PB23ACC01

KENDRIYA VIDYALAYA SANGATHAN, ERNAKULAM REGION

PREBOARD EXAMINATION 2023-24
XII-ACCOUNTANCY
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions 17 to 20, 31and 32 carries 3 marks each.
5. Questions from 21,22 and 33 carries 4 marks each
6. Questions from 23 to 26 and 34 carries 6 marks each
7. There is no overall choice. However, an internal choice has been provided for one mark, three
marks, four marks and six mark.
PART A
(Accounting for Partnership Firms and Companies)
1. X and Y were partners sharing profits in the ratio of 3:2. Z was admitted as a new partner 1
for 1/5th share. X sacrificed 3/20 from his share and Y sacrificed 1/20 from his share in
favour of Z, the new profit sharing ratio would be
a) 9:7:4
b) 8:8:4
c) 6:10:4
d) 10:6:5
2. Assertion: Rahul, a partner in a firm with four partners has advanced a loan of Rs.50,000 to 1
the firm for last six months of the financial year without any agreement. He claims an
interest on loan of Rs.3,000 despite the firm being in loss for the year.
Reasoning: In the absence of any agreement / provision in the partnership deed, provisions
of Indian Partnership Act, 1932 would apply.
a) Both A and R are correct, and R is the correct explanation of A.
b) Both A and R are correct, but R is not the correct explanation of A.
c) A is correct but R is incorrect.
 d) A is incorrect but R is correct.
3 Z Ltd forfeited 1000 equity shares of Rs 10 each for the non payment of the first call of 1
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 re-issued.
a)2000 b)3000 c)5000 d) none of the above
OR
On 1st April 2022, Mirash ltd. had a balance of Rs.4,00,000 in Securities Premium account.
During the year company issued 10,000 Equity shares of Rs.10 each as bonus shares and
used the balance amount to write off Loss on issue of Debenture on account of issue of
1,00,000, 8% Debentures of Rs.100 each at a discount of 10% redeemable @ 5% Premium.
The amount to be charged to Statement of P&L for the year for Loss on issue of Debentures
would be:
a) Rs.15,00,000.
b) Rs.11,00,000.
c) Rs.12,00,000.
d) Rs.10,00,000
4 Emi, Nemi and Kimi are partners sharing profits in the ratio of 5:3:2. They have admitted 1
Vimi into the partnership for 1/6th share. An extract of their balance sheet on 1 st April, 2022
is as follows
Liabilities Amount Assets Amount
Investment Fluctuation Fund 27,000 Investment (Cost) 3,00,000
If the market value of an investments is Rs 2,90,000, then the investment fluctuation fund
will be shown in the balance sheet of the firm at
a) Rs 27,000
b) Rs 20,000
c) Rs 10,000
d) Rs 13,000
OR
X, Y and Z are in partnership business. X used Rs.3,00,000 belonging to the firm without
the information to other partners and made a profit of Rs.40,000 by using this amount.
Which decision should be taken by the firm to rectify this situation?
 a) X need to return only Rs.3,00,000 to the firm.
b) X is required to return Rs.40,000 to the firm.
c) X is required to pay back Rs.40,000 only equally to Y and Z.
d) X need to return Rs.3,40,000 to the firm.
5 Which of the following items is not dealt through Profit and Loss Appropriation Account ? 1
(A) Interest on partner’s loan
(B) Partner’s salary
(C) Interest on partner’s drawings
(D) Partner’s commission
6 Sun Ltd. purchased plant from Silk Ltd for Rs.9,00,000. The consideration was paid by 1
issue of 8%debentures of Rs.100 each at a discount of 10%. The 8% Debentures account is
credited with:
a) Rs.10,40,000
b) Rs.10,00,000
c) Rs.9,60,000
d) Rs.6,40,000
OR
A company `Vansh Ltd’ has purchased an asset costing Rs 22,00,000. Vendor issued 10%
debentures of Rs 100 each at 10% premium as consideration against asset purchased.
Calculate number of debentures to be issued.
a. 26,000 debentures
b. 24,000 debentures
c. 20,000 debentures
d. 22,000 debentures
7 Assertion (A) :- Under Section 62(1)(b) of the Companies Act, 2013, a Company may offer 1
shares to its employees under a scheme of ‘Employees Stock Option’ which means the
option (right) given to the whole-time directors, officers or permanent employees of a
company to purchase or subscribe the securities offered by the company at a future date, at
a pre-determined price, which is lower than the market price.
Reason (R) :- The company need not to pass a special resolution to this effect.
(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct
 explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is incorrect, but Reason (R) is Correct.
(d) Assertion (A) is correct, but Reason (R) is incorrect
8 Govind, Sunil and Tina were partners sharing profits in the ratio 3:2:1. Govind retired and 1
his dues towards the firm including Capital balance, Accumulated profits and losses share,
Revaluation Gain amounted to Rs.5,60,000. Govind was being paid Rs.8,00,000 in full
settlement. For giving that additional amount of Rs.2,40,000, Sunil was debited for
Rs. 80,000. Determine goodwill of the firm.
a). Rs.2,40,000
b). Rs.1,60,000
c). Rs.4,80,000
d). Rs.3,60,000
OR
Sita, Reeta and Geeta were partners in the firm sharing profits and losses in the ratio 3:2:1.
Geeta was guaranteed a profit of 15,000 after making all adjustments. Any deficiency is to
be borne by Reeta. The net profit for the year 31st March 2023 was Rs.60,000. Reeta will
be ________ by Rs.________.
(a) Credited, Rs.6,500.
(b) Debited, Rs.5,000.
(c) Credited, Rs.7,500.
(d) Debited, Rs. 2,500
Read the following hypothetical situation, answer question no. 9 and 10.
X and Y are partners sharing profits in the ratio of 3:2 with capitals of Rs.5,00,000 and
Rs.3,00,000 respectively. Interest on capital is agreed @ 6% p.a. Y is to be allowed an
annual salary of Rs.25,000. During the year ended 31st March 2023, the profits of the year
prior to calculation of interest on capital but after charging Y’s salary amounted to
Rs.1,24,000. A provision of 5% of this profit is to be made in respect of manager’s
commission.
 Profit & Loss Appropriation Account
Particulars Amount Particulars Amount
To Interest on Capital By Profit and loss
X account (After ______2______
Y ____________ manager`s
commission)
To Y`s Salary A/C 25,000
To Profit transferred to:
X`s Capital A/C ---------
Y`s Capital A/C --------- _____1______

