SAMPLE QUESTION PAPER 3

Class -XII
Term -II (2021-22)
Subject: Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the
question paper. All questions are compulsory.
2. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks
each.
3. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks
each.
4. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks
each.
5. There is no overall choice. However, an internal choice has been provided in 3
questions of three marks and 1 question of five marks.

Part A
(Accounting for Not-for-Profit organizations,
Partnership firms and Companies)

S.N QUESTIONS MARK

O S
1 Calculate amount of subscription to be shown in Income and Expenditure 2
Account as on March 31, 2019:
Subscription received during 2018-19 Rs. 30,000
Subscription due as on April 01, 2018 Rs 4,000
Subscription due as on March 31, 2019 Rs 5,000
Subscription received in advance as on April 01, 2018 Rs 3,000
Subscription received in advance as on March 31,2019Rs 2500
2 Record the necessary journal entries : 2
(a) Creditors worth Rs 85,000 accepted, 40,000 in cash and investment woth
Rs 43,000 in full settlement of their claim.
(b) Creditors worth Rs 16,000 accepted machinery value at Rs 18,000 in
settlement of their claim.
3 Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 2
6:5:4. Ramesh retired and his capital after making adjustments on account of
reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400.
Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim.
Pass necessary journal entry for the treatment of goodwill. Show workings clearly
4 Calculate the amount of sports material to be transferred to Income and 3
Expenditure account of SHIVANIS ports Club, Ludhiana, for the year ended 31st
March, 2018:-
Particulars Amount (₹)
i. Sports Material sold during the year (Book Value ₹ 50,000) =56,000
ii. Amount paid to creditors for sports material = 91,000
iii. Cash purchase of sports material = 40,000
iv. Sports material as on 31.3.17 = 50,000
v. Sports Material as on 31.3.18 = 55,000
vi. Creditors for sports material as on 31.3.17 = 37,000
vii. Creditors for sports material as on 31.3.18 = 45,000

42 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 OR
Prepare Receipt and Payments Account of sports club, Jaipur for the year ending
31st March , 2020 from the following information:
Cash balance on 1-4-2019 Rs.11,000; subscription fee of 2,000 members @ Rs.
50 each received, 100 members paid subscription for next year.
Salary paid @ Rs. 1,000 p.m. up to February 2020 salary for march, 2020 is
outstanding. Furniture purchased Rs. 8,500, investments Rs. 80,000. Rent @Rs.
10,000 p.a. has been paid up to June, 2020.
5 A, B and C are partners in a firm whose books are closed on March 31st each 3
year. A died-on 30th June 2018 and according to the agreement the share of
profits of a deceased partner up to the date of the death is to be calculated on the
basis of the average profits for the last five years. The net profits for the last 5
years have been: 2014 Rs. 14,000: 2015 Rs. 18,000: 2016 Rs. 16,000; 2017 Rs.
10,000 (loss) and 2018 Rs. 16,000. Calculate A’s share of the profits up to
the date of death and pass necessary journal entry assuming:
(a) there is no change in the profit-sharing ratio of remaining partners:
(b) There is change in the profit-sharing ratio of remaining partners, new ratio
being 3: 2.
6 XYZ Industries Ltd., issued 2,000, 10% debentures of Rs 100 each, at a premium 3
of Rs 10 per debenture payable as follows:
On application Rs 50
On allotment Rs 60
The debentures were fully subscribed and all money was duly received.
Record the journal entries in the books of a company.
Or
Blue Prints Ltd., purchased building worth Rs 1,50,000, machinery worth Rs
1,40,000 and furniture worth Rs 10,000 from XYZ Co., and took over its
liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. Blue Prints
Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each
at a premium of 5%. Record necessary journal entries.
7 P, Q and R are partners sharing profits and losses in the ratio of 3:2:1 respectively. 5
The balance sheet of the firm as on 1st April, 2021 was as under:
Liabilities Rs. Assets Rs.
Creditors 24,000 Bank 10,000
Outstanding Salary 10,000 Debtors 25,000
Reserve 18,000 Less: Provisions 1,000 24,000
Capital A/cs: Stock 30,000
A Furniture 16,000
59,000
B 40,000 Plant & Machinery 48,000
C 21,000 1,20,000 Building 44,000
Total 1,72,000 Total 1,72,000
Q retires on the above date and it was agreed that:
(i)The goodwill of the firm is valued at Rs.24,000
(ii)Furniture, Plant and Machinery are depreciated by 10% and 6% respectively
(iii)Bills receivables of a customer Rs.5,000 discounted from bank was decided
to create provision for doubtful debts on debtors @ 5%
(iv)Stock is appreciated by 10% and building is valued at Rs.53,000
(v)Revaluation expenses Rs.750 were paid by the firm
(vi)The amount due to Q is to be transferred to his loan account
Pass journal entries, Prepare Revaluation Account, Capital Accounts and Opening
Balance Sheet of the new firm.

