SAMPLE

QUESTION
PAPER 9
ACCOUNTANCY
Time : 3 hrs Max. Marks : 80
1 · General Instructions
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts A and B.
3. Part A has Accounting for Partnership Firms and Companies.
I
4. Part B has Financial Statement Analysis.
I 5. Questions 1 to 16 and 27 to 30 carries 1 mark e.ach.
.! 6. Questions 17 to 20 and 31-32 carries 3 marks each.
7. Questions 21, 22 and 33 carries 4 marks each.
I 8. Questions 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. When an asset is purchased by a company and debentures are issued in
consideration, then journal entry will be (1)
(a) Vendor's A/c Dr·
To Cash Ale (b) Vendor's Ale Dr
(e) Cash Ale Dr To X% Debentures Ne
(d) None of these
To X% Debentures Ale
2. X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2 y retires and
the goodwill of the firm is valued at~ 18,000. Y's share of go~dwill will be (l)
(aH 18,000 (b) 8,000
(e) 10,000 (d) 6,000
 - ___,, • SAMPLE PAPER 9
jSu ~
209

3, Acompany _issues lO,OOO shares of~ 10 e ach, payable as~ 2 on application,? 3 on allotment
and? 5 on fmal call. The company has called only the application and allotment money. The
amount of capital received will b e re c orded under the head (1)
(a) subscribed but not fully paid-up (b) subsc ribed and fully paid-up
(c) called-up but not subscribe d (d) subscribed but not called-up
Or Reserve c apital o f the comp~ny is the . .. ...... capital.
(a) uncalle d (b) paid-up (c) called-up (d) None of these

4. Sacrificing ratio is determined at the time of change in profit sharing ratio so that
(i) assets and liabilities are shown at the ir present values.
(ii} gaining partner is not put to an advantage and sacrificing partner is not put to disadvantage
and vice-versa.
(iii) gaining partne r c an compe nsate the sacrificing partner for the sacrifice of profit share.
(iv) assets and liabilities a r e shown at their current estimated values. (1)
(a) Only (iii) (b) (i) and (ii)
(c) (ii) and (iv) (d) All of these
Or At the time of a dmission , ip c r ease in the value of liabilities is ......... .
(a) debited t o r evaluation account (b) credit to revaluation account
(c) credited t o partner 's capital a ccount (d) debited to partner's capital account
5. On firm's dissolution, a partner A took over 50% of the stock at a discount of 20% (book value
of stock w as t 5,00,000). Wha t w ill b e the value of taken over stock? (1)
(a) ~ 2,50,000 (b) 1,00,000
(c) 2,00 ,000 (d) 5,00,000

6. Assertion (A) E quity s h are holders a nd p re fe rence shareholders are treated as owners of the
company.
Reason (R ) The liability of every s h a r e holde r of the company is unlimited. (l)

Alternatives
(a) Both Assertion (A) and Re ason (R) are true an d Reason (R) is the correct explanation of
Assertion (A) .
(b) Both Asserti on (A) and Reason (R) are true, but Rea son (R) 1s not the correct explanation of
Assertion (A)
(c) Assertion (A) is fa lse, but Rea son (R) is true
(d) Assertion (A) is true, but Reason ( R) is fa lse
7, Shishu a n d p ran av are p ai-tners in a firm a nd s h a re profits
. and losses in the ratio of 3 ·. 2 •

--=---=
Extra ct of the ir B a lance She e t o n 31 s t Mai-c h, 202 0 1s as follows
liabilities Amt (t') - - =--Asse~ - . Amt(?)
P - 4,000 Debtors 10.000
rov1sion for Doubtful Debtors - -- - -
At the ti me of admission of S h iv as a p artn er, if provision for d o ubtful d ebts is to b e reduced by
10% of . bl on 31st March, 2020, th e n w h at amou nt of provis ion for doubtful
rece1va es as . . -I _ '.>
· 1·eco ns tt tutcd ba 1a nee s 1ee t.
debtor sw1. 11 b es I1own1n (1)
(a)? 1,000 (b) t 3 .000 (e) f 4 oo (d) f 6 ,000
8. A company pu rc h a sed a building for~ 1,80,000 and iss ue d e quity s hares a t 20% pre mium as
Payment. J o u rna l e n try w ill be (1)
(a) Buildi ng Ne Dr 2 ,00,000
1,60,000
To S h a re Ca pj ta l N e 40.000
. . · ·
T o S ce unll es Pre m ium
Rcsc1-vc N e
 .,. ___ ____ - . ___ _ ...,, ........ _. - ... ~ 9 £c. .
·
I

