ANSWERS

SAMPLE QUESTION PAPER 6

22. (b) None of the above
1. (b) B
23. (a) Only D
2. (b) ` 3,000 24. (b) ` 2,50,000
1
Hint: Y’s share in profit = 6,000 × =  ` 3,000 Hint: Goodwill = 6,00,000 - (5,00,000 - 1,50,000)
2
3. (b) Partners’ Current Accounts = 6,00,000 - 3,50,000 = ` 2,50,000
4. (c) no treatment 25. (a) Both (A) and (R) are true and (R) is the correct
5. (a) ` 375 explanation of (A).
Hint: Interest on Drawings 26. (a) Bank A/c Dr. 5,00,000
2.5 10 To A’s Capital A/c 3,00,000
= (3,000 × 6) × × = ` 375
12 100 To B’s Capital A/c 2,00,000
6. (d) capital reserve is credited with the credit balance 27. (a) Revaluation account is debited by ` 12,000
left in the forfeited shares account. 28. (c) ` 30,000
7. (b) zero
Hint: Normal Profit = 5,00,000 × 10% = ` 50,000
8. (c) 2 : 1
Hint:   Super Profit = 60,000 - 50,000 = ` 10,000
Shares Applied : Shares Allotted Goodwill = 10,000 × 3 = ` 30,000
20,000 : 10,000 Total Amount Forfeited
29. (a)
2 : 1 Number of Share Forfeited
9. (b) Sacrificing Partner’s Capital A/cs 30. (c) (A) is true but (R) is false.
10. (a) Only B 31. (c) 25%
11. (a) sacrificing ratio 32. (d) loss ` 4,000 (`)
12. (b) premium
Hint: A = 1,00,000 × 8/100 = 8,000
13. (b) Provision of Doubtful Debts Dr. 5,000
B = 60,000 × 8/100 = 4,800
To Revaluation A/c 5,000 12,800
Hint: (`) (–) Profit (2,800)
Provision Required (2,00,000 × 5%) = 10,000 Loss 10,000
(-) Existing Provision (5,000) Share in Loss:
Required Provision 5,000 A = 10,000 × 3/5 = 6,000
14. (a) ` 495 B = 10,000 × 2/5 = 4,000
10 33. (b) only B ` 1,00,000
Hint: Commission = 4, 950 × = ` 495
100 Hint: Sacrificing Share = Old Share - New Share
15. (b) that part of issued capital which has been actually 3 3 12 − 15  3 
A = − = =   Gain
subscribed by the public 5 4 20  20 
16. (a) 3 : 1
Hint: Sacrificing Ratio = Old Share - New Share 2 1 8−5 3
B = − − =
5 4 20 20
3 9 12 − 9 3
X = − = =
5 20 20 20 C’s share of goodwill i.e., ` 1,00,000 will be credited
to only B as he is the only sacrificing partner.
2 7 8−7 1
Y = − = = 34. (d) X ` 5,000; Y ` 5,000 and Z ` 5,000
5 20 20 20 Hint: Share in Profit:
Sacrificing Ratio = 3 : 1 X - 1,50,000 × 1/3 = ` 50,000
17. (c)  the amount received on forfeited shares Y - 1,50,000 × 1/3 = ` 50,000
18. (b)  `900 Z - 1,50,000 × 1/3 = ` 50,000
Hint: Share forfeiture account will be credited with (300 × 3) 35. (b) Both (A) and (R) are true and (R) is not the correct
= ` 900 explanation of (A).
 19. (c) 800 shares
3
Hint: Shares Applied =
600 × 40,000
 = 800 36. (c)
30,000 10

20. (a) ` 2,450, ` 700 and ` 3,150 respectively Hint: A sacrifice =

3 1 3
× =
1 5 3 15
 21. (b) Sacrifice 
30 2 1 2
B sacrifice = × =
5 4 20
3 3 30 − 27 3 1
Hint: Y’s share = − = = = 3 2 12 + 6 18 3
9 10 90 90 30  C’s share = + = = =
15 20 60 60 10
2 | amadhaan ACCOUNTANCY Class XII | Term-1
37. (c)  ` 40,000 42. (a) 1 : 1
Hint: Excess share application money (1,000 × 40) 43. (b) Both (A) and (R) are true and (R) is not the correct
= ` 40,000 explanation of (A).
38. (a) ` 1,59,600 44. (d) A, B and C
(`)
45. (d) 3 1 2
 Hint: Allotment due (5,000 × 50) = 2,50,000
46. (d) None of the above
(–) Excess application money (1,000 × 40) = 40,000
47. (b) A, B and C
(–) Calls-in-arrears (60,000 – 9,600) = 50,400
1,59,600 48. (c) A, B and C
49. (b) Only C
39. (d) ` 12,000
50. (a) 75%
40. (b) Tom ` 6,750, Tim ` 3,150
Shareholders′ Funds
Hint: Interest on Capital: (`) Hint: Proprietary Ratio =
Total Assets
Tom (1,00,000 × 6/100) = 6,000
 6 6  4,00,000 + 2,00,000
 25,000 × ×  = 750 = × 100 = 75%
12 100  5,00,000 + 3,00,000
6,750
51. (a) Both (A) and (R) are true and (R) is the correct
Tim (50,000 × 6/100) = 3,000 explanation of (A).
(10,000 × 6/100 × 3/12) = 150 52. (c) B and C
3,150 53. (c) Only D
41. (b) Tom = ` 58,680, Tim = ` 58,680, Ram = ` 29,340 54. (a) 3 times
Hint: Hint: Working Capital Turnover Ratio
Dr. Profit & Loss Appropriation Account Cr. Cost of Revenue from Operations
=
Particulars Amt. (`) Particulars Amt. (`) Working Capital

To Interest on Capital: By Net Profit 1,68,600 Current Assets

Current Ratio =
Tom 6,750 (1,68,900 - 300) Current Liabilities

Tim 3,150 9,900 2 1,60,000

⇒ =
1 Current Liabilities
To Salary (Tom) (1,000 × 12) 12,000
Current Liabilities = ` 80,000
To Profit transferred
to Capital A/c: Working Capital = Current Assets - Current Liabilities
= 1,60,000 - 80,000 = ` 80,000
Tom 58,680
2, 40,000
Tim 58,680 Working Capital Turnover Ratio = = 3 times
80,000
Ram 29,340 1,46,700
55. (a) Both (A) and (R) are true and (R) is the correct
1,68,600 1,68,600
explanation of (A).

