SET- A

Kendriya Vidyalaya Sangathan, Patna Region

Class: 12
Subject Accountancy

Pre –Board 1 (2024-25)

Time Allowed: 3 Hrs Maximum Marks: 80

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 from Accounting for Partnership Firms and Companies
4. Part - B is related to Analysis of Financial Statements
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 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.

PART A
(Accounting for Partnership Firms and Companies)

Q.N MARKS
1. Pratik Ltd. company forfeited 1,000 shares of ₹. 10 each, ₹. 7 being called- up for 1
non- payment of ₹. 2 on first call. All these shares were reissued at ₹. 5 per share.
What amount will be debited to share forfeiture account?
a) ₹ 2,000 b) ₹ 5,000
c) ₹ 7,000 d) ₹ 10,000
2. A , B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a
guarantee that his share of profit in any given year would be 5,000. Deficiency if
any would be borne by A and B equally. The profit for the year ended 31 st March
2011 amounted to ₹.40,000. Deficiency if any would be:- 1
(a) Deficiency of C borne by A and B ₹. 500 each.
(b) Deficiency of C borne by A and B ₹. 1,500 each.
(c) Deficiency of C borne by A and B ₹. 1,000 each.
(d) Deficiency of C borne by A and B ₹. 2,500 each.
3. Under the capitalisation method, the formula for calculating the goodwill is:
(A) Super profits multiplied by the rate of return
(B) Average profits multiplied by the rate of return
(C) Super profits divided by the rate of return
(D) Average profits divided by the rate of return
1
4. A company has issued 10,000 shares of ₹.10 each , the Company has called ₹ 6 per
share. The remaining part of the capital is termed as :
(A) Called-up capital
(B) Paid-up capital 1
(C) Uncalled capital
(D) Reserve capital
OR
P ltd. Purchased business from Q Ltd. by paying ₹.13,00,000 for the assets worth
₹.17,00,000 and liabilities of ₹.3,00,000. Then will be credited with
₹.1,00,000
A. Capital Reserve A/c.
B. Asset A/c
C. Goodwill A/c.
D. Vendor’s A/c
Amit and Sumit were partners in a firm sharing profit and losses in the ratio of 3:5.
With effect from 1st April 2023, they agreed to share profit or loss equally. Due to
change in profit, sharing ratio, Amit’s gain or sacrifice will be:
A. Gain 3/8 1
B. Gain 1/8
5. C. Sacrifice 3/8
D. Sacrifice 1/8
OR
Sanjeev and Shalu were partners sharing profits in the ratio of 3:2. From 1stApril
2020, they decided to change it to 3:1. For this purpose the goodwill was valued at
₹. 1,20,000. Journal entry for the above transaction will be
 (A) Sanjeev capital A/c debit ₹.20,000 and Shalu capital A/c credit ₹.20,000
(B)Shalu capital A/c debit ₹.20,000 and Sanjeev capital A/c credit ₹.20,000
(C) Sanjeev capital A/c debit ₹.18,000 and Shalu capital A/c credit ₹.18,000
(D)Shalu capital A/c debit ₹.18,000 and Sanjeev capital A/c credit ₹.18,000
6. A, B and C are partners in a firm sharing profit and losses in the ratio of 3:2:1. D is
admitted as a new partner for 1/5 th share in profit .The extract of their Balance
sheet is as follows:
Liabilities ₹ Assets ₹
Workmen compensation reserve 48,000
At the time of D,s admission , if liability for workmen compensation of ₹ 20,000 is
to be created, then what amount of workmen compensation reserve will be shown
in the new Balance sheet?
a) ₹ 48,000 b) ₹ 68,000
c) ₹ 20,000 d) Not to be shown in new balance sheet 1
7. Shravan and Akaash are partners sharing profit in the ratio of 2:1. They admitted
Bhumi for 1/5th share in future profits. On the date of admission, Shravan’s capital
was ₹ 2,00,000 and Akaash’s capital was ₹ 95,000. Bhumi agrees to contribute 1
proportionate capital in the new firm. How much capital will be brought by Bhumi?
A. ₹43,750
B. ₹73,750
C. ₹50,000
D. ₹40,000
OR
A and B are partners in a firm sharing profits and losses in the ratio of 3 :2. A new
partner C is admitted. A surrenders 1/15th share of his profit in favour of C and B
surrende₹ 2/15th of his share in favour of C. The new ratio will be:
(A) 8:4:3
(B) 42:26:7
(C) 4:8:3
(D) 26:42:7

