SHREEYADEVI BHAGIRATH RATHI

MAHESHWARIVIDYAPEETH
(An Institution 0f Shree Maheshwari Shikshan Sansthan)
Term-2 Examination (2023-24)
Class: XI Subject: Accountancy
Time: 3 hours Max.Marks: 80
General Instructions:
1. This question paper contains 34 questions All questions are compulsory.
2. Question Nos. 1 to 20 carries 1 mark each
3. Question Nos 21 to 26 carries 3 marks each
4. Question Nos. 27 to 29 carries 4 marks each
5. Question Nos. 30 to 34 carries 6 marks each
Q1. 1
Naman and Aman are partners On 1st April of the year, they contributed capital of ? 50,000
and 60,000 respectively. On 1st January of the year, Naman gave a loan of ? 10,000 and
Aman introduced additional 20,000 as capital to the firm. Both expected interest @ 10%
on loan and capital. The profit for the year amounted to 15,200. The share of protit of
each partner will be:
(a)7,275 each (c) 1,725 each
(b) 7,525 each (d) 7. 225 each
Q2. Sun and Star were partners in a firm shar1ng profits in the ratio of 2:1. Moon was admitted 1
as a neW partner in the firm. New profit sharing ratio was 3:3:2. Moon brought the following
assets towards his share of goodwill and his capital.
Machinery 2,00,000: Furniture 1.20.000: Stock 80,000 and Cash 50,000
it his capital is considered as 3,80,000, the goodwill of the firm will be
(a) 70,000 (c) 2,80,000
(b) 4,50,000 (d) 1,40,000
Q3. A, Band Care partners, sharing profits in the ratio of 3:1:1.It was provided in the deed 1
that C's share of profit willnot be less than 15,000 per annum. Agave a loan of 85,000
to the firm. The loss of the firm for the year was 1,30,000 before payment of interest on
A's loan. The net effect of the above will be
Date Particulars L.F Debit () Credit (
(a) A's Capital A/c Dr. 78,000
B's Capital Alc. .Dr. 26,000
C's Capital A/c. Dr 26,000
To Profit & Loss Appropriation A/c 1,30,000
[Being loss distributed among partners]
(b) A'sCapital A/c. .Dr. 87.000
B's Capital A/c. Dr. 29,000
C's Capital Alc. Dr 29,000
To Profit & Loss Appropriation A/c 1,45,000
[Being loss distributed among partners]
(c) A's Capital A/c. Dr. 1,12,575
B's Capital A/c. .Dr. 37,525
To Profit & Loss Appropriation A/c 1,50,100
[Being loss distributed among partners]
(d) A's Capital A/c. Dr. 82,500
B's Capital A/c. Dr. 27,500
To Profit &Loss Appropriation A/c 1,10,000
Being loss distributed among partners]
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Q4. Cand Dare partners in afirm. The net divisible profit as per profit and loss appropriation 1
tS 2,50,000. The total interest on partners' drawings were 4,000. CIs entied
tOa salary of 4,000 per quarter and D40.000 per annum. The net profit / loss earned
during the year is:
(a) 2.90,000 (c) 3,02,000
(b) 1,98,000 (d) 3,08,000
Q5. 1
Apaar Ltd. forfeited 4,000 shares of 20 each, fuly called up. on which only application
money of 6 has been paid. Out of these 2,000shares were reissued and 8,000 has
been transfered to Capital Reserve. Calculate the rate at which these shares were
reissued.
(a) 20 per share (c) 18 per share
(b) 22 per share (d) 8 per share
OR 1

Acompany forfeited 4000 shares of ? 10 each on which application money of 3 has been
paid. Out of these 1,900 shares were reissued as fully paid up and 1,900 has been
transferred to capital reserve. Calculate the rate at which these shares were reissued.
(a) 10 (c) 9
(b) 11 (d) 8
Q6.