SAMPLE QUESTION PAPER 7

1. (b) Issued Capital 4. (b) ` 16
2. (b) Sacrifice by L 1/6, Gain by M 1/6 Hint: Share capital account will be credited with
the called-up value.
Hint: Sacrificing/(Gaining) Share = Old Share - New
5. (d) ` 1,500
Share
Hint: Interest on Capital: (`)
2 1 4−3 1
RajuL = − = = Sacrifice 6
3 2 6 6 = 20,000 × = 1, 200
100
1 1 2 − 3  1 6 6
GauravM = − = =   Gain = 10,000 × × = 300
3 2 6  6 100 12
1,500
3. (d)  only R
6. (c) revaluation account
Hint: Sacrificing Ratio = Old Share - New Share
7. (c) ` 40
R’s sacrifice =
3 2 1 1 1
− = ; S’s sacrifice = − = Nil Hint: Gain on Reissue = 400 - 360 = ` 40
4 4 4 4 4 8. (b)  ` 4,000
Here, only R sacrifices. So, goodwill will be credited 10
Hint: 44,000 × = ` 4,000
in R’s capital account only. 110
 Answers | 3
9. (c)  ` 5,50,000 29. (d) P-Nil, Q Gain-1/30, R Sacrifice-1/30
Hint: 50,000 × 11 = ` 5,50,000 Hint: Sacrificing Ratio = Old Share – New Share
10. (a) 2.5 5 3 15 − 15
P= − = = Nil
11. (b) Partnership deed 10 6 30
12. (c) Only B 3 2 9 − 10  1 
Q= − = =   Gain
Hint: When fixed capital accounts are maintained 10 6 30  30 
additional capital introduced and withdrawal of
capital are recorded in capital account. Rest of the 2 1 6−5 1
R= − = = Sacrifice
transactions are recorded. 10 6 30 30

13. (c) Only D 30. (b) Both Assertion (A) and Reason (R) are true but Reason
14. (a) old profit sharing ratio (R) is not the correct explanation of Assertion (A).
(`)
31. (c) `5,00,000, ` 300,000 and ` 2,00,000 respectively
15. (d) Provision required @ 10% × 80,000 = 8,000
(–) Already existing = (4,000) 32. (d) ` 98,000
Required to be created now (Debit) = 4,000 Hint:
Dr. Revaluation Account Cr.
16. (c)  ` 5,60,000
Particulars Amt. (`) Particulars Amt. (`)
Hint: Maximum amount of discount at which these
shares can be reissued are (8,000 × 70) = To Provision for By Stock 18,000
` 5,60,000 Doubtful Debts 8,000 By Loss on
(1,60,000 × 5%) Revaluation:
17. (c) all the partners To Machinery X 20,000
60,000
18. (c) 90% Y 30,000 50,000

19. (a) Both Assertion (A) and Reason (R) are true and 68,000 68,000
Reason (R) is the correct explanation of Assertion (A).
Y’s share in loss = 20,000 × 5/2 × 3/5 = ` 30,000
20. (d) Share Capital A/c Dr. 3,500
Revaluation value of stock = 80,000 + 18,000
To Share First Call A/c 1,000
=` 98,000
To Share Forfeiture A/c 2,500
33. (d) no entry will be passed
21. (a) current year's profit 34. (a) ` 5,250; ` 3,150; ` 2,100
22. (c) ` 25,000 will be credited to security premium Hint: The appearance of investment fluctuation
reserve account fund at ` 13,500 indicates that the market value
23. (c) 400 shares of investments at the time of creation of fund was
24. (c) Both Assertion (A) and Reason (R) are true but ` 1,36,500(1,50,000-13,500). The market value is now
Reason (R) is not the correct explanation of ` 1,47,000. So, IFF will be shown in the books at
Assertion (A). ` 3,000 and ` 10,500 will be distributed among old
25. (c) ` 72,00,000 partners in the old ratio of 5 : 3 : 2.
