KENDRIYA VIDYALAYA SANGATHAN, GURUGRAM REGION

PRE-BOARD-I (2022-23)
CLASS : XII SUBJECT: ACCOUNTANCY
Max Marks: 80 TIME: 3 HOURS
General Instructions:
 This Question Paper contains two parts – A and B. There are 34
questions in the question paper. All questions are compulsory.
 Question no. 1 to 16 and 27 to 30 carries 1 mark each.
 Question nos. 17 to 20 and 31-32 carries 3 mark each.
 Question nos. 21, 22 and 33 carries 4 mark each.
 Question nos. 23 to 26 and 34 carries 6 mark each.
Q Mar
N Part A - Accounting for Partnership Firms and Companies ks
o.
1 Ansh, Nitin and Sukesh are partners sharing profits in the ratio of 5:3:2 If. Nitin 1
retires,Calculate new profit sharing ratio of Ansh and Sukesh.
(a) 3: 2 (b) 5:3
(c) 5:2 (d) 2:1

2 There are two statements marked as Assertion (A) and Reason (R.). Read the 1
statement and choose the appropriate option from the options given below:
Assertion (A): A firm may dissolve with the consent of all the partners.
Reason (R): Afirm cannot dissolve in accordance with acontract between the
partners.
(a) Both A and R are true and R is (a) Both A and R are true but R is
the correct explanation of A not the correct explanation of A
(c) A is true but R is false (d) A is false but R is true

3 A company forfeited 4,000 shares of `Rs10 each on which application 1

money of `Rs 3 has been paid. Out of these 2,000 shares were reissued
as fully paid up and `Rs 2,000 has been transferred to capital reserve.
Calculate the rate at which these shares were reissued.
a) Rs 10 b) Rs 9 c) Rs 11 d) Rs 8
OR
When debentures are issued at par but redeemable at par,which of the
following account will be debited at the time of issue
a) Discount on issue of debentures a/c
b) Premium on redemption of debentures a/c
c) Security Premium Reserve
d) Profit and Loss a/c.
4 A firm earns Rs1,10,000.The normal rate of return is 10%. The assets of the 1
firm amounted to Rs11,00,000 and liabilities to Rs1,00,000.Value of goodwill by
capitalisation of average actual profit will be:
(a) Rs 2,00,000 (b) Rs 5,000
(c) Rs 10,000 (d) Rs 1,00,000
OR
In case of Workmen Compensation Reserve, if the amount claimed is more
than the amount lying in WCR, then the shortfall will be recorded in :
(a) Revaluation Account (b) Partners’ Capital Account
(c) Balance Sheet (d) None of these

5 Dev withdrew Rs10,000 on 15th day of every month.Interest on drawings was to 1

be charged@12%per annum. Calculate interest on Dev’s drawings.
Rs 7200 (b) Rs 1,800
Rs 3000 (d) Rs 2,200

6 Xyz Ltd. agreed to pay purchase consideration of Rs 1, 98,000 .The payment 1

made by issue of debentures of Rs 100 each at 10% discount. How many
debentures will be issued?
(a) 1100 (b) 1,084
(c) 2200 (d) None of these
OR
The following journal entry is appearing in Cee Ltd.
Bank Account 2,00,000
Dr
Loss on Issue of Debentures Account 1,00,000
Dr
To 12% Debentures 2,50,000
To Premium on Redemption of 50,000
Debentures
Debentures are issued at a discount of :
(a) 5% (b) 10%
(c) 15% (d) 20%
7 ABC Ltd. issued 10,000, 7% debentures of Rs 100 each at a discount of Rs 4 1
redeemable at a premium of Rs 6. It will write off loss on Issue of debentures
from(in the absence of securities premium reserve):
(a) Securities Premium Reserve (b) Statement of Profit and Loss
Account
(c) Capital Reserve (d) General Reserve
8 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2:1. 1
On March, 31, 2019 C died. Accounts are closed on December 31st every year.
The sales for the year 2018 were Rs. 6, 00,000 and the profits were Rs 60,000.
The sales for the period for the period January 1, 2019 to March 31 st 2019 were
Rs.2, 00,000. An amount of Rs _______will be given to his executors as his
 share of profits till the date of death. Rs