43 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 Or
Ram and Shyam were partner in a firm sharing profit in the ratio of 2:3
respectively. They became old and no one was there to look after their business.
Therefore, they decided to dissolve the business and donate the amount available
to an N.G.O who are providing the service for growing trees in urban areas to
control pollution. On 31st January, 2021, their Balance Sheet was as follows:

Liabilities Rs Assets Rs
Creditors 65,000 Land 1,20,000
Bill Payable 35,000 Machinery 65,000
Capital Accounts: Goodwill 10,000
Ram 75,000 Stock 25,000
Shyam 75,000 2,50,000 Debtors 20,000
Cash 10,000
Ram paid the creditors at a discount of 15 % and Shyam paid bills payable in full.
Assets realized : Land at 20 % less, Machinery Rs 35,000; Stock 25 %
less;Debtors Rs14,000. Expenses of realization paid by Shyam were Rs 1,750.
Prepare Realization Account, and Capital Account of partners to close the books
of the firm.
8 Animesh Ltd. issued 1,000, 12 % Debenture of 100 each in the following manner: 5
1. For cash at par at Rs. 50,000 nominal value.
2. For creditors of Rs. 45,000 against purchase of machinery at nominal
value of Rs. 35,000.
3. To S.B.I. bank against a loan of Rs. 10,000 as collateral security at
nominal value of Rs. 15,000.
Pass Journal entries.
9 Following is the Receipts and Payments Account of Modern Club, New Delhi for 5
the year ending 31stDecember ,2021.
Receipts Amount(Rs.) Payments Amount(Rs.)
To Balance b/d 1-1- 2,300 By Match Expenses 6,800
2021
To Subscriptions 56,400 By Rent 9,600
To Interest 300 By Salaries 24,000
To Donations 6,000 By Sundry Expenses 3,600
To Donations for 50,000 By Investments 30,000
Building Fund purchased
To Match Fund 10,000 By Newspapers 750
To Miscellaneous 430 By Sports Equipment 32,000
Receipts
To Sale of Grass 100 By Balance c/d 31-12- 18,780
2021
1,25,530 1,25,530
Subscriptions outstanding at the end of 2016 were Rs.4,000 and at the end of
2021 were Rs.6,000. Salaries outstanding on 31st December 2020 and 31st
December 2021 were Rs.2,000 and Rs.2,500 respectively.
On 31st December 2020 the club had investments worth Rs.12,000; Furniture
10,000 and Sports Equipment valued at Rs.20,000.
Prepare Income and Expenditure A/c for the year ended 31st Dec 2021
Part-B
Option-I
(Analysis of Financial Statements)

44 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 10 State the category of the following items for a financial as well as non-financial 2
company
(i) Dividend received (iii) Interest paid
(ii) Dividend paid (iv) Interest received
11 From the following information, prepare a Comparative Statement of Profit and 3
Loss:
Particulars 31st March, 21 31st March, 20
Revenue from Operations 24,00,000 18,00,000
Other Incomes (% of Revenue from 15% 25%
Operations) 60% 50%
Expenses (% of Revenue from Operations) 40% 40%
Tax Rate
OR
From the following Balance Sheet of R Ltd., Prepare a Common Size Statement.
Balance Sheet
as at 31st March, 2019
Particulars Note No. 31-03-19 31-03-18
I EQUITY AND LIABILITIES
(1) Shareholder’s Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves & Surplus 1,60,000 1,20,000
(2) Current Liabilities
(a) Trade Payables 1,40,000 80,000
Total 8,00,000 6,00,000
II. ASSETS:
(1) Non Current Assets
(a) Fixed Assets
(i) Tangible Assets
3,20,000 2,40,000
(ii) Intangible Assets
40,000 60,000
(2) Current Assets
(a) Inventories
1,60,000 60,000
(b) Trade Receivables
2,40,000 2,00,000
(c) Cash and Cash Equivalents
40,000 40,000
Total
8,00,000 6,00,000
12 From the following summarized Balance Sheet of a company, prepare cash flow 5
statement as on 31st March, 2021:
Particulars Note 2020-21 2019-20
no
A) Equity and liabilities: (Rs.) (Rs.)
Shareholder’s funds:
Share capital 15,00,000 4,00,000
Reserve and surplus (profit and 2,50,000 1,10,000
loss balance)
Non current liabilities:
Long term borrowings 2,00,000 1,25,000
Current liabilities:
a) Short-term borrowings 12,000 10,000
b) Trade payables 15,000 83,000
c) Short-term Provisions 18,000 11,000
Total 19,95,000 17,39,000
45 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH
 B) Assets:
1) Non-current Assets :
Fixed assets:
Tangible assets
Intangible assets 18,60,000 16,10,000
2.Current Assets: 50,000 30,000
i) Current Investment
ii) Inventories 8,000 5,000
iii) Trade Receivables 37,000 59,000
iv)Cash and cash equivalents 26,000 23,000
14,000 12,000
Total
19,95,000 17,39,000

