CBSE Accountancy Class 12 Sample Paper 10 Page 1

ample Paper 10
S
Accountancy (055)
Class XII Session 2024-25
Time : 3 Hours Max. 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, 31 and 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. Girish, Shrish and Manish are partners in a firm without any agreement. They have contributed `2,500,
`1,500 and `1,000 by way of capital in the firm. Girish was unable to work for six months in a year due to
illness. At the end of year, firm earned a profit of `750. Girish’s share in the profit will be
(a) `188 (b) `250
(c) `125 (d) `375

2. Assertion (A): A company has to pay interest on calls in advance @12% p.a. for the amount adjusted
towards calls (if any).
Reason (R): In case of shares issued on a pro-rata basis, excess money received at the time of application
can be utilised till allotment only.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.

3. When shares offered to public are completely subscribed, it is ______.

(a) under subscription of shares (b) no subscription of shares
(c) full subscription of shares (d) None of these

O
Harsh Enterprises Limited entered into an agreement to purchase assets worth `12,60,000 from Crown
Sales Limited. Instead of making a cash payment, Harsh Enterprises Limited decided to settle the purchase
consideration by issuing equity shares with a face value of `100 each. These equity shares were issued at
a premium of 20%, as per the terms of the agreement. Based on this information, calculate the amount of
premium involved in the transaction.
(a) `2,10,000 (b) `12,60,000
(c) `10,50,000 (d) None of these
Page 2 Sample Paper 10 CBSE Accountancy Class 12

4. Jeet, who is a partner in the firm Royals, has taken possession of a furniture item with a book value of
`6,000 for personal use. Identify the correct journal entry to record this transaction from the options given
below:
(a) Furniture A/c Dr 6,000
To Jeet’s Capital A/c 6,000
(b) Furniture A/c Dr 6,000
To Cash A/c 6,000
(c) Jeet’s Capital A/c Dr 6,000
To Furniture 6,000
(d) Cash A/c Dr 6,000
To Furniture A/c 6,000
O
Vikram and Sameer were partners sharing profits and losses in the ratio of 2:1. Their balance sheet shows
furniture valued at `1,20,000. They admitted Aarav as a new partner for 1/4th share. In additional
information, it is given that the furniture is undervalued by 33.33%. The share of gain/loss of revaluation
of Sameer is ______ and current value of the furniture shown in the new balance sheet is ______.
(a) Gain `20,000, Value `1,80,000 (b) Loss `25,000, Value `1,90,000
(c) Gain `30,000, Value `1,80,000 (d) Gain `22,500, Value `1,80,000
5. The profit earned by a firm after retaining `20,000 to its reserve was `1,00,000. The firm had total tangible
assets worth `12,00,000 and outside liabilities `4,00,000. The value of the goodwill as per capitalization of
average profit method was `2,00,000. Determine the rate of Normal Rate of Return (NRR).
(a) 10% (b) 12%
(c) 15% (d) 8%

6. Suman applied for 1,800 shares, allotted in the ratio of 5:4. She paid an application money of `4 per share
but did not pay the allotment money of `4 per share on the 1,440 shares allotted. The first and final call
of `2 per share was not yet made. Her shares were forfeited. The journal entry is:
Share Capital A/c Dr. X
To Share Forfeited A/c Y
To Share Allotment A/c Z
Here X, Y, and Z are:
(a) `11,520; `5,760; `5,760 (b) `11,520; `7,200; `4,320
(c) `9,600; `5,760; `3,840 (d) `9,600; `6,400; `3,200
O
Vidhata Industries Limited invited applications from the public for the subscription of 8,000 equity shares,
each having a nominal value of `10. The issue price for the shares was kept at `10 per share, as per the
terms of the invitation. However, the company received applications for only 7,600 shares. Based on the
number of shares applied for, the total amount received by the company on application will be ______.
(a) `72,000 (b) `84,000
(c) `80,000 (d) `76,000

7. On 1st March 2020, a company took a loan of `70,00,000 secured against its warehouse. This loan was
further backed by issuing 25,000, 12% Debentures of `100 each. On 28th February 2024, the company failed
to repay the loan, and the warehouse was sold for `50,00,000. The debentures were invoked and sold on 1st
April 2024. From which date does interest on debentures become payable?
(a) 1st March 2020 (b) 28th February 2024
(c) 1st April 2024 (d) 1st March 2024

8. Ramesh, a partner, took over Machinery worth `1,20,000 in part settlement of his loan of `1,50,000. The
Machinery was already transferred to the Realisation Account.How will it affect the Realisation Account?

