DELHI PUBLIC SCHOOL, HYDERABAD

COMPETENCY ENHANCER DATE-07.06.2021

Class : XII Time : 1 hr
Subject : Accountancy Marks : 30
Instructions:
 This paper has two sections
 Section A are very short answer type questions carrying 1 Mark each
 Section B comprises of 3M, 4 M and 6M questions
 Proper formats to be followed wherever required.
Section A
1. How much amount will be shown in Income & Expenditure Account in the following
case:
Particulars As at 31-3-2018 As at 31-3-2019
Unpaid for Medicines 8400 5100
Stock for Medicines 15200 24300
Payment made for medicines during 2018-19 was Rs.1,44,000. 1
2. What is meant by “mutual agency” in case of partnership? 1
3. Subscription received by a school for organising Annual function is treated as:
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) Earned Income 1
4. What is meant by ‘Endowment Fund’? 1
5. Chhavi and Neha were partners in a firm sharing profits & losses equally. Chhavi
withdrew a fixed amount of Rs.6,000 at the beginning of each quarter. Interest on
drawings is charged @6%p.a. Pass necessary Journal Entry for charging Interest on
drawings at the end of the year. 1
6. Receipt from sale of old assets are treated as income. (True/False) 1
7. X and Y are partners sharing profits in the ratio of 3:2. Their capitals are Rs.2,00,000
Rs.1,00,000 respectively. Interest on Capital is allowed @8%p.a. Firm earned a profit of
Rs.15.000 for the year ended 31st March 2019. Interest on capital will be:
A) X Rs.16,000; Y Rs.8,000 B) X Rs.9,000; Y Rs.6,000
C) X Rs.10,000; Y Rs.5,000 D) No interest will be allowed 1
8. A,B,C and D are partners. A,B and C desire that D should not participate in the conduct
of the business of the firm. Can they prevent D? 1
9. Give the accounting entry for an unrecorded asset in case of reconstitution of a
partnership firm. 1

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10. The average profits of the business over the last five years amounted to Rs.60,000. The
normal commercial yield on capital invested in such a business is Rs.5,00,000. Amount
of goodwill, if it based on 3 years purchase of last 5 years super profits will be:
A) Rs.1,00,000 B) Rs.1,80,000
C ) Rs.1,30,000 D) Rs.1,50,000 1
11. A and B are in partnership sharing profits & losses in the ratio of 3:2. They admit C into
Partnership with 1/5th share which he acquires equally from A & B. New Profit sharing
Ratio will be _________________. 1
12. When New partner does not bring his share of goodwill in cash, goodwill account is
debited. (True/ False) 1
13. At the time of admission of a partner, Advertisement Suspense A/C appearing in
Balance Sheet will be transferred to _____________________. 1
14. A, B and C are partners sharing in the ratio of 5:4:3. They admit D for 1/7 th share. It is
agreed that B would retain his original share sacrificing ratio will be:
A) A, B and C – 5:4:3 B) A and C 4:3
C ) A and C 5:4 D) A and C 5:3
15. Goodwill of a firm of A and B is valued at Rs.30,000. It is appearing in the books at
Rs.12,000. C is admitted for 1/4th share. What amount he is supposed to bring for
goodwill? 1
16. On retirement of a partner, Creditors of Rs.20,000 not likely to be claimed will be
______________ to Revaluation A/c. 1
17. Increase in Provision for Doubtful Debts is a gain for the firm. ( True/ False) 1
18. Retiring partner is compensated for parting with the firm’s future profits in favour of
remaining partners. The remaining partners contribute to such compensation amount in:
A) Gaining Ratio B) Capital Ratio
C ) Sacrificing Ratio D) Profit Sharing Ratio
19. X,Y and Z are partners sharing profits in the ratio of 4:2:1. Z retires. X and Y take Z’s
share equally. New Profit sharing ratio will be______________. 1
20. On dissolution of a firm, what payment is made first from the personal assets of a
partner? 1
21. Give Journal entry for the treatment of partner’s loan appearing on the assets side of the
Balance Sheet on dissolution of a partnership firm. 1
22. On dissolution of a firm, partners’ capital account balance was Rs.63,000, creditors
balance was Rs.12,000 and Profit & Loss account debit balance was Rs.6,000, Profit on
realisation of assets was Rs.7,800. Total amount realised from assets was:
A) Rs.81,000 B) Rs.76800 C)Rs. 70800 D) None 1
23. A retiring partner is entitled to have a share in the goodwill of the firm. (True/False) 1
24. Give one distinction between ‘Dissolution of Partnership’ and ‘Dissolution of
Partnership Firm’. 1
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25. There was a contingent liability for B/R received from Ashok for Rs.20,000 and
discounted with the bank. Ashok became insolvent and 75 paisa in a rupee were
received from his estate. How much amount will be debited or/ and credited to
Realisation Account? 1
26. In case an operating cycle cannot be identified, it is assumed to have a duration of
________________ months. 1
27. List any one objective of analysing the Financial Statements. 1
28. Give any one difference between Horizontal analysis and Vertical analysis. 1
29. Financial Analysis considers price level changes. (True/False) 1
30. Gross Profit-Operating and Non Operating Expenses is _____________________. 1

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