RYAN GROUP OF SCHOOLS • ~,~

~;.,.

IT] ACADEMIC YEAR 2023.24

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RYAN
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SETA IC-SE, FI~ST TERM
. EXAMINATION
. .

STD: XII ·MARKS: 80

SUB: • ACCOUNTS DURATION: 3IIRS

Tfze Q~est~on Paper contains two sections.

Section A is compulsory for all candida.tes.
. .

There are i~ternal choic~s proyideq in each section.

. .
Candidates have- to att(!mpt all questions from Section B._
Tlie intended marksior questions or parts ofquestio~
are givf!;,:t in the brackets []. All calculatio~ should be shown clearly.
~

All working, including r~ugh work, should he done on

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.. the same page as, and adjacenr to; the rest ofthe answer

SECTION ·A [60 MARKS]

Question· 1. [1]
: 1. What is-meant by Partnership deed?
·',

Question 2. {I]·
1. Find odd man out
a. Interest on· Capital
b. Capital of Partners ~

c. Partners salary
. d. Interest on drawings

) • '
Question 3. · [ 1]
'
1. Interest on Capital is recorded on _ _ _ _ _ side of Partners Capital Ale.

Question 4. . ·[ 1]
1. State the one effect of the provision of Accounting Standard-26 as issued by
the Institute of Chartered Accountants of India.

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 SETA ACCOUNTS
STD: XII RICSE -2-
•.
[1]
Question S.
1. Explain Goodwill.

[.l]
Question 6.
. .
f: Give the fo~ula for calculatiQ~ of goodwill by 'Capitalisation of Average
- Profit Method.,. •

Question 7. [1]
' . •

1. Can new partners be· admitted to business without consent of-all old partners?
'

...
Question 8. [1]
. .
• 1. Give formula of sacrific~ng and g~g ratio.

Question 9. . [1]
1. How is the amount due.to a deceased partner dealt--witp~in-case it is not paid
immediately?
4

Question 10. - ' [3]

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1. P, Q, Rare p~ers sharing profits and losses equally. As per partnership dee~
R. is entitled to commission of 10% on the net profit after charging such
commission. The net ·profit ·before charging such com1!1i~siQn is 3,00,000.
Determine the amount of cpmmission payable to R.
- OR.
•
2. Int~re~t on a partner's capital is recorded-through profit and loss appropriation
. account instead of profit & loss account. Wh~? Pass journal entry to record .
Inter~st on partner's capital.

Question 11. l3]..

i. If the retiring partner is not paid the full amount due to him immediately on
retirement, how should hi~ capital account be shown in_the.subsequent
balance sheet?
 •
r

STD: XII RICSE ·-3- SETA ACCOUNTS

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Question 12. ·[3]

I. Explain Average profits and Super Profits methods of goodwill an<;i state its
formula to calculate goodwill.
OR •

2 . . Mention any two features of Goodwill. •.What is meant by Cap1talisation of

Average Profits and CapiWisation of super p~ofits? -

Question 13. [}]

•
1. A and B ~ in partnership sharing profits and losses as 3 : 1. They
. .

admit D into the firm, D pays pre~ium of. ~.30,000 for 113rd share of the
and ·_
.
profits. As between themselve~, A and B agree. to share future profits
. .

losses equally. Draft Jotirnal entries showing appropriations.of the premium

money.

Question· 14. · [6]

I. Divya and Pooja are partners in a firm, sharing profits and lossesjn the ratio
of 3 :2. On 31st March, 2015, their Balance Sheet .was_ as under:
Balance-Sheet ofDivya and Pooja
,,.
•·as at 31st March, 2015 '

Liabilities ,.
Amount
•
Assets
Amount
t.

