KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION

Class XII FIRST PRE BOARD EXAM 2024-25

ACCOUNTANCY (055)
MAX.MARKS:80 TIME ALLOWED: 3HRS
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 Accounting for Partnership Firms and Companies
4. Part – B is Analysis of Financial Statements
5. Question 1 To 16 And 27 To 30 Carries 1 Mark Each.
6. Questions 17 To 20, 31 and 32 Carry 3 Marks Each.
7. Questions From 21, 22 And 33 Carry 4 Marks Each
8. Questions From 23 To 26 And 34 Carry 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, 1 Question of Four Marks, and 2
Questions Of Six Marks
S.No Question Marks

PART A: Accounting for Partnership Firms and Companies

1. Raj and Suraj are partners sharing profits in the ratio of 2:1. They admit Viraj for 1
1/5th share in future profits. On the date of admission, Raj’s capital was ₹ 1, 02,000
and Suraj’s capital was ₹ 73,000. Viraj brings ₹ 25,000 as his share of goodwill and
he agrees to contribute proportionate capital to the new firm. How much capital will
be brought by Viraj?
(a) ₹ 43,750 (b) ₹ 37,500 (c) ₹ 50,000 (d) ₹ 40,000
2. Rose and Lotus are partners. Rose draws a fixed amount at the beginning of 1
every month. Interest on drawings is charged @8% p.a. At the end of the year
interest on Rose’s drawings amounted to ₹ 2,600. Monthly drawings of Rose
were:
(a) ₹ 8,000 (b) ₹ 60,000 (c) ₹ 7,000 (d) ₹ 5,000

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3. When a partner is given guarantee by other partners any deficiency on such 1
guarantee will be borne by:
(a) Firm (b) All other partners
(c) Partners with highest profit ratio (d) Partner who has given the guarantee
OR
Anny, Bony and Rainy were partners in a firm sharing profits in the ratio of
4:3:3. On August 1, 2017 Bony died. His 20% share was acquired by Anny
and remaining by Rainy. New Profit sharing ratio will be
(a) 23:27 (b) 27:23 (c) 27:30 (d) 35:10
Money received in advance from shareholders before it is actually called up by
the directors is :
4. (a) debited to calls in advance a/c (b) credited to calls in advance /c
(c) debited to share capital account (d) credited to share capital a/c
1
OR
(b) An offer of securities or invitation to subscribe securities to a select
group of persons is termed as :
(a) Buy back of shares (b) Employee stock option plan
(c) Private placement of shares (d) Sweat Equity

5. Assertion (A) : Irredeemable debentures are also known as perpetual 1

debentures.
Reason (R) : The company does not give any undertaking for the repayment
of money borrowed by issuing such debentures. They are repayable on the
winding up of the company or on the expiry of a long period.
Choose the correct option from the following : 1
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is
not the correct explanation of Assertion (A).
(c) Assertion (A) is incorrect, but Reason (R) is correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect.

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6. At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital 1
is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realised is ₹
1,50,000. Gain/Loss in the realisation account will be:
(a) ₹ 30,000 (Gain) (b) ₹ 40,000 (Gain)
(c) ₹ 40,000 (Loss) (d) ₹ 30,000 (Loss)
OR
In the Balance Sheet Total Debtors appear at 50,000 and Provision for
doubtful Debts appear at 1,500. How much amount will be realised from
Debtors, if Bad Debts amount to Rs 10,000 and Remaining debtors are
realised at a discount of 5%
(a) ₹ 38,000 (b) ₹ 36,500 (c) ₹ 36,575 (d) ₹ 39,500

7. Given below are two statements, one labelled as Assertion (A) and the 1
other labelled as Reason (R):
Assertion (A): Realisation Account is prepared at the time of
dissolution of the partnership firm.
Reason (R): Dissolution of partnership firm involves the partners selling
the asset and settling the liabilities. Thus various amounts are recovered
or paid to partners.
In the context of the above two statements, which of the following is
correct?
(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 true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

8. When forfeited shares are reissued, the amount of discount allowed 1

on these shares cannot exceed:
(a) 10% of called-up capital per share
(b) 6% of paid –up capital per share
(c) The amount received per share on forfeited shares
(d) The unpaid amount per share on forfeited shares.

