KENDRIYA VIDYALAYA SANGATHAN, CHANDIGARH REGION

PRE-BOARD , 2024-25

CLASS: XII MAX. MARKS: 80

SUBJECT: ACCOUNTANCY DURATION: 3 HRS.
INSTRUCTIONS:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper comprises of two PARTS – Part A and Part B.
3. Questions from 1 to 16 and 27 to 30 carry 1 mark each
4. Questions 17 to 20, 31 and 32 carry 3 marks each
5. Questions 21,22 and 33 carry 4 marks each.
6. Questions from 23 to 26 and 34 carry 6 marks each.
7. There is an internal choice in 7 questions of one mark , 2 questions of three marks, 1 question of four
marks and 2 questions of six marks each.
Q.NO. MARKS
PART A- ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 A and B are partners with capital of Rs. 40,000 and Rs. 50,000 respectively. Profit during 1
the year Rs. 6,300. As per deed, Partners were entitled to interest on capital @10% p.a.
Drawings of A and B were Rs. 6,000 and Rs.12,000 and Interest on drawings amounted to
Rs. 300 and Rs. 600. The amount of interest credited to A’s Capital:
A) Rs. 2,800 B) Rs. 4,000 C) Rs. 3,600 D) Rs. 3,200
2 In Fixed Capital method , the capital remains 1
A) Maintained B) Fluctuates from time to time
C) Fluctuates only at the start of the year but is fixed at the end D) Unchanged
OR
Profit & Loss Appropriation A/c is prepared to:
A) To distribute profit for the year among partners
B) To distribute profit and loss for the year among partners
C) To settle dispute among the partners
D) None of these
3 500 shares of Rs. 10 each, issued at 10% premium, forfeited as shareholder paid only Rs. 8 1
per share (upto allotment only). 200 shares were reissued at a loss of Rs. 3 per share. State
the amount that will be transferred to capital Reserve.
A) Rs 2 per share B) Rs 3 per share
C) Rs. 5 per share D) Rs. 4 per share
4 Rita and Sita were partners in a firm. Pihu was admitted in the firm for 1/6th share, which 1
she acquired from Rita and Sita in 3:2 ratio. The new profit sharing ratio after Pihu’s
admission will be:
A) 3:2:1 B) 34:16:10 C) 2:3:1 D) 12:13:5
5 A and B are partners with profit sharing ratio of 3:2. Their Capital stood at Rs. 1,20,000 1
and Rs. 85,000 on 1-4-24. C joins the partnership for 1/5th share and he brings proportionate
capital . Goodwill of the firm is valued at Rs. 75,000. Capital brought in by N :
A) Rs. 45,000 B) Rs. 55,000 C) Rs. 42,500 D) Rs. 40,000
Page 1 of 12
6 If fixed amount is withdrawn by a partner at the end of each quarter, interest on drawings 1
on the total amount withdrawn will be calculated for:
A)4.5 months B) 9 months C) 6 months D) 3 months
7 If shares are forfeited, Share Capital account is: 1
A) Dr. With amount received (excluding securities premium)
B) Dr. With called- up amount of shares
C) Dr. With paid - up value of shares
Dr. With uncalled amount of shares (excluding securities premium)
8 Swati, Sunita and Mink are partners in a firm with profit sharing ratio of 2:1:1 and Capital 1
of Rs. 90,000, Rs. 60,000 and Rs. 50,000 respectively on 31st March 2022. Swati decided
to retire from the firm. On that date , Reserves appeared at Rs. 30,000 . The amount paid
to Swati on her retirement was Rs. 1,25,000. Goodwill valued on Swati’s retirement is
:
A) Rs. 5,000 B) Rs. 10,000 C) Rs. 40,000 D) Rs. 20,000
OR
X,Y and Z were partners in a firm. Y retires from the firm. Out of his dues of Rs. 1,00,000,
he was paid Rs. 40,000 immediately and balance transferred to his loan account to be paid in
three equal yearly instalment with interest at 10% p.a. State the instalment to be paid at
the end of second year:
A) Rs. 26,000 B) Rs. 24,000 C) Rs. 22,000 D) Rs. 20,000
9 P,Q and R were partners with profit sharing ratio of 4:3:3. R dies on 30th June 2024. Sales 1
during 2023-24 and sales in the current year from last Balance Sheet date till R’s death
were Rs. 20,00,000 and Rs. 4,00,000 respectively. Profit during 2023-24 was Rs. 5,00,000.
R’s share of profit in current year to be based on sales will be:
Rs. 7,500 B) Rs. 15,000 C) Rs. 22,5000D) Rs. 30,000
10 Given below are two statements-Assertion (A) and Reason ( R ). Choose the correct 1
alternative:
Assertion(A ): Premium received on issue of shares is credited to Securities Premium.
Reason(R ): Securities Premium account is reserve hence, may be credited to General
reserve.
A) Both (A ) and (R ) are true and (R ) is the correct explanation of (A )
B) Both (A ) and (R ) are true but (R ) is not the correct explanation of (A )
C) (A ) is true but (R ) is false.
(A ) is false but (R ) is true.
11 Harsh Ltd. Purchased Building from Sajan Ltd for Rs. 9,00,000. The consideration was 1
paid by issue of 6% Debentures of Rs. 100 each at 10% discount. The 6% Debentures
account is credited with Rs.:
A) 10,00,000 B) 9,00,000 C) 9,90,000 D) 8,10,000
OR
Charan Ltd. issued 5,000 8% Debentures of Rs. 100 each at a premium of 10%. According
to the terms of issue, 40% of the amount was payable on application and the balance on
allotment. The issue was fully subscribed and all amounts were duly received. The amount
received on application and allotment respectively were:
A) Rs. 2,50,000 and Rs. 3,00,000 B) Rs. 2,00,000 and Rs. 3,00,000
C) Rs.2,00,000 and Rs 3,50,000 D) Rs. 2,00,000 and Rs. 2,50,000
121 X,Y and Z are partners in a firm with profit sharing ratio of 3:2:1. They decided to change 1
their ratio to 2:2:1. On the date of change in profit sharing ratio, Reserves appear at Rs.
30,000; Profit & Loss (Dr. balance ) Rs. 60,000. Goodwill is valued at Rs. 20,000. It was
decided to pass one adjustment entry.
X’s Capital account will be:
Page 2 of 12
 A) Dr. with Rs, 1,000 B) Cr. with Rs. 1,000
C)Dr. with Rs. 11,000 D) Cr. with Rs. 11,000
OR
A and B are partners in a firm sharing profits in 3:2 ratio. Their Balance Sheet as at 31-3-
2023 was as follows:

LIABILITIES Amount ASSETS Amount

A’s Capital 40,000 Drawings : A 4,000
B’s Capital
40,000 B 2,000 6,000
Other Assets 74,000
80,000 80,000

Net Profit during the Year ended 31-3-2023 was Rs. 25,000. Both partners withdrew Rs.
5,000 each during the year.
A’s Interest on Capital @ 10% p.a. is:
A) Rs. 4,000 B) Rs. 2,600 C) Rs. 2,900 D) Rs. 3,00012
13 Which of the following is correct regarding subscribed capital? : 1
A) It is the amount of share capital which a company is authorised to issue by its MoA.
B) It is that part of authorised capital which is actually issued to the public for subscription.
C) It is that part of issued capital which has been actually applied by and alloted to the
public .
D) It is that part of the called capital which has been received from shareholders.
OR
Which of the following is incorrect about debentures?
A) Interest on debentures is an appropriation of profits
B) Debenture holders are the creditors of a Company.
C) Debentures can be issued at discount.
No interest is paid on Debentures issued as collateral security.
Read the following hypothetical situation, Answer question 14 and 15
Kuldeep, Kawal and Manjot are in trading business of Jute and Jute products. They have
been sharing profits equally up to the year ended 31st March, 2020. They reconstituted the
firm and profit-sharing ratio was changed to 3:2:1. Manjot being a working partner
demanded that he should be paid annual salary of ₹ 75,000. The partners did not agree to
salary demanded by Manjot but agreed to give him minimum guaranteed profit of
₹ 60,000. Their capitals as on 1st April, 2023 were ₹ 5,00,000, ₹ 4,00,000 and ₹ 3,00,000
respectively. Profit for the year ended on 31st March, 2024 was ₹ 3,00,000.
14 What will be partners’ profit share, if , Profit for the year ended on 31st March, 2024 was ₹ 1
3,00,000 and Manjot’s share is guaranteed after allowing interest on capital @6% p.a.
a) ₹ 1,09,600, ₹56,400, ₹ 60,000 b) ₹ 89,600, ₹ 76,400, ₹ 60,000
c) ₹ 99,600, ₹ 66,400, ₹ 60,000 d) ₹ 1,00,800, ₹ 67,200, ₹ 60,000
15 What will be Kuldeep’s Profit/Loss share, if , Loss for the year ended on 31st March, 1
2024 was ₹ 30,000 and Manjot’s share is guaranteed after allowing interest on capital
@6% p.a.
A) ₹ 54,000 Loss B) ₹ 45,000 Loss C) ₹ 15,000 Loss D) ₹ 30,000 Loss

