AJANTA PUBLIC SCHOOL

INTERNAL (ONLINE) ASSESSMENT – I

SESSION 2020-21

CLASS: XII M.M. - 50

SUBJECT&CODE: Accountancy(055) TIME– 1.5hrs

General Instructions:
1. All questions are compulsory.
2. Questions from 1-11 are of 1 mark each,Q12 is of 3 mark ,Q13-16 are of 4 marks each,
Q17& 18 are of 6 marks each & Q19 is of 8 marks.
3. Please write down the serial number of the question before attempting it.
4. All parts of questions should be attempted at one place.
5. Avoid overwriting and cutting.
6. Give clear calculations or working notes wherever required.

Q1 Where is the balance of Revaluation Account transferred or posted?

Q2 Under ____________ method, Goodwill is the excess of capitalized value of business
over actual capital employed.
Q3 If the drawings are made in the end of every month, then the interest of drawings is
calculated for_____________ months.
Q4 Which of the following items are deducted from previous years profits for finding out
adjusted profits for valuation of goodwill?
a) Gain on sale of fixed asset
b) Lottery prize received
c) Overvaluation of closing stock
d) All the above
Q5 Sinha is a partner in a firm. He drew regularly Rs 1,000 at the end of every month for six
months ending 31st march,2020.Calculate Interest of drawings @ 15% p.a.
Q6. Name the method of calculating Interest of drawings of the partners if different amounts
are withdrawn on different dates.
Q7. “Weighted Average profit “ method is followed when :
a) Past profit are same b) Past profits shows an increasing trend
c) Past profit shows a decreasing trend d)Either (b) or (c)
Q8. If average capital employed in a firm is Rs5,00,000,actual profit is Rs 60,000 and normal
rate of return is 10%,then goodwill at three year purchase of super profit is:
a) 10,000 b) 30,000 c) 1,50,000 d)1,80,000
Q9. General Reserve at the time of admission of a partner is transferred to ___________
accounts of __________ partners.
Q10 Under which method of valuation of Goodwill, normal rate of return is not considered:

a) Average Profit method

b) Super Profit method
c) Capitalisation method
d) None of above

Page 1 of 3
Q11. P & Q are partners sharing profits in ratio of 9:5.They agreed to admit R as new partner
for 1/8th share of profit. R acquires his share as 1/12 from P and 1/24 from Q. Calculate new profit
sharing ratio.
Q12. Calculate the interest of drawings of Mr Aditya @8% for the year ended 31st march,2019,in
each of the following alternatives:
a) If he withdrew Rs5,000 in the beginning of each quarter.
b) If he withdrew Rs 6,000 at the end of each quarter.
c) If he withdrew Rs10,000 during the middle of each quarter.
Q13. A & B are partners in a firm sharing profits & losses in ratio of 1:2 with fixed capital
balances of Rs2,00,000 and Rs3,00,000 resp.They decided to admit C as a partner for 1/4th share
in profits.C will bring capital of Rs2,00,000 which will be kept fixed like other partners. Calculate
the goodwill of C and new profit sharing ratio of A:B:C.Also,pass journal entry for goodwill of C
when he is unable to bring his share in cash.

Q14 Garima & Tisha are partners are doing an interior designing business in Delhi ,sharing
profits in the ratio of 2:1 with capitals Rs 5,00,000 and Rs4,00,000.Garima withdrew the
following amounts for her personal expenses:

2019 Amount
st
1 April 10,000
1st June 9,000
st
1 Nov 14,000
st
1 Dec 5,000
Tisha withdrew Rs15,000 on the first day of April, July, October & January to pay rent for the
accommodation of her family.
Calculate Interest on Drawings @ 6% p.a.
Q15 Give journal entries in following cases:
i) To distribute Investment Fluctuation Reserve of 60,000 at the time of admission
of C for ¼ share, when there is fall in value investment by 10,000 . The firm
had two partners A & B sharing profits in 3:2.
ii) The advertisement suspense A/c Rs 25,000 appeared in the books of firm where
P & Q were partners sharing profits in the ratio of 2:3 on the admission of R for
1/6 share.
iii) General reserve Rs 60,000 in a firm with partners E & F with profit sharing
ratio of 3:2.
Q 16.A and B are partners sharing profits & losses in the ratio of 3:2.They admit C as a partner for
1/4th share.For this purpose,the goodwill of the firm has to be valued on the basis of 3 years’
purchase of last 4 years average profits.The profits for the last four years were:

Year Profits
2012 37,000(after charging voluntary retirement compensation of Rs3,000)
2013 44,000(includes lottery income of Rs7,000)
2014 27,000(Loss)
2015 53,000(excludes salary of Rs6,000 to a manager ,now to be paid)
Calculate Goodwill of the firm.

Page 2 of 3
Q17 A business has earned average profits of Rs1,00,000 during the last few years and the
normal rate of return in similar business is 10%.Find out the value of Goodwill by:
i) Capitalisation of super profit method
ii) Super Profit method if the goodwill is valued at 3 years’ purchase of super
profit.
The assets of the business were Rs10,00,000 and its external liabilities is Rs1,80,000.
Q18 Pass the Journal Entries in following cases(With opening Revaluation A/c):

i) The value of Machinery is to be increased by Rs25,000.

ii) Stock is found overvalued by 4,000(Book value of Stock Rs21,000)
iii) A bill of Rs500 of Electricity Charges was omitted to be recorded.Now it is to
entered in books of accounts.
iv) Commission of Rs4,000 are still outstanding.
v) Accrued Income Rs15,000 to be provided for.
vi) Unrecorded Computer of Rs 55,000 now to be recorded in books of accounts.

Q19. X & Y are partners sharing profits in the ratio of 3:2.Their balance sheet as at 31st
march,2019 was as follows:

Liabilities Rs Assets Rs
Sundry creditors 50,000 Cash 10,000
Debtors 40,000
Outstanding Expenses 10,000 Stock 1,00,000
Bills payable 20,000 Machinery 80,000
Capital A/c: Land & Building 1,00,000
X 1,80,000
Y 70,000 2,50,000
3,30,000 3,30,000
They decided to admit Z as a partner for 1/4th share on the following terms:
i) Machinery to be depreciated by 10% and land & building to be
appreciated by 30,000.
ii) A provision of 5% to be created for doubtful debts.
iii) Salary outstanding was Rs5,000.
iv) Stock was overvalued by 20,000.
v) Z brings Rs1,20,000 as capital , and Rs20,000 for his share of
goodwill.

Page 3 of 3