MONTESSORI CAMBRIDGE SCHOOL PATHANKOT

ACCOUNTANCY PRE-BOARD I
Time:3hrs. CLASS – XII (SET B) MM:80

GENERAL INSTRUCTIONS:
➢ This question paper contains 34 questions. All questions are compulsory.
➢ This question paper is divided into two parts, Part A and B.
➢ Part - A is compulsory for all candidates.
➢ 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.
➢ Question 1 to 16 and 27 to 30 carries 1 mark each.
➢ Questions 17 to 20, 31and 32 carries 3 marks each.
➢ Questions from 21 ,22 and 33 carries 4 marks each
➢ Questions from 23 to 26 and 34 carries 6 marks each
➢ 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. Z Ltd. forfeited 1,000 equity shares of Rs.10 each for the non-payment of the first call of Rs.2 per
share. The final call of Rs.3 per share was yet to be made. Calculate the maximum amount of
discount at which these shares can be reissued. 1
a) Rs. 5000 b) Rs. 8000 c) Rs. 7000 d) Rs. 2000

2. A,B and C are partners sharing Profits & Losses in 6:3:1 B is given a guaranteethat his share of
profit will not be less than Rs. 22,000 and deficiency if any willbe borne by A and C. the profits for
the year ended 31st March 2022 was Rs. 50,000. What is the amount of deficiency born by A and C
(a) A Rs.5000; C Rs.2000 (b) A Rs.4500; C Rs.2500 1
(c) A Rs.6000; C Rs.1000 (d) A Rs.4000; C Rs.3000

3. As per Companies Act 2013, Securities Premium Balance can be utilised for which of the
following purpose? 1
a) For distribution of dividend.
b) Providing for Premium payable on Redemption of Debentures.
c) Writing off all Capitalized Expenditures
d) Buy Back of Debentures

4. Goodwill of a firm of A and B is valued at ₹30,000. It is appearing in the books at ₹12,000. C is

admitted for 1/4 share. What amount he is supposed to bring for goodwill? 1
(A) ₹3,000 (B) ₹4,500 (C) ₹7,500 (D) ₹10,500
5. Amit and Sumit are partners. Amit draws a fixed amount at the beginning of every month. Interest
on drawings is charged @ 6% p.a. At the end of the year interest on Amit's drawings amounts to
Rs. 1,950. Monthly drawings of Amit were: 1
a) Rs. 2000 b) Rs. 2500 c) Rs. 3000 d) Rs. 5000
OR
Samar, a partner withdrew Rs. 6,000 in the beginning of each quarter and interest on drawings
was calculated as Rs. 1,200 at the end of accounting year31 March 2022. What is the rate of interest
on drawings charged?
a) 6% p.a. b) 8% p.a. c) 10% p.a. d) 12% p.a.

6. On dissolution of a firm, debtors were ₹17,000. Of these ₹500 became bad and therest realized 60%.
Which account will be debited and by how much amount 1
a) Realization Account by ₹16,500 b) Profit & Loss Account by ₹500
c) Cash Account by ₹9,900 d) Debtors Account by ₹7,100
7. A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is Rs.
2,50,000. The total interest on partner’s drawing is Rs.4,000. A’s salary is Rs. 4,000 per quarter and
B’s salary is Rs. 40,000 per annum. Calculate the net profit/loss earned during the year. 1

8. Given below are two statements, one labelled as Assertion (A) and the otherlabelled as Reason (R)
Assertion (A): Transfer to reserves is shown in P & L Appropriation A/c.
Reason (R): Reserves are charge against the profits.
In the context of the above statements, which one of the following is correct? 1
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.

