Std.

: 12th (CBSE) MID TERM EXAM Date : 21/10/2024

Time : 3 Hours. ACCOUNTNCY (055)
Marks: 80
 GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question 1 to 16 and 27 to 30 carries 1 mark each.
3. Questions 17 to 20, 31and 32 carries 3 marks each.
4. Questions from 21, 22 and 33 carries 4 marks each
5. Questions from 23 to 26 and 34 carries 6 marks each

SECTION - A
1. Which of the following is legally qualified to start a partnership business? [1]
a) A person disqualified by Law b) Lunatic person
c) Solvent person d) Minor Partner
2. Loan obtained from the bank @ 9% p.a. but there is no partnership deed. How
much interest will be paid to the bank ? [1]
a) 6% per annum b) 9% p.a.
c) No interest d) 6% fixed
3. A, B and C are sharing profits and losses in the ratio 5:3:2 with effect from
01/04/2013 they decide to share profit and losses equally. Calculate Bpartner’s
gain share [1]
a) share b) share
c) share d) share
4 Anil and Rahulare partners in a firm sharing profits and losses in the ratio of
5 : 1. [1]
Balance Sheet (Extract)

If value of machinery in the balance sheet is undervalued by 20%, then at what

value will machinery be shown in new balance sheet ?
a) 32,000 b) 44,000
c) 48,000 d) 50,000
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5 Bharati and Astha were partners sharing profits and losses in the ratio of 3 : 2.
They admitted Dinkar as a new partner for share in the future profits of the
firm which he got equally from Bharati and Astha.New profit sharing ratio: [1]
a) 3 : 2 : 1 b) 5 : 3 : 2
c) 5 : 3 : 1 d) 1 : 1 : 1
6 A and B are partners sharing profits in the ratio of 5 : 4. They decided to admit
Girish as a new partner for l/3rd share which he takes from A and from B.
Girish Paid 27,000 as his share of goodwill. Amount of goodwill transfer to
the Capital Account of A and B : [1]
a) A = 18,000; B = 9,000 b) A = 13,500; B = 13,500
c) A = 9,000; B = 18,000 d) A = 15,000; B = 12,000
7 Rohit and Mohit were partners sharing profits and losses in the ratio of 2 : 1.
Their capital accounts as on 31.3.2021 had a credit balance of 1,09,000 and
66,000 respectively. They admitted Sahil as a new partner on 1 April, 2021
for share in profits. Sahil brought 25,000 as his share of goodwill premium.
He agreed to contribute capital in new profit - sharing ratio. The amount of
capital brought by Sahil was : [1]
a) 12,50,000 b) 40,000
c) 50,000 d) 32,000
8 Provision for Tax appears in a Company’s Balance Sheet under the Sub - head
________. [1]
a) Long - term Provisions b) Short - term Provisions
c) Other Current Liabilities d) Reserves and Surplus
9 Which of the following is the element of financial statements? [1]
a) Balance Sheet
b) Fund flow statement
c) Both balance sheet and profit and loss a/c
d) Profit & Loss A/c
10 Which objective is not fulfilled by comparative Statement of Profit & Loss: [1]
1. To compare the items of Statement of Profit & Loss of two years
2. To know the absolute changes in items of Statement of Profit & Loss
3. To show the change in a financial position
4. To know the percentage changes in items of Statement of Profit & Loss
a) Only ii b) Only i
c) Only iv d) Only iii

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11 This item is not used as a tool for Analysis of Financial Statements: [1]
a) Numberof Employees Statement b) Cash Flow Statement
c) Fund Flow Statement d) Ratio Analysis
12 In comparative analysis of financial statement, technique used is [1]
a) preference analysis b) returning analysis
c) common - size analysis d) graphical analysis
13 Pick the odd one: [1]
a) Cash in hand b) Marketable Securities
c) Non - current Investments d) Cash at bank
14 An example of cash flow from operating activity is: [1]
a) purchase of own debenture
b) Issue of equity share capital
c) sale of fixed assets
d) interest paid on term - deposits by a bank
15 A firm earned 60,000 as profit, the normal rate of return being 10%. Assets of
the firm are 7,20,000 (excluding goodwill) and Liabilities are 2,40,000.
Find the value of Goodwill by Capitalisation of Average Profit Method. [1]
a) 2,40,000 b) 1,20,000
c) 1,80,000 d) 60,000
16 The Goodwill of the firm is NOT affected by: [1]
a) Location of the firm b) Reputation of firm
c) None of these d) Better customer service
17 X and Y are partners in a firm. They do not have any partnership deed. What
should be done in the following cases : [3]
1. X has invested 1,00,000 and Y only 50,000 as capital. X wants interest
on capital @ 8% p.a.
2. X spends twice the time that Y devotes to the business. He wants a salary
of 2,000 per month for the extra time spent by him.
3. X wants to introduce his son Yogesh into the business. Y objects it.
4. X has advanced a loan of 1,00,000 to the firm. He claims interest@ 9%
p.a.
OR