(a) Realisation Account will be credited by (b) Realisation Account will be credited by
`1,50,000 `30,000
(c) Realisation Account will be credited by (d) No effect on Realisation Account
`1,20,000
CBSE Accountancy Class 12 Sample Paper 10 Page 3

O
Tina, Rina, and Sima were partners sharing profits and losses in the ratio of 3:2:1. Their books showed
Workmen Compensation Reserve of `90,000. Workmen Claim amounted to `90,000. How will it affect the
books of accounts at the time of dissolution of the firm?
(a) `90,000 will be credited to the Realisation Account and paid off.
(b) `90,000 will be distributed amongst partners.
(c) `90,000 will be credited to the Realisation Account, and `90,000 will be paid off.
(d) No effect on partners’ capital accounts.

9. Aryan, Meera, and Naina are partners sharing profits and losses in the ratio of 3:2:1. Their fixed capital
balances were `7,00,000, `5,00,000, and `3,00,000, respectively. For the year ended March 31, 2024, profits
of `1,50,000 were distributed without providing for Interest on Capital @ 10% p.a., as per the partnership
deed.
While passing an adjustment entry, which of the following is correct?
(a) Naina will be credited by `3,000 (b) Naina will be credited by `2,500
(c) Naina will be credited by `5,000 (d) Naina will be credited by `4,000

10. During the dissolution of a partnership firm, the stock was valued at `5,00,000 as per the books of the firm.
One of the partners, Harry, decided to take over 50% of the stock for himself. As per the agreement, Harry
would receive a discount of 20% on the book value of the stock he took over. Based on this information, the
value of the stock taken over by Harry will be ?
(a) `1,00,000 (b) `2,00,000
(c) `5,00,000 (d) `2,50,000

11. Arjun, Mohan, and Kunal are partners sharing profits and losses in the ratio of 3:2:1. Kunal’s fixed capital
balance as on March 31, 2024, was `3,00,000. Which of the following transactions would have no effect on
this fixed capital balance?
(a) Additional capital introduced
(b) Interest on Capital credited
(c) Profit transferred to Kunal’s Current Account
(d) Reduction in Capital

12. In Private Placement

(i) shares can be issued to a select group of investors.
(ii) it involves fewer legal and regulatory requirements compared to public offerings.
(iii) shares must also be offered to the general public alongside private investors.
Which of the following is correct?
(a) Only (i) is correct. (b) Both (i) and (ii) are correct.
(c) All are correct. (d) Only (iii) is correct.

13. 10,000 shares allotted to Ms. Shreya, on which `90 each was called up and `60 paid, were forfeited and
reissued for `80 each as `90 paid-up. What amount will be transferred to the Capital Reserve Account?
(a) `3,00,000 (b) `4,00,000
(c) `5,00,000 (d) `3,50,000

14. X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. They decide to share future profits
in the ratio of 3:2:1. If a Workmen Compensation Reserve appears in the balance sheet on the date of
reconstitution and no specific information about liabilities is available, how should it be treated?
(a) Distributed to the partners in old profit-sharing ratio
(b) Distributed to the partners in new profit-sharing ratio
(c) Distributed to the partners in capital ratio
(d) Carried forward to the new balance sheet without any adjustment
Page 4 Sample Paper 10 CBSE Accountancy Class 12

15. Amit, Raj, and Sohan were partners sharing profits and losses in the ratio of 5:3:2. Their capital balances
as on March 31, 2024, were `10,00,000, `8,00,000, and `6,00,000, respectively. On the same date, they
admitted Karan as a new partner for a 25% share. Karan was to bring `1,50,000 for his share of goodwill
and 1/4 of the combined capital of all the partners of the new firm. What will be the amount of capital
brought in by Karan on his admission as a new partner?
(a) `6,50,000 (b) `7,50,000
(c) `8,50,000 (d) `9,00,000

