SAMPLE PAPER 4

ACCOUNTANCY Class XII

(With Solutions)
Tine Allowed: 3 hours Maximum Marks :80
Instructions : Same as given in Sample Paper1.
Part A
Accounting for Partnership Firms and Companies
Q. 1. 4, Band Cwere partners sharing profits in the ratio of their Capital contribution which
were 6,00,000; 4,00,000 and ?5,00,000 respectively. Their b0oks are closed on 3ist
March every year. A dies on 24th August, 2020. Under the partnership deed, deceased
partner is entitled to hisshare of profitloss to the date of death based on the average profits
of preceding three years. Profits were 2017 15,000; 2018 25,000 (Loss); 2019
1,00,000 and 2020 1,50,000. 4's share of profitloss will be:
(A) 8,00 (B) 12,000
(C) 30,000 (D) 9,600 1

Q.2. Aand Bare partners sharing profits in the ratio of 3:2. Cis admítted into partnership.
1 1
sacrificesrd of his share and Bsacrifices th from his share in favour of C. New profit
sharing ratio will be:
(A) 10:9:6 (B) 4:3:3
(C) 8:9: 13 (D) 3:3:4
Q.3. Arif, Ravi and Ben are partners in a firm sharing profits and losses in the ratio of 6:4:1.
Arif guaranteed a minimum profit of ? 16,000 to Ben. The trading profit of the firm for the
year ending 3Ist March, 2021, was ?1,32,000.
Arif'sshare in the profits of the firm will be:
(A) 72,000 (B) 68,000
(C) <69,600 (D) 16,000 1

OR
Simi, Manu, and Beena are partners in a tirm sharing profits and losses in the ratio of
2:2: 1. The balances of their fixed capital accounts on lst April, 2020, were: Simi
{1,00,000, ManuI,00,000 and Beena 80,000
Ater the accounts for the year ended 3Ist March, 2021, were prepared, it was discovered
that interest on capital (@ 10% per annum had been credited to the partners' current
accounts even though it was not provided in the partnership deed.
The error in Simi'scapital account /current account will be rectified by:
(A) Debiting hercapital account with 1,200
118

(B) Crediting her current account with ?1,200

(C) Debiting her curent account with 1,200
ISC Sample Paper 2022)
(D) Crediting her capital account with 1,200
Q.4. Atthe time of dissolution of a partnership firm, the book value of sundry assets transferred
to Realisation Account was ?5,00,000. 40% of these sundry assets were taken by partner
at 20% discount, 60% of remaining assets were sold at a profit of 20% on cost. 20% of
A
the balance was found obsolete and realised nothing. The remaining assets were taken over
by a creditor in full settlement of his claim.
Pass necessary joumal entry for the above. 1

Q.5. Aand Bare partners in afirm sharing profits in the ratio of 3:2. Mrs.A has given a loan of
720,000 to the firm and the firm also obtained a loan of 10,000 from B. The firm was
dissolved and its assets were realised for 25,000. State the order of payment of Mrs. A's
Loan and B's Loan with reason, if there were no creditors of the fim. 1

OR

Assertion (A):
Atthe time of change in profit sharing ratio reserves or accumulated profits are distributed
in old profit sharing ratio.
Reason(R):
Reserves and accumulated profits have comne into existence when they were sharing
profits in old proft sharing ratios. If they are not distributed in old ratio, the sacrificing
partners will be put to a isadvantageous position.
In the context of the above two statements. which of the following is correct?
Codes :
(A) Both (A)and R) are correct and (R) is the correct reason of (A).
(B) Both (A)and (R) are corTect but (R) isnot the correct reason of (A).
(C) On!y R) is corTect
(D) Both (A) znd (R} are wrong
Q. 6. Sandhya withdrew 20,000 per month in the beginning of each month and
interest on
drawings was calculated at 7,80 at the end of the year. Rate of interest on drawings was

(A) 9% p.a. (B) 8% p.a.

