INDIAN SCHOOL AL WADI AL KABIR

SAMPLE PAPER-2, 2020-21

Class: XII Sub: ACCOUNTANCY (055) M.M: 80

General Instructions:
(i) This question paper contains two parts – A and B.
(ii) Part A is compulsory for all.
(iii) Part B has two options – Analysis of Financial Statements and Computerized Accounting.
(iv)Attempt only one option of Part B.
(v) All parts of a question should be attempted at one place.

PART A

Not for profit Organisation, Accounting for Partnership Firms & Company Accounts

1. Interest on partner’s drawing under a fluctuating capital account is debited to ______ 1

(a) Partner’s Capital Account
(b) Profit and Loss Account
(c) Drawing Account
(d) None of the above

2. A and B are equal partners with capital of Rs. 80,000 each. They admitted C as a new 1
partner for 1/3rd share in profit. C brings Rs. 1,00,000 as his capital. The value of hidden
goodwill is ---------
(a) Rs. 20,000
(b) Rs. 40,000
(c) Rs. 60,000
(d) Rs. 1,00,000

3. What is the maximum permissible discount at which forfeited shares can be reissued? 1

4. Not-for-profit organisations prepare: 1

(a) Trading Account
(b) Trading & Profit and Loss Account
(c) Income and Expenditure Account
(d) All of the above

5. Varun and Arun are partners in a firm sharing profits and losses equally. On the date of 1
dissolution of the partnership firm, Varun’s wife’s loan was Rs. 45,000, whereas Arun’s
loan was Rs. 65,000. Which loan will be paid first and why?

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6. X Ltd. forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by Naresh for 1
non – payment of allotment money of Rs. 4 per share. The called – up value per share was
Rs. 9. On forfeiture, the amount debited to Share Capital Account will be ______
(a) Rs. 10,000
(b) Rs. 2,000
(c) Rs. 8,000
(d) Rs. 18,000

7. In the Balance Sheet, Debtors exist at Rs. 50,000 and Provision for Doubtful Debts at Rs. 1
1,500. How much amount will be realized from Debtors, if bad debts are Rs. 10,000 and
remaining debtors are realized at a discount of 5%?
(a) Rs. 38,000
(b) Rs. 36,500
(c) Rs. 36,575
(d) Rs. 39,500

8. Which of the following statement is correct? 1

(a) A debenture holder is an owner of the company.
(b) A debenture holder can get his money back only on the liquidation of the company.
(c) A debenture issued at a discount can be redeemed at a premium.
(d) A debenture holder receives interest only in the event of profits.

9. X, Y and Z are partners sharing profits and losses in the ratio of 2:2:1. B died, at that time 1
goodwill of the firm was valued at Rs. 30,000. The contribution to be made by A and C in
order to pay off B is ________ and ________ respectively.

10. A, B and C were partners sharing profits in the ratio of 4:5:3. C died and the remaining 1
partners decided to share profits in the ratio of 7:8. Calculate the Gaining Ratio.

11. A, B and C are partners in a firm, sharing profits and losses in the ratio of 2:2:1. Their 1
Capital Accounts stand as Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B retired
from the firm and balance in General Reserve on that date was Rs. 15,000. If goodwill of
the firm is Rs. 30,000 and Profit on Revaluation is Rs. 7,050, What amount will be
transferred to B’s Loan A/c?

12. A, B and C are partners in a firm. During the year C withdrew Rs. 2,000 at the end of 1
each quarter. Interest on drawing is to be charged @ 6% p.a. Interest on C’s drawings will
be charged at-----
(a) Rs. 1,800
(b) Rs. 1,600
(c) Rs. 2,400
(d) Rs. 3,000

13. A partnership deed provides for the payment of Interest on Capital but there was a loss 1
instead of profit during the year 2018-19. At what rate will the interest on capital be
allowed?

14. 3

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 How are the following items dealt in preparing Income and Expenditure Account for the
year ended 31st March, 2020 and Balance Sheet as at that date?

Particulars 1st April, 2019 31st March, 2020

Sundry Expenses Outstanding 10,000 18,000
Sundry Expenses paid in Advance 16,000 14,000

Sundry Expenses paid during the year ended 31st March, 2020 was Rs. 80,000.