A, Band Care partners sharing profits in the ratio 5:3:2 with fixed capital of 80,000:
Z60,000 and 20,000 respectively. Partners are entitled to interest on their capital @10%
p.a. During the year firm earned a proft of ? 11.200. The amount of interest on capital
payable to A, Band C will be:
(a) 5,600; 3,360; 2,240 (c) 8,000; 6,000: 2,000
(b) 5,600; 4,200; 1,400 (d)1,400; 4,200; 5,600
Q7. X Ltd. made pro-rata allotment of shares of 10 each in the ratio of 3:2. Ram failed to pay 1
both the calls. 2/3rd of the forfeited shares were reissued for 2.200 with maximum
permissible discount of 1,200 as fully paid up shares. Ram must have applied for
shares.
(a) 765 (c) 510
(b) 340 (d) 400
Q8. A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share 1
remaining profits in the ratio of 3:2. Find the profit sharing ratio of A, B, C andD.
(a) 5:5:3:2 (c) 7:7:6:4
(b) 10: 10:9:6 (d) 3:9:8:3
Q9. Hari, Sunil and Anil are partners sharing profits equally which they changed to 2:2:1 w.e.f. 1
1st April, 2022. Their capitals on that date were 5,00,000 each and balance in current
accounts 40,000 (Cr.); 30,000 (Cr.) and 20,000 (Dr.) respectively. On that date,
balances also existed in the books were General Reserve 1,00,000: Workmen
Compensation Reserve 100,000 (Workmen Claim 50.000)
General Reserve and Workmen Compensation Reserve credited to their Capital Accounts
will be:
(a) 50,000; 50,000; 50,000 (c) 60,000; 60,000; 30,000
respectively respectively
(b) 10,000(Dr.); 10,000 (Dr. ): (d) None of these
Z20,000(Cr.) respectively
010. MG Ltd. Forfeited 40 shares of 10each issued at a premium of 40% to Raj who applied 1
for 48 shares. After having paid 6 (including 2 premium), he did not pay
of 2 including 1premium) and on his subsequent failure to pay theallotment money
first call of 3
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2R
 (including 1premium) his shares were forfeited. The amount to be credited to Forteited
Shares Account will be:
(a) 288 (c) 200
(b)192 (d) 160
Q11. At the time of dissolution of a fim,creditors are 1,75,000: firm's capital is 3,00,000; Cash 1

Balance is 25,000. Other Assets realized 3,75,000. Gain/Loss on Realisation wll be

(a) 75,000 (Gain) (c) 1,00,000 (Gain)
(b) 1,00,000 (LOss) (d) 75,000 (Loss)
1
Q12. Harsh, Giraj and Parth were partners sharing profits in the ratio of 2:1:1. Parth retired from
the firm on 1st April, 2022 and Harsh and Giraj decided to share future profits equally. As
on that date, goodwillof the firm was valued at 2,00,000. The amount of goodwill that will
be paid by Harsh to Parth will be:
(a) 50,000 (c) Nil
(b) 75,000 (d) 1,00,000
DIRECTIONS for the Question Nos. 13 to 15:
In each of the questions given below, there are two statements marked as Assertion (A)
and Reason (R). Mark your answer as per the codes provided below:
(a) Both Aand R are true and R is the correct explanation ofA.
(b) Both Aand Rare true but Ris not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
(e) BothA and R are false
Q13. Assertion(A): At the time of retirement free reserve, accumulated profits and losses 1
existing in the balance sheet are transferred to the Capital Accounts of continuing partners.
Reason (R): The partner may decide to use the free reserves, fully or partly, to meet a
possible loss.
Q14. Assertion(A): Unrecorded outstanding repair billat time of death of partner is recorded on 1
debit side of Revaluation Account.
Reason (R): Increase in capital of partner is recorded on credit side of Capital account.
Q15. Assertion(A): A loan from relative of partner is an external liability. 1
Reason (R): It is transferred to Realisation Account.
Read the hypotheticaltext given and answer Question Nos. 16 to 18:
Alpha Ltd. took over the assets of ? 14,32,000 and Liabilities of ? 3,00,000 of Beta Ltd. for
apurchase consideration of 13,68,500. 25,500 were paid by issuing a promissory note
and the balance was paid by issue of equity shares of 100 each at a premium of 25%.
Q16. Calculate the amount of goodwill/capital reserve.