Hint: Capitalised Value of Profits 35. (c) Only C
36. (a) debited to revaluation account
Average Profits
== × 100
100 37. (a) Share Capital A/c Dr. 30,00,000
Normal Rate of Return
Securities Premium
12,00,000 Reserve A/c Dr. 3,00,000
= ×× 100
15 To Calls-in-arrears A/c 18,00,000
To Share Forfeiture A/c 15,00,000
=  ` 80,00,000
38. (d) ` 4,50,000
Goodwill = Capitalised Value of Profits
Hint: Amount forfeited on 30,000 shares
- Actual Capital Employed = 30,000 × 50 = 15,00,000
= 80,00,000 - 8,00,000 = ` 72,00,000 Amount forfeited on 18,000 shares (`)
26. (d) credited to calls-in-advance account = 15,00,000 × 18,000/30,000 = 9,00,000
27. (d) Loss ` 4,000 (`) (–) Loss on reissue (18,000  × 25) = 4,50,000
Hint: C = 1,00,000 × 8/100 = 8,000 4,50,000
D = 60,000 × 8/100 = 4,800 39. (b) ` 1,600 and ` 2,400 respectively
12,800 Hint: Interest on Gaurav’s drawings
= 40,000 × 8/100 × 6/12 = ` 1,600
(–) Profit (2,800)
Interest on Himanshu’s drawings
Loss 10,000
= 60,000 × 8/100 × 6/12 = ` 2,400
Share in Loss:
40. (b) ` 4,01,400; ` 8,02,800
C = 10,000 × 3/5 = 6,000 Hint: Closing capital of Gaurav= `4,00,000 (Opening
D = 10,000 × 2/5 = 4,000 capital) + `2,00,000 (Additional capital) + `26,000
28. (d) Only B (Interest on capital) + `36,000 (Salary) + `1,82,400
4 | amadhaan ACCOUNTANCY Class XII | Term-1
(Share of profit) - `40,000 (Drawings) - `1,600 Operating Profit Ratio
(Interest on drawings) = `8,02,800 Operating Profit
= × 100
41. (c) ` 26,000 to Gaurav and ` 24,000 to Himanshu Net Revenue from Operations
Hint: Interest on capital of Gaurave = (4,00,000 ×
2, 10,000
6/100) + (2,00,000 × 6/100 × 2/12) = 26,000 = × 100 = 54.5%
3,85,000
Interest on capital of Himanshu = 4,00,000 ×
6/100 = 24,000 50. (d) 4 times
42. (b) Only A 2, 10,000 × 100
Hint: Profit before Interest and Tax =
43. (d) A-3, B-2, C-1 60
44. (d) 2 : 1 = ` 3,50,000
Operating Cost 15% Debenture Interest = ` 45,000
45. (a) Revenue from Operations × 100 Profit before Interest and Tax
46. (a) Both Assertion (A) and Reason (R) are true and
= 3,50,000 + 45,000
Reason (R) is the correct explanation of Assertion (A).
= ` 3,95,000
Interest Coverage Ratio
47. (d) Only A
48. (b) Current Liabilities Profit before Interest and Tax
=
49. (a) 54.5% Fixed Interest Charge
Hint: Net Revenue from Operations = 4,00,000 3, 95,000
- 15,000 = = 8.8 times
45,000
= ` 3,85,000
Cost of Revenue from Operations 51. (a) Both Assertion (A) and Reason (R) are true and
= Opening Stock + Purchases - Purchase Returns Reason (R) is the correct explanation of Assertion (A).
- Closing Stock 52. (d) Only A
= 10,000 + 1,20,000 - 5,000 - 60,000 = ` 65,000 53. (a) Both Assertion (A) and Reason (R) are true and
Operating Profit = Net Revenue from Operations - Cost Reason (R) is the correct explanation of Assertion
of Revenue from Operations - Selling Expenses - (A).
54. (c) Only D
Administrative Expenses
55. (a) Share Capital
= 3,85,000 - 65,000 - 70,000 - 40,000
= 3,85,000 - 1,75,000 = ` 2,10,000

