G.D.

Goenka Public School, Siliguri

XII / TERM- I / 055 / ACCOUNTANCY/ 2020-2021

Duration- 3 Hours Maximum Marks-80

Name: Sec:_ Roll No.:_ Date:

Signature of Invigilator: ____________________________________________

General Instructions
 This question paper contains 11 printed pages.
 This question paper contains two parts – A and B.
 All the questions are compulsory.
 All parts of a question should be attempted at one place.
 Workings should form part of your answer.
PART A

(Accounting for Partnership Firms)

1. If equal amount is drawn at the end of each quarter, for what period the interest on total
drawings will be calculated? [1]
2. Why is Goodwill considered as an “Intangible Asset” but not a fictitious asset”? [1]
3. Why is revaluation Account prepared? Give two reasons. [1]
4. A and B are partners. A withdrew some amount for his personal use at the mid of every month
during the year ended 31st March, 2018. The interest on drawings charged by the firm at the
rate of 5% p.a. was 3,000. Calculate the amount withdrawn by the partner A. [1]
5. Ankur, Bhaskar and Calvin are partners sharing profits and losses in the ratio 5:5:2. Calvin dies
on 31 March 2018. Accounts are closed on 31 December every year. Sales for the year 2017
amounted to 18,00,000. Sales from 1 January 2018 to 31st March 2018 amounted to
7,20,000. The profit for the year 2017 amounted to 90,000. What will be the share of the
deceased partner in the profit for the year?

a. 6,000

b. 15,000

c. 30,000

d. 36,000 [1]

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6. State the order of payment of the following, in case of dissolution of partnership firm.

i. to each partner proportionately what is due to him/her from the firm for advances as
distinguished from capital (i.e. partner’ loan);

ii. to each partner proportionately what is due to him on account of capital; and

iii. for the debts of the firm to the third parties;

[1]
7. Anshu, Avishi and Shivam are partners sharing profits in the ratio of 5:3:2. They decided to
share future profits in the ratio of 2:3:5 with effect from 1st April,2018. They had the following
balance in their balance sheet, passing necessary Journal Entry show the effect:

Particulars Amount ( )

Profit and Loss Account (Dr) 50,600

[1]
8. Riya, Ronit and Sejal were partners in a firm sharing profit and loss in the ratio of 8:7:5. On 5th
November 2019, Riya died. Riya’s share of profits till the date of her death was calculated at
8,700. Pass the necessary journal entry.
[1]
9. A and B are in partnership sharing profits and losses in the ratio of 3:2. They admit C into
partnership with 1/5th share which he acquires equally from A and B. Calculate new profit
sharing ratio .
[1]
10. If a firm prefers Partners’ Capital Accounts to be shown at the amount introduced by the
partners as capital in firm then entries for salary, interest, drawings, interest on capital and
drawings and profits are made in _______________.
[1]
11. As per Section 37 of Indian Partnership Act, 1932, the executors would be entitled at their
choice to the interest calculated from the date of death till the date of payment on the final
amount due to the deceased partner at __________ percent per annum.
[1]
12. Sanskriti and Shaily are partners in a firm without any partnership Deed. Their capitals are
15, 00,000 and 10, 00,000 respectively. Sanskriti is an active partner and looks after the
business. Sanskriti wants that profit should be shared in proportion of capitals. State with
[1]
reasons whether her claim is valid or not.

13. The firm of Subham and Umang was dissolved on 1.3.2019. According to the agreement,
realisation expenses of 20, 000 were to be borne and paid by Subham. Journal entry to be
recorded for the payment of dissolution expenses will be ___________________.

a. Debit Realisation Account and Credit Bank Account with 20,000

b. Debit Realisation Account and Credit Subham’s Account with 20,000

c. Debit Subham’s Account and Credit Bank Account with 20,000

d. No Entry

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 [1]
14. On April l, 2018, a firm had assets of 1,00,000 excluding stock of 20,000. The current
liabilities were 10,000 and the rest constituted Partners Capital Accounts. If the normal rate of
return is 8%, the Goodwill of the firm is valued at 60,000 at four years purchase of Super
Profit, find the actual profit of the firm.