(a) Rs4000 (b) Rs5000

(c) Rs3000 (d) Rs2000
OR
Ram and Shyam were partners in a firm sharing profits and losses in the ratio
of 3:2. Their capitals were Rs 1, 20,000 and Rs 2, 40,000 respectively. They
were entitled to interest on capital @ 10%. The firm earned a profit of Rs
18,000 during the year. The interest on Ram’s capital will be :
(a) Rs 12,000 (b) Rs 10,800
(c) Rs 7,200 (d) Rs 6,000
9 A Company got its mining right recently. You are required to show this right in 1
financial statements of the company as :
(a) Expense (b) Intangible Asset
(c) Current Asset (d) Non-Current Liability
10 A Company issued Capital. A shareholder paid all money on allotment while 1
first call is not called by the company. You are required to show this advance
in Balance sheet of the company as :
(a) Current Liability (b) Long term Liability
(c) Current Assets (d) None of the Above
11 What is the maximum no. of partners in a firm? 1
(a)2 (b) 10
(c) 50 (d) 100
12 Balance of Share Forfeiture account is shown in the balance sheet under the 1
item :
(a) Current Liabilities & (b) Reserves & Surplus
Provisions
(c) Share Capital (d) Unsecured Loans

13 X Ltd. has purchased the building and debentures are issued at 1

discount.Which account will be debited for discount?
(a) Discount on issue of (b) Loss on issue of
debenture debenture
(c) Both a and b (d) None of the above

14 A and B share profits in the ratio of 3:2. Their capitals are Rs 40,000 and Rs 1
30, 000 respectively. C is admitted for 1/5th share in profits. What is the
amount of capital which C should bring?
(a) Rs 17,500 (b) Rs 16,000
(c) Rs 1,00,000 (d) Rs 64,000
15 1
Arti and Bina are partners with profit sharing ratio of 2:1 and capital of Rs
5,00,000 and Rs 4,00,000 respectively .They are allowed 8% p.a. interest on
capital and are charged 10% pa interest on their drawings.Their drawings
during the year were Rs 80,000 and Rs 60,000 respectively.Arti’s share of
profit as per profit and loss appropriation a/c amounted to Rs 1,00,000.Net
profit of the firm before any appropriation was
 a) 2,08,000 b) 2,15,000 c) 1,79,000 d) 2,22,000
Or
P,Q and R are equal partners At the time of P’s retirement. Workmen
compensation Reserve (WCR) appears in the books at Rs 70,000 and the
claim of Rs 25,000 was against it. The amount of WCR credited to P’s
Capital account will be :
(a) Rs 33,300 (b) Rs 15,000
(c) Rs 45,000 (d) Rs 95,000
16 On dissolution of a firm Profit and Loss (Dr) Balance is transferred to: 1

(a) credit side of partners’ capital (b) debit side of realisation account .
account.
(c) debit side of partners’ capital (d) credit side of realisation account.
account
17 P, Q and Rwere partners in a firm sharing profits in the ratio of 3:2:1. The firm 3
closes its books on 31st March every year. Q died on 12th June, 2022. On Q’s
death, the goodwill of the firm was valued at Rs 60,000. His share of profit of
the firm till the time of his death was to be calculated on the basis of previous
year’s profit which was Rs 1, 50,000. According to Q’s will the executors should
donate his share to an orphanage for girls.
Pass the necessary journal entries for the treatment of goodwill and Y’s share
of profit at the time of his death.
18 Seema and Meena decided to start a partnership firm to manufacture low cost 3
jute bags as plastic bags were creating many environmental problems. They
contributed capitals of Rs 1,00,000 and Rs 50,000 on 1st April 2019 for this.
Seema expressed her willingness to admit Neema as a partner without capital,
who is specially abled but very creative and intelligent friend of her. Meena
agrees to this. The terms of partnership were as follows:
(i) Seema, Meena and Neena will share profits in the ratio of 2:2:1.
(ii) Interest on Capital will be provided @6%p.a.
Due to shortage of Capital, Seema contributed Rs 25,000 on 30th September
2019 and Meena contributed Rs 10,000 on 1st January 2020 as additional
Capital. The profit of the firm for the year ended 31st March 2020 was
Rs 1,68,900.
Prepare the profit and loss Appropriation account for the year ended 31st march
2020.