S~chy Creditors 9,,800 Goodwill I 16,000

I .
General Reserve 23,400 Land and Building I 20,000
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Profit and Lo~ Ale 4,000 Investments , - 66,000
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Investment Fluctuation Fund ·12,600 Sundry Debtors 18,600
. .I
Capital Ale • Bills Receivables •I
7,400

Divya 60,000 -Cash in. Hand ~

I ·11,100

Pooja 40,000 1,00,000 Advertisement Suspense Ale I 10,700

1,49,8~ I I 1,49,800
 ACCOUNTS
sr-ro: XII RICSE -4- SET A
I

, they would
They decided to add Vanshika with effect from 1st April, 2022
share profits and losses equally. For this purpose, they decided that:• ..
a. Investments to be valued at ,.60, 000. •
b. Goodwill to be yalued at , .24,000.
c. General Reserve not to be distributed between the partners.
You are required to :
(i) Prepare reval_uation account.
(ii) Prepare partners capital account.
'I

[6]
Question 15.
'
~ their fixed
1~ Sohan and Moh an are partners in a firm. On 1st April, 2021
showed a balance of ~.'3,00,000 and ,.s,0 0,00 0 respectively.
capital accounts·
.
.
'
,.90, 000.
On thi~ date, their ctirr.ent account balances were ,.40, 000 an~
respectively.
~.2,00,000 •
On 1$t Janu ary, 2022 , Sohan intrpduced additional capital of
I
•
•
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whil e Moh an gave a lo~ t?f,.1,50,000 to the fmn. •

The claus es of their partnership deed provided for:
m.
a~ Inter est on capit al to be allowed at the rate of 10% per annu
.
.
b: Inter est pn draw ings to be c~arged at the rate of 10% per annu m.

c'! Prof its to be ~hared· by them

. .
in the ratio of 3 :2. ·
ral Rese rve.
d. 10% of the corre ct net profi t to be transferred to the Ge~e
•
• I•

00 e~h at
During th~ ·financial year 202i ·- 22, both partners_ withdrew ~-~,0
me begi nnin g of ever y mon th. •
I
The net'profit of the firm, before any µiterest, for the finan cial year 2021-22
was ,_s,00,000. •
• I

.You are required to prepare for the year 2021 - 22 :

• (i) Profit and Loss Appropriatioµ Account.
(ii) Partners Fixed Capital Accounts.
OR
 \11
• ,I

"ACCOUNTS
-5- ·SE TA
STD: XII RICSE
ing profits and loss es in the
2. Karan, Ali and Deb are partners in a firm shar
anc e She et was as und er
ratio of 3 : 2 : 1. On 31 st March, 2016, thei r Bal

Bal anc e She et of Kar an, Ali and Deb

,
•as at 31st Ma rch , 201 6 , . .
. '
Ass ets Am oun tf.
Liabilities Am oun t". '

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Capital Ale • -
- 1,00,000
: , 1,00,000 . ... ~ !-
)
'
Building- ,.

Karan. 1 1 .'
- 40,0 00
Ali •.
. .
75,000 2,25,000 Furniture .•• • l
.. -
~

" - .•. • 50,0 00

. 50,000
.
• Investments f
- .
Deb '

30,000 Debtors 30,0 00

Inve'stment Flu~tuation Fun d '

Bills Payable
. 10,000 Less: Pro visi,... on for . .

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(10 00) • 29,000·
Creditors 15,000 Doubtful Deb ts ; - ,._

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I
· 43;0 00
Cas h at Ban k
..
j: ' '
~, I ·, Goodwill 18,0 00
'•, I ',

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2,so ,00- ,
' • ~ -l
2',80,000'

amoti:gst Ali, D~b

·Ka tan di~d ~n 1st A:pril,_ 2016: An- agre eme nt was reach~d .
. . ~

and Kar an' s lega l representatives that :

•a. Bui ldin g be reva lued at f .93,'500.

b. Furniture be appreciated by f.10 ,000 . . .

Deb ts sinc e all .debtors wer e goo d.

·, . c. To writ~ off the fro visi on for Doul;>tful
• I
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d .. Inve stm ents be valu ed·t.38,000.

