SINDHI HIGH SCHOOL, HEBBAL

II Pre-Board Examination [2020-21]

Subject: ACCOUNTANCY
Class: XII SET – II Max Marks: 80
Date: 09.02.2021 Time: 3 Hours
General Instructions:
• All Questions are compulsory.
• Marks of each question is indicated against the question.
• All parts of a question should be attempted at one place.
• This Question paper contains 32 Questions & 7 Sides.

1. Tarun and Paul are partners in a firm sharing profits and losses in the ratio of 4:1.
Business Premises in the Balance Sheet is shown as ₹5,00,000. If value of Business
Premises is undervalued by 20%, then at what value will it be shown in the new Balance
Sheet? (1)
(a) ₹ 6,00,000 (b) ₹ 5,50,000 (c) ₹ 6,25,000 (d) ₹3,75,000

2. Queen, Prince and Lovely were partners in a firm sharing profits and losses in the
ratio of 5:4:1. On 10th December 2019, Lovely died. Lovely's share of profits till the date
of her death was calculated at ₹11,234. ___________Account will be credited by
₹11,234. (1)

3. A, B and Care equal partners. C retires. He surrenders ⅗ th of his share in favour of

A and ⅖th in favour of B. The new profit-sharing ratio of A and B will be: (1)
(a) 3:2 (b) 8:7 (c) 1:1 (d) None of these

4. Rajat, Mishi and Tanvi were partners in a firm sharing profits and losses in the ratio
of 5:3:2. Tanvi died on 31st October, 2019. According to the partnership agreement, her
share of profits from the closure of last accounting year till the date of her death was to be
calculated on the basis of aggregate profits of two completed years before death. Profits of
the firm for the years ending 31st March, 2018 and 31st March, 2019 were ₹57,000 and
₹63,000 respectively. The firm closes its books on 31st March every year.
Tanvi's share of profits till the date of her death will be: (1)
(a) 24,000 (b) ₹7,000 (c) ₹14,000 (d) ₹12,000

5. Mohit, Shobhit and Rohit are partners sharing profits and losses in the ratio 2:1:1.
Rohit is guaranteed a profit of ₹14,000. The firm incurred a profit of ₹20,000 during the
year. The amount of deficiency borne by Mohit will be: (1)
(a) ₹6,000 (b) ₹3,000 (c) ₹9,000 (d) ₹5,000

6. Which of the following accounts always show a credit balance? (1)

(a) Fluctuating Capital Accounts
(b) Fixed Capital Accounts
(c) Profit and Loss Appropriation Account
(d) Both (b) and (c)
7. When at the time of admission, a partner brings goodwill in cash, the amount is credited
to which of the following accounts? (1)
(a) Premium for Goodwill Account (b) Old partners' Capital Account
(c) Incoming Partner's Capital Account (d) Cash Account

8. If the forfeited shares are reissued at a discount, the amount of discount must exceed:(1)
(a) the total called-up amount on forfeited shares
(b) the amount received on forfeited shares on their original issue
(c) the amount of share premium on shares, if any
(d) none of the above

9. Income and Expenditure Account records: (1)

(a) Receipts and Payments of Revenue and Capital nature both
(b) Income and Expenditure of Revenue nature only
(c) Expenditure of Capital nature only
(d) Receipts of Revenue nature only

10. At the time of dissolution of partnership firm, when some unrecorded asset is taken
by partner, the journal entry passed would be: (1)
(a) Asset A/c Dr.
To Partner's Capital A/c
(b) Asset A/c Dr.
To Realisation A/c
(c) Partner's Capital A/c Dr.
To Realisation Ac
(d) None of these

11. 600 shares of ₹100 each were forfeited for non-payment of ₹20 per share on first call
and ₹50 per share on final call. Share Forfeited Account will be credited with: (1)
(a) ₹70,000 (b) ₹42,000 (c) ₹18,000 (d) ₹30,000

