Delhi Public School, Sitapur

Pre-Board Exam-2 2024-25

Time: 3 Hrs. Class XII Subject – Accountancy MM: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 is compulsory for all candidates.

4. Part - B has 8 Questions.

5. Question 1 to 16 and 27 to 30 carries 1 mark each.

6. Questions 17 to 20, 31and 32 carries 3 marks each.

7. Questions from 21 ,22 and 33 carries 4 marks each

8. Questions 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.

Part A:- Accounting for Partnership Firms and Companies

1. A and B are partners in a firm. They admit C as a partner with 1 th share in the profits of the firm. C brings ₹
5 [1]
1,50,000 as his share of capital. The value of the total assets of the firm is ₹ 5,50,000 and outside liabilities
are valued at ₹ 70,000 on that date. C’s share of hidden goodwill will be:
a) ₹ 2,70,000 b) ₹ 24,000

c) ₹ 1,20,000 d) ₹ 54,000
2. Assertion (A): Rent payable to a partner is debited to Profit and Loss Account and not debited to Profit
[1]
and Loss Appropriation Account.
Reason (R): Rent payable to a partner is a charge against profits and not an appropriation of profit. Hence, it
is debited to Profit and Loss Account.
a) Both A and R are true and R is the
b) Both A and R are true but R is not the
correct explanation of A.
correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Specify the rate of interest to be used on calls in arrear as per the TABLE - F. [1]

a) 20% p.a. b) 26 % p.a.

c) 10% p.a. d) 16% p.a.

OR
 A Co.Ltd. issued ₹ 40,000; 12% Debentures at a discount of 10% redeemable at par. Pass Journal Entries

a) Bank A/c Dr. 40,000 b) Bank A/c Dr. 36,000

To 12% Debentures A/c 36,000 Discount on Issue of Debentures A/c Dr.
To Discount on Issue of Debentures A/c 4,000
4,000 To 12% Debentures A/c 40,000
c) 12% Debenture Application A/c Dr. d) Bank A/c Dr. 36,000
36,000 Discount on Issue of Debentures To 12% Debenture Application A/c 36,000
A/c Dr. 4,000
To 12% Debentures A/c 40,000
4. Which of the following does not result in the change in the profit sharing ratio? [1]

a) When one or more partners acquire an b) When a partner dies.

interest in the business from anotherpartner
or partners.
c) When a partner is admitted in the firm. d) When a partner goes on a vacation.
OR
X and Y are partners in the ratio of 3 : 2. Their capitals are ₹ 2,00,000 and ₹ 1,00,000 respectively. Interest

on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹ 60,000 for the year ended 31st March 2023.
Interest on Capital will be

a) X ₹ 16,000; Y ₹ 8,000 b) X ₹ 14,400; Y ₹

9,600

c) No Interest will be allowed d) X ₹ 8,000; Y ₹ 4,000

[1]
5. Which of the following cannot be a partner in the firm?
i. A person who is insane (lunatics or unsound mind)
ii. A person who is disqualified by law
iii. A minor
iv. both (a) and (b)

a) Option (iii) b) Option (ii)

c) Option (iv) d) Option (i)

6. Luxor Pens Ltd. issued 50,000, 8% Debentures of ₹ 100 each at a discount of 5% and redeemable at a [1]
premium. Loss on Issue of Debentures was written off ₹ 5,00,000 from Securities Premium and Statement of
Profit & Loss. What is the premium payable per debenture on redemption?
a) ₹ 20 b) ₹ 5

c) ₹ 15 d) ₹ 10
OR

On 1st April, 2020, Elpis Ltd. issued 4,000, 8% Debentures of ₹ 100 each, to be redeemed in four equal annual

instalments beginning from 31st March, 2022. The interest on these debentures was payable half yearly, on 30th

September and 31st March every year. What is the journal entry to close the Interest on Debentures A/c on 31st
March, 2023?

a) Debit Statement of P/L ₹ 32,000; Credit b) Debit Statement of P/L ₹ 16,000; Credit
 Interest on Debentures A/c ₹ 32,000. Interest on Debentures A/c ₹ 16,000.

c) Debit Statement of P/L ₹ 8,000; d) Debit Statement of P/L ₹ 24,000;

Credit Interest on Debentures A/c ₹ Credit Interest on Debentures A/c ₹
8,000. 24,000.
7. Assertion (A): Reserve Capital and Capital Reserve are the same. [1]
Reason (R): Reserve Capital is a part of Subscribed Capital which the Company may decide to call at the
time of winding up of the Company.
a) Both A and R are true and R is the
b) Both A and R are true but R is not the
correct explanation of A.
correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. The Partnership Deed does not have a clause on rate of interest to be paid on amount due to heirs of [1]
deceased partner. At what rate interest on the outstanding amount shall be payable?
a) 8% p.a. b) At the rate of interest demanded by the heirs
of the deceased partner.

c) At the rate of interest provided in d) At the rate at which the banks grant loan.
the Partnership Act, 1932.

