KENDRIYA VIDYALAYA GOMOH

RANCHI REGION

Model Question Paper XII

Subject – Accountancy (055 )

Full Marks : 80 Time – 3 Hours

General Instructions :

1. This question paper comprises two parts – A and B. There are 32 questions in the question paper.
All questions are compulsory.
2. Question nos. 1 to 13 and 23 to 29 are very short answer type questions carrying 1 mark each.
3. Question nos. 14 and 30 are short answer type – I questions carrying 3 marks each
4. Question nos. 15 to 18 and 31 are short answer type – II questions carrying 4 marks each.
5. Question nos. 19, 20 and 32 are long answer type – I questions carrying 6 marks each.
6. Question nos. 21 and 22 are long answer type – II questions carrying 8 marks each.
7. There is no overall choice. However, an internal choice has been provided in 2 questions of 3
marks, 2 questions of 4 marks and 2 questions of 8 marks.
PART – A
(Accounting for Not for profit organization, Partnership and Company)

1. Anil and Vijay are partners in a firm. Anil is entitled to get a commission of 25% of net profit after
charging such commission. Net profit before charging such commission is Rs 60,000. Calculate
Anil’s commission. 1
a) Rs 12,500
b) Rs 15,000
c) Rs 12,000
d) Rs 20,000
2. A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted. C gets 3/20th share
from A and 1/20th share from B. Calculate their sacrificing ratio.
a) 3:2
b) 3:1 1
C ) 1 :1
d) 2 :1
3. Promotion expenses are also called 1
a) Preliminary expenses
b) Revenue expenses
c) Capital expenses
d) None of these
4. The opening balance of Tournament fund was Rs 16,400. During the year, donations received
towards this fund amounted to Rs 7,700 , amount spent on matches was Rs 6,150 and interest
 received on tournament fund investment was Rs 2,000.The closing balance of Tournament fund
will be : 1
a) Rs 28,250
b) Rs 32,500
c) Rs 19,950
d) Rs 15,950
5. Realization expenses of Rs 15,000 were paid by firm on behalf of Vikash, a partner. Which of
the following journal entry will be passed? 1
a) Realization A/c Dr. 15,000
To Cash / Bank A/c 15,000
b) Realization A/c Dr. 15,000
To Vikash’s Capital A/c 15,000
c) Vikash Capital A/c Dr. 15,000
To Cash /Bank A/c 15,000
d) None of these
6. Mohan holding 900 shares of Rs 10 each failed to pay allotment money of Rs 2 per share and
call money of Rs 4 per share. His shares were forfeited and out of these 600 shares were
reissued at Rs 7 per share fully paid up. The amount of capital reserve will be: 1

a) Rs 1200 b) Rs 600
C ) Rs 900 d) Rs 800
7. Investments of Rs 2,00,000 were not shown in the books. At the time of dissolution, one of the
creditors took these investments in full settlement of his debt of Rs 2,20,000. How much
amount to be payable to that creditor? 1
a) Rs 20,000 b) Rs 2,20,000
C )Rs 4,20,000 d) Nil
8. The value of building in the balance sheet is given at Rs 90,000. If the value of building is
undervalued by 10% , then at what value the building be shown in new balance sheet ? 1
a) 90,000 b) 1,00,000

C ) 9,000 d) 99,000

9. Credit balance of profit and loss a/c appearing in the balance sheet on the death of a partner is
credited to : 1
a) Deceased partner’s capital account.
b) All partner’s capital account (including deceased partner’s capital account )
c) Remaining partner’s capital account
d) None of these
10. On dissolution, a partner’s loan to the firm is 1
a) Transferred to Realization a/c
b) Transferred to partner’s capital a/c
c) Not transferred to Realization a/c
d) Transferred to profit and loss a/c
11. A, B and C share profits in the ratio of 1/ 2 ,3/10 and 1/5. C dies. The gaining ratio of A and B
will be : 1
a) 1:1
b) 1:3
c) 5:3
d) 3:1
12. P,Q and R are partners sharing in the ratio of 5:3:2. R is guaranteed a minimum profit of Rs
5,000 for the year by the firm. Profit earned by the firm for the year is Rs 20,000. The
deficiency will be borne by P and Q in the ratio of 1
a) 1:1
b) 5:3
c) 2:1
d) None of these
13. Interest on partners drawings is to be given at 10% p.a., if the partnership deed is silent about
the rate of interest . ( True / False ) 1
14. How will the following information of Sunrise sports club be presented in the Income and
Expenditure Account for the year ended 31st March, 2019 and its balance sheet as at that date ?3
Particulars Amount Rs
Tournament fund as on 1st April, 2018 5,00,000
Tournament fund Investment 5,00,000
Tournament expenses during the year 8,00,000
Donations for Tournament fund received during the year 1,20,000
Sale of Tournament tickets during the year 1,50,000

