KENDRIYA VIDYALAYA SANGATHAN, GURUGRAM REGION

FIRST PRE-BOARD EXAMINATION - 2022-23 (WINTER STATION KVs)

CLASS:- XII MAX MARKS: 80

SUBJECT: - ACCOUNTANCY TIME: 3 HOURS
ACC/2022-23/WIN/PB-1/SET 1

General Instructions:
 This Question Paper contains two parts – A and B. There are 34 questions in the
question paper. All questions are compulsory.
 Question no. 1 to 16 and 27 to 30 carries 1 mark each.
 Question nos. 17 to 20 and 31-32 carries 3 mark each.
 Question nos. 21, 22 and 33 carries 4 mark each.
 Question nos. 23 to 26 and 34 carries 6 mark each.

Q.N QUESTION MA
O. RKS
PART – A
Accounting for Partnership Firms and Companies
1 In case of fixed capitals, partners will have 1 1
a) Credit balances in their Capital Accounts
b) Debit balances in their Capital Accounts
c) Credit or debit balances in their Capital Accounts
d) Credit balance or nil balance in their Capital Accounts
or
In case of fluctuating capitals, partners will have
a) Credit balances in their Capital Accounts
b) Debit balances in their Capital Accounts
c) Credit or debit balances in their Capital Accounts
d) Credit balance or nil balance in their Capital Accounts
2 Arun Ltd. forfeited 200 equity shares of ₹ 10 each on which ₹ 8 was paid 1
(including ₹ 1 premium). On reissue, the company can allow ₹______as
discount.
a) 7
b) 8
c) 3
d) 2
3 State any two factors affecting value of goodwill of the firm. 1
4 A company issued 10,000 shares of ₹ 10 each at par for which Application 1
were received for 50,000 shares. Amount called up:-On application ₹ 4 each,
on allotment ₹ 3 and remaining amount on final call. Shares were allotted on
pro-rata basis. Excess money will be refunded. After utilization for allotment
 and final call. The Bank A/c will be credited with ₹_______
a) 1,60,000
b) 1,00,000
c) 60,000
d) None of the above
5 Share of goodwill of the retiring partner is debited to remaining partners in 1
their
(a) Old profit sharing ratio
(b) New profit sharing ratio
(c) Gaining ratio
(d) Sacrificing ratio
6 State (True or False) 1
Reserve capital A/c is the account where excess amount of forfeited shares is
transferred.
Or
While issuing ___________ type of Debentures, company doesn’t give any
undertaking for the repayment of money borrowed by issuing such
debentures.
a) Zero coupon rate Debentures
b) Non-Convertible Denentures
c) Secured Debentures
d) Non-Redeemable Debentures
7 Economic relationship among/between partners end at the time of: 1
(a) Admission of a partner/partners
(b) Death of a partner/partners
(c) Retirement of a partner
(d) Dissolution of partnership firm
Or
State any one difference between dissolution of partnership firm and
dissolution of partnership.
8 A and B shared profits and losses in the ratio of 3:2. With the effect from 1st 1
April, 2022, they agreed to share profits equally. The goodwill of the firm was
valued at ₹ 30,000. Pass the necessary journal entry for the treatment of
goodwill.
a) A’s Capital A/c Dr. 3,000
To B’s Capital A/c 3,000

