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ACCOUNTANCY Class XII
Time Allowed: 3 hours Maximum Marks : 80
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 the candidates.
4. Part -Bhas two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting.
Students must attempt only one of the given options as per the subject opted.
5. Question Nos.1 to 16 and 27 to 30 carries 1mark each.
6. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21 ,22 and 33 carries 4 marks each
8. Questions Nos. from 23 to 26 and 34 carries 6 marks each
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2
questions of three marks, 1question of four marks and 2 questions of six marks.
Part A
Accounting for Partnership Firms and Companies
Q. 1. An unrecorded asset of ?S5,000 was given to an unrecorded creditor of ?50,000 in
settlement of his claim of 740,000 and the balance was paid to him after deducting 10%
discount. Realisation A/c will be:
(A) Debited by 50,000 (B) Debited by 9,000
(C) Credited by 1,000 (D) Credited by 9,000 1
Q. 2. A company issued 20,000 equity shares of 10 each at par payable as under : On
application 3; on allotment 2; on first call 74 and on final call ?Iper share.
Applications were received for 65,000 shares. Applications for 15,000 were rejected and
pro-rata allotment was made to the applicants for 50,000 shares. How much amount will
be received in cash on first call? Excess application money is adjusted towards amount due
on allotment and calls.
(A) 80,000 (B) S0,000
(C) 30,000 (D) Nil
OR
ABC Ltd. offered 60,000 shares of *10 each to the public. The public applied for 1.00,000
shares. The company made pro-rata allotment in the ratio of 3 : 2 and the remaining
applications were rejected and money refunded to the applicants.On how many shares did
the company refunded the application money?
(A) 40,000 Shares (B) 10,000 Shares
(C) 30,000 Shares (D) 20,000 Shares (L.S.C. 2023)
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4:3>
Q.3. A, Band Cwere equal partners. They decided to change the profit sharing ratio to
For this purpose the goodwill of the firm was valued at 4,50,000.
The journal entry for the treatment of Goodwillon change in profit sharing ratio will be.
Dat Particulars LFDr. Cr.
Amount Amount

A) C's Capital A/c. Dr. 50,000

To A's Capital Alc. 50,000
(B) Cs Capital Alc. Dr. 4,50,000
To A's Capital A/c. 4,50,000
(C) A's Capital Alc. Dr. 4,50,000
To C's Capital A/c. 4,50,000
(D) A's Capital Alc. Dr. 50,000
To Cs Capital A/c. 50,000
1

Q.4. Computer of book value of T60,000 and Patents of the book value of 20,000 have been
transferred to Realisation A/c. If nothing is mentioned about the realisation of these assets,
they will be realised at :
(A) Nil (B) 60,000
(C) 780,000 (D) 20,000 1

