BBKPK6854N

SAI VINAYAK
INSTITUTE
Class XII Accountancy
Academic Session (2023-24)
Time Allowed: 2-hour Max Marks: 50

General Instructions:
This question paper contains 30 questions. All questions are compulsory.
 Questions no. 1 to 23 carry 1 mark each.
 Questions no. 24 to 26 carry 3 marks each.
 Questions no. 27 to 29 carry 4 marks each.
 Questions no. 30 carry 6 mark.

Question: Read the following hypothetical paragraph and answer the questions from 1-3
A, B and C are partners sharing profit in the ratio 3:2:1. Their capital contribution being ₹ 40,000, ₹ 30,000 and ₹ 20,000
respectively. The partners wanted to expand their business so they decided to double their capital. It was duly followed by A
and B. But due to financial problem C was unable to follow the decision. So, the partners decided to admit a new partner D
who will bridge the shortfall of capital. The new partner will get half of the share of C's capital which will be sacrificed by C
alone. The new partner brings in the required capital and ₹ 10,000 for his share of premium.
1. What will be the new profit-sharing ratio?
a. 6:4:1:1
b. 3:2:1:1
c. 5:4:2:2
d. None of these
2. What amount of capital bought in by the new partner
a. ₹ 20,000
b. ₹ 30,000
c. ₹ 40,000
d. ₹ 10,000
3. What is the value of goodwill of the firm?
a. ₹ 1,00,000
b. ₹ 1,20,000
c. ₹ 1,50,000
d. ₹ 50,000

4. C and D were partners in a firm. E was admitted as a new partner for 1/6th share. E acquired 1/3rd of his share from C and the
remaining from D
The sacrificing ratio of C and D was:
(a) 1:2 (b) 1:1 (c) 16:9 (d) 2:1

5. A, B and C were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 01.04.2023, they agreed to
share profits and losses equally. Due to change in the profit sharing ratio, B's gain or sacrifice will be
(a) Gain 1/30 (b) Sacrifice 1/3 (c) Gain 5/30 (d) Sacrifice 4/30

6. A and B were partners in a firm. They admitted C as a new partner for 1/3rd share in the profits of the firm which he acquired
from A. A's new share in the profit will be:
(a) 1/2 (b) 1/4 (c) 1/3 (d) 1/6

7. P, Q and R were partners in a firm. On 31.03.2022, R died. R's share was taken over by P. P's new share in the profits of the
firm will be:
(a) 2/3 (b) 1/3 (c) 1/2 (d) 3/4

8. Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of 3:2. Madhu withdrew ₹ 20,000
in each quarter during the year ended 31.03.2023. Interest on drawings was to be charged @ 6% p.a. Interest on Madhu's
drawings will be:
(a) ₹ 3,000 (b) ₹ 2,400 (c) ₹ 1,800 (d) ₹ 4,800

9. A, B and C are partners in a firm sharing profit & losses in the ratio of 3:2:1. On 1st April 2019 B decided to retire. On the
date of retirement after all adjustments the capital account of B showed a credit balance of ₹ 1,39,600. He was paid in cash
₹ 19,600 and balance amount transferred to his loan account payable in three equal annual instalments. Amount of loan along
with interest repaid on 31.03.2021 will be:
(a) ₹ 47,000 (b) ₹ 44,800 (c) ₹ 42,400 (d) ₹ 40,000
10. Vinod, Yuvraj and Simran are partners sharing profits in the ratio of 3:2:1. They admit Satish as a new partner for 1/10 th
Share.
Balance Sheet (Extract only)
Liabilities Amount Assets Amount
Furniture 60,000
Some part of the Furniture was taken over by Vinod for ₹ 18,000 (Being 25% less) and remaining Furniture was sold at a
gain of 20%. The above transaction would result in:
(a) Revaluation Loss ₹ 6,000
(b) Revaluation Gain ₹ 7,200
(c) Revaluation Loss ₹ 1,200
(d) Revaluation Gain ₹ 1,200

