CBSE Accountancy Class 12 Sample Paper 1 Page 1

Sample Paper 1
Accountancy
Class XII Session 202-2
Time: 3 Hours Max. Marks: 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 two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting.
Students must attempt only one of the given options.
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 Firm and Companies)

1. Which of the following is not correct in relation to right of a partner?

(i) Right to inspect the books of the firm
(ii) Right to take part in the affairs of the company
(iii) Right to share the profits/losses of the firm
(iv) Right to receive salary at the end of each month
(a) Only (iv) (b) Only (i)
(c) (i) and (ii) (d) (i) and (iv)

2. Which of the following shares confer voting rights on its holders ?

(a) Redeemable preference (b) Participatory preference
(c) Equity (d) None of these

3. Krish, Laksh and Jay are partners with capitals’ ` 1,00,000, ` 75,000 and ` 50,000 respectively. On Jay’s
retirement, his share is acquired by Krish and Laksh in ratio of 5 : 3. Gaining ratio will be
(a) 2 : 2 (b) 5 : 3
(c) 3 : 2 (d) None of these

4. Interest allowed by the company on the amount of calls-in-advance is_______.

(a) 6% p.a. (b) 8% p.a.
(c) 15% p.a. (d) 12% p.a.

5. Assertion (A): A charitable dispensary run by 10 members is deemed to be a partnership firm.

Reason (R): For a partnership business, there must be a business and there must be sharing of profits
among the partners from such business.
Alternatives
(a) Assertion (A) is true, but Reason (R) is false
(b) Assertion (A) is false, but Reason (R) is true
(c) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion (A)

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6. At the time of retirement of Kamlesh, value of stock is given ` 60,000 in the balance sheet of the firm. Pass
a journal entry when found stock is undervalued by ` 15,000.
(a) Stock A/c Dr 45,000
To Revaluation A/c 45,000
(b) Revaluation A/c Dr 45,000
To Stock A/c 45,000
(c) Revaluation A/c Dr 15,000
To Stock A/c 15,000
(d) Stock A/c Dr 15,000
To Revaluation A/c 15,000

7. Naksh and Daksh are partners in a firm sharing profits in the ratio of 3 : 2. An extract of their Balance
Sheet is as follows

Liabilities Amount Assets Amount

(`) (`)
Investments 40,000
If half of the investments are taken over by Naksh and Daksh in their profit sharing ratio at book value,
what amount of investments will be shown in revised balance sheet?
(a) ` 10,000 (b) ` 80,000
(c) ` 40,000 (d) ` 20,000

8. Kiya RO Water Limited is registered with a capital of 1,00,000 equity shares of ` 10 each. 60,000 equity
shares were offered for subscription to public. Applications were received for 60,000 shares. All calls were
made and amount was duly received except final call of ` 2 on 8,000 shares.
What will be the amount of share capital shown in the balance sheet?
(a) ` 58,400 (b) ` 60,000
(c) ` 6,00,000 (d) ` 5,84,000
or
Future Group Limited has in its Memorandum of Association, capital clause stating that it is formed
with 7,500 equity shares of ` 100 each. The company has issued the entire shares and the public has also
subscribed and paid up for the full amount on application itself. What will be the subscribed capital?
(a) ` 10,000 (b) ` 75,000
(c) ` 7,50,000 (d) ` 1,00,000

9. Joya, Liya and Tiya are partners sharing profits equally. Joya drew regularly ` 2,000 in the beginning of
every month for the six months ended 30th September, 2020. Calculate interest on Joya’s drawings @ 5%
p.a.
(a) ` 175 (b) ` 350
(c) ` 100 (d) ` 600
or
Neeraj, Dheeraj and Sourabh are partners sharing profits in the ratio of 5 : 3 : 2. They have admitted Nitin
into the partnership for 1/6th share. Investment Fluctuation Fund appears in the balance at ` 13,500 and
Investment (cost) at ` 1,50,000 . If the market value of investments is ` 1,45,000.
Investment Fluctuation Fund will be shown at______.
(a) ` 5,000 (b) ` 6,500
(c) ` 13,500 (d) ` 10,000

