KANHA MAKHAN PUBLIC SCHOOL
Half yearly Examination 2022-23
SUBJECT: ACCOUNTANCY (055)
Class XII
DURATION: 3 Hours MAX.MARKS:80
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Questions 1 to 20 carries 1 mark each.
3. Questions 21 to 26 carries 3 marks each.
4. Questions from 27 to 29 carries 4 marks each.
5. Questions from 30 to 34 carries 6 marks each.
Q1. A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹
2,00,000, Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted and new profit sharing ratio is agreed at 6 : 9 :
5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @ 5%. Loss on revaluation
amount to ₹20,000. Revalued value of Stock will be: (1)
(a) ₹62,000 (b) ₹1,00,000 (c) ₹32,000 (d) ₹48,000
Q2. A,B and C are partners in a firm. They admit D on 1st April 2020, for 1/3 Share in the profits of the firm. D
acquired his share as 1/12 from A and the Remaining from B and C in the ratio of 2:1. The scarifies ratio
of the old partners will be? (1)
Q3. Arif, Ravi and Ben are partners in a firm sharing profit and losses in the ratio of 6:4:1. Arif Guaranteed a
minimum profit of Rs.16,000 to Ben. The trading profit of the firm for the year ending 31 st March 2021
was Rs.1,32,000. Arif’s Share in the profit of the firm will be: (1)
(a) 72,000 (b) ₹ 68,000 (c) ₹ 69,000 (d) ₹ 16,000
Q4. . A and B are partners with capitals of ₹ 3,00,000 and ₹ 2,00,000 respectively. Normal rate of return is 15%
and goodwill calculated at 2 years purchase of super profit is valued at ₹ 1,00,000. What were the average
profits of the firm? (1)
Q5. Calculate the interest on Drawing of Bipasa @9% p.a for the year ended 31 st march 2007 if she withdrew
₹ 10,000 at the end of each quarter. (1)
Q6. Define the status of partnership from accounting point of view and legal point of view. (1)
Q7. ‘ partnership is the relation between two or more persons who have agreed to share profits of a business
carried on by all or any of them acting for all, according to the partnership Act 1932 section ………………… (1)
Q8. A partnership firm earns ₹ 2,20,000. The normal rate of return is 10%. The assets of the firm amounted
to ₹ 22,00,000 and liabilities to ₹ 2,00,000. Value of Goodwill by Capitalization of Average Actual Profits will
be? (1)
Q9.Average profit shown by a business is Rs.20,000. Normal rate of return is 10%. Total assets of the
business firm are ₹ 2,40,000 and liabilities ₹ 80,000. Value of Goodwill will be? (1)
Q10. Which of the following is not transferred to partner’s capital account? (1)
(a) Retain earnings (b) General Reserve (c) Employees Provident fund (d) Contingency Reserve
Q11. A and B are partners who share profit in the ratio of 3:2. They admit C for 1/4 th share. A and B decided
to share future profits equally. Calculate new ratio and Sacrificing Ratio. (1)
Q12. L and M are partners sharing profits as 80% and 20%. They admitted Q for 25% share in profit, which he
acquired wholly from L. New profit sharing ratio of the partners will be……………..? (1)
Q13.A and B are partners sharing profit in the ratio 3:2. They admit C into partnership. C pays premium of
Rs.1000 for 1/4th share of profits. The new profit sharing ratio is 3:3:2. Give the necessary journal entries. (1)
Q14. Stock worth ₹ 24,000 given in the balance sheet. In additional information it is given that 1/4 th of the
stock was valued at 70%. How would you treat this item while preparing accounts? (1)
Q15. Give two circumstances in which the gaining ratio is applied. (1)
Q16. A,B and C were partners in a firm sharing profits in the ratio of 5:3:2. They closed their books on 31 st
March every year. C dies after 3 months and sales for that period was ₹ 40,000. The profit for the last
year was ₹ 20,000 and sales worth ₹ 1,00,000. Calculate C’s Share of profit for the current year on the
basis of Sales. (1)
Q17. AK,BK and CK were partners sharing profits in the Ratio of 2:2:1. CK died after 6 months of closing of
Balance Sheet on 31st March 2020. AK and BK decided to continue the business. CK’s Share of profit/Loss
is to be calculated on the basis of last year’s divisible profit/loss. Divisible loss on 31 st March 2020 was ₹
2,00,000. Pass the journal entries. (1)
Q18.What is Realization Account? (1)
Q19. At the time of dissolution of Partnership, fictitious asset are transferred to (1)
(i) Realization A/c (ii) Partner’s Capital A/c (c) Cash A/c (d) Both A and B
Q20.If Total assets are ₹ 1,20,000(except Cash); external liabilities are ₹ 70,000; Amount realized from sale of
asset ₹95,000 and realization expenses ₹5000, the profit and loss on realization will be: (1)
(i) Realization Gain ₹40,000 (ii) Realization Gain ₹30,000
(iii) Realization Loss ₹.40,000 (iv) Realization loss ₹30,000
Q21. The average profit earned by a firm is ₹.80,000 which includes undervaluation of stock of ₹ 8,000 on an
average basis. The capital invested in the business is₹ .8,00,000 and the normal rate of return is 8%.