9. Calculate the amount of second & final call when Aakriti Ltd, issues Equity shares of Rs.10 each at
a premium of 40% payable on Application Rs.3, On Allotment Rs.5, On First Call Rs.2. 1
(A) Second & final call Rs.3.
(B) Second & final call Rs.4.
(C) Second & final call Rs.1.
(D) Second & final call Rs.14.
OR
X Ltd. invited applications for issuing 500, 12% debentures of Rs. 100 each ata discount of 5%.
These debentures were redeemable after three years at 10% premium. Applications for 600
debentures were received. Pro-rata allotment was made to all the applicants. The amount debited
to loss on issue of debentures account is:
a) Rs. 7500 b) Rs. 9000 c) Rs. 10000 d) Rs. 12000

10. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2:1. On 1st April 2021,
they decided to change their profit-sharing ratio to 5:3:2. Onthat date, debit balance of Profit &
Loss A/c Rs.30,000 appeared in the balancesheet and partners decided to pass an adjusting entry
for it. Which of the undermentioned options reflect correct treatment for the above treatment?
(A) B’s capital account will be debited by Rs.3,000 and A’s capital accountcredited by Rs.3,000 1
(B) C’s capital account will be credited by Rs.3,000 and B’s capital account willbe credited by Rs.3,000
(C) B’s capital account will be debited by Rs.30,000 and A’s capital accountcredited by Rs.30,000
(D) B’s capital account will be debited by Rs.3,000 and A’s and C’s capitalaccount credited by Rs.2,000
and Rs.1,000 respectively.
OR
Sandeep and Mandeep are partners sharing profits and losses in the ratio of 2:3 with the capitals of
Rs. 5,00,000 and Rs. 6,00,000 respectively. On 1st January 2022, Sandeep and Mandeep granted
loans of Rs. 20,000 and Rs. 10,000 respectively to the firm. Determine the amount of loss to be borne
by each partner for the year ended 31st March 2022 if the loss before interest for the year amounted
to Rs. 2,500.
a) Share of Loss Sandeep –Rs. 1,250 Mandeep – Rs. 1,250
b) Share of Loss Sandeep –Rs. 1,000 Mandeep – Rs. 1,500
c) Share of Loss Sandeep –Rs. 820 Mandeep – Rs. 1,230
d) Share of Loss Sandeep –Rs. 1,180 Mandeep – Rs. 1,770

11. Parth and Krish are partners sharing profits and losses in the ratio of 3:1. Their capitals at the end
of the financial year 2021-2022 were Rs. 1,50,000 and Rs. 75,000. During the year 2021-2022,
Parth’s drawings were Rs. 20,000 and the drawings of Krish were Rs. 5,000, which had been duly
debited to partner’s capital accounts. Profit before charging interest on capital for the year was
Rs. 16,000. The same had also been debited in their profit-sharing ratio. Krish had brought
additional capital of Rs. 16,000 on October 1, 2015. Opening capital of Krish is:- 1
a) Rs.80,000 b) Rs.76,000 c) Rs. 60,000 d) Rs. 1,58,000
12. Trek Ltd. purchased a running business of Rex Ltd for a sum of Rs. 12,00,000. Trek Ltd. paid Rs.
60,000 by drawing a promissory note in favour of Rex Ltd., Rs.1,90,000 through bank draft and
balance by issue of 8% debentures of Rs. 100 each at a discount of 5%. The assets and liabilities of
Rex Enterprises consisted of Fixed Assets valued at Rs. 17,30,000 and Trade Payables at Rs.
3,20,000. No of debentures issued are: - 1
a) 9500 b) 9000 c) 10,000 d) 12,000
OR
Surya Ltd purchased machinery worth Rs. 12,50,000 from Chandra equipment Ltd. and paid
consideration by issuing 8000; 6% debentures of Rs. 100 each at25% premium and balance amount
by accepting a bill of exchange payable after3 months. Calculate the amount paid by accepting Bill
of exchange
a) Rs. 2,50,000 b) Rs. 4,50,000 c) Rs. 2,00,000 d) Rs. 4,00,000

