DELHI PUBLIC SCHOOL

NAVI MUMBAI
ONLINE ASSESSMENT- 2020-21
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Class: XII M.Marks:65
Subject: Accountancy Duration: 2 ½ Hrs.
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General Instructions:
1. This question paper contains 28 questions and 8 printed sides
2. Each question carries marks indicated against it.
3. Heading of the option opted must be written on the answer-book before attempting
the questions of that particular OPTION.
4. Question no. 1 to 20are very short answer typequestions carrying 1 mark each.
5. Question no. 21 is short answer type-I questions carrying 3 marks each.
6. Question no. 22&23 are short answer type-II questions carrying 4marks each.
7. Question no. 24to 26 are long answer type-I questions carrying 6 marks each.
9. Question no. 27and 28 are long answer type-II questions carrying 8 marks each.
10. Answer should be brief and to the point. The answer of each part should be written at
one place.
11. There is no overall choice. However an internal choice has been provided in 1
question of three marks, 1 questions of four marks, 1 questions of six marks and 2
questions of eight marks. You have to attempt only one of the choices in such
questions.
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PART-A
(Accounting for Not-for-Profit Organizations, Partnership Firms and Companies)

1. Name an item that is never shown on the ‘Payment’ side of the ‘Receipts and Payments
Account, but are debited to the ‘Income and Expenditure Account’. (1)

2. At what rate is interest payable on the amount remaining unpaid to the executor of deceased
partner, in absence of any agreement among partners, when (s)he opts for interest and not
share of profit.
(a) 12% p.a.
(b) 8% p.a.
(c) 6% p.a.
(d) 7.5%p.a (1)

3. A and B are partners in a firm sharing profits in the ratio of 3: 2. Mrs. B hasgiven a loan of
₹40,000 to the firm and A has also given a loan of ₹80,000 to thefirm. The firm was
dissolved and its assets realized ₹60,000.
State the order ofpayment of Mrs. B’s loan and A’s loan assuming that there was no other
thirdparty liability of the firm. (1)

4. If at the time of admission, there is some unrecorded liability, it will be:

(a) Debited to Revaluation A/c
(b) Credited to Revaluation A/c
(c) Transferred to Old Partner’s capital A/cs
 (d) Transferred to All Partner’s capital A/cs (1)

5. Tapan, a partner in a partnership firm withdrew regularly ₹4,000 in the middle of every
month for the six months ended 31st March, 2020. For how many months would interest on
drawings be charged? (1)

6. A, B and C are partners sharing profits and losses in the ratio of 1:2:3. From April 1, 2020,
they decided to share the profits in the ratio of 2:3:4. On that date, Profit and Loss account
disclosed a debit balance of ₹90,000. Pass necessary journal entry. (1)

7. Capital invested in a firm is ₹3, 00,000. Normal rate of return is 10%. Average profits of the
firm are ₹41,000 (after an abnormal loss ₹2,000). Calculate super profits. (1)

8. State any one purpose for which Securities Premium Reserve account can be utilized. (1)

9. On the retirement of Hari from the firm of ‘Hari,Ram and Sharma’, the balance sheet showed
a debit balance of ₹12, 000 in the profit and loss account. For calculating the amount payable
to Hari , this balance will be transferred :
(a) To the credit of the capital accounts of Hari,Ram and Sharma equally.
(b) To the debit of capital accounts of Hari, Ram and Sharma equally.
(c) To the debit of the capital accounts of Ram and Sharma equally
(d) To the credit of the capital accounts of Ram and Sharma equally (1)

10 P and Q are partners in a firm sharing profits and losses in the ratio of 3:2.On 1st April, 2019
. they decided to admit R their new ratio is decided to be equal. Pass the necessary journal
entry to distribute Investment Fluctuation Reserve of ₹ 60,000 at the time of R’s admission,
when Investment appear in the books at₹ 2,10,000 and its market value is ₹1,90,000. (1)

11 Suraj, Chand,and Sitara were were partners sharing profits equally. At the time of dissolution
. of the partnership firm, Suraj’s loan to the firm will be:
(a) Credited to Suraj’s Capital account
(b) Debited to Realisation Account
(c) Credited to Realisation Account
(d) Credited to Bank Account (1)