Calculate goodwill of the firm on the basis of 7 times the super profit. (1)
Q22. Danish , Ana and Pranjal are partners in a firm sharing profits and losses in the ratio of 5:3:2. Their books
are closed on march 31st every year. Danish died on September 30th 2019. The executor of Danish are
entitled to:
(i) His share of capital i.e, ₹ 5,00,000 along with his share of goodwill. The total goodwill of the firm
was valued at ₹ 60,000
(ii) His share of profit up to his date of death on the basis of sales till date of death. Sales for the year
ended march 31,2019 was ₹ 2,00,000 and profit for the same year was 10% on sales. Sales shows a
growth trend of 20% and percentage of profit earning is reduced by 1%.
(iii) Amount payable to Danish was transferred to his executor.
Pass necessary journal entries and show the working clearly. (3)
Q23. A, B and C were partners. Their capitals were ₹30,000, ₹ 20,000 and ₹ 10,000 respectively. According
to the partnership deed, they were entitled to an interest on capital at 5% p.a. In addition B was
also entitled to draw a salary of `500 per month. C was entitled to a commission of 5% on the profits
after charging the interest on capital, but before charging the salary payable to B. The net profits
for the year were `30,000, distributed in the ratio of their capitals without providing for any of the
above adjustments. The profits were to be shared in the ratio of 2 : 2 : 1.
Pass the necessary adjustment entry showing the workings clearly. (3)
Q24 Swati and Meera are partners sharing Profit in Proportion of 3:2 with capital of ₹ 4,00,000 and ₹ 3,00,000
respectively. Interest on capital is agreed @ 5% P.a. Meera is to be allowed an annual salary of ₹ 30,000
which has not been withdrawn. During 2014-15 the profit for the year prior to Calculation of interest on
capital but after charging Meera’s Salary amounted to ₹ 1,20,000. A provision of 5% of the profits is to be
made in respect of commission to the manager. Prepare profit and loss Appropriation Account. (3)
Q25. A partnership firm earned net profit during the last three year as follows: 2008: ₹ 1,90,000, 2009;
₹2,20,000, 2010; ₹ 2,50,000. The capital employed in the firm throughout the above mentioned period
had been ₹ 4,00,000. Having regard to the risk involved 15% is considered to be a fair return on the
capital. The remuneration of all the partners during this period is estimated to be ₹ 1,00,000 per annum.
Calculate the goodwill by Capitalization method and by two years purchase of super profits earned on
average basis during the above mention three years. (3)
Q26. . Krish and Avi were partners in the firm sharing profit and loss in the ratio of 5:2 and the capital
contributed of ₹ 1,00,000 and ₹ 50,000 respectively. Gopal who belonged to a poor family but well
educated was working as a manager with them since five years. Krish and Avi decided to admit Gopal as
equal partner in the firm and decided to share the profit equally in future. It was decided that Gopal
should bring only 10% of the combined capital of Krish and Avi on that date of admission and nothing is
asked on account of premium of Goodwill. He only expected to work sincerely as was working as a
manager. On that date General reserves appeared at ₹ 1,40,000; profit and loss A/c(debit balance) ₹
70,000. Pass the necessary journal entries on admission of Gopal. (3)
Q27. Pass necessary journal entries for the following at the time of dissolution of partnership firm of A and B
who sharing profit and losses in the ratio of 3:2
(a) Machinery costing ₹ 40,000 were taken over by B at 10% less than the book value.
(b) There were unrecorded investment costing ₹ 30,000 which were taken over by creditors of ₹ 75,000 in
part payment, rest creditors were paid at 10% discount.
(c) A agreed to take ₹ 3800 in full settlement of his loan of ₹ 4,000 given to the firm.
(d) Expenses of realization ₹ 15,000 were paid by partners B, of which ₹ 12,000 were borne by firm. (4)
Q 28. Ajeet and karan are in partnership sharing profits and losses as 3: 1. They admit Dev into the firm for
1/3rd . Dev paying a premium of ₹ 25,000 in cash out of his share of ₹ 30000. As between Ajeet and Karan are
agree to share the future profits and losses equally. Draft the Journal entries showing the working notes. (4)
Q29. A and B had been sharing profits and losses equally. After dividing the profits for the year 2019-20 ₹
60,000, it was agreed that they would share profits and losses from 1st April, 2019 in the ratio 3:2. At that
time it was also found that while preparing accounts for 2019-20, interest on capitals @5% p.a. was ignored.
The fixed capitals of A and B were ₹ 1,00,000 and ₹ 80,000 respectively. Pass a single adjustment entry to
adjust the account of the partners. (4)
Q30. A and B are partners sharing profit and loss in 3:2. Following is the Balance sheet of A and B as at 31 st
march 2018.
Liabilities ₹ Assets ₹
Sundry Creditors 28,000 Cash 20,000
Reserves 42,000 Debtors 1,20,000
Capital Stock 1,40,000
A 2,40,000 Fixed Assets 1,50,000
B 1,20,000 3,60,000
4,30,000 4,30,000
They decided that with effect from 1st April, 2018, they will share profits and losses in the ratio of 2 : 1 .
