NAVODAYA VIDYALAYA SAMITI
SHILLONG REGION
TERM-1
SUBJECT- ACCOUNTANCY (055)
CLASS XII (2023-24)
TIME: 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. Part - A is compulsory for all the candidates.
4. Part - B Analysis of Financial Statement
Students must attempt only one of the given options as per the subject opted.
5. Question Nos.1 to 16 and 29 to 32 carries 1 mark each.
6. Questions Nos. 17 to 21, and 33 carries 3 marks each.
7. Questions Nos. from 22 ,23and 34 carries 4 marks each
8. Questions Nos. from 24 to 28 carries 6 marks each
9. 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& B are partners sharing profits and losses in the ratio of 3:2. C is admitted for ¼ and for which 1
₹30,000 and ₹10,000 are credited as a premium for goodwill to A and B respectively. The new profit-
sharing ratio of A:B:C will be:
a) 3:2:1
b) 12:8:5
c) 9:6:5
d) 33:27:20
2 Assertion: Goodwill is an intangible asset. 1
Reasoning: It is the value of the reputation of a firm in respect of the profits expected in future over
and above the normal profits.
a) Both A and R are correct, and R is the correct explanation of A.
b) Both A and R are correct, but R is not the correct explanation of A.
c) A is correct but R is incorrect.
d) A is incorrect but R is correct.
3 A company forfieted 4,000 shares of ₹10 each on which application money of ₹3 has been paid. 1
Out of these 2,000 shares were re-issued as fully paid up and ₹4,000has been transferred to capital
reserve. Calculate the rate at which these shares were re issued:-
a) ₹10 per share
b) ₹9 per share
c) ₹11 per share
d) ₹8 per share.
OR
On 1st April 2022, kiwi ltd. had a balance of ₹8,00,000 in Securities Premium account. During the
year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance
amount
to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each
at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P&L
for the year for Loss on issue of Debentures would be:
a) ₹30,00,000.
b) ₹22,00,000.
c) ₹24,00,000.
d) ₹20,00,000.
4 A, B and C who were sharing profits and losses equally decided to share the future profits and losses 1
in the ratio to 5:4:3 with effect from 1st April 2023. An extract of their Balance Sheet as at 31st March
2023 is:
Liabilities Amount(₹) Assets
Amount(₹) Investment fluctuations 85,000
Investment (at cost) 8,00,000
Reserve
At the time of reconstitution, if the market value of investment was ₹7,06,000, the Revaluation a/c
will be:
a) Debited with₹15,000.
b) Debited with ₹9,000.
c) Credited with ₹2,000.
d) Credited with ₹12,000.
OR
A, B and C are in partnership business. A used ₹2,00,000 belonging to the firm without the
information to other partners and made a profit of ₹35,000 by using this amount. Which decision
should be taken by the firm to rectify this situation?
a) A need to return only ₹2,00,000 to the firm.
b) A is required to return ₹35,000 to the firm.
c) A is required to pay back ₹35,000 only equally to B and C.
d) A need to return ₹2,35,000 to the firm.
5 X and Y were two partners sharing profits and losses in the ratio 4:3. Y was in need of funds so he took a loan 1
of ₹50,000 from the firm at an agreed rate of interest being 10% pa. If interest on loan is charged on loan to
the partner it will be:-
a) Debited to profit and loss A/c
b) Credited to profit and loss A/c
c) Debited to profit and loss A/c
d) Credited to profit and lost A/c
6 Adrella Ltd. purchased building from Sunep Ltd for ₹8,00,000. The consideration was paid by 1
issue of 6% debentures of ₹100 each at a discount of 20%. The 6% Debentures account is
credited with:
a) ₹10,40,000
b) ₹10,00,000
c) ₹9,60,000
d) ₹6,40,000
OR
Which of the following statements is correct about debentures?
a) Interest on debentures is an appropriation of profits.
b) Debenture holders are the creditors of a company.
c) Debentures can be issued to vendors at discount.
d) Interest is not paid on Debentures issued as Collateral Security.
7 Assertion (A) :- 1
A Company is Registered with an authorised Capital of 5,00,000 Equity Shares of
₹10 each of which 2,00,000 Equity shares were issued and subscribed. All the money had been
called up except ₹2 per share which was declared as ‘Reserve Capital’. The Share Capital reflected
in balance sheet as ‘Subscribed and Fully paid up’ will be Zero.
