CLASS 12 ACCOUNTANCY

SAMPLE QUESTION PAPER-3

MM: 80 DUR: 3 HOURS
General Instructions:
1. This question paper comprises of two Parts – A and B. There are 34 questions in the question paper. All
questions are compulsory.
2. Question nos. 1 to 16 and 27 to 30 are very short answer type questions carrying 1 mark each.
3. Question nos. 17 to 20 and 31 to 32 are short answer type–I questions carrying 3 marks each.
4. Question nos. 21 to 22 and 33 are short answer type–II questions carrying 4 marks each.
5. Question nos. 23 to 26 and 34 are long answer type questions carrying 6 marks each.
6. There is no overall choice. However, an internal choice has been provided in questions.
Part- A (Accounting for Partnership firms and Companies)
Q.1 P/L Appropriation Account includes the transactions where - 1
a. Only Partnership Firm and Partners are involved
b. Only Partnership Firm and costumers are involved
c. Only Partners and customers are involved
d. No such restrictions
Q.2 A newly admitted partner acquires in the firm - 1
a. Right to share the assets of the partnership firm
b. Right to share the profits of the partnership firm
c. Both a) and b)
d. Neither a) nor b)
Q. 3 “Issued Capital” can be – 1
a. More than Authorized Capital b) Less than Authorized Capital
c. Depends on market conditions d) Can be any amount
OR
Which of the following cannot be used by a company to write off its capital losses?
(a) Securities Premium Reserve (b) Balance i.e. Surplus in Statement of Profit & Loss
(c) Capital Reserve (d) Reserve Capital
Q. 4 Tina and Simi were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their 1
capitals were Rs. 2,40,000 and Rs. 4,80,000, respectively. They were entitled to interest on
capitals @ 10% p.a. The firm earned a profit of Rs. 36,000 during the year. The interest on
Tina’s capital will be :
a) Rs.24,000 b) Rs.21,600 c) Rs.14,400 d) Rs. 12,000
Q. 5 At the time of dissolution of a partnership firm, one creditor of ₹ 1,40,000 accepted Building valued 1
at ₹ 1,80,000 and paid to the firm ₹ 40,000, journal entry will be –
a) Bank A/c Dr. 40,00
To Building A/c 0 40,000
b) Creditors A/c 40,00
Dr. 0 40,000
To Bank A/c
c) Realisation A/c Dr. 40,00
To Bank A/c 0 40,000
d) Bank A/c Dr. 40,00
To Realisation A/c 0 40,000