'
(b) Share Capital A/c Dr 2,00,000
To Building A/c 1,80,000
To Securities Premium Reserve Ale 20,000
(c) Building A/c Dr 1,80,000
To Share Capital Ale 1,50,000
To Securities Premium Reserve Ale 30,000
(d) Building Ale Dr 1,80,000
To Share Capital A/c 30,000
To Securities Premium Reserve Ale 1,50,000
9. Capital employ~d by a partnership firm is t 2,50,000. Its average profit is t 30,000. The normal
rate of return in similar type of business is 0%. The amount of super profit will be (1)
(a), 25,000 (b) t 5,000 (c) t 3,000 (d) f 28,000

10. Akash Ltd.registered capital is~ 50,00,000 in shares of~ 10 each. The company issued
i,00,000 of such shares, payable@~ 3 per share on allotment. What will be the amount due
I on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment
00
(a) t 4,00,000 (b) , 6,00,000 (c) , 60,000 (d) f 1,50,000
Or 600 shares of~ 10 each were forfeited for non-payment of~ 2 per share on first cal and t 5 p!r
share oh final call. Share forfeiture account will be credited with
(a), 1,200 (b) f 1,s'oo (c), 3000 (d)' 4,200
L

11. The share of retiring partner after all adjustments is~ 1,00,000. He is paid t 1,25,000. His
l.
share of goodwill is . ... . . . . . . l(l)i
(a), 1,00,000 (b) t 25 ,000 (c) , 50,000 (d), 1,25,000 f
Or 'P' , 'Q' and 'R' are partners sharing profits in the ratio of 3 : 2 : 3. They agree to admit 'Z' int
the firm. P, Q and Ragreed to give ½rd, ¾th and ¾th share of their profit. The share of profit ·
'Z' will be
(a)~ (b) 20 . (c) (d) 24 ·
80 80 80 80
12. A and B are partners. A draws fixed amount at the end of every month. Interest on drawings i
charged @ 15% p.a. At the end of the year, interest on drawings of B amounts tot 2,062.5.
Drawings of A will be
(a)~ 3,000 pm (b) t 2,500 pm (c) t 2,250 pm (d) t 2,000 pm

13. There·are two partners in a firm X and Y. Z is admitted into the firm for !rd share of profit. H
. 3 .
is guaranteed a profit of, 900 p.a. The firm's total profit is, 2,100. If X stood as guarantor of
guaranteed profit to Z, how much profit would be given to X? (
(a)~ 1,000 (b) 750 (c) 500 (d) 900
14. Which of the following statement is true?
(i) Fixed capital accou°i-it will always have a credit balance
(ii) Current account can have a positive or a negative balanc;e
(iii) Fluctuating capital account can have a positive or a negative balance
(a) (i) and (ii) (b) (ii) and (iii) (c) (i) and (iii) (d) (i), (ii) and (iii)
Or When a partner is given guarantee by other partners, loss on such guarantee will be borne by
(a) partnership firm (b) all the other partners
(c) partners who give the guarantee (d) partner with highest profit sharing ratio
 . don Read the. following hypothetical sr·tuatwn
p:re' . and. ·answer Q. No. 15 and 16
chartlfits and D1vya
before are partners
charging any com . · Ch aru was to get a commission o f 10% on the net
in a .firm
p mission Howeve D · · · f 1Ont.
roe net profits after charging all .· . r, ivya was to get a comm1ss10n o -;o on
t comm1ss1ons. .
h Profit 8nd Lou Appropriation Account
Cr
or
fo~· th e year ended 31st Marc h, 201 8
- ---
l Amt(t')
_I Amt(~ Particulars
- ~c - . · --(- 10)--
- - - - Partic~lars
-To--
Q)aru s omm1ss1on ...... x -
I 44,ooo
100
To Qivya Commission I
To Profit transferred to
I I
Charu's Capital Ne
Divya's Capital Ne --
-- _L_
···I
I f-
(1)
fi. Net profit before charging any commission will be ........ . .
(d) t 3,96,000
(a} f 44,000 (b) 4,40,000 (c) ? 4,00,000
(1)
16. Divya' s comm ission will be .......... . (d) t 39,600
(c) ? 36,000
(a)~ 40,000 (b) 44,000
17. Malakar, a partner of RBC firm having capital? 5,00,000 in the firm. He introduced further
capital on 30th June, 2018 oH 1,00,000 and withdrew capital~ 40,000 on 31st December, 2018.
Calculate the total a m ou nt of interest which is payable lo Malakar on 31st March, 2019, if 15%
p.a. interest is allowed on partners ' capital. Also, calculate total capital of Malakar which is
left with the firm on 31st Marc h, 2019, if loss incurred~ 50,000 and drawings made~ 30,000
during the year. (3)
l8. A, B and c are partners in a firm sharing profits_and losses in the ra_tio 2 : 2 : 1. C retires from
the firm. On that date, foll owing balances were m the books of the firm
(i) General Reserve t 36,000
(ii) Profit & Loss Ne (Dr) t 46,000
(iii) Employees Provident Fund t 48,000
(iv) Workmen Compensation Fund t ,BOO
Pass journal entries on C's retirement . (3)

