Mount Litera Zee School, Dadri

Session (2024-25)
Term-2 Examination
Grade: - XII Date:-_________
Name: - _____________________ Marks: - 80
Subject: - Accountancy Time:- 3 hr
General Instructions:
1. All questions are compulsory.
2. The question paper consists of 2 sections
Part A: Accounting for Partnership Firms and Companies: (15 questions of 1 mark each . 4 questions of 3 marks , 2
questions of 4 marks each, 4 questions of 6 marks each)
Part B: Analysis of Financial Statements or Computerised Accounting (4 questions of 1 mark each, 2 questions of 3
marks each, 1 question of 4 marks, 1 question of 6 marks)
3. In case of numerical questions, show all calculations and workings clearly.
Objective type questions (1*15=15)
1. In the absence of a partnership deed, how are profits and losses shared among partners?
A) According to their capital ratio B) Equally
C) Based on active contribution D) Based on age
2. Interest on partner's loan is provided at a rate of:
A) 10% per annum B) 8% per annum
C) 6% per annum D) 12% per annum

3. When a partner retires, goodwill is adjusted through:

A) Partners’ Capital Accounts only B) Revaluation Account only

C) Partners’ Capital and Revaluation Accounts D) Goodwill and Revaluation Accounts
4. What is meant by "Fixed Capital Method" in partnership?
A) Capital changes with additional drawings
B) Capital remains the same; profits and drawings affect current accounts
C) Capital fluctuates with business profits
D) Capital increases with interest
5. A minor can be admitted as a partner:
A) Only for profit-sharing B) For both profit and loss sharing
C) Only with unanimous consent D) Only after turning 18
6. The entry to admit a new partner usually involves:
A) Payment of premium for goodwill B) Payment of outstanding dues
C) Drawings adjustment D) Share capital adjustment
7. Ravi and Sanjay are partners with capitals of ₹80,000 and ₹40,000, respectively. In the absence of a partnership deed,
they share profits equally. If the profit for the year is ₹30,000, what is Sanjay's share of profit?
A) ₹10,000 B) ₹15,000
C) ₹20,000 D) ₹5,000
8. If partner A has a capital of ₹1,00,000 and partner B has a capital of ₹50,000, and they share profits in the ratio of
their capitals, what is B’s share if total profits are ₹30,000?
A) ₹10,000 B) ₹15,000
C) ₹5,000
D) ₹20,000
9. X and Y are partners sharing profits in the ratio 3:2 with capitals of ₹60,000 and ₹40,000. Interest on capital is allowed
at 5% p.a. The profit before interest is ₹8,000. What is the interest on capital for Y?
A) ₹2,000 B) ₹1,500
C) ₹1,000 D) ₹1,200
10. A and B are partners with capitals of ₹50,000 each. They admitted C with a capital of ₹30,000 for 1/4th share. What
is the new profit-sharing ratio?
A) 2:2:1 B) 3:3:2
C) 1:1:1 D) 3:2:1
11. If A, B, and C are partners sharing profits in the ratio of 2:3:5, and they make a profit of ₹50,000, what is C’s share?
A) ₹10,000 B) ₹25,000
C) ₹15,000 D) ₹20,000
12. P, Q, and R are partners with capitals of ₹1,20,000, ₹80,000, and ₹40,000, respectively. They share profits in the ratio
of their capitals. If they make a profit of ₹48,000, what is Q’s share?
A) ₹12,000 B) ₹16,000
C) ₹24,000 D) ₹8,000
13. In a partnership firm, goodwill is valued at 3 times the average profit of the last 4 years. If the profits for these years
were ₹50,000, ₹60,000, ₹70,000, and ₹80,000, what is the goodwill?
A) ₹1,50,000 B) ₹2,10,000
C) ₹1,80,000 D) ₹2,40,000
14. If the goodwill of a firm is valued at ₹90,000 and is to be adjusted in the new profit-sharing ratio between the old
partners X and Y in the ratio 2:3, how much goodwill will Y receive?
A) ₹54,000 B) ₹18,000
C) ₹36,000 D) ₹45,000
15. Partners P and Q have capitals of ₹80,000 and ₹1,20,000, respectively, and they agree to share profits in the ratio of
their capitals. If the firm earns ₹50,000 profit, what amount will Q receive as his share?
A) ₹20,000 B) ₹30,000
 C) ₹25,000 D) ₹35,000
Very short questions ,( 3*4=12)
16. A and B are partners sharing profits in the ratio of 3:2. They admit C as a new partner, who brings ₹50,000 as capital
and ₹20,000 as goodwill. The new profit-sharing ratio among A, B, and C is agreed to be 4:3:2. Pass the journal entry to
