Test Paper Accounts Class 12th (Youtube)

By DeeCee – Divine Classes
Test Paper
SUBJECT ACCOUNTANCY 055
CLASS XII
TIME 3 HOURS MAX. MARKS 80
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. Question 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions 17 to 20, 31and 32 carries 3 marks each.
5. Questions from 21 ,22 and 33 carries 4 marks each
6. Questions from 23 to 26 and 34 carries 6 marks each
PART A (Accounting for Partnership Firms and Companies)
Q 1. Raman and Rohit are partners in a firm sharing profits and losses in the ratio of 3:2. They admit
Saloni as a partner for 1/4th share in profits. She was unable to bring her share of goodwill premium in
cash. The Journal entry recorded for goodwill premium is given below:
Date Particulars L.F. Dr. (₹) Cr. (₹)

Saloni's Current A/c Dr. 15,000
To Raman's Capital A/c 10,000
To Rohit's Capital A/c 5,000
The new profit-sharing ratio of Raman, Rohit and Saloni will be (1)
(a) 20:10:10.
(b) 16:11:9.
(c) 26: 19:15.
(d) 20:16:12.
Q 2. What entry shall be passed if a debtor Ghanshyam, for ₹ 50,000 agreed to pay the dissolution
expenses which were ₹ 40,000 in full settlement of his debt. (1)
Q 3. When shares are forfeited, Forfeited Shares Accounts is: (1)
(a) debited with the amount received (excluding Securities Premium).
(b) debited with the called-up amount on shares.
(c) credited with the paid-up amount on shares.
(d) credited with the amount received (excluding Securities Premium).
1
Or
Eastern Ltd. issues ₹ 50,00,000, 9% Debentures at par, redeemable at the end of 5 years at 105%.
'Premium on Redemption of Debentures Account' will be
(a) debited with ₹ 2,50,000.
(b) credited with ₹ 2,00,000.
(c) credited with ₹ 2,50,000.
(d) debited with ₹ 2,00,000.
Q 4. Due to change in profit-sharing ratio, Shiv's gain is 1/6, while Mohan's sacrifice is 1/6, They decided
to adjust the following accumulated profits, losses and reserves without affecting their book figures, by
passing an adjusting entry: (1)
General Reserve 1,00,000
Profit & Loss A/c (Dr.) 2,00,000
Advertisement Suspense A/c 50,000
The necessary adjusting entry will be:
(a) Dr. Shiv and Cr. Mohan by ₹ 25,000.
(b) Dr. Mohan and Cr. Shiv by ₹ 25,000.
(c) Dr. Shiv and Cr. Mohan by ₹ 1,50,000.
(d) Dr. Mohan and Cr. Shiv by ₹ 1,50,000.
Or
Sarthak, Vansh and Mansi are partners, sharing profits in the ratio of 3: 1: 1. It was provided in the deed
that Mansi's share of profit will not be less than ₹ 60,000 per annum. Interest on Sarthak's Loan is to be
paid ₹ 20,000. Loss of the firm for the year was ₹ 5,20,000 before interest on Sarthak's Loan. Net effect
of the above will be:
(a) Loss of ₹ 5,20,000 will be distributed among Sarthak, Vansh and Mansi in 3:1:1 ratio.
(b) Loss of ₹ 5,80,000 will be distributed among Sarthak, Vansh and Mansi in 3:1:1 ratio.
(c) Loss of ₹ 6,00,000 will be distributed among Sarthak and Vansh in 3:1 ratio.
(d) Loss of ₹ 5,40,000 will be distributed among Sarthak, Vansh and Mansi in 3:1:1 ratio.
Q 5. X Ltd. forfeited 500 shares of ₹ 10 each fully called up for non-payment of final call of ₹ 3 per share.
300 of these shares were reissued as fully paid up and after reissue the amount transferred to Capital
Reserve was ₹ 1,800. What is the reissue price? (1)
(a) ₹ 6 per share
(b) ₹ 8 per share
2
(c) ₹ 7 per share
(d) ₹ 9 per share
Q 6. Jupiter Ltd. issued 10,000, 10% Debentures of ₹ 100 each at certain rate of discount, redeemable at
10% premium after 5 years. At the time of writing off loss on issue of Debentures, Statement of Profit &
Loss was debited with ₹ 1,60,000. At what rate of discount, these debentures were issued? (1)
(a) 10%.
(b) 8%.
(c) 6%.
(d) 5%.
Or
Sony Ltd. issued 10,000, 9% Debentures of ₹ 100 each at certain rate of premium, redeemable at 10%
premium after 5 years. At the time of writing off Loss on issue of Debentures, Statement of Profit & Loss
was debited with ₹ 40,000. At what rate of premium, these debentures were issued?
(a) 4%.
(b) 5%.
(c) 6%.
(d) 8%.
Q 7. While transferring assets to realisation account ……………. Is omitted to be transferred. (1)
(a) Patents
(b) Goodwill
(c) Cash
(d) Investments
Q 8. Discount on issue of Debentures is in the nature of (1)
(a) Revenue loss
(b) Capital loss
(c) Deferred Revenue Expenditure
(d) None of the above
Or
Q. Premium received on issue of debentures may be utilised for
(a) for writing off discount allowed on issue of shares
3
(b) for writing off premium allowed on redemption of debentures
