SAMPLE QUESTION PAPER - 3

SUBJECT- ACCOUNTANCY (055)

CLASS XII (2024-25)

Time Allowed: 3 hours 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 compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii)
Computerised Accounting. Students must attempt only one of the given options.
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
1. M and N are partners sharing profits in the ratio of 5:3. They admit Q as a new partner [1]
for 20% share in the future profits of the firm.
New profit sharing ratio:

a) 3 : 2 : 1 b) 1 : 1 : 1

c) 5 : 3 : 2 d) 5 : 3 : 3

2. Assertion (A): Partnership is a business entity which is not separate from its partners [1]
in any circumstances.
Reason (R): Partners are mutual agents of each other so far as the business of the firm
is concerned.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of A.
 c) A is true but R is false. d) A is false but R is true.

3. Pawan Ltd. invited applications of 45,000 Equity Shares of 10 each at a premium of ₹ [1]
4. Company received applications of 15,000 in excess. Amount payable as follows: on
Application ₹ 7 (including premium of ₹ 2), on Allotment ₹ 3 (including premium of ₹
1), Balance on first and final call. One shareholder Renu who applied for 600 shares
failed to pay allotment and first and final call money.
Amount of Securities Premium to be debited at the time of forfeiture of shares?

a) Debited by ₹ 900 b) Debited by ₹ 750

c) Debited by ₹ 6500 d) Debited by ₹ 450

OR
Zero Coupon Bonds are issued:

a) At premium b) With Specified Rate of Interest

c) At Zero Interest Rate d) Without Specified Rate of

Interest

4. Vinay, Shweta and Vikas are sharing profits in the ratio of 3 : 2 : 1. As per the new [1]
Agreement, Vikas Acquires th share from Vinay. What will be the new profit sharing
1

ratio of the partners?

a) 3 : 2 : 1 b) 2 : 2 : 1

c) 2 : 3 : 1 d) 1 : 1 : 1

OR
What Interest on capital is to be provided to X & Y, when profits shown by Profit & Loss
Account ₹ 1,500 and capitals invested by X & Y are ₹30,000 and ₹ 20,000 (rate of interest
is 10% p.a.).

a) 900 and 600 b) 3000 and 2000

c) 300 and 200 d) 600 and 900

5. In the absence of a partnership deed, the allowable rate of interest on partner’s loan [1]
account will be:

a) 6% p.a. Simple Interest b) 12% Compounded Annually

c) 6% Simple Interest d) 12% Simple Interest

6. The debentures whose principal amount is not repayable by the company during its [1]
life time, but the payment is made only at the time of Liquidation of the company,
such debentures are called:

a) Irredeemable Debentures. b) Bearer Debentures

c) Redeemable Debentures d) Non-Convertible Debentures

OR
Sujata Ltd. issued 5,000, 7% Debentures of ₹ 100 each at a premium of 10%. According to
the terms of issue, 40% of the amount was payable on application and the balance on
allotment. The issue was fully subscribed and all amounts were duly received. The
amounts received on application and allotment respectively were:

a) ₹ 2,00,000 and ₹ 3,00,000 b) ₹ 2,50,000 and ₹ 3,00,000

c) ₹ 2,00,000 and ₹ 3,50,000 d) ₹ 2,00,000 and ₹ 2,50,000

7. Assertion (A): A company may forfeit the shares for non-payment of calls amount [1]
depend upon the Articles of Association of the company.
Reason (R): Shares can be forfeited only if it is allowed by the Articles of Association
of the company.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. When will partner’s Capital Account be debited: [1]

a) Share of goodwill b) Loss on Revaluation

c) General Reserve d) Profit on Revaluation

 OR
According to Profit and Loss Account, the net profit for the year is ₹ 1,40,000. The total
interest on partner’s capital is ₹ 8,000 and a partner is to be allowed commission of ₹
5,000. The total interest on partner’s drawings is ₹ 1,200. The divisible profit as per Profit
and Loss Appropriation Account will be:

a) ₹ 1,44,200 b) ₹ 1,28,200

c) ₹ 1,25,800 d) ₹ 1,41,800

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the [2]
questions:
Ankit, Mohit and Vinod were partners in a firm sharing profits equally. On 1st April, 2020,
their capitals stood at ₹ 2,00,000, ₹ 1,50,000 and ₹ 1,00,000 respectively. As per the
provisions of Partnership Deed:
i. Ankit was entitled to a salary of ₹ 2,500 p.m.
ii. Partners were entitled to interest on capital @ 10% p.a.
The net profit for the year ended 31st March, 2021, ₹ 1,50,000 was distributed among the
partners without providing for the above items.

