RANBIR SINGH MODEL SCHOOL, DARYAPUR

MID TERM EXAMINATION (2025-26)

GRADE XII (COMMERCE)
SUBJECT: ACCOUNTANCY
TIME: 3 HOURS M. MARKS: 80 MARKS
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are
compulsory.
2. Question Nos.1 to 20 carries 1 mark each.
3. Questions Nos. 21 to 26 carry 3 marks each.
4. Questions Nos. from 27 to 29 carry 4 marks each.
5. Questions Nos. from 30 to 34 carry 6 marks each.
6. There is no overall choice. However, an internal choice has been
provided in some questions.
Multiple Choice Questions (1* 20 = 20 marks)
Q1. Sacrificing Ratio is calculated as:
a) Old Ratio – New Ratio
b) New Ratio – Old Ratio
c) Old Ratio + New Ratio
d) New Ratio / Old Ratio
Q2. If partners share profits equally, and a reserve of ₹24,000 is to be
distributed on retirement, how much will each partner get?
 a) ₹8,000 b) ₹12,000 a) To ascertain goodwill
c) ₹24,000 d) ₹6,000 b) To distribute profits among partners
Q3. A firm earns ₹1,80,000 average profits, normal profits ₹1,20,000, c) To close books of accounts on dissolution
goodwill valued at 2 years’ purchase of super-profit. What will be the
amount of Goodwill? d) To adjust revaluation

a) ₹1,60,000 b) ₹1,20,000 Q9. A, B and C share profits in 5:3:2. D is admitted for 1/6th share, which
he gets equally from A and B. What will be A’s new share?
c) ₹60,000 d) ₹40,000
a) 5/12 b) 19/48
Q4. Profit and Loss Appropriation A/c is used to appropriation of net profit
among: c) 9/28 d) 7/12

a) Partners only b) External creditors Q10. When part of retiring partner’s capital is converted into loan, the firm
records:
c) Owners and shareholders d) Company and
partners a) A liability b) An asset