Q. 6 Abhay Ltd. forfeited 1000 equity shares of ₹ 10 each for the non-payment of allotment of ₹ 3 per 1
share and first & final call of ₹ 5 per share. What is the maximum discount at which these shares
can be reissued?
a. ₹ 2 per share b)₹ 3 per share c)₹ 5 per share d)There is no such limit
Q. 7 In the absence of partnership deed, partners are entitled to: 1
a) Salary b) Interest on loan & advances
c) Commission d) Profit share in capital ratio
OR
Sumit, a partner in a firm withdrew ₹ 5,000 in the beginning of each quarter. For how many months
interest on drawings be charged?
(A) 12 months (B) 7 ½ months (C) 3 months (D) 6 months
Q. 8 Following is the extract of from Balance of Rajat and Raman, who are sharing profits in the ratio of 1
2:1
LIABILITIES ASSETS
Stock 22000
How it will be recorded in Revaluation Account, if the stock is found overvalued by 10%
a)Credited by ₹ 2,000 b) Debited by ₹ 2,000 c)Credited by ₹ 2,200 d) Debited by ₹ 2,200
Q. 9 For which of the following situations, Sacrificing/Gaining Ratio will be used for at the time of 1
admission of new partner
a. While distributing profit/loss at the time of revaluation
b. While distributing accumulated profits/losses
c. While writing off existing goodwill and deferred revenue expenses
d. While adjusting the goodwill brought upon by the new partner.
Q. The profits for the last years are Rs. 60,000; Rs. 40,000 and Rs. 66,500. The total assets of the 1
10 firm are Rs. 10,00,000 and outside liabilities are Rs. 5,42,500. The rate of interest expected
from capital invested is 10%. The value of goodwill on capitalisation basis is :
a) Rs. 97,000 b) Rs. 97,250 c) Rs. 97,500 d) Rs. 97,750
Q. A and B are partners sharing profits in the ratio 5:3. C admitted as a new partner. They decided to 1
11 share future profits in the ratio 2:3:5. What will be the accounting treatment of Workmen
compensation Reserve appearing in balance sheet on that date when no other information is
available.
a. Distributed among partners in capital ratio
b. Distributed among old partners in old ratio
c. Distributed among new partners in new ratio
d. Carried forward to new balance sheet
OR
X and Y Are partners sharing profits in the ratio of 3: 2. Z admitted as a new partner. They decided
 to share future profits in the ratio 2:1:1. Thus, X's sacrifice/gain will be
(a) 4/12 gain (b) 3/12 gain (c) sacrifice 1/12 (d) 1/10 sacrifice
Q. On the death of a partner, his share in the profits of the firm till the date of his death is transferred to 1
12 the :
(a)Debit of Profit & Loss Account (b) Credit of Profit & Loss Account
(c)Debit of Profit & Loss Suspense Account (d)Credit of Profit & Loss Suspense Account
OR
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
₹5,80,000. G was being paid ₹ 7,00,000 in full settlement. For giving that additional amount of
₹1,20,000, S 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
Q. Akash Ltd. acquired assets of Rs. 20 lakh and took over creditors of Rs. 2 lakh from Kapila 1
13 Enterprises. Akash Ltd., issued debentures of Rs. 100 each at par as purchase consideration. What
will be the amount of purchase consideration?
a. Rs. 20,00,000 b) Rs. 2,00,000 c) Rs. 18,00,000 d) Rs. 10,00,000
OR
R Ltd. issued 8,000, 5% Debentures of Rs.1,000 each at certain rate of discount and were to
be redeemed at 20% premium. Existing balance of Securities Premium before issuing of these
debentures was Rs.25,00,000 and after writing off Loss on issue of Debentures, the balance in
Securities Premium was Rs.5,00,000. At what rate of discount, these debentures were issued?
(a) 10% (b) 5% (c) 25% (d) 15%
Q. In case of admission of a partner, new partner compensates the existing partners. Old partner also 1
14 compensates when:
(A) There is loss in the firm (B) He is a Sacrificing partner
(C) He is a Gaining Partner (D) His Sacrificing/Gain share is Nil
Q. Reserve Capital is not a part of: 1
15 (a) Authorized Capital (b) Subscribed capital (c) Unsubscribed capital (d) Issued Share Capital
Q. Assertion (A):- A Company is Registered with an authorised Capital of 5,00,000 Equity Shares of 1
16 ₹10 each of which 2,00,000 Equity shares were issued and subscribed. All the money had been
called up except ₹2 per share which was declared as ‘Reserve Capital’. The Share Capital reflected
in balance sheet as ‘Subscribed and Fully paid up’ will be Zero.
Reason ( R ) :- Reserve Capital can be called up only at the time of winding up of the company.
(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
Q. Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of 3
17 ₹10,00,000 and liabilities of ₹ 1,70,000 by:
a) Issuing 8,000 8% Debentures of ₹ 100 each at 5% premium redeemable after 6 years @ ₹ 110;
and
b) Cheque for ₹ 50,000.
Pass the Journal entries in the books of Pioneer Fitness Ltd.

OR
Nidiya limited was incorporated on 1stApril 2017 with registered office in Mumbai. The capital
clause of memorandum of Association reflected a registered capital of 8,00,000 equity shares of
Rs.10 each and 1,00,000 preference shares of Rs.50 each.
 Since some large investments were required for building and machinery the company in
consultation with vendors,Ms.VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference
shares at par to them in full consideration of assets acquired. Besides this the company issued
2,00,000 equity shares for cash at par payable as Rs 3 on application, 2 on allotment, 3 on first call
and 2 on second call.

