XII Accountancy

Final Mock Paper (Before Board Exam)

## Dear Students; before going to Main Board Exam; Must Solve

this Paper. You will feel- your main Board Exam Easy…!!!
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 Nos.1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
5. Questions Nos. from 21 ,22 and 33 carries 4 marks each
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each

Marks-80 Time-3 hrs

PART-A
(Accounting for Partnership Firms and Companies)

1. Which of the following, partners can distribute-

(a) Employees provident Fund (b) Provision for doubtful debts
(c) Workers profit sharing fund (d) Retained earnings

2. A is drawing Rs.2,000 per month on the last day of every month. If the rate of
interest is 5% then the total interest chargeable from him in the accounting year
will be-

(a) Rs.550 (b) Rs.650 (c) Rs.600 (d) Rs.1,200

3. Under what circumstances interest on loan will be debited to profit and loss
account?
(a) When there is profit
(c) When there in no partnership deed
(b) When there is loss
(d) All of above

1
 4. X and Y are partners sharing profits in 3:2 ratio. Their capitals were Rs.50,000 and
Rs.40,000. Interest on capital (charge)@10% p.a. Loss during the year was
Rs.6,000. What profit or loss is to be shared by the partners?

(a) Loss to X Rs.3,600; Y Rs.2,400 (c) Loss to X Rs.3,000; Y Rs.3,000

(b) Loss to X Rs.9,000; Y Rs.6,000 (d) Loss to X Rs.2,000; Y Rs.1,000

5. Shiksha Ltd. issued 20,000, 7% Debentures of 100 each at certain rate of discount
and were to be redeemed at 5% premium. Existing balance of Securities Premium
before issuing of these debentures was 40,000. Loss on issue of debentures was
immediately written off and 1,20,000 were charged to Statement of Profit and
Loss. At what rate of discount, these debentures were issued?

(a) 8% (b) 5% (c) 6% (d) 3%

OR

Orange Ltd. took over assets of 7,00,000 and liabilities of ₹60,000 of Purple Ltd.
for a purchase consideration of 6,30,000 payable by the issue of 10% Debentures
of ₹100 each at a premium of 10% and if need be, a part of the purchase
consideration in cash. How will the company meet the purchase consideration?

(A) By the issue of 5,72,727, 10% Debentures at a premium of ₹ 57,272 with no

cash
(B) By the issue of 5,72,000, 10% Debentures at a premium of ₹57,200 and cash
of Rs.800.
(C) By the issue of 5,72,720, 10% Debentures at a premium of ₹ 57,272 and cash
of Rs.8.
(D) By the issue of 5,72,700, 10% Debentures at a premium of ₹57,270 and cash
of Rs.30.

6. Average Profit of a firm during the last few years are Rs. 1,20,000 and the normal
rate of return in the similar business is 10%. If the goodwill of the firm is Rs.

2
 1,12,500 at 3 years purchase of Super Profit, the capital employed of the firm was
Rs.

(a) 8,25,000 (c) 3,75,000

(b) 12,00,000 (d) 5,55,000

7. Vinod Ltd. offered 50,000 Equity Shares of Rs. 10 each, of these 48,000 shares
were subscribed. The amount was payable as Rs. 3 on Application, Rs. 4 on
Allotment along with premium of Rs. 2 and Balance on First & Final Call.

Yashika one Shareholder did not pay allotment on 2,000 shares and her shares
were forfeited immediately after the allotment. Navya another Shareholder
holding 1,500 Shares did not pay the First & Final Call.
How much amount is received on First & Final Call by Vinod Ltd. ?

(a) Rs. 1,33,500 (b) Rs. 1,45,500 (c) Rs. 1,39,500 (d) Rs. 2,22,500

8. Albert, Peter and William are partners sharing profits in the ratio of 2:2: 1. It is
provided that William's Share of profit would not be less than Rs.35,000.
Deficiency if any will be borne by Albert 35% and remaining by Peter. Profit for
the year ended 31st March 2021 was Rs. 15,000. Deficiency borne by Peter:

(a) Rs. 20,800 (b) Rs. 32,000

(c) Rs. 11,200 (d) No Deficiency is to borne by any partner due to less profit

OR

Vinod (a partner) withdrew Rs. 6,000 at the end of every month for last 6 months
ending on 31st March 2021. Interest was calculated on his drawings Rs.375.

