1

SAMPLE OUESTION PAPER (2023-24)

CLASS XII
ACCOUNTANCY

Maximum Marks: 80 Time: 3 hours

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students
must attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21, 22 and 33 carries 4 marks each
Sample
8. Question from
Questions Paper23- Accountancy
to 26 and 34 carries 6 marks each
9. There is no overall choice. However, an internal choice has been provided

PART-1
ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1. A and B are partners in a business sharing profits in the ratio of 5: 3. They admit C as a partner with 1/4 share in the
profits which he acquires 3/4 from A and 1/4 from B. He pays 4,000 for his share of goodwill. A and B will be credited by?
(a) ₹ 2,500 and ₹ 1,500 respectively. (b) ₹ 2,000 each.
(c) ₹ 3,000 and ₹ 1,000 respectively. (d) ₹ 2,750 and ₹ 1,250 respectively.
OR
Mohit and Rohit were partners in a firm with capitals of 80,000 and 40,000 respectively. The firm earned a profit of Rs.
30.000 during the year. Mohit's share in the profit will be:
(a) 20,000 (b) 10,000 (c) 15.000 (d) 18.000

2. Assertion (A): Cumulative preference share capital is the share capital in which unpaid amount of dividend to be paid
in the next year along with unpaid amount of dividend of previous year.
Reason (R): Participative preference share capital holders have right to participate in the decision making activities
relating to their interest.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false.

3. Kanishk & Co. , forfeited 100 shares of 10 Rs each for non-payment of final call of 1 Rs per share. All the forfeited shares
were re-issued at 8 Rs per share. What amount will be transferred to Capital Reserve A/c?
(a) 700 Rs (b) 800 Rs (c) 900 Rs. (d) 1,000 Rs.
OR
Bharam is partner in a firm. He withdraws Rs 3,000 at the starting of each month. The books of the firm closes on March
31 every year. Calculate interest on drawings if the rate of interest is 10% pa.
(a) Rs.2,080 (b) Rs.1,760 (c) Rs.3,840 (d) Rs.1,950

4. A company has an operating cycle of 12 months. It has accounts payable amounting to ₹10,00,000 out of which ₹7,00,000
have a maturity period of 15 months. How would this information be presented in the Balance sheet?
(a) ₹7,00,000 as current liabilities and ₹3,00,000 as non-current liabilities
(b) ₹3,00,000 as current liabilities and ₹7,00,000 as non-current liabilities
(c) ₹10,00,000 as non-current liabilities
(d) ₹10,00,000 as non-current liabilities

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 2
5. A and B are partners of partnership firm sharing profits in the ratio of 3:2 respectively. C was admitted for 1/5th share of
profit. Machinery would be appreciated by 10% (book value Rs.80,000) and building would be depreciate by
20%( Rs.2,00,000). Unrecorded debtors of Rs.1,250 would be brought into books now and a creditor amounting to
Rs.2,750 died and need not part anything on this account. What will be profit/loss on revaluation?
(a) Loss Rs.28,000 (b) Loss Rs.40,000
(c) Profits Rs.28,000 (d) Profits Rs.40,000

6. The subscribed capital of a company is Rs.80,00,000 and the nominal value of the share is 100 each. There were no calls
in arrear till the final call was made. The final call made was paid on 77,500 shares only. The balance in the calls in arrear
amounted to 62,500. Calculate the final call on share.
(a) 27 (b) 22 (c) 20 (d) 25
OR
Vanya Ltd. forfeited 20,000 equity shares of 100 each for non-payment of first and final call of 40 per share. The maximum
amount of discount at which these shares can be re-issued will be
(a) 8,00,000 (b) 12,00,000 (c) 20,00,000 (d) 20,000

7. A company issued 40,000 preference shares of ₹ 100 per share at par payable as under:
On Application : 20%
On Allotment : 40%
On First & Final Call : balance
Applications were received for 50,000 shares. Allotment was made on pro-rata basis. How much amount will be received
in cash on allotment?
(a) 14,00,000 (b) 16,00,000 (c) 18,00,000 (d) 20,00,000

8. If at the time of admission, some profit and loss account balance appears in the books, it will be transferred to:
(a) Profit & Loss Adjustment Account (b) All partners’ Capital Accounts
(c) Old partners’ Capital Accounts (d) Revaluation Account

Directions (Q.9-Q.10): There are two statements marked as Assertion (A) and Reason (R). Read the statements and
choose the appropriate option from the options given below
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false

9. Assertion (A): Received amount of securities premium will not debited to securities premium reserve account, on
forfeiture of shares.
Reason (R): Received amount of securities premium will be debited while writing off of certain type of capital loss or
expenditure.

