G.D.

GOENKA PUBLIC SCHOOL, VASANT KUNJ

PRE-BOARD EXAMINATION-TERM 1,2021-22
CLASS XII
ACCOUNTANCY (055)

Time: 90 Minutes Max Marks: 40

General Instructions:
Read the following instructions very carefully and strictly follow them:
1. This question paper comprises two PARTS – I and II. There are 55 questions in the
question paper.
2. Both Part-I & Part-II are compulsory for all candidates.
3. There is an internal choice provided in each Section.
I. Part-I, contains three Sections -A, B and C. Section A has questions from 1 to 18
and Section B has questions from 19 to 36, you have to attempt any 15
questions each in both the sections.
II. Part I, Section C has questions from 37 to 41. You have to attempt any four
questions.
III. Part II, contains two Sections – A and B. Section A has questions from 42 to 48,
you have to attempt any five questions and Section B has questions from 49 to
55, you have to attempt any six questions.
5. All questions carry equal marks. There is no negative marking.
6. Specific Instructions related to each Part and subdivisions (Section) is mentioned
clearly before the questions. Candidates should read them thoroughly and
attempt accordingly.

Accountancy - XI/2021-22/Page 1 of 15
 PART-I
SECTION - A
Instructions: From question number 1 to 18, attempt any
15 questions.

1. Ravi and Vimal are partners in a firm sharing profits in the ratio of 3:2. An
extract of their Balance Sheet is as follows:
Liabilities ₹ Assets ₹

Investments 40,000
If half of the investments are taken over by Ravi and Vimal in their profit
sharing Ratio at book value, what amount of investment will be shown in the
revised Balance Sheet?

(A) ₹75,000
(B) ₹35,000
(C) ₹95,000
(D) ₹20,000

2. Reserve Capital is not a part of:

(A) Authorised Capital

(B) Subscribed Capital
(C) Unsubscribed Capital
(D) Issued Share Capital

3. Vimal Ltd. forfeited a share of ₹50 issued at a premium of 20% for

non-payment of first call of ₹15 per share and final call of ₹5 per share. At
what minimum price it can be reissued:

(A) ₹50
(B) ₹30
(C) ₹40
(D) ₹20

4. The Directors of Vina Ltd. forfeited 70,000 Equity Shares of ₹10 each, ₹10
called up, for non-payment of final call of ₹1 per share. Half of the forfeited
shares were reissued at ₹20 per share fully paid up. On reissue of forfeited
shares, the following amount will be transferred to the Capital Reserve
Account:
(A) ₹70,000
(B) ₹1,40,000
(C) ₹6,30,000
(D) ₹3,15,000

Accountancy - XI/2021-22/Page 2 of 15
5. A Company invited applications for 1,00,000 shares and it received
applications for 1,50,000 shares. Applications for 30,000 shares were
rejected and the remaining shares were allotted on prorata basis.
How many shares an applicant for 3,000 shares will be allotted:

(A) 2,500 Shares

(B) 3,600 Shares
(C) 4,500 Shares
(D) 2,000 Shares

6. Farha, Siya and Abhi share profits equally. They decide that in future Abhi
will get 1/5th share in profits. On the day of change Firm’s goodwill is
valued at ₹30,000. What will be the effect of this change:

(A) Abhi’s loss ₹5,000; Gain of Siya and Farha ₹10,000 each.
(B) Farha’s gain ₹10,000; Loss of Siya and Abhi ₹5,000 each.
(C) Abhi’s loss ₹4,000; Gain of Farha and Siya ₹2,000 each.
(D) Farha’s gain ₹4,000; Loss of Siya and Abhi ₹2,000 each.

7. Veer is the manager in a partnership firm and is entitled to receive a salary

of ₹8,000 per month and a commission of 5% on Net Profit after charging
such commission. Profit for the year is ₹13,56,000 before charging salary and
commission. The commission of Veer is:

(A) ₹67,800
(B) ₹64,571
(C) ₹63,000
(D) ₹60,000

8. On admission of a partner, which of the following items the Balance Sheet is

transferred to the credit of Capital Accounts of old partners in the old profit
sharing ratio, if Capital Accounts are maintained following Fluctuating
Capital Accounts Method:

(A) Deferred Revenue Expenditure

(B) Profit and Loss Account (Debit Balance)
(C) Profit and Loss Account (Credit Balance)
(D) Balance in Drawings Account of Partners

9. Pick the odd one out with respect to Fixed Capital Account:

(A) Capital Introduced

(B) Interest on Capital
(C) Capital withdrawn
(D) None of these

Accountancy - XI/2021-22/Page 3 of 15
10. In case of Admission of a Partner, the entry for Unrecorded Investments is:

(A) Debit Partners’ Capital A/cs and Credit Investments A/c.