b) A’s Capital A/c Dr. 18,000

B’s Capital A/c Dr. 12,000
To Goodwill A/c 30,000

c) B’s Capital A/c Dr. 3,000

To A’s Capital A/c 3,000
 d) None of the above
9 Varun Ltd. issued a prospectus inviting applications for 2,000 shares. 1
Applications were received for 3,000 shares and pro- rata allotment was
made to the applicants of 2,500 shares. If Mr. Shinchen has been allotted 40
shares, how many shares he must have applied for?
a) 40
b) 32
c) 48
d) 50
Or
ABC Ltd. took over the assets of ₹ 7,60,000 and liabilities of ₹ 80,000 of Y Ltd.
for purchase consideration of ₹ 5,85,000 ; payable by the issue of 12%
debentures of ₹ 100 each at a discount of 10%. The number of debentures to
be issued is:
a. 6600
b. 6500
c. 4500
d. 5400
10 Debentures are shown in the balance sheet of the company under the head 1
of
a. Non-current liabilities
b. Current liabilities
c. Share capital
d. None of the these
11 Self-generated goodwill is not recognized in the books of accounts. 1
(a) AS- 3
(b) AS-6
(c) AS-26
(d) AS-23
12 Doremon and Nobita are partners. Doremon draws a fixed amount at the 1
beginning of every month. Interest on drawings is charged @ 8% p.a. At the
end of the year interest on Doremon’s drawings amounts to ₹ 2,600. Monthly
drawings of Doremon were :
a) ₹ 8,000
b) ₹ 60,000
c) ₹ 7,000
d) ₹ 5,000
13 X, Y and Z are partners sharing profit and losses in the ratio 5:3:2. Z retires. 1
Calculate new profit-sharing ratio , if Z’s share taken up entirely by X.
a) 1:1
b) 3:7
c) 7:3
d) None of the above
OR
 A, B and C are partners sharing profits in the ratio of 7:5:4 . C died on 30th
June, 2022 and profits for the year 2021-22 were ₹ 24,000. C’s share in profit
will be ______.
a) 6,000
b) 1,500
c) 8,000
d) None of the above
14 A partnership firm earned divisible profit of ₹ 5,00,000, interest on capital is 1
to be provided to partner is ₹ 3,00,000, interest on loan taken from partner is
₹ 50,000 and profit sharing ratio of partners is 5:3.
Sequence the following in correct way
I. Distribute profits between partners
II. Charge interest on loan to Profit and Loss A/c
III. Calculate the net profit transferred to Profit and Loss Appropriation
A/c
IV. Provide interest on capital
(a) [ ii, iii, iv, i ]
(b) [i, iii, iv, ii]
(c) [ii, iv, i, iii]
(d) [iii, i, iv, ii]
15 Match items in List I with items in List II using the codes given below - 1
List I List II
A. Partner’s Current A/c 1. Dissolution of Partnership
B. Goodwill Account 2. Admission of a partner
C. Partner’s Drawings A/c 3. Fixed capital of partners
D. Realisation A/c 4. Goods taken by a partner for
self consumption

Codes:
(a) A-1, B-4; C-2; D-3 (b) A-3; B-2; C-4; D-1
(b) A-1; B-2; C-4; D-3 (d) A-3, B-4; C-2; D-1