\

, \

0.
e. ·Goodwill of the firm be valu ed at f.l,2 0,00 11
\

th, to be calc ulat ed on the

f.-K aran 's share o_fprofit:tothe date of his dea \
~-25,000. .
• • basi s of previous yea r's pro fit whi ch was \

cap ital @ 6% per ~u ni.

g. Inte rest on capital to be allo wed on Karim's
e to be tran sfer red to his
h. Am oun t payable to Kar an's legal represe~tativ
legal repr esen tativ e's loan account.

• You are required to :

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 ACCOUNTS
STD:·XII RICSE -6- ,, . SET A
..
(i) Pass Journal entries on the date ofKaran's .Jeath.
t ,·\-
#
• •

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-: [~]
Question 16. • ·
1. A business h8S earned average profits of2,00,000 during the last few ye3.I'S
and the normal rate of return in similar business is 20%. F.ind out the value
. · of goodwill by . . .
.'
a. Capitalization .of super profit n;iethod and . •:.
.
/
. . .

b. Super profit method if the goodwill is.valued at 3 y~~ purchase of super

... profit.
. . .

The assets of the business were 20,00,000 and its liabilities· 3,60,000.

- [10] _
Question 17.
·_ . 1. Premila, Sakuntala.andKalyani were•inpartnership sharingprofits_in ' ~l

ce .Sheet as at' 31 ~ March, 2021 was: -

•
• 1
I

propo rtion to their

I
capitals. Their Balan
.. . . .
. . .
'

Amount r Am()unt
Liabilities
I
Assets .
(f.) I (f.) ..
. ,~

. 15,000 I Cash· 15,400

c:reditors • ,, ::1
-
. .
7
. 11
•. • Debtors .20,00Q
General Reset
. '
ve 6,000· I (-) i>DD 400 19;600
t 1'' - I --7---1

Premila's apital 90,000 I Stock-· 18,00

..
0
-
Sakun1o/fa's Capital ,60,0~0 Machinery 48,000
- -

Kalyafi•s (::apital. 30,000 ;Building 1,00,000

·T 2,01,000 2,01,000

d
'On }1stApril, 202 l, Sakuntala retired and the fo,llowing adjustment were agree
upon :• ~- •· • · · / •• -
)

I
I a. Building be appreciated by l0%.
b. Provision for D~ubtful Debts,\be increased to 5% of debtors.
·I •
/

I
/ c. Machinery be depreciated by!I 15%.
/
 STD: XII RICSE -7- .SETA ACCOUNTS
.
d. Goodwill of the fmn be valued at t.36,000 and be adjusted into the·
Capital Accounts·of Premila ~d Kalyatµ ~ho will sh~e profits in future
,,. in the ratio of 3 : I . I
-, '

e. P!ovision·be·~ade for outstand~g repairs bill fo~ t.3,000.

f. Included inthe·value of Creditors is t.l,800 for an outstanding legaf·
claim, which is ~ot likely to arise.
. . .
g. Out of the in~,·-ance premium paid t.2,000 is for the next year. The •
. .
amount-was debited to Profit and Loss Account.
I ~ • • • # •

•~-. The Partners decide to fJJC capital of the new firm at t .1,20,000 to be in
the Profit-sharink ratio. • - . •. . . • ' . .
. •
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I •
& •
.
• •

• i. Shakuntalato·b e paid f·.9,000·.in cash and the balance to be transferre~ to

. · his Loan AcM. .. •. : .- • '. • .. - . _ _ •_
·p~epare Revalnation,Ac~?unt, Partners -C~pital Accounts and Balanc~ Sheet·
.r of.the new .fum·a.fteI B's.retirement..

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Q·uestion 18. I..;_

[10]
-1 • 1. Akbar, B~bal _and. SaJlim are-partners ~haring profits and loss~s in th~ ratio of
'1
_,.,,
•·, 2:3:S~ On 31~arch, 2017, their Balance Sheet was as follows:
,J
.

.. I . _·· - ~-:..,.J;.:n•ti Amount As ts . . Amount ...