Till date second call has not yet been made and all the shareholders have paid except Mr. Ajay who
did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay first call on his
200 shares. Shares of Mr. Ajay were then forfeited and out of them 100 shares were reissued at
Rs.12 per share.
Based on above information you are required to answer the following questions.
I) Shares issue to vendors of building and machinery, Ms. VPS Enterprises, would be classified as:
a. Preferential Allotment b. Employee Stock Option Plan
c. Issue for Consideration other than cash d. Right Issue of Shares
II) How many equity shares of the company have been subscribed?
a. 3,00,000 b. 2,99,500 c. 2,99,800 d. None of these
III) What is the amount of security premium reflected in the balance sheet at the end of the year?
a. ₹200 b. ₹600 c. ₹400 d. ₹ 1,000
Q. Abhijeet, Bandhu and Charan are in partnership for sharing profits in the ratio of 5:3:2. There fixed 3
18 capitals as on 31 March 2020 were ₹ 2,00,000, ₹ 2,00,000 and ₹ 1,00,000 respectively while their
st

drawings were ₹ 10,000 each. After distribution of annual profits of ₹ 90,000 it was discovered that
Interest on Capital was credited to all partners @ 12% p.a. in place of 10% p.a. and interest on
drawings @ 10% p.a. was omitted in respect of Bandhu. Pass single adjustment entry to rectify the
errors and show workings clearly.
OR
Manu, Bhanu and Kanu are partners sharing profits in the ratio of 6:4:1. Kanu is guaranteed a
minimum profit of ₹ 2,00,000. The firm incurred a loss of ₹ 22,00,000 for the year ended 31st
March,2023. Pass necessary journal entry regarding deficiency borne by Manu and Bhanu and
prepare Profit and Loss Appropriation Account.

Q. Anu and Manu were partners in a firm sharing profits in the ratio of 3:1. Goodwill appeared in the 3
19 books at ₹ 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu,
Bhagwan and Raja was 2:2:1. Raja brought ₹ 1,00,000 for his capital and necessary cash for his
goodwill premium. The goodwill of the firm was valued at ₹ 2,50,000. Record the necessary
journal entries in the books of the firm for the above transactions.
Q. P, Q and R were partners in a firm. Q died on 31st December,2019. Q’s share of profit from the 3
20 closure of the last accounting year till the date of death was to be calculated on the basis of the
average of three completed years of profits before death. Profits for the year ending 31st March
2017, 2018 and 2019 were Rs.92,000; Rs.1,50,000 and Rs.2,44,000 respectively. The firm
closes its books on 31st March every year.
Calculate Q’s share of profit till the date of his death and pass the journal entry for the same.
Q. On 1st April 2018, Ginni Filaments Ltd. was formed with an authorized capital of ₹ 10,00,000 4
21 divided into 1,00,000 Equity Shares of ₹ 10 each. The company issued prospectus inviting
applications for 90,000 equity shares. The company received applications for 85,000 shares. During
the first year, ₹ 8 were called. Vasu holding 1,000 shares & Vidhi holding 2,000 shares did not pay
the first call of ₹ 2 per share. Vidhi’s shares were forfeited after the first call and later on 1,500 of
the forfeited shares were reissued at ₹6 per share, ₹ 8 called up.
Show share capital in the Balance Sheet of the company as per Schedule – III, Part – I of the
Companies Act, 2013. Also prepare Notes to the Account for the same.
Q. Mahesh and Tinku are partners in a firm and sharing profit as 3:2. They decided to 4
22 dissolve their firm on March 31, 2019 when their Balance Sheet was as follows:

Balance Sheet of Mahesh and Tinku as on March 31, 2019

Amount Amount
Liabilities Assets
(₹) (₹)
Capital: Machinery 70,000
Mahesh Investments 50,000
90,000 1,70,000 Stock 22,000
Tinku 80,000 60,000 Sundry Debtors 1,03,000
Sundry creditors 20,000 Cash at bank 5,000
Bills payable
2,50,000 2,50,000
The assets and liabilities were disposed off as follows:
a. Machinery were given to creditors in full settlement of their account and Stock were given to
bills payable in full settlement.
b. Investment were taken over by Tinku at book value. Sundry debtors of book value ₹ 50,000
took over by Mahesh at 10% less and remaining debtors realised ₹ 51,000.
c. Realisation expenses amount to ₹ 2,000.
Prepare Realisation Account to close the books of the firm.

Q. A) Akshat Ltd. took over running business with assets of ₹ 6,00,000 and liabilities of ₹ 60,000 from 6
23 Vijay Ltd for the purchase consideration of ₹ 5,50,000. It paid the purchase consideration by issuing (3
8% debentures of ₹ 100 each at Par, redeemable at 5% premium after 5 years. There was a balance +
of ₹ 25,000 in Securities Premium Reserve Account in the books Akshat Ltd. (free from any 3)
charge) and company used it to write off the loss on issue of Debentures in the year of issue of
Debentures. Pass journal entries.

