TEST

TEST SERIES
Class 12 - Accountancy
Time Allowed: 3 hours Maximum 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 candidates.

4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students

must attempt only one of the given options.

5. Question 1 to 16 and 27 to 30 carries 1 mark each.

6. Questions 17 to 20, 31and 32 carries 3 marks each.

7. Questions from 21 ,22 and 33 carries 4 marks each

8. Questions from 23 to 26 and 34 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.

Part A:- Accounting for Partnership Firms and Companies

1. Krish and Laksh were partners in a firm sharing profits and losses in the ratio of 4 : 1. They admitted Rani as a [1]
new partner. Krish sacrificed 1

4
th of his share and Laksh sacrificed 1

5
th of his share in favour of Rani. Rani’s
share in the profits of the reconstituted firm will be:

a) 1

9
b) 9

30

c) 6

25
d) 2

2. Which of the following items cannot be recorded in the capital account of partners if the capital accounts of [1]
partners are fixed?

a) Drawings b) Introduction of additional capital

c) Opening balance of capital d) Withdrawal of capital

3. Pragya Ltd. forfeited 8,000 equity shares of ₹ 100 each issued at a premium of 10% for non-payment of first and [1]
final call of ₹ 30 per share. The maximum amount of discount at which these shares can be reissued will be:

a) ₹ 2,40,000 b) ₹ 3,20,000

c) ₹ 5,60,000 d) ₹ 8,00,000
OR
Nargis Ltd. purchased assets of ₹ 8,00,000 and took over liabilities of ₹ 2,00,000 from Gauri Ltd. The payment was
made by issue of 8% Debentures of ₹ 100 each at a premium of 20%. Number of debentures issued will be:

a) 5,000 b) 6,000

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 c) 50,000 d) 6,00,000

4. Ria and Surbhi were partners in a firm sharing profits and losses in the ratio of 3 : 2. With effect from 1st April, [1]

2022, they agreed to share profits equally. The goodwill of the firm was valued at ₹ 3,00,000. The adjustment
will be done by which of the following transaction?

a) Debiting Ria's account by ₹ 3,000 and b) Debiting Ria's account by ₹ 30,000 and
crediting Surbhi's account by ₹ 3,000. crediting Surbhi's account by ₹ 30,000.

c) Debiting Surbhi's account by ₹ 30,000 and d) Debiting Surbhi's account by ₹ 3,000 and
crediting Ria's account by ₹ 30,000. crediting Ria's account by ₹ 3,000.
OR
Manu and Kanu were partners in a firm, sharing profits and losses in the ratio of 2 : 3. Their fixed capitals were ₹
10,00,000 and ₹ 5,00,000, respectively. They were entitled to an interest on capital @ 10% p.a. The firm earned a
profit of ₹ 60,000 during the year. The amount of interest on capital credited to Kanu will be:

a) ₹ 36,000 b) ₹ 24,000

c) ₹ 40,000 d) ₹ 20,000
5. After doing the adjustments regarding drawings ₹ 40,000, share of profit ₹ 24,000 and the additional capital [1]
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) ₹ 5,96,000 b) ₹ 4,46,000

c) ₹ 4,84,000 d) ₹ 5,16,000
6. Maira Ltd. took over assets of ₹ 12,00,000 and liabilities of ₹ 4,00,000 of Subav Ltd. for an agreed purchase [1]
consideration of ₹ 9,00,000. The amount was payable by issue of 11% debentures of ₹ 100 each at 10% discount.
The number of debentures issued will be:

a) 8,000 b) 9,000

c) 10,000 d) 11,000
OR
Senco Ltd. issued 5,000, 8% Debentures of ₹ 100 each at par, redeemable after four years at a premium of 10%. The
minimum amount invested in Debenture Redemption Investments will be:

a) ₹ 1,37,500 b) ₹ 82,500

c) ₹ 1,25,000 d) ₹ 75,000
7. BB Ltd. forfeited 4000 shares of ₹ 10 each for non-payment of final call of ₹ 5 per share. The forfeited amount [1]
was ₹ 20,000. The minimum amount per share at which these shares can be re-issued will be:

a) ₹ 7 b) ₹ 5

c) ₹ 4 d) ₹ 6
8. Saurabh, Shirin and Somesh are partners in a firm sharing profits and losses in the ratio of 3:2:1. Somesh retires [1]
and the new profit sharing ratio between Saurabh and Shirin is 3:2. The gaining ratio between Saurabh and
Shirin will be:

a) 3 : 1 b) 2 : 1

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 c) 3 : 2 d) 1 : 1
OR
Hina and Neena are partners in a firm. Neena withdrew ₹ 10,000 per month at the beginning of each month during
the year ended 31st March, 2022. Interest on drawings was to be charged @ 6% per annum.