(C) 7% p.a. (D) 6% pa.
Q.7. 500 shares of 10 each issued at 40% premium were forfeited for non-payment o!
aliotment money of7 (inciuding prernium) and first & final call of 3 per share. Share
Forfeiture Account wili be credited with :
(A) 4,090 (B) 3,900
(C) 22,000 (D) 1,5090
OR
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119

Ronaldo Ltd. forfeited 300 equity shares of ?10 each, fully called up, on
share (including premium ofIper share) was received. It ater which ?5 per
discount.
reissued these shares at a
The maximum discount per share, which the company could have given on their
would be: reissue
(A) 6 per share (B) 5 per share
(C) 24 per share (D) 3 per share
(1SC Sample Paper 2022)
0.8. On Ist April 2021, Goswami Ltd. issued 8,000, 7% debentures of 100 each at 5%
discount, 10,000, 9% debentures of Z50 each at 5% premium and 5,00,000, 10%
debentures as collateral security. Interest payable on 30th September 2021 will be
(A) 1,51,000 (B) ? 75,509
(C) ? 50,500 (D) ?1,01,000

Read the following hypothetical situation and answer Q. No. 9 and 10 :

Easy Trip Ltd. was formed with an authorised capitai of Z60,00,000 divided into shares of
Z10each. It offered 4,00,000 shares for public subscription ata premium of 20 per share.
Applications were received for 3,80,000 shares and allotment was made to all applicants.
Amounts were payable as follows:
On Application 710(including premium 6)
On Allotment 7 8(including premium 25)
On First Call 7 6(including premium 4)
On Second and Final Call Balance
Arun, holding 5,000 shares did not pay allotment &first call and his shares were forfeited.
Nandi, holding 2,000 shares did not pay first call.
Company forfeited 5,000 shares of Arun. Out of these, 3,500 shares were reissued to
Krishna as T9 called up for 15 per share. Second and final call was not made by the
Company.
Q.9. Subscribed but not fully paid capital will be :
(A) 34,02,500 (B) 34,06,500
(C) 34,08,500 (D) 34,12,500 1

Q. 10. Amount of Share Capitalto be shown in the Balance Sheet of the Company willbe :
(A) R34,02,500 (B) 34,06,500
(C) 34,08,500 (D) 34,12,500 1

11. when Goodwill is not a purchased goodwill, Goodwill

(A) is not shown in the Balance Sheet.
(B) is shown in the Balance Sheet.
(C) may or may not be shown in the Balance Sheet.
(D) is partly shown inthe Balance Sheet. 1
 120

Q. 12. 4, Band Care sharing profits and losses equally.is Cretires and the goodwillis appearing
valued at 6,00,000. Calculate the net
in the books at 1,20,000. Goodwill of the firm
amount to be credited to C's Capital Alc.
(A) 2,00,000 (B) 2,40,000
(C) 1,60,000 (D) 40,000 1

Q. 13. Which of the following items are added to previous year profits for finding normal profits
for valuation of goodwill?
(A) Loss on sale of fixed asset (B) Loss due to fire, earthquake, etc.
(C) Undervaluation of closing stock (D) All of the above 1

OR
On dissolution of a firm, out of the proceeds received from the sale of assets will
be paid first of all.
(A) Partner's Capital (B) Partner's Loan to Firm
(C) Partner's additional capital (D) Outside Creditors
Q. 14. A Company purchased a Building for 8,00,000 out of which 2,00,000 were paid in
cash. Balance amount was paid by issue of equity shares of 10 each at 300% premium.
How many shares will be issued by the Company?
(A) 60.000 Shares (B) 80,000 Shares
(C) 20,000 Shares (D) 15,000 Shares 1

Q. 15. Interest on debentures issued as a collateral security is paid on :

(A) Nominal value of debentures (B) No interest is paid
(D) Paid up value of debentures 1
(C) Face value of debentures
Q. 16. Following amounts were payable on issue of shares of 10 each by a company : 3on
application, 3 on allotment and balance on first and final call. Kabir holding 500shares
paid only application and allotment money whereas Shahid holding 400 shares did not pay
first & final call. Anount of calls in arrear will be :
(A) 3.800 (B) 73,600
(C) 4,400 (D) 6,200 1

