Accountants Sample Paper Class 12

(Accounting for Not-for-Profit Organizations, Partnership Firms and Companies)

  1. How are the following items presented in financial statements of a Not-for- Profit
    (a) Tournament Fund- ₹ 80,000
    (b) Tournament expenses- ₹ 14,000
  2. At what rate is interest payable on the amount remaining unpaid to the executor of deceased
    partner, in absence of any agreement among partners, when (s)he opts for interest and not share
    of profit.
    (a) 12% p.a.
    (b) 8% p.a.
    (c) 6% p.a.
    (d) 7.5%p.a.
  3. State the order of payment of the following, in case of dissolution of partnership firm.
    i. to each partner proportionately what is due to him/her from the firm for advances as
    distinguished from capital (i.e. partner’ loan);
    ii. to each partner proportionately what is due to him on account of capital; and
    iii. for the debts of the firm to the third parties;
  4.  A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,000 respectively. They
    admitted C for 1/3rd share in the profits C brought proportionate amount of capital. The Capital
    brought in by C would be:
    a) ₹ 90,000
    b) ₹ 45,000
    c) ₹ 5,400
    d) ₹ 36,00
  5.  Amit, a partner in a partnership firm withdrew ₹ 7,000 in the beginning of each quarter. For
    how many months would interest on drawings be charged?
  6. Ankit, Unnati and Aryan are partners sharing profits in the ratio of 5:3:2. They decided to share
    future profits in the ratio of 2:3:5 with effect from 1st April,2018. They had the following
    balance in their balance sheet, passing necessary Journal Entry:
    Particulars Amount(₹)
    Profit and loss Account (Dr) 60,500
  7.  A and B are partners in a firm. They admit C as a partner with 1/5th share in the profits of the
    firm. C brings ₹ 4,00,000 as his share of capital. Calculate the value of C’s share of Goodwill
    on the basis of his capital, given that the combined capital of A and B after all adjustments is ₹
  8. Riyansh, Garv and Kavleen were partners in a firm sharing profit and loss in the ratio of 8:7:5.
    On 2nd November 2018, Kavleen died. Kalveen’s share of profits till the date of her death was
    calculated at₹ 9,375. Pass the necessary journal entry.
  9. A and B are partners in a firm sharing profits and losses in the ratio of 3:2.On 1st April, 2019
    they decided to admit C their new ratio is decided to be equal. Pass the necessary journal entry
    to distribute Investment Fluctuation Reserve of₹ 60,000 at the time of C’s admission, when
    Investment appear in the books at₹ 2,10,000 and its market value is ₹1,90,000.
  10.  ‘Complete the following statement’
    When a liability is discharged by a partner, at the time of dissolution, Capital Account is
    credited because ______________ .
  11. A and B are in partnership sharing profits and losses in the ratio of 3:2. They admit C into
    partnership with 1/5th share which he acquires equally from A and B. Accountant has calculated
    new profit sharing ratio as 5:3:2. Is accountant correct?
  12. Wellness Co. Ltd. has issued 20,000, 9% Debentures of ₹ 100 each at a premium of 10% on 1st
    April, 2018 redeemable as follows:
    31st March, 2021 – 10,000 debentures
    31st March, 2022 – 4,000 debentures
    31st March, 2023 – balance debentures.
    It transferred to Debentures Redemption Reserve the required amount as applicable rules of the
    Companies Act and Rules, 2014 on due date. How much amount will be transferred to General
    Reserve on 31st March, 2021
    a) ₹ 1,00,000
    b) ₹ 2,50,000
    c) ₹ 5,00,000
    d) ₹ 20,00,000
  13. A portion of share capital that is reserved by the company and will be utilized only on the
    happening of winding up of the company is called ________.
