S.R.

Study Material

S R SAMPLE PAPER 1
Class 12 - Accountancy
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. Premium brought by the new partner will be shared by the existing partners in: [1]

a) Sacrificing Ratio b) Old Ratio

c) New Ratio d) Gain Ratio

2. Assertion (A): Capital is the amount introduced in cash or in-kind by the partners. [1]
Reason (R): A Capital Account is opened in the name of each partner and the introduction is debited to this
account.

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

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

3. Ankit Ltd. decided to issue 75,000 equity shares of ₹ 10 each at a premium of 20%. The whole amount was [1]
payable on application. Applications for 1,00,000 shares were received.
Applications for 5,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata
basis.
Amount refunded by the company will be:

a) 2,40,000 b) 50,000

c) 60,000 d) 3,00,000

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 OR
Vinod Limited issued 12%, 1,000 Debentures @ 100 each at a premium of 10%. What will be the first journal entry?

a) 12% Debentures A/c ... Dr. 1,10,000 b) Bank A/c ... Dr. 1,10,000
To Debentures App. & Allot. A/c 1,10,000 To Debentures App. & Allot. A/c 1,00,000
To Securities premium 10,000

c) Bank A/c ... Dr. 1,10,000 d) Bank A/c ... Dr. 1,00,000
To 12% Debentures App. & Allot. A/c To Debentures App. & Allot. A/c 1,00,000
1,10,000
(Being Application money received)
4. Current assets do not include: [1]

a) Bills Receivable b) Inventory

c) Prepaid Expenses d) Goodwill

OR
Which of the following statement is not correct?

a) Interest on Partner's loan is not paid if firm b) A minor can be admitted as a partner but his
is in loss. rights and liabilities are same of adult
partner.

c) Interest on drawings is calculated whether d) Guaranteed amount will be given to the

firm is in profit or loss. partner whether firm is in profit or loss.
5. Anu, Bindu and Siya were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Siya was [1]
guaranteed that her share of profit will not be less than ₹ 50,000. The firm's profit for the year ended 31st March,
2022 was ₹ 2,00,000. The amount of deficiency to be borne by Anu was:

a) ₹ 10,000 b) ₹ 2,500

c) ₹ 75,000 d) ₹ 5,000
6. Sunbeam Limited issued 4,000, 6% Debentures of ₹ 100 each at ₹ 95 per debenture. 6% Debentures account will [1]
be credited by:

a) ₹ 4,00,000 b) ₹ 3,80,000

c) ₹ 20,000 d) ₹ 4,40,000
OR
Under which head the amount of discount which is unamortized or cannot be written off, is shown in the balance
sheet?

a) Other Non-current Liabilities b) Other current liabilities

c) Other current assets d) Other Non-current Assets

7. Assertion (A): Calls made but not received from the shareholders are Calls-in-Arrears and is always transferred [1]
to Calls-in-Arrears Account and shown under Shares Subscribed but not Fully Paid-up as deduction in the Note
to Accounts on Share Capital.
Reason (R): Amount not received against Calls are Calls-in-Arrears but it is not always transferred to Calls-in-

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 Arrears Account. The amount not received is shown under Shares Subscribed but not Fully Paid-up as
Deduction.

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

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

8. Increase in the value of assets at the time of retirement of a partner is: [1]

a) Credited to profit and loss account b) Credited to Revaluation Account

c) Debited to Revaluation Account d) Debited to Profit and Loss Account

OR
Ravi and Yogesh are partners sharing profits and losses in the ratio of 2 : 3 with the capitals of ₹ 5,00,000 and ₹

6,00,000 respectively. On 1st January 2023, Ravi and Yogesh granted loans of ₹ 20,000 and ₹ 10,000 respectively to
the firm. Determine the amount of loss to be borne by each partner for the year ended 31st March 2022 if the loss
before interest for the year amounted to ₹ 2,500.

a) Share of Loss Ravi - ₹ 1,000 Yogesh - ₹ b) Share of Loss Ravi - ₹ 820 Yogesh - ₹ 1,230
1,500

c) Share of Loss Ravi - ₹ 1,250 Yogesh - ₹ d) Share of Loss Ravi - ₹ 1,180 Yogesh - ₹
1,250 1,770