(c)for writing off preliminary expenses
(d) all of the above
Q 9. “Weighted Average Method” is followed when: (1)
(a) Past profits are same
(b) Past profits show an increasing trend
(c) Past Profits show a decreasing trend
(d) Either (B) or (C)
Q 10. A and B are partners sharing profits in 5:3. C is admitted into the firm. A surrenders 1/32 from his
share and B surrenders 1/24th of his share in favour of C. Sacrificing ratio will be ……………………. (1)
Q 11. Pooja Ltd. issued ₹ 1,00,000 shares of face value ₹ 10 each at ₹ 9 per share to its employees. The
shares issued are called: (1)
(a) Preferential Allotment of Shares
(b) Sweat Equity Shares
(c) Private Placement of Shares
(d) ESOP
Q 12. Joy Ltd. forfeited 300 shares (held by Sumit, a shareholder) of ₹ 10 each on which ₹ 6 per share
has been called-up but he has paid ₹ 4 per share. The forfeited shares were reissued to Mukul, credited
as ₹ 6 per share for ₹ 1,500. What amount is to be transferred to Capital Reserve? (1)
(a) 1,200.
(b) 1,000.
(c) 1,100.
(d) 900.
Q 13. Ashok and Babu are partners sharing profits in the ratio of 3: 2. They admit Chetan for 1/5th share
in profits. Chetan acquires 1/5th of his share from Ashok. The sacrificing ratio of the old partners will be:
(1)
(a) 2:3.
(b) 1:2.
(c) 1:4.
(d) 4:1.
4
Q 14. Partner Sushil withdrew equal amount at the end of each quarter from the firm. Interest on
drawings charged from him for the year ended 31st March 2022 @ 10% p.a. was 9,000. Total amount of
drawings was: (1)
(a) ₹ 1,80,000
(b) ₹ 1,44,000
(c) ₹ 2,40,000
(d) ₹ 90,000
Q 15. Arif, Ravi and Ben entered into partnership on 1st October, 2021 to share profits and losses in the
ratio of 3:2:1. Arif had personally guaranteed that Ben's share of profit will not be less than ₹ 30,000 p.a.
Loss for the period ended 31st March, 2022 was ₹ 1,20,000. Deficiency to be charged to Arif will be: (1)
(a) ₹ 30,000.
(b) ₹ 32,000.
(c) 20,000.
(d) ₹ 35,000.
Or
Balance Sheet, if prepared after the new partnership agreement, Assets and Liabilities are recorded at
(a) Original Value.
(b) Realisable Value.
(c) Revalued Figure.
(d) Current Cost.
Q 16. PQR Ltd. issued 10,000 equity shares of ₹ 100 each as fully paid-up in consideration of the
purchase of business which consist of Sundry Assets ₹ 11,00,000 and sundry liabilities of ₹ 1,20,000.
The above transaction will result into: (1)
(a) Goodwill of ₹ 20,000
(b) Capital reserve of ₹ 20,000
(c) Goodwill ₹ 10,000 and capital reserve ₹ 10,000
Q 17. A, B and C were partners in a firm sharing profits in the ratio of 2:2:1. They admitted D for 1/6th
share in the profits. The new profit-sharing ratio will be 13: 8:4:5 respectively. D brought ₹ 5,00,000 for
his capital and ₹ 60,000 for his share of goodwill.
Pass necessary entries. (3)
5
Q 18. Manu, Kavita and Om were partners sharing profits and losses in the ratio of 3:2:1. Kavita died on
30th June, 2022 and Manu and Om decided to share future profits in the ratio of 3: 2. Her share of profit
for the intervening period was based on the sales during that period, which were 7,20,000. The rate of
profit during the past four years had been 10% on sales. The firm closes its books on 31st March every
year. Calculate Kavita's share of profit and pass the necessary journal entry. (3)
Q 19. A Company purchased assets of the book value of ₹ 9,00,000 and took over liabilities of ₹ 3,00,000
from Bunny Ltd. It was agreed that the purchase consideration settled at ₹ 6,30,000 be paid by issuing
8% debentures of ₹ 100 each at a premium of 10%. It was further agreed that any fraction of the
debenture be paid in cash. Give journal entries in the books of purchasing company. (3)
Q 20. C and D were partners in a firm sharing profits in the ratio of 2: 3. On 31-8-2022 their Balance
Sheet was as follows: (3)
BALANCE SHEET OF C AND D
as at 31-8-2022
Liabilities ₹ Assets ₹
Capitals: Land and Building 7,50,000
C 5,00,000 Stock 3,80,000
D 7,00,000 12,00,000 Debtors 4,50,000
Creditors 3,25,000 Bank 20,000
Workmen Compensation 75,000
Reserve
16,00,000 16,00,000
The firm was dissolved and the assets and liabilities were settled as follows:
(i) C agreed to take over land and building at ₹ 8,10,000 by paying cash;
(ii) Stock was sold for ₹ 2,05,000;
(iii) Creditors accepted Debtors in full settlement of their claim.
(iv) Workmen Compensation claim amounted to ₹ 60,000.
(v) Realisation exp. were ₹ 10,000.