OR
The subscribed capitalof a company is Z60,00,000 and the nominal value of the share is
100each. There were no calls in arrear till the final call was made. The final call made
was paid on 57,500 shares only. The balance in the calls in arrear amounted to ?50,000.
Calculate the final call on share.
(A) 7 (B) 20
(C) 22 (D) 25
Q. 17. On lst April 2021, an existing firm had assets of 10,00,000 including cash of 320,000.
Itscreditors amounted to 50,000 on that date. The partner's capital accounts showed a
balance of 8,00,000 while the reserve fund amounted to 1,50,000. If the normal rate o
return is 15% and the goodwill of the firm is valued at 1,80,000 at 3 year's purchase 0!
super profit, find the average profits of the firm.
SAMPLEPAPER
121
Q18. X, Yaand Z were partners in afirm sharing profits in the ratio of 5:3:2. retired and the
new profit sharing ratio between Xand Z was 2 :3.On Y's retirement the
firm was valued at 6,00,000. Pass necessary journal entry for the goodwill of the
on Y's retirement without opening goodwillaccount. treatment of goodwil!
3
OR
Alex, John and Sam are partners in a firm. Their capital accounts on ist April, 2021, stood
at 1,00,000, 80,000 and 60,000 respectively.
Each partner withdrew ?5,000 during the financial year 2021-22.
As per the provisions of their partnership deed:
(a) John was entitled to a salary of 1,000 per month.
(b) Interest on capital was to be allowed @10% per annum.
(c) Interest on drawings was to be charged (@4% per annum.
(d) Profits and losses were to be shared in the ratio of their capitals.
The net profit of 75,000 for the year ended 31st March 2022, was divided equally
amongst the partners without providing for the terms of the deed.
You are required to pass a Single Adjustment Entry to rectify the error. (Show the working
clearly)
Q. 19. Sh. Ganesh Ltd. issued on Ist April, 2021, 10,000, 8% Debentures of 100 each at 6%
discount redeemable after five years at a premium of 10. All the debentures were
subscribed. During the year ended 31st March, 2022, the company incurred a loss of
50,000. It has balance of 1,20,000 in Securities Premium.
Pass the Journal entries for issue of debentures and writing off Loss on Issue of
Debentures. 3

OR
Art Limited took over assets of ?15,60,000 and creditors of *1,60,000 from Paint Limited.
Art Limited issued 8% debentures of 20 each at a premium of 40% as purchase
consideration, to Paint Limited.
Calculate the amount of purchase consideration, number of debentures issued by Ar
Limited and pass the necessary journal entries in the books of Art Limited from the above
mentioned informations.
Y0. Complete the missing figures in the following Accounts and Balance Sheet :
Dr. REVALUATION ACCOUNT Cr.

Patieula's Paticalars
To Stock A/c 20,000 By Land &Building Ae 90,000
To Provision for Doubtful Debts A/c 2,000 By Prepaid Insurance Ae
To Provision for Outstanding
Repairs Ae
To Profit Transferred to :
 A's Capital Ac (3/6) 30,000
B's Capital A/c (2/6) 20,000
Cs Capital Alc
97,000
Dr. PARTNERS CAPITAL ACCOUNTS Cr.
Particndars B

To Advertise By Balance b/d 2,84,000

ment Suspense By Gen. Res. 24,000
Ac S,000 By Revaluation
To B's Capital Alc
Ac By A's Capital
(GoodwitI) Alc 40,000
To Bank Ac 1,80,000 By C's Capital
ToB's Loan Ac Alc 10,000
To Baiance cd
215.000