O
Naresh, Kamlesh and Rakesh were in partnership sharing profits and losses equally. Kamlesh retires. After
adjustments, his capital account shows a credit balance of `1,20,000 as on 1st April, 2012. The balance due
to Kamlesh is to be paid in three equal instalments together with interest @ 5% per annum. Amount to be
paid to Kamlesh on 30th March, 2013 will be
(a) `46,000 (b) `54,000
(c) `60,000 (d) `40,000

16. Ramesh and Jagesh are sharing profits and losses in the ratio of 3 : 2. Aklesh is admitted with 1/5th share
in profits of the firm which he gets entirely from Ramesh. Find out the new profit sharing ratio.
(a) 8 : 12 : 5 (b) 2 : 2 : 1
(c) 2 : 2 : 2 (d) 12 : 8 : 5

17. Arjun and Virat are partners in a firm sharing profits in the ratio 2:1 Their combined capital on 1st April
2021 was `3,84,000. Interest on capital is agreed @ 5% p.a. The profits of the year prior to interest on
capital but after charging Virat’s salary amounted `45,000. Fill in the missing figures in the following
accounts as on 31st March 2022.
Profit and Loss Appropriation A/c
Dr. for the year ending 31st March 2022 Cr.
Particulars Amount (`) Particulars Amount (`)
To Interest on Capital : By Net Profit 57,000
Arjun 12,000
Virat 7,200 ........
To Salary (Virat) .......
To Divisible Profit :
Arjun .......
Virat ....... .......
....... .......

Dr. Partners’ Capital A/cs Cr.

Particulars Arjun Virat Particulars Arjun Virat
(`) (`) (`) (`)
To Balance c/d ........ ........ By Balance b/d ........ ........
By Interest on Capital A/c ........ ........
By Profit and Loss ........ ........
Appropriation A/c
By Salary A/c ........
........ ........ ........ ........
CBSE Accountancy Class 12 Sample Paper 10 Page 5

18. Following is the Balance Sheet of Vivek, Hitesh and Abir as on 31st March, 2022.

Liabilities Amount (`) Assets Amount (`)

Capital Accounts : Machinery 1,16,000
Vivek 1,50,000 Stock 64,000
Hitesh 80,000 Debtors 73,000
Abir 70,000 Bank 78,000
Sundry Creditors 25,000 Goodwill 30,000
Workmen’s Compensation Fund 36,000
3,61,000 3,61,000
Hitesh died on 30 June 2022. Under the terms of the deed the executor of the deceased partner was
th

entitled to the following:

(i) Amount standing to the credit of the Partner’s Capital Account.
(ii) Interest on Capital at 12% p.a.
(iii) Share of goodwill. Goodwill is valued at `1,80,000.
(iv) There was a claim on Workmen’s Compensation of `18,000.
(v) Share of profit from the closing of the last financial year to the date of death based on last year’s
profits, which was `93,000.
Pass the necessary Journal entries for the above settlement.

O
Divya, Monika and Devika were partners sharing profits and losses in the ratio of 2:3:2. On 1st April, 2022
they decided to change their profit sharing ratio as 2:1:1. On this date their Balance sheet showed the
following balances: General Reserve `40,000; Workmen Compensation Reserve `13,000; (Liability against
this was `4,000) Profit and Loss A/c (Dr. balance) `4,200 The assets of the firm were revalued and they
resulted in a gain of `8,400. The partners had decided to distribute all the Reserves and Profit and Loss
A/c but to leave the assets at their original amount. Show the effect of the above adjustments in the books
of the partnership firm by passing journal entries.

19. Gupta Trading Company has an Authorised Capital of `20,00,000 divided into Equity Shares of `10 each.
The Company invited applications for 1,00,000 shares. Applications for 95,000 shares were received. All
calls were made and all amounts were duly received except the final call of `4 per share on 2,000 shares.
1,000 of the shares on which the final call was not received were forfeited. Show how the Share Capital will
appear 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.

O
Jagdish & Sons. has Securities Premium Reserve `36,00,000 appearing in its Balance Sheet.
You are required to suggest ways in which the Company can utilise the Securities Premium amount.