OR
At the time of dissolution of firm, bank overdraft is transferred to :
(A) Credit side of Bank Alc (B) Debit side of Partner's Capital Alc
(C) Credit side of Realisation Alc (D) Debit side of Realisation A/c
Q.5. X and Y are partners in the ratio of 2 : 1. Their capitals are 3,00,000 and 2,00,000
respectively. Interest on capitals is allowed @9% p.a. Firm earned a profit of 30,000 for
the year ended 31st March 2022. Interest on Capital will be :
(A) X*27,000; Y18,000 (B) X*20,000; Y10,000
(C) X*18,000; YZ12,000 (D) No Interest will be allowed. 1
Q.6. Aand Bare partners in a fim. They admit Cas a partner with 1/5th share in the profits of
the firm. Cbrings 1,50,000 as his share of capital. The value ofthe total assets of the firm
is 5,50,000and outside liabilities are valued at 70,000 on that date. C's share of hidden
goodwill will be :
(A) *2,70,000 (B) 54,000
(C) 1,20,000 (D) 24,000 1
0.7. XLtd. forfeited 1,000 shares of ?10 each for non-payment of final call of 3 each. After
reissue of 600 of these shares, *3,000 were transferred to Capital Reserve. Shares were
reissued for :
(A) 1,200 (B) 74,800
(C) 73,600 (D) 4,000 1
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OR
Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
Assertion (A): Transfer to reserves is shown in P & LAppropriation Alc.
Reason (R) :Reserves are charge against the profits.
In the context of the above statements, which one of the following is correct?
Codes :
(B) Both (A) and (R) are correct.
(A) (A) is correct, but (R) is wrong.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong.
retirement, Atakes over furniture of
Q. 8. A, B and Care partners in a firm. At the time of C's
50,000 at 40,000.Choose the correct entry from the following:
(A) Debit A's Capital A/c 40,000; Credit C's Capital A/c 40,000.
Capital
(B) Debit A's Capital Alc 40,000; Debit Revaluation A/c 10,000; Credit C's
Alc 50,000.
(C) Debit 4's Capital A/c 40,000; Credit Furniture A/c 40,000.
Furniture Ac
(D) Debit A's Capital A/c 40,000; Debit Revaluation A/c 10,000; Credit 1
50,000.
and 10.
Read the following hypothetical situation and answer Question No. 9
April
Harshit, Krishna and Rahul are partners in a firm. Their capital balances as on lst
2022 were 5,00,000; 4,00,000 and1,00,000 respectively.
capital @ 6% p.a. while
As per partnership deed, partners were entitled to interest on
3 Ist March 2023,
interest on drawings was to be charged @ 8% p.a. During the year ended
of Krishna
Harshit withdrew 1,00,000 from his capitalon lst October 2022 and drawings
the year was
and Rahul during the year amounted to R30,000 each. Net profit for
74,17,600.
Q.9. Divisible profit credited to Harshit's Capital A/c will be :
(A) 1,81,500 (B) 1,82,700
(C) 1,21,000 (D) 1,21,800
will be :
Q. 10. Balance of Rahul's Capital A/c on 31st March 2023
(A) R1,1l1,100 (B) 1,10,140
(C) ?1,95,400 (D)1,95,800
of each month and interest on his
Q. 11. Aayush withdrew a fixed amount at the beginning drawings is
drawingsamounted to 3,900at the end of the year. If the rate of interest on
6% p.a. his total drawings were :
(A) 65,000 (B) 1,20,000
(C) 10,000 (D) 1,30,000

Q. 12. If nothing is stated in partnership deed: full year.

(A) Interest on Drawings will be charged @6% p.a. for
average period of six months.
(B) Interest on Drawings will be charged (@6% p.a. for an
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(C) No interest will be charged on Drawings.
(D) Interest on Drawings will be charged @12% p.a. 1
Q. 13. Aand Bare partners sharing profits in 3 :2with capitals of 6,00,000 and 4,00,000
respectively. They are entitled to interest on their capitals @10% p.a. and Ais also entitled
to a rent of 10,000 per month for use of his property by the fim. Net Profit earned by the
firm for the year ended 3lst March 2022 was 3,00,000. B's share of profit will be :
(A) T80,000 (B) 72,000
(C) 32,000 (D) 1,20,000 1

OR
Sarvesh. Sriniketan and Srinivas are partners in the ratio of5 :3:2. If Sriniketan's share
of profit at the end of the year amounted to 1,50,000, what vwill be Sarvesh's share of
protits?
(A) ES,00,000 (B) 1,50,000
(C) 3,00.000 (D) 2,50,000
Q. 14. Employee Stock Option Plan is a :
(A) Obligation to buy shares at a predetermined price on a future date.
(B) Obligation to buy shares at a unknown price on a future date.
(C) Option to buy shares at a unknown price on a future date.
(D) Option to buy shares at a predetermined price on a future date. 1
Q. 15. 4 Lid. issued 50,000, 6% Debentures of 100 each at a discount of 4% redeemable at a
certain rate of premium. Existing balance in Securities Premium before issuing these
debentures is 1,50,000. Loss on issue of debentures was immediately written off and
3,00,000 were charged to Statement of Profit and Loss. At what rate of premium these
debentures are redeemable?
(A) 3% (B) 4%
(C) 5% (D) 6% 1

Q.16. Interest on debentures is paid on :

(A) Issue Price (B) Either on Issue Price or on Nominal Value
(C) Nominal Value (D) None of the above 1

OR
When debentures are issued as collateral security, which account is debited?
(A) Loss on issue of debenture Alc (B) Debenture Suspense A/c
(C) Bank A/c (D) Debenture A/c
Q. 17. A, B and C were partners in a firm. On 1-4-2021 their capitals stood at 4,00,000,
<2,00,000 and 2,00,000 respectively. As per the provisions of the partnership deed:
(a) A was entitled for a salary of 5,000 p.m.
(b) Partners were entitled to interest on capital at 5% p.a.
(c) Profits were to be shared in the ratios of capitals.
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The net profit for the year ended 31-3-2022 of 3,00,000 was divided equally without
providing for the above terms.
Pass an adjustment entry to rectify the above error. 3