OR
Match the following : if Interest on drawings is charged @ 12% p.a.

(a) Partner withdrew ₹ 1,000 per month in the beginning of every month (i) 600

(b) Partner withdrew ₹ 1,000 per month at the End of every month (ii) 360

(c) Partner withdrew ₹ 2,000 per month in the End of every Quarter (iii) 660

(d) Partner withdrew ₹ 2,000 per month in the Beginning of every Quarter (iv) 780

a) (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i) b) (a) - (iv), (b) - (iii), (c) - (ii), (d) - (i)

c) (a) - (iv), (b) - (iii), (c) - (i), (d) - (ii) d) (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: [2]
Govind and Vinod formed a partnership to sell low sodium, plant based vegan snacks. Since both of them had a
family, they decided to withdrew a salary of ₹ 12,000 per quarter. Govind also withdrew ₹ 1,00,000 on 31st
December, 2020 to get his wife treated for Covid 19.
The partnership deed provided for 10% interest on drawings.
Vinod introduced ₹ 50,000 as additional capital on 31st January, 2021. The net distributable profit was ₹
2,00,000 which was divided by the partners after providing 25% to General Reserve.
9. Total amount of salary credited to partners’ account is .

a) ₹ 12,000 b) ₹ 48,000

c) ₹ 96,000 d) ₹ 24,000
1. Interest on Govind’s drawings will be .

a) ₹ 10,000 b) ₹ 2,500

c) ₹ 5,000 d) ₹ 7,500
2. What is the other name of Partnership Deed? [1]
 a) Certificate of Registration b) Articles of Partnership

c) Articles of Association d) Legal Promissory Note

3. Renu Ltd. invited application for 70,000 shares @ 30 each at par and received applications for only 68,000 [1]
shares. All calls were made and duly received except the final call of ₹ 10 per share on 5,000 shares.
These shares were forfeited. Amount of Share Capital to be shown in the Balance Sheet:
a) 19,50,000 b) 21,00,000

c) 20,50,000 d) 19,90,000
4. 1,000 shares of ₹ 10 each issued at 30% premium (to be paid on allotment) were forfeited for non-payment of
[1]
₹ 2 per share on first call and ₹ 2 per share on final call. Share Forfeiture Account will be credited with:
a) ₹ 9,000 b) ₹ 3,000

c) ₹ 4,000 d) ₹ 6,000
5. A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. A is given a guarantee that his share of profits will
[1]
not be less than ₹ 1,25,000 p.a. Profit at the end of the year is ₹ 2,70,000. Deficiency if any, would be borne by
B and C equally.
B’s share of profit after meeting deficiency (if any) will be:

a) 90,000 b) 87,500

c) 92,500 d) 87,000
1
6. A and B are partners sharing profits and losses in the ratio of 3 : 2. C is admitted into partnership for 5 th share [1]
in profit. He pays ₹ 1,00,000 as goodwill. The ratio of the partners A, B and C in the new firm would be 3 : 1 :
1. Goodwill will be credited to:
a) only A ₹ 1,00,000 b) A ₹ 75,000; B ₹ 25,000

c) only B ₹ 1,00,000 d) A ₹ 60,000; B ₹

40,000 OR
Rajni and Radha were partners with capitals of ₹ 2,00,000 and ₹ 4,00,000 respectively. Roshni was admitted for 41
th share in the profits. Roshni was unable to bring her share of goodwill premium in cash. The journal entry
recorded for goodwill premium is given below:

Date Particulars L.F. Dr.(Amount) Cr.(Amount)

Roshni Current A/c Dr. 50,000

To Rajni's Capital A/c 10,000

To Radha's Capital A/c 40,000

(Adjustment of goodwill premium on Radha’s Admission)

