CBSE Accountancy Class 12 NODIA Sample Paper 9 Page 1

Accountancy
Class XII Session 2023-24
Time: 3 Hours Max. Marks: 80/ I
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. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting.
Students must attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8.Questions from 23 to 26 and 34 carries 6 marks each
9.There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2
questions of three marks, 1 question of four marks and 2 questions of six marks.

Part A
(Accounting for Partnership Firms and Companies)
1. A partner drew ` 8,000 at the end of every month. Interest on drawings is 15% per annum. Calculate interest
on drawings for the year ending 31st March, 2019.
(a) ` 6,600 (b) ` 7,200
(c) ` 7,800 (d) ` 1,200

2. What will be the journal entry for issue of 2,000, 12% debentures of ` 100 each at a premium of 10%?

(a) To Debentures Application and Allotment A/c Dr. 2,20,000

To 12% Debentures A/c 2,00,000
To Security Premium Reserve A/c 20,000
(b) Bank A/c Dr. 2,20,000
To Debentures Application and Allotment A/c 2,20,000
(c) Debentures Application and Allotment A/c Dr. 2,20,000
To Bank A/c 2,20,000
(d) Both (a) and (b)

3. Vidhata Industries Limited invited applications for 8,000 shares of ` 10 each at the issue price of ` 10.
Applications were received for 7,600 shares. What will be the amount received on application?
(a) ` 72,000 (b) ` 84,000
(c) ` 80,000 (d) ` 76,000
4. If a fixed amount is withdrawn by a partner on the first day of every month, interest on the total amount
is charged for______months.
1
(a) 5 2 (b) 12
1
(c) 6 (d) 6 2

5. How many days notice period is given to a defaulter in forfeiture?

(a) 21 days (b) 28 days
(c) 7 days (d) 14 days
o
________interest is allowed by the company on the amount of calls-in-advance.
(a) 6% p.a. (b) 8% p.a.
(c) 12% p.a. (d) 15% p.a.
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6. Assertion (A): A private company restricts the right to transfer its shares.
Reason (R): A private company is allowed to make any invitation to the public to subscribe for any securities
of the company.
Alternatives
(a) Assertion (A) is false, but Reason (R) is true
(b) Assertion (A) is true, but Reason (R) is false
(c) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion
(A)

7. Tannu and Annu are partners in a firm. They share their profits in 2 : 3 ratio. The accountant of the firm,
finalised the profit and loss and capital account and presented the accounts to them. Tannu disagreed
with accounts because Tannu’s capital account showed negative balance. Tannu is in doubt, this cannot be
happen. Give your opinion.
(a) Tannu is correct (b) Accountant is defaulter
(c) Tannu is wrong (d) None of these
o
Sleeping partners________
(a) take active part in the conduct of the business but provide no capital. However, share profits and losses
in the agreed ratio
(b) do not take any part in the conduct of the business and contribute no capital. However, share profits
and losses in the agreed ratio
(c) take active part in the conduct of the business but provide no capital. However, salary is paid to them
(d) do not take any part in the conduct of the business but provide capital and share profits and losses in
the agreed ratio

8. Dalbir and Vivek are partners in a firm. They decided to dissolve the firm. Assets other than cash ` 1,60,000,
cash ` 25,000, total liabilities ` 1,75,000. On dissolution, assets realised ` 1,25,000 and liabilities paid `
1,40,000. Net profit or loss on realisation is
(a) loss ` 25,000 (b) loss ` 15,000
(c) profit ` 25,000 (d) No profit no loss
o
Naresh, Kamlesh and Rakesh were in partnership sharing profits and losses equally. Kamlesh retires. After
adjustments, his capital account shows a credit balance of ` 1,20,000 as on 1st April, 2012. The balance due
to Kamlesh is to be paid in three equal instalments together with interest @ 5% per annum. Amount to be
paid to Kamlesh on 30th March, 2013 will be
(a) ` 46,000 (b) ` 54,000
(c) ` 60,000 (d) ` 40,000

9. Ekta and Yukta were partners sharing profits and losses in the ratio of 3 : 2. On 31st December, 2019, the
extract of their Balance Sheet is as follows

Liabilities Amount (`) Assets Amount (`)

Land and Building 1,00,000
At the time of admission of new partner Latika, if the value of land and building is to be appreciated by 10%,
then what will be the amount of land and building which is to be shown in new balance sheet?
(a) ` 10,000 (b) ` 1,10,000
(c) ` 90,000 (d) ` 1,00,000

