12 Accountancy Sp01

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Class 12 - Accountancy
Sample Paper 01
Maximum Marks: 40
Time Allowed: 90 minutes
General Instructions:
Read the following instructions very carefully and strictly follow them:
1. This question paper comprises three PARTS – I, II and III. There are 69 questions in the question paper.
2. Part - I -is compulsory for all candidates.
3. Part - II Analysis of Financial Statement
4. There is an internal choice provided in each Sections.
I. Part-I, contains three Sections -A, B and C. Section A has questions from 1 to 18 and Section B has
questions from 19 to 36, you have to attempt any 15 questions each in both the sections.
II. Part I, Section C has questions from 37 to 41. You have to attempt any four questions.
III. Part II, contains two Sections – A and B. Section A has questions from 42 to 48, you have to attempt any
five questions and Section B has questions from 49 to 55, you have to attempt any six questions.
5. All questions carry equal marks. There is no negative marking.
6. Specific Instructions related to each Part and subdivisions (Section) is mentioned clearly before the
questions. Candidates should read them thoroughly and attempt accordingly.
Part - I (Section - A)
1. Calculate interest on drawings, if owner withdrew the following amounts as follows Jan.31 Rs. 6,000,
Mar.31 Rs.4,000, July 1 Rs.8,000, Sep. 30 Rs.3,000, 1 Nov, Rs.5,000. Accounts are closed on 31st December
every year and rate of interest on drawings is 10% p.a.
a. ₹1,418.33
b. ₹1,408.33
c. ₹1,418.93
d. ₹1,408.93
2. Hari and Mohan are partners in the ratio 3:2. On 1st April 2015, they admitted John as a new partner
with share in the profit of the firm. Find out the sacrifice or gain of Mohan.
a. Mohan’s Sacrifice
b. Mohan’s Sacrifice
c. Mohan’s Gain
d. Mohan’s Gain
3. When partners accounts are fixed where the drawings will be recorded?
a. Neither in Current account nor in Capital account
b. Capital account
c. Both Current account and Capital account
d. Current account
4. Which of the following is not a method of valuing goodwill?
a. Discounted Cash Flow Method
b. Average Profit Method
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c. Super Profit Method

d. Capitalisation Method
5. Which of the following is not debited to the old partners’ capital/current accounts at the time of
admission?
a. Advertisement Suspense
b. Preliminary Expenses
c. Deferred Revenue Expenditure
d. Prepaid Expenses
6. Any change in the relations of partners without affecting the existing of a partnership firm is called
________.
a. Reassessment
b. Revaluation
c. Retirement
d. Reconstitution
7. Total assets of a firm including fictitious assets of ₹ 5,000 are ₹ 85,000. Liabilities of the firm are ₹
30,000. The normal rate of return is 10% and the average profit of the firm is ₹ 8,000. Calculate
goodwill as per the capitalisation of super profit.
a. None of these
b. ₹ 30,000
c. ₹ 25,000
d. ₹ 20,000
8. Premium brought by the new partner will be shared by the existing partners in:
a. Sacrificing Ratio
b. Old Ratio
c. New Ratio
d. Gain Ratio
9. Business showed that the capital employed on January 1, 2007 was Rs. 4,50,000 and the profits for the
last five years were as follows: 2007-Rs. 40,000; 2008 -Rs.50,000; 2009- Rs. 60,000; 2010 -Rs. 70,000 and
2011 -Rs.80,000.You are required to find out the value of goodwill, based on three year's purchase of the
super profit of the business given that the normal rate of return is 10%.
a. Rs. 46000
b. Rs. 42000
c. Rs. 45000
d. Rs. 40000
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10. X,Y and Z shared profits and losses in the ratio of 3:2:1 respectively. With effect from 1st April 2012
they agreed to share profits equally. The goodwill of the firm was valued at ₹18000.What will be the
entry when goodwill A/c is adjusted
a.
Goodwill A/cDr. 18000
To X’s Capital A/c 6000
To Y’s Capital A/c 1000
To Z’s Capital A/c 3000
b.

