Mock Test

Class 12-Accountancy
Max Marks: 80
Time Allowed: 3 Hours
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised
Accounting. Students must attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 6 marks each
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks

PART A
(Accounting for Partnership Firms and Companies)

1. CBSE Ltd. issued 20,000 shares and received application for 45,000 shares. The company
allotted all the shares on pro-rata basis. What will be the pro-rata ratio?
i. 1:1
ii. 9:4
iii. 4:9
iv. None

2. ABC Ltd. issued 10,000, 12% debentures of Rs. 100 each at premium of 10%, redeemable at
certain rate of premium. If the amount written off from statement of profit & loss is Rs. 50,000.
Then at what % of premium, debentures are redeemed?
i. 10%
ii. 5%
iii. 12%
iv. None

3. CCW Ltd. forfeited 2,000 equity shares of ₹10 each issued at a premium of 10% for non-
payment of first and final call of ₹4 per share. Out of the forfeited shares, 1,200 shares were
reissued, the maximum amount of discount at which these shares can be reissued will be:
i. Rs. 12,000
ii. Rs. 7,200
iii. Rs. 4,800
iv. Rs. 8,400
4. A and B are partners in a firm having capital balances of ₹ 100,000 and ₹ 60,000 respectively.
General Reserve appeared in their books at ₹ 50,000 and advertisement suspense at ₹ 20,000.
They admit C for 1/5th share which brings Rs. 20,000 as his share of goodwill. C is to bring
proportionate amount of capital. The capital amount of C will be:
i. Rs. 32,000
ii. Rs. 47,500
iii. Rs. 52,500
iv. None

5. At the time of dissolution of a firm, Creditors are ₹ 100,000; Firm’s Capital is ₹ 200,000; Cash
Balance is ₹ 30,000. Creditors are paid 10% more & Other assets realised ₹ 310,000. Gain/Loss
in the realisation account will be:
i. Rs. 37,000
ii. Rs. 40,000
iii. Rs. 55,000
iv. None

6. On dissolution of partnership firm, out of total debtors of Rs. 50,000, Rs 10,000 became bad and
the remaining debtors realised 80%. Provision for doubtful debt was Rs 20,000. In the given
case, _____________ will be debited by _______________
i. Realisation A/c Rs 40,000
ii. Realisation A/c Rs. 32,000
iii. Bank A/c, Rs, 32,000
iv. Bank A/c, Rs, 40,000

7. A, B, and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. C retires from
the firm and his share is purchased by A and B in the ratio of 1:1 New Profit sharing ratio between
A and B respectively would be :-
i. 1:1
ii. 2:3
iii. 7:5
iv. 3:2

8. A, B and C are partners and C retired. On the date of death, C’ capital balance was Rs. 1,00,000 &
C’s Loan A/c was appearing on the Liability side at Rs. 20,000. She took an unrecorded Machinery
of Rs. 15,000 and the balance due amount was paid in cash. How much cash was paid to C?
i. Rs. 1,20,000
ii. Rs. 105,000
iii. Rs. 110,000
iv. None

9. Which of the following statements does not relate to ‘Reserve Capital’:

i. It is part of uncalled capital of a company
ii. It cannot be used during the lifetime of a company
iii. It can be used for writing off capital losses
iv. It is part of subscribed capital
10. A & B are partners in a firm sharing profits & losses in the ratio of 3:2. They admitted C as a
partner for 1/5th share. The Journal entry passed for Jassi’s share of goodwill is:
Date Particulars Debit Credit
Premium for Goodwill A/c Dr. 3,000
A’s Capital A/c Dr. 2,000
To B’s Capital A/c 5,000
New Profit-sharing Ratio will be:
a. 3:2:1
b. 2:2:1
c. 11:1:3
d. 9:6:4

11. Creditors of Rs. 15,000 accepted a furniture of Rs. 10,000. Treatment of this transaction would
be:
i. No Entry
ii. Realisation A/c will be credited by Rs. 10,000
iii. Realisation A/c will be debited by Rs. 5,000
iv. Bank A/c will be debited by Rs. 5,000

12. Avyukt Ltd forfeited 4,000 shares of ₹20 each, fully called up, on which only application money
of ₹6 has been paid. Out of these 2,000 shares were reissued and ₹8,000 has been transferred to
capital reserve. Calculate the rate at which these shares were reissued.
a. ₹20 Per share
b. ₹18 Per share
c. ₹22 Per share
d. ₹8 Per share