10. Company can utilise premium received on issue of debentures for which purpose?
(a) For writing-off preliminary expenses (b) Writing-off discount allowed on issue
(c) Both (a) and (b) (d) None of these
o
Which of the following is correct with regard to usage of balance of share forfeiture account?
(i) Provide for discount given at the time of reissue
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(ii) Write-off preliminary expenses

(iii) Write-off bad debts
(a) Only (iii) (b) (i) and (ii)
(c) (i) and (ii) (d) Only (i)

11. Arjun and Tarun are two partners sharing profits in the ratio of 2 : 1. Arun, a new partner is admitted for
1/4th share. At the time of admission, loss from revaluation is ` 4,500. Entry for distribution of loss is

Arjun’s Capital A/c Dr. X

Tarun’s Capital A/c Dr. Y
To Revaluation A/c Z
Here X, Y, Z are
(a) ` 3,500, ` 1,000, ` 4,500 respectively (b) ` 1,000, ` 3,500, ` 4,500 respectively
(c) ` 3,000, ` 1,500, ` 4,500 respectively (d) ` 1,500, ` 3,000, ` 4,500 respectively

12. For which purpose, sacrificing ratio is used in case of admission of a partner?
(a) To distribute revaluation profit (b) To distribute balance in profit and loss account
(c) To distribute reserves (d) To distribute goodwill
o
At the time of death of a partner, the adjustment of goodwill is done in which ratio?
(a) Gaining ratio (b) Sacrificing ratio
(c) Old profit sharing ratio (d) None of these

13. Goodwill of firm is ` 53,750. Find the number of years’ purchased if the average profits are ` 21,500.
(a) 2 (b) 2.5
(c) 1 (d) 1.5

14. Jack and Mack are partners with the profit sharing ratio of 1 : 2. They decided to change this ratio to 2
: 1 with effect from 1st April, 2021. In adjustment entry, Mack’s account will be______by______
assuming goodwill of firm is valued at ` 15,000.
(a) credited, ` 10,000 (b) debited , ` 10,000
(c) debited, ` 5,000 (d) credited, ` 5,000

DIRECTION

: Read the following hypothetical situation and answer Q. No. 15 and 16
Sahil and Naveen are partners in a firm engaged in the sale of readymade garment. This capital contribution
was ` 5,00,000 each with profit sharing ratio of 1 : 1. Kavya joined as a partner without capital for 1/3rd
share in the profits of the firm. She is blind by birth but having good management qualities.
They decided to sell products at a discount of 15% on maximum retail price to the people living below
poverty line. They also decided to open new retail shops in the naxal affected areas of the country. New jobs
of sales persons will be reserved for the girls belonging to scheduled castes and scheduled tribes.
The new partnership agreement provides for the following
(i) 10% of the trading profit will be donated to Prime Minister Relief Fund.
(ii) 10% of the trading profit will be donated to National Blind Relief Fund.
(iii) Sahil withdrew ` 2,500 per month at the beginning of every month and Naveen withdrew ` 2,500 per
month at the end of every month. Interest is charged on Sahil’s and Naveen’s drawings @ 10% p.a.
(iv) 10% of distributable profit will be transferred to Reserve Fund.
Trading profit for the year 31st March, 2021 was ` 5,00,000.

15. What will be the interest charged on Sahil’s and Naveen’s drawings ?
(a) ` 1,500, ` 2,050 (b) ` 1,375, ` 1,625
(c) ` 1,550, ` 1,500 (d) ` 1,625, ` 1,375

16. What will be the amount transferred to reserve fund ?

(a) ` 48,400 (b) ` 42,800
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(c) ` 90,000 (d) ` 48,700

17. Badri and Aadya are partners in a firm. Their capitals are: Badri ` 30,000 and Aadya ` 20,000. During the
year ended 31st March, 2020, the firm earned a profit of ` 15,000. Assuming that the normal rate of return
is 20%, calculate the value of goodwill of the firm of Badri and Kornal.
(i) By capitalisation method; and
(ii) By super profit method, if the goodwill is valued at 4 years’ purchase of super profit.