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
Ankit and Balvant are partners sharing profits equally. Business is being carried from the property owned by Ankit on a
yearly rent of ₹ 24,000. Ankit is to get salary of ₹ 1,20,000 p.a. and Balvant is to get commission @ 5% on net sales,
which was ₹ 30,00,000. Profits for the year ended 31st March, 2019 before providing rent was ₹ 5,00,000.
9. What is the amount of commission payable to Balvant?

a) ₹ 1,50,000 b) ₹ 2,00,000

c) ₹ 1,00,000 d) ₹ 1,20,000
10. What is the profit after charging rent?

a) ₹5,00,000 b) ₹ 3,00,000

c) ₹ 4,76,000 d) ₹ 4,00,000
11. Sometimes a partner may be guaranteed a minimum amount of his share in profits by [1]

a) Always by two partners b) All partners

c) Both All partners and in agreed ratio by all d) In agreed ratio by all old partners
old partners
12. Pro-rata allotment of shares is made when there is: [1]

a) Equal subscription b) Over subscription

c) Under subscription d) As and when desired by directors

13. Balwant Ltd Purchased Machinery from Gagan Ltd. by paying as follows: [1]

Through Bank Draft ₹ 3,00,000

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 Through Bills Payable ₹ 1,00,000

Remaining balance through 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.

Amount of Purchase consideration was ________.

a) 8,80,000 b) 7,20,000

c) 8,00,000 d) 7,00,000
14. If the Partner’s Capital Accounts are fluctuating, in that case following item/items will be recorded in the credit [1]
side of capital accounts:

a) Commission of partners b) All of these

c) Interest on capital d) Salary of partners

15. The ratio which is computed to determine the sacrifice of the old partners made in favour of new partner which [1]
is admitted into partnership is:

a) Sacrificing Ratio b) Old Profit Sharing Ratio

c) New Profit Sharing Ratio d) Gaining Ratio

OR
When a new partner is admitted the balance of General Reserve appearing in the Balance Sheet at the time of
admission is credited to:
i. Capital/current Accounts of all partners (including new partner)
ii. Capital/current Accounts of all old partners only
iii. Capital/current Accounts of Sacrificing partners only
iv. Capital/current Accounts of Gainer partners only

a) Option (iii) b) Option (i)

c) Option (iv) d) Option (ii)

16. The account which is prepared on dissolution of a partnership firm: [1]

a) Revaluation Account b) Realisation Account

c) P & L Appropriation Account d) None of these

17. A and B are partners in a firm sharing profits in the ratio of 4 : 1. They decided to share future profits in the ratio [3]
of 3 : 2 w.e.f. 1st April, 2022. On that day, Profit and Loss Account showed a debit balance of ₹ 1,00,000.
Pass Journal entry to give effect to the above.

18. Following is the extract of the Balance Sheet of Yogesh and Ram as on March 31st, 2023: [3]
Balance Sheet

as at 31st March, 2023

Liabilities Amount ₹ Assets Amount ₹

Yogesh’s Capital 10,00,000 Sundry Assets 30,00,000

Ram’s Capital 10,00,000

Yogesh’s Current Account A/c 1,00,000

Ram’s Current Account A/c 1,00,000

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 Profit and Loss Appropriation (2022-23) 8,00,000

30,00,000 30,00,000

During the year Ram’s drawings were ₹ 30,000. Profits during year ended 31st March, 2023 is ₹ 10,00,000.

