KENDRIYA VIDYALAYA SANGATHAN, BHUBANESWAR REGION

FIRST PRE-BOARD EXAMINATION, 2023-24

CLASS – XII
SUBJECT: ACCOUNTANCY (055) SET - 04
Time Allowed: 03 Hours Max. Marks:80
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 and Part - B both are compulsory for all the candidates.
5. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
6. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21 ,22 and 33 carries 4 marks each
8. Questions Nos. 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.
Q. PART A Marks

N0. (Accounting for Partnership Firms and Companies)

1 A & B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/5th and 1
for whichRs.20,000 and Rs.20,000 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) 5:3:2 c) 9:6:5 d) 3:2:5
2 Given below are two statements, one labeled as Assertion (A) and the other labeled as 1
Reason (R)
Assertion (A): Transfer to reserves is shown in the debit side of P & L Appropriation A/c.
Reason (R): Reserves are charge against the profits.
In the context of the above statements, which one of the following is correct?
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.
3 If 5,000 shares of Rs.10 each were forfeited for non-payment of final call money of Rs.3 1
per share and only 3,000 of these shares were re-issued @Rs. 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 2,000 shares?
a) Rs. 21,000 b) Rs. 9,000 c) Rs. 14,000 d) Rs. 6,000
OR
 On 1st April 2022, Relaxo ltd. had a balance of Rs.2,00,000 in Securities Premium
account. During the year company issued Rs. 20,00,000, 9% Debentures of Rs.100 each
at a discount of 10% and redeemable @ 5% Premium. The amount to be charged to
Statement of P&L for the year for Loss on issue of Debentures would be:
a) Rs.3,00,000. b) Rs.1,80,000. c) Rs.2,00,000. d) Rs.1,00,000.
4 A, B and C who were sharing profits and losses equally, decided to share the future 1
profits and losses in the ratio to 5:3:2 with effect from 1st April 2023. An extract of their
Balance Sheet as at 31st March , 2023 is:
Liabilities Amount Assets Amount

Investment Fluctuation 85,000 Investment 8,00,000

Reserve
At the time of reconstitution, if the market value of investment was Rs.7,10,000, the
Revaluation a/c will be:
a) Debited withRs.90,000. (b)Debited with Rs.5,000.
c)Credited with Rs.5,000. (d)Credited with Rs.90,000.
OR
X, Y and Z are partners sharing profits and losses in the ratio of 5:3:2, decide to share
profits and losses in the ratio of 2:3:5 with effect from 1 st April,2023. Workmen

compensation Reserve exists at 12,000 in the balance sheet as at 31st March,2023.

At the time of reconstitution, certain amount of claim on workmen compensation was
determined for which Y’s share of loss was 3,150. The claim for workmen compensation is:

(a) 15,000 (b) 22,500 (c) 15,150 (d) 3,600

5 When the partners’ capital accounts are fixed, Interest on Partner’s loan is credited to: 1
a) Partner’s Fixed capital account. b) Partner’s Current account.
c) Partner’s Loan Account. d) Profit and loss account.
6 Ambika Ltd. purchased a Machinery from Sriram Ltd for Rs.7,20,000. The consideration 1
was paid by issue of 9%debentures of Rs.100 each at a discount of 20%. The 9%
Debentures account is credited with:
a) Rs.10,00,000 b) Rs.9,00,000 c) Rs.7,20,000 d) Rs.5,78,000
OR

A company issued 5,00,000, 10% Debentures of 100 each at a discount of 10% and

redeemable after 5 years at a premium of 5%. Loss on issue of debentures will be --------
---------

a. 50,000 b. 75,000 c. 5,00,000 d. 25,000

7 Given below are two statements, one labeled as Assertion (A) and the other labeled as 1
Reason (R)
Assertion (A): Pro-rata allotment of shares means that less number of shares are allotted
to each applicant according to the number of shares applied by him.
Reason (R): As per SEBI guidelines minimum subscription should be at least 90% of the
authorized capital.
In the context of the above statements, which one of the following is correct?
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.
8 Ram , Mohan and Sohan are partners sharing profits in the ratio of 2:2:1. On retirement of 1

Mohan, goodwill was valued at 60,000. Ram and Sohan will respectively compensate
Mohan with

(a) 24,000 and 20,000 (b) 16,000 and 8,000

(c) 40,000 and 20,000 (d) No compensation

Read the following hypothetical situation, answer question no. 9 and 10.
Anu and Annel started a partnership business on 1st April,2022. Their capital
contribution was Rs. 3,00,000 and Rs. 1,00,000 respectively. Anu rented her property to
carry on business for Rs.2,500 p.m. Interest on capital @12%p.a. Anu to get a salary of
Rs.4,000 p.m. Annel to get a commission of 2%of the net profit. Profits are to be shared
in the ratio of 3:2. The profits for the year ended 31st March, 2023 before providing for
rent was Rs.2,00,000.