16 Assertion (A):- Commission provided to partner is shown in Profit and Loss 1

A/c.
Reason (R):- Commission provided to partner is charge against profits and is
to be provided at fixed rate.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
17 MRF Ltd. issued 600, 11% debentures of ₹ 1000 each on 1-1-2021. Pass 3
necessary journal entries for the issue of debentures in the following
situations:
(a) When debentures were issued at a discount of 5% and were
 redeemable at a premium of 8%.
(b) When debentures were issued at a premium of 10% and were
redeemable at a premium of 6%.
OR
The authorized capital Suhani Ltd. is ₹ 45,00,000 divided into 30,000 shares of
₹ 150 each. Out of these company issued 15,000 shares of ₹ 150 each at a
premium of ₹ 10 per share. The amount was payable as follow:
₹ 50 per share on application,
₹ 40 per share on allotment (including premium),
₹30 per share on first call and balance on final call.
Public applied for 14,000 shares. All the money was duly received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule VI
Part –I of the Companies Act 2013, disclosing share Capital. Also prepare
notes to accounts for the same.
18 Mohan, Sohan and Rohan are partners in a firm. Their drawings are : 3
(1) Mohan draws ₹ 4,000 in the beginning of every month.
(2) Sohan draws ₹ 4,000 in the middle of every month.
(3) Rohan draws ₹ 4,000 at the end of every month
Calculate interest on Partners’ drawings @ 10% p.a. for the year ended 31st
March, 2022.
OR
A and B started a partnership business on 1st April 2021 the contributed ₹
6,00,000 and ₹ 400000 respectively as their capitals. The terms of the
partnership agreement on as under :
1. Interest on capital and drawings at the rate 6% per annum
2. B is to get a monthly salary of ₹ 2500
3. Sharing of profit or loss will be in the ratio of their capital contribution.
The profit for the year ended 31st March 2022 before making above
appropriations was ₹ 2,07,400. The drawings of A and B were ₹ 48,000 and
40,000 respectively. Interest on drawing amounted to ₹ 1500 for A and
₹1,100 for B. Prepare Profit and Loss appropriation account, assuming that
their capitals are fluctuating.
19 Read the following hypothetical text and answer the given questions: 3
Amit and Mahesh were partners in a fast-food corner sharing profits and
losses in ratio 3:2. They sold fast food items across the counter and did home
delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹
80,000 respectively.
At the end of first year their profit was ₹ 1,20,000 before allowing the
remuneration of ₹ 3,000 per quarter to Amit and ₹ 2,000 per half year to
Mahesh. Such a promising performance for first year was encouraging;
therefore, they decided to expand the area of operations.
For this purpose, they needed a delivery van, a few Scotties and an additional
person to support. Six months into the accounting year they decided to admit
Sundaram as a new partner and offered him 20% as a share of profits along
 with monthly remuneration of ₹ 2,500. Sundaram was asked to introduce
₹1,30,000 for capital and ₹ 70,000 for premium for goodwill. Besides this
Sundaram was required to provide ₹ 1,00,000 as loan for two years.
Sundaram readily accepted the offer. The terms of the offer were duly
executed and he was admitted as a partner.
(i) Remuneration will be transferred to _______________ of Amit and
Mahesh at the end of the accounting period.
a. Capital account.
b. Loan account.
c. Current account.
d. None of the above.
(ii) Upon the admission of Sundaram the sacrifice for providing his
share of profits would be done:
(a) by Amit only.
(b) by Mahesh only.
(c) by Amit and Mahesh equally.
(d) by Amit and Mahesh in the ratio of 3:2.
(iii) Sundaram will be entitled to a remuneration of _____________at
the end of the year.
20 The average net profits Expected of the firm in future are ₹ 68,000 per year 3
and capital invested in the business by the firm is ₹ 3,50,000. The rate of
interest expected from capital invested in this class of business is 12%. The
remuneration of the partners is estimated to be ₹ 8,000 for the year. You are
required to find out the value of goodwill on the basis of 2 years purchase of
super profits.
21 Pass journal entries for the following transactions in the books of X, Y and Z 4
sharing profits in the ratio of 3:2:1 at the time of dissolution of firm:
a. There was a balance of ₹ 18,000 in the general
reserve on date of dissolution.
b. Realisation Expenses ₹ 1,000 borne by partner X and paid by
firm.
c. Y, a partner, took a machine of ₹ 20,000 at an agreed value of ₹
22,000.
d. Z , a partner, agreed to take creditor of ₹ 30,000 for
₹ 20,000.
22 Nidiya limited was incorporated on 1st April 2022 with registered office in 4
Mumbai. The capital clause of memorandum of Association reflected a
registered capital of 8,00,000 equity shares of ₹ 10 each and 1,00,000
preference shares of ₹ 50 each.
Since some large investments were required for building and machinery the
company in consultation with vendors, Ms.VPS Enterprises, issued 1,00,000
equity shares and 20,000 preference shares at par to them in full
consideration of assets acquired. Besides this the company issued 2,00,000
equity shares for cash at par payable as ₹ 3 on application, ₹ 2 on allotment,
 ₹ 3 on first call and ₹ 2 on second call.
Till date second call has not yet been made and all the shareholders have
paid except Mr. Ajay who did not pay allotment and calls on his 300 shares
and Mr. Vipul who did not pay first call on his 200 shares. Shares of Mr. Ajay
were then forfeited and out of them 100 shares were reissued at ₹ 12 per
share.
Based on above information you are required to answer the following
questions.
(i) Shares issue to vendors of building and machinery, Ms. VPS
Enterprises, would be classified as:
a. Preferential Allotment
b. Employee Stock Option Plan
c. Issue for Consideration other than cash
d. Right Issue of Shares
(ii) How many equity shares of the company have been subscribed?
a. 3,00,000 b. 2,99,500 c. 2,99,800 d. None of these
iii) What amount of share forfeiture would be reflected in the balance
sheet?
a. ₹600 b. ₹900 c. ₹200 d. ₹ 300
23 A and B are partners sharing profits and losses in the ratio of 3:2. Their 6
Balance Sheet on 31st December ,2021 stood as under:

Liabilities Amount Assets Amount

₹ ₹
Capital : Machinery 66,000
A 70,000 Furniture 30,000
B 60,000 Investments 40,000
General Reserve 20,000 Stock 46,000
Bank loan 18,000 Debtors 38,000
Creditors 72,000 Less - Provision for 4,000 34,000
d/debts
Cash 24,000

