D.A.V.

ACADEMY
TANDA, AMBEDKAR NAGAR
Date: 07/12/ 2023 Revision Test Class- Xii (Set-1)
TIME 3 HOURS Subject- Accountancy (055) MAX. MARKS 80

GENERAL INSTRUCTIONS:

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

2. Question 1 to 16 and 27 to 30 carries 1 mark each. carries 1 mark each.
3. Questions 17 to 20, 31and 32 carries 3 marks each.
4. Questions from 21 ,22 and 33 carries 4 marks each
5. Questions from 23 to 26 and 34 carries 6 marks each

1. Gaining Ratio :
(A) New Ratio – Sacrificing Ratio
(B) Old Ratio – Sacrificing Ratio
(C) New Ratio – Old Ratio
(D) Old Ratio – New Ratio

2. A and B were partners in a firm sharing profit or loss equally. With effect from 1st
April 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit
sharing ratio, A’s gain or sacrifice will be :
(A) Gain 1/14
(B) Sacrifice 1/14
(C) Gain 4/7
(D) Sacrifice 3/7

3. A and B were partners in a firm sharing profit or loss equally. With effect from 1st
April, 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit
sharing ratio, B’s gain or sacrifice will be :
(A) Gain 1/14
(B) Sacrifice 1/14
(C) Gain 4/7
(D) Sacrifice 3/7
4. A and B were partners in a firm sharing profit or loss in the ratio of 3 : 5. With effect
from 1st April, 2019, they agreed to share profits or losses equally. Due to change in
profit sharing ratio, A’s gain or sacrifice will be :

5. A and B were partners in a firm sharing profits and losses in the ratio of 2 : 1. With
effect from 1st January 2019 they agreed to share profits and losses equally. Individual
partner’s gain or sacrifice due to change in the ratio will be :

6. A and B share profits and losses in the ratio of 3 : 2. With effect from 1st . January,
2019, they agreed to share profits equally. Sacrificing ratio and Gaining Ratio will be :

7. A and B were partners in a firm sharing profit or loss in the ratio of 3 : 1. With effect
from Jan. 1, 2019 they agreed to share profit or loss in the ratio of 2 : 1. Due to change
in profit-loss sharing ratio, B’s gain or sacrifice will be :
(A) Gain 1/12
(B) Sacrifice 1/12
(C) Gain 1/3
(D) Sacrifice 1/3
8. A, B and C were partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019
they decided to share profit or loss in the ratio of 8 : 4 : 3. Due to change in the profit-
loss sharing ratio, B’s gain or sacrifice will be :
(A) Gain 1/60
(B) Sacrifice 1/60
(C) Gain 2/60
(D) Sacrifice 3/60

9. A, B and C were partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019
they decided to share profit or loss in the ratio of 8 : 4 : 3. Due to change in the profit-
loss sharing ratio, B’s gain or sacrifice will be :
(A) Gain 160
(B) Sacrifice 160
(C) Gain 260
(D) Sacrifice 360

(10) Meaning and Characteristics of a Company

1. A company has ……………
(A) Separate Legal Entity
(B) Perpetual Existence
(C) Limited Liability
(D) All of the Above

11. Premium on redemption of debentures is generally provided at the time of _______.

(a) Issue of debentures (b) Redemption of debentures (c) Writing off (d) After 10 years

12. Sources of finance of the redemption of debentures are ______.

(a) Redemption out of profits (b) Redemption out of capital

(c) The proceeds from fresh issue of shares/debentures (d) All of the above

13. Loss on the issue of debenture account is shown _______.

(a) On the assets side of the balance sheet (b) On the liabilities side of the balance sheet
(c)

On the credit side of the profit and loss account (d) None of the above
14. When debentures are issued at par and are redeemable at a premium, the loss on
such an

issue is debited to _______.

(a) Profit and loss A/c (b) Debenture application and allotment A/c

(c) Loss on the issue of debentures A/c (d) Premium on redemption A/c

15. When debentures are issued at a discount and are redeemable at a premium, which
of the

following accounts is debited at the time of issue?

(a) Debentures A/c (b) Premium on redemption of debentures A/c

(c) Loss on the issue of debentures A/c (d) Profit and loss A/c

16. Discount allowed on the reissue of forfeited shares is debited to ______.

(a) Share capital A/c (b) Share forfeiture A/c (c) Profit and loss A/c (d) General reserve
A/c

(d) None of the above

17. On 1st April, 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 31st March, 2014, the firm
earned a profit of ₹ 2,00,000.

Prepare profit and loss appropriation account of Brij and Nandan for the year ended
31st March, 2014.

