Class – XII Commerce

Subject – Accountancy (055)

Sample Paper – 1
MM: 80 MT: 3 hrs.
Part – A
(Accounting for NPO, Partnership Firms and Companies)
1. Retiring partner/deceased partner may be paid in one lump sum or __________ with interest. 1

2. On the basis of the following data, how much final payment will be made by a partner on
firm’s dissolution? Debit balance of capital account of the partner was Rs. 50,000. Share of loss
on realization amounted to Rs. 10,000. Firm’s assets taken over by him was for Rs. 8,000. 1
(a) Rs. 68,000
(b) Rs. 48,000
(c) Rs. 62,000
(d) Rs. 58,000

3. Pick the odd one out: 1

(a) Profit and Loss Account
(b) Revaluation Account
(c) Realization Account
(d) Profit and Loss Appropriation Account

4. Vikram and Vijay are partners in a firm sharing profits and losses in the ratio of 5:4. If the
building is overvalued by 10% and the book value of Building is Rs. 1,65,000 then find the
overvalued amount of building. 1

5. Vikram, Vijay and Arnav were partners and were sharing profits and losses in the ratio of 3 : 2
: 3. Vikram retired and her share was taken over by Vijay and Arnav in 2 : 3 ratio. Calculate
the gaining ratio and new ratio of Vijay and Arnav. 1

6. Gaurav, Manav and Vijay are partners. Vijay expired on 18th December 2019 and as per
agreement surviving partners Gaurav and Manav decided to acquire the share of Vijay in 2:1
and directed the accountant to prepare financial statements as on 18th December 2019 and
accordingly the share of profits of Vijay (deceased partner) was calculated as Rs. 12,00,000.
Which account will be debited to transfer Vijay’s share of profits:
(a) Profit and loss Appropriation Account.
(b) Continuing Partners’ Capital Account
(c) Profit and Loss Suspense Account.
(d) Vijay’s Capital A/c

7. Which of the following items is not dealt through Profit and Loss Account? 1
(a) Interest on Partner’s Loan
(b) Manager’s Commission
(c) Interest on Bank Loan
(d) Partner's Commission

8. In the absence of any information regarding Profit Sharing Ratio of the Partners, then
acquisition of share in profit or loss of the retiring/deceased partner by the continuing
partners, it is assumed that they will acquire his/her share:- 1
(a) Old Profit Sharing Ratio (b) New Profit Sharing Ratio
(c) Equal Ratio (d) Gaining Ratio

9. Capital Reserve is not a part of: 1

(a) Authorized Capital (b) Subscribed capital (c) Unsubscribed capital (d) None of the Above
 10. Cricket Club has income of Rs. 26,000 and ‘Surplus’ credited to capital fund of Rs. 14,300 for
the year 2020-21, then expenditure for the year 2020-21 is:
(a) Rs. 11,700 (b) Rs. 40,300 (c) Rs. 14,300 (d) Rs. 20,300

11. At the time of dissolution of partnership, journal entry for the settlement of loan advanced by
the firm to a partner would be: 1
(a) Partner’s Capital A/c Dr.
To Loan to Partner A/c
(b) Loan to partner A/c Dr.
To Bank A/c
(c) Realization A/c Dr.
To Loan to Partner A/c
(d) None of these

12. A company forfeited 2,000 shares of Rs. 10 each on which application money of Rs. 3 has been
paid. Out of these 1,000 shares were reissued as fully paid up and Rs. 2,000 has been
transferred to capital reserve. Calculate the loss on reissue per share. 1
(a) Rs. 1 Per share
(b) Rs. 2 Per share
(c) Rs. 3 Per share
(d) None of the above

13. If the Partners' Capitals are fixed, where will you record the interest charged on loan? 1

14. Calculate the amount of Subscription to be credited to Income and Expenditure account and
Balance Sheet for the year 2019-20 in the Vikram – Vijay Sir’s Commerce Classes (an NPO):
3
Particulars Amount (Rs.)
(a) Amount received during the year (including Rs. 20,000 for 2018-19,
Rs. 30,000 for 2020-21 and Rs. 10,000 for 2021-22) 7, 80,000
(b) Subscription received in advance as on 01-04-2019 35000
(c) Subscription in arrears as on 01-04-2019 40000
(d) Subscription in arrears for the year ending 31-03-2020 50000
Or
From the following Receipts and Payments Account of Eco Club run by Vikram Vijay Sir’s
Commerce Classes and from the additional information, compute the amount of salaries for
the year 2019–20 to be shown in Income and Expenditure Account and in the Balance Sheet of
2018–19 and of 2019–20: 3
AN EXTRACT OF RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Receipts Rs. Payments Rs.
By Salaries:
2018–19 25,000
2019–20 2,80,000
2020–21 28,000
2021-22 10,000
3,43,000
Additional Information:
` (a) Salaries outstanding on 31st March, 2019 Rs. 30,000
(b) Salaries outstanding for the year ending 31st March, 2020 Rs. 45,000
(a) Salaries paid in advance as on 31st March, 2019 Rs. 15,000
 15. Mahima, Sonia and Neha are partners in a firm. Their capital accounts on 1st April, 2020,
stood at Rs. 4,00,000, Rs. 2,40,000 and Rs. 3,20,000 respectively. Each partner withdrew Rs.
15,000 during the financial year 2019-20. As per the provisions of their partnership deed: 4
(a) Interest on capital was to be allowed @ 5% per annum.
(b) Interest on drawings was to be charged @ 4% per annum.
(c) Profits and losses were to be shared in the ratio [Link]
(d) The net profit of Rs. 2,16,000 for the year ended 31st March 2021, was divided equally
amongst the partners without providing for the terms of the deed.
(e) You are required to pass a single adjustment entry to rectify the error (Show workings
clearly). Or

