Navy Children School, Delhi.

Half Yearly Exam

CLASS XII (2023-24)
Sample Paper-1
Time : 3 Hrs. Max.Marks: 80

General Instructions:

1.This question paper contains 34 questions. All questions are compulsory.

2.Question No. 1 to 20 carries 1 mark each.

3.Question No. 21 to 26 carries 3 marks each.

4.Question No. 27 to 29 carries 4 marks each.

5.Question No. 30 to 34 carries 6 marks each.

Q1.Retiring Partner’s share of goodwill is debited to remaining partners in

their:
A.Capital Ratio
B.Gaining Ratio
C.New Profit Sharing Ratio
D.None of these

Q2.Which of the following is not a mode of dissolution of the firm?

(a) Mutual Agreement

(b) On completion of the venture, if provided in partnership deed
(c) Dissolution by Court
(d) Retirement of a partner

Q3.On retirement/ death of a partner, the remaining partner(s) who have

gained due to change in profit sharing ratio should compensate the:
A.Retiring partners only.
B.Remaining partners (who have sacrificed) as well as retiring partners.
C.Remaining partners only (who have sacrificed).
D.None of these.

Q4.Which of the following is the method for valuation for Goodwill?

A.Average profit method.
B.Super profit method.
C.Capitalisation method.
D.All of the above.
Q5.Choose the correct alternative –On the admission of a new partner
increase in the value of assets is debited to:
A.Profit and Loss Adjustment account.
B.Assets account.
C.Old partner’s capital account.
D.None of the above.
.

Q.6When A and B sharing profits and losses in the ratio of 3 : 2 admit C as a

partner giving him 1/5th share of profits. This will be given by A and B:
1. Equally.
2. In the ratio of their profits.
3. In the ratio of their capitals.
4. None of the above

Q7.X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z
for 1/5th share of profits, for which he paid ₹ 1,20,000 against capital and
₹ 60,000 as goodwill. Find the capital balances for each partner taking Z's
capital as base capital.
A.₹ 3,00,000, ₹ 1,20,000 and ₹ 1,20,000
B.₹ 3,00,000, ₹ 1,20,000 and ₹ 1,80,000
C.₹ 1,92,000, ₹ 2,88,000 and ₹ 1,20,000
D.₹ 3,00,000, ₹ 1,80,000 and ₹ 1,80,000

Q8.X and Y shared profits and losses in the ratio of 3 : 2. With effect from 1st
April, 2018 they agreed to share profits equally. The goodwill of the firm was
valued at 60,000. The necessary single adjustment entry will be:
A.Dr. Y and Cr. X with ₹ 6,000
B.Dr. X and Cr. Y with ₹ 6,000
C.Dr. X and Cr. Y with ₹ 600
D.Dr. Y and Cr. X with ₹ 600

Q9.A, B and Care partners sharing profits in the ratio of 5 : 3 : 2. They

decided to share future profits in the ratio of 2 : 3 : 5. with effect from 1st April
2018. They also decided to adjust the following accumulated. profits, losses
and reserves without affecting their book values, by passing an adjustment
entry:
Book value (₹)
Profit and Loss A/c 15,000
General Reserve. 60,000
Advertising Suspense A/c 30,000

The necessary adjustment entry will be:

A.Dr. C and Cr. A with ₹ 13,500
B.Dr. A and Cr. C with ₹ 13,500
C.Dr. B and Cr. A with ₹ 13,500
D.Dr. A and Cr. B with ₹ 13,500
Q10.A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. They
decide to share the future profits in the ratio of 2 : 3 : 5. What will be the
accounting treatment of Workmen Compensation Reserve appearing in the
Balance Sheet on that date when no information is available for the same?
A.Distributed among the partners in their capital ratio.
B.Distributed among the partners in their new profit-sharing ratio.
C.Distributed among the partners in their old profit-sharing ratio.
D.Carried forward to new Balance Sheet.

Q11.The deceased partner’s due amount is to be paid to the ________.

A.Friends
B.The Mother
C.The executors
D.The wife

Q12.On retirement/ death of a partner, the retiring/ deceased partner’s capital

account will be credited with:
A.His/ her share of goodwill.
B.Goodwill of the firm.
C.Shares of goodwill of remaining partners.
D.None of these.

Q13.A and B are partners with a profit sharing ratio of 2 : 1 and capitals of ₹
3,00,000 and ₹ 2,00,000 respectively, They are allowed 6% p.a. interest on
their capitals and are charged 10% p.a. interest on their drawings. Their
drawings during Profit of the firm before any appropriations wasthe year were
A ₹ 60,000 and ₹ 40,000. B's share of net profit as per profit and loss
appropriation account to ₹ 40,000. Net Profit of the firm before any
appropriations was:
A.₹ 1,22,000
B.₹ 1,13,000
C.₹ 1,17,000
D.₹ 1,45,000

Q14.Interest on capital will be paid to the partners if provided for in the

partnership deed but only out of:
A.Profits.
B.Reserves.
C.Accumulated Profits.
D.Goodwill.