Following is their Profit & Loss Appropriation Account

Particulars Amount Particulars Amount

To Interest on Capital By profit and loss a/c ----(2)---

Anu ………….
Annel …………. ------------

To Ana’s Salary a/c 48,000

To Annel’s commission a/c --------

To profit transferred to:-
Anu’s Capital A/C ----(1)--
Annel’s Capital A/c -------
-------------
------------- -----------
9 The amount to be reflected in blank (1) will be: 1

a) Rs.3,720 b) Rs.3,400 c) Rs.2,800 d) 2940

10 The amount to be reflected in blank (2) will be: 1

a) Rs.1,62,000. b) Rs.1,74,500. c) Rs.1,71,400. d) Rs.1,70,000

11 Would interest on partner’s loan to the firm be allowed in the absence of an agreement or 1
when the partnership deed is silent?
a. Interest is not allowed
b. Allowed only when agreed by all the partners
c. Will be allowed only when adequate profit is earned
d. Allowed at 6% p.a.
12 Nihar Ltd. forfeited 1,000 shares of 10 each ( 8 called-up) for the non-payment of the 1

allotment money of 5 per share including 2 as premium. Out of these, few shares were

reissued to Nikhil at 7 per share as 8 called-up and 3,200 were transferred to capital
reserve. No of shares reissued were :
(a) 500 shares (b) 800 shares (c) 700 shares (d) 600 shares
13 As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised 1
for:
(A) Writing off all capital expenditures
(B) Issue of fully paid bonus shares to members
(C) Writing off discount/ loss on issue of debentures.
(D) Writing off preliminary expenses
14 X and Y are partners in a firm sharing profits in the ratio of 3:2. Capitals of X and Y after 1

adjustments are 1,60,000 and 1,20,000 respectively. They admit Z as a partner on his

capital contribution of 70,000. New profit sharing ratio of partners is to be 5:3:2. Capital
accounts of the old partners are to be proportionate of their profit sharing ratio adjusted on
the basis of Z’s capital. Surplus capital to be paid to Y:

(a) 10,000 (B) 12,000 (c) 15,000 (d) 16,000

15 Abhi and Sakhi are partners sharing profits and losses in the ratio of 3 : 2. Their capital 1
accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01,
2021. Show the calculation of interest on capital for the year ending 31 March, 2022. If the
partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of
Rs. 14,000 during the year. Interest on capital for the partners will be:

a) 12,000 and 16,000 respectively. b) 15,000 and 20,000 respectively.

c) 6,000 and 8,000 respectively. d) 7,000 and 7,000 respectively.

OR

Aman , Barman and Chetan are partners sharing profits and losses in the ratio of 2:3:4.
They decided to share future profits and losses in the ratio of 4:3:2. They also decided to
record the effect of the following without affecting their book values:

General reserve 40,000

Profit & Loss A/c 20,000

Advertisement suspense Account 15,000

Which of the following is the correct treatment of the above?

Date Particular L.F. Debit ( ) Credit ( )

A Aman’s Capital A/c. Dr. 10,000
To Barman’s Capital A/c. 10,000
B Chetan’s Capital A/c. Dr. 10,000
To Barman’s Capital A/c. 10,000
C Aman’s Capital A/c. Dr. 10,000
To Chetan’s Capital A/c. 10,000
D Chetan’s Capital A/c. Dr. 10,000
To Aman’s Capital A/c. 10,000

16 At the time of dissolution of a firm, creditors are 1,60,000, firm’s capital is 2,40,000 and 1

bank balance is 25,000. Other assets realized 3,00,000. Gain /loss in the realization
account will be :

(a) 75,000 (loss) (b) 80,000(gain)

(c) 1,00,000(gain) (d) 75,000 (gain)

17 Aju, Baju and Saju are partners sharing profits and losses in the ratio of 2:2:1. Baju was 3

guaranteed a profit 10,00,000. The firm earned a profit of 17,50,000 for the year ended
st
31 March,2023.
Pass Journal entries and prepare the Profit and Loss Appropriation a/c for the year ended
31st March,2023.
18 A, B, C are partners in a firm. On 1.4. 2022 their capital stood at 5,00,000, 2,50,000, 3
and 2,50,000 respectively. As per the provision of the partnership deed;

a) C is entitled for a salary of 50,000 p.a

b) Partners were entitled to interest on capital at 5% p.a.

c) Profits were to be shared in the ratio of partners’ capital.