BALANCE SHEET as a: lst tpril. 2022

Assets
Sundry Creditors Cash at Bank 53,000
Provision for Outstanding Repairs Debtors 2,00,000
B's Loan Less : Provision 10,000
As Capital 3,99,000 Stock 2,50,000
Cs Capital Prepaid nsurance
Plant &Machinery 1.20,000
Land &Building (Balancing figure)
9.00.000

3
Q.21. Naresh, Dhruv and Azcem are partners sharing profits in the ratio of 5:3:7.
Naresth retires from the fim. Dhruv and Azeem decided to share profits in the ratio of 2:3.
The adjusted capitai accounts of Dhruv and Azeem at the time of Naresh's retirement
showed the balances of 33,000 and 70,500 respectively.
The total amount to be paid to Naresh is Z90,500 which is paid in cash immediately by the
firm, the cash being conributed by Dhruv and AZeem in such a way that their capitals
become proportionate to their new profit-sharing ratio and the firm maintains a minimum
cash balance of 5,000 from its existing balance of 20,000.
Youare required to pass journal entries to record:
Payment made to the retiring partner
Cash brought in by the remaining partners to pay off the retiring partner
(1SC Sample Puper 2022)
 123
2 (A) Differentiate between "Issued Share
Capital' and 'Subscribed Share Capital'.
(B) Green Valley Ltd. offered 5,00,000 shares to public
were received for 7,50,000 shares and pro rata
for subscription. Applications
allotment was made to the applicants
of 6,00,000 shares. Arushi applied for 4,800 shares and
shares. Navya was allotted 3,000
From the above information, calculate :
() How many applications have been rejected
(ii) What is the pro rata ratio? altogether?
(ii) How many shares were allotted to Arushi?
(iv) How many shares were applied by Navya? (2 + 2)
0. 23. Reliable Ltd. was registered with an authorized capital of
20,00,000 in 10per equity
share. It invited applications for issuing 1,00,000 equity shares at a premium of 2
share. The amount was payable as follows : per
On application 4 per share (including premium)
On allotment 3 per share
Balance on Ist and Final Call.
Applications were received for 1,30,000 shares. Applications for 10,000 shares were
rejected and the application money received on them was refunded. Pro-rata allotment was
made to the remaining applications. Amount overpaid on these applications was adjusted
towards the amount due on allotment. Sameer, who has applied for 1,200 shares, failed to
pay the allotment and call money. The company forfeited his shares, out of which 800
shares were reissued to Sanjay at 9 per share fully paid up.
You are required to:
(i) Pass the Journal Entries in the books of the company through Calls in Arrears
Account.
(ii) Prepare the Share Allotment Account. 6
OR

XLid. invited applications for issuing 1,50,000 shares of ?10 each payable as ?2 per share
On application, 3 per share on allotment and the balance on First and Final Call.
Applications for 2,80,000 shares were received on which the directors allotted the shares
as follows:
Applications for 70,000 shares Full
Applications for 2,00,000 shares 80,000
Applications for 10,000 shares Nil.

?1,92,000 was realised on account of allotment money (excluding the amount carried
from Application Money) and 26,95,000 on aceount of call. The directors decided to
forfeit shares of only those applicants to whom full allotment was made and on which
allotment money was overdue. The forfeited shares were reissued to Manu for 8per
share as fully paid.
Pass Journal entries in the company's books.
Q.24 ets ni Tre: re Sn in trng ofits and iosses in the ratio of 3:2. Their

Axcos Plant & Machinery 120,000

Land and Building 1,40,000
L00RA00 Debtars 1,90,000
20000 Les: Provision for
Genersl Rserve
Wmes Competssatin Fund 50.000 Doubtful debts (40,000)150,000
150,000Stock 60,000
Cash 30,000
500.0009 5,00.000
Thes 2gei a r i n O paership for 1 Sth share of profits on lst April, 2022,

a) Al ietors to be considered as good and therefore the provision for doubtful debts to
be Tzen back
b) Vaue of land and building to be increased to 1,80.000.
fe) Vziue of plar: dmachinery to be reduced by 720,000.
d) The iabiüity agains Workmen's Compensation Fund is determined at 20,000 which
is o be pidlater in the year.
íe) Practi to bringin her share of Goodwill of ? 1,00,000 in cash.
f She wili frhe bring in cash so as to make her capital equal to 20% of the total
capitai of the new fim :(Show your workings cleariy).
You are required to prepare :
(i) Revziuation Account
6
(i) Parers Capital Accounts.
OR