12. At the time of dissolution, when a creditor amounting to ₹80,000 accepted ₹20,000 in
cash and investments of the book value of ₹65,000 in full settlement of his claim: (1)
(a) Realisation A/c is credited with ₹20,000
(b) Realisation A/c is debited with ₹20,000
(c) Bank A/c is debited with ₹20,000
(d) Bank A/c is credited with ₹80,000

13. M, N and O were partners in a firm sharing profits in the ratio of 5:3:2. From 1st
April, 2021, they decided to share the profits equally. For this purpose, the goodwill of
the firm was valued at 3,60,000. M's Capital A/c will be credited by: (1)
(a) ₹12,000 (b) ₹48,000 (c) ₹60,000 (d) None of these
14. X, Y and Z were partners sharing profits in the ratio of 4:3:2. X dies on 31st August,
2018. The sales and profits for the year on 31st March, 2018 were ₹2,40,000 and ₹30,000
respectively. The sales up to 31st August, 2018 amounted to ₹1,44,000. Calculate X's
share of profit.
An amount of ____________ will be given to X's executors as his share of profits till the
date of death. (1)

15. On the retirement of Hari from the firm of 'Hari, Ram and Sharma' the Balance Sheet
showed a debit balance of ₹12,000 in the Profit and Loss Account. For calculating the
amount payable to Hari, the balance will be transferred: (1)
(a) to the credit of the capital accounts of Hari, Ram and Sharma equally
(b) to the debit of the capital accounts of Hari, Ram and Sharma equally
(c) to the debit of the capital accounts of Ram and Sharma equally
(d) to the credit of the capital accounts of Ram and Sharma equally

16. In the case of retirement, if full or part of the amount payable to the retiring partner
still remains to be paid, and there is no agreement among the partners then retiring partner
will get:
(i) Interest @ 6% p.a. on the Balance amount.
(ii) Share of profit earned proportionate to his amount outstanding to total capital of
the firm.
(iii) Interest @ 9% p.a. on the balance amount.
Which out of the following is correct? (1)
(a) (i) (b) (ii) (c) (iii) (d) Have a choice to get either (i) or (ii)

17. In the absence of provision in the partnership deed, in which ratio is the deficiency
arising out of guarantee of profit to a partner borne by the other partners? (1)
(a) In equal ratio (b) In gaining ratio
(c) in old profit-sharing ratio (d) None of these

18. Pick the odd one out: (1)

(a) Interest on Partner's capital (b) Share of profit of the partner
(c) Drawings made by the partner (d) Salary of the partner

19. Excess value of net assets over purchase consideration at the time of purchase of
business is: (1)
(a) credited to the Capital Reserve (b) debited to the Goodwill Account
(c) credited to the General Reserve Account (d) credited to the Vendor's Account

20. At the time of dissolution of a partnership firm, the book value of sundry assets
transferred to Realisation Account was ₹2,00,000; 50% of these sundry assets were taken
by partner A at 20% discount, 40% of remaining assets were sold at a profit of 30% on
cost. 5% of the balance was found obsolete and realised nothing. The remaining assets
were taken over by a creditor in full settlement of his claim. Realisation Account will be
credited by: (1)
(a) ₹80,000 (b) ₹52,000 (c) ₹1,32,000 (d) ₹1,84,000
21. From the following information, calculate the amount of sports material that will be
debited to the ‘Income and Expenditure Account’ of Bright Sports Club for the year
ended 31st March, 2019. (3)
Particulars 1st April, 2018 31st March, 2019
₹ ₹
Stock of Sports Material 1,10,000 1,50,000
Creditors for Sports Material 25,000 60,000
Advance paid for Sports Material 25,000 70,000
Additional Information:
Cash purchase of sports material during the year was ₹2,50,000;
₹1,50,000 were paid to the creditors of sports material.

22. From the following information, calculate the amount of subscriptions to be credited
to the Income and Expenditure Account of Roshanara Cricket Club for the year ended 31st
March, 2021: (3)
Particulars For the year ended For the year ended
31st March, 2020 31st March, 2021
₹ ₹
Advance Subscription 15,500 21,600
Outstanding Subscription 7,800 25,200
During the year, the club received ₹2,20,000 as subscription which included ₹2,800 for
the year ended 31st March, 2020.