10. Ishan is a partner of Jiyan firm with a fixed capital of ` 9,00,000. He withdrew ` 60,000 during financial
year 2021-22. What will be the journal entry?
(a) Drawings A/c Dr 60,000
To Ishan’s Capital A/c 60,000
(b) Ishan’s Current A/c Dr 60,000
To Drawings A/c 60,000

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CBSE Accountancy Class 12 Sample Paper 1 Page 3

(c) Ishan’s Capital A/c Dr 60,000

To Drawings A/c 60,000
(d) Drawings A/c Dr 60,000
To Ishan’s Current A/c 60,000

11. Somani Wheels Limited called first call money of ` 3.per share on its 50,000 shares. A shareholder holding
2,750 shares failed to pay the amount. How much amount will be due on first call?
(a) ` 1,50,000 (b) ` 1,47,750
(c) ` 1,41,750 (d) ` 1,57,000
or
The following journal entry is appeared in Neelkamal Private Limited.
Bank A/c Dr 2,00,000
Loss on Issue of Debentures A/c Dr 1,00,000
To 12% Debentures 2,50,000
To Premium on Redemption 50,000
Debentures are issued at a discount of
(a) 15% (b) 20%
(c) 5% (d) 10%

12. Tarun and Arun are partners sharing profits in the ratio of 10 : 2. Ankit is admitted and the new profit
sharing ratio is now 10 : 6 : 4. At the date of admission, general reserve appears in the books at ` 48,000.
Arun’s share in the reserve will be
(a) ` 40,000 (b) ` 14,400
(c) ` 8,000 (d) None of these
or
If a partner withdraws equal amount at the end of each quarter, then_____months are to be considered
for interest on total drawings.
(a) 4.5 (b) 7.5
(c) 5.5 (d) 6

13. Rudra, Sachin and Sahil are partners in a firm sharing profits in the ratio of 5 : 3 : 2. As per partnership
deed, Sahil is to get a minimum amount of ` 1,000 as profit. Net profit for the year is ` 4,000. Calculate
deficiency (if any) to Sahil.
(a) ` 200 (b) ` 150
(c) ` 75 (d) None of these
or
Shaan and Sajan are partners sharing profits in the ratio of 5 : 1. Riyan is admitted and the new profit
sharing ratio is now 5 : 3 : 2. Upon admission, general reserve appears in the books at ` 48,000. Sajan’s
share in the reserve will be_______.
(a) ` 40,000 (b) ` 14,400
(c) ` 8,000 (d) None of these

14. Hindustan Industries Limited purchased the assets from Bharat Electronics Limited for ` 16,20,000.
Hindustan Industries Limited issued 10% debentures of ` 10 each at 10% discount against the payment.
The number of debentures issued by Hindustan Industries Limited will be
(a) 1,80,000 (b) 1,62,000
(c) 16,200 (d) 18,000

DIRECTION : Read the following hypothetical situation and answer Q. No. 15 and 16
Divya, Aanya and Jaya are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. As per the
terms of partnership deed, on the death of any partner, goodwill was to be valued at 50% of the net profits
credited to that partner’s capital account during the last three completed years before her death. Divya
died on 28th February, 2022.

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The profits for the last five years were 2017 – ` 60,000, 2018 – ` 97,000, 2019 – ` 1,05,000, 2020 – ` 30,000
and 2021 – ` 84,000.
On the date of Divya’s death, building was found undervalued by ` 80,000, which was to be considered.
Calculate amount of Divya’s share of goodwill in the firm and complete the following journal entries. The
new profit sharing ratio between Aanya and Jaya will be equal.

