KENDRIYA VIDYALAYA SANGATHAN SILCHAR REGION

PRE-BOARD – I EXAMINATION, 2023-24

Set-II
Subject: ACCOUNTANCY (055)
Max. Marks: 80 Dur ation: 3 Hrs.

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. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
5. Questions Nos. from 21, 22 and 33 carries 4 marks each
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each
7. There is no overall choice. However, an internal choice has been provided in 7 questions
of one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six
marks.

Part A
1 What are super profits 1
a)Actual profit – Normal Profit b) Normal Profit - Actual profit
c) Actual profit + Normal Profit d)None of the above
2 The goodwill of the firm is not affected by: 1
a) Location of the firm b) Reputation of the firm
c) Better customer services d) None of the above
3 In which of the following case, revaluation account is debited? 1
a) Increase in value of asset b) Decrease in value of asset
c) Decrease in value of liability d) No change in value of assets
4 A,B and C were are partners in a firm sharing profits in the ratio of 3:4:1 .They decided to 1
share profits equally w.e.f from 1 .4.2019. On that date the profit and loss account
showed the credit balance of ₹ 96,000.instead of closing the profit and loss account ,it
was decided to record an adjustment entry reflecting the change in profit sharing ratio .In
the journal entry:
a) Dr. A by ₹ 4,000; Dr. B by ₹ 16,000; Cr C by ₹ 20,000
b) Cr. A by ₹ 4,000; Cr. B by ₹ 16,000; Dr C by ₹ 20,000
c) Cr. A by ₹ 16,000; Cr. B by ₹ 4,000; Dr C by ₹ 20,000
d) Dr. A by ₹ 16,000; Dr. B by ₹ 4,000; Cr C by ₹ 20,000
OR
A and B are partners in a firm sharing profits in the ratio of 3:2. They decided to
share future profits equally. Calculate A’s gain or sacrifice
(a) 2/10 (Sacrifice) (b) 5/10 (Gain)
 (c) 1/10 (Gain) (d) 1/10 (Sacrifice)
5 X,Y and Z are partners sharing profits and losses in the ratio of 5:3:2.They decide to share 1
the future profits in the ratio of 3:2:1. Workmen compensation reserve appearing in the
balance sheet on the date if no information is available for the same will be:
a) Distributed among the partners in old profit sharing ratio
b) Distributed among the partners in new profit sharing ratio
c) Distributed among the partners in capital ratio
d) Carried forward to new balance sheet without any adjustment
OR
In absence of partnership deed, interest on capital is allowed @ _______ , whereas interest
on drawing is charged @ ________ .
.a) 6% per annum, Nil b) Nil, Nil
.c) Nil, 6% per annum d) 6%, 6% per annum
6 Reserves and accumulated profits are transferred to partner's capital accounts at the 1
time of reconstitution in:
a) Gaining ratio b)Sacrificing Ratio
c) Old profit-sharing ratio d)New profit-sharing ratio
OR
X,Y and Z are partners sharing profits and losses in the ratio of 5:3:2.They decide to share
the future profits in the ratio of 3:2:1. Workmen compensation reserve appearing in the
balance sheet on the date if no information is available for the same will be:
a) Distributed among the partners in old profit sharing ratio
b) Distributed among the partners in new profit sharing ratio
c) Distributed among the partners in capital ratio
d) Carried forward to new balance sheet without any adjustment
7 The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General Reserve 1
Account amounting ₹ 1,80,000. S joined as a new partner and the new profit sharing ratio
was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the
books of accounts. The effect will be:
a) P will be credited by ₹ 36,000 b) P will be debited by ₹ 54,000
c) P will be credited by ₹ 54,000 d) P will be credited by ₹ 54,000
8 Heena and Sudha share Profit & Loss equally. Their capitals were ₹1,20,000 and ₹ 80,000 1
respectively. There was also a balance of ₹ 60,000 in General reserve and revaluation gain
amounted to ₹ 15,000. They admit friend Teena with 1/5 share. Teena brings ₹ 90,000 as
capital. Calculate the amount of goodwill of the firm.
a) ₹ 20,000 b) ₹ 1,00,000
c) ₹ 85,000 d) None of the above
9 Match the following with respect to the treatment of goodwill: 1
i. Change in Profit Sharing Ratio A Gaining Partners Capital A/c Dr.
To Retiring Partners Capital A/c
ii. Admission of a Partner B Gaining Partners Capital A/c Dr.
To Sacrificing Partners Capital A/c
iii. Retirement of a Partner C Premium for Goodwill A/c Dr.
To Sacrificing Partners Capital A/c
a) i- C, ii-A, iii-B b) i- A, ii-B, iii-C
c) i- B, ii-A, iii-C d) i- B, ii-C, iii-A
10 As per Section 37 of the Indian Partnership Act, 1932, interest @ ----------- is payable to the 1
retiring partner if full or part of his dues remain unpaid.
a) 9% p.m. b) 12% p.m.
c) 6% p.m. d) None of the above
OR
X and Y are partners in 5:3. They admitted Z as a partner for 1/6th share which he takes
entirely from X. Calculate the new ratio of X, Y and Z.
a)15:5:4 b) 5:3:6
c)11:9:6 d) 11:9:4
11 At the time of dissolution total assets are worth ₹ 3,00,000 and external liabilities are 1
worth ₹ 1,20,000. If assets realised 120% and realisation expenses paid were ₹ 4,000, then
profit/loss on realisation will be:
a)Profit ₹ 56,000 b) Loss ₹ 56,000
c)Profit ₹ 60,000 d) Loss ₹ 60,000
12 T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro rata basis. The 1
amount payable on application is ₹ 2. Manoranjan applied for 450 shares. The number of
shares allotted and the amount carried forward for adjustment against allotment money
due from him is:
a) 150 shares,₹375 b) 375 shares,₹150
c) 400 shares,₹100 d) 300 shares,₹300
13 Z limited issued shares of ₹100 each at a premium of 10%. Mr. Q purchased 500 shares 1
and paid ₹20 on application but did not pay the allotment money of ₹30. If the company
forfeited his 30% shares, the forfeiture account will be credited by :
a) ₹ 4500 b)₹ 3500
c) ₹ 1650 d) ₹ 3000
14 XYZ limited issued 4000,12% debentures of ₹ 100 each at a premium of 5% .the total 1
amount of interest for one year will be:
a)₹ 50,000 b) ₹ 58,000
c)₹ 48,000 d) ₹ 50,400.
OR
Maximum limit of premium on shares is :
(a.) 32% (b.) 20%
(c.) No limit (d.) 100%
15 ABC took over the assets of ₹ 7,60,000 and liabilities of ₹ 80,000 of Y limited for purchase 1
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.
16 If X ltd issued 1,000; 10% Debentures of ₹ 100 each at a discount of 5% but redeemable 1
after 4 years at a premium of 6%, loss on issue of Debentures a/c will be debited by
_______________________.
a)₹ 6,000/- b) ₹ 5,000/-
c)₹ 11,000/- d) None of these
OR
XYZ limited issued 4000,12% debentures of Rs100 each at a premium of 5% .the total
amount of interest for one year will be:
 a) ₹58,000 b) ₹ 50,000
c) ₹48,000 d) ₹ 50,400.