OR

On March 31, 2017 after the close of accounts, the capitals of Mountain, Hill and Rock stood
in the books of the firm at 4,00,000, 3,00,000 and 2,00,000, respectively. Subsequently, it
was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year
amounted to 1,50,000 and the partner’s drawings had been Mountain: 20,000, Hill 15,000
and Rock 10,000.
[3]
Calculate interest on capital.
15. P, Q, R and S were partners in a firm sharing profits in the ratio of 5:3:1:1. On 1st January,
2017, S retired from the firm. On S’s retirement the goodwill of the firm was valued at
4,20,000. The new profit sharing ratio between P, Q and R will be 4:3:3. Showing your
working notes clearly, pass necessary journal entry for the treatment of goodwill in the books
of the firm on S’s retirement. [3]
16. A partnership firm earned net profit during the last three years are as follows:
Year 2014-15 2015-16 2016-17
Profits( ) 1,90,000 2,20,000 2,50,000
The capital employed in the firm throughout the above mentioned period has been 5,00,000.
Having regard to the risk involved, 15% is considered to be a fair return on the capital. The
remuneration of all the partners during this period is estimated to be 80,000 p.a. Calculate the
value of goodwill on the basis of :
i) Two years of purchase of super profit
ii) Capitalization of average profit
[4]
17. P, Q and R sharing profits and losses in the ratio of 3:2:1, decided to share future and losses in
the ratio of 4:3:2 with effect from 1st April 2019. Following an extract of their balance sheet as
at 31st March, 2019.
Liabilities Amount Assets Amount

Workmen compensation fund 60000

Show the accounting treatment under the following cases.

i. If there is no other information.

ii. If a claim on account of workmen’s compensation is estimated at 24000.

iii. If a claim on account of workmen’s compensation is estimated at 96000.

iv. If a claim on account of workmen’s compensation is estimated at 60,000.

OR

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 Kartik and Kabir are partners in a firm sharing profits in the ratio of 2:3. The balance sheet of
the firm as on 31st March 2019 is given below. Balance sheet as at 31st March 2019
Liabilities Amount Assets Amount

Creditors 6200 Bills receivable 3600

Bills payable 1800 Stock 16000
Capital A/cs Machinery 18400
Kartik 16000 Land and Building 10000
Kabir 24000
48000 48000
The partners decided to share profits in equal ratio with effect from 1st April 2019.The
following adjustments were agreed upon.
i) Land and building was valued at 16000 and machinery at 16400 and were to be
appeared at revalued amount in the balance sheet.
ii) The goodwill of the firm was valued at 800 but was not to appear in the books. Pass
necessary journal entries to give effect to the above.

[4]
18. Tanvi, Nandini and Cherry are partners sharing profits and losses in the ratio of 5:3:2. Their
balance Sheet as at 31st March 2019 was a follows:-
Liabilities Assets
Sundry creditors 29,000 Goodwill 24,000
Provision for Doubtful Debtors 80,000
Debts 5,000 Investments 30,000
Capitals:- Land and building 1,42,000
Tanvi 1,40,000 Machinery 50,000
Nandini 90,000 Patents 4000
Cherry 76,000 3,06,000 Cash at bank 10,000

3,40,000 3,40,000
Cherry retired on the above date as per the following condition:-
(i) Goodwill of the firm is to be valued at three years Purchase of the average profits
of the last five years which were .20,000; 12,000; 30,000; 6,000(loss)
and 34,000 respectively.
(ii) Machinery is to be reduced to 40,000 and patents are valueless.
(iii) There is no need of any provision for doubtful debts.
(iv) An unclaimed liability included in creditors of 2,000 is to be written off.
(v) Out of the total insurance premium paid 1,000 be treated as prepaid.
(vi) Investments are revalued at 16,000 and these are taken by Cherry at this value.
Prepare Revaluation Account,Capital A/c and the opening Balance sheet of Tanvi and Nandini.
[6]
19. On 1st April, 2019, Sun, Moon and Sky entered into partnership with capitals of 60,000,
50,000 and 30,000 respectively.
Sky advanced 10,000 as loan to the partnership firm on 1st October, 2019. The Partnership
Deed has the following clauses:
(i) Interest on capital is to be allowed @6% p.a.
(ii) Sun and moon to get salary of 400 and 500 per month respectively.
(iii) Interest on drawings is to be charged @ 6% p.a. Each partner withdrew 4,000 at the end
of each quarter commencing from 30th June, 2019.
(iv) Interest on loan was allowed to Sky @ 6% p.a.
(v) Moon is to get rent of 3,000 per month for use of his building by the firm. It is paid to him
Page 4 of 11
 by cheque at the end of every month.
(vi) Profits are shared in the ratio of 4:2:1 up to 70,000 and above 70,000 equally.
Profit of the firm for the year ended 31st March, 2020 (before the above adjustments) was
1,35,000.
Prepare Profit and Loss Appropriation Account and Capital Accounts of Partners if Capitals are
fixed.
OR
Dolu, Molu and Bolu are partners in a firm. On 1st April, 2018 their capital accounts stood at
4,00,000; 3,00,000 and 2,00,000 respectively. They shared profits and losses in the
proportion of 5:3:2. Partners are entitled to interest on capital @ 10% per annum and salary to
Molu and Bolu @ 2,000 per month and 3,000 per quarter respectively as per the provisions
of the partnership deed.
Molu’s share of profit (excluding interest on capital but including salary) is guaranteed at a
minimum of 50,000 p.a. Any deficiency arising on that account shall be met by Bolu. The
profits of the firm for the year ended 31st March, 2019 amounted to 2,00,000. Prepare Profit
and Loss Appropriation Account and Partner’s Capital Accounts for the year ended on 31st
March, 2019.
[6]
20. The Balance Sheet of Madhu and Vidhi who are sharing profits equally as at 31st March, 2017
is given below :
Liabilities Assets
Madhu’s Capital 2,50,000 Land & Building 3,10,000
Vidhi’s Capital 2,16,000 Furniture 1,10,000
Sundry Creditors 1,04,000 Bills receivable 45,000
Debtors 75,000
Bank 30,000
5,70,000 5,70,000
On 1st April, 2017, they admitted Prerna as a new partner for 1/3rd share in the profits on the
following conditions:
(i) Prerna will bring 3,00,000 as her capital and 50,000 as her share of goodwill premium,
half of which will be withdrawn by Madhu and Vidhi.
(ii) Debtors to the extent of 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be
created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of 5,000 will be
created for the same.
Prepare Revaluation Account and Partner’s capital Accounts.
OR