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 OR
Pick the odd one out -:
(a) Open- ended preference shares
(b) Irredeemable preference shares
(c) Participating preference shares
(d) Cumulative preference shares

9. Which of the following is not a purpose for which the securities 1

premium amount can be used:
(a) Issuing fully paid bonus shares to shareholders
(b) Issuing partly paid up bonus shares to shareholders
(c) Writing off preliminary expenses of the company
(d) In purchasing its own shares (buy back)

10. The partner who provides capital and shares profit and loss in 1
partnership business but does not take active part in the management
is known as:
(a) Active partner (b) Sleeping partner
(c) Secret partner (d) Limited partner

11. Debenture interest is paid as: 1

(a) Based on the net profit of company (b) At a predetermined rate
(c) At variable rate (d) None of these

12. Which of the following is/are required at the time of Change in Profit – 1
sharing ratio among partners-:
(a) Accounting Treatment of Goodwill.
(b) Revaluation of Assets and reassessment of Liabilities.
(c) Accounting treatment of accumulated profit.
(d) All of the above.

Read the following information and answer the given

questions (Question no 13, 14)

Abha and Vibha are Partners, who shared profits and losses in the
ratio of 2:1 from the 1 st January 2021, the partners decided to
Change their Profit-sharing ratio to 3:2 and agreed upon the following:

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 i) Goodwill of the firm valued at ₹ 45,000.
ii) Creditors of ₹ 8,000 are not likely to be claimed hence should be
written off.
iii) Land & Building is overvalued by 10%.
iv) Provision for doubtful debts to be reduced to ₹ 3,000. The Partners
neither want to record the goodwill not to distribute the general reserve

13. Ahba’s gain or sacrifice in the profit sharing ratio is: 1

(a) Gain; 1/3 (b) Sacrifice; 1/3 (c) Gain; 1/15 (d) Sacrifice; 1/15

14. Vibha’s gain or sacrifice in the profit sharing ratio is:

(a) Gain; 1/3 (b) Sacrifice; 1/3 (c) Gain; 1/15 (d) Sacrifice; 1/15 1

Anju, Divya and Bobby were partners in a firm sharing profits and
15. losses in the ratio of 3:2:1. Bobby retired. The new profit sharing ratio
between Anju and Divya after Bobby’s retirement was 5:3. The gaining 1
ratio of remaining partners will be :
(a) 3:2 (b) 5:3 (c) 3:1 (d) 2:3
OR
Mita, Veena and Atul were partners in a firm sharing profits and losses
in the ratio of 3:2:1. Atul retired and his share was taken over by Mita
and Veena in the ratio of 1:4. The new profit sharing ratio between Mita
and Veena after Atul’s retirement will be:
(a)3:2 (B) 8:7 (c) 7:3 (d) 2:3

16. Goodwill is to be valued at three year’s purchases of four year’s average 1

profit. Profits for last four years ending on 31 st march, 2017 of the firm
were:
2014 - ₹ 12,000, 2015 – ₹ 18,000, 2016 – ₹ 16,000, 2017 – ₹ 14,000
Amount of Goodwill is;
(a) ₹ 45,000 (b) ₹ 15,000 (c) ₹ 30,000 (d) None of these

17. Praveen, Sahil and Riya are partners having fixed capitals of ₹ 3
2,00,000; ₹ 1,60,000 and ₹ 1,20,000 respectively. They share profits in
the ratio of 3: 1: 1. The Partnership Deed provided for the following
which were not recorded in the books:
(i) Interest on capital @ 5% p.a. (ii) Salary to Praveen ₹ 1,500 p.m.
and to Riya ₹ 1,000 p.m. Pass necessary rectifying entry for the above
adjustments in the books of the firm. Also show your workings clearly.

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18. Nikhil Ltd. purchases a Running business from Sonia Ltd. for a sum of 3
₹ 22,00,000 by issuing 20,000 fully paid equity shares of ₹ 100 each at
a premium of 10%.The assets and liabilities consisted of the following
Machinery ₹ 7,00,000; Debtors ₹ 2,50,000; Stock ₹ 5,00,000; Building
₹ 11,50,000 and Bills Payable ₹ 2,50,000.
Pass necessary journal entries in the Books of Nikhil Ltd. for the above
transactions.
OR

19. Mohit and Rohan share profits and Losses in the ratio of 2:1. They 3
admit Rahul as partner with ¼ share in profits with a guarantee that his
share of profit shall be at least ₹ 50,000. The net profit of the firm for
the year ending March 31, 2020 was ₹ 1,60,000. Prepare Profit and
Loss Appropriation Account.