B) Digvijay Ltd. took a loan of ₹ 5,00,000 from ICICI Ltd. and issued 6000 ₹ 100, 12% Debentures
as collateral security. Pass journal entry to record the transaction and show its effect on company’s
Balance Sheet.
Q. A and B are partners in a firm sharing profits and losses in the ratio 3:1. They admit C for a ¼ share 6
24 (entirely taken from A) on 31st March 2019 when their Balance Sheet was as follows:

Liabilities Amount Assets Amount

Employee Provident fund 17,000 Goodwill 40,000
Investment Fluctuation Fund 4,100 Stock 15,000
Workmen compensation 6,000 Debtors 50,000
fund Less: Provision
Capitals: for Bad Debts 2,000 48,000
A 54,000 89,000 Cash 6,100
B 35,000 Investments 7,000
1,16,100 1,16,100
The following adjustments were agreed upon:
(a) C brings in ₹ 16,000 as goodwill and ₹ 30,000 as capital.
(b) Bad debts amounted to ₹ 3,000.
(c) Market value of investment is ₹ 4,500.
(d) Liability on account of workmen Compensation Reserve amounted to ₹ 2,000.
Prepare Revaluation Account and Partners’ Capital Accounts of A, B and C.
OR
X, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The
Balance Sheet as on April 1, 2020 was as follows:

Liabilities Amount Assets Amount

Employee Provident fund 12,000 Freehold Premises 40,000
Sundry Creditors 18,000 Machinery 30,000
General Reserve 12,000 Furniture 12,000
Capitals: Stock 22,000
X 30,000 Debtors 20,000
Y 30,000 Less: Provision
Z 28,000 88,000 for Bad Debts 1,000 19,000
Cash 7,000
1,30,000 1,30,000
Z retires from the business and the partners agree that:
(a) Machinery is to be depreciated by 10%.
(b) Provision for bad debts is to be increased to ₹ 1,500.
(c) Furniture was taken over by Y for ₹ 14,000 against cash payment
(d) Goodwill is valued at ₹ 21,000 on Z’s retirement.
(e) The retiring partner was paid half of his amount due in cash.
Prepare Revaluation Account and Partners Capital Accounts .
Q. The firm of R, K and S was dissolved on 31.3.2019. Pass necessary journal entries for the following
25 after various assets (other than cash and Bank) and the third party liabilities had been transferred to
realisation account.
(i) K agreed to pay off his wife’s loan of Rs.6,000.
(ii) Total Creditors of the firm were Rs.40,000. Creditors worth Rs.10,000 were given a piece of
furniture costing Rs.8,000 in full and final settlement. Remaining creditors allowed a discount of
10%.
(iii) A machine that was not recorded in the books was taken over by K at Rs.3,000 whereas its
expected value was Rs.5,000.
(iv) The firm had a debit balance of Rs.15,000 in the profit and loss A/c on the date of
dissolution.
(v) Creditors of Rs. 40,000 accepted machinery valued at Rs.38,000 in full settlement of their
claim.
(vi) Profit on Realisation of ₹ 48,000 was to be distributed between R, K and S.

Q. Amrit Ltd. issued 50,000 shares of Rs 10 each at a premium of ₹ 2 per share payable as ₹ 3 on 6
26 application, ₹ 4 on allotment (including premium), ₹ 2 on first call and the remaining on second
call. Applications were received for 75,000 shares and a pro-rata allotment was made to all the
applicants. All moneys due were received except allotment and first call from Suman who applied
for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final
call was not made.
OR
Velco Ltd. issued 30,000 shares of ₹ 10 each payable as ₹ 3 on application, ₹ 3 on allotment, ₹ 2
on first Call and ₹ 2 on second call.
Applications were received for 40,000 shares and a pro-rata allotment was made to the applicants of
35,000 shares. All money due were received except allotment and first call from Mohit who had
applied for 2,100 shares. His shares were forfeited after first call. Thereafter, the forfeited shares
were reissued for ₹ 9 fully paid. Pass the necessary journal entries.