adjust goodwill in the capital accounts of A and B, assuming they share the goodwill amount.
17. Partners A, B, and C share profits in the ratio of 5:3:2. Partner B decides to retire, and goodwill of the firm is valued
at ₹60,000. The new profit-sharing ratio between A and C is agreed to be 3:2. Pass the necessary journal entry to adjust
for goodwill in the capital accounts of the partners, assuming goodwill is not retained in the books.
18. Partner X passed away on June 30, 2023. According to the partnership agreement, he is entitled to a share of the
profit up to the date of his death based on the average profit of the last three years. The profits for the previous three
years were ₹60,000, ₹80,000, and ₹1,00,000. The profit-sharing ratio between X, Y, and Z is 3:2:1. Calculate X’s share of
profit up to the date of his death, assuming the firm’s accounting year ends on December 31.
19. X, Y, and Z are partners sharing profits and losses in the ratio of 3:2:1. They decide to dissolve their firm. On the date
of dissolution, the firm has the following balances:
Cash: ₹5,000 Sundry assets: ₹50,000
Liabilities: ₹15,000
The sundry assets are realized at ₹45,000, and dissolution expenses amounted to ₹2,000. The liabilities are paid off at
book value. Prepare the necessary accounts to show the distribution of cash on dissolution.
Short answer questions (4*2)
20. A firm’s average profit over the last four years is ₹80,000, and normal profits for similar firms are calculated at a
return of 10% on capital employed. The capital employed by the firm is ₹6,00,000. Calculate the value of goodwill using
the Super Profit Method, assuming goodwill is valued at three times the super profit.
21. X, Y, and Z are partners sharing profits and losses in the ratio of 3:2:1, respectively. Their capital balances as of March
31, 2023, are ₹1,00,000, ₹80,000, and ₹60,000. The partnership deed provides for the following adjustments:
1. Interest on capital at 5% per annum.
2. Salary to Partner Y of ₹12,000 per annum.
3. Interest on drawings: X withdrew ₹10,000, Y withdrew ₹8,000, and Z withdrew ₹6,000. Interest on drawings is to
be charged at 6% per annum.
The firm’s net profit for the year ended March 31, 2023, is ₹50,000. Prepare the Profit and Loss Appropriation Account
for the year ended March 31, 2023.
Long Answer Questions (6*3)
22. A, B, and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet as of March 31,
2024, is as follows:
Liabilities: ₹ Assets: ₹
 Creditors 30,000 Cash 10,000
Capitals: Machinery 60,000
A: 50,000 Stock 40,000
B: 40,000 Debtors 20,000
C: 30,000

The partnership admits D as a new partner for a 1/4 share in the profits of the firm. D brings in ₹50,000 as his capital.
The goodwill of the firm is valued at ₹20,000, which is to be adjusted among the old partners in their old profit-sharing
ratio. The following revaluations are made:
 Stock is to be reduced by ₹5,000.
 Debtors are to be reduced by ₹2,000.
 Machinery is to be revalued at ₹70,000.
Prepare the Revaluation Account, Partners’ Capital Accounts, and Balance Sheet after the admission of D.
23. ABC Ltd. has three partners: A, B, and C. The partnership deed states that upon the death of a partner, his share will
be settled with the help of a Revaluation Account and an Executor's Account.
On 31st March 2024, C, one of the partners, passed away. The following information is available:
Balance Sheet (as of 31st March 2024)
Liabilities ₹ Assets ₹
Creditors 15,000 Land and Buildings 80,000
Capital : Machinery 50,000
A- 50,000 Stock: 30,000
B- 40,000 Debtors 25,000
C- 30,000 1,20,000 Cash 10,000
Revaluation Details:
1. Land and Buildings: Value increased by ₹10,000
2. Machinery: Depreciation of ₹5,000
3. Stock: Increased by ₹2,000
4. Debtors: Decreased by ₹1,000
5. The share of C in the partnership profit: C's share is 1/3rd in the partnership.
6. The remaining partners (A and B) decided to continue the partnership and share profits equally.
Prepare the Revaluation Account to adjust the values of assets and liabilities. Prepare the Deceased Partner's Executor's
Account to determine C's share in the profits, revaluation, and settlement.
24. Discuss the various reasons for the dissolution of a partnership firm.