The net profit for the year 2022-23 of 3 30,000 divided equally without providing the
above adjustment. Pass a single adjustment entry to rectify the above errors.
OR

Arun & Barun are partners sharing profits in the ratio of 3:2 .Their capital were 50,000 &
30,000 respectively. Partnership deed provided for Interest on capital @6%p.a. and
quarterly salary of 1,000 to Barun . Arun had given loan of 1,00,000 on 1st October
,2021 to the firm without any agreement about interest . For the year 2021-22 , the profits
earned 26,800 .
Prepare Profit & loss appropriation A/c of the firm for the year ended 31st March, 2022.
19 Balbir Ltd. obtained a loan of Rs 20, 00,000 from SBI @ 9% p.a. interest. The company 3
issued Rs 21,50,000 , 9% Debentures of Rs 100 each in favour of SBI as collateral
security.
Pass journal entries for the above transactions and show the presentation in the
Balance Sheet of Balbir Ltd.
OR
X Ltd. took over Building of 20,00,000 and Machinery of 5,00,000 and liabilities of
6,00,000 of Y Ltd. for a purchase consideration 22,00,000. X Ltd. paid the amount
9,50,000 by Bank Draft and balance by issuing Equity shares of 10 each at a premium
of 25% .
Pass journal entries in the books of X Ltd.
20 Average profit earned by a firm is Rs. 75,000 which includes undervaluation of stock of 3
Rs. 5,000 on average basis. The capital invested in the business is Rs. 7,00,000 and the
normal rate of return is 7% p.a .Calculate the amount of goodwill on the basis of 5 times
the super profit .
21 STAR Ltd. is registered with an Authorised Capital of 10,00,000 divided into 1,00,000 4

equity shares of 10 each. The company issued 50,000 equity shares at a premium of 5

per share. 3 per share were payable with application, 9 per share (including premium)
on allotment and the balance amount on first and final call. The issue was fully subscribed
and all the amount due was received except the first and final call money on 1500 shares
allotted to Vishal. Prepare the Balance Sheet of the company as per schedule III part I
of the Companies Act, 2013 Showing ‘Share Capital balance and Also prepare Notes
to Accounts for the same.
22 Amit and Balan are partners in a firm. They decided to dissolve their firm. Pass 4
necessary Journal entries for the following after various assets and external liabilities
have been transferred to Realisation A/c:-
a) Amit took over half of the investment worth Rs.30,000 at 2% discount and the
remaining investment were sold at a profit of 18% of the book value.

b) Amit had given a loan of Rs.89,000 to the firm which was settled at 90,000.
c) Out of the Stock of Rs.1,20,000; Balan took over 1/3rd of the stock at a discount
of 25% and 50% of remaining stock was took over by a Creditor of Rs.30,000 in
full settlement of his claim. Balance amount of stock realized at Rs.25,000.
d) An outstanding bill for repairs and renewal of Rs.3,000 was settled through an
unrecorded asset which was valued at Rs.10,000. Balance being settled in
Cash.
23 Vijay Laxmi Ltd. issued a prospectus for inviting applications for 50,000 Equity shares of 6

10 each at 20% premium, payable 5 as per application (including 2 as premium), 4

as per allotment and the balance towards first and final call.
Applications were received for 65,000 shares. Application money received on 5,000 shares
was refunded with letter of regret and allotments were made on pro-rata basis to the
applicants of 60,000 shares. Money overpaid on applications including premium was
adjusted on account of sums due on allotment.
Mr. Kunal who was applied for 840 shares failed to pay the allotment money and his
shares were forfeited by the Directors on his subsequent failure to pay the call money. All

the forfeited shares were reissued to Mr. Gaurav for 6,300 as fully paid-up.
You are required to pass necessary Journal Entries for the above transactions in the
books of Vijay Laxmi Ltd.
OR

Shiv Ltd. Invited applications for 20,000 Equity shares of 100 each at a premium of 10
per share. The amount was payable as follows:

On application 40 per share (including premium), on allotment 30 per share and the
balance on first and final call.
Application for 30,000 shares was received. Application for 4,000 shares was rejected and
pro rata allotment was made to the remaining applicants. Ramesh, who was allotted 2,000
shares, did not pay the allotment and first and final call money. His shares were forfeited.