Q17. Calculate the number of shares to be issued to Beta Ltd. 1
Q18. Pass the entry for payment of purchase consideration.
Q19. On April 1st, 2021 an existing firm had assets of 90,000 including cash and goodwillof
25,000 each and liabilities were 10,000. The partners' capital accounts showed a balance
of 60,000 and reserves constituted the rest. If the normal rate of return is 20% and the
goodwill of the firm is valued at 24,000 at 4 years purchase of super profits, find the
average profits of the firm.
Q20. Chhavi, Kavi and Raviare partners in a firm whose books are closed on 31st March each 1
vear. Kavi died on 30th June, 2023 and Chhavi and Ravi decided to share future profits in
2:1.According to the agreement, the share of profit of a deceased partner up to the date of
the death is to be calculated on the basis of the average profits for the last five years. The

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 Kavi's
average profit for the last 5years is 10,800. Pass Journal entry for the treatment of
share of profit till the date of his death.
Q21. Mand Nare two partners in a fim with the capital balances of 1,60,000 and 2,20,000
respectively. The firm had a General Reserve of 40,000, Advertisement Suspense o
10,000, Profit and Loss(Dr) of 5,000. Revaluation profit amounted to 15,000. Ihey
admittedP into the firm for the 1/4th share of profits. He brings capital of 1,80,000.
Calculate the fim's goodwilland P's share of goodwill.
Q22. Ajay, Akshay and Shahrukh are partners. During the year ended 31st March 2023 they 3
withdrew as follows:
() Ajay withdrew ? 6,000 in the beginning of every month for 6 months ending 30
September.
() Akshay withdrew 18,000 in the middle of each half yea.
(ii) Shahrukh withdrew 3,000 on 1st May, 2022: 9,000 on 1st August, 2022;
6,000 on 30th November, 2022 and 6000 on 31st March, 2023.
From above information calculate Interest on drawings of each partner @12% p.a.
Q23. Total of Assets side of the balance Sheet - 25,00,000. Debit Balances in Current Accounts 3
of Naresh and Vikesh - 75,000 and 25,000 respectively. Bank Loan - 8,00,000;
Goodwill - 1,00,000,Trade Investments-25.000; Profit and Loss Account (Dr.) 15,000.
Average pYoits for past 3 years is calculated at 2,50,000; Normal rate of return- 10%.
Based on the above information, Calculate value of Goodwill as per:
(i) Super profit method at 3 years' purchase
(i) Capitalisation of super profit method.
Q24. Pass necessary journal entries in the books of G Ltd. 3
Hari applied for 2,000 shares of 10each at a premium of 3 per share. He was allotted
1,000 shares. After having paid 3 per share on application, he did not pay the allotment
money of 5 per share (including premium) and on his subsequent failure to pay the first
call of 2 per share, his shares were forfeited. These shares were reissued @8 per
share credited as fully paid. Pass journal entries to record forfeiture and reissue of shares.
OR
Healthy Foods Ltd. had authorised capital of 50,00,000, divided into 5,00,000 shares of
10 each. It issued 3,75,000 equity shares for subscription at a premium of 20%
Z4 on application;
payable
5 on allotment and balance on first and final call. The shares were
subscribed, and due amounts were received except allotment money on 25,000 shares.
These shares were forfeited. Later 20,000 of the forfeited shares were reissued at7 paid
up and 50,000 transferred to capital reserve. First and final call was demanded from the
shareholders and was received except on 10,000 shares which was transferred to calls-in
arrears account. Pass the journal entries for forfeiture and reissue of forfeited shares.
Q25. Ravi and Mohan were partners in a firm sharing profits in the ratio of 5: 3. On 31st
March 3
2023 their respective fixed capitals were Ravi 10,00,000 and Mohan 7,00,000. Their
drawings during the yêar were 50,000 each.
While distributing the profits, Interest on capital was provided @10% p.a. and Interest on
drawings was charged @ 6%.
The partnership deed provided for Interest on capital @ 6% p.a. and did not provide for
interest on drawing. Profit for the year amounted to 3,20,000
Pass an adjustment entry.
