“NAVODAYA VIDYALAYA SAMITI”

PRE-BOARD Exam 2020-21

CLASS: XII
SUBJECT: ACCOUNTANCY (055)
TIME: 3 Hours Max Marks: 80
General Instructions:
i. This question paper contains two parts –A and B.
ii. Part A is compulsory for all.
iii. Part B has two options – Analysis of Financial Statements and Computerized Accounting.
iv. Attempt only one option of Part -B.
v. All parts of a question should be attempted at one place.
vi. Questions nos. 1 to 13 and 23 to 29 are very short answer type carrying 1 mark.
vii. Questions nos. 14 and 30 are short answer type- 1 carrying 3 marks each.
viii. Questions nos. 15 to 18 and 31 are short answer type-ii carrying 4 marks each.
ix. Questions nos. 19, 20 and 32 are long answer type-1 carrying 6 marks each.
x. Questions nos. 21 and 22 are long answer type-2 carrying 8 marks each.
xi. There is no overall choice. However, an internal choice has been provided in 2 questions of three
marks, 2 questions of four marks and 2 questions of eight marks

PART A- ACCOUNTING FOR NOT FOR PROFIT ORGANISATIONS, PARTNERSHIP FIRMS AND COMPANY
ACCOUNTS

1.Subscription received in advance by a club are shown 1 mark

(a) In the credit side of the income and expenditure account

(b) In the asset side of the balance sheet
(c) In the liabilities side of the balance sheet
(d) None of the above

2. In what situation we make the following journal entry? 1 mark

Old Partners Capital A/c Dr.
To Goodwill A/c
a. To write off the existing book value of Goodwill
b. To Find out the amount due to outgoing partner
c. To Debit the Gainer partners
d. To Calculate the retiring partner’s share of Goodwill

3.In case of undistributed accumulated losses whose account should be debited 1 mark
a. New partner’s A/c
b. Old partner’s Capital A/c
c. Gaining Partner’s A/c
d. Goodwill A/C
4. Premium received on the issue of shares is shown on, 1 mark
a. Equity and liabilities part of the balance sheet
b. Assets part of the balance sheet
c. Credit side of the statement of profit and loss
d. Debit side of the statement of profit and loss

5. An unrecorded asset when realised is credited to, 1 mark

a. Realisation A/c
b. Partners’ capital A/c
c. partner’s current A/c
C. None of the above

6. Shares allotment account is, 1 mark

a. Personal Account
b. Nominal Account
c. Fictitious Account
d. Real Account
7. Choose the necessary journal entry when realisation expenses are borne by a partner and paid by the
firm. 1 mark
The journal entry passed is,
a. Concerned partner’s capital A/c Dr.
To Cash/bank A/c
b. Cash A/c Dr.
To. Concerned partner’s capital A/c
c. Realisation A/c Dr.
To Cash/bank A/c
d. Realisation A/c Dr.
To. Concerned partner’s capital A/c

8. A and B shared profits & loss in the ratio of 2:3. From 1st April 2019, they agreed to distribute profits
equally. The firm goodwill was valued at Rs 30,000. The adjustment entry will be. 1 mark
a) Dr. B and Cr. A with Rs6,000
b) Dr. A and Cr. B with Rs6,000
c) Dr. A and Cr. B with Rs6,00
d) Dr. B and Cr. A with Rs6,00
9. The interest on capital accounts of partners under the fluctuating capital account method is credited
to 1 mark
a) Interest Account
b) Profit and Loss Account
c) Partners’ Capital Accounts
d) None of these
10. X, Y and Z are partners sharing profits in the ratio of 2:2:1. Z retired. The new profit-sharing
ratio between X and Y will be, 1 mark

a. 2:1
b. 1:1
c. 3:1
d. 1:3
11. When a partner dies, the amount of general reserve is transferred to the partners’ capital a/c in,
1 mark
a. New profit sharing ratio
b. Old profit sharing ratio
c. The capital ratio
d.None of the above

12. Ram and Shyam are partners in a firm sharing profits in the ratio of 3:2. They admit Ghanshyam as a
partner. Ram Surrendered 1/4th of his share and Shyam 1/3rd of his share in favor of Ghanshyam. Find
out the new ratio.
1 mark
a. 27:16:17
b. 27:17:15
c. 3:2:1
d. 25:20:15
13. In absence of agreement to contrary, the continuing partners take the share of outgoing partner :
1 mark
a. Equally
b. In old ratio
c. As decided by outgoing partner
d. None of the above

