AJANTA PUBLIC SCHOOL

INTERNAL (ONLINE) ASSESSMENT – I

SESSION 2020-21

CLASS: XII M.M. - 50

SUBJECT&CODE: Accountancy(055) TIME– 1.5hrs
General Instructions:
1. All questions are compulsory.
2. Questions from 1-11 are of 1 mark each,Q12 is of 3 mark ,Q13-16 are of 4 marks each,
Q17& 18 are of 6 marks each & Q19 is of 8 marks.
3. Please write down the serial number of the question before attempting it.
4. All parts of questions should be attempted at one place.
5. Avoid overwriting and cutting.
6. Give clear calculations or working notes wherever required.

Q1 State the nature of Revaluation Account.

Q2 _______________ is the excess of actual profits over normal profits.

Q3 If the drawings are made in the middle of every quarter,then the interest of drawings is calculated
for_____________ months.
Q4 Which of the following items are added to previous years profits for finding out normal profits for
valuation of goodwill?
a) Loss on sale of fixed asset
b) Loss due to fire,earthquake,etc
c) Undervaluation of closing stock
d) All the above
Q5 Gupta is a partner in a firm.He drew regularly Rs 800 at the end of every month for six months ending
31st march,2018.Calculate Interest of drawings @ 15% p.a.
Q6. Name the method of calculating Interest of drawings of the partners if different amounts are withdrawn
on different dates.
Q7. When goodwill is not a purchased goodwill,it is:
a) Not shown in balance sheet
b) Shown in balance sheet
c) May or maynot be shown in balance sheet
d) Partly shown in balance sheet
Q8. If average capital employed in a firm is Rs5,00,000,actual profit is Rs70,000 and normal rate of return is
10%,then super profit is:
a) 40,000 b) 30,000 c) 50,000 d) 20,000
Q9. Any change in the relationship of existing partners which results in an end of the existing agreement and
enforces making of a new agreement is called:
(a) Revaluation of partnership. ( b)Reconstitution of partnership.
(c) Reconstitution of partnership firm (d) None of the above.
Q10) Average profit of the firm is Rs60,000.If market rate of return of a similar company in the same
industry is 10% with capital employed of Rs5,00,000.Calculate goodwill according to three year purchase of
super profit method:

a)30,000 b)90,000 c)35,000 d)65,000

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Q11. X & Y were partners sharing profits in the ratio of 2:1.They admit Z into partnership.Z acquires 1/5 th of
his share from X and 4/15 share from Y .Calculate new profit sharing ratio .
Q12. .A,B & C are the partners sharing profits equally.B & C withdrew the following amounts from the firm
for their personal use during 2019:

2019 B C
January 1 5,000 7,000
April 1 8,000 4,000
September 1 5,000 5,000
December 1 4,000 10,000

Calculate Interest on Drawings for B & C if the rate of interest to be charged is 10% pa and the books are closed
on 31 dec every year.
Q13. Crocin and Combifalm were partners in a firm sharing profits in the ratio of 3:1. They admitted Flexon as
a new partner on 1-4-2015 for 1/3rd share. It was decided that Crocin, Combifalm and Flexon will share future
profits equally. Flexon brought ` 50,000 in cash and machinery worth ` 70,000 for his share of profit as premium
for goodwill. Showing your calculations clearly, pass necessary journal entries in the books of the firm for
bringing in the goodwill and distribution of goodwill among sacrificing partners.
Q14 X , a partner in XYZ Ltd withdrew money during the year ending March 31,2020 from his capital
accounts for his personal use.Calculate Interest on drawings in following cases if rate of interest is 9% per annum
i) If he withdrew Rs3,000 per month in the beginning of each month.
ii) If the amount of Rs 3,000 per month is withdrawn at the end of each month.
iii) If the amounts withdrawn were :Rs 12,000 on June 1 ,2019;Rs 8,000 on 1 aug,2019;Rs3,000
on September 30 2019;Rs7,000 on November 30 2019;Rs6,000 on jan1 ,2020.
Q15 Give journal entries in following cases:
i) To distribute Workmen Compensation Reserve of 50,000 at the time of admission of C for ¼
share, when there is claim of 10,000 against it. The firm has two partners A & B sharing profits
in 5:3.
ii) The advertisement suspense A/c Rs 15,000 appeared in the books of firm where P & Q were
partners sharing profits in the ratio of 2:1 on the admission of R for 1/6 share.
iii) P & L (cr) balance Rs 60,000 in a firm with partners E & F with profit sharing ratio of 3:2.
Q 16. On March 31, 2010 the firm of XYZ had total assets of `1,50,000 with capital employed of Rs 1,40,000
& Outside liabilities Rs 10,000. The normal rate is 20% in the similar business. Find out the Average profit if
the goodwill is valued at `48,000 at four years’ purchases of Super Profits.

Q17 Calculate the Goodwill in the following cases:

i) The goodwill of the firm is to be calculated at three year purchase of average profits of last
five years which are as follows:
Year 2012 2013 2014 2015 2016
Profits 10,000 15,000 4,000 5,000(loss) 6,000
ii) The capital employed of the firm is Rs1,00,000 and the normal rate of return is 10%,the
average profits of last 5 years are Rs 12,000 and the goodwill is to be valued at capitalization
of average profit method.
iii) Rama Brothers earn an average profit of Rs 30,000 with a capital of Rs 2,00,000 .The normal
rate of return of the business is 10%.Using capitalization method of super profits method,work
out the value of goodwill in the firm.
Q18 Pass the Journal Entries in following cases:

a)The value of Furniture is to be increased to Rs25,000.(Given book value of Furniture is Rs10,000)

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b)Stock is found overvalued by 4,000

c)A bill of Rs300 of Power Charges was omitted to be recorded.Now it is to entered in books of accounts.

d)Rent of Rs3,000 are still outstanding.

e)Accrued Income Rs15,000 to be provided for.

f)Typewriter of Rs12,500 now to be recorded in books of accounts.

Q19. Madan & Krishan are partners sharing profits in the ratio of 1:1.Their balance sheet as at 31st
march,2019 was as follows:

Liabilities Rs Assets Rs
Sundry creditors 30,000 Cash 4,000
General reserve 18,000 Debtors 30,000
Outstanding Expenses 10,000 Cash at bank 56,000
Bills payable 30,000 Machinery 24,000
Bank Overdraft 20,000 Building 57,000
Furniture 12,000
Capital A/c:
Madan
45,000
Krishan 75,000
30,000

1,83,000 1,83,000
They decided to admit Ram as a partner for 1/3th share on the following terms:
e) Machinery, Building & Furniture be depreciated by 5%.
f) A provision of 5% to be created for doubtful debts.
g) A goodwill of Rs30,000 be valued in the books of the firm.
h) Ram brings Rs45,000 as capital ,but unable to bring his share of goodwill.
i) Capital of remaining partners to be adjusted on the basis of Ram’s capital in their new profit
sharing ratio & any excess or deficiency be done through cash acc.

Prepare Revaluation A/c ,Partners capital ac & Balance sheet.

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