12 What is meant by ‘Secured Debentures’? (1)

.
13 Jai and Deep were in partnership sharing profits and losses in the ratio of 4:3. They admitted
. Dhruv as a new partner. Dhruv brought ₹60,000 as share of goodwill premium which was
entirely credited to Jai’s capital account. On the date of admission, goodwill of the firm was
valued at ₹4, 20,000. Calculate the new profit sharing ratio of Jai, Deep and Dhruv. (1)

14 Amount of Calls in Arrears is shown in the Balance Sheet

. (a) as deduction from issued capital
(b) as deduction from subscribed capital
(c) as addition to subscribed capital
(d) on the asset side (1)

15 A portion of share capital that is reserved by the company and will be utilized only on the
. happening of winding up of the company is called ___________________. (1)
16 State whether the following statements are True or False:
. ‘Payment of honorarium is a revenue expenditure’. (1)

17 Give any one point of difference between Income and Expenditure Account and Profit and
. Loss Account. (1)

18 Which of the following statement is false?

. (a) At maturity, debenture holders get back their money.
(b) Debentures can be forfeited for non-payment of call money.
(c) In company’s balance sheet, debentures are shown under the head long term
borrowings
(d) Interest on debentures is a charge against profits. (1)

19 First call amount received in advance from the shareholders before it isactually called up by
. the directors is :
(a) Debited to calls-in-advance account.
(b) Credited to share allotment account.
(c) Debited to first call account.
(d) Credited to calls-in-advance account. (1)

20 Amitabh Ltd. issued 40,000, 9% Debentures of ₹100 each as collateralsecurity for a loan of
. ₹30, 00,000 taken from Indian Bank. Fill in theblanks for the journal entry for issue of
debentures as a collateral security:
Amitabh Ltd.
Journal
Date Particulars L. Dr. Cr.
F ₹ ₹

………………………….. A/c Dr. …………

To ……………….. A/c ……………..

(₹40,00,000 debentures issued as
collateral security for a loan of
₹30,00,000) (1)

21 Prepare the following items in the Balance sheet of “Like Minded VradhAasharam” as at 31st
. March, 2020

Capital fund ( 1st April, 2019) ₹10,80,0

Building fund ( 1st April, 2019) 00
Donation received for Building ₹4,80,00
10% Building Fund Investments ( 1st April, 2019) 0
Interest received on Building Fund Investments ₹6,00,00
0
₹4,80,00 (3)
0
₹48,000
Expenditure on construction of building ₹3, 60,000. The construction work is in progress and
has not yet been completed.
 OR

From the information given below, prepare Receipts and Payment Account of KilKari
Orphanage, Suratgarh for the year ending on March 31, 2020:

₹
Cash & Bank as on April 1, 2019 45,000
Subscription (including ₹8,000 for 2018-19 and 12,000 for 2020-2021) 4,70,000
12% Investments purchased on April 1, 2019) 1,50,000
Sale of old furniture (Cost ₹20,000) 5,000
General Expenses (out of which ₹2,000 is yet to be paid) 20,000
Entrance fees 15,000

22 Meenal, Sonal and Rahul are partners. After the accounts of partnership have been drawn up
. and closed, it was discovered that for the years ending 31st March 2019 and 2020, Interest on
capital has been allowed to partners @ 6% p. a. although there is no provision for interest on
capital in the partnership deed. Their fixed capitals were ₹2, 00,000; ₹1, 60,000 and
₹1, 20,000 respectively. During the last two years they had shared the profits as under:
Year Ratio
31 March 20193 : 2 : 1
31 March 20205 : 3 : 2
You are required to give necessary adjusting entry on April 1, 2020.
OR
Dolly and Sunny are in partnership sharing profits and losses in the ratio of 3:2. They decided
to admit Jaya, their manager, as a partner with effect from 1st April, 2019. Giving one-fourth
share of profits.
Jaya, while a manager, was in receipt of salary of ₹27,000p.a. and a commission of 10% of
the net profits after charging such salary and commission.
In terms of the partnership deed, any excess amount which Jaya will be entitled to receive as
a partner over the amount which would have been due to her if she continued year ended to
be the manager, would have to be personally borne by Dolly out of her share of profit. Profit
for the year ended 31st March, 2020, amounted to ₹2, 25,000, before payment of salary and
commission.
You are required to show the Profit and Loss Appropriation Account for the year ended 31st
March, 2020. (4)

23 A, B and C are partners in a firm sharing profits and losses in the ratio of 4:3:1. As per the
. terms of Partnership deed on the death of any partner, Goodwill of deceased partner was to be
valued at 50% of the net profits credited to that Partner’s Capital A/c during the last three
completed years before his death. Books are closed on 31st December each year. A died on
29th February 2020. The profits for the last five years were:

2015 - ₹60,000, 2016 – ₹97,000, 2017 – ₹1, 05,000, 2018 - ₹30,000 and 2019 –₹ 84,000.

