FIRST TERM EXAMINATION PAPER 2022-23

Sub:ACCOUNTANCY
Class-XII
GeneralInstructions:
(i) Q.No.1 to 18 carries one mark question.
(ii) Q.No.19to22carriesthreemark question.
(iii) Q.No.23to26carriesfourmarkquestion.
(iv) Q.No.27to29carriessixmarkquestion.
(v) Q.No.30to32carries8markquestion.

MultipleChoiceQuestions: 1Markeach
1. A and B are partners in a partnership firm without any agreement. A devotes more
time for the firmas compare to B. A will get the following commission in addition to
profit in the firm’s profit:
(a) 6%ofprofit (b)4%ofprofit (c)5%ofprofit (d)noneofthese
2. Thegoodwillofthefirmisnotaffectedby:
(a) locationothefirm (b)reputationofthefirm
(c)bettercustomerservices (d)noneoftheabove
3. AandBshareprofitsintheratioof3:2.TheyagreetoadmitContheconditionthatAwillsacrifice
325thofhisshareofprofitinfavourofCandBwillsacrificel/25thofhisprofitsinfavour
ofC.Thenewprofit-sharingratiowillbe:
(a)12:9:4 (b)3:2:4 (c)66 : 48 : 11 (d) 48: 66:11
4. AandBarepartnerssharingprofitsintheratioof7:5.Cisadmittedintothepartnershipfor16ths
harewhichheacquiresl/
24thfromAand18thfromB.Cdoesnotpayanythingforhisshareofgoodwill.OnC’sadmission
firm’sgoodwillisvaluedat`1,80,000.Creditwillbegivento:
(a)A `22,500; B`7,500 (b)A `7,500; B`22,500
(c)A`45,000; B`1,35,000 (d)A `1,35,000;B `45,000
5. Aran and Varan are partners sharing profits in the ratio of 4 : 3. Their Balance
Sheetshowedabalanceof`56,000intheGeneralReserveAccountandadebitbalanceof
`14,000 in Profit & Loss Account. They now decided to share the future profits
equally.InsteadofclosingtheGeneralReserveAccountandProfit&LossAccount,itisdecided
topassan adjustment entry for the same.Inadjustment entry :
(a) Dr. Aranby`3,000;Cr. Varanby`3,000
(b) Dr.Aranby`5,000;Cr. Varanby`5,000
(c) Cr.Aranby`5,000;Dr. Varanby`5,000
(d) Cr. Aranby`3,000;Dr. Varanby`3,000
 6. Whatjournalentrywillberecordedforwritingoffthegoodwillalreadyexistinginbalanceshee
tatthetimeofretirementofapartner?
(a) Retiringpartner’scapitalA/c Dr.
ToGoodwillA/c
(b) Allpartners’capitalA/cs(includingretiring) Dr.
(inoldratio)
ToGoodwillA/c
(c) Remainingpartners’capitalA/c Dr.
(ingainingratio)
ToGoodwillA/c
(d) Remainingpartners’capitalA/cs Dr.
(innewratio)
ToGoodwillA/c