(B) Debit Revaluation A/c and Credit Investments A/c.
(C) Debit Investments A/c and Credit Revaluation A/c.
(D) None of the above.

11. Which one of the following is NOT an essential feature of a partnership:

(A) There must be an agreement

(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners.

12. Amount of old goodwill already appearing in the books will be written off:

(A) in old ratio

(B) in new ratio
(C) in sacrificing ratio
(D) in gaining ratio

13. Capital employed in a business is ₹2,00,000. The normal rate of return on

capital employed is 15%. During 2021, the firm earned a profit of ₹48,000.
The company calculates goodwill on basis of 3 year’s purchase of super
profit. On the basis of information, match the following:

Column I Column II

a. Normal Profits (i) 54,000

b. Actual Profits (ii) 18,000
c. Super Profits (iii) 48,000
d. Goodwill (iv) 30,000

(A) (a)—(i), (b)—(iii), (c)—(iv), (d)—(ii)

(B) (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)
(C) (a)—(iv),(b)—(iii), (c)—(ii), (d)—(i)
(D) (a)—(iv), (b)—(iii), (c)—(i), (d)—(ii)

14. When a company has not called up the total nominal (face) value of the
share, it is known as:
(A) Issued Capital
(B) Unissued Capital
(C) Subscribed and Fully paid up
(D) Subscribed but not fully paid up

Accountancy - XI/2021-22/Page 4 of 15
15. On Equity Shares dividend is proposed by the Board of Directors every year
but rate of dividend is fixed on:

(A) Debentures
(B) Equity Shares
(C) Loan to outsiders
(D) Preference Shares

16. The profits for last 3 years were:

1st year = ₹ 6,000 (including abnormal gain ₹2,000)
2nd year = ₹4,000 (after charging abnormal loss ₹3,000)
3rd year = ₹2,500 (including abnormal income ₹ 1,500)
Calculate goodwill on the basis of 3 years’ purchase of last 3 years profits
and losses.

(A) ₹12,500
(B) ₹12,000
(C) ₹13,000
(D) ₹16,000

17. Kunal and Ravi are partners sharing profits in the ratio of 4:1. Their
capitals were ₹90,000 and ₹70,000 respectively.
They admitted Kuldeep for 1/3rd share in the future profits. Kuldeep
brought ₹1,00,000 as his capital. Firm’s Goodwill is:

(A) ₹40,000
(B) ₹1,40,000
(C) ₹3,00,000
(D) ₹2,60,000

18. A new partner may be admitted to a partnership:

(A) With the consent of all partners

(B) With the consent of two third of old partners
(C) With the consent of any one of the partners
(D) Without consent of old partners

SECTION - B
Instructions: From question number 19 to 36, attempt any 15 questions.

19. Partners A, B and C share the profits of a business in the ratio of 3:2:1
respectively. They admit D who brings in ₹60,000 for his share of goodwill.
A, B, C and D decide to share the profits respectively in the ratio of 5:3 :2:2.
Credit will be given to:

Accountancy - XI/2021-22/Page 5 of 15
 (A) A ₹6,000; B ₹6,000
(B) A ₹30,000; B ₹18,000; C ₹12,000
(C) A ₹30,000; B ₹20,000; C ₹10,000
(D) A ₹30,000; B ₹30,000

20. At the time of Admission of a new partner, the following adjustment

related to asset was found:
“Stock is overvalued by 10%, ₹66,000 Book value”. Actual value of
stock is:

(A) ₹66,000
(B) ₹59,400
(C) ₹60,000
(D) ₹72,600

21. Match the following with respect to journal entries for treatment of
goodwill:
Column I Column II

a.Incoming partner brings (i) No Entry

his share of goodwill

b.Incoming partner does not (ii)Premium for Goodwill A/c Dr.

bring his share of goodwill Incoming Partner’s Current A/c Dr.
To Sacrificing Partners CapitalA/c
c.Incoming partner pays his (iii)Premium for Goodwill A/c Dr.
share of goodwill privately To Sacrificing Partners Capital A/c

d.Incoming partner brings (iv)Incoming Partner’s CurrentA/c Dr.

