SAMPLE PAPER-ACCOUNTANCY

GRADE 12

1. A, B and C are partners in a firm having no partnership agreement. A, B and C contributed 1

Rs. 2,00,000, Rs. 3,00,000 and Rs. 1,00,000 respectively. A and B desire that the profits
should be divided in the ratio of Capital contribution. C does not agree to this. How will
you settle the dispute?

2. Calculate the interest on drawings of Mr. Siddanth @ 10% p.a for the year ended 31st 1
March 2017 if he withdrew Rs.6000 at the end of each quarter.

3. Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3 with the capitals 1
of Rs 5,00,000 and Rs 6,00,000 respectively. On 1st Jan 2016 Sohan and Mohan granted
loans of Rs. 20,000 and Rs 10,000 respectively to the firm. Show the distribution of profit
and losses for the year ended 31st March 2016 if the loss before interest for the year
amounted to Rs 2,500

4. Distinguish between Purchased Goodwill and Self-generated Goodwill. 1

5. A, B and C were partners sharing profits in the ratio 5:3:2. They decided to change the 1
profit sharing ratio to 3:2:5. For this purpose, Goodwill was valued at Rs 40,000. There
existed a debit balance of 10000 in the profit and loss account. Contingency Reserve
account stood at 10,000. Pass the journal entry if balance sheet is not to be disturbed.

6. Ram and Shyam are partners. Saba is admitted for ¼th share. What is the ratio in which 1
Ram and Shyam will sacrifice their share in favour of Saba?

7 R, S & T are partners in a firm sharing profit & loss in the ratio of 2:2:1. T Retires and his 1
balance in capital a/c after adjustment for reserve & revaluation of assets & liabilities
comes out to be Rs.50000. R & S agree to pay him Rs.60000. Give journal entry for the
adjustment of goodwill.

8 Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 1
3:2:2. On 23rd January 2015 Verma died. Verma’s share of profit till the date of his death
was calculated at ` 2,350. Pass necessary journal entry for the same in the books of the
firm.

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9 A, B and C are partners in a firm. They have omitted interest on capital at 10% p.a. for 3 3
years ended 31st March, 2007. There fixed Capitals on which interest was to be calculated
throughout were:

A 1,00,000
B 80,000
C 70,000

Give the necessary Adjusting Entry with working notes.

10 Kumar, Gupta and Kavita were partners in a firm sharing profits and losses equally. 3
The firm was engaged in the storage and distribution of canned juice and its warehouses
were located at three different places in the city. Each warehouse was being managed
individually by Kumar, Gupta and Kavita. Because of increase in business activities at the
warehouse managed by Gupta, he had to devote more time. Gupta demanded that his share
in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit
sharing ratio was agreed to be 1: 2:1. For this purpose the goodwill of the firm was valued
at two years purchase of the average profits of last five years. The profits of the last five
years were as follows:-
Year Profit
`
I 4,00,000
II 4,80,000
III 7,33,000
IV (Loss) 33,000
V 2,20,000
You are required to:
Calculate the goodwill of the firm.

11 A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. 3
Two new partners D and E are inducted. The profits are now to be shared in the 3 : 4 : 2 : 2
:1 respectively D is to pay Rs. 30,000 for his shares of goodwill but E has insufficient cash
to pay for goodwill. Both the new partners introduced Rs.40, 000 each as their capital. You
are required to pass the necessary Journal entries.

12 A, B,C and D are partners in a firm sharing profits and loss in the ratio of 3: 3: 2: 2 3
respectively. D retires and A, B and C decide to share the future profits in the ratio of
3:2:1. Goodwill of the firm is valued at Rs. 6,00,000. Goodwill already appears in the
books at Rs.4,50,000. The profits for the years after D’s retirement amount to 12,00,000.
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 Give the necessary journal entries to recorded goodwill and to distribute the profits. Show
your calculations clearly

13 The capital of A, B and C as on 31st Dec, 2002 amounted to Rs 30,000 ,Rs 1,10,000 and Rs 4
2,20,000 respectively. The profits amounting to Rs 60,000 for the year 2002 were
distributed in the ratio of 4:1:1 after the allowing interest on capitals@ 10% p.a. During
2002 each partner withdrew Rs 1,20,000. The partnership deed was silent as to profit
sharing ratio but provided for interest on capital @12%.Give the necessary adjusting
journal entry.

14 The average profit earned by a firm is ` 1,20,000 which includes undervaluation of stock 4
of ` 15,000 on an average basis. The capital invested in the business is ` 8,00,000 and the
normal rate of return is 12%. Calculate goodwill of the firm
a) On the basis of 5 times the super profit.
b) Capitalization method

15 A and B are partners with capitals of Rs. 50,000 and Rs40,000 respectively, on which they 4
are entitled to interest @ 10% p.a. They divide profits in the ratio of 2:1. They take C into
partnership with 1/4th share of profits and guaranteed that his share of profits will not be
less than Rs.20,000. C brought Rs.30,000 as his capital. Any excess profits received by C
over his 1/4th share will be borne by A & B in the ratio of 4:1. Profits at the end of the year
before allowing interest on capitals amounted to Rs. 72,000. Pass the journal entries to
distribute the profits.