13. A nand Ltd, issued a prospectus inviting applications for 2,000 shares. Applications were received
for 3,000 shares and pro- rata allotment was made to the applicants of 2,400 shares. If Krishna has
been allotted 40 shares, how many shares he must have applied for? 1
a) 40 b) 44 c) 48 d) 52
14. Rishab, Krishan and Darshan were partners in a firm sharing Profits and Lossesin 3:2:1. Rishab
died on 30th September 2021. The partnership deed providesthat in the event of death of a
partner his share of profit will be calculated onthe basis of average profit of last three years. Profit
of last three years were: 2018-19 Rs. 70000; 2019-20 Rs. 80000; 2020-21 Rs (60000) Share of profit
of Rishab till his death will be: 1
a) Rs. 30000 b) Rs. 15000 c) Rs. 5000 d) Rs. 7500
OR
A, B and C are partners. A‘s capital is Rs. 3,00,000 and B‘s capital is Rs.1,00,000. C has not invested
any amount as capital but he alone manages thewhole business. C wants 30,000 p.a. as salary, though
the deed is silent. Firm earned a profit of Rs.1,50,000. How much will each partner receives as an
appropriation of profits?
a) A Rs. 60,000; B Rs. 60,000; C Rs. 30,000 b) A Rs. 50,000; B Rs. 50,000 and C Rs. 50,000
c) A Rs. 40,000; B Rs. 40,000 and C Rs. 70,000 d) A Rs. 90,000; B Rs. 30,000; C Rs. 30,000

Read the following hypothetical situation, Answer Question No. 15 and 16

Rohan and Jhanvi are partners in a firm Rohan gets commission of 10% of Net Profit before charging
any commission and Jhanvi gets commission of 10% of Net Profit after charging all commissions.
Following is the Profit and LossAppropriation Account for the year ended 31st March 2022.
Profit & Loss appropriation Account for the year ending 31st March 2022
Particulars Amount Particulars Amount
To Rohan’s commission 1,65,000 By Profit & Loss ?
A/c
To Jhanvi’s commission ?
To Profit Transferred to:
Rohan’s capital A/c: _? __
Jhanvi’s Capital A/c: ? ?

? ?
15. Jhanvi’s commission will be 1
a) Rs. 1,35,000 b) Rs. 1,48,500 c) Rs. 1,50,000 d) Rs. 1,40,000
16. Rohan’s share of profit will be: 1
a) Rs. 8,25,000 b) Rs. 7,50,000 c) Rs. 6,25,000 d) Rs.6,75,000

17. Fab Ltd. issued 20,000, 9% Debentures of Rs. 100 each at 10% discount to Aerial Ltd. from whom
Assets of Rs. 23,00,000 and Liabilities of Rs. 6,00,000were taken over. Pass entries in the books of
Anthony Ltd. if these debentures were to be redeemed at 10 % premium. 3
OR
Rain Ltd. took over running business of Cloud Ltd. comprising of Assets of Rs. 55,00,000 and
Liabilities of Rs. 6,40,000 for a purchase consideration ofRs. 47,00,000. The amount was settled
by bank draft of Rs. 6,50,000 and balance by issuing 10% preference shares of Rs. 100 each at
25% premium. Pass entries in the books of Rain Ltd

18. Hari and Krishna were partners sharing profits and losses in 2:1. They changedtheir profit & Loss
sharing ratio to 3:2 w.e.f 1st April 2022. For this purpose goodwill of the firm is to be valued on the
basis of three year’s purchase of lastfive year’s average profits. The profits of the last five years
were: 3
Year Profit
2017-18 50,000
2018-19 40,000
2019-20 75,000
2020-21 (25,000)
2021-22 50,000
The profit of the year 2018-19 was calculated after charging Rs. 10,000 forabnormal loss of
goods by fire. Calculate goodwill and pass necessary entries for treatment of goodwill along with
working notes.