4 BndC were parners sharing profits in the ratio of 5:3:2. On 31st March, 2022 their
Balasce Shee was 2s follows:

25,906 Land and Buidings 3,50,000

Woknen's Conpenstion Resere
Susáry Credisars 45009Stock 3,00,000
A'sLoa 30,906 Sundry Debtos 2,00,000
A's Wife Lren 20.906 Less : Provision for
Doubtfu! ebts 10,000 1,90,000
Capital Aconts
Goodwil! 30,000
4,90,009
3.00,00% 20,000
Defered Revenue Expenditure
30,000
i99,590 8.09, 0 Bank
9.20,000
9,20,4
 SLMPLEPAPER -
125
The firm was dissolved on the above date on the
following terms :
(i) Land and Buildings were sold for T5,00.000 and Sundry
20% less than book value. Debtors were realised at
(ii) Aagreed to discharge his wife's loan and took over 75% of the stock at 20%
the remaining stock was sold at 90%. less and
(iii) There was an unrecorded computer of 25,000 which was taken over by
B at
10,000.
(i) Partner B paid to a creditor 5,000.
(1) Cis to be allowed a remuneration of 20,000 for carrying out
dissolution work.
Realisation expenses amounting ?5,000 were paid by the firm.
Prepare Realisation Ac.
0. 25. The Balance Sheet of Ravi and Kamal as at 31st March, 2022, was as follows:
Balance Sheet of Ravi and Kamal as at 3Ist March. 2022
Liahiltes
Creditors 5,000 Cash 1400
Investrment Fhuctuation Fund S00|Debtors 4,700
Capital Accounts: Stock 2.300
Ravi 3,500 Fumiture 50
Kamal 2,750 Property 2,000
Investment L100
11.550 1550

The partners shared profits in the ratio of 9:7.

The partnership firm was dissolved on the date of the Balance Sheet subject to the
following adjustments:
() Property realized 75%.
(ii) Bad debts and discount amounted to 500.
(iii) Stock realized 2,525.
(v) Creditors allowed a discount of 2o.
(v) Expenses of dissolution amounted to ?75 which were paid by Ravi.
You are required to prepare the Realisation Account. 6
ISC Sample Paper 2023)
2. Z6. Give journal entries for the issue of debentures in the following conditions.
1. Issued 12,000,8% debentures of ? 100 each at par, redeemable also at par.
I. Issued 12,000,8% debentures of 100 each at a discount of 2%, redeemable at par.
III. Issued 12,000, 89% debentures of 100 each at a premium of 5%, redeemable at par.
IV. Issued 12,000, 8% debentures of?100 each at par but redeemable at 5% premium.
Ignore writing off Loss on Issue of Debentures. 6
 Part B
Analysis of Financial Statements
Q. 27. Which of the following is not an item under Current Assets'?
(A) Cash and Cash Equivalents (B) Computer Software
(C) Short-term Loans and Advances (D) Inventories
(CB.S.E. 2020, Lucknow)
Q. 28. XLtd. made a profit of T6,00,000 before considering depreciation on machinery 50,000
and loss on sale of computer 10,000. State the amount to be shown as Cash Flows rom
Operating Activities. 1

OR
A Company's Liquid Assets are 4,00,000, Inventory is 2,10,000, Prepaid Expenses are
730,000, Patents are 15,000 and Working Capital is 4,80,000. Its Current Ratio willbe:
(A) 2.5:1 (B) 3:1
(C) 4: 1 (D) 1.33:1

