NIMS GROUP OF SCHOOLS, U.A.

E
TERM – 1, EXAMINATION (SEP -OCT 2022)
ACCOUNTANCY
Grade: 12 CBSE Time :3 Hrs.
Date: 26. 09. 2022 Marks: 80

General Instructions:
1. This question paper comprises two Parts – A and B.
2. There are 32 questions in the question paper. All questions are compulsory.
3. Part A & B is compulsory for all candidates.
4. Question nos. 1 to 13 and 23 to 29 are very short answer type questions carrying 1
mark each.
5. Question nos. 14 and 30 are short answer type–I questions carrying 3 marks each.
6. Question nos. 15 to 18 and 31 are short answer type–II questions carrying 4 marks
each.
7. Question nos. 19, 20 and 32 are long answer type–I questions carrying 6 marks each.
8. Question nos. 21 and 22 are long answer type–II questions carrying 8 marks each.
9. There is no overall choice. However, an internal choice has been provided in 2
questions of three marks, 2 questions of four marks and 2 questions of eight marks.

Q. PART – A Mark
No s
1. E, F and G are partners sharing profits in the ratio of 3:3:2. As per the 1
partnership agreement, G is to get a minimum amount of ₹80,000 as his
share of profits every year and any deficiency on this account is to be
personally borne by E. The net profit for the year ended 31st March, 2020
amounted to ₹3,12 ,000. Calculate the amount of deficiency to be borne by
E?
(a) ₹1,000 (b) ₹4,000 (c) ₹8,000 (d) ₹2,000
2 Vidit and Seema were partners in a firm sharing profits and losses in the
ratio of 3 : 2. Their capitals were ₹1,20,000 and ₹2,40,000, respectively.

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 They were entitled to interest on capital @ 10% p.a. The firm earned a profit
of `18,000 during the year. The interest on Vidit’s capital provided by the
firm will be:
(a) ₹12,000 (b) ₹10,000 (c) ₹7,200 (d) ₹6,000
3 A and B are partners in a firm sharing profits in the ratio of 3 : 2. They
decided to share future profits equally. Calculate A’s gain or sacrifice.
(a) 2/10 (sacrifice) (b) 5/10 (gain) (c) 1/10 (Gain) (d) 1/10 (sacrifice)
4 Capital invested in a firm is ₹5,00,000.Normal rate of return is
10% .Average profit of the firm are ₹ 64,000(after an abnormal loss of
₹4,000).Value of goodwill at four times the super profits will be:
(a) ₹ 72,000 (b) ₹ 40,000 (c) ₹ 2,40,000 (d) ₹ 1,80,000
5 Goodwill of the firm on the basis of 2 years' purchase of average profit of
the last 3 years is ₹ 25,000. Find average profit.
(a) ₹ 50,000 (b) ₹ 25,000 (c) ₹ 10,000 (d) ₹ 12,500
6 X and Y are equal partners. They had advanced a loan of ₹40,000,
contributed equally to the firm on 1st August, 2019. The partnership deed is
silent regarding the payment of interest on loan. What amount of interest on
loan is payable to X, if the firm closes its books of account on 31st March
every year? (a) Nil (b) ₹2,400 (c) ₹1,600 (d) ₹800
7 Himanshu and Naman share profits & losses equally. Their capitals were ₹
1,20,000 and ₹ 80,000 respectively. There was also a balance of ₹ 60,000 in
General reserve and revaluation gain amounted to ₹ 15,000. They admit
friend Ashish with 1/5 share. Ashish brings ₹ 90,000 as capital. Calculate
the amount of goodwill of the firm.
a. ₹ 1,00,000 b. ₹ 85,000 c. ₹ 20,000 d. None of the above
8 Ram and Shyam are partners sharing profits/losses equally. Ram withdrew
₹1,000 p.m. regularly on the first day of every month during the year 2019-
20 for personal expenses. If interest on drawings is charged @ 5% p.a. What
will be the interest on the drawings of Ram?

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 (a) ₹50 (b) ₹27 (c) ₹600 (d) ₹325
9 Sankar withdrew ₹ 100000 from the business for personal purpose during
the year 2021-22. As per the agreement, interest on drawings is charged @
2.5%. Calculate the interest on drawings of Sankar.
10 The loss or gain an account of revaluation at the time of retirement of a
partner is shared by
(a) All partners
(b) Remaining partners
(c) Retiring partner
(d) None of the options
11 Retirement or death of a partner will create a situation for the continuing
partners, which is known as:
A. Dissolution of Partnership
B. Dissolution of partnership firm
C. Winding up of business
D. None of the above
12 Rex, Tex and Flex are partners in a firm in the ratio of 5:3:2. As per their
partnership agreement, the share of deceased partner is to be calculated on
the basis of profits and turnover of previous accounting year. Tex expired on
31st December 2019. Turnover till the date of death was ₹ 18,00,000. Their
profits and turnover for the year 2018-19 amounted to ₹ 4,00,000 and ₹
20,00,000 respectively. An amount of ₹ ____________will be given to his
executors as his share of profits till the date of death
13 For which of the following situations, the old profit sharing ratio of partners
is used at the time of admission of a new partner?
a. When new partner brings only a part of his share of goodwill.
b. When new partner is not able to bring his share of goodwill.
c. When, at the time of admission, goodwill already appears in the balance
sheet.