Reason (R) :- Reserve Capital can be called up only at the time of winding up of the company.
(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 incorrect, but Reason (R) is Correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect
8 G, S and T were partners sharing profits and losses equally. G retires from the firm and on his 1
retirement, he is entitled for the payment due to him after all the adjustments. At the time of
retirement,if nothing is mentioned about the payment made due to him, in which account, the
amount will be transferred:
a) Retiring Partners current a/c
b) Retiring Partners capital a/c
c). Retiring Partners loan a/c
d). Retiring Partners Bank a/c
OR
Ahan, Naha and chao are partners, Chao has been given a guarantee of minimum profit of ₹8,000
by the firm. Firm suffered a loss of ₹5,000 during the year. Capital account of Naha will be
by₹ .
a) Credited, ₹6,500.
b) Debited, ₹6,500.
c) Credited, ₹1,500.
d) Debited, ₹1,500.
Read the following hypothetical situation, answer question no. 9 and 10.
Anu and Annel started a partnership business on 1st April,2022. Their capital contribution was
₹3,00,000 and ₹1,00,000 respectively. Anu rented her property to carry on business for ₹2,500
p.m.
Interest on capital@12%p.a. Anu to get a salary of ₹4,000 p.m. Annel to get a commission of 2%of
the net profit. Profits are to be shared in the ratio of 3:2. The profits for the year ended 31st March,
2023 before providing for rent was ₹2,00,000.
Following is their Profit & Loss Appropriation Account
Particulars (₹) Particulars (₹)
To Interest on Capital By Profit & loss (2)
Anu --------- account .
Annel ---------
To Ana’s Salary a/c 48,000
To Annel’s commission
(1)
To profit [Link]:- -----------
Anu’s Capital A/C
Annel’s Capital A/c
9 The amount to be reflected in blank (1) will 1
be: a) ₹3,720
b) ₹3,400
c) ₹2,800
d) ₹2940
10 The amount to be reflected in blank (2) will 1
be: a) ₹1,62,000.
b) ₹1,74,500.
c) ₹1,71,400.
d) ₹1,70,000
11 In the absence of an agreement, partners are entitled to: 1
i) Profit share in capital ratio.
ii) Commission for making additional sale.
iii) Interest on Loan & Advances by them to the firm.
iv) Salary for working extra hours. v) Interest on Capital.
Choose the correct option:
a) Only i), iv) and v).
b) Only ii) and iii).
c) Only iii).
d) Only i) and iii).
12 Swati ltd. took over running business worth ₹ 70,00,000 from George Ltd. by paying 20% 1
through bank draft and balance by issue of shares of ₹ 100 each at a premium of 10%. The entry
to be
passed by Swati Ltd for settlement will be :-
A. George Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 5,09090
To Bank A/c 14,00,00
To Statement of P&L 0
1
(Being settlement of amount due
to vendors)
B. George Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 5,09,090
To Bank A/c 14,00,001
(Being settlement of amount due to
vendors)
C. George Ltd. Dr. 70,00,000
To Share Capital A/c 50,90,909
To Securities Premium A/c 5,09,090
To BankA/c
(Being settlement of amount due to 14,00,000
vendors)
D. George Ltd. Dr. 70,00,000
To Share Capital A/c 50,00,000
To Securities Premium A/c 5,09,090
To Bank A/c 14,00,000
(Being settlement of amount due to
vendors)
13 A company forfeited 2,000 shares of ₹10 each, ₹7 called up ,on which only ₹4 per share(including 1
₹2premium) and ₹2 per share on first call has not been paid. Out of these 500 shares were re-issue
as fully paid that ₹750 was transferred to capital reser. On re-issue how much amount will be
transferred to bank?:
a) 3,250₹
b) 4,250₹
c) 2,250₹
d) 5,500₹
14 X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share of 1
goodwill and he is required to bring proportionate capital for 1/3rdshare in profits. The capital
contribution of Z will be:
a) ₹24,000.
b) ₹19,000.
c) ₹12,667.
d) ₹14,000.