11. Rishi and Gaurav are partners. They admit Saakshi as a new partner for 1/5th share. For this purpose, The Goodwill of the firm
to be calculated on the basis of 3 years purchase of last 3 years weighted average profits. The profits/loss for the last 3 years
were:
Year 2018-19 2019-20 2020-21
Profits 1,25,000 …? 3,00,000
Weights 1 2 3
Goodwill of the firm is ₹ 7,12,500. Calculate the profit of 2019-20.
(a) ₹ 3,50,000 (b) ₹ 1,00,000 (c) ₹ 2,00,000 (d) ₹ 4,00,000

12. Vinod and Yuvraj are partners sharing profits in the ratio of 4:3. They admit Satish as a new partner for 3/7 share in profit.
New profit sharing ratio was 2:2:3.
Cash Balance (before admission)…………… ₹ 50,000
Cash Balance (after admission) ……..………₹ 3,10,000
Following entry was found in the book:
Date Particulars L.F. Debit Credit
Vinod’s Capital A/c Dr. 16,000
Yuvraj’s Capital A/c Dr. 8,000
To Cash A/c 24,000
(Being 40% of the goodwill premium withdrawn)
How much capital brought in by Satish?
(a) ₹ 2,60,000 (b) ₹ 1,80,000 (c) ₹ 2,24,000 (d) ₹ 2,00,000

13. The net profits for the last 3 years were: 2018-19 = ₹ 80,000; 2019-20 = ₹ 1,00,000 and 2020-21 = ₹ 80,000. On 1st July
2019, a Minor Repair to Machinery amounting to 20,000 was wrongly debited to Machinery Account. Depreciation on
Machinery was charged @ 20% p.a. on written down value method excluding repairs. Goodwill of the firm was to be valued
at 2 years purchase of the average profits of last three years. The goodwill of the firm will be:
(a) ₹ 1,64,267 (b) ₹ 1,62,000 (c) ₹ 1,64,667 (d) ₹ 1,60,000

14. Yuvraj and Vinod are partners, sharing profits in the ratio of 3:2. Their capitals were Rs.1,60,000 and Rs.1,00,000
respectively. Mayank is admitted as a new partner for 1/5th share of profit.
Mayank brings his share of premium for goodwill in cash out of which Vinod's Capital Account was credited with Rs.17,600
for his sacrifice.
With what amount Yuvraj's Capital Account is to be credited?
(a) ₹ 26,400 (b) ₹ 17,600 (c) ₹ 44,000 (d) ₹ 15,400

15. A, B and C are partners sharing profits in the ratio of 3:1:1 with capitals of ₹ 3,00,000; ₹ 1,00,000; and ₹ 1,00,000
respectively. On 1st April 2021, C decided to retire from the firm and new profit sharing ratio between A and B is 3:1.
Balance of Capital Accounts of the partners will be:
(i) Investment worth 10,000 taken by C at 10,000 (a) A = 2,98,800; B = 99,600; C = 91,600
(ii) Investment worth 10,000 taken by C at 12,000 (b) A = 2,89,200; B = 1,00,400; C = 1,00,400
(iii) Investment worth 10,000 taken by C at 8,000 (c) A = 3,00,000; B 1,00,000; C = 90,000
(iv) Investment worth 10,000 taken by A at 12,000 (d) A = 3,01,200; B 1,00,400; C 88,400
Choose the correct answer:
(a) i-d; ii-a; iii-b; iv-c (b) i-c; ii-a; iii-d; iv-b
(c) i-b; ii-d; iii-a; iv-c (d) i-c; ii-d; iii-a; iv-b

16. C, D and E were partners in a firm sharing profits and losses in the ratio of 5:3:2. They admitted F as a new partner for 1/4 th
share in the profits which was sacrificed by C, D and E in the ratio of 2:1:2. C's new share in the profits will be:
(a) 2/5 (b) 3/5 (c) 3/10 (d) 4/20

