St.

Peter senior secondary school

Subject-Accountancy. Marks- 50

Class- 12th

General Instructions

*Question Paper contains 20 Questions.

*Questions from 1 to 10 carries 1 Marks each

*Questions from 11 to 14 carries 3 marks each

*Questions from 15 to 18 carries 4 marks each

*Questions 19 and 20 carries 6 Marks each.

SECTION -A

Options Common to All Assertion-Reason Based Questions are:

(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the
correct explanation for Assertion (A)

(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the
correct explanation for Assertion (A)

(c) Assertion (A) is false and Reason (R) is true.

(d) Assertion (A) is true and Reason (R) is false.

Q 1. Assertion (A): In the absence of Partnership Deed, interest on loan by

partner is allowed @ 6% p.a.

Reason (R): In the absence of Partnership Deed, interest on loan to partner is

charged @ 6% p.a. In the context of above two statements, which of the
above options is correct?

Q 2. Assertion (A): Each partner is principal as well as an agent for all the
other partners.

Reason (R): As per the definition of Partnership Act, partnership business

may be carried on by all the partners or any of them acting for all.

In the context of above two statements, which of the above options is

correct?
Q.3. A partnership firm has 45 partners. It wants to admit 7 more partners
into partnership. Only more partners can be admitted in the partnership firm
according to Companies Act, 2013?

(a) 1. (b) 6. (c) 5. (d) 3

Q.4. Which one of the following items is not dealt through Profit and Loss
Appropriation Account?

(a) Interest on Capital. (b) Interest on Drawings

(c) Rent paid to partners. (d) Partner's salary

Q.5. Which of the following items cannot be recorded in the capital account
of partners if the capital accounts of partners are fixed?

(a) Drawings. (b) Withdrawal of capital.

(c) Introduction of additional capital.

(d) Opening balance of capital

Q 6. Kanha, Resham and Nisha were partners in a firm. Nisha had given loan
of₹ 1,00,000 to the firm @ 10% p.a. The accountant of the firm is
emphasizing that interest on loan will be paid @ 6% p.a. At what rate the
interest on loan will be paid to Nisha?

(a) 6% p.a. (b) 10% p.a. (c) 8% p.a.

(d) No interest on loan will be paid

Q 7. On 1st January, 2023, Abhishek, a partner, advanced loan of ₹3,00,000

to the firm. In the absence of a partnership agreement, the amount of
interest on the loan for the year ending 31st March, 2023 will be:

(a) 18,000. (b) ₹4,500. (c) ₹9,000 (d) No interest will be provided

Q.8. If a partner withdraws fixed amount at the end of each quarter, interest
on drawings will be charged for _____months.

(a) 9. (b) 7 ½ (c) 6. (d) 4 1/2

Q 9. On the reconstitution of a firm value of furniture increased from

₹7,00,000 to ₹ 8,00,000 and stock reduced to ₹4,00,000 from 4,20,000. Gain
or loss on revaluation will be

(a) Loss 80,000. (b) Gain 80,000.

(c) Gain8,00,000. (d) Loss 1,20,000.

Q.10. Tangible Assets of the firm are 14,00,000 and outside liabilities
are₹4,00,000. Profit of the firm is₹1,50,000 1 and normal rate of return is
10%. The amount of capital employed will be

(a) ₹10,00,000. (b) ₹1,00,000. (c) ₹50,000. (d) ₹20,000.

SECTION -B

Q.11. A and B were partners in a firm sharing profits in the ratio of 5 : 3.

Their fixed capitals on 31st March, 2024 were: A₹60,000 and B₹80,000. They
agreed to allow interest on capital @ 12% p.a. Net Profit of the firm for the
year ended 31st March, 2025 was 12,600.

Pass necessary Journal entries for the above transactions in the books of A
and B. Also show your working notes clearly.

Q.12. Atul and Bhaskar are partners sharing profits in the ratio of 2 : 3. Their
capitals are ₹ 4,00,000 and₹2,00,000 respectively. Interest is to be allowed
on capitals @ 6% p.a., whether the firm earns profit or incurs loss. Profit
before allowing interest on capitals is 30,000.Prepare Profit & Loss
Appropriation Account.