Q15.In the absence of an agreement to the contrary, the partners

____________.
A.Are entitled for 6% interest on loans to the firm, only when there is profit.
B.Are entitled for 6% interest on loans to the firm, whether there is profit or not.
C.Are not entitled for any interest on loans to the firm.
D.Are entitled for 9% interest on loans, only when there are profits.

Q16.Financial statements are used by __

A.Owners
B.Creditors
C.Tax authorities
D.All the three

Q17.If the cost of goods sold is Rs.1 lakh the value of opening and closing
stock is Rs.20,000 and Rs.30,000 respectively the stock turnover ratio will be
_____________.
A.3.3 times
B.4 times
C.5 times
D.2.3 times

Q18.The ______________ of a business firm is measured by its ability to

satisfy its short - term obligations as they become due.
a.Activity.
B.Liquidity.
C.Debt.
D.Profitability.

Q19.Goodwill of a company is shown on the assets side of the Balance Sheet

under the head.
A.Current Assets
B.Non-current Assets
C.Miscellaneous Expenditure
D.None of these

Q20.As per AS-26.............. is recorded in the books of Accounts.

a) Purchased
b)Self Generated
c) Both a and b
d) None of these

Q21.The capital of the firm of Anuj and Benu is ₹ 10,00,000 and the market
rate of interest is 15%. Annual salary to the partners is ₹ 60,000 each. The
profit for the last three years were ₹ 3,00,000, ₹ 3,60,000 and ₹ 4,20,000.
Goodwill of the firm is to be valued on the basis of two years purchase of last
three years average super profits. Calculate the goodwill of the firm.

Q22.Hemant and Nishant were partners in a firm sharing profits in the ratio
of 3 : 2. Their capitals were ₹ 1,60,000 and ₹ 1,00,000 respectively. They
admitted Somesh on 1st April, 2013 as a new partner for 1515 share in the
future profits. Somesh brought ₹ 1,20,000 as his capital. Calculate the value
of goodwill of the firm and record necessary journal entries for the above
transactions on Somesh’s admission.

Q23.X Ltd. has a current ratio of 3 : 1 and quick ratio of 2 : 1. If the excess of
current assets over quick assets as represented by stock is ₹ 40,000,
calculate current assets and current liabilities.
Q24.On 1.4.2013, Brij and Nandan entered into partnership to construct toilets
in government girls schools in the remote areas of Uttarakhand. They
contributed capitals of ₹ 10,00,000 and ₹ 15,00,000 respectively. Their profit
sharing ratio was 2 : 3 and interest allowed on capital as provided in the
Partnership Deed was 12% per annum. During the year ended 31.3.2014, the
firm earned a profit of ₹ 2,00,000.Prepare Profit and Loss Appropriation
Account of Brij and Nandan for the year ended 31.3.2014.

Q25.A and B are partners in a firm sharing profits and losses in the ratio of
2:1 .They decided to take C into partnership for 1/4th share on 1st April
2018.For this purpose,the Goodwill is to be valued at four times the average
annual profit of the previous or five years whichever is higher.The agreed
profits for the Goodwill purpose of the past five years are :
Year 2013-14 2014-15 2015-16 2016-17 2017-18
Profit 14000 15500 10000 16000 15000

Q26.Jayant, Kartik and Leena were partners in a firm sharing profits and
losses in the ratio 5:2:3. Kartik died and jayant and Leena decided to continue
the business.Their Gaining Ratio was 2:3. Calculate the New profit sharing
ratio of Jayant and Leena.

Q27.From the following information related to Naveen Ltd. Calculate Return

on Investment and Total Assets to Debt Ratio.
Information : Fixed Assets ₹ 75,00,000; Current Assets ₹ 40,00,000; Current
Liabilities ₹ 27,00,000; 12% Debentures ₹ 80,00,000 and Net Profit before
Interest, Tax and Dividend ₹ 14,50,000.

Or

On the basis of the following information, calculate:Debt-Equity Ratio and

Working Capital Turnover Ratio.

Information: ₹
Net Sales 60,00,000
Cost of goods sold 45,00,000
Other current assets 11,00,000
Current liabilities 4,00,000
Paid up share capital 6,00,000
6% Debentures 3,00,000
9% Loan 1,00,000
Debenture Redemption Reserve2,00,000
Closing Stock 1,00,000

Q28.Under which major heads the following items will be placed in the
Balance Sheet of a company as per Schedule VI, Part I of the Companies Act,
1956?
1.Securities Premium Reserve
2.Balances with banks
3.Term loans from bank
4.Goods-in-transit
5.Loans repayable on demand
6.Computer software
7.Unpaid dividends and
8.Vehicles.