18. Nakul and Rahul decided to start a partnership firm. They contributed capitals of ` 2,00,000 and ` 1,00,000
on 1st April, 2017. Nakul expressed his willingness to admit Varun as a partner without capital, Rahul
agreed to this. On 1st October, 2017, Rahul granted a loan of ` 1,20,000 to the firm.
The terms of partnership were as follows
(i) Nakul, Rahul and Varun will share profits in the ratio of 2 : 2 : 1.
(ii) Interest on capital @ 6% per annum. Interest on drawings @ 5%.
(iii) Nakul to get a monthly salary of ` 6,000 and Rahul to get salary of ` 4,000 per quarter.
(iv) 10% of the profits before charging interest on drawings but after making appropriations are to be
transferred to general reserve.
Due to shortage of capital, Nakul contributed ` 50,000 on 30th September, 2017 and Rahul contributed `
20,000 on 1st January, 2018 as additional capital. The profit of the firm for the year ended 31st March, 2018
was ` 3,37,800. Drawings of Nakul and Rahul were ` 50,000 and ` 40,000 respectively.
Prepare profit and loss appropriation account for the year ending 31st March, 2018.

19. Saket, Balbir and Vanraj are partners sharing profit in the ratio of 6 : 4 : 2. They have decided to share
profits equally since 1st April, 2020 and following transactions should be recorded in the books
(i) Contingent liability worth ` 7,000 proved to be actual liability and was to be paid by the firm.
(ii) Bill of ` 2,000 discounted with the bank has been dishonoured by the drawee.
(iii) Contingent liability worth ` 25,000 was undertaken by Balbir for ` 15,000.
(iv) The firm lost a litigation case and was ordered to pay a penalty of ` 16,000 which was paid.
o
Vasant, Daljit and Anant were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Vasant died on 31st
March, 2020. The balance sheet of the firm on that date was as under
Balance Sheet
as at 31st March, 2020
Liabilities Amount (`) Assets Amount (`)
Creditors 80,000 Cash at Bank 48,000
General Reserve 45,000 Debtors 52,000
Workmen’s Compensation Fund 20,000 Furniture 2,40,000
Capital A/cs Plant 3,50,000
Vasant 2,00,000 Profit and Loss A/c 55,000
Daljit 3,00,000
Anant 1,00,000 6,00,000
7,45,000 7,45,000
On Vasant’s death, a claim of ` 12,000 was accepted for workmen’s compensation.
Pass necessary journal entries for general reserve, profit and loss account and workmen’s compensation fund,
in the books of the firm

20. Prince Industries Limited is authorised with a capital of ` 50,00,000 divided into 50,000 shares of ` 100
each. The company issued 30,000 shares to the public for subscription. The company received application
for 25,000 shares. In 1st year, ` 80 is called by the company.
Bhupesh and Sandesh are two shareholders holding 2,000 and 4,000 shares respectively. Both the shareholders
did not paid first call money of ` 20 per share. Sandesh’s shares forfeited by the company after first call and
later on 3,000 shares out of forfeited were re-issued at ` 60 per share as ` 80 called-up.
Show the following
(i) Share capital in the balance sheet of the company as per Schedule III, Part I of the Companies Act
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2013.
(ii) Also prepare notes to accounts for the same.
o
Amber Industries Limited issued 2,000, 10% debentures of ` 100 each, at a premium of ` 10 per debenture
payable as follows On application ` 50 ; on allotment ` 60. The debentures were fully subscribed and all
money was duly received. Record the journal entries.

21. Anupam Enterprises Limited decided to expand its business and for this purpose it opened a new unit in
the remote areas of Assam. To finance the project, it issued 1,50,000 shares of ` 10 each, payable as ` 3 on
application, ` 2 on allotment, ` 2 on first call and the balance ` 3 on second and final call. The shares were
fully subscribed and all the amount due was received. Pass necessary journal entries.

22. Viraj, Ranbir and Yuvraj were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared
in their books at a value of ` 60,000 and general reserve at ` 20,000. Ranbir decided to retire from the firm.
On the date of his retirement, goodwill of the firm was valued at ` 2,40,000. The new profit sharing ratio
decided among Viraj and Yuvraj was 2 : 3. Record necessary journal entries on Ranbir’s retirement.

