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Army Public School MHOW

Practice Test I 2023-24
Class XII
Accountancy
(Partnership)
Max Marks:40 No of Questions: 14
Max Time :1.5 Hours No. Of Pages: 4
1 At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; 1
Cash Balance is ₹ 10,000. Other assets realised ₹ 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)

2 A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,000 respectively. 1
They admitted C for 1/3rd share in the profits C brought 100000. Calculate firms
Goodwill.
a) ₹ 90,000 b) ₹ 110000 c) ₹ 120000 d) None of the above
3 State the order of payment of the following, in case of dissolution of partnership firm. 1
i. to each partner proportionately what is due to him/her from the firm for advances as
distinguished from capital (i.e. partner’ loan);
ii. to each partner proportionately what is due to him on account of capital; and
iii. for the debts of the firm to the third parties;
4 Why is goodwill not a fictitious asset. 1
5 Deceased partner’s share of profit from the date of last balance sheet till the date of 1
death may be calculated either on_______________ or _____________ basis.
6 Abha and Beena were partners sharing profits and losses in the ratio of 3:2. On April 1
1st 2013, they decided to admit Chanda for 1/5th share in the profits. They had a
reserve of `25,000 which they wanted 8 to show in their new balance sheet. Chanda
agreed and the necessary adjustments were made in the books. On October 1st 2013,
Abha met with an accident and died. Beena and Chanda decided to admit Abha’s
daughter Fiza in their partnership, who agreed to bring `2,00,000 as capital. Calculate
Abha’s share in the reserve on the date of her death.
7 A partnership firm has 50 members. All the partners have agreed to admit Ram and 1
Mohan as new partners. Can Ram and Mohan be admitted? Give reason in support of
your answer.
8 Doremon, Shinchan and Nobita are partners sharing profits and losses in the ratio of 3
3:2:1. With effect from 1st April, 2022 they agree to share profits equally. For this
purpose, goodwill is to be valued at two year’s purchase of the average profit of last
four years which were as follows: Year ending on 31st March,2019 ₹ 50,000 (Profit)
Year ending on 31st March,2020 ₹ 1,20,000 (Profit) Year ending on 31st March,2021 ₹
1,80,000 (Profit) Year ending on 31st March,2022 ₹ 70,000 (Loss) On 1st April, 2021 a

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 Motor Bike costing ₹ 50,000 was purchased and debited to travelling expenses
account, on which depreciation is to be charged @ 20% p.a by Straight Line Method.
The firm also paid an annual insurance premium of ₹ 20,000 which had already been
charged to Profit and Loss Account for all the years. Journalise the transaction along
with the working notes.

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10 Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4:3:3. The 4
firm was dissolved on 31-3-2018. Pass the necessary Journal entries for the following
transactions after various assets (other than cash and bank) and third party liabilities
had been transferred to Realisation Account:
(i) The firm had stock of ₹ 80,000. Ankit took over 50% of the stock at a discount of
20% while the remaining stock was sold off at a profit of 30% on cost.
(ii) A liability under a suit for damages included in creditors was settled at ₹ 32,000 as
against only ₹ 13,000 provided in the books. Total creditors of the firm were ₹ 50,000.
(iii) Bobby’s sister’s loan of ₹ 20,000 was paid off along with interest of ₹ 2,000.
(iv) Kartik’s Loan of₹ 12,000 was settled at ₹ 12,500.

11 From the following Statement of Profit and Loss of Fenox Ltd, for the year ended 31 st 4
March, 2013, prepare a Comparative Statement of Profit and Loss :

Note 2012-13 2011-12

Particulars
No. Rs Rs
Revenue from operations 20,00,000 15,00,000
Other Incomes 10,00,000 4,00,000
Expenses 21,,00,000 15,00,000
Rate of income tax was 50%.
12 L, M and N are partners in a firm sharing profits & losses in the ratio of 2 : 3 : 5. 6
On April 1, 2016 their fixed capitals were ₹ 2,00,000, ₹ 3,00,000 and ₹ 4,00,000
respectively. Their partnership deed provided for the following:

1. Interest on capital @ 9% per annum.

2. Interest on Drawings @ 12% per annum.
3. Interest on partners’ loan @ 12% per annum.

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 4. On July 1, 2016, L brought ₹ 1,00,000 as additional capital and N withdrew ₹
1,00,000 from his capital. During the year L, M and N withdrew ₹ 12,000, ₹ 18,000
and ₹ 24,000 respectively for their personal use. On January 1, 2017 the firm
obtained a Loan of ₹ 1,50,000 from M. The Net profit of the firm for the year ended
March 31, 2017 after charging interest on M’s Loan was ₹ 85,000.
Prepare Profit & Loss Appropriation Account and Partners Capital Account.

13 A and B are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet 6
was as follows:
Liabilities Amount Assets Amount
Capitals: Fixed Assets 57,600
A 42,000
B 36,000
WCR 13,200 Investments 24,000
Bank Loan 10,800 Stock 27,600
Creditors 42,000 Debtors
22,800 20,400
-provision -
2,400
Cash 14,400
1,44,000 1,44,000
On the same date they admitted C for 25% share in profits on the following terms:
1) C brings in capital proportionate to his share after all adjustments and Rs. 4,800
for goodwill out of his share of Rs. 8,400.
2) Fixed Assets were overvalued by Rs. 1,800.
3) Half of the investments were taken over by A and B in their profit sharing ratio
and remaining valued at Rs. 15,480.
4) New ratio will be 3:3:2.
5) A claim of Rs. 1,200 on account of workmen compensation to be provided for
6) A provision for doubtful debt is to be maintained at 10% on debtors.
Prepare Revaluation Account and Partners’ capital Accounts .
Or
A,B and C are partners sharing profits and losses in the ratio of 3:2:1. Their Balance
Sheet as at 31st March, 2004 is as under:
Liabilities Amount Assets Amount
Creditors 30,000 Cash in hand 28,000
Bills Payable 16,000 Debtors
25,000 22,000
-provision
3,000
General Reserve 12,000 Stock 18,000
Capital Furniture 30,000
A 40,000
B 40,000
C 30,000
Machinery 70,000
1,68,000 1,68,000
B retires on 1-4-2004 on the following terms:
1) Provision for doubtful debt will be raised by Rs. 1,000.
2) Stock will be depreciated by 10% and furniture by 5%.

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 3) There is an outstanding claim for damages for Rs. 1,100 and it is to be provided
for.
4) Creditors will be written off by Rs. 6,000.
5) Goodwill of the firm is valued at Rs. 24,000. Goodwill is not to be shown in the
books of the new firm.
6) B is paid in full with cash brought in by A and C in such a manner that their
capitals are in proportion to their profit sharing ratio 3:2 and cash in hand
remains at Rs. 10,000.
Prepare Revaluation Account and Capital Accounts
14 A) Ankur and Bobby were into the business of providing software solutions in India. 6
They were sharing profits and losses in the ratio 3:2. They admitted Rohit for a 1/5
share in the firm. Rohit, an alumni of IIT, Chennai would help them to expand their
business to various South African countries where he had been working earlier.
Rohit is guaranteed a minimum profit of `2,00,000 for the year. Any deficiency in
Rohit’s share is to be borne by Ankur and Bobby in the ratio 4:1. Losses for the
year were `10,00,000. Pass the necessary journal entries
B) Kanika and Gautam are partners doing a dry cleaning business in Lucknow,
sharing profits in the ratio 2:1 with capitals `5,00,000 and `4,00,000 respectively.
Kanika withdrew the following amounts during the year to pay the hostel expenses
of her son. ` 1 st April 10,000 1 st June 9,000 1 st Nov. 14,000 1 st Dec. 5,000
Gautam withdrew `15,000 on the first day of April, July, October and January to pay
rent for the accommodation of his family. He also paid `20,000 per month as rent
for the office of partnership which was in a nearby shopping complex. Calculate
interest on Drawings @6% p.a