20. Ojas Films Private Limited dealing in manufacture ladies garments decided to manufacture masks, gloves
and other precautionary kits for people for which it required more of additional funds. Since the company
has already raised money through shares equal to its authorised capital, the company decided to raise the
additional funds through issue of `40,00,000; 7% debentures of `100 each at a discount of 6%, redeemable
at a premium of 5% after five years. The amount was payable as follows:
On Application – `30
On Allotment – The Balance amount
Answer the following questions on the basis of the above information:
(i) Pass journal entry for allotment of debentures.
(ii) Prepare ‘Loss on Issue of Debentures Account.’
(iii) What entry will be passed for writing off the interest on debentures?
Page 6 Sample Paper 10 CBSE Accountancy Class 12

21. Lucky, Jacky and Micky were partners in a firm having capitals of `50,000; `50,000; and `1,00,000
respectively. Their current account balances were Lucky : `10,000 (Cr.); Jacky : `5,000 (Cr.) and Micky
: `2,000 (Dr.). Drawings made during the year were `2,000, `3,000 and `1,500 respectively. According to
the partnership deed, the partners were entitled to an interest on capital 5% p.a. Micky, being the working
partner, was also entitled to a salary of `6,000 p.a. The profits were to be divided as follows:
(a) The first `20,000 in proportion to their capitals.
(b) Next `30,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally.
The firm made a profit of `1,56,000 for the year ended 3151 March 2019 before charging any of the above
items. Prepare the Profit and Loss Appropriation A/c.

22. On 1st April 2021, Krishna Group of Limited issued 8,000 9% Debentures of `100 each at a discount of 6%
redeemable at a premium of 5% after five years. Pass journal entries for the issue and payment of interest
on debentures for the year ended 31st March 2022.

23. Raman Pharmaceutical Co. Limited invited applications for 30,000 equity shares of `100 each issued at a
premium of `20 per share. The amount were payable as follows:
On Application `40 (including `10 as premium).
On Allotment `40 (including `10 as premium).
On First call `20.
On Second and Final call `20.
Applications for 40,000 shares were received and pro-rata allotment was made on the applications for 35,000
shares. Excess application money is to be utilised towards allotment.
Ajay to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited
after allotment.
Aman who applied for 1,050 shares failed to pay the first call and his shares were forfeited after the first
call. The Second and Final call was not yet made.
Of the shares forfeited 1,000 shares were reissued as fully paid for `80 per share which included the whole
of Ajay’s shares.
Journalise the above transaction.
O
(a) Insta Education Private Limited purchased Land costing `27,00,000 from Akash Ltd. Insta Education
Private Limited paid 30% of the amount by cheque and the balance was paid by issue of Equity shares
of `100 each at a premium of 20%. Pass necessary journal entries.
(b) Techno Enterprises Limited forfeited 500 equity shares of `100 each for non-payment of first call of
`20 and final call of `10 per share. State:
(i) Can these shares be reissued?
(ii) If yes, state the minimum amount at which these shares can be reissued.
(iii) If these shares were reissued at `50 per share fully paid-up, what will be the amount of Capital
Reserve?

24. James and Thomas are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st
March, 2022 was as follows:

Liabilities Amount (`) Assets Amount (`)

Outstanding Expenses 20,000 Cash 8,000
Bills Payable 76,000 Debtors 1,20,000
Creditors 70,000 Less : Provision for
Workmen Compensation Fund 70,000 doubtful debts (20,000) 1,00,000
Investment Fluctuation Fund 20,000 Stock 80,000
General Reserve 40,000 Investments 1,00,000
Capital Accounts: Furniture 60,000
James 2,00,000 Machinery 3,08,000
Thomas 1,60,000
6,56,000 6,56,000
CBSE Accountancy Class 12 Sample Paper 10 Page 7

On 1st April, 2022 they admitted Cooper as a partner for 1/10th share in profits which he acquired equally
from James and Thomas on the following terms:
(i) Cooper is to bring `50,000 as Capital and it was decided that the capital of all partners shall be in
proportion to their profit sharing ratio on the basis of Cooper’s Capital. Any deficiency or excess of
capital will be adjusted through opening Current Accounts.
(ii) The Goodwill of the firm is valued at `60,000 and Cooper will contribute his share of goodwill in cash.
(iii) Provision on debtors was found to be in excess by `4,000.
(iv) Outstanding expenses will be reduced to `6,000.
(v) Depreciate stock by 5%.
(vi) Market value of investments was `70,000.
Prepare Revaluation A/c and Partners’ Capital Accounts of the newly constituted firm.