Calculate interest on capital @ 5% p.a for the year ending March 31st, 2023.
OR
Sajal and Kajal are partners sharing profits and losses in the ratio of 2 :1. On 1st April, 2018 their Capitals were:
Sajal-₹ 50,000 and Kajal-₹ 40,000. Prepare Profit and Loss Appropriation Account and the Partners' Capital
Accounts at the end of the year after considering the following items:
i. Interest on Capital is to be allowed @ 5% p.a.
ii. Interest on the loan advanced by Kajal for the whole year, the amount of loan being ₹ 30,000.
iii. Interest on partners' drawings @ 6% p.a. Drawings: Sajal ₹ 10,000 and Kajal ₹ 8,000.
iv. 10% of the divisible profit is to be transferred to Reserve.
Net profit for the year ended 31st March, 2019 is ₹ 68,460.
Note: Net profit means net profit after debit of interest on loan by the partner.
19. Ram Ltd. issued 4,000, 8% Debentures of ₹ 200 each at a premium of 6% payable as ₹ 80 on application and ₹ [3]
132 on the allotment. Debentures are redeemable after 7 years. Record entries assuming all the money is duly
received.
OR
Journalise the following transactions in the books of Reshma Ltd.:
200 shares of ₹ 10 each issued at a premium of ₹ 5 each payable with allotment were forfeited for the non payment of
allotment money of ₹ 8 per share including premium. The first and final call on these shares at ₹ 3 per share was not
made. The forfeited shares were re-issued @ ₹ 12 per share fully paid up.
20. A partnership firm earned net profits during the last three years ended 31st March, as follows: [3]
2017 - ₹ 16,000; 2018 - ₹ 22,000; 2019 - ₹ 20,000.
The capital investment in the firm throughout the above-mentioned period has been ₹ 80,000. Having regard to
the risk involved, 10% is considered to be a fair return on the capital. Calculate value of goodwill on the basis of
two years' purchase of average super profit earned during the above-mentioned three years.
21. Sankalp Ltd. issued 50,000 shares of ₹ 10 each credited as fully paid to the promoters for their services. It also [4]
issued 30,000 shares of ₹ 10 each credited as fully paid to the underwriters for their commission. Give journal
entries.
22. How deficiency of creditors is paid off at the time of dissolution of the firm. [4]
23. Mira Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The [6]
amount was payable as follows:

On Application ₹ 4 per share

On Allotment ₹ 6 per share (including premium ₹ 3)

On First and Final Call Balance

Applications were received for 3,00,000 shares and allotment was made on pro-rata basis to all the applicants.
Money overpaid on applications was utilised towards sums due on allotment. Sanjay, who applied for 6,000
shares failed to pay the allotment money while Rahul holding 2,000 shares paid the first and final call money
with allotment. Sanjay’s shares were forfeited immediately after allotment. Thereafter, first and final call was

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 made and was duly received. Half of the forfeited shares were reissued to Veena as fully paid for ₹ 9 per share.
Pass the necessary journal entries to record the above transactions in the books of Mira Ltd.
OR
KS Ltd invited applications for issuing 1,60,000 equity shares of Rs. 10 each at a premium of ₹6 per share. The
amount was payable as follows
On application — ₹4 per share (including premium ₹1 per share)
On allotment — ₹6 per share (including premium ₹3 per share)
On first and final call — Balance
Applications for 3,20,000 shares were received. Applications for 80,000 shares were rejected and application money
refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with
applications was adjusted towards sum due on allotment. Jain holding 800 shares failed to pay the allotment money.
His shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who had applied for
1,200 shares failed to pay the final call. These shares were also forfeited. Out of the forfeited shares 1,000 shares
were re-issued at ₹8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain.
Pass necessary journal entries for the above transactions in the books of KS Ltd.
24. R and S are partners in their capital ratio. [6]
Balance Sheet of R ans S as at 31 March, 2021

Liabilities Rs. Assets Rs.

Capital A/cs: Building 20000

R 30000 Machinery 13500

S 25000 55000 Furniture 1750

Current A/cs: Vehicles 1350

R 2000 Stock 14100

S 1800 3800 B/R 13060

Creditors 19000 Debtors 27500

B/P 16000 Bank 1590

Cash 950

93800 93800

On the above date, they admitted A into Partnership on the following terms:
a. A to bring in Rs. 20000 as capital and Rs. 6600 for goodwill for his 1/4th share.
b. Provision for doubtful debts created at 2%.
c. Stock to be written down by 5%.
d. Building are to be valued at Rs. 22400; Machinery Rs. 11800; Furniture Rs. 1540 and Vehicles Rs. 800.
Prepare necessary accounts and Balance Sheet of the new firm.
OR

