SHIVALIK-HILLS SEN. SEC.

SCHOOL
(SA-1 2022)
Class-12 th
Subject-Accounts
M.M. 80 Time-3 Hour
Name________________________ Sec_________ Roll No_________
1. Which of the following items is not dealt through profit and loss
appropriation account ? (1)
(a) Interest on partners loan (b) Partners salary
(c) Interest on partners capital (d)Partners commission
2. Arun and Vijay are partners in a firm sharing profits and losses in the
radio of 5:1 (1)
Balance sheet (Extract)
Liabilities. ₹ Assets ₹
Machinery 40,000
If the value of machinery in the balance sheet is undervalued by 20% ,
then at what value will machinery be shown in new balance sheet :
(a)44,000 (b) 48,000 (c) 32000 (d) 50,000

3. E, F and G are partners sharing profits in the radio of 3:3:2 . As per

partnership agreement, G is to get minimum amount of
Rs 80,000 as his share of profit every year and any deficiency on this
account is to be personally borne by E . The net profit for the year ended
31st March 2020, amounted to 312000. Calculate the amount of
deficiency to be borne by E ? (1)
(a)Rs 1000 (b) 4000 (c) 8000 (d) 2000
4. Pick the odd one out : (1)
(a) Rent to the partners (b)Manager commission
(c) Interest on partners loan (d)Interest on partners capital
5. Calculate interest in drawing @10% p.a. if X withdrew Rs 3000 per
quarter. (1)
6. P and Q partners in the firm sharing products and losses in 3:1 ratio .
1
They admitted R for th share .R could not bring his share of goodwill
5
premium in Cash . The Goodwill of the firm was valued at 80,000 on R's
admission. Record necessary journal entry for goodwill on R’s
admission. (1)
7. In case of question contains the guarantee of profits by one partner to
another partner ,by the firm to a partner and by a partner to the firm
what sequence of payment should be followed ? (1)
8. Why is rent paid to a partner debited to profit and loss account and not
to profit and loss appropriation account? (1)
9. A firm had Rs.5,00,000 assets and Rs. 210,000 liabilities. the normal
profit rate is 15%. State the value of normal profits. (1)
10. What is the Nature of revaluation account ? (1)
11. Z ltd. Forfeited 1000 equity shares of Rs.10 each for the non-payment of
the first call of Rs.2 per share. The final call of Rs.3 per share was yet to
be made. Calculate the maximum amount of discount at which these
shares can be re-issued? (1)
 12. Distinguish between fixed capital account and fluctuating capitals
account on the basis of credit balance. (1)
13. A and B were partners in a firm sharing Profits and losses in the ratio of
5:3. They admitted C as a new partner. The new profit sharing ratio
1
between A,B and C was 3:2:3 A surrendered of his share in favour of
5
C. Calculate B’s sacrifice (1)
14. A Ltd . purchased the Business of B Ltd . for Rs. 6,75,000 payable in
fully paid shares of 10 each at a premium of 25% . Number of shares to
be issued by A ltd. will be___________ (1)
15. The portion of uncalled Capital , which can be called up only on the
winding up of the Company is called Reserve Capital .
( True False ) (1)
16. Revaluation Account will be debited when : (1)
( a ) value of- fixed assets decrease
( b ) Value of liabilities reduce
(c)Value of fixed assets increase .
(d)None of these .
17. Xand Y are partner sharing profits and losses in the ratio of 5 : 3 . As
per the partnership deed interest on Capital is allowed @ 10% P.a.
There is loss during the year Rs. 70,000 instead of profits . Interest on
Capital will be (1)
(a) Allowed @ 10% P.a. (b) Allowed @ 6 % P.a.
(c) No interest on Capital (d) Allowed @ 5% P.a. only