Part- B (Analysis of Financial Statements)

Q. Which on of the following is not presented under ‘Current Liabilities’ in the Balance Sheet of a 1
27 Company?
(a) Short-term Borrowings (b) Deferred Tax Liabilities
(c) Short-term Provisions (d) Trade Payables
Q. Current ratio 1.5 :1, Working capital Rs. 30,000.What will be the current liabilities: 1
28 A) 20.000 B) 60.000 C) 1,65,000 D) 1,50,000
OR
The Liquid Ratio of a firm is 2:1 representing Liquid Assets of ₹ 1,00,000 and Current Liabilities of
₹ 50,000. There was a purchase of stock ₹ 10,000 on credit. What will be the effect of this
transaction on Liquid Ratio of the firm?
a) No change b) Information is incomplete c) Increase d) Decrease
Q. Balance Sheet (Extract) 1
29 Assets 31 Mar 2020 31 Mar 2019
(₹) (₹)
Plant and 1,00,000 2,00,000
Machinery
Additional Information:
I. Depreciation on Plant and Machinery during the year ₹ 40,000
II. A Plant was sold at 40 % profit during the year.
How much amount (related to the above information) will be shown in Investing Activity for Cash
 Flow Statement prepared on 31 Mar 2020?
st

a. Inflow ₹ 84,000
b. Outflow ₹ 84,000
c. Inflow ₹ 1,40,000
d. Outflow ₹ 1,00,000

Q. While preparing Cash Flow Statement, payment of Bank Overdraft will be categorized under – 1
30 a. Operating Activity b)Investing Activity c)Financing Activity d)Extra-ordinary Item
OR 1
Depreciation is –
a. A non-operating but cash expense b) An operating but non-cash expense
c) A non-operating and non-cash expense d) An operating and cash expense

Q. Under which major heads and sub-heads will the following items be placed in the Balance 3
31 Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
(i) Debentures with maturity period in current financial year
(ii) Securities Premium Reserve
(iii) Provident Fund
Q. Prepare a Common -Size Position Statement from the following information: 3
32
Particulars 31 March, 2020
st
31st March, 2019
(₹) (₹)
Shareholder₹ s fund 8,00,000 4,00,000
Non-Current Liabilities 5,00,000 2,00,000
Current Liabilities 3,00,000 2,00,000
Total 16,00,000 8,00,000
Non-Current Assets 10,00,000 5,00,000
Current Assets 6,00,000 3,00,000
Total 16,00,000 8,00,000

OR
From the following information, prepare Comparative Income Statement:

Particular 31 March, 2020

st
31st March, 2019

Revenue from operation 8,00,000 6,00,000

Cost of material consumed 4,80,000 4,50,000
Other Expenses 20% of Gross 10% of Gross profit
profit
Income Tax 40% 40%
Q.33 From the given information calculate Return on Capital Employed. 4
Net profit after interest but before Tax: ₹ 1,40,000;
15% Long-term Debts: ₹ 4,00,000;
Shareholders’ Funds: ₹ 2,40,000;
Tax Rate: 50%
OR
From the following information of Akash Ltd., calculate Total Assets to Debt Ratio:
Equity Share Capital – ₹ 5,00,000
9% Preference Share Capital – ₹ 4,00,000
Fixed Assets – ₹ 12,00,000
 Non-Current Investments – ₹ 1,50,000
Reserves and Surplus – ₹ 2,40,000
Current Assets – ₹ 1,90,000
Current Liabilities – ₹ 1,00,000
Q. Prepare Cash Flow Statement from the following Balance Sheet: 6
34
Note 31 Mar 2020
st
31 Mar 2019
st

Particulars
No. (₹) (₹)
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,30,000 5,60,000
(b) Reserves and Surplus 1 3,08,000 1,82,000
2. Current Liabilities
(a) Trade Payables 2,80,000 1,82,000
Total 12,18,000 9,24,000
II ASSETS
1. Non-Current Assets
Fixed Assets:
(a) Plant 3,92,000 280000
2. Current Assets
(a) Inventories 98,000 1,40,000
(b) Trade Receivables 6,30,000 4,20,000
(c) Cash and Cash Equivalents 98,000 84,000
Total 12,18,000 9,24,000

Notes to Account: -
31 Mar 2020 31 Mar 2019
st st

Particulars
(₹) (₹)
1. Reserves and Surplus
Surplus (Balance in Statement of Profit and
3,08,000 1,82,000
Loss)

Additional Information:
A. An old machinery having book value ₹ 42,000 was sold for ₹ 56,000
B. Depreciation provided on machinery during the year was ₹ 28,000.