  14.  a) Calculate the amount of medicines consumed during the year ended 31st March,2019
    Particulars Amount (₹)
    Opening Stock of Medicines 50,000
    Closing stock of Medicines 45,000 more than
    opening stock
    Amount paid for medicines during the year 2,00,000
    Opening Creditors 20,000
    Closing Creditors 50% of opening creditors
    Distinguish between Income and Expenditure Account and Receipt and payment Account on
    basis of :-
    i. Nature
    ii. Nature of items
    iii. Period
  15.  Danish, Ana and Pranjal are partners in a firm sharing profits and losses in the ratio of 5:3:2.
    Their books are closed on March 31st every year.
    Danish died on September 30th , 2019, The executors of Danish are entitled to:-
    i. His share of Capital i.e. ₹ 5,00,000 along-with his share of goodwill. The total goodwill
    of the firm was valued at ₹ 60,000.
    ii. His share of profit up to his date of death on the basis of sales till date of death. Sales
    for the year ended March 31, 2019 was ₹ 2,00,000 and profit for the same year was 10%
    on sales. Sales shows a growth trend of 20% and percentage of profit earning is reduced
    by 1%.
    iii. Amount payable to Danish was transferred to his executors.
    Pass necessary Journal Entries and show the workings clearly.
  16. Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6:4:1. Komal is
    guaranteed a minimum profit of ₹ 2,00,000. The firm incurred a loss of ₹22,00,000 for the year
    ended 31st March,2018. Pass necessary journal entry regarding deficiency borne by Maanika
    and Bhavi and prepare Profit and Loss Appropriation Account.
    The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended
    31st March, 2017, ₹ 80,000 in the ratio of 3:3:2 without providing for the following
    a) Alia and Chand were entitled to a salary of ₹ 1,500 each p.m.
    b) Bhanu was entitled for a salary of ₹ 4,000 p.a.
    Pass the necessary Journal entry for the above adjustments in the books of the firm. Show
    workings clearly.
  17. Bliss Products Ltd. registered with capital of ₹ 90,00,000 divided into 90,000 equity shares of ₹
    100 each. The company issued prospectus inviting applications for 50,000 equity shares of ₹
    100 each payable as ₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and balance on
    second call.
    Applications were received for ₹40,000 shares. Raman to whom 1600 shares were allotted
    failed to pay final call money and these shares were forfeited. Of the forfeited shares, 600
    shares were reissued to Sukhman, credited as fully paid for ₹ 90 per share.
    Present the Share Capital as per Schedule III of Companies Act, 2013
  18. The firm of R, K and S was dissolved on 31.3.2019. Pass necessary journal entries for the
    following after various assets (other than cash and Bank) and the third party liabilities
    had been transferred to realisation account.
    (i) K agreed to pay off his wife’s loan of ₹ 6,000.
    (ii) Total Creditors of the firm were ₹ 40,000. Creditors worth ₹10,000 were given a
    piece of furniture costing ₹8,000 in full and final settlement. Remaining
    creditors allowed a discount of 10%.
    (iii) A machine that was not recorded in the books was taken over by K at ₹ 3,000
    whereas its expected value was ₹ 5,000.
    (iv) The firm had a debit balance of ₹ 15,000 in the profit and loss A/c on the date of
  19.  From the following Receipts and Payments Accounts of Rolaxe Club, for the year ended 31st
    March, 2019. Prepare Income and Expenditure Account for the year ended 31st March, 2019.
    Receipts and Payments Account for the year ended 31st March, 2019
    Receipts Amount (₹) Payments Amount (₹)
    To Balance b/d By Advertisement 13,100
    Cash in hand 17,050 By Rent rates and Taxes 14,000
    Current a/c with bank 18,570 By Repairs 15,000
    To Donations 20,000 By Printing and Stationery 16,000
    To Proceeds from charity
    16,200 By Government Bonds 5,000
    To Subscription 52,000 By Telephone Expenses 1,000
    To Life membership fees 5,250 By Furniture (purchased on
    st July, 2018)
    To Entrance Fees 6,000 By Balance c/d
    To Interest on investment @
    7% for the year.