only a part of his share of To Sacrificing Partners Capital A/c
goodwill

(A) (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

(B) (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)
(C) (a)—(iv), (b)—(i), (c)—(iii), (d)—(ii)
(D) (a)—(iii), (b)—(iv), (c)—(i), (d)—(ii)

22. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R):

Assertion(A): New partner Shivani was admitted to the firm. As she is

the new partner she does not have the right on the Assets of the firm
till she earns them.
Reason(R): According to Section 31 of the Indian Partnership Act,

Accountancy - XI/2021-22/Page 6 of 15
 1932, as a person is admitted as a partner he acquires the right to
share in the assets of the firm.

In the context of the above statements, which one of the following is

correct?

(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 and R is false
(D) A is false and R is true

23. Extract of Balance Sheet

Liabilities ₹ Assets ₹

Debtors 4,00,000
(–) Provision for
Doubtful Debts (20,000) 3,80,000

Provision is to be maintained @ 10% at the time of change in profit

sharing ratio. What is the amount credited/debited in revaluation
account?

(A) Debit ₹40,000

(B) Credit ₹40,000
(C) Credit ₹20,000
(D) Debit ₹20,000

24. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R):

Assertion (A): Sona and Mona enter into the partnership in the profit sharing
ratio 1:2. Mona agrees to bear the deficiency if Sona’s share of profit falls
short of ₹60,000. The profit earned by the firm was ₹1,50,000. Sona asked
to pay Mona the balance ₹10,000 and she agreed to pay the same.
Reason (R): Profit is guaranteed only when the minimum amount of profit is
not earned by the partner.

In the context of the above statements, which one of the following is

correct?

(A) Both Assertion and Reason are correct and Reason is the correct
explanation of Assertion
(B) Both Assertion and Reason are correct but Reason is not the correct

Accountancy - XI/2021-22/Page 7 of 15
 explanation of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true

25. Which of the following statements is true:

(A) Fixed capital account will always have a credit balance.

(B) Current account can have a positive or negative balance.
(C) Fluctuating capital can have a positive or a negative balance
(D) All of the above

26. X, Y and Z are equal partners with fixed capitals of ₹2,00,000, ₹3,00,000
and ₹4,00,000 respectively. After closing the accounts for the year ending
31st March, 2019, it was discovered that interest on capitals @8% p.a. was
omitted to be provided. In the adjusting entry:

(A) Dr.X and Cr. Y by ₹8,000

(B) Cr.X and Dr.Z by ₹8,000
(C) Dr.X and Cr.Z by ₹8,000
(D) Cr.X and Dr.Y by ₹8,000

27. KYC Ltd. purchased Furniture of ₹10,00,000 from AB Ltd. and paid 20% of
the amount by accepting a bill of exchange in favour of AB Ltd. The
remaining amount was paid by issuing Equity Shares of ₹100 each at a
premium of 25% to AB Ltd. No. of Equity Shares to be issued:

(A) 6,000
(B) 6,400
(C) 10,000
(D) 7,000

28. The balance of Share Forfeiture Account can be used to:

(A) provide for discount given at the time of re-issue

(B) write-off preliminary expenses
(C) write-off bad debts
(D) none of these

29. Sumit, Amit and Jatin are partners sharing profits in the ratio of 6:4:1. Jatin
is guaranteed a minimum profit of ₹20,000. The firm incurred a loss of
₹2,20,000 for the year ended 31st March, 2021. What amount of deficiency
will be borne by Sumit and Amit.

(A) ₹10,000 each

(B) ₹20,000 each

Accountancy - XI/2021-22/Page 8 of 15
 (C) ₹24,000 by Sumit & ₹16,000 by Amit
(D) ₹12,000 by Sumit & ₹8,000 by Amit

30. If company wants to calculate amount forfeited on re-issued shares,

then which amongst the given formula will
be used:

(A) Total Amount Forfeited/Number of Share Forfeited

(B) Total Amount Forfeited/Number of Shares
(C) (Number of Share Forfeited/Total Amount Forfeited) ×
Number of Share re-issued
(D) (Total Amount Forfeited/Number of Share Forfeited) ×
Number of Share re-issued

31. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R):

Assertion(A): The Application money received in excess of the allotment

money is always transferred to Calls-in-advance account.
Reason(R): The Application money received in excess of the allotment
money is to be adjusted depending on the terms
that the company is giving on Pro-rata allotment and wishes to adjust the
money on call’s or not if the company is not willing to adjust the money it
can be refunded.