15 A and B are partners. B draws a fixed amount at the end of every quarter. Interest on drawings is 1
charged @15% p.a. At the end of the year interest on B’s drawings amounted to ₹9,000. Drawings
of B were:
a) ₹24,000 per quarter.
b) ₹40,000 per quarter
c) ₹30,000 per quarter
d) ₹80,000 per quarter
OR
Shalu, Goper & Anino are partners carrying on garment business. Shalu withdrew ₹ 10,000 in the
beginning of each quarter. Goper, withdrew garments amounting to ₹ 15,000 to distribute it to
flood victims, and Anino withdrew ₹ 20,000 from his capital account. The partnership deed
provides for interest on drawings @ 10% p.a. The interest on drawing charged from Shalu, Goper&
Anino at the end of the year will be
a) Shalu- ₹ 4,800; Goper -₹ 1,000; Anino -₹ 2,000.
b) Shalu- ₹ 4,800; Goper- ₹ 1,000; Anino- ₹ 2,000.
c) Shalu- ₹ 2,500; Goper -₹ 750; Anino- Nil.
d) Shalu- ₹ 4,800; Goper - Nil; Anino- Nil.
16 On the day of dissolution of the firm ‘Yahoo Brothers’ had partner’s capital amounting to ₹1,50,000 , 1
external liabilities ₹35,000, Cash balance ₹8,000 and P&LA/c(Dr.) ₹7,000. If Realisation expense
and loss on Realisation amounted to₹5,000 and ₹25,000 respectively, the amount realised by sale of
assets is:
a) ₹1,64,000
b) ₹1,45,000
c) ₹1,57,000
d) ₹1,50,000
17 Leishna, Yangfo and Moasangla were partners in a firm running a successful business of baking 3
cookies. They had agreed to share profits and losses in the ratio of 3:2:1 respectively. After running
business successfully and without any disputes for 8 years,Yangfo decided to retire due to old age
and the remaining partners Leishna and Moasangla decided to share future profits and losses in the
ratio of 3 : 2. The accountant passed the following journal entry for Yangfo share of goodwill and
missed some information. Fill in the missing figures in the following Journal entry and calculate the
gaining ratio.
Date Particulars L.F Dr Cr
Leishna’s Capital A/c Dr ----------
Moasangla’s Capital A/c Dr 21,000
To Yangfo’s Capital A/c ------------
(Moasangla’s share of Goodwill
debited to the amounts of
continuing partners in their gaining
ratio)
18 P, Q and R were partners with fixed capital of ₹ 2,30,000, ₹1,20,000and ₹2,40,[Link] distributing 3
the profit of ₹5,20,000 for the year ended 31st March 2023 in their agreed ratio of 3 : 2 : 1. It was
observed that:
(1) Interest on capital was provided at 14% p.a. instead of 10% p.a.
You are required to pass adjustment entry in the beginning of the next year to rectify the above
omissions.
OR
Sana and Mihen are equal partners. Their capitals as on April 01, 2022 were Rs. 50,000 and Rs.
1,00,000 respectively. After the accounts for the financial year ending March 31, 2023 have been
prepared, it is observed that interest on capital @ 6% per annum and salary to Sana @ ₹5,000 per
annum, as provided in the partnership deed has not been credited to the partners’ capital accounts
before distribution of profits.
You are required to give necessary rectifying entries using P&L adjustment account.
19 Athikho plums Ltd. took over the running business of Likha Woods Ltd. having assets of 3
₹10,00,000 and liabilities of ₹ 1,70,000 by:
a) Issuing 8,000 8% Debentures of ₹ 100 each at 5% premium redeemable after 6 years @ ₹
110; and
b) Cheque for ₹ 50,000.
Pass the Journal entries in the books of Athikhos’s plums Ltd.
OR
Sesino Ltd. forfeited 100 shares of ₹10 each issued at10% premium ( ₹8 called up ) on which a
shareholder did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60
shares were reissued to Ranju as fully paid for ₹8 per share and 20 shares to Moniya as fully paid up
@ ₹12 per share at different intervals of time.
Prepare Share Forfeiture account.
20 Chinglen and Lanchen were partners in a firm. On 1st January,2022, the firm had assets of ₹90,000 3
including cash of ₹8,000. The partners’ capital account showed a balance of ₹70,000 and reserves
constituted the rest. The normal rate of return is 30% and the average profits of the firm are valued at
₹47,000.
You are required to find out the value of goodwill of the firm at 4years purchase of super profits.