Journal

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

Building A/c Dr. ........
To Revaluation A/c ........
(Being the increase in value of building brought into account)
Revaluation A/c Dr. ........
To Divya’s Capital A/c ........
To Aanya’s Capital A/c ........
To Jaya’s Capital A/c ........
(Being the transfer of profit on revaluation to partners’
capital account in their old profit sharing ratio)
Aanya’s Capital A/c Dr.
Jaya’s Capital A/c Dr. ........
To Divya’s Capital A/c ........
(Being Divya’s share of goodwill adjusted in the capital
accounts of gaining partners in their gaining ratio. i.e. 1 : 3)

15. Jaya’s share in revaluation profit/loss will be________.

(a) ` 30,000 (b) ` 10,000
(c) ` 40,000 (d) Nil

16. Divya’s share of goodwill will be_______.

(a) ` 54,750 (b) ` 41,062
(c) ` 13,688 (d) Nil

17. Shree Paper Industries Limited issued 5,000 shares of ` 10 each credited as fully paid to the promoters
for their services and issued 4,000 shares of ` 10 each credited as fully paid to the underwriters for their
underwriting services. Journalise these transactions.
or
Monark Enterprises Limited issued 2,000, 10% debentures of ` 100 each, at a premium of ` 10 per debenture
payable as follows: On application ` 50 ; on allotment ` 60. The debentures were fully subscribed and all
money was duly received. Record the journal entries in the books of company.

18. Camila, Sophia and Ella are partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On 31st
March, 2021 their balance sheet was as under

Balance Sheet
as at 31st March, 2021
Liabilities Amount (`) Assets Amount (`)
Sundry Creditors 1,10,000 Goodwill 50,000
Reserve Fund 60,000 Buildings 2,00,000
Capital A/cs Patents 60,000

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CBSE Accountancy Class 12 Sample Paper 1 Page 5

Camila 3,00,000 Machinery 3,00,000

Sophia 2,50,000 Stock 1,00,000
Ella 1,50,000 7,00,000 Debtors 80,000
Cash 80,000
8,70,000 8,70,000
Ella retires on the above date. Goodwill of the firm valued at ` 2,50,000.
Record the necessary journal entries on Ella’s retirement, assuming that goodwill is to be adjusted through
partner’s capital accounts.
or
Dhavan and Bhuvan were partners sharing profits in 3 : 2 ratio. Their balance sheet on 31st March, 2021
was as follows

Balance Sheet
as at 31st March, 2021
Liabilities Amount (`) Assets Amount (`)
Capital A/cs Cash 7,500
Dhavan 1,37,500 Sundry Debtors 30,000
Bhuvan 75,000 2,12,500 Stock 50,000
Creditors 37,500 Land and Building 1,00,000
Plant and Machinery 62,500
2,50,000 2,50,000
They admitted Tarun as partner on the following terms
(i) Tarun is to bring ` 62,500 as capital.
(ii) They will share future profits in 2 : 2 : 1 ratio.
(iii) Assets and liabilities are revalued as
Land and building at ` 1,25,000, depreciate plant and machinery @10% per annum, provision for doubtful
debts ` 2,500, stock at ` 45,000, ` 2,500 be reserved for bills discounted.
Show memorandum revaluation account.

19. Sunil, Aadil and Mona are partners having fixed capitals of ` 2,00,000, ` 1,60,000 and ` 1,20,000 respectively.
They share profits in the ratio of 3 : 1 : 1. The partnership deed provided for the following which were not
recorded in the books.
(i) Interest on capital @ 5% per annum.
(ii) Salary to Sunil ` 1,500 per month and to Mona ` 1,000 per month.
(iii) Transfer of profit to general reserve ` 10,000. Net profit for the year ended 31st March, 2022 was `
1,00,000.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Also show your workings
clearly.

20. Rajesh and Dinesh are two partners in a firm sharing profit and losses in the ratio of 3 : 2. At the time
of distributing the net profit between the partners, interest on capital was credited @18% instead of 8%
wrongly. Now, pass an adjusting journal entry to correct this error. Partners’ capitals are given on 1st April,
2021 as ` 5,00,000 and ` 3,00,000 respectively. Profit on 31st March, 2022 is ` 2,00,000.