In the context of the above statements, which one of the following is

correct?

(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 and R is false
(D) A is false and R is true

32. Lalit and Tarun are partners sharing Profit and Loss in the ratio 3:2 having
Capital Account balances of ₹50,000 and ₹40,000 on 1st April, 2020. On 1st
July, 2020, Lalit introduced ₹10,000 as his additional capital where-as Tarun
introduced only ₹1,000. Interest on capital is allowed to partners @ 10% p.a.
Interest on capital for the financial year ended 31st March, 2021 will be:

(A) ₹5,750 for Lalit & ₹4,075 for Tarun

(B) ₹5,000 for Lalit & ₹4,000 for Tarun
(c) ₹5,750 for Lalit & ₹4,000 for Tarun
(D) None of the above

Accountancy - XI/2021-22/Page 9 of 15
33. Arrange the following in proper sequence as types of “Share Capital”:
(i) Paid up Capital (ii) Issued Capital (iii) Subscribed Capital
(iv) Called up Capital
Choose the correct option :

(A) (ii) - (iii) - (iv) - (i)

(B) (i) - (ii) - (iii) - (iv)
(C) (i) - (ii) - (iii) - (iv)
(D) (iv) - (i) - (ii) - (iii)

34. Company can utilise securities premium for:

(A) Writing off loss incurred on revaluation of asset

(B) issuing fully paid up bonus shares
(C) Paying divided
(D) Writing off trading loss

35. If vendors are issued fully paid shares of ₹1,25,000 in consideration of net
assets of ₹1,50,000, the balance of ₹25,000 will be credited to:

(A) Securities Premium Reserve Account

(B) Goodwill Account
(C) Capital Reserve Account
(D) Statement of Profit and Loss

36. The subscribed capital of a company is ₹80,00,000 and the nominal value of
the share is ₹100 each. There were no calls in arrear till the final call was
made. The final call made was paid on 77,500 shares only. The balance in
the calls in arrear amounted to ₹62,500. Calculate the final call on share:

(A) ₹7
(B) ₹20
(C) ₹22
(D) ₹25

SECTION - C
Instructions: From question number 37 to 41, attempt any 4 questions.

Question no.’s 37 and 38 are based on the hypothetical situation given

below

A Ltd company was registered with an authorized capital of ₹2,00,000

divided into shares of ₹10 each, of these 6000 shares were issued as
fully paid to the vendors for the purchase of building. 8,000 shares
were subscribed for by the public and during the first year ₹6 per

Accountancy - XI/2021-22/Page 10 of 15
 share were called up, payable ₹3 on Application, ₹1 on Allotment, ₹1
on First Call, and ₹1 on Second Call. The amounts received in respect
of these shares were as follows :
On 6000 shares the full amount called.
On 1200 shares ₹5 per share
On 500 shares ₹4 per share
On 300 shares ₹3 per share
The directors forfeited 800 shares on which less than ₹5 per share had
been paid.

37. What will be the amount of total arrears on the shares forfeited:

(A) ₹1,900
(B) ₹2,900
(C) ₹4,800
(D) ₹2,200

38. What will the amount of share forfeiture:

(A) ₹1,900
(B) ₹2,900
(C) ₹4,800
(D) ₹2,200

Question no.’s 39, 40 and 41 are based on the hypothetical situation

given below

Anil and Sunil are partners in a new start-up providing personal care services
to the citizens of a city. Anil and Sunil are sharing profits and losses in the
ratio of 3:2. Their capital on 31st March,2022 after all the adjustments stood
at ₹1,65,500 and ₹1,27,600 respectively. Profits amounting to ₹50,000 for
the year 2021-22 were distributed after adjusting interest on drawings @12%
p.a. During the year Anil withdrew ₹15,000 at the beginning of every quarter
and Sunil withdrew ₹40,000 during the year. Partnership deed is silent on
interest on drawings but provides for interest on capital @5% p.a. Interest on
Capital has not been provided.

