KVVS VIDHYAPEETH

HALF YEARLY EXAMINATION

ACCOUNTANCY
CLASS XII Time Allotted: 3hours

29-AUG-2024 Max Marks: 70

General Instructions:

1.All questions are compulsory.

2.Please write question number before attempting a question.

3.Attempt all parts of a question at one place.

4.Use of calculators or any other calculating device not allowed.

5. Show clearly working notes wherever necessary.

1.Pick the odd one out of the following: 1

(a) Rent to Partner.
(b)Manager's Commission
(c) Interest on Partner's Loan.
(d) Interest on Partner's Capital
2.Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively.The firm
earn profit of ₹ 30,000 during the year. Mohit's share in the profit will be 1
(a) ₹ 20000
(b) ₹ 10000
(c) ₹ 15000
(d) ₹ 18000
3. Relationship between the partners is of 1
(a) Close relatives.
(b) Agent and Principal
c) Junior-senior Relationship .
(d) Senior-Subordinate Relationship

4.Sohan and Mohan are partners sharing profts and losses in the ratio of2:3 with the capitals of₹5,00000
and ₹ 6.00,000 respectively. On 1st January, 2022, Sohan and Mohan granted loans of ₹20,000 and
₹10,000 respectively to the firm. Determine the amount of loss to be borne by each partner for the year
ended 31st March, 2022 if the loss before interest for the year amounted to ₹ 2,500. 1
(a)₹20 000 and 10,000.
(b) ₹15,000 and ₹9000
(c) No interest will be paid .
(d) ₹ 16000 and ₹9000
5. Choose the correct sequence of the following transaction in context of division of profits. 1
(i) Guarantee by Firm to Partners
(ii) Guarantee by Partners to firm
(iii) Transfer of Profits to Profit & Loss Appropriation Account
(IV) Guarantee by Partner to Partner
(a) (i); (iii); (iv); (ii)
(b) (iii); (i); (ii); (iv)
(c) (iii); (ii); (i); (iv)(d) (ii); (iii); (iv); (i)

6. Adil, Bhavyaand Chris are partners sharing profits in the ratio of 5:4:1. Chris is given
guarantee that his share of profit in any year will not be less than ₹5,000. Deficiency in profit
share of Chris will be borne will be porne by Bhavya. The Journal entry to record for deficiency
met by Bhavya is given below 1

Date Particulars L.F Dr. (RS) Cr. (RS)

Bhavya's Capital A/c dr 1,000

To Chris's Capital A/c 1,000

(Defciency met by Bhavya)

Profit earned during the year was

(a) 30000 (b) 3500
(c) 40000 (d) 50000

7.Goodwill is not accounted in the books if 1

(a) It is a Purchased Goodwill,
(c) It is decided to be accounted by the partners
(b) It is a Self-generated Goodwill
(d) Its amount is paid by the gaining partner

8.Tangible Assets of the firm are 14,00,000 and outside liabilities are 4,00,000. Proft of the firm
is 1,50,000 and normal rate of return is 10%. The amount of capital employed will be 1
(a) 10,00,000 (b) 1,00,000
(c)50,000 (d)20,000

9. In the absence of partnership deed, the profits of a firm are divided among the partners: 1
(a) In the ratio of capital (b) Equally
(c) In the ratio of time devoted for the firm's business
(d) According to the managerial abilities of the partners

10. When a new partner brings his share of goodwill in cash, the amount is debited to 1
(a) Premium A/C (b) Cash N/c
(c) Capital A/c of old partners(d) Capital Ac of new partner
11. For a parinersthip firm intrest on capital is 1
(a) An expense (b) An income
(c) A loss (d) None of these

12. Sacrificing Ratio is the difference between:. 1

(a) New Ratio and Old Ratio (b) New Ratio and Gaining Ratio
(c) Old Ratio and New Ratio (d) Old Ratio and Gaining Ratio

13.A, B and C are partners sharing profits in the ratio of 4:3:2. D is admitted for 1/3rd share in
future profits. What is the sacrificing ratio? 1
(a)4:3:2 (b) 1:1:1
(c) 2:3:4 (d) 5:4:3