21. Hindustan Motor Limited issued 10,000 equity shares of ` 10 each payable at ` 2.50 on application, ` 3 on
allotment, ` 2 on first call and the balance of ` 2.50 on the final call. All the shares were fully subscribed
and paid except of a shareholder having 100 shares who could not pay for the final call. Give journal entries
to record these transactions.

22. Lavina, Taniya and Soniya were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. On 1st
April, 2022, their balance sheet stood as under

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Page 6 Sample Paper 1 CBSE Accountancy Class 12

Balance Sheet
as at 1st April, 2022
Liabilities Amount Assets Amount
(`) (`)
General Reserve 25,000 Land and Building 1,50,000
Profit and Loss A/c 35,000 Machinery 50,000
Machinery Replacement Fund 17,000 Machinery Replacement Fund 17,000
Investments
Investments Fluctuation Reserve 20,000 Furniture 10,000
Workmen’s Compensation Reserve 23,000 Investments (Market value ` 28,000) 30,000
Employees’s Provident Fund 30,000 Current Assets 1,18,000
Creditors 1,00,000 Advertisement Expenditure 25,000
(Deferred revenue)
Capital A/cs
Lavina 1,00,000
Taniya 30,000
Soniya 20,000 1,50,000
4,00,000 4,00,000
They admitted Monika into partnership for 1/5th share of profits on the above date. A claim on account
of workmen’s compensation is estimated at ` 13,000 only. Give the necessary journal entries to adjust the
accumulated profits and losses.

23. Ruchi Enterprises Limited issued 5,000, 9% debentures of ` 100 each at par for cash which are redeemable
at 10% premium and also raised a loan of ` 80,000 from America Bank, for which the company placed with
the bank ` 1,00,000, 9% debentures as collateral security.
As per the terms, the bank is obliged and bound to immediately release the debentures, as soon as the
loan is repaid. How will you show the debentures in the balance sheet of the company assuming that the
company has recorded the issue of debentures as collateral in the books?
Also pass the journal entries.

24. Tilak, Yogesh and Rahim were equal partners. Their balance sheet as at 31st March, 2021 was

Balance Sheet
as at 31st March, 2021
Liabilities Amount Assets Amount
(`) (`)
Bills Payable 10,000 Bank 10,000
Sundry Creditors 20,000 Stock 10,000
General Reserve 15,000 Furniture and Fixtures 14,000
Profit and Loss A/c 3,000 Sundry Debtors 22,500
Capital A/cs (–) Provison for Doubtful Debts (2,500) 20,000
Tilak 30,000 Buildings 60,000
Yogesh 20,000
Rahim 16,000 66,000
1,14,000 1,14,000
Yogesh retired on 1st April, 2021. Tilak and Rahim decided to continue the business as equal partners on
the following terms
(i) Goodwill of the firm was valued at ` 28,800.

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CBSE Accountancy Class 12 Sample Paper 1 Page 7

(ii) The provision for bad and doubtful debts to be maintained @ 10% on debtors.
(iii) Buildings to be increased to ` 66,000.
(iv) Furniture and fixtures to be reduced by ` 4,000.
(v) Rent outstanding (not provided for as yet) was ` 750.
The partners decided to bring in sufficient cash in the business to pay-off Yogesh. For this purpose, Tilak
brought ` 12,250 and Rahim ` 26,250.
Prepare the necessary ledger accounts and the balance sheet.
or
Rashmi and Vinod are partners dealing in manufacturing plastic polythenes, with profit sharing ratio of
2 : 1. Their balance sheet as at 31st March, 2020 was as under, when the government banned the plastic
polythene and therefore, they shifted to manufacturing paper bags.