19· Amit, Sumit and Ramit formed a partnership on the followin g terms
2 1
(i) Profit shall be divided in the ratio of 2 : : ·
(ti) Amit's share of profit guaranteed 10 be not less than f 1,25,000 in_any year.
liii) Ram·t . t to the effectthatthe gross fee earned by him for the firm shall not be less
tha 1 gives_gufaranfec_ c ,.ding [our years whe n he was carrying on the profession alone
. n average ees o · p t e t: ·
(iv) Their capital accounts shall be fixed.
The pr fi r th f' r of partnership are t 2,5 1,250. The gross fe es ear ned by Ramit for
o is
the finn ts f1or e trst
40 ,000. yea fees .ean1ed by Rami· l.durmg
Gross · Iast four ye~ were f 40,000, f 60,000,
! 30,000 and! 35 000 respectively. Prepare profit and loss appropna tlon account after giving 3
e[fect to the above.
r· .. t l 5 ooO. Tota l tangible assets in the fi rm are t 1 40 000 and 10 (
I
)
Or Avera
. . . .of the ·u-m
outs ·dge profit ,. 00l) ln• the same t~'Pc o 1· b. ustness,
t!j .· . t he normal rate 'of return
' is ct.
Ca.le 1
lJ e iab1ht.1es a1·c , 40 , · . . • 1
· . • - . . 1
·· h d
d . by capiwlisat10 11 o supc 1 p1 o 11 me t o and average profit -;o.
111
u 1ate value of goo W
111 ethod.
20. Laxmi Ltd purchased the assets of Shri Ram Ltd for, 5,00,000, payable, l ,00,000 in cash and 1
•
the balance by issue of 7% debentures of, 100. Pass necessary journal entries. . (3)
Or Gold Rush Ltd called the first call money of, 3 per share on its 50,000 shares. Dibakar who ,
holds 2,750 shares of the company failed to pay the above amount by the due date of 15th August.
However, he later on paid the amount on 30th August. Journalise in the books when
calls-in-arrears account is not to be opened.
21. Aditya and Balan are partners sharing profits and losses in 3 : 2 ratio. They admitted
Christopher for I/4th share in the profits. The new profit sharing ratio agreed was 2 : 1 : l.
Christopher brought, 50,000 for his capital. His share of goodwill was agreed to at f 15,000.
Christopher could bring only , 10,000 out of his share of goodwill. Record necessary journal
entries in the books of the firm. (4)

22. Vrijesh Ltd. with a registered capital of, 50,00,000 in shares of, 10 each issued 2,00,000 of
such shares, payable t 3 per share on application, , 2 per share on allotment and f 3 per share
on first call. All the amounts payable on allotment were duly received. On the first call being
made, one shareholder paid the entire balance in his holding of 6,000 shares. Give journal
entries to record the transactions and draw up the company's balance sheet. (4)

23. A and B are partners with profit sharing ratio of 3 : 1. Their balance sheet is given below
Balance Sheet
as at 31st December, 2021
Liabilities i Amt (f) Assets Amt(f)
Creditors 4,00,000 Cash 60,00)
Bills Payable 80,000 Bank 1,00,00)
General R~erve 80,000 Debtors 1,20,00)
Profit and Loss 40,000 Building 4,00,00J
Outstanding Expenses 40,000 Machinery 2,00,00)
80,00)
•
Capital Ncs Investment
A 2,00,000 Patent 40,00J
B 2,00,000 4,00,000 iGoodwill 40,00)
10,40,000 . 10,40,00)

Additional Information
(i) c comes for I/5th share and brings capital? 1,6q,ooo and premium for goodwill? 40,000.
(ii} Building increased by 20%. ·
(iii) Outstanding expenses valued at 50,000.
(iv) Make 5% provision for discount on creditors. .
(v) Make 10% provision for doubtful debts and 5% provision for discount on debtors.
(vi) Half premium withdrawn by old partners.
Prepare revaluation account, partners' capital account, cash account and balance sheet. (&)

