Date: …..

/04/2025
DELHI PUBLIC SCHOOL, MEERUT
(AN INSTITUTION OF M.P. SINGH FOUNDATION)
(UNDER THE AEGIS OF THE DELHI PUBLIC SCHOOL SOCIETY, NEW DELHI)
PERIODIC TEST-I: 2025-2026
CLASS – XII, ACCOUNTANCY (SET- C)
Time: M.M: ____

Name : ______________________ Class & Sec: _____ Roll No: ______ Invigilator’s Sign: _______
General Instructions:
1. All Questions are compulsory.
2. Marks are indicated against each question

Q-1. Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9:8:7. If 1
Radhika’s share of profit at the end of the year amounted to ₹ 5,40,000, Shubha’s share of profit will be:
(Applying)
(a) ₹ 5,40,000 (b) ₹ 4,80,000
(c) ₹ 60,000 (d) ₹ 4,20,000
Q-2. Assertion (A): Over a period of time, a well-established business develops an advantage of good name, 1
reputation and wide business connections.
Reason (R): This helps the business to earn more profits as compared to a newly set up business.
(Remembering & Understanding)
Select the correct answer from the following:
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.
Q-3. An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a short 1
maturity period of : (Applying)
(a) One month or less (b) Three months or less
(c) Three months or more (d) One year or less
Q-4. Statement 1: The business of a partnership concern may be carried on by all the partners or any of them 1
acting for all.
Statement 2: There exists a relationship of mutual agency between all the partners. (Remembering &
Understanding)
(a) Both Statements 1 & 2 are true.
(b) Both Statement 1 & 2 are false.
(c) Statement 1 is true; Statement 2 is false
(d) Statement 2 is true; Statement 1 is false.
Q-5. Write down the sub heads under the main head “Non-Current liabilities” (Remembering & 1
Understanding)
Q-6. Assets = ₹ 10,00,000 & Liabilities = ₹ 6,00,000, Annual profits = ₹ 40,000, Normal Profits = 10%. State 1
the amount of Goodwill by capitalisation of super profits. (Applying)
Q-7. X & Y started business on 01.04.2023 with capitals of ₹ 2,00,000 & ₹ 2,25,000 respectively. X 1
introduced ₹ 50,000 on 01.10.2023. Interest on capital payable to X will be ____________ if rate of
interest was 10% p.a. (Remembering & Understanding)
Q-8. What is the normal rate of return if Super profits are ₹ 25,000, Average profits of firm is ₹ 75,000 & 1
goodwill of the firm is ₹ 50,000. (Analysis, Evaluation & Creating)
Q-9. A & B are partners sharing profits & losses in 3:2. A is entitled to receive ₹ 600 as interest on capital. 1
After closing the accounts, it was discovered that interest on capital was not given to A. Calculate the
amount of actual profits to be given to A if profit of the firm before considering interest on capital was ₹
60,000. (Analysis, Evaluation & Creating)
Q-10. Closing capitals of A & B were ₹ 1,10,000 & ₹ 2,20,000 respectively. In these arriving figures interest on 1
capital @ 10% p.a. was already credited to them. Calculate opening capitals of A & B (Applying)
Q-11. A and B are partners sharing profits in the ratio of 3 : 2. They decided to admit C as a partner from 1st 3
April, 2023 on the following terms:
(a) C will be given 2/5th share of the profit.
(b) Goodwill of the firm be valued at two years’ purchase of three year’s normal average profit of the
firm. Profits of the previous three years ended 31st March, were:
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 2023 – Profit ₹ 30,000 (after debiting loss of stock by fire ₹ 40,000)
2022 – Loss ₹ 80,000 (includes voluntary retirement compensation paid ₹ 1,10,000). 2021 – Profit ₹
1,10,000 (including a gain (profit) of ₹ 30,000 on the sale of fixed assets).
You are required to calculate the value the goodwill (Remembering & Understanding)
Q-12. Classify the following items under major heads and sub-heads in the Balance Sheet of the company as 3
per Schedule-III, Part-I of the Companies Act, 2013. (Remembering & Understanding)
i. Capital reserve
ii. Calls in Advance
iii. Cash at Bank
Q-13. Ahmad, Bheem and Daniel are partners in a firm. On 1st April 2023 the balance in their capital accounts 4
stood at ₹ 8,00,000, ₹ 6,00,000 and ₹ 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 @ ₹
3,000 per month and a commission of ₹ 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 ₹ 25,000 p.a. Bheem's