Interest on drawings was charged at the rate of ....

(a) 5% p.a. (b) 6% p.a. (c) 7% p.a. (d).8% p.a

9. A, B, C and D are partners sharing profits in the ratio of 4:3:2:1. They admit E as a
new partner for 1/10th share. It is agreed that C and D will retain their original
shares. What will be New profit sharing ratio?
3
 (a) 4:3:2:1:1 (b) 24:18:14:7:7 (c) 7:5:4:2:2 (d) 36:27:18:9:10

10. On dissolution of a firm, debtors were ₹1,00,000. Of these 10,000 became bad
and the rest realised 60%. Which account will be debited and by how much
amount?

(a) Realisation Account by 50,000 (c) Bank Account by 54,000

(b) Realisation Account by 36,000 (d) Realisation Account by 54,000

Read the following hypothetical situation and answer Question No. 11 and 12.

Ali, Beg and Chand were partners in a firm sharing profits in the ratio of 2:2:1. On
31st March 2022, their capital balances were 10,00,000 each.

Beg died on 30th September 2022 and following capital account was prepared on
his death:

Dr. BEG's CAPITAL ACCOUNT Cr.

PARTICULARS AMOUNT PARTICULARS AMOUNT

To P & L A/c 10,000 By Balance b/d 10,00,000
To Goodwill A/c 12,000 By General Reserve 50,000
A/c
To Beg's Executor's 10,80,000 By Revaluation A/c 25,000
A/c
By Ali's Capital A/c 9,000
(Goodwill)
By Chand's Capital A/c 6,000
(Goodwill)
By P & L Suspense A/c 12,000
11,02,000 11,02,000

11. If sales basis was considered to calculate profit for the interim period (i.e., up to
the date of his death) and rate of profit was 20% on sales, what is the amount of
sales for the interim period?

(a) ₹30,000 (b) ₹1,50,000 (c) ₹12,000 (d) ₹ 72,000

4
12. Value of firm's goodwill on Beg's death:

(a) ₹ 6,000 (b) ₹15,000 (c) ₹37,500 (d) ₹30,000

13. Moti Ltd. forfeited 2,000 shares of ₹10 each, ₹8 Called up, for non-payment of
first call of ₹2 per share. Out of these, 1500 shares were reissued for ₹10,500 as
₹8 paid up. What is the amount to be transferred to Capital Reserve?

(a) ₹4,500 (b) ₹10,500 (c) ₹7,500 (d) ₹14,500

14. In the absence of partnership deed profit sharing ratio will be:

(a) Capital Ratio (b) Senior partner will get more profit

(c) Profits will not be distributed (d) Equal ratio irrespective of capitals

OR

Which of the following is shown in P/L Appropriation A/c?

(a) Rent to partner (c) Manager's Commission

(b) Interest on loan (d) Partner's Commission

15. Assertion (A): Generally, Balance of Partners Capital Account remains unchanged
when capitals are fixed, but it may show a decrease in the Balance irrespective of
fixed capital.

Reason (R): Fixed Capital Account balance will reduce, when a partner withdraws
for personal use from his capital.
In the context of the above statements, which one of the following is correct?