For this purpose they decided that:
(i) Fixed Assets are to be depreciated by 10%.
(ii) A Provision for Doubtful Debts of 6% be made on Sundry Debtors.
(iii) Stock be valued at ₹ 1,90,000.
(iv) An amount of ₹ 3,700 included in Creditors is not likely to be claimed.
Partners decided to record the revised values in the books. However, they do not want to disturb the
Reserve. You are required to pass journal entries, prepare Capital Accounts of Partners and the revised
Balance Sheet. (6)
Q31. Q6. Amit, Sumit and Nimit are partners in a firm sharing profits in the ratio 5:4:1. Their balance sheet at
31st March 2020 was as follows
Liabilities ₹ Assets ₹
Capital Accounts: Goodwill 27,000
Amit 85,000 Land 64,000
Sumit 54,000 Machinery 34,000
Nimit 36,000 1,75,000 Patents 2,000
General reserves 20,000 Stock 25,000
Outstanding Expenes 14,000 Debtors 50,000
creditors 47,000 bank 54,000
2,56,000 2,56,000
It was agreed that Amit retire on the following terms
(i) The goodwill of the firm is valued at two years purchase of the average annual profits of the
preceding three years. The profits for the last three years ₹ 34,000, ₹ 42,000 and ₹ 50,000.
(ii) Provisions for doubtful debts at 10% on debtors to be created.
(iii) Land revalued at ₹ 82,000 and Machinery at ₹ 24,000
(iv) Sundry creditors have agreed to accept 5% less
(v) Patents were valueless
Prepare revaluation A/c , partner capital accounts and balance sheet of the newly constituted firm. (6)
Q32. X,Y and Z were partners sharing profits and losses in the ratio of 3:2:1 . On 31 st December 2013 their
balance sheet stood as under: (6)
Liabilities ₹ Assets ₹
Sundry Creditors 40,000 Goodwill 9,000
Reserve Fund 15,000 Building 50,000
Capital Account: Patents 8,000
X 60,000 Machinery 60,000
Y 40,000 Stock 25,000
Z 30,000 1,30,000 Debtors 23,000
Cash at Bank 10,000
1,85,000 1,85,000
Y died on 30 April 2014 it was agreed that:
th
(a) Goodwill be valued of 2 year purchase year of the average profit of the last three years, which
were ₹ 25,000; ₹ 35,000; ₹ 30,000 respectively
(b) Machinery be valued at ₹ 54,000, patents at ₹ 4,000,Building at ₹ 60,000
(c) For the purpose of calculating Y share in the profit of 2014, the profit of 2014 should be taken to
have been earned on the same scale as in 2013.
(d) A sum of ₹ 5333 is to be paid immediately to the executor’s of Y and the balance be paid in three
equal half yearly installments together with the interest @ 10% p.a.
Prepare Y’s Capital A/c and Executor’s A/c in 2014.
Q33. A and B are partners in a firm sharing profits in the ratio of 3:2. Their balance sheet as at 31 st
March 2018 stood as under: (6)
Liabilities ₹ Assets ₹
Capital A/c’s: Machinery 33,000
A 35,000 Furniture 15,000
B 30,000 65,000 Investments 20,000
General reserve 10,000 Stock 23,000
Bank loan 9,000 Debtors 18,000
creditors 36,000 Less: provision for DD 2,000 17,000
Cash 12,000
1,20,000 1,20,000
On that date they admitted C into partnership for 1/4 share in the profit on the following terms:
th
(a) C brings capital proportionate to his share. He brings ₹ .7, 000 in cash as his share of goodwill.
(b) All debtors are good.
(c) Depreciate stock by 5% and furniture by 10%
(d) An outstanding bill for repair ₹1000 will be brought in the books.
(e) Half of the investment were to be taken over by A and B in their profit sharing ratio of book value.
(f) Bank loan is paid off.
(g) Partners agreed to share future profits in the ratio of 3:3:2.
Prepare Revaluation Account, partner’s Capital Account and Balance Sheet after Admission of the partner.
Q34. . Following is the balance sheet of A,B and C as at 31st March 2012 (6)
Liabilities ₹ Assets ₹
Creditors 50,000 Bank 20,000
Bills payable 10,000 Debtors 30,000
B’s Loan 8,000 Stock 20,000
Workmen compensation Reserve 12,000 Furniture 15,000
Capital: Land and Building 2,45,000
A 1,00,000 B’s Capital 20,000
B 1,50,000 2,50,000
3,50,000 3,50,000
The firm dissolved on the above date on the following terms
(i) Debtors realized ₹ 28000 and creditors and bills payable were paid at discount of 10%
(ii) Stock was taken over by C for ₹ .15,000 and furniture was sold to N for ₹ 12,000
(iii) Land and Building was sold for ₹.2,80,000
(iv) David’s Loan was paid by a cheque for the same amount.
(v) There was an unrecorded assets of ₹ 20,000 which was sold for ₹ 14,000
Prepare Realisation account and bank account and capital account of A,B and C.