14. The ratio in which a partner surrenders his share in favour of a partner is known as: 1
(a) New Profit Sharing Ratio (b) Sacrificing Ratio
(c)Gaining Ratio (d) Capital Ratio

15.Any change in the relationship of existing partners which results in an end of the existing
agreement and enforces making of new agreement is called 1
(a) Revaluation of Partnership (c) Realisation of Partnership
(b) Reconstitution of Partnership (d) None of the above

16.Salary or commission to a partner is an..............of profit.1

17.In the Balance Sheet prepared after new partnership agreement, assets and liabilities are
recorded at................ 1

18.Defne Partnership according to Indian Partnership Act 1932. 1

19.What is meant by Fixed Capital of a Partner? 1

20. Explain briefly the meaning of guarantee of minimum profit 1

21. if the partners capitals are fixed in which account interest charged on drawings will be
credited? 2
22.Give the average period in months, for charging interest on drawings of fixed amount,
withdrawn at the end of each quarter 2

23.What is meant by unlimited liability of a partner ? 2

24.In the absence of provision in the partnership deed, in which ratio is the deficiency arising out
of guarantee of profit to a partner borne by the other partners. 2
25.Give two items which may appear in the debit side of a Partner's Current Account. 2

26. Manoj, Pradeep and Mohit are sharing profits and losses in the ratio of 5:3:2. They decide to
share future profits and losses in the ratio 0f 2:3:5 with effect from 1" April, 2019 They also
decide to record the effect of the following accumulated profits, losses and reserves without
affecting their book figures by passing a single entry 4

Rs.
General Reserve 12000
Profit and Loss Account (Cr.) 48000
Advertisement Suspense Account 24000

Pass the necessary single adjustment entry

27. Raja Brothers earn an average profit of ₹ 30000 with a capital of ₹2,00,000. The normal rate
of return the business is 10%. Using capitalisation of super profit method, workout the value of
the goodwill 4

28.P and Q were partners in a firm sharing profits in the ratio of 5 : 3. On 1st April, 2022 they
admitted R as a new partner for 1 /8th share in the profits with a guaranteed profit of ₹ 75,000.
The new profit-sharing ratio between P and Q will remain the same but they agreed to bear any
deficiency on account of guarantee to R in the ratio of 3 : 2. The profit of the firm for the year
ended 3 1st March, 2023 was ₹4,00,000.

Prepare Profit & Loss Appropriation Account of P, Q and R for the year ended 3 1st March,
2023. 8

29. Reema and Seema are partners sharing profits equaly, The Partnership Deed provides that
both Reema and Seema will get monthly salary of ₹ 15,000 each, Interest on Capital will be
allowed @ 5% p.a. andInterest on Drawings will be charged @ 10% p.a. Their capitals were ₹
5.00,090 each and drawings during the year were ₹ 5,00,000 each and drawings during the year
was ₹60000 each.

The firm incurred net loss of ₹ 1,00,000 during the year ended 3 1st March, 2023.

Prepare Profit & Loss Appropriation Account for the year ended 3 1st March, 2023. 8

30.A and B are partners in the ratio of 3 : 2. The firm maintains Fluctuating Capital Accounts
and the balance of the same as on 3 1st March, 2020 amounted to ₹ 1,60,000 and ₹ 1,40,000 for
A and B respectively. Their drawings during the year were ₹ 30,000 each

As per Partnership Deed, interest on capital @ 10% p.a. on opening capitals had been provided
to them.Calculate opening capitals of partners given that thèir profit was ₹ 90,000. Show your
workings clearly 8
31.Aman and Roman are partners sharing profits and losses in the ratio of 2:2:1 From Ist April
2023 they decide to change the profit-sharing ratio.They pass the following adjustment entry for
goodwill in the books;

Naman's Current A/c ( 2,00,000 x 3/25) 24000

Raman's Current A/c ( 2,00,000 x 2/25) 16000

To Aman's Current A/c ( 2,00,000 x 5/25) 40000

(Goodwill adjusted on change in proft-sharing ratio)

What will be the new profit-sharing ratio of partners assuming capital of partners are fixed. 8