21 Journalise the following transactions regarding realisation expenses: 3
a) Realisation expenses amounted to ₹2,500.
b) Realisation expenses amounting to ₹3,000 were paid by Amenla, one of the partners.
c) Realisation expenses ₹2,300 borne by Taruni,personally.
d) Chaoba, a partner was appointed to realise the assets, at acost of ₹4,000. The actual amount
of realisation amounted to ₹3,000.
22 Kaini Ltd. company was registered with an authorized capital of ₹ 10,00,000 divided into Equity 4
Shares of ₹ 10 each. Out of these 8,000 shares were issued to vendors as fully paid as purchase
consideration for a business acquired. The company offered 20,000 shares for public subscription
and called up ₹8 per share. All the money has been received. Show share capital in the books of the
company by preparing Balance Sheet as per Schedule III of the Companies Act, 2013, .Also prepare
notes to accounts.
Record necessary journal entries in each of the following cases:- 4
23.
a) 25,000,7% debentures of ₹100 each issued at par redeemable at 4%premium.
b) 20,000,7%debentures of ₹100 each issued at 5%discount redeemable at par.
c) 30,000, 7% debentures of 100each issued at 5% discount and redeemable at 2 ½%premium.
d) 35,000, 7%debentures of ₹. 100 each issued at 4%premium and redeemable at par.
24 Rido and Kaikho are partners . Pass necessary Journal entries for the following after various 6
assets and external liabilities have been transferred to Realisation A/c:-
a) Rido took over half of the investment worth ₹30,000 at 2% discount and the remaining
investment were sold at a profit of 18% of the book value.
b) Rido had given a loan of ₹89,000 to the firm which was duly paid.
c) Out of the Stock of ₹1,20,000; Kaikho took over 1/3 of the stock at a discount of 25%
and 50% of remaining stock was took over by a Creditor of ₹30,000 in full settlement of
his claim. Balance amount of stock realized at ₹25,000.
d) An outstanding bill for repairs and renewal of₹3,000 was settled through an unrecorded
asset which was valued at ₹10,000. Balance being settled in Cash.
e) Kaikho agreed to pay off his brother’s loan of ₹13,000 at a discount of 5%.
25 Neichute electronic Ltd. invited applications for 2,00,000 Shares of ₹ 10 each, issued at 20% 6
premium. Share was payable as ₹ 5 on application, ₹ 4 (including premium) on allotment and
balance on call. Public had applied for 3,20,000 shares out of which applications for 20,000 shares
were rejected and remaining were alloted on pro-rata basis.
Thoibi, an applicant of 15,000 shares failed to pay allotment and call money. Her shares were
forfeited and out of these 6,000 shares were reissued at a discount of ₹2 per share. Journalise.
OR
Attu Ltd. invited applications for issuing 1,00,000 Shares of ₹ 10 each at a premium of ₹2per share.
The amount was payable as₹ 4 on application (including premium ); ₹ 5on Allotment and balance
on call. Applications were received for 1,80,000 shares; of which application for 30,000 shares
were rejected and remaining applicants were alloted on pro-rata basis. Excess application money
was adjusted towards the sum due on allotment.
Mhabeni, holding 5,000 shares failed to pay d call money and her shares were forfeited. Out of the
forfeited shares 2,000 were re-issued at premium of ₹. 3 per share. Pass necessary entries and
prepare cash book.
26 Rokovi and kunia were partners in a firm sharing profits in the ratio 3:2. On 31st March 2023 their 6
balance sheet was as follows:
Liabilities Amount (₹) Assets Amount(₹)
Capital A/cs: Fixed Assets (Tangible) Goodwill3,60,000
Rokovi 3,00,000 Investments Stock 50,000
Kunia Debtors 40,000
1,50,0004,50,000 Less: Provision for Doubtful
Current A/cs: 74,000
Debts.
Rokovi Kunia.
50,000 1,00,000
4,000
10,000 60,000 96,000
Creditors 75,000 Bank 25,000
General Reserve 60,000
6,45,000 6,45,000
With an aim to expand business it is decided to admit Chinkhei as a partner on 1st April 2023 on the
following terms:
a) Provision for doubtful debts is to be increased to 6% of debtors.
b) An outstanding bill for repairs ₹ 50,000 to be accounted in the books
c) An unaccounted interest accrued of ₹ 7500 be provided for .
d) Investment were sold at book value.
e) Half of stock was taken by Rokovi at ₹42,000 and remaining stock was also to be revalued
at the same rate.
f) New profit-sharing ratio of partners will be 5:3:2.
g) Chinkhei will bring ₹ 1,00,000 as capital and his share of goodwill which was valued at
twice the average profit of the last three years ended 31st March 2023, 2022 and 2021 were ₹
1,50,000, ₹ 1,30,000 and ₹ 1,70,000 respectively. Pass necessary journal entries.