12. On 1st April, 2014 a firm had assets of ₹ 2,00,000 excluding stock of ₹ 40,000.
Partners’ capital accounts showed a balance of ₹ 120,000. The current liabilities were ₹
20,000 and the balance constituted the reserve. If the normal rate of return is 8% the
‘Goodwill’ of the firm is valued at ₹ 120,000 at four years’ purchase of super profit, find
the average profit of the firm.

18. Abhay, Babu and Charu are partners sharing profits and losses equally. They agree
to admit Daman for equal share of profit. For this purpose, the value of goodwill is to be
calculated on the basis of four years' purchase of average profit of last five years. These
profits for the year ended 31st March, were:
Year 2015 2016 2017 2018 2019

Profit/(Loss) ₹ 1,50,000 3,50,000 5,00,000 7,10,000 (5,90,000)

On 1st April, 2018, a car costing ₹2,00,000 was purchased and debited to Travelling
Expenses Account, on which depreciation is to be charged @ 25%. Interest of ₹20,000
on Non-trade Investments is credit to income for the year ended 31st March, 2018 and
2019.
Calculate the value of goodwill after adjusting the above

19. Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at
₹6,00,000; ₹5,00,000 and ₹4,00,000 respectively on 1st April, 2017. They shared Profits
and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @
8% per annum and salary to Chaman and Dholu @ ₹7,000 per month and ₹10,000 per
quarter respectively as per the provision of the Partnership Deed. Sholu's share of profit
( excluding interest on capital but including salary) is guaranteed at a minimum of
₹1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit
for the year ended 31st March, 2018 amounted to ₹4,24,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018

20 Authorized capital of Suhani Ltd . is ₹45,00,000 divided into 30,000 shares of ₹150 each
. Out of these company issued 15,000 shares of ₹150 each at a premium of ₹ 10 per share
. the amount was payable as follows:
₹50 per share on application , ₹40 per share on allotment (including premium ), ₹30 per
share on firs t call and balance on final call . Public applied for 14,000 shares. All the
money was duly received .
Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III , Part I of the
companies Act, 2013 disclosing the above information . Also prepare 'Notes to Accounts '
for the same.

21. Sugandh Ltd. issued 180,000 shares of ₹10 each at a premium of ₹2 per share
payable as ₹3 on application, ₹5(including premium) on allotment and the balance on
first and final call. Applications were received for 276,000 shares. The Directors
resolved to allot as:
(i) Applicants of 120,000 shares 90,000 shares,
(ii) Applicants of 150,000 shares 90,000 shares,
 (iii) Applicants of 6,000 shares Nil.

Mohan, who had applied for 2400 shares in Category

(i) and Sohan, who was allotted 1800 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.

22. New Company Ltd. has a nominal capital of ₹5,00,000 in shares of ₹10. Of these,
8,000 shares were issued as fully paid in payment of building purchased , 16,000
shares were subscribed by the public and during the first year ₹5 per share were called-
up, payable ₹2 on application , ₹1 on allotment, ₹1 on first call and ₹1 on second call .
The amounts received in respect of these shares were:
On 12,000 shares Full amount called,
On 2500 shares ₹4 per share,
On 1000 shares ₹3 per share,
On 500 shares ₹2 per share.

The Directors forfeited the 750 shares on which less than ₹4 had been paid . The
shares were subsequently reissued at ₹3 per share .
Pass journal entries recording the above transactions and prepare the company's
Balance Sheet.

23 XYZ Ltd . issued a prospectus inviting applications for 6,000 shares of ₹10 each at a
premium of ₹4 per share , payable as:

On application —— ₹6 (including ₹1 premium)

On allotment —— ₹2 (including ₹1 premium)

On first call —— ₹3 (including ₹1 premium)
On second and final call —— ₹3 (including ₹1 premium)

Applications were received for 9,000 shares and pro rata allotment was made on the
applications for 42 00 shares. It was decided to utilise excess application money
towards the amount due on allotment .

X, to whom 120 shares were allotted, failed to pay the allotment money and on his
subsequent failure to pay the first call , his shares were forfeited.

Y, who applied for 216 shares failed to pay the two calls and on his such failure , his
shares were forfeited.

Of the shares forfeited , 240 shares were sold to Z credited as fully paid-up for ₹9 per
share , the whole of Y's shares being included . Prepare Journal , Cash Book and the
Balance Sheet
24 Alfa Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount
was payable as follows:
On application and allotment —— ₹4 per share ,
On first Call —— ₹ 3 per share,
On second and final Call —— balance.