14. On the basis of the information mentioned below, calculated the stationery amount to be debited
to income and expenditure account of a Good Health Sports Club for the year end 31st March 2019.
Stationery purchased as on 31st March 2019 is 4,70,000 3 marks

Particulars 1st April 2018 31st March 2019

Stock of Stationery 80,000 60,000

Creditors for Stationery 90,000 1,10,000

OR
Mention two difference between the receipt and payment account and the cash book. 1.5x2=3 marks

15. Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem Rs 2,00,000; Param Rs
3,00,000 and Priya Rs 5,00,000. They were sharing profits in the ratio of their capitals. The firm was
engaged in the sale of ready-to-eat food packets at three different locations in the city, each being
managed by Prem, Param and Priya. The outlet managed by Prem was doing more business than the
outlets managed by Param and Priya. Prem requested Param and Priya for a higher share in the profits
of the firm which Param and Priya accepted. It was decided that the new profit sharing ratio will be
2:1:2 and its effect will be introduced retrospectively for the last four years. The profits of the last four
years were Rs 2,00,000, Rs 3,50,000, Rs 4,75,000 and Rs 5,25,000 respectively. Showing your
calculations clearly, pass a necessary adjustment entry to give effect to the new agreement between
Prem, Param and Priya. 4marks
OR
Aakriti and Bindu entered into partnership for making garment on April 01, 2016 without any
Partnership agreement. They introduced Capitals of Rs 5,00,000 and Rs 3,00,000 respectively on
October 01, 2016. Aakriti Advanced. Rs 20,000 by way of loan to the firm without any agreement as to
interest. Profit and Loss account for the year ended March 2017 showed profit of Rs 43,000. Partners
could not agree upon the question of interest and the basis of division of profit. You are required to
divide the profits between them giving reason for your solution.

16. A company issued 15,000 fully paid up equity shares of Rs. 100 each for the purchases of the
following assets and liabilities from Gupta Bros.
Plant – Rs. 3,50,000; Stock Rs. 4,50,000
Land and Building Rs. 6,00,000; Sundry Creditors Rs. 1,00,000
Pass necessary Journal entries. 4marks

17. A and B share profits and losses in the ration of 5:2. They have decided to dissolve the firm. Assets
and external liabilities have been transferred to Realisation A/c. Pass the Journal Entries to affect the
following:
a. Bank Loan of Rs. 12,000 is paid off.
b. A was to bear all expenses of Realisation for which he is given to commission of Rs. 400.
c. Deferred Advertisement Expenditure A/c appeared in the book at Rs. 28,000.
d. Stock worth Rs. 1,600 was taken over by B at Rs. 1,200.
e. An unrecorded Computer realized Rs. 7,000.
f. There was an outstanding bill for repairs for Rs. 2,000. Which was paid off. 4marks

18. Praveen, Sahil and Riya are partners having fixed capitals of Rs. 2,00,000, Rs 1,60,000 and Rs
1,20,000 respectively. They share profits m the ratio of 3: 1: 1. The partnership deed provided for the
following which was not recorded in the books.
1. Interest on capital @ 5% per annum.
2. Salary to Praveen Rs 1,500 per month and to Riya Rs 1,000 per month.
3. Transfer of profit to general reserve Rs 10,000. Net profit for the year ended 31 st March, 2015 was Rs
1,00,000.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Also show your
workings clearly.

19. The Treasurer of India Tennis Club presented the following receipts and payments account for the
year ended 31 March, 2013. 6marks
Receipt and Payments Account
for the year ended 31st March, 2013
Receipts Amt (Rs.) Payments Amt (Rs.)
To Cash at bank (Opening) 24,000 By Purchase of balls 4,000
To Subscriptions 10,200 By Refreshments creditors 22,000
To Sales of refreshments 30,500 By Marking and repairing courts 3,800
To Court hire 2,700 By Construction of new court 25,000
To Sales of balls 3,700 By General expenses 3,100
By Cash at bank (Closing) 13,200

71,100 71,100

Additional Information
i. The club's courts were valued at Rs. 60,000 on 1st April, 2012.
Particulars 1st April 2012 (Rs.) 31st March 2013 (Rs.)

