SAMPLE QUESTION PAPER 3 A/HIGHLY SIMULATED SAMPLE QUESTION PAPER FOR CBSE CLASS XII EXAMINATIONS. ACCOUNTANCY GENERAL INSTRUCTIONS “1. This question paper contains two parts A and 2, Part Ais compulsory forall. 42, Part 2 has two options—Analysis of Financial Statements and Computerised Account ‘Attempt only one option of Part 8. 44. Question nos. 1to 13 and 23 to 29 are objective type questions carrying 1 mark each. 5 Question nos. 14 and 30 are short answer type-I questions carrying 3 marks each {6 Question nos. 15 to 18 and 31 are short answer typeII questions carrying 4 marks each. 7%, Question nos. 19, 20 and 32 are long answer type-I questions carrying 6 marks each. ‘8 Question nos. 21 and 22 are Long answer type-II questions carrying & marks each, * Computerised Accounting has not been covered. TIME :3 HOURS MAX. MARKS: 80 Part A (Accounting for Partnership Firms and Companies) ‘st and ‘B' were partners in a firm. They share profits in 2 : 3 ratio. They close their accounts on 3st December every year. ‘S withdrew a fixed sum of ¢ 2,000 at the beginning of every month starting from ist July, 2017. You have to calculate interest on drawings while rate of interest is 12%. o (@) e420 & e720 (©) e440 (az 580 2. XYZ Ltd issued 20,000 equity shares of € 10 each at a premium of € 2 payable alongwith application. All the shares were applied and duly allotted. What will be the total amount at the time of application? «@ {@) 220,000 () #220000 (©) #240,000 (4) 22,60,000 8. Rights of a partner consists which ofthe following? ® (a) Right to inspect books of accounts () Right to not sllow the admission of new partner (6) Right to conduct affairs of business {@) Allofthe above 4. A firm has an unrecorded investment of € 5,000. Entry in the firm’s journal on admission of a partners will be @ (2) Unrecorded investment A/e Dr 5000 To Revaluation A/c 5,000 (©) Partners’ Capital A/e Dr 5000 To Unrecorded Investment A/e 5,000 (©) Revaluation A/e Dr 5000 To Unrecorded Investment A/c 5000 (@) None of the above5. Which accountis debited, when some amount of any installment of share ca pital is not received ‘trom any shareholder by the company? @ (@) Callsin-Advance —(@) CellsinvArrears (¢) Cash (¢) Share Allotment 6. A, Band C are partners sharing profits and losses in the ratio of 2: 2 : 1. The extract of their ‘Balance Sheet is as follows bites [> = Ane) Ifthe value of stack is to be reduced by ¢ 40,000, then what will be the amountof stock at which it ‘will be shown in reconstituted balance sheet? « (@) 280,000 (@) £40000 (@ 2200000 (a) £240,000 ‘7X and ‘B' are partners sharing profits and losses in the ratio of 5 : 3. On admission, ‘C" brings 270,000 cash and t 48,000 against goodwill. New profit sharing ratio between ‘S, ‘B' and 'C’ is 7:5: 4, The sacrificing ratio among ‘N and ‘Bis « (4 (4:7 54 @aa 8. In the profit and loss appropriation account, net profit is always taken after oy (@) Interest on Partner's Loan {@) Manager's Commission (6) Both (a) and (6) (2) None of these “P', (Q" and ‘Rare partners sharing profits in the ratio of 2: 1: 1. R’ retires and assets and abilities are revalued; resulting in a profit of ¢ 12,000. "R's" share will be @ (@) 26,000 (&) 73,000 (72000 (4) None of these 110. Capital which is called only at the time of winding-up of the company is called o (@) capital reserve (b) reservecspital —(c) securecspital (dl) authorised capital 11. On dissolution of the firm, parmer’s capital accounts are closed through eo (@) Realisation account (b) Drawings aecount (©) Bank account (@) Losn account 12.2.6 and Rare paar hang sts nthe ao ot, 2 and, 1 rasan hi shat i taken up by P then the new ratio of remaining partners will be .... ® 13. When an asset is taken over by a partner, his capital account is o (a) debited (b) credited (©) noentry willbe passed (6) None of these 14. A Ltd forfeited 300 shares off 10 each fully called-up, held