Sample Paper Half-Yearly Examination (2024-25)

Name: Class – XII Time: 3 Hrs.

Date: Subject – Accountancy (055) M.M. - 80
General Instruction:
Read the following instructions carefully and follow them:
• There are 34 questions in this paper. All questions are compulsory.
• This paper contains two sections A and B.
• Questions 1-16 and 27-30 are very short answer questions of 1 mark each.
• Questions 17-20 and 31,32 are short answer question type -I of 3 marks each.
• Questions 21, 22 and 33 are short answer questions type -II of 4 marks each
• Questions 23-26 and 34 are long answer questions of 6 marks each.
• Attempt all the parts of a question together.
• Show your workings neatly.

1. Following are the examples of the said errors and omissions except: (1)
A. Interest on capital and interest on drawings considered but at a higher percentage
B. Interest on capital is provided at a given rate
C. The omission of paying partner’s salary/commission
D. Partner’s salary and commission provided at higher or less amount.
a) (C) b) (D)
c) (B) d) (A)

2. Calculate interest on capital @ 10% p.a. of Anil (partner) from the following information: (1)

Interest on capital calculated on 31st March 2021:

a) 55417 b) 51698
c) 51667 d) 56250

3. Vinay, Shweta and Vikas are sharing profits in the ratio of 3 : 2 : 1. As per the new Agreement, (1)
Vikas acquires 1/6th share from Vinay. What will be the new profit-sharing ratio of the partners?
a) 3 : 2 : 1
b) b) 2 : 2 : 1
c) c) 2 : 3 : 1
d) d) 1 : 1 : 1