Page 3 of 12
 Read the following statements I and II. Choose the correct option from the options given
below:
(a) Both Statements are correct.
(b) Both Statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct.
Statement I : At time of dissolution of firm, when a creditor accepts an asset whose value
is more than the due amount he/she pay cash to the firm for the difference.
Statement II: At time of dissolution of firm, in the absence of information about who is
paying the expenses, it is implied that expenses are paid by the partner who has agreed to
bear expenses.
17 Armaan Ltd. Purchased Land & Building Rs. 5,20,000 and acquired Creditors of Rs. 3
1,00,000 from Ryan Ltd. for an agreed amount of Rs. 4,50,000. Purchase consideration was
settled by a cheque of Rs. 90,000 and balance by Equity shares of Rs. 100 each at 20%
premium. Pass necessary journal entries.
OR
Ankit Ltd. Purchased Plant & Machinery Rs. 6,00,000 and acquired Bills payable of Rs.
1,20,000 from Shubham Ltd. . Purchase consideration of Rs. 4,70,000 was settled by a
cheque of Rs. 1,10,000 and 9% Debentures of Rs. 100 each at 10% Discount. Pass
necessary journal entries.
18 Arsh and Mohit are partners in a firm with capital of Rs. 4,00,000 and Rs. 5,00,000 3
respectively at the end of the year 2023-24. Arsh has withdrawn Rs. 10,000 at the end of
each quarter, while Mohit withdrew Rs. 30,000 during the year. As per Partnership Deed:
A) Partners are entitled to interest on capital @ 10 % p.a.
B) Interest on drawings to be charged @6% p.a.
Ignoring the Deed, Profits of the year 2023-24 Rs. 1,20,000 were divided equally between
partners.
Pass an adjustment entry to rectify the errors.
OR
Himani and Darishti are partners. Their Capital as on 1-04-23 was Rs. 9,00,000 and Rs.
7,00,000 respectively. Ankita joined their firm on 1-07-2023 with capital of Rs. 8,00,000.
As per Deed:
(a) Interest on Capital to be given @ 10% p.a.
(b) Commission to Himani @ 20 % of divisible profits after charging such commission.
Prepare Profit and Loss Appropriation A/c, if net profit during the year is Rs. 4,00,000
19 A and B are partners. Net Assets of the firm were Rs. 6,00,000. Normal rate of return is 3
10% . Average actual profits were Rs. 15,000 more than normal profits.
I) Find goodwill on the basis of three year’s purchase of super profits.
Find goodwill on the basis of capitalisation of average profits.
20 X,Y and Z were partners sharing profits in 2:1:1. Y retires. Capitals of X,Y and Z after all 3
adjustments stood at Rs. 1,00,000; Rs. 70,000 and Rs. 45,000 respectively. Y is paid 50%
of his dues, with cash to be brought in by X and Y in such a way that their capitals are in
proportion to new profit sharing ratio.
I) Cash to be brought in by X to make his capital proportionate is:
A) Rs. 20,000 B) Rs. 25,000 C) Rs. 30,000 D) Rs. 15,000
II) Y’s Capital account to be Dr./Cr. on his retirement by :
A) Dr. by Rs 70,000 B) Dr by Rs. 35,000
C) Cr. by Rs70,000 D) Cr. By Rs. 35,000
III) New Capital of Z after Y’s retirement will be:
A) Rs. 45,000 B) Rs. 60,000 C) Rs.70,000 D) 90,000
Page 4 of 12
21 4