13. A, B and C are partners sharing profits is the ratio of 3:2:1. A retires, selling his share of profits
to B & C for Rs. 25,000 & Rs. 12,500. The new profit-sharing ratio will be:
i. 2:1
ii. 3:2
iii. 1:1
iv. None

14. Assertion (A): In case of no agreement, partnership firm is dissolved in case of death of a
partner.
Reason (R): Partnership is dissolved on death of a partner
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true and (R) is not the correct explanation of (A)
c. (A) is true, but (R) is false
d. (A) is false, but (R) is true

15. A preference shares which carries the right of sharing in surplus profits is called
a. Cumulative preference share
b. Non-participating preference share
c. Participating preference share
d. Non-Cumulative preference share
16. Confidence Ltd. issued 10,000, 12% Debentures of ₹ 100 each at certain rate of premium and to
be redeemed at 10% premium. At the time of writing off Loss on Issue of Debentures, Statement
of Profit and Loss was debited with ₹ 20,000. At what rate of premium, these debentures were
issued?
a. 10%
b. 12%
c. 8%
d. None

17. A, B and C were partners in a firm sharing profit and losses in the ratio of 2:2:1. Their books are
closed on March 31st every year.
B died on 1st Feb, 2021. The executors of B are entitled to:
(i) His share of Capital i.e., Rs. 2,00,000 along-with his share of goodwill. The total goodwill of
the firm was valued at 1.5 year’s purchases of last year’s profit.
(ii) His share of profit up to his date of death on the basis of sales till date of death. Sales for the
year ended March 31, 2021 was Rs. 2,00,000 and profit for the same year was Rs. 40,000. Sales
shows a increasing trend of 20% and percentage of profit earning is decreased by 5%.
(iii) A & C decided to share future profits equally.
Pass necessary Journal Entries. (3)

18. Calculate the goodwill of a firm on the basis of two year’s purchase of average profits of the last
five years. The Profits for these five years were:
Year Ended 2017 2018 2019 2020 2021
31st March
Profits 40,000 1,70,000 1,90,000 2,00,000 3,50,000

Scrutiny of books of accounts revealed that Car amounting to Rs.100,000 was wrongly debited
to Repairs A/c on 1st January, 2019. Profit of the year ending 31 st March, 2021 includes
voluntary retirement compensation of Rs. 50,000.
Depreciation was charged on Vehicles @ 10% p.a. on Reducing Balance method. (3)

19. XYZ Ltd. took over the assets of Rs. 5,00,000 and liabilities of Rs. 50,000 of ABC Ltd. for a
consideration of Rs. 4,20,000. Rs. 30,000 were paid by an acceptance in favour of ABC Ltd.
payable after 3 months and the balance by issue of fully paid-up Equity of Rs. 100 each at a
premium of 50%. Pass the necessary journal entries for the above transactions in the books of
Mayank Ltd. (3)

20. P and Q were partners in a firm sharing profits in the ratio of 3:2. Their respective fixed capitals
were P ₹ 5,00,000 and Q ₹ 4,00,000. The partnership deed provided for the following:
(i) Interest on capital @ 12% p.a.
(ii) P’s salary ₹ 6,000 per month and Q’s commission on ₹ 60,000 per year.
Profit for the year ended 31st March, 2022 was ₹ 2,00,000 which was distributed equally
without providing for the above. Pass an adjustment entry. (3)
21. A, B and C were partners in affirm sharing profits in the ration 3:2:1. The firm was dissolved on
31st March 2021.Pass the necessary journal entries for the following transactions after the
various assets (other than cash) and external liabilities have been transferred to Realisation
Account.
i. The firm had stock of Rs 100,000. C took over 40% stock at a discount of 20%
ii. C’s loan of Rs. 50,000 was paid off along with interest of Rs. 2,000.
iii. Sahil, a debtor of ₹ 5,000 had to pay the amount due 3 months after the date of
dissolution. He was allowed a discount of 5% for making payment immediately.
iv. A was paid remuneration of Rs. 5,000 and he was to meet all expenses. Actual Expenses
amounted to Rs. 6,000 were paid by A. (4)

22. A company issued 10,000 shares of Rs. 10 each at a premium of Rs. 1 per share, payment to be
made as follows:
On Application Rs. 3
On Allotment Rs. 4 (including premium)
On First call Rs. 2
On Second and Final call Rs. 2
Applications were received for 25,000 shares. Allotment was made in the ratio of 3:2 and the
remaining applicants were rejected. The directors made both the calls and all the money were
received, except the allotment and first call on 400 shares, which were subsequently forfeited.
Later, 300 of the forfeited shares were re-issued as fully paid @ Rs. 9 per share. Prepare the
Balance Sheet showing disclosure of Share capital.
(4)
23. The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at 31st
March, 2022 is as follows:

Liabilities Rs. Assets Rs.