Pass necessary journal entries for dissolution of the firm.
Q 21. Rahul and Sonia were partners in a firm sharing profits in 3:2 ratio. Their respective fixed capitals
were ₹ 10,00,000 and ₹15,00,000. The partnership deed provided the following:
(i) Interest on capital @ 10% p.a.
(ii) Interest on drawing @ 12% p.a.
During the year ended 31-3-2022, Rahul's drawings were ₹ 10,000 per quarter drawn at the end of every
quarter and Sonia's drawings were ₹ 20,000 per month drawn in the beginning of every month. After
the preparation of final accounts for the year ended 31-3-2022 it was discovered that interest on Rahul's
drawings was not taken into consideration. (4)
Calculate interest on Rahul's drawings and give necessary adjusting entry for the same.
6
Q 22. A, B and C were partners sharing profits in 5:3:2. Their Balance Sheet as at 31st March, 2022 was
as follows: (4)
Liabilities ₹ Assets ₹
Creditors 80,000 Cash at Bank 20,000
Commission Received in 20,000 Sundry Debtors 2,00,000
Advance Less: Provision for 10,000 1,90,000
Capital A/cs Doubtful Debts
A 7,00,000 Stock 4,00,000
B 5,00,000 Furniture and Fixtures 40,000
C 2,00,000 14,00,000 Land and Buildings 6,00,000
Goodwill 30,000
Patents 20,000
Profit & Loss A/c 2,00,000
15,00,000 15,00,000
The firm was dissolved on the above date and the transactions were:
(i) A Creditor for ₹ 10,000 was untraceable and remaining Creditors accepted payment allowing 10%
discount.
(ii) Sundry Debtors included a bad debt for ₹ 5,000 and the rest were realised at 20% discount.
(iii) Furniture and Fixtures realised 15,000.
(iv) Commission received in advance was returned to the customers less ₹ 4,000,
(v) Stock included obsolete items of ₹ 50,000 which realised at 10% and rest of the stock realised 60% of
the book value.
(vi) Realisation expenses were ₹ 7,000.
Prepare REALISATION ACCOUNT.
Q 23. 'Tanishq Ltd.' invited applications for issuing 12,000 equity shares of Rs 10 each at a premium of 3
per share. The amount was payable as follows: (6)
On Application and Allotment 6 per share. (Including Premium)
On First Call 4 per share.
On Second and Final Call The Balance
Applications for 18,000 shares were received and pro-rata allotment was made to all the applicants.
Excess money received with applications was adjusted towards sums due on first call. All calls were
made and were duly received except the first call and second and final call on 120 shares allotted to
Krish. His shares were forfeited. The forfeited shares were re-issued at the maximum permissible
discount as per the provisions of the Companies Act, 2013.
Pass necessary Journal Entries for the above transactions in the books of the company.
OR
7
X Ltd. invited applications for issuing 1,50,000 equity shares of 10 each at a premium of 3 per share. The
amount was payable as follows:
On Application 2 per share.
On Allotment 6 per share
On first and final call 5 per share
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the
applicants. Excess money received with applications was adjusted towards sums due on allotment.
Anurag who had applied for 2,000 shares failed to pay the allotment and call money. Pushkar failed to
pay first and final call on his 500 shares. Shares of both Anurag and Pushkar were forfeited after the final
call was made. The forfeited shares were re-issued for 12 per share as fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.
Q 24. Complete the missing figures in the following Accounts and Balance Sheet: (6)
Dr. REVALUATION ACCOUNT Cr.
Particulars Rs Particulars Rs
To Stock A/c 18,000 By Accrued Income A/c --
To Outstanding Salaries A/c -- By Loss transferred to:
To Provision for Doubtful Debts 1,000 Ps Capital A/c --
To Loose Tools A/c 2,000 Q's Capital A/c --
R's Capital A/c -- --
46,000 --
Dr. PARTNERS CAPITAL ACCOUNTS Cr.
Particulars A B C Particulars A B C
To Goodwill A/c --- -- 10,000
By Balance b/d -- -- --
(Written off) By Workmen 6,000 -- --
To Revaluation A/c 16,000 16,000 8,000 Compensation
(Loss) Reserve A/c
To R's Capital A/c 40,000 20,000 By P's Capital Ac --
(Goodwill) --- -- 3,45,000 By Q's Capital A/c --
To R's Loan A/c
To Balance c/d --- ---
--- --- -- -- -- --
BALANCE SHEET as at 1st April, 2022
Liabilities Rs Assets Rs
Sundry Creditors 15,000 Land & Buildings 7,00,000
Outstanding Salaries --- Plant & Machinery 2,00,000
Workmen Compensation Claim 35,000 Loose Tools 8,000
R's Loan A/c -- Accrued Income --
8
Capital Accounts: Stock 1,75,000