9. What is the amount of interest on capital of Mohit?

a) ₹ 20,000 b) ₹ 10,000

c) ₹ 15,000 d) ₹ 30,000

10. What is the amount of distributable profit for the partners after providing salary and interest
on capital to the partners?
a) ₹ 25,000 each b) ₹ 15,000 each

c) ₹ 50,000 each d) ₹ 10,000 each

11. When a partner is given guarantee by other partners, loss on such guarantee will be [1]
borne by:

a) Partner with highest profit b) Partners who give the guarantee

sharing ratio

c) Partnership firm d) All the other partners

12. On an equity share of ₹ 10 the company has called up ₹ 8 but ₹ 6 have been received [1]
by the company is forfeited, the capital account should be debited by:

a) ₹ 8 b) ₹ 10

c) ₹ 6 d) ₹ 2

13. HR Limited issued 10,000 equity shares @ ₹ 10 each at 10% premium. All shares [1]
were subscribed and amount was received. Identity the amount to be transferred to
Securities Premium Reserve A/c

a) ₹ 10,000 b) ₹ 1,00,000

c) ₹ 9000 d) ₹ 1000

14. Each partner is both an agent and a principal as per: [1]

a) Oral Agreement b) Provisions of partnership deed

c) Mutual agency relationship d) Written Agreement

15. A and B are partners sharing profit or loss in the ratio of 4 : 1. A surrenders 1

4
of his [1]
share and B surrenders 1

2
of his share in favour of C, a new partner. What will be the
C's share?

a) 1

5
b) 3

c) 3

10
d) 1

10

OR
Premium for goodwill is not recorded at all on admission of a partners:

a) If Brought in cash b) If Brought in kind

c) When new partner does not d) If Paid Privately

bring his share of goodwill

16. In which circumstances partners’ can dissolve the firm without the interference of the [1]
court?
 a) When business of the firm b) Mutual Agreement
cannot be carried on except at a
loss

c) When a partner has become of d) When a partner is found guilty

unsound mind of breath of contract frequently

17. Aman, Bobby and Chandani were partners in a firm sharing profits and losses in the [3]
ratio of 5 : 4 : 1. From 1st April, 2022 they decided to share profits equally. The
revaluation of assets and re-assessment of liabilities resulted in a loss of ₹ 5,000. The
goodwill of the firm on its reconstitution was valued at ₹ 1,20,000. The firm had a
balance of ₹ 20,000 in General Reserve.
Showing your workings clearly pass necessary journal entries on the reconstitution of
the firm.

18. The partnership agreement between Maneesh and Girish provides that: [3]
i. Profits will be shared equally;
ii. Maneesh will be allowed a salary of ₹400 p.m;
iii. Girish who manages the sales department will be allowed a commission equal to
10% of the net profits, after allowing Maneesh’s salary;
iv. 7% interest will be allowed on partner’s fixed capital;
v. 5% interest will be charged on partner’s annual drawings;
vi. The fixed capitals of Maneesh and Girish are ₹1,00,000 and ₹80,000, respectively.
Their annual drawings were ₹16,000 and ₹14,000, respectively. The net profit for
the year ending March 31, 2015, amounted to ₹40,000.
Prepare firm’s Profit and Loss Appropriation Account.

OR
Sharma and Verma were partners in a firm sharing profits and losses in the ratio of 3 : 2.
Their fixed capitals were ₹ 14,00,000 and ₹ 10,00,000 respectively. The partnership deed
provided for the following:
i. Interest on capital @ 10% per annum.
ii. Interest on drawings @ 12% per annum.
 During the year ended 31.03.2023, Sharma withdrew ₹ 2,00,000 and Verma withdrew ₹
1,00,000. After preparing the accounts for the year ended 31.03.2023, it was realised that
interest on capital was not allowed and interest on drawings was not charged.
Showing your working notes clearly pass necessary journal entries in the books of the firm
to rectify the above error.

19. Y Ltd. purchased Machinery Rs. 55,000 from Z Ltd. 10% was paid by Y Ltd. by [3]
accepting a Bill of Exchange in favour of Z Ltd. and the balance was paid by issue of
9% Debentures of Rs. 100 each at par, redeemable after five years.
Pass necessary Journal entries in the books of Y Ltd.