16 X, Y and Z shared profits and losses equally. They mutually decided to change their ratio 4
to 4:3:2 respectively. On the date of change in ratio they had following undistributed
profits which need to be adjusted because of the change in their ratio.

General reserve Rs 27,000

Contingency reserve Rs 48,000

Profit and Loss A/c Rs 66,000

Machinery Replacement reserve Rs 75,000

Give one journal entry for all reserves to make the necessary adjustments.

17 Give the meaning of reconstitution of partnership. On what occasions on which a firm can 4
be reconstituted.

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18 X and Y are partners in a firm. Their capitals as on April 1, 2017 were Rs.2,50,000 6
and Rs.1,80,000 respectively. They share profits equally. On July 1, 2017, they decided
that their capitals should be Rs.2,00,000 each. The necessary adjustments in the capitals
were made by withdrawing or introducing cash. According to the partnership deed,
interest on capital is to be allowed @8% p.a. X is to get an annual salary of Rs.4,000 and
Y is allowed a monthly salary of Rs.800. It was found that Y was regularly withdrawing
his monthly salary. The manager of the firm is entitled to a commission of 10% of
the profit before any adjustment is made according to the partnership deed. Profit for the
year ended on 31st March, 2018, before charging interest on capital and salary, was Rs.
80,000. Prepare the Profit and Loss Appropriation account

19 a) A and B are partners in a firm sharing profits in the ratio of 3:2. C is admitted as a 6
partner. A and B surrender ½ of their respective share in favour of C. Find the new
profit sharing ratio and also the sacrificing ratio.
b) C is to bring his share of premium for goodwill in cash. The goodwill of the firm is
estimated at Rs.40000. Pass necessary journal entries for the record of the goodwill
in the above case.

20 Dutta, Khana and Govil are partners sharing in the ratio of 2:2:1. The Balance Sheet of the 6
firm was as under 31st Dec.2017.

Liabilities Rs. Assets Rs.

Sundry creditors 5,000 Cash at Bank 1,000

Biils payable 2,000 Bills receivable 1,500

Reserves 3,000 Stock 12,500

Capitals: Debtors 15,000

Dutta 10,000 Furniture 5,000

Khana 8,000

Govil 7,000 25, 000

35,000 35,000

Govil died on 1-2-2017.His legal heirs were entitled for the following:

(a) His capital on the date of death.

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 (b) His share of profit to the date of death calculated on the basis of previous year’s
profits.
(c) His share of goodwill – the total of the business was valuated at two years
purchase of the average profits of the last three completed years. The profits were
Rs 8,000;Rs 13,000; and Rs 15,000 respectively.
(d) Share in the profit or loss arising out of the revaluation of assets and liabilities.
The assets were revaluated as under: Stock at Rs 12,000; Furniture at Rs 4,000
and provision for bad debts was made at 5% on debtors.

Prepare revaluation A/c, Partnership capital A/c and ascertain the share of the
executors of the deceased partners.

21 A, B and C are partners sharing profits in the ratio of 4: 3: 1. On 31st March 2012 B retires 6
from the firm selling his share of profit to A for Rs. 36,000 and to C for Rs.45,000. For the
purpose B’s retirement, it was agreed that:
(i) Stock is to be appreciated by 20% and building by 10%
(ii) Motor car is to be valued at Rs. 70,000
(iii)Provision for doubtful debts is increased to 10%
(iv) Investments are sold for Rs. 2,30,000
(v) Claim on Account of workmen compensation is Rs. 12,000
Their Balance Sheet as at 31st March 2017 is:
Liabilities Rs. Assets Rs.
Creditors 70,000 Cash in hand 80,000
Bills Payable 30,000 Cash at bank 20,000
Workmen’s Stock 75,000
Compensation Reserve 20,000 Debtors 130000
General Reserve 80,000 Less: Provision for
Capital A/cs: doubtful debts 5000 1,25,000
A 2,00,000 Motor car 1,50,000
B 3,00,000 7,00,000 Investments 1,00,000
C 2,00,000 Plants and Machinery 1,20,000
Building 2,30,000

9,00,000 9,00,000

Pass the journal entries at the time of retirement

22 A, B and C are partners sharing profits and losses in the ratio of 2:2:1. A decided to retire 8
on 1st April, 2017.On that date the Balance Sheet stood as under:
Liabilities Amount Assets Amount

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 Capital A/cs: Goodwill 30,000