7. X,apartner,istobearallexpensesofrealisationforwhichheistobepaid`5,000.Xhadtopay
realisation expenses of ` 3,500. How much amount will be debited to
RealisationAccount?
(a)`500 (b)`3,500 (c)`4,500 (d)`5,000
8. If the loss on reissue of shares is less than the amount forfeited the ‘surplus' or profit
istransferred to:
(a) capitalreserve (b)revenuereserve
(c)profit&lossA/c (d)noneofthese
9. As per the Companies Act, only preference shares, which are redeemable
within_canbeissued.
(a) 24years (b)22 years (c)30 years (d)20 years
Fillintheblanks
10. Goodwillisnotvaluedduring .
11. Theratioinwhichallthepartnersharefutureprofits&lossesisknownas .
12. Atthetimeofadmissionofapartner,contingencyReserveistransferredtoCapitalAccountsof
partnersintheir
13. Thefirmisdissolvedby whenallpartnersgivetheirconsent.
14. Acompanyisanartificialpersoncreatedbylaw,having legalentity.
Note:Readtheassertionandreasoncarefullytomarkthecorrectoptionoutoftheoptionsgiven
below.-
(a) BothAandRaretrueandRisthecorrectexplanationofA.
(b) BothAandRare truebutRisnotthecorrect explanationof A.
(c) AistruebutRisfalse.
 (d) (AisfalsebutRistrue.
15. Assertion(A):Themethodofaccountingtakeintherealandgrossvalueofrevenue.
Reason(R):Itshowsdismalprofit&lossofcompany.
16. Assertion(A):Goodwillisanintangiblebutnotafictitiousassets.
Reason(R):Goodwill I
sanintangibleassetbecauseitdoesnothaveaphysicalexistencebutitisavaluableassetbecausei
tishelpfulin earning excess profits.
17. Assertion(A):Dissolution of partnership firm is called restructuring of the partnership.
Reason(R):Restructuring of the firm leads to the change in profit- sharing ratio and
adjustmentof goodwill.
18. What do you mean by goodwill?
VeryShortQuestions:3Markseach
19. Anil and Beena were partners in a firm sharing profits in the ratio of 4: 3. On 1st
April, 2015, they admitted Chahat as a new partner for 1/4th share in the profits
of the firm. On the date of Chahat’s admission the Balance Sheet of Anil and
Beena showed a General Reserve of ₹ 70,000, a debit balance of ₹ 7,000 in the
profits and loss account and an investment Fluctuation fund of ₹10,000.
The following was agreed upon on Chahat’s admission:
a. Chahat will bring ₹ 80,000 as her share of Goodwill premium of ₹21,000
in cash.
b. The market value of investment was ₹17,000 less than the book value.
c. The profit sharing ratio was agreed at 2:1:1.
Pass the necessary journal entries for the above on Chahat’s admission
20. LandMarepartnerssharingprofitsintheratioof3:2withcapitalsof`12,00,000and
`9,00,000respectively.Interestoncapitalisagreed@5%p.a.Mistobeallowedanannualsalary
of ` 90,000 which has not been withdrawn. Profit for the year ended 31st
March,2021beforeinterest oncapital butafter chargingM’s salaryamounted to`3,60,000.
A provision of 5% of the profit is to be made in respect commission to the
manager.Prepareanaccountshowingtheallocationprofits.
21. Passthenecessaryjournalentriesforthefollowingtransactionsonthedissolutionofthefirm of
Sudha and Shiva after the various assets (other than cash) and outside
liabilitieshavebeentransferredto RealisationAccount.
(i) Sudha agreedtopayoffher husband’sloan`19,000
(ii) Adebtorwhosedebtof`9,000waswrittenoffinthebooksandpaid `7,500
infullsettlement,
(iii) Shivatookoverallinvestmentsat`13,300.
(iv) Sundrycreditors`10,000werepaidat9%discount.
(v) Realisationexpenses`3,400werepaidbySudhaforwhichshewasallowed`3,000.
 (vi) Lossonrealisation`9,400wasdividedbetweenSudhaandShivain3:2ratio.
22. Vikas and Vivek were partners in a firm sharing profits in the ratio of 3:2. On 1st April, 2019, they
admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of ₹1,50,000.
The new profit-sharing ratio between Vivek and Vikash will remain the same but they decided to bear
any deficiency on account of guarantee to Vandana in the ratio 2: 3. The profit of the firm for the year
ended 31st March, 2020 was ₹9,00,000.
Prepare Profit and Loss Appropriation Account of Vikash, Vivek and Vandana for the year ended 31st
March, 20.
VeryShortQuestions:4Markseach
23. Akil, Saleem and Waseem were partners sharing profits in the ratio of 2 : 1 : 1.
Akilwithdrew ` 36,000 and Saleem withdrew ` 48,000 during the year. Interest on
drawings@ 6% p.a. was charged, distribute profit without providing interest
ondrawings.
Showingyourworkingclearly,passthenecessaryadjustmententrytorectifytheerror.
24. Calculate the value of goodwill on the basis of three years’ purchase of the
weightedaverage profits of the last five years. Profits to be weighted 1, 2, 3, 4 and 5, the
greatestweightageto be givento last year. Profitsof the lastfive years were :
Yearended `
31stMarch,2019 Profit 70,000
31stMarch,2019 Profit 1,15,000(afterconsideringabnormallossof` 41,500)
31stMarch,2020 loss 40,000(afterconsideringabnormalgainof` 20,000)
 31stMarch,2021 Profit 1,80,000
31stMarch,2022