SAMPLE QUESTION PAPER 8

1. (c) Reserve Capital 9. (c) 1 : 1
2. (c) credited, ` 2,500 1
Hint: B’s share =
Hint: M’s sacrifice/(gain) = Old ratio - New ratio 3
2 1 1
= − = B’s share taken up by A and C equally
3 3 3
1 1 1 1
M’s share of goodwill to be adjusted = ÷ 2 = × =
1 3 3 2 6
= × 7,500 = ` 2,500
3 1 1 2+1 3 1
(Credited because it is sacrifice) A’s new share = + = = =
3 6 6 6 2
3. (a) 4.5
1 1 2+1 3 1
4. (c) ` 5,000 C’s new share = + = = =
3 6 6 6 2
Hint: Securities Premium = 10,000 × 0.50 = `5,000
5. (c) ` 1,50,000 ∴ New Ratio = 1 : 1
Hint: Total goodwill = ` 6,50,000; R’s share =
3 10. (d) A, B and C
13 11. (c) premium for goodwill account
3
R’s share of goodwill = 6,50,000 × = ` 1,50,000 12. (b) ` 10
13
13. (b) ` 72
6. (d) No interest will be allowed
Hint: Interest on Drawings: (`)
7. (b) 1 : 2
Hint: Shares allotted : Shares applied = 800 × 6% × 12/12 = 48
= 6,250 : 12,500 = 1 : 2 = 800 × 6% × 6/12 = 24
8. (d) 10,000 (Dr) 72
(`)
14. (c) 25%
Hint: Provision required @ 10% on ` 2,00,000 = 20,000
15. (b) goodwill
(-) Already existing = 10,000
16. (a) profits
Required to be created (Dr.) = 10,000 17. (b) does not invite the public
 Answers | 5
18. (c) Both a. and b. 33. (a) 3 : 1
19. (d) A, B and C
Hint: Sacrificing Ratio = Old Share – New Share
20. (d) 2.5
5 7 10 − 7 3
Hint: Goodwill = Number of Years’ Purchase L= − = =
× Average Profits 8 16 16 16

26,875 = Number of Years’ Purchase × 10,750 3 5 6−5 1

M= − = =
26,875 8 16 16 16
Number of Years’ Purchase = = 2.5
10, 750 Sacrificing Ratio = 3 : 1
21. (a) Both Assertion (A) and Reason (R) are true and 34. (d) A, B and C
Reason (R) is the correct explanation of Assertion (A). 35. (b) Both Assertion (A) and Reason (R) are true and
22. (c) ` 12,000 Reason (R) is not the correct explanation of
Hint: Amount of Deficiency to be borne by ‘A’ Assertion (A).
= Guaranteed Amount + Actual Share of Loss 36. (d) Nil
= 10,000 + 2,000 = ` 12,000 37. (a) ` 1,500
23. (b) ` 4,500; ` 9,000 and ` 9,000 Hint: Commission Payable to Mina = Net Profit -
Hint: A = 22,500 × 1/5 = `4,500; B = 22,500 × 2/5 = Interest on Capital - Salary
` 9,000; C = 22,500 × 2/5 = ` 9,000 = 20,800 - 1,300 - 1,200 - 1,800 (150 × 12)
24. (d) debit balance in the shares allotment account = 16,500 × 10/110 = ` 1,500
25. (d) ` 3,00,000 38. (c) ` 9,120
Hint: Firm’s capital based on Ria’s capital Hint: Divisible Profit = 20,800 + 80 + 120
3 - 1,300 - 1,200 - 1,800 - 1,500 = `15,200
= 3,40,000 ×
1 Share of Tina in Divisible Profit = 15,200 × 3/5
= ` 10,20,000 = ` 9,120
(-) Tia’s Capital 1,80,000 39. (c) ` 30 per share
Mia’s Capital 2,00,000 40. (d) ` 8,55,000
Ria’s Capital 3,40,000 = (7,20,000) Hint: Amount Received on Allotment = ` 30,000 × 30
Value of goodwill of a firm = 3,00,000 = ` 9,00,000
26. (b) ` 8,000 will be debited to revaluation account
(–) Calls-in-arrears = 1,500 × 30 = 45,000
27. (a) 12 : 8 : 5  8,55,000
2
Hint:  R’s share = 41. (b) ` 45,000
10
Hint: Calls-in-arrears on Allotment = 1,500 × 30
3 2 6
P’s sacrifice = × = = `45,000
5 10 50
42. (b) Subscribed but not fully paid
Q’s sacrifice =
2 2
× =
4 43. (d) A, B and C
5 10 50 44. (a) Both Assertion (A) and Reason (R) are true and
3 6 30 − 6 24 Reason (R) is the correct explanation of Assertion
 P’s new share = − = = (A).
5 50 50 50
45. (b) Only C
2 4 20 − 4 16
 Q’s new share = − = = 46. (b) A-3, B-2, C-1
5 50 50 50 47. (a) 1 : 1
R’s new share =
2 5 10
× = 48. (c) Cost of Revenue from Operations/Average Inventory
10 5 50 49. (b) Both Assertion (A) and Reason (R) are true but
New profit sharing ratio = 24 : 16 : 10 Reason (R) is not the correct explanation of
or 12 : 8 : 5 Assertion (A).
28. (c) Share Capital A/c Dr. 7,200 50. (d) 2.4 : 1
To Share Forfeiture = A/c 5,600 Quick Assets
To Calls-in-arrears = A/c 1,600 Hint: Quick Ratio =
Current Liabilities
29. (c) Assertion (A) is true but Reason (R) is false.
30. (d) 300 shares 1.5 QA
=
420 1 2,00,000
Hint: Number of Shares Allotted = × 10,000
14,000 QA = ` 3,00,000