Creditors 50,000 Cash at Bank 40,000
Sundry Debtors 120,000
Less: provision
Employees' Provident Fund 10,000 For doubtful debts (20,000) 1,00,000
Profit and Loss A/c 85,000 Stock 80,000
Capital A/cs: Fixed Assets 60,000
X 40,000
Y 60,000
Z 35,000 1,35,000
2,80,000 2,80,000

X retired on 1st April, 2022 and Y and Z decided to share profits in future in the ratio of 3 : 2
respectively.
The other terms on retirement were:
(a) Goodwill of the firm is to be valued at Rs. 80,000.
(b) Fixed Assets are undervalued by 20%
(c) There were bad debts of Rs. 15,000 & no other provision required.
(d) A liability for claim, included in Creditors for Rs. 10,000, is settled at Rs. 8,000.
The amount to be paid to X by Y and Z in such a way that their Capitals are proportionate to
their profit-sharing ratio and leave a balance of Rs. 15,000 in the Bank Account.
Prepare Revaluation A/c and Partners' Capital Accounts. (6)
24. Halwa Ltd. issued for public subscription 50,000 equity shares of ₹ 10 each at a premium of
30% payable as under:
₹ 4 on application
₹ 5 on allotment (including premium)
₹ 4 on first and final call
Applications were received for 1,00,000 shares. Allotment was made pro-rata to the applicants
for 80,000 shares, the remaining applications being refused. Money overpaid on application was
utilised towards sums due on allotment.
Puri, to whom, 1,000 shares were allotted, failed to pay the allotment and call money and the
shares were subsequently forfeited. Half of the forfeited shares were reissued as fully paid at a
discount of 10%. Show journal entries to record the above transactions in the books of Halwa
Ltd. (6)

25. A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On 31st
March, 2022, their Balance Sheet stood as:
Liabilities Assets ₹
₹
Sundry Creditors 40,000 Goodwill 25,000
Bills Payable 15,000 Leasehold 1,00,000
Workmen Compensation Reserve 30,000 Patents 30,000
Capital A/cs: Machinery 1,50,000
R 1,50,000 Stock 50,000
S 1,25,000 Debtors 40,000
T 75,000 3,50,000 Cash at Bank 40,000
4,35,000 4,35,000

C died on 1st August, 2021. It was agreed that:

a) Goodwill be valued at 2.5 years' purchase of average of last 4 years' profits which were:
2014-15: ₹ 65,000; 2015-16: ₹ 60,000; 2016-17: ₹ 80,000 and 2017-18: ₹ 75,000.
b) Machinery be valued at ₹ 1,40,000; Patents be valued at ₹ 40,000; Leasehold be valued at ₹
1,25,000 on 1st August, 2021
c) For the purpose of calculating T's share in the profits of 2021-22, the profits in 2020-21 should
be taken to have accrued on the same scale as in 2017-18.
d) A sum of ₹ 21,000 to be paid immediately to the Executors of T and the balance to be paid in
four equal half-yearly instalments together with interest @ 10% p.a.
Pass necessary Journal entries to record the above transactions and T's Executors' Account. (6)

26. Happiness Ltd. has paid up share capital of ₹ 10,00,000 (divided into 50,000 Equity Shares of ₹
20 each) and 20,000, 8% Debentures of ₹ 100 each. On 1st October, 2021, it further issued 8%
debentures at a discount of 20% redeemable at 12% premium to meet the long - term funds
requirements of ₹ 3,00,000. The issue price was payable along with application.
Balance in Securities Premium Account was ₹ 40,000.
You are required to:
(a) Pass Journal Entries for issue of debentures;
(b) Prepare 8% Debentures A/c & Loss on issue of debentures Account; and
(c) Pass Journal Entries for interest on debentures, interest is payable on 30th September and
31st March each year. (6)
 Part B :- Analysis of Financial Statements