by Zee for non-payment of allotment money of® 3 per share and final call of€4 per share. He had paid the application money of €3 per share. These shares were re-issued to Cee for® 8 per share. Pass necessary journal entries. () Or X Ltd purchased machinery for 5,00,000 from Y Ltd. Half of the amount was paid by accepting a bill of exchange drawn by Y Ltd payable after three months. The balance was paid by issue of ‘equity shares of % 10 each ata premium of 25%, ‘Pass necessary journal entries in the books of X Ltd for these transactions,16. B Qand Rwere partners in a firm sharing profit in 2:2: 1 ratio. The firm closes its books on 31st ‘March every year. P died three months affer the last accounts were prepared. On that date, the goodwill of the firm was valued at € 90,000. (On the death of a partner, his share of profitin the year of death was tobe calculated on the basis of the average profit of the last four years. The profits of last four years were 1. €2,00000 11. €1,80,000 II1.€2,10,000 IV. #1,70,000 (Loss) ass the necessary journal entries to adjust P's share of goodwill and profit. w (Or Pass necessary joumal entries for recording the following transactions atthe time of dissolution of the firm. i) Z,a partner agreed to pay-off his wife's loan 2 20,000. (if) X,a partner takes over an unrecorded asset (typewriter) at€ 300. (ui) Undistributed belance (debit) of prolit and loss account € 30,000. The firm has three partners X,Y and Z. iv) Vwho undertakes to carry out the dissolution proceedings is allowed € 2,000 forthe same. (v) Partner Y's loan paid-off £10,000. () © 10000 bills payable seitied at € 2000. 16. Ayaan and Husna are partners. Ayaan's capital is® 2,50,000 and Husna’s capital is € 1,60,000. Interest is payable @ 8% p.a. Husna is entitled toa salary of 3,000 per month for extra time, she devotes to the business. Profit for the current year before interest and salary to Husna is, 1 1,00,000. Divide the profit between Ayaan and Husna. Also, calculate total closing capital of each partner at the end of the year. o 17. Complete the following journal entries « JOURNAL Daa | Paris Le] Amt (oo | Ar (ce 00,000 .0n000 70900 To tom Devens Ne(19000% 100) 1.00900 To Te Te. (@angine pucrase corederaton ste by esue 10,000 10% debermures oft 100each at _Spremirnof 10%, 6000 equi shares of 100 ech and 60,000 cash) 18. Bina, Rahul and Priya were partners in a firm having capitals of ¢ 6,000, z 6,000 and x 8,000 respectively. Their current account balance were: Bina? 1,000; Rahul 500 and Priya 200 (Dr). According to the partnership deed, the partners were entitled to interest on capital @ 5% p.a. Priya being the working partner was also entitled to a salary of @ 600 p.a. The profits were ta be divided as (2) The first? 2,000 in proportion to their capitals. (i) Next 73,000 in the ratio of 5 :3:2. (i) Remaining profits tobe shared equally. The firm made a profit of 15,600 before charging any of the above items. Prepare profit and loss appropriation account. o19. (i) X Ltd purchased machinery from ¥Y Ltd and paid to Y Ltd as follows (2) By issuing 5,000, equity shares of ¥ 10 each at a premium of 10%, (b) By issuing 100, 9% debentures of 100 each ata discount of 10%. (6) Balance by accepting a bill of exchange af £25,000 payable after one month. Pass necessary journal entries in the books of X Ltd for the purchase of machinery and making payment toY Lid. W) Rashmi Ltd issued 2,000, 6% debentures of 8 100 each. The whole amount was payableat the time of application. Applications were received for 2,500 debentures. Company issued debentures to all the applicants on pro-rata basis, Give joumal entries. ° 20. L, Mand N were equal partners, On 31st Match, 2018, theirbalance sheet stood as under (6) Balance Sheet as at 31st March, 2018 a "ant eset [anion ean ‘eto | Cash 7.400 oe 240 | Sock om apna Nes | bebo sm t ovate ‘Zan 1 Furnes ss000 N som | 1sn000, ung son et. ‘The firm was dissolved on that date, For the purpose of dissolution, investments were valued at 236,000 and L took aver the investments at this value. Fixed assets realised ? 