Interest on Neena's drawings for the year ended 31st March, 2022 will be:

a) ₹ 3,300 b) ₹ 3,600

c) ₹ 325 d) ₹ 3,900

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 1,00,000 and ₹ 50,000
respectively. The partnership deed provided that interest on capital is to be given @ 10% p.a. For the year ended
31.03.2016, the profits of the year were distributed without providing interest on capital.
9. How much amount is already debited to P’s current account?

a) ₹ 7,500 b) ₹ 3,000

c) 2,500 d) ₹ 1,500
10. How much amount should be credited to P’s current account for Interest on capital?

a) ₹ 7,000 b) ₹ 9,000

c) ₹ 8,000 d) ₹ 10,000
11. Aman and Chaman are partners in a firm. On 1st July, 2021 Aman advanced a loan of ₹ 6,00,000 to the firm. [1]
There is no partnership deed. On 31st March, 2022, Aman was entitled to get the following amount as interest on
loan:

a) ₹ 36,000 b) ₹ 27,000

c) ₹ 9,000 d) ₹ 18,000
12. Jeevan Ltd. forfeited 50 shares of ₹ 100 each on which allotment money of ₹ 30 per share (including premium of [1]
₹ 10 per share) and first call of ₹ 30 per share was not received. The second and final call of ₹ 20 per share was
not yet made. The amount credited to Share Forfeiture Account on forfeiture of these shares will be:

a) ₹ 5,000 b) ₹ 1,500

c) ₹ 2,000 d) ₹ 2,500
13. Lexa Ltd. issued 50,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as [1]
follows:
On application and allotment - ₹ 7 per share (including premium)
On first and final call - Balance
The issue was fully subscribed. All the money was duly received except the first and final call on 1,000 equity
shares. These shares were forfeited. On forfeiture of these shares Calls in Arrears Account will be:

a) debited by ₹ 7,000 b) credited by ₹ 7,000

c) credited by ₹ 5,000 d) debited by ₹ 5,000

14. A partnership firm has four partners. How many additional partners can be admitted into the business as per the [1]
provisions of the Companies Act, 2013?

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 a) 46 b) 96

c) 100 d) 50
15. On the reconstitution of a firm, the value of the land was appreciated by ₹ 2,00,000 and plant and machinery [1]
reduced to ₹ 7,00,000 from ₹ 10,00,000. Gain or loss on revaluation will be:

a) Gain ₹ 5,00,000 b) Loss ₹ 5,00,000

c) Loss ₹ 1,00,000 d) Gain ₹ 1,00,000

OR
Srishti, Nitya and Anand were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Srishti retired from
the firm selling her share of profits to Nitya and Anand in the ratio of 2 : 1. The new profit sharing ratio between
Nitya and Anand will be:

a) 2 : 1 b) 17 : 11

c) 3 : 2 d) 19 : 11
16. In which of the following cases is the business of a firm not dissolved compulsorily? [1]

a) When there is a change in profit sharing b) When a partner who is a citizen of a country
ratio between existing partners. becomes an alien enemy because of the
declaration of war with his country and
India.

c) When the business of the firm becomes d) When all but one partner becomes insolvent.
illegal.
17. Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from [3]

1st April, 2022, they mutually agreed to share profits and losses in the ratio of 2 : 2 : 1. It was agreed that:
i. Goodwill of the firm was valued at ₹ 1,40,000.
ii. Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 1,20,000.
Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes
clearly.
18. Misha and Prisha were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022, their [3]

capital accounts showed balances of ₹ 50,000 and ₹ 30,000 respectively. During the year, Misha withdrew ₹
12,900 while Prisha withdrew ₹ 9,600. They were allowed interest on capital @ 10% p.a. Interest on drawings of
₹ 660 was charged on Misha's drawings and ₹ 540 on Prisha's drawings. Prisha had advanced a loan of ₹ 20,000

to the firm on 1st August, 2022. The net profit for the year ended 31st March, 2023 amounted to ₹ 22,600.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2023.
OR
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.