P 4,30,000 Debtors --
Q 3,50,000 -- Less: Provision 4,000 76,000
For Doubtful Debts
Cash at Bank (Balancing figure) --
--- --
OR
A and B share profits in the ratio of 3:2. The Balance Sheet of the firm as at April 1, 2016 was as follows:
Liabilities Rs Assets Rs
Creditors 70,000 Goodwill 60,000
Workmen Compensation Reserve 30,000 Plant & Machinery 3,00,000
Profit & Loss Balance 50,000 Computer 35,000
Capitals Debtors 2,00,000
A 3,00,000 Less: Provision for 15,000 1,85,000
B 2,00,000 5,00,000 Doubtful Debts 2,20,000
Bank Overdraft 1,50,000 Stock
8,00,000 8,00,000
On this date C was admitted as a partner. A give 1/3rd of his share while B gives 1/10th from his share to
C.
Following terms were agreed:
(i) C will introduce Rs 2,00,000 as capital and will bring in his share of goodwill in cash.
Goodwill of the firm is valued at Rs 1,50,000.
(ii) Out of creditors, a sum of 20,000 is due to C which will be transferred to his capital.
(iii) Provision for doubtful debts was found to be in excess by ₹ 5,000.
(iv) Liability for Workmen Compensation Claim was 40,000.
(v) Part of the stock which had been included at a cost of 15,000 had been badly damaged and is
expected to realise only 3,000.
(vi) Expenses on revaluation 8,000 are paid by B.
Prepare Revaluation Account and Capital Accounts of the partners. Also calculate the new profit-sharing
ratios.
Q 25. Sita and Gita were partners sharing profits and losses in the ratio of 4:5. They dissolved their
partnership on 31st March, 2021, when their Balance Sheet showed the following balances: (6)
Particulars (Rs)
Sita's Capital 30,000
9
Gita's Capital 35,000
Gita's Current A/c (Dr) 2,000
Contingency Reserve 18,000
P/L A/c (Dr) 4,500
On the date of dissolution:
(i) The firm, upon realisation of assets and settlement of liabilities, made a profit of Rs 9,000.
(ii) Gita paid the realisation expenses of ₹ 2,000.
(iii) Gita discharged the outstanding salary of the manager of the firm of 1,000 which was unrecorded in
the books. You are required to prepare the Partners' Capital Accounts.
Q 26. Pushkar Ltd. issued 20,000 shares of 100 each at a premium of 5 per share. All the amounts were
received except the first & final call of 40 on 1,000 shares issued to Dushyant. His shares were forfeited.
It also issued 20,000, 7% Debentures of 100 each at a discount of 6% and redeemable at a premium of
5%. Entire amount was payable on application. (6)
Questions:
(a) Determine the amount that will be debited to Securities Premium Account on forfeiture of shares.
(b) The company wants to reissue the forfeited shares for ₹ 30,000 as fully paid-up. Can the company do
so? If not, what is the minimum amount at which the forfeited shares can be reissued.
(c) What is amount of loss on Issue of Debentures?
(d) How will the Loss on Issue of Debentures deal with?
Part B :- Analysis of Financial Statements
Q 27. Which of the following is considered as Cash Equivalents? (1)
(a) Treasury Bills
(b) Current Investments
(c) Bank deposits for 3 months
(d) All of the above
Or
Q. A company receives a dividend of ₹ 50,000 on its investment in other company’s shares. In case of a
Finance company, it will be classified under which kind of activity?
(a) Cash flow from operating activities
(b) Cash flow from investing activities
(c) Cash flow from financing activities
10
(d) no cash flow
Q 28. Which of the following is not a tool of Financial Statements Analysis? (1)
(a) Funds Flow Statement
(b) Cash Flow Statement
(c) Statement of Profit and Loss
(d) Trend Analysis
Q 29. Payment of Income Tax is considered as (1)
(a) Direct Expenses
(b) Indirect Expenses
(c) Operating Expenses
Or
Q. Equity Share Capital ₹ 30,00,000; Reserve and Surplus ₹ 10,00,000; Debentures ₹ 10,00,000; Current
Liabilities ₹ 6,00,000; Debt-equity ratio will be:
(a) .4:1
(b) .33:1
(c) .25:1
(d) .53:1
Q 30. Give one transaction which is partly shown in Investing and partly in Financing activity while
preparing Cash Flow Statement. (1)
Q 31. Following is the Balance Sheet of X Ltd. as at 31st March, 2023: (3)
Particulars Note ₹
No.
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds
(a) Share Capital 5,00,000
(b) Reserves and Surplus 1,00,000
2. Non-Current Liabilities
Long-term Borrowings 1,60,000
Long-term Provisions 40,000
3. Current Liabilities 50,000
TOTAL 8,50,000
II. ASSETS
1. Non-Current Assets 5,20,000
2. Current Assets 3,30,000
11
8,50,000
Calculate Debt to Capital Employed Ratio.
Q 32. Under what headings will you show the following items in the financial statements of a company:
(3)
(i) Interest accrued and due on unsecured loan.