026. On 1st April, 2012, Vishwas Ghaat Ltd was formed with an authorised capital of
10,00.000 3
divided into 1,00,000 equity shares of 10 each. The company issued prospectus
applications for 90,000 equity shares. The company received applications for 85,000inviting
equity
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 shares. During the first year, 8 per share
Shyam holding 2.000 shares did not pay the were caled Ram holding 1,000 shares and
were forfeited after the first call and later on first call of 2 per share. Shyam's shares
6 per share, 8 called-up. 1,500 of the forfeited shares were re-issued at
Show the following
(i) Share capital in the Balance Sheet of the
the Companies Act, 2013. companyas per Revised Schedule lll Part Ior
(i) Also prepare 'notes to accounts' for the
same.
Q27. Hari, Raam and Bhajo are partners in a firm sharing profits and
losses in the ratio of 5.3:2 4
From 1st April, 2018 they decided to share future profits and losses in the ratio of 2:5:3.
Their Balance Sheet showed a balance of 75.000 in the Profit and Loss Account and a
balance of 15,000 in Investment Fluctuation Fund. For this purpose, it was agreed that:
()) Goodwill of the firm was valued at
3,00,000.
(") That investments (having a book value of 50,000) were valued at 35,000.
(im) That Stock having a book value of 50,000 be depreciated by 10%.
Pass the necessary journal entries for the above in the books of the firm.
Q28. Pop, Lue and Sam were partners in a firm sharing profits in the,ratio of their capital. On 1st 4
April, 2022, their fixed capitals stood at 50,000, 25,000 and25,000 respectively.
As per the provisions of the partnership deed
(i) Lue was entitled fora salary of 5,000
per annum.
(0) Allthe partners were entitled to interest on capital at 5% per annum.
(i0) Sam was entitled to a commission of 8% on profit after Interest on capital and such
commission but before salary.
(iv) Sam was guaranteed a minimum profit of ? 15,000.
The net profit for the year ending 31st March, 2023 was 64,000.
Prepare profit and loss appropriation account. Show your working clearly
Q29. Rita, Nita and Sita were partners sharing Profit &Loss in the ratio 5:3:2. Rita died on 30th 4
June, 2023. Entry for treatment of goodwill after her death was passed as follows:
Date Particulars Dr. (3)
Nita's Capital A/c. .Dr. 2,25,000
Sita's Capital Alc .Dr. 1,50,000
To Rita's Capital A/c 3,75,000
Final dues payable to Rita's executors on the date of death was calculated as Z 10,50,000
out of which 3,00,000 was paid immediately by giving her Furniture valued for the same
and balance was to be paid in four equal half yearly instalments starting from 31t
December, 2023, together with interest rate as specified in Section 37 of Indian Partnership
Act, 1932. Prepare Rita's executors account tillfinal settlement.
Q30. The Koi Mil Gaya Ltd. with a registered capital of 5,00,000'Equity Shares of 10 each, 6

issued 2,00,000 Equity Shares, payable 3 on the application, 2 on the allotment, ? 3on
the first call and 2 on final calI.
The company duly receives the amount due on allotment. One shareholder holding 6,000
shares pays full amount along with the allotment. While five shareholders with a total
holding of 10,000 shares did not pay the first call and another shareholder holding 5,000
shares did not pay final call.
Pass necessary journal entries to record above transactions by opening calls-in-advance
and calls-in-arrears account.
On 31st 6
Q31. Sush, Khush and Dush are partners in a firm sharing profits in the ratio of 5:3:2.
March 2023, their balance sheet was as follows:
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 Balance Sheet as on 31st March, 2023
Wabities.
Creditors
Assets
60,000 Cash at Bank 1,40,000
Employees Provident Fund 40,000 Sundry Debtors 1,60,000
Profit and Loss A/c 1,00,000 Stock 2,40,000
Capital Acs: Investments 2,00,000
Sush 3,00,000 Fixed Assets 3,60,000
Khush 2,50,000
Dush
3,50,000 9,00,000
11,00,000 11,00,000
On the above date Sush retired and it
was agreed that:
) Fixed assets will be reduced to 2,90,000.
i) Aprovision of 5% on debtors for bad and doubtful detbts will be
(i) Stock was to be valued at 2,18,000. Sush took over the created.
