.
(f) Goods costing Rs. 5,000 withdrawn for personal use.
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33. Determine Net Assets Turnover ratio from the following information: -
Profits after Tax were ₹ 6,00,000; Tax rate was 40%; 15% Debentures were of
₹ 20,00,000; 10% Bank Loan was ₹ 20,00,000; 12% Preference Share Capital
₹ 30,00,000; Equity Share Capital ₹ 40,00,000; Reserves and Surplus were
₹ 10, 00,000; Sales ₹ 3, 75, 00,000 and Sales Return ₹ 15, 00,000.
OR

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 From the following details obtained from the financial statements of Jeev Ltd., Calculate
Interest coverage Ratio :
Net Profit after tax ₹ 1,20,000,
12% Long-term Debt ₹ 20,00,000,
Tax Rate 40%.
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34. Prepare a cash flow statement from the following balance sheet:

Particulars Note 31st March 31st March

No. 2020 (₹) 2019 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserve and Surplus 1 4,00,000 2,00,000
2. Current Liabilities
Trade payables 2,80,000 1,80,000
12,80,000 8,80,000
Total
II. Assets
1. Non Current Assets:
(a) Fixed Assets
(i) Plant and machinery 5,00,000 3,00,000
2. Current assets:
a) Inventories 1,00,000 1,50,000
b)Trade receivables 6,00,000 4,00,000
c)Cash and cash equivalents 80,000 30,000

Total 12,80,000 8,80,000

Notes to Accounts:
Particulars 31-03-2020 31-03-2019
(₹) (₹)
1. Reserve and Surplus:
Surplus (Balance in statement of Profit and Loss) 4,00,000 2,00,000
Additional information:
i) An old machinery having book value of ₹ 50,000 was sold for ₹ 60,000.
ii) Depreciation provided on machinery during the year was ₹ 30,000.

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