23. You are required to complete the following incomplete journal entries and missing
figures related to forfeiture of shares originally issued at premium: (4)
Journal
Date Particulars L.F. Dr.(₹) Cr.(₹)
Share Capital A/c Dr. 350
____________________ Dr. 250
То __________________________ ___
Το __________________________ ___
(Being 50 shares forfeited for non-payment of allotment money
of ₹9 per share including ₹5 of securities premium per share)
Bank A/c Dr. 600
То __________________________ ___
Το ___________________________ ___
(Being 50 forfeited shares reissued at ₹12 each fully paid-up)
____________________ Dr. ____
То __________________________ ____
(Being profit on reissue of forfeited shares transferred to
capital reserve)
24. Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3:2.
On 31st March, 2020 the firm was dissolved. After the transfer of assets (other than cash
in hand and at bank) and third party liabilities to the Realisation Account, the following
information was provided:
(a) Furniture of ₹70,000 was sold for ₹68,000 by auction and auctioneer's commission
amounted to ₹2,000.
(b) Adiraj's loan amounting to ₹35,000 was paid.
(c) Out of the stock of ₹80,000, Karan took over 50% of the stock at a discount of 20%
while the remaining stock was sold off at a profit of 30% on cost.
(d) A bill receivable of ₹3,000 under discount was dishonoured as the acceptor had
become insolvent and hence the bill had to be met by the firm.
Pass necessary journal entries for the above transactions on the dissolution of the firm.(4)

25. Om Parkash and Som Parkash commenced business in partnership on 1st April, 2020.
No agreement was made either oral or written. They contributed ₹20,000 and ₹15,000
respectively as capital. On 1st October, 2020 Om Parkash advanced to the firm ₹10,000
as loan.
On 15th November, 2020 Om Parkash met with an accident and could not attend the
partnership business up to 15th February, 2021. The firm made a profit of ₹8,300 for
the year ended 31st March, 2021, prior to the following claims, disputes having arisen
between them for sharing profits:
Om Parkash claims:
(i) Interest on capital and on loan @10% p.a.
(ii) Profit sharing in capital ratio.
Som Parkash claims: (i) Profit sharing in equal ratio.
(ii) He should be allowed salary of ₹1,000 p.m. for the period of Om Parkash's illness.
(iii) Interest on capital and on loan should be given only @6% p.a.
You are required to settle the dispute between them and distribute the profits according
to the provisions of the Partnership Act. State reasons for your answer. (4)
26. Xavier and Yami entered into partnership on 1st April, 2019 without any partnership
deed. They introduced capitals of ₹2,50,000 and ₹1,50,000 respectively. On 31st October,
2019, Xavier advanced ₹1,00,000 by way of loan to the firm without any agreement as to
interest. The Profit and Loss Account for the year ended 31st March, 2020 showed a profit
of ₹2,15,000, but the partners could not agree upon the amount of interest on loan to be
charged and the basis of division of profits. Pass a journal entry for the distribution of
the profit between the partners and prepare the Capital Accounts of both the partners
and Loan Account of ‘Xavier’. (4)

27. P, Q and R were partners sharing profits in the ratio of 3: 3:2. The partnership
provided for the following:
(a) Salary of ₹2,000 per quarter to P and Q.
(b) R was entitled to a commission of ₹8,000.
(c) Q was guaranteed a profit of ₹50,000 p.a.
The profit of the firm for the year ended 31st March, 2021 was ₹1,50,000 which
was distributed among P, Q and R in ratio of 2:2:1 without taking into consideration the
provisions of Partnership Deed. Pass necessary rectifying entry for the above adjustments
in the books of the firm. Show your working clearly. (4)

28. (A) Differentiate between ‘Issued Share Capital and Subscribed Share Capital”. (2)
(B) Green Valley Ltd. offered 5,00,000 shares to public for subscription. Applications
were received for 7,50,000 shares and pro rata allotment was made to the applicants of
6,00,000 shares. Arushi applied for 4,800 shares and Navya was allotted 3,000 shares.
From the above information, calculate: (4)
(i) How many applications have been rejected altogether?
(ii) What is the pro rata ratio?
(iii) How many shares were allotted to Arushi?
(iii) How many shares were applied by Navya?