    7,200 Cash in hand 3,170
    Cash at Bank 5,000
    1,42,270 1,42,270
    Additional Information :-
    i) Depreciate furniture by 15% p.a.
    ii) There were 416 Life Members on 31.3.2018 the subscription payable by each
    member, to be a life time member is ₹ 125
    Subscription outstanding on 31st March, 2018 6,000
    Subscription outstanding on 31st March, 2019 7,000
    Subscription received in advance on 31st March, 2018 4,000
    Subscription received in advance on 31st March, 2019 5,000
  20.  Journalise the following transactions
    a) Mehar Ltd. issued ₹ 1,00,000, 12% Debentures of ₹ 100 each at a premium of 5%
    redeemable at a premium of 2%
    b) 12 % Debentures were issued at a discount of 10% to a vendor of machinery for
    payment of ₹ 9,00,000
    c) Issue of 10,000 11% debentures of ₹ 100 each as collateral in favour of State Bank of
    India. Company opted to pass necessary entry for issue of debentures.
    Faith and Belief Ltd has total redeemable debentures of ₹ 5,00,000. It decides to redeem
    these debentures in two instalments of ₹ 3,00,000 and ₹ 2,00,000 on December 31st
    2018 and March 31st 2020 respectively. Assuming that the Company has sufficient
    funds in Debenture Redemption Reserve Account, pass necessary journal entries for the
    year ending March 31st 2020.
  21. Gautam and Yashica are partners in a firm, sharing profits and losses in 3:1 respectively. The
    balance sheet of the firm as on 31st March 2018 was as follows:
    Balance Sheet
    As at 31.3.2018
    Liabilities Amt(₹) Assets Amt(₹)
    Sundry creditors
    Bills payable
    Gautam 4,00,000
    Yashica 1,00,000
    Cash in hand
    5,80,000 5,80,000
    Asma is admitted as a partner for 3/8th
    share in the profits with a capital of ₹2,10,000
    and ₹50,000 for her share of goodwill. It was decided that:
    i. New profit sharing ratio will be 3:2:3
    ii. Machinery will depreciated by 10% and Furniture by ₹5,000.
    iii. Stock was re-valued at ₹ 2,10,000.
    iv. Provision for doubtful debts is to be created at 10% of debtors.
    v. The capitals of all the partners were to be in the new profit sharing ratio on basis
    of capital of new partner any adjustment to be done through current accounts.
    Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the new firm.
    X,Y and Z were in partnership sharing profits in proportion to their capitals. Their Balance
    Sheet as on 31st March, 2018 was as follows:
    Liabilities Amount (₹) Particulars Amount (₹)
    Sundry Creditors 16,600 Cash 15,000
    Workmen’s Compensation
    9,000 Debtors 21,000
    Less-Prov for Doubtful Debts (1400) 19,600
    General Reserve 6,000 Stock 19,000
    Capitals :
    X 90,000
    Y 60,000
    Z 30,000
    2,11,600 2,11,600
    On the above date, Y retired owing to ill health. The following adjustments were agreed upon
    for calculation of amount due to Y.
    a) Provision for Doubtful Debts to be increased to 10% of Debtors.
    b) Goodwill of the firm be valued at ₹ 36,000 and be adjusted into the Capital Accounts of
    X and Z, who will share profits in future in the ratio of 3:1.
    c) Included in the value of Sundry Creditors was ₹ 2,500 for an outstanding legal claim,
    which will not arise.
    d) X and Z also decided that the total capital of the new firm will be ₹ 1,20,000 in their
    profit sharing ratio. Actual cash to be brought in or to be paid off as the case may be.
    e) Y to be paid ₹ 9,000 immediately and balance to be transferred to his Loan Account.
    Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm
    after Y’s retirement.
  22. Saregama Ltd invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium
    of ₹ 10. The amount was payable as follows
    On Application – ₹ 30
    On allotment – ₹ 30 (including a premium of ₹ 10)
    On 1st call – ₹ 30
    On Final Call Balance
    Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all
    applicants. Excess money received on application was adjusted on sums due on allotment.