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 Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023.
19. Grapple Ltd. took over assets of ₹ 25,00,000 and liabilities of ₹ 5,00,000 from Allore Ltd. for an agreed [3]
purchase consideration of ₹ 18,00,000. Grapple Ltd. issued 11% Debentures of ₹ 100 each at 20% premium in
satisfaction of the purchase consideration.
Pass necessary journal entries in the books of Grapple Ltd. Show your workings clearly.
OR
Pass necessary Journal entries in the books of the company for the following transactions:
Vikash Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of
allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these
shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up. The remaining shares were
reissued at ₹ 11 per share fully paid-up.
20. Average profits of a firm during the last few years are ₹ 80,000 and the normal rate of return in a similar [3]
business is 10%. If the goodwill of the firm is ₹ 1,00,000 at 4 years purchase of super profit, find the capital
employed by the firm.
21. RR Ltd. was registered with an authorised capital of ₹ 8,00,000 divided into 80,000 equity shares of ₹ 10 each. [4]
The company offered to the public for subscription 40,000 equity shares. The amount per share was payable as
follows:
On Application - ₹ 5
On Allotment - ₹ 3
On first and final call - Balance
The issue was fully subscribed and all amounts due were received except the allotment and call money on 2,000
shares allotted to Seema.
Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act,
2013. Also prepare Notes to Accounts for the same.

22. Rohit and Hitesh were partners in a firm sharing profit and losses equally. On 31st March, 2023 their firm was [4]

dissolved. On the date of dissolution their Balance Sheet showed stock of ₹ 60,000 and creditors of ₹ 70,000.
After transferring stock and creditors to realisation account the following transactions took place:
i. Rohit took over 40% of total stock at 20% discount.
ii. 30% of total stock was taken over by creditors of ₹ 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.
23. KLN Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The [6]
amount was payable as follows:
On Application - ₹ 3 per share (including premium ₹ 1)
On Allotment - ₹ 4 per share (including premium ₹ 1)
On First call - ₹ 3 per share, and
On Second and Final Call - Balance amount.
Application for 1,90,000 shares were received. Allotment was made to the applicants as follows:

Category No. of Shares Applied No. of Shares Allotted

I 50,000 40,000

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 II 1,00,000 60,000

Remaining applications were rejected.

Rajat, a shareholder belonging to Category I who had applied for 2,500 shares, failed to pay the amount due on
allotment and first call. His shares were immediately forfeited.
Reema, a shareholder belonging to Category II who was holding 3,000 shares failed to pay the first call and
second call money. Her shares were also forfeited. Afterwards, 4,000 shares were reissued @ ₹ 8 per share fully
paid up. These included all the forfeited shares of Reema.
Pass necessary Journal entries for the above transactions in the books of KLN Ltd.
OR
V.D. Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The
amount per share was payable as follows:

On Application ₹ 3 (including premium ₹ 1)

On Allotment ₹ 7 (including premium ₹ 5)

On First and Final call Balance amount

Applications were received for 2,50,000 shares. Applicants for 10,000 shares were sent letters of regret and
application money returned to them. Shares were allotted to the remaining applicants on a pro-rata basis. Money
overpaid on application was adjusted towards the sums due on allotment. The company received all the money due
on allotment except from Agam, who was allotted 1,000 shares. Her shares were forfeited immediately after
allotment. Afterwards, the first and final call was made. Seema, the holder of 2,000 shares, did not pay the first and
final call on her shares. Her shares were also forfeited. 50% of the forfeited shares, each of Agam and Seema, were
reissued as fully paid-up @ ₹ 16 per share. Pass the necessary Journal entries to record the above transactions in the
books of V.D. Ltd.
24. Madhuri and Arsh were partners in firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as at [6]
31st March 2019, was as follows:
Balance Sheet of Madhuri and Arsh
as at 31st March 2019

Amount Amount
Liabilities Assets
(₹) (₹)

Capitals: Machinery 4,70,000

Madhuri 3,00,000 Investments 1,10,000

Arsh 2,00,000 5,00,000 Debtors 1,20,000

Workmen's Compensation Less: Provision for doubtful

60,000 10,000 1,10,000
Reserve debts

Creditors 1,90,000 Stock 1,40,000

Employees' Provident Fund 1,10,000 Cash 30,000

8,60,000 8,60,000

On 1st April 2019, they admitted Jyoti into a partnership for 1

4
th share in the profits of the firm. Jyoti brought
proportionate capital and ₹ 40,000 as her share of goodwill premium. The following terms were agreed upon:

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 i. Provision for doubtful debts was to be maintained at 10% on debtors.
ii. The stock was undervalued by ₹ 10,000.
iii. An old customer whose account was written off as bad and paid ₹ 15,000 in full settlement.
iv. 20% of the investments were taken over by Arsh at book value.
v. Claim on account of workmen’s compensation amounted to ₹ 70,000.
vi. Creditors included a sum of ₹ 27,000 which was not likely to be claimed.
Prepare Revaluation Account, Partners' Capital Accounts, and the Balance Sheet of the reconstituted firm.
OR
Yogesh, Ram and Sumit were partners in a firm sharing profits in the ratio of 7 : 2 : 1. Balance Sheet of the firm as on
31st March, 2023 was as follows:

Liabilities ₹ Assets ₹

Capitals Goodwill 40,000

Yogesh 70,000 Land and Building 60,000

Ram 20,000 Machinery 40,000

Sumit 10,000 1,00,000 Stock 7,000

General Reserve 20,000 Debtors 12,000

Loan from Ram 30,000 Cash 5,000

Creditors 14,000

1,64,000 1,64,000

Ram died on 24th August, 2023. Partnership Deed provides for the settlement of claims on the death of a partner in
addition to his capital as under:
i. Share of profit of the deceased partner to be computed up to the date of death on the basis of average net profit of
the past three years. Average net profit of past three years was ₹ 80,000.
ii. His share in profit/loss on revaluation of assets and re-assessment of liabilities which were as follows: Land and
building were revalued at ₹ 94,000. Machinery at ₹ 38,000 and stock at ₹ 5,000. A provision of 2.5% was to be
created on debtors for doubtful debts.
iii. Net amount payable to 'Ram's executors was transferred to his Loan Account, to be paid later on.
Prepare Revaluation Account, Partners' Capital Accounts, Ram's Executor's Account and Balance Sheet of Yogesh
and Sumit who decided to continue the business keeping their capital balances in their new profit-sharing ratio. Any
surplus or deficit to be transferred to Current Accounts of the partners.
25. J, H and K were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2015 their balance [6]
sheet was as follows
Balance Sheet
as on 31st March, 2015

Amount Amount
Liabilities Assets
(Rs) (Rs)

Creditors 42,000 Land and Building 1,24,000

Investment Fluctuation Fund 20,000 Motor Vans 40,000

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 Profit and Loss A/c 80,000 Investments 38,000

Capital A/cs Machinery 24,000

J 1,00,000 Stock 30,000

H 80,000 Debtors 80,000

K 40,000 2,20,000 (-) Provision for Doubtful Debts (6,000) 74,000

Cash 32,000

3,62,000 3,62,000
======= ========

On the above date, H retired and J and K agreed to continue the business on the following terms
i. Goodwill of the firm was valued at Rs 1,02,000.
ii. There was a claim of Rs 8,000 for workmen’s compensation.
iii. Provision for bad debts was to be reduced by Rs 2,000.
iv. H will be paid Rs 14,000 in cash and the balance will be transferred in his loan account which will be paid in
four equal yearly instalments together with interest @ 10% per annum.
v. The new profit sharing ratio between J and K will be 3 : 2 and their capitals will be in their new profit
sharing ratio. The capital adjustments will be done by opening current accounts.
Prepare revaluation account, partners’ capital accounts and balance sheet of the new firm.
26. Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue [6]
of debentures in the following cases:
a. When debentures were issued at 10% premium, redeemable at 5% premium.
b. When debentures were issued at 5% discount, redeemable at 10% premium.
c. When debentures were issued at par, redeemable at a premium of 10%.
Part B :- Analysis of Financial Statements
27. Analysis of financial statements serve the purpose of [1]

a) All of these b) shareholder’s

c) investors d) debentureholder's
OR
Debentures redeemable after 10 years of issue are shown as:

a) Other Short-term Liabilities b) Short-term Borrowings

c) Other Long-term Liabilities; d) Long-term Borrowing

28. ________ is also known as Acid-Test Ratio. [1]

a) Operating Ratio b) Current Ratio

c) Gross profit Ratio d) Quick Ratio

29. Machinery was purchased for ₹ 10,00,000, paying 40% by issue of equity shares of ₹ 10 each and the balance by [1]
a cheque. This transaction will result in:

a) Decrease in cash and cash equivalents ₹ b) Cash used in investing activities ₹ 6,00,000.
10,00,000

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 c) Cash used in investing activities ₹ d) Cash generated from financing activities ₹
10,00,000. 4,00,000.
OR
Paid ₹ 7,00,000 to acquire shares in K.L. Ltd. and received a dividend of ₹ 20,000 after acquisition. These
transactions will result in

a) Cash used in Investing Activities ₹ b) Cash generated from Financing Activities ₹