59,400 whereas stock and debtors realised t 1,60,000. Expenses of realisation amounted to ¢ 2,600. Creditors, allowed a discount of & 1,600. In addition, one bill receivable for @ 3,000 under discount was, dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm. ‘Prepare realisation account, partners’ capital accounts and cash account showing how the accounts would finally be settled among the partners. 21, Makar Ltd was registered with an authorised capital of€20,00,000 divided in € 10 per equity share, Itinvited applications for issuing 1,00,000 equity shares at a premium of &2 per share. The amount was payable as follows ® (On application 4 pershare (Including premium) ‘Qn allotment 13 pershare On firstandfinaleall balance amount Applications were received for 1,30,000 shares. Applications for 10,000 shares were rejected ‘and the application money received on them was refunded. Pro-rata allotment was made to the remaining applications. Amount overpaid on these applications was adjusted towards the amount due on allotment. Raj, ‘who had applied for 1,200 shares, failed to pay the allotment and eall money. The company forfeited his shares, out of which 00 shares were re-issued to Mohan at 9 per share fully paid up. ‘You are required to () Pass the journal entsies in the books of the company through calle in-arrears account. (W) Prepare the share allotment account.Gr Gupta Ltd made an issue of 1,00,000 equity shares of 10 each, payable as follows Qn application ¢ 2.50 per share; on allotment 2.50 per share and balance amount on fitst and final call. ‘Members holding 400 shares did not pay the call money and their shares were duly forfeited. 200 of the forfeited shares were reissued as fully paid at €5 per share. Draft necessary journal ‘entries and propare share capital and forfeited shares accounts in the books. 22, The balance sheet of Rand L, who are partners in a firm sharing profits in the ratio of 3: 2was as follows @ Balance Sheet asat Uiie ‘Art Assets Amt @) pital Aes 6000 a 4s00 L 7200 ‘Genz Reserves (0) 500 \otenen's Compensiion Fund 7200 Cadiore ‘They agreed to admit D into partnership for 1/Sth share of profits on the following terms () Provision for doubtful debts would be increased by € 1,200. UW) The value of land and building would be increased tot 10,800. lil) The value of stock would be increased by € 2,400. iv) The Hability against workmen's compensation fund is determined at € 1,200. (V) Dbrought in as his share of goodwill € 6,000 in cash. D would bring further cash as would make hhis capital equal to 20% of the total capital of the new firm, after the above revaluation and adjustments are carried out. Prepare revaluation account, partners’ capital accounts and the balance sheet of the firm after D's admission. Or The balance sheet of Zee, Pee and Cee who were sharing profits in proportion to their capitals is given below Balance Sheot a5 at. lisbitos art Sindy Cestors 36000 | Good "Wornan Compensation Reseve 52400 | Cash at Bark Employees Prowsent Fund ‘3400 | Sundry Debtors apts 6 Provslon ox Dover Dates 00 12n000 | | siose Pee ‘0000 Pant ord Macrinery 51000 coo en000 | 270000 | Fact Lard and Bung 10.000 L ‘Advisement Expencure Ne | 5200. s70m00| 370800 Peo retires and the following re-adjustments of the assets and liabilities have been agreed upon before the ascertainment of the amount payable by the firm to Pee, UW) That the stock be depreciated by 6%. UW) That the provision for doubtful debts he brought up to $%4 on debtors.