Class – XII RE FIRST PRE-BOARD EXAMINATION

M.M. 80
Date: SUBJECT – ACCOUNTANCY Time 3 Hrs.

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PART A
(Accounting for Not-for-Profit Organizations, Partnership Firms and Companies)

1 Milan, Suman and Aman were partners sharing profits in the ratio of 2:2:1. They decided to share 1
future profits in the ratio of 7:5:3 with effect from 1st April, 2019. After the revaluation of assets and
reassessment of liabilities , Revaluation account showed a loss of Rs. 15,000. The amount to be
debited to Milan’s capital account because of loss on revaluation will be:
(a) Rs. 15,000 (b) Rs. 6,000 (c) Rs. 7,000 (d) Rs. 5,000

2. Issued 20,000, 12% Debentures of Rs. 100 each at a premium of 4%, redeemable at a premium of 1
10%. In such case:
(a) Loss on issue will be debited by Rs. 1,20,000.
(b) Loss on issue will be debited by Rs. 2,00,000.
(c) Loss on issue will be debited by Rs. 2,88,000.
(d) Premium on redemption will be credited by Rs. 1,20,000

3. Riva, Meeta and Asha were partners sharing profits and losses in the ratio of 1:2:3. Meetu died on 1
31st July, 2019. According to the partnership deed, her share of profit from the closure of last
accounting year till the date of her death was to be calculated on the basis of aggregate profits of two
completed years before her death. Profits of the firm for the years ending 31st March, 2018 and 2019
were Rs. 46,000 and Rs. 44,000 respectively. The firm closes its books on 31st March every year.
Meetu’s share of profit till the date of her death will be:
(a) Rs. 20,000 (b) Rs. 5000 (c) Rs. 10,000 (d) Rs. 45,000

4. A, B, C and D are partners sharing profits in the ratio of 4:3:2:1. They admit E as a new partner for 1
1/10th share. It is agreed that C and D will retain their original shares. What will be New profit-
sharing ratio?
(a) 4:3:2:1:1 (b) 24:18:14:7:7 (c) 7:5:4:2:2 (d) 36:27:18:9:10

5. Moti Ltd. forfeited 2,000 shares of Rs. 10 each, Rs. 8 called up, for non-payment of first call of Rs. 1
2 per share. Out of these, 1500 shares were reissued for Rs. 10,500 as Rs. 8 paid up. What is the
amount to be transferred to Capital reserve?
(a) Rs. 4,500 (b) 10,500 (c) Rs. 7,500 (d) Rs. 14,500

6. A and B were partners. C joins them and it is decided that A’s share will be half of B’s share and C’s 1
share will be one third of A’s share, find new profit-sharing ratio:
(a) 1:2:1 (b) 2:4:1 (c) 3:6:2 (d) 3:6:1

7. A, B and C sharing profits and losses in the ratio of 3:2:1, decide to share future profits and losses 1
in the ratio of 4:3:2. Give journal entry to distribute Investment fluctuation reserve of Rs. 50,000 at
the time of change in profit sharing ratio, Investment (market value Rs. 1,30,000) appears at Rs.
1,50,000.
8. Which of the following is not a source of funds for a non-profit organisation?
(a) Subscription (b) Honorarium 1
(c) Surplus from Operations (d) Entrance fees
9. A, B, C and D were partners sharing profits in the ratio of 4:3:2:1. A retires and his share is acquired
by C and D in the ratio of 3:1. What will be the new ratio? 1
(a) 3:5:2 (b) 3:2:1 (c) 3:3:4 (d) 5:3:2

10. On dissolution, unrecorded liabilities were taken over by a partner are shown on the: 1
(a) Dr. side of Partner’s Capital account
(b) Dr. side of Realisation account
(c) Cr. side of Realisation account
(d) Cr. side of Cash/ Bank account

11. A and B are partners with capital of Rs. 3,00,000 and Rs. 2,00,000 respectively. Normal rate of return 1
is 15% and goodwill calculated at 2 years purchase of super profits is valued at Rs. 1,00,000. What
were the average profits of the firm?
(a) Rs. 1,25,000 (b) Rs. 25,000 (c) Rs. 1,75,000 (d) Rs. 60,000

12. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balance 1
were Rs. 2,00,000 for X, Rs. 1,40,000 for Y, Rs. 1,10,000 for Z. Y decided to retire from the firm and
balance in reserve on the date was Rs. 50,000. If goodwill of the firm was valued at Rs. 60,000 and
loss on revaluation was Rs. 15,000 then, what amount will be payable to Y?
(a) Rs. 38,000 (b) Rs. 1,78,000 (c) Rs. 50,000 (d) Rs. 1,90,000