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c.
d.
Z’s Capital A/c Dr.

3000
To X’s Capital A/c
3000
11. Which of the following account is prepared at the time of admission of a new partner?
a. Goodwill Account
b. Fictitious Assets Account
c. Revaluation Account
d. Realisation Account
12. At the time of the increase in the value of assets which account should be debited while preparing
Revaluation Account?
a. Realisation A/c
b. Revaluation A/c
c. Asset A/c
d. Partners’ Capital A/c
13. Goodwill is recorded in the books only when:
a. Goodwill is self generated
b. A partner retires
c. It is sold
d. Money or money worth is paid for it
14. Section ________ of the Indian Partnership Act provides that a new partner shall not be inducted into a
firm without the consent of all existing partners.
a. 31
b. 32
c. 33
d. 30
15. X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. They decide to share future profits in the
ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of following
revaluations without affecting the book values of assets and liabilities, by passing an adjusting entry:
Book Values (₹) Revised Values (₹)
Land and Building 3,00,000 4,50,000
Plant and Machinery 4,50,000 4,20,000
Trade Creditors 1,50,000 1,35,000
Outstanding Rent 1,35,000 1,80,000

The necessary adjustment entry will be:

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a. Dr. Y and Cr. X by ₹27,000

b. Dr. Z and Cr. X by ₹27,000
c. Dr. X and Cr. Y by ₹27,000
d. Dr. X and Cr. Z by ₹27,000
16. In the situation of ________, a company do not reject any application to applicants.
a. Over-subscription
b. Forfeiture of shares
c. Under subscription
d. Partly paid shares are issued
17. Why did new partner need to bring goodwill?
A. To compensate the sacrificing partners
B. To compensate the old partners for their gain share
C. For Revaluation Account
a. (A)
b. Both (A) and (B)
c. (C)
d. (B)
18. Specify the rate of interest to be used on calls in arrear as per the TABLE - F.
a. 20% p.a.
b. 26 % p.a.
c. 10% p.a.
d. 16% p.a.
Part - I (Section - B)
19. Goodwill given in the old Balance Sheet will be:
a. Credited to old Partners Capital accounts
b. Written off to the old partners
c. Written off by the Sacrificing partners
d. Distributed by Gainer partners
20. A and B are partners in a firm sharing profits in the ratio of 5 : 3. They admit C as a new partner for
share. New Ratio will be 4 : 2 : 1. Sacrificing ratio will be:
a. 3 : 5
b. 4 : 2
c. 3 : 2
d. 5 : 3
21. Share Application Account is in the nature of:
a. None of these
b. Real Account
c. Personal Account
d. Nominal Account
22. Assertion (A): Partner will not need to pay some amount out of his share of profit to another partner
in case of a guarantee.
Reason (R): When there is a sufficient amount of profit.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
23. When will following journal entry be recorded?

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Share Applications A/c ... Dr.

To Bank A/c
a. When Application money is received
b. When Applicants gives whole amount
c. When Application money is refunded
d. When Full amount is received on application
24. Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5th share in the
profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all
adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was:
a. ₹ 27,500
b. ₹ 55,000
c. ₹ 22,000
d. ₹ 28,000
25. 20,000 shares having face value Rs.10. Shares are issued for public subscription at a premium of 10%.
The full amount was payable on application. Applications were received for 30,000 shares and pro-rata
allotment was made. Find the amount to be adjusted in securities premium?
a. 1,00,000
b. 10,000
c. 30,000
d. 20,000
26. Assertion (A): When reserves and accumulated profits/losses are adjusted through capital accounts,
they appear in the balance sheet of the new firm at the old figures.
Reason (R): If partners decide to record the net effect of reserves, etc, a single adjusting entry involving
the capital accounts of sacrificing and gaining partners is passed.
27. Where will you record premium received on issue of equity shares in the balance sheet?
a. Long term Borrowings
b. Current liabilities
c. Share Capital
d. Reserves and Surplus
28. When a product plays important role in increasing the goodwill of the firm, what factor is mainly
responsible for that?
a. Efficiency of Management
b. Quality of product.
c. Favourable Contracts
d. Market Situation
29. Share Forfeiture account is a ________.
a. Nominal Account
b. Fictitious Account
c. Personal Account
d. Real account
30. ________ Shareholders have the right to receive arrears of dividend before the dividend is paid to the
equity shareholders.
a. Redeemable Preference Shares