OR
DCM Ltd issued 50,000 shares of ₹ 10 each payable as ₹ 2 per share on application, ₹ 3
per share on allotment and ₹ 5 on first and final call. Applications were received for 70,000
shares. It was decided that:
a. to refuse allotment to the applicants for 10,000 shares,
b. to allot 20,000 shares to Mohit who had applied for similar number, and
c. to allot the remaining shares on pro rata basis.
Mohit failed to pay the allotment money and Sachin who belonged to Category C and was
allotted 3,000 shares paid the call money with allotment.
Calculate the amount received on allotment.

20. Arun, Bharat and Neeraj are partners in firm sharing profits and losses equally. They [3]
decide to take Dheeraj into partnership from 1st April, 2023 for th share in the future
1

profits. For this purpose, goodwill is to be valued at 100% of the average Annual
profits of the previous three or four years, whichever is higher. The Annual profits for
the purpose of goodwill for the past four years were:
Year Ended Profit (₹)
31st March, 2023 2,88,000
31st March, 2022 1,81,800
31st March, 2021 1,87,200
31st March, 2020 2,53,200
Calculate the value of goodwill.​
21. Royal Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a [4]
premium of 25% payable with application. Applications for 4,50,000 shares were
received. Applications for 1,00,000 shares were rejected and money refunded. Pro-rata
allotment was made to the remaining applicants. The amount per share was payable as
follows:
On Application: ₹ 4 per share including premium
On Allotment: ₹ 3.50 per share
Balance on 1st and Final Call.
Excess application money received with applications was adjusted with sums due on
allotment.
Application money in excess of sums due on allotment, if any, was refunded. Raghu,
who had applied for 7,000 shares failed to pay allotment money. His shares were
forfeited immediately after allotment. Afterwards the first and final call was made.
Nandan, who had applied for 10,500 shares, failed to pay the first and final call. His
shares were also forfeited. All the forfeited shares were reissued at ₹ 11.50 fully paid
up, to Meeta.
Pass necessary journal entries for the above transactions in the books of Royal Ltd.

22. Aakash and Anushka were partners in firm sharing profits and losses in the ratio of 4 : [4]
3. They decided to dissolve the firm on 1st May 2023. From the information given
below, complete Realisation Account, Partners' Capital Accounts and Bank Account:
REALISATION ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Sundry Assets: By Sundry Liabilities:
Machinery 5,60,000 Creditors 40,000
Stock 90,000 Aakash's Wife's loan 25,000
Debtors 55,000 By Bank
To Bank: Machinery 4,80,000
Creditors ____ Debtors 10,000
To Aakash's Capital By Aakash's Capital
A/c: A/c:
 Aakash's Wife's loan 34,000 Stock 1,28,000
To Anushka's Capital
A/c: 7,000 Typewriter 70,000 1,98,000
Realisation Expenses
By Anushka's Capital
To Profit transferred to:
A/c:
Aakash's Capital A/c 4,000 Debtors 40,000
Anushka's Capital A/c 3,000 7,000
7,93,000 7,93,000
PARTNERS' CAPITAL ACCOUNTS
Dr. Cr.
Particulars Aakash (₹) Anushka (₹) Particulars Aakash (₹) Anushka (₹)
To Realisation A/c ____ ____ By ____ ____
To Bank A/c 4,00,000 4,50,000 By ____
By ____ ____
____ ____ ____ ____
BANK ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Balance b/d ____ By Realisation A/c ____
To Realisation A/c 4,90,000 By Aakash's Loan A/c 4,000
By Aakash's Capital A/c 4,00,000
By Anushka's Capital A/c ____
____ ____

23. Prakash Engineering Company issued for public subscription 40,000 Equity shares of [6]
Rs 10 each at a premium of Rs 2 per share, payable as: on application Rs 2 per share
on allotment Rs 5 per share (including premium)
on first call Rs 2 per share
 on final call Rs 3 per share
Applications were received for 75,000 Equity Shares. The shares were allotted on pro-
rata basis to the applicants of 60,000 shares only, remaining applications being
rejected. Money overpaid on an application was utilised towards the sum due on
allotment.
Ashok to whom 3,000 shares were allotted failed to pay the allotment money and the
two calls. Baneet who applied for 3,000 shares paid the calls money along with
allotment money. Pass journal entries to record the above transactions.

OR
i. Sonu Ltd., forfeited 800 shares of ₹ 10 each, ₹ 7.50 paid, for non-payment of Final Call
of ₹ 2.50 per share. Out of these, 600 shares were re-issued as fully paid up in such a
way that ₹ 2,100 were transferred to capital reserve. Pass necessary journal entries.
ii. X Ltd., forfeited 800 shares of ₹ 10 each, ₹ 7.50 called-up, for non-payment of First
Call of ₹ 2.50 per share. Out of these, 600 shares were re-issued for ₹ 6 per share as ₹
7.50 paid up. Pass necessary journal entries.
iii. 400 shares of ₹ 10, on which ₹ 8 has been called and ₹ 6 has been paid, are forfeited.
Out of these, 300 are re-issued for ₹ 7 as fully paid. Pass necessary journal entries.