On the date of A’s death, building was found undervalued by ₹80,000, which was to be
considered. Calculate the amount of A’s share of Goodwill in the firm and record the
adjustment Journal Entries of Goodwill and revaluation of building. The new profit sharing
 ratio between B and C will be equal. (4)

24 Prepare Income and Expenditure Account from the following particulars of Agile Club, for
. the year ended on 31st March,2020:
Receipts and Payments A/c
for the year ended on 31st March, 2020
Receipts Amount Payments Amount
(₹) (₹)
To Balance b/d 32,500 By Salaries 31,500
To Subscription By Postage 1,250
2018-19 1,500 By Rent 9,000
2019-20 60,000 By Printing and Stationery 14,000
2020-21 1,800 By Sports Material 11,500
----------- 63,300 By Miscellaneous Expenses 3,100
To Donations (Billiards table) 90,000 By Furniture (1.10.2019) 20,000
To Entrance Fees 1,100 By 10% investment
To Sale of old magazines 450 (1.10.2019) 70,000
By Balance c/d (31.3.20) 27,000
----------- -----------
1,87,350 1,87,350
----------- ----------
Additional Information:
(i) Subscription outstanding as at March 31st 2020 ₹ 16,200
(ii) ₹ 1200 is still in arrears for the year 2018-19 for subscription
(iii) Value of sports material at the beginning and at the end of the year was ₹ 3,000 and
₹ 4,500 respectively.
(iv) Depreciation to be provided @ 10% p.a. on furniture. (6)

25 On 1.4.2019, Bharat Ltd. issued 8,000, 9% debentures of ₹1,000 each at a discount of 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. The rate of tax deducted at source is 10%.

Pass necessary journal entries for the issue of debentures and debenture interest for the year
ended 31.3.2020.
OR
Pass the necessary journal entries for the issue of debentures for thefollowing transactions :
(i) Jasmine Ltd. issued 800, 9% Debentures of ₹500 each at a premiumof 20%, to the
Vendorsfor machinery purchased from them costing₹ 4, 80,000.
(ii) Lily Ltd. issued 5,000, 7% Debentures of ₹ 200 each at apremium of 5%, redeemable
at a premium of 10%.
(iii) Tulip Ltd. issued 1,000, 8% Debentures of ₹ 100 each at adiscount of 5%, redeemable
at a premium of 10%. (6)

26 Roma and Gauri were partners in a firm sharing profits in the ratio of 3:2. On March 31,
. 2020, their Balance Sheet was as follows:
 Balance Sheet of Roma and Gauri
as at March 31, 2020
Liabilities ₹ Assets ₹
Creditors 36,000 Bank 40,000
Gauri’sHusband’s Loan 60,000 Debtors 76,000
Roma’s Loan 40,000 Stock 2,00,000
Capitals: Furniture 20,000
Roma 2,00,000 Leasehold Premises 1,00,000
Gauri 1,00,000
----------- 3,00,000
----------- -------------
4,36,000 4,36,000

On the above date the firm was dissolved. The various assets were realized and liabilities
were settled as under:
(i) Gauri agreed to pay her husband’s loan.
(ii) Leasehold Premises realized ₹1, 50,000 and Debtors ₹2,000 less.
(iii) Half the creditors agreed to accept furniture of the firm as full settlement of their claim
and remaining half agreed to accept 5% less.
(iv) 50% Stock was taken over by Roma on cash payment of ₹ 90,000 and remaining stock
was sold for ₹94,000.
(v) Realisation expenses of ₹10,000 were paid by Gauri on behalf of firm.