    Dhwani, who was allotted 1,600 shares, failed to pay allotment money and Sargam who applied
    of 6,000 shares did not pay 1st call money. These shares were forfeited immediately after 1st
    call. 2,000 of these shares (including all shares of Dhwani were issued to Tarang for ₹ 95 per
    share as 80 paid up. Pass necessary journal entries in books of Saregama Ltd. by opening call in
    arrear, call in advance account, if final call has not been made.
    a. X Ltd. forfeited 10 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid
    application and allotment money of ₹ 5 per share. Out of these, 8 shares were re-issued
    to Y for ₹8 per share at ₹ 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 ₹ 4 per share including premium of ₹ 2 on
    which he had paid application money of ₹ 2 only. Pass necessary journal entries for
    forfeiture of shares by opening call in arrear, call in advance account.
    c. Crown Ltd forfeited 50 shares of ₹ 10 each, for non- payment of final call money of ₹ 3
    per share. Out of these 20 shares were reissued to Taj at₹ 8 per share. Record the
    journal entries for forfeiture and reissue of shares assuming that the company maintains
    call in arrear, call in advance account.
    PART B
    OPTION 1
    (Analysis of Financial Statements) What will be the effect on current ratio if a bills payable is discharged on maturity? 1
    24 The two basic measures of operational efficiency of a company are
    a) Inventory Turnover Ratio and Working Capital Turnover Ratio
    b) Liquid Ratio and Operating Ratio
    c) Liquid Ratio and Current Ratio
    d) Gross Profit Margin and Net Profit Margin
    25 Debt Equity Ratio of a company is 1:2. Purchase of a Fixed asset for ₹ 5,00,000 on long term
    deferred payment basis will increase, decrease or not change the ratio?
    26 State the importance of financial analysis for labour unions. 1
    27 M/s Mevo and Sons.; a bamboo pens producing company, purchased a machinery for ₹
    9,00,000. It received dividend of ₹ 70,000 on investment in shares. The company also sold an
    old machine of the book value of ₹ 79,000 at a loss of ₹ 10,000. Compute Cash flow from
    Investing Activities.
    28 Common size analysis is also known as ———————— analysis. (fill in the blank) 1
    29 While preparing Cash Flow Statement, match the following activities
    I. Payment of cash to acquire
    Debenture by an Investing
    a. Financing activity
    II. Purchase of Goodwill b. Investing Activity
    III. Dividend paid by manufacturing
    c. Operating activity
    30 From the following details calculate Interest Coverage Ratio:
    Net profit after tax – ₹ 7,00,000
    6% debentures of ₹ 20,00,000
    Tax Rate 30%
    Under which major heads and sub-heads will the following items be placed in the Balance
    Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
    (i) Debentures with maturity period in current financial year
    (ii) Securities Premium Reserve
    (iii) Provident Fund
    31 Following information is extracted from the Statement of Profit and Loss of Crypto Finance
    Ltd. For the year ended 31st March 2017 and 31st March 2018. Fill in the missing figures
    Comparative Statement of Profit and Loss
    for the years ended 31st March 2017 and 31st March 2018
    Particulars 2016-17 (₹) 2017-18 (₹) Absolute
    Decrease (₹)
    Decrease (%)
    Revenue from
    10,00,000 ? 2,00,000 20%
    Add other Income ? 60,000 ? 20%
    Total Revenue ? 12,60,000 ? 20%
    Less Employee
    Benefit Expenses
    50,000 60,000 10,000 ?
    Profit before tax 10,00,000 12,00,000 2,00,000 ?
    Less Tax (50%) 5,00,000 6,00,000 1,00,000 ?
    Profit after tax 5,00,000 6,00,000 1,00,000 20%
    From the following Balance Sheet of R Ltd., Prepare a Common Size Statement
    Balance Sheet As at 31st March, 2019.