share of profit, including interest on capital but excluding salary, is guaranteed at not less than ₹ 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 2024 amounted to ₹ 2,16,000. Prepare 'Profit and Loss Appropriation Account' for the
year ended 31st March 2024. (Applying)
Q-14. X and Y are partners in a firm. They admit Z into partnership for equal share. It was agreed that goodwill 4
will be valued at three years’ purchase of average profit of last five year. Profits for the last five years
were:
Year Ended 31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.3.2024
Profit/Loss (₹ 90,000) ₹ 1,60,000 ₹ 1,50,000 ₹ 65,000 ₹ 1,77,000
Books of Account of the firm revealed that:
(i) The firm had gain (profit) of ₹ 50,000 from sale of machinery sold in the year ended 31st March,
2021. The gain (profit) was credited in Profit and Loss Account.
(ii) There was an abnormal loss of ₹ 20,000 incurred in the year ended 31st March, 2022 because of a
machine becoming obsolete in accident.
(iii) Overhauling cost of second hand machinery purchase on 1st July, 2022 amounting to 1,00,000 was
debited to Repairs Accounts. Depreciation is charged @ 20% p.a. on Written Down Value Method.
Calculate the value of goodwill (Analysis, Evaluation & Creating)
Q-15. Aakash & Baadal entered into partnership on 1st October,2023 with capitals of ₹ 80,00,000 and ₹ 4
60,00,000 respectively. They decided to share profits and losses equally. Partners were entitled to interest
on capital @ 10% p.a. as per the provisions of the partnership deed.
Baadal is given a guarantee that his share of profits, after charging interest on capital will not be less than
₹ 7,00,000 per annum.
Any deficiency arising on that account shall be met by Aakash, The net profit of the firm for the year
ended 31st March’2024 amounted to ₹ 13,00,000.
Prepare Profit & loss appropriation account for the year ended 31st March’2024. (Applying)
Q-16. (A) On March, 31, 2024 the balance in the capital accounts of Sonu, Monu and Tony, after making (3+3)
adjustments for profits. drawing, etc. were ₹ 8,00,000. Rs, 6,00,000 and ₹ 4,00,000 respectively.
Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The
partners were entitled to interest on capital @ 5 p.a. The drawings during the year were Sonu ₹ 2,00,000;
Monu ₹ 1,50,000 and Tony, ₹ 90,000. Interest on drawings, chargeable to partners were Sonu ₹ 5000,
Monu ₹ 3600 and Tony ₹ 2000. The net profit during the year amount to ₹ 1,20,000, The Profit-sharing
ratio was 3:2:1. Record necessary adjustment entry.
(B) Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed
capital balances are ₹ 4,00,000, ₹ 1,60,000 and ₹ 1,20,000 respectively. Net profit for the year ended 31st
March, 2024 distributed amongst the partners was ₹ 1,00,000, without taking into account the following:
(a) Interest on capital @ 2.5% p.a.;
(b) Salary to Mudit ₹ 18,000 p.a. and commission to Uday ₹ 12,000
(c) Mudit was allowed a commission of 6% of divisible profit after charging such commission.
Pass a rectifying journal entry in the books of the firm. Show workings clearly. (Analysis, Evaluation &
Creating)
Q-17. Jeet and Geet agree to form a partnership in order to carry on a business of apparels. 6
For this, both of them agrees for Capital contribution of ₹ 1,00,000 each for investment in business.
However, as Jeet will be regularly working full time on such business, it is decided between them that
Jeet will receive salary of ₹ 15,000 per month. As Geet will be generating business so it is decided that
Geet will be allowed with a commission of ₹ 25,000. Jeet has provided ₹ 5,00,000 as loan to the firm on
01.07.2023 and thus, interest will be provided to him. It was decided that Geet will provide his own
office building to the firm for which rent of ₹ 18,000 p.a. was fixed. It was further agreed that 10% of
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trading profits will not be distributed and kept for future investment. The profit-sharing ratio of Jeet and
Geet was agreed as 1:1.The trading profits of the firm for the year 2013-24 was ₹ 4,45,500. Show the
distribution of profits of the firm and prepare Partners' Capital Accounts assuming that rent and interest
have been paid to the partners regularly. (Remembering & Understanding)

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