Raj, Kamal and Mohit are partners in a firm, sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2022,
their Balance Sheet was as under:

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 BALANCE SHEET
as at 31st March, 2022

Liabilities ₹ Assets ₹

Creditors 39,200 Land and Building 48,000

General Reserve 16,000 Plant 72,000

Capital A/cs: Inventory 34,000

Raj 76,800 Trade Marks 26,400

Kamal 69,600 Bills Receivables 39,200

Mohit 54,000 2,00,400 Cash in Hand 24,000

Advertisement Suspense 12,000

2,55,600 2,55,600

Kamal died on 30th September, 2022. An agreement was reached amongst Raj, Mohit and Kamal’s legal
representative that:
i. Goodwill to be valued at 2 year’s purchase of the average profits of the previous three years, which were:

Year: 2019-20 2020-21 2021-22

Profit: ₹ 31,200 ₹ 28,800 ₹ 36,000

ii. Trade marks to be revalued at ₹ 19,200; plant at 80% of its book value and land building at ₹ 57,600.
iii. Kamal’s share of profit to the date of his death to be calculated on the basis of previous year’s profit.
iv. Interest on capital to be provided @ 10% per annum.
v. ₹ 60,080 to be paid in cash to Kamal’s legal representative and balance to be transferred to the legal
representative’s loan account.
You are required to prepare:
i. Revaluation Account.
ii. Kamal’s Capital Account, and
iii. Kamal’s Legal Representative’s Account.
25. A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. Their Balance Sheet as at 31st March, 2018 was [6]
as follows:

Liabilities ₹ Assets ₹

Sundry Creditor 20,000 Cash 6,400

Expenses Owing 5,000 Debtors 20,000

Reserve Fund 18,000 Less: Provision 400 19,600

Capitals: Stock 30,000

A 60,000 Patents 8,000

B 50,000 Machinery 1,20,000

C 40,000 1,50,000 Goodwill 9,000

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 1,93,000 1,93,000

B retired on the above date upon the following terms:

i. Goodwill of the firm be valued at ₹ 63,000.
ii. Machinery be written down by 10% and the patents written up by 25%.
iii. Provision for doubtful debts be brought upto 5% on debtors and a provision of 2 1

2
% on creditors be made for
discount.
iv. Expenses owing are to be brought down to ₹ 3,900.
v. B is to be paid ₹ 30,000 immediately, which is to be contributed by A and C in their new profit sharing ratio
which is 3 : 2.
Give journal entries to record the above and the Balance Sheet of the firm after B's retirement.
26. Himanshu Ltd. issued on 1st July, 2022, 20,000, 7% Debentures of ₹ 100 each for subscription at 10% premium, [6]
payable ₹ 40 on application; ₹ 40 (including premium) on allotment and balance on first and final call. The
debentures were subscribed and allotted. The company has not made first and final call during the year ended
31st March 2023. Interest was payable on 31st March each year.
Pass the Journal entries for issue of debentures and interest for the year ended 31st March, 2023 and transfer the
interest to Statement of Profit & Loss.
Part B :- Analysis of Financial Statements
27. Financial Analysis can be used for [1]

a) Dividend Decisions b) Credit Analysis

c) Securities Analysis d) All of these

OR
Raw materials purchased is shown in the Statement of Profit and Loss as:

a) Cost of Materials Consumed b) Changes in Inventories of Finished Goods,

Work-in-Progress and Stock-in-Trade

c) Purchases of Stock-in-Trade d) Other expenses

28. Current ratio of Elpis Pvt. Ltd. is 3 : 2. Accountant wants to maintain it at 2 : 1. Following options are available: [1]
i. He can repay bills payable
ii. He can purchase goods on credit
iii. He can take short-term loan
Choose the correct option:

a) Only (i) and (iii) are correct. b) Only (ii) and (iii) are correct.

c) Only (i) is correct. d) Only (ii) is correct.

