SUBJECT- ACCOUNTANCY (055)

CLASS XII (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. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
5. Questions Nos. from 21 ,22 and 33 carries 4 marks each
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each
9. There is no overall choice. However, an internal choice has been provided.

PART A

Q1 Distinguish between Reconstitution of partnership and reconstitution of partnership firm.

(1)

Q2 Identify the account maintained by the firm in case of deceased partner , used by the firm for
making payment due (1)

(a) Current account of remaining partners (c)Deceased partner’s loan account

(b) Current account of deceased partner (d) executor’s loan account

Q3 A, B and C are partner sharing profits in the ratio of 1 : 2 : 3. On 1 -4-2023 they decided to
share the profits equally. On the date there was a credit balance of ₹ 1,20,000 in their Profit and
Loss Account and a balance of ₹ 1,80,000 in General Reserve Account. Instead of closing the
General Reserve Account and Profit and Loss Account, it is decided to record an adjustment
entry for the same. Give the necessary adjustment entry to give effect to the above
arrangement: (1)

(a) Dr. A by ₹50,000; Cr. B by ₹50,000

(b) Cr. A by ₹50,000; Dr. B by ₹50,000
(c) Dr. A by ₹50,000; Cr. C by ₹50,000
(d) Cr. A by ₹50,000; Dr. C by ₹50,000

Q4. A& B are partners sharing profits and losses in the ratio of7:3. C is admitted for 1/5 and for
which ₹30,000 and ₹10,000 are credited as a premium for goodwill to A and B respectively. The
new profit sharing ratio of A:B:C will be: (1)
a) 7:3:2
b) 12:8:5
c) 9:6:5
d) 11:5:4

Q5. Assertion: Loan from partner is not transferred to Realisation A/C .

Reason: Loan from a partner is not a outside liability It is repaid prior to repayment of capitals of
partners .
In the context of above two statements, which of the the following is correct.
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. (1)

Q6. A, B and C who were sharing profits and losses in the ratio of 4:3:2 On 1st April 2023,D is
admitted for equal share . An extract of their Balance Sheet as at 31st March 2023 is:
(1)

Liabilities Amount (Rs.) Assets Amount (Rs.)

Workmen Compensation 65,000 Deffered 15000
Reserve Advertisement
Expenditure

At the time of reconstitution, partners want to adjust workmen Compensation fund and
Deffered advertisement .Pass necessary entry/ entries to record the above adjustment.

Q7. Interest on Partner’s capital is credited to:

a) Partner’s Fixed capital account.
b) Partner’s Current account.
c) Partner’s Loan Account.
d) Partner’s Drawings Account. (1)

Q8. G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues towards
the firm including Capital balance, Accumulated profits and losses share, Revaluation Gain
amounted to ₹ 6,80,000. G was being paid ₹ 8,00,000 in full settlement. For giving that
additional amount of ₹ 1,20,000, T, was debited for ₹ 40,000. Determine goodwill of the firm.

a). ₹ 1,20,000
b). ₹80,000
c). ₹2,40,000
d). ₹ 3,60,000 (1)

OR

Annu, Banu and Chanu are partners, Chanu has been given a guarantee of minimum profit of
₹16,000 by the firm. Firm suffered a loss of ₹40,000 during the year. Capital account of Banu will
be ________ by₹_________.

a) Credited, ₹28000.
b) Debited, ₹28000.
c) Credited, 8000
d) Debited, ₹8000

Read the following hypothetical situation, answer question no. 9 and 10.