17 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their 3
fixed capitals were ₹ 15, 00,000, ₹ 30, 00,000 and ₹ 6, 00,000 respectively. For the year
2009 interest on capital was credited to them @ 12% instead of 10%.
Pass the necessary adjustment entry.
OR
A, B and C entered into partnership on 1st April, 2008 to share profits & losses in the ratio
of 4:3:3. A, however, personally guaranteed that C's share of profit after charging interest
on Capital @ 5% p.a. would not be less than ₹ 40,000 in any year. The Capital
contributions were: A, ₹ 3, 00,000; B, ₹ 2, 00,000 and C, ₹ 1, 50,000.
The profit for the year ended on 31st March, 2008 amounted to ₹ 1, 60,000.
Show the Profit & Loss Appropriation Account.
18 Sabita, Babita and Kavita were partners in a firm sharing profits in 3 : 2 : 1 ratio. The firm 3
closes its books on 31st March every year. Babita died on 12th June, 2020. On Babita’s
death, the goodwill of the firm was valued at ₹ 60,000. His share in the profits of the firm
till the time of his death was to be calculated on the basis of previous year’s profit which
was ₹ 1,50,000. According to Babita’s will, the executors should donate his share to an
orphanage for girls.
Pass necessary journal entries for the treatment of goodwill and Babita’s share of profit at
the time of his death.
19 X, Y and Z are partners in a firm sharing profits and losses in the ratio of 5:4:1.The 3
Partnership agreement provides that the share of profit of the deceased partner will be
worked out on the basis of revenue from operations. The revenue from operations for the
year 2009-10 was ₹ 8,00,000 and the revenue from operations from April 1, 2010 to June
30, 2010 was ₹ 1,50,000. The profit for the year ended 31st March 2010 amounted to ₹
1,00,000. Y died on 30th June 2010. Calculate his share of profit and pass necessary journal
entry.
20 Deepak Ltd. company purchased furniture ₹ 2,20,000 from M/s Furniture Mart. 50% of the 3
amount was paid to Furniture Mart by accepting a bill of exchange and for the balance the
company issued 9% debentures of ₹ 100 each at a premium of 10% in favour of Furniture
Mart. Pass necessary journal entries in the books of Deepak Ltd company for above
transactions.
21 Aksh, Bablu and Chunnu are partners sharing profits and losses in the ratio of 5:4:1. Their capitals 4
were ₹ 1, 00,000, ₹ 3, 00,000 and ₹ 6,00,000 respectively. The profit for the year ending 31,
March, 2010 was ₹ 1, 00,000. B died on 30th June 2010. Calculate Bablu’s share of profit till the date
of death and pass necessary journal entry.

