NOBLE GROUP OF INSTITUTIONS

JP Nagar, Opp. To Rajasekhar Hospital, Bangalore–78

CLASS: II PUC B SEC II PUC MID-TERM EXAMINATION NOVEMBER - 2023 SUB: ACCOUNTANCY
TIME: 3 HOURS ( as part of Noble initiative to save nature we attempt to reduce & reuse paper) TOTAL MARKS: 100

SECTION -A
I Choose the correct answer [5X1=5]
1. The agreement between partners must be to share
a. Profit b. Losses c. Profit and Losses d. None of the above
2. Profit and loss on revaluation is shared among partners in the
a. Old profit sharing ratio b. New profit sharing ratio c. Capital Ratio d. Equal ratio
3. The old profit sharing ratio among X,Y and Z were 2:2:1. The new profit sharing ratio after Y’s retirement is 3:2.
The gaining ratio is:
a. 3:2 b.2:1 c. 1:1 d. 2:2
4. Dissolution of partnership firm takes place when:
a. All partners terminate their connection with firm b. Majority of partners terminates their connection with firm
c. Two partners terminate their connection with firm d. None of the above
5. Maximum number of members in a private company is
a. 40 b. 400 c. 70 d. No Limit
II Fill in the blanks. [5X1=5]
[Reputation, Trading profit and loss A/C, Subscribed Capital, Assets and Liabilities, Fixed Capital]
6. Under ________method, the capital of partners shall remain fixed.
7. ________ is one of the final accounts of partnership firm.
8. ________ of the business is one factor affecting the value of goodwill.
9. Revaluation account is prepared to know the profit or loss on revaluation of ________
10. ________ is the part of the issued capital.
III Match the following: [5X1=5]
11.
a) Partnership deed i) Dissolution of partnership firm
b) Average Profit Method ii) Non payment of call money
c) Old age of a partner iii) Written agreement
d) Realization Account iv) Retirement of a partner
e) Forfeiture of share v) Valuation of goodwill
IV Answer the following question in ONE word or ONE sentences each [5X1=5]
12. When current accounts of partners are opened?
13. State any one right acquired by a newly admitted partner.
14. State any one purpose of calculating new profit sharing ratio .
15. Assets taken over by a partner at the time of dissolution of partnership firm is debited to realization account. [True/False]
16. What is buy back of shares?
PART-B
V Answer ALL questions, each question carries TWO marks: [5X2=10]
17. What is fluctuating capital method?
18. What is gain ratio?
19. Give journal entry for realization expenses paid by the firm.
20. What do you mean by zero coupon rate debentures ?
21. State any 2 contents of partnership deed.
PART-C
VI Answer any FOUR questions, each question carries SIX marks: [6x4=24]
22. Sudheer and Rajaram are partners in firm. Sudheer’s drawings for 2022-23 are given as under:
6,000 on 01-06-2022
4,000 on 30-09-2022
3,000 on 30-11-2022
5,000 on 01-02-2023
Calculate interest on Sudheer’s drawings at 12% p.a. for the year ending 31-03-2023under product method.
23.Vishnu and soma are partners sharing profits and losses in the ratio of ¾ and ¼. They admit Martha as a new partner.
The new profit sharing ratio of all partners are 5/12:2/12:5/12 respectively. Calculate sacrifice ratio of old partners.
24. Akash and Prakash are partners. They commenced their business with capitals of RS 2,00,000 and RS 1,60,000 respectively on
1-4-2016. They agreed to share profits and losses in the ratio of 2:1. For the year ending 31-3-2017 they earned a profit of
RS 43,000 before allowing
a) Interest on capital at 5% p.a.
b) Interest on drawings : Akash RS 3,000, Prakash RS 2,000
c) Annual salary to Akash RS 15,000.
d) Their drawings during the year
Akash -30,000 and Prakash – 20,000
Prepare Profit and loss A/C Appropriation account for the year ending 31-3-2017.
25. Giresh, Yogesh and Harish are partners in a firm sharing profit and losses in the ratio 4:3;2 respectively. Giresh retires from the
firm. Yogesh and Harish agreed to share the future profits in the ratio of 5:3. Calculate the gain ratio.
26. M,N and O are partners sharing profits and losses in the ratio of 4:3:2. N retires from business. His share is gained by M and O as
2/9 and 1/9. Calculate New profit sharing ratio of M and O.
PART-D
VII Answer all THREE questions, each question carries TWELVE marks: [12x3=36]
27. Uma and Geetha are partners sharing profits and losses in the ratio of 3:2 respectively. Their Balance Sheet as on 31-03-2022 was
as follows:
Balance Sheet as on 31-03-2022
LIABILITIES AMOUNT ASSETS AMOUNT
Creditors 50,000 Cash 15,000
Bills payable 15,000 Stock 30,000
General Reserve 25,000 Debtors 45,000
Capital: Uma 60,000 Investment 40,000
Geetha 40,000 Furniture 10,000
Building 50,000
TOTAL 1,90,000 TOTAL 1,90,000