Q9. P, Q and R are partners in a firm sharing profits in the ratio of 3 : 3 : 2. From 1st April 2021,
they decided to share profits equally. On that date following balances appeared in their books: ₹
Workmen Compensation Reserve 72,000 Investment Fluctuation Reserve 30,000 ,Investments
(at cost) 6,00,000. Based on the above information you are required to answer the following
alternate questions: If a Claim on account of Workmen’s Compensation is estimated at ₹48,000,
then in respect of Workmen Compensation :
(A) Credit P, Q and R by ₹8,000 each
(B) Debit P, Q and R by ₹ 8,000 each
(C) Debit R by ₹2,000 and Credit P and Q by ₹ 1,000 each
(D) Credit P by ₹9,000, Q by ₹9,000 and R by ₹6,000 (1)

Q10. a)If investments are valued at ₹4,50,000, then in respect of investments :

(A) Debit P, Q and R by ₹50,000 each
(B) Debit P, Q and R by ₹40,000 each .
(C) Debit P by ₹45,000; Q by ₹45,000 and R by ₹30,000
(D) Debit P by ₹56,250; Q by ₹56,250 and R by 37,500
Or
b) If goodwill of the firm is valued at ₹2,40,000, then in respect of goodwill:
(A) Credit P by ₹90,000; Q by ₹90,000 and R by ₹60,000
(B) Credit P, Q and R by ₹80,000 each
(C) Debit R by ₹20,000 and Credit P and Q by ₹ 10,000 each
(D) Debit P and Q by ₹ 10,000 each and Credit R by ₹20,000 (1)

Q11. In the absence of an agreement, partners are entitled to:

i) Profit shared equally.

ii) Commission for making additional sale.
iii) Interest on Loan & Advances by them to the firm.
iv) Salary for working extra hours.
v) Interest on Capital @6% p.a (1)

Choose the correct option:

a) Only i), iv) and v).
b) Only ii) and iii).
c) Only iii).
d) Only i) and iii).

Q12. While transferring assets to realisation account--------- is omitted to be transferred.

a ) Patent

b ) Goodwill

c ) Cash

d) Investment (1)

Q13. X and Y are partners in a firm with capital of ₹1,80,000and ₹2,00,000. Z brings ₹1,00,000
for his share of goodwill and he is required to bring proportionate capital for ¼ share in profits.
The capital contribution of Z will be:
a) ₹2,40,000
b) ₹ 1,60,000
c) ₹1,50,000
d) ₹1,40,000 (1)

Q14. A and B are partners. B draws a fixed amount at the end of every quarter. Interest on
drawings is charged @7.5% p.a. At the end of the year interest on B’s drawings amounted to ₹
18,000 . Calculate the amount of Drawings of B . ( 1 )
 (1)
Q15 During the course of dissolution of partnership firm, fixed assets are debited to Realisation
Account at their:

a) Historical Cost
b) Book Value
c) Market value
d) Cost or Market price whichever is less. (1)

Q16. Creditors amounting to Rs. 60,000 were due on an average basis 2 months after 31st
December, 2023 during dissolution of firm but they were paid immediately on December 31
@12% discount p.a., the entry passed will be:
a) Dr. Realisation and Cr. Cash A/c Rs. 60,000
b) Dr. Cash and Cr. Ralisation A/c Rs. 58,800
c) Dr. Cash and Cr. Ralisation A/c Rs. 60,000
d) Dr. Realisation and Cr. Cash A/c Rs. 58,800 (1)

Q17. A and B are partners sharing profits & losses as 2: 1. C and D are admitted and profit
sharing ratio becomes 4:2:3: 1. Goodwill is valued at ₹2,00,000. D brings Required goodwill and
₹50,000 cash for Capital. C brings in ₹50,000 cash and ₹40,000 worth stock as his capital in
addition to the required amount of goodwill in cash. Show the necessary journal entries.
OR
A and B are partners sharing profits in the ratio of 3:2. They admit C into the partnership with
1/4th share in future profits. The new profit sharing ratio is 5:4:3. C brings into the business
₹50,000 for his capital but could not bring any amount for goodwill. The firm's goodwill on C's
admission was valued at ₹48,000. Pass journal entries. (3)