Total 2,40,000 Total 2,40,000

On this date they admitted C for 25% share in a profits on following terms :
C brings in ₹ 14,000 for in share of goodwill and further cash to make his
capital proportionate to make to his share of profit.
Depreciate furniture by 10%
Half of investments were to be taken over by A and B in their profit sharing
ratio and remaining valued at ₹ 26,000
New Profit Sharing Ratio will be 3:3:2
Prepare Revaluation A/c, Partners’ Capital A/c.
OR
 A,B and C are partners sharing profit and losses in the ratio of 2:2:1
respectively. The Balance sheet of the firm as at 31st March 2022 was as
follows:
Liabilities Amount Assets Amount
Capital a/c Stock 12,500
A 12,500 Machinery 17,500
B 15,000 Motor van 4,000
C 20,000 47,500 Buildings 22,500
Creditors 10,000 Bank 1,250
Bills payable 2,000 Debtors 8,000
General reserve 6,000 Less:prov.for d/d 250 7,750
65,500 65,500

B retires on 1st April 2022, on the following conditions:

a) Provision for doubtful debts to be increased by ₹ 975
b) Stock to be appreciated by 20% and building by 10%
c) Machinery to be depreciated by 10% and motor van by 15%
d) Goodwill of the firm to be valued at ₹ 9,000.
e) The capital of continuing partner are to be adjusted in new profit sharing
ratio between A and C as 3:2.
f) Excess or short fall if any to be transferred to their respective current
account.
Prepare Revaluation A/c and partners’ capital A/c .
24 AXN ltd. Invited application for issuing 1,00,000 equity shares of ₹ 10 each at 6
a premium of ₹ 6 per share. The amount was payable as follows:
On application : ₹ 4 per share (including 2 per share)
On allotment : ₹ 5 per share (including 2 per share)
On first call : ₹ 4 per share (including 2 per share)
On Second or final call : Balance Amount.
The issue was fully subscribed.
Kumar, the holder of 400 shares did not pay the allotment money and Ravi
the holder of 1,000 shares paid his entire share money along with allotment
money. Kumar’s shares were forfeited immediately after allotment.
Afterwards first call was made. Gupta, a holder of 300 shares failed to pay the
first call money. Second and final call was not made.
Pass necessary journal entries for the above transactions in the books of the
company.
OR
A limited company was registered with an authorised capital of ₹ 2,00,000 in
₹ 10 shares. Of these, 6,000 shares were issued as fully paid to the vendors
for the purchase of buildings. 8,000 shares were subscribe for by the public
and during the first year Rs 6 per share were called up, payable ₹ 3 on
 application, ₹1 on allotment ,₹ 1 on first call and ₹ 1 on second call. The
amount received in respect of these shares were as follows:
on 6,000 shares the full amount called
on 1,200 shares ₹ 5 per share
on 500 shares ₹ 4 per share
on 300 shares ₹ 3 per share
Show the journal entries in the books of the company for issuing shares to
the public.
25 A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 6
2019. Entry for treatment of goodwill after his death was passed as follows:-

B’s Capital A/c Dr. 1,80,000

C’ Capital A/c Dr. 1,20,000
To A’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at the time of death of partner)