Q. 18. Manu, Kavita and Om were partners sharing profits and losses in the ratio of 3: 2:1.
Kavita died on 30th June, 2022 and Manu and Om decided to share future profits in the
ratio of 3 : 2. Her share of profit for the intervening period was based on the sales during
that period, which were 7,20,000. The rate of profit during the past four years had been
10% on sales. The firm closes its books on 31st March every year. Calculate Kavita's
share of profit and pass the necessary journal entry. 3

OR
A, Band Care partners in a firm. Their Capital Accounts stood at 8,00,000; 76,00,000
and 4,00,000respectively on 1st April, 202 1. They shared profits and losses in the ratio
of 3:2: 1l respectively. Partners are entitled to interest on capital @6% per annum and
salary to Band C@4,000 per month and 6,000 per quarter respectively as per the
provisions of Partnership Deed.
B's share of profit including interest on capital but excluding salary is guaranteed at a
minimum of ?82,000 p.a. Any deficiency arising on that account shall be met by C. Profit
for the year ended 31st March, 2022 amounted to 73,12,000. Prepare Profit and Loss
Appropriation Account for the year ended 31st March, 2022.
Q. 19. Voltas Ltd. purchased plant & machinery from Euro Products Ltd. and paid the
consideration as follows :
() Issued a cheque for 15,00,000;
(ii) Issued a Bill of Exchange for3months for 78,00,000;
(ii)) Issued 7,000; 8% Debentures of100 each at par redeemable at 5% premium after 5
years.
Pass journal entries. 3

OR
A
Company had 25,00,000, 7% Debentures outstanding as on lst April, 2019. During the
year company took a loan of 5,00,000 from the State Bank of India for which the
Company placed with the bank debentures for 6,00,000 as Collateral Security. Pass
journal entries. Also show how the Debentures and Bank Loan will appear in the
Company'sBalance Sheet as at 31st March, 2020.
Q. 20. Charu, Divya and Esha were partners in a firm. Pass journal entries for the
following
transactions on dissolution of the firm after various assets and external liabilities have been
transferred to Realisation A/e:
(i) An unrecorded asset of 40,000 was given to an unrecorded creditor of
60,000 in
settlement of his claim of ?45,000 and the balance was paid to him in cash.
(ii) AMotorbike which was not recorded in the books was taken
over by Charu at
10,000, whereas its expected value was 15,00.
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(iii) Creditors,to whom the firm owed 50,000, accepted stock of 30,000 at a discount
thebalance in cash.
andcustomer,
X,20%
(iv) of an old whose account for 20,000 was written off as bad in the previous
written off.
paid 40% of the amount
year, of 20,000 out of her pocket and
realisation expenses she was to get a
(v) Esha paid the 725,000for completing the dissolution process.
fixed remuneration of 42,000.
was discharged at
(vi) Divya's loan of 40,000 the ratio of3 :2:1.D wae 3
3
sharing profits in
0.21. A. Band Cwere partners in afirm 3/16th from A and 1/16th f
intothe fim with 1/4th share in profits, which he got
The total capital of the firm as agreed upon was 1,20,000 and Dbrought in
equivalent to 1/4th of this amount as his capital. The capital of other partners also had to
in or pavino cs
be adiusted in the ratioof their respective share in profits bytobringing
revaluation of assets a
The capitals of A. B and C after all adjustments related
30,000 respectively,
reassessment of liabilities were 40,000; 35,000 and
entries for the
Calculate the new capitals of 4. B andC and record the necessary journal
above transactions. 4

divided into
Q.22. Shivpriya Ld. was formed with a nominal Share Capital of 50,00,000
50,000shares of 100each. The Company offers 30,000 shares to the public payable 30
per share on Application, 30 per share on Allotment and the balance on First and Final
Call. Applications were received for 28,000shares. Allmoney payable on allotment was
duly received, except on 500 shares held by X. First and Final Call was not made by the
Company.
How would you show the Share Capital' in the Balance Sheet of Shivpriya Ltd.? Also
prepare notes to accounts for the same. 4

Q. 23. Pioneer Lid. invited applications for 11,000 shares of ?100each to be issued ata premium
of 10% payable as follows :
On Application 725
On Allotment 740
On First & Final Call 35
Applications were received for 10,000 shares and al] of these were accepted. All tne
money due was received except the first and final call on 100 shares which were forfeited.
60 of these forfeited shares were reissued a 90 per share credited as fully paid.
You are required to Pass the necessary Journal Entries. 6