= 300 Current Assets

Current Ratio =
31. (a) credited to capital reserve Current Liabilities
32. (d) ` 4,100 3,00,000 + 1,80,000
Hint: B will receive: (`) =
2,00,000
Salary = 1,700
 3 = 2.4 : 1
Share in profit (9, 700 − 1, 700) ×  = 2,400
 10  51. (a) difference between opening inventories and
4,100 closing inventories
6 | amadhaan ACCOUNTANCY Class XII | Term-1
52. (b) A and B = 4,50,000 - 50,000 - 1,00,000 - 2,00,000
53. (c) Assertion (A) is true but Reason (R) is false. = ` 1,00,000
54. (a) 22.2% Total Assets = Non-current Assets + Current Assets
Hint: Proprietary Ratio =
Shareholders′ Fund =3,60,000 + 90,000 = ` 4,50,000
Total Assets 1,00,000
Proprietary Ratio = × 100 = 22.2%
Shareholders’ Fund = Total Assets - Long-term 4,50,000
Borrowings - Long-term Provision - Current Liabilities 55. (b) vertical form

SAMPLE QUESTION PAPER 9

1. (d) All of the above B=
2 1
× =
2
or
1
2. (c) Both (i) and (ii) are correct 6 6 36 18
3. (b) Issuing partly paid bonus shares to shareholders C=
1 1
× =
1
4. (b) ` 8,100 6 9 54
Hint: Revised value of expenses owing D’s Share =
3
+
1
+
1
=
9 + 3 + 1 13
=
= ` 9,000 - 10% of ` 9,000 18 18 54 54 54
= ` 8,100 17. (b) Prospectus
5. (c) ` 10,000 18. (a) gain
1
Hint: Amount due on total shares (1,000 × 10) 14
= ` 10,000. Hint: Sacrificing/(Gaining) Share
6. (d) All of the above = Old Share - New Share
7. (b) ` 15,000 1 4 7−8  1 
A = − = =   Gain
Hint: Amount received on final call will be 2 7 14  14 
= 5,000 × 3 = ` 15,000
19. (b) ` 240
8. (c) ` 3,250
Hint: Interest on Loan = 4,000 × 6/100 = ` 240
Hint: Interest on drawings = (5,000 × 12 ) × 10 / 100
20. (d) credited to calls-in-advance account
× 6.5/12 = ` 3,250
9. (a) old partners capital accounts in the old profit 21. (a) Both Assertion (A) and Reason (R) are true and
Reason (R) is the correct explanation of Assertion
sharing ratio
(A).
10. (a) Cumulative preference share
22. (b) ` 40,000
11. (a) ` 4,500
Hint: Purchase Consideration = Cash + Promissory
Commission to Y = (55,000 - 5,500) × 10 / 110 Note + Equity Shares + Preference Shares
= 49,500 × 10 / 110 = ` 4,500 = 1,500 + 1,000 + (750 × 10) + (250 × 120)
12. (b) ` 7,700 = 1,500 + 1,000 + 7,500 + 30,000 = ` 40,000
Hint: Securities Premium Reserve A/c (3,850 × 2) 23. (a) ` 2,562.50
= `7,700 Hint: Interest on capital to be allowed to A will be
13. (c) ` 20,000 each calculated as follows:
1 On ` 40,000 for full year = 40,000 × 6/ 100 = ` 2,400
Hint: A sacrificed =
8 On ` 5,000 for 5 months = 5,000 × 6/100 × 5/12 = ` 125
1 1 2−1 1 On ` 5,000 for 1½ months = 5,000 × 6/100 × 1.5/12
B sacrifice = - = =
4 8 8 8 = ` 37. 50
Sacrificing ratio = 1 : 1 Total interest allowed to A = 2,400 + 125 + 37.50
` 20,000 each will be credited to the old partner’s = ` 2,562. 50
capital account as both A and B surrenders equal 24. (d) Both a. and b.
share in favour of Z. 25. (a) ` 1,25,000
14. (b) A-2; B-1; C-3 Hint: Subscribed and Fully Paid-up
15. (a) 525 = 1,250 (500 + 750) Equity Shares of `10 each
63,000 ` 1,25,000.
Hint: Issued share = = 525 shares
120(100 + 20) 26. (a) Both Assertion (A) and Reason (R) are true and
Reason (R) is the correct explanation of Assertion
16. (d)
13 (A).
54 27. (d) Revalued figures
Share surrendered by A =
3 1 3
× = 28. (b) credited to calls-in-advance account
6 3 18 29. (d) ` 2,000
 Answers | 7
Hint: Net profit for the year = ` 3,12,000 Tina = 9,600 × 10/100  × 7.5/12  = ` 600.
Z’s share in profits = ` 3,12,000 × 2/8 = ` 78,000 Total interest on drawings = 325 + 275 + 600 = ` 1,200
Amount guaranteed to Z = ` 80,000 42. (b) Only A
Deficiency to be borne by X = ` 80,000 - ` 78,000
43. (b) Both Assertion (A) and Reason (R) are true but
= ` 2,000
30. (a) Only A Reason (R) is not the correct explanation of
31. (c) 5 : 4 : 1
Assertion (A).
Hint: C brings 30,000 shares as goodwill which is 1/10
of goodwill, so he get 1/10th share in the profit. 44. (c) Only C
Entire share is credited to A’s Capital it means only A 45. (a) i, ii, iii, v
is sacrificing partner. 46. (c) decrease in current ratio
A’s new share = 3/5 - 1/ 10 = 6/10 - 1/10 = 5/10
47. (c) Vertical Analysis
B = 2/5
48. (a) to determine whether their dues will be paid on time
C = 1/10
New profit share = 5 : 4: 1 49. (b) ` 1,30,000
32. (a) Both Assertion (A) and Reason (R) are true and (R) Hint: Current Assets = Cash + Inventory + Trade Receivable
is the correct explanation of Assertion (A). + Prepaid Expenses
33. (c) 5 : 7
Hint: Shares Available : Shares Applied
= 5,000 + 50,000 + 65,000 + 10,000
12,500 : 17,500 = ` 1,30,000
5:7 50. (a) Both Assertion (A) and Reason (R) are true and
34. (a) ` 7,000 Reason (R) is the correct explanation of Assertion
Hint: Goodwill = Total Assets - Capital
(A).
= 45,000 - 38,000 = ` 7,000
51. (b) (i) and (iv)
35. (a) Bank A/c Dr. 8,000
To Equity Share Capital A/c 8,000 52. (d) All of these
36. (a) `6,000; `4,000 and `10,000 respectively 53. (b) 2.5 : 1
37. (c) Share Capital A/c Dr. 16,80,000 Hint: Working Capital = Current Assets - Current Liabilities
To Calls-in-arrears A/c 7,20,000  4,80,000 = 8,00,000 - Current Liabilities
To Share Forfeiture A/c 9,60,000
Current Liabilities = 8,00,000 - 4,80,000
38. (b) up to the amount of forfeited money
39. (a) Profit and loss account
= 3,20,000
40. (d) ` 88,000 Current Assets ` 8,00,000
Current Ratio = = = 2.5 : 1
Hint: Net profit = Profit for the year - Rent to the partner Current Liabilities 3,20,000
= 1,03,000 - 15,000 = ` 88,000 54. (b) Both Assertion (A) and Reason (R) are true but
41. (b) ` 1,200
Reason (R) is not the correct explanation of Assertion
Hint: Interest on Drawings:
Sona = 6,000 × 10/100 × 6.5/12 =  ` 325 (A).
Mona = 6,000  × 10/100 × 5.5/12 = ` 275 55. (a) (i),  (iv), (v), (vi)