(a) Assertion is correct, but Reason is wrong

(b) Both Assertion and Reason are correct and Reason is the correct explanation
of Assertion (c) Both Assertion
and Reason are correct but Reason is not the correct explanation of Assertion
(d) Assertion is wrong but Reason is correct

16. Assertion(A): A partnership firm can have a maximum of 50 partners

5
 Reason (R): Maximum limit of partners is prescribed in Indian Partnership
Act,1932

(a) Assertion is correct, but Reason is wrong

(b) Both Assertion and Reason are correct and Reason is the correct explanation
of Assertion (c) Both Assertion
and Reason are correct but Reason is not the correct explanation of Assertion
(d) Assertion is wrong but Reason is correct

17. The capitals of X,Y and Z as on 31st March, 2018 amounted to Rs.1,50,000,
Rs.5,50,000 and Rs. 11,00,000 respectively. Profit amounting to Rs.3,00,000 for
the year 2017-18 was distributed in the ratio of 4:1:1 after allowing interest on
capital @ 10% p.a. During the year, each partners withdrew Rs.50,000 per month
in the beginning of each month. The Partnership Deed was silent as to profit
sharing ratio and interest on drawings but provided for interest on capital @12%
p.a.
Showing your working clearly, pass the necessary adjustment entry to rectify the
above error.

18. Arun, Barun and Chug are partners sharing profits in 3:2:2. They admitted Mallika
into partnership for 1/5th share which she acquired from Arun, Barun and Chug
in 2:2:1 ratio respectively. You are required to calculate the new profit sharing
ratio.

19. Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14: 5:
6 respectively. Bhim retires and surrenders his share in favour of Arjun. The
goodwill of the firm is valued at 2 years' purchase of super profits based on
average profits of last 3 years. The profits for the last 3 years are ₹ 50,000, ₹
55,000 and ₹ 60,000 respectively. The normal profits for the similar firm are ₹
30,000. Goodwill already appears in the book of the firm at ₹ 75,000. The profit
for the first year after Bhim's retirement was ₹ 1,00,000. Give the necessary
journal entries to adjust goodwill and distribution of profits showing your
workings.
6
 OR

A, B and C were partners sharing profits in ratio 3:2: 1. C retired on 1st October,
2021 on which date capitals of A and B were 1,00,000 and 70,000 and C's loan
amounted to 40,000. The new firm earned a profit of 30,000 by the use of firms
property as on 31st March 2022.
(i) State which two options are available to C as per requirements U/S(under
section) 37 of Indian Partnership Act, 1932.
(ii) Which option should be opted by C and why?

20. Surya Ltd. purchased machinery from Mohan Equipment Ltd. The company paid
the vendors by issue of 9% debentures and the balance through an acceptance in
their favour payable after three months. The accountant of the company while
Journalising the above mentioned transactions left some items blank. Fill in the
blanks in the given below Journal of Surya Ltd.:

21. Pass necessary journal entries in the following cases on the dissolution of a
partnership firm of partners X, Y, A and B:
(i) Realization expenses of 5,000 were to borne by X, a partner. However,
it was paid by Y.

7
(ii) Investments costing 25,000 (comprising 1000 shares), had been written off from
the books completely. These shares are valued at 20 each and were divided
amongst the partners.
(iii) Y's loan of 50,000 settled at 48,000.
(iv) Machinery (book value * 6,00,000) was given to creditor at a discount of 20%

22. Radhika Limited issued 50,000 shares of 10 each. The due amount was received
except on 1,000 shares on which 6 per share was received. These 1,000 shares
were forfeited and 700 shares were reissued for 8 each fully paid-up.
Show the Forfeited Shares Account and the Balance Sheet at closing date.

23. A and B were partners in a firm sharing profits in 3 : 1 ratio. They admitted C as a
partner for 1/4th share in the future profits. C was to bring ₹ 60,000 for his capital.
The Balance Sheet of A and B as at 1st April, 2019, the date on which C was admitted,
was:

The other terms agreed upon were:

(a) Goodwill of the firm was valued at ₹ 24,000.
(b) Land and Building were valued at ₹ 65,000 and Plant and Machinery at ₹ 60,000.
(c) Provision for Doubtful Debts was found in excess by ₹ 400.
(d) A liability of ₹ 1,200 included in Sundry Creditors was not likely to arise.