Page 5 of 12
 I) What is the amount of workmen compensation reserve distributed among partners?
A) Rs. 1,00,000 B) Rs. 40,000 C) Rs. 60,000 D) Nil
II) Sam’s Loan was settled:
A) with 10% interest B) at book value C) at 10% discount D)can’t be determined
III) Amrit’s account to be settled as :
A) Rs. 5,12,000 B) Rs. 4,89,500 C) Rs. 4,69,500 D) Rs. 4,24,500
IV) What is the book value of stock taken by Sam?
A) Rs. 1,00,000 B) Rs. 99,000 C) Rs. 1,10,000 D) Rs.81,000
22 Avni Ltd. is registered with a Capital of Rs. 60,00,000 divided into Equity shares of Rs. 100 4
each. It offered 50,000 shares for public subscription. Company called Rs. 90 up to first
call.
Paras having 2,000 shares did not pay allotment money of Rs. 30 and first call of Rs. 20
Aditya with 500 shares did not pay first call of Rs. 20 . Shares of both the shareholders cancelled
and shares of Paras were reissued as fully paid up for Rs. 80 per share. Show the amount of Share
Capital in Balance Sheet and prepare notes to accounts.

Page 6 of 12
24 X Ltd. Issued 80,000 Equity shares of Rs. 10 each at 20% premium, payable as follows: 6
On Application Rs. 4 per share, On Allotment Rs. 3(including premium) and balance on
first and final call.
Applications were received for 1,30,000 shares. Allotment was made on pro-rata basis to
applicants of 1,10,000 shares and rest of the applicants rejected. All the money was duly
received except from a shareholder, Mr. Yash who was alloted 4,000 shares. He failed to
pay allotment .
His shares were immediately forfeited and half of the forfeited shares were reissued at a
loss of Rs. 2 per share as fully paid up. First and final call not yet made.
Pass necessary journal entries.
OR
A) 2,000 shares of Rs. 10 each issued at 10% premium , are forfeited for non payment of
allotment money of Rs 3 and first and final call of Rs. 2. 1,500 shares reissued at a
discount of Rs. 2 per share as fully paid up . Pass entries for forfeiture and reissue of
shares.
B) 400 shares of Rs. 100 each issued at 20% premium , are forfeited for non payment of
first call of Rs. 20. Second & Final call of Rs. 10 is yet to be made. 300 shares reissued at
Rs. 120 as fully paid up. Pass entries for forfeiture and reissue of shares.

25 On May 1, 2023 M Ltd . issued Rs. 9,00,000 6% Debentures of Rs. 100 each at a 6
premium of 5% and redeemable at a premium of 10% after 5 years.The entire amount was
payable on application .
There is a balance of Rs. 30,000 in securities premium reserve.
Interest is payable on 31st March every year.
Answer the following questions on the basis of the above case:
A) How much amount was received on application?
B) What will be the journal entry for transfer of application money received?
C) State the amount of interest to be paid on debentures on 31st March ?
D) What will be the journal entry to write off loss on issue of debentures?
Prepare Loss on issue of Debentures A/c

26

Page 7 of 12
Page 8 of 12
 PART B- ANALYSIS OF FINANCIAL STATEMENTS
27 A company has an operating cycle of fifteen months. It has accounts receivable amounting 1
to Rs. 1,00,000 out of which Rs. 60,000 have a maturity period of 13 months. How would
this information be presented in the Balance sheet?
A) Rs. 40,000 as current assets and Rs. 60,000 as non-current assets
B) Rs. 60,000 as current assets and Rs. 40,000 as non-current assets
C) Rs. 1,00,000 as non-current assets
D) Rs. 1,00,000 as current assets
OR
Which of the following ratios are measures of efficiency?
A)Liquidity ratios B) Solvency ratios
C) Activity ratios D) Profitability ratios
28 Balance Sheet (Extract) 1

Equity and Liabilities 31-3-2024 (Rs.) 31-3-2023 (Rs.)

Current Liabilities
Short-Term Provision(Provision for Tax) 2,00,000 1,60,000

Additional information: Tax provided during the year Rs. 1,00,000.

