II Puc Mid Term Examination October - 2023

Model Question Paper - 2

Time: 3hr 15mint Subject: Accountancy Marks: 80
Section - A
I. Choose the correct answer from the choices given: 5x1 = 5
1. The agreement between the partners should be in,
a) Oral b) Written c) Oral / Written d) None of the above

2. Profit or loss on revaluation is shared among the Partners in the.

a) Old profit sharing ratio c) Capital ratio
b) New profit sharing ratio d) Equal ratio

3. Accrued profit is ascertained on the following ways.

a) Average Profit b) On Sales c)Previous years Profits d) All of the above

4. Maximum number of members in a private company is

a) 40 b) 200 C) 70 d) No limits

5. Debentures cannot be redeemed at

a) Premium b) Discount c) Par d) More than 10% premium

II. Fill in the blanks by choosing the appropriate answers from the given in the
brackets: 5x1 = 5
(New, Fixed, Capital Reserve, Fictious , Revaluation)
6. Under Fixed Capital method , the amount of capital remains _________
7. Unrecorded asset is to be credited to ____________ account.
8. _________ ratio is used for adjustment of continuing Partners capitals.
9. Profit on forfeiture of shares is transferred to __________ Account.
10. Discount on issue of Debenture is a ____________ Asset.

III. Match the following: 5x1 = 5

11. A B
a) Partnership Intangible Asset
b) Goodwill The return on Shares
c) Executor’s Account Two or more Persons
d) Dividend Due on call money
e) Calls in arrears Death of a Partner

Sources of Study Materials in,

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IV. Answer the following questions in one word or one sentence each: 5x1 = 5
12. State any one features of Partnership.
13. State any one method of valuation of Goodwill.
14. When do you Prepare Executor’s A/c.
15. Shares of a company are generally transferable. (State True / False)
16. Expand DRR.

Section – B
V. Answer any three questions. Each question carries 2 marks: 3x2 = 6
17. What is fluctuating capital system?
18. Name any two contents of Partnership Deed.
19. What is Hidden Goodwill?
20. State any two features of a company?
21. What is forfeiture of shares?

Section – C
VI. Answer any three questions. Each question carries 6 marks: 3x6 = 18
22. Arun and Kiran are equal partners in a firm. Arun withdraw Rs.3,000 on 1st of every
month for his personal use. Calculate the interest on drawings at 6% p.a. for the half
year ending 30.09.2022 under product method.

23. Ravi and Suresh are partners commenced business on 01.04.2022, sharing profits
and losses in the ratio of 3:2 with capitals of Rs.1,20,000 and Rs.80,000 respectively.
They earned a profit of Rs. 60,000 for the year before allowing:
a) Interest on Capital at 10% p.a.
b) Interest on Drawings: Ravi Rs. 1,200 and Suresh Rs. 800
c) Commission payable to Ravi Rs.3,000p.a.
d) Salary payable to Suresh Rs.1,000p.m.
Prepare Profit and Loss Appropriation Account for the year ending 31.03.2023.

24. Amar and Akbar are partners sharing profits and losses in the ratio of 5:3. They admit
Anthony into partnership. All the partners agreed to share profits and losses equally.
Calculate the Sacrifice ratio.

25. Guru, Shukra and Shani are partners in a firm sharing profit and losses in the ratio
of 4:3:2. Guru retires from the firm. Shukra and Shani agreed to share profits in
future in the ratio of 5:3.
Calculate gain ratio of Radha and Raksha.

Sources of Study Materials in,

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26. Vijay, Sanjay and Ajay are partners sharing profit and losses in the ratio of 2:2:1.
Their capitals on 01.04.2022 stood Rs.40,000 Rs.30,000 and Rs.20,000 respectively.
Sanjay died on 31.12.2022. The partnerships deed provides the following.
a) Interest on capital at 12% p.a.
b) Salary to Sanjay Rs.500 p.m..
c) Sanjay, share of goodwill. The goodwill of the firm is valued at Rs.30,000.
d) His share of profit up to the date of death Rs.5,000
Prepare Sanjay’s capital account.

