PRACTICE QUESTION PAPER

ACCOUNTANCY [055]

Time: 3 Hrs.

Class: XII

M.M.: 80

PART A

(Accounting for Partnership Firms and Companies)

Q1.

A & B are partners sharing profits and losses in the ratio of 3 : 2. C is admitted for 1/4 share and for which ₹30,000 and ₹10,000 are credited as a premium for goodwill to A and B respectively. The new profit-sharing ratio of A : B : C will be:
a) 3 : 2 : 1
b) 12 : 8 : 5
c) 9 : 6 : 5
d) 33 : 27 : 20

Q2.

Assertion: Batman, a partner in a firm with four partners has advanced a loan of ₹50,000 to the firm for last six months of the financial year without any agreement. He claims an interest on loan of ₹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

Q3.

If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 of these shares were re-issued @ ₹11 per share as fully paid up, then what is the minimum amount that company must collect at the time of re-issue of the remaining 3,000 shares?
a) ₹21,000
b) ₹9,000
c) ₹16,000
d) ₹30,000

On 1st April 2022, Galaxy Ltd. had a balance of ₹8,00,000 in Securities Premium Account. During the year, the company issued 20,000 Equity Shares of ₹10 each as bonus shares and used the balance amount to write off Loss on Issue of Debentures on account of issue of 2,00,000, 9% Debentures of ₹100 each at a discount of 10% redeemable @ 5% premium. The amount to be charged to Statement of Profit & Loss would be:
a) ₹30,00,000
b) ₹22,00,000
c) ₹24,00,000
d) ₹20,00,000

Q4.

A, B and C who were sharing profits and losses in the ratio of 4 : 3 : 2 decided to share future profits and losses in the ratio 2 : 3 : 4 with effect from 1st April 2023. Workmen Compensation Reserve was ₹65,000. B’s share of loss amounted to ₹5,000. The claim for workmen compensation would be:
a) ₹15,000
b) ₹70,000
c) ₹50,000
d) ₹80,000

A, B and C are partners. A used ₹2,00,000 belonging to the firm without the information of other partners and earned ₹35,000. Which decision should be taken?
a) Return ₹2,00,000 only
b) Return ₹35,000 only
c) Pay ₹35,000 to B and C equally
d) Return ₹2,35,000

Q5.

Interest on Partner’s Loan is credited to:
a) Partner’s Fixed Capital Account
b) Partner’s Current Account
c) Partner’s Loan Account
d) Partner’s Drawings Account

Q6.

Alexa Ltd. purchased building from Siri Ltd. for ₹8,00,000 by issuing 6% debentures of ₹100 each at a discount of 20%. The 6% Debentures Account is credited with:
a) ₹10,40,000
b) ₹10,00,000
c) ₹9,60,000
d) ₹6,40,000

Which of the following is incorrect about debentures?
a) Interest is an appropriation of profits
b) Debenture holders are creditors
c) Debentures can be issued at discount
d) Interest is not paid on debentures issued as collateral security

Q7.

Assertion: Share capital shown as subscribed and fully paid will be zero if ₹2 per share is reserve capital.
Reason: Reserve capital is called only at the time of winding up.

a) Both correct and R explains A
b) Both correct but R does not explain A
c) A incorrect, R correct
d) A correct, R incorrect

Q8.

G, S and T were partners in the ratio 3 : 2 : 1. G retired and was paid ₹7,00,000 though his dues were ₹5,80,000. Determine goodwill of the firm.
a) ₹1,20,000
b) ₹80,000
c) ₹2,40,000
d) ₹3,60,000

Assertion: Partner’s commission is shown in P&L A/c
Reason: Commission is charge against profits

a) A correct, R wrong
b) Both correct but R not explanation
c) Both incorrect
d) Both correct and R explains A

Q9–10. (Based on given case)

Q9.

Amount in blank (1) will be:
a) ₹37,200
b) ₹44,700
c) ₹22,800
d) ₹20,940

Q10.

Amount in blank (2) will be:
a) ₹62,000
b) ₹74,500
c) ₹71,400
d) ₹70,775

Q11.

In absence of agreement, partners are entitled to:
a) Only i, iv and v
b) Only ii and iii
c) Only iii
d) Only i and iii

Q12.

Rancho Ltd. took over assets worth ₹20,00,000 from PK Ltd. Entry to be passed will be: (MCQ as given)

Q13.

Excellent Ltd. forfeited 1,000 shares. Reissued at ₹5. Amount debited to Share Forfeiture A/c:
a) ₹2,000
b) ₹5,000
c) ₹7,000
d) ₹10,000

Q14.

Z brings ₹10,000 for goodwill and 1/3 share. Capital to be brought by Z:
a) ₹24,000
b) ₹19,000
c) ₹12,667
d) ₹14,000

Q15.

Interest on drawings ₹9,000. Quarterly drawings were:
a) ₹24,000
b) ₹40,000
c) ₹30,000
d) ₹80,000

Interest on drawings of Shyam, Gopal and Arjun will be: (options as given)

Q16.

On dissolution of Roop Brothers, amount realised from assets is:
a) ₹1,64,000
b) ₹1,45,000
c) ₹1,57,000
d) ₹1,50,000

Q17.

Calculate gaining ratio and pass journal entry for goodwill on Babita’s retirement.

Q18.

Pass rectification entry for errors related to interest on capital and salary.

OR
Pass adjustment entry for interest on capitals omitted.

Q19.

Calculate purchase consideration and pass journal entries.

OR
Pass forfeiture and reissue entries.

Q20.

Calculate gain/sacrifice and pass journal entries on reconstitution.

Q21.

Show Share Capital in Balance Sheet and prepare Notes.

OR
Show Share Capital as per Schedule III.

Q22.

Pass journal entries for dissolution of firm.

Q23.

Journalise issue, forfeiture and reissue of shares.

OR
Prepare Cash Book and journal entries.

Q24.

Prepare Revaluation Account and Capital Accounts.

Q25.

Prepare Akbar’s Capital Account and journal entry.

Q26.

Pass journal entries and prepare Loss on Issue of Debentures Account.

PART B

(Analysis of Financial Statements)

Q27.

MCQ on limitation of financial statement analysis.

Q28.

MCQ on Debt–Equity Ratio.

Q29.

Assertion–Reason on Cash Flow Statement.

Q30.

Calculate Cash Flow from Financing Activities.

Q31.

Classify items in Balance Sheet as per Schedule III.

Q32.

Prepare Common Size Statement of Profit & Loss.

Q33.

Calculate annual sales using given ratios.

Q34.

Prepare Cash Flow Statement of Amusement Ltd.

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