SAMPLE QUESTION PAPER 10

1. (d) 1,250
10 7.5 Hint: ` 40,000 will be utilised towards the workmen
Hint: Interest on Drawings = (5,000 × 4 ) × ×
100 12 compensation claim and the balance ` 32,000
   = ` 1,250 (72,000 - 40,000) will be distributed between old
2. (d) Only D
partners in old ratio i.e. 2 : 1.
3. (c) Cash A/c
8. (a) is not shown in the balance sheet
4. (b) ` 750
9. (b) ` 12,000
Hint: Amount debited to share forfeiture account at
Hint: Amount debited to share capital account will be
the time of reissue = (750 × 1) = ` 750
= 1,500 × 8
5. (d) not entitled to interest on their capitals
6. (b) Share Forfeiture A/c = ` 12,000
7. (c) Workmen Compensation Reserve A/c Dr. 72,000 10. (c) credited, ` 5,000
  To Claim on Workmen Compensation A/c 40,000 Hint: Sacrificing/Gaining share = Old share - New share
To L’s Capital A/c 21,332 2 1 1
Q = − = sacrifice
To M’s Capital A/c   10,668     3 3 3
8 | amadhaan ACCOUNTANCY Class XII | Term-1
1 30. (b) consent of the existing partners
Q’s share of goodwill = 15,000 × = ` 5,000 31. (b) ` 9 per share
3
(to be credited) Hint: Forfeited Amount = 2,000 × 3 = ` 6,000
11. (a) AS 10        Amount of Discount =
6,000 × 1,000
− 2000
12. (b) ` 1,00,000 2, 000
Hint: Payment made through shares     = ` 1,000
= 6,00,000 - 1,00,000 1,000 = ` 1 per share
= ` 5,00,000 Discount Rate =
1,000
Securities premium to be credited Thus, shares will be reissued at ` 9 per share.
= 5,00,000 × 25/125 = ` 1,00,000 32. (c) 2 : 2 : 1
13. (c) Interest on Drawings 1
Hint: E’s share =
14. (d) the maximum amount of share capital that a 5
company is authorised to issue 3 1 2
15. (b) ` 4,000 C’s share = − =
5 5 5
Hint: Amount transferred to reserve
2
10 D’s share =
= 44,000 × = ` 4,000 5
110
New profit sharing ratio = 2 : 2 : 1
13
16. (b) 33. (c) Assertion (A) is true but Reason (R) is false.
54
34. (d) ` 1,000
3 1 2 1 1 1
Hint: S’s share = × + × + × Hint: Amount Guaranteed to Z = ` 40,000
6 3 6 6 6 9
Z’s share in profit = 1,56,000 × 2/8 = ` 39,000
=
3
+
2
+
1 Deficiency to be borne by
18 36 54 X = 40,000 - 39,000 = ` 1,000
18 + 6 + 2 26 13 35. (a) Dr. X ` 2,500; Cr. Z ` 2,500 (`)
= = =
108 108 54 Hint: Profit and loss (Debit balance)    = 10,000
17. (d) ` 1,500
General Reserve = 25,000
Hint: Forfeited shares of Raja = 250 × 30%
Net amount to be adjusted = 15,000
        = 75 shares
Amount credited to share forfeiture account Sacrificing/Gaining share = Old share - New share
= 75 × 20 = ` 1,500 1 1 1−2  1
X = − = =   Gain
18. (a) old book values 6 3 6  6
19. (a) ` 3,60,000; ` 3,00,000 and ` 60,000 respectively 1
20. (a) debited to revaluation account ⇒ 15,000 × = ` 2,500 (Dr)
6
21. (a) Only C
2 1 2−2
22. (d) ` 10,000   Y = − = = Nil
6 3 6
10 6
Hint: x × × = 500 3 1 3−2 1
100 12   Z = − = =
6 3 6 6
⇒ x = ` 10,000
1
23. (b) 750 shares, ` 300 ⇒ 15,000 × = ` 2,500 (Cr)
6
Hint: Allotted shares to P =
900 × 40,000
= 750 36. (c) ` 6,00,000
48,000 Hint: Total goodwill = ` 26,00,000
Excess money adjusted towards allotment N’s share = 3/13
= (150 × 2) = ` 300
24. (c) Only C ∴ N’s share of goodwill = 26,00,000 × 3/13
25. (b) Provision of interest on loan @ 6% per annum of = ` 6,00,000
the Partnership Act does not apply 37. (a) ` 6,92,000 (`)
26. (d) Dividends are usually given at a set amount in
Hint: Final call due (90,000 × 8) = 7,20,000
every financial year
(-) Calls-in-arrears (1,000 × 8)      =   8,000
27. (b) Both Assertion (A) and Reason (R) are true but
(-) Calls-in-advance (2,500 × 8)   =     20,000
Reason (R) is not the correct explanation of
    6,92,000
Assertion (A).
38. (c) ` 3,750
28. (d) Share Capital A/c Dr. 1,750
To Share First Call A/c 500 Hint: Amount of forfeiture on 750 shares
  To Share Forfeiture A/c 1,250 7,000
= × 750 = 5, 250
29. (d) Assertion (A) is false but Reason (R) is true. 1,000
 Answers | 9
(-) Discount on reissue = (1,500) Net Credit Purchases
45. (b)
Amount transferred to capital reserve 3,750 Average Creditors + Average Bills Payble
1 1 1 46. (d) A, B and C
39. (b) Raj gain = , Taj sacrifice = , Naz sacrifice =
6 12 12
47. (c) A-2, B-4, C-3, D-1
Hint: Sacrificing/Gaining Share = Old Share - New Share 48. (d) A, B and C
1 2 4 −6  2 1 49. (a) Only B
Raj = − = =  or  Gain
3 4 12  12 6
50. (a) Both Assertion (A) and Reason (R) are true and
1 1 4−3 1 Reason (R) is the correct explanation of Assertion
Taj = − = = Sacrifice
3 4 12 12 (A).
1 1 1 51. (d) 15%
Naj = − = Sacrifice
3 4 12 Hint: Operating Profit Ratio
40. (c) ` 17,500 Operating Profit
Hint: Net Effect of Revaluation: (`) = × 100
Revenue from Operations
Profit due to increase in the value of
freehold premises = 50,000 =
75,000
× 100  = 15%
Profit due to decrease in the value of creditors 5,00,000
= 5,000 52. (c) Only A
Loss due to fall in the value of stock, 53. (d) Only D
debtors and furniture = (37,500) 54. (b) Both Assertion (A) and Reason (R) are true but
Profit on revaluation 17,500 Reason (R) is not the correct explanation of
41. (b) Richa’s Capital/Current A/c Dr. 2,916 Assertion (A).
To Megha’s Capital/Current A/c 1,458 55. (c) 6 times
   To Samiksha’s Capital/Current A/c 1,458 Hint: Debtors Turnover Ratio
42. (b) decrease in inventory by ` 18,000 Net Credit Sales
43. (a) Both Assertion (A) and Reason (R) are true and =
Average Trade Receivables
Reason (R) is the correct explanation of Assertion
(A). 21,00,000
= = 6 times
44. (d) inventory, prepaid expenses (2,00,000 + 1,50, 000)