The forfeited shares were reissued at 90 per share as fully paid-up.

Pass necessary Journal entries in the books of the company with maintaining Calls-
in-Arrears Account .
24 A and B are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as on 6
31st March,2020 was as follows:
BALANCE SHEET OF A AND B AS AT 31ST March.2020
Liabilities Rs. Assets Rs.
Sundry Creditors 20,000 Cash 12,000
Outstanding Salary 3,000 Debtors 18,000
General Reserve 5,000 (-)Provision for Bad Debt 2,000
Capitals: 16,000
A
70,000 1,20,000 Stock 20,000
B Furniture 40,000
50,000 Plant and Machinery 40,000
Profit and loss a/c(Dr.) 20,000
1,48,000 1,48,000
On the above date, C was admitted for 1/6th share in the profits on the following terms:
(i) C will bring Rs.30,000 as his capital and Rs.10,000 for his share of goodwill
premium, half of which will be withdrawn by A and B.
(ii) Debtors Rs.1,500 will be written off as bad debts and a provision of 5% will be
created for bad and doubtful debts.
(iii) Outstanding salary will be paid off.
(iv) Stock was overvalued by Rs. 4,000; furniture will be depreciated by 5%, and
Plant and Machinery depreciated by 10% .
(v) A creditor of Rs.2,500 was not recorded in the books will be taken into account.
Pass necessary journal entries for the above transactions in the books of the firm on C’s
admission.
OR
X, Y, and Z were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2019
their balance sheet was as follows:
Balance Sheet of X and Y as at 31st March, 2019
Liabilities Amount Assets Amount
Creditors 21,000 Land and Building 62,000
Workmen Compensation Fund 10,000 Motor Vans 20,000
General Reserve 40,000 Investments 19,000
Capitals: Machinery 12,000
X 50,000 Stock 15,000
Debtors 40,000
Y 40,000 Cash 16,000
Less: Provision 3,000 37,000
Z 20,000 TOTAL 1,10,000
1,81,000 TOTAL 1,81,000
On the above date, Y retired and X and Z agreed to continue the business on the
 following terms:

• Goodwill of the firm was valued at 50,000.

•Value of Land and Building increased to 70,000 and stock was decreased by 2000
• Machinery valued at 10,000 and Motor Vans was depreciated by 20%
• There was a claim of 4, 000 for Workmen’s compensation.
• Provision for bad debts was to be reduced by 1000.
• Y will be paid 8,200 in cash and the balance will be transferred to his loan Account.
• The new profit sharing ratio between X and Z will be 3:2 and their capitals will be in their
new profit sharing ratio .The capital adjustments will be done by opening current accounts.
Prepare Revaluation Account and Partners’ Capital Accounts of the re-constituted
firm and also show the working notes clearly.
25 The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3:3:4 6
as at 31st March, 2022 was as follows:
Liabilities Amount ( ) Assets Amount ( )
Sundry creditors 5,000 Cash 16,000
General reserves 10,000 Land and Building 60,000

Loan 12,000 Investment 47,000

Capital Accounts: Stock 44,000
Sudha 60,000 Sudha’s loan 10,000
Rahim 50,000
Kartik 40,000
1,77,000 1,77,000
Sudha died on 30thJune, 2022. The partnership deed provided for the following on the
death of a partner:
(a) Goodwill of the firm be valued at two years purchase of average profits for the last three
years. The average profits of the last three years were 42,000.
(b) Sudha's share of profit or loss till the date of her death was to be calculated on the
basis of sales. Sales for the year ended 31st March, 2022 amounted to Rs. 4,00,000 and
that from 1st April to 30th June 2022 to Rs. 1,50,000. The profit for the year ended 31st
March, 2022 was 1,00,000.
(c) Interest on capital was to be provided @ 6% p.a.
Prepare Sudha’s Capital Account to be rendered to her executor.
26 Akash Ltd. on 1st July 2022 issued 10,000, 9% debentures of Rs.100 each at a 6
premium of 4% and redeemable at a premium of 15% in two equal annual installments
starting from the end of the third year. The balance in securities premium on the date of
issue of debentures was Rs.60,000. Interest on debentures was to be paid on 31st
March every year.
Pass the necessary journal entries for the financial year 2022-23. Also prepare Loss on
issue of Debentures account.
 PART B
(Analysis of Financial Statements)
27 Which of the following items is not a method / tool of analysis of financial statement: 1
(a) Ratio analysis
(b) Comparative statements
(c) Statement of profit and loss
(d) Cash flow statement
OR