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 d. When new partner brings his share of goodwill in cash.
14 Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6:4:1.
Komal is guaranteed a minimum profit of ₹ 2,00,000. The firm incurred a
loss of ₹22,00,000 for the year ended 31st March,2018. Pass necessary
journal entry regarding deficiency borne by Maanika and Bhavi and prepare
Profit and Loss Appropriation Account.
OR
The partners of a firm, Alia, Bhanu and Chand distributed the profits for the
year ended 31st March, 2017, ₹ 80,000 in the ratio of 3:3:2 without
providing for the following adjustments:
a) Alia and Chand were entitled to a salary of ₹ 1,500 each p.m.
b) Bhanu was entitled for a salary of ₹ 4,000 p.a.
Pass the necessary Journal entry for the above adjustments in the books of
the firm. Show workings clearly.
15 Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 :
2. Their capitals were ₹ 1,60,000 and ₹. 1,00,000 respectively. They
admitted Somesh on 1st April 2013 as a new partner for 1/5 share in the
future profits. Somesh brought ₹. 1,20,000 as his capital. Calculate the value
of goodwill of the firm and record necessary journal entries for the above
transactions on Somesh’s admission.
OR
Madhu and Neha were partners in a firm sharing profits and losses in the
ratio of 3 : 5. Their fixed capitals were ₹ 4,00,000 and ₹ 6,00,000
respectively. On 1.1.2016, Tina was admitted as a new partner for 1/4 th
share in the profits. Tina acquired her share of profit from Neha. Tina
brought Rs 4,00,000 as her capital which was to be kept fixed like the
capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's
admission and the new profit sharing ratio of Madhu, Neha and Tina. Also,
pass necessary journal entry for the treatment of goodwill on Tina's

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 admisson considering that Tina did not bring her share of goodwill premium
in cash.
16 Naresh, David and Aslam are partners sharing profits in the ration of 5 : 3 :
7. On April 1st 2012, Naresh gave a notice to retire from the firm. David and
Aslam decided to share future profits in the ratio of 2 : 3. The adjusted
capital accounts of David and Aslam show a balance of ₹ 33,000 and ₹
70,500 respectively. The total amount to be paid to Naresh is ₹ 90,500. The
amount is to be paid by David and Aslam in such a way that their capitals
become proportionate to their new profits sharing ratio. Pass necessary
journal entries for the above transactions in the books of the firm. Show your
working clearly.
17 Pass journal entries to record the following transactions on the admission of
a new partner :
(i) Stock is undervalued by 10% (Book Value of Stock ₹54,000)
(ii) Value of machinery is to be increased to ₹5,00,000 (Book Value
₹4,00,000)
(iii) Value of Building is to be increased by ₹5,00,000 (Book Value
₹4,00,000)
(iv) A debtor whose due of ₹40,000 was written off as bad debts last
year, paid ₹30,000 in full settlement.
18 Banwari, Girdhari and Murari are partners in a firm sharing profits and
losses in the ratio of 4 : 5 : 6. On 31st March, 2014, Girdhari retired. On that
date the capitals of Banwari, Girdhari and Murari before the necessary
adjustments stood at ₹ 2,00,000, ₹ 1,00,000 and ₹ 50,000 respectively. On
Girdhari’s retirement, goodwill of the firm was valued at ₹ 1,14,000.
Revaluation of assets and re-assessment of liabilities resulted in a profit of ₹
6,000. General Reserve stood in the books of the firm at ₹ 30,000. The
amount payable to Girdhari was transferred to his loan account. Banwari and
Murari agreed to pay Girdhari two yearly instalments of ₹ 75,000 each

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 including interest @ 10% p.a. on the outstanding balance during the first two
years and the balance including interest in the third year. The firm closes its
books on 31st March every year.
Prepare Girdhari’s loan account till it is finally paid showing the working
notes clearly.
19 Bhavya and Sakshi are partners in a firm, sharing profits and losses in the
ratio of 3:2. On 31st March, 2019, their Balance Sheet was as under:
Balance Sheet of Bhavya and Sakshi as at 31st March, 2019
Liabilities Amount Assets Amount
(₹) (₹)
Sundry Creditors 13,800 Furniture 16,000
General Reserve 23,400 Land and Building 56,000
Investment Fluctuation Investments 30,000
Fund 20,000 Trade Receivables 18,500
Bhavya’s Capital 50,000 Cash in Hand 26,700
Sakshi’s Capital 40,000
1,47,200 1,47,200