(ii) Interest accrued and due on secured loan.
(iii) Interest accrued but not due on Loan.
(iv) Capital Work in Progress
(v) Subsidy Reserve
(vi) Stores and spares
Q 33. Calculate Net Assets Turnover Ratio from the following: ₹ (4)
Share Capital 4,00,000
General Reserve 1,00,000
Surplus i.e., Balance in Statement of Profit & Loss (Dr.) (20,000)
Long term Borrowings 2,90,000
Long term Provisions 30,000
Current Liabilities 60,000
Current Assets 80,000
Cost of Revenue from Operations (Cost of Sales) 30,00,000
Gross Profit 25% of Revenue from Operations (Sales)
OR
Q. Calculate Fixed Assets Turnover Ratio from the following information:
Plant & Machinery (Gross) 6,80,000
Accumulated Depreciation 1,20,000
Intangible Assets 40,000
Average Inventory 7,20,000
Inventory Turnover Ratio 5 Times
Gross Profit 20% on Cost
Q 34. Following are the Balance Sheets of Pawan Ltd:- (6)
Particulars Note ₹
No.
I. EQUITY AND LIABILITIES
12
1. Shareholder’s Funds
(a) Share Capital 3,00,000 2,50,000
(b) Reserves and Surplus 2,07,000 1,75,000
2. Current Liabilities
(a) Short-term Borrowings 20,000 15,000
(b) Trade Payables 31,000 54,000
(c) Short-term Provisions 84,000 81,000
TOTAL 6,42,000 5,75,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 2,70,000 2,70,000
(ii) Intangible Assets 50,000 30,000
(b) Non-current Investments 45,000 50,000
2. Current Assets
(a) Trade Receivables 2,67,000 2,19,000
(b) Cash & Cash Equivalents 10,000 6,000
TOTAL 6,42,000 5,75,000
31.3.2022 31.3.2021
(₹) (₹)
Notes : (1) Reserve & Surplus 1,97,000 1,75,000
Securities Premium 10,000 ---
2,07,000 1,75,000
(2) Short-term Borrowings:
Bank Overdraft 20,000 15,000
(3) Short term Provisions :
Provision for tax 62,000 65,000
Provision for Doubtful Debts 22,000 16,000
84,000 81,000
(4) Property, Plant and Equipments :
Land 1,50,000 70,000
Machinery 1,20,000 2,00,000
2,70,000 2,70,000
(I) Machinery Costing ₹ 60,000 was sold for ₹ 18,000 during the year.
(II) Interim Dividend paid during the year ₹ 25,000.
(III) During the year Company sold 40% of its original non-current investments at a loss of 20%.
You are required to prepare Cash Flow Statement.
13
Answer Key
Ans 1. (c) 26: 19:15.
Ans 2. No entry
Ans 3. (d) credited with the amount received (excluding Securities Premium).
Or
(c) credited with ₹ 2,50,000.
Ans 4. (b) Dr. Mohan and Cr. Shiv by ₹ 25,000.
Or
(c) Loss of ₹ 6,00,000 will be distributed among Sarthak and Vansh in 3:1 ratio.
Ans 5. (a) ₹ 9 per share
Ans 6. (c) 6%.
Or
(c) 6%.
Ans 7. (c) Cash
Ans 8. (b) Capital loss
Or
Ans. (d) all of the above
Ans 9. (d) Either (B) or (C)
Ans 10. Sacrifing Ratio will be 2:1.
Ans 11. (b) Sweat Equity Shares
Ans 12. (d) 900.
Ans 13. (c) 1:4.
Ans 14. (c) ₹ 2,40,000
Ans 15. (d) ₹ 35,000.
Or
(c) Revalued Figure.
Ans 16. (a) Goodwill of ₹ 20,000
Ans 17. A Gains 1/30, B Sacrifices 4/30, C Sacrifices 2/30 and D gains 5/30. Entry will be:
Premium for Goodwill A/c Dr. 60,000
14
A's Capital A/c Dr. 12,000
To B's Capital A/c 48,000
To C's Capital A/c 24,000
(Adjustment for goodwill on admission of D)
Ans 18. Sale till Kavita's death i.e. upto 30th June = 7,20,000
Profit of the firm till Kavita's death 10% of 7,20,000 = 72,000
Kavita's share=72,000 × 2/6 = 24,000
Note: Time period of 3 months is of no use in this question.
JOURNAL OF MANU, KAVITA AND OM
Date Particulars L.F. Debit Amount Credit Amount