On 1-4-2022 they admit Kamala intp partnership on the following terms;

a) Kamala should bring in RS 50,000 as capital for 1/6th share and RS 25,000 towards goodwill(as per AS-26)
b) Depreciate furniture by 10% and appreciate building by RS 10,000
c) Maintain P.D.D at 5%on debtors
d) Provide RS 2,000 for outstanding salary
Prepare ;
1) Revaluation account
2) Partners capital account
3) New balance sheet as on 1-4-2022.
28) Mohan and Manju are partners in a firm sharing profits and losses in the ratio of 3:2 respectively. Their balance sheet as on 31-3-
2022 was as under;
Balance Sheet as on 31-03-2022
LIABILITIES AMOUNT ASSETS AMOUNT
Creditors 30,000 Cash 10,000
Bills payable 10,000 Bills Receivable 8,000
Mohan’s loan 5,000 Debtors 30,000
Reserve fund 15,000 Stock 17,000
Capital : Furniture 10,000
Mohan 60,000 Machinery 25,000
Manju 40,000 Building 60,000
TOTAL 1,60,000 TOTAL 1,60,000
On the above date, the firm was dissolved;
a) The assets were realized as follows ;
Bill receivable - 6,500
Debtors - 25,000
Stock - 15,000
Machinery - 22,000
Building - 65,000
b) Furniture was taken over by manju at RS 9,000
c) All the liabilities were paid in full
d) Dissolution expense RS 2,000.
Prepare;
i) Realization account
ii) Partners Capital account
iii) Bank account.
29) Sudhi and seena are partners in a firm sharing profits and losses as 3:2. Their balance sheet of 31-3-2023 was as follows;
Balance Sheet as on 31-03-2023
LIABILITIES AMOUNT ASSETS AMOUNT
Bills loan 20,000 Cash 26,000
Creditors 15,000 Debtors 25,000
Reserve fund 15,000 Stock 30,000
Capital : Plant and Machinery 60,000
Sudhi 80,000 Furniture 15,000
Seena 40,000 Profit and loss 14,000
TOTAL 1,70,000 TOTAL 1,70,000
On the above date, the firm was dissolved;
a) Sudhi took over plant and machinery at agreed value of RS58,000
b) Stock and furniture were realized for RS 27,000 and RS 12,000 respectively.
c) Debtors were taken over by Seena at RS 23,000
 d) Liabilities were paid in full by the firm
e) Realization expenses were RS 500.
VIII Answer any 2 Practical oriented questions, each carries 5 marks. [2x5=10]
30) How do you treat the following in the absence of partnership deed
a)Profit sharing ratio
b)Interest on Capital
c)Interest on drawings
d)Interest on advances from partners
e)Remuneration of partners for firms work.
31) Prepare Profit and loss Appropriation A/C of a firm wth imaginary figures.
32) Write two partners capital account under fluctuating capital system with 5 imaginary figures.