7,00,000. 6,80,000.

c) Cash used in Investing Activities ₹ d) Cash generated from Financing Activities ₹

6,80,000. 7,20,000.
30. Which of the following activities are operating activities for the purpose of preparing Cash flow statement? [1]
i. Dividend and Interest received on securities.
ii. Payment of employee benefit expenses.
iii. Cash receipts from royalties and fees.
iv. Issue of shares against purchase of machinery.

a) (i), (ii) and (iii) b) (ii), (iii) and (iv)

c) (i), (ii) and (iv) d) (ii) and (iii)

31. State under which major headings and sub-headings will the following items be presented in the Balance Sheet [3]
of a company as per Schedule-III, Part-I of the Companies Act, 2013:
i. Prepaid Insurance
ii. Investment in Debentures
iii. Calls-in-arrears
iv. Unpaid dividend
v. Capital Reserve
vi. Loose Tools
vii. Capital work-in-progress
viii. Patents being developed by the company.
32. A company had a liquid ratio of 1.5 : 1 and a current ratio of 2 : 1. Its Inventory Turnover Ratio was 6 times. It [3]
had total current assets of ₹ 2,00,000
Find out revenue from operations if the goods are sold at 25 % profit on cost.
33. From the following Balance Sheets of Vinayak Ltd. as at 31st March, 2019, prepare a comparative Balance [4]
Sheet.
Vinayak Ltd.

Balance Sheet as at 31st March, 2019

31-3-19 31-3-18
Particulars Note No.
(₹) (₹)

I. Equity and Liabilities:

1. Shareholders Funds

(a) Share Capital 21,00,000 20,00,000

(b) Reserves and Surplus 2,30,000 2,00,000

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 2. Non-current Liabilities

Long term borrowing 5,60,000 2,00,000

3. Current Liabilities

Trade payables 2,80,000 1,00,000

Total 31,70,000 25,00,000

II. Assets:

1. Non-current Assets

Fixed Assets

(i) Tangible assets 21,00,000 20,00,000

(ii) Intangible assets 3,00,000 2,00,000

2. Current Assets

(a) Inventories 5,60,000 2,00,000

(b) Cash and cash equivalents 2,10,000 1,00,000

Total 31,70,000 25,00,000

OR
From the following Statement of Profit and Loss of Fearless India Ltd. for the year ended 31st March, 2018 and 2019,
prepare a Comparative Statement of Profit and Loss:

2018-19 2017-18
Particulars Note No.
(₹) (₹)

Revenue from operations 45,00,000 20,00,000

Employee Benefit Expenses 10,00,000 8,00,000

Other expenses 5,00,000 2,00,000

Tax Rate 30%

34. From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. Prepare a cash flow statement. [6]

Note 31st March, 2010 31st March, 2011

Particulars
No. Amt (Rs) Amt (Rs)

I.EQUITY AND LIABILITIES

1.Shareholders' Funds

(a)Equity Share Capital 5,00,000 7,00,000

(b)Reserves and Surplus(Balance in statement of

2,00,000 3,50,000
profit and loss)

2.Current Liabilities

(a)Short-term Borrowings (Bank loan) 1,00,000 50,000

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(b)Trade Payable (Creditors) 55,000 52,000

(c)Short-term Provisions 1 80,000 1,20,000

Total 9,35,000 12,72,000

II.ASSETS

1.Non-current Assets

(a)Fixed Assets 2 6,00,000 5,95,000

(b)Non-current Investment - 1,00,000

2.Current Assets

(a)Trade Receivables (Debtors) 80,000 1,47,000

(b)Inventories (Stock) 55,000 1,30,000

(c) Cash and Cash Equivalents (Bank) 2,00,000 3,00,000

Total 9,35,000 12,72,000

Notes to Accounts

Particulars 31st March, 2010 (Rs) 31st March, 2011(Rs)

1.Short-term Provisions

Provision for Tax 30,000 50,000

Proposed Dividend 50,000 70,000

80,000 1,20,000

2.Fixed Assets

Tangible (Equipment) 5,00,000 5,00,000

Intangible (Patents) 1,00,000 95,000

6,00,000 5,95,000

Additional Information
During the year equipment costing Rs.1,00,000 was purchased. Loss on sale of equipment amounted to
Rs.12.000. Rs.18,000 depreciation was charged on equipment.

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