KENDRIYA VIDYALAYA SANGATHAN

COMMON PRE-BOARD EXAMINATION

CHANDIGARH REGION
CLASS – XII
ACCOUNTANCY

TIME ALLOWED: 3 HOURS MAXIMUM MARKS: 80

GENERAL INSTRUCTIONS:
1. This question paper contains two parts A & B.
2. Both the parts are compulsory for all.
3.All parts of a question should be attempted at one place.

PART A: Accounting for Partnership Firms and Companies

1. Which of the following items can’t be recorded in the Profit and Loss Appropriation A/C: 1
a) Interest in capital
b)Rent paid to partners
c) Interest on drawings
d)Partner’s Salary

2 On the basis of the following data, how much final payment will be made to a partner on firm’s 1
dissolution? Credit balance of capital account of the partner was 50,000. Share of loss on realization
amounted to `10,000. Firm’s liability taken over by him was for `8,000.
a. 32,000
b. 48,000
c. 40,000
d. 52,000

3 Share Application A/C is in the nature of : 1

(a) Real Account
(b) personal Account
(c) Nominal Account
(d) None of the above

1
4 Asset taken over by a partner at the time of dissolution of a firm should be : 1
(a) Credited to Realization Account
(b) Credited to Partner’s Capital Account
(c) Debited to Realization Account
(d) None of the above
5 ‘Subscription Received in advance’ during the current year by a Not for profit organization is : 1
(a) Asset
(b) Expense
(c) Liability
(d) Revenue
6 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new 1
partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C.
new profit sharing ratio of A, B, C and D will be :
(a) 24:13:5:6
(b) 24:13:6:5
(c) 24:6:13:5
(d) 24:5:13:6

7 2,000 shares of rupees 10 on which Rs. 7 has been called and Rs. 5 has been paid are forfeited. out of 1
these 1500 shares are issued for Rs.9 as fully paid. what is the amount to be transferred to Capital
Reserve account?
(a)Rs. 6000
(b)Rs.7500
(c)Rs. 10000
(d)Rs. 8500

8 The total capital of the firm of Sakshi, Mehak and Megha is Rs.1,00,000 and the market rate of 1
interest is 15%. The net profits for the last 3 years were Rs.30,000; Rs.36,000 and Rs.42,000.
Goodwill is to be valued at 2 years purchase of the last 3 years’ super profits. Goodwill of the firm
will be:
(a) 21,000
(b) 42,000
(c) 72,000
(d) 84,000

9 Retirement or death of a partner will create a situation for the continuing partners, which is known as 1
‘Dissolution of ---------------------.

2
10 E, F and G are partners sharing profits in the ratio of 3:3:2. As per the partnership agreement, G is to 1
get a minimum amount of `80,000 as his share of profits every year and any deficiency on this
account is to be personally borne by E. The net profit for the year ended 31st March 2020 amounted
to 3,12 ,000. Calculate the amount of deficiency to be borne by E?
a. 1,000
b. 4,000
c. 8,000
d. 2,000
11 Under which of the following circumstance, balance of fixed capital of partners may change. 1

a. Interest on capital provided to partners

b. Additional capital introduced by partners
c. Interest on drawings charged from partners
d. All of the above

12 The relation of a partner with the firm is that of: 1

(a) An Owner
(b) An Agent
(c) An agent and An Owner
(d) Manager

13 A, B and C are partners. C expired on 18th December 2019 and as per agreement surviving partners 1
A and B directed the accountant to prepare financial statements as on 18th December 2019 and
accordingly the share of profits of C (deceased partner) was calculated as `12,00,000. Which account
will be debited to transfer C’s share of profits:
a. Profit and Loss Suspense Account.
b. Profit and loss Appropriation Account.
c. Profit and loss Account.
d. None of the above.

14 From the following information, calculate the amount to be charged to Income and Expenditure 3
Account for 'Sports material consumed' for the year 2019-20.
Particulars Amount
Stock of Sports material (01-04-2019) 60000
Amount paid to creditors (during 2019-20) 3,00,000
Creditors for Sports Materials (01-04-2019) 1,00,000
Creditors for Sports Materials (31-03-2020) 80000
Sports Material sold During the year (Book Value Rs.35,000) 15000
Cash Purchases of Sports Material (During the Year 2019-20) 1,30,000
There was zero stock at the end of financial year 2019-20.

