ST. LAWRENCE CONVENT, SR.

SEC, SCHOOL

Class XII (2021-2022)

Accounts UT-1
Time - 1hr 30mins Maximum Marks = 40

General Instructions
● All questions are compulsory.
● Question 1 to 20 carry 1 mark each.
● Question 21 carries 2 marks.
● Question 22 carries 5 marks.
● Question 23 carries 5 marks.
● Question 24 carries 8 marks.
● Try to attempt all questions in the stipulated time.
● Don't use unfair means to answer the questions.
● Take clear picture of your answer sheets, convert it in a pdf and send it to the provided email ID -
Class@stlawrenceconvent.com

SECTION-A [1 ×20=20 marks]

Q1. Give two items which appear in the debit side of a Partner's Current Account.

Q 2. Name any two occassion on which a firm can be reconstituted?

Q 3. Interest on Loan taken by a partner is credited to__________ .

Q 4. Total capital employed in the firm is ₹8,00,000, Normal Rate of Return is 15% and profit for the
year is ₹1,20,000. Value of goodwill as per capitalisation method would be
a) ₹8,20,000
b) Nil
c) ₹4,20,000
d) 1,20,000

Q 5. Expenses expected to be incurred to earn profit are deducted to determine normal expected profit
for valuation of____________ .

Q 6. Distinguish between Fixed and Fluctuating Capitals.

Q 7. The liability of the partners in a partnership firm under Indian Partnership Act, 1932 is

a) No liability
b) Unlimited
c) Limited
d) Depending

Q 8. What is meant by self-generated Goodwill?

Q 9. What is Profit & Loss Appropriation Account?

Q 10. Excess amount that a firm gets over and above the market value of assets at the
time of sale of business is-
a) Profit
b) Reserve
c) Goodwill
d) Super Profit

Q 11. Self-generated Goodwill is no___________in the books of account.

Q 12. How will you calculate interest on the drawings of equal amount made on the last day of every
month of the calendar?
Q 13. Ram and Shyam were partners in a firm sharing profits Dr losses in the ratio 3:1. With effect from
1st January 2021, they agreed to share profits in the ratio 2:1.Due to change in profit sharing ratio,
Ram's gain or sacrifice will be-

a) Gain ½
b) Sacrifice 1/12
c) Gain 2/60
d) Sacrifice 3/60

Q 14. How does location affect the Goodwill of a business?

Q 15. Define Trademarks.

Q 16. Assets why physically exist but not shown in the Balance Sheet are___________.

Q 17. If the partner's capital are fixed, where will you record interest charged on drawings?

Q 18. Sonam, partner of a firm, has advanced loan to the firm of ₹1,00,000. The firm does not have a
partnership deed. Will Sonam get interest on the loan? If Yes, at which rate?

Q 19. In case of guarantee profit to a partner deficiency of guarantee partner is met by remaining
partner in their.
a) Old Ratio
b) Agreed Ratio
c) Sacrificing Ratio
d) Gaining Ratio

Q 20. Revaluation Account is a _______Account.

SECTION-B
Q 21. A and B are partners in a firm sharing profits in the ratio 4:1. They decided to share future profits
in the ratio 3:2 w.e.f 1st April, 2020. On that day, Profit and Loss Accounts showed a debit balance of
₹1,00,000. Pass necessary Journal entry to give effect to the above. (2 marks).

Q 22. A business earned a average profit of₹8,00,000 during the last few years. The normal rate of profit
in the similar type of business is 10%. The total value of assets and liabilities were ₹22,00,000 and
₹5,60,000 respectively. Calculate the value of goodwill of the firm by Super Profit method if it is valued
at 2 ½ year's purchase of Super Profit. (5 marks).

Q 23. Mohan, Vijay and Anil are partner, thebalances of their Capital Accounts being ₹30,000, ₹25,000
and ₹20,000 respectively. In arriving at these amounts profit for the year ended 31st March, 2021,
₹24,000 had been credited to partners in their profitsharing ratio. Their drawings were ₹5,000 (Mohan),
₹4,000 (Vijay) and ₹3,000 (Anil) during the year. Subsequently, following omissions were noticed and it
was decided to rectify the errors:

a) Interest on Capital @10% p.a.

b) Interest on Drawings:
>>Mohan ₹250.
>>Vijay ₹200.
>>Anil ₹150.

Make necessary corrections through a Journal entry and show your workings clearly. (5 marks).

Q 24. A, B and C were partners in a firm sharingprofits in the ratio of 3:2 :

Their Balance Sheet as on 31st March, 2015 was as follows  :-

Liabilities Amount (₹) Assets Amount (₹)

Creditors 50,000 Land 50,000

Bills Payable 20,000 Building 50,000
General Reserve 30,000 Plant 1,00,000
Capital A/c Stock 40,000
A 1,00,000 Debtors 30,000
B 50,000 Bank 5,000
C 25,000 1,75,000

Total 2,75,000 Total 2,75,000

From 1st April, 2015, A,B and C decided to share profits equality. For this it was agreed That
(i)Goodwill of the firm will be valued at ₹1,50,000.
(ii)Land will be revalued at ₹80,000 and Building be depreciated by 6%.
(iii)Creditors of ₹6,000 were not likely to be claimed and hence should be written off Prepare
Revaluation Account, Partner's Capital Accounts and Balance Sheet of the reconstituted firm.
(8 marks)