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 C and D are partners in a business and their capitals at the end of the year were
7,00,000 and 6,00,000 respectively. Calculate their opening capitals from
the following information:
1. Drawings of C and D for the year were 75,000 and 50,000 respectively.
2. D introduced capital of 1,00,000 during the year.
3. Interest on capital credited to the Capital Accounts of C and D were
15,000 and 10,000 respectively.
4. Interest on drawings debited to the Capital Accounts of C and D were
7,500 and 5,000 respectively.
5. Share of loss debited to Capital Account of each Partner was 20,000
18 Ramand Ravi are partners having fixed capitals of 5,00,000 each as on 31
March, 2022. Ram introduced further captial of 1,00,000 on 1 October,
2022 whereas Ravi withdrew 1,00,000 on 1 October, 2022out of capital. [3]
Interest on capital is to be allowed @ 10% p.a.
The firm earned net profit of 6,00,000 for the year ended 31 March, 2023.
Pass the Journal entry for interest on capital and prepare Profit and Loss
Appropriation Account.
19 Yogesh, Ravi and Rahul have omitted interest on Capitals for two years
ended on 31 March, 2023. Their fixed capitals in two years were Yogesh
8,00,000, Ravi 7,00,000 and Rahul 3,00,000. Rate of interest on Capital is
10% p.a. Their profit Sharing ratios were in first year 4 : 3 : 2 and in second
year 3 : 2 : 1.
Give necessary adjusting entry at the beginning of next year. [3]
20 Name the major heads under which the following items will be presented in
the balance sheet of a company as per Schedule III of the Companies Act,
2013. [3]
1. Loose tools 2. Copyrights and Patents
3. Unpaid dividend 4. Land and Building
21 Satyam and Pankaj are partners in a firm sharing profits and losses in the ratio
of 2 : 1. They decide to take Dev into partnership for th share on 1 April,
2023. For this purpose, goodwill is to be valued at four times the average
annual profit of the previous four or five years, whichever is higher. The agreed
profits for goodwill purpose of the past five years ended 31st March, are: [4]

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 Calculate the value of goodwill.
22 A firm has Current Ratio of 4.5 : 1 and Quick Ratio of 3 : 1. If its inventory is
60,000, find out its total current assets and total current liabilities. [4]
OR
The liquidity of a business firm is measured by its ability to satisfy its long -
term obligations as they become due. What are the ratios used for this purpose?

23 A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2.
Their balance sheet as at 1 April, 2022was as follows: [6]

BALANCE SHEET

C is admitted as partner on the above date on the following terms :

1. He will pay 10,000 as goodwill for one - fourth share in the profits of
the firm.
2. The assets are to be valued as under : Plant at 32,000; Stock at 18,000;
Debtors at book figure less a provision of 5 per cent for Bad Debts.
3. It was found that the creditors included a sum of 1,400 which was not to
be paid. But it was also found that there was a liability for compensation
to workers amounting to 2,000.
4. C was to introduce 20,000 as capital and the capitals of other partners
were to be adjusted in the new profit sharing ratio. For this purpose,
current accounts were to be opened.
5. Give Journal entries to record the above and Balance Sheet after C’s
admission. (Ledger accounts are not required)