10. Assertion (A): The income statement and the balance sheet are financial statements that show the cash flows in and out
of the business unit.
Reason (R): The general purpose of financial statements is to show the financial position and performance of a
business unit.

11. A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,000 respectively. They admitted C for 1/3rd share in
the profits C brought proportionate amount of capital. The Capital brought in by C would be:
(a) ₹ 90,000 (b) ₹ 45,000 (c) ₹ 5,400 (d) ₹ 36,00

12. For which of the following situations, the old profit-sharing ratio of partners is used at the time of admission of a new
partner?
(a) When new partner brings only a part of his share of goodwill.
(b) When new partner is not able to bring his share of goodwill.
(c) When, at the time of admission, goodwill already appears in the balance sheet.
(d) When new partner brings his share of goodwill in cash.

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13. AB Ltd purchased a Machinery from XY Ltd for ₹ 4,50,000. AB Ltd immediately paid ₹ 90,000 by Bank Draft and the balance
by issue of preference share of ₹ 100 each at 20% premium for the purchase consideration of Machinery to XY Ltd. Shares
issued by AB Ltd?
(a) 3,000 preference shares (b) 30,000 preference shares
(c) 3,600 preference shares (d) 36,000 preference shares

14. Discount allowed on the reissue of forfeited shares is debited to ____.

(a) Share capital A/c (b) Share forfeiture A/c
(c) Profit and loss A/c (d) General reserve A/c
OR
Saurabh Shirin, and Somesh are partners in firm sharing profits and losses in the ratio of 3: 2: 1. Somesh retires and the
new profit sharing ratio between Saurabh and Shirin is 3:2. The gaining ratio between Saurabh and Shirin will be
(a) 3:2 (b) 3:1 (c) 1:1 (d) 2:1

15. Company can utilize securities premium for:

(a) Writing off loss incurred on revaluation of asset
(b) Issuing fully paid bonus shares
(c) Paying dividend
(d) Writing off trading loss

16. The realisation account is debited with _______ on the dissolution of a firm.
(a) All assets that are to be realised (b) All external liabilities of the firm
(c) Cash received on sale of assets (d) Any assets were taken over by one of the partners

17. A, B, and C are partners sharing profits and losses in the ratio of 2:1:1 respectively. On 31st March, 2016, their balance
sheet was as follows:
Liabilities Amount Assets Amount
A’s Capital 10,000 Goodwill 3,000
B’s Capital 6,000 Freehold Property 9,000
C’s Capital 4,000 Furniture 1,000
Creditors 4,000 Joint Life Policy 2,000
Bills payable 2,000 Stocks 5,500
Debtors 4,500
Cash in Bank 1,000
26,000 26000
A died on 1st April, 2016. The firm had taken a joint life policy for 15,000, the payment for which was received by the firm.
According to be partnership deed, on retirement or death of a partner, the goodwill was to be valued at 1 1/2 times of the
average profit for the last four year The profits for the last four years were 6,000, 7,500, 9,000 and 9,500 respectively. For
paying the amount due to A's legal representative, B and C brought as much cash as would bring their capitals in profit
sharing ratio and the firm would have cash balance of 3,000
Pass Journal entries to record the above mentioned transaction.

18. Lalan and Balan were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals on 1st April, 2010 were
Lalan Rs. 1,00,000 and Balan Rs. 2,00,000. They agreed to allow interest on capital @ 12% per annum and charge on
drawings @ 15% per annum. The firm earned a profit, before all above adjustments, of Rs. 30,000 for the year ended 31st
March, 2011. The drawings of Lalan and Balan during the year were Rs. 3,000 and Rs. 5,000 respectively. Showing your
calculation clearly, Prepare profit and loss appropriation account of Lalan and Balan . The interest on capital will be
allowed even if the firm incurs loss.
OR
P, Q, and R were partners in firm sharing profits in the ratio of 1:1:2. On 31st March 2018, their balance sheet showed a
credit balance of 9,000 in the profit and loss account and a Workmen Compensation Fund of Rs.64,000. From 1 April 2018
they decided to share profits in the ratio of 2:2:1. For this purpose it was agreed that:
(a) Goodwill of the firm was valued at 4,00,000
(b) A claim on account of workmen compensation of Rs. 30.000 were admitted.
Pass necessary journal entries on the reconstitution of the firm