The partners have decided to change their profit sharing ratio to 1: 1 with
immediate effect. For the purpose, they decided that:
a. Investments to be valued at ₹ 20,000
b. Land and building appreciated to ₹ 61000
c. Creditors of ₹ 2000 not likely to claim their amount and hence to
be written off.
d. Goodwill of the firm valued at ₹ 24,000
e. General Reserve not to be distributed between the partners.
You are required to pass necessary journal entries in the books of the firm.
Show workings.
20 Danish, Ana and Pranjal are partners in a firm sharing profits and losses in

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 the ratio of 5:3:2. Their books are closed on March 31st every year. Danish
died on September 30th, 2021. The executors of Danish are entitled to:-
i. His share of Capital i.e. ₹ 5,00,000 along-with his share of
goodwill. The total goodwill of the firm was valued at ₹
60,000
ii. His share of profit up to his date of death on the basis of sales
till date of death. Sales for the year ended March 31, 2021 was
₹ 2,00,000 and profit for the same year was 10% on sales.
Sales shows a growth trend of 20% and percentage of profit
earning is reduced by 1%
iii. Interest on capital @ 10% p.a
iv. Amount payable to Danish was transferred to his executor’s
a/c.
Prepare Danish’s Capital account.

21 Mohan, Vinay and Nitya were partners in a firm sharing profits and losses in
the proportion of 1/2 , 1/3 and 1/6 respectively. On 31st March, 2018, their
Balance Sheet was as follows :
Balance Sheet of Mohan, Vinay and Nitya as at 31st March, 2018
Liabilities Amount Assets Amount
Creditors 48,000 Cash at Bank 31000
Employees’ Provident 170000 Bills Receivable 54000
Fund 30000 Book Debts 63000
Contingency Reserve Less : Provision for 61000
Capital: doubtful debts 2000
120000
Mohan 120000 Plant and Machinery
292000
Vinay 100000 310000 Land and Building
Nitya 90000
558000 558000

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Mohan retired on the above date and it was agreed that :
(i) Plant and machinery will be depreciated by 5%.
(ii) An old computer previously written off was sold for ₹ 4,000.
(iii) Bad debts amounting to ₹ 3,000 will be written off and a provision
of 5% on debtors for bad and doubtful debts will be maintained.
(iv) Goodwill of the firm was valued at ₹ 1,80,000 and Mohan’s share
of the same was credited in his account by debiting Vinay’s and
Nitya’s accounts.
(v) The capital of the new firm was to be fixed at ₹ 90,000 and
necessary adjustments were to be made by bringing in or paying
off cash as the case may be.
(vi) Vinay and Nitya will share future profits in the ratio of 3 : 2.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance
Sheet of the reconstituted firm.
OR
Leena and Rohit are partners in a firm sharing profits in the ratio of 3 : 2.
On 31st March, 2018, their Balance Sheet was as follows :
Balance Sheet of Leena and Rohit as at 31st March, 2018
Liabilities Amount Assets Amount
Creditors 80000 Cash 42000
Bills Payable 38000 Debtors 132000
General Reserve 50000 Less : Provision for 130000
Capital: doubtful debts 2000
146000
Leena 160000 Stock
300000 150000
Rohit 140000 Plant and Machinery

468000 468000

On the above date Manoj was admitted as a new partner for 1/5 th share in
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 the profits of the firm on the following terms :
(i) Manoj brought proportionate capital. He also brought his share of
goodwill premium of ₹ 80,000 in cash.
(ii) 10% of the general reserve was to be transferred to provision for
doubtful debts.
(iii) Claim on account of workmen’s compensation amounted to ₹
40,000.
(iv) Stock was overvalued by ₹ 16,000.
(v) Leena, Rohit and Manoj will share future profits in the ratio 5 : 3 :
2.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance
Sheet of the reconstituted firm.
22 Moli, Bhola and Raj were partners in a firm sharing profits and losses in the
ratio of 3 : 3 : 4. Their partnership deed provided for the following :
i. Interest on capital @ 5% p.a.
ii. Interest on drawing @ 12% p.a.
iii. Interest on partners’ loan @ 6% p.a.
iv. Moli was allowed an annual salary of ₹ 4,000
v. Bhola was allowed a commission of 10% of net profit as shown by
Profit and Loss Account and Raj was guaranteed a profit of ₹
1,50,000 after making all the adjustments as provided in the
partnership agreement.
vi. Their fixed capitals were Moli : ₹ 5,00,000; Bhola : ₹ 8,00,000
and Raj : ₹ 4,00,000. On 1st April, 2016 Bhola extended a loan of
₹ 1,00,000 to the firm. The net profit of the firm for the year ended
31st March, 2017 before interest on Bhola’s loan was ₹ 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for
the year ended 31st March, 2017 and their Current Accounts assuming that
Bhola withdrew ₹ 5,000 at the end of each month, Moli withdrew ₹ 10,000