--------------------- ------------------

9 The amount to be reflected in blank (1) will be: 1

a) Rs.37,200
b) Rs.44,700
c) Rs.22,800
d) Rs.41,880
10 The amount to be reflected in blank (2) will be: 1
a) Rs.1,62,000.
b) Rs.1,74,500.
c) Rs.1,42,800
d) Rs.1,70,775.
11 In the absence of an agreement, partners are entitled to: 1
i) Profit share in capital ratio.
ii) Commission for making additional sale.
iii) Interest on Loan & Advances by them to the firm.
iv) Salary for working extra hours.
v) Interest on Capital.
Choose the correct option:
 a) Only i), iv) and v).
b) Only ii) and iii).
c) Only iii).
d) Only i) and iii).
12 Vandana Ltd, issued 6,000 equity shares Rs 10 each at 10% premium. The issue was fully 1
subscribed. Amount per share was payable as follows. On application Rs 3, On allotment
Rs 3(including premium),On first call Rs 3 and on final call Rs 2.A, a holder of 200 shares
paid the entire money along with allotment. The amount received on allotment will be
_________.
a. Rs 18,000
b. Rs 19,000
c. Rs 25,000
d. Rs 21,000
13 Amox Ltd is registered with a capital of 10,00,000 equity shares of Rs 10 each. 6,00,000 1
equity shares were offered for subscription to public. Applications were received for
6,00,000 shares. All calls were made and amount was duly received except final call of
Rs.2 on 80,000 shares. What will be the amount of share capital shown in the balance
sheet?
a) Rs 60,00,000
b) Rs 58,40,000
c) Rs 5,84,000
d) Rs 6,00,000
14 At the time of change in profit sharing ratio, workmen compensation reserve existing in the 1
balance sheet against which no liabilities exist, is transferred to capital account of partners
in their_________
a) Old profit sharing ratio
b) New profit sharing ratio
c) Sacrificing ratio
d) Gaining ratio
15. ‘X’,’Y’ and ‘Z’ are partners sharing profits in the ratio of 3:2:1. They agree to admit `G’ 1
into the firm. `X’,`Y’ and `Z’ agreed to give 1/3rd,1/6th and 1/9th share of their profit. The
 share of profit of `G’ will be
a) 11/54
b) 13/54
c) 1/10
d) 12/54
OR
What will be the amount of interest, if a partner withdrew Rs 1000 at the end of each month
from 1st June,2022 till the end of the accounting year up to 31st March, 2023? Interest on
drawings is 12% per annum.
a) Rs 550
b) Rs 600
c) Rs 575
d) Rs 700
16 At the time of dissolution, Elon, a creditor of the firm agreed to take over the Machinery of 1
the book value of Rs. 1, 00,000 at Rs. 89,000 and the balance in cash in full settlement of
his account of Rs.1, 10,000. Which journal entry will be passed for the balance to be paid in
cash?
(a) Realisation A/c Dr 35,000
To Bank A/c 35,000
(b) Realisation A/c Dr 21,000
To Bank A/c 21,000
(c) Realisation A/c Dr 11,000
To Bank A/c 11,000
(d) Realisation A/c Dr 15,000
To Bank A/c 15,000
17 A, B, C and D were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1st 3
February, 2023, D retired and the new profit sharing ratio decided between A, B and C was
3:1:1. On D`s retirement, the goodwill of the firm was valued at Rs 3,60,000. Fill the
missing figures in the following journal entry and calculate gaining ratio for the treatment
of goodwill on D`s retirement.
Date Particulars L.F Dr Cr
…….. capital account Dr ………..
To …… capital account 18,000
To C`s capital account ………..
To D`s capital account ………..
(Being amount of goodwill
adjusted)