Anupma & Bhoomika are partners in the ratio of 3:2. The firm maintains fluctuating
capital accounts and the balance of the same as on 31-03-2020 amounted to Rs.1,60,000
and Rs. 1,40,000 for Anupma and Bhoomika respectively. Their drawings during the
year were Rs. 30,000 each. As per partnership deed interest on capital @10% p.a. on
opening capitals had been provided to them. Calculate opening capitals of partners
given that their profits were Rs. 90,000. Show your workings clearly. 4

16. Fill in the missing figures in the following journal entries and Prepare Share Forfeiture
Account : 4

Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)

Share Capital A/c Dr. …….

To Share Allotment A/c …….

To Share First & Final Call A/c 2,500

To Share Forfeiture A/c 3,000

(Forfeiture of 1000 shares of Rs. 10 each)

Bank A/c Dr. 4,200

Share Forfeiture A/c Dr. …….

To Share Capital A/c ……

(Re-issue of 500 forfeited shares @ Rs..... each)

................Ac Dr. ……

To .......... ……

(Profit on re-issue of 500 forfeited shares transferred to Capital Reserve A/c)

17. Vikram Vijay Ltd. Had Rs.12,00,000, 11% Debentures outstanding on 1st April, 2020. During
the year, it took a loan of Rs. 8 Lakh from Canara Bank for which company deposited
debentures of Rs. 15 Lakh as collateral security with the primary security of Rs. 20,00,000.
Pass journal entries and show how these transactions will appear in Balance Sheet of the
company. 4
Or
Vikram Vijay Ltd., issued 2,000, 9% debentures of Rs 100 each on April 01, 2020 at a discount
of 10% redeemable at a premium of 10%.Give journal entries relating to the issue of
 debentures and debenture interest for the period ending March 31, 2021 assuming that interest
was paid yearly March 31 and tax deducted at source is 10%. 4

18. Sweety, Ananya and Ayan are partners in a firm. They decided to dissolve their firm. Pass
necessary Journal entries for the following after various assets (other than Cash and Bank) and
the third party liability have been transferred to Realisation Account: 4
(a) Total Creditors of the firm were Rs. 40,000. Creditors worth Rs. 10,000 were given a piece
of furniture costing Rs. 8,000 in full and final settlement. Remaining Creditors allowed a
discount of 10%.
(b) A machine which was not recorded in the books was taken over by Ayan at Rs. 3,000
whereas its expected value was Rs. 5,000.
(c) Realisation expenses of Rs. 10,000 were to be borne by Ananya. However, it was paid by
Sweety.
(d) Sweety paid the realisation expenses of Rs. 16,000 out of his private funds, who was to get a
remuneration of Rs. 15,000 for completing dissolution process and was responsible to bear
all the realisation expenses.

19. Mahima & Bros. Ltd. purchased a running business from Sonia Ltd. for a sum of Rs.22,00,000
by issuing 20,000 fully paid 12% Debentures of Rs.100 each at a premium of 10% repayable at
10% Premium after 5 years. The assets and liabilities consisted of the following: Machinery
Rs.7,00,000, Debtors Rs.2,50,000, Stock Rs.5,00,000, Building Rs.11,50,000 and Bills Payable
Rs. 2,50,000. Pass necessary Journal entries in the books of Mahima & Bros. Ltd. for the above
transactions. 6

20. Following are the brief particulars of cash transactions of Vikram Pustakalaya Jhajjar for the
year ended 31st December 2020. 6
Receipts Rs Payments Rs.
To balance b/f 1319 By Rent and rates 168
To Entrance fees 255 By Wages 245
To Subscriptions 1600 By Lighting 172
To Donation 165 By Lecturers fee 435
To Life membership fee 350 By Books 213
To Interest on Investment 114 By Office expenses 450
To profit on entertainment 142 By 3% Investment (1.7.2020) 1000
By Bank balance 242
By Cash in hand 1020
3,945 3,945
Library has books worth Rs 2,000 and furniture worth Rs 850 in the beginning of year.
Outstanding subscription was Rs 135 in the beginning of year and Rs 145 at the end of year.
Outstanding rent was Rs 60 in the beginning as well as at the end of year. Charge depreciation
Rs 50 on Furniture and Rs 113 on Books. Required: from the above particulars prepare
Income and Expenditure Account of Vikram Pustakalaya Jhajjar as at 31st December 2020.