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24 Mohan and Ram are partners sharing profits and losses in the ratio of 3 : 2.
They admit Raja as a partner who contributes 30,000 as his capital for th share
in the profits of the firm. It is decided that after Raja’s admission, the capitals
of the Mohan and Ram will be adjusted on the basis of Raja’s capital in the
business, any surplus or deficiency to be adjusted through current accounts.
Before any adjustments were made, the capitals of Mohan and Ram were:
59,000 and 35,000 respectively.At the time of Raja’s admission: [6]
1. The firm’s goodwill was valued at 40,000.
2. General Reserve was 25,000.
3. Loss on revaluation of assets and liabilities was 4,000.You are required
to pass the necessary journal entries on Raja’s admission.
25 Mintu and Deepak are partners sharing profits in the ratio of 3 : 2. Their Balance
Sheet at 31 March, 2023stood as:
BALANCE SHEET
as at 31 March, 2023

Sohan is admitted as a new partner introducing a capital of 16,000. The new

profit - sharing ratio is decided as 5 : 3 : 2. Sohan is unable to bring in any
cash for goodwill. So, it is decided to value the goodwill on the basis of Sohan’s
share in the profits and the capital contributed by him. Following revaluations
are made: [6]
1. Stock to decrease by 5%;
2. Provision for Doubtful Debts is to be 500;
3. Furniture to decrease by 10%;
4. Building is valued at 40,000.
Show necessary Ledger Accounts and Balance Sheet of new firm.
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 SECTION - B
26 Which of the following is not a Profitability Ratio : [1]
a) Gross Profit Ratio b) Return on Investment
c) Operating Ratio d) Proprietary Ratio
27 Current Ratio of a Company is 2.5 :
1. If its working capital is 60,000, its current liabilities will be: [1]
a) 1,00,000 b) 60,000
c) 40,000 d) 24,000
28 Assertion (A) : When the items are omitted it is necessary to prepare Profit
and Loss Adjustment Account only. [1]
Reason (R) : For the purpose of correcting these omissions or mistakes,
adjustment entries are passed through Profit and Loss
Adjustment Account in which adjustments in respect of
each and every omission are to be made.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
29 Assertion (A) : Sanjana and Naresh are partners sharing profits equally.
They admit Hena for th share in future profits. On the
date of admission, Workmen Compensation Reserve
existed in the books at 1,00,000. A claim of 1,50,000
was made by a worker and was to be accounted. The existing
reserve of 1,00,000 will be distributed between Sanjana
and Naresh and 1,50,000 being the claim amount will be
transferred to the debit of Revaluation Account. [1]
Reason (R) : Workmen Compensation Reserve of 1,00,000 will be
transferred to Workmen’s Compensation Claim Account.
In addition, 50,000 be debited to Revaluation Account
and credited to Workmen’s Compensation Claim Account.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

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30 From the information given below, prepare Comparative Statement of
Profit and Loss: [3]

31 From the following information provided, prepare Comparative Statement of

Profit and Loss of Mobility ltd. for the years ended 31st March 2018 and
2017: [3]

32 State giving reason, whether the Current Ratio will improve or decline or will
have no effect in each one of the following transactions if Current Ratio is
(i) 2.5 : 1, (ii) 1 : 1, (iii) 0.75 : 1. [4]
1. Paid 50,000 to a Creditor.
2. Sale of goods at a loss of 10%.
3. Sale of a fixed asset for 1,00,000 (Book Value 1,20,000).

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 4. Payment of outstanding salaries.
5. Received 25,000 from a Debtor of 30,000 in full settlement of his account.
6. Bills payable discharged on maturity.
7. Bills Receivable drawn on debtor.
8. Purchased goods on credit.
33 From the following Balance Sheet of Anjali Limited as at March 31, 2023,
prepare a Cash Flow Statement: [6]

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 Notes to Accounts:

Additional Information:
1. During the year 2022 - 23, a machinery costing 50,000 and accumulated
depreciation thereon 15,000 was sold for 32,000.
2. 9 % Debentures 80,000 were issued on April 1, 2022.
34 From the following Balance Sheet of Akansha Ltd. as at 31 March, 2023,
calculate Cash from Operating Activities: [6]
BALANCE SHEET OF AKANSHA LTD. as at 31 March, 2023

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Notes of Accounts:

Additional Information:
1. 50,000, 12% Debentures were issued on 31 March, 2023.
2. During the year 24,000 was charged as depreciation on furniture.

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