Carmel Convent Sr. Sec.

School
Assessment 2 ( August 2021)
Subject : Accountancy (Set-1)

Class : XII Max. Marks : 20

Date :28-08-2021 Time Allowed : 1 hour

1. Which Analysis is considered as dynamic:
a. Horizontal analysis
b. Vertical analysis
c. Internal analysis
d. External analysis [1]

2.A and B are sharing profits and losses in the ratio of 3:2 They admitted C as a
partner for 1/3rd share in profit .He takes this share 3/5th from A and 2/5th from B .
New profit sharing ratio will be :

a. 5:6:3
b. 2:4:6
c. 6:4:5
d. 18:24:38 [1]

3. When a new partner brings his share of goodwill in cash, the amount is debited to:

a. Goodwill a/c
b. Capital a/c of the new partner
c. Cash a/c
d. Capital a/c of the old partner. [1]

4. Match the following: [1]

i. Sacrificing Ratio A Nominal Account

ii. Gaining Ratio B Reconstitution of Partnership

iii. Revaluation Account C New Ratio – Old Ratio

iv. Admission of a Partner D Old Ratio – New Ratio

a) i- B, ii-C, iii-A, iv-D b) i- D, ii-B, iii-A, iv-C

c) i- D, ii-C, iii-A, iv-B d) i- D, ii-C, iii-B, iv-A

contd…....
5. Assertion: Premium for Goodwill is posted in credit side of partner’s capital a/c.

Reason: It is expenses for old partners.

a. Both Assertion and Reason are correct

b. Assertion is correct but Reason is incorrect
c. Assertion is incorrect but Reason is correct
d. Both Assertion and Reason is incorrect. [1]

6. From financial statement Analysis , the Creditors are interested to know:

a. Liquidity
b. Profit
c. Efficiencies
d. Share capital [1]

7. For whom Analysis of financial statement is not significant.

a. Political advisor of Prime Minister

b. Investor
c. Management
d. Financial institution [1]

8. For Debt to Equity Ratio ,Repayment of long term loan will result in :

a. Increase in ratio
b. Decrease in ratio
c. No change in ratio
d. None of the above. [1]

9. Higher the ratio , lower the profitability , is applicable to:

a. Gross profit ratio

b. Operating ratio
c. Net profit ratio
d. Return on investment ratio [1]

10.Compute Gross profit , If Average Inventory =₹80,000; Inventory Turnover Ratio =

6 times; Selling price = 25% above cost .

a. ₹4,80,000
b. ₹1,30,000
c. ₹1,20,000
d. ₹1,40,000 [1]

Contd………
11. Sushil and Sahil are partners in a firm sharing profits in the ratio 2:3 . Their
Balance sheet as at 31st March ,2020 was as follows:

Liabilities ₹ Assets ₹

Bank overdraft 10,000 Cash 32,000

Salary Outstanding 5,000 Debtors 48,000
Creditors 13,000 Less Provision
General reserve 4,000 For doubtful debts 46,000
Capital Account: (2,000)
Sushil 80,000 ----------- 35,000
Sahil 1,20,000 2,00,000 Stock 21,000
----------------- Prepaid expenses 60,000
Investments 38,000
-------------- Furniture ---------------
2,32,000 2,32,000

On the above date they admitted Sareen as a partner for 1/4th share in the business
which he acquires equally from Sushil and Sahil. Following are the required
adjustments:

a. Sareen will contribute ₹60,000 as his share of capital and ₹30,000 towards
goodwill.
b. Stock is overvalued by ₹5,000.
c. Market value of investments is ₹54,000.
d. Provision for doubtful debts to be maintained at 5% on debtors.

Pass necessary journal entries on Sareen’s admission. [6]

12.Compute i] Gross profit Ratio ii] Working Capital turnover Ratio iii] Debt to Equity
Ratio and iv] Proprietary ratio.

Shareholders fund ₹ 5,00,000; Current Assets ₹ 4,00,000 ; Net Revenue from

operations ₹10,00,000 ; 13% Long term borrowings ₹2,00,000; Current Liabilities
₹2,80,000; Cost of Revenue from Operations ₹6,00,000. [4]

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