Or

Calculate the amount of medicines consumed during the year ended 31st March, 2020

Particulars Amount (Rs.)

Opening Stock of Medicines 1,00,000
Closing stock of Medicines 90,000 more than opening stock
Amount paid for medicines during the year 4,00,000
Opening Creditors 40,000
Closing Creditors 50% of opening creditors

15. 4
A and B are partners in a firm sharing profits and losses in the ratio of 7:3.
Their fixed capitals were: A Rs. 9,00,000 and B Rs. 4,00,000.
The partnership deed provided the following:
(i) Interest on capital @ 10% p.a.
(ii) A’s salary Rs. 50,000 per year and B’s salary Rs. 3,000 per month.
Profit for the year ended 31st March, 2019 Rs. 2,78,000 was distributed without providing
for interest on capital and partners’ salary.
Showing your working clearly, pass the necessary adjustment entry for the above
omissions.
OR

Ram and Laxman are partners doing a garment business in Delhi, sharing profits in the
ratio 2:1 with capitals Rs. 10,00,000 and Rs. 8,00,000 respectively. Ram withdrew the
following amounts during the year for his personal expenses:

1st April Rs. 20,000

1st June Rs. 18,000
1st November Rs. 28,000
1st December Rs. 10,000

Laxman withdrew Rs. 30,000 on the first day of April, July, October and January to pay
rent for his flat. He also paid Rs. 40,000 per month as rent for the office of the partnership
business.
Calculate interest on drawings @ 5% p. a
16. 4
Ravi and Mukesh were partners in a firm sharing profits and losses equally. On 31st
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 March, 2019 their firm was dissolved. On the date of dissolution their Balance Sheet
showed stock of Rs. 60,000 and creditors of Rs. 70,000. After transferring stock and
creditors to realisation account the following transactions took place:

(i) Ravi took over 40% of total stock at 20% discount.

(ii) 30% of total stock was taken over by creditors of Rs. 20,000 in full settlement.
(iii) Remaining stock was sold for cash at a profit of 25%.
(iv) Remaining creditors were paid in cash at a discount of 10%.
Pass necessary journal entries for the above transactions in the books of the firm.

17. 4
Crown Ltd forfeited 50 shares of ₹ 10 each, for non- payment of final call money of ₹ 3
per share. Out of these 20 shares were reissued to Taj at ₹ 8 per share. Record the journal
entries for forfeiture and reissue of shares assuming that the company maintains call in
arrear, call in advance account.
Also prepare Share Forfeiture Account

18. 4
A, B and C are partners sharing profit in ratio 3:2:1. Their balance Sheet on
31st March 2020 was as follows:

LIABILITIES ASSETS .
Creditors 17,000 Machinery 25,000
Building 70,000
A’s capital 50,000 Stock 32,000
B’s capital 50,000 Debtors 15,000
C’s capital 50,000 Bank 25,000
1,67,000 1,67,000

A died-on 1st July 2020 and the following decisions were taken by the surviving partners.
(a) His share of profit for the period he was alive should be based on the figure of 31st
March 2020.
(b) Goodwill according to his share of profit to be calculated by taking twice the
amount of the average profit of the last three years. The profits of the previous
years were:
31st March 2020 – Rs. 11,000, 31st March 2019 – Rs. 15,000, 31st March 2018– Rs.
10,000.

Pass the required journal entries.

19. 6

From the following Receipts and Payments Account and additional information of Modern
Health Club, prepare Income and Expenditure Account for the year ended 31st March,
2020 and the Balance Sheet as at 31st March, 2019.

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 Receipts and Payments Account for the year ended 31st March, 2020

Receipts Payments
To balance b/d 17,000 By Salaries 30,000
To Subscriptions 60,000 By Rent 18,300
To Donations 2,000 By Repairs 4,700
To furniture (Book Value By Books 16,000
Rs. 6,000) 5,000 By Buildings 30,000
To Life Membership fee 7,000 By balance b/d 1,000
To interest on
Investment(@ 5% for full 9,000
year)
1,00,000 1,00,000

Additional information:

Particulars 31.03.2019(Rs) 31.03.2020

(i) Subscriptions received in advance 4,000 5,000
(ii) Outstanding Subscription 3,000 4,000
(iii) Books 12,500 26,500

20. 6
Journalise the following transactions:

(a) A Ltd. took a loan of Rs. 6,00,000 from HDFC Bank. The company issued 8,000;
12% Debentures of Rs. 100 each as a collateral security for the same. Show how
these items will be presented in the Balance Sheet of the company.