OR
Ajay, Binay and Chetan were partners sharing profits in the ratio of 3:3:2. The
partnership provided for the following:
(i) Salary of Rs 2000 per quarter to Ajay and Binay.
(ii) Chetan was entitled to a commission of Rs. 8,000.
 (iii) Binay was guaranteed a profit of Rs 50,000 p.a.
The profit of the firm for the year ended 31st March 2020 was Rs 1, 50,000
which was distributed among Ajay, Binay and Chetan in the ratio of 2:2:1
without taking into consideration of the provisions of partnership deed. Pass
necessary rectifying entry for the above adjustments in the books of the firm.
Show your work clearly
19 Gujrat Gas ltd. Issued 600000 ,9% debentures of Rs.1000 each payable as 3
follows
On application Rs.300
On allotment Rs.700
The debentures were fully subscribed and all the money was duly received. As
per terms of issue, the debentures are redeemable at Rs.1100 per debenture.
Record necessary journal entries regarding issue of debentures.
OR
Mohit Ltd. took over assets of Rs8,40,000 and liabilities of Rs80,000 of Ram
Ltd.at an agreed value of Rs7,20,000.Mohit Ltd paid to Ram Ltd.by issue of 9%
debenture of Rs100 each at a premium of 20%. Pass necessary Journal
entries to record the above transactions in the books of Mohit Ltd.
20 X, Y and Z are partners. their capitals being Rs.300000,Rs.250000 and 3
Rs.200000 respectively. In arriving at these figures, the profits for the year
ended 31st March,2020 Rs.240000 has already been credited to the partners in
the proportion in which they share profits. Their drawings were X Rs.50000,Y
Rs40000 and Z Rs.30000 for the year ending 31 st march,2020.Subsequently
the following omissions were noticed and it was decided to bring them into
account.
(i) Interest on capital @10% p.a.
(ii) Interest on drawings X Rs.2500,Y Rs2000 and Z Rs.1500
Make the necessary journal entry
21 Pass necessary Journal Entries for the issue of Debentures in the following 4
cases :
(i) Rs 30,000, 12% Debentures of Rs 100 each issued at a discount of
5% redeemable at par.
(ii) Rs60,000, 12% Debentures of Rs 100 each issued at a discount of
5% redeemable at Rs 105
.
22 Ishu and Nishu are partners share profits and losses in the ratio of 3:2. They 4
have decided to dissolve the firm. Assets and external liabilities have been
transferred to Realisation A/c. Pass the Journal entries to effect the following:
a) Bank Loan of Rs. 20,000 is paid off.
b) Ishu was to bear all expenses of realisation for which she is given a
commission of Rs. 600.
c) Machinery worth Rs. 5,000 was taken over by Nishu at Rs. 4,700.
d) Deferred Advertisement Expenditure A/c appeared in the books Rs 10,000.
23 R Ltd has been registered with an authorized capital of Rs 2,00,000 divided into 6
 2000 shares of Rs 100 each of which 1000 shares were offered for public
subscription at a premium of Rs 50 per share payable as under: Application-
Rs 30; Allotment Rs 70(including premium); First call Rs 20; final call Rs 30.
Applications were received for 2000 shares of which application for 500 shares
were rejected. The rest of the applications were allotted 1000 shares on pro-
rata basis. Excess application money was transferred to share allotment
account.
All money were duly received except from Mohan , holder of 200 shares, who
failed to pay allotment money and first call money. His shares were later on
forfeited and re issued to Hari at Rs 60 per share as Rs 70 paid up. Final call
is not yet made. Record journal entries.