29. Which activity are the main revenue-generating activities of the enterprises? [1]

a) Cash flow from investment activities b) Cash flow from operating activities

c) Non Cash transactions d) Cash flow from management activities

OR
Which of the following transaction is untrue regarding the limitations of the cash flow statement?

a) To help in short-term financial planning b) It is not used for judging the profitability of
enterprises

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 c) To ascertain the net changes in cash and d) To ascertain the liquidity of enterprises
cash equivalents
30. Which of the following is not included in Cash and Cash Equivalents? [1]
i. Balance with Banks
ii. Bank deposits with 100 days of maturity
iii. Cheques and Drafts on hand
iv. Cash on hand

a) i and ii b) iii and iv

c) only ii d) iv and i
31. Under what headings will you show the following items in the Financial Statements of a Company: [3]
i. Goodwill
ii. Unclaimed Dividends
iii. Provision for Tax
iv. Securities Premium Reserve
v. Loose Tools
vi. Sale of Products
vii. Interest paid on Overdraft
viii. Business promotion exp.
32. Calculate Fixed Assets turnover ratio- [3]
Cost of goods sold : Rs 16,80,000
Gross profit = Rs 5,60,000
Capital employed = Rs 43,00,000
Working capital = Rs 80,000
33. Convert the following statement of profit and loss of BCR Co. Ltd. into the comparative statement of profit and [4]
loss of BCR Co. Ltd.:

Particulars Note No. 2015-16 (₹) 2016-17 (₹)

(i) Revenue from operations 60,00,000 75,00,000

(ii) Other incomes 1,50,000 1,20,000

(iii) Expenses 44,00,000 50,60,000

(iv) Income tax 35% 40%

OR
From the following Information, prepare a Comparative Statement of Profit and Loss:

Particulars 31st March, 2019 31st March, 2018

Revenue from Operations ₹30,00,000 ₹20,00,000

Other Income (% of Revenue from Operations) 12% 20%

Expenses (% of Operating Revenue) 70% 60%

Tax Rate 40% 40%

34. There was Nil net cash flow from operating activities of HCD Ltd. during the year ending 31st March, 2023. [6]

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From the following Balance Sheet of HCD Ltd. as at 31st March, 2023, prepare a Cash Flow Statement:
HCD Ltd.
Balance Sheet as at 31st March, 2023

31.3.2023 31.3.2022
Particulars Note No.
₹ ₹

I Equity and Liabilities:

1. Shareholders Funds:

(a) Share Capital 19,00,000 11,00,000

(b) Reserves and Surplus 1 1,60,000 2,00,000

2. Non-Current Liabilities:

Long-term Borrowings 2 1,00,000 4,00,000

3. Current Liabilities:

(a) Short-Term Borrowings 3 2,50,000 2,30,000

(b) Short-Term Provisions 4 1,90,000 2,70,000

Total 26,00,000 22,00,000

II Assets:

1. Non-Curren Assets:

(a) Property, Plant and Equipment and Intangible

(i) Property, Plant and Equipment 5 15,00,000 11,00,000

(ii) Intangible Assets 6 2,80,000 1,70,000

2. Current Assets:

(a) Current Investments 1,30,000 2,90,000

(b) Trade Receivables 3,90,000 4,10,000

(c) Cash and Cash Equivalents 3,00,000 2,30,000

Total 26,00,000 22,00,000

Notes to Accounts:

Note No. Particulars 31.3.2023 (₹) 31.3.2022 (₹)

1. Reserves and Surplus:

Surplus (Balance in the Statement of Profit and Loss) 1,60,000 2,00,000

2. Long-term Borrowings:

8% Debentures 1,00,000 4,00,000

3. Short-term Borrowings:

Bank overdraft 2,50,000 2,30,000

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4. Short-term Provisions:

Provision for Tax 1,90,000 2,70,000

5. Tangible Assets:

Plant and Machinery 16,30,000 11,70,000

Accumulated Depreciation (1,30,000) (70,000)

15,00,000 11,00,000

6. Intangible Assets:

Goodwill 2,80,000 1,70,000

Additional information:
1. A machinery of the book value of ₹ 60,000, (depreciation provided thereon ₹ 20,000) was sold at a loss of ₹
6,000.
2. 8% Debentures were redeemed on 1st July, 2022.

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