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19. Geeta Ltd, issued 5,000, 9 % debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in
the books of the company in the following cases:
(i) When debentures are issued at 10 % premium and redeemable at par.
(ii) When debentures are issued at par and redeemable at 10 % premium.
(iii)When debentures are issued at 5 % premium and redeemable at 10 % premium.
(iv) When debentures are issued at 25 % to the vendors for machinery purchased for Rs 6,25,000.
OR
Krishna Ltd. had outstanding 20,000, 9% debentures of 100 each on 1st April 2014. These debentures were redeemable
at a premium of 10% in two equal installments starting from 31st March 2018. The company had a balance of t 4,00,000
in Debenture Redemption Reserve on 31st March 2017. Pass necessary journal entries for the redemption of debentures
in the books of Krishna Ltd. for the year ended 31st March 2018.

20. A Ltd. Issued 1,000 Debentures of Rs.100 each on 1st April, 2010 redeemable at a premium of 5% as under:
As 31st March, 2012 500 Debentures
As 31st March, 2014 500 Debentures
The Company decided to create Debenture Redemption Reserve as required under the rules in two equal installments at
the end of 31st March, 2011 and 31st March 2012. It also deposited the required amount in a scheduled bank as on 1st
April, 2011 and 1st April, 2013.The debentures were duly redeemed by utilizing the money deposited with the scheduled
bank as investment for redemption of debentures.
You are required to pass the journal entries beginning with the year 2010-2011 till redemption of debentures.

21. Ana Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 each, The Company issued
25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly
received, except the first and final call of ₹ 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of
the company along with the notes of accounts.

22. Black Stone Ltd. issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5
(including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the
money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received
except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary Journal entries to record the above.

23. XYZ Ltd. is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which , 1,000
shares were offered for public subscription at a premium of ₹ 5 per share , payable as:
On application ₹ 10 per share,
On allotment ₹ 25 per share (including premium),
On first call ₹ 40 per share
On final call ₹ 30 per share
Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the
application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment and first call
money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.
OR

'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of Rs 10 each at a premium of Rs 3 per share. The
amount was payable as follow
On application - Rs 2 per share
On allotment-Rs 6 per share (including premium)
On first and final call the balance
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess
money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares
failed to pay the allotment and call money. Raman failed to pay the first and final call on his 500 shares. Shares of both
Suman and Raman were forfeited after the final call was made. The forfeited shares were re-issued for Rs 12 per share as
fully paid-up. Pass necessary Journal Entries for the above transactions in the books of the company.

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24. The following is the Balance Sheet of P and S trading as P&S Co. on December 31, 2016, profits being divided 3/5 to P and
2/5 to S.
Liabilities Amount Assets Amount
P's Capital Account 7,000 Debtors 4,400
S's Capital Account 4,000 Buildings 3,000
Sundry Creditors 3,000 Plant 5,000
Bank 1,600

14,000 14,000
They agree to admit a new partner B on January 1, 2017 and the following arrangements are made
(a) Goodwill to be created amounting to ₹3,500, to be credited to P and S in the same proportions as they divide profits.
(b) The Buildings and Plant are independently valued at 3,500 and 6,000 respectively, the increased valued to be similarly
credited to P and S.
(c) B to bring ₹4,000 cash as his Capital.
(d) All partners to be credited with 5% interest per annum on Capital and to be charged 5% interest on Drawings, which
amount to 200 a month, drawn by each partner at the end of each month.
(e) Profits to be divided in the proportion P5, S3 and B2. The profit as on 30 June, 2017 before allowing interest was
15,000.
Prepare the Firm's Balance Sheet and Partners' Capital Accounts as on 30 June, 2017.

25. B, C and D were partners in a firm sharing profits in the ratio of 5 :3 : 2. On 31st December, 2008, their Balance Sheet was
as follows: (6)
Liabilities Amount (₹) Assets Amount(₹)
Creditors 43,000 Cash 10,200
Bills Payable 17,000 Stock 24,500
General Reserve 70,000 Debtors 27,300
Capital A/cs: Land and Building 1,40,000
B 40,000 Profit and Loss A/c 70,000
C 50,000
D 52,000 1,42,000
2,72,000 2,72,000
B died on 31st March, 2009. The Partnership Deed provided for the following on the death of a partner:
(a) Goodwill of the firm was to be valued at 3 years' purchase of the average profit of last 5 years. The profits for the years
ended 31st December, 2007, 31st December, 2006, 31st December, 2005, and 31st December, 2004 were ₹ 70,000; ₹
60,000; ₹ 50,000 and ₹ 40,000 respectively.
(b) B's share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the year
ended 31st December, 2008.
You are required to calculate the following:
(i) Goodwill of the firm and B's share of goodwill at the time of his death.
(ii) B's share in the profit or loss of the firm till the date of his death.
(iii) Prepare B's Capital Account at the time of his death to be presented to his Executors.