The new profit sharing ratio will be

a) 17 : 28 : 15 b) 6 : 9 : 5

c) 9 : 6 : 5 d) 8 : 37 : 15
7. How much amount will be paid to A, if his opening capital is ₹ 2,00,000 and his share of realisation [1]
profit amounts to ₹ 10,000 and he has taken over assets valuing ₹ 25,000 from the firm?
a) ₹ 2,35,000 b) ₹ 1,65,000
 c) ₹ 1,85,000 d) ₹ 2,15,000
8. Give any two features of non-purchased goodwill. [3]
9. Explain briefly the meaning of guarantee of minimum profit. [3]
OR
A, B and C are partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their capitals (fixed) are ₹ 1,00,000; ₹ 80,000

and ₹ 70,000 respectively. For the year ended 31st March, 2023, interest on capital was credited to them @ 9% p.a.
instead of 12%. Give the adjustment Journal entry.
10. What is Capital Reserve? [3]
OR
500 shares of ₹ 10 each, issued at a premium of ₹ 1 on which ₹ 8 (including premium) was called and ₹ 6 (including
premium) was paid, have been forfeited. 400 of these shares were re-issued as fully paid in such a way that ₹ 800
were transferred to capital reserve. Journalise.
11. The capital of the firm of Anu and Benu is ₹ 1,00,000 and the market rate of interest is 15%. The annual salary
[3]
to partners is ₹ 6,000 each. The profits for the last 3 years were ₹ 30,000; ₹ 36,000 and ₹ 42,000. Goodwill is
to be valued at 2 years purchase of the last 3 years' average super-profits. Calculate the goodwill of the firm.
12. Kavya Ltd. forfeited 500 shares of ₹ 10 each for non-payment of first call of ₹ 3 per share. The final call of ₹
[4]
2 per share is yet to be made. All the forfeited shares were reissued. Pass the necessary Journal entries in the
following cases:
Case 1: If the shares are reissued for ₹ 5 per share.
Case 2: If the shares are reissued for ₹ 9 per share, ₹ 8 called-up.
Case 3: If the shares are reissued for ₹ 8 per share, fully paid-up.
Case 4: If the shares are reissued for ₹ 12 per share, fully called-up.

13. Rohit and Hitesh were partners in a firm sharing profit and losses equally. On 31st March, 2023 their firm [4]
was dissolved. On the date of dissolution their Balance Sheet showed stock of ₹ 60,000 and creditors of ₹
70,000. After transferring stock and creditors to realisation account the following transactions took place:
i. Rohit took over 40% of total stock at 20% discount.
ii. 30% of total stock was taken over by creditors of ₹ 20,000 in full settlement.
iii. Remaining stock was sold for cash at a profit of 25%.
iv. Remaining creditors were paid in cash at a discount of 10%.
Pass necessary journal entries for the above transactions in the books of the firm.
14. i. R.P. Ltd. forfeited 1,500 shares of Rahim of ₹ 10 each issued at a premium of ₹ 3 per share for non- [6]
payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount
was payable as follows:
On application - ₹ 3 per share
On allotment (including premium) - ₹ 5 per share
On first call - ₹ 3 per share
On final call - Balance
Final call has not been called up. 1,000 of the forfeited shares were reissued for ₹ 8,500 as fully paid-up.
Record the necessary journal entries for the above transactions in the books of R.P. Ltd.
ii. Max Ltd. forfeited 500 shares of ₹ 100 each for non-payment of first call of ₹ 20 per share and final call of
₹ 25 per share. 250 of these shares were re-issued at ₹ 50 per share fully paid-up.
 Pass the necessary journal entries in the books of Max Ltd. for forfeiture and re-issue of shares. Also
prepare the Share Forfeiture Account.
OR
Zee Ltd. invited applications for issuing 3,40,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The
amount was payable as follows:
On application ₹ 4 per share (including ₹ 2 premium)
On allotment ₹ 5 per share (including ₹ 2 premium)
On First and Final call - Balance.
Applications for 6,00,000 shares were received. Application for 1,80,000 shares were rejected and application money
was refunded. Shares were allotted on prorata basis to the remaining applicants. Excess money received with
applications was adjusted towards sum due on allotment. Yamini who had applied for 2,100 shares failed to pay
allotment money and her shares were forfeited immediately. Vani to whom 6,800 shares were allotted paid her entire
share money due on allotment. Afterwards First and Final call was made and was duly received. Out of the forfeited
shares 850 shares were reissued to Vansh at ₹ 8 per share fully paid up. Pass necessary journal entries for the above
transactions in the books of the company by opening calls-in-arrears and calls-in-advance accounts.
15. The following is the balance sheet of A, B and C sharing profits and losses in proportion of 6 : 5 : 3 [6]
respectively:-