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b. Cumulative Preference Shares

c. Only Convertible Shares
d. Non cumulative preference Shares
31. Assertion (A): Equity shares are those shares that do not preference shares.
Reason (R): Equity shares are the least issued class of shares and carry the minimum risks and
rewards of the business.
32. What should be deducted from subscribed share capital while preparing notes to account in the
balance sheet.
a. Paid-up value of shares
b. Calls-in-advance
c. Calls-in-arrears
d. Share Forfeiture A/c
33. The admission of a new partner is ________ of a partnership firm.
a. None of these
b. merger
c. reconstitution
d. dissolution
34. Arrange the following Stages of Incorporation of company in the correct order.
A. Promotion
B. Capital subscription
C. Incorporation
D. Commencement of business
a. D, A, C, B,
b. A, C, B, D
c. A, B, C, D
d. A, C, D, B
35. When partners decide to record the net effect of revaluation of assets and liabilities, a single adjusting
entry involving the ________ of gaining partners’ and sacrificing partner is passed.
a. Revaluation account
b. Profit and loss account
c. Capital/current Account
d. Balance sheet
36. What is the alternative name of Authorized share capital?
a. Paid-up capital
b. Issued capital
c. Subscribed capital
d. Nominal Capital
Part - I (Section - C)
Question No. 37 to 38 are based on the given text. Read the text carefully and answer the
questions:
Batra Ltd. issued 20,000 shares of ₹ 100 each at a premium of ₹ 25 per share, payable as follow

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₹ 20 per share on application

₹ 45 per share on the allotment (including premium of ₹ 15 )
₹ 60 per share on first and final call (including premium of ₹ 10)
The issue was over subscribed by 10,000 shares. Applicants of 8,000 shares were allotted only 1,000
shares and applicants of 1,000 shares were sent letters of regret. The excess amount received at the
time of application was to be adjusted only against allotment and overpayments exceeding the amount
due on allotment were to be refunded. All the money at the time of allotment and call was duty
received.
37. What is an excess amount received along with application money adjusted with allotment?
a. ₹ 59,000
b. ₹ 95,000
c. ₹ 85,000
d. ₹ 58,000
38. What is amount received on allotment?
a. ₹ 9,00,000
b. ₹ 8,15,000
c. ₹ 8,00,000
d. ₹ 9,15,000
Question No. 39 to 41 are based on the given text. Read the text carefully and answer the
questions:
X and Y are two partners in a firm sharing profit and losses in the ratio of 3 : 2. At the time of
distributing the net profit between the partners, interest on capital was credited 18% instead of 8
% wrongly. Partners' capitals are given on 1st April 2018 as
₹ 5,00,000 and ₹ 3,00,000 respectively. Profit on 31st March 2019 is ₹ 2,00,000.
39. The excess interest on capital provided to X, which should be debited now is ₹ ________.
a. 30,000
b. 90,000
c. 40,000
d. 50,000
40. The excess interest on capital provided to Y, which should be debited now is ₹ ________.
a. 24,000
b. 50,000
c. 54,000
d. 30,000
41. The aggregate excess profit generated to distribute further is ₹ ________.
a. 64,000
b. 1,44,000
c. 1,20,000
d. 80,000
Part - II (Section - A)
42. Assertion (A): While preparing Notes to Accounts on Share Capital. Calls-in-Arrears is shown by way of
deduction from the Subscribed Capital (Subscribed but not fully paid-up).
Reason (R): As per the Companies Act, 2013, Part I of the Schedule III. Calls in Arrears is the other
current asset of the company.