How much amount will be shown as an outflow under operating activities in Cash Flow
Statement prepared on 31-3-2024 ?
A) Rs. 1,40,000 B) Rs 1,00,000 C) Rs. 60,000 D) Rs. 40,000
29 Which of the following options will reduce Current Ratio of 2:1 ?: 1
i) Purchase of goods on credit ii)Purchase of goods on cash
iii)Sale of goods at loss iv) Payment of Bills payable
Choose the correct option:
A) Only (i) is correct (B) Only (ii) is correct
C)Only (i) and (iii) are correct (D) Only (ii) and (iii) are correct
30 Which of the following is not an operating cash flow for a financial enterprise: 1
A) Rent paid
B) Interest paid
C) Dividend paid
D) Interest Received
OR
A Ltd. had cash flow from operating activities Rs. 35,000 ; cash used in investing activities
is Rs. 25,000. Net increase in cash and cash equivalents is Rs. 7,000. Cash flow from/used
in financing activities is:
D) Cash used in Financing Activities Rs. 3,000
E) Cash generated from Financing Activities Rs. 3,000
F) Cash generated from Financing Activities Rs. 53,000
G) Cash used in Financing Activities Rs. 53,000

Page 9 of 12
 31 Mention Head and Sub heads of the following items in the Balance Sheet as per schedule 3
III, Part I of Co. Act 2013:
A) Calls in arrears B) Interest accrued and due on Borrowings
C)Advance Tax D) Advance for purchase of machinery
E)Patents F) Excess Share application money due to be refunded

3232

Complete the following Comparative Balance Sheet: 3

2022-23 2023-24 Absolute Percentage

Rs Rs. Change Change
I Equity & Liabilities:

Shareholders Funds

Share Capital 6,00,000 7,50,000 ----------- -----------

Reserves and Surplus 2,00,000 ----------- ----------- 20%

Non- Current Liabilities

Long-Term Borrowings 4,00,000 5,50,000 1,50,000 37.5%

Current Liabilities:
Trade Payables ----------- 85,000 ------------ (15%)

TOTAL 13,00,000 16,25,000 3,25,000 25%

II Assets
Non- Current Assets:
Property,Plant, Equipment & ----------- ------------ 2,70,000 30%

Intangible Assets
Current Assets:
Inventories 3,00,000 ----------- 60,000 -----------

Trade Receivables 40,000 ----------- --------- 25%

Cash & Cash Equivalents 60,000 45,000 (15,000) (25%)

25%
TOTAL 13,00,000 16,25,000 3,25,000

Page 10 of 12
33 Total Assets Rs. 3,00,000; Total Debt Rs. 1,20,000(including 10% debentures) 4
Working Capital Rs. 60,000; Non Current Assets Rs. 2,00,000
Calculate Debt-Equity Ratio
OR
Cost of Revenue from operations Rs. 6,00,000. Gross profit is 1/4th of Revenue from
operations. Cash sales are 1/3rd of credit sales. Opening Receivables are Rs. 1,20,000( Rs.
40,000 more than closing receivables). Find Receivables Turnover ratio.

Note 31-3-2024 31-3-2023

No.
I Equity & Liabilities:

Shareholders Funds
1,20,000 1,05,000
Share Capital
70,000 50,000
Reserves and surplus

Non- Current Liabilities 30,000 25,000

Long-Term Borrowings
Current Liabilities: 10,000 10,000
Trade Payables 2,30,000 1,90,000
TOTAL
II Aseets
Non- Current Assets: 1,50,000 1,10,000
Property,Plant &Equipment &Intangible Assets 15,000 20,000
Non- Current Investment
Current Assets: 5,000 12,000
Current Investment 50,000 40,000
Inventory 10,000 8,000
Cash & Cash Equivalents 2,30,000 1,90,000
TOTAL

Notes to Accounts :

Particulars 31-3-2024 31-3-2023

Reserve & Surplus :
G.Reserve 30,000 25,000
Surplus,i.e. Statement of P&L 40,000 25,000
L.T. Borrowings :

Page 11 of 12
 10% Debentures 30,000 25,000

Property,Plant & Equipment & Intangible Assets

1.Property,Plant &Equipment:
Machinery 1,80,000 1,20,000
Acc. Depreciation (40,000) (30,000)
1,40,000 90,000
2. Intangible Assets :
Goodwill 10,000 20,000

Tax paid Rs. 10,000

A part of machine costing Rs. 50,000 (Acc.dep. Rs. 8,000) sold at Rs. 40,000.

END OF PAPER

Page 12 of 12