OR

Calculate the amount that will be posted to the Income and Expenditure account for the year
ended 31st March, 2019 :
Stock of stationery on 1st April, 2018 30,000
st
Creditors for stationery on 1 April, 2018 20,000
st
Advance paid for stationery on 31 March, 2018 2,000
Amount paid for stationery during the year 1,08,000
st
Stock of stationery on 31 March,2019 5,000
st
Creditors for stationery as on 31 March, 2019 13,000
st
Advance paid for stationery on 31 March, 2019 3,000
15. Mudit and Uday are partners in a firm sharing profits in the ratio of 2:3. Their capital accounts
as on 1st April, 2015 showed balances of Rs 70,000 and Rs 60,000 respectively. The drawings
of Mudit and Uday during the year 2015-16 were Rs 16,000 and Rs 12,000 respectively. Both
the amounts are withdrawn on 1st January, 2016. It was subsequently found that the following
items had been omitted while preparing the final accounts for the year ended 31st March, 2016.
(a) Interest on capital @ 6% p.a.
(b) Interest on drawing @ 6% p.a.
(c) Mudit was entitled to a commission of Rs 4,000 for the whole year.
Showing clearly your workings, pass a rectifying entry in the books of the firm 4
OR
 A and B are partners sharing profits and losses in the ratio of 2:1 with capitals of Rs
10,00,000,and Rs 5,00,000 respectively on 1st April, 2016. Each partner is entitled to 8%
p.a. interest on his capital. B is entitled to a salary of Rs 3,500 p.m. together with a
commission of 10% of Net Profit remaining after deducting interest on capitals and salary
and after charging his commission. The profits for the year ended 31st March, 2017 prior to
calculation of interest on capital but after charging salary of B amounted Rs 4,50,000.
Show the division of profits.
16. On 1st April 2012, Kabita Ltd was formed with an Authorised capital of Rs 10,00,000 divided
into 1,00,000 Equity shares of Rs 10 each. The company issued prospectus inviting applications
for 90,000 Equity shares. The company received applications for 85,000 equity shares. During
the first year, Rs 8 per share were called. Babita holding 1,000 shares and Sabita holding 2,000
shares did not pay the first call of Rs 2 per share. Sabita’sshare were forfeited after the first call
and later on 1,500 of the forfeited shares were reissued at Rs 6 per share, Rs 8 called up.
Show the following
(a) 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. 4
17. P,Q and R were partners in a firm sharing profits and losses in the ratio of 2:2:1. The firm was
dissolved on 31st March, 2019. After the transfer of assets (other than cash) and external
liabilities to the realization account, the following transactions took place : 4
(a) The partner R was paid remuneration of 10,000 to carry out dissolution of the firm and
he was agreed to bear all realisation expenses, but actual espenses were 12,000 paid by
the firm.
(b) Creditors to whom Rs 1,21,000 were due to be paid, accepted stock at Rs 71,000 and the
balance was paid to them by a cheque.
(c) Q had given a loan to the firm of Rs 18,000. He was paid Rs 17,000 in full settlement of his
loan.
(d) Investments were Rs 53,000 , out of which investments worth Rs 43,000were taken over
by P at Rs 52,000 and the balance of investments were sold for Rs 12,000
Pass necessary Journal entries for the above transactions in the books of the firm.
18. A, B and C are partners sharing profits and losses in the ratio of 3:2:1. It is laid down in their
partnership deed that in case a partner retires, the amount of goodwill is to be taken at two years
purchase of the average profits of the last three years. B retires and the profits of the last three
years amounted to Rs 10,600, Rs 8,200 and Rs 11,800. Ascertain B’s share of goodwill and
pass the journal entry , while it is agreed between A and C that they continue to share as before
and that no goodwill account is to be raised. 4
19. From the following Receipt and Payment Account and additional information given below,
prepare Income and Expenditure Account and Balance sheet of Rural Literacy Society as on
31st March, 2019. 6m
Receipts Rs Payments Rs
To balance b/d By General expenses 32,000
Cash in hand 40,000 By Newspapers 18,500
Cash at bank 1,55,500 By electricity 30,000
To Subscriptions By Fixed deposit with bank 1,80,000
2017—18 12,000 (On 30.9.2018 @10% p.a.)
 2918—19 2,65,000 By Books 70,000
2019---20 5,000 2,82,000 By Salary 36,000
To Legacy 12,500 By Rent By 65,000
To Govt. Grant 1,20,000 Postage 3,000
To Sale of old furniture 37,000 By Furniture 1,05,000
( book value Rs 50,000 ) By Balance c/d
To interest on fixed deposit 4,500 Cash in hand 30,000
Cash at bank 82,000