3
 Or
Calculate the amount of Subscription to be credited to Income and Expenditure account for the year
2019-20.
Particulars Amount (`)
Amount received during the year
(including 20,000 for 2018-19 , 30,000 for 2020-21 and 10,000 for 2021-22) 7,80,000
Subscription received in advance as on 01-04-2019
(including 15,000 for 2020-21) 35000
Subscription in arrears as on 01-04-2019 40000
Subscription in arrears as on 31-03-2020 50000
Out of subscription in arrears on 01-04-2019, 15,000 are no longer recoverable

15 Fill the missing figure 4

Date Particular L.F. Dr. (Rs,) Cr. (Rs.)
Sundry assets A/c Dr. 10,00,000
……………. Dr. …………
To sundry liabilities A/c 1,90,000
To Ram Ltd. 8,40,000

(……………………………………….) …………
………………….. Dr. …………
To 8% preference shares A/c ..……….
To ………………

Issue of …… shares of Rs. 100 each at

5 % premium)
16 L and M were partners in a firm sharing profits in the ratio of 2:3. On 28-2-2016 the firm was 4
dissolved. After transferring assets (other than cash) and outsider’s liabilities to Realization account
you are given the following information:
a) A creditor for Rs 1, 40,000 accepted building valued at Rs 1, 80,000 and paid to the Firm Rs
40,000.
b) A second creditor for Rs 30,000 accepted machinery valued at Rs 28,000 in full settlement of his

4
 claim.
c) A third creditor amounting to Rs 70,000 accepted Rs 30,000 in cash and investments of the book
value of Rs 45,000 in full settlement of his claim.
d) Loss on dissolution was Rs 4,000.
Pass necessary journal entries for the above transactions in the books of the firm assuming that all
payments were made by cheque.

17 A, B and C are partners in a firm sharing profits in the ratio of 5:3:2, whose books are closed every 4
year on 31stMarch. They are producing goods that can be purchased by low income group. They
decided to change their profit-sharing ratio in 2:3:5, w.e.f. 1st April. They decided to record the
effect of the following without affecting book figures.
General Reserve Rs.50,000
Contingencies Reserve Rs. 5,000
Profit and Loss A/c. (Dr.) Rs.10,000
Advertisement Suspense Rs.15,000
Pass the necessary journal entry.
18 L, M and N are partners in a firm sharing profits & losses in the ratio of 2:3:5. 4
On April 1, 2016 their fixed capitals were Rs.2,00,000, Rs.3,00,000 and Rs.4,00,000 respectively.
Their partnership deed provided for the following:
(i) Interest on capital @ 9% per annum.
(ii) Interest on Drawings @ 12% per annum.
(iii) Interest on partners’ loan @ 12% per annum.
On July 1, 2016, L brought Rs.1,00,000 as additional capital and N withdrew Rs.1,00,000 from his
capital. During the year L, M and N withdrew Rs.12,000, Rs.18,000 and Rs.24,000 respectively for
their personal use. On January 1, 2017 the firm obtained a loan of Rs.1,50,000 from M. The net profit
of the firm for the year ended March 31, 2017 after charging interest on M’s loan was Rs.85,000.
Prepare Profit & Loss Appropriation Account.
OR
Rohit, Raman and Raina are partners in a firm. Their capital accounts on 1st April 2019, stood at 2,00,000,
1,20,000 and 1,60,000 respectively. Each partner withdrew 15,000 during the financial year 2019-20. As per
the provisions of their partnership deed:
(a) Interest on capital was to be allowed @ 5% per annum.

5
 (b) Interest on drawings was to be charged @ 4% per annum.
(c) Profits and losses were to be shared in the ratio 5:4:1.
The net profit of `72,000 for the year ended 31st March 2020, was divided equally amongst the partners
without providing for the terms of the deed.
You are required to pass a single adjustment entry to rectify the error (Show workings clearly).
19 On 01/04/2018 J.K. Ltd. issued 8,000, 9% debentures of Rs1, 000 each at a discount of 6%, 6
redeemable at a premium of 5% after three years. The company closes its books on 31st march every
year. Interest on 9% debentures is payable on 30th September and 31st March every year.
Pass necessary journal entries for the issue of debentures and debenture interest for the year ended
31/03/2019

Or
Pass journal entries for issue of Debentures:
a) A Ltd issues Rs 3, 00,000 9% Debentures of Rs 100 each at 10% discount to be redeemed at
20% premium.
b) B Ltd issues 1000 9% Debentures of Rs 500 each at 550 to be redeemed at Rs 600

20 Following is the summary of cash transactions of Indian Youth Club for the year ended 31st March, 6
2018. Prepare Income and Expenditure Account for the year ended 31 st March,2018 and also Balance
Sheet as at that date:
Dr Receipts and Payments Account Cr
Receipts Amount Payments Amount
Cash in hand 1,41,300 Rent and Taxes 86,100
Entrance fees 55,200 Salaries 1,09,000
Subscriptions 2,20,000 Electric charges 6,200
Donations 1,06,100 General expenses 12,500
Interest 4,100 Books 31,200
Profit from cultural event 8,200 Office expenses 45,000
Investments 1,40,000
Cash at bank 61,900
Cash in hand 43,000