24. Following was the Balance Sheet of A and B who sharing profits in 2:1 as at 31st [6]
March, 2021
Balance Sheet
Liabilities Rs. Assets Rs.
Creditors 32,950 Cash 600
Capitals: Debtors 4850
A 15,000 Stock 10,000
B 10,000 25,000 Machinery 17,500
Building 25,000
57,950 57,950
C admitted as a partner on the following terms:
a. C was to bring in Rs.7,500 as capital and Rs. 3,000 as his 1/4th share of goodwill.
b. Stock and Machinery were to be reduced by 5%.
 c. A provision was to be created in respect of Debtors Rs. 375.
d. Building was to be appreciated by 10%.
Prepare Revaluation Account, Capital Account and Balance Sheet after admission.

OR
N, S, and B were partners in a firm sharing profits and losses in proportion of , and1

2
1

6
1

respectively. The Balance Sheet of the firm as at 31st March, 2023 was as follows:
Balance Sheet of N, S and B as at 31.3.2023
Liabilities Amount (₹) Assets Amount (₹)
Capital: Freehold Premises 40,000
N 30,000 Machinery 30,000
S 30,000 Furniture 12,000
B 28,000 88,000 Stock 22,000
Bills Payable 12,000 Sundry Debtors 20,000
General Reserve 12,000 Less: Provision for Bad Debts (1,000) 19,000
Sundry Creditors 18,000 Cash 7,000
1,30,000 1,30,000
B retired from the business on the above date and the partners agreed to the following:
i. Freehold premises and stock were to be appreciated by 20% and 15% respectively.
ii. Machinery and furniture were to be depreciated by 10% and 7% respectively.
iii. Provision for bad debts was to be increased by ₹ 1,500.
iv. On B’s retirement goodwill of the firm was valued at ₹ 21,000.
v. The continuing partners decided to adjust their capitals in their new profit-sharing ratio
after retirement of B. Surplus/deficit, if any, in their capital accounts was to be adjusted
through their current accounts.
Prepare Realisation Account, Partners’ Capital Accounts and the Balance Sheet of the
reconstituted firm.

25. Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 : 2. Their [6]
Balance Sheet as at 31st March, 2019 was as under:
 Balance Sheet of Prem, Kumar and Aarti
as at 31st March, 2019
Liabilities ₹ Assets ₹
Capitals: Building 25,000
Prem 30,000 Plant and Machinery 15,000
Kumar 20,000 Investments 10,000
Aarti 20,000 70,000 Debtors 10,000
General Reserve 8,000 Stock 5,000
Investment Fluctuation Reserve 2,000 Cash 25,000
Sundry Creditors 10,000
90,000 90,000
On the above date, Kumar retired. The terms of retirement were:
i. Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000
ii. Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000
iii. Investments were sold for ₹ 11,000.
iv. There was an unrecorded creditor of ₹ 7,000.
v. An amount of ₹ 30,000 was paid to Kumar in cash which was contributed by Prem
and Aarti in the ratio of 2 : 1. The balance amount of Kumar was settled by
accepting a Bill of Exchange in favour of Kumar.
Prepare the Revaluation Account, Capital Accounts of partners and the Balance Sheet
of the reconstituted firm.

26. Ravi Ltd. acquired running business of Amit Ltd. having assets of ₹ 10,00,000 and [6]
liabilities of ₹ 2,50,000. 9% Debentures of ₹ 100 each were issued for the acquisition
of business at a premium of ₹ 20 per debenture. The company issued 10,000,8%
Debentures of ₹ 100 each redeemable at premium of ₹ 20 per debenture after 5 years.
You are required to pass the Journal entries for the above transactions.