TOTAL 6,51,500 6,51,500

Additional information :

(i) Subscription outstanding as on 31st March, 2018 Rs 20,000 and on 31st March, 2019 Rs
15,000.
(ii) On 31st March, 2019, salary outstanding Rs 6,000 and one month rent paid in advance.
(iii) On 1st April 2018, Society owned furniture Rs 1,20,000 and Books Rs 50,000.

20. (a) Rocky Ltd purchased building for Rs 22,00,000. Half the payment was made by cheque and the
balance half by issue of 9% Debentures of Rs 100 each at a premium of 10% . Pass necessary journal
entries.

(b ) Sony Ltd obtained a loan of Rs 5,00,000 from State Bank of India @ 10% p.a. interest. The
company issued Rs 7,50,000 , 10% Debentures of Rs 100 each in favour of State Bank of India as
collateral security. Pass necessary journal entries for the above transaction , when company decided to
record the issue of 10% Debentures as collateral security . (3+3 ) = 6

21.. Petromax Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as Rs 3 on
application, Rs 5 including premium on allotment and the balance in equal installments over two calls.
Applications were received 92,000 shares and the allotment was done as under :

(A) Applicants of 40,000 shares were ------------- allotted 30,000 shares

(B) Applicants of 40,000 shares were ------------------ allotted 20,000 shares

( C) Applicants of 12,000 shares -------------------------- Nil

Suresh , who had applied for 2,000 shares ( belongs to category A ) did not pay any money other than
application money .

Chander, who was allotted 800 shares (category B ) paid the call money due along with allotment. All
other allotees paid their dues as per schedule.

Pass necessary journal entries in the books of Petromax Ltd to record the above . 8

OR
Dinesh Ltd. invited applications for issuing 10,000 Equity shares of Rs 10 each . The amount was payable
as follows :

On application --- Rs 1

On allotment ----- Rs 2

On first call------ Rs 3

On second and final call ---- Balance

The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money
and his shares were forfeited immediately after allotment. Shyam to whom 150 shares were allotted, failed
to pay the first call. His shares were also forfeited after the first call. Afterwards the second and final call
was made. Mohan to whom 50 shares were allotted, failed to pay the second and final call. His shares
were also forfeited. All the forfeited shares were reissued at Rs 9 per share fully paid up. Pass necessary
journal entries in the books of Dinesh Ltd.

22 .Madhuri and Arsh were partners in a firm sharing profits and losses in the ratio of 3:1. Their balance
sheet as at 31st March, 2019 was as follows: 8

Balance sheet of Madhuri and Arsh as at 31st March, 2019

LIABILITIES Rs ASSETS Rs
Capitals : Plant & Machinery 4,70,000
Madhuri 3,00,000 Investments 1,10,000
Arsh 2,00,000 5,00,000 Debtors 1,20,000
Workmen’s compensation Less : provision for
fund 60,000 Doubtful debts 10,000 1,10,000
Creditors 1,90,000 Stock 1,40,000
Employees provident fund 1,10,000 Cash 30,000

8,60,000 8,60,000
st th
On 1 April, 2019, they admitted Jyoti into partnership for 1/4 share in the profits of the firm. Jyoti
brought Rs 1,86,000 as capital and Rs 40,000 as her share of goodwill premium.