13. On dissolution of the firm, Sundry creditors amounted to Rs. 1,00,000 out of which Rs. 5,000 were 1
untraceable and creditors of Rs. 20,000 was given an unrecorded computer of Rs. 10,000 in full
settlement of the claim and the remaining were paid at 80%. On payment of creditors, Realisation
account will be:
(a) Debited by Rs. 68,000
(b) Credited by Rs. 68,000
(c) Debited by Rs. 60,000
(d) Credited by Rs. 60,000

14. Following is the information given in respect of certain items of a Sports Club. Show these items in 3
the Income and Expenditure Account and the Balance Sheet of the Club:

Debit Credit
Sports Fund as on 1.4.2019 1,00,000
10% Sports Fund Investments 1,00,000
Interest on Sports Fund Investment 8,000
Donations for Sports Fund 30,000
Expenses on Sports Events 16,000

OR

From the following information, calculate the amount of stationery consumed to be debited to Income
and Expenditure A/c.

Details 31st March, 2019 31st March, 2020

 Stock of stationery 4,000 3,000
Creditors for stationery 9,000 2,500

Payment made for stationery during the year amounted to Rs. 23,000.

15. A, B and C were partners. Their capitals were A—Rs. 30,000; B—Rs. 20,000 and C—Rs. 10,000 4
respectively. According to the Partnership Deed, they were entitled to
(a) Interest on capital at 5% p.a.
(b) B was also entitled to draw a salary of Rs. 500 per month.
(c) C was entitled to a commission of 5% on the profits after charging interest on capital, but before
charging salary payable to B.
(d) Net profit for the year was Rs. 30,000 distributed in the ratio of capitals without providing for any
of the above adjustments. The profits were to be shared in the ratio of 5 : 2 : 3.
Pass necessary adjustment entry showing the workings clearly

OR

On 31st March, 2020, after the closing of the accounts, Capital accounts of Mohan, Vijay and Anil
were Rs. 30,000, Rs. 25,000 and Rs. 20,000 respectively. Profit for the year ended 31st March, 2020,
Rs. 24,000 had been credited to Partner’s capital accounts in their profit-sharing ratio. Their drawings
were Rs. 5,000 (Mohan), Rs. 4,000 (Vijay) and Rs. 3,000 (Anil) during the year. Subsequently
following omissions were observed and it was decided to rectify the errors:
(a) Interest on capital @ 10% p.a.
(b) Interest on drawings: Mohan Rs. 250, Vijay Rs. 200 and Anil Rs. 150.
Make necessary corrections through Journal entry and show your workings clearly.

16. JOURNAL 4
Date PARTICULARS LF Dr. Cr.

Share Capital A/c Dr. ?

To Share Forfeiture A/c 800
To Calls-in-arrears A/c ?
(Being 100 shares forfeited for non-payment of final call of Rs. 2)

Bank A/c Dr. ?

Share Forfeiture A/c Dr. 180
To Share Capital A/c ?
(Being _?_ shares reissued at Rs.7 per share fully paid up)

Share Forfeiture A/c Dr. ?

To Capital Reserve A/c ?
(?)

17. Pass journal entries for the following at the time of dissolution of the firm of X and Y (assets and 4
liabilities have already been transferred to Realisation account):
 (a) Y agreed to pay off Mrs. Y’s loan of Rs. 5,000
(b) There was balance in Profit and Loss A/c (Dr.) Rs. 30,000
(c) Creditors of Rs. 30,000 accepted a machine of Rs. 32,000 in full settlement.
(d) Building (book value Rs. 5,00,000) sold for Rs. 8,00,000 through a broker who charged 2%
commission

18. P, Q and R are partners in a firm and so not have a Partnership deed. P introduced further capital 4
of Rs. 2,00,000 on 1st October, 2019. Whereas R took a loan of Rs. 50,000 from the firm on 1 st
October, 2019. Disputes have arisen among them on the following issues:
(a) P demands interest @ 10% p.a. on Rs 2,00,000 being his extra capital.
(b) Q desires that his son S should be admitted as partner and he will give him half of his share.
P and R do not agree.
(c) P and Q are of the view that R should be charged interest on loan from the firm at the lending
rate of the banks, which is 12% p.a.
(d) Q has withdrawn Rs. 50,000 from the firm for his personal use. P and R are of the view that
Q should be charged interest @ 10% p.a.
You are required to give solution to the dispute.

19. The receipts and payment account for the year ending 31.03.2019 of the club was as follows: 6

Receipts Rs. Payments Rs.

