SATISH ACCOUNTS CLASSES,

JANAK PURI, NEW DELHI, 10058

UNIT TEST – 2 (2024-25)
ACCOUNTANCY

CLASS – XII (SET A)

Time: 2 hrs. Max. Marks: 50

General Instructions:
1. There are 18 questions in the question paper. All questions are
compulsory.
2. Question nos. 1 to 10 are carrying 1 marks each.
3. Question nos. 11 to 14 are carrying 4 marks each.
4. Question nos. 15 to 18 are carrying 6 marks each.

1. On 1st January 2018 Capital of A and B was Rs 2,00,000 and Rs 1,00,000.On 1st
July 2018; they decided that capital should be Rs 1,50,000 each. Interest on capital of
Partners @ 10% p.a. for the year 2018 will be:
(a) Rs 20,000; Rs 10,000 (b) Rs 15,000 each
(c). Rs 17,500; Rs 12,500 (d) None of these

2. During the year ending 31st March 2019 Hari withdrew Rs 60,000 Interest on
drawings @ 9% p.a. will be:
(a) Rs 5,400 (b) Rs 2,700 (c) Rs 2,925 (d) Rs 2,750

3. A and B are partners with a fixed capital of Rs 3 lakh and Rs 2 lakh respectively.
After closing the accounts for the year ending 2018 they found that interest on capital
@ 10% P.a. was omitted to be provided. The adjustment entry will be:
(a) Cr. A’s Current A/c Rs 30,000 and B’s Current A/c Rs 20,000
(b) Cr. A/s Current A/c and B;’s Current A/c Rs 25,000 each
(c) Dr. A’s Current A/c and Cr. B’s Current A/c by Rs 5,000
(d) Dr. B’s Current A/c and Cr. A’s Current A/c By Rs 5,000

4. A, B and C are partners in a firm sharing profits in the ratio 2:2:1 is given a
guaranteed minimum profit of Rs 20,000 every year. If Profit of the firm during
2018-19 is Rs 80,000 Partners will get:
(a) Rs 32,000; 32,000; 16,000 (b) Rs 30,000; 30,000; 20,000
(c) Rs 35,000; 25,000; 20,000 (d) None of these

5. Sumit withdrew a fixed amount at the end of each quarter during 2018-19. If interest
on his drawings @ 10% p.a. amounts to Rs 4,500, his quarterly drawings was:
(a) Rs 18,000 (b) Rs 22,500 (c) Rs 30,000 (d) None of
the above

6. The average capital employed in a business is Rs 3,00,000 and average net Profit
earned is Rs 42,000. The normal rate of return on capital employed is 10% The
 goodwill of the firm based on 3 years’ Purchase of Super Profit will be:
(a) Rs 36,000 (b) Rs 30,000 (c) Rs 4,200 (d) Rs 12,000

7. On 1st April 2018 an existing firm had assets of Rs 1,50,000 (including cash Rs 10,000).
Its creditors were Rs 10,000 on that date. The firm had a reserve fund of Rs 20,000 on
that date while partners’ capital account showed a balance of Rs 1,20,000 If the usual
rate of earning is 20% and goodwill is valued at Rs 48,000 at four years’ purchase of
super profits. What will be the average Profits of the firm?
(a) 30,000 (b) 35,000 (c) 40,000 (d)45,000

8. A and B are partners sharing Profits and losses in the ratio of 3:2 From 1 st April 2013
They decide to share future Profits and Loss equally. On that date there was a debit
balance of Rs 30,000 in Profit and Loss A/c. What entry will be passed if the firm
decided not to alter value of book?
(a) Dr. B’s Capital A/c Rs 3,000 and Cr. A’s Capital A/c Rs 3,000
(b) Dr. A’s Capital A/c Rs 3,000 and Cr. B ‘s Capital A/c Rs 3,000
(c) Dr. Profit and Loss A/c Rs 30,000 and Cr. A by Rs 18,000 and B by Rs
12,000.
(d) Dr. A by Rs 18,000, B by Rs 12,000 and Cr, Profit and Loss A/c by Rs
30,000.

9. Amit and Sumit are partners in a firm sharing Profits and Loss A/C by Rs 30,000 decided
to share profits equally in future. Their Balance Sheet on that date showed Rs 25,000 in
General Reserve and a debit balance of Rs 5,000 in Profit and Loss A/c. The adjustment
entry will be if they do not want to alter the amount of General Reserve and P & LA/c.
(a) Dr. Amit & Cr. Sumit Rs 2,000
(b) Dr. Sumit& Cr. Amit Rs 2,000
(c) Rs Cr. Amit &Sumit Rs 10,000 each
(d) Dr. Amit Rs 12,000 & Cr. Sumit Rs 8,000
10. Goodwill of the firm is not valued during……………………………………..
(a) Admission of a Partner (b) Retirement / death of a
Partner (c). Amalgamation of two Firms (d) Dissolution of Partnership
Firm.

11. Divya purchased Jyoti's business with effect from 1st April, 2020. Profits shown by
Jyoti's business for the last three financial years ended 31st March, were:
2018 : Rs. 1,00,000 (including an abnormal gain of Rs. 12,500).
2019 : Rs. 1,25,000 (after charging an abnormal loss of Rs. 25,000).
2020 : Rs. 1,12,500 (excluding Rs. 12,500 as insurance premium on firm's
property— now to be insured).
Calculate the value of firm's goodwill on the basis of two years' purchase of the average profit
of the last three years.
12. Asha, Rina and Chahat were partners in a firm sharing P&L in the ratio 2:2:1. Their
Balance Sheet as at 31st March, 2019 was a follows :
Balance Sheet of Asha, Rina and Chahat as at 31st March, 2019
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 12,00,000 Plant and Machinery 14,80,000
General Reserve 2,00,000 Stock 2,20,000
Capitals : Sundry Debtors 2,60,000
Asha 3,00,000 Less:- Provision for (20,000) 2,40,000
Rina 2,00,000 Doubtful debts
Chahat 1,00,000 6,00,000 Bank 60,000
20,00,000 20,00,000
Asha, Rina and Chahat decided to share future profits equally with effect from 1st April, 2019.
For this, it was agreed that :
(i) Goodwill of the firm be valued at Rs.1,50,000.