The following terms were agreed upon :

i) Provision for doubtful debts was to be maintained at 10% on debtors

ii) Stock was undervalued by Rs 10,000.
iii) An old customer whose account was written off as bad , paid Rs 15,000.
iv) 20% of investments were taken over by Arsh at book value
v) Claim on account of workmen’s compensation amounted to Rs 70,000
vi) Creditors included a sum of Rs 27,000 was not likely to be claimed
Pass Journal Entries..
 OR

Anita, Gourav and Sonu were partners in a firm sharing profits and losses in proportion to their capitals.
Their Balance sheet as at 31st March, 2019 was as follows :

Liabilities Rs Assets Rs
Capitals ; Land and Building 5,00,000
Anita 2,00,000 Investments 1,20,000
Gourav 2,00,000 Debtors 1,50,000
Sonu 1,00,000 5,00,000 Less : provision for
Investment fluctuation fund 40,000 Doubtful debt 10,000 1,40,000
General reserve 30,000 Stock 1,00,000
Creditors 4,60,000 Cash at Bank 1,70,000
10,30,000 10,30,000
On the above date, Anita retired from the firm and the remaining partners decided to carry on the Business
. It was agreed to revalue the assets and reassess the liabilities as follows :

i) Goodwill of the firm was valued at Rs 3,00,000 and Anita’s share of goodwill was adjusted in
the capital accounts of the remaining partners, Gourav and Sonu.
ii) Land and Building was to be brought upto 12% of its book value.
iii) Bad debts amounted to Rs 20,000. A provision for doubtful debts was to be maintained at 10%
on Debtors .
iv) Market value of investments was Rs 1,10,000 .
v) Rs 1,00,000 was paid immediately by Cheque to Anita out of the amount due and the balance
was to be transferred to her loan account which was to be paid in two annual installments along
with interest @ 10% p.a..
Prepare the Revaluation account, Partners capital accounts and the Balance sheet of the
reconstituted firm on Anita’s retirement.

PART – B

Analysis of financial Statement

23. Higher the ratio, lower the profitability, is applicable to 1

a) Gross profit ratio

b)Operating ratio

c) Net profit ratio

d) Earning per share

24. While calculating cash flow from operation which will be added to net profit ? 1

a) Depreciation

b) Goodwill written off

c) Loss on issue of debenture

 d) All of these

25. Interest received on investments by a financing company will be classified in statement of profit and
loss as 1

a) Revenue from operation

b) Other income

c) All of the above

d) None of the above

27. Which of the following transactions will result into Flow of Cash ? 1

a) Deposited Rs 10,000 into bank

b) Withdrew cash from bank Rs 14,500

c) Sale of machinery of the book value of Rs 74,000 at a loss of Rs 9,000

d)Converted Rs 2,00,000 , 9% debentures into equity shares

28. 100 -- Operating profit =……………… ? 1

a) Operating Ratio

b) Operating Net profit Ratio

c) Gross profit Ratio

d) Current Ratio

29. Loose tools and stores and spares are excluded to calculate working capital while calculating working
capital turnover ratio . (True / False ) 1

30. Calculate Revenue from operations from the following informations : 3

Current assets Rs 8,00,000

Quick ratio is 1.5 : 1
Current ratio is 2:1
Inventory Turnover Ratio is 6 times
Goods were sold at a profit of 25 % on cost .
OR
Explain any limitations of Analysis of Financial Statements .
31. From the following particulars obtained from the books of Mark Ltd. prepare Comparative
Statement of profit and loss : 4
Particulars Note no 2017-18 Rs 2016-17 Rs

Revenue from operations 50,00,000 40,00,000

Purchase of stock in trade 40,00,000 30,00,000
Changes in inventory 10,00,000 8,00,000
Other expenses 5,00,000 4,00,000
Other expenses 2,50,000 2,00,000
OR

From the following statement of profit and loss for the year ended 31st March 2016, prepare Common Size
Statement of profit and loss :

Particulars Note No 2015 -16 Rs 2014- 15 Rs

I Revenue from operation 6,25,000 5,00,000
II Expenses
Purchase of stock in trade 4,35,000 3,60,000
Change in inventories of stock in trade (10,000) 15,000
Employees benefit expenses 15,000 10,000
Depreciation and Amortisation 25,000 15,000
TOTAL EXPENSES 4,65,000 4,00,000
III Profit before Tax ( I- II) 1,60,000 1,00,000
IV Less Tax 64,000 40,000
V Profit after Tax (III – IV ) 96,000 60,000

32. From the following Balance sheet of Mayur Ltd. and the additional information as at 31st March, 2018,
prepare a Cash Flow Statement : 6

Balance Sheet of Mayur Ltd.