17. X and Z were partners in a firm with capitals of ₹ 45,000 each. They admitted Y as a new partner for 1/3rd share in the profits
of the firm. Y brought ₹ 60,000 as his capital. Based on Y's share in the profits of the firm and his capital contribution, the
goodwill of the firm will be:
 (a) ₹ 1,80,000 (b) ₹ 1,50,000 (c) ₹ 30,000 (d) ₹ 90,000
18. Match the followings:
A, B and C are partners sharing profits in the ratio of 3:3:4. On 01.04.2021 B retire from the firm and new profit sharing ratio
will be 7:3. Capital Account of partners will be :
(i) General reserve ₹ 10,000 (a) A = 3,000 (Debit); B 3,000 (Debit);
C = 4,000 (Debit)
(ii) General reserve ₹ 10,000 (Partner do not want to distribute) (b) A = 3,000 (Credit); B = 3,000 (Credit);
C = 4,000 (Credit)
(iii) Advertisement suspense ₹ 10,000 (c) A = 4,000 (Credit); B = 3,000 (Debit);
C = 1,000 (Debit)
(iv) Advertisement suspense ₹ 10,000 (Partner do ₹ not want to (d) A = 4,000 (Debit); B = 3,000 (Credit);
distribute) C = 1,000 (Credit)
Choose the correct answer:
(a) (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c) (b) (i)-(c); (ii)-(a); (iii)-(d); (iv)-(b)
(c) (i)-(b); (ii)-(d); (iii)-(a); (iv)-(c) (d) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

19. Josh and Jeevan were partners in a firm. During the year ended 31.03.2022 Jeevan withdrew ₹ 5,000 per month starting from
30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number
of months for which interest on Jeevan's total drawings will be charged is:
(a) 6 months (b) 6.5 months (c) 4.5 months (d) 5 months

20. After doing the adjustments regarding drawings ₹ 40,000, share of profit ₹ 24,000 and the additional capital introduced
₹ 32,000, the capital of Ashok, a partner, as on 31.03.2022 was ₹ 5,00,000. His capital as on 01.04.2021 was:
(a) ₹ 4,84,000 (b) ₹ 5,16,000 (c) ₹ 4,46,000 (d) ₹ 5,96,000

21. S and T were partners in a firm sharing profits and losses in the ratio of 3:2. They admitted U as a new partner in the firm. On
U's admission there existed a provision for bad and doubtful debts of ₹ 7,000. It was decided to write off ₹ 3,000 as bad
debts. The remaining debtors were considered as good. The amount to be debited/credited to Revaluation Account on account
of the above treatment will be:
(a) Debit ₹ 3,000 (b) Credit ₹ 4,000 (c) Debit ₹ 7,000 (d) Debit ₹ 4,000

22. Nobita (Debtor) from whom an amount was due, he was declared insolvent and paid only 70 paise in a rupee and remaining
amount ₹ 7,200 was written off as bad debts. What amount is received by the firm?
(a) ₹ 24,000 (b) ₹ 16,800 (c) ₹ 15,000 (d) ₹ 16,500

23. K and L were partners in a firm. Their partnership deed provided that interest on partner's drawings will be charged @ 12%
per annum. Interest on L's drawings for the year ended 31.03.2022 was calculated at ₹ 900.
The necessary journal entry for charging interest on L's drawings will be
Particulars Debit (₹) Credit (₹)
(a) Profit and Loss Appropriation A/c 900 900
To Interest on Drawings A/c
(b) Interest on Drawings A/c 900
To Profit and Loss Appropriation A/c 900
(c) L's Capital/Current A/c 900
To Interest on Drawings A/c 900
(d) Interest on Drawings A/c 900
To Partner's Capital/Current A/c 900

24. Nisha, Priya and Rajat were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books on 31 st March every
year. Priya died on 1st July 2022. On Priya's death, the goodwill of the firm was valued at ₹ 3,00,000 and her share in the profits
of the firm till the time of her death was to be calculated on the basis of previous year's profit which was ₹ 6,00,000.
Pass necessary journal entries for the treatment of goodwill and Priya's share of profit at the time of her death.