Notes to Accounts:
PARTICULARS 2017-18 2016-17
Reserves and Surplus
Surplus(Balance in Statement of Profit 2,50,000 1,10,000
and Loss
Short-term Borrowings 12,000 10,000
Bank Overdraft
Short-term Provisions 18,000 11,000
Provision for Tax
Tangible Assets 20,00,000 17,00,000
Machinery (1,40,000) (90,000)
Accumulated Depreciation
Intangible Assets 50,000 30,000
Patents

Additional Information:
Tax paid during the year amounted to Rs. 16,000.
Machine with a net book value of Rs.10,000(Accumulated Depreciation
Rs.40,000) was sold for Rs.2,000
Prepare a Cash Flow Statement.

46 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 MARKING SCHEME
PRACTICE PAPER 3
ACCOUNTANCY
CLASS XII
Q.N ANSWER MARK
O S
1 Calculate amount of subscription to be shown in Income and 2
Expenditure Account as on March 31, 2019:
Subscription received during 2018-19 Rs. 30,000
Subscription due as on April 01, 2018 Rs 4,000
Subscription due as on March 31, 2019 Rs 5,000
Subscription received in advance as on
April 01, 2018 Rs 3,000
Subscription received in advance as on
March 31, 2019 Rs 2500
2 Particular Dr Cr 2
Realization A/c 40,000
To Cash A/c 40,000
(Being Rs 40,000 paid and investment of Rs
43,000 accepted by Creditors worth Rs 85,000
in full settlement)

Cash A/c 30,000

To Realization A/c 30,000
(Being Creditors settled)
3 JOURNAL ENTRY 2
Suresh’s Capital A/c Dr. 23,760
Tushar’s Capital A/c Dr. 15,840
Ramesh’s Capital A/c 39,600
(Being goodwill adjusted)
4 Calculate the amount of sports material to be transferred to Income and 3
Expenditure account of SHIVANIS ports Club, Ludhiana, for the year
ended 31st March, 2018:-
Particulars Amount (₹)
Payment to creditors of sports material 91,000
Add: Closing creditors of sports material 45,000
Less: Opening creditors of sports material (37,000)
Add: Cash purchases of sports material 40,000
Total purchases 1,39,000
Less: Sports material sold during the year (Book Value) (50,000)
Add: Opening stock of sports material 50,000
Less: Closing stock of sports material (55,000)
Amount to be shown to Income and Expenditure Account 84,000
Or
SPORTS CLUB
RECEIPTS AND PAYMENTS ACCOUNT
For the year ended 31st March, 2020

47 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 Receipts Payments
To balance b/d 11,000 By salaries 11,000
1000x11

To subscription 1,05,000 By furniture 8,500

2019-2020
(2000x50) 1,00,000
2020-2021
(100x50) 5,000

By investment 80,000

By rent (15 12,500

month)
By balance c/d 4,000

1,16,000 1,16,000

5 3

6 Bank A/c Dr. 1,00,000 3

To 10% Debenture Application A/c
1,00,000
(Application money Rs 50 per debentures received)
10% Debenture Application A/c Dr. 1,00,000
To 10% Debentures A/c
1,00,000
(Transfer of application money )
10% Debenture Allotment A/c Dr. 1,20,000
To 10% Debentures A/c
1,00,000
To Securities Premium A/c
20,000
(Allotment money due on debentures including the premium)
Bank A/c Dr. 1,20,000

