Navy Children School, Delhi.

Half Yearly Exam

CLASS XII (2023-24)
Sample Paper-2
Time : 3 Hrs. Max.Marks: 80

General Instructions:

1.This question paper contains 34 questions. All questions are compulsory.

2.Question No. 1 to 20 carries 1 mark each.

3.Question No. 21 to 26 carries 3 marks each.

4.Question No. 27 to 29 carries 4 marks each.

5.Question No. 30 to 34 carries 6 marks each.

Q1.At the time of death of the partner, the Share of profit or loss till the date
of death of the deceased partner is transferred to
A. Revaluation Account
B. Realization Account
C. Profit and Loss Suspense Account
D. Profit and Loss Appropriation Account.

Q2.X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. X

retired and the new profit sharing ratio between Yand Z will be 5 : 4. On Xs
retirement the goodwill of the firm was valued at ₹54,000. Journal entry will
be:
1. Y’s Capital A/c Dr. 24,000 Z’s Capital A/c Dr. 30,000 To X’s Capital A/c
54,000
2. Y’s Capital A/c Dr. 15,000 Z’s Capital A/c Dr. 12,000 To X’s Capital A/c
27,000
3. Y’s Capital A/c Dr. 12,000 Z’s Capital A/c Dr. 15,000 To X’s Capital A/c
27,000
4. X’s Capital A/c Dr. 27,000 To Y’s Capital A/c 12,000 To Z’s Capital A/c
15,000
Q3.Puja, Priya, Pratistha are partners sharing profits and losses in the ratio
of 5 : 3 : 2. Puja retires. Her share is taken by Priya and Pratistha in the ratio
of 2 : 1. Calculate the new profit sharing ratio.
A.19:30
B: 19:11
C.11:19
D.60:30

Q4.X and Y shared profits and losses in the ratio of 3 : 2. With effect from 1st
April, 2018 they agreed to share profits equally. The goodwill of the firm was
valued at 60,000. The necessary single adjustment entry will be:
1. Dr. Y and Cr. X with ₹ 6,000
2. Dr. X and Cr. Y with ₹ 6,000
3. Dr. X and Cr. Y with ₹ 600
4. Dr. Y and Cr. X with ₹ 600

Q5.Kumar, Verma and Naresh were partners in a firm sharing profit & 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.
A.Verma’s Capital A/c Dr 2350
To P&L Suspense A/c 2350
B.Verma’s Capital A/c Dr 2350
To P&L A/c 2350
C.P&L Suspense A/c ….. 2350
To Verma’s Capital A/c 2350
D.None of these

Q6.A, B and C are partner sharing profits in the ratio of 1 : 2 : 3. On 1-4-2016

they decided to share the profits equally. On the date there was a credit
balance of 1,20,000 in their Profit and Loss Account and a balance of
1,80,000 in General Reserve Account. Instead of closing the General
Reserve Account and Profit and Loss Account, it is decided to record an
adjustment entry for the same. In the necessary adjustment entry to give
effect to the above arrangement:
 1. Dr. A by ₹ 50,000; Cr. B by ₹ 50,000.
2. Cr. A by ₹ 50,000; Dr. B by ₹ 50,000.
3. Dr. A by ₹ 50,000; Cr. C by ₹ 50,000.
4. Cr. A by ₹ 50,000; Dr. C by ₹ 50,000.

Q7.A, B and C sharing profits and losses in the ratio of 4 : 3 : 2, decide to

share profits and losses in the ratio of 2 : 3 : 4 with effect from 1st April, 2016.
Following is an extract of their Balance Sheet as at 31st March, 2016:

Show the accounting treatment under the following case:

If the market value of Investments is ₹ 6,00,000.
A. A’s Capital A/c … Dr 12000
To B’s Capital A/c 12000
B.B’s Capital A/c … Dr 12000
To A’s Capital A/c 12000
C.C’Capital A/c … Dr 12000
To A’s Capital A/c 12000
D.A’Capital A/c … Dr 12000
To C’s Capital A/c 12000
Q8.A firm earns 1,10,000. The normal rate of return is 10%. The assets of
the firm amounted to 11,00,000 and liabilities to 1,00,000. Value of goodwill
by capitalisation of Average Actual Profits will be:
1. ₹ 2,00,000
2. ₹ 10,000
3. ₹ 5,000
4. ₹ 1,00,000

Q9.The Goodwill of the firm is NOT affected by:

1. Location of the firm.
2. Reputation of firm.
3. Better customer service.
4. None of the above.
Q10.When A and B sharing profits and losses in the ratio of 3 : 2 admit C as
a partner giving him 15th15th share of profits. This will be given by A and B:
1. Equally.
2. In the ratio of their profits.
3. In the ratio of their capitals.
4. None of the above.

Q11.Choose the correct alternative-

At the time of admission of a partner, undistributed profits appearing in the
balance sheet of the old firm is transferred to the capital account of:
1. Old partners in old profit sharing ratio.
2. Old partners in new profit sharing ratio.
3. All the partner in the new profit sharing ratio.
4. None of the above.

Q12.X and Y are partners sharing profits in the ratio of 4 : 3. Z is admitted

for 15th15th share and he brings ₹ 1,40,000 as his share of goodwill in cash
of which ₹ 1,20,000 is credited to X and remaining amount to Y. New profit
sharing ratio will be:
1. 4 : 3 : 5
2. 2 : 2 : 1
3. 1 : 2 : 2
4. 2 : 1 : 2

Q13.Profit and losses of the firm are to be shared equally

____________________.
1. When the partnership deed is silent about it
2. As per Partnership Act in the absence of anything in the partnership
deed to the contrary.
3. Both the circumstances
4. None of the situations

Q14.Current Account of a partner:

1. Will always have a credit balance.
2. Will always have a debit balance.
 3. May have a debit balance or a credit balance.
4. Can never have a debit balance.

Q15.A and B are partners. B draws a fixed amount at the end of every
month, Interest on drawings is charged @15% p.a. At the end of the year
interest on, B's drawings amounts to ₹ 8,250. Drawings of B were:
1. ₹ 12,000 p.m.
2. ₹ 10,000 p.m.
3. ₹ 9,000 p.m.
4. ₹ 8,000 p.m.

Q16.Which of these transaction would effect current ratio:

1. Realization of Bills receivable
2. Discounting of Bills receivable
3. Disposal of inventory
4. Withdraw of cash from bank for office purpose

Q17.Which of the following is not transferred to Realisatsion Account ?

1. Balance of Cash Account
2. Balance of Reserves
3. Balance of Profit & Loss Account
4. All of the above

Q18.A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and
indirect expenses are ₹ 3,00,000, the amount gross profit will be:
1. ₹ 13,00,000
2. ₹ 5,00,000
3. ₹ 2,00,000
4. ₹ 12,00,000

Q19.Carriage Inwards is shown in the Statement of Profit and Loss under:

1. Cost of Materials Consumed.
2. Other Expenses.
3. Employees Benefit Expenses.
4. Any of the above.
Q20.1,000; 10% Debentures of ₹ 100 each out of 10,000, 10% Debentures
are redeemable within the 12 months of the date of Balance Sheet. They will
be shown in the Current Liabilities as:
1. Short-term Borrowings.
2. Other Current Liabilities.
3. Trade Payables.
4. Short-term Provisions.

Q21.The following figures have been taken from the published accounts of G.
Associates for the two successive years:

Comment upon the profitability for the two years.

Q22.Compute Gross Profit Ratio, Working Capital Turnover Ratio, Debt

Equity Ratio and Proprietary Ratio from the following information:

Or
A company had a liquid ratio of 1.5 and current ratio of 2 and inventory
turnover ratio 6 times. It had total current assets of ₹ 8,00,000. Find out
annual sales if goods are sold at 25% profit on cost.
Calculate debt to capital employed ratio from the following information.

