Accountancy (Class 12) Term 2 Question Paper 2023
PART-A (Accounting for Partnership Firms and Companies)
1. (a) Manas and Mili are partners in a firm sharing profits in the ratio of 3: 2. Anita is admitted as a new partner for 1/4″ share in future profits. Capitals of Manas and Mili were % 3,00,000 and % 1,50,000 respectively. Anita brought % 2,00,000 as her capital. The value of goodwill of the firm on Anita’s admission.
(A) ₹2,50,000
(B) ₹8,00,000
(C) ₹ 4,50,000
(D) ₹1,50,000
OR
1. (b) Mini and Mansi are partners sharing profits in the ratio of 4: 3. They admitted Nisha as a new partner for 3/7! share in profits which she acquired 2/7th from Mini and 1/7 from Mansi. The new profit sharing ratio of Mini, Mansi and Nisha will be :
(A) 4:3:3
(B) 5:3:2
(C) 2:3:5
(D) 2:2:3
2. Nita, Suman and Harish were partners in a firm sharing profits in the ratio of 3 :@): 1. Suman retired from the firm. On the date of Suman’s retirement, % 30,000 was due to her. The remaining partners decided to pay her in three yearly instalments starting from the end of the first year. % 30,000 will be transferred to which of the following account :
(A) Suman’s Loan Account
(B) Suman’s Executor’s Accounts
(C) Suman’s Bank Account
(D) Suman’s Current Account
3. Premier Auto Ltd. purchased assets of the value of f 3,60,000 from Anand Ltd. and made the payment of purchase consideration by issuing 11% Debentures of % 100 each at a discount of 10 %, The number of debentures issued by Premier Auto Ltd. were :
(A) 3,600
(B) 36,000
(C) 40,000
(D) 4,000
4. Aditya, Abhinav and Ankit were partners in a firm sharing profite in the ratio of 4: 3: 3. On 31% March, 2022, the firm was dissolved. Aditya was appointed to complete the dissolution process for which he was allowed a remuneration of ₹ 42,000. Aditya also agreed to bear dissolution expenses Actual expenses on dissolution amounted to ₹ 33,000 which were paid by Aditya. Aditya’s Capital Account will be credited by :
(A)₹ 42,000
(B)₹ 33,000
(C)₹ 9,000
(D)₹ 18,000
5. Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of 4: 3: 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be 3: 3: 2: 2. An extract of their Balance Sheet as at 31% March, 2022 is given below :
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Investments Fluctuation Reserve | 80,000 | Investments (Market Value % 80,000) | 90,000 |
Which of the following is the correct accounting treatment of ‘investment fluctuation reserve’ at the time of Subhash’s admission ?
JOURNAL
| Particulars | Debit Amt. (₹) | Credit Amt. (₹) | |
| (A) | Investment Fluctuation Reserve A/c Dr. To Revaluation A/c |
10,000 | 10,000 |
| (B) | Investment Fluctuation Reserve A/c Dr. To Indu’s Capital A/c To Vijay’s Capital A/c To Pawan’s Capital A/c |
80,000 | 32,000
24,000 24,000
|
| (C) | Revaluation A/c Dr. To Investment Fluctuation Reserve |
10,000 | 10,000 |
| (D) | Investment Fluctuation Reserve A/c Dr. To Investments A/c To Indu’s Capital A/c To Vijay’s Capital A/c To Pavran’s wan’s Capital A/c |
80,000 | 10,000
28,000 21,000 21,000 |
6. (a) Amit, Sumit and Kiara are partners sharaing profits and losses in the ration 2 :2:1, Sumit is entitles to a commision of 15% on the net profit after charging such comission. The net profit before charging comission if ₹9,20,000. The amount of comission payable to sumit will be :
(A) ₹1,20,000
(B) ₹ 1,358,000
(C) ₹ 48,000
(D) ₹55,200
OR
(b) P, Q and R are partners in a firm sharing profits and losses in the ratio of 2:2: 1. For the year ended 31% March, 2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were % 2,00,000; % 1,00,000; % 50,000 respectively. The necessary adjustment entry to rectify the error will be :
JOURNAL
| Particulars | Debit Amt. (₹) | Credit Amt. (₹) | |
| (A) | P’s Current A/c Dr. To Q’s Current A/c To R’s Current A/c |
2,000 | 1,000
1,000 |
| (B) | P’s Current A/c Dr. To Q’s Current A/c To R’s Current A/c |
3,000 | 2,000
1,000 |
| (C) | P’s Capital A/c Dr. To Q’s Capital A/c To R’s Capital A/c |
2,000 | 1,000
1,000 |
| (D) | P’s Capital A/c Dr. To Q’s Capital A/c To R’s Capital Ale |
3,000 | 2,000
1,000 |
7. (a) L, M and N are partners sharing profits in the ratio of 5: 3: 2. They decided to share profits equally with effect from 1″ April, 2022. On that date, there was a balance of % 2,00,000 in General Reserve and 4 credit balance of 2 4,00,000 in the Profit and Loss Account. The Journal Entry for the above on account of change in profit sharing ratio will be:
JOURNAL
| Particulars | Debit Amt. (₹) |
Credit Amt. (₹) |
|
| (A) | General Reserve A/c Dr. To Profit and Loss A/c |
2,00,000 | 2,00,000 |
| (B) | M’s Capital A/c Dr. N’s Capital A/c Dr. To L’s Capital A/c |
80,000
20,000 |
1,00,000 |
| (C) | General Reserve A/c Dr. Profit and Loss A/c Dr. To L’s Capital A/c To M’s Capital A/c To N’s Capital A/c |
2,00,000
4,00,000 |
2,00,000
2,00,000 2,00,000 |
| (D) | General Reserve A/c Dr. Profit and Loss A/c Dr. To L’s Capital A/c To M’s Capital A/c To N’s Capital A/c |
2,00,000
4,00,000 |
3,00,000
1,80,000 1,20,000 |
OR
(b) X, Y and Z are partners sharing profits and losses in the ratio of 2: ae 1. They decided to share future profits in the ratio of 3: 2: 1 with effect from 1* April, 2022. At the time of change of profit sharing ratio, unrecorded furniture will be recorded in the books of Accounts by :
(A) Debiting it to Partners’ Capital Account
(B) Debiting it to Revaluation Account
(C) Crediting it to Revaluation Account
(D) Crediting it to Partners’ Capital Account
8. (a) The debentures which are payable on the expiry of a specified period either in lump-sum or in instalments during the life time of the company are known as:
(A) Secured debentures
(B) Specific coupon rate debentures
(C) Redeemable debentures
(D) Convertible debentures
OR
(b) Which of the following statement is incorrect with respect to debentures?
(A) Debentures can be issued for cash.
(B) Debenture cannot be issued at discount.
(C) Debentures can be issued as collateral security,
(D) Debentures can be issued at premium.
Read the following hypothetical situation and answer Question Nos. 9 and 10
on the basis of the same.
Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3: 2. Their fixed capitals are % 1,80,000; % 1,60,000 and Z 2,00,000 respectively. For the year ending 31 March, 2022, Nitya withdrew 7 7,500 at the end of every quarter.
9. The partnership deed provided that interest on capital will be allowed @ 10% p.a. The amount of interest on Ishita’s capital will be :
(A) 718,000 .
(B) 716,000
(C) % 20,000
(D) % 10,000
10. The average number of months for which interest on drawings will be calculated, will be :
(A) 3% months
(B) 4% months
(C) 7% months
(D) 6 months
11. An Brat share of ₹ 10 fully called up on which % 6 has been paid was forfeited for the non-payment of the balance amount. At which of the following minimum price can it be reissued ?
(A) ₹4
(B) ₹10
(C) ₹16
(D) ₹6
12. 200 equity shares of € 10 each issued at par were forfeited for non-payment of first call of 2 3 per share. Final call of f 2 per share was not yet called. By which amount the share capital will be debited on forfeiture ?
(A) ₹ 2,000
(B) ₹1,600
(C) ₹ 1,000
(D) ₹ 2,200
13. Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5: 2: 3. On 30″ June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000.
profits for the last three years were :
| Year ended | Profits/Loss (₹) |
| 31st* March, 2020
31st March, 2021 |
1,20,000
(50,000) 1,70,000 |
Khushi’s share of profit till the date of her death was:
(A) ₹35,000
(B) ₹29,583
(C) ₹28,750
(D) ₹28,750
14. On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be transferred to which of the following account ?
(A) Revaluation Account
(B) Realisation Account
(C) Partners’ Capital Accounts
(D) Bank Account
15. Assertion (A): Partnership is the relation between persons who have
agreed to share the profits of the business carried on by all or any of
them acting for all.
Reason (R) : If a partner carries on any business of the same nature and
competing with that of the firm, he/she shall account for and pay to
the firm all profit made by him/her in that business.
Choose the correct option from the following :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(D) Both (A) and (R) are correct and (R) is not the correct explantation of (A).
16. (a) Aysha Ltd. forfeited 1,10,000 shares of % 10 each issued at 20% premium for the non-payment of first call of 2 2 per share and final call of @ 3 per share. Share Forfeited Account will be credited with :
(A) ₹5,50,000
(B) ₹7,70,000
(C) ₹2,20,000
(D) ₹5,00,000
OR
(b) Which of the following statements is true ?
(A) The shares of a public limited company are not freely transferable.
(B) Paid up capital is that part of the subscribed capital which has been called up.
(C) The company cannot raise more capital than the amount of capital as specified in the Memorandum of Association.