23. Vikram and Akram are partners sharing profits and losses in the ratio of 1:1. Following is their balance sheet

Balance Sheet
as at ...
Liabilities Amount Assets Amount
(`) (`)
Creditors 1,00,000 Cash 50,000
General Reserve 60,000 Debtors 60,000
Workmen Compensation Fund 40,000 Building 2,00,000
Employees Provident Fund 50,000 Machine 1,00,000
Bills Payable 50,000 Stock 80,000
Capital A/cs Patents 20,000
Vikram 2,00,000 Investment 50,000
Akram 1,00,000 3,00,000 Goodwill 20,000
Profit and Loss 20,000
6,00,000 6,00,000
Additional Information
(i) Kabir comes for 1/6th share and brings capital of ` 1,00,000 and proportionate share in goodwill.
(ii) Goodwill of the firm is valued at ` 1,20,000.
(iii) Half the premium is withdrawn by old partners.
(iv) ` 20,000 unrecorded typewriter brought into books.
(v) Make ` 5,000 provision for unforseen liabilities.
(vi) Bills payable paid-off.
(vii) Building was found undervalued by ` 40,000.
Prepare revaluation account, partners’ capital accounts, cash account and balance sheet of the new firm.
o
Tarun, Varun and Arun are partners with 2 : 2 : 1 ratio.

Balance Sheet
as at 31st December, 2021
Liabilities Amount Assets Amount
(`) (`)
Creditors 60,000 Cash in Hand 30,000
General Reserve 20,000 Bank 20,000
Page 6

Workmen Compensation Fund 10,000 Debtors 50,000

Capital A/cs Building 1,00,000
Tarun 60,000 Investment 20,000
Varun 40,000 Deferred Revenue Expenses 10,000
Arun 40,000 1,40,000
2,30,000 2,30,000
Additional Information
(i) Arun takes retirement.
(ii) New profit sharing ratio between Tarun and Varun is 11 : 9 and goodwill of the firm is valued at `
40,000.
(iii) Investment is taken over by Arun at ` 15,000.
(iv) ` 6,000 worth unrecorded typewriter is taken by Tarun at ` 5,000.
(v) Building increase by 10%.
(vi) ` 10,000 paid to Arun in cash and the balance transferred to his loan account. Prepare necessary
accounts and balance sheet.

24. Green India Private Limited issued 10,00,000 shares of ` 10 each at a premium of ` 4 per share payable as
follows
` 4 on application ` 6 on allotment
` 4 on call
Applications were received for 14,00,000 shares and pro-rata allotment was made as follows
To the applicants of 10,00,000 shares, 8,00,000 shares were issued and for the rest, 2,00,000 shares were
issued. All money due were received except the allotment and call money from Tanuj who had applied for
15,000 shares (out of the group of 10,00,000 shares). All his shares were forfeited. 7,500 of the forfeited shares
were re-issued for ` 8 per share fully paid-up.
Pass necessary journal entries for the above transactions.
o
Blue Housing Corporation Limited invited applications for 8,00,000 equity shares of ` 10 each at a premium
of ` 40 per share. The amount was payable as follows
On application — ` 35 per share (including ` 30 premium)
On allotment — ` 8 per share (including ` 4 premium)
On first and final call — Balance
Applications for 7,70,000 shares were received. Shares were allotted to all the applicants.
Lalit to whom 70,000 shares were allotted failed to pay the allotment money. His shares were forfeited
immediately after allotment.
Afterwards, the first and final call was made. Amit, the holder of 5,000 shares failed to pay the first and final
call. His shares were also forfeited. Out of the forfeited shares 10,000 shares were reissued at ` 50 per share
fully paid-up. The re-issued shares included all the shares of Amit.
Pass necessary journal entries for the above transactions in the books of Blue Housing Corporation Limited.

25. Pass the necessary journal entries for the issue of debentures in the following cases
(i) 20,000, 12% debentures of ` 50 each issued at 10% premium, repayable at 20% premium.
(ii) 15,000, 10% debentures of ` 100 each issued at 10% premium, repayable at par.
(iii) 20,000, 12% debentures of ` 50 each issued at par, repayable at 10% premium.

26. Josaf, Lucas and Jaxon were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 28th February,
2019, their firm was dissolved. On this date, firm’s balance sheet is as follows

Balance Sheet
as at 28th February, 2019
Liabilities Amount (`) Assets Amount (`)
Creditors 1,60,000 Sundry Assets 2,60,000
Capital A/cs Jaxon’s Capital A/c 46,000
Josaf 1,50,000 Cash at Bank 14,000
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Lucas 10,000 1,60,000

3,20,000 3,20,000
Jaxon took over the assets at ` 1,30,000. Realisation expenses ` 10,000 were paid by Josaf. Creditors of `
1,60,000 were paid by Josaf at ` 1,50,000. You are required to prepare realisation account, partner’s capital
account and cash account.