8. Surya Ltd. forfeited 100 equity shares of ₹.10 each on which ₹.6 was paid (including
₹.2 premium). On reissue of these shares what is the maximum discount the
company can allow?
A. ₹. 5
B. ₹. 6
C. ₹. 3
D. ₹.4
1

9. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R)
Assertion (A): Transfer to reserve is shown in P&L Appropriation A/c 1
Reason (R): Reserves are charge against the profits.
 In the context of the above statements, which one of the following is correct?
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong
10. Which of the following is incorrect about retirement of a partner

(a) A partner is entitled to his own share of goodwill at the time of his retirement
(b) There is no need to compute the gaining ratio when the continung partne₹
decide to share profits in the same ratio that existed among them prior to
retirement
(c) Existing goodwill will be written off by debiting All Partners Capital Accounts in
their old ratio and crediting the Goodwill Account 1
(d) New share= Gaining ratio-old ratio
11. A company forfeited 4,000 shares of `₹10 each on which application money of `₹
3 has been paid. Out of these 2,000 shares were reissued as fully paid up and `₹
2,000 has been transferred to capital reserve. Calculate the rate at which these
shares were reissued. 1
A. ₹10 Per share
B. ₹ 9 Per share
C. ₹11 Per share
D. ₹8 Per share
12. For writing off discount on issue of debentures, .............. is debited and………
account is credited, if security premium reserve doesn’t exist.
(A) Statement of P/L a/c and Discount on issue of debentures
(B) Discount on issue of debentures and Statement of P/L a/c 1
(C) Statement of P/L a/c and Debenture suspense account
(D) None
OR
N Ltd. Purchased assets of ₹.8,00,000 and took over liabilities of ₹.2,00,000 from G
Ltd. The payment was made by issue of 8% Debenures of ₹.100 each at premium at
20%. Number of debentures issued will be:
(A) 50,000
(B) 5,000
(C) 6,000
(D) 6,00,000

13. Which account is opened to transfer deceased partner’s share of profit to his
capital account
(a) P&L Adjustment account
(b) P&L Appropriation account 1
(c) P&L Suspense account
(d) None of the above
OR
On death of a Partner, the remaining partner(s) who have gained due to change in
profit sharing ratio should compensate the
(a) Deceased partner only
 (b) Remaining partne₹ (who have sacrificed) as well as deceased partner
(c) Remaining partne₹ only (who have sacrificed)
(d) None of the above
14. A and B are partners sharing profits in the ratio of 2:1.
Their Balance Sheet shows Machinery at ₹. 3,00,000; Stock at ₹.
1
80,000 and Debto₹ at ₹. 1,60,000. C is admitted and new profit-
sharing ratio is agreed at 6:9:5. Machinery is revalued at ₹.
2,40,000 and a provision is made for doubtful debts @ 5%. A's
share in loss on revaluation amount to ₹. 20,000. Revalued
value of Stock will be:
(A) ₹. 42,000
(B) ₹. 1,28,000
(C) ₹. 38,000
(D) ₹. 1,18,000

15. Suman withdrew ₹.. 10,000 on 15th day of every month. Interest on
drawings was to be charged @ 12% per annum. Interest on Suman's
drawings will be:
1
(a) ₹. 14,400

(b) ₹. 7,200

(c) ₹. 1,200
(d) None of these

16. Which one from the below is not a right of a partner?

A. Right to inspect the books of accounts
B. Right to take part in the management of the firm
C. Right to share the profit/losses with other partne₹ in agreed ratio
D. Right to receive salary at the end of every year
1
17. R Ltd. forfeited 100 shares of ₹. 10 each issued at 10% premium (₹.8 called up) on
which a shareholder did not pay ₹.3 of allotment (including premium) and first call
of ₹.2. Out of these 60 shares were reissued to Raju as fully paid for ₹. 8 per share 3
and 20 shares to Smitha as fully paid up @ ₹.12 per share at different intervals of
time.
Prepare Share Forfeiture Account.
OR
Read the passage given below and answer the following questions

ABC decided to acquire the running business of Y ltd, so it took over the assets of ₹
6,60,000 and liabilities of ₹ 80,000 of Y limited for a purchase consideration of
₹5,85,000 payable by the issue of 12% debentures of ₹100 each at a discount of
10%.
 1. Goodwill A/c will be debited with
a.10,000 b. 15,000 c. 5,000 d.8,000

2. Discount on issue of debenture is written off, in the year debentures are

allotted, in the following sequence—
a. Securities premium reserve, statement of Profit and loss
b. Securities premium reserve, statement of Profit and loss, capital reserve
c. capital reserve, securities premium reserve, statement of Profit and loss
d. statement of Profit and loss, capital reserve, securities premium reserve

3. The number of debentures to be issued is:

a. 6600 b.6500 c.4500 d.5400.