26. On April 1, 2013, Priya Limited issued Rs. 9,00,000 10% debentures at a discount of 9%. The debentures were to be
redeemed in three equal annual instalments starting from March 31, 2015. Prepare ‘Discount on Issue of Debenture
Account’ for the first three years starting from April 1,2013. Also show your workings clearly.

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PART- B
ANALYSIS OF FINANCIAL STATEMENTS
27. Following extract belongs to a company.
Inventory in the beginning of the Year ₹ 60,000.
Inventory at the end of the year ₹ 1,00,000.
Inventory turnover ratio 8 times.
Selling price 25% above cost.

Compute gross profit?

(a) ₹ 12,00,000
(b) ₹ 1,60,000
(c) ₹ 2,00,000
(d) ₹ 1,80,000

Direction (Q.27-Q.30): Consider the following data and answer the following:
Particulars Rs.
Revenue From Operations 12,00,000
Cost of Revenue from Operations 9,00,000
Operating Expenses 15,000
Inventory 20,000
Other Current Assets 2,00,000
Current Liabilities 75,000
Paid up Share Capital 4,00,000
Statement of Profit & Loss(Dr.) 47,500
Total Long Term Debt 2,50,000

28. The Operating ratio is….?

(a) 75.62% (b) 75% (c) 76.25% (d) 76%

29. Debt-Equity ratio is --------------

(a) 0.75 : 1 (b) 1: 1 (c) 2: 1 (d) 0.63 : 1

30. Working Capital Turnover Ratio is --------------

(a) 8 times (b) 8.28 times (c) 7.28 times (d) 8.78 times

31. Explain any three limitations of Ratio Analysis?

OR

From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt
Ratio:
Information: Fixed Assets ₹ 75,00,000; Current Assets ₹ 40,00,000; Current Liabilities ₹ 27,00,000; 12% Debentures ₹
80,00,000 and Net Profit before Interest, Tax and Dividend ₹ 14,50,000.

32. Ramakrishna Limited is a computer hardware manufacturing company. While preparing its accounting records it takes
into consideration the various accounting principles and maintains transparency. At the end of the accounting year, the
company follows the ‘Companies Act, 2013 and Rules thereunder’ for the preparation of its Financial Statements. It also
prepares its Income Statement and Balance Sheet as per the format provided in Schedule III to the Act. Its Financial
Statements depict its true & fair financial position. For the financial year ending March 31, 2017, the accountant of the
company is not certain about the presentation of the following items under relevant Major Heads & Sub Heads, if any, in
its Balance Sheet:
(i) Securities Premium Reserve
(ii) Calls in Advance
(iii) Stores & Spares
(a) Advice the accountant of the company under which Major Heads and Sub Heads, if any, he should present the above
items in the Balance Sheet of the company,

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33. From the following information, Calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio:
Particulars Amount
Opening Inventory ₹ 28,000
Closing Inventory ₹ 22,000
Purchases ₹ 46,000
Revenue from Operations, i.e., Net Sales ₹ 80,000
Return ₹10,000
Carriage Inwards ₹ 4,000
Office Expenses ₹ 4,000
Selling and Distribution Expenses ₹ 2,000

Working Capital ₹ 40,000.

34. Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March,
2013 and 31st March 2012:
Particulars 31st March, 31st March,
2013 (₹) 2012 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 8,00,000 6,00,000
(b) Reserves and Surplus 4,00,000 3,00,000
2. Non-Current Liabilities
Long-term Borrowings 1,00,000 1,50,000
3. Current Liabilities
(a) Trade Payables 40,000 48,000

Total 13,40,000 10,98,000

II. ASSETS
1, Non-Current Assets 8,50,000
(a) Fixed Assets: 2,32,000 5,60,000
Tangible Assets
(b) Non-Current Investments 50,000 1,60,000
2. Current Assets 76,000
(a) Current Investments 38,000 1,34,000
(b) Inventories 94,000 82,000
(c) Trade Receivables 13,40,000 92,000
(d) Cash and Cash Equivalents 70,000
Total 10,98,000

Notes to Accounts
Particulars 31st March, 31st March,
2013 (₹) 2012 (₹)
I. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and 4,00,000 3,00,000
Loss

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