Arbaaz, Birbal and Chintan were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-
2019 their Balance sheet was as follows:

Balance Sheet of Arbaaz, Birbal and Chintan as on 31-3-2019

Liabilities Amount ( ) Assets Amount ( )

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 Creditors 87,000 Bank 17,000

General reserve 21,000 Debtors 23,000

Capitals: stock 1,10,000

Arbaaz 60,000 Furniture & Fittings 10,000

Birbal 40,000 Machinery 38,000

Chintan 20,000 1,20,000 Investments 30,000

Total ( ) 2,28,000 Total ( ) 2,28,000

On the above date Dhaval was admitted as new partner with a capital of 70,000 and it was
decided that :– 4 (Updated 2

(i) The new profit sharing ratio between Arbaaz, Birbal, Chintan and Dhaval will be 2:1:1:1.

(ii) Goodwill of the firm was valued at 90,000 and Dhaval brought his share of goodwill
premium in cash.

(iii) The Market value of investments was 23,000

(iv) Machinery will be reduced to 31,000

(v) A Creditor of 5,000 was not likely to claim the amount and hence to be written off. [8]

Prepare Revaluations Account, Partner’s Capital Accounts .

21. Girija and Ganesh were partners in a firm sharing, profits and losses in the ratio of 2 : 3. On
31st March, 2017 their Balance Sheet was as follows :

Liabilities Assets

Creditors 80,000 Cash at bank 20,000

Bank Overdraft 50,000 Debtors 55,000

Less; Provision for

doubtful debts 2,000
53,000

Girija’s Brother Loan 77,000 Stock 78,000

Ganesh Loan 28,000 Investments 89,000

Investment fluctuation Building 2,50,000

Fund
15,000

Capitals:

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 Girija 1,50,000 Profit and loss Account

Ganesh 1,00,000 2,50,000 10,000

Total 5,00,000 5,00.000

On the above date the firm was dissolved. The assets were realized and the liabilities were paid
off as follows :

(a) Debtors of 6,000 were proved bad.

(b) Girija agreed to pay off her brother’s Loan.

(c) One of the creditors for 10,000 was paid only 3,000 in full settlement of his account.

(d) Buildings were auctioned for 1,80,000 and the auctioneer’s commission amounted to
8,000.

(e) Ganesh took over part of stock at 4,000 (being 20% less than the book value).Balance of
the Stock was handed over to the remaining creditors in full settlement of their account.

(f) Investments realized 9,000 less.

(g) Realisation expenses amounted to 17,000 and were paid by Ganesh.

Prepare Realisation Account, Partners’ Capital Accounts and Bank Account

OR

Give the necessary journal entries for the following transactions on dissolution of the firm of
Aman and Rajat on 31st March, 2016, after the transfer of various assets (other than cash) and
the third party liabilities to Realisation Account. They shared profits and losses in the ratio of
2 : 1.