18. Ram, Mohan and Sohan were partners sharing profits in the ratio of 2 : 1 : 1.
Ram withdrew ₹. 3,000 every month and Mohan withdrew ₹. 4,000 every month.
Interest on drawings @ 6% p.a. was charged, whereas the partnership deed
was silent about interest on drawings.
Showing your working clearly, pass the necessary adjustment entry to rectify 3
the error.
OR
Mamta, Sadhna and Gurmeet entered into partnership on 1st April 2018 to share
profits and losses in the ratio of 5:3:2. Gurmeet is a physically challenged lady.
Sadhna, however, personally guaranteed that Gurmeet’s share of profit after
charging interest on capital @5% p.a.would not be less than ₹. 40000 in any year.
The capital contributions were: Mamta ₹. 3, 00,000, Sadhna ₹. 2, 00,000 and
Gurmeet ₹. 1, 50,000. The profit of the year ended on 31st March 2019 before
allowing interest on capital amounted to ₹. 1,60,000.Prepare Profit and Loss
Appropriation A/c .

19.
A and B are partners sharing profits and losses in the ratio of 3:2. They
admitted C with effect from 1st April, 2024. New profit-sharing ratio is
agreed at 4:3:3. An extract of their Balance Sheet as at 31st March,
3
2024 is as follows:

Liabilities ₹. Assets ₹.

Workmen 90,000
Compensation Reserve

Based on the above information you are required to answer the

following questions (1,2 and 3):
1. If there is no other information in respect of Workmen Compensation Reserve:
(A) Cr. A's Capital A/c with ₹. 60,000 and B's Capital A/c with ₹.30,000
(B) Cr. A's Capital A/c with ₹. 54,000 and B's Capital A/c with ₹.36,000
 (C ) Dr. A's Capital A/c with ₹. 54,000 and B's Capital A/c with ₹.36,000
(D) Cr. A's Capital A/c with ₹. 36,000 and B's Capital A/c with ₹.27,000
and C's Capital A/c ₹. 27,000
2. If a claim for Workmen Compensation is estimated at ₹. 60,000:
(A) Cr. A's Capital A/c with ₹. 20,000 and B's Capital A/c with ₹.10,000
(B) Dr. A's Capital A/c with ₹. 18,000 and B's Capital A/c with ₹.12,000
(C ) Cr. A's Capital A/c with ₹. 18,000 and B's Capital A/c with ₹.12,000
(D) Cr. A's Capital A/c with ₹.12,000 and B's Capital A/c with ₹.9,000
and C's Capital A/c with ₹. 9,000
3. If a claim for Workmen Compensation is estimated at ₹. 1,50,000
(A) Dr. C’s Capital with ₹. 60,000
(B) Dr. C’s Capital A/c with ₹. 18,000
(C )Dr. Workmen Compensation Reserve A/c with ₹. 90,000
and Revaluation A/c with ₹. 60,000
(D) Dr. Revaluation A/c with ₹. 60,000
20. The following were the profits of a firm for the last 3 years:
Year Profit
2018 ₹ 4,00,000(including an abnormal gain of 50,000)
3
2019 ₹ 5,00,000 (after charging an abnormal loss of 1,00,000
2020 ₹ 4,50,000(without charging 50,000 payable on the insurance of plant and
machinery
What will be the value of Firm’s goodwill on the basis of 2-year purchase of the
average profits for the last 3 years?