18 Anu, Binu and Chinu were partners with fixed capital of Rs. 20,000, Rs.16,000 and 3
Rs.12,000. After distributing the profit of Rs.24,000 for the year ended 31st March 2022 in
their agreed ratio of 3 : 1 : 1 it was observed that:
(1) Interest on capital was provided at 10% p.a. instead of 8% p.a.
(2) Salary of Rs.12,000 was credited to Anu instead of Binu
You are required to pass a single journal entry in the beginning of the next year to rectify
the above omissions.
OR
A and B are equal partners. Their capitals as on April 01, 2022 were Rs. 1,00,000 and
Rs. 2,00,000 respectively. After the accounts for the financial year ending March 31, 2023
have been prepared, it is observed that interest on capital @ 6% per annum and salary to A
@ Rs.10,000 per annum, as provided in the partnership deed has not been credited to the
partners’ capital accounts before distribution of profits.
You are required to give necessary rectifying entries using P&L adjustment account
19 Rohan Ltd took over the assets of Rs 60,00,000 and liabilities of Rs 10,00,000 from Sohan 3
Ltd for an agreed purchase consideration of Rs 45,00,000. The amount was payable by
issuing 10% debentures of Rs 100 each at 25% premium.
Pass necessary journal entries for the above transactions in the book of Rohan Ltd.
 OR
Stark Ltd. issued 1,00,000 Equity shares of Rs. 10 each. The amount was duly received
except on 5,000 Equity shares on which Rs. 5 per share was received. These shares were
forfeited and 2,500 Equity shares were reissued for Rs. 9 each fully paid-up. Prepare Share
Forfeiture Account.
20 The capital of the firm of Anuj and Benu is Rs 10,00,000 and the market rate of interest is 3
15%. Annual salary to the partner is Rs 60,000 each. The profit for the last three years Rs
3,00,000, Rs 3,60,000 and Rs 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.
21 Janta Ltd had an authorized capital of 2,00,000 equity shares of Rs 10 each. The company 4
offered to the public for subscription 1,00,000 shares. Applications were received for
97,000 shares.
The amount was payable as follows on application was Rs 2 per share, Rs 4 was payable
each on allotment and first and final call.
A shareholder holding 600 shares failed to pay the allotment money. His shares were
forfeited. The company did not make the first and final call.
Show the share capital in the book of the company. Also prepare notes to accounts.
22 Charu, Dhwani, Iknoor and Paavni were partners in a firm. They had entered into 4
partnership firm last year only, through a verbal agreement.
They contributed capitals in the firm and to meet other financial requirements, few partners
also provided loan to the firm. Within a year, their conflicts arisen due to certain
disagreements and they decided to dissolve the firm.
The firm had appointed Ms Kavya, who is a financial advisor and legal consultant, to carry
on the dissolution process. She had transferred various assets and external liabilities to
realisation account.
Pass necessary journal entries for the following transaction
1. Dhwani`s loan of Rs 50,000 to the firm was settled by paying Rs 42000
2. Paavni`s loan of Rs 40,000 was settled by giving an unrecorded asset of Rs 45000
3. Loan to Charu of Rs 60,000 was settled by payment to Charu`s brother loan of the
same amount.
 4. Iknoor`s loan of Rs 80,000 to the firm and she took over machinery of Rs 60,000 as
part payment.
23 A Ltd invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of 6
Rs 4 per share. The amount was payable as follows
On application - Rs 5 per share
On allotment - Rs 9 per share (premium included)
Applications were received for 1,40,000 shares and allotment was made to all applicants on
pro-rata basis. Money overpaid on applications was adjusted towards sum due on allotment.
Rajiv, who had applied for 1400 shares failed to pay the allotment money. His shares were
forfeited. Later on, these forfeited shares were reissued at Rs 9 per shares as fully paid up.
Pass the necessary journal entries in the books of A Ltd. For the above transactions.
OR
Royal Fans Ltd. invited applications for 1,00,000 Equity Shares of Rs.100 each at a
premium of 10%. The amount was payable as follows:
On Application Rs. 50 per share On Allotment Rs. 35 per share (including premium) On
First and Final Call Rs. 25 per share Applications for 1,50,000 shares were received.
Applicants for 25,000 shares did not get any allotment and their money returned. Allotment
was made pro-rata to the remaining applicants. Excess application money was adjusted
towards sum due on allotment. Mr. Hanoz who was allotted 600 shares failed to pay the
amount due on allotment and call money. The company forfeited his shares and
subsequently re-issued at Rs 110 per share fully paid-up. You are required to pass journal
entries to record the above transactions in the books of the company.
24 On 31st March, 2019 the balance sheet of A and B, who were sharing profits in the ratio of 6
3:2 was as follows
Balance Sheet of A an B as at 31st March, 2019
Liabilities Amount Assets Amount
Creditors 30,000 Cash at Bank 20,000
Investment Debtors 85,000
Fluctuation Fund 12,000 (-) Provision for
General Reserve 25,000 Bad Debts (5,000) 80,000