(a) There was a bill of exchange of 10,000 under discount. The bill was received from Derek
who became insolvent.

(b) Bills payable of 30,000 falling due on 30th April, 2016 were discharged at 29,550.

(c) Creditors of 30,000 took over stock of 10,000 at 10% discount and the balance was
paid to them in cash.

(d) There was an old typewriter which had been written off completely. It was estimated to
realize 600. It was taken away by Rajat at 25% less than the estimated price.

(e) Stock were taken over by Aman at 7200(10% less than the book value) for cash

(f) Out of the total debtor of 12,000, 1000 proved to be bad.

(g) Aman agreed to take over the responsibility of completing dissolution at an agreed
remuneration of 1,000 and to bear all realization expenses. Actual realisation expenses 800

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 were paid by the firm.

(h) Loss on realization was 54,000. [8]

PART B

(Analysis of Financial Statements)

22. What will be the effect on current ratio if Trade payable is discharged on maturity? Explain. [1]

23. If Operating ratio of a company is 77.58%, the operating profit ratio would be ___________. [1]

24. The detailed and accurate type of analysis done by the management of the enterprise to
determine the financial position and operational efficiency of the organization is known as
__________.

a. External Analysis

b. Static Analysis

c. Internal Analysis

d. Horizontal Analysis
[1]
25. In case if the current ratio of a business is 0.8:1, state if payment of final dividend already
declared _______ the current ratio.

a. will improve

b. will decline

c. will have no impact on

d. may or may not impact [1]

26. Whether the following statement is True or False: Comment.
[1]
‘A Common-size Statement is also known as 100% Statement.’

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27. State the importance of financial analysis for Employees and Trade Unions. [1]

28. Which of the following is used as a tool for analysis of financial statements?

a) Cash Flow Statement

b) Ratio Analysis

c) Comparative Statements

d) All of the above

[1]
29. (a) From the following details calculate Interest Coverage Ratio:

Net profit after tax - 7,00,000

6% debentures of 20,00,000

Tax Rate 30%

(b) A company has Current Ratio of 4:1 and Quick Ratio is 2.5:1. If inventory is of 90,000,
find out Total Current Assets and Total Current Liabilities.

OR

Under which major heads and sub-heads will the following items be placed in the Balance
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

(iv) Loose Tools [4]

30. Calculate the Gross Profit Ratio and Working Capital Turnover Ratio from the following:

Revenue from Operations 30,00,000

Cost of Revenue from Operations 20,00,000

Current Assets 6,00,000

Current Liabilities 2,00,000

Paid up Share Capital 5,00,000

OR

(a) Revenues from Operations: Rs. 4,00,000; Gross Profits = 25% on cost; Opening inventory
is 1/3 of the closing inventory. Closing inventory is 30% of Revenues from operations.

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 Calculate Inventory Turnover Ratio.

(b) Net Profit after Tax 70,000; 15% Long Term Loans 4,00,000; Shareholder’s Fund
2,40,000; Tax Rate 50%. Calculate R.O.I. [4]

31. Prepare Common -Size Statement of Profit and Loss from the following for the year ended 31st
March, 2019:

Revenue from Operations 25,00,000

Cost of Materials Consumed 7,80,000

Other Expenses 5,80,000

Interest on Investment 60,000Accountancy

Tax Payable @50%

OR

With the help of the following information from the books of Yinod Limited. Prepare
Comparative Statement of Profit and loss for the year ended 31st March 2019:

Particulars 2018-19 2017-18

Revenue from operations 36,00,000 20,00,000

A. Cost of material 1/3 of the Revenue from 50% of the Revenue from
consumed operations operations

B. Other expenses 20% of the cost of material 10% of the cost of material
consumed consumed

Tax rate 50% 50%

[4]
32. (a)
Neha Ltd. Reported surplus in profit and loss statement of 1,95,000 for the year ended 31st
March,2019 after considering the following:

(a) Tax paid during the year 5,000

(b) Amortization of Goodwill 12,000
(c) Transfer to General Reserve 2,000
(d) Profit on sale of land 5,000
(e) Provision for doubtful debts 5,000
(f) Depreciation on Plant &Machinery 36,000
(g) Interest on Borrowings 8,400
You are required to calculate cash from operating Activities before working capital changes.

(b) (i) what is meant by ‘cash flow from operating Activities?

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(ii) what is meant by ‘Cash and Cash Equivalent’?

(iii)Give two examples of cash flow from operating activities. [6]

End of Paper

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