Air Force School, Ambala

Half Yearly examination 2022-23

Class : XII
Subject : Accountancy (055)
Time Duration: 3 hrs M.M. 80
Instructions:
1. Question Paper is divided into 2 parts: Part A and Part B
2. Q1 to 10 and Q 21 to 23 carry 1 mark each.
3. Q11 to 12 and Q 24 carry 3 marks each.
4. Q13 to 16 and Q 25 to 26 carry 4 marks each.
5. Q17 to 18 and Q 27 carry 6 marks each.
6. Q19 to 20 carry 8 marks each.
PART A
Q1. Which account will be debited?
(a) Cash Account
(b) Realisation Account
(c) Capital Account of Partner
(d) Profit &Loss A/C
Q2.A,B and C are partners with profit sharing ratio of 4:3:2.B retired and goodwill was
valued Rs1,08,000.If A&C share profits in 5:3,find out thegoodwill shared by A and C in
favour of B.
(a) Rs 22,500 and Rs13,500 (b) Rs16,500 and Rs19,500
(c) Rs67,500 and Rs40,500 (d) Rs19,500 and Rs16,500
Q3. A, B and C share profits and losses of the firm equally. B retires from business and his
share is purchased by A and C in the ratio of 2:3. Newprofit sharing ratio between A and
C respectively would be:
(a) 1:1 (b) 2:2 (c) 7:8 (d) 3:5

Q4.A, B and C are partners sharing profits in the ratio of 3:2:1. They agree to admit D
into the firm. A, B and C agreed to give 1/3rd,1/6th,1/9th share oftheir profit. The share
of profit of D will be :
a) 1/10 b)11/54 c)12/54 d)13/54

Q5.On dissolution of a firm, out of the proceeds received from the sale of assets
…………Will be paid first of all:
(a)Partner’s Capital (b)Partner’s Loan to firm
(c) Partner’s additional Capital (d)Outside Creditors

Q6. A and B were partners in a firm sharing profits or loss in the ratio of 3:5. With effect
from 1April 2019, they agreed to share profits or losses equally. Due to change in profit
sharing ratio, A’s gain or Sacrifice will be :
a) Gain 3/8 b)Gain 1/8 c)Sacrifice 3/8 d)Sacrifice 1/8

Q7 X,Y and Z are Partners sharing profits in the ratio of 5:4:3.X has given to Za
guarantee of minimum Rs10,000 profit. For the year ending 31 st March 2019, firm’s profit
is Rs28,800. X’s share in profit will be :
a) 9200 b)9600 c) 7200 d)12000
 Q8. On the death of a partner, his share in the profits of the firm till the date of his death is
transferred to the:
a)Debit of Profit and loss A/c (b)credit of Profit and loss A/c
(c)Debit of Profit and loss suspense A/c (d)Credit of Profit and loss suspense A/c

Q9. X and Y are partners in a firm having no partnership deed. X and Y have contributed
Rs.500000 and Rs.800000 respectively as capitals. Y claims interest @ 6% p.a. on excess
capital of Rs.300000. X does not want to give any interest. State giving reason who is correct
in this case
a)X is correct b) Y is correct c) Both are wrong d) None of these
Q10. Which one of the following items is recorded in the profit and loss appropriation
account?
a) Interest on loan to a partner
b) Partner’s salary
c) Rent paid to a partner
d) Manager’s Commission
Q11. X , Y and Z are partners sharing profits in the ratio of 3:2:1 . From 1 st April ,2019 they
decide to share future profits in the ratio of 2:3:1. The Partnership Deed provides that in the
event of any change in profit-sharing ratio, goodwill will be valued at three years’s purchase
of the averages of five years’s profit.
The profits and looses of the past five years are:
Profit: I -Rs 1,20,000 Profit IV- Rs 3,80,000
Profit II-Rs 3,00,000 Loss V- Rs 1,40,000
Profit III-Rs 3,40,000
Pass the necessary Journal entries to record the above changes.

Q12. X ,Y and Z were partners in a firm. On 1st April ,2018,their fixed capitals were Rs 50,000,
Rs 25,000 and Rs 25,000 respectively. As per the Partnership Deed:
a. Z was entitled for salary of Rs 5,000 p.a.
b. All the partners were entitled to interest on capitals at 5% p.a.
c. Profits were to be shared in the ratio of capitals.
Net Profit for the year ended 31st March,2018 of Rs 33,000 and 31st March ,2019 of Rs
45,000 was divided equally without complying the above terms.
Y noted the above errors and brought them to the notice of other partners.
Pass the adjustment Journal entry to rectify the above errors.