19. Divya, Jyoti and Rudra were partners with fixed capitals of Rs.3,00,000, Rs. 2,00,000 & Rs.
1,00,000 respectively. They shared profits in the ratio of their fixed capitals. Rudra died on 31st
May, 2021, whereas the firm closes its books of accounts on 31st March every year. According to
their partnership deed, Rudra’s representatives would be entitled to get share in the interim profits
of the firm on the basis of sales. Sales and profit for the year 2020-21 amounted toRs.8,00,000 and
Rs.2,40,000 respectively and sales from 1st April, 2021 to 31stMay 2021 amounted to Rs. 1,50,000.
You are required to: 3
(i) Calculate Rudra’s share in profit.
(ii) Pass journal entry to record Rudra’s share in profit.

20. A, B, C & D are partners sharing profits as A 40%, B 30%, C 10% and D 20% C was given
guarantee of minimum share of Profit Rs. 57,500. Deficiency if any is to be borne by A & B in 3:2.
The net loss for the year ending 31st March 2022was Rs. 25,000. Pass journal entries to distribute
Loss and adjust guarantee of minimum profit of C. 3
OR
Rishi and Sakshi were partners in a firm. On 01-04-2021 their capitals were: Rishi Rs. 1,00,000
and Sakshi Rs. 80,000. Interest on capital to be provided @10% p.a.
Their partnership deed provided that the profits shall be divided as follows: First Rs.50,000
equally and the balance in the ratio of 3 : 2. The profit for the year ended 31st March, 2021 was
Rs.65,000 which had been distributed among the partners without providing for the interest on
capital.
Pass a single journal entry to rectify the above error show your workings clearly.

21. Pass necessary journal entries on the dissolution of a partnership firm in thefollowing cases : 4
(i) Dissolution expenses were Rs. 800.
(ii) Dissolution expenses Rs. 800 were paid by Priksha, a partner.
(iii) Garv, a partner, was appointed to look after the dissolution work, for whichhe was allowed a
remuneration of Rs. 10,000. Garv agreed to bear the dissolution expenses. Actual dissolution
expenses Rs. 9,500 were paid by Garv.
 (iv) Jubin, a partner, agreed to look after the dissolution work for a commissionof Rs. 5,000. Jubin
agreed to bear the dissolution expenses. Actual dissolution expenses Rs. 5,500 were paid by
Mandeep, another partner, on behalf of Jubin.

22. Raymon Styles Ltd. was registered with a capital of Rs. 85,00,000 divided intoequity shares of Rs.
100 each. The company invited applications for issuing 45,000 shares. The amount was payable as
Rs. 25 on application, Rs. 35 on allotment, Rs. 25 on first call and balance on final call.
Applications were received for 42,000 shares and allotment was made to all theapplicants. Neha, to
whom 3,300 shares were allotted, failed to pay both the calls. Her shares were forfeited. Present
the Share Capital in the Balance Sheet of the company as per Schedule III of the Companies Act,
2013. 4

23. A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 2019. Entry for treatment
of goodwill after his death was passed as follows:- 6

Date Particulars L.F Debit (₹) Credit (₹)

B’s Capital A/c Dr. 1,80,000
C’s Capital A/c Dr. 1,20,000
To A’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at the time of death of partner)

A’s profit till date of death was estimated as ₹ 1,20,000, based on the average profits of past three years.
Final dues payable to A’s executors on the date of death was calculated as ₹ 8,40,000 out of which ₹ 2,40,000
was paid immediately by giving him Furniture valued for the same and balance was to be paid in three
equal annual instalments starting from 30 June, 2020, together with interest rate as specified in Section 37
of Indian Partnership Act, 1932. Pass necessary entry for profit share to be credited to A’s Capital and also
prepare A’s executors account till final settlement.