SAMPLE QUESTION PAPER 11

1. (a) ` 9,000 will be Debited to Calls-in-arrears A/c 10. (c) credited, ` 5,000
2. (a) `4,000 11. (b) ` 5,000
Hint: Q’s share in reserve = 24,000 × 1/6 = ` 4,000 Hint: Investments = 10,000 - (50% of ` 10,000)
3. (a) Share application and allotment account = ` 5,000
4. (c) 1/4 12. (a) 12% p.a.
Hint: 13. (b) Goodwill is an intangible asset
J sacrificed = 1/4 × 3/4 = 3/16
14. (d) `2 per share
K sacrificed = 1/4 × 1/4 = 1/16
L’s new share = 3/16 + 1/16 = 4/16 = 1/4 15. (c) 4.5 months
5. (a) full subscription of shares Hint: Time Period = Time left after first drawings +
Time left after last drawings/2
6. (a) `  55
Hint: Interest on Drawings = 9 + 0/2 = 4.5 months
16. (c) ` 500
= Amount of Drawings × No. of Months × Rate Hint: Difference between cost price and market
× Period value of investments is `500 (15,000 – 14,500).
= 100 × 10 × 12/100 × 5.5/12
Investment Fluctuation Fund will be shown at
= ` 55 ` 500 in the balance sheet of new firm.
7. (c) Both a. and b. 17. (b) B, C, A
8. (c) ` 75,000 18. (d) ` 60,000
Hint: Call money is made due with the whole Hint: Equity Share Application and Allotment (`)
amount. As per question, ` 75,000 (25,000 × 3) ` (5,000 × 10) = 50,000
will be made due. (+) Securities Premium (5,000 × 2) = 10,000
9. (d) A, B and C Total Amount = 60,000
10 | amadhaan ACCOUNTANCY Class XII | Term-1
19. (b) ` 5,840 35. (c) ` 15,000
Hint: (`) Hint: Total Goodwill = ` 65,000
Total amount due (600 × 10) = 6,000 D’s Share = 3/13
(-) calls-in-arrears (80 × 2) = 160 D’s Share of Goodwill = 65,000 × 3/13 = ` 15,000
= 5,840 36. (c) 1 : 1 : 1
20. (c) 3.5 Hint:
21. (a) Both Assertion (A) and Reason (R) are true and Z’s share =
Share of goodwill brought by R
Reason (R) is the correct explanation of Assertion Firm's total goodwill
(A). 5,000 1
= =
22. (b) ` 9 per share 15, 000 3
Hint:
P and Q’s old share = 2 : 1
Share Capital A/c (200 × 10) Dr. 2,000
R’s new share = Old share - Sacrificing share
To Share Forfeiture A/c (200 × 3) 600
= 2/3 - 1/3 = 1/3
To Calls-in-arrears A/c (200 × 7) 1,400
New Ratio = 1 : 1 : 1
Bank A/c (100 × 9)* Dr. 900 37. (b) ` 57,500
Share Forfeiture A/c (100 × 1) Dr. 100 Hint: Excess money received on application not
To Share Capital A/c (100 × 10) 1,000 adjusted in any call will be refunded.
Share Forfeiture A/c Dr. 200 Excess money received (3,500 × 20) = ` 70,000
To Capital Reserve A/c 200 Adjusted on allotment (500 × 45) = ` 22,500
Amount forfeited on 200 shares = ` 600 Rejected shares (5,000 × 20) = ` 10,000
Amount forfeited on 200 shares = 600/200 × 100 Therefore, total amount refunded is
= 300 (70,000 - 22,500 + 10,000) = ` 57,500
(-) Loss on reissue = (100) 38. (c) ` 4,07,500
Capital Reserve 200 Hint: Allotment money due = (10,000 × 45)
23. (c) old profit sharing ratio = ` 4,50,000
24. (a) 3,000
(-) Excess money adjusted = 42,500
Hint: 4,07,500
Number of shares issued
39. (a) Bhavya sacrifice 1/6, Naman gains 1/6
4,50,000 − 90,000
= = 3,000 shares Hint:
100 + 20
Sacrificing/(Gaining) Ratio = Old Share - New Share
25. (b) ` 400
1 1 3−2 1
Hint: (`) Bhavya = − = = Sacrifice
2 3 6 6
Guaranteed share of N is = 2,000
(-) Share in profit (8,000 × 2/10) = 1,600 1 2 3−4  1 
Naman = − = =   Gain
Deficiency in N’s share of profit = 400 2 3 6 6
26. (c) Only D 40. (b) debited, credited
27. (a) Bank A/c Dr. 10,100 41. (c) Naman’s Capital A/c Dr. 20,000
Calls-in-arrears A/c Dr. 200 To Bhavya’s Capital A/c 20,000
To Equity Share First Call A/c 10,000 42. (b) B and C
To Calls-in-advance A/c 300
43. (a) Both Assertion (A) and Reason (R) are true and
28. (c) Forfeited Shares
Reason (R) is the correct explanation of Assertion
29. (d) Assertion (A) is false but Reason (R) is true. (A).
30. (b) Distribution of dividend 44. (d) All of these
31. (a) ` 3,000, ` 1,500, ` 4,500 respectively 45. (b) A-3, B-1, C-2
32. (c) Assertion (A) is true but Reason (R) is false. 46. (a) A, B and D
33. (c) 3 : 4 : 3 47. (d) A, B and C
Hint: D’s new share = 5/10 - 1/5 = 5 - 2/10 = 3/10 48. (b) (i) and (iv)
E’s new share = 4/10 49. (b) Vertical Form
F’s new share = 1/10 + 1/5 = 1 + 2/10 = 3/10
50. (a) A and B
New Ratio = 3 : 4 : 3
51. (a) Creditors
34. (b) Reconstitution of Partnership
52. (a) 20%
 Answers | 11
Hint: 54. (a) 22.2%
GP Ratio = (GP/Net Revenue from Operations) × 100 Hint: Proprietary Ratio = Shareholders’ Fund/Total
= 4,000/20,000 × 100 Assets
= 20% = 25,000/1,12,500 × 100 = 22.2%
GP = Net Sales - COGS Total Assets = Non-current Assets + Current Assets
= 20,000 - 16,000 = 90,000 + 22,500 = ` 1,12,500
= ` 4,000 Shareholder’s Fund = Total Assets - Long-term
Net Sales = Total Sales - Sales Returns Borrowings - Long-term
Provision - Current Liabilities
= 21,000 - 1,000
= 1,12,500 - 12,500 - 25,000 - 50,000 = ` 25,000
= ` 20,000
55. (a) Both Assertion (A) and Reason (R) are true and
53. (b) Both Assertion (A) and Reason (R) are true but
Reason (R) is the correct explanation of Assertion
Reason (R) is not the correct explanation of
(A).
Assertion (A).