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43. Deferred Tax Liabilities are shown under:
a. Current Liabilities
b. Reserves and Surplus
c. Non-current Liabilities
d. Shareholders Funds
44. Comparative financial analysis process shows the comparison between the items of which statement:
a. Balance Sheet
b. Both balance sheet and profit and loss statement
c. Profit & Loss Statement
d. None of these
45. From the following, which formula is correct for computing Gross Profit Ratio:
a.
b. x =
c.
d.
46. Computer Software is classified under:
a. Long term borrowings
b. Fixed Intangible Assets
c. Fixed tangible Assets
d. Current Liabilities
47. The most commonly used tools for financial analysis are:
a. Accounting Ratios
b. Comparative Statements
c. Common-size Statement
d. All of these
48. Which of the following is a liquidity ratio?
a. Quick ratio
b. Inventory turnover
c. P/E- ratio
d. Equity multiplier
Part - II (Section - B)
49. Which of the following is not a limitation of analysis of financial statements?
a. Price level changes ignored
b. Intra firm comparison possible
c. Subjectivity
d. Window Dressing
50. The definition, The term accounting ratio is used to describe significant relationship which exist
between figures shown in a balance sheet, in a profit and loss account, in a budgetary control system or
in a any part of the accounting organization is given by

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a. Lord Keynes
b. J. Betty
c. Biramn and Dribin
d. None of these
51. When analysis is made on the basis of Published statements, reports and information it is known as…..
a. Horizontal analysis
b. Internal Analysis
c. External analysis
d. Vertical Analysis
52. Assertion (A): Current ratio is computed to assess the short-term financial position of the enterprise.
Reason (R): Current ratio explains the relation between long-term assets and current liabilities of a
business.
53. Assertion (A): Inter-firm analysis is a comparison of financial statements of an enterprise for two or
more accounting periods.
Reason (R): Time series analysis is conducted to determine the trend of different financial variables
over a period of time.
54. The Current Ratio is =
a.
b.
c.
d.
55. Loose Tools are shown under:
a. Cash and Cash Equivalents
b. Trade Receivables
c. Other Current Assets
d. Inventories

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Class 12 - Accountancy
Sample Paper 01
Solution
Part - I (Section - A)
1. (b) ₹1,408.33
Explanation: When amounts are different for each drawing and dates of drawings are also different,
in such a case Product method should be used to calculate the interest on drawings:
Amount (A) Months (B) Products (A B)
6,000 11 66,000
4,000 09 36,000
8,000 06 48,000
3,000 03 9,000
5,000 02 10,000
Interest on drawings Charged During the year = Total products Rate of Drawing
= Rs.1,69,000 = Rs.1,408.33
2. (b) Mohan’s Sacrifice
Explanation: Calculation of Mohan’s Sacrifice/gain will be:
Old Ratio = 3:2
New Ratio = 3:2:1
Sacrificing Ratio = 3:2
Sacrifice ratio = Old ratio - New ratio
Sacrifice of Hari = - =
Sacrifice of Mohan = - =
3. (d) Current account
Explanation: When capitals are fixed, we prepare two accounts (i) Partner’s fixed capital account and
(ii) Partner's Current Account. In the capital account, only capitals are shown with additional capital
and withdrawn of capital (if any). In current, all items are recorded except capitals i.e. Interest on
capital, profit, drawings, interest on drawings, salary, commission, the share of profit etc.
4. (a) Discounted Cash Flow Method
Explanation: Discounted Cash Flow Method
5. (d) Prepaid Expenses
Explanation: At the admission of a new partner, all accumulated profits/reserves and fictitious assets
will be transferred to the old partners’ capital/current account (in case of Fixed capital A/c) in their old
profit sharing ratio. Prepaid expenses cannot be distributed among the old partners.
6. (d) Reconstitution
Explanation: Any change in the relationship of partners amounts to the reconstitution of the
partnership firm. A change in the partnership agreement brings to an end the existing agreement and a
new agreement comes into being. This new agreement changes the relationship between the
partners of the partnership firm. Hence, whenever there is a change in the partnership agreement, the