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 OR
A, B and C were partners sharing profits, and losses in the ratio of
2:2:1. C died on 1st July, 2023 on which date the capitals of A, B and
C after all necessary adjustments stood at 74,000; 63,750 and 42,250
respectively. A and B continued to carry on the business for six months
without settling the accounts of C. During the period of six months from
1-7-2023, a profit of 20,500 is earned using the firm's property. State
which of the two options available u/s 37 of the Indian Partnership Act,
1932 should be exercised by executors of C and why?

20. Bat, Cat and Rat were partners sharing profits and losses in the ratio
5:3:2. Cat retired and on that date there was a balance of Investment
of ₹ 4,00,000 and Investment Fluctuation Reserve of ₹ 1,00,000 was
appearing in the balance sheet.
Pass necessary journal entries for Investment Fluctuation reserve in
the following case. - Market Value of Investments was ₹ 2,90,000. 3

21. X ltd forfeited 800 shares of Rs. 10 each Rs. 7.50 called up ,for non 4
payment of first call of Rs. 2.50 per share. Out of these 600 shares
were reissued for Rs. 6 per share as 7.50 paid up. Pass necessary
journal entry.

22. X, Y and Z were partners sharing profits and losses equally. Y died on 4
1st October, 2023 and the total amount transferred to Y’s executors
was ₹ 15,60,000. Y’s executors were being paid ₹ 3,60,000
immediately and balance was to be paid in four equal quarterly
instalments, together with interest @6% p.a.
Pass entries till payment of first two instalments.

23. Pass the necessary journal entries for the following transactions on the 6
dissolution of the firm of Sudha and Shiva after the various assets
(other than cash) and outside liabilities have been transferred to
Realisation Accounts:
(i) Sudha agreed to pay off her husband’s Loan ₹ 19,000.
(ii) A debtor whose debt of ₹ 9,000 was written off in the books paid ₹
7,500 in full settlement.
(iii) Shiva took over all investments at ₹ 13,300
(iv) Sundry creditors ₹ 10,000 were paid at 9% discount.
(v) Realisation expenses ₹ 3,400 were paid by Sudha for which she
was allowed ₹ 3,000.
(vi) Loss on realisation ₹ 9,400 was divided between Sudha and Shiva

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 in 3:2 ratio.

24. (i) Pranshu Ltd. purchased assets worth ₹ 1,80,000 and took over the 6
liabilities (creditors) of ₹ 40,000 of Mahesh Ltd. for a purchase
consideration of ₹ 1,76,000. Pranshu Ltd. paid half the amount by
cheque and the balance was settled by issuing 12% debentures of ₹ 100
each at a premium of 10%. Pass necessary journal entries in the books
of Pranshu Ltd.
(ii) Blue Prints Ltd., purchased building worth ₹ 1,50,000, machinery
worth ₹ 1,40,000 and furniture worth Rs 10,000 from XYZ Co., and took
over its liabilities of ₹ 20,000 for a purchase consideration of ₹ 3, 15,000.
Blue Prints Ltd., paid the purchase consideration by issuing 12%
debentures of ₹ 100 each at a premium of 5%. Record necessary journal
entries.
OR
Pass the necessary journal entries for the issue of debentures for the
following
(i) Arman ltd issued 750, 10% Debentures of Rs. 100 each at a
discount of 10% redeemable at a premium of 5%.
(ii) Sohan ltd. Issued 800 ,9% debentures of ₹ 100 each at a premium
of 20 per debenture redeemable at a premium of ₹ 10 per debenture.

Sunrise Company Limited offered for public subscription 10,000 shares

25. of ₹ 10 each at ₹ 11 per share. Money was payable as follows: ₹ 3 on 6
application, ₹ 4 on allotment (including premium), ₹ 4 on the first and
final call.
Applications were received for 12,000 shares and the directors made
prorate allotment. Mr. Ahmad, an applicant for 120 shares, could not
pay the allotment and call money, and Mr.Basu, a holder of 200
shares, failed to pay the call. All these shares were forfeited. Out of the
forfeited shares, 150 shares (the whole of Mr. Ahmad’s shares being
included) were issued at ₹ 8 per share. Record journal entries for the
above transactions.

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26. Raman and Aman were partners in a firm and were sharing profits in 6
a 3:1 ratio. On 31.3.2019, their balance sheet was as follows: Balance
Sheet of Raman and Aman As on 31.3.2019
Balance Sheet as on 31.03.2019

On the above date, Suman was admitted as a new partner for 1/5 th
share in the profits on the following conditions:
(i) Suman will bring ₹ 2,00,000 as her capital and necessary amount for
her share of Goodwill Premium. The goodwill of the firm on Suman’s
admission was valued at₹ 1,00,000.
(ii) Outstanding expenses will be paid off. ₹ 5,000 will be written off as
bad debts and a provision of 5% for bad debts on debtors was to be
maintained.
(iii) The liability towards workmen compensation was estimated at ₹
60,000.
(iv) Machinery was to be depreciated by ₹ 18,000 and Land and
Building was to be depreciated by ₹ 54,000.
Pass necessary journal entries for the above transactions in the book
of the firm.