Profit2,00,000BooksofAccountsofthefirmrev
ealedthat:
(i) Closingstockason31stMarch,2018wasovervaluedby`30,000.
(ii) Repairs to machinery ` 60,000 were wrongly debited to Machinery Account on 1st
July,2020.Depreciationwas
chargedonmachinery20%p.a.ondiminishingbalancemethod.
25. Madan died on 1st September, 2012. The partnership deed provided for the following on the death of a
partner
Goodwill of the firm to be valued at two years’ purchase of average profits for the last three years which were
Rs.64,000.
Madan’s share of profit till the date of his death was to be calculated on the basis of sales. Sales for the year ended
31st March, 2012 amounted to Rs. 1,50,000 and that from 1st April to 1st September, 2012 Rs. 90,000. The profit for
the year ended 31st March, 2012 was Rs. 50,000. Calculate madan amount credited ti his executors account?
Q25.Alpha and Beta are partners with capital ₹ 100,000 and ₹ 80,000 respectively.
The profit of the firm for the year ending 31st March, 2020 amounted to 105,625
before considering the following adjustments:
1. Alpha advance loan to firm amounting to ₹50,000 on 1st October, 2019.
2. Interest on capital and interest on drawing is 5% p.a.
3. Drawing of Alpha is ₹20,000 and beta is ₹15,000.
4. Alpha was allowed commission @ 3% on conducting sales ₹4,00,000.
5. Beta was allowed commission @ 5% on distributable profit after
charging all commission.
6. It was also decided to keep 10% of divisible profit to Reserve Fund.
You are required to pass necessary transfer journal entries in the books of
Alpha and Beta at the end of the year 31st March 2020

ShortQuestions:6Markseach
26. Pankaj and Raman were partners in a firm sharing profits in the ratio of 3 : 2. In spite
ofrepeated reminders by the authorities, they kept dumping hazardous material into
anearby river. The court ordered for the dissolution of their partnership firm on
31stMarch, 2020. Pankaj was deputed to realise the assets and to pay the liabilities. He
waspaid`500ascommissionforhisservices.Thefinancialpositionofthefirmon31stMarch,20
20was as follows:
 BalanceSheetasat31stMarch,2020
Liabilities ` Assets `
Creditors 40,000 Building 60,000
Mrs.Pankaj'sLoan 20,000 Investment 15,300
Raman'sLoan 12,000 Debtors 17,000
Less:Provisionfor
InvestmentFluctuationFund 4,000 15,000
DoubtfulDebts 2,000
CapitalA/cs BillReceivable
Pankaj 21,000 Cash 3,000
Raman 21,000 42,000 ProfitandLoss 4,000
Goodwill 2,000
1,18,000 1,18,000
Followingwasagreedupon:
(i) Pankajagreedtopayoffhiswife’sloan.
(ii) Debtorsrealised `12,000.
(iii) Ramantookallinvestmentsat `13,500.
(iv) Buildingrealised`76,000.
(v) Creditorswerepayableafter2months.Theywerepaidimmediatelyat10%discount.
(vi) Billsreceivableweresettledatalossof`700.
(vii) Realisationexpensesamountedto`1,250.
Preparerealisationaccount,partner’scapitalaccountsandcashaccounttoclosethebooks
ofthefirm.Identify thevaluebeingconveyedinthequestions.
27. K, L, and M were partners. Their capitals were K- ₹30,000; L- ₹20,000 and M- ₹10,000
respectively. According to the partnership deed, they entitled to an interest on capital
at 5% p.a. In addition, L was also entitled to draw a salary of ₹ 500 per month. M was
entitled to a commission of 5% on the profits after charging the interest on capital, but
before charging the salary payable to L. The net profits for the year were ₹30,000
distributed in the ratio of capitals without providing for any of the above adjustments.
The profits were to be shared in the ratio 5:3:2. Pass the necessary adjustment entry
showing the workings clearly.
28. R,SandTwereinpartnershipsharingprofitsandlossesequally.Tretiresfromthefirm.After
adjustments, his Capital Account shows a credit balance of ` 1,80,000 as on
1stApril,2021.Balancedueto‘T’istobepaidinthreeequalannualinstalmentsalongwithintere
st@10%p.a.PrepareT’sLoanAccountuntilheispaidtheamountduetohim.Thefirmclosesitsb
 ookson31stMarcheveryyear.
LongQuestions:8Markseach