48 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 To 10% Debenture Allotment A/c
1,20,000
(Allotment money received)
Or
Building A/c Dr. 1,50,000
Plant & Machinery A/c Dr. 1,40,000
Furniture A/c Dr. 10,000
Goodwill A/c Dr. 35,000
To Liabilities 20,000
To XYZ Co. 3,15,000
(Purchase of assets and taking over of liabilities of XYZ Co.)
XYZ Co. A/C Dr. 3,15,000
To 12% Debentures A/c 3,00,000
To Securities Premium A/c 15,000
(Issue of 3,000 debentures at a premium of 5%)
Note: 1. Since the purchase consideration is more than net assets taken
over, the difference has been debited to goodwill account.
2. No. of debentures issued = Purchase Consideration/Issue Price of a
Debenture = Rs 3,15,000/105 = 3,000
7 Journal Entries
Reserve A/c Dr. 18,000
To P’s Capital A/c 9,000
To Q’s Capital A/c 6,000
To R’s Capital A/c 3,000
Debtors A/c Dr. 5,000
To Bank A/c 5,000
Revaluation A/c Dr. 5,730
To Furniture A/c 1,600
To Plant & Machinery A/c 2,880
To Provision for Doubtful Debts A/c 500
To Bank A/c (Exps.) 750
Stock A/c Dr. 6270
To P’s capital a/c 3135
To Q’s capital a/c 2090
To R’s capital a/c 1045

P’s capital a/c Dr. 6000

R’s capital a/c Dr. 2000
To Q’s capital a/c 8000

Q’s capital a/c Dr. 56090

To Q’s capital a/c 56090
Revaluation Account
Particulars Amount Particulars Amount
To Furniture a/c 1600 By Stock A/c 3000
To Plant and By Building A/c 9000
Machinery a/c 2880
To prov. For 500
D.D.A/c 750
To Bank A/c (Exp.)

49 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 To Profit transferred
to capital a/c
P 3125
Q 2090 6270
R 1045

12000 12000

Partner’s capital Accounts

Particulars P Q R Particulars P Q R
Rs. Rs. Rs. Rs. Rs. Rs.
ToQ’s cap 6000 - 2000 By Bal.b/d 59000 40000 21000
To Q’s Loan - 56090 - By Reserve 9000 6000 3000
a/c
To Bal. c/d 65135 - 23045 By Reval. 3135 2090 1045
a/c
By P’s cap - 6000 -
a/c
By R’s cap - 2000 -
a/c
71135 56090 25045 71135 56090 25045
Or
Realization A/c
Particular Rs Particular Rs
To Land 1,20,000 By Creditors A/c 65,000
To Machinery A/c 65,000 By Bills Payable A/c 35,000
To Goodwill A/c 10,000 By Cash A/c (Assets
To Stock A/c 25,000 realized)
To Debtors A/c 20,000 Land
To Rams Capital A/c 96,000
(Crs taken over) 55,250 Machinery 1,63,750
To Shyam Capital 35,000
A/c 35,000 Stocks
(B/P taken over) 18,750 68,250
To Shyan Capital 1,750 Debtors
A/c 14,000
(Expenses paid) By Loss trans to
Capital A/c
Ram 2/5
27,300
Shyam 3/5
40,950
3,32,000 3,32,000
Partners Capital Accounts

Particular Ram Shyam Particular Ram Shyam

To 27,300 40,950 By Balance 75,000 75,000
Realization b/d
A/c (Loss) By 55,250 35,000
To Cash 1,02,950 70,800 Realization
A/c A/c -- 1,750

50 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 (Final (Liabilities
Payment) taken)
By
Realization
A/c
(Expenses
paid)

1,30,250 1,11,750 1,30,250 1,11,750

8 5
Dr. Cr.
Particulars
(Rs.) (Rs.)

Debentures application and allotment a/c Dr. 50,000 …..

To 12% Debentures a/c ….. 50,000

(Being 12% Debentures issued at par) ….. …..

Bank A/c Dr. 50,000 …..

To Debentures application and allotment

….. 50,000
a/c

(Being money received on 500

….. …..
debentures @ Rs. 100)

Machinery a/c Dr. 45,000 …..