(D) The part of the uncalled capital which is called only in the event of winding up of the company is called Capital Reserve.
17. (a) Tarun, Abhishek, Kamal and Vivek were partners in a firm sharing profits in the ratio of 5: 3 : 2: 2. Kamal retired on 31* March, 2022. Tarun, Abhishek and Vivek decided to share future profits equally. On Kamal’s retirement goodwill of the firm was valued at % 9,00,000. Showing your working clearly, pass the necessary journal entry for treatment of goodwill on Kamal’s retirement. It was decided not to show goodwill in the books of the firm.
OR
(b) Atul and Geeta were partners sharing profits in the ratio 3: 2. Ira was admitted into the firm for 1/4!» share of profits. Ira brought 2 40,000 as her capital. The capitals of Atul and Geeta after all adjustments relating to goodwill, revaluation of assets and liabilities
etc. are % 60,000 and % 40,000 respectively. It is agreed that capitals should be according to the new profit sharing ratio. Calculate the amount of actual cash to be paid off or brought in by the old partners. Pass the necessary journal entry/entries for the Same.
18. (a) Asha, Disha and Raghav were partners in a firm sharing profits in the ratio of 2: 3 : 1, According to the partnership agreement, Raghav was guaranteed an amount of ₹ 40,000 as his share of profits. The net profit for the year ended 31s March, 2022 amounted to ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account of the firm for the year ended 31% March, 2029.
OR
(b) Akhil and Nikhil were partners sharing profits and losses in the ratio of 3: 2. Their fixed capitals were ₹ 1,00,000 and ₹ 80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary of ₹ 9,200, During the year 2021-22, the net profit prior to the calculation of interest on capital but after charging Nikhil’s salary amounted to. ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account of the firm for the year ending 31%* March, 2022.
19. Aayush and Aarushi are partners sharing profits and losses in the ratio of 8:2, They admitted Naveen into partnership for 1/4 share. Goodwill of the firm was to be valued at three years’ purchase of super profits. Average net profit of the firm was ¢ 20,000, Capital investment in the business was % 50,000 and Normal Rate of Return was 10%. Calculate the amount of Goodwill premium brought by Naveen.
20. Kuber Ltd. purchased assets worth ₹ 10,00,000 and took over liabilities of ₹1,00,000 of Amrit Ltd. for a purchase consideration of ₹ 8,00,000. Kuber Ltd. paid ₹ 2,60,000 through a cheque and the balance was settled by, issuing 12% debentures of ₹100 each at a discount of 10%. Pass necessary journal entries in the books of Kuber Ltd. for the above transactions.
21. Unnati Ltd. was registered with an authorised capital of ₹ 8,00,000 divided into equity shares of ₹10 each. The company issued a prospectus inviting applications for 60,000 equity shares. The company received applications for 58,000 equity shares. All calls were made and were duly received except the second and final call of ₹ 3 per share on 3,000 shares held by Manit. These shares were forfeited.
(a) Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
(b) Also prepare “Notes to Accounts” for the same.
22. A,B and C were Partners in 4 printer manufacturing firm. They were sharing profits and losses in the ratio of 2: 2: 1. On 31st March, 2022 their Balance Sheet was as follows :
Balance Sheet of A, B and C as on 31* March, 2022
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : A — 1,50,000 B — 2,00,000 C — 2,00,000 General Reserve Creditors Bills Payable |
5,50,000
2,50,000 30,000 20,000
8,50,000 |
Land and Building
Plant and Machinery Debtors Stock Cash in hand Cash at Bank
|
3,00,000
2,50,000 80,000 70,000 60,000 90,000
8,50,000 |
B died on 30th June, 2022. According to the partnership deed, his legal “ s representatives are entitled to :
(i) ₹ 24,000 for his share of Goodwill.
(ii) Interest on capital @ 12% p.a.
(iii) His shaeeiee profit till the date of death calculated on the basis of sales. The sales from 1* April, 2022 to 30% June, 2022 were ₹ 1,25,000. The sales and profits of the firm for the year ending 31st March, 2022 were & 10,00,000 and @ 2,50,000 respectively
Prepare B’s Capital Account to ne rendered to hus legal representatives.
23. (8) Kamal, Rahul and Neeraj Were partners in a firm sharing profits and Josses in the ratio of 5: 3: 2 On 3401 March, 2022, their Balance Sheet was as under :
Balance Sheet of Kamal, Rahul and Neeraj as on 31%* March,2022
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : Kamal 1,20,000 Rahul 1,20,000 Neeraj 1,20,000 General Reserve Sundry Creditors |
3,60,000
1,20,000 1,80,000
6,60,000 |
Land and Building
Plant and Machinery Stock Debtors Cash |
1,70,000
2,60,000 1,00,000 80,000 50,000
6,60,000 |