Tennis balls on hand (at cost) 400 900

Creditors for refreshments 4,000 3,000
Subscriptions outstanding 2,000 3,500

Prepare an income and expenditure account for the year ended 31st March, 2013 6marks
20. 3+3=6marks
A. On 1st April, 2012, Vishwas Ltd was formed with an authorised capital of Rs. 10,00,000 divided
into 1,00,000 equity shares of Rs. 10 each. The company issued prospectus inviting applications for
90,000 equity shares. The company received applications for 85,000 equity shares. During the first year,
Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the
first call of Rs. 2 per share. Shyam’s shares were forfeited after the first call and later on 1,500 of the
forfeited shares were reissued at Rs. 6 per share, Rs. 8 called up. Show the following
i. Share capital in the balance sheet of the company as per Revised Schedule III Part I of the Companies
Act, 2013.
ii. Also prepare ‘notes to accounts’ for the same.

B. Star Ltd. Issued Rs 80,000, 11% Debentures of Rs 100 each. Pass the journal entries in the books of
the company for the issue of debentures when debentures were:
i. Issued at par and redeemed at a premium of 6%.
ii. Issued at a premium of 5% and redeemable at a premium of 8%.
iii. Issued at 10% discount, redeemable at par.

21. B and C were partners sharing profits in the ratio of 3: 2. Their balance sheet as on 31st March, 2019
was as follows : 8marks
Balance Sheet
as at 31st March, 2019
Liabilities Amt(Rs) Assets Amt(Rs)

Provision for Bad Debts 1,000 Land and Building 80,000

Creditors 60,000 Machinery 20,000
Capital A/cs Furniture 10,000
B 60,000 Debtors 25,000
C 40,000 Cash 16,000
1,00,00 Profit and Loss A/c 10,000
0

1,61,00 1,61,000
0
D was admitted to the partnership for l/5 th share in the profits on the following terms
i. The new profit-sharing ratio was decided as 2: 2: 1.
ii. D will bring Rs 30,000 as his capital and Rs 15,000 for his share of goodwill.
iii. Half of goodwill amount was withdrawn by the partner who sacrificed his share of profit in favour of
D.
iv. A provision of 5% for bad and doubtful debt was to be maintained.
V. An item of Rs 500 included in sundry creditors was not likely to be paid.
Vi. A provision of Rs 800 was to be made for claims for damages against the firm.
Prepare revaluation account, capital accounts of the partners and the balance sheet of the new firm.
OR
The Balance Sheet of A, B and C on 31st December 2007 was as under:
BALANCE SHEET
as at 31.12.2007
Liabilities Amt(Rs) Assets Amt(Rs)

A’s Capital 400,00 Buildings 20,000

B’s Capital 30,000 Motor Car 18,000
C’s Capital 20,000 Stock 20,000
General Reserve 17,000 Investments 1,20,000
Sundry Creditors 1,23,000 Debtors 40,000
Patents 12,000

2,30,000 2,30,000

The partners share profits in the ratio of 8 : 4 : 5. C retires from the firm on the same date
subject to the following term S and conditions:
i) 20% of the General Reserve is to remain’ as a reserve for bad and doubtful debts. ;
ii) Motor Car is to be decreased by 5%.
iii) Stock is to be revalued at Rs.17, 500.
iv) Goodwill is valued at’ 2 ½ years purchase of the average profits of last 3 years.
Profits were; 2001: Rs.11,000; 2002: Rs. 16,000 and 2003: Rs.24,000.
C. was paid in July A and B borrowed the necessary amount from the Bank on the security of
Motor Car and stock to payoff C.
Prepare Revaluation Account, Capital Accounts and Balance Sheet of A and B.

22. B Ltd. Invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The amount was
payable as follows: On Application Rs.3 per share; On allotment Rs.2 per share; and on 1st and final call
Rs.5 per share.
Applications for 1,50,000 shares were received and prorata allotment was made to all applicants as
follows:
Application for 80,000 shares were allotted 60,000 shares on pro-rata basis ;
Application for 70,000 shares were allotted 40,000 shares on pro-rata basis;
Sudha to whom 600 shares were allotted out of the group 80,000 shares failed to pay allotment money.
Her shares were forfeited immediately after allotment. Asha who had applied for 1,400 share out of the
group 70,000 shares failed to pay the first and final call.Her shares were also forfeited. Out of forfeited
shares 1,000 shares were reissued @ Rs.8 per share fully paid up The reissued shares included all the
forfeited shares of Sudha. Pass necessary journal entries to record the above transaction.
8marks
OR
Alpha Ltd issued for public subscription 40,000 equity shares of Rs. 10 each. At a premium of Rs. 2 per
share payable as under:
On application Rs. 2 per share, on allotment Rs. 5 per share (including premium), on first call Rs. 2 per
share and on second call Rs. 3 per share.
Applications were received for 60,000 shares. Allotment was made pro rata basis to the applicants for
48000 shares, the remaining applications being refused. Money overpaid on application was applied
towards sums due on allotment.
A, to whom 1,600 shares were allotted, failed to pay the allotment money and B, to whom 2,000 shares
were allotted failed to pay the two calls. These were subsequently forfeited after the second call was
made. Pass journal entries.