24. Angle Ltd. had share capital of Rs. 60,00,000 divided in shares of Rs. 100 eachand 20,000, 8%
Debentures of Rs. 100 each as part of capital employed. The company need additional funds of Rs.
55,00,000 for which they decided to issuedebentures in such a way that they got required funds
after issuing debentures of the same class as earlier, at 10% premium. These debentures were
to be redeemed at 20% premium after 4 years. These debentures were issued on 01October, 2021.
You are required to 6
(a) Pass entries for issue of Debentures.
(b) Prepare Loss on Issue of Debentures Account assuming there was existing balance of Securities
Premium Account of Rs. 2,50,000.
(c) Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30th
September and 31st March every year.

25. a) Axis Limited issued 2,00,000 equity shares of Rs. 20 each . The shares were allotted in the
proportion of 5:4 of shares applied and allotted to all the applicants. Maya, who had applied for
900 shares, failed to pay Allotment money of Rs. 7 per share and on his failure to pay ‘First & Final
Call’ of Rs.2 per share, her shares were forfeited. 400 of the forfeited shares were reissued at Rs.
15 per share as fully paid up. Showing your working clearly,pass necessary Journal entries for the
Forfeited and reissue of Maya’s sharesin the books of Axis Limited. The company maintains ‘Calls
in Arrears’ Account’.

b) Dhruv Limited forfeited 1,200 shares of Rs. 10 each allotted to Rocky for Non-payment of
‘Second & Final Call’ of Rs. 5 per share (includingpremium of Rs. 2 per share). The forfeited
shares were reissued for Rs. 10,800 as fully paid up. Pass necessary Journal entries for forfeiture
and reissue of shares in the books of Dhruv Limited. 6
OR
Trivia Ltd. was registered with an authorised capital of 2,00,000 equity shares of Rs. 100 each. The
company offered 60,000 shares for public subscription at25% premium. The share was payable as
Rs. 40 on application and balance on allotment, with premium. Public had applied for 85,000
 shares. Pro-rata allotment was made to 75000 shares. Remaining applications were sent letters of
regret. Mr. Krishna holding 4,000 shares failed to pay allotment money and his shares were
forfeited. Out of these 3,000 shares were re-issued at a discountof Rs. 20 per share.
Pass necessary entries in the books of the Trivia Ltd.
𝟏 𝟏
26. Neha, Sona and Baani were partners in a firm sharing profits and losses in proportion of 𝟐, 𝟔
𝟏
and 𝟑 respectively. The Balance Sheet of the firm as at 31st March, 2022 was as follows: 6

Balance Sheet of N, S and B as at 31.3.2022

Liabilities Amount Assets Amount
Capital:- Freehold Premises 40,000
Neha: 30,000 Machinery 30,000
Sona: 30,000 Furniture 12,000
Baani: 28,000 88,000 Stock 22,000
Bills Payable 12,000 Sundry debtors: 20000 19,000
Less: provision For bad debts : 1000
General Reserve 12,000 Cash 7000
Sundry Creditors 18,000
1,30,000 1,30,000
Baani retired from the business on the above date and the partners agreed to thefollowing :
(i) Freehold premises was undervalued by 20%
(ii) Stock was to be appreciated by 15%.
(iii) Machinery and furniture were to be depreciated by 10% and 7%respectively.
(iv) Provision for bad debts was to be increased by Rs. 1,500.
(v) On Baani’s retirement goodwill of the firm was valued at Rs. 21,000.
(vi) The continuing partners decided to adjust their capitals in their new profit-sharing ratio after
retirement of Baani. Surplus/deficit, if any, intheir capital accounts was to be adjusted through their
current accounts.
Prepare Revaluation Account and Partners’ Capital Accounts.
OR
Sam, Yash and Siya were partners in a firm sharing profits and losses in the ratio of 3:2:1. On
31.3.2022, their Balance Sheet was as follows :
Balance Sheet of Sam, Yash and Siya as on 31.3.2022
Liabilities Amount Assets Amount
Sundry Creditors 1,68,000 Bank 34,000
General Reserve 42,000 Debtors 46,000
Capital:- Stock 2,20,000
Sam: 1,20,000 Investment 60,000
Yash: 80,000 Furniture 20,000
Siya: 40,000 2,40,000 Machinery 70,000
4,50,000 4,50,000
On the above date Kavya was admitted into the partnership on the followingterms:
(i) The new profit sharing ratio among Sam, Yash, Siya and Kavya will be2:2:1:1
(ii) Goodwill of the firm is valued at Rs. 1,80,000 and Kavya will bring hershare in cash.
(iii) The market value of investment will be Rs. 36,000.
(iv) Machinery to be reduced to Rs.58,000.
(v) A creditor of Rs. 6,000 was not likely to claim its amount hence to bewritten off.
(vi) Kavya will bring proportionate capital so as to give her 1/6th share in the profit of the new firm
Prepare Revaluation account and Partners’ capital account.
 Part B :- Analysis of Financial Statements
27. ‘Public deposits’ appear in the company Balance Sheet under the head/subhead: 1
a) Intangible Assets b) Shareholders Fund
c) Current liabilities d) Non-Current Liabilities