Applications for 1,00,000 shares were received. Shares were allotted to all the
applicants on pro rata basis and excess money received with applications was
transferred towards sums due on first call. Vibha who was allotted 750 shares
failed to pay the first call . Her shares were immediately forfeited . Afterwards
the second call was made. The amount due on second call was also received
except on 1,000 shares applied by Monika . Her shares were also forfeited. All
the forefited shares were reissued to Mohit for ₹9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd . for the above
transactions.

25.Dogra Ltd. had an authorised capital of ₹1,00,00,000 divided into Equity Shares of ₹100
each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:

On Application —— ₹30 per share,

On Allotment —— ₹40 per share(including premium),
₹50 per share.
On First and Final call ——

Applications were received for 80,000 shares.

All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the
forfeited shares were reissued for ₹ 80 per share as fully paid-up . Show the
entries for the above transactions in the Cash Book and journal of the
company.

26. Pass journal entries in the following cases:

(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5%
premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.
27.In case of dissolution of a firm, which item on the liabilities side is to be paid
last?

(a) Partners capital

(b) External liabilities

(c) Long term debt

(d) None of the above

28.X Ltd was dissolved on 31st March 2016. Mohan, a partner wants that his
loan of Rs. 15000 should be paid off before the payment of capitals of the
partners. But Rakesh, another partner wants that capitals must be paid before
the payment of Mohan’s loan. Who is correct?

(a) Rakesh is correct

(b) Mohan is correct

(c) Both are wrong

(d) None of the above

29.A and B were partners in a firm which was dissolved.

No goodwill appeared in the books. What will be the journal entry if Goodwill
realised Rs. 80000 ?

(a) Cash A/c Dr 80000′

To Realisation A/c 80000

(b)Realisation A/c Dr 80000

To Cash A/c 80000

(c) No entry will be passed

(d) None of the above

30.G and H were partners. They decided to dissolve their firm due to heavy
losses.

No goodwill appeared in the books. What will be the journal entry if Goodwill is
taken over by G at and agreed value of Rs. 80000 ?

(a) G’s capital A/c Dr 80000

To Realisation A/c 80000

(b) Realisation A/c Dr 80000

To G’s capital A/c 80000

(c) G’s capital A/c Dr 80000

To Revaluation A/c 80000

(d) None of the above

31. Best Barcode Ltd. took a loan of ₹ 5,00,000 from a bank giving ₹ 6,00,000; 9%
Debentures as collateral security. Pass journal entries regarding issue of debentures , if
any, and show this loan in the Balance Sheet of the company.

32.X Ltd. took a loan of ₹ 3,00,000 from IDBI Bank . The company issued 4,000; 9%
Debentures of ₹ 100 each as a collateral security for the same . Show how these items will
be presented in the Balance Sheet of the comp

33. S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% p.a.
interest. The company issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State
Bank of India as Collateral Security. Pass necessary Journal entries for the above
transactions:
(i) When company decided not to record the issue of 10% Debentures as Collateral
Security.
(ii) When company decided to record the issue of 10% Debentures as Collateral Security.
34.Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:

Note
Particulars ₹ ₹
No.

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital 5,00,000 4,00,000

(b) Reserves and Surplus 1 2,00,000 (50,000)
2. Non-Current Liabilities
Long-term Borrowings 2 4,50,000 5,00,000
3. Current Liabilities
(a) Short-term Borrowings 3 1,50,000 50,000
(b) Short-term Provisions 4 70,000 90,000

Total Total Expenses 13,70,000 9,90,000

II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets 5 10,03,000 7,20,000

(ii) Intangible Assets 6 20,000 30,000

(b) Non-Current Investments 1,00,000 75,000
2. Current Assets
(a) Current Investments 50,000 60,000

(b) Inventories 7 1,07,000 45,000

(c) Cash and Cash Equivalents 90,000 60,000

Total 13,70,000 9,90,000

Notes to Accounts
 31st March 31st March
Particular 2015 2014
₹ ₹
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and 2,00,000 (50,000)
Loss

2,00,000 (50,000)

2. Long-term Borrowings
12% Debentures 4,50,000 5,00,000

4,50,000 5,00,000

3. Short-term Borrowings
Bank Overdraft 1,50,000 50,000

1,50,000 50,000

4. Short-term Provisions
Provision for Tax 70,000 90,000

70,000 90,000

5. Tangible Assets
Machinery 12,03,000 8,21,000
Less: Accumulated Depreciation (2,00,000) (1,01,000)

10,03,000 7,20,000

6. Intangible Assets
Goodwill 20,000 30,000

20,000 30,000

7. Inventories
Stock-in-Trade 1,07,000 45,000

1,07,000 45,000

Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹70,000 was paid during the year.
Prepare Cash Flow Statement.