Or
CD Ltd issued 20,000 shares of Rs 10 each to the public. Applications were
received for 30,000 shares. 5000 applicants were rejected and allotment was
made on pro rata basis. Amount payable is as follows: Application Rs 3,
Allotment Rs 5, First and final call Rs 2 .Sirjan with 400 shares didn’t pay
allotment. Her shares were forfeited after allotment . Simran with 600 shares
didn’t pay call, her shares were also forfeited. All the shares forfeited were
reissued at Rs 7 as fully paid up.
Pass necessary entries and prepare Cash Book
24 Vinay and Madan were partners sharing profits in the ratio of 2:1. On 1 st April 6
2019, They admitted Sunil, a retired army officer who had lost his legs while
servicing in army, as a new partner for 1/4 share in profits. Sunil will bring
60,000 for Goodwill and Rs 50,000 as capital, At the time of admission of Sunil
the Balance Sheet Vinay and Madan was as under :-

Liabilities Amount (Rs) Assets Amount (Rs)

Capital Plant 66,000
accounts Furniture 30,000
Vinay 1,30,000 Investment 40,000
7,0000
Stock 46,000
Madan
60,000 18,000 Debtors 38,000
18,000 Less PBD- 4,000 34,000
General 72,000 Cash 22,000
Reserve
Bank Loan
Creditors
Total 2,38,000 Total 2,38,000
It was decided to
(i) Reduce the value of stock by Rs.10, 000.
 (ii) Plant to be valued at Rs 80,000.
(iii) An amount of Rs.3,000 included in creditors was not payable.
(iv) Half of the investment were taken over by Vinay and remaining were
valued at Rs.25,000.
Prepare revaluation account, partners ‘capital account and Balance sheet
of the reconstituted firm.
OR
The balance sheet of Dhoni, Kohli and Ganguli who were sharing profit in
the ratio of 3:3:4 respectively, as on 31st March 2020 was as under:-
Liabilities Amount Assets Amount
(Rs) (Rs)
Capital Accounts Goodwill 18,000
Dhoni 10,000 Stock 14,500
Kohli 12,000 Machinery 9,000
Ganguli 4,000 26,000 Sundry Debtors 16,000
General Reserve 11,000 Land and Building 16,000
Employees provident fund 7,000 Bank 25,500
Loan 24,000 Advertisement
Trade Creditors 30,000 suspense A/C 5,000
Workmen compensation 6,000
reserve
Total 1,04,000 Total 1,04,000

It was agreed that Dhoni shall retire on 1st April 2020 as per the following
condition:-
(a) Goodwill of the firm is to be valued at three years' purchase of the
average of annual profits of the last four years. The profits for the
preceding four years were Rs.30, 000; Rs.80,000; Rs.12,000;
Rs.14,000; no goodwill account is to be raised.
(b) Stock is agreed to be valued at Rs. 13,500.
(c) Land and Building are to be revalued at Rs.24, 000 and machinery at
Rs.60, 000.
(d) Provision for doubtful debts at 5% on sundry debtors is to be created.
(e) An unclaimed liability included in creditors of Rs.400 is to be written
back.
Prepare Revaluation Account, Partners' capital account.
25 A) X Ltd. forfeited 10 shares of Rs 10 each, Rs 7 called up on which the 6
shareholder had paid application and allotment money of Rs 5 per share.
Out of these, 8 shares were re-issued to Y for Rs8 per share at Rs 8 per
paid up per share. Record the journal entries for forfeiture and reissue of
shares by opening call in arrear, call in advance account.
 b) L ltd forfeited Mr M’s shares who has applied for 600 shares and was
allotted 400 shares failed to pay allotment money of Rs 4 per share including
premium of Rs 2 on which he had paid application money of Rs 2 only. Pass
necessary journal entries for forfeiture of shares.
26 6
A, B and C were partners in a firm sharing profits in the ratio of 2:2:1. On 31st
December 2018, their Balance Sheet was as follows:
Liabilities Amount Assets Amount
(Rs) (Rs)
Creditors 60,000 Bank 90,000
Bills 40,000 Stock 70,000
payable
General 30,000 Debtors 40,000
Reserve
Capital Land & 5,00,000
A/cs Bldgs.
A 3,00,000 P&L 1,60,000
A/c
B 3,00,000
C 1,30,000
8,60,000 8,60,000

B died on 31st March 2019. The partnership deed provided the following on the
death of a partner.
(i) Goodwill of the firm was to be valued at 2 years’ purchase of the average
profit of last 5 years. The profits for the years ended 31st
December2017, 31st December 2016, 31st December 2015 and 31st
December 2014 were Rs 50,000, Rs 80,000, Rs 1,10,000 and Rs
2,20,000 respectively.
(ii) B’s share of profit or loss till the date of death was to be calculated on
the basis of the profit or loss for the year ended 31st December 2018
You are required to calculate the following:
(a) Goodwill of the firm and B’s share of goodwill at the time of his death.
(b) B’s share in the profit or loss of the firm till the date of his death
(c) Prepare B’s Capital Account at the time of his death to be presented to
his executors.