Q18. X ,Y and Z entered into partnership on I st october 2022 to share profits in the ratio of 4:3:3
. X personally guaranteed that Z’s share of profit after allowing interest on capital@ 10% p.a
.would not be less Rs 80,000 in a year.Capital contributed were X- 3,00,000 ,Y- Rs 2,00,000 and
Z- Rs 1,50,000. Profit for the year ended 31st March 2023 was Rs 1,60,000. Prepare Profit and
Loss Appropriation Account. (3)

Q19 A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. The firm closes its books
on 31st March every year. B died on 12-6-2021. On B's death the goodwill of the firm was valued
at ₹60,000. On B’s death his share in the profits of the firm till the time of his death was to be
calculated on the basis of previous year’s profit which was ₹ 1,50,000. Calculate B’s share in the
profit of the firm. Pass necessary journal entries for the treatment of goodwill and B's share of
profit at the time of his death . (3)

Q20 Akshra and Samiksha are in partnership. Business is being carried from the property owned
by Akshra on a monthly rent of ₹5,000. Akshra is entitled to a salary of ₹40,000 per quarter and
Samiksha is to get commission of 4% on net sales, which during the year was ₹50,00,000. Net
Profit for the year ended 31st March, 2022 before providing for rent was ₹6,00,000.You are
required to prepare Profit and Loss Appropriation Account for the year ended 31st March, 2022
(3)
Q21 A and B are partners sharing profits equally. They agree to admit C for equal share. For this
purpose goodwill is to be valued at 150% of the average annual profits of the last 5 year's
profits. Profits were: Year ended 31st March 2019 , 40,000 31st March 2020 ,60,000 31st March
2021 1,00,000 31st March 2022 20,000 loss 31st March 2023 1,50,000 It was observed that:
(1) During the year ended 31st March 2020, an asset of the original cost of ₹2,00,000 with book
value of ₹1,50,000 was sold for ₹1,24,000
(2) On 1st April, 2021, 2 Computer's costing ₹1,00,000 were purchased and were wrongly
debited to Travelling Expenses. Depreciation on Computers was to be charged @ 20% p.a. on
written down value basis. Calculate the value of goodwill (4)

Q22 Rohit, Raman and Raina are partners in a firm. Their capital accounts on 1st April, 2019,
stood at ₹2,00,000, ₹1,20,000 and ₹1,60,000 respectively. Each partner withdrew ₹15,000
during the financial year 2019-20. As per the provisions of their partnership deed: (a) Interest on
capital was to be allowed @5% per annum. (b) Interest on drawings was to be charged @4% per
annum. (c) Profits and losses were to be shared in the ratio 5:4:1. The net profit of ₹72,000 for
the year ended 31st March 2020, was divided equally amongst the partners without providing
for the terms of the deed. You are required to pass a single adjustment entry to rectify the error
(show workings clearly). (4)

Q23. Naveen, Kavita and Vishesh were partners in a firm sharing profits and losses in the ratio of
5 : 4 : 1. Their Balance Sheet as at 31 st March, 2019 was as follows :

BALANCE SHEET OF NAVEEN, KAVITA AND VISHESH

as of 31st March, 2019
Liabilities Rs. Assets Rs.
Capitals:
Naveen 3,00,000 Plant and Machinery 5,50,000
Kavita 2,00,000 Stock 1,20,000
Vishesh 1,00,000 Debtors 1,30,000
Profit for the year 2018-19 1,50,000 Advertisement Expense 20,000
Sundry Creditor 1,10,000 Cash 40,000
8,60,000 8,60,000

Naveen died on 30th June, 2019. According to the partnership deed, in addition to the deceased
partner’s capital, the executors are entitled to :
(i) His share in profits till the date of death on the basis of average profits of the last
two years. The profit for the year 2017-18 was ₹ 50,000.
(ii) His share in the goodwill of the firm. Goodwill was to be calculated on the basis of
two years’ purchase of the average profits of the last two years. Naveen withdrew
₹60,000 on 1st June, 2019

Prepare Naveen’s Capital Account which is to be rendered to his executor (6)

Q24 Charu and Harsha were partners in a firm sharing profits in the ratio 3:2. On 1-4-2014
their balance sheet was as follows:

Liabilities Rs. Assets Rs.