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firm continues but it amounts to the reconstitution of the partnership firm, in which some partners get
the benefit and some gets loss.
7. (b) ₹ 30,000
Explanation: ₹ 30,000
8. (a) Sacrificing Ratio
Explanation: When a new partner is admitted into the partnership firm, then he brings some amount
of premium for goodwill which will be shared/distributed by the sacrificing partners in their sacrificing
ratio.
Sacrificing ratio = Old ratio - New ratio
9. (c) Rs. 45000
Explanation: To Calculate the value of goodwill following steps are required:
1. Average Profit = 40,000 + 50,000 + 60,000 + 70,000 + 80,000 = 3,00,000/5 = 60,000
2. Normal Profit = Capital Employed × Rate/100 i.e. 4,50,000 × 10/100 = 45,000
3. Super Profit = 60,000 – 45,000 = 15,000
4. Goodwill = 15,000 × 3 = 45,000
10. (d)
Z’s Capital A/c Dr. 3000
Explanation: Adjustment of Goodwill at the time change in profit sharing ratio:
Formula : Old Share – New Share X = 3/6 – 1/3 = 1/6 Sacrifice Y = 2/6 – 1/3 = No Sacrifice/ No Gain Z = 1/6 -
1/3 = 1/6 Gain
11. (c) Revaluation Account
Explanation: At the time of admission of a new partner, all assets will be revalued and liabilities will
be re-assessed. For this purpose, Revaluation Account is prepared and profit or loss calculated on this
account will be shared by the old partners in their old profit sharing ratio. Realisation account,
Goodwill account, Fictitious Assets Account are not prepared at the time of admission of a partner only
Revaluation Account is prepared.
12. (c) Asset A/c
Explanation: At the time of preparation of Revaluation Account, an increase in the value of the asset is
to be shown in the debit side of Revaluation Account. Hence, the following entry will take place:
Asset A/c ... Dr.
To Revaluation Account.
Because Assets increases hence it should be debited.
13. (d) Money or money worth is paid for it
Explanation: As per Accounting Standard (AS) - 26: Goodwill is recorded in the books of accounts only
when some money or money’s worth is paid for it. It means only purchased goodwill is recorded in the
books and self-generated goodwill is just a part of the calculation, which is not shown in the balance
sheet of a business firm.
14. (a) 31
Explanation: Section 31 of the Indian Partnership Act,1932 provides that a new partner shall not be
admitted into a firm without the consent of all existing partners. The consent of all the existing
partners is required for admission of a new partner into the partnership firm.
15. (b) Dr. Z and Cr. X by ₹27,000
Explanation: To get the adjustment entry done, first need to find out the profit /loss on revaluation.
Since books of account are not to be affected due to revaluation, hence an adjustment entry need to be
passed:

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Revaluation difference can be calculated as:

Particulars Book Values (₹) Revised Values (₹) Gain/Loss
Land and Building 3,00,000 4,50,000 150000
Plant and Machinery 4,50,000 4,20,000 -30000
Trade Creditors 1,50,000 1,35,000 15000
Outstanding Rent 1,35,000 1,80,000 -45000
Net Gain on Revaluation 90000
Share on revaluation: X Y Z
As per old Ratio 45000 27000 18000
As per New Ratio 18000 27000 45000
Sacrifice/Gain 27000 NIL -27000
adjustment entry will be passed:

Z's A/c ... Dr. 27,000
To X's A/c 27,000
(being adjustment entry made)
16. (c) Under subscription
Explanation: Under subscription is a situation where a number of shares applied are less than the
shares offered for the subscription. In this case, normally companies do not reject any application and
all shares are accepted.
17. (a) (A)
Explanation: A new partner (at the time of his admission) will bring some extra amount with capital
which is known as premium for goodwill. This amount will be given to the sacrificing partners for their
sacrifice in favour of him because sacrificing partner sacrifice his share to a new partner. It will be
distributed in old ratio.
18. (c) 10% p.a.
Explanation: As per the Companies Act, 2013, when Table F is followed by the company, the rate of
interest on calls in arrear should not exceed 10% p.a. When any shareholder fails to pay the amount
due on the allotment or on any of the calls, such amount is known as 'Calls-in-Arrears'/'Unpaid Calls'.
Interest at a rate 10% shall have to be paid on Calls-in-arrears for the period from the day fixed for
payment and the time of actual payment thereon. Table F applies when an article of association is
silent.
Part - I (Section - B)
19. (b) Written off to the old partners
Explanation: Goodwill existing in the old balance sheet of a partnership firm before admitting a new
partner will be written off to the capital accounts of the old partners in their old profit sharing ratio.
This Goodwill belongs to old partners only.
20. (a) 3 : 5
Explanation: Calculation of sacrificing ratio of partners:
Old Ratio = 5:3
New Ratio = 4:2:1
Sacrificing ratio = Old ratio - New ratio

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Sacrificing ratio of A : - =
Sacrificing ratio of B = - =
21. (c) Personal Account
Explanation: Share Application or share allotment or Share capital A/c all are personal accounts as
they represent money from the shareholders and when money is due, these are to be debited because
of the rule "Debit the receiver".
22. (a) Both A and R are true and R is the correct explanation of A.
Explanation: In the case of guarantee, the partner will not need to pay some amount out of his profit to
another partner when there is a sufficient amount of profit earned by the partnership firm.
23. (c) When Application money is refunded
Explanation: When a company reject some applications and refund the money received on the same,
following journal entry will take place:
Share Applications A/c .. Dr.
To Bank A/c
(Being Application money refunded)
24. (a) ₹ 27,500
Explanation: The correct answer is ₹ 27,500.
Working Notes:
Farad’s share of profit =
Let total share of profit be = 1
Remaining Profits = (1 - ) =
Disha’s New Share = ( ) =
Abha’s New Share = ( ) =
New ratio = 2 : 2 : 1
For share partner’s capital = ₹ (64,000 + 46,000) = ₹ 1,10,000
For 1 whole share of profit capital = ₹ (1,10,000 )
For th share Farad’s Capital = ₹ (1,10,000 ) = ₹ 27,500
25. (d) 20,000
Explanation: Security premium amount = 10 10%= 1
Amount to be adjusted in securities premium ₹20,000.
i.e. 20,000 Shares × Premium ₹1 = 20,000
26. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct explanation of A.
27. (d) Reserves and Surplus
Explanation: The amount received as premium on issue of equity shares will be shown in the balance
sheet under the heading of reserves and surplus. This premium is used to write off preliminary
expenses, issue of bonus shares etc.
28. (b) Quality of product.
Explanation: A firm producing qualitative products can easily have name and fame in the market.
This lead to increase in the value of goodwill. The business firms which enjoys good commercial
reputation for the quality of their products, they have a high value of goodwill.
29. (a) Nominal Account
Explanation: All accounts which are prepared for the calculation of profit or loss are nominal
accounts. Rule related to the nominal account is Debit all expenses and losses and credit all gains.
30. (b) Cumulative Preference Shares