Liabilities ₹ Assets ₹

Creditors 18,900 Cash 1,890

Bills Payable 6,300 Debtors 26,460

General Reserve 10,500 Stock 29,400

Capitals:- Furniture 7,350

A 35,400 Land & Building 45,150

B 29,850 Goodwill 5,250

C 14,550 79,800

1,15,500 1,15,500

They agreed to take D into partnership and give him 81 th share on the following terms:-
i. That Furniture be depreciated by ₹ 2,920.
ii. An Old Customer, whose account was written off as bad, has promised to pay ₹ 2,000 in full settlement
of his full debt.
iii. That a provision of ₹ 1,320 be made for outstanding repair bills.
iv. That the value of land and building having appreciated be brought upto ₹ 56,910.
v. That D should bring in ₹ 14,700 as his capital.
vi. That D should bring in ₹ 14,070 as his share of goodwill.
vii. That after making the above adjustments, the capital accounts of old partners be adjusted on the basis of
the proportion of D’s Capital to his share in business, i.e., actual cash to be paid off or brought in by the old
partners, as the case may be.
Pass the necessary journal entries and prepare the balance sheet of the new firm.
OR
 A, B and C were partners in a firm whose Balance Sheet as at 31st March, 2023 was as below:

Liabilities ₹ Assets ₹

Creditors 7,096 Cash at Bank 6,496

General Reserve 3,000 Debtors 9,000

Capitals: A 8,000 Stock 10,600

B 6,000 Furniture 2,000

C 4,000 18,000

28,096 28,096
B retired on that date and in this connection it was decided to make the following adjustments:
a. To reduce stock and furniture by 5% and 10% respectively; and
b. To provide for doubtful debts at 5% on debtors.
Rent outstanding (not provided for as yet) was ₹ 260. Goodwill was valued at ₹ 4,200. A and C decided:
i. To share profits and losses in 5 : 3 respectively;
ii. To re-adjust their capitals in the profit-sharing ratio; and
iii. To bring in sufficient cash to pay off B immediately and to leave a balance of ₹ 1,000 in the Bank. B was paid
off. Give Journal entries to record the above and draft the Balance Sheet of the new firm.

16. X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Balance Sheet of the firm as at 31st [6]
March, 2023 was as follows:

Liabilities ₹ Assets ₹

Creditors 21,000 Cash at Bank 5,750

Workmen Compensation Reserve 12,000 Debtors 40,000

Investments Fluctuation Reserve 6,000 Less: Provision for Doubtful Debts (2,000) 38,000

Capital A/cs; Stock 30,000

X 68,000 Investment (Market Value ₹ 17,600) 15,000

Y 32,000 Patents 10,000

Z 21,000 1,21,000 Machinery 50,000

Goodwill 6,000

Advertisement Expenditure 5,250

1,60,000 1,60,000

Z retired on 1st April, 2023 on the following terms:

i. Goodwill of the firm is to be valued at ₹ 34,800.
ii. Value of Patents is to be reduced by 20% and that of machinery to 90%.
iii. Provision for doubtful debts is to be created @ 6% on debtors.
iv. Z took over the investment at market value.
v. Liability for Workmen Compensation to the extent of ₹ 750 is to be created.
 vi. A liability of ₹ 4,000 included in creditors is not to be paid.
vii. Amount due to Z to be paid as follows:
₹ 5,067 immediately, 50% of the balance within one year and the balance by a draft for 3 Months.
Give necessary Journal entries for the treatment of goodwill, prepare Revaluation Account, Capital Accounts
and the Balance Sheet of the new firm.
17. Ravi Ltd. issued 5,000, 12% Debentures of ₹ 100 each, at par, payable as follows: On Application ₹ 20; [6]
On Allotment ₹ 20; On First Call ₹ 30; and On Final Call ₹ 30.
Public applied for 6,000 debentures. Applications for 4,500 debentures were accepted in full. Applications for
800 debentures were allotted 500 debentures and applications for 700 debentures were rejected. Money
overpaid on applications was utilized towards allotment.
Pass journal entries assuming that all money due was duly received, except the final call on 200 debentures.
Part B :- Analysis of Financial Statements
18. For whom, analysis of financial statements is not significant? [1]
i. Share Market
ii. Taxing Officer
iii. Chief Military Officer
iv. Shareholder

a) Option (ii) b) Option (i)

c) Option (iii) d) Option (iv)