2022 Manu's Capital A/c Dr. 7,200
June Om's Capital A/C Dr. 16,800
30 To Kavita's Capital A/c 24,000
(Kavita's share of profit adjusted to
remaining partners in their gaining ratio 3:7)
Note:
Gaining Ratio = New Ratio - Old Ratio
Manu Gains = 3/5 – 3/6 = 18 – 15/30 = 3/30
Om Gains = 2/5 – 1/6 = 12-5/30 = 7/30
As such Gaining Ratio between Manu and Om-3:7
Ans 19. JOURNAL

Sundry Assets A/c Dr. 9,00,000
Goodwill A/c Dr. 30,000
To Sundry Liabilities A/c 3,00,000
To Bunny Ltd 6,30,000
(Purchase of assets and liabilities of the
Vendor company)
Bunny Ltd. Dr. 6,30,000
To 8% Debentures A/c 5,72,700
To Securities Premium A/c 57,270
To Bank A/c 30
(Issue of 5,727 debentures of ₹ 100 each at
10% premium and the balance paid in cash)
15
Working Note: Number of Debentures to be issued = 6,30,000/110 = 5727.27 or 5,727
Ans 20. Final payment to C ₹ 4,06,000 and D ₹ 5,59,000.
Hints: (i) Prepare Realisation A/c in working notes, Loss on Realisation will be ₹ 2,50,000
(ii) Workmen Compensation Reserve amounting to ₹ 15,000 will be credited to Partner's Capital
Accounts and ₹ 60,000 will be Credited to Realisation A/c.
(iii) There will be no entry for Creditors taking over Debtors in full settlement.
Ans 21. Interest on Rahul's Drawings = 40,000 x 12/100 x 4.5/12 = 1,800
TABLE SHOWING ADJUSTMENT
Particulars Sonia Total

Interest on Drawings (Dr.) 1,800 1,800
Division of 1,800 in 3:2 (Cr.) 1,080 720 1,800
Difference Dr. 720 Cr. 720 --
ADJUSTMENT ENTRY