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 at the end of each quarter and Raj withdrew ₹ 40,000 at the end of each half
year.
OR
(i). A, B & C were partners. Their capitals were ₹ 30,000; ₹ 20,000 and ₹
10,000 respectively, According to the partnership deed they were entitled to
an interest on capital at 5% p.a. In addition B was also entitled to draw a
salary of ₹ 500 per month. C was entitled to a commission of 5% on the
profits after charging the interest on capital, but before charging the salary
payable to B. The net profits for the year were ₹ 30,000, distributed in the
ratio of their capitals without providing for any of the above adjustments.
The profits were to be shared in the ratio of 2:2: 1. Pass the necessary
adjustment entry showing the workings clearly.
(ii). Give two point of differences between Fixed Capital Method and
Fluctuating Capital Method.
PART - B

23 Which of the following is not a part of Finance Cost (in statement of profit
and loss)?
(a) Bank Charges (b) Interest Paid on Debentures
(c) Interest Paid on Public Deposits (d) Loss on Issue of Debentures
24 Debt Equity Ratio of a company is 1:2. Purchase of a Fixed asset for ₹
5,00,000 on long term deferred payment basis will increase, decrease or not
change the ratio?
25 Which of the following is not a subhead under the Current Assets?
A. Cash and Cash Equivalents B. Trademarks
C. Short-term Loans and Advances D. Inventories
26 The two basic measures of operational efficiency of a company are
a) Inventory Turnover Ratio and Working Capital Turnover
Ratio

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 b) Liquid Ratio and Operating Ratio
c) Liquid Ratio and Current Ratio
d) Gross Profit Margin and Net Profit Margin
27 Under which of the following head/subhead is ‘Forfeited Shares’ presented
in the Balance Sheet of a company?
A. Reserves and Surplus B. Share Capital
C. Other Long-term Liabilities D. Other Current Liabilities
28 State the significance of Analysis of Financial statement to the ‘Lenders’.

29 Which of the following is not a limitation of ‘Financial Statements

Analysis’? A. It is affected by personal bias.
B. Inter-firm comparative study possible.
C. Lack of qualitative analysis.
D. Ignores price level changes.
30 Under which major headings and subheadings will the following items be
presented in the Balance Sheet of a company as per Schedule III, Part I of
the Companies Act, 2013 ?
(i) Interest accrued and due on debentures
(ii) Loose tools
(iii) Accrued interest on calls in advance
(iv) Interest due on calls in arrears
(v) Trademarks
(vi) Premium on redemption of debentures
OR
Operating Cycle and the expected period of realisation of trade receivables is
given below. How will you classify the asset into Current or Non-Current ?
Particulars (i) (ii) (iii)
Operating Cycle (Months) 10 17 10
Expected period of realisation (Months) 12 15 15
31 Calculate amount of Opening Trade Receivables and Closing Trade
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 Receivables from the following figures:
Trade Receivable Turnover ratio 5 times
Cost of Revenue from Operations ₹ 8,00,000
Gross Profit ratio 20%
Closing Trade Receivables were ₹ 40,000 more than in the beginning
Cash sales being ¼ times of Credit sales
OR
From the following details calculate Interest Coverage Ratio:
Net profit after tax - ₹ 7,00,000
6% debentures of ₹ 20,00,000
Tax Rate 30%
32 (i). From the following information, calculate any two of the following
ratios: (a) Debt-Equity Ratio
(b) Working Capital Turnover Ratio and
(c) Return of Investment Information:
Equity share Capital ₹ 50,000, General Reserve ₹ 5,000; Profit and Loss
Account after tax and interest ₹ 15,000; 9% Debentures ₹ 20,000; creditors
₹ 15,000; Land and Building ₹ 65,000; Equipment ₹ 15,000; Debtors ₹
14,500 and Cash ₹ 5,500. Discount on issue of shares ₹ 5,000. Sales for the
year ended 31.3.2011 was ₹ 1,50,000. Tax rate 50%.

(ii). The quick ratio of a company is 1.5 : 1. State with reason which of the
following transactions would (i) increase; (ii) decrease or (iii) not change the
ratio :
(1) Paid rent ₹ 3,000 in advance.
(2) Trade receivables included a debtor Shri Ashok who paid his entire
amount due ₹ 9,700.

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