18. A and B are partners. B has given a loan of Rs.40,000 to the firm on 1st
July 2020. The partnership deed is silent upon the interest on loan . B
claims 10 % . P.a. interest on his loan, What amount of interest is
payable to B on 31st March 2021 (1)
(a)4,000 (b)3,000 (c)2,400 (d)1,800
19. X , Y , Z sharing profits in the ratio of 5:3:2 . They decided to Share
future profits in the ratio of 2:3:5. workmen Compensation reserve of
Rs. 60,000 was available at the time of Change in ratio , and claim of
40,000 against it .
Z's Capital account will be
(a) credited byRs.10000 (b) Credited by Rs. 12,000
(c ) credited by Rs.30,000 ( d ) Credited by Rs. 4,000 (2)
20. State three purposes for which securities premium reserve can be used
by a company. (3)
21. A , B , C and D are partners sharing profits and losses in the ratio
4:3:2:1 . C retires and the new profit sharing ratio among A,B and D is
3:1:1. Goodwill of the firm was Valued at
Rs.165000 on C's retirement .Pass necessary Journal entry for the
treatment of goodwill. Show your working clearly . (3)
22. A and B are partners with Capitals of Rs.16,0,000 and Rs.1,20,000
respectively. They admit C as a partner on
1
1st , April, 2020 for th share in profits of the firm. C brings in
4
Rs. 1,60,000 as his share of Capital. Give Journal entries on C’s
admission. (4)
23. Hema and Prema share profits in the ratio of 5:7. They admit Rema for
 1
share which he acquires in the ratio 3:2 from the old partners.
6
Calculate the sacrificing ratio and the new profit sharing ratio.
(4)
24. P,Q and R are partners. Their fixed Capitals as on 31st March 2017
were: P- Rs. 50,000, Q-Rs.1,00,000 and R-Rs.1,50,000. Profits for the
year 2021-22 amounting to Rs. 60,000 were distributed. Interest on
capital was credited @10%P.a. instead of 12% P.a. Pass the necessary
Adjusting entry. (4)
25. Ajit and Baljit were sharing profits in the ratio of 3 : 2 , They decided to
1
admit Chaman into the in the partnership for th Share in the future
6
profits . Goodwill , Valued at 3 times the average Super profits of the
firm was 18,000 . The firm had assets worth of 15 lakhs and liabilities of
Rs.12 lakhs. The normal earning capacity of such firm is expected to be
10% P.a. Find the average profits and actual profits earned by the firm
during the last 3 years. (4)
26. Comprehensive Ltd. was formed on 1st April 2021 with an authorised
capital of Rs.40,00,000 divided into equity shares of a Rs.10 each.
(i) The Company issued 10,000 shares to its promoters as the
remuneration of the services rendered by them at par.
(ii) Company also issued shares at 10% Premium to Mr.Rajesh for the
purchase of assets of Rs. 3,30,000 from him.
Pass the journal entries for purchase of shares and shares issued to
promoters and Mr. Rajesh. (4)
27. Y and Z are partners with fixed Capitals of Rs.2,50,000 and Rs.1,50,000
respectively. Each partner is entitled to 9% P.a. interest on this capital.
Z is entited to a salary of Rs. 5,000 Per month together with a
commission at 6% of net profit remaining after deducting interest on
Capitals and salary and after charging his commission. The profits for
the year before making any of the above mentioned adjustments amount
to Rs. 3,08,000. Prepare profit and loss appropriation account and
partners Capital account.
(6)
28. From the following information complete Journal entries:- (6)
Date Particulars L.F. Debit Credit
Share Capital A/c………….Dr. ?
Securities Premium A/c……… Dr. 1000
To share forfeiture A/c ?
To calls in Arrears A/c 3500
( ____?____ Shares forfeited
For non-payment of ₹?_____
Including premium of ₹ 2 Per shares)

