KV NO.

4 JRC
PERIODIC TEST-I
CLASS - XII
2021-22
ACCOUNTANCY

TIME: 1 Hour 30 minutes Max. Marks- 20

21. On January 1, 2020, a business firm had assets of ₹1,50,000 including cash of ₹10,000.
The partners Capital Account showed a balance of ₹12,000 and the reserve constituted the
rest. If the normal rate of return is 10% and the goodwill of the firm is valued at ₹48,000 at
four years purchase of super profits. Find the average profits of the firm.
OR
X, Y and Z are partners sharing profits in the ratio of 4:4:2. Y retires and a new profit sharing
ratio between X and Y is agreed at 2:3. They also decided to record the effect of the
following without affecting their book values:

Particulars ₹

General Reserve 1,50,000

Advertisement Suspense Account 20,000

Profit & Loss A/c (Dr.) 50,000

Contingency Reserve 1,10,000

You are required to give the necessary single adjusting entry. 3 Marks

22. Asha and Bony are partners in a firm sharing profits equally. Their capital accounts as on
December 31, 2020 showed balances of ₹60,000 and ₹50,000 respectively. After taking into
account the profits of the year 2020, which amounted to ₹20,000, it was subsequently found
that the following items have been left out while preparing the final account of the year ended
2020.
(a) The partners were entitled to interest on capitals @6% p.a.
(b) The drawings of Asha and Bony for the year 2020 were ₹8,000 and ₹6,000
respectively. The interest on drawings was also to be charged @ 5%p.a.
(c) Asha was entitled to a salary of ₹5,000 p.a. and Bony, a commission of ₹2,000 for the
whole year.
It was decided to make the necessary adjustments to record the above omissions. Give the
necessary adjustment entry. 4 Marks
23. Ramesh and Mohan commenced business on 1st April 2019 with capitals of ₹5,00,000
and ₹7,50,000 respectively. The terms of agreement were:
(a) Profits and Losses will be shared by the partners as 40% and 60%.
(b) Partners are entitled for interest on capital @10% p.a.
(c) Interest on drawings shall be charged @ 9% p.a.
(d) Ramesh will get 10% of the full profit and Mohan will get 10% of the divisible profit
as commission.
Profit for the year ending on 31st March 2019 was ₹2,60,000 before charging interest on
capital and drawings. Ramesh withdrew ₹10,000 each at the end of every quarter and Mohan
withdrew ₹20,000 p.a.
Prepare Profit & Loss Appropriation Account and Partners Capital Accounts. 5 Marks

24. Sunita and Ruby share profits in the ratio of 5:3. They admit Rakhi for ¼ th share. New
ratio was decided at 5:3:1. On that date of admission balance sheet of the firm was as follows:

Liabilities ₹ Assets ₹

Capitals: Machinery 52,000

Sunita 60,000 Furniture 36,000
Ruby 40,000 1,00,000 Stock 20,000
Workmen Compensation Debtors 16,000
Reserve 8,000 Bank 12,000
Bank Loan 24,000
Creditors 4,000

1,36,000 1,36,000

Terms of Rakhi’s admission were as follows:

(a) Rakhi will bring ₹50,000 as capital and is unable to bring premium for goodwill.
(b) Goodwill of the firm is to be valued at 4 years purchase of the average super profit of
the last three years. Average profit of the last three years are ₹40,000; while the
normal profits that can be earned with capital employed are ₹24,000.
(c) Furniture is to be appreciated by ₹14,320 and the value of stock to be reduced by
20%.
(d) Create 10% provision for doubtful debts and 5% provision for discount on debtors.
(e) Create 2% reserve for discount on creditors.
Prepare Revaluation Account, Partners Capital Account and Balance Sheet.

OR
P, Q and R were partners sharing profits and losses in the ratio of 2:3:5 respectively. The
Balance Sheet of the firm on 31st March 2021:

Liabilities ₹ Assets ₹

Sundry Creditors 70,000 Bank 45,000

Capitals: Debtors 40,000
P 80,000 Less: Provision 5,000 35,000
Q 70,000 Stock 50,000
R 60,000 2,10,000 Building 1,40,000
Profit and Loss A/c 10,000

2,80,000 2,80,000

R retired on that date due to the following conditions:

(a) Building was overvalued by 40%.
(b) Salary outstanding ₹5,000 was to be recorded and creditors ₹4,000 will not be paid.
(c) The provision for Doubtful Debts to be 20% on debtors.
(d) Goodwill of the firm is valued at ₹72,000 and R’s share of goodwill to be adjusted in
the Capital account of P and Q.
(e) R was to be paid ₹15,000 through bank and the balance was to be transferred to his
loan account.
Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the firm after the
retirement of R. 8 Marks