Section – D
VII. Answer any three questions. Each question carries 12 marks: 3x12 = 36
27. Guru and Prasad are partners. Their Balance Sheet as on 31.03.2022 was as follows.
Liabilities Amount Assets Amount
Creditors 12,800 Cash 1,800
Bills Payable 6,600 Stock 23,600
Capitals: Debtors 25,000
Guru 40,000 Less: PDD 5,000 20,000
Prasad 30,000 70,000 Furniture 4,000
Buildings 40,000
89,400 89,400
On 01.04.2022 , They admit Pramod as a new partner and offered him 1/4 th share
in the profit on the following terms..
a) He should bring Rs.30,000 as capital and Rs.18,000 towards goodwill.
b) Half of the goodwill should be withdrawn by the old partners (As-26)
c) Stock and furniture to be depreciated by 10% each.
d) PDD is increased by Rs.3,000.
Prepare: i) Revaluation A/c ii) Partners Capital A/c iii) New Balance Sheet

28. Ravi and Shankar are partners sharing profits and losses in the ratio of 3:2.
Their Balance Sheet as on 31.03.2022 was as follows.
Liabilities Amount Assets Amount
Creditors 50,000 Cash 20,000
Bills Payable 25,000 Stock 25,000
Reserve Fund 25,000 Debtors 20,000
Capitals: Furniture 20,000
Ravi 60,000 Machinery 40,000
Shankar 40,000 1,00,000 Buildings 50,000
Investments 20,000
Profit and Loss A/c 5,000
2,00,000 2,00,000
On 1.04.2022 Prasad was admitted into Partnership on the following terms:
 a) He brings Rs.30,000 as Capital and Rs.10,000 towards Goodwill for 1/4 th
share in future profits. Goodwill amount is withdrawn by old Partners.(As-26)
b) Depreciate Machinery and Furniture by 10% each.
c) Provision for Doubtful Debts is maintained at 5% on debtors.
d) Appreciate Buildings by Rs.11,000
e) Provide Rs.1,000 for Outstanding Salary.
f) Investments are to revalued at Rs.25,000.
Prepare: i) Revaluation A/c ii) Partners Capital A/c iii) New Balance Sheet

29. Veena, Meena and Vani are partners sharing profits and losses in the ratio of 2:2:1.
Their Balance Sheet as on 31.03.2022 was as follows.
Liabilities Amount Assets Amount
Creditors 49,000 Cash 8,000
Reserves 18,500 Debtors 19,000
Capitals: Stock 42,000
Veena 82,000 Buildings 2,07,000
Meena 60,000 Patents 9,000
Vani 75,500 2,17,500
2,85,000 2,85,000
Meena retired on March 31, 2022 on the following terms.
a) Goodwill of the firm was valued at Rs. 70,000.
b) Bad Debts amounting to Rs.2,000 were to be written off.
c) Patents were considered as valueless.
Prepare: i) Revaluation A/c ii) Partners Capital A/c iii) New Balance Sheet

30. The following is the Balance Sheet of X, Y and Z as on 31.03.2023. They share
profits and losses equally.
Liabilities Amount Assets Amount
Creditors 20,000 Cash at Bank 16,000
Bills Payable 2,000 Investments 20,000
Profit and Loss A/c 18,000 Furniture 10,000
Capitals: Buildings 40,000
X 40,000 Debtors 16,000
Y 40,000 Stock 30,000
Z 20,000 1,00,000 Bills Receivable 8,000
1,40,000 1,40,000
It was decided to dissolve the Partnership firm on the following terms:
a) Mr. X took over Bills Receivable and Furniture at Book Value.
b) Assets were realised as:
Debtors Rs.15,000; Investments Rs.19,000;
Stock Rs.26,000; Buildings Rs.50,000.
 c) The liabilities were paid at discount of 5%.
d) Realisation expenses Rs.750.
Prepare: i) Realization A/c ii) Partners Capital A/c iii) Bank A/c

31. Arun Company Ltd. Issued 10,000 Equity Shares of Rs. 10 each at premium of Rs.2
per share. The amount payable as follows.
Rs. 3 per share on Application
Rs. 5 per share on allotment (including premium)
Rs. 4 per share on First and final call.
All the shares were subscribed and the money duly received except the first and final
call on 1,000 shares. The directors forfeited these shares and re-issued them as fully
paid at Rs. 8 per share.
Pass the Journal entries for the above information.

32. Give the journal entries for the following at the time of issue of debentures.

(a) Issue of Rs. 2,00,000. 10% debentures of Rs.100 each at par and
redeemable at a premium of 5%

(b) Issue of Rs.2,00,000. 10% debentures of Rs.100 each at a discount of

5% and redeemable at par.

(c) Issue of Rs.2,00,000. 10% debentures of Rs. 100 each at a premium of

5% and redeemable at par.

(d) Issue of Rs.2,00,000. 10% debentures of Rs.100 each at a premium of

5% and redeemable at premium of 5%.

Prepared by,
Sunil. K M.com, B.Ed, PGDBA.
Lecturer in Commerce
Nagamangala. Mandya District