Q13. X, Y and Z are partners. their capitals being Rs.300000, Rs.250000 and Rs.200000
respectively. In arriving at these figures, the profits for the year ended 31 st March,2020
Rs.240000 has already been credited to the partners in the proportion in which they share
profits. Their drawings were X Rs.50000,Y Rs40000 and Z Rs.30000 for the year ending 31 st
march,2020.Subsequently the following omissions were noticed and it was decided to bring
them into account.
(i) Interest on capital @10% p.a.
(ii) Interest on drawings X Rs.2500, Y Rs2000 and Z Rs.1500
Make the necessary journal entry

14.a) Vipin, David and Mrinal are partners in a trading firm contributingRs20,000 each to
the capital of the firm. Under the partnership deed in the event of death of a partner the
partners were entitled to:
Profit up to the date of death be based on the average profits of last 3 years .
David died on 1.1.2019. The profits for the three years ending 31.3.2016, 31.3.2017 and
31.3.2018 were Rs 21,200; Rs 3,200(loss) and Rs9,000 respectively.
Calculate the amount of profit to be paid to David’s executors.

b)
Date Particulars Dr Cr
2018 Cash A/C Dr 1,50,000
(i) To Raman’s Capital A/C
April To -------------------------- 1,00,000
1st (being amount of premium for goodwilland 50,000
capital brought in by Raman)
Premium for Goodwill A/C Dr -----------
(ii) To Naman’s Capital A/C ----------
To Shaman’s Capital A/C ----------
(being premium for goodwill distributed
between old partners on the basis of their
sacrificing ratio,i.e. 2:3)
_______________ Dr.
(iii) _______________ Dr.
To ________________
(being half of amount of premium for
goodwill withdrawn by old partners)

Q15. Q. Mudit and Uday are partners in a firm sharing profits in the ration 2:3. Their capital
accounts as on April 1, 2019 showed balances of Rs. 70,000 and Rs.60,000 respectively.
The drawings of Mudit and Uday during the year 2019-20 were 16,000 and 12,000
respectively. Both the amounts were withdrawnon 1st January 2016. It was subsequently
found that the following items had been omitted while preparing the final accounts for the
year ended 31st March 2020.
(a) Interest on capital @6% p.a.
(b) Interest on drawings @ 6% p.a.
(c) Mudit was entitled to a commission of Rs. 4,000 for the wholeyear.
Showing your working clearly, pass a rectifying entry in the books of the firm
Q16. X, Y, Z are partners sharing profit and losses in the ratio of 5:3:2. With effect from 1
April 2019, they decided to share profits and losses in the ratio of 2:3:5.
On that date, their balance sheet showed following balances:
General Reserve : Rs 90,000
Workmen Compensation Reserve : Rs 10,000
Advertisement Suspense A/c : Rs 40,000
They decided to carry these balances in the balance sheet. Pass the adjusting entry.
Q17. A and B are partners in a firm sharing Profits in the ratio of 7:3 . Their Balance Sheet as
on 31st March ,2019 was as follow:

Liabilities Amount Assets Amount

Sundry Creditors 60,000 Cash 36,000
Outstanding Wages 9,000 Debtors 54,000
General Reserve 15,000 Less: Provison for
Capital A/cs Doubtful Debts 6000 48,000
A 1,20,000 Stock 60,000
B 1,80,000 3,00,000 Furniture 1,20,000
Machinery 1,20,000

3,84,000 3,84,000
On 1st April ,2019 ,C was admitted for 1/4th share in the profits on the following terms :
a. C will bring Rs 90,000 as his capital and Rs 30,000 as his share of goodwill premium ,
half of which will be withdrawn by A and B.
b. Debtors Rs 4500 will be written off and provision for doubtful debts will be maintained at
5%on debtors.
c. Outstanding wages will be paid.
d. Stock will be reduced by 10%, furniture by Rs 1500 and machinery by 8%
e. Investments of Rs 7500 not shown in the Balance Sheet will be recorded.
f, A creditor of Rs 6300 not recorded in the books was to be taken into account.

Pass Necessary Journal Entries for the above transaction in the books of the firm on C’s
Admission.

Q18. Pass necessary Journal entries on the dissolution of a firm in the following cases:
a) Dissolution expenses Rs.1100 were paid by partner “A” on behalf of the firm.
b) Partner “B” agreed to carry out the dissolution process for a remuneration of Rs.2000. He
also agreed to bear the dissolution expenses. Dissolution expenses were Rs.2100.
c) Partner “D” agreed to carry out a dissolution for a Remuneration of Rs.15,000. Dissolution
expenses were Rs.13,000 which were paid by the firm.
d) Partner “F” was appointed to look after dissolution of the firm for a remuneration of
Rs.9000. He also agreed to pay the dissolution expenses. “F” took furniture of Rs.9000 as his
remuneration.