Capital A/cs Stock 1,30,000
 A 1,60,000 Investments 60,000
C 1,40,000 3,00,000 Furniture 77,000
3,67,000 3,67,000
On 1st April 2019, they decided to admit C as a new partner for 1/5th share in the profits on
the following terms
1.C brought Rs 1,00,000 as his capital and Rs 50,000 as his share of premium for goodwill.
2. Outstanding salaries of Rs 2,000 be provided for.
3.The market value of investments was Rs 50,000
4.A debtor whose dues of Rs18,000 were written-off as bad debts paid Rs 12,000 in full
settlement. Prepare revaluation account, partner`s capital account and the balance sheet of
the new firm.
OR
Amit, Balan and Chander were partners in a firm sharing profits in the proportion of 1/2,
1/3 and 1/6 respectively . Chander retired on 1st April, 2014.The balance sheet of the firm
on the date of Chander`s retirement was as follows
Balance Sheet as at 1st April, 2014
Liabilities Assets Amount
Amount
Creditors 12,600 Cash at Bank 4100
General Reserve 9,000 Debtors 30 ,000
Provident fund 3,000 -Provision for Bad Debts (1,000) 29,000
Capital A/cs Stock 25,000
Amit 40,000 Investments 10,000
Balan 36,500 Patents 5000
Chander 20,000 96,500 Machinery 48,000
1,21,100 1,21,000
It was agreed that
1. Goodwill will be valued at Rs 27,000
2. Depreciation of 10% was to be provided on machinery.
3. Patents were to be reduced by 20%
4. Liabilities on account of provident fund was estimated at Rs 2400
 5. Chander took over investments for Rs 15,800
6. Amit and Balan decided to adjust their capitals in proportion of their profit sharing
ratio by opening current accounts.
Prepare revaluation account and partner`s capital accounts on Chander`s retirement.
25 Garima, Harish and Reena were partners in a firm sharing profits and losses equally. On 6
31st March, 2015, Harish died and the amount payable to his executors was Rs.90,000. It
was agreed between the remaining partners and Harish’s executors that the executors will
be paid in four equal yearly instalments along with interest @18% per annum starting from
31st March,2015. Prepare Harish’s Executors account till it is finally closed.
26 1. LT.Ltd purchased land from JSS Ltd. The payment was made by issuing a cheque 6
for Rs 10,00,000 and by accepting a bill of exchange for 6 months for 5,00,000. The
balance amount was paid by issuing 5000, 10% debentures of Rs 100 each at par
redeemable at 10% premium after 3 years.
Pass the necessary journal entries in the books of LT Ltd. for the above transactions.
2. ABC Ltd purchased assets of Rs 4,20,000 and took over liabilities of Rs 40,000 of
XYZ Ltd, at a value of Rs 3,60,000. ABC Ltd issued 10% Debentures of Rs 100
each at a discount of 10% in full settlement of the purchase consideration.
Pass the necessary Journal entries in the books of ABC Ltd for the above transactions.
PART B
(Analysis of Financial Statements)
27. 9% Debentures redeemable after 10 years of issue are shown as 1
a) Long-term borrowings
b) Other long- term liabilities
c) Short- term borrowings
d) Shareholder`s fund
OR
Outstanding salaries are recorded as an item of sub-headed …….. in balance sheet
a) Short – term provisions
b) Other current liabilities
c) Trade payables
d) Short-term borrowings
28 The quick ratio of Z Ltd is 1:1. State with reason which of the following transactions would 1
a) Increase, b)Decrease or c)Not change the ratio
1) Included in the trade payables was a bills payable of Rs 3000 which was met on
maturity.
2) Debentures of Rs 50,000 were converted into equity shares.
29 Statement 1 Cash advances and loans made by financial firms is an example of cash from 1
investing activities.
Statement 2 Cash advances and loans made to third party is an example of cash from
investing activities.
Alternatives
a) Both the statements are correct
b) Both the statements are incorrect
c) Statement 1 is correct and Statement 2 is incorrect.
d) Statement 2 is correct and Statement 1 is incorrect.
OR
Redemption of 2,00,000, 12% preference shares of Rs 10 each at premium of Rs 4 per share
will be shown as which activity while preparing cash flow statement?
a)Operating b) Investing
c)Financing d) None of these
30 From the following information find out the inflow of Cash by sale of Office equipment 1
31st March, 2022 31st March, 2021
Office Equipment ₹ 2,00,000 ₹ 3,00,000
Additional Information:
Depreciation for the year 2021-22 was Rs. 40,000
Purchase of Office Equipment purchased during the year Rs. 30,000
Part of Office Equipment sold at a profit of Rs. 12,000
a) ₹ 1,00,000 b) ₹ 1,02,000
c) ₹ 90,000 d) ₹ 1,12,000
31 Classify the following items under Major heads and Sub heads (If any) in the balance sheet 3
of a Company as per schedule III of the Companies Act 2013.
1. Stores and Spares 2. Loan repayable on demand
 3.Provident fund 4. Pre-paid Insurance
5.Capital Reserve 6.Shares in State Bank of India
32 Calculate the current ratio and debt- equity from the following information 3
Non current assets 16,00,000
Current Assets 4,00,000
Working Capital 2,00,000
Non- current Liabilities 12,00,000
33 From the following details provided by Karthik Ltd, prepare comparative statement of 4
profit and loss for the year ended 31st March 2021