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 OR
P, Q and R were partners in a firm sharing profits in the ratio of 7:2:1.
On 1st April, 2013, their balance sheet was as follows:
Balance Sheet of P, Q and R as on 1st April, 2013

On the above date Q retired. The following were agreed:

(i) Goodwill of the firm was valued at ₹ 12, 00,000.
(ii) Land was to be appreciated by 30% and building was to be
depreciated by ₹ 3,00,000.
(iii) Value of furniture was to be reduced by ₹ 60,000.
(iv) The liabilities for Workmen’s Compensation Fund were determined
at ₹ 1,40,000.
(v) Amount payable to Q was transferred to his loan account. Prepare
Revaluation Account, Partner’s Capital Accounts and the balance sheet of the
new firm.

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 Part B: Financial statement of a company

27. Financial statements are prepared on certain basic assumptions (pre- 1

requisites) known as _________________
(a) Provision of Companies Act, 2013 (b) Accounting Standards
(c) Postulates (d) Basis of Accounting
OR
Which one of the following is correct?
(i) Quick Ratio can be more than Current Ratio.
(ii) High Inventory Turnover ratio is good for the Organisation, except
when goods are brought in small lots or sold quickly at low margins to
realise cash.
(iii) Sum of Operating Ratio and Operating Profit ratio is always 100%

(a) All are correct (b) Only (i) and (iii) are correct (c) Only (ii) and (iii)
are correct (d) Only (i) and (ii) are correct

28. Given below are two statements, one labelled as Assertion (A) and the 1
other labelled as Reason (R):
Assertion (A): The analysis of financial statements does not disclose
the current worth of the business
Reason (R): Different firms may follow different accounting policies. In
the context of the above two statements, which of the following is
correct?
(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 true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

29. Purchases of treasury bills (Investment) will come under which activity 1
while preparing cash flow statement?
(a) Operating Activities (b) Investing Activities
(c) Financing Activities (d) None of these.
OR
Mention the net amount of source or use of cash when a company
acquires shares in Reliance Ltd. by paying ₹ 3,00,000 and received a
dividend of 50,000 after acquisition of shares.

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 (a) ₹ 2,50,000 (Use) (b) ₹ 3,00,000 (Use)
(c) ₹ 50,000 (Source) (d) None of these

30. What level of total assets to total debts is considered satisfactory? 1

(a) 1:1 (b) 2:1 (c) 1:2 (d) None of these

31. Find heads and sub heads under which the following items will appear 3
in the balance sheet of a company as per Schedule III, Part I of
companies Act,2013
(a) Furniture and Fixture
(b) Advance paid to contractor for building under construction
(c) Accrued income
(d) Loans repayable on demand to bank
(e) Employees earned leave payable on retirement
(f) Employees earned leave encashable.

32. Complete the Comparative statement of Profit and loss

3

Calculate the following ratios from the details given below:

33.
I) Current Ratio II) Liquid Ratio
III) Operating Ratio IV) Gross profit Ratio 4
Details:

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 Current Assets = ₹ 70,000; Revenue from Operations = ₹ 1,40,000; Net
Working Capital = ₹ 30,000; Cost of Revenue from Operations = ₹
68,000; Inventories = ₹ 30,000
OR
Calculate Gross Profit Ratio from the following information: Revenue
from operations - ₹ 10,00,000; Purchases - ₹ 3,60,000; Carriage
Inwards - ₹ 50,000; Employee benefit expenses - ₹ 1,00,000 (including
wages of ₹ 60,000); Opening inventory ₹ 60,000; and Average
inventory ₹ 80,000.

34. (a) From the following information, calculate Cash from operating
Activities. 6

Additional Information:
Proposed Dividend for the year ended 31/03/2023 and 31/03/2024 was
₹ 1,50,000 and ₹ 1,80,000.
(b) Calculate Cash flow from Investing Activities from the following
information

Additional Information:
A part of Machine costing ₹ 1,25,000 accumulated Depreciation
thereon being ₹ 50,000 was sold for ₹ 45000 during the year.

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