Q19. On 31st March 2020, the Balance Sheet of A and B , who were sharing profits in the
ratio or 3:1 was as follow :
Liabilities Amount Assets Amount
Employee’s Provident Fund 17000 Cash 6100
Investment Fluctuation Debtors 50000
Reserve 4100 Less:Provision (2000) 48000
Workmen Compensation 6000 Stock 15000
Fund Investments 7000
Capitals : Goodwill 40000
A 54000
B 35000 89000

1,16,100 1,16,000
They decided to admit C for 1/4th share, C shall bring proportionate capital.
1.Bad Debts amounted to Rs 30,000. Markets value of investment is Rs 4,500
2.Liability on account of Workmen’s Compensation Reserve amounted to Rs 2,000.
3.Goodwill of the firm was valued at Rs.64,000. Goodwill account was to be raised and
written off.
Prepare Revaluation Account , Partners Capital Account and Balance Sheet of the
reconstituted firm.

Q20. Jain and Gupta were partners sharing profits in the ratio of 3:2 . Their balance sheet on
March 31st 2020 was as follows:
Liabilities Amount Assets Amount
Creditors 20,000 Cash 14800
Bills Payable 3,000 Debtors 20500
Bank Overdraft 17,000 Less: Prov. for bad debts (300) 20,200
Reserve 15,000 Stock 20,000
Jain’s Capital 70,000 Plant 40,000
Gupta’s Capital 60,000 Buildings 70,000
Motor Vehicle 20,000
The agreed to admit Mishra for 1/4th Share from 1.4.2020 subject to the following terms :
a. Mishra to bring in capital equal to 1/4th of the total capital of Jain and Gupta after all
adjustments including premium for goodwill.
b. Buldiing to be appreciated by Rs14,000 and stock to be depreciated by Rs6,000.
c. Provision for Bad Debts on Debtors to be raised to Rs 1,000.
d. A provision to be made for Rs. 1800 for outstanding legal charges.
e. Mishra brings his share of goodwill/premium Rs 10,000.
Prepare Revaluation Account , Partner’s Capital Account and the Balance sheet of the new
firm on Mishra’s admission.

PART B
CASE BASED QUESTION
Use the following data to answer question no 21-23.
PARTICULARS AMOUNT
Share Capital 10,00,000
Total Current Liabilities 1,00,000
Stock 50,000
Opening Debtors 86,000
Closing Debtors 1,17,000
Total Sale 1,04,500
Total Cash Sales 3,000

Additional Information – Total Current Assets Rs 2,00,000

Q21. Average Debtors :

a. 1,01,500 b. 2,00,000
c. 1,10,000 d. None of these
Q22. Net Credit Sales :
a. 1,01,500 b. 1,04,500
c. 1,07,600 d. None of these
Q23. Current Ratio :
a. 2:1 b. 3:2
b. 1:1 d. None of these

Q 24 From the following information , calculate Cash Flow from Investing Activities :

PARTICULARS 31.03.2015 (Rs) 31.03.2014 (Rs)

Machinery ( At cost) 5,00,000 3,00,000
Accumulated Depreciation 1,00,000 80,000
Land 70,000 1,00,000
Furniture 50,000 40,000
Additional Information : During the years , a machine costing Rs 50,000 with its accumulated
depreciation of Rs 35,000 was sold for Rs 12,000.
Q25. From the following information, calculate Debt to Equity Ratio and Total Asset to Debt
Ratio :
Equity Share Capital 2,00,000 Current Assets 8,80,000
10% Pref. Share Capital 3,00,000 12%Debenture 16,00,000
Reserve and Surplus: 2,50,000 Current Liabilities 6,80,000
(General Reserve)
Surplus ; Bal in St. of P &L 1,50,000 Fixed Asset (Tangible) 21,00,000
Long Term trade 2,00,000
Investments

Q26 Under what heading will you show the following items in the financial statement of a
company :
i) Capital reserve iv) Vehicles
ii) Bonds issued by the company v) Goodwill
iii) Loans repayable on demand vi) Loose tools
Q27. From the following Balance Sheet of Vikas Ltd. As at 31 ST March ,2010 and 31st March,
2009 , prepare Cash Flow Statement :
PARTICULARS NOTE 31.3.2010 (RS) 31.3.2009(Rs)
NO
I.EQUITY AND LIABILITIES ,
1. Shareholder’s Funds
a. Share Capital 1,30,000 90,000
b. Reserves and Surplus 1. 84,000 48,000
2. Current Liabilities
Trade Payable 22,000 17400
TOTAL 2,36,000 155400
II. ASSETS
1.Non-Current Assets 1,66,000 93400
Fixed Assets
2.Current Assets
a. Inventories (Stock) 26,000 22,000
b. Trade Receivable (Debtors) 39,000 36,000
c. Cash 5,000 4,000

TOTAL 2,36,000 155400

Notes to Accounts
PARTICULARS 31.3.10 31.3.09
1.Reserve and Surplus
General Reserve 55,000 30,000
Surplus i.e Bal in the Statement of Profit and Loss 29,000 18,000

84,000 48,000

Prepare a Cash Flow Statement after taking into accounts the following adjustments:
a. Depreciation charged on Fixed Assets for the year 2009-10 was Rs 20,000
b. Income Tax Rs 5,000 has been paid in advance during the year.