(b) Axis Ltd took over assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Mars ltd
for an agreed purchase consideration of Rs. 6,00,000 payable 10% in cash and the
balance by the issue of 15% Debentures of Rs. 100 each. Give journal entries in the
books of Axis Ltd, if the debentures are issued at 20% premium.

21. 8
Lisa, Monika and Nisha were partners in a firm sharing profits and losses in the ratio of
2:2:1.

On 31st March, 2019, their Balance Sheet was as follows:

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 On 31st March, 2019, Monika retired from the firm and the remaining partners decided to
carry on the business. It was agreed that :
(i) Land and building be appreciated by Rs. 2,40,000 and machinery be depreciated by
10%.
(ii) 50% of the stock was taken over by the retiring partner at book value.
(iii) Provision for doubtful debts was to be made at 5% on debtors.
(iv) Goodwill of the firm be valued at Rs. 3,00,000 and Monika’s share of goodwill be
adjusted in the accounts of Lisa and Nisha.
Pass necessary journal entries on Monika’s Retirement

OR

Virat, Rita and Praveen are partners sharing profits and losses in the ratio of 3:3:2. Their
balance sheet as on March 31st 2018 was as follows:

Liabilities Rs. Assets Rs.

Sundry creditors 48,000 Cash at bank 74,000
Bank Loan 72,000 Sundry debtors 88,000
Capital: Stock 2,40,000
Virat 4,00,000 Machinery 3,18,000
Rita 3,00,000 Building 4,00,000
Praveen 3,00,000
10,00,000
11,20,000 11,20,000

Partners decided that with effect from April 1, 2018, they would share profits and losses in
the ratio of 4:3:2. It was agreed that:

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 (i) Stock is overvalued by Rs.20,000.
(ii) Machinery is to be depreciated by 10%
(iii) A provision for doubtful debts is to be made on debtors at 5%.
(iv) Building is to be appreciated by 20%
(v) A liability for Rs. 5,000 included in sundry creditors is not likely to arise.
Partners agreed that the revised value are to be recorded in the books.
You are required to prepare journal, revaluation account, partner’s capital Accounts and
revised Balance Sheet.

22. 8
ZX Limited invited applications for issuing 5,00,000 Equity shares of Rs. 10 each payable
at a premium of Rs. 10 each payable with Final call.
Amount per share was payable as follows:
Rs.
On Application 2
On Allotment 3
On First Call 2
On Second & Final Call Balance

Applications for 8,00,000 shares were received. Applications for 50,000 shares were
rejected and the application money was refunded. Allotment was made to the remaining
applicants as follows:

Category Number of Shares Applied Number of Shares Allotted

I 2,00,000 1,50,000
II 5,50,000 3,50,000

Excess application money received with applications was adjusted towards sums due on
allotment. Balance, if any was adjusted towards future calls.
Govind, a shareholder belonging to category I, to whom 1,500 shares were allotted, paid
his entire share money with allotment. Manohar belonging to category II, who had applied
for 11,000 shares failed to pay ‘Second & Final Call money’. Manohar’s shares were
forfeited after the final call. The forfeited shares were reissued at Rs. 10 per share as fully
paid up. Assuming that the company maintains “Calls in Advance Account” and “Calls in
Arrears Account”, pass necessary Journal entries for the above transactions in the books of
ZX Limited.

OR

A ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares
were issued at a premium of Rs. 20 per share. The amount was payable as follows:

On Application and Allotment - Rs. 14 per share (including premium of Rs. 10),
On First Call - Rs. 8 per share (including premium of Rs. 5),
On Final Call - Rs. 8 per share (including premium of Rs. 5).

Applications for 96,000 shares were received. Shyam, a shareholder holding 7,000 shares,
failed to pay both the calls and Naman, a holder of 5,000 shares, did not pay the final call.