Q29.Kumar, Gupta and Kavita were partners in a firm sharing profits and
losses equally. The firm was engaged in the storage and distribution of
canned juice and its godowns were located at three different places in the city.
Each godown was being managed individually by Kumar, Gupta and Kavita.
Because of increase in business activities at the godown 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.
Pass necessary Journal Entry for the treatment of goodwill on change in profit
sharing ratio of Kumar, Gupta and Kavita.

Q30.Jay, Vijay and Karan were partners of an architect firm sharing profits in
the ratio of 2 : 2 : 1. Their partnership deed provided the following:
1.A monthly salary of ₹ 15,000 each to Jay and Vijay.
2.Karan was guaranteed a profit of ₹ 5,00,000 and Jay guaranteed that he will
earn an annual fee of ₹ 2,00,000. Any deficiency arising because of
guarantee to Karan will be borne by Jay and Vijay in the ratio of 3 : 2. During
the year ended 31st March, 2018 Jay earned fee of ₹ 1,75,000 and the profits
of the firm amounted to ₹ 15,00,000.
Showing your workings clearly prepare Profit and Loss Appropriation Account
and the Capital Account of Jay, Vijay and Karan for the year ended
31st March, 2018.

Q31.X, Y and Z were partners sharing profits in the ratio of 3 : 2 : 1. On

31st March 2008, their Balance Sheet stood as
under.
X died on 31st May 2008. It was agreed that:
Goodwill was valued at 3 years’. purchase of the, average profits of the last
five years, which were, 2003 : ₹ 40,000; , 2004 : ₹ 40,000; 2005 : ₹ 30,000;
2006 : ₹ 40,000 and 2007 : ₹ 50,000.
Machinery was valued at ₹ 70,000, Patents at ₹ 20,000 and Buildings at ₹
66,000.
For the purpose of calculating X’s share of profits till the date of death, it was
agreed that the same be calculated based on the average profits for the last 2
years.
The executor of the deceased partner is to be paid the entire amount due by
means of a cheque.
Prepare X’s Capital Account to be .rendered to his executor and also a journal
entry for the settlement of the amount due to the executor.

Q32.Sanjana and Alok were partners in a firm sharing profits and losses in the
ratio 3 : 2. On 31st March, 2018 their Balance Sheet was as follows:

On 1st April, 2018, they admitted Nidhi as a new partner for 1/4th share in the
profits on the following terms:
Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the
necessary amount in cash for her share of goodwill premium, half of which
was withdrawn by the old partners.
Stock was to be increased by 20% and furniture was to be reduced to 90%.
Investments were to be valued at ₹ 3,00,000. Alok took over investments at
this value.
Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok
were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts and the Balance
Sheet of the reconstituted firm on Nidhi’s admission.

Q33.Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 :
2. Their Balance Sheet as at 31st March, 2019 was as under:

On the above date, Kumar retired. The terms of retirement were:

1.Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000.
2.Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000.
3.Investments were sold for ₹ 11,000.
4.There was an unrecorded creditor of ₹ 7,000.
5.An amount of ₹ 30,000 was paid to Kumar in cash which was contributed by
Prem and Aarti in the ratio of 2 : 1. The balance amount of Kumar was settled
by accepting a Bill of Exchange in favour of Kumar.
Prepare the Revaluation Account, Capital Accounts of partners and the
Balance Sheet of the reconstituted firm.
OR
Giriija, Yatin and Zubin were partners sharing profits in the ratio 5 : 3 : 2.
Zubin died on 1st August, 2015. Amount due to Zubin’s executor after all
adjustments was ₹ 90,300. The executor was paid ₹ 10,300 in cash
immediately and the balance .in two equal annual instalments with interest @
6% p.a. starting from 31st March, 2017. Accounts are closed on 31st March
each year.
Prepare Zubin’s Executors Account till he is finally paid.

Q34.Following is the Balance sheet of Karan and Sandeep who share profits
and losses equally as on 31st march 2010
 Liabilities Rs Assets Rs
Capitals-- Bank 40,000
Karan 1,00,000 Debtors 25,000
Sandeep 50,000 Stock 35,000
Creditors 30,000 Machinery 60,000
Workmen compensation fund 15,000 Furniture 40,000
Bank loan 5000
2,00,000 2,00,000
The firm was dissolved on the above date.
Karan agreed to take over 50% of the stock at 10% less on its book value, the
remaining stock was sold at a gain of 15%. Furniture and machinery realized
for Rs 30,000 and 50,000 respectively.
There was unrecorded Investments which was sold for Rs 25,000.
Debtors realized Rs 31,500 (with interest) and Rs 1200 was recovered for bad
debts written off last year.
There was an outstanding bill for repairs which had to be paid Rs 2000.
Prepare necessary Ledger accounts to close the books of the firm.