OR
Interest accrued and due on debentures appear in a company’s balance sheet under the sub-head:

a) Trade Payables b) Short-term Provisions

c) Other Current Liabilities d) Short-term Borrowings

19. Cost of Revenue from Operations (Cost of Goods Sold) 6,00,000 [1]

Purchases 5,80,000

Direct Expenses 40,000

Opening Inventory 70,000

Closing Inventory will be:

a) 20,000 b) 70,000

c) 90,000 d) 50,000
20. Paid ₹ 5,00,000 to purchase shares of Shruti Ltd. and received dividend of ₹ 50,000 after purchase. [1]
These transactions will result in
a) Cash Used in Investing Activities
b) Cash generated from Financing Activities
₹ 4,50,000.
₹ 5,50,000.
c) Cash Used in Investing Activities
d) Cash generated from Financing Activities ₹
₹ 5,00,000.
4,50,000.
OR
What will be the effect of a decrease in Trade receivables on cash Inflow?
 a) Less in financing activities b) Add in financing activities

c) Add in operating activities d) Less in operating activities

21. Is payment for the purchase of fixed assets will be classified as an operating activity for both finance and [1]
non- finance company?
a) No these are financing activities b) Yes these are Operating activities

c) Not to be recorded d) No these are investing activities

22. Under which major headings and sub-headings the following items will be shown in the Balance Sheet of
[3]
a company as per Schedule III of the Companies Act, 2013?
i. Provision for Employee Benefits
ii. Calls-in-Advance
23. Calculate current assets of a company from the following information:
[3]
i. Inventory turnover 4 times.
ii. Inventory in the end is ₹ 20,000 more than inventory in the beginning.
iii. Revenue from Operations ₹ 3,00,000
iv. Gross profit ratio 20%.
v. Current liabilities ₹ 40,000
vi. Quick ratio 0.75.
24. From the following information, prepare Comparative Statement of Profit & Loss:
[4]
Particulars 31st March, 2023 31st March, 2022

Revenue from Operations ₹ 30,00,000 ₹ 24,00,000

Other Income ₹ 6,00,000 ₹ 4,00,000

Cost of Materials Consumed ₹ 10,00,000 ₹ 8,00,000

Changes in inventories of Finished Goods and Work-in-Progress ₹ 2,00,000 ₹ 1,00,000

Other Expenses (% of Cost of Revenue from Operations) 20% 20%

Tax Rate 40% 40%

OR
Prepare Comparative Statement of Profit and Loss from the following:

31st March 31st March

Particulars
2023 2022

Revenue from Operations (Net Sales) ₹ 5,00,000 ₹ 3,20,000

Purchases of Stock-in-Trade ₹ 4,50,000 ₹ 2,50,000

Change in Inventories of Stock-in-Trade ₹ 50,000 ₹ 50,000

Other Expenses (% of Cost of Revenue from Operations or Cost of Goods

8% 10%
Sold)

Tax 30% 30%

25. From the following Balance Sheet and information of Fly Ltd., prepare Cash Flow Statement: [6]
 Particulars Note 31st March, 31st March,
No. 2023 (₹) 2022 (₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital 1 4,50,000 5,00,000

(b) Reserves and Surplus 2 2,55,000 1,00,000

2. Non-Current Liabilities

Long-term Borrowings (10% Debentures) 2,00,000 1,00,000

3. Current Liabilities

(a) Trade Payables 1,33,000 46,000

(b) Other Current Liabilities 3 5,000 10,000

(c) Short-term Provisions (Provision for Tax) 12,000 24,000

Total 10,55,000 7,80,000

II. ASSETS

1. Non-Current Assets

(a) Property, Plant and Equipment and Intangible Assets: -

6,20,000 5,10,000
Property, Plant and Equipment

(b) 10% Investments 80,000 30,000

2. Current Assets

(a) Current Investments 10,000 8,000

(b) Inventories 90,000 1,00,000

(c) Trade Receivables 4 1,85,000 90,000

(d) Cash and Cash Equivalents 70,000 42,000

Total 10,55,000 7,80,000

Notes to Accounts

Particulars 31st March, 2023 (₹) 31st March, 2022 (₹)

1. Share Capital

Equity Share Capital 3,50,000 3,00,000

12% Preference Share Capital 1,00,000 2,00,000

4,50,000 5,00,000

2. Reserves and Surplus

Securities Premium Reserve 5,000

Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 1,00,000

 3. Other Current Liabilities

Premium on Redemption of Preference Shares 5,000 10,000

4. Trade Receivables

Sundry Debtors 2,00,000 1,00,000

Less: Provision for Doubtful Debts 15,000 10,000

1,85,000 90,000

You are informed that during the year:

i. A machine with a book value of ₹ 40,000 was sold for ₹ 25,000.
ii. Depreciation charged during the year was ₹ 70,000
iii. Preference Shares were redeemed an 31st December, 2022 at a premium of 5%.
iv. An Interim Dividend @ 15% was paid on Equity Shares on 31st January, 2023.
v. Dividend @ 12% was proposed on Preference Shares for the year ended 31st March, 2023 on ₹ 1,00,000
and for the year ended 31st March, 2022 on ₹ 2,00,000.
vi. Fresh Equity Shares were issued at a premium of 10% on 31st March, 2023.