21. Singhal & Kaushik Limited invited applications for 2,00,000 equity shares of Rs. 25 each at
20% premium payable as under:
On Application Rs. 5.00 per share
On Allotment Rs. 7.50 per share
On First Call Rs. 7.50 per share
(due two months after allotment)
On Second and Final Call Rs. 5.00 per share
(due two months after First Call)
Applications were received for 4,00,000 shares on January 01, 2017 and allotment was made on
February 01, 2017. Record journal entries in the books of the company to record these share
capital transactions under the following circumstance:
 The directors totally reject applications for 2,00,000 shares, accept full applications for 80,000
shares and make a pro-rata allotment of the 1,20,000 shares to remaining applicants and the
excess application money is to be adjusted towards allotment and calls to be made. All the
money duly received except Shashank, a shareholder of 6,000 shares belongs to category of
pro- rata allotment not able to make the payment of allotment and calls. Pass the journal
entries in the book of Singhal & Kaushik Limited. 8
Or
Pass journal entries in the following cases for Share Forfeiture and Reissue of Shares. 4+4 = 8
(a) A limited company invites applications for 50,000 equity shares of Rs. 10 each, at a
premium of 10% payable as follows: On application Rs. 6; on allotment the balance.
Applications were received for 55,000 shares. Allotments were made on the following
basis:
i. To applicants for 35,000 shares- in full
ii. To applicants for 20,000 shares- 15,000 shares.
Excess money paid on application was utilized towards allotment money. A shareholder
who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay
allotment money. These shares were forfeited. 1,000 forfeited shares were reissued as
fully paid on receipt of Rs. 8 per share. Show the journal in the books of the company.
(b) Star India Ltd. forfeited 100 shares of Rs. 10 each, issued at a premium of 10%. The
company had called up only Rs. 8 per share. These shares were allotted to Ram (who had
applied for 150 shares), who did not pay the allotment of Rs. 3 (including premium) and
first call of Rs. 3. 60 shares were reissued at Rs. 7 per share, as fully paid up. Give Journal
entries in the books of the company, showing the working clearly.

22. On 31st March, 2020 the Balance Sheet of Lakshay and Jatin who shared profits in 3: 2 ratio
was as follows: 8
Balance Sheet
as at 31st March, 2020
Liabilities Amt (Rs) Assets Amt (Rs)
Creditors 20,000 Cash 5,000
Profit and Loss A/c 15,000 Sundry Debtors 20,000
Capital A/c (-) Provision for Doubtful Debts (700) 19,300
Lakshay 40,000 Stock 25,000
Jatin 30,000 70,000 Plant and Machinery 35,000
Lakshay’s Current A/c 15,000 Patents 25,700
Jatin’s Current A/c 10,000
1,20,000 1,20,000
On this date, Varsha was admitted as a partner on the following conditions
(a) Varsha will get 4/15th share of profits.
(b) Varsha had to bring Rs 30,000 as her capital.
(c) She would pay cash for her share of goodwill which would be based on 2 ½ years’ purchase
of average profits of past 4 years.
(d) The assets would be revalued as under:
Sundry Debtors at book value less 5% provision for bad debts, Stock at Rs. 20,000, plant
and machinery at Rs 40,000, Mr. Anil, to whom Rs 5,000 were payable (already included in
above creditors), drew a bill of exchange for 3 months which was duly accepted.
(e) The profits of the firm for the year’s ending on 31st March, 2017, 2018 and 2019 were Rs
19,000, Rs 24,000 and Rs 22,000 respectively.
(f) Pass Journal Entries and Prepare Balance Sheet of the new firm.
Or
The balance sheet of Nancy, Sweta and Neha as 31st Dec.2020 was as follows.

Liabilities (Rs.) Assets (Rs.)