29. From the following Receipts and Payments Account of Successful Kids Club for the
year ended 31st March, 2021, prepare Income and Expenditure Account for the year ended
31st March, 2021: (6)
Receipts and Payments Account
Dr. for the year ended 31st March, 2021 Cr.
Receipts Amount (₹) Payments Amount (₹)
To Balance b/d (Cash in Hand) 1,40,000 By Rent and Taxes 86,100
To Entrance Fees 70,000 By Salaries of Club Staff 85,000
To Subscriptions 2,50,000 By Electricity Charges 9,500
To Donations 1,06,100 By Miscellaneous Expenses 10,300
To Interest on Investments 4,100 By Books 31,200
To Surplus from Cultural 8,200 By Printing and Stationery 45,000
Programme By Investment 1,80,000
By Balance c/d:
Cash at Bank 80,000
Cash in Hand 51,300
5,78,400 5,78,400
Additional Information:
(a) Subscriptions in Arrears on 1st April, 2020 were ₹6,000 & ₹7,000 on 31st March,2021.
(b) ₹18,000 was due by way of Rent in the beginning as well as at the end of the year.
(c) Write off ₹8,000 from Furniture and ₹30,000 from Books.

30. Shivpriya Ltd. was formed with a nominal Share Capital of 350,00,000 divided into
50,000 shares of ₹100 each. The Company offers 30,000 shares to the public payable ₹30
per share on Application, 30 per share on Allotment and the balance on First and Final
Call. Applications were received for 28,000 shares. All money payable on allotment was
duly received, except on 500 shares held by X. First and Final Call was not made by the
Company.
How would you show the “Share Capital' in the Balance Sheet of Shivpriya Ltd.? Also
prepare notes to accounts for the same. (6)
31. G, E and F were partners in a firm sharing profits in the ratio of 7:2:1. The Balance
Sheet of the firm as at 31st March, 2021, was as follows:
Balance Sheet of G, E and F
as at 31st March, 2021
Liabilities Amount (₹) Assets Amount (₹)
Capitals: Cash 90,000
G 1,40,000 Sundry Debtors 24,000
E 40,000 Stock 14,000
F 20,000 2,00,000 Machinery 80,000
Creditors 28,000 Land and Building 1,20,000
General Reserve 40,000
Loan from E 60,000

3,28,000 3,28,000
E retired on the above date. On E's retirement the following was agreed upon:
(i) Land and Building were revalued at ₹1,88,000, Machinery at ₹76,000 and Stock at
₹10,000 and goodwill of the firm was valued at ₹90,000.
(ii) A provision of 2.5% was to be created on debtors for doubtful debts.
(iii) The net amount payable to E was transferred to his loan account to be paid later on.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of
reconstituted firm. (8)

32. Atlantic Ltd. invited applications for issuing 2,40,000 equity shares of 10 each at a
premium of ₹6 per share. The amount was payable as follows:
On application ₹4 per share (including premium ₹1 per share)
On Allotment ₹6 per share (including premium ₹3 per share)
On First and Final Call - Balance.
Applications for 4,80,000 shares were received. Applications for 1,20,000 shares were
rejected and application money refunded. Shares were allotted on pro-rata basis to the
remaining applicants. Excess money received with applications was adjusted towards
sums due on allotment. Mohit holding 1,200 shares failed to pay the allotment money.
His shares were forfeited immediately after allotment. Afterwards the final call was
made. Shastri who had applied for 1,800 shares failed to pay the final call. These shares
were also forfeited. Out of the forfeited shares 1,500 shares were re-issued at ₹8 per
share fully paid up. The re-issued shares included all the forfeited shares of Mohit.
Pass necessary journal entries for the above transactions in the books of Atlantic Ltd. (8)