Balance Sheet
as at 31st March, 2020
Liabilities Amount Assets Amount
(`) (`)
Bills Payable 60,000 Cash in Hand 20,000
Sundry Creditors 60,000 Cash at Bank 80,000
Salaries Outstanding 10,000 Sundry Debtors 40,000
Profit and Loss 30,000 Stock 60,000
Capital A/cs Machinery 1,70,000
Rashmi 1,50,000 Goodwill 90,000
Vinod 1,50,000 3,00,000
4,60,000 4,60,000
They admitted Aakash into partnership on 1st April, 2020. The new profit sharing ratio is agreed as 2 : 1
: 1. Other terms of Aakash’s admission were as under
(i) He will bring in ` 1,20,000, through cheque, as his share of capital and ` 30,000 as his share of
goodwill.
(ii) Machinery is to be appreciated by 10%.
(iii) Stock overvalued by ` 2,000.
(iv) A provision for doubtful debts is to be created at 5% on debtors.
(v) Creditors are unrecorded to the extent of ` 7,000.
Prepare the revaluation account, partners’ capital accounts, bank account and the balance sheet of the new
firm after the admission.

25. Parag Solutions Limited offered for public subscription 10,000 shares of ` 10 each at ` 11 per share. Money
was payable as follows
` 3 on application, ` 4 on allotment (including premium), ` 4 on first and final call.
Applications were received for 12,000 shares and the directors made pro-rata allotment. Saumya, an
applicant for 120 shares, could not pay the allotment and call money and Divya, a holder of 200 shares,
failed to pay the call. All these shares were forfeited.
Out of the forfeited shares, 150 shares (the whole of Saumya shares being included) were issued at` 8 per
share. Record journal entries for the above transactions and prepare the share forfeiture account.
or
Max Technologies Limited invited application for 1,40,000 equity shares of ` 10 each payable as under
On application ` 2 On first call ` 3
On allotment ` 2 On final call ` 3
Applications were received for 2,10,000 shares and pro-rata allotment was made to all the applicants.
All the shareholders paid the amount due with the following exception
(i) Aalok, who was allotted 1,400 shares, failed to pay the allotment and calls.
(ii) Trilok, who was allotted 1,050 shares paid only application and allotment.
These shares were forfeited and subsequently 1,800 shares were reissued as fully paid at a discount of 20%.
Shares reissued include 1,000 shares of Aalok and 800 shares of Trilok.
Pass necessary journal entries.

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Page 8 Sample Paper 1 CBSE Accountancy Class 12

26. Aarav and Sourav were partners from 1st April, 2017 with capitals of ` 1,20,000 and ` 80,000 respectively.
They shared profits in the ratio of 3 : 2. They carried on business for two years.
In the first year ended 31st March, 2018, they earned a profit of ` 1,00,000 but in the second year ended
31st March, 2019, a loss of ` 40,000 was incurred. As the business was no longer profitable, they dissolved
the firm on 31st March, 2019.
Their balance sheet is as follows

Balance Sheet
as at 31st March, 2019
Liabilities Amount Assets Amount
(`) (`)
Creditors 40,000 Sundry Assets 2,36,000
Capital A/cs
Aarav 1,24,000
Sourav 72,000 1,96,000
2,36,000 2,36,000
Sundry assets realised ` 2,00,000 and realisation expenses were ` 6,000.
You are required to prepare realisation account, partner’s capital account and cash account.

Part B
(Financial Statement Analysis)

27. Which of the following is not an financing cash flow?

(a) Dividend paid on equity shares amounting to ` 24,000
(b) Purchase of investment for ` 40,000 cash
(c) Issue of debentures for ` 75,000 cash
(d) Both (a) and (b)

28. Which of the following is a non-operating income?

(a) Revenue from sale in a trading concern
(b) Profit on the sale of used plant in manufacturing company
(c) Dividend received by an investment company
(d) Premium received by an insurance company
or
Which of the following is highly liquid investment?
(a) Cash equivalent (b) Short-term investment
(c) Cash convertible investment (d) None of these

29. From the following information, you are required to calculate ‘cost of material consumed. Opening inventory
of materials ` 30,00,000; Opening stock-in-trade ` 8,00,000; Material purchased ` 1,00,00,000; Purchase
of stock-in trade ` 60,00,000; Closing inventory of material ` 10,00,000 and Closing inventory of stock `
6,00,000.
(a) ` 1,20,00,000 (b) ` 90,00,000
(c) ` 48,00,000 (d) None of these
or
Gross profit of a firm is ` 9,00,000 and revenue from operations ` 27,00,000. What will be the gross profit
ratio?
(a) 33.3% (b) 33%
(c) 34% (d) 38%

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CBSE Accountancy Class 12 Sample Paper 1 Page 9

30.