Part-B
(Analysis of Financial Statements)
23. If net profit is 50,000 after writing off goodwill 10,000 then the cash flow from operating activities
will be: 1MARK
(a) Rs 60,000
(b) Rs 40,000
(c) Rs 50,000
(d) Rs 30,000
24. Working Capital is the : 1MARK
(a) Cash and Bank Balance
(b) Capital borrowed from the Banks
(c) Difference between Current Assets and Current Liabilities
(d) Difference between Current Assets and Fixed Assets
25 Patents and Copyrights fall under the category of: 1MARK
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of Above
26. Which of the following transactions will improve the quick ratio? 1MARK
(a) Sale of goods for cash
(b) Sale of goods on credit
(c) Issue of new shares for cash
(d) All of the Above
27. How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?
(a) Cash Flow from Operating Activities 1MARK
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) In Operating and Financing Activity both
28. Redemption of Debentures/Preference shares results into: 1MARK
(a) Source of fund
(b) Use Or application of fund
(c) No flow of fund
(d) No flow of cash
29. A Company’s Current Assets are Rs8,00,000 and its current liabilities are Rs4,00,000. Subsequently,
it purchased goods for Rs1,00,000 on credit. Current ratio will be 1MARK
(A) 2 : 1
(B) 2.25 : 1
(C) 1.8 : 1
(D) 1.6 : 1
30. Current Ratio is 3.5:1. Working Capital is Rs 90,000. Calculate the amount of Current Assets and
Current Liabilities. 3marks
OR
Compute Stock Turnover Ratio from the following information:

Rs

Net Revenue from Operations 2,00,000

Gross Profit 50,000

Inventory at the end 60,000

Excess of inventory at the end over inventory in the beginning 20,000

31.
Prepare Comparative Income Statement from the following information: 4marks

Particulars 31.03.2020 31.03.2019

Rs. Rs.

Revenue from Operations 30,00,000 20,00,000

Expenses 21,00,000 12,00,000

Other Income 3,60,000 4,00,000

Tax Rate – 50%

OR
Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:

Particulars Aditya Ltd. Anjali Ltd.

Rs. Rs.

I. Equity and Liabilities

a) Equity share capital 6,00,000 8,00,000

b) Reserves and surplus 3,00,000 2,50,000

c) Current liabilities 1,00,000 1,50,000

Total 10,00,000 12,00,000

II. Assets

a) Fixed assets 4,00,000 7,00,000

b) Current assets 6,00,000 5,00,000

Total 10,00,000 12,00,000

*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10, 00,000.
32.
Following is the Financial Statement of Garima Ltd., prepare cash flow statement. 6 MARK

Particulars Note No. 31st March 31st March

2017 2016
(Rs) (Rs)

I) Equity and Liabilities

1. Shareholders’ Funds

a) Share capital 1 4,40,000 2,80,000

b) Reserve and surplus-Surplus 2 40,000 28,000

2. Current Liabilities

a) Trade payables 1,56,000 56,000

c) Short-term provisions 12,000 4,000

(Provision for taxation)

Total 6,48,000 3,68,000

II) Assets

1. Non-current assets
a) Fixed assets

i) Tangible 3,64,000 2,00,000

2. Current assets

a) Inventories 1,60,000 60,000

b) Trade receivables 80,000 20,000

c) Cash and cash equivalents 28,000 80,000

d) Other current assets 16,000 8,000

Total 6,48,000 3,68,000

Notes to Accounts

Particulars 31st March 31st March

2017 2016
(Rs) (Rs)

1. Share capital

a) Equity share capital 3,00,000 2,00,000

b) Preference share capital 1,40,000 80,000

4,40,000 2,80,000

2. Reserve and surplus

Surplus in statement of profit and loss at the beginning of the year 28,000

Add: Profit of the year 16,000

Less: Dividend 4,000

Profit at the end of the year 40,000

Additional Information:

1. Interest paid on Debenture Rs 600

2. Dividend paid during the year Rs 4,000

3. Depreciation charged during the year Rs 32,000