(ii) Bad debts amounted to Rs.40,000. A provision for doubtful debts was to be made @5%
on debtors.

Pass necessary journal entries to record the above transactions in the books of the firm.
13. Mudit and Uday are partners in a firm sharing profits in the ratio 2:3. Their capital
accounts as on April 1, 2015 showed balances of Rs.70,000 and Rs.60,000 respectively. The
drawings of Mudit and Uday during the year 2015-16 were Rs. 16,000 and Rs. 12,000
respectively. Both the amounts were withdrawn on 1st January 2016. It was subsequently
found that the following items had been omitted while preparing the final accounts for the
year ended 31st march 2016.
(a) Interest on capitals @ 6% p.a.;
(b) Interest on drawings @ 6% p.a.;
(c) Mudit was entitled to a commission of Rs.4,000 for the whole year. Showing
your workings clearly pass a rectifying entry in the books of the firm.
14.A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2 with
capitals of Rs.5,00,000 and Rs.2,50,000 respectively on 1st April, 2017. Each partner is
entitled to 10% p.a. interest on his capital. A is entitled to a commission of 10% on
netprofit remaining after deducting interest on capitals but before charging any
commission. B is entitled to a commission of 8% of net profit remaining after deducting
interest on capitals and after charging all commissions. The profits for the year ended 31st
March, 2018 prior to calculation of interest on capital was Rs.3,75,000.
Prepare necessary journal
entries.
15. On 31st March, 2014, the balances in the Capital Accounts of A, B and C after
making adjustments for profits and drawings were Rs. 1,60,000, Rs. 1,20,000 and Rs.
80,000 respectively. Subsequently, it was discovered that the interest on capital and
drawings had been omitted.
• The profit for the year ended 31st March, 2014 was Rs.40,000.
• During the year, A and B each withdrew a total sum of Rs.24,000 in equal instalments in
the beginning of each month and C withdrew a total sum of Rs.48,000 in equal instalments
at the end of each month.
• The interest on drawings was to be charged @5% p.a. and interest on capital was to be
allowed @10% p.a.
• The profit-sharing ratio among the partners was 2:1:1.
Showing your working notes clearly, pass the necessary rectifying entry.

16. Ahmad, Bheem and Daniel are partners in a firm. On 1st April, 2011 the balance in
their capital accounts stood at Rs.8,00,000, Rs.6,00,000 and Rs.4,00,000 respectively. They
shared profits in the proportion of 5 : 3 : 2 respectively. Partners are entitled to interest on
capital @ 5% per annum and salary to Bheem @ Rs. 3,000 per month and a commission of
Rs. 12,000 to Daniel as per the provisions of the partnership deed.
Ahmad’s share of profit, excluding interest on capital, is guaranteed at not less than
Rs.25,000 p.a. Bheem’s share of profit, including interest on capital but excluding
salary, is guaranteed at not less than Rs.55,000 p.a. Any deficiency arising on that
account shall be met by Daniel. The profits of the firm for the year ended 31st
March 2012 amounted to Rs.2,16,000. Prepare ‘Profit and Loss Appropriation
Account’ for the year ended 31st March 2012.

17. A, B & C were partners in a firm sharing profits & losses in the ratio of 3 : 2 : 1. On
March 31, 2017, their Balance Sheet was as follows:
BALANCE SHEET as at March 31, 2017

Liabilities Amount Assets Amount

Rs. Rs.

Capitals: Fixed Assets 1,50,000

A 50,000 Current Assets 65,000

B 40,000

C 30,000 1,20,000

Reserve Fund 18,000

Creditors 27,000

Employees Provident 50,000

Fund

2,15,000 2,15,000

From April 1, 2017, they decided to share future profits equally. For this purpose the
followings were agreed upon:
(i) Goodwill of the firm was valued at Rs.3,00,000.
(ii) Fixed Assets will be depreciated by 10%.
(iii) Capitals of the partners will be in proportion to their new profit sharing ratio. For this
purpose Current Accounts will be opened.
Pass necessary Journal entries for the above transactions in the books of the firm.

18. Divya and Pooja are partners in a firm, sharing profits and losses in the ratio of 3 :
2. On 31st March, 2015, their Balance Sheet was as under :
BALANCE SHEET OF DIVYA AND POOJA as at 31st March, 2015

Liabilities Rs. Assets Rs.

Sundry Creditors 9,800 Goodwill 16,000

General Reserve 23,400 Land and Building 20,000

Profit and Loss A/c 4,000 Investments 66,000

Investment Fluctuation Fund 12,600 Sundry Debtors 18,600

Capital A/cs: Bills Receivables 7,400

Divya 60,000 Cash in Hand 11,100

Pooja 40,000 1,00,000 Advertisement Suspense A/c 10,700

1,49,800 1,49,800

The partners decided that with effect from 1st April, 2015, they would share profits and
losses equally.
For this purpose, they decided that:
(α) Investments to be valued at Rs.50,000.
(b) Goodwill to be valued at Rs.24,000.
You are required to : Prepare revaluation account ,partners capital account