BLM ACADEMY SR SEC SCHOOL

SESSION 2021-22
PERIODIC TEST II
SUBJECT- ACCOUNTANCY
CLASS XII
SET A (ANSWER KEY)
TIME: 1 Hr. M.M: 20
General Instructions

1. Read the paper carefully and attempt all questions

2. There are 14 questions. All questions are compulsory.
3. Question no. 1 to 10 carry 1 mark each.
4. Question no. 11 to 14 carry 2.5 marks each.

Q1. Unrecorded assets or liabilities are transferred to

(a) Partners' Capital Accounts. (b) Revaluation Account.
(c) Profit and Loss Account. (d) Partners' Current Accounts.
Q2. Anamika and Shiv were partners in a firm. Sneha was admitted as a new partners partner for
1/4th share in the firm. Sneha brought ` 2,00,000 as her capital and ` 1,20,000 as her share for
premium for goodwill. The amount of goodwill premium credited to Anamika will be
(a) ` 40,000. (b) ` 30,000.
(c) ` 72,000. (d) ` 60,000.
Q3. X and Y are partners sharing profits in the ratio of 3 : 2, with capitals as ` 100,000 and ` 50,000
respectively. Z is admitted for 1/5th share in profits. The amount Z will contribute as capital will
be
(a) ` 50,000. (b) ` 35,000.
(c) ` 37,500. (d) ` 60,000.
Q4. In case of retirement of a partner, profit or loss on revaluation of assets and re-assessment of
liabilities is distributed among OLD partners in OLD ratio.

Q5. At the time of retirement, undistributed profits, losses and reserves are distributed among all the
partners in their OLD profit-sharing ratio.

Q6. When the incoming partner brings in his share of the premium for goodwill in cash, it is adjusted
by debiting to
(a) Incoming Partner’s Capital Account (b) A premium for Goodwill Account
(c) Sacrificing Partners’ Capital Account (d) None of the above

Q7. The balance in the WCR, after meeting the claims, at the time of admission of a partner will be
transferred to
(a) The old partners’ capital account (b) The revaluation Account
(c) The General Reserve (d) None of the above

Q8. A,B and C partners sharing profits in the ratio of 3 : 2 : 1, C retired. New Profit sharing ratio will
be
 (a) 1:3 (b) 3 : 2.
(c) 1:1. (d) None of these

Q9. X and Y are partners sharing profits and losses in the ratio of 3 : 2. Z was admitted for the 1/5th
share and for this he brings ` 150,000, as capital. If capitals are to be proportionate to profit-
sharing ratio, the respective capitals of the partners will be

(a) `3,00,000 : `3,00,000 : `1,50,000. (b) `3,60,000 : ` 2,40,000 : ` 1,50,000.

(c) ` 1,50,000 : ` 1,50,000 : ` 1,50,000. (d) ` 1,50,000 : ` 2,00,000 : ` 4,00,000.

Q10. In case of Death of a partner, total amount due to deceased partner is transferred to his
EXECUTOR’S LOAN A/c.

Q11. Pass Journal entry in the following cases:

K, Y & P are partners sharing profits In the ratio 3 : 2 : 1. P retires from the partnership. In order
to settle his claim the following revaluation of assets and liabilities was agreed upon:

i. The value of machinery is increased by `50,000

ii. The value of investment is increased by `4,000
iii. A provision for outstanding bill standing in the books at `2,000 is now not required
iv. The value of land & building is decreased by `24,000
MACHINE A/C DR 50,000
TO REVALUATION A/C 50,000

INVESTMENT A/C DR 4,000

TO REVALUATION A/C 4,000

REVALUATION A/C DR 2000

TO PROVISION FOR OUTSTANDING BILL A/C 20000

REVALUATION A/C 24,000

TO LAND & BUILDING A/C 24,000

REVALUATION A/C Dr 28,000

TO K’S CAPITAL A/C 14,000
TO Y’S CAPITAL A/C 9,333
TO P’S CAPITAL A/C 4,667

Q12. R,M and S are partners in 3:2:1. Their Balance Sheet on 31st March 2020 was as follows:

Liabilities Amount (`) Assets Amount (`)

 Capitals : Building 1,50,000
R 75,000 Debtors 30,000
M 50,000 Stock 50,000
S 25,000 1,50,000 Cash 50,000
Creditors 80,000 Profit & Loss A/c 20,000
Bills Payable 70,000

3,00,000 3,00,000

On 1st April, 2020 S retired on the following terms:

i. Building was to be appreciated by ` 10,000.
ii. A provision of 5% was to be made on debtors for doubtful debts.
iii. Salary outstanding was `4,000.
iv. Goodwill of the firm was valued at `1,20,000.
v. S was paid `5,000 in cash and balance was transferred to his Loan A/c.
Prepare Revaluation A/c, S’s Capital A/c.

PROFIT ON REVALUATION= 4500

Q13. B and S are partners sharing profit and losses in the ratio 5:3. On March 31st 2020, their balance
sheet showed balance in Profit & Loss A/c at ` 1,35,000 and in General Reserve at ` 2,00,000.
On that day they admitted R as a new partner and new profit sharing ratio was agreed at 5:3:2.
Record Journal entries in the books of the firm.

PROFIT & LOSS A/C Dr 1,35,000

TO B’S CAPITAL A/C 84,375
TO S’S CAPITAL A/C 50,625

GENERAL RESERVE A/C Dr 2,00,000

TO B’S CAPITAL A/C 1,25,000
TO S’S CAPITAL A/C 75,000
Q14. Kavita and Deepika are partners sharing profits and losses in 3:2. They admit Gauri as a new
1
partner for 5 share in future profits. At the time of admission of Gauri, goodwill appears in the
books at `60,000 and goodwill of the firm is valued at `2,60,000. Gauri brings `3,00,000 as her
capital and but was unable to bring his share of premium for goodwill. Pass Journal Entries to
record this transaction.
KAVITA’S CAPITAL A/C DR 36,000
DEEPIKA’S CAPITAL A/C DR 24,000
TO GOODWILL A/C 60,000

CASH A/C DR 3,00,000

TO GAURI’S CAPITAL A/C 3,00,000

GAURI’S CURRENT A/C DR 52,000

TO KAVITA’S CAPITAL A/C 31,200
TO DEEPIKA’S CAPITAL A/C 20,800