Pass necessary journal entries for the dissolution of the firm. (6)

27 Followig is the Balance Sheet of Keshav, Nirmal and Pankaj who are partners in a firm
. sharing profits in the ratio of 2:2:1:
Balance Sheet of Keshav, Nirmal and Pankaj
as at March 31, 2020
Liabilities ₹ Assets ₹
Creditors 5,00,000 Cash at Bank 10,000
General Reserve 2,50,000 Debtors 6,00,000
Partners Loan A/sc: Less: Provision for bad debts 25,000
Nirmal-1,80,000 ----------- 5,75,000
Pankaj- 1,20,000 Stock 3,40,000
------------- 3,00,000 Land & Building 10,00,00
Capital A/cs: Advertisement Suspense A/c 0
Keshav - 5,00,000 Profit & Loss A/c 60,000
Nirmal – 3,00,000 15,000
Pankaj- 1,50,000
-------------- 9,50000
-----------
20,00,00 -----------
0 -
20,00,00
0

Nirmal retires on 1st April, 2020 on the following terms:

 (i) Stock is overvalued by ₹20,000 and land & Building are undervalued by ₹1,00,000
(ii) Provision for bad debts is to be increased to ₹30,000.
(iii) Old credit balances of Sundry creditors ₹40,000 be written back.
(iv) A computer purchased on 1st October, 2019 for ₹50,000 debited to office Expense
Account is to be brought into account charging depreciation @ 20% p.a.
(v) Goodwill of the firm is valued at ₹1, 50,000 and the amount due to Nirmal be adjusted
in the capital Account of Keshav and Pankaj.

Prepare the Revaluation Account, Capital Accounts and the new Balance Sheet.

OR

X & Y are partners in a firm sharing profits in the ratio of 3:2. On 31st March 2020, their
Balance Sheet was as follows:
Balance Sheet

Liabilities ₹ Assets ₹
Creditor 70,000 Bank 40,000
Capital A/cs: Debtors 1,20,000
X 1,50,000 Stock 60,000
Y 80,000 Furniture 50,000
------------ 2,30,000 Goodwill 30,000
----------- ---------
3,00,000 3,00,000

On the above date Z is admitted as a partner. X surrendered 1/6th of his share and Y 1/3rd of
his share in favour of Z. Goodwill is valued at ₹1, 20,000. Z brings in only ½ of his share of
goodwill in cash and ₹1, 00,000 as his capital. Following adjustments are agreed upon:
(i) Stock is to be reduced to ₹56,000 and furniture by ₹5,000
(ii) There is an unrecorded asset worth ₹20,000.
(iii) One month’s rent of ₹15,000 is outstanding.
(iv) A creditor for goods purchased for ₹10,000 had been omitted to be recorded although
the goods had been correctly included in stock.
(v) Insurance premium amounting to ₹8,000 was debited to P&L A/c, of which ₹2,000 is (8)
related to the period after 31st March 2020.

Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of the new firm.

28 Sohan Limited invited applications for issuing 5, 00,000 Equity shares of ₹10 each payable at
. a premium of ₹10 each payable with Final call. Amount per share was payable as follows:
On Application ₹2
On Allotment ₹3
On First Call ₹2
On Second & Final Call Balance

Applications for 8, 00,000 shares were received. Applications for 50,000 shares were rejected
and the application money was refunded. Allotment was made to the remaining applicants as
follows:
 Category Number of Shares Applied Number of Shares Allotted
I 2, 00,000 1,50,000
II 5,50,000 3,50,000

Excess application money received with applications was adjusted towards sums due on
allotment. Balance, if any was adjusted towards future calls. Sid, a shareholder belonging to
category I, to whom 1,500 shares were allotted, paid his entire share money with allotment.
Manas belonging to category II, who had applied for 11,000 shares failed to pay ‘Second &
Final Call money’. Manas’s shares were forfeited after the final call. The forfeited shares
were reissued at ₹10 per share as fully paid up.
Assuming that the company maintains “Calls in Advance Account” and “Calls in Arrears
Account”, pass necessary Journal entries for the above transactions in the books of Soham
Limited.
OR

Swadeshi Ltd. invited applications for issuing 75,000 equity shares of ₹100 each at a
premium
of ₹30 per share. The amount payable as follows:
On Application and Allotment – ₹85 per share (including premium)
On first and Final Call – the balance amount

Application for 1, 27,500 shares were received. Application for 27,500 shares were rejected
and shares were allotted on pro-rata basis to the remaining applicants. Excess money received
on Application and Allotment was adjusted towards sums due on first and final call. The calls
were made. A shareholder, who applied for 1,000 shares, failed to pay first and final call
money. His shares were forfeited. All the forfeited shares were reissued at ₹150 per share
fully paid up.

Pass necessary journal entries for the above transactions in the books of Swadeshi Ltd (8)