A-80,000 Land and Building 80,000

B-80,000 Plant and Machinery 56,000

C-60,000 2,20,000 Motor Car 54,000

General reserve 10,000 Debtors 48,000

Creditors 50,000 Cash at bank 12,000

2,80,000 2,80,000

The following were agreed upon:

1. Goodwill of the firm was valued at Rs.45,000.

2. The value of Land and Building was to be appreciated by Rs.30,000.
3. Plant and Machinery was to be reduced to Rs.46,000.
4. Provision at the rate of 5% on debtors was to be created for bad and doubtful
debts.
5. Creditors were to be written back by Rs.2,000.
6. The entire amount payable to A was to be brought by B and C in such a manner
that their capitals were in proportion to their profit sharing ratio which was to
be equal.
Prepare revaluation A/c and Partners’ capital a/c

23 A and B are partners sharing profits and losses in the ratio of 3: 2. On 31st March,2017, 8
their balance sheet was as follows:

Liabilities Rs. Assets Rs.

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 Capital A/cs: Cash in Hand 2,500

A 80,000 Cash at Bank 57,500

B 40,000 1,20,000 Debtors 5,000

General Reserve 15,000 Stock 30,000

Creditors 25,000 Buildings 50,000

Bills payable 10,000 Machines 20,000

Goodwill 5,000

1,70,000

1,70,000

They agree to admit C as a partner with effect from 1st April,2017 with 1/3rd share on the
following terms:

(i) C will bring in Rs.50, 000 as capital and Rs. 20,000 as his shares of goodwill but
he actually contributed only Rs.12, 000 to goodwill.
(ii) Building and machines to be depreciated by 5%.
(iii) Stock to be revalued at Rs. 40,000.
(iv) There is an unrecorded asset worth Rs.12, 000.
(v) One month salary of Rs 3,000 is outstanding.
Prepare the Revaluation Account, the Bank Account, the Capital Accounts of the

Partners and the Balance Sheet after the admission of C.

24 1. X and Y were partners sharing profit in the ratio of 3:2. In spite of the repeated 8
reminders by the government authorities they kept dumping hazardous waste
material into the nearby river. The court ordered for the dissolution of their
partnership firm on 31st March 2014. Their balance sheet as at 31st March 2014 was
as follows:
Balance Sheet
Liabilities ` Assets `
Mrs. X's Loan 20,000 Cash 40,000
Creditors 1,00,000 Debtors 1,84,000
C's Loan 80,000 Less Provision 4,000 1,80,000
General Reserve 30,000 Inventory 1,20,000
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 Capitals: 50,000 Furniture 60,000
X 3,60,000 6,00,000 Building 3,80,000
Y 2,40,000
7,80,000 7,80,000
On the above the firm dissolved under the following terms:
i) X was appointed to realise the assets and pay off the liabilities. He had to bear the
realisation expenses for which he was paid `3,000.
ii) A Motor Bike (which was bought out of firm’s money) was not shown in the books
of the firm. It was taken over by Y for `10,000.
iii) X agreed to pay his wife’s loan along with the interest of `1,000.
iv) The Creditors were due on an average basis of one month after the date of
dissolution but they were paid immediately at a discount of `500.
v) Inventory was taken over by X at 10 % less.
vi) Furniture was taken over by Y at 10 % more.
vii) The Building realised at `50,000 more.
viii) The Realisation expenses amounted to ` 1,000.
Prepare Realisation Account and Capital account and Cash account

25 The following is the ‘Receipts and Payments Account’ of Yashoda Hospital, for the
year ended on March 31, 2015. You are required to prepare ‘Income and Expenditure
Account’ for the year ended on March 31, 2015 and Balance sheet on that date

Receipts Amount Payments Amount

To Cash in hand 18,160 By Bank over draft

(1.1.2016)
To Subscriptions 14,000
By Investments
2015 1,200 2,00,000
By Furniture
2016 64,800 5,960
By Salaries
2017 600 20,400
By Printing and stationery
---------- 66,600
By Postage
To Entrance fees 50,000 24,160
By cost of Drama
To Proceeds from Drama 3,20,000 4,400
By Sundry Expenses
To Interest on Securities 2,000 1,20,000
By Balances:
To sale proceeds from old 5,600
furniture (cost Rs.320) Cash in hand
400
Cash at Bank

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 5,640

57,000

4,57,160
4,57,160

You are required to compile the Income and Expenditure a/c for the year ended 31st Dec
2016 as at that date after taking into account the following information:

i) On 1st January 2016, the Club premises stood at Rs.1,00,000, Investments at

Rs.24,000; furniture at Rs.12,000 and stock of stationery Rs.360
ii) The club had 720 members each paying an annual subscription of Rs.100.
subscription amounting to Rs.200 were in arrears for the year 2015.
iii) Salaries for December 2016 amounting to Rs.1,600 are outstanding
iv) Entrance fees and surplus from Drama are to be kept in reserve for swimming pool.
Write off 50% of printing and stationery.

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