Shareholder funds ₹ 15,00,000

 8 % Debenture ₹ 7,50,000
Current liabilities ₹ 2,50,000
Non -current Assets ₹ 17,50,000
Current Assets ₹ 7,50,000

Q23.Identify the major heads under which the following items will be shown
in the Balance Sheet of a company as per Schedule III of Companies Act,
2013:
1. Provision for Tax.
2. Loan payable on demand.
3. Computer and related equipment.
4. Goods acquired for trading.

Q24.Assuming the capitals are fixed in Question and give the necessary
adjusting journal entry.
A and B are partners in a business sharing profits and losses in the ratio of 3 :
2. Their capitals on 31st March, 2018, after the adjustment of net profits and
drawings amounted to ₹ 2,00,000 and ₹ 1,50,000 respectively. Later on, it
was discovered that interest on Capital at 8% per annum, as provided for in
the partnership deed, had not been credited to the partner's capital accounts
before the distribution of profits. The year's net profit amounted to ₹ 75,000
and the partners had withdrawn ₹ 24,000 each. Instead of altering the signed
balance sheet, it was decided to make an adjustment entry at the beginning
of the new year crediting or debiting the Partner's Accounts. Give the
necessary journal entry as also a statement of details arriving at the amount
of adjusting entry.

Q25.A, Band C are partners in a firm whose books are closed- on March 31st
each year. B died on 30th June 2009 and according to the agreement, the
share of profits of a deceased partner up to the date of the death is to be
calculated on the basis of the average profits for the last five years. The net
profits for the last 5 years have been: 2005, ₹ 14,000; 2006, ₹ 18,000; 2007,
₹ 16,000; 2008, ₹ 10,000 (loss) and 2009, ₹ 16,000. Calculate B’s share of
the profits up to the date of death and pass necessary journal entry.
Q26.Bhuwan and Shivam were partners in a firm sharing profits in the ratio of
3 : 2. Their capitals were ₹ 50,000 and ₹ 75,000 respectively. They admitted
Atul on 1st April, 2018 as a new partner for 14th14th share in the future profits.
Atul brought ₹ 75,000 as his capital. Calculate the value of goodwill of the firm
and record necessary journal entries for the above transactions on Atul's
admission.

Q27.Compute the value of goodwill on the basis of four years’ purchase of

the average profits based on the last five years? The profits for the last five
years were as follows:
Year Amount.(₹)
2013 40,000
2014 50,000
2015 60,000
2016 50,000
2017 60,000

Q28.The average profit earned by a firm is ₹ 1,00,000 which includes

undervaluation of stock of ₹ 40,000 on an average basis. The capital
invested in the business is ₹ 6,30,000 and the normal rate of return is 5%.
Calculate goodwill of the firm on the basis of 5 time the super profit.

Q29.X and Y are partners sharing profits in the ratio of 2 : 1. On 31st March,
2018, their Balance Sheet showed General Reserve of ₹ 60,000. It was
decided that in future they will share profits and losses in the ratio of 3 : 2.
Pass necessary journal entry in each of the following alternative cases:
1. If General Reserve is not to be shown in the new Balance Sheet.
2. If General Reserve is to be shown in the new Balance Sheet.

Q30.Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Their
Balance Sheet at 31st March, 2018 stood as:
Raman is admitted as a new partner introducing a capital of ₹ 16,000. The
new profit-sharing ratio is decided as 5 : 3 : 2. Raman is unable to bring in
any cash for goodwill. So it is decided to value the goodwill on the basis of
Raman's share in the profits and the capital contributed by him. Following
revaluation s are made
1. Stock to depreciate by 5%;
2. Provision for Doubtful Debts is to be ₹ 500;
3. Furniture to depreciate by 10%;
4. Building is valued at ₹ 40,000.
Show necessary Ledger Accounts and Balance Sheet of new firm.
Q31.The following is the Balance Sheet of Gupta and Sharma as on
December 31, 2006:
The firm was dissolved on December 31, 2006 and asset realised and
settlements of liabilities as follows:
1. The realisation of the assets were as follows:
₹
Sundry Debtors52,000
Stock 42,000
Bills receivable 16,000
Machinery 49,000
1. Investment was taken over by Gupta at agreed value of ₹ 36,000 and
agreed to pay of Mrs. Gupta’s loan.
2. The Sundry Creditors were paid off less 3% discount.
3. The realisation expenses incurred amounted to ₹ 1,200. Journalise the
entries to be made on the dissolution and prepare Realisation Account,
Bank Account and Partners Capital Accounts.