A’s profit till date of death was estimated as ₹ 1,20,000, based on the average
profits of past three years. Final dues payable to A’s executors on the date of
death was calculated as ₹ 8,40,000 out of which ₹ 2,40,000 was paid
immediately by giving him Furniture valued for the same and balance was to
be paid in three equal annual instalments starting from 30 June, 2020,
together with interest rate as specified in Section 37 of Indian Partnership
Act, 1932..
Pass necessary entry for profit share to be credited to A’s Capital and also
prepare A’s executors account till final settlement.
26 KY Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 6
20,000, 8% Debentures of ₹ 100 each as part of capital employed.
The company need additional funds of ₹ 55,00,000 for which they decided to
issue debentures in such a way that they got required funds after issuing
debentures of the same class as earlier, at 10% premium. These debentures
were to be redeemed at 20% premium after 4 years. These debentures were
issued on 01 October, 2021.
You are required to
(a) Prepare Loss on Issue of Debentures Account assuming there was existing
balance of Securities Premium Account of ₹ 2,80,000.
(b) Pass entries for Interest on debentures on March 31, 2022 assuming
interest is payable on 30 September and 31 March every year.
Part B: Analysis of Financial Statements
27 Debt equity ratio is 1:2. Impact of conversion of debentures into equity on 1
ratio will ____ the ratio:
a) Improve
b) Reduce
c) No change
d) Can’t say
 OR
Which of the following will have no effect on debt equity ratio?
a) Purchase of fixed asset by taking long term loan
b) Conversion of debentures into shares
c) Issue of bonus shares
d) Sale of fixed assets at a loss
28 Which of the following is not Cash or Cash Equivalents 1
a) Cash in hand
b) Demand Deposit
c) Bank Borrowings
d) Investment which is maturing within2 months from the date of acquisition
29 State any one objective of ‘Analysis of Financial Statements’. 1
OR
Contingent Liabilities are exhibited under the heading:
(a) Fixed Liabilities
(b) Current Liabilities
(c) As a footnote
(d) None of these
30 Insurance Claim received by Albert Co. Ltd. of ₹ 5,00,000 for Loss of 1
Machinery due to theft will be recorded in Cash Flow Statement in which of
the following manner?
a) Added under operating activities as extraordinary item and subtracted
from operating activities also.
b) Subtracted under operating activities as extraordinary item and added
to operating activities also.
c) Added under operating activities as extraordinary item and outflow
under investing activity also.
d) Subtracted under operating activities as extraordinary item and inflow
under investing activities also.
31 Explain any three limitations of Ratio analysis. 3
32 Classify the following items under Major heads and Sub-head (if any) in the 3
Balance Sheet of a Company as per schedule III of the Companies Act 2013.
(i) Current maturities of long term debts
(ii) Furniture and Fixtures
(iii) Mining rights
33 Mudra Ltd. is in the process of preparing its Balance Sheet as per Schedule III, 4
Part I of the Companies Act, 2013 and provides its true and fair view of the
financial position.
(a) Under which head and sub-head will the company show ‘Stores and
Spares’ in its Balance Sheet
(b) What is the accounting treatment of ‘Stores and Spares’ when the
Company will calculate its Inventory Turnover Ratio?
(c) The management of Mudra Ltd. wants to analyses its Financial
Statements. State any two objectives of such analysis
 Or
(a) From the following information, calculate Proprietory Ratio:
Share Capital ₹ 2,50,000 ; Reserves & Surplus ₹ 1,50,000 ; Non-current
Assets ₹ 11,00,000 ; Current Assets ₹ 5,00,000.
(b) From the following details obtained from the financial statements of
Maruti Ltd. calculate ‘Current Ratio’.
Non-Current Assets : ₹ 150,000,000 ; Current Assets : ₹ 25,000,000
Share Holders Fund: ₹ 95,000,000 ; Non-Current Liability : ₹ 65,000,000
34 1) Following is the balance sheet of Solar power Ltd as at 31.03.2022 6
Particulars Note 31.3.2022 31.03.2021
no
Equities and liabilities
1. Shareholder’s fund :
(a) Share capital 24,00,000 22,00,000
(b) Reserves and Surplus 6,00,000 4,00,000
2. Non current liabilities
Long term borrowings 4,80,000 3,40,000
3. current liabilities
(a) trade payables 3,58,000 4,08,000
(b) short term provisions 1,00,000 1,54,000
Total 39,38,000 35,02,000
ASSETS
Non current assets
(a) fixed assets :
(i) Tangible 21,40,000 17,00,000
(ii) Intangible 80,000 2,24,000
current assets
(a) Current investment 4,80,000 3,00,000
(b) Inventories 2,58,000 2,42,000
(c) Trade receivables 3,40,000 2,86,000
(d) Cash and cash equivalent 6,40,000 7,50,000
Total 39,38,000 35,02,000
Notes to account:
S N Particulars 31.3.2022 31.03.2021
Reserve and surplus
Surplus P/L 6,00,000 4,00,000
Tangible assets
Machinery 25,40,000 20,00,000
Less accumulated depreciation (4,00,000) (3,00,000)
Intangible assets
Goodwill 80,000 2,24,000
Additional information:-During the year a piece of machinery costing ₹
48,000 on which accumulated depreciation was ₹ 32,000 was sold for ₹
 12,000
Prepare cash flow statement.