8
 (e) The capitals of the partners be adjusted on the basis of C's contribution of capital
to the firm.
(f) Excess of shortfall, if any, be transferred to Current Accounts.
Prepare Revaluation Account and Partners' Capital Accounts of the new firm.

OR

Kushal Kumar and Kavita were partners in a firm sharing profits in the ratio of
3:1:1. On 1st April, 2012 their Balance Sheet was as follows:

On the above date, Kavita retired and the following was agreed:
(i) Goodwill of the firm was valued 40,000.
(ii) Land was to be appreciated by 30% and building was to be depreciated by
1,00,000.
(iii) Value of furniture was to be reduced by 20,000.
(iv) Bad debts reserve is to be increased to 15,000.
(v) 10% of the amount payable to Kavita was paid in cash and the balance
was transferred to her Loan Account.
(vi) Capitals of Kushal and Kumar will be in proportion of their new profits sharing
ratio. The surplus/deficit, if any in their Capital Accounts will
be adjusted through Current Accounts.
Prepare Revaluation Account and Partners' Capital Accounts

9
24. Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the
ratio of 2: 2: 1. The firm closes its books on 31st March every year. On 30th June,
2020Maheepdied. The partnership deed provided that on the death of a partner
his executors will be entitled to the following:
a) Balance in his capital account which amounted to ₹1,15,000and interest on
capital till date of death which amounted to ₹5,000.
b) His share in the profits of the firm till the date of his death amounted to
₹20,000.
c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s
death was valued at ₹ 1,50,000.
d) Loan to Maheep amounted ₹ 20,000. It was agreed that the amount will be
paid to his executor in three equal yearly instalments with interest @10% p.a. The
first instalment was to be paid on 30.06.2021.
Calculate the amount to be transferred to Maheep’s executors Account and
prepare the executor’s account till it is finally settled.

25. Khyati Ltd. issued a prospectus inviting applications for 80,000 equity shares of
₹10 each payable as follows:
₹2 on application
₹3 on allotment
₹2 on first call
₹3 on final call
Applications were received for 1,20,000 equity shares. It was decided to adjust the
excess amount received on account of over subscription till allotment only. Hence
allotment was made as under:
(i) To applicants for 20,000 shares - in full
(ii) To applicants for 40,000 shares - 10,000 shares
(iii) To applicants for 60,000 shares - 50,000 shares

Allotment was made and all shareholders except Tammana, who had applied for
2,400 shares out of the group (iii), could not pay allotment money. Her shares were
forfeited immediately after allotment. Another shareholder Chhaya, who was
allotted 500 shares out of group (ii), failed to pay first call. 50% of Tamanna's shares
were reissued to Satnam as ₹ 7 paid up for payment of ₹9 per share.

10
 Pass necessary journal entries in the books of Khyati Ltd. for the above transactions
by opening calls in arrears and calls in advance account wherever needed.

OR

Zocon Ltd. issued a prospectus inviting applications for 5,00,000 equity shares of ₹10
each issued at a premium of 10% payable as:
₹3 on Application
₹5 on Allotment (including premium)
and balance on call.
Applications were received for 6,60,000 shares.
Allotment was made as follows:
(a) Applicants of 4,00,000 shares were allotted in full.
(b) Applicants of 2,00,000 shares were allotted 50% on pro-rata basis.
(c) Applicants of 60,000 shares were issued letters of regret.

A shareholder to whom 500 shares were allotted under category (a) paid full amount
on shares allotted to him along with allotment money. Another shareholder to whom
1,000 shares were allotted under category (b) failed to pay the amount due on
allotment. His shares were immediately forfeited. These shares were then reissued
at ₹14 per share as ₹7 paid up. Call has not yet been made.
Journalize.

26. (i) Meghnath Limited took a loan of 1,20,000 from a bank and deposited 1,400, 8%
debentures of 100 each as collateral security along with primary security worth ₹2
lakhs. Company again took a loan of 80,000 after two months from a bank and
deposited 1,000, 8% debentures of 100 each as collateral security. Record necessary
journal entries.