O
Sohail, Hafiz and Bashir are partners sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet
as on 31st March, 2022 stood as under:

Liabilities Amount (`) Assets Amount (`)

Bills Payable 90,000 Cash 44,000
Creditors 36,000 Debtors 70,000
General Reserve 18,000 Less : Provision for
Investment Fluctuation Fund 4,000 doubtful debts (10,000) 60,000
Capital A/cs: Stock 80,000
Sohail 1,40,000 Investments 44,000
Hafiz 1,60,000 Furniture 48,000
Bashir 1,00,000 Machinery 2,48,000
Goodwill 24,000
5,48,000 5,48,000
On the above date Hafiz retired. It is agreed that:
(i) Goodwill of the firm will be valued at `90,000.
(ii) Value of Machinery and Furniture to be depreciated by 5%.
(iii) Provision for doubtful debts to be maintained at 20% on Sundry Debtors.
(iv) Out of total insurance paid, premium amounting to the extent of `1,000 to be treated as prepaid
insurance. This was earlier debited to the Profit and Loss Account.
(v) The total capital of the new firm is decided to be `2,40,000. Necessary adjustments to be made in cash.
(vi) Hafiz will be paid 20% of the total amount due to him in cash and the balance will be transferred to
his Loan Account.
Prepare Revaluation A/c and Partners’ Capital Accounts of the reconstituted firm.

25. Bhakti, Pari and Tripti were partners sharing profits and losses in the ratio of 3:2:1. The firm was dissolved
on 31st March 2022. After transfer of assets and liabilities to Realisation A/c the following transactions
took place.
Give journal entries in the books on dissolution of the firm.
(a) Pari’s Loan to the firm `30,000 was settled at `28,500.
(b) Workmen Compensation Reserve – `40,000. A liability equal to 60% of the reserve was settled.
(c) Tripti was to receive 5% of the value of assets realised as remuneration for completing the dissolution
work and was to bear realisation expenses. Realisation expenses were `5,500 that was paid by Tripti.
Assets realised `60,000.
(d) The Balance Sheet disclosed a footnote, contingent liability for `5,000 in respect of a bill discounted.
The bill was received from Khushi. On the date of dissolution, Khushi was declared insolvent and was
not able to pay the amount due. The bill had to be met by the firm.
Page 8 Sample Paper 10 CBSE Accountancy Class 12

26. DEF Ltd. provides the following extracts from its Balance Sheets as at 31.03.2023 and 31.03.2024, prepared
as per Schedule III of the Companies Act, 2013:
Balance Sheet (Extract)
as at 31 March, 2024
I- Equity & Liabilities Note no. 31.3.2023 31.3.2024
1. Shareholders’ Funds
(a) Share Capital 1 36,00,000 46,40,000
(b) Reserves & Surplus 2 1,60,000 3,24,000

Note 1 (as at 31.03.2023)

Share Capital
1. Authorised Share Capital 60,00,000
6,00,000 Equity Shares of `10 each

2. Issued Share Capital

3,70,000 Equity Shares of `10 each 37,00,000

3. Subscribed Share Capital

(a) Subscribed & Fully Paid 36,00,000
3,60,000 shares @ `10
(b) Subscribed but not fully paid 1,00,000
10,000 shares @ `10
Less : Calls in arrears (10,000 × `2) –20,000
36,80,000

Note 1 (as at 31.03.2024)

Share Capital
1. Authorised Share Capital 60,00,000
6,00,000 Equity Shares of `10 each

2. Issued Share Capital

4,70,000 Equity Shares of `10 each 47,00,000
(Out of these, 50,000 shares were issued to vendors as consideration for the
purchase of machinery.)