28. Intra firm analysis is also known as: 1

a) Time Series Analysis b) Debt Analysis
c) Cross-Sectional Analysis d) Trend Analysis

29. Which one of the following is correct?

(i) A ratio is an arithmetical relationship of one number to another number.
(ii) Liquid ratio is also known as acid test ratio.
(iii) Ideally accepted current ratio is 1: 1.
(iv) Debt equity ratio is the relationship between outsider’s funds andshareholders’ funds.
In the context of the above two statements, which of the following options iscorrect? 1
(A) All (i), (ii), (iii) and (iv) are correct.
(B) Only (i), (ii) and (iv) are correct.
(C) Only (ii), (iii) and (iv) are correct.
(D) Only (ii) and (iv) are correct.
OR
The Real object of Analysis of Financial Statement is …………
(a) To assess the total liabilities of the firm.
(b) To assess the total expenses of the firm.
(c) To know about historical cost concept.
(d) To measure the financial strength of the business.

30. A company's current ratio is 3 : 1 and liquidity ratio is 1.2 : 1. If its currentliability are Rs.
2,00,000. What will be the value of inventory? 1
a) Rs. 2,40,000 b) Rs. 3,60,000 c) Rs. 4,00,000 d) Rs. 40,000

31. Classify the following items under Major heads and Sub-head (if any) in theBalance Sheet of a
Company as per schedule III of the Companies Act 2013. 3
a) Bank Overdraft
b) Current maturities of long-term debts
c) Provision for Warranties
d) Mining Rights
e) Provision for Taxation
f) Debit balance in the Statement of Profit and Loss

32. One of the objectives of ‘Financial Statement Analysis’ is to identify the reasons for change in the
financial position of the enterprise. State three more objectives of this anlaysis. 3

33. a) Calculate proprietary ratio: 4

Total assets to Debt ratio is 2:1. Debt is Rs. 5,00,000. Equity shares capital is 0.5 times of debt.
Preference Shares capital is 25% of equity share capital. Net profit before tax is Rs. 10,00,000 rate
of tax is 40%.

b) Calculate ‘Net Asset or Capital Employed Turnover Ratio’

Shareholders' Funds Rs. 40,00,000, Equity Share Capital Rs. 15,00,000, 7% Preference Share Capital
Rs. 10,00,000, Reserve & Surplus Rs. 15,00,000, 8% Debentures Rs. 10,00,000 and Revenue from
Operations Rs. 75,00,000
34. State giving reason, whether the Current Ratio will improve or decline or will have no effect in each
one of the following transactions if Current Ratio is (I) 2 : 1, (II)1:1,(III)0.8:1. 6
a) Repayment of a Current Liability.
b) Purchase of goods on credit.
c) Sale of goods for Rs.2,00,000 (Cost Rs.2,20,000)
d) Bill Receivable endorsed to a Creditor.
e) Payment of dividend payable.
f) Bills Payable accepted for one month.