 Bill Payable 20,000 Cash at Bank 1,58,000

Employees Provident Fund 50,000 Bills Receivable 8,000

Workmen compensation reserve 90,000 Stock 90,000

Loan 1,71,000 Sundry Debtors 1,60,000

Capitals Accounts: Furniture 20,000

Nancy 2,27,500 Plant & Machinery 65,000

Sweta 1,52,500 Building 3,00,000

Neha 1,20,000 5,00,000 Adv. Suspense 30,000

8,31,000 8,31,000

The profit ratio was [Link]. Neha died on 30th April 2021. The partnership deed provides that:
(a). Goodwill is to be calculate on the basis of 3 years purchase of preceding 5 years average
profits. The profits were 2020. Rs. 2,40,000, 2019 Rs. 1,60,000, 2018 Rs. 2,00,000 2017 Rs.
1,00,000 and 2016. Rs. 50,000.
(b). Deceased partner should be given share of profits up to the date of death on the basis of
previous years profits.
(c). The assets have been revalued as under Stock Rs. 1,00,000; Debtors Rs. 3,50,000; A bill
receivable for Rs. 6000 was found worthless.
(d). Pass necessary journal entries related to revaluation, goodwill, profit share and
accumulated profits or losses.

Part – B
(Analysis of Financial Statements)
23. Balance Sheet (Extract)
Equity and Liabilities 31-3-2020 31-3-2021
Non Current Liabilities
Debentures 4,00,000 4,40,000

Additional Information:
Debentures were redeemed Rs. 30,000 on 30th September 2020.
How much amount (related to above information) will be shown in Financing Activity for Cash
Flow Statement prepared on 31st March 2021? 1

24. What will be the Current ratio of a company whose Net Working Capital is 50,000 and
Current Assets Rs. 1,70,000? 1

25. Which of the following is a part of other expenses (in statement of profit and loss)? 1
(a) Share issue expenses written off
(b) Interest Paid on Debentures
(c) Interest Paid on Public Deposits
(d) Loss on Issue of Debentures
26. The ___________ may indicate that the firm is experiencing stock outs and lost sales. 1
(a) Average payment period
(b) Stock Turnover Ratio
(c) Average collection period
(d) Debtors Turnover Ratio

27. Which one of the following is Commitment?

(a) Proposed Dividend
(b) Interim Dividend
(c) Unclaimed Dividend
(d) Dividend arrears on Cumulative Preference Shares

28. State one transaction which results in an increase in ‘Liquid Ratio’ and no Change in ‘Current
Ratio’. 1

29. The various activities operating, investing and financing classified as per AS – 3 (Revised)
related to cash flow statement. State true or False. 1

30. Calculate proprietary ratio, if Total assets to Debt ratio is 2.5 : 1. Debt is Rs. 10,00,000. Equity
Shares Capital is ½ times of debt. Preference Shares Capital is 50% of Equity Share Capital.
Current Liabilities Rs. 1,50,000, Net profit after tax is Rs. 6,00,000 and rate of tax is 40%. 3
Or

Calculate Return on Investment, if Total assets to Debt ratio is 2.5 : 1. Debt is Rs. 10,00,000.
Equity Shares Capital is ½ times of debt. Preference Shares Capital is 50% of Equity Share
Capital. Current Liabilities Rs. 1,50,000, Net profit after tax is Rs. 6,00,000 and rate of tax is
40%. 3

31. Fill in the missing information in the following comparative statement of profit and loss.
Comparative Statement of Profit and Loss for the year ended 31st March 2014 and 2015 4

Percentage
Absolute Absolute Absolute Change Change (+/-)
Note Amounts (Rs.) Amounts (Rs) (+/-) (Rs)
Particulars
No.
………………. ………………

I. Revenue from --- ------ --- ---

operations
25,000 ------ 65,000 ---
II. Add : Other --- --- --- ---
Incomes

III. Total
Revenue(I+II)

IV. Expenses: --- 6,00,000 2,00,000 ---

Cost of Material 25,000 --- --- 60%

Consumed --- --- --- ---
Other expenses --- --- --- ---

Total Expenses 60,000 75,000 --- ---

V. Profit before
tax (III-IV)

Less : Income --- --- --- ---

Tax @ 30 %

VI. Profit after

tax
Or
Prepare a Common Size Statement of Profit and Loss from the following information: 4
Particulars 31st March 31st March

2014 2015
Revenue from operations 125% 140%
(% of cost of Material Consumed)
Cost of Material Consumed 2,40,000 2,50,000
Other expenses (% of Revenue from Operations) 10% 12%
Other Income 15,000 20,000
Tax Rate 30% 30%

32. Calculate cash flow from Operating Activities of Vikram – Vijay Ltd. 6
(a) If Vikram – Vijay Ltd. is a Financing Company.
(b) If Vikram – Vijay Ltd. is a Non – Financing (Manufacturing) Company.

Particulars Amount (Rs.)

Cash Revenue from operations 20,00,000
Collection from Trade Receivables 4,20,000
Wages paid to Factory workers 1,50,000
Interest received 6,50,000
Dividend received 1,40,000
Cash Purchases 8,70,000
Credit Purchases 6,00,000
Payment to Trade Payables 5,90,000
Building Purchased 10,00,000
Interest Paid 2,30,000
Interim Dividend paid 1,50,000