39. What was the amount of interest on Drawings that was charged from Anil
and Sunil:

(A) ₹7,200 and ₹2,400

(B) ₹2,400 and ₹4,500
(C) ₹4,500 and ₹2,400
(D) ₹4,000 and ₹6,000

Accountancy - XI/2021-22/Page 11 of 15
40. What was the balance in their Capital Accounts on 1st April,2021:

(A) ₹1,65,500 and ₹1,27,600

(B) ₹2,00,000 and ₹1,50,000
(C) ₹1,50,000 and ₹2,00,000
(D) None of these

41. Partner’s amount of interest on capital are:

(A) ₹10,000 and ₹7,500

(B) ₹15,000 and ₹7,500
(C) ₹16,000 and ₹6,000
(D) None of these

PART-II
SECTION - A
Instructions: From question number 42 to 48, attempt any 5 questions.

42. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R):

Assertion(A): Net profit after tax means Net profit after interest and Tax
Reason(R): Interest is a tax deductible expense.

In the context of the above statements, which one of the following is

correct?

(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 and R is false
(D) A is false and R is true

43. Which of the following item is not included to the current assets while
calculating current ratio:

(A) Cash and Cash Equivalents

(B) Only Loose Tools
(C) Only Stores and Spares
(D) Both Loose Tools and Stores and Spares

44. The two basic measures of operational efficiency of a company are:

(A) Inventory Turnover Ratio and Working Capital Turnover Ratio
(B) Liquid Ratio and Operating Ratio
(C) Liquid Ratio and Current Ratio
(D) Gross Profit Ratio and Debt Equity Ratio

Accountancy - XI/2021-22/Page 12 of 15
45. If the current ratio of a business is 0.8:1, state the effect of payment of
final dividend already declared on the current Ratio:

(A) will improve

(B) will decline
(C) will have no impact
(D) may or may not impact

46. Choose the correct answer from the options given below:
The type of Analysis which used by the investor to identify whether the firm
is fulfilling his expectations with regard to dividends, capital appreciation,
etc. is known as:

(A) Security Analysis

(B) Dividend Decision
(C) Debt Analysis
(D) Credit Analysis

47. Opening Inventory of a firm is ₹80,000. Cost of revenue from operations is

₹6,00,000. Inventory Turnover Ratio is 5 times. Its closing Inventory will be:

(A) ₹1,60,000
(B) ₹1,20,000
(C) ₹80,000
(D) ₹2,00,000

48. Which of the following item appears as Short-term Provision in the Financial
Statements of a Company:

(A) Interest Accrued but not due

(B) Current Maturities of Long-term Debt
(C) Provision for Employee Benefits
(D) All of the Above

PART-II
SECTION - B
Instructions: From question number 49 to 55, attempt any 6 questions.

49. Current assets of a company were ₹1,00,000 and its current ratio was 2 : 1.
Company paid ₹25,000 to a trade payable. The current ratio after the
payment will be:
(A) 5:1
(B) 2:1
(C) 3:1
(D) 4:1

Accountancy - XI/2021-22/Page 13 of 15
50. Unclaimed dividend appears in a Company’s balance Sheet under the
Sub-head ………………

(A) Short-term Borrowings

(B) Trade Payables
(C) Other Current Liabilities
(D) Short-term Provisions

51. When bad position of the business is tried to be depicted as good, it is

known as ………………………..

(A) Personal Bias

(B) Window Dressing
(C) Price Level Changes
(D) All of the Above

52. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R):

Assertion(A): A low inventory ratio indicates that inventory does not

sell quickly and remains lying in the godown for quite a
long time.
Reason(R): Inventory turnover ratio is a profitability ratio.

In the context of the above statements, which one of the following is

correct?

(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 and R is false
(D) A is false and R is true

Question no.’s 53, 54 and 55 are based on the hypothetical situation

given below:

Opening Inventory ₹3,00,000

Closing Inventory ₹4,20,000
Purchase ₹14,00,000
Wages ₹3,70,000
Carriage Inwards ₹1,50,000
Administrative Expenses ₹84,000
Selling Expenses ₹36,000
Income Tax ₹1,00,000
Profit on sale of fixed assets ₹20,000
Revenue from Operations (Sales) ₹24,00,000

Accountancy - XI/2021-22/Page 14 of 15
 Based on above information you are required to answer the following
questions:

53. Calculate Gross profit Ratio:

(A) 20%
(B) 30%
(C) 40%
(D) 25%

54. Calculate Operating Ratio:

(A) 30%
(B) 25%
(C) 80%
(D) None of these

55. Calculate Net profit ratio:

(A) 15.79%
(B) 16.67%
(C) 17.67%
(D) 18.67%

Accountancy - XI/2021-22/Page 15 of 15