Monthly Test-2, 2023-24

Class – XII, Subject: Accountancy

Time: 40 Min MM: 20
General Instruction:
(i) All Questions are compulsory to attend.
(ii) Prepare Account where ever it is necessary.

Q.No Question’s Marks

01. Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3:2:1:4. Kumar retires and 1
his share is acquired by Lakshya and Manoj in the ratio of 3:2. Calculate new profit sharing ratio:
(a) 9:11:20 (b) 11:9:20 (d) 9:20:11 (d) 20:9:11
02. A, B and C were partners in a firm sharing profit and losses in the ratio of 2:2:1. The capital balance are 1
₹ 50,000 for A, ₹ 70,000 for B, ₹ 35,000 for C. B decided to retire from the firm and balance in reserve
on the date was₹ 25000. If goodwill of the firm was valued at ₹ 30,000 and profit on revaluation was ₹
7,500, then, what amount will be payable to B?
(a) ₹ 70,820 (b) ₹ 76,000 (c) ₹ 75,000 (d) ₹ 95,000
03. Assertion (A):Unrecorded assets at time of death of partner is recorded on credit side of Revaluation A/c. 1
Reason (R): Revaluation account is credited due to increase in liability.
(a) Both Assertion and reason are true and reason is correct explanation of assertion.
(b) Assertion and reason both are true but reason is not the correct explanation of assertion.
(c) Assertion is true, reason is false.
(d) Assertion is false, reason is true
04. If three partners A, B & C are sharing profit as 5:3:2, then on the death of a partner A, how much B & C 1
will pay to A’s executor on account of goodwill. Goodwill is tobe calculated on the basis of 2 years
purchase of last 3 years average profit. Profits for the last 3 years are ₹ 3, 28,000; ₹ 3, 46,000 & ₹ 4,00,000.
(a) ₹ 3,16,000 and ₹ 1,42,000
(b) ₹ 2,44,000 and ₹ 2,16,000
(c) ₹ 4,29,600 and ₹ 2,86,400
(d) ₹ 2,16,000 and ₹ 1,44,000
05. Mohit, Neeraj & Sohan are partners in firm sharing profits in the ratio of 2:1:1. 3
Neeraj retires and Mohit and Sohan decided that the capital of the new firm will be
fixed at ₹ 1, 20,000. The capital accounts of Mohit and Sohan show a credit balance
of ₹ 82,000 and ₹ 41,000 respectively after making all the adjustments.
Calculate the actual cash to be paid off or to be brought in by the continuing partners
and pass the necessary journal entries.
06. Anshul, Babita & Chander were partners in a firm running a successful business of car accessories. They 3
had agreed to share profits and losses in the ratio of 1/2:1/3:1/6 respectively. After running business
successfully and without any disputes for 10 years, Babita decided to retire due to old age. Anshul and
Chander decided to share future profits and losses in the ratio of 3:2. The accountant passed the following
journal entry for Babita share of goodwill and missed some information.
Fill inthe missing figures in the following Journal entry and calculate the gaining ratio.

1
 Date Particulars L.F Dr (₹) Cr (₹)
Anshul’s Capital A/c Dr ---------
Chander’s Capital A/c 21,000
To Babita’s Capital A/c ----------
(Chander’s share of Goodwill
debited to the amounts of continuingpartners
in their gaining ratio)

07. Danish, Ana and Pranjal are partners in a firm sharing profits and losses in the ratio of 5:3:2.Their books 4
are closed on March 31st every year.
Danish died on September 30th 2019, The executors of Danish are entitled to:-
His share of Capital i.e. ₹ 5, 00,000 along-with his share of goodwill. The total goodwill of the firm was
valued at ₹ 60,000.
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, 2019 was ₹ 2, 00,000 and profit for the same year was 10% on sales. Sales shows a growth
trend of 20% and percentage of profit earning is reduced by 1%.
Amount payable to Danish was transferred to his executors.
Pass necessary Journal Entries and show the workings clearly.
08. On 31st March, 2022 the Balance Sheet of Bhima, Arjuna and Nakula were sharing profits and losses in 6
the ratio of 3:2:1. Stood as follows:-
Balance Sheet as at 31-03-2022
Liabilities (₹) Assets (₹)
Bank Overdraft 30,000 Land and Building 1,50,000
Bills Payable 10,000 Machinery 72,000
Sundry Creditors 32,400 Debtors 30,000
Capital A/c’s: Less: Reserve 600 29,400
Bhima - 95,000 Stock 27,000
Arjuna - 90,000 Cash 24,000
Nakula - 45,000 2,30,000
3,02,400 3,02,400

Arjuna retires on the same day and the following re-adjustment of assets and liabilities have been agreed
upon:
(a) That the land and Building be appreciated by 10%.
(b) That a Provision of ₹ 4,500 be made in respect of an Outstanding Bill for repairs.
(c) That Machinery be decreased by 10%.
(d) That the Reserve for Doubtful Debts be brought up to 5% on Debtors.
(e) That out of the amount of insurance which was debited to Profit & Loss A/c, ₹ 3,000 be carried
forward for unexpired insurance.
(f) That the Goodwill of the entire firm be fixed at ₹ 54,000 and Sanju’s Share of the same be
adjusted in to the accounts of Bhima & Nakula, who are going to share future profits in the
proportion of 3:1 respectively.
(g) That Sanju shall be paid ₹ 25,000 immediately what is due to him, balance amount is transferred
to his loan A/c.
Prepare Revaluation A/c, Capital A/c & Balance Sheet of the firm of Bhima & Nakula as at 31/03/2022.