21. P Ltd.' were registered with an authorized capital of 2,00,000 equity shares of 10
each. The company offered to the public for subscription 1,00,000 shares.
Applications for 1,50,000 shares were received and allotment was made to all the
applicants on pro-rata basis. All calls were made and were duly received except the
second and final call of 4,000. The amount payable on second and final call was 2
per share.
Present the Share Capital in the Balance Sheet of the company as per Schedule III,
Part I of the Companies Act, 2013.
4
22. Monika, Sonika and Manisha were partners in a firm sharing profits and losses in
the ratio of 2:2:1 respectively. On 31st March, 2018 their balance sheet was as
under
 Balance Sheet 4
as at 31st March, 2018
Liabilities Amount Assets Amount
Reserve Fund 1,50,000 Fixed Assets 3,60,000
Creditors 2,40,000 Stock 60,000
Capital A/c Debtors 1,20,000
Monika 1,80,000 Cash 2,70,000
Sonika 1,50,000
4,20,000
Manisha 90,000
8,10,000 8,10,000

Sonika died on 30th June, 2018. It was agreed between her executors and the
remaining partners that :
i. Goodwill of the firm be valued at 3 years’ purchase of average profits for the last
four years. The average profits were 2, 00,000.
ii. Interest on capital is provided at 12% per annum.
iii. Her share in the profits up to the date of death will be calculated on the basis of
average profits for the last 4 years.
Prepare Sonika’s capital A/c as on 30th June, 2018.

23. Riya Ltd. issued 30,000 shares of ₹ 10 each payable as ₹ 3 on application, ₹ 3 on

allotment, ₹ 2 on first Call and ₹ 2 on second call.
Applications were received for 40,000 shares and a pro-rata allotment was made to
the applicants of 35,000 shares. All money due were received except allotment and
first call from Mohit who had applied for 2,100 shares. His shares were forfeited
after the first call. Subsequently, the second call was duly made and duly received.
Thereafter, the forfeited shares were reissued for ₹ 9 fully paid. Pass the necessary
journal entries. 6

24. The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5:3:2 as
at 31 March, 2024:

Liabilities Amount Assets Amount

Sundry Creditors 50,000 Cash at Bank 30,000
Employees Provident 10,000 Debtors 1,00,000
Fund
Profit and Loss Account 85,000 Stock 80,000
Capitals A/c s Fixed Assets 60,000
X 40,000 Goodwill 10,000
Y 62,000
6
Z 33,000
2,80,000 2,80,000
 X retired on the same date and Y and Z decided to share profits in future in the
ratio of 2:3 respectively. The other terms on retirement were as follows:
(a) Goodwill of the firm is to be valued at ₹.80,000, Fixed Assets are to be
depreciated to ₹.57,500.
(b) Make a provision for doubtful debts at 5% on debto₹.
(c )A liability for claim, included in creditors for ₹.10,000 are paid ₹.8,000 in full
settlement
(d) The amount to be paid to X by Y and Z in such a way that their capitals are
proportionate
to their profit-sharing ratio and leave a balance of ₹.15,000 in the Bank Account.
Prepare the Revaluation account and Partners Capital Accounts.
OR

X and Y are partners in a firm sharing profits in the ratio of 3:2. They admitted
Z as a new partner for 1/5th share in future profits. At the time of admission of
Z, Investment appeared at ₹ 1,00,000 in the Balance Sheet. Half of the
Investments to be taken over by X and Y in their profit sharing ratio at book
value. Remaining investments were valued at ₹ 62,500. One month after Z’s
admission, X and Y decided to allow a salary of ₹ 50,000 per annum to Z for
the extra efforts and time devoted by him to the business.

a. Pass necessary journal entries.

b. Calculate new profit sharing ratio.

25. Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio
4:3:3. The 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. 6
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
v) P&L account showed a debit balance of ₹ 10,000
vi) There was a claim for damages which was settled at ₹ 5,000
26. Pass Journal entries to record issue of debentures of the following transaction:
1. A Ltd. issued 15000; 8% Debentures of ₹. 100 each at discount of 5% to
be repaid at par at the end of 5 yea₹.
2. A Ltd. Issues 10% Debentures of ₹. 100 each for the total nominal value of
₹. 80,00,000 at a premium of 5% to be redeemed at par.
3. A Ltd. Issues ₹. 50,00,000; 9% Debentures of ₹. 100 each at par but
redeemable at the end of 10 yea₹ at 105%.
4. A Ltd. Issued ₹40,00,000, 12% debentures of ₹. 100 each at a discount of 5% 6
repayable at a premium of 10% at the end of 5 years
OR
Supreme company decided to issue 50,000,9% Debentures of ₹. 100 at 10%
premium and redeemable at 20% premium after 5 years. These debentures were
issued on 01 October, 2021.You are required to
(a) Pass entries for the issue of Debentures.
(b) Prepare Loss on Issue of Debentures Account assuming there was existing
balance of Securities Premium Account of ₹. 7,80,000.
(c) Pass entries for Interest on debentures on March 31, 2022 assuming interest is
payable on 30th September and 31st March every year.