As at 31st March, 2018

Particulars Note No 31.3,2018 31.3.2017

Equity and Liability
1 Shareholders fund
Share capital 30,00,000 20,00,000
Reserve and surplus 3,00,000 4,00,000
2 Non Current Liability
Long Term Borrowing 4,00,000 3,00,000
3 Current Liability
Trade Payable 1,70,000 2,50,000
Short Term Provision 76,000 64,000
TOTAL 39,46,000 30,14,000
ASSETS
1 Non Current Assets
Fixed Assets
Tangible Assets 29,00,000 23,00,000
Intangible Assets 2,70,000 1,60,000
Non Current Investment ------ ---------
2 Current Assets
Inventories 2,20,000 2,30,000
 Trade Receivables 1,10,000 1,30,000
Cash and Cash Equivalent 4,46,000 1,94,000
TOTAL 39,46,000 30,14,000
Notes to Accounts

Particulars 31.3.2018 31.3.2017

1 Reserve and Surplus
Surplus i.e. Balance in statement of profit and loss 3,00,000 4,00,000
2 Long Term Borrowing
9% Debentures 4,00,000 3,00,000
3 Short Term Provision
Provision for Tax 76,000 64,000
4 Tangible Assets
Machinery 36,00,000 28,00,000
Accumulated Depreciation (7,00,000) (5,00,000)

5 Intangible Assets
Goodwill 2,70,000 1,60,000

Additional Informations :

i) During the year, a piece of Machinery costing Rs 4,00,000 on which accumulated depreciation
was Rs 73,000, was sold for Rs 3,10,000.
ii) 9% Debentures of Rs 1,00,000 were issued on 31st March, 2018.
……………………………………………
 KENDRIYA VIDYALAYA GOMOH

RANCHI REGION

Model Question Paper XII

SUBJECT – ACCOUNTANCY (055)
MARKING SCHEME
1. C- 12000 1m
2. B – 3 :1 1m
3. A 1m
4. C – 19950 1m
5. C 1m
6. D – 800 1m
7. D 1m
8. B – 1,00,000 1m
9. B 1m
10. C 1m
11. C 1m
12. B 1m
13. FALSE 1m
14. Tournament expenses of Rs 30,000 will be shown in the IN/EXP. A/C 3m
OR
Rs 1,25,000
15. Uday A/c Dr. 3408 4m
To Mudit A/c 3408
OR
B’s commission Rs 30,000. Profit A- 2,00,000. B – 1,00,000
16. Authorised Capital- 10,00,000 4m
Issued Capital - 9,00,000
Subscribed but not fully paid up – 6,77,000

17. 1m for each correct entry with amount. 1x4 = 4m

18. B’s share Rs 6,800 . 4m
19. Surplus Rs 2,15,000 Capital fund - Rs 3,85,500 Balance sheet 6,11,500. 6m
20. A) No of debentures issued 10,000.
b) Correct recording in notes to Accounts and in Balance sheet . (3+3=6)
21. Application money 2,76,000. Allotment money – 1,57,200 . First call money 95,400 .Final call
money – 95,400. OR Capital Reserve - 550 . 8m
22. Revaluation Profit – 40,000
Capital Balance Madhuri- 3,60,000 . Arsh – 1,98,000 . Jyoti – 1,86,000
Balance sheet 10,87,000 . 8m
OR
Revaluation profit – 77,000 . ANITA’S Loan- 2,74,800
Capital balance , Gourav – 1,74,800 Sonu – 87,400
Balance sheet, 9,97,000 8m
23. B 1m
24. D 1m
25. A 1m
26. B 1m
27. C 1m
28. A 1m
29. True 1m
30. Revenue from operation – 15,00,000 3m
OR 1mark for each correct limitations of AFS 1X3

31. 25%,, 25%, 25%,33.33%, 25%, 25%, 30.95%, nil 4M

OR
2015 --- 100, 72, 3, 2, 3, 80, 20, 8, 12

2016 --- 100, 69, (1.60), 2.40, 4, 74.40, 25.60, 10.24, 15.36 4M
32. Cash Flow from Operating Activity – 1,79,000
Cash Used in Investing Activity - (10,00,000)
Cash Flow from Financing Activity – 10,73,000 6m