Q32.The balance sheet of Tanish, Danish and Satish, who were sharing
profits in the ratio of 5 : 3 : 2 as at 31st March, 2020 was as follows

Balance Sheet
as at 31st March, 2020

Tanish retired on 31st March, 2020. It was agreed that

(i) Goodwill of the firm was valued ₹ 1,76,000.
(ii) Fixed assets are to be depreciated by ₹ 5,500.
(iii) Make a provision for doubtful debts at 5% on debtors.
(iv) New profit sharing ratio of Danish and Satish will be 2 : 3.
(v) A liability for claim, included in creditors for ₹ 22,000 is settled at ₹ 17,600.
The amount to be paid to Tanish ₹ 2,63,450 and to Danish ₹ 4,510 and cash
brought in by Satish ₹ 2,12,960
by leaving a balance of ₹ 33,000 in the bank.
Prepare revaluation account and partners’ capital account.
Q33.Soniya, Charu and Smita started a partnership firm on April 1, 2017.
They contributed ₹ 5,00,000, ₹ 4,00,000 and ₹ 3,00,000 respectively as their
capitals and decided to share profits and losses in the ratio of 3 : 2 : 1.The
partnership provides that Soniya is to be paid a salary of ₹ 10,000 per month
and Charu a commission of ₹ 50,000. It also provides that interest on capital
be allowed @6% p.a. The drawings for the year were Soniya ₹ 60,000,
Charu ₹ 40,000 and Smita ₹ 20,000. Interest on drawings was charged as ₹
2,700 on Soniya’s drawings, ₹ 1,800 on Charu’s drawings and ₹ 900 on
Smita’s drawings. The net amount of profit as per Profit and Loss Account for
the year 2015-16 was ₹ 3, 56,600.
1. Prepare profit and loss appropriation account
2. Show capital accounts of the partners.

Q34.R, S and T were partners sharing profits and losses in the ratio of 5 : 3 :
2 respectively. On 31st March, 2018, Their Balance Sheet stood as:

T died on 1st August, 2018. It was agreed that:

1. Goodwill be valued at 2 1/2 years' purchase of average of last 4 years'
profits which were: 2014-15: ₹ 65,000; 2015-16: ₹ 60,000 and 2016-
17: ₹ 80,000 2017-18 ₹ 75,000.
2. Machinery be valued at ₹ 1,40,000; Patents be valued at ₹
40,000; Leasehold be valued at ₹ 1,25,000 on 1st August, 2018.
3. For the purpose of calculating T's share in the profits of 2018-19, the
profits in 2018-19 should be taken to have accrued on the same
scale as in 2017-18.
 4. A sum of ₹ 21,000 to be paid immediately to the Executors of T and the
balance to be paid in four equal half-yearly instalments together with
interest @ 10% p.a.
Pass necessary journal entries to record the above
transactions and T's Executors ' Account.

OR
Chander and Damini were partners in a firm sharing profits and losses equally.
On 31st March, 2017 their balance sheet was as follows

On 1st April, 2017, they admitted Elina as a new partner for 1/3rd share in the
profits on the following conditions.
(i) Elina will bring ₹ 3,00,000 as her capital and ₹ 50,000 as her share of
goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of ₹ 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful
debts will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of
₹ 8,000 will be created for the same.
Prepare revaluation account and partners’ capital accounts,