22 Differentiate between Reserve capital and capital reserve. 4

23 X and Y are partners as they share profits in the proportion of 3:1 their balance sheet as at 6
31.03.14 as follows.
BALANCE SHEET
Liabilities ₹ Assets ₹
Capital Account Land 1,65,000
X 1,76,000 Furniture 24,500
Y 1,45,200 Inventory 1,32,000
 Creditors 91,300 Trade receivable 35,200
Bills Trade receivable 28,600
Cash 27,500
4,12,500 4,12,500

On the same date, Z is admitted into partnership for 1/5th share on the following terms
* Goodwill is to be valued at 3½ years purchase of average profits of last for year which
was ₹ 20,000 ₹ 17,000 ₹ 9,000 (Loss) respectively.
* Inventory is fund to be overvalued by ₹ 2,000 Furniture is reduced and Land to be
appreciated by 10% each, a provision for Bad Debts @ 12% is to be created on Trade
receivable and a Provision of Discount of Creditors @ 4% is to be created.
* A liability to the extent of ₹ 1,500 should be created for a claim against the firm for
damages.
* An item of ₹ 1,000 included in Creditors is not likely to be claimed, and hence it should
be written off.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new
firm if Z is to contribute proportionate capital and goodwill. The capital of partners is to
be in profit sharing ratio by opening current Accounts.