To Vendor’s a/c ….. 45,000

(Being machinery purchased) ….. …..

Vendor a/c Dr. 45,000 …..

To 12% Debentures a/c ….. 35,000

To Securities Premium a/c ….. 10,000

(Being Debentures issued to vendors at a

….. …..
premium)

Bank a/c Dr. 10,000 …..

To Bank Loan a/c ….. 10,000

(Being Loan borrowed) ….. …..

Debentures suspense a/c Dr. 15,000 …..

51 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 To 12% Debentures a/c ….. 15,000

(Being Debentures issued as collateral

….. …..
security)
9 Surplus = Rs. 11,780 (4 Marks) 5
Capital Fund = Rs.46,300;
Total of Opening Balance Sheet = 48,300 (1Mark)
10 Payment of interest and dividend is classified as Financing Activity. 2

Receipt of interest and dividend is classified as Investing Activity.

11 Comparative Statement of Profit and Loss 3

For the year ended on 31st March, 2020 and 2021
Particulars Note 31st 31st Absolute %
No. March, March, Change Change
2020 2021
Revenue from 18,00,000 24,00,000 6,00,000 33.33
Operations 4,50,000 3,60,000 (90,000) (20)
Add: Other
Income
Total Revenue 22,50,000 27,60,000 5,10,000 22.67
(i+ii)
Less: Expenses 9,00,000 14,40,000 5,40,000 60
Profit before 13,50,000 13,20,000 (30,000) (2.22)
Tax (iii-iv) 5,40,000 5,28,000 (12,000) (2.22)
Less: Tax @ 40
%
Profit after Tax 8,10,000 7,92,000 (18,000) (2.22)
OR
Balance Sheet
as at 31st March, 2019
Particulars Note Absolute Figures % of /Total
No. 31-03- 31-03- 2018 2019
18 19

I EQUITY AND
LIABILITIES

52 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 (1) Shareholder’s Funds 4,00,000 5,00,000 66.7 62.5
(a) Share Capital 1,20,000 1,60,000 20.0 20.0
(b) Reserves &
Surplus 80,000 1,40,000 13.3 17.5
(2) Current Liabilities 6,00,000 8,00,000 100 100
(a) Trade Payables
Total
II. ASSETS:
(1) Non Current Assets 2,40,000 3,20,000 40.0 40.0
(a) Fixed Assets 60,000 40,000 10.0 5.0
(i) Tangible
Assets 60,000 1,60,000 10.0 20.0
(ii) Intangible 2,00,000 2,40,000 33.3 30.0
Assets 40,000 40,000 6.7 5.0
(2) Current Assets 6,00,000 8,00,000 100 100
(a) Inventories
(b) Trade Receivables
(c) Cash and Cash
Equivalents
Total

12 CASH FLOW STATEMENT 5

for the year ended 31st March, 2021
Particulars Mark
A. Cash flow from operating
activities 2,00,000 ¼
Net profit as per P& L 2,00,000 ¼
statement 4,00,000
Add;- Proposed dividend 80,000 ¼
Net Profit before Tax 2,000 ¼
Add;- Depreciation on 2,00,000 ¼
fixed assets 6,82,000 ½
Loss on sale of
machinery 1,00,000 ¼
Miscellaneous 7,82,000 ¼
expenditure w/o (5,00,000) 2,82,000 ½
Operating profit before
working capital changes
Add :- increase in current ¼
liabilities 10,000 ¼
(6,92,000) (6,82,000) ½
Less :- increase in current
assets

53 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH

 Net cash generated from 5,00,000 ¼
operating activities (1,00,000) ¼
B. Cash flow from investing 4,00,000 ½
activities
Sale of fixed assets
Purchase of fixed assets ¼
Net cash used in investing NIL
activities
C. Cash Flow from financing
activities
Issue of share
Dividend paid
Net cash generated from
financing activities
D. Net increase in cash and
cash equivalents
( A+B+C)

Working Note:-
Fixed Assets A/c
(1 Mark)

Particulars Amt Particulars Amt

To Balance b/d 12,00,000 By Depreciation 80,000
To Bank (purchase) 6,92,000 A/c 10,000
(Bal. fig) By Bank A/c (sale) 2,000
By Statement of P& 18,00,000
LA/c
18,92,000 By Balance c/d 18,92,000

54 | KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING CHANDIGARH