Or A, B a~d C are partners. They share profits in capitai ratio. Their balance sheet is given below
· ' Balance Sheet
as at 31st December, 2021
Liabilities Amt (~ Assets ' Amt~ -
·- -
2,00,000 Cash in Hand 80,000
Creditors
1,00,000 Debtors 82,00J
Bank Overdraft
60,000 (-) Provision for Doubtful Debts (2,000) 80,000
Reserves
40,000 Land and Building 4,00,000
Expenses Due
-
 ~iabilities- -
Capital Ncs
:_ Arnt (~)
A Assets _ ---1 Amt(~)
8 so,000 I 1Machinery
_, 40,000
C 80,000 1 I
I ,
I
4
1
_ 0.00~ 2.00.000 I I
l 6,00,000 .
Additional Information _,.--_ ....__j
ll-6,00.000
; .-
(i) B takes retirement.
(iii) Goodwill of the firm t 1,20,000.
(ii) New Ratio of A and C i$ 1 : 1.
(r) Building increased by 10%. (iv) Make 5% provision fo r debtors.
(vi) Make provi~ion for claim for damages of~ , _
12 000
(vii) 20,000 paid to Bin cash. Balance transferred to his loan account.
Prepare revaluation account, Partners' capital account, cash account and balance sheet.
24. Varclhman
payable as Ltd invited applications for 1,00,000
follows . equity shares
· on 10 each. The amount was

On application t 3 per share, on allotment t 5 per share, arid on first and final call t 2 per
share. Application
the applicants . were r eceived for 1,50,000 shares and pro-rata allotment was made to all

Naveen, who was a llotted 1,500 shares failed to pay the allotment and call money. His shares
were forfeited. Out o f the forfeited shares, 1,250 shares were re-issued as fully paid-up @ ~ 8
per share.
Pass journal entries to record the above transactions.
(6)
Or A company offered 10,000 shares of~ 10 each_payable as~ 2 on application, ~ 3 on allotment,
3 on first call and t 2 on the final call.
The public applied for 15,000 shares. The shares were allotted on a pro-rata basis to the
applicants of 12 000 sha res. All shareholders paid the allotment money except one
shareholder wh~ was allotted 200 shares. These shares were forfeited. The first call was made
thereafter. The forfeite d shar es were re-issued @ t 9 per share, ~ 8 paid-up. The fmal call was
not yet made. . . . .
1
v ou are require
. d to prepare
· the cash book and pass the Journal entries.
lS N d R 1. s d I OO 000 8% debentures on 10 each aH I 2 on I st April, 20 I 7. The issue
· an f llam Ltd ~bude 1 ' ' s ~f the issue of debentures, interest was payable at the end of the
~f1nanc1al
~as u_ y year.
subscnPasse t .h en_term I entries for the above transactions.
Journa . . (6J

V/ '. e balance sheet of AK, BK an d CK sharing profits in the. ratio of 3 : 4 : 2 stood as follows on
26.h,h
' the date of dissolution Balance Sheet

as at 3 1st December, 2~19

-- - - Amt (~) Assets
Creditors Liab~l~t~e~ - - - 48,000 Machinery ~ITlt (~)
90,000
WOfkmen's Compensation Reserve 54 ,000 1Patents
9,600
Investment Fluctuation Reserve 6,000 Furniture
60,000
Mrs AK's Loan I
30,000 Investments
72,000
Mrs BK's Loan 24,000 Stock-in-trade
1,44,000
AKs Capital Ne 2 ,40,000 CK's Capital Ne .
24 ,000
BK·s Capital Ne 1 ,44,000 p, ofit and Loss Ne
1,08,000
I
Cash
12,000
Bank
26,400
_5,4_6.'~ ~ '
5,46,000
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The following information is given t9 you

(i) AK promised to pay Mrs AK's loan and took stock-in-trade at~ 1,20,000.
r
(ii) BK took half of the investments at~ 42,000 and remaining investments were realised at 120%.
(iii) CK took over machinery at~ 60,000 for cash. ,
(iv) 72,000 had to be paid for workmen's compensation.
(v) Creditors amounting to~ 9,600 were given furniture of the book value off 24,000 in full
set~lement. Remaining creditors were paid at a discount of 10%.
(vi) Remaining furniture was sold at 30% .o f the book value.
(vii) AK was allowed a remuneration of~ 12,000 to carry out dissolution work and he agreed to bear
all expenses of realisation which amounted to 18,000 and were paid by him. Prepare
necessary accounts. {Sl