SAMPLE QUESTION PAPER 12

1. (d) All of the above 20. (a) Both Assertion (A) and Reason (R) are true and
2. (b) 14 Reason (R) is the correct explanation of Assertion
(A).
3. (d) ` 2,500
Hint: 2,000/80 × 100 = ` 2,500 21. (b) To preference shareholders
4. (a) ` 4,000 22. (d) ` 400
Hint: ` 4,000 (500 × 8) Hint: Net profit for the year = ` 62,400
5. (c) All partners in profit or loss sharing ratio T’s share in profits = ` 62,400 × 2/8 = ` 15,600
6. (a) Equity Guaranteed to T = ` 16,000
7. (c) ` 88 Deficiency to be borne by R = ` 16,000 - ` 15,600
Hint: Interest on L’s Drawings = Total Drawings × Rate  = ` 400
of Interest/100 × Average Period/12
23. (a) redeemable equity shares
= (1,000 × 6) × 5/100 × 3.5/12 = ` 88
24. (a) ratio of sacrifice
8. (a) ` 3,75,000
25. (c) their old profit sharing ratio
Hint: Subscribed capital (3,750 × 100) = ` 3,75,000.
Subscribed capital is equal to authorised capital, as, 26. (c) ` 500
complete capital has been subscribed by the public. Hint:   (`)   
9. (b) partner’s capital      Amount Forfeited = 1,500
10. (c) private placement    (-) Loss on Re-issue (1,000 × 1) = 1,000
11. (c) ` 44,000 Amount transferred to capital reserve  =     500
Hint: New Value of Creditors 27. (c) in their old profit sharing ratio
= 50,000 - 6,000 = `44,000 28. (c) ` 17,000
12. (a) ` 8 Hint: Average Profit = ` 18,000
13. (a) old profit sharing ratio Normal Profit = (Assets - Liabilities) × Normal Rate of
Return
14. (d) All of the above
  = 1,00,000 - 42,000 × 12/100 = ` 6,645
15. (b) ` 10,000 will be credited to capital reserve account
Super Profit = Average Profit - Normal Profit
16. (d) sacrificing ratio = 9,000 - 6,645 = ` 2,040
17. (b) ` 2,000 Goodwill = Super Profit × Normal Rate of Return/100
Hint: Amount Transferred to Reserve
= 2,040 × 100/12 = ` 17,000
= 22,000 × 10/110 = ` 2,000
29. (d) ` 1,35,000
18. (c) E ` 21,000
Hint: Sacrificing ratio = Old share - New share Hint: Subscribed share capital:
     E = 2/3 - 4/9 = 6 - 2/9 = 4/9 (`)
     F = 1/3 - 3/9 = 3 - 3/9 = Nil Equity Shares (900 × 100) = 90,000
G’s share in goodwill 47,250 × 4/9 = ` 21,000 will be Preference Shares (450 × 100) = 45,000
sacrificed only by E.
1,35,000
19. (b) ` 2,92,000
30. (b) Both Assertion (A) and Reason (R) are true but
Hint:  Total amount due (30,000 × 10) = 3,00,000
(-) Calls-in-arrears (4,000 × 2) = 8,000 Reason (R) is not the correct explanation of
                      = 2,92,000 Assertion (A).
12 | amadhaan ACCOUNTANCY Class XII | Term-1
31. (c) Capital accounts of old partners 18,00,000
= = ` 3,60,000
32. (b) 13/54 5
Hint : L’s share = 3/6 × 1/3 + 2/6 × 1/6 + 1/6 × 1/9
1 2
40. (a) Kia and Sia sacrifices = , Gia gains =
= 3/18 + 2/36 + 1/54 = 18 + 6 + 2/108 = 13/54 12 12
33. (a) Both Assertion (A) and Reason (R) are true and Hint: Calculation of Sacrifice or Gain of each Partner:
Reason (R) is the correct explanation of Assertion Sacrificing ratio = Old share - New share
(A).
1 1 4−3 1
34. (c) P = ` 2,56,000, Q = ` 2,80,000      Kia = − = = Sacrifice
3 4 12 12
Hint: Closing Balance of Capital
1 2 4 −6  2 
Particulars P Q    Gia = − = =   Gain
3 4 12  12 
Opening Balance 2,50,000 2,70,000
1 1 4−3 1
(+) Salary of P 6,000 —     Sia = − = = Sacrifice
3 4 12 12
(+) Commission to Q — 10,000 41. (c) Gia’s Capital A/c Dr. 1,20,000
Closing Balance 2,56,000 2,80,000 To Kia’s Capital A/c 60,000
35. (c) ` 30,000, ` 15,000, ` 7,500, ` 7,500 respectively To Sia’s Capital A/c 60,000
36. (c) Vijay’s Current A/c Dr. 2,500 42. (a) Only D
To Drawings A/c 2,500 43. (a) Both Assertion (A) and Reason (R) are true and
37. (a) ` 1,17,600 Reason (R) is the correct explanation of Assertion
Hint: (A).
Particulars Amt. (`) 44. (b) decrease in inventory by ` 9,000

Total Amount due on Allotment 45. (d) A-3, B-1, C-2

(1,50,000 × 2) 3,00,000 46. (c) decrease in current ratio
(-) Excess Application Money Adjusted 47. (b) Chief Military Officer
(30,000 × 6) (1,80,000)
48. (c) Issue of bonus shares
1,20,000 49. (d) Tangible fixed asset
(-) Money not Paid by Rina (2,400) 50. (b) ` 1,30,000
Net Amount Received on Allotment 1,17,600 Hint: Current Assets = Cash + Inventory + Trade
38. (d) ` 30,000 receivables + Prepaid Expenses
Hint: = 5,000 + 50,000 + 65,000 + 10,000 = ` 1,30,000

Particulars Amt (`) 51. (a) Both Assertion (A) and Reason (R) are true and
Reason (R) is the correct explanation of Assertion
6,000 shares have been re-issued
which include 4,500 shares of Tina and (A).
27,000 52. (c) Only D
the balance 3,000 of Rina
 (i) Amount forfeited in respect of Tina 53. (b) Only A
shares
54. (c) 5.21 times
(ii) Amount forfeited to respect of Rina
 Hint: Net Credit Purchase = Total Purchase - Cash
1,500 
shares  18,000 × Purchase - Purchase Return
 3,000 
9,000 = 42,500 - 4,000 - 2,000 = ` 36,500
36,000 Average Trade Payable = Opening Trade Payable +
Closing Trade Payable/2
(-) Loss on re-issue of 6,000 shares @
` 1 each (6,000) = 6,000 + 8,000/2 = ` 7,000
Creditors Turnover Ratio = Net credit purchase/Average
Profit on re-issue to be transferred to
capital reserve 30,000 trade payable
      = 73,000/14,000
39. (c) ` 3,60,000
Hint: Average Profits       = 5.21 times
        55. (b) Both Assertion (A) and Reason (R) are true but
4,00,000 + 4,80,000 + 7, 33,000 − 33,000 + 2, 20,000 Reason (R) is not the correct explanation of
=
5 Assertion (A). 