6
 --------------- --------------
5,34,900 5,34,900
Additional Information:
a) In the beginning of the year, the club had Books worth Rs. 3,00,000 and furniture Rs.58,000
b) Subscription in arrears on 1st April,2017 were Rs.6000 and Rs. 7000 on 31st March,2018
c) Write off Rs. 5,000 from furniture and Rs. 30,000 from books.
Rs.18, 000 was due by way of Rent in the beginning as well as at the end of the year.

21 SupriyaLtd. issued a prospectus inviting applications for 5,00,000 equity shares of Rs10 each issued 8
at a premium of 10% payable as: 3 on Application , 5 on Allotment (including premium)
and `3 on call. Applications were received for 6, 60,000 shares. Allotment was made as follows:
(a) Applicants of 4, 00,000 shares were allotted in full.
(b) Applicants of 2, 00,000 shares were allotted 50% on pro rata basis.
(c) Applicants of 60,000 shares were issued letters of regret.
A shareholder to whom 500 shares were allotted under category (a) paid full amount on shares
allotted to him along with allotment money. Another shareholder to whom 1,000 shares were allotted
under category (b) failed to pay the amount due on allotment. His shares were immediately forfeited.
These shares were then reissued at `14 per share as `7 paid up. Call has not yet been made.
Journalise.

OR

(8)
Sukriti Ltd. was registered with a share capital of Rs.4, 00,000 divided into equity shares of Rs. 100
each. It issued 2,000 of such shares payable Rs. 25 on application; Rs. 25 on allotment; Rs.20 on first
call and the balance as and when required.
All money payable on application and allotment were duly received; but when the first call of Rs.20

7
 per share was made, one shareholder holding 100 shares failed to pay the amount due and another
shareholder holding 200 shares paid them in full.
Record these transactions in the Journal and also show the Share Capital in the Balance sheet of Star
Ltd.

22 A, B and C were partners in a firm sharing profits in the ratio of 5: 3: 2.On 31-3-2019 their Balance 8
Sheet was as follows:
Balance Sheet of A, B and C as on 31-3-2019
Liabilities Amt. (Rs.) Assets Amt.
(Rs.)
Creditors 63,000 Land & Building 1,86,000
Investment Fluctuation Fund 30,000 Motor Van 60,000
Profit & Loss A/c. 1,20,000 Investment 57,000
Capitals: 3,30,000 Debtors: 1,20,000
A : Rs.1,50,000 Less: Prov. For doubtful
B : Rs.1,20,000 Debts 9,000 1,11,000
C : Rs.60,000
Stock 45,000
Cash 48,000
Machinery 36,000
5,43,000 5,43,000
On the above date B retired and A and C agreed to continue the business on the following
terms:
(1) Goodwill of the firm was valued at Rs 2, 00,000.
(2) Provision for bad debts was to be reduced by Rs 3,000.
(3) There was a claim of Rs 12,000 for workmen compensation.
(4) Motor Van was valued at Rs. 1,00,000
(5) Investment was valued at Rs. 45,000.
(6) Stock was valued at Rs. 40,000.
(7) B will be paid Rs 24,600 in cash and the balance will be transferred to his loan account.
Prepare Revaluation Account, Partners’ Capital Accounts.
OR

8
 The Balance Sheet of Rajkumar and Rajendra Kumar as on 31st March 2012 is set out
below, they share profits and losses in the ratio of 2:1.
Balance Sheet as on 31st March, 2012

Amount Amount
Liabilities Assets
Rs Rs
Capital A/c’s - Rajkumar 2,00,000 Buildings 1,00,000
Rajendra Kumar 1,50,000 Furniture 30,000
General Reserve 1,20,000 Stock 60,000
Creditors 80,000 Debtors 3,00,000
Cash 30,000
Profit and Loss A/c 30,000
5,50,000 5,50,000

They agreed to admit Dhiraj Kumar on 1st April 2012 as a partner into the firm on the following
terms on.

(1) Dhiraj Kumar to bring Rs 60,000 as capital and Rs 45,000 as a goodwill, which is to be
retained in the business. He will be entitled to 1/4th share of profit of the firm.

(2) 50% of General Reserve is to remain as Reserve for doubtful debts.

(3) Furniture is to be depreciated by 5%.