3. Subscribed Share Capital

(a) Subscribed & Fully Paid 46,00,000
4,60,000 shares @ `10
(b) Subscribed but not fully paid 1,00,000
10,000 shares @ `10
Less : Calls in arrears (10,000 × `2) –20,000
46,80,000

Note 2 – Reserves and Surplus:

31.03.2023 31.03.2024
Capital Reserve Nil 56,000
Securities Premium 1,60,000 3,24,000
CBSE Accountancy Class 12 Sample Paper 10 Page 9

Additional Information
• During the year, the company purchased machinery worth `5,00,000. The vendor accepted `5,00,000
in shares at par (50,000 shares × `10 each).
• The Securities Premium increased by `1,64,000 (from `1,60,000 to `3,24,000). This additional premium
came from shares issued for cash. Since 50,000 shares were issued at par to the vendor, the remaining
50,000 shares (out of 1,00,000 newly issued shares) must have been issued at a premium of `2 each.
• On April 1, 2024, the company forfeited 10,000 partly paid shares for non-payment of the final call of
`2 per share.
• Out of these forfeited shares, 3,000 shares were reissued at `12 per share.

(i) What is the total face value of shares issued by the company during the year 2023-24?
(a) `10,00,000 (b) `8,00,000
(c) `9,50,000 (d) `6,00,000
(ii) Shares issued for cash during the year were issued at ______.
(a) `10 (b) `12
(c) `11 (d) `14
(iii) On April 1, 2024, the company forfeited all the defaulting shares. What amount will appear in the
Share Forfeiture Account at the time of forfeiture?
(a) `48,000 (b) `20,000
(c) `80,000 (d) `60,000
(iv) What will be the number of issued shares, as on April 1, 2024, after the forfeiture of these shares?
(a) 4,60,000 shares (b) 4,70,000 shares
(c) 4,50,000 shares (d) 4,40,000 shares
(v) If 3,000 of the forfeited shares were reissued at `12 per share, what will be the amount of Securities
Premium and Capital Reserve respectively as on April 1, 2024?
(a) `3,26,000; `56,000 (b) `3,24,000; `64,000
(c) `3,30,000; `74,000 (d) `3,20,000; `72,000
(vi) What will be the amount in the “Subscribed and Fully Paid” after the reissue of these 3,000 shares?
(a) `46,00,000 (b) `46,30,000
(c) `47,10,000 (d) `47,20,000

PART-B
Analysis of Financial Statements (Option-I)

27. Calls-in-advance appears in a company’s Balance sheet under ______.

(a) Reserves and surplus
(b) Current liabilities
(c) Share capital
(d) Long-term Provision

O
The technique of evaluating the financial health of a company by using public financial data is called
______.
(a) Internal Analysis
(b) External Analysis
(c) Horizontal Analysis
(d) Comparative Analysis
Page 10 Sample Paper 10 CBSE Accountancy Class 12

28. As on 31.03.2024, the following information of Polaris Ltd. is available:

Debt to Equity Ratio: 1.5:1
Proprietary Ratio: 0.40 (40%)
On 01.04.2024, it was discovered that an issue of equity shares amounting to ` 5,00,000 made during the
financial year 2023-24 was not recorded in the books. After correcting this omission, what will be the effect
on the Debt to Equity Ratio and the Proprietary Ratio?
Points to Consider:
• Debt to Equity Ratio = Long-term Debt ÷ Shareholders’ Equity
• Proprietary Ratio = Shareholders’ Funds ÷ Total Assets

• Recording the omitted equity share issue will increase Shareholders’ Equity (and thus Shareholders’
Funds).
• There is no change in long-term debt or total assets arising from this omission (assuming total assets
increase by the same amount as equity, leaving liabilities unchanged).
(a) Debt to Equity Ratio will increase and Proprietary Ratio will decrease
(b) Debt to Equity Ratio will decrease and Proprietary Ratio will increase
(c) Both Debt to Equity Ratio and Proprietary Ratio will remain unchanged
(d) Debt to Equity Ratio will decrease and Proprietary Ratio will remain unchanged

29. Which of the following adjustments are necessary for preparing the Cash Flow Statement under the indirect
method as per AS 3 (Revised)?
(i) Add back depreciation
(ii) Subtract gain on sale of investments
(iii) Treat bank overdraft as short-term borrowing
(iv) Classify current investments as marketable securities
(a) Only (i) and (ii) (b) Only (i), (ii), and (iii)
(c) Only (i), (iii), and (iv) (d) All of the above

O
Which of the following statements is correct?
(a) Depreciation expense should be deducted from net profit when computing cash from operating
activities.
(b) Short-term borrowings are classified under investing activities.
(c) Current tax payable is treated as a short-term borrowing in the Cash Flow Statement.
(d) Decrease in inventory is deducted from net profit.