Part B :- Analysis of Financial Statements

27. The financial statements of a business enterprise include: [1]

a) All of these b) Profit & Loss Account

 c) Cash Flow Statement d) Balance Sheet

OR
Which of the following will not covered under finance cost?
i. Discount on issue of debentures written off
ii. Interest paid on bank overdraft
iii. Bank charges
iv. Premium payable on redemption of debentures written off

a) Only ii b) Only iv

c) Only iii d) Only i

28. On the basis of following data, the cost of revenue from operations by a company will [1]
be:
Opening Inventory ₹ 70,000; Closing Inventory ₹ 80,000; Inventory Turnover Ratio 6
Times.

a) ₹ 1,50,000 b) ₹ 4,80,000

c) ₹ 4,50,000 d) ₹ 90,000

29. Fly Ltd, a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is: [1]

a) Financing Activity b) Operating Activity

c) General Activity d) Investing Activity

OR
Koval Ltd. is a financing company. Under which activity will the amount of interest paid
on a loan settled in the current year be shown?
i. Investing Activities
ii. Financing Activities
iii. Both Investing and Financing Activities
iv. Operating Activities

a) ii and iii b) i and ii

 c) iii and iv d) only iv

30. payment of bonus to the employees by an insurance company is which type of [1]
activity?
i. Operating Activity
ii. Investing Activity
iii. Financing Activity
iv. Both operating and Financing Activity

a) iv and i b) only i

c) ii and iii d) iii and iv

31. State under which major headings and sub-headings the following items will be [3]
presented in the balance sheet of a company as per Schedule III of the Companies Act
2013.
i. Calls in Advance.
ii. Accrued Interest on Calls in Advance.
iii. Provision for Retirement Benefits
iv. Stores and Spares.
v. Capital Work in Progress.
vi. Design
vii. Securities Premium.

32. The current ratio of Y Ltd is 2 : 1. State with reason, which of the following [3]
transactions would (a) increase, (b) decrease (c) not change the ratio.
i. Trade receivables included debtors of ₹ 40,000 which were received earlier.
ii. Company purchased furniture of ₹ 45,000. The vendor was paid by the issue of
equity shares of ₹ 10 each at par.

33. From the following information obtained from the books of Vichar Ltd., prepare a [4]
Comparative Statement of Profit and Loss for the year ending 31st March, 2019:
Particulars 2018-19 2017-18
Revenue from 300% of cost of materials 200% of cost of materials
operations consumed consumed
Cost of materials
₹ 4,00,000 ₹ 2,00,000
consumed
20% of cost of materials 20% of cost of materials
Other expenses
consumed consumed
Tax rate 50% 50%

OR
From the following Balance Sheet of Sun Ltd. as at 31st March 2023, prepare Common-
Size Balance Sheet:
Note 31st March, 2023 31st March, 2022
Particulars
No. (₹) (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 80,00,000 60,00,000
(b) Reserves and Surplus 12,00,000 8,00,000
2. Non-Current Liabilities
Long-term Borrowings 24,00,000 20,00,000
3. Current Liabilities
Short-term Borrowings 4,00,000 12,00,000
Total 1,20,00,000 1,00,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and
Intangible Assets:
(i) Property, Plant and Equipment 80,00,000 60,00,000
(ii) Intangible Assets 4,00,000 12,00,000
2. Current Assets
 (a) inventories 24,00,000 20,00,000
(b) Cash and Cash Equivalents 12,00,000 8,00,000
Total 1,20,00,000 1,00,00,000

34. From the following Balance Sheet of Vehalna Steel Ltd. as at 31st March 2017 and [6]
31st March 2016. Prepare Cash Flow Statement:
Particulars Note No. 31st March 2017 31st March 2016
I EQUITY AND LIABILITY
Share holders fund
Share Capital 1 700000 500000
Reserves and surplus 2 250000 325000
Non Current Liabilities
Long Term Borrowings 3 200000 250000
Current Liabilties
Short Term Provisions 4 74000 49000
1224000 1124000
Assets
Non Current asset
Fixed Asset
MAchinery 500000 300000
Non current investments 200000 140000
Current asset
Invesntories 150000 200000
Trade receivables 204000 174000
Cash 170000 310000
1224000 1124000

Share capital
Equity Share capital 600000 300000
 12% preferance share capital 100000 200000
700000 500000
Reserve and surplus
General Reserve 135000 375000
Surplus 115000 -50000
Long Term Borrowings
9% Debenturs 200000 250000
Short Term Provisions
Proposed Dividend 24000 24000
Provision for Tax 50000 25000
74000 49000
Additional Information
i. Machinery Costing 100000 on which Depreciation charged was 70000 was sold at a
profit of 20% on book value. dep charged during the year amounted to 70000.
ii. Preference shares redeemed at par on 31st march 2017
iii. Debentures were redeeemed on Jan 1 , 2017 and equity shares were issued on april
1,2016
iv. Income tax 45000 was provided
v. Non current investments costing 60000 were sold at a profit of 20%
vi. The company declares and paid interim dividend on equity shares 40 per share out
of generl reserve. It did not propose final dividend on equity shares.