II - PRE-BOARD EXAMINATION 2023-24

SUB. - ACCOUNTANCY

CLASS – XII

TIME – 2HOURS MAX. MARKS - 50

General instructions :

All questions are compulsory.

Q 1. On 1 October 2021, Reena and Raman commenced business in partnership with capitals of Rs.3,00,000
and Rs.1,00,000 respectively. The profit for the year ended March 31, 2023 was Rs. 1,80,000, before paying
rent for her personal building to be used as godown for firm to Reena payable at Rs. 5,000 per month. Interest
on capital is to be allowed at 6% p.a. Raman was entitled to a salary of Rs. 30,000 p.a. The net profit
transferred to Profit and Loss Appropriation Account will be:

(a,) 1,80,000(b) 1,20,000(c) 1,50,000(d) 2,40,000 (1mark)

Q 2. Two items that may appear on the Credit side of a partner's fixed capital account are_______. (1 mark )

(a) Opening Capital and Loan advanced by partner (b) Opening Capital and Additional Capital Introduced

(c) Partner's Loan and Additional Capital Introduced (d)Additional Capital Introduced and Permanent
withdrawal of Capital

Q 3. X and Y were partners in a firm sharing profits in the ratio of 7:3. Z was admitted for 1/5th share in the profits
which he took 75% from X and remaining from Y. The sacrificing ratio of X and Y will be (1 mark )

(a) 7:3 (b) 3:1 (c) 1:1 (d) 5:2

Q 4. Kavita and Karan are partners in a firm sharing profits and losses in the ratio 4: 1. On 1st April, 2023, they
admitted Mohit for 1/4th share in the profits of the firm. The balance sheet of Kavita and Karan showed stock at
₹45,000. On admission of new partner, the stock was found undervalued by 10%. The journal entry to give effect to
the above adjustment on Mohit's admission will be: (1 mark)

(a) Revaluation A/c Dr. 5000 (b) stock A/c Dr. 4500
To stock A/c 5000 To Revaluation A/c
4500
(c) stock A/c Dr. 5000 (d) Revaluation A/c Dr. 4500
To Revaluation A/c 5000 To stock A/c 4500

Q 5. X and Y were partners in a firm sharing profits and losses equally. Their capitals were Rs. 2,00,000 and
Rs. 3,00,000 respectively. Z was admitted as a new partner for 1/4th share in the profits of the firm. Z brought
Rs.2,00,000 as his capital. The goodwill of the firm was:

(a) 1,00,000 (b) 25000 (c) 2,00,000 (d) ₹7,00,000 (1mark)

Q 6. On dissolution of a firm, bank overdraft is transferred to: ( 1 mark )

(a) Cash Account (b) Bank Account ( C)Realisation Account (d) partner’s capital A/c

Q 7. Statement-I: In case of retirement of a partner, profit or loss on revaluation of assets and re-assessment of
liabilities is distributed among old partners in gaining ratio.
 Statement-II: Gaining Ratio is the ratio in which the continuing partners acquire the share from the retiring/
deceased partner.

(a) Both the statements are true. (b) Both the statements are false.

(c) Statement-I is true, Statement-II is false. .(d) Statement-II is true, Statement-I is false. (1mark,)

Q 8. Red, Blue and white were partners in a firm sharing profits in the ratio of 1: 2: 2. They decided to share
future profits in the ratio of 7:5:3 with effect from Ist April, 2023. Their Balance sheet as on that date showed a
balance of Rs. 22,500 in Deferred Revenue Expenditure Account. The amount to be debited respectively to the
capital accounts of Red, Blue and white for writing off Deferred Revenue Expenditure will be: (1 mark)

(a) Rs.7,500,Rs.7,500, and Rs. 7,500 (b)Rs. 4,500,Rs.9,000, and Rs.9,000 (c )Rs.10,500,Rs.7,500,and
Rs.4,500 (d) Rs.11250 , Nil and Rs.11,250

Q 9. In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner
by the remaining partners, it is assumed that they will acquire his/her share: . 1 mark)

(a) Old Profit Sharing Ratio (b)New Profit Sharing Ratio (c) Equal Ratio (d) None of these

Q 10. Yadu, Madhu and Vidhu are partners sharing profits and losses in the ratio of 2:2:1. Their fixed capitals on
April 01, 2022 were; Yadu Rs. 5,00,000,MadhuRs. 4,00,000 and Vidhu Rs. 3,50,000. As per the partnership deed,
partners are entided to interest on capital @ 5% p.a., and Yadu has to be paid a salary of Rs.2,000 per month while
Vidhu would be receiving a commission of Rs.18,000. Net loss of the firm as per profit and loss account for the
year ending March 31, 2023 amounted to Rs.75,000. Prepare profit and loss appropriation account for the year
ending March 31, 2023. (3 marks)
Q 11.. Mita, Gopal and Farhan were partners sharing profits and losses in the ratio 3: 2: 1. On 31st March, 2023
they decide to change the profit sharing ratio to 5 : 3 : 2. On this date, the Balance Sheet showed deferred
advertisement expenditure Rs.30,000 and contingency reserve Rs.9,000.Goodwill was valued at Rs. 4,80,000. Pass
the necessary journal entries for the above transactions. (3 marks)

Q 12..Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio 2: 1: 2 as on
31st March 2023.

Liabilities Amount Assets Amount

Creditors 38000 Buildings 240000
Bills payable 2000 Stock 65000
Capitals: punita 144000 Debtors 30000
Rashi 92000 Cash at bank 5000
Seema 360000 profit and loss account 60000
124000
400000 400000

Punita died on 30th September 2023. Her share profit or loss till the date of death was to be calculated on the basis
of the profit or loss of the last year. The profits for the years ended 2019-20, 2020-21 and 2021-22 were Rs.30,000,
Rs.70,000 and Rs.80,000 respectively.