30. Statement-I : ‘Delta Ltd.’ purchased land worth `20,00,000 and sold old machinery for `10,00,000, incurring
a loss of `2,00,000. It repaid a loan of `5,00,000 and issued equity shares worth `15,00,000. Depreciation of
`4,00,000 was charged during the year, and the company paid `3,00,000 as tax. Based on these transactions,
the cash flow from investing, financing, and operating activities will be `(10,00,000) (Investing), `10,00,000
(Financing), and `19,00,000 (Operating), respectively.
Statement-II : ‘Omega Ltd.’ earned `2,00,000 as dividend income from its investments and paid `1,50,000
as an interim dividend to its shareholders. As per AS 3 (Revised), dividend income will be classified as
cash inflow from operating activities, and the interim dividend paid will be shown as a cash outflow from
financing activities.
(a) Both the statements are true. (b) Both the statements are false.
(c) Only Statement-I is true. (d) Only Statement-II is true.

31. Find the heads and sub-heads under which the following items will appear in the balance sheet of a
company as per Schedule III, Part I of Companies Act, 2013:
(a) Leasehold Land
(b) Prepaid Rent
(c) Dividend Receivable
(d) Borrowings Repayable within 12 Months
(e) Provision for Contingencies
(f) Unpaid Telephone Charges
CBSE Accountancy Class 12 Sample Paper 10 Page 11

32. Complete the Comparative Statement of Profit and Loss based on the data provided:
Particulars 2017-18 2018-19 Absolute Change % Change
Revenue from Operations 16,00,000 24,00,000 ? ?
Less: Employees Benefit Expenses 6,00,000 ? ? 50%
Less: Other Expenses 2,00,000 ? 1,00,000 ?
Profit before Tax 8,00,000 ? ? 25%
Tax @ 30% ? ? 60,000 ?
Profit after Tax 5,60,000 ? 1,40,000 ?

33. The current ratio of a company is 2 : 1. State giving reasons which of the following would improve, reduce
or not change the ratio:
(i) Repayment of trade payables.
(ii) Sale of Motor vehicles at a loss of 20%.
(iii) Sale of goods at a profit of 10%.
(iv) Purchase of Machinery for `10,000 on credit of 2 months.
O
From the following information calculate the Working Capital Turnover Ratio and Fixed Assets Turnover
Ratio.
Cost of Revenue from Operations `5,00,000
Gross Profit Ratio 20%
Fixed Assets `5,00,000
Capital Employed `7,50,000

34. Following is the Balance Sheet of Sundram Packaging Private Limited as at March 31, 2021 and 2022.
Particulars Note 31 March 2022 31 March 2021
No. (`) (`)
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(a) Share Capital 24,00,000 20,00,000
(b) Reserves and Surplus 1 9,00,000 7,00,000
2. Non-Current Liabilities :
Long-term Borrowings 4,00,000 3,00,000
3. Current Liabilities :
(a) Short-term Borrowing (Bank Overdraft) 40,000 20,000
(b) Trade Payables 70,000 30,000
(b) Provisions for Taxation 2,50,000 1,50,000
Total 40,60,000 32,00,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipments and Intangible Assets:
(i) Property, Plant and Equipments: Machinery 2 21,40,000 16,20,000
(ii) Intangible Assets 3 3,20,000 4,00,000
2. Current Assets :
(a) Inventories 5,60,000 3,50,000
(b) Trade Receivables 6,50,000 5,30,000
(c) Cash and Cash Equivalents 3,90,000 3,00,000
Total 40,60,000 32,00,000
Page 12 Sample Paper 10 CBSE Accountancy Class 12

Notes to Accounts:

Particulars 31 March 2022 (`) 31 March 2021 (`)

1. Reserves and Surplus
Surplus i.e. Balance in Statement of Profit and Loss 9,00,000 7,00,000
2. Property, Plant and Equipments
Machinery 23,30,000 17,70,000
Less: Accumulated Depreciation (1,90,000) (1,50,000)
21,40,000 16,20,000
3 Intangible Assets
Goodwill 3,20,000 4,00,000
Prepare a Cash Flow Statement after taking into account the following adjustment:
Proposed dividend as on 31st March 2021 and 2022 are `2,10,000 and `2,50,000 respectively.

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