PART – B Analysis of Financial Statements

27 Accounting Ratio can be used to know the strong and weak points of business.
Reason(R): Ratio Analysis is a technique of Analysis of Financial Statement
(A)Both Assertion and reason are true and reason is correct explanation of
assertion. (B)Assertion and reason both are true but reason is not the correct 1
explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true
28. Which of the following activities are operating activities for
the purpose of preparing 'Cash Flow Statement' ?
(i) Dividend and Interest received on securities.
(ii) Payment of employee benefits expenses. 1
(iii) Cash receipts from royalties and fees.
(iv) Issue of shares against purchase of machinery.
(a) (i), (ii) and (iii)
(b) (ii), (iii) and (iv)
(c) (i), (ii) and (iv)
(d) (ii) and (iii)
OR
Which of the following is not an investing cash flow?
(a) Purchase of marketable securities for ₹.25,000 cash.
(b) Sale of land for ₹.28,000 cash.
(c) Sale of 2,500 shares (held as investment) for ₹.15 each.
 (d) Purchase of equipment for ₹.500 cash.

29. Statement -I: Rent paid ‘will be classified under operating activity while preparing
cash flow statement
Statement -II: Interest received in cash on loans and advances results in cash flow
from financing activities 1

(a) Both the statements are true

(b) Both the statements are false
(c) Statement -I is true, statement-II is false
(d) Statement-II is true statement-I is false

30. is not a limitation of financial statement analysis.

(a) To measure the financial strength
(b) Affected by window-dressing
(c) Do not reflect changes in the price level
(d) Lack of qualitative analysis
OR
Which of the following explains the significance of financial analysis? 1
(a) Ignores qualitative aspect
(b) Judges operational efficiency
(c) Suffers from the limitations of financial statements
(d)It is affected by personal ability and bias of the analysis

31. Under which major heads and sub-heads will the following items be placed in the
Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013
? (i) Cheques and Bank Drafts in Hand (ii) Loose tools (iii) Securities Premium 3
Reserve (iv) Work-in-Progress (vi) Mining Rights (vii)Debtors
32. Following information is extracted from the Statement of Profit and Loss of TARA
Ltd. for the year ended 31st March, 2023:
Particulars 2019-2020 2018-2019
Revenue from operation 6000000 4500000 3
Employees benefit expenses 3000000 2250000
Depreciation 750000 600000
Other expenses 1550000 1000000
Tax rate 50%
Prepare Comparative Statement of Profit and Loss.

33. The current ratio of a company is 2 : 1. State giving reasons which of the following 4
would improve, reduce or not change the ratio:
(i) Repayment of trade payables.
(ii) Sale of Motor vehicles at a loss of 20%.
(iii) Sale of goods at a profit of 10%.
(iv) Purchase of Machinery for ₹10,000 on credit of 2 months.
OR
 The following information relates to Priya Ltd and Maya Ltd
Priya Ltd Maya Ltd
Long term debt ₹ 2, 50,000 ₹ 4,50,000
Shareholders ‘Funds ₹ 50,000 ₹ 1,50,000 Calculate
debt to equity ratio for each company. Which company exhibits a better financial
position?.
34. Prepare a Cash flow statement on the basis of the information given in the
Balance Sheets of Star Ltd. As at 31-3-2022 and 31-3-2023:
Particulars Note No. 31st March 2023 31st March 2022
(₹.) (₹.)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a)Share Capital 6,00,000 5,00,000
1 4,00,000 2,00,000
(b) Reserve and Surplus
2. Current Liabilities 6
Trade payables 2,80,000 1,80,000

12,80,000 8,80,000

Total
II. Assets
1. Non current assets:
(a)Fixed assets
5,00,000 3,00,000
( i)Plant and machinery
2. Current assets:
a)Inventories 1,00,000 1,50,000
b)Trade receivables 6,00,000 4,00,000
c)Cash and cash equivalents 80,000 30,000
12,80,000 8,80,000
Total

Notes to Account:
Particulars 31-03-2023 31-03-
(₹.) 2022(₹.)
1. Reserve and Surplus:
Surplus (Balance in statement of Profit and
4,00,000 2,00,000
Loss)

Additional Information:
i) An old machinery having book value of ₹ 50,000 was sold for ₹ 60,000.
ii) Depreciation provided on machinery during the year was ₹ 30,000.