(4) Stock is to be revalued at Rs 65,000/-

(5) Creditors of Rs 5,000 are not likely to claim and hence should be written off.

(6) Rent of Rs 2,000 due but not received has not been recorded in the books.

Pass the necessary journal entries in the books of new firm

PART B: Analysis of Financial Statements

23 Which of the following is not an investing cash flow? 1

A. Purchase of marketable securities for 25,000 cash.
B. Sale of land for 28,000 cash.
C. Sale of 2,500 shares (held as investment) for 15 each.
D. Purchase of equipment for 500 cash

9
24 The ___________ may indicate that the firm is experiencing stock outs and lost sales. 1
a. Average payment period
b. Inventory turnover ratio
c. Average collection period
d. Quick ratio
25 What will be the Current ratio of a company whose Net Working Capital is Zero? 1
26 Balance Sheet of a company is required to be prepared in the format given in 1
the____________________ .
27 Payment of income tax is shown as: 1
a) Operating Activity.
b) Investing Activity.
c) Financing Activity.
d) None of these
28 Current ratio of Vidur Pvt. Ltd. is 3:2. Accountant wants to maintain it at 2:1. Following options are 1
available. (i) He can repay Bills Payable (ii) He can purchase goods on credit (iii) He can take short
term loan
Choose the correct option
(a) Only (i) is correct
(b) Only (ii) is correct
(c) Only (i) and (iii) are correct
(d) Only (ii) and (iii) are correct
1
29 State the respective heads and sub-heads of the following items which will appear in the Balance 1
Sheet of a company:
(1) Securities Premium Reserve
(2) Debentures
30 Find the value of current assets and current liabilities, if the Current Ratio of a company is 2.5:1 and 3
liquid ratio is 1.2:1. Value of inventory is Rs. 78,000.
OR
a) From the following, Calculate ROI:
Equity share capital Rs. 3,00,000

10
 Reserve & Surplus Rs. 1,54,000
Profit after interest and tax Rs. 1,20,000
9% Debentures Rs. 2,00,000

Tax Rate 40%.

31 Pratibha Publishing and Paper Works Ltd. is in the business of publishing school books. With the 4
help of following information obtained from the books of the company, prepare Comparative Income
Statement for the years ended 31st March 2018 and 2019.
Particulars 31.3.2019 31.03.2018
Revenue from Operations 300% of cost of material 200% of cost of material
consumed consumed
Cost of material consumed 12,00,000 10,00,000
Other expenses 20% of cost of material 10% of cost of material
consumed consumed
Tax 50% 50%
OR

Prepare a complete Common Size statement from the following information of Pragatisheel
Stationers Ltd for.

Particulars Absolute Amounts Percentage of

(Rs.) Revenue from operations
X Ltd. Y Ltd. X Ltd. Y Ltd.
(Rs.) (Rs.) 2018 2018 (%) 2018 (%)
2018
1.Revenue from 2,500,000 20,00,000 100 100
operations Add: 2. Other
Income ……… 2,00,000 12 ……
…….

3. Total Revenue 28,00,000 ………… 112 ……

(1+2) ……

4. (Expenses) Other
Expenses ……… ………… …… 40
……. ……
Profit before tax (3- ……… 14,00,000 88 …..
4) …….

11
 Less: Income Tax …… …………. ….. ……
50%

Profit after tax ……………. 7,00,000 …… ……

32 Prepare a Cash Flow Statement from the following Balance Sheet: 6

Particulars Note 31.03.2019 31.03.2018

No. Amt.(Rs.) Amt.(Rs.)
I. Equity and Liabilities:
(1) Shareholders’ Funds:
(a) Share Capital 6,00,000 5,00,000
(b) Reserves and Surplus 1 4,00,000 2,00,000
(2) Current Liabilities:
Trade Payables 2,80,000 1,80,000

Total 12,80,000 8,80,000

II. Assets:
(1) Non-current Assets:
(a) Fixed Assets:
Plant and Machinery 5,00,000 3,00,000

(II) Current Assets:

1,00,000 1,50,000
(a) Inventories
6,00,000 4,00,000
(b) Trade Receivables
80,000 30,000
(c)Cash and Cash Equivalents
Total 12,80,000 8,80,000

12
Notes to Accounts:
Particulars 31.03.2019 31.03.2018
Amt. (Rs.) Amt.(Rs.)
1. Reserves and Surplus
Surplus (Balance in Statement of Profit & Loss) 4,00,000 2,00,000

Additional Information:
i. An old machinery having book value of Rs.50, 000 was sold for Rs.60, 000.
ii Depreciation provided on machinery during the year was Rs.30, 000.

--------------END OF PAPER--------------

13