4. On the reconstitution of a firm change in the value of assets is called ________.

(1)
a) Revaluation of assets b) Reassessment of assets
c) Devaluation of assets d) Reassessment of liabilities
(1)
5. A and B share profits in the ratio of 3 : 2. They agreed to admit C on the condition that A will
sacrifice 3/25th of his share of profit in favour of C and B will sacrifice 1/25th of his profits in
favour of C. The new profit sharing
ratio will be:
a) 48 : 66 : 11 b) 3 : 2 : 4
c) 12 : 9 : 4 d) 66 : 48 : 11
OR
 A and B are partners sharing profits in the ratio of 5 : 3. A surrenders 1/5th of his share and B
surrenders of his share in favour of C, a new partner. What is the sacrificing ratio?
a) 12 : 25 b) 5 : 4
c) 4 : 5 d) 25 : 12
6. Is outgoing partner entitled to a share of goodwill of the firm? (1)
a) Yes, Goodwill earned by the firm is the effort of retired partners
b) Yes, Goodwill earned by the firm is the effort of all the partners of firm.
c) No Goodwill earned by the firm is the effort of only one the partners
d) No Goodwill earned by the firm is the effort of new partners
7. A, B and C are partners with profit sharing ratio 4 : 3 : 2. B retires and goodwill was valued ₹ (1)
1,08,000. If A & C share profits in 5 : 3, find out the goodwill shared by A and C in favour of B.
a) ₹ 16,500 and ₹ 19,500 b) ₹ 67,500 and ₹ 40,500
c) ₹ 22,500 and ₹ 13,500 d) ₹ 19,500 and ₹ 16,500
8. X, Y and Z have been sharing profits in the ratio of 4 : 2 : 1, Z retires. X and Y take Z’s share
equally. New profit-sharing ratio will be:
a) 9 : 5 b) 5 : 3 (1)
c) 4 : 2 d) 5 : 2
9. On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be
transferred to which of the following account?
a) Revaluation Account b) Realisation Account (1)
c) Partners' Capital Accounts d) Bank Account
10. An unrecorded asset was valued at ₹ 1,00,000. On firm’s dissolution, it was sold for 52%.
Realisation account will be credited with:
a) ₹ 1,00,000 b) ₹ 52,000 (1)
c) - ₹ 48,000 d) ₹ 48,000
OR
A partnership firm is compulsorily dissolved:
a) When a partner of the firm dies
b) When a partner transfers his share to some other person without the consent of other partners
c) When a partner of the firm becomes insolvent
d) When the business of the firm is declared illegal
11. Total capital employed in the firm is ₹ 8,00,000, reasonable rate of return is 15% and profit for the
year is ₹ 12,00,000. The value of goodwill of the firm as per capitalisation method would be:
(1)
a) ₹ 72,00,000 b) ₹ 82,00,000
c) ₹ 12,00,000 d) ₹ 42,00,000
OR
12. Tangible Assets of the firm are ₹14,00,000 and outside liabilities are ₹4,00,000. Profit of the firm is
₹1,50,000 and normal rate of return is 10%. The amount of Capital employed will be:
a) ₹ 20,000 b) ₹ 10,00,000 (1)
c) ₹ 1,00,000 d) ₹ 50,000
13. The Goodwill of the firm is NOT affected by:
a) Location of the firm b) Reputation of firm
c) None of these d) Better customer service (1)
14. Assertion (A): A partnership deed covers all matters relating to the mutual relationships among the
partners.
Reason (R): But, in the absence of any agreement, the provisions of the Indian Partnership Act, (1)
1938 shall apply.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
15. Assertion (A): Reserves and accumulated profits and losses will continue to be shown at their old
values in balance sheet of new firm. (1)
Reason (R): Reserves and Accumulated profits and losses are adjusted through Partners' Capital
A/c.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
 d) A is false but R is true.
OR
Assertion (A): At the time of admission of a new partner, if any outstanding liability (given in
balance sheet) is paid by the firm, it will not be shown in the Revaluation Account.
Reason (R): Revaluation Account is prepared to revalue the assets and to reassess the liabilities.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
16. Assertion (A): Goodwill is an intangible asset.
Reason (R): Goodwill cannot to touched and seen. (1)
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
17. Yogesh, Ravi and Rohit have been sharing profits in the ratio of 3 : 2 : 1 respectively. Rohit wants
that she should share profits equally along with Yogesh and Ravi and he further wants that change in
(3)
profit sharing ratio should be applicable retrospectively for the last three years. Other partners have
no objection to this. The profits for the last three years were ₹ 60,000, ₹ 47,000 and ₹ 55,000. Record
the adjustment by means of a journal entry.
18. Rakshit and Malik are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st April,
2021, their capitals were ₹ 1,20,000 and ₹ 80,000 respectively. On 1st December, 2021, they decided
(3)
that the total capital of the firm should be ₹ 3,00,000 to be contributed by them in the ratio of 2 : 1.
According to the partnership deed, interest on capital is allowed to the partners @ 6% p.a.
Calculate interest on capital to be allowed for the year ending 31st March, 2022.
19. Kavita, Leena and Monica are partners in firm sharing profits in the ratio of [Link] respectively. Their
Capital Accounts showed the following balances on 31st March, 2012: Kavita ₹ 70,000; Leena ₹ (3)
65,000 and Monica ₹ 2,10,000. Firm closes its accounts every year on 31st March. Kavita died on
30th September, 2012. In the event of death of any partner, the Partnership Deed provides for the
following:
(i) Interest on capital will be calculated at the rate of 6% p.a.
(ii) The deceased partner's share in the goodwill of the firm will be calculated on the basis of 2
years' purchase of the average profit of last three years. The profits of the firm for the last
three years were ₹ 90,000; ₹ 1,00,000 and ₹ 1,10,000 respectively.
(iii) Her share in the Reserve Fund of the firm will be paid. The Reserve Fund of the firm was
₹ 60,000 at the time of Kavita's death.
(iv) Her share of profit till the date of death will be calculated on the basis of sales. It is also
specified that the sales during the year 2011 -12 were ₹ 20,00,000. The sales from 1st April,
2012 to 30th September 2012 were ₹ 4,00,000. The profit of the firm for the year ending
31st March, 2012
Prepare Kavita's Capital Account to be presented to his legal representative.
OR
Mahi, Mamta and Monika are partners in a firm, sharing profits in the ratio of 4 : 3 : 2. Monika retired
and her capital after making adjustments for reserves and revaluation of assets and reassessment of
liabilities was ₹ 95,000. Mahi and Mamta agreed to pay ₹ 1,09,000 in full settlement of her claim.
Pass necessary journal entries for treatment of goodwill without opening goodwill account and
making payment to Monika on her retirement.
20. Give anyone distinction between reconstitution of a firm and dissolution of a firm. Goodwill is to be (3)
calculated on the basis of two year’s purchase of weight average profits for the last three years and it
is assumed that the weights were 1, 2 and 3. Profits for the last three years were as follows. First year:
Rs 18,000, Second year: Rs 24,000, Third year: Rs 36,000.
OR
Kabir and Farid are partners in a firm sharing profits in the ratio of 3 : 1 on 1-4-2019 they admitted
Manik into a partnership for 1/4th share in the profits of the firm. Manik brought his share of goodwill
premium in cash. Goodwill of the firm was valued on the basis of 2 years purchase of the last three
years average profits. The profits for the last three years were:
 During the year 2018-19 there was a loss of ₹ 20,000 due to fire which was not accounted for while
calculating the profit. Calculate the value of goodwill and pass the necessary journal entries for the
treatment of goodwill.