(ii) X Ltd. purchased assets of Y Ltd. as under:

Plant and Machinery of 20,00,000 at 18,00,000; Land and Buildings of 30,00,000 at
42,00,000 for purchase consideration of 55,00,000 and paid 10,00,000 in cash and
remaining by issue of 8% Debentures of 100 each at a premium of 20%. Record
necessary entries in the books of X Ltd.

11
 PART B
(ANALYSIS OF FINANCIAL STATEMENT)

27. X Ltd. purchased Furniture for Rs. 20,00,000 paying 60% by issue of Equity Shares of
Rs. 10 each and the balance by cheque. This transaction will result in....
(a) Cash used in Investing Activities Rs. 20,00,000
(b) Cash Generated from Financing Activities Rs. 12,00,000
(c) Increase in Cash and Cash Equivalents Rs. 8,00,000
(d) Cash used in Investing Activities Rs. 8,00,000

28. On the basis of following data, a Company's Gross Profit Ratio will be:
Net Profit ₹80,000; Wages 10,000; Office Expenses 30,000; Selling Expenses 20,000;
Total revenue from operations 5,00,000.
(A) 28% (B) 26% (C) 4% (D) 6%

OR

‘Freedom to Choose of method of depreciation’ refers to which limitation of

financial statement analysis.
a) Historical analysis.
b) Qualitative aspect ignored.
c) Not free from bias.
d) Ignore Price level Changes.

29. "Capital gain tax paid on sale of building by a Company" will be shown under which
type of activity while preparing the Cash Flow Statement?

30. 'Forfeited Shares Account' appears in the Balance Sheet of the company under the
subhead:
(A) Reserves and Surplus
(B) Share Capital
(C) Long-term Provisions
(D) Other Current Liabilities

12
 OR

A company sold inventory costing 2,00,000 at a loss of 10,000. It will result in inflow,
outflow or no flow of cash?

31. Classify the following items under Major heads and Sub heads (If any) in the
balance sheet of a Company as per schedule III of the Companies Act 2013.
(i) Borrowings Payable in 30 months, operating cycle period 36 months

(ii) Finished Goods

(iii) Loan to employee payable in current financial year

(iv) Debenture Redemption Reserve

(v) Dividend Receivable

(vi) Excess application money refundable along with interest

32. Lala Ltd. and Bala Ltd. use different accounting policies for inventory valuation.
These variations leave a big question mark on the cross-sectional analysis and
comparison of these two firms was not possible. Identify the limitation of Ratio
Analysis highlighted in the above situation. Also explain any two other limitations
of Ratio Analysis apart from the identified above.

OR

Determine Return on Investment and Net Assets Turnover ratio from the
following information:- Profits after Tax were ₹ 6,00,000; Tax rate was 40%; 15%
Debentures were of ₹20,00,000; 10% Bank Loan was ₹ 20,00,000; 12% Preference
Share Capital ₹ 30,00,000; Equity Share Capital ₹ 40,00,000 ; Reserves and Surplus
were ₹ 10,00,000; Sales ₹ 3,75,00,000 and Sales Return ₹ 15,00,000.

33. From the following Balance Sheet of R Ltd., Prepare a Common Size Statement
Balance Sheet As at 31st March, 2018.
13
 OR

From the following Statement of Profit and Loss of the Sakhi Ltd. for the year
ended 31st March 2018, prepare Comparative Statement of Profit & Loss.

14
 34. From the following information, Complete the Cash flow Statement of RK Ltd.
Cash Flow Statement For the year ended on 31st March 2015

31. 3. 2015

15
 Additional Information:
(1) Depreciation charges on Building for the3 year 2014-15 was Rs. 10,000.
(2) During the year 2014-15, machinery of Rs. 1,38,000 was purchased.
(3) A part of machinery costing Rs. 20,000 with accumulated depreciation
of Rs 6,500 was sold for Rs. 8,500.
(4) Income tax paid during the year 2014-15 was Rs. 18,000.

16