Part B – Analysis of Financial Statements

27 Current ratio of X ltd. is 2.4:1 and Y ltd. is 8:1. Choose the most appropriate 1
options from the followings
(a) Y ltd is better than X ltd.
 (b) Both companies are having ideal current ratio
(c) X ltd. is better than Y ltd.
(d) Both the companies are having poor liquidity
28 The debt equity ratio of X ltd is 0.6:1. What is the effect of conversion of 1
Debentures into Preference shares on this ratio(increase / decrease / no
change).
29 X Ltd. redeemed Rs. 1, 00,000, 9% debentures at 10% premium. What will be 1
the amount of Cash flow from financing activities?
(a) Rs 1,10,000 (b) Rs 1,00,000
(c) Rs 10,000 (d) None of these

OR
Interest paid by an investment company will come under which activity while
preparing cash flow statement :
(a) Operating Activity (b) Investing Activity
(c) Financing Activity (d) None of the Above
30 Total revenue from operations Rs.9,00,000; Cash revenue from operations 1
Rs.3,00,000; Debtors Rs.1,00,000; B/R Rs.20,000. Trade Receivables Turnover
Ratio will be:
(A) 5 Times (B) 6 Times (C) 7.5 Times (D) 9 Times
31 Classify the following items under Major heads and Sub-heads (if any) in the 3
Balance Sheet of the Company as per Schedule III of the Companies Act 2013.
(a) Prepaid expenses
(b) Debentures
(c) Bonds Rs
(d) Trademark
(e) Bank Overdraft
(f) Loose Tool.
32 The operating ratio of a company is 80%. State whether the following 3
transactions will increase,decrease or not change the ratio: -i) Purchased goods
on credit Rs 20,000.
ii)Redeemed 8000 , 9% debentures;
iii)Paid wages Rs8000.

33 From the following information, calculate Inventory Turnover Ratio; 4

Revenue from Operations Rs 16,00,000;
Average Inventory Rs2,20,000; Gross Loss Ratio 5%.
OR
From the following details obtained from the financial statements of Jeev Ltd.,
calculate interest coverage Ratio :
Net Profit after tax Rs 1,20,000,
12% Long-term Debt Rs 20,00,000,
 Tax Rate 40%.
34 The following is the Balance Sheet of Pawan Ltd. as at 31st March, 2019, 6
prepare a Cash Flow Statement:

Particulars Note 2018-19 2017-18

No. (Rs.) (Rs.)
I. EQUITY AND LIABILITIES
(1) Shareholders Funds
(a) Share Capital 12,00,000 11,00,000

(b) Reserves and Surplus

(2) Non-Current Liabilities 3,00,000 2,00,000
Long-term Borrowings 1
(3) Current Liabilities
(a) Trade Payables 2,40,000 1,70,000
(b) Short Term-Provisions
1,79,000 2,04,000

50,000 77,000
Total 19,69,000 17,51,000
II. ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 2 10,70,000 8,50,000
(ii) Intangible Assets 3 40,000 1,12,000
(2) Current Assets
(a)Current Investments 2,40,000 1,50,000
(b) Inventories 1,29,000 1,21,000
(c) Trade Receivables 1,70,000 1,43,000
(d)Cash and Cash
Equivalents 3,20,000 3,75,000

Total 19,69,000 17,51,000

 Note to Accounts 2018-19 2017-18
(Rs.) (Rs.)
(1) Reserves and Surplus:
3,00,000 2,00,000
Surplus, i.e., Balance in
Statement of Profit and loss
(2) Tangible Assets: 1270000 10,00,000
Machinery (2,00000) (1,50,000)
Less: Accumulated Depreciation 1070000 8,50,000

(3) Intangible Assets:

40,000 1,12,000
Goodwill

Additional information:

During the year a piece of machinery, costing Rs. 24,000 on which accumulated
depreciation was Rs. 16,000, was sold for Rs. 6,000.
Prepare Cash Flow Statement.