OR
Rashmi and Pooja are partners in a firm. They share profits and losses in the ratio of 2:1.
They admit Santosh into partnership firm on the condition that she will bring ₹ 30,000 for
Goodwill and will bring such an amount that her capital will be 1/3 of the total capital of
the new firm. Santosh will be given 1/3 share in future profits. At the time of admission of
Santosh, the Balance Sheet of Rashmi and Pooja was as under:
Liabilities ₹ Assets ₹
Capital Account Cash 90,000
Rashmi 1,35,000 Machinery 1,20,000
Pooja 1,25,000 Furniture 10,000
Creditors 30,000 Inventory 50,000
Bills Payable 10,000 Trade receivable 30,000
3,00,000 3,00,000
It was decided to:
Revalue inventory at ₹ 45,000.
Depreciated furniture by 10% and machinery by 5%.
Make provision of ₹ 3,000 on sundry trade receivable for doubtful debts.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new
firm. Give full workings.
24 Asha and Babli are partners sharing profits and losses equally. They decided to dissolve 6
their firm. Assets and Liabilities have been transferred to Realisation Account. Pass
necessary Journal entries for the following.
a) Asha was to bear all the expenses of Realisation for which he was given a
commission of ₹ 4000.
b) Advertisement suspense account appeared on the asset side of the Balance
sheet amounting ₹ 28000
c) Creditors of ₹ 40,000 agreed to take over the inventory of ₹ 30,000 at a
discount of 10% and the balance in cash.
 d) Babli agreed to take over Investments of ₹ 5000 at ₹ 4900
e) Loan of ₹ 15000 advanced by Asha to the firm was paid off.
f) Bank loan of ₹ 12000 was paid off.
25 Mr. Rohita Langur start a construction business after completing BBA from Chennai. 6
He registered his business organisation under company act. 2013 named Rohita Langur
construction Pvt. Ltd. After completing the registration process he start the business.
Rohita Langur construction Pvt. Ltd. required some capital so he issued to public 20, 000
Equity shares of ₹ 10 each at a premium of ₹ 2per share payable as follows-
On Application – ₹ 2
On Allotment- ₹ 5 (including premium)
On First call – ₹3
On Final call- ₹2
Applications were received for 30,000 shares. Pro-rata allotment was made
to the applicants of 24,000 shares and balance rejected.
Money overpaid on Application was adjusted towards allotment.
Ramesh to whom 400shares were allotted, failed to pay Allotment and on his failure
to pay first call, his shares were forfeited. Mohan holding 600 shares failed to pay both
the calls. His shares were also forfeited. 800shares were reissued at Rs 9per share fully
paid up (including all the shares of Ramesh).
Pass necessary journal entries in the books of the Rohita Langur construction Pvt. Ltd.
26 X Ltd issued 20,000 Equity shares of ₹ 10 each at a premium of ₹ 2 per 6
share payable as follows-
On Applivation – ₹ 2
On Allotment- ₹ 5(including premium)
On First call – ₹ 3
On Final call- ₹ 2
Applications were received for 30,000 shares. Pro-rata
allotment was made to the applicants of 24,000 shares and balance
rejected.
Money overpaid on Application was adjusted towards allotment .
Ramesh to whom 400 shares were alloted failed to pay Allotment and on
his failure to pay first call, his shares were forfeited. Mohan holding 600
shares failed to pay both the calls. His shares were also forfeited. 800
shares were reissued at ₹ 9 per share fully paid up(including all the shares
of Ramesh) Journalise. Also prepare the Balance sheet of the company

OR
A Ltd invites for public subscription 50, 000Equity shares of Rs 10each, Issued to the
Public after permitted by Companies Act 2013, the amounts were payable as follows-
Rs 3 on Application,
 Rs 3 on Allotment
Rs 2 on First Call
Balance – on final call
Applications were received for 55, 000 shares and the allotment was made as follows-
)1(To the applicants of 35,000 shares- in full
)2(To the applicants of 20, 000 shares – 15, 000 shares.
Excess money received on Application was reserved for Allotment.
A, a shareholder who was allotted 1500 shares out of the group applying for 20, 000
shares, failed to pay allotment money and money due on calls. These shares were
forfeited and 1000 shares were reissued as fully paid for Rs 8 per share. Discount on
issue of the shares is to be written off in the first three years.
Pass necessary journal entries in the books of the Company

Part B
The question no. 27 and 28 given below consist of an assertion and a reason. Use the following key to
choose the appropriate answer.
A.) Both Assertion (A) and Reason (R) are correct statements, and Reason (R) is the explanation
of the Assertion (A).
B.) Both Assertion (A) and Reason (R) are correct statements, and Reason (R) is not the
explanation of the Assertion (A).
C.) Assertion (A) is true, Reason (R) is false.
D.) Assertion (A) is false, Reason (R) is true.
27 Assertion (A) :Companies Act 2013, allows issue of shares at discount. 1
Reason (R) :The rate of discount on re-issue cannot exceed the amount of forfeited on
re-issue of shares.
28 Assertion (A) : Loose Tools and stores and spare parts are excluded from current assets 1
while calculating current ratio.
Reason (R) : Loose stools are the part of tangible fixed assets
29 Purchase of securities by a non- finance company is ______________. 1
(a) Investing
(b) Operating
(c) Financing
(d) None of these.
OR
Loose tools are categorised under the head ___________________ and sub-head
___________.