27. Assertion: Company’s operating cycle is 11 months. Trade payable to be paid in the 12 th
month after the end of balance sheet will be disclosed under non-current liability.
Reason: Amount payable after operating cycle from the date of balance sheet should be
disclosed under non-current liability.
a. Both (A) and (R) are true
b. (A) is true, but (R) is false
c. (A) is false, but (R) is true
d. Both (A) and (R) are False

28. Wonderful Industries Ltd. had an accident in the factory due to which a machine of book value ₹
5,00,000 was completely damaged. It was insured and insurance claim of ₹ 4,50,000 was
received. Which of the following treatment is correct?
i. Rs. 4,50,000 will be added to determine Net Cash Flow from operating Activity.
ii. Loss of Rs. 50,000 is added to Net Profit before Tax and Extra-Ordinary Items & Rs.
4,50,000 will be added to determine Net Cash Flow from operating Activity.
iii. Loss of Rs. 50,000 is added to Net Profit before Tax and Extra-Ordinary Items & Rs.
4,50,000 will be added to Investing Activity.
iv. None of the Above

29. Revenue from Operations 4,00,000; Cost of Revenue from Operations 30% of Revenue from
Operations; Operating Expenses 1,80,000, Interest on Debentures Rs. 10,000 and rate of income
tax is 40%. What will be the Interest coverage Ratio
i. Rs. 60,000
ii. Rs. 132,000
iii. Rs. 112,000
iv. None

30. The two basic measures of operational efficiency of a company are

i. Inventory Turnover Ratio and Working Capital Turnover Rati0
ii. Liquid Ratio and Operating Ratio.
iii. Liquid Ratio and Current Ratio.
iv. Gross Profit Margin and Net Profit Margin.

31. Classify the following items under Major Head and Sub-Head (if any) in the Balance Sheet of a
company as per Schedule III of the Companies Act, 2013: (3)
(a) Share Forfeiture
(b) Cash Credit
(c) Provision for leave encashment
(d) Unpaid Dividend
(e) Marketable securities
(f) Proposed Dividend of current year
 32. “Accounting Ratios may not be comparable if different accounting policies are followed”. Do
you agree with the statement and explain any two limitations of Accounting Ratio. (3)

33. Calculate the following ratios: (4)

i. Calculate Return on Capital Employed:

Balance of Surplus as on 31st March, 2022 – Rs. 2,00,000
Balance of surplus as on 31st March, 2021 – Rs. 70,000
Dividend paid during the year – Rs. 20,000
Tax Rate – 25%
12% Debentures – Rs. 1,00,000
Shareholders’ Funds – Rs. 3,00,000

ii. Capital Employed is Rs. 12,00,000; Net Fixed Assets 8,00,000; Cost of Goods Sold or Cost of
Revenue from Operations Rs. 40,00,000; Gross Profit is 20% on Cost. Calculate Working Capital
Turnover Ratio.
 34. From the following Balance Sheet of Goodbye Ltd. as at 31st March 2014:
(6)

31st March, 31 March,

Particulars Note No. 2014 2013
(₹) (₹)
I. EQUITY AND LIABILITES
1. Shareholders' Funds
(a) Share Capital 15,00,000 14,00,000
(b) Reserves and Surplus 1 2,50,000 1,10,000
2. Non-Current Liabilities
Long-term Borrowings 2,00,000 1,25,000
3. Current Liabilities
(a) Short-term Borrowings 2 12,000 10,000
(b) Trade Payables 15,000 83,000

(c) Short-term Provisions 3 18,000 11,000

Total 19,95,000 17,39,000

II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets 4 18,60,000 16,10,000
(ii) Intangible Assets 5 50,000 30,000

2. Current Assets
(a) Current Investments 8,000 5,000
(b) Inventories 37,000 59,000

(c) Trade Receivables 26,000 23,000

(d) Cash and Cash Equivalents 14,000 12,000

Total 19,95,000 17,39,000

 Notes to Accounts :

31st March, 31st March,

Particulars
2014 (₹) 2013 (₹)

1. Reserves and Surplus

Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 1,10,000

2. Short-term Borrowings:
Bank Overdraft 12,000 10,000

3. Short-term Provisions
Provision for Tax 18,000 11,000

4. Tangible Assets:
Machinery 20,00,000 17,00,000
Less: Accumulated Depreciation (1,40,000) (90,000)

18,60,000 16,10,000

5. Intangible Assets
Patents 50,000 30,000

Additional Information:
(i) Tax paid during the year amounted to ₹ 16,000.
(ii)Machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹
2,000.
Prepare Cash Flow Statement.

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