Q 13. Ramesh purchased Bharat's business with effect from 1st April, 2025. It
was agreed that the firm's goodwill will be valued at two years' purchase of
average normal business profit of the last three years. Profits for last three
years ended 31st March, were:

2023 : ₹1,00,000 (including abnormal gain of ₹10,000);

2024 : ₹1,10,000 (after charging abnormal loss of 20,000);

2025 : ₹85,000 (including profit of ₹ 5,000 on sale of fixed asset).

Calculate value of the firm's goodwill.

Q 14. Sangeeta, Deepa, Ajay and Lalit were partners in a firm sharing profits
and losses in the ratio of 3:2:4:1. They decided to share profits and losses in
the ratio of 5:1:2:2 with effect from 1st April, 2022. On this date, goodwill of
the firm was valued at 5,20,000, General Reserve appeared in the books at ₹
1,00,000.

Pass necessary Journal entries for the above transactions. Show your working
clearly.

SECTION-C
Q.15. Samiksha, Ash and Divya were partners in a firm sharing profits and
losses in the ratio of 5:3:2. With effect from 1st April, 2019, they agreed to
share future profits and losses in the ratio of 2:53. Their Balance Sheet
showed a debit balance of ₹50,000 in the Profit & Loss Account and a
balance of 40,000 in the Investment Fluctuation Fund. For this purpose, it
was agreed that:

(i) Goodwill of the firm be valued at 3,00,000.

(ii) Investments of book value of ₹ 5,00,000 be valued at 4,80,000.

Pass the necessary Journal entries to record the above transactions in the
books of the firm.

Q 16. Asha, Disha and Raghav were partners in a firm sharing profits in the
ratio of 2: 3: 1. According to the partnership agreement, Raghav was
guaranteed an amount of 40,000 as his share of profits. The net proft for the
year ended 31st March, 2022 amounted to ₹1,20,000. Prepare Profit & Loss
Appropriation Account of the firm for the year ended 31st March, 2022.

Q 17. Average profits of a firm during the last few years are ₹80,000 and the
normal rate of return in a similar business is 10%. If the goodwill of the firm
is₹ 1,00,000 at 4 years' purchase of super profit, find capital employed by
the firm.

Q 18. Reya, Mona and Nisha shared profits in the ratio of 3 : 2 : 1. Profits for
the last three years were ₹1,40,000; ₹ 84,000 and₹ 1,06,000 respectively.
These profits were however, distributed equally. The error is now to be
corrected. Give the necessary rectification Journal entry.

SECTION -D

Q 19. Piya and Bina are partners in a firm sharing profits and losses in the
ratio of 3: 2. Following was the Balance Sheet of the firm as on 31st March,
2016:

Liabilities Rs. Assets Rs

Capital A/c Sundry 1,20,000
Assets
Piya 80,000
Bina 40,000
1,20,000 1,20,000
The profits 30,000 for the year ended 31st March, 2016 were divided
between the partners without allowing interest on capital @ 12% p.a. and
salary to Piya @₹ 1,000 per month. During the year, Piya withdrew 8,000 and
Bina withdrew₹ 4,000. Showing your working notes clearly, pass the
necessary rectifying entry.

Q.20. A and B are partners sharing profits and losses in the ratio of 3 : 1. On
1st April, 2024, their capitals were: A₹5,00,000 and B₹3,00,000. During the
year ended 31st March, 2025, the firm earned net profit of Rs.5,00,000. The
terms of partnership are:

(a) Interest on capital is to be allowed @ 6% p.a.

(b) A will get a commission @ 2% on net sales.

(c) B will get a salary of ₹ 5,000 per month.

(d) B will get commission of 5% on profits after deduction of all expenses

including such commission.

Partners' drawings for the year were: A₹ 80,000 and B₹ 60,000. Net Sales for
the year was 30,00,000. After considering the above facts, you are required
to prepare Profit & Loss Appropriation Account and Partners' Capital
Accounts.