Particulars 31st March 2021 31st March 2020

Revenue from operation 35,00,000 30,00,000
Other income 4,50,000 3,00,000
Cost of materials consumed 23,00,000 20,00,000
Other expenses 1,20,000 1,00,000
Tax Rate 40% 40%
OR
Prepare a common size balance sheet of KJ Ltd from the following information.

Particulars Note No 31st March 2017 31st March 2016

1.Equity and Liabilities
1)Shareholder`s fund 8,00,000 4,00,000
2)Non- current 5,00,000 2,00,000
Liabilities
3)Current Liabilities 3,00,000 2,00,000
Total 16,00,000 8,00,000
2. Assets
1)Non- current assets 10,00,000 5,00,000
2)Current assets 6,00,000 3,00,000
Total 16,00,000 8,00,000
34 Following is the balance sheet of MM Ltd as on 31st March 2015. 6
Balance sheet as at 31 march 2015
Particulars Note No 31st March 2015 31st March 2014
1.Equity and Liabilities
1. Shareholder`s 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 13,70,000 9,90,000
Assets
1.Non- current Assets
a) Fixed Assets
1. Tangible 5 10,03,000 7,20,000
2. Intangible 6 20,000 30,000
b) Non- current Investments 1,00,000 75,000
2. Current Assets
1. Current Investments 50,000 60,000
2. Inventories 7 1,07,000 45,000
3. Cash and cash equivalents 90,000 60,000
Total 13,70,000 9,90,000

Notes to accounts
Particulars 31st March 2015 31st March 2014
1.Reserves and Surplus
 Surplus i.e Balance in Statement of Profit 20,00,000 (50,000)
and Loss
2. Long – term borrowings
12% Debentures 4,50,000 5,00,000

3.Short – term borrowings

Bank overdraft 1,50,000 50,000
4.Short- term provisions
Provision for tax 70,000 90,000

5.Tangible Assets
Machinery 12,03,000 8,21,000
(-) Accumulated Depreciation (20,00,000) 1,01,000
10,03,000 7,20,000
6.Intangibe Assets
Goodwill 20,000 30,000
7.Inventories
Stock -in- trade 1,07,000 45,000
Additional Information
1.12% debentures were redeemed on 31st March, 2015
2.Tax Rs 70,000 was paid during the year
Prepare cash flow statement.