2022 Rahul's Current A/c Dr. 720
April 1 To Sonia's Current A/c 720
(Interest on drawings omitted, now
rectified)
Ans 22. REALISATION ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Sundry Debtors 2,00,000 By Provision for Doubtful Debts 10,000
To Stock 4,00,000 By Creditors 80,000
To Furniture and Fixtures 40,000 By Commission Received in 20,000
To Land and Buildings 6,00,000 Advance
To Goodwill 30,000 By Bank A/c (Assets realised):
To Patents 20,000 Sundry Debtors 1,56,000
To Bank A/c (Liabilities paid) Furniture & Fixtures 15,000
Creditors 63,000 Stock
Commission Received 16,000 79,000 (5,000 + 2,10,000) 2,15,000
in Advance Land and Buildings 6,00,000 9,86,000
To Realisation A/c (Expenses) 7,000 By Loss transferred to:
A's Capital A/c 1,40,000
B's Capital A/c 84,000
C's Capital A/c 56,000 2,80,000
13,76,000 13,76,000
16
Ans 23. Amount received on allotment 11,880; Shares reissued at 4 per share; Share Forfeiture Account
Credited in forfeiture entry by 720 and debited in reissue entry by 720. Hence there is no profit on
reissue of shares.
OR
Ans. Amount received on allotment 7,92,000; Amount received on first & final call 7,40,000; Capital
Reserve 6,500.
Ans 24. (1) Figure of Loss on Revaluation will be taken from Capital Accounts and the missing figure on
the Cr. side of Revaluation A/c will be Accrued Income ₹ 6,000. It will be recorded on the Assets side.
(2) Loss on Revaluation debited to Capital Accounts is in the ratio of 2:2:1. Hence, Goodwill written off
will be P 20,000, 20,000 and R 10,000. Similarly, Workmen Compensation Reserve credited to Capital
Accounts will be 6,000, 6,000 and 3,000 respectively.
(3) Closing Balance of Capitals will be taken from B/S and will be put on the Dr. side of Capital Accounts.
Opening Balance of Capitals will be P 5,00,000; Q 4,00,000 and R 3,00,000.
(4) Total of Liabilities side 12,00,000 will be put on the Assets side and Cash at Bank will be 35,000.
OR
Loss on Revaluation 25,000; Capital A/cs A ₹ 3,09,000; B 2,09,000 and C 2,00,000; Sacrificing Ratio 2: 1;
New Ratio 4:3:3.
Hint: (i) C will bring in Rs 1,80,000 in Cash for his Capital.
Ans 25.
Dr. PARTNER'S CAPITAL ACCOUNTS Cr.
Particulars Sita Gita Particulars Sita Gita

To Current A/c 2,000 By Balance b/d 30,000 35,000
To P&L Ac 2,000 2,500 By Contingency Reserve A/c 8,000 10,000
To Bank A/c By Realisation A/c 4,000 5,000
(Balancing Figure) 40,000 48,500 By Realisation A/c 2,000
By Realisation A/c 1,000
42,000 53,000 42,000 53,000
Ans 26. (a) Securities Premium Account will not be debited since first and final call does not include any
amount in respect of Securities Premium. It is not mentioned in the question as to when the securities
premium is receivable, hence it is assumed that the securities premium is received along with the
allotment money. Since Share Allotment money has been fully received, it denotes that Securities
Premium has been fully received.
(b) The amount of discount on reissue of forfeited shares cannot exceed the amount previously received
on these shares. Amount received on these shares upto allotment is 60 per share. Hence, the discount
on reissue cannot exceed 60 per share. Company wants to reissue these 1,000 shares for 30,000 i.e. , it
wants to give discount of 70,000 i.e., 70 per share which is not allowed under the Companies Act, 2013.
17
(c) Loss on Issue of Debentures is:
Discount on issue: 20,000 × 6 1,20,000
(+) Premium Payable on Redemption: 20,000 × 5 1,00,000
2,20,000
Loss on Issue of Debentures will be written off First from Securities Premium Account to the extent of
1,00,000 (balance in Securities Premium Account) and balance 1,20,000 from Statement of Profit and
Loss.
Ans 27. (d) All of the above
Or
Ans. (a) Cash flow from operating activities
Ans 28. (c) Statement of Profit and Loss
Ans 29. (b) Indirect Expenses
Or
(c) .25:1
Ans 30. Payment of Hire Purchase instalment of purchase of fixed asset as principal amount paid is
shown in Investing Activities and interest paid is shown in Financing Activities.
𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
Ans 31. Debt to Capital Employed Ratio = 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑
Capital Employed (First method) : ₹
Share Capital 5,00,000
Reserves and Surplus 1,00,000
Long-term Borrowings 1,60,000
Long-term Provisions 40,000
Capital Employed 8,00,000
Capital Employed (Second method) : ₹
Non-Current Assets 5,20,000
Add: Working Capital (Current Assets ₹ 3,30,000
Less Current Liabilities Rs 50,000) 2,80,000
Capital Employed 8,00,000

𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 2,00,000
Debt to Capital Employed Ratio = 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 = 8,00,000 = 0.25:1
18
Ans 32.
S. Items Heading Sub-Heading (if any)

No.
(i) Interest accrued and due on unsecured Current Liabilities Other Current Liabilities
loan.
(ii) Interest accrued and due on secured loan. Current Liabilities Other Current Liabilities
(iii) Interest accrued but not due on Loan. Current Liabilities Other Current Liabilities
(iv) Capital Work in Progress Non-current assets Property, Plant and
Equipment and Intangible
Assets – Capital work in
progress
(v) Subsidy Reserve Shareholder’s funds Reserve and surplus
(vi) Stores and spares Current assets Inventory
Revenue from Operations (Net Sales)