    Particulars Note
    1. Shareholder’s Funds:
    a. Share Capital 5,00,000 4,00,000
    b. Reserve and Surplus 1,60,000 1,20,000
    2. Current Liabilities:
    a. Trade Payable 1,40,000 80,000
    Total 8,00,000 6,00,000
    1. Non-Current Assets:
    a. Fixed Assets:
    i. Tangible Assets 3,20,000 2,40,000
    ii. Intangible Assets 40,000 60,000
    2. Current Assets
    a. Inventories 1,60,000 60,000
    b. Trade Receivables 2,40,000 2,00,000
    c. Cash and Cash Equivalents 40,000 40,000
    Total 8,00,000 6,00,000
    32 From the following Balance Sheet of Dreams Converge Ltd as at 31.3.2018 and 31.3.2017;
    Calculate Cash from operating activities. Showing your workings clearly
    Particulars Note
    1. Shareholder’s Fund: 7,00,000 5,00,000
    a. Share Capital
    b. Reserve and Surplus 3,50,000 2,00,000
    2. Non-Current Liabilities:
    Long Term Borrowings 50,000 1,00,000
    3. Current Liabilities:
    a. Trade Payables 1,22,000 1,05,000
    b. Short term Provisions (Provision for tax) 50,000 30,000
    TOTAL 12,72,000
    II. ASSETS :
    1. Non Current Assets:
    a. Fixed Assets:
    i. Tangible Assets 1 5,00,000 5,00,000
    ii. Intangible Assets 2 95,000 1,00,000
    b. Non-current Investments 1,00,000 Nil
    2. Current Assets:
    a. Inventory 1,30,000 55,000
    b. Trade Receivable 1,47,000 80,000
    c. Cash and Cash Equivalents 3,00,000 2,00,000
    TOTAL 12,72,000
    Particulars 31.3.2018
    1 Tangible Assets:
    Machinery 2,80,000 2,00,000
    Accumulated depreciation (1,00,000) (80,000)
    1,80,000 1,20,000
    Equipment 3,20,000 3,80,000
    5,00,000 5,00,000
    2 Intangible Assets :
    Goodwill 95,000 1,00,000
    Additional Information:
    i. Machinery of the book value of 80,000 (accumulated depreciation ₹ 20,000 ) was
    sold at a loss of ₹ 18,000
    PART B
    OPTION 2
    (Computerised Accounting)
  23.  List any two attributes of information to be stored in Payroll data base. 1
  24. Which of the following is not an advantage of computerised accounting system
    a) Efficient record keeping
    b) Ensures effective control over the system.
    c) Generation of reports and information in fixed format
    d) Economy in the processing of accounting data.
  25. Arrange the following steps of constructing Bank Reconciliation Statements in Tally in
    chronological sequence
    a) Bringing up the monthly summary of Bank Book. Bringing the cursor to the first month
    and pressing enter.
    b) The display becomes Edit Screen in Reconciliation mode. The primary components are
    A column for the ‘Bankers Date’ Amounts not reflected in banks and balance as per
    c) This Brings up the vouchers for the month. Since this is a bank account, an additional
    button F5: reconcile will be visible on the right Press F5
  26. Match the following
    a) Single valued
    i) Attributes that can be divided in smaller sub parts to
    represent some more basic attribute with
    independent meaning
    b) Composite attribute ii) Attributes that cannot be further sub divided in
    smaller parts.
    c) Atomic attributes iii) Attributes with single value for an entity
  27. What is the activity sequence of the basic information processing mode 1
  28.  Differentiate between Generic software and Specific Software on basis of cost of installation
    and maintenance
  29. Which of the following situations may not require the use of null value
    a) When a particular attribute does not apply to an entity.
    b) Value of an attribute is unknown, although it exist;
    c) Unknown because it does not exist.
    d) Multi value attributes may be nested (or grouped) to constitute complex ones.
  30. Explain adjusting entries.
    Explain ‘Transparency control’ and ‘Scalability’ as features of Computerized Accounting
  31. Name and explain the function which returns the future value of an investment which has
    constant payment and interest.
  32. What is meant by conditional formatting? Give its two uses and three benefits. 6
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