OR
XLtd. issued shares of 50 each at a premium of 12 per share. Amount was payableas
follows :
On Application
On Allotment (including premium 3)
On First Call (including premium 4)
On Final Call
Z20 (including premium 5)
17
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(i) Anil, who held 500 shares did not pay allotment and first call and his shares were
forfeited.
(ii) Bimal, who held 800 shares did not pay first call and his shares were forfeited.
(iii) Chander, who held 1,000 shares failed to pay final call and his shares were forfeited.
50% shares of Anil and Bimal were reissued at 10% discount. Give journal entries for
forfeiture and reissue of shares.
Q. 24. Aand Bshare the profits of abusiness in the ratio of 2:1. They admit Cinto the firm for
a1/5th share in the profits which he acquires from AandB in the ratio of 3: 2. On the date
of admission of C, the Balance Sheet of the firm was as follows:
Liabilities Assets
Creditors 3,00,000 | Machinery 620,000
A's Capital 7.00,000 Land and Building 5,00,000
B'sCapital 5,00,000 Stock 2.00,000
Debtors 1,60,000
Bank 20,000
15,00,000 15.00,000

From the information given below, complete Revaluation Account, Partners' Capital
Accounts and the new Balance Sheet of 4. B and C.
REVALUATION ACCOUNT
Particulars Particular
To Stock Alc
By Land & Buitding Alc
To Profit transferred to Capital A/cs:

B
2,00,000

CAPITAL ACCOUNTS
Particulars Partieulars B

To Bal. cld By
ByRevahuation
Ae 1,00,000
By Bank Ale
By Premium for
Goodwill Alc 60,000
3,00,000

BALANCESHEET (Atter Admissieon)

Liabitities Assers
Creditors Bank
Capitals Debtors
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Stock
Land and Building
C
Machinery

6
OR
ratio of3:2:1. Their Balance
A, B and Cwere partners in a firm sharing profits in the
Sheet as at 31st March, 2023 was follows:
Assets
Liebilities
Sundry Creditors 1,80,000 Cash at Bank S0,000
Workmen Compensation Reserve L,00,000 Debtors 2,40,000
Capitals Stock 3,70,000
A 4,50,000 Plant &Machinery 5,80,000
B 3,30,000 Goodwill 90,000
C 2,70,000 10,50,000
13.30,000 13,30,000

Cretired on that date and Aand B agreed to share future profits in 5:3. Following terms
were agreed :
(i) There was an unrecorded creditor of 30,000
(ii) There is a claim for Workmen Compensation amounting to 40,000.
(ii) Cis to be paid 3,00,000 in full settlement of his account.
(iv) Cis to be paid immediately and for this sufficient cash is to be brought in by Aand B
in such a way that their capitals are proportionate to their profit sharing ratio and
leave a balance of 20,000 in the bank.
Prepare Capital Accounts of the partners and draft the Balance Sheet of the new firm.

Q. 25. Karan and Vijay are partners in a firm sharing profits and losses in the ratio of4 :3. They
admit Shrey for 1/3 share in the profits.
On the date of Shrey's admission :
(a) The capitals of Karan and Vijay are : 40,000and 730,000respectively.
(b) Profit and Loss Account has a debit balance of 7,000.
(c) General Reserve shows a balance of 21,000 which is not to be disturbed.
(d) Goodwillof the firn is valued at 42,000.
(e) The cash at bank is 15,000.
() Shrey brings in proportionate capital and his share of goodwill in cash.
You are required to prepare:
(i) Partner's Capital Accounts.
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(ii) Cash at Bank Account of the reconstituted firm on the date of

Shrey's admission. 6
(ISC Sample Paper 2023)
0. 26. On 1.7.2021, Mehta Ltd. issued 8,000, 9% debentures
of?1,000 each at a discount of 6%,
redeemable at a premium of 5% after three years. The company closes itsbooks on 31st
March every year. Interest on 9% debentures is payable half-yearly. Balance in Security
Premium A/c is 10,00,000.
Pass necessary journal entries for the year ended 31.3.2022. 6