Part B: Company Accounting

Multiple choice questions (1*5=5)
25. What is the meaning of ‘share capital’?
A. Total assets of the company B. Total liabilities of the company
C. Funds raised by issuing shares D. Company’s profits and reserves
26. What are ‘preference shares’?
A. Shares which have preference in payment of dividends and repayment of capital
B. Shares that have no voting rights
C. Shares issued to employees only
D. Shares that cannot be redeemed
27. Which of the following statements about ‘Authorized Share Capital’ is true?
A. It is the maximum amount of capital a company can issue as per its Memorandum of Association.
B. It is the amount of capital a company has actually issued to shareholders.
C. It is the capital invested by the founders only.
D. It is the capital amount left after paying all liabilities.
28. Which of the following is true about ‘Forfeiture of Shares’?
A. It is the issuance of shares at a discount.
B. It refers to the company’s repurchase of shares.
C. It is the cancellation of shares due to non-payment of calls.
D. It refers to the company issuing bonus shares.
29. What is meant by ‘Issued Share Capital’?
A. Total value of shares offered for public subscription
B. Total value of shares held by company’s directors
C. Total value of shares held by employees
D. Total value of shares redeemed by the company
very short answer questions (3*2=6)
30. The following are the details of ABC Ltd. as at 31st March 2024:
Liabilities ₹ Assets ₹
Share Capital: Fixed Assets:
Equity Share Capital 2,00,000 Land & Building 1,50,000
Preference Share
50,000 Machinery 80,000
Capital
Reserve & Surplus: Current Assets:
General Reserve 30,000 Inventory 70,000
Current Liabilities: Cash in Hand 30,000
Creditors 1,00,000
Total Liabilities 3,80,000 Total Assets 3,80,000
Required:
Prepare the Balance Sheet of ABC Ltd. in proper format as per Schedule III of the Companies Act, 2013.
31. Explain the accounting treatment of share capital in the books of a company. How is it presented in the Balance
Sheet?
Short answer questions (4*1=4)
32. XYZ Ltd. issued 10,000 equity shares of ₹10 each at a premium of ₹2 per share. The amount was payable as follows:
 On Application: ₹4 per share (including premium ₹1 per share)
 On Allotment: ₹4 per share (including premium ₹1 per share)
 On First Call: ₹3 per share (including premium ₹0.5 per share)
 On Second Call: ₹3 per share
Required:
Pass the journal entries for the issue of shares and the receipt of amounts for application, allotment, first call, and
second call.
Long answer questions (6*2=12)
33. Z Ltd. issued 20,000 Equity Shares of Rs.10 each at par payable:
 On application Rs.2 per share;
 on allotment Rs.3 per share;
 on first call Rs.3 per share;
 on second and final call Rs.2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the
following alternative cases:
 Case I If Mr. Gupta failed to pay the allotment money and his shares were forfeited.
 Case II If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares
were forfeited.
 Case III If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his
shares were forfeited
34. Pass Journal entries in the following cases:
a. A Co. issued Rs.40,000; 12% debentures at a premium of 5% redeemable at par?
b. A Co. issued Rs.40,000; 12% debentures at a discount of 10% redeemable at par?
c. A Co. issued Rs.40,000; 12% debentures at par redeemable at 10% premium?
d. A Co. issued Rs.40,000; 12% debentures at a discount of 5% and redeemable at 5% premium?