Balance Sheet (Extract)

Liabilities Amount (`) Assets Amount (`)
Borrowings: 10% Debentures 6,00,000 Inventories 4,80,000
Trade Payables 9,36,000 Trade Receivables 3,60,000
Short-term Provisions 24,000 Cash and Cash Equivalents 91,200
Additional Information
50% of the debentures are repaid by issuing shares amounting to ` 3,00,000.
Based on the above information, the liquid ratio for the company will be______.
(a) 2 : 1 (b) 1 : 2
(c) 1 : 1 (d) 0.47 : 1

31. Current ratio of a company is 2 : 1 and quick ratio is 1 : 1. If value of inventory is ` 10,000 and prepaid
insurance is ` 5,000, then calculate the value of current assets, current liabilities and liquid assets.

32. Name any three items that can be disclosed under non-current investments.

33. Calculate value of opening stock and closing stock from the following information
Sales ` 5,00,000, Gross profit is 20% of net sales, Return inward is ` 20,000, Return outward is ` 50,000,
Purchases ` 2,50,000 and Opening stock is 2 times of the closing stock.
or
From the following information, calculate debt to capital employed ratio

Particulars Note No. Amount (`)

I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(i) Share Capital 4,00,000
(ii) Reserves and Surplus 1,00,000
2. Non-Current Liabilities
Long Term Borrowing 1,50,000
3. Current Liabilities: 50,000
Total 7,00,000
II. ASSETS
1. Non-Current Assets :
(i) Fixed Assets 4,00,000
(ii) Non-current Investments 1,00,000
2. Current Assets 2,00,000
Total 7,00,000

34. From the following, calculate the net cash flow from operating activities

Particulars Note 31 March 2021 31 March 2020

No. (`) (`)
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(i) Share Capital 1 1,87,500 1,87,500

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(ii) Reserves and Surplus 2 77,500 (5,000)

2. Non-Current Liabilities (8% Debentures) 65,000 37,500
3. Current Liabilities:
(i) Short-term Borrowings 10,000 12,500
(ii) Trade Payables 30,000 27,500
(iii) Short-term Provisions 12,500 10,000
Total 3,82,500 2,70,000
II. ASSETS
1. Non-Current Assets:
(i) Tangible Fixed Assets (Net) 2,15,000 1,55,000
(ii) Intangible Assets 3,750 10,000
(iii) Non-current Investments 31,250 20,000
2. Current Assets
(i) Current Investments 1,250 3,750
(ii) Inventories 48,750 25,000
(iii) Trade Receivables 50,000 50,000
(iv) Cash and Cash Equivalents 32,500 6,250
Total 3,82,500 2,70,000
Notes to Accounts:

Particulars 2021 (`) 2020 (`)

1. Share Capital
Equity Share Capital 1,37,500 1,12,500
5% Preference Share Capital 50,000 75,000
1,87,500 1,87,500
2. Reserves and Surplus
General Reserve 37,500 30,000
Statement of Profit and Loss 37,500 (35,000)
Securities Premium Reserve 2,500 ––
77,500 (5,000)
3. Short-term Borrowings
8% Bank Loan 10,000 12,500
4. Short-term Provisions
Provision for Tax 12,500 10,000
5. Intangible Assets
Goodwill 3,750 10,000
Additional Information
During the year, a piece of machinery costing ` 15,000 on which depreciation charged was ` 5,000 was sold
for ` 5,000. Depreciation provided on fixed assets ` 15,000. Dividend on equity shares @ 8% was paid on
opening balance.
Income tax ` 11,250 was provided. Additional debentures were issued at par on 1st October, 2019 and bank
loan was repaid on the same date. At the end of the year, preference shares were redeemed at a premium
of 5%.

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