OR
L, M and N were partners in a firm sharing profit & losses in the ratio of 2:2:1. On 31st March 2023,
their Balance Sheet was as follows:
Liabilities Amount(₹) Assets Amount(₹)
Creditors 54,000 Bank 55,000
Debtor. 12,000
Bill payable 24,000 Less: provision for debts. 800 11,200
Outstanding rent 4,400 Stock 18,000
Provision for legal claim 12,000
Capital A/C s: Furniture
L-92,000 Premises 8,200
M -60,000
N -40,000 1,92,000 1,94,000
2,86,400 2,86,400
On 31st March 2023 , N retired from the firm and remaining partners decided to carry on business. It
was decided to revalue assets and liabilities as under :
a) Premises will be appreciated by 5%.
b) Furniture will be appreciated by ₹2,000.
c) Stock will be depreciated by10%.
d) Provision for bad debts was to be made at 5%on debtors.
e) Provision for legal damages to be made for ₹14,400.
f) Goodwill of the firm is value at ₹48,000.
g) Gain on revaluation account amounted to ₹ 7,400.
h) ₹50,000from N’s capital A/c will be transferred to his loan A/c and the balance be paid by cheque.
Prepare Partner’s Capital accounts and Balance sheet of firm after N’s retirement.
27 Honey, Nanio and Purple were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes 6
its books on 31st March every year. On 30th September 2022 Purple died. The partnership deed
provided that on the death of the partner her executors will be entitled to the following:
a) Balance in her capital account which amounted to ₹3,15,000and interest on capital @9%.
b) Her share in the profits of the firm till the date of her death amounted to ₹70,000.
c) Her share in the goodwill of the firm. The goodwill of the firm on Purple’s death was valued at
₹ 1,50,000.
Calculate the amount to be transferred to Purple’s executors Account .
28 Akhriebu Ltd on July 1st 2022 issued 20,000, 9% debentures of ₹100 each at 8%premium and redeemable 6
at a premium of 15% in four equal installments starting from the end of the third year. The balance in
securities premium on the date of issue of debentures was ₹80,000. Interest on debentures was to be paid
on 31st mar every year.
You are required to pass the necessary entries and also prepare Loss on issue of Debentures account
PART B
(Analysis of Financial Statements)
29 Balance sheet of a company is required to be prepared in the format given in……. 1
a) Schedule III Part II
b) Schedule III Part I
c) Schedule III Part III
d) Table A
OR
. Common size statements are prepared
a) In the form of ratios.
b) In the form of percentages.
c) In both of the above
d) None of the above.
30 The most commonly used tools for financial statement analysis are: 1
a) Comparative statements
b) Common size statements
c) Accounting ratios.
d) All of these.
31 According to prescribed order of assets in a company’s Balance Sheet.................assets should be shown first of 1
all.
a) Non current Assets
b) Current assets
c) Current liabilities
d) Loans and advances.
32 Interest accrued but not Due on debentures will be shown under the heading: 1
a) Current assets
b) Current liabilities
c) Contingent liability
d) Non current Assets.
33 Classify the following items under Major heads and Sub heads (If any) in the balance sheet of a 3
Company as per schedule III of the Companies Act 2013.
i. Loose Tools ii. Loan repayable on demand
iii. Provision for Retirement benefits iv. Pre-paid Insurance
v. Bank overdraft vi. Shares in Listed Companies
34 From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st 4
March 2022 and 31st March 2023,prepare a common size statement of profit & loss:
Particulars Note No. 2022-23(₹) 2021-22(₹)
Revenue from operations 8,00,000 10,00,000
Gross Profit 60% 70%
Other Expenses 2,20,000 2,60,000
Tax Rate 50% 50%
OR
From the following information prepare comparative statement o f Profit& Loss
Particulars Note 2022-23(₹) 2021-22(₹)
No.
Revenue from operations 20,00,000 15,00,000
Other Income 10,00,000 4,00,000
Expenses 21,00,000 15,00,000
Income Tax Rate was 50%.