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 Shares of Shyam and Naman were forfeited. Of the forfeited shares, 8,000 shares
including all the shares of Shyam were reissued to Seema at Rs. 8 per share fully paid –
up.

Pass necessary Journal entries for the above transactions in the books of A ltd.

PART B- ANALYSIS OF FINANCIAL STATEMENT

23. 1
Under which type of activity will you classify ‘Issuing 9% Debentures’ while preparing
Cash Flow Statement?

24. 1

Declaration of final dividend would result in inflow, outflow or no flow of cash? Give
your answer with reason.

25. 1
Net profit before tax but after interest is 2,40,000. 15% Long Term debt 4,00,000.
Tax 50,000. Shareholders fund- 8,00,000
The ROI and ICR will be

ROI ICR
A. 25% 4 times
B. 75% 5 times
C. 30% 3 times
D. 25% 5 times

26. 1
Debt Equity Ratio of a company is 1:2. Purchase of a Fixed asset for ₹ 5,00,000 on long
term deferred payment basis will increase, decrease or not change the ratio?

27. 1

Shareholders fund-Rs.1,60,000; Total debt- Rs.3,60,000; Current Liabilities- Rs.40,000.

The Total assets to debt ratios is ___________

(a) 1.62:1
(b) 4:1
(c) 2.25:1
(d) 1.3:1

28. 1
Under which Main heading and Sub heading will Loose tools be presented in the Balance
Sheet as per Schedule III Part I of the Companies Act, 2013?

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29. Which one of the following is not a tool for financial analysis? 1
(a) Common Size Income Statement.
(b) Ratio Analysis.
(c) Cash Flow Statement.
(d) Trial Balance.

30. 3
Working Capital Rs. 3,00,000, Total Assets Rs. 15,00,000, Non-Current Assets Rs.
11,00,000, Inventories Rs. 95,000, Prepaid Expenses Rs. 5,000. Calculate Current Ratio
and Quick Ratio.

OR

Revenue from Operations Rs. 6,00,000, Gross Profit 25% on Cost, Operating Expenses
Rs. 60,000. Calculate Operating Ratio

31. 4
Prepare a common size statement from the following for the year ended 31st March, 2020

Particulars 31st March , 2020

Revenue from Operations 17,00,000
Cost of Material Consumed 9,20,000
Depreciation Expenses 3,40,000
Interest on Investment 90,000
Taxes Payable @50%

OR

Prepare Comparative Balance Sheet statement for SK Ltd.

Particulars 2018-19 2017-18

I- EQUITY AND LIABILITIES

Shareholders Funds 4,00,000 2,00,000

Non Current Liabilities 2,50,000 1,00,000

Current Liabilities 1,50,000 1,00,000

II-ASSETS

Non-current Assets 5,00,000 2,50,000

Current Assets 3,00,000 1,50,000

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32. 6
From the following Balance Sheet of Dreams Converge Ltd as at 31.3.2020 and
31.3.2019; Calculate Cash from operating activities.

Particulars Note No 31.3.2020 31.3.2019

EQUITY AND LIABILITIES

1. Shareholder’s Funds:
(a) Share Capital 7,00,000 5,00,000
(b) Reserves & Surplus 3,50,000 2,00,000
2. Non Current Liabilities:
50,000 1,00,000
Long term borrowings
3. Current Liabilities 1,22,000 1,05,000
(a) Trade Payables 50,000 30,000
(b) Short term Provisions 12,72,000 9,35,000
(Provision for tax)

ASSETS
(1) Non Current Assets
(a) Fixed assets
i. Tangible Assets 1 5,00,000 5,00,000
ii. Intangible Assets 2 95,000 1,00,000

(b) Non Current Investments 1,00,000 NIL

(2) Current Assets

(a) Inventories 1,30,000 55,000
(b) Trade Receivables 1,47,000 80,000
(c) Cash and Cash Equivalents 3,00,000 2,00,000
12,72,000 9,35,000

Notes to Accounts:

Note. No. Particulars 31.3.2020 31.3.2019

Additional Information:

Machinery of the book value of 80,000 (accumulated depreciation ₹ 20,000) was sold at a
loss of ₹ 18,000

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