Creditors 17,000 Cash 6,000
General reserve 4,000 Debtors 15,000
 Workmen compensation fund 9,000 Investments 20,000
Investment fluctuation fund 11,000 Plant 14,000
Provision for bad debts 2,000 Land and building 38,000
Capitals: 50,000
Charu 30,000
Harsha 20,000
93,000 93,000

On the above date Vaishali was admitted for 1/4th share in the profits of the firm on
the following terms:
(a) Vaishali will bring ₹20,000 for her capital and ₹4,000 for her share of
goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was ₹15,000.
(d) There was a liability of ₹6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's
capital by opening current accounts.
Prepare Revaluation Account and Partners' Capital Accounts. (6)
OR
Ram,Shyam and Mohan were in partnership sharing profit and losses in the ratio of 3:2:1. On 1st
April 2022 Shyam retires from the firm. On that date there balance sheet was as follows:

Liabilities Rs. Assets Rs.

Trade Creditors 30,000 Cash in hand 90,000
Bills Payable 27,000 Debtors 1,60,000
Expenses owing 45,000 Less: provision 10,000 1,50,000
Reserve fund 1,05,000 Stock 1,20,000
Workmen’s compensation Factory premises 2,25,000
Reserve 48,000 Investments 80,000
Capitals 4,50,000 Loose tools 40,000
Ram 2,00,000
Shyam 1,50,000
Mohan 1,00,000
7,05,000 7,05,000

(1) Goodwill of the firm to be valued at 2 times of Average Super Profits of last three
years. Taking into consideration the risk of the business, normal profits
of the firm are estimated at ₹5,00,000 every year. But actual profits of last three years
ending 31st March were as 2020: ₹6,00,000, 2021: ₹5,50,000, 2022: ₹5,75,000.
(2) Expenses owing to be brought down to ₹37,500.
(3) Investments are revalued at ₹72,000. Ram took over investments at this value.
(4) Factory premises is to be revalued at ₹2,43,000; and Loose tools at ₹36,000.
(5) Provision for Doubtful Debts to be increased by ₹19,500.
 (6) Claim on account of Workmen's Compensation is ₹18,000.
(7) Shyam be paid ₹50,000 in cash and balance due to him treated as a loan carrying
interest @ 6% per annum.
Prepare Revaluation Account and Partners' Capital Accounts.

Q25. Simar, Raja and Rita were partners in a firm sharing profits and losses in the
ratio of 2 : 2 : 1. The firm was dissolved on 31st March, 2024. After the transfer
of assets (other than cash) and external liabilities to the Realisation Account, the
following transactions took place :
(i) A debtor whose debt of ₹90,000 had been written off as bad, paid ₹88,000 in full
settlement.
(ii) Creditors to whom ₹ 1,21,000 were due to be paid, accepted stock at ₹71,000 and
the balance was paid to them by a cheque.
(iii) Raja had given a loan to the firm of ₹ 18,000. He was paid ₹17,000 in full
settlement of his loan.
(iv) Investments were ₹53,000 out of which investments worth ₹43,000 were taken over
by Simar at ₹52,000 and the balance of the investments were sold for ₹ 12,000.
(v) Expenses on dissolution amounted to ₹ 19,000 and the same were paid by the firm.
(vi) Profit on dissolution amounted to ₹30,000.
Pass the necessary journal entries for the above transactions in the books of the firm (6)

Q26. X,Y and Z were partners in a firm sharing profit & losses in the ratio of 5:3:2 . On 31st
March 2023, their Balance Sheet was as follows:

Liabilities Rs. Assets Rs.