• _ - ~ 1 es (~) se
vj·'l ' ~- .. (?.) •
'·,,i
\~.
:
, -
.·,
/ l'•(
( Creditors . ,, •:rt• t i 64,000 Cash • 18,000 -
I Bllh1)i1Yabte· •• -. . • , ·- 40,000 _Debtors • 50,000
, , 1 •. . 1 . ,
.:j . , ,

'ij Akbars'11Capital:·n1 . , . -36,000 Stock • 44,000

11 • .,. I
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Birba.l's Capibu 44,000 M~chinery • 34,000
' ..
· Salim's Capilal.· • 52,000 ·Furniture 28,000
. .
'
Profit& Lo&,;.A/c 14,000 'BHls Receivable ~4,000
' '

.· .~ Investment , 32,000

Goodwill 20,000

I 2,so,000- _. . 2,so,000
 ~

RICSE ·-8- SETA ACCOUNTS

STD:XII
,

They Admit.Dhruvinto Partnership on ~e following tem1:s:

a. -Furniture, Investment and Machinery to be ·depreciated-by· 15%.
r

b. Stock is revalued at t.48,000.

• -
.c. Outstanding R~nt amounted to t.1,800 .
. d. Prepaid Salari~ t.80Q. • •
e. Dhruv brings t.32,000 as his capital and ,.6,Q00 for Goodwill,.i~ c~h for
. I/6th share of the fu~e profits of the flllll. ,,
'.

·f. Adjustment-of.Capitals to be made through Cash.

,

g. Capitals of the partners shall be p.roportio~ie to'their profit-sharing ra~io,

•. taking Dhru~' s: Capital as base. : • _
. . ... . .,...

:Prepare Revaluation Account, Partners -Capital Accounts, Cash A_ccount and

Balance Sheet of the new firm.

· SECTION B (20 MARKS]

Question _19. [1] .

. ·). \YJtlch item is assumed to be 100 while preparing a common .size Statement
of balance sheet?
I ,
I
Q~estion 7'0. [1]
1.. What is meant by a comparative statement analysis?

·Question it. [1]

1. Give two examples of Tangible ~ssets.

Question 22.· [l]

)
1. Name any two tools of analysis of fin~cial statements.

[l]
. .
Question 23
1. Give one limitation of common size and comparative statement analysis.
 ACC OU NTS
-9- - SET A
· STD: XII RICSE

(3]
Question 24.
-
nt analysis?
1. What is the objective of comparative stateme
.

, - ~
Qu ~& nli .
loss of Vl( Lim ited for the yea rs
.

1. From· the following statemen~ of prof it and

Commort·Size statement of
ended 31s t Mar ch 2019 and 2q20. Prepare a
profit and loss. .
'

.. 31 'Ma tch, 201 9

5 31 1 ~ar ch, 202 0
' Particular· .
.

15,00,000. 20,0 0,00 0

Rev enu e from Ope ratio n . :_. '•
-
- ,.. ., J,00 ,000 -4,00,000-
Oth er Inco me . ·
• I

- ..
: 16,0 0,00 0
_Expenses • ·•• . . ''
'
12,00,000
'
..
✓.- 50%. 50%
Tax Rat e ' '

, [6]
Question 26.
. .
ana lysi s of profit and Los s :-- •·
1,. Fro m·th e foll owi ng Dat a, prep are a Com para tive
1

-of Pitambat Ltd :

'.

. . ' ' • I l

'
3t8iMarch, . 311 ~ar ch,
•
Particular '
2016 .• 2015
/ ' .'
I

200% .• 200%
Revenue froi;n Operation (% of other inc_ome)
...
3,00,000 2,50,000
Other Income . : • , '

, '

Cost of Material .Consum~d (% o.f Operating

'
50% 40%
Revenue) l
-
10% 20%
Other Expenses(%. ofMate~al Cost) ..

30% 30%
Tax Rate I

•••••
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