29. Lisa, Monika and Nisha were partners in a firm sharing profits and losses in the ratio
of2:2: 1.On 31st March,2019, their BalanceSheet was asfollows:
BalanceSheetofLisa,MonikaandNishaasat31st March,2019
Liabilities Amount AssetsLa Amount
Trade Creditors 1,60,000 nd and 10,00,000
BillsPayable 2,44,000 BuildingMachiner 12,00,000
Employees'providentFund 76,000 y 10,00,000
Capitals: Stock 4,00,000
Lisa 14,00,000 Sundry 40,000
Monika 14,00,000 DebtorsBank
Nisha 3,60,000 31,60,000
36,40,000 36,40,000
On31stMarch,2019,Monikaretiredfromthefirmandtheremainingpartnersdecidedtocarryon the
business. It was agreed that:
(a) Landandbuildingbeappreciatedby`2,40,000andmachinerybedepreciatedby10%.
(b) 50%ofthestockwastakenoverbytheretiringpartneratbookvalue.
(c) Provisionfordoubtfuldebtswastobemadeat5%ondebtors.
(d) Goodwill of the firm be valued at ` 3,00,000 and Monika’s share of goodwill
beadjustedintheaccountsofLisaandNisha.
(e) The total capital of the new firm be fixed at ?. 27,00,000 which will be in
theproportion of the new profit sharing ratio of Lisa and Nisha. For this
purpose,currentaccountsofthepartnersweretobeopened.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of
thereconstitutedfirm onMonika’s

30. TheBalanceSheetofX,YandZwhoshareprofitsandlossesintheratioof3:2:1,ason1stApril,202
1 is as follows:

Liabilities Amount(`) Assets Amount(`)

CapitalA/cs: Y'sCapitalAccount 10,000
X 1,80,000 LandandBuilding 2,20,000
Y 1,50,000 PlantandMachinery 64,500
Z 1,20,000 4,50,000 Furniture 80,000
Current A/cs : Investments 36,500
X 6,000 BillsReceivable 17,000
Z 4,000 10,000 SundryDebtors 43,500
Workmencomp.Reserve 15,0000 Stock 92,000
Profit&Loss A/c 9,000 Bank 43,500
Creditors 70,000
BillsPayable 53,000
6,07,000 6,07,000

Ontheabovedate,Wis admittedasapartneronthe followingterms:

1
(a) Wwillbring` 1,20,000ashiscapitalandget th share in the
profits.6
(b) Hewillbringnecessaryamountforhisshareofgoodwillpremium.Goodwillofthefirmis
valuedat`1,20,000.
(c) Newprofit-sharingratiowillbe2:2:1:1.
(d) Aliabilityof` 2,900willbecreatedagainstclaimfordamages.
(e) Thevalueofstock,furnitureandinvestmentsisreducedby20%,whereasthevalueofplan
tandmachinerywillbeappreciatedby20%respectively.
(f) Buildingisfoundovervaluedby10%.
(g) Liabilityclaimforworkmencompensationreserve3,000.
(h) CapitalaccountsofthepartnerswillbeadjustedonthebasisofW’scapitalthroughtheir
current accounts. Prepare Revaluation Account, Partners’ Current
Accounts,CapitalAccountsand Balance Sheet.