(ii) That the factory land and building be appreciated by 20%. UW) Theta provision of f 4,620 be made in respect of outstanding legal charges. (v) That the goodwill of the entire firm be fixed at € 64,800 and Pee's share of the same be adjusted into the accounts of Zee and Cae who are going to share in future in the proportion of five-eighths and three-elghths respectively. (No goodwill account isto be raised). (vi) That the entire capital of the firm as newly constituted be fixed at ¥ 1,68,000 between Zee and Cee in the proportion of five-eighths and three-eighths alter passing entries in thelr accounts for adjustments (Le. actual cash to be paid off or to be brought in by the continuing partners as the ease may be), ‘Pass the necessary journal entries to give effect to the above arrangement and prepare the balance sheet of new firm transferring the amount due ta retiring partner to a separate loan accountin his name. Part B (Financial Statement Analysis) 23. Tumover ratios are calculated on the basis of o (a) Net Sales (b) Cost of Goods Sold {c) Both (a) and (b) (d) Gross Profit and Net Profit Total ASSO is useq for calculating ‘Debt o (2) Debtors Tamnaver Ratio () Debt-equity Ratio. (c) Debt-turnover Ratio (@) Total Assets of Debt Ratio 25. Prepaid rentisa w (a) current asset (0) fixed asset (c) current liability (d) None of these 26. Current liabilities of a company are % 3,50,000. Its current ratio is 3: 1 and acid test ratio is 1.75: 1. What willbe the value of liquid assets? ny (a) 26,10,700 (b) 210,50,000 (c) 28,10,000 (d) 7612500 27. What are the principle revenue producing activities for an insurance company? @ (2) Receipt of Premium () Payment of Claims (e) Both (a) and (6) (a) None of these 28, Vivek purchased a machinery worth ¥ 20,00,000 on hire purchase basis. Under what type of Activity, payment of installment and interest can be classified as per cash flow statement? (1) 29. Loose tools are shown under the sub-head o 30. From the following details, calculate debtors turnover ratio and average receivable period in terms of months. ® Total sales for the year 1,75,000 Cash sales 20% of total sales Sales return out of exedit seles 10,000 Sundry debtors ‘Opening balance = 8,000 Closing belance © 12,000Gr Calculate current assets of a company from the following information ‘Stock tumever ratio =4 times. ‘Stock at the end is €20,000 more than the stock in the beginning. Sales 3,00,000 and gross profit ratio is 20% of sales. (Current liabilities =® 40,000, Quick ratio =0.75 IL Propare balance sheot of XYZ Ltd as at 31st March, 2018 from the following information. (4) List the items which are shown under the heading ‘current liabilities’ as per Schedule II, PartT of the Companies Act, 2013, 82, Batra Ltd made a profit of 1,20,000 after considering the following during the year 31st March, 2020. © (i) Depreciation of fixed assets 830,000. (i) Amortisation of goodwill 820,000. (iii) Loss on sale of machine ® 10,000. (iv) Profiton sale of building €20,000. (v) Transfer to general reserve 30,000. (vi) Interin dividend paid 820,000, (vii) Dividend received on investment ® 10,000. (viii) Provision for taxation made ® 16,000. The following additional information is algo available to you sts StatMaren, 2019 | Stet March, 2020, Patou Amt Amt ‘Accounts Recehable aa sone Aecourts Payanie ‘soo00 70000 Prepaid Exoences “5.000 ‘000 Calculate cash flow from operating activities.Answers 2 @ 4 @ 5 © B@ 7 @ 10. 11. 1203:2 0 132.@) = 20000 shares 16. Profit transferred to partner's capital Ale = 31,200; ‘Closing capital Ayaan = $2,85,¢00; Husna = 82,2400 18, To partner's current account : Bina = 5,100; Rahul =f 4,500: Priya = 4.00 20. Loss on realisation = 6,000: Cash paid toL, M and N = 30,000, 7 $6,000, 36,000 respectively. 21, Amount received on llotment after ealls-in-arrears =€2,17,800; “Transferred to Capital Reserve = 1,440, 24 2) 25. (a) 26. 27. 28, Payment of Involvement - Investing Activity: Interest - Financing Activity 29. inventories 90. OrValue of current aseets= 1,00,000 1, Balance sheet total = 1,00,00.000, 32. 252000