Q5. On death of a partner, his share of profit till the date of death is c) An expense d) A reserve
transferred to:
Q11. Profit & Loss Appropriation A/c is prepared to:
a) Remaining Partners’ A/c b) Executor’s A/c
a) Calculate net profit
c) Realisation A/c d) Reserve A/c
b) Distribute profits among partners
Q6. At dissolution, loan by a partner is settled after:
c) Show liabilities of the firm
a) Distribution of cash among partners b) Outside Liabilities
d) Transfer assets
c) Transfer of reserves d) Realisation
Q12. Capital employed = Assets – ______.
Expenses
a) Drawings b) Reserves
Q7. Issue of shares at a price lower than the face value is called:
c) Liabilities d) Goodwill
a) Issue at Premium b) Issue at Par
Q13. At the time of forfeiture of shares, which account is credited?
c) Issue at Discount d) Bonus Issue
a) Calls in Arrears A/c b) Share Forfeiture
Q8. Realisation A/c is prepared:
A/c
 c) Share Capital A/c d) Bank A/c c) Remaining Partners in new ratio d) All partners in old ratio
Q14. When a partner takes over an asset at dissolution, the account debited Q20. Premium on issue of shares is shown under:
is:
a) Current Liabilities b) Share Capital
a) Bank A/c b) Realisation A/c
c) Reserves & Surplus d) Non-Current Liabilities
c) Partner’s Capital A/c d) Reserve A/c
Q21.X, Y, and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They
Q15. When goodwill is introduced by a new partner in cash, which account decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect
is debited? from 1st April, 2023. They also decide to record the effect of the following
accumulated profits, losses, and reserves without affecting their book values
a) Goodwill A/c b) Premium A/c by passing a single entry. Pass an Adjustment Entry. (3)
c) Cash A/c d) Bank A/c Q22. Prathma, Madhyama and Tritiya were partners in a firm sharing
profits and losses in the ratio of 2 : 2 : 1. On 1st April, 2023, their capital
Q16. At the time of dissolution, if assets are transferred to Realisation A/c,
accounts showed balances of ₹10,00,000, ₹8,00,000 and
the account credited is:
₹6,00,000,respectively. The partnership deed provided for interest on
a) Partners’ Capital A/c b) Profit & Loss A/c capital @ 10% p.a. Show the treatment of interest on capital in the
following cases if :
c) Assets A/c d) Liabilities A/c
(i) During the year ended 31st March, 2024, the firm earned a profit of
Q17. If average profits of a firm are ₹1,50,000 and normal profits are ₹3,00,000.
₹1,00,000, what will super-profit be?
(ii) During the year ended 31st March, 2024, the firm earned a profit of
a) ₹2,50,000 b) ₹50,000 ₹1,20,000.
c) ₹1,00,000 d) ₹25,000 OR
Q18. Which of the following cannot be used for writing off preliminary A and B are partners sharing profits and losses in the proportion of 3:2.
expenses? They agree to admit C into the partnership who is to get 1/5th share in the
business. C brings in ₹1,00,000 for his capital and ₹40,000 for 1/5th share
a) Securities Premium b) Capital Reserve of goodwill which he acquires as 3/20 from A and 1/20 from B. The profit
c) General Reserve d) Revenue Reserve for the first year of the new partnership amounted to ₹2,00,000. Make the
necessary Journal entries in connection with C's admission and apportion
Q19. On retirement of a partner, accumulated profits and reserves are the profit between the partners. Profits distributed are A ₹90,000; B
transferred to: ₹70,000; C ₹40,000.
(3)
a) Revaluation A/c b) Retiring Partner’s A/c
only
Q23. Anant, Gulab and Khushbu were partners in a firm sharing profits in Pass necessary journal entries for the above transactions in the books of KM
the ratio of 5:3:2. From 1.4.2024, they decided to share the profits equally. Ltd. (4)
For the purpose the goodwill of the firm was valued at ₹2,40,000.
Q27. Rohit, Mohit and Sandeep were partners in a firm sharing profits and
Pass necessary journal entry for the treatment of goodwill on change in the losses in the ratio of 5 : 3 : 2. On 1st April, 2020, Rohit retired. On the date
profit-sharing ratio of Anant, Gulab and Khushbu. of retirement ₹6,00,000 were due to him. Mohit and Sandeep agreed to pay
(3) Rohit in four equal yearly instalments plus interest @ 9% p.a. on the unpaid
balance starting from 31st March, 2021. The firm closes its books on 31st
Q24. Abha and Sara were partners in a firm. Their capitals were: Abha March every year.
₹3,00,000 and Sara ₹2,00,000. The normal rate of return in similar business
is 10%. The profits of the firm of Abha and Sara for the last three years Prepare Rohit’s Loan Account till it is fully paid. (4)
were:
Q28. X, Y and Z are partners sharing profits in 4:3:2. Z retires. On that date:
2021-22 ₹ 60,000
● Furniture increased by ₹10,000
2022-23 ₹ 90,000
● Stock decreased by ₹5,000
and 2023-24 ₹ 1,20,000
● Unrecorded liability of ₹6,000 found
Calculate goodwill of the firm on the following basis:
● Goodwill of firm valued at ₹27,000
(i) Four years purchase of the average profits for the last three years. Pass journal entries to record the above and show the calculation of
gaining ratio. (4)
(ii) Capitalisation of super- profits. (3)
Q29. A and B are partners sharing profits in 3:2 ratio. They
Q25. Vijay, Ravi and Raman were partners in a firm sharing profits and admit C for 1/5th share. He brings ₹80,000 as capital and
losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a ₹40,000 as goodwill premium.
new partner for 1/10th share in the profits. It was decided that new profit-
sharing ratio will be 4 : 2 : 3 : 1. On Kamal’s admission, the goodwill of the ● New profit-sharing ratio is 5:3:2
firm was valued at ₹6,00,000. Kamal brought his share of goodwill
premium in cash. ● Goodwill is to be adjusted through sacrificing ratio

(i) Calculate the sacrificing ratio. ● Capital accounts before admission: A = ₹1,20,000; B = ₹80,000.
(a) Pass journal entries for C’s admission.
(ii) Pass necessary journal entries for the treatment of goodwill on Kamal (b) Prepare the Partners’ Capital Accounts after admission. (4)
admission. Show your working notes clearly. (4)
Q30. A and B are partners in a firm with capitals of ₹1,00,000 and ₹80,000
Q26. KM Ltd. acquired assets worth ₹7,20,000 and took over liabilities of respectively. They share profits and losses in the ratio of 3:2. According to
₹2,00,000 of LS Ltd. for a purchase consideration of ₹9,60,000. KM Ltd. the partnership deed:
issued 12% shares of ₹100 each at a premium of 4% in favour of LS Ltd.
for payment of purchase consideration. Interest on capital is to be allowed at 10% p.a.
B is entitled to a salary of ₹12,000 p.a. 600 shares were allotted, failed to pay the allotment money and his shares
were forfeited immediately. Afterwards, the first and final call was made.
The net profit for the year is ₹50,000. Mona, to whom 1,000 shares were allotted, failed to pay the first and final
call. Her shares were also forfeited. Pass necessary journal entries in the
Prepare the Profit and Loss Appropriation Account. (4)
books of Sona Ltd. for the above transactions.
Q31. Radhika Ltd. invited applications for issuing 40,000 equity shares of
Q32. Nithya, Sathya and Mithya were partners sharing profits and losses in
₹100 each at a premium of ₹50 per share. The amount was payable as
the ratio of 5: 3:2 respectively. Their Balance Sheet as at March 31, 2019
follows :
was as follows:
On Application and Allotment - ₹40 per share (including ₹10
premium) Liabilities ₹ Assets ₹