Bank A/c ___________Dr ?

Share forfeiture A/c_______Dr ?
To Share Capital A/c ?
 (______ ? _______ shares reissued at ₹9
share as fully paid)
Share forfeiture A/c______ Dr 600
To capital Reserve A/c 600
(forfeiture money transferred to Capital
reserve)

Share forfeiture A/c

Date Particular Amount Date Particulars Amoun
t
To Share ? By Share Capital 1500
Capital A/c
To Capital 600
Reserve A/c
To Balance 600
C/d
1500 1500
(Face value of share is ₹ 10 each)
29. Pankaj, Naresh and Saurabh are partners in firm . Their profit Sharing
ratio is 5:3:2 , Saurabh is guranteed a minimum profits of Rs.10,000
every year . Any deficiency arising is to be met by Naresh. Profits for
the two years ended 31st March 2020 and 2021 were Rs.40000 and
Rs.60,000 respectively .
Prepare Profit and loss appropriation account for the two years. ( 6 )
30. Vishvesh and Yogesh are partners in a firm. They share profits and
losses in the ration of 3:2. Their balance sheet as at 31st march,2021 was
as under (8)
Balance Sheet
as at 31st March,2021
Liabilities Amt(Rs.) Assests Amt(Rs.)
Creditors 1,50,000 Cash at Bank 1,20,000
Bills Payable 80,000 Debtors 2,00,000
Outstanding Rent 20,000 (-)Provision for 1,80,000
Doubtful
Debts(20,000)
Capita; A/cs Stock 50,000
Vishvesh 3,00,000 Plant and Machinery 3,40,000
Yogesh 1,50,000 4,50,000 Prepaid Expenses 10,000
7,00,000 7,00,000
They admitted Nishant as a new partner on 1st April , 2021 on the
following terms :
( i ) Nishant will bring in 2,00,000 as capital and the necessary amount
for goodwill
( ii ) The new profit sharing ratio among Vishvesh , Yogesh and Nishant
will be 5 : 3 : 2 .
( iii ) The amount of goodwill is to be based on Nishant's share in profits
and capital contributed by him .
( iv ) Stock to be depreciated by 10 % .
( v ) A provision for doubtful debts is to be only 5,000 .
 (vi ) Plant and machinery are to be depreciated by 5 % .
Prepare the revaluation account and partners capital account and
Balance Sheet of the new firm .
OR
A , B and C were in partnership sharing profits in proportion to their
capitals . Their balance sheet on 31st March , 2021 was as follows :
Balance Sheet
as at 31st March,2021
Liabilities Amt(Rs.) Assests Amt(Rs.)
Creditors 15,600 Cash 16,000
Reserve 6,000 Debtors 20,000
Capita; A/c (-)Provision for 19,600
Doubtful Debts
(400)
A 90,000 Stock 18,000
B 60,000 Machinery 48,000
C 30,000 1,80,000 Buildings 1,00,000
2,01,600 2,01,600
On the above date B retired owing to ill health and the following
adjustments were agreed upon
( i ) Buildings to be appreciated by 10 % .
( ii ) Provision for doubtful debts to be increased to 5 % of debtors .
( iii ) Machinery to be depreciated by 15 % .
( iv ) Goodwill of the firm be valued at 36,000 and be adjusted into the
capital accounts of A and C who will share profits in future in the ratio
of 3 : 1 .
( v ) A provision to be made for outstanding repairs bill of ₹ 3,000
( vi ) Included in the value of creditors is Rs. 1,800 for an outstanding
legal claim , which is not likely to arise .
( vii ) Out to the insurance premium paid Rs.2,000 is for the next year .
The amount was debited to profit and loss account .
( viii ) The partners decide to fix the capital of the new firm as Rs.
1,20,000 in the profit sharing ratio .
( ix ) B to be paid Rs. 9,000 in cash and balance to be transferred to his
loan account .
Prepare the revaluation account and partners capital account of the
new firm after B's retirement . (8)
31. Strongman Ltd company was registered with an authorised capital of
Rs. 2,00,000 of Rs.10 per equity share . Out of these , 6,000 equity
shares issued as fully paid to the vendor for the purchase of building ,
8,000 equity shares were subscribed for by the public and during the
first year Rs.5 per equity share were called - up , payable as Rs.2 on
application , Rs.1 on allotment , Rs.1 on first call and Rs.1 on second call
. The amount received in respect of these shares were : On 6,000 equity
shares , the full amount has been paid ; on 1,250 shares , 4 per equity
share ; on 500 shares , Rs.3 per equity share and on 250 shares , Rs.2 per
equity share .
The directors forfeited 750 equity shares on which less than Rs.4 per
equity share had been paid . Show the journal entries in the books of the
company . (8)
OR
Sahni Tyres and Company Ltd issued applications for 1,00,000 equity
shares of Rs.10 each at a premium of 3 per share .
The amount was payable as follows
( i ) On application Rs.2
( ii ) On allotment Rs.5 ( including premium )
( iii ) Balance on the first and final call
Applications were received for 1,50,000 shares . Allotment was made on
pro - rata basis to all applicants . Amar , who had applied for 300 shares
failed to pay allotment and call money . His shares were forfeited after
first and final call . Of these , 170 shares were re - issued to Amit at Rs.9
per share fully paid . Pass the necessary journal entries to show the
above transactions . Show your working clearly . (8)