Calculate Punita's share of profit/loss till the date of death and pass journal entry to record the same. (3 marks)

Q 13. On april 1, 2023, a firm had assets of Rs. 100000 excluding stock of Rs. 20000. The external liabilities were
Rs. 10000 and the balance constituted partner’s capital accounts. If the normal rate of return is 8%, the goodwill of
the firm is valued at Rs. 60000 at four years purchase of super profit, find the actual profits of the firm. (
4marks )
Q14.. Anju, Manju and Sanju sharing profit in 3 : 1: 1 decided to dissolve their firm. On March 31, 2023 their
position was as follows.

LIABILITIES AMOUNT ASSETS AMOUNT

Creditors 60000 Cash at bank 35000
Loan 15000 Stock 83000
Capitals : Furniture 12000
Anju 275000 Debtors
Manju 110000 242000 230000
Sanju 100000 485000 Less: prov. For doubtful debts 12000 200000
Buildings
560000 560000
It is agreed that: (i) Anju takes over the Furniture at Rs.10,000 and Debtors amounting to Rs.2,00.000 at
Rs.1,85,000. Anju also agrees to pay the creditors. (ii) Manju is to take over Stock at book value and Buildings at
book value less 10%.. (iii) Sanju is to take over remaining Debtors at 80% of book value and responsibility for the
discharge of the loan. (iv) The expenses of dissolution amounted to Rs.2,200.

Prepare Realisation Account, Bank Account and Capital Accounts of the partners. (6 marks)

Q 15. The Balance Sheet of Mohit, Nenaj and Sohan who are partners in a firm sharing profits according to their
capitals as on March 31, 2023 was as under:

Liabilities Amount Assets Amount

Creditors 21000 Buildings 100000
Mohit’s capital 80000 Machinery 50000
Neraj’s capital 40000 Stock 18000
Sohan’s capital 40000 Debtors 20000
General reserve 20000 Less: Provision for B.D. 1000 19000
Cash at bank 14000
201000 201000

On that date, Neeraj decided to retire from the firm and was paid for his share in the firm subject to the following:
Buildings to be appreciated by 20%, Provision for Bad debts to be increased to 15% on Debtors; Machinery to be
depreciated by 20%, Goodwill of the firm is valued atRs.72,000 and the retiring partner's share is adjusted through
the capital accounts of remaining partners. (6marks)

Prepare Revaluation Account, Capital Accounts of the partners, and the Balance Sheer after retirement OR

Q. On 31-3-2023 the Balance Sheer of W and R who shared profits in 3 : 2 ratio was as follows:

Liabilities Amount Assets Amount (Rs.)

( Rs.)
Creditors 20000 Cash 5000
Profit and loss account 15000 Sundry Debtors 20000
Capital accounts : Less: Provision 700 19300
W 40000 Stock 25000
R 30000 70000 Plant and Machinery 35000
Patents 20700
105000 105000

On this date B was admitted as a partner on the following conditions:

 (a) 'B' will get 4/15th share of profits.
(b) "B' had to bring Rs. 30,000 as his capital to which amount other partners capitals shall have to be
adjusted.
(c) He would pay cash for his share of goodwill which would be based on 2years purchase of average profits
of past 4 years.
(d) The assets would be revalued as follows Sundry debtors at book value less 5% provision for bad debts,
Stock at Rs.20,000, Plant and Machinery Rs.40000.

(e) The profits of the firm for the year 2020, 2021 and 2022 were Rs.20,000; Rs.14,000 andRs.17,000
respectively.

Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the new firm. (6

marks)

Q 16 Prepare Comparative Statement of Profit and Loss from the following information: ( 3 marks )

Particulars 2021-22 (Rs.) 2022-23 (Rs. )

Revenue from operations 470000 970000
Interest on bank overdraft 5000 --------
Other expenses 20000 10000
Tax rate @50%

Q 17.Under which major heads and sub-heads will the following items be placed in the Balance Sheet of the
company as per Schedule III, Part I of the Companies Act, 2013?

(i) Prepaid Insurance (ii) investment in shares or debentures of another company (iii) calls in arrears (iv)
unclaimed dividend (v) Capital reserves, (3 marks)

Q 18 Calculate Current Ratio: Inventory turnover ratio 5 times; Inventory at the end is two times more than the
inventory in the beginning; Revenue from Operations Rs.3,00,000; Gross profit is 25% on cost of revenue from
operations; Current liabilities Rs. 50,000 and Quick ratio 0.8: 1 (4 marks) OR

Quick ratio of a company is 1 : 1. State, with reason, whether the following transactions will increase, decrease or
not change the ratio: (4 marks)

(i) Cash collected from debtors (ii) Purchase of loose tools Rs.2,000 Sale of goods on credit Rs.3,000.(iv)
Payment of dividend

Q 19. From the following Balance Sheet of G Ltd. as at 31st March, 2023, prepare Cash Flow Statement: .
(6 marks)
Particulars Note no. 31.3.2023(Rs.) 31.3.2022 (Rs.)
I . EQUITY AND LIABILITIES
1. Shareholder’s funds
(a) Share capital 800000 600000
(b) Reserves and surplus 330000 220000
2. Non-current liabilities
Long –term borrowings (10% debentures) 160000 100000
3. Current liabilities
(a) Trade payables 165000 195000
Total 1455000 1115000
II. ASSETS
1. Non- current assets
(a) Property , plant and equipment and intangible 950000 605000
assets
(b) Non-current investments 135000 100000
2. Current assets
(a) Current investment 80000 40000
(b) Trade receivables 90000 200000
(c) Cash and cash equivalents 200000 170000
1455000 1115000