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Explanation: A preference share whose annual fixed-rate dividend, if it cannot be paid in any year,
accrues until it can. It is paid first after that dividend is paid by equity shareholders.
31. (c) A is true but R is false.
Explanation: Equity shares are the most commonly issued class of shares and carry the maximum
risks and rewards of the business.
32. (c) Calls-in-arrears
Explanation: If a shareholder does not pay call amount due on the allotment or any calls then amount
not received is known as call in arrears. Calls in arrears are shown by way of deduction from
subscribed not fully paid-up capital while preparing notes to the account of share capital.
33. (c) reconstitution
Explanation: Admission of a new partner is reconstituted the partnership firm. It means it is the end
of the old partnership and the beginning of a new partnership among the partners. It does not mean
the end of the firm. Reconstitution of a partnership firm may be due to Admission of partners, the
retirement of a partner, death of partners.
34. (b) A, C, B, D
Explanation: The Correct order is:
(A) Promotion-idea developed in the mind of promoters for the building of the company.
(C) Incorporation or registration - completion of documentation and legal formalities to start a
company.
(B) Capital Subscription- the issue of shares for public subscription and thus generate capital.
(D) Commencement of business- on successful completion of all the requirements and subscription of
share capital by the public, the company finally gets a certificate of commencement of business.
35. (c) Capital/current Account
Explanation: When only the net effect of revaluation is recorded by doing a single Adjustment entry,
in such a case partners’ capital or current account will be involved for the adjustment. The net effect of
revaluation will be adjusted in their gaining or sacrificing ratio. Gainer partner will be debited by his
gain share in revaluation profit or loss and sacrificing partner will be credited by his sacrificing share.
So that effect is adjusted.
36. (d) Nominal Capital
Explanation: The authorised capital is also known as nominal capital. It refers to that amount which is
stated in the Memorandum of Association. It is the maximum capital company can issue.
Part - I (Section - C)
37. (c) ₹ 85,000
Explanation: ₹ 85,000
38. (b) ₹ 8,15,000
Explanation: ₹ 8,15,000
39. (d) 50,000
Explanation: 50,000
40. (d) 30,000
Explanation: 30,000
41. (d) 80,000
Explanation: 80,000
Part - II (Section - A)
Explanation: A is true but R is false.
43. (c) Non-current Liabilities
Explanation: According to the Balance Sheet format given in the Indian Companies Act, 2013 Deferred

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Tax Liabilities are shown under the heading of Non-Current Liabilities under subheading Deferred Tax
Liabilities.
44. (b) Both balance sheet and profit and loss statement
Explanation: Comparative financial analysis shows comparison between the balance sheet and the
profit and loss statement.
45. (d)
Explanation: The gross profit percentage formula is calculated by subtracting cost of goods sold from
total revenues and dividing the difference by total revenues.
Gross Profit Percentages =
46. (b) Fixed Intangible Assets
Explanation: According to the Company's Balance Sheet Format, Computer Software is a Non-Current
Assets as fixed intangible Assets. Because It does not have a physical substance.
47. (d) All of these
Explanation: All the options are correct.
48. (a) Quick ratio
Explanation: Quick Ratio is also known as liquid ratio. Formula: Liquid Assets/ Current Liabilities
Part - II (Section - B)
49. (b) Intra firm comparison possible
Explanation: Intra firm comparison is not a limitation.
50. (b) J. Betty
Explanation: J. Betty
51. (c) External analysis
Explanation: Analysis made by external users on the basis of published financial statements is called
external analysis. Only an external user may have to use published statements; an internal user has
access to all accounting records, he would not have to depend on and wait for the information to be
published and they can do internal analysis throughout the year.
Explanation: Current ratio explains the relation between current assets and current liabilities of a
business.
53. (d) A is false but R is true.
Explanation: Intra-firm analysis is a comparison of financial statement of an enterprise for two or
more accounting periods.
54. (c)
Explanation: Current Ratio is calculated by:
55. (d) Inventories
Explanation: Loose Tools is the part of Inventories as it is for sale purpose. It is a part of Inventories.

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myCBSEguide

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c. Super Profit Method

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To X’s Capital A/c 6000

Z’s Capital A/c Dr.

Land and Building 3,00,000 4,50,000

Plant and Machinery 4,50,000 4,20,000

Trade Creditors 1,50,000 1,35,000

Outstanding Rent 1,35,000 1,80,000

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a. Dr. Y and Cr. X by ₹27,000

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Share Applications A/c ... Dr.

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b. Cumulative Preference Shares

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₹ 20 per share on application

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a. Both A and R are true and R is the correct explanation of A.

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Revaluation difference can be calculated as:

Land and Building 3,00,000 4,50,000 150000

Plant and Machinery 4,50,000 4,20,000 -30000

Trade Creditors 1,50,000 1,35,000 15000

Outstanding Rent 1,35,000 1,80,000 -45000

Net Gain on Revaluation 90000

As per old Ratio 45000 27000 18000

As per New Ratio 18000 27000 45000

Sacrifice/Gain 27000 NIL -27000

adjustment entry will be passed:

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