21. L, M and R were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm closes
its books on 31st March every year. On 31st August, 2021, L died. The partnership deed provided
that a deceased partner's share in the profits of the firm in the year of his death will be calculated on (4)
the basis of average profits of the previous two years. The profits for the years ended 31st March,
2020 and 31st March, 2021 were ₹ 5,00,000 and ₹ 7,00,000 respectively. Calculate L's share of profit
till the date of his death and pass necessary journal entry on the same date in the books of the firm.
OR
Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from
the firm on the following terms by giving a six-month notice in writing: The retiring partner shall be
paid:-
(i) the amount standing to the credit of his Capital Account and Current Account.
(ii) his share of profit to the date of retirement, calculated on the basis of the average profit of the
three preceding completed years.
(iii) half the amount of the goodwill of the firm calculated at 1 ½ times the average profit of the three
preceding completed years.
C gave notice on 31st March, 2022 to retire on 30th September, 2022, when the balance of his Capital
Account was ₹ 6,000 and his Current Account (Dr.) ₹ 500. Profits for the three preceding completed
years ended 31st March, were: 2020- ₹ 2,800; 2021- ₹ 2,200 and 2022- ₹1,600. Determine the amount
due to C as per the partnership agreement?
22. X Ltd has Rs. 10,00,000, 9% debentures due to be redeemed out of profits on 1st October, 2009 at a
premium of 5%. The company had a debenture redemption reserve of Rs. 4,14,000. Pass necessary
journal entries at the time of redemption. (4)
OR
Give the necessary journal entries for the following transactions on the dissolution of the firm of Amit
and Rahul on 31st March, 2023, after the transfer of various assets (other than cash) and the third-
party liabilities to Realisation Account. They shared profits and losses in the ratio of 2 : 1.
i. There was a bill of exchange of ₹ 10,000 under discount. The bill was received from Dinesh
who became insolvent.
ii. Bills Payable of ₹ 30,000 falling due on 30th April, 2023 was discharged at ₹ 29,550.
iii. Creditors of ₹ 30,000 took an over stock of ₹ 10,000 at 10% discount and the balance was
paid to them in cash.
iv. There was an old typewriter that had been written off completely. It was estimated to realize
₹ 600. It was taken away by Rahul at 25% less than the estimated price.
v. Amit agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ₹ 1,000 and to bear all realization expenses. Actual realisation expenses ₹
800 were paid by the firm.
vi. Loss on realization was ₹ 54,000.

23. Parth, Raman, and Zaisha are partners in firm manufacturing furniture. They have been sharing profits
and losses in the ratio of 5 : 3 : 2. From 1st April 2017, they decided to share future profits and losses
in the ratio of 2 : 5 : 3. Their Balance Sheet showed a debit balance of ₹ 4,000 in the Profit & Loss
Account; the balance of ₹ 36,000 in the General Reserve and a Balance of ₹ 12,000 in the Workmen's (6)
Compensation Reserve. It was agreed that
i. The goodwill of the firm is valued at ₹ 76,000.
ii. The Stock (book value of ₹ 40,000) was to be depreciated by 8%.
iii. Creditors amounting to ₹ 900 were not likely to be claimed.
iv. Claim on account of Workmen's Compensation amounted to ₹ 20,000.
v. Investments (book value ₹ 38,000) were revalued at ₹ 40,000.
 Pass the necessary journal entries for the above.
OR
Piyush, Puja and Praveen are partners sharing profits and losses in the ratio of [Link]. Their Balance
Sheet as on March 31st 2015 was as follows:

Partners decided that with effect from April 1, 2015, they would share profits and losses in the ratio
of [Link]. It was agreed that:
i. Stock be valued at Rs. 2,20,000.
ii. Machinery is to be depreciated by 10%
iii. A provision for doubtful debts is to be made on debtors at 5%.
iv. Building is to be appreciated by 20%
v. A liability for Rs. 5,000 included in sundry creditors is not likely to arise. Partners agreed
that the revised value are to be recorded in the books.
You are required to prepare journal, revaluation account, partner’s capital Accounts and revised
Balance Sheet.
24. X, Y and Z are partners in a firm sharing profits in the ratio of [Link]. On 31st March, 2019 their
Balance Sheet was:
(6)

Z retired on 1st April, 2019 from the business and the partners agree to the following:
i. Freehold Premises and Stock are to be appreciated by 20% and 15% respectively.
ii. Machinery and Furniture are to be reduced by 10% and 7% respectively.
iii. Provision for Doubtful Debts is to be increased to ₹ 1,500.
iv. Goodwill of the firm is valued at ₹ 21,000 on Zs retirement.
v. Continuing partners to adjust their capitals in their new profit-sharing ratio after retirement of Z
Surplus/deficit, if any, in their Capital Accounts will be adjusted through Current Accounts.
Prepare necessary Ledger Accounts and draw the Balance Sheet of the reconstituted firm.
25. Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2.
Inspite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby
river. The court ordered for the dissolution of their partnership firm on 31st March, 2012. Prachi was (6)
deputed to realise the assets and pay the liabilities. She was paid Rs. 1,000 as commission for her
services. The financial position of the firm was as follows:
Balance Sheet
Liabilities Amt (Rs.) Assets Amt (Rs.)
 Creditors 10,000 Furniture 37,000
Investment Fluctuation Fund 4,500 Stock 5,500
Prachi’s Capital 40,000 Investments 15,000
Ritika’s Capital 30,000 Cash 9,000
Ishita’s Capital 18,000
84,500 84,500

Following was agreed upon:

Prachi took over investments for Rs. 12,500. Stock and furniture realised Rs. 41,500. There was old
furniture which has been written-off completely from the books. Ritika agreed to take away the same
at the price of Rs. 3,000. Compensation paid to the employees amounted to Rs. 8,000. This liability
was not provided in the above balance sheet. Realisation expenses amounted to Rs. 1,000. Prepare
realisation account, partners’ capital accounts and cash account to close the books of the firm.
Also, identify the value being conveyed in the question.
26. A, B and C are partners sharing profits and losses equally. They agree to admit D for equal share. For
this purpose, the value of goodwill is to be calculated on the basis of four years’ purchase of average
profit of last five years. These profits were: (6)

On 1st January 2014, a scooter costing Rs 20,000 was purchased and debited to travelling expenses
account, on which depreciation is to be charged @ 25%. Calculate the value of goodwill after
adjusting the above.

Section – B
27. Earning capacity of a company is ascertained by:
(1)
a) Solvency ratios b) Profitability ratios c) Liquidity ratio d) Working Capital Ratio
28. Trade receivable turnover ratio 5 times, average trade receivables Rs. 60,000. Calculate net credit
revenue from operations.
a) Rs. 3,00,000 b) Rs. 2,00,000 c) Rs. 12,000 d) Rs.2,40,000 (1)
29. Cash and Cash Equivalents does not include _________.
(a) Cheques. (b) Balances with banks. (c) Inventories. (d) Bank deposits with more than 12 months
maturity (1)
30. Calculate return on Investment from the following information:
Net profit after Tax Rs.6,50,000, 12.5% convertible debentures Rs 8,00000, Income Tax 50%, Fixed
Assets at cost Rs.24,60,000, Depreciation reserve Rs.4,60,000, Current Assets Rs. 15,00,000, Current (1)
Liabilities Rs. 7,00,000
31. From the following Balance Sheets of Amrit Limited as at March 31, 2014 and 2015, Prepare a
Common Size balance sheet:
(3)
32. A. Calculate cost of Revenue from operations from the following information: Revenue from
operations Rs.12,00,000, Sale Return Rs.80,000, operating expenses Rs.1,82,000, operating ratio
92%. (3)
B. Calculate opening and closing trade receivables; if trade receivable turnover ratio is 3 times when
cash revenue from operations is 1/3rd of credit revenue from operations; cost of revenue from
operations is Rs. 3,00,000; Gross Profit is 25% of revenue from operations and trade receivables at
the end are 3 times more than that of in the beginning.
33. From the following particulars, prepare comparative statement of profit and loss of Narang Colours
Ltd. for the year ended March 31, 2014 and 2015:
(4)

34. Prepare Cash Flow Statement from the following information:

Particulars Note 31.3.2017 31.3.2016
no. Rs. Rs.
Equity and liabilities (6)
Shareholder’s Fund:
Share capital 1 4,50,000 4,50,000
Reserves and Surplus 3,78,000 3,56,000
Non-Current Liabilities
Long Term Borrowings:
Mortgage Loan 2,70,000 ---
Current liabilities
Trade Payables 1,34,000 1,68,000
Short term Provisions (provision for tax) 10,000 75,000
Total 12,42,000 10,49,000
II. Assets
Non- current Assets
Tangible Assets 3,20,000 4,00,000
Non-Current Investment 60,000 50,000
Current Assets
Current investments 17,000 19,000
Inventory 2,10,000 2,40,000
Trade Receivable 4,55,000 2,10,000
Cash and cash equivalents 1,80,000 1,30,000
Total
12,42,000 10,49,000
Notes to Accounts
Particulars 2017 2016
Rs. Rs.
1. Reserves and Surplus
General Reserve 3,10,000 3,00,000
Surplus i.e. Balance in Statement of P/L 68,000 56,000
3,78,000 3,