To balance b/d 50,000 By Salaries 20,000
To Subscription By Rent 15,000
2017-18 10,000 By Printing and Stationery 8,000
2018-19 1,00,000 By water and Power 15,000
2019-20 5,000 1,15,000 By Newspaper and Periodicals 18,000
To income from 2,000 By furniture 50,000
entertainment 1,500 By Repairs to Furniture 2,000
To interest By Refreshment 10,000
By Balance c/d 30,500
168,500 1,68,500

Additional Information:
a) The number of members in the club were 500 and the membership subscription was Rs.20 per
month.
b) The rent of the club house was Rs. 1,500 per month.
c) At the end of the year prepaid salary was Rs.2,000.
d) In 2017-18 Rs. 50,000 were deposited in fixed deposit for 3 years in a bank carrying interest
@ 6% p.a.
e) Depreciation is to be provided @ 10% p.a. on furniture and sports equipment.
f) The other Assets on 1st April, 2018 were as follows:
Furniture Rs.80,000 and Sports equipment Rs. 40,000.
Prepare Income and Expenditure Account.

20. Pass journal entries in the following cases: 6

 (a) High-tech Ltd. Purchased a machine from Low-tech Ltd. for Rs.64,000. It was decided to pay
by accepting a bill of Rs.10,000 and balance will be paid by issue of shares of Rs.10 each at a
premium of 20%.

(b) On 1st April, 2019, Moonlight Ltd. issued 1,000 9% Debentures of Rs. 200 each at a discount of
5% redeemable at a premium of 10% after five years. The debentures were subscribed and
allotted for. It has a balance of Rs. 12,000 in the Securities Premium Reserve. Pass journal entries
for issue of debentures and writing off discount on issue of debentures.

21. X and Y share profits in the ratio of 5:3. Their Balance sheet as on March 31 st, 2020 is as 8
follows:

BALANCE SHEET
LIABILITIES RS. ASSETS RS.
Creditors 15,000 Cash at Bank 5,000
Employees Provident Fund 10,000 Sundry Debtors 20,000
Workmen Compensation Reserve 5,800 Less: provision 600 19,400
Capital 70,000 Stock 25,000
X 31,000 Fixed Assets 80,000
Y Profit and Loss A/c 2,400

1,31,800 1,31,800

They admit Z into partnership on 1st April 2020 for 1/8th share which he acquires from X.
a) C bring Rs. 20,000 as his capital and Rs. 12,000 as goodwill in cash.
b) Employees Provident fund liability is to be increased by Rs. 5,000
c) All debtors are good.
d) Stock includes Rs. 3,000 for obsolete items. Hence, are to be written off.
e) Creditors are to be paid Rs. 1,000 more.
f) Fixed assets are to be revalued at Rs. 70,000.
Pass journal entries.

OR

Kanika, Disha and Kabir were partners sharing profits in the ratio of 2:1:1. On 31 st March,
2020, their Balance sheet was as under:

BALANCE SHEET
LIABILITIES Rs. ASSETS Rs.
Creditors 53,000 Bank 60,000
Employees Provident fund 47,000 Debtors 60,000
Capitals: Stock 1,00,000
Kanika 2,00,000 Fixed Assets 2,40,000
Disha 1,00,000 Profit and Loss A/c 20,000
Kabir 80,000
4,80,000 4,80,000

Kanika retired on 1st April, 2020. For this purpose, the following adjustments were agreed
upon:
 (a) Goodwill of the firm was valued at 2 year’s purchase of average profits of three
completed years preceding the date of retirement. The profits for the year:
2017-18 were Rs. 1,00,000 and for 2018-19 were Rs. 1,30,000.
b) Fixed assets were to be increased to Rs. 3,00,000.
c) Stock was to be revalued at 120%.
d) The amount payable to Kanika was transferred to her Loan account.
Prepare Revaluation account, Partner’s Capital account and Balance sheet of the
reconstituted firm.

22. ABC Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium 8
of Rs. 2 per share, payable as:
On application 3 (including Re. 1 premium)
On Allotment 4 (including Re. 1 premium)
On first call 3
On final call 2
Applications were received for 3,000 shares and pro rata allotment was made on the appliations
for 2,400 shares. It was decided to utilise excess application money towards the amount due on
allotment. Ramesh, to whom 40 shares were alloted, failed to pay the allotment money and on his
subsequent failure to pay the first call, his shares were forfeited.
Rajesh, who applied for 72 shares failed to pay the two calls and, on such failure, his shares were
forfeited. Of the shares forfeited, 80 shares were sold to Krishan credited as fully paid up for Rs. 9
per share, the whole of Ramesh’s share being included. Give journal entries to record transactions.

OR

Alpha Ltd issued for public subscription 40,000 equity shares of Rs. 10 each. At a premium of Rs. 2
per share payable as under:
On application Rs. 2 per share,
On allotment Rs. 5 per share (including premium)
On first call Rs. 2 per share and on second call Rs. 3 per share.