Ans 33. Net Assets Turnover Ratio = Net Assets (or Capital Employed)
Net Assets = Shareholder's Funds + Non-Current Liabilities
= 4,00,000 + 1,00,000-20,000+ 2,90,000 + 30,000 = 8,00,000
Gross Profit is 25% of Sales, hence goods costing 75 must have been sold for 100
Hence, Revenue from Operations (Sales) = 30,00,000 x100/75 = 40,00,000
Net Assets Turnover Ratio = 40,00,000/8,00,000 = 5 times
Or
Revenue from Operations (Net Sales)
Ans. Fixed Assets Turnover Ratio = Net Fixed Assets
Net Fixed Assets = Plant & Machinery - Accumulated Depreciation + Intangible Assets
= 6,80,000 - 1,20,000 + 40,000 = 6,00,000
Cost of Revenue from Operations = Average Inventory x 5
= 7,20,000 x 5 = 36,00,000
Selling Price is 20% above cost
Hence, Revenue from Operations = 36,00,000 x 120/100 = 43,20,000
Fixed Assets Turnover Ratio = 43,20,000/6,00,000 = 7.2 Times
Ans 34. Cash from operating activities 45,000; Cash used in investing activities 81,000, and Cash from
financing activities 40,000.
Hints: (1) Current year's Depreciation 20,000
(2) Purchase of Non-Current Investments ₹15,000.
19
(3) Increase in Intangible Assets will be treated as purchase of Intangible Assets.
(4) Increase in Bank Overdraft will be treated as cash flow from financing activities while preparing cash
flow statement.
20

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Test Paper Accounts Class 12th (Youtube)

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By DeeCee – Divine Classes

SUBJECT ACCOUNTANCY 055

TIME 3 HOURS MAX. MARKS 80

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. Question 1 to 16 and 27 to 30 carries 1 mark each.

4. Questions 17 to 20, 31and 32 carries 3 marks each.

5. Questions from 21 ,22 and 33 carries 4 marks each

6. Questions from 23 to 26 and 34 carries 6 marks each

PART A (Accounting for Partnership Firms and Companies)

Date Particulars L.F. Dr. (₹) Cr. (₹)

(c) 26: 19:15.

Q 3. When shares are forfeited, Forfeited Shares Accounts is: (1)

(a) debited with the amount received (excluding Securities Premium).

(b) debited with the called-up amount on shares.

(c) credited with the paid-up amount on shares.

(d) credited with the amount received (excluding Securities Premium).

(a) debited with ₹ 2,50,000.

(b) credited with ₹ 2,00,000.

(c) credited with ₹ 2,50,000.

(d) debited with ₹ 2,00,000.

General Reserve 1,00,000

Profit & Loss A/c (Dr.) 2,00,000

Advertisement Suspense A/c 50,000

The necessary adjusting entry will be:

(a) Dr. Shiv and Cr. Mohan by ₹ 25,000.

(b) Dr. Mohan and Cr. Shiv by ₹ 25,000.

(c) Dr. Shiv and Cr. Mohan by ₹ 1,50,000.

(d) Dr. Mohan and Cr. Shiv by ₹ 1,50,000.

(a) ₹ 6 per share

(b) ₹ 8 per share

(c) ₹ 7 per share

(d) ₹ 9 per share

Q 7. While transferring assets to realisation account ……………. Is omitted to be transferred. (1)

Q 8. Discount on issue of Debentures is in the nature of (1)

(a) Revenue loss

(b) Capital loss

(c) Deferred Revenue Expenditure

(d) None of the above

Q. Premium received on issue of debentures may be utilised for

(a) for writing off discount allowed on issue of shares

(b) for writing off premium allowed on redemption of debentures

(c)for writing off preliminary expenses

(d) all of the above

Q 9. “Weighted Average Method” is followed when: (1)

(a) Past profits are same

(b) Past profits show an increasing trend

(c) Past Profits show a decreasing trend

(d) Either (B) or (C)

(a) Preferential Allotment of Shares

(b) Sweat Equity Shares

(c) Private Placement of Shares

(a) Original Value.

(b) Realisable Value.

(c) Revalued Figure.

(d) Current Cost.

The above transaction will result into: (1)

(a) Goodwill of ₹ 20,000

(b) Capital reserve of ₹ 20,000

(c) Goodwill ₹ 10,000 and capital reserve ₹ 10,000

(d) None of the above

Pass necessary entries. (3)

BALANCE SHEET OF C AND D

Pass necessary journal entries for dissolution of the firm.