Current assets of X Ltd. are 2,00,000 and current liabilities are 1,50,000. If its Working
capital Turnover Ratio is 6 times, its revenue from operations will be

a. 50,000 b. 2,00,000 c. 3,00,000 d. 3,50,000

28 Statement I : Interest received on Investment by a non-financial company is an Investing 1
company.
Statement II : Dividend paid by a financial enterprise is operating activity.
A. Statement I is correct and II is wrong
B. Statement II is correct and I is wrong
C. Both the statements are correct
D. Both the statements are incorrect
OR
Which of the following transactions would NOT result in Cash Flow?
a. Sale of marketable securities
b. Buy – back of shares
c. Payment of Dividend
d. Purchase of Goodwill
29 Debt – Equity Ratio of Max. Ltd. is 2:1. Which of the following would decrease the ratio? 1
a. Purchase of fixed asset on a credit of 2 months
b. Purchase of fixed asset on a long-term deferred payment basis.
c. Issue of Bonus shares
d. Issue of new shares for cash
30 Rashmi Ltd. provides you the following information:
Particulars 31.03.2023 31.03.2022 1

Equity share capital 5,00,000 4,50,000

Securities premium 15,000 5,000
10% Debentures 4,00,000 3,00,000

Dividend paid 45,000 and new Debentures were issued on 31.03.2023

Calculate cash flow from Financing activities.
 (a) 1,15,000 (b) 75,000 (c) 85,000 (d) 1,60,000

31 Classify the following items under Major heads and Sub heads (If any) in the balance sheet 3
of a Company as per schedule III of the Companies Act 2013.
i. Loose Tools
ii. Unclaimed dividend
iii. Capital Work- in-progress
iv. Calls-in-arrears
v. Securities premium
vi. Current maturities of long-term debts
32 Mahi & Neha started a small Co. under the GOI’s Start-up Scheme. Their financial 3
performance for the last year was as under.

Net profits after Tax 6,50,000 , 10% Debentures 10,00,000 , Tax Rate: 50% , Non-

Current Assets 20,00,000, Current Assets 15,00,000, Current Liabilities 7,00,000.

Cost of Revenue from operations 24,00,000 , Gross Profit is 20% on Revenue from
operations (Net Sales),
Calculate (a) Return on Investment or Capital Employed
(b) Fixed Assets Turnover Ratio

33 Following is the statement of Profit and loss of Sun India Ltd. for the year ended 31st 4
March,2023
Particulars Note 31.03.2023 31.03.2022
No.
Revenue from operations 40,00,000 30,00,000

Employee benefit expenses 22,00,000 18,00,000

Other Expenses 2,00,000 4,00,000

Tax Rate 40% 40%

You are required to prepare a Comparative Statement of Profit and Loss of Sun India Ltd.
from the given Statement of Profit and Loss.
OR
 From the information extracted from the statement of Profit & Loss of JK Ltd for the year
ended 31st March 2022 and 31st March 2023,prepare common size Balance Sheet:
Particulars Note 31.03.2023 31.03.2022
No.
Shareholders’ funds 9,00,000 6,00,000
Non-current liabilities 3,00,000 3,00,000
Current liabilities 3,00,000 1,00,000
TOTAL 15,00,000 10,00,000
Non-current assets 10,50,000 7,00,000
Current assets 4,50,000 3,00,000
TOTAL 15,00,000 10,00,000
34 A. From the following information, calculate Cash flow from Operating activities: (3+3=
Particulars Note 31.03.2023 31.03.2022 06)
No.
Surplus i.e. Balance in statement of P & L 71,000 89,000
Inventory 12,000 4,000
Trade receivables 58,000 45,000
Outstanding expenses 14,600 10,000
Goodwill 50,000 60,000
Cash in hand 9,000 12,000
Additional information:
i. A piece of machinery costing 50,000 on which depreciation of 20,000 had been
charged was sold for 10,000. Depreciation charged during the year was
18,000.
ii. Income tax paid 23,000 during the year.
iii. Interim Dividend paid 36,000.
(B) Following information is related to Glaxo. Ltd.:
Particulars 31.03.2022 31.03.2021

Machinery (at cost) 5,00,000 3,00,000

Accumulated depreciation on Machinery 1,00,000 80000
Goodwill 1,50,000 100000
Land 70,000 100000
Additional Information:

During the year , a machine costing 50,000 on which the accumulated depreciation was

35,000 was sold for 12,000.

You are required to calculate Cash Flow From Investing Activities.