Q. 29. Compute Cash Flow from investing activities from the information given below:
Paicilarg 1-1-2021 31-12-2021
Machínery Alc 6,00,000 8,00,000
Accumulated Depreciation Ac 2,00,000 2,50,000

During 2021, machine costing 1,50,000 with accumulated depreciation 60,000 was
sold at a profit of 10,000. 1

OR

Revenue from Operations 79.60,000: Current Liabilities 20,000; Working Capital

Turnover Ratio 8 times. Current Assets will be:
(A) 1,40,000 (B) 120,000
(C) 1,00.000 (D) 1,60,000
Q.30. A company had Current Assets of 2,00,000 and Current Liabilities of ?1,00,000. What
will be the company's Current Ratio after it collects 20,000 cash from its debtors oI
25,000, the remaining debtors being bad?
(A) 2.2:1 (B) 2.05:1
(C) 1.75:1 (D) 1.95:1 1
Q.31. Under which Line Item (major heads)of the Staternent of Profit and Loss of a Company
following items will be shown:
() Sale of Goods (ii) Profit on Sale of Vehicle
(ii) Salaries (iv) Revenue from Services Rendered
(v) Interest paid on Term 1.oan (vi) Interest Earned 3

Q. 32. Assuming that Proprietary Ratio of Meta Ltd. is 0.9: 1, state ns, whether the
giving
ratio willincrease, decrease or will not change in each one of the reasons,
following cases :
 () Issue of equity shares against purchase of machinery.
(ii) Issue of debentures against purchase of machinery.
(iii) Redemption of debentures for cash. 3

OR
Current Ratio of Insta Ltd. is 4: 1. State with reason, which of the following
transactions
would () increase, (üi) decrease or (if) not change the ratio :
() Trade receivables include debtors of ?1,40,000 which were
received.
(ii) Company purchased furniture of 85,000. The Vendor was paid by issue of equity
shares of 10 each at par.
(iii) Redemption of Debentures maturing during the current year.

0. 33. Following is the Comparative Statement of Profit and Loss of X Ltd. for two consecutive
years:
COMPARATIVE STATEMENT OF PROFIT & LOSS
for the years ended 31st March, 2019 and 2020
Percentage
Note Change Chage
Particulirs NO208-19 20I9-20iacrtase
Decreaiet Dereaser

B C CAX 00

I. Revenue from Operations 25,00,000 30,00,000

II. Less :Expenses :
Cost of Materials Consumed
Other Expenses 8,00,000 750,000
Total Expenses
II. Profit before Tax
IV. Less:Tax 40%
Profit after Tax ,20,000 150,000

rOu are required to Fill in the missing tigures in the Comparative Statement of Profit &
Loss. 3
OR
 Fill inthe Blanks:
COMMON-SIZE STATEMENT OF PROFT AND LOSS
Parienlars Note Absohute Anmouts Percentage of Revene
No. from Operatios
2017-18 2018-192017-18 2018-19
L Revenue fhom Operations 10,00,000 14,00,000 100 100
I. Less: Expenses:
Cost of Materials Consumed 8,40,000 65
Finance Costs 10
Other Expenses 60,000 5
Total Expenses
Profit before Tax (I - 1)
0. 34. The following is the Statement of Profit and LOSs of Yamuna Limited for the year cnded
March 31, 2022 :
Particulars Amount

Revenue from Operations (Sales) 10,00,000

Less : Purchases 5,00,000
Changes in Inventories (Opening Inventory -Closing Inventory)
(2,50,000-2,00,000) 50,000
Operating Expenses 3,00,000 8,50,000
Net Profit 1.50,000

Additional Information:
() Trade receivables decrease by 30,000 during the year.
(i) Prepaidexpenses increase by 5,000during the year.
(üii) Trade payables decrease by 15,000 during the year.
(iv) Outstanding expenses increased by 3,000 during the year.
(v) Operating expenses included depreciation of ?25,000.
Compute net cash providedby operations for the year ended March 31,2022.