25. Sharma and Verma were partners in a firm sharing profits and losses in the ratio of 3:2. Their fixed capitals were ₹ 14,00,000
and ₹ 10,00,000 respectively. The partnership deed provided for the following:
(i) Interest on capital @ 10% per annum.
(ii) Interest on drawings @ 12% per annum.
During the year ended 31.03.2023, Sharma withdrew ₹ 2,00,000 and Verma withdrew ₹ 1,00,000. After preparing the
accounts for the year ended 31.03.2023, it was realised that interest on capital was not allowed and interest on drawings was
not charged.
Showing your working notes clearly pass single journal entry in the books of the firm to rectify the above error.

26. P and Q were partners in a firm sharing profits and losses in the ratio of 2:1. On 01.04.2022, they admitted R as a new partner
for 1/10th share of profits with a guaranteed minimum of ₹ 50,000. P and Q continued to share profits as before but agreed to
 share any deficiency on account of guarantee to R in the ratio of 3:2. The net profit of the firm for the year ended 31.03.2023
was ₹ 3,00,000.
Pass necessary journal entries in the books of P and Q for the above transactions

27. On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of ₹ 6,00,000, ₹ 6,00,000 and ₹ 3,00,000
respectively. The partnership deed provided for the following:
(i) Interest on capital @ 10% per annum.
(ii) Interest on drawings @ 12% per annum.
(iii) An annual salary of ₹ 1,20,000 to Avi.
(iv) Profits and losses were to be shared in the ratio of their capitals.
The net profit of the firm for the year ended 31.03.2023 was ₹ 3,08,000. Interest on partners' drawings was Ravi ₹ 4,800,
Kavi ₹ 4,200 and Avi ₹ 3,000.
Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023

28. B, C and D were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31.03.2022 their Balance Sheet was as
follows:
Balance Sheet of B, C and D as at 31st March, 2022
Liabilities ₹ Assets ₹
Creditors 1,10,000 Building 2,00,000
Reserve Fund 60,000 Machinery 3,00,000
Capitals: Stock 2,10,000
B 2,50,000 Debtors 80,000
C 2,50,000 Bank 80,000
D 1,50,000 7,00,000
8,70,000 8,70,000
C died on 01.10.2022. On C's death, goodwill was valued at ₹ 1,87,500. The revaluation of assets and reassessment of
liabilities resulted into a loss of ₹ 10,000. The partnership deed provided that on the death of a partner, goodwill will be
treated without opening goodwill account. C's share of profit till the date of his death was calculated at ₹ 70,000.
Prepare C's Capital account to be presented to his executors at the time of his death and also C's Executor's account, assuming
that half the amount due to him was paid immediately on C's death.

29. Giriija, Yatin and Zubin were partners sharing profits in the ratio 5:3:2. Zubin died on 1 August, 2015. Amount due to Zubin's
executor after all adjustments was 90,300. The executor was paid 10,300 in cash immediately and the balance in two equal
annual instalments with interest @ 6% p.a. starting from 31" March, 2017. Accounts are closed on 31 March each year.
Prepare Zubin's Executors Account till he is finally paid.

30. A and B were partners in a firm sharing profits and losses in the ratio of 3:1. On 31.03.2022, their Balance Sheet was as
follows:
Balance Sheet of A and B as at 31st March, 2022
Liabilities ₹ Assets ₹
Outstanding Expenses 3,000 Bank 40,000
Bills Payable 20,000 Stock 60,000
Sundry Creditors 1,40,000 Bills Receivable 70,000
General Reserve 80,000 Debtors 1,00,000
Capitals Less: Prov. 5,000 95,000
A 2,00,000 Furniture 85,000
B 3,00,000 5,00,000 Machinery 1,10,000
Land and Building 2,83,000
7,43,000 7,43,000
On the above date, C was admitted as a new partner for 1/5th share in the profits on the following terms:
(i) C will bring ₹ 2,00,000 as her capital and ₹ 1,60,000 as her share of goodwill premium.
(ii) Stock will be appreciated by ₹ 1,500.
(iii) Debtors of ₹ 5,000 will be written off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.
(iv) Capital of old partners should be in old profit sharing ratio. Adjustment made through Current Account.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet.