CHENNAI SAHODAYA SCHOOLS COMPLEX

(General Instructions)
 This question paper contains 12 printed pages.
 This question paper contains 34 questions.
 Write down the question number before attempting.
 An additional reading time of 15 minutes.
 All questions are compulsory.
 This question paper is divided into two parts, part A and part B.
Part-A is compulsory for all candidates.
Part -B has two options:(i) ANALYSIS OF FINANCIAL STATEMENTS and
(ii) COMPUTERISED ACCOUNTING.
 Students must attempt ONLY ONE of the given options
 Question 1 to16 and 27 to 30 carries 1 mark each.
Question 17 to 20 ,31and 32 carries 3 marks each.
Questions from 21,22 and 33 carries 4 marks each.
Questions from 23 to 26 and 34 carries 6marks each
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.

COMMON EXAMINATION
Class-12
ACCOUNTANCY 055
Time Allowed: 3 hours Maximum Marks: 80
Roll No.: Date:25/01/2023

Part-A:
Accounting for Partnership Firms and Companies
1.Vasudha and Veena were in Partnership sharing profits and losses in the ratio of 3:1.
Theyadmitted Tilak as a new partner who brought ₹ 1,20,000 as his share goodwill premium,
which was credited to Vasudha and Veena's capital accounts in the ratio of 2:1.On the date of
admission, goodwill of the firm was valued at ₹4,80,000. New profit-sharing ratio will be:
(A) 7:2:3 ( B ) 8:1:3 ( C ) 9:3:4 ( D) 5:1:2 1
2.On dissolution, goodwill account istransferred to: 1
(A) Dr. side of Realisation A/c (B) Cr. side of Realisation A/c
(C) Dr. side of Partner’s Capital A/c s (D) Cr. side of Partner's Capital A/c s
OR

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Assertion (A) :
2. Assertion (A):Partners are the agents as well as principals of each other
Reason(R): Partnership is the relationship between two or more person who has agreed to
share profit of a business carried on by all or any one of them acting for all.
In the context of above two statements which of the following is true.
(A) is correct but ( R) is wrong.
(B) Both (A) and ( R )are correct, but ( R ) is not the correct explanation of ( A).
(C)Both (A) and (R) are incorrect.
(D)Both (A) and (R) are correct, and (R) is the correct explanation of ( A ). 1
3.A and B are partners. A' s Capital is ₹ 1,50,000 and B ‘s Capital is ₹ 90,000. General Reserve
appear in the books at ₹ 60,000. Normal return on Capital is 10%. Value of goodwill calculated
on the basis of three year’s purchase of average super profit is ₹ 2,10,000. Average profits
willbe:
(A) ₹ 1,00 000 (B) ₹ 94 000 ( C ) ₹ 40,000 ( D) ₹.46,000. 1
4.Issued 6,000, 8%Debentures of ₹ 100 each at a discount of 4%, redeemable at a premium of
5%.in such case :
(A) Loss on Issue will be credited by ₹ 24,000.
(B) Loss on Issue will be debited by ₹ 54,000.
(C)Premium on Redemption will be debited by ₹ 30,000
(D) Premium on Redemption will be credited by ₹ 54,000. 1
5.A Partnership deed provides for the payment of interest on Capital but there was a loss
instead of profits during the year 2021-2022.At what rate will the interest on Capital be allowed?
(A) 6% ( B ) 12% (C) Bank Rate ( D) Nil 1
6.Y. Ltd forfeited 500 shares of ₹100 each ( ₹ 75 called up ) issued at a premium of 5% on
which application money of ₹45 per share has been paid. Out of these 200 shares were re – issued
to Z as ₹75 paid up for₹ 60 per share. What is the amount to be transferred to Capital Reserve ?
(A ) ₹ 19, 500 ( B ) ₹ 7,000 ( C) ₹ 6,000 ( D ) ₹ 22,000. 1
OR
K Ltd purchased the assets from H Ltd for ₹ 5 40,000,K Ltd issued 10% Debentures of ₹100
each at 20% discount against the payment. The number of Debentures received by H Ltd will
be:
( A ) 54,000 ( B ) 5,400 ( c ) 67,500 ( D ) 6 750
7.Monika, apartner, is paid remuneration of ₹ 15,000 for dissolution work. Realization expenses
amounted to ₹ 5,000 were paid by the firm. Pass journal entry. 1

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8.On Cash retirement, Machinery appearedin the books of firm at ₹ 1 80 000 and Furniture at
₹1,00,000. On Revaluation, it was found that Machinery is overvalued by 20% .Net Loss on
Revaluation is calculated at ₹ 40,000. What will be the revalue value of Furniture ?
(A) ₹ 24,000 ( B) ₹ 90,000 ( C) ₹30,000 ( D ) ₹50,000 1
9.In case of admission of a partner, the entry for unrecorded investments will be :
(A ) Debit Partners Capital A/cs and Credit Investment A/c
(B ) Debit Revaluation A/c and Credit Investment A/c
(C )Debit Investment A/c and Credit Revaluation A/c
(D) None of the above. 1

10.A and B are partners sharing profits in the ratio of 3:2.C was manager who received
quarterly salary of ₹ 20,000 in addition to commission of 10% on net profits after charging
such commission. Total remuneration to C amounted to ₹ 1,30,000.What was the profit for the
year before charging salary and commission ? 1

11.The balance in the Investment Fluctuation Reserve after meeting the fall in book value of
investments, at the time of admission will be transferred to:
( A ) Capital accounts of old partners ( B ) Revaluation account
(C) Investment Account ( D ) Capital accounts of all partners
1

12. P & Q are Partners sharing profit or loss in the ratio of 4 :1.P surrenders 1/6from his share
and Q surrenders 1/4of his share in favour of R, a new partner. What will be the R’ share?
(A ) 5/12 ( B) 11/60 (c) 13/60 ( D) 7/12. 1

OR
Ram and Mohan are partners sharing profits and losses in the ratio of 3:2.The firm maintains
Fluctuating Capital accounts and the balance of the same as on 31.3.22 is ₹6,00,000 &
₹ 6,65,000 for Ram and Mohan respectively. Drawings during the year were ₹ 85 000 each.
As per partnership deed, Interest on Capital i at 10% p.a on Opening Capital has been allowed
to them. Calculate the opening Capital of Ram given that the divisible profits during the year
2021-22 was ₹2,25 000.
(A) ₹ 5,00 000 ( B ) ₹ 6,50,000 ( C ) ₹ 5,50,000 ( D ) ₹ 6,00,000

13.Following are the factors affecting goodwill except :

(A ) Nature of Goods ( B) Location of the customers
(C) Location of Business ( D ) Technical know-how. 1

14.A share of ₹ 100 each, issued at ₹ 20 premium out of which ₹70 ( including ₹10 premium )
was called-up and paid up. The uncalled Capital will be
(A) ₹ 50 per share ( B ) ₹40 per share (C) ₹ 80 per share. (D) ₹ 30 per share 1

15. Authorised Capital of a company is divided into 5,00,000 shares of ₹ 10 each. It issued
3,00,000 shares. Public applied for 3,60,000 shares.Howeve,3,00,000 shares were allotted on
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pro – rata basis. Later on 20,000 shares were forfeited for non-payment of allotment money.
Amount of issued Capital will be
( A ) ₹ 30,00 000 (B) ₹36,00,000 ( C) ₹50,00,000 ( D ) ₹.6,00,000 1

16.M.Ltd.issued 70 000, 6% Debentures of ₹10 each at certain rate of premium and to be

redeemed at 10%PremiumAt the time of writing off Loss on Issue of Debentures Statement of
profit and loss was debited with ₹28,000. At What rate of premium, these Debentures were
issued
( A ) 10% ( B ) 16 % ( C) 6% ( D) 4% 1
OR
K.Ltd issued 50,000 , 8% Debentures of ₹ 10 each at certain rate of discount and were to be
redeemed at 20% premium. Existing balance of Securities premium before issuing of these
Debentures was ₹ .1,25,000 and after writing off Loss on Issue of Debentures, the balance in
Securities premium was ₹ 5,000.At what rate of discount these Debentures were issued ? 1
( A ) 5% ( B ) 1% ( C ) 2% ( D ) 4%.

17. On 1st April 2021, an existing firm had Assets of ₹ 10,00,000 including Cash of ₹ 20,000.
Its creditors amounted to ₹ 50,000 on that date. The partner’s Capital accounts showed a
balance of ₹ 8,00,000 while the reserve fund amounted to ₹ 1,50,000. If the normal rate of
return is 15% and the goodwill of the firm is valued at ₹ 1,80,000 at 3 year’s purchase of super
profit, find the average profits of the firm. 3

18. X,Y and Z were partners in a firm sharing profits and losses in the ratio of 5:3:2.Y retired
and the new profit sharing ratio between X and Z was 2:3.On Y ‘s retirement the goodwill of
the firm was valued at ₹ 6,00,000. Pass necessary journal entry for the treatment of goodwill
on Y's retirement without opening goodwill account. 3
OR
A and B contribute ₹ 20,00,000 & ₹ 12,00,000 respectively by way of Capital on which they
agree to allow interest at 6% p.a. Their respective share of profit is 3:2 and the profit for the
year is ₹ 1,60,000 before allowing interest on Capitals. Prepare the necessary account to
allocate interest on Capitals when partnership deed is silent in treating interest as a charge or
Appropriation.

19. G.Ltd. issued on 1.4.21 10,000 ,8% Debentures of ₹ 100 each at 6% discount
redeemable after five years at a premium of ₹10. All the Debentures were subscribed .During
the year ended 31.3.2022 the company incurred a loss of ₹ 50,000It has balance of ₹ 1,20,000
in Securities premium. Pass journal entries for Issue of Debentures and writing off Loss on
Issue of Debentures. 3
OR
A Ltd took over Assets of ₹ 15,60,000 and creditors of ₹ 1,60,000 from P Ltd.A Ltd issued
8% Debentures of ₹ 20 each at a premium of 40% as purchase consideration to p.Ltd.
Calculate the amount of purchase consideration, number of Debentures issued by A Ltd and
Pass the necessary journal entries in the books of A.Ltd.

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20.A, B and C were partners sharing profits in 4:3:2 ratio respectively. Their balance sheet
as at 31.3.2022 was as follows:

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.

Capitals Cash 10000
A 500000 Bank 40000
B 300000 Stock 200000
C 150000 950000 Debtors 400000
Creditors 145000 Land 500000
Work Men 40000
Compensation
Reserve
Provision for 15000
doubtful debts
Total: 1150000 Total: 1150000

B retired on this date and it was agreed that A and C will share future profits in the ratio 0f 5:4.
The following was agreed upon:
1.Goodwill is to be valued at 2.5 years purchase of average profits of last three years. The
average profits were ₹ 1,80,000
2.Land was undervalued by ₹ 1,20,000 and stock overvalued by ₹ 43,000.
3.provision for doubtful debts is to be made at 5 % of Debtors.
4.Claim of Workmen Compensation was estimated at ₹ 10,000. 3
Prepare B’s Capital account.

21. Chandra,Tara and Nisha were partners in a firm sharing profits and losses in the ratio of
3:2:1.They decided to dissolve the firm on 31.3.21.Pass necessary journal entries for the
following transactions after all assets ( other than cash and bank) and the third parties
Liabilities have been transferred to Realization Account.
1.A typewriter completely written off from the books was sold for ₹ 9000
2.Chandra took over stock worth ₹ 96,000 at₹ 84,000.
3.Nisha was to get remuneration of ₹ 42,000 for completing the dissolution process.
4.Creditors of ₹ 23,500 took over all the investments at ₹ 10,000. Remaining amount was paid
to them in cash. 4

22.On 01.04.20 KabeerLtd .Issued 40,000, 8% Debentures of ₹ 100 each at a discount of 3%

redeemable at a premium of 5% after three years. The amount was payable as follows :

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On application ₹50 per debenture. Balance on allotment. Kabeer Ltd has a balance of ₹2,30,000
in Securities Premium. Loss for the year was ₹ 50,000. Pass the journal entries for the Issue of
Debentures and writing off the loss on Issue of Debentures. 4
23.X.Ltd. issued 1,00,000 shares of ₹ 10 each at 30% Premium. Amount was payable as follows:
On application ₹ 3
On allotment ₹5
On first call ₹2
On second and final call ₹ 3
Applications were received for 90,000 shares and all were accepted. All money was received
except:
1.Ashok, holding 1,000 shares failed to pay allotment money and his shares were forfeited after
allotment .
2.Dev, holding 800 shares fail to pay first call money and his shares were forfeited after first
call
3.Tarun holding 500 shares failed to pay first and second call money and his shares were
forfeited.
All the forfeited shares were reissued at ₹ 12 per share as fully paid-up. Pass necessary journal
entries in the books of X Ltd. 6
OR
G.Ltd offered to the public 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share,
payable as follows
On Application ₹3
On Allotment ₹4 (including premium)
On first call ₹3
On second and final call ₹2
Applications were received for 1,60,000 shares.
All applicants were placed under four categories and allotment was made as follows:
Category A To applicants of 40,000 shares in full
Category B To applicants of 6o,000 shares 40,000 shares
Category C To applicants of 30,000 shares 20,000 shares
Category D To applicants of 30,000 shares Nil
Except in case where applications were rejected wholly, excess application money was
adjusted towards allotment and calls.
Arun applicant under category B who applied for2400 shares failed to the allotment money and
his failure to pay the first call his shares were forfeited. Bilal, an applicant under category C
who applied for 1200 shares failed to pay both the calls and his shares were forfeited after the
second and Final call. All the shares were reissued to Charan as fully paid-up for ₹ 8.50 per
share. Show Cash book and journal entries.

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24.Neha and Tara are partners sharing profits and losses in the ratio of 3:2.Their Balance Sheet
as at 31.3 2022 stood as follows
Liabilities Amount Rs Assets Amount Rs
Capital Plant and 120000
Accounts Machinery
Neha 80000 Land and 140000
Building
Tara 100000 180000 Debtors 190000
General 120000 Less provision 40000 150000
Reserve
Workmen 50000 Stock 60000
Compensation
fund
Creditors 150000 Cash 30000
Total 500000 Total 500000

They agreed to admit Prachi into Partnership for 1/5th share of profits on 1.4.22.on the
following terms :
(A) All Debtors to be considered as good and therefore the provision for doubtful debts to be
written back.
(B) Value of land and building to be increased to ₹ 1,80,000
(C) Value of Plant and Machinery to be reduced by ₹ 20,000.
(D) The liability against Workmen Compensation Fund is determined at ₹ 20,000.
(E)Prachi to bring in her share of Goodwill of ₹ 1,00,000 in cash.
(F) She will further bring in Cash so as to make her Capital equal to 20% of the total Capital of
the new firm.
You are required to prepare Revaluation Account, Partners Capital Accounts. 6
OR
L,M and N were Partners sharing profits in the ratio 0f 5:3:2.On 31.3.20,their balance sheet was
as follows
Liabilities Amount Rs Assets Amount Rs
Creditors 34000 Cash 68000
Provident fund 10000 Stock 38000
Investment 20000 Debtors 94000
fluctuation fund
Capital Accounts: Less provision 6000 88000

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L 140000 Investment 80000

M 80000 Goodwill 40000
N 50000 Profit and Loss 20000
Total 334000 Total 334000
On the above date, M retired and L and N agreed to continue on the following terms:
(A) Firms Goodwill was valued at ₹ 1,02,000 and it was decided to adjust M ‘s share of
Goodwill into the capital accounts of the continuing partners.
(B) There was a claim for workmen compensation to the extent of ₹ 12,000 and investments
were brought down to ₹ 30,000
(C) Provision for Bad debts was to be reduced by ₹ 2000
( D ) M was to be paid ₹ 20,600 in cash and the balance will be transferred to his loan Account.
Prepare Revaluation Account and partners’ capital Accounts.

25) Pulkit, Nitin and Mukesh were partners in a firm sharing profits and losses in the ratio of 2:2:1.
Their Balance Sheet as at 31-3-2022 was as follows:
BALANCE SHEET
As at 31st March, 2022
Liabilities Rs Assets Rs
Capitals: Plant and Machinery 5,00,000

Pulkit 3,00,000 Stock 3,10,000

Nitin 2,00,000 Sundry Debtors 60,000

Mukesh 1,00,000 Cash at Bank 40,000

General Reserve 2,50,000 Profit & Loss A/c 80,000

Creditors 1,40.000

9,90,000 9,90,000

Pulkit dies on 30th June, 2022. According to the partnership deed, the executors of the deceased
partner are entitled to :
a) Balance in partner’s capita account.
b) Salary @5,000 per quarter.
c) Share of goodwill calculated on the basis of twice the average of past three years profits and
share of profits from the closure of the last accounting year till the date of death on the basis

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of last year’s profit. Profits for 2019-20 and 2020-21 were Rs 90,000 and Rs1,40,000
respectively.
d) Pulkit withdrew Rs 20,000 on 1st May,2022 for his personal use.
Prepare Pulkit’s Capital Account to be rendered to his executors. 6

26) On 1st April,2020 X Ltd., in order to raise additional funds of Rs78,00,000, decided to issue 8%
Debentures of Rs50 each to the public at a premium of 4%,redeemable after 6 years at a premium of
5%.
You are required to answer the following questions assuming that the company closes its books on
31st March very year:
a) Find out the number of debentures to be issues.
b) Pass Journal entry for the allotment of debentures.
c) Pass Journal entry to write off loss on issue of debentures.
d) Prepare loss on issue of debentures Account.
e) Calculate the interest on debentures for the year ended 31st March 2021.
f) Pass journal entry to close the Interest on Debenture A/c. 6

PART B
ANALYSIS OF FINANCIAL STATEMENTS
27) Credit Revenue from Operations Rs 9,00,000 ; Trade Receivables Turnover Ratio 6 times;
Closing Trade Receivables were 1.5 times than that in the beginning. Closing Trade Receivables
will be: 1
a) Rs 1,20,000 b) Rs 60,000
c) Rs 1,80,000 d) Rs 90,000

28) ‘Forfeited Shares Account’ appears in the Balance Sheet of the company under the subhead:
a) Reserves and Surplus b) Long-term Provisions
c) Share Capital d) Other Current Liabilities 1
OR
A Company sold inventory costing Rs 2,00,000 at a loss of Rs 10,000. It will result in inflow,
outflow or no flow of cash?
29) “Capital gain tax paid on sale of building by a Company” will be shown under which type of
activity while preparing the Cash flow Statement 1
30) On the basis of the following data, a Company’s Gross Profit Ratio will be:

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Net Profit Rs 80,000; Wages Rs 10,000; Office Expenses Rs 30,000; Selling Expenses
Rs 20,000; Total revenue from operations Rs 5,00,000. 1
a) 28% b) 26%
c) 4% d) 6%
OR
Which of the following items is not a method/tool of analysis of financial statement?
a) Trend Analysis b) Statement of Profit and Loss
c)Cash Flow Statement d) Comparative Statements
31) Opening Inventory Rs 1,20,000; Closing Inventory 1.5 times of opening inventory;
Inventory Turnover Ratio 6 times; Selling Price 33 1/3 % above cost. Calculate the Gross Profit
ratio. 3
32) Classify the following items under Major Head and Sub-Head (if any) in the Balance Sheet
of a company as per Schedule III of the companies Act, 2013: 3
a) Uncalled Liability on partly paid shares;
b) Capital Work in Progress;
c) Provision for Warranties;
d) Income received in advance;
e) Capital Advances;
f) Advances recoverable in cash within the operating cycle;
33) Following is the Balance Sheet of X Ltd. As at 31st March,2022: 4
Particulars Note No Rs

I. EQUITY AND LIABILITIES

1.Shareholder’s Funds
Share Capital 5,00,000
Reserves and Surplus 1,00,000
2.Non-Current Liabilities
Long-term Borrowings 1,60,000
Long-term Provisions 40,000
3.Current Liabilities 50,000

TOTAL 8,50,000

II. ASSETS
5,20,000
1.Non-Current Assets 3,30,000
2.Current Assets

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8,50,000
TOTAL

Calculate Debt to Capital Employed Ratio.

OR
Calculate Net Assets Turnover Ratio from the following information:
Rs
Plant & Machinery 1,80,000
Intangible Assets (Goodwill) 20,000
Non-Current Investments 40,000
Inventory (including Loose tools for Rs 1,50,000
20,000)
Trade Receivables 1,00,000
Cash and Cash Equivalents 40,000
Trade Payables 30,000
Cost of Revenue from Operations (Cost of 12,80,000
Sales)
Gross Profit 25% on Cost

34) Prepare a Cash Flow Statement on the basis of the information given in the balance sheet of
ABC Ltd., as at 31.03.2021 & 2020. 6
Particulars Note No 31.3.2021 31.3.2020
Rs Rs
EQUITY AND LIABILITIES:
1.Shareholder’s Funds
a) Share Capital 70,000 60,000
b) Reserves and Surplus 44,000 8,000
2.Non-Current Liabilities I
Long-term Borrowings 50,000 50,000
3.Current Liabilities
a) Trade Payables
25,000 9,000
TOTAL
1,89,000 1,27,000
ASSETS
1.Non-Current Assets

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a) Property, Plant & Equipment and Intangible Assets 98,000 84,000

(i)Property, Plant and Equipment (Machinery)
b) Non-Current Investments 16,000 6,000

2.Current Assets
a) Current investments 18,000 20,000
b) Inventories 49,000 12,000
c) Cash and Cash equivalents 8,000 5,000

TOTAL 1,89,000 1,27,000

Notes to Accounts: 31.03.2021 31.03.2020

1.Reserve & Surplus:
General Reserve 30,000 20,000
Surplus i.e. Balance in Statement of Profit and Loss 14,000 (12,000)

44,000 8,000
Additional Information:
1) Depreciation provided on Machinery during the year Rs 8,000.
2) Interest paid on debentures Rs 5,000

********************END OF PAPER*********************

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