(iv) Goodwill of the firm on Sush's retirement was valued at Stock at this value.
8,00,000. Sush's share of
goodwill was treated by debiting Khush and Dush's capital account.
(V) Sush was paid cash brought in by Khush and Dush in
such a way that their
became in profit sharing ratio and a balance of 58,000 was left in bank. capitals
(vi) Khush and Dush will share future profits in the ratio of
2:3.
Pass necessary journal entries and prepare the Balance Sheet of the new
Q32. Akki and Bakkiare in partnership sharing profits and losses in the ratio of 3:2.firm.
Sheet as on 31st March, 2022 were as follows: Their Balance 6
Balance Sheet as on 31st March, 2022
Liabilities Assets
Capital A/cs: Goodwill 5,000
Akki 88,000 Land &Building 30,000
Bakki 1,27,000 2,15,000 Investment 25,000
Workmen Compensation Fund 10,000 (Market Value 22,500)
Investment Fluctuation Fund 5,000 Debtors 50,000
Employees' Provident Fund 5,000 Less: Provision (5,000) 45,000
Kakki's Loan 1,50,000 Stock 1,50,000
Bank Balance 1,25,000
Advertisement Suspense 5,000
3,85,000 3,85,000
On 1st April, 2022, they admit Kakki as a partner on the
following terms:
Akki sacrifices 1/3rd of his share while Bakki sacrifices 1/10th from his
share in favour
of Kakki.
(üi) Kakki's Loan will be converted into his capital.
(ü) Kakkibrings his share of goodwill in cash.
(iv) Goodwill of the firm is.valued at 3,00,000
(v) Land and Building was found undervalued by 25,000, Stock was
found
by 35,000 and Provision for doubtfuldebts is to be made equal to 5% overvalued
of the debtors.
(vi) Claim on account of Workmen Compensation is 5,000. A
debtor whose dues of
25,000 were written off as bad debts, paid 20,000 in full settlement.
(vii) Capital Accounts of the partners are to be readjusted on the basis of
in their profit sharing ratio. Excess or deficiency in capital to be paid orKakki's capital
Prepare Revaluation A/c and Partners' Capital A/c. received.

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 3. Pass Journal entries for the following cases at the 6
time of dissolution.
(a) B, Cand D were partners in a firm sharing profits and losses in the ratio of 1: 4 :5.
The firm showed a loan of 10,000 given by C's brother K. C agreed to pay his
brother's loan.
(b) Bagreed to look after the dissolution work for which he was allowed a remuneration
of 96,000. B also agreed to bear dissolution expenses for which he was allowed a
lump sum payment of 4,000. Actual dissolution expenses were 6,500 and the
same were paid from the firm's cash
(c) Debtors amounting to 1,40,000 were handed over to adebt collection agency
which charged 5% commission. The remaining debtors were 47,000 out of which
debtors of 17,000 could not be recovered because the same becarme insolvent.
(d) Creditors amounting to 5,000 were paid 3,500 in full setlement of their claim and
balance were handed over stock of 90,000 against their claim of 95,000.
(e) Abills receivable 2.000 discounted with the bank was dishonoured by its acceptor.
() Bank loan of 3,00,000 was paid along with interest of 21,000. 6
Q34. Vimal Ltd. issued 30,000 equity shares of 10 each at 30% premium payable as 4 on
Application (Including premium ?1), 24 on Allotment (Including balance premium), 2.5
on First Cal,and 2.5 on Second &Final Call. Applications were received for 60,000
shares and the allotment was made as folows:
a) Applicants of 35,000 shares were allotted 20,000 shares.
b)Applicants of 20,000 shares were allotted 10,000 shares.
Rittik to whom 400 shares were allotted, failed to pay the allotment money and Roshan
who applied for 400 shares from category (b), failed to pay both calls. These shares were
forfeited subsequently. Out of the forfeited shares, company re-issued 500 shares
(including all of Roshan) @ Z8 as fully paid up.
Pass necessary Journal Entries.

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