Applications were received for 60,000 shares. Allotment was made pro rata basis to the applicants
for 48000 shares, the remaining applications being refused. Money overpaid on application was
applied towards sums due on allotment.
A, to whom 1,600 shares were allotted, failed to pay the allotment money and B, to whom 2,000
shares were allotted failed to pay the two calls. These were subsequently forfeited after the second
call was made.
Pass journal entries.

PART – B (FINANCIAL STATEMENTS)

23. Credit Revenue from Operations Rs. 9,00,000; Trade Receivables Turnover ratio 6 times; 1
Closing Trade receivables were 1.5 times than that in the beginning. Closing Trade receivables
will be:
(a) Rs. 1,20,000 (b)Rs. 60,000 (c) Rs. 180,000 (d) Rs. 90,000

24. Forfeited Shares account appears in the Balance sheet of the company under the sub-head: 1
(a) Reserves and Surplus
(b) Long term Provisions
(c) Share Capital
 (d) Other Current Liabilities

25. A company sold inventory costing Rs. 2,00,000 at a loss of Rs. 10,000. It will result in inflow, 1
outflow or no flow of cash?

26. Capital gain tax paid on sale of building by a company will be shown under which type of 1
activity while preparing the Cash flow statement?

27. On the basis of the following data, a Company’s Gross Profit Ratio will be: 1
Net profit Rs. 80,000; Wages Rs. 10,000; Office expenses Rs. 30,000
Selling Expenses Rs. 20,000; Total Revenue from operations Rs. 5,00,000
(a) 28% (b) 26% (c) 4% (d) 6%
28. Which of the following items is not a method of analysis of financial statements? 1
(a) Trend Analysis (b) Statement of Profit and Loss
(c) Cash flow Statement (d) Comparative Statements

29. A firm has a current ratio of 3.5:1 and quick ratio of 2:1. Assuming inventory at Rs. 30,000, 1
what will be the amount of current assets?

30. A business has a current ratio of 3:1 and liquid ratio of 1.2:1. If the working capital is Rs. 1,80,000, 3
calculate the Total Current assets and value of inventory.
OR
Inventory turnover ratio is 3 times, Revenue from operations is Rs. 1,80,000; opening inventory is
Rs. 2,000 more than the closing inventory. Calculate opening and closing inventory when goods are
sold at 20% profit on cost.

31. Following information is extracted from Statement of Profit and loss of Gold Coin ltd. for the 4
year ended 31st March, 2019. Prepare Comparative Statement of Profit and Loss.

Particulars 31st March, 31st March,

2020 (Rs.) 2019 (Rs.)
Revenue from Operations 30,00,000 20,00,000
Other Income (% of Revenue from operations) 12% 20%
Expenses (% Operating Revenue) 70% 60%
Tax Rate 40% 40%

OR

Prepare Common-size Balance sheet of Moon Ltd. for the year 2019 and 2020. The Balance
sheet of Moon Ltd. as at 31st March, 2020 is as follows:
Particulars 31st March, 31st March,
2020 2019
 I. EQUITY AND LIABILITIES
1. Shareholder’s funds
Share capital 9,00,000 12,00,000
Reserves and Surplus 4,00,000 3,50,000
2. Current Liabilities
Trade Payables 2,00,000 2,50,000
Total 15,00,000 18,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets 10,00,000 16,00,000
2. Current Assets
Trade Receivables 5,00,000 2,00,000
Total 15,00,000 18,00,000

32. Prepare Cash Flow Statement from the following Balance sheet and Additional information: 6

BALANCE SHEET as at 31st March, 2020

Particulars Note 31st 31st March,
No. March, 2019 (Rs.)
2020 (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholder’s funds
(a) Share capital 16,00,000 10,40,000
(b) Reserves and Surplus 5,50,000 2,60,000
2. Non- Current Liabilities
Long term Borrowings: 9% Debentures 4,00,000 6,00,000
2. Current Liabilities
(a) Trade Payables 4,50,000 1,00,000
Total 30,00,000 20,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets 20,00,000 15,00,000
2. Current Assets
(a) Inventories 3,00,000 2,00,000
(b) Trade Receivables 2,00,000 1,00,000
(c) Cash and Cash equivalents 5,00,000 2,00,000

Total 30,00,000 20,00,000

NOTES TO ACCOUNTS:

Particulars 31st March, 31st March,

2020 (Rs.) 2019 (Rs.)
 1. Share Capital
Equity Share Capital 15,00,000 10,00,000
7% Preference Share Capital 1,00,000 40,000
2. Reserves and Surplus
General Reserve 4,00,000 60,000
Surplus i.e. Balance in 1,50,000 2,00,000
Statement of Profit and loss

Additional Information:
1. During the year, a piece of machinery costing Rs. 20,000 was sold for Rs. 6,000.
2. Dividend paid during the year was Rs. 50,000.
Prepare Cash Flow Statement.