Practice(2022-23)

SUBJECT: ACCOUNTANCY
GRADE: XII

TIME: 2 HRS. M.M: 50

General instructions:

a. Enumerate your answers correctly.

b. All questions are compulsory.
c. Question paper has two parts only: Part A and Part B.
d. Part A has 15 Questions and Part B has 3 Questions.
e. Question no.1 to 10 carry 1 mark each.
f. Question no. 11 to 15 carry 4 marks each.
g. Question no. 16 & 17 carry 6 marks each.
h. Question no. 18 carry 8 marks.

PART-A

1. Name any two factors affecting goodwill of a partnership firm.

2. What is Partnership Deed?
3. How will you treat the interest on capital in case there is no partnership deed?
4. Give the formula of calculating Gaining ratio.
5. Why are “Reserve and Surplus” distributed at the time of reconstitution of the firm?
6. What is a Revaluation Account?
7. Define Accumulated losses and accumulated profits.
8. A & B share profits in the ratio of 2:1. C is admitted with 1/3 share in profits. C acquires 2/3 of his share
from A and 1/3 of his share from B. What will be the new profit-sharing Ratio?
9. A and B are partners sharing profit in the ratio of 3: 2. They admit C as a partner by giving him 1/3
share in future profits. The new ratio will be:
(A) 12: 8: 5
(B) 8: 12: 5
(C) 5: 5: 12
(D) None of the Above
10. A and B are partners in a firm sharing profits in the ratio of 2: 1. C is admitted as a partner. A and B
surrender 1/2 of their respective shares in favour of C. C is to bring his share of premium for goodwill in
cash. The goodwill of the firm is estimated at ₹ 60,000. Credit will be given to:
(A) A ₹15,000; B ₹15,000
(B) A ₹40,000; B ₹20,000
1/4
 (C) A ₹30,000; B ₹30,000
(D) A ₹20,000; B ₹10,000
11. R & S were partners in a firm sharing profits in 3: 2 ratio. Their respective fixed capitals were Rs. 10,
00,000 and Rs.15, 00,000. The partnership deed provided the following:
(1) Interest on capital 10% pa (2) Interest on drawing @ 12% p.a.
During the year ended 31-3-2020, R's drawings were Rs.10, 000 per month drawn in the end of every
month and S's drawings were Rs.20,000 per month drawn in the beginning of every month. After the
preparation of final accounts for the year ended 31-3-2020 it was discovered that interest on R's
drawings was not taken into consideration. Calculate interest on R's drawings and give necessary
adjusting entry for the same.
12. A, B and C are partners in a firm. After the accounts of partnership have been drawn up and the books
closed off, it is discovered that for the years ended 31st March 2016 and 2017, interest has been
allowed to the partners upon their capitals @ 6% p.a. although there is no provision for interest in the
partnership deed. Their fixed capitals on which interest was calculated were Rs. 1, 00,000; Rs.80, 000
and Rs.60, 000 respectively.
During the last two years, they have shared the profits as follows: 2016- 3: 2: 1 2017- 5: 3: 2
You are required to give adjusting entry on 1st April, 2017.
13. The following information relates to a partnership firm:
(a) Profits for the last five years:
2017 -Rs. 80,000 2018-Rs.1,00,000
2019-Rs.2, 00,000 2020-Rs. 1, 50,000
2021-Rs. 2, 70,000
(b) Average Capital Employed is Rs. 5, 00,000.
(c) Rate of normal profit 20%.
Find out the value of goodwill on the basis of:
(1) Three years purchase of average profits
(2) Three years purchase of super profits.
(3) Capitalization of super profits.
14. A and B are partners in a firm sharing profits and losses in the ratio of 3: 2. They admit c into
partnership for 1/5 share. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill. At the time of
admission of C, goodwill appears in the balance sheet of A and B at Rs. 3,000. New Profit-sharing ratio
of partners shall be 5:3:2. Pass necessary entries.
15. Neha, Niharika, and Nitin are partners sharing profits and losses in the ratio of 2:3:4. They decided to
change their ratio and their new ratio is 4:3:2. They also decided to pass a single journal entry to adjust
the following without affecting their book values.
(Rs.)
Profit & Loss account 80,000
General Reserve 40,000
Advertisement Suspense A/c 30,000
You are required to give the single journal entry to adjust the above.
16. Ashok, Bhim and Chetan were partners in a firm sharing profits and losses in the ratio of 3:2:1. Their
Balance Sheet as at 31-03-2015 was as follows:

2/4
 Balance Sheet of Ashok, Bhim & Chetan
As at 31-3-2015
Liabilities Amount Assets Amount

Creditors 1,00,000 Land 1,00,000

Bills Payable 40,000 Building 1,00,000

General Reserve 60,000 Plant 2,00,000

Capitals: Stock 80,000

Ashok 2,00,000 Debtors 60,000

Bhim 1,00,000 Bank 10,000

Chetan 50,000 3,50,000

5,50,000 5,50,000

Ashok, Bhim & Chetan decided to share the future profits equally, w.e.f., April 1, 2015. For this it was
agreed that:
● Goodwill of the firm is valued at Rs. 3, 00,000.
● Land is revalued at Rs.1, 60,000 and Building be depreciated by 6%.
● Creditors of Rs.12, 000 were not likely to be claimed and hence be written off.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted
firm.

17. (a) Differentiate between Sacrificing ratio and Gaining ratio.

(b) Draw the format of P&L Appropriation A/C and write at least 6 items in it.

PART-B

18. A and B were partners in a firm sharing profits and losses in the ratio of 3:1. On 31 st March, 2019, their
balance sheet was as follows:
Balance Sheet of A and B
As at 31stMarch, 2019
Liabilities Amount Assets Amount

Creditors 1,10,000 Cash at Bank 60,000

General Reserve 40,000 Debtors 40,000

Workmen’s
3/4
 Compensation Reserve Stock 45,000

Capitals: 50,000 Furniture 1,55,000

A 4,00,000 Land & Building 5,00,000

B 2,00,000

--------------- 6,00,000

---------------- -----------------

8,00,000 8,00,000

On 1st April, 2019. They admitted V as a new partner for 1/5th share in the profits of the firm on the following
terms:
(a) V brought Rs. 1, 00,000 as his capital and the capitals of A and B were to be adjusted on the basis
of V's capital; any surplus or deficiency was to be adjusted by opening current accounts.
(b) Goodwill of the firm was valued at Rs. 4, 00,000. V brought the necessary amount in cash for his share of
goodwill premium, half of which was withdrawn by the old partners.
(c) Liability on account of workmen's compensation amounted to Rs. 80,000.
(d) A took over stock at Rs. 35,000.
(e) Land and Building was to be appreciated by 20 %.
Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on
V's admission.

4/4