Part B
Analysis of Financial Statements
Q.27. Inventory 3,00,000 (excluding loose tools 90,000); Trade Receivables ?1,10,000;
Trade Payables 1,80,000; Prepaid Expenses 40,000 and Goodwill is 245,000. Current
Ratio will be :
(A) 2.75: 1 (B) 2.5:1
(C) 3:1 (D) 3.25: 1 1
Q. 28. A transaction involving decrease in Debt-Equity Ratio and increase in Current Ratio is
(A) Issue of Debentures against the purchase of Machinery
(B) Redemption of Preference Shares for Cash.
(C) Issue of Equity Shares for Cash.
(D) Issue of Debentures for Cash. 1

OR
Calculate fixed assets from the following:
Share Capital 7,00,000; Reserve & Surplus 3,00,000; Current Assets
1,50,000;
Proprietary Ratio 0.8:1.
(A) R12,50,000 (B) 11,00,000
(C) 14,00,000 (D) ? 6,50,000
Q. 29. X Ltd. is carrying on a Mutual fund business. It invested
20,00,000 in shares and
8,00,000 in debentures of various companies during the year. It received
dividend and interest. Find out cash flows from investing activities. ?I,20,000 as
Q. 30. While preparing cash flow statement, where would you
show 'Cash withdrawn from
Bank'?
1
OR
Revenue from Operations <8,00,000; Inventory Turnover Ratio 5; Gross Profit 259%.Find
out the value of Closing Inventory, if Closing Inventory is 20,000
Inventory : more than the Opening
(A) ?1,40,000 (B) ?1,18,000
(C) ?1,30,000 (D) 1,38,000
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will the following items be shovwn in the

Q. 31. Under which major headings and sub-headings
the Companies Act, 2013:
Balance Sheet of acompany as per Schedule lII Part I of
() Balance of the Statement of Profit and Loss.
(ii) Loan of 1,0,000 payable after three years.
(iii) Short-term deposits payable on demand.
(iv) Trade marks.
(v) Provision for warranties.
3
(v) Capital advances.

Q. 32. Compute Current Liabilities from the following :

Goodwili 1,50,000
1,70,000
Inventory (excluding loose tools 30,000) 1,70,000
Trade Receivables
10,000 1,60,000
Less: Provision for Doubtful Debts
30,000
Cash at Bank
1.8:1
Current Ratio
3

OR

From the following information,calculate Debt to Capital Employed Ratio :

Total Debt 4,00,000
8% Long term Debt 3,60,000
Non Current Assets 9,60,000
Current Assets 2,80,000
Cash and Cash Equivalents 1,20,000

Loss for the years ended 31st

Q. 33. From the following extract of the Statement of Profit and Loss :
March, 2022 and 2023 of XYZ L1d., prepare Comparative Statement of Profit and
313.2023 313.2022

40,00,000 30,00,000
Revenue from Operations 22,00,000 18,00,000
Employees Bernefit Expernses 2,00,000 4,00,000
Other Expenses 40%
Tax Rate 40%

OR
From the following Balance Sheet of R Lid., Prepare a Common Size Statement :
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BALANCE SHEET
us at 31st Murch, 2023

Particuias Note 332023 3132022

L EQUITY AND LIABILITIES:

1. Shareholder's Funds:
(a) Share Capital $,00,000 4,00,000
(b) Reserves and Surplus L60,000 1,20,000
2. Current Liabilities:
(a) Trade Payables 49,000 80.000
Total 8,00,000 6.00.000

IL. ASSETS:
1 Non-Current Assets
(a) Property, Plant and Equípment and Intangible Assets
(). Property, Plant and Equipment 3.60.000 3,00,000
2. Current Assets :
(a) Inventories 4.00,000 2.60,000
(b) Cash and Cash Equivalents 40,000 40,000
Total 8,00,000 6,00,000

Q. 34. From the following information, calculate Cash Flow from Operating Activities :
Particulars 3ise Marek 3lst Mach
3022 2021

Surplus (ie., Balance in the Statement of

Profit and Loss) 71,000 89,000
Inventory 12.000 4.000
Trade Receivables 58000 45.000
Outstanding Expenses 14600 10,000
Goodwill 57,000 27,000
Cash in Hand 9.000 12,000
Machinery 82.000 S6,000
() A piece of machinery costing *50,000 on which depreciation of 20,000 had been
charged was sold for ? 10,000. Depreciation charged during the year was 18,000.
(ii) Income Tax 23,000 was paid during the year.
(ii) Dividend paid during the year was 36,000. 6