Part B
(Financial Statement Analysis)
27. Superia Leasing and Finance Limited is a financial company which provides loan and invest into shares. At
the year end, company received ` 50,000 interest on loan. Where will be the amount of interest presented?
(a) Activity arising from interest will be shown in operating activity
(b) Activity arising from interest will be shown in investing activity
(c) Activity arising from interest will be shown in financing activity
(d) None of the above

28. If operating ratio of a company is 80%, which of the following will increase the operating ratio?
(i) Credit purchases of goods ` 5,000 (ii) Sales return ` 200
(iii) Payment to creditors ` 1,000 (iv) Selling expenses ` 800
(v) Cash sales ` 10,000 (vi) Purchase return ` 100
(a) (ii), (iii) and (vi) (b) (i), (ii), (iii), (iv) and (v)
(c) (i) and (ii) (d) (i), (ii) and (iv)
o
Which one of the following is not an item of securities premium reserve?
(a) Securities premium reserve (b) Share options outstanding account
(c) Revaluation reserve (d) None of these

29. A firm has inventory turnover of 3 and cost of revenue from operations is ` 1,35,000. If the inventory
turnover is increased to 5, it would result in________
(a) increase in cost of goods sold by ` 10,000
(b) decrease in inventory by ` 45,000
(c) increase in inventory by ` 27,000
(d) decrease in inventory by ` 18,000

30. Century Textiles Limited made an operating profit of ` 1,85,500 after charging depreciation of ` 31,200.
During that year, trade payables increased by ` 26,600 and inventory increased by ` 40,300. There was no
change to trade receivables. Assuming that no other factors affected it, what would be the cash generated
from operations?
(a) ` 2,25,800 (b) ` 2,43,300
(c) ` 2,03,000 (d) ` 2,30,400
o
Following is the extract from the balance sheet of Avantika Equipments Limited.

Particulars 31st March, 2020 (`) 31st March, 2019 (`)

Surplus i.e. Balance in Statement of Profit and Loss 9,00,000 6,00,000
Additional Information
Proposed dividend for the year 2019 ` 3,00,000 and 2020 ` 3,50,000
Calculate net profit before tax and extraordinary items.
(a) ` 2,50,000 (b) ` 3,50,000
(c) ` 6,50,000 (d) ` 6,00,000

31. (i) How the earning capacity of a business is assessed by financial statement analysis?
(ii) How does subjectivity become a limitation of financial statement analysis?
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32. Draw notes to accounts for change in inventories of Pravesh Infotech Private Limited for the year ended 31st
March, 2020 from the following information and determine the amount that will be shown in the statement
of profit and loss against change in inventories of finished goods, work-in-progress

Particulars Opening Inventory (`) Closing Inventory (`)

Finished Goods 5,00,000 4,00,000
Work-in-progress 9,00,000 10,00,000
Stock-in-trade 15,00,000 14,00,000

33. From the following information, calculate any two of the following ratios
(i) Debt to equity ratio (ii) Working capital turnover ratio (iii) Return on investment
Additional Information
Equity share capital ` 25,000, general reserve ` 2,500, balance of statement of profit and loss after interest
and tax ` 7,500, 9% debentures ` 10,000, creditors ` 7,500, land and building ` 32,500, equipments ` 7,500,
debtors ` 7,250, cash ` 2,750, revenue from operations, i.e. sales for the year ended 31st March, 2020 was `
50,000, tax rate is 50%.
o
Assuming that debt to equity ratio is 2 : 1. State giving reasons, whether this ratio will increase or decrease
or will have no change in each one of the following cases
(i) Sale of fixed asset (book value ` 40,000) at a loss of ` 5,000.
(ii) Issue of new shares for cash.
(iii) Redemption of debentures for cash.
(iv) Declaration of final dividend.

34. From the balance sheet and information given below, prepare cash flow statement

Balance Sheet
as at 31st March, 2020
Particulars 31st March 2020 31st March 2019
(`) (`)
I. EQUITY AND LIABILITIES
Creditors 35,200 32,000
Tanvir’s Loan –– 20,000
Loan from Bank 40,000 32,000
Capital 1,22,400 1,00,000
Total 1,97,600 1,84,000
II. ASSETS
Cash 5,600 8,000
Debtors 40,000 24,000
Stock 20,000 28,000
Land 40,000 32,000
Machinery 44,000 64,000
Building 48,000 28,000
Total 1,97,600 1,84,000
During the year, machine costing ` 8,000 (Accumulated Depreciation ` 2,400) was sold for ` 4,000. The
provisions for depreciation against machinery as on 31st March, 2019 and 31st March, 2020 were ` 20,000
and ` 32,000 respectively. Net profit for the year amounting to ` 36,000.


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