Creditors 40,000 Cash at Bank 40,000
Bills Payable 10000 Sundry Debtors 1,00,000
Profit and loss A/C 85,000 Stock 80,000

Capital A/cs: 1,35,000 Fixed Assets 60,000

X 40,000
Y 62,000
Z 33,000
2,80,000 2,80,000

On 31st March 2023 , X retired from the firm and remaining partners decided to carry on
business. It was decided to revalue assets and liabilities as under :
a) Fixed Assets are to be reducedto Rs 57500
b) Goodwill of the firm is valued at Rs 80,000
c) Provision for doubtful debts was to be made at5% on debtors.
d) A liability for claim, included in creditors for Rs 10,000, is settled and paid at Rs 8,000.
X and Z decided to share future profits and losses in the ratio of 2:3.
f) The amount to be paid to X is contributed By Y andZ in such a way that their capitals are
proportionate to their Profit sharing ratio and leave a balance of Rs 15,000in the Bank Account.

Prepare Profit and Loss Adjustment Account Partner’s Capital accounts and of firm after X’s
retirement. (6)
 PART- B

Q27. Assertion (A) .Forfeited shares may be reissued by the company at discount also.

Reason ( R ) :- Amount of discount on reissue of forfeited shares cannot exceed the amount
forfeited on the reissued shares.

(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct explanation
of Assertion (A)
(c) Assertion (A) is incorrect, but Reason (R) is Correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect (1)

Q28. A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1
premium) has been paid. Out of these few shares were re-issued at a discount of ₹2 per share
were and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued?

a) 3,000 shares
b) 1,000 shares
c) 2,000 shares
d) 1,500 shares (1)

Q29. Money not due but received from Shareholder on application/allotment is

a) Debited to calls in advance

b) Credited to calls in advance
c) Debited to calls in arrears
d) Credited to calls in arrears (1)

Q30. A company invited applications for 12000 shares of Rs. 10 each payable Rs. 3 on
application, Rs. 5 on allotment and balance on calls. Public had applied for certain number of
shares and application money was received. Which of the following application money, if
received restricts the company to proceed with allotment of shares as per SEBI guidelines:

a) Rs. 36,000
b) Rs. 45,000
c) Rs. 30,000
d) Rs. 32,500 (1)

Q31. A Ltd. forfeited 600 shares of ₹100 each issued at25 % premium (which was payable with
money application)on which a shareholder did not pay ₹30 on allotment and first call of Rs 30
and final call of ₹30 is not yet called. Out of these 400 shares were reissued to Ram at a discount
of Rs 5 per share ,credited as Rs 70 paid up.
Journalise in the books of A ltd. (3)

Q32. Alfa ltd company took over running business of XYZ Limited, which had assets of Rs. 45
Lakhs and liabilities of Rs. 6,40,000 for a paid up capital of Rs. 46 Lakhs. Amount was settled by
bank draft of Rs. 1,50,000 and balance by issuing 12% preference shares of Rs. 100 each at 25%
Premium. Pass journal entries in the books of Alfa ltd
(3)

Q33. A company forfeited 2000 shares of Rs. 10 each (issued at Rs.2 premium) for non-payment
of first call of Rs. 2 per share and final call of Rs. 3 per share was not yet made. Out of these,
1500 shares were reissued at Rs. 11 per share as fully paid up. (4)

Q34. X Ltd. issued 1,60,000 shares of Rs. 10 each at 30% premium. Amount was payable as
follows:
On application—Rs. 6 (including premium of Rs 1)
On allotment--- Rs. 3 (including premium of Rs 1)
On first call and final call – Balance
Applications were received for 1,80,000 shares and application for 20000 shares were
rejected.All money was received except :,
(i) Amit, holding 1,000 shares failed to pay allotment money and his shares were forfeited
after allotment.
(ii) Dheeraj, holding 800 shares failed to pay first call money and his shares were forfeited
after first call.
1500 of the forfeited shares were reissued @ Rs. 12 per share as fully paid up which includes all
shares of Amit
Pass the necessary journal entries in the books of X Ltd. (6)