On First call - ₹45 per share (including ₹5 premium) Creditors 14,000 Investments 10,000

On Second and final call - Balance Reserve Fund 6,000 Goodwill 5,000

Applications for 39,000 shares were received. Allotment was made in full Capital Premises 20,000
to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay Accounts:
Patents 6,000
the first call money. His shares were immediately forfeited. The forfeited Nithya 30,000
shares were re-issued thereafter at 70 per share fully paid up. The second Machinery 30,000
and final call was not yet made. Sathya 30,000
80,000 Stock 13,000
Pass necessary journal entries for the above transactions in the books of Mithya 20,000
Radhika Ltd. (6) Debtors 8,000

OR Bank 8,000

Sona Ltd. invited applications for issuing 60,000 equity shares of ₹50 each. 1,00,000 1,00,000
The amount was payable as follows :
Mithya dies on 1-8-2019. The agreement between the executors of Mithya
On Application - ₹20 per share and the partners stated that:

On Allotment - ₹ 25 per share (a) Goodwill of the firm be valued at 2.5 times the average profits of last
four years. The profits of four years ending 31st March were : 2016 Rs
On First and final call - Balance 13,000, 2017 Rs12,000, 2018 Rs16,000 and 2019 Rs15,000.
Applications for 90,000 shares were received. Applications for 10,000 (b) The patents are to be valued at Rs8,000, Machinery at Rs25,000 and
shares were rejected and application money refunded. Shares were allotted Premises Rs25,000.
on pro-rata basis to the remaining applicants. Excess money received with
applications was adjusted towards sums due on allotment. Rahul, to whom
(c) The share of profit of Mithya should be calculated on the basis of the Prepare the following accounts:
profit of 2019.
1. Realisation Account
(d) Rs4,200 should be paid immediately and the balance should be paid in 4 2. Partners’ Capital Accounts
equal half-yearly instalments carrying interest @ 10% p.a. 3. Cash Account (6)
Record the necessary journal entries to give effect to the above and write Q34. A, B and C were partners in a firm sharing profits and losses in the
the executor's account till the amount is fully paid. Also prepare the balance ratio of 4:3:3. Their Balance Sheet as on 31st March, 2025 was as follows:
sheet of Nithya and Sathya as it would appear on 1-8-2019 after giving
effect to the adjustments. (6) Liabilities Amount (₹) Assets Amount (₹)

Q33. A, B, and C were partners sharing profits and losses in the ratio 3:2:1. Sundry Creditors 30,000 Cash 10,000
They decided to dissolve their firm on 31st March, 2025. Their Balance
General Reserve 20,000 Debtors 40,000
Sheet was as follows:
A’s Capital 60,000 Stock 30,000
Balance Sheet as at 31st March, 2025
B’s Capital 50,000 Furniture 20,000
Liabilities Amount (₹) Assets Amount (₹)
C’s Capital 40,000 Machinery 1,00,000
Creditors 40,000 Cash 10,000
Total ₹2,00,000 Total ₹2,00,000
Bills Payable 20,000 Debtors 50,000
A’s Capital 60,000 Stock 30,000
C died on 1st July, 2025. The partnership deed provides the following:
B’s Capital 40,000 Furniture 15,000
i). Goodwill is to be valued at 2 years’ purchase of the average profits
C’s Capital 25,000 Machinery 80,000
of the last 3 years: ₹20,000, ₹30,000 and ₹40,000.
Total ₹1,85,000 Total ₹1,85,000 ii). Revaluation of assets:
iii). Stock to be increased by ₹5,000
Additional Information: iv). Furniture to be depreciated by 10%
v). C’s share of profit till the date of death is to be calculated on the
i). Debtors realised ₹48,000/ basis of last year’s profit (assume last year’s profit is ₹40,000)
ii). Stock was taken over by A at ₹28,000 vi). C’s capital is to be settled by paying ₹10,000 in cash, and the
iii). Furniture was sold for ₹12,000 balance is transferred to his executor’s loan account.
iv). Machinery was sold for ₹70,000
v). Bills Payable were settled at ₹18,000 Prepare the following:
vi). Realisation expenses amounted to ₹2,000
vii). One creditor of ₹5,000 was untraceable, so not paid the remaining 1. Revaluation Account
amount was paid to partners. 2. Partners’ Capital Accounts
3. C’s Executor’s Loan Account (6)