a) Current Assets, Other current assets

b) Current Assets, Inventories
c) Current Assets, Trade Receivable
d) Non-Current assets, Property, Plant and Equipment (fixed assets)
30 From the following information, the outflow of cash for the purchase of machinery will 1
be:
Written down value of machinery as on 1.4.2011 - Rs 5,00,000
Written down value of machinery as on 31.3.2012 -Rs7,00,000
 Depreciation on machinery charged during the year Rs 60,000
Machinery having book value Rs 25,000 sold for Rs 20,000
(a) Rs 2,70,000
(b) Rs 2,80,000
(c) Rs 2,75,000
(d) Rs 2,85,000
31 Classify the following items under Major heads and Sub-heads (if any) in the Balance 3
Sheet of the Company as per Schedule III of the Companies Act 2013.
i) Proposed dividend.
ii) Fixed Deposit from Public.
iii) livestock
32 3
From the following Balance Sheet of Averse Ltd. as at 31st March, 2021 and 2020,
prepare a Comparative Balance Sheet.
Balance Sheet as at 31st March, 2021 and 2020

Particulars Note 31st March, 31st

No. 2021 March,
2020
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(i) Share Capital 40,00,000 30,00,000
(ii) Reserves and Surplus 6,00,000 8,00,000
2. Non-current Liabilities
Long-term Borrowings 18,00,000 12,00,000
3. Current Liabilities
Trade Payables 6,00,000 4,00,000
Total 70,00,000 54,00,000
II. ASSETS
1. Non-current Assets
(i) Fixed Assets
(a) Tangible Assets 40,00,000 30,00,000
(b) Intangible 18,00,000 12,00,000
2. Current Assets
(i) Inventories 6,00,000 8,00,000
(ii) Cash and Cash Equivalents 6,00,000 4,00,000
Total 70,00,000 54,00,000

OR
Prepare a common size statement of profit and loss from the following information
extracted from the statement of profit and loss for the years ended 31st March, 2020
and 2021.
Particulars Note 31st March, 2021 31st March, 2020
No.
Revenue from 400% of Cost of 300% of Cost of
Operations Material Consumed Material Consumed
Cost of Material 4,40,000 4,00,000
Consumed
Other Expenses 30% of Cost of 20% of Cost of
Materials Consumed Material Consumed
Tax Rate 50% 50%
33 Determine Net Assets Turnover ratio from the following information: - 4
Profits after Tax were ₹ 6,00,000; Tax rate was 40%; 15% Debentures were of
₹20,00,000; 10% Bank Loan was ₹ 20,00,000; 12% Preference Share Capital ₹ 30,00,000;
Equity Share Capital ₹ 40,00,000; Reserves and Surplus were ₹ 10, 00,000; Sales
₹3,75,00,000 and Sales Return ₹ 15, 00,000.
OR
 From the following details obtained from the financial statements of Jeev Ltd., Calculate
Interest coverage Ratio : Net Profit after tax ₹ 1,20,000, 12% Long-term Debt ₹20,00,000,
Tax Rate 40%.
34 6
Prepare a cash flow statement on the basis of the information given in the balance
sheets of Simco Ltd as at 31st March, 2021 and 2020.
Particulars Note 31st March, 31st March,
No. 2021 2020
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(i) Share Capital 2,00,000 1,50,000
(ii) Reserves and Surplus 1 90,000 75,000
2. Non-current Liabilities
Long-term Borrowings 87,500 87,500
3. Current Liabilities
Trade Payables 10,000 76,000
Total 3,88,500 3,88,500
II. ASSETS
1. Non-current Assets
(i) Fixed Assets
(a) Tangible Assets 1,87,500 1,40,000
(b) Non-current Investments 1,05,500 1,02,500
2. Current Assets
(i) Current Investments (Marketable) 12,500 33,500 5,500
(ii) Inventories 4,000 23,000
(iii) Trade Receivables 9,500 84,000
(iv) Cash and Cash Equivalents 68,500
Total 3,88,500 3,88,500

Notes to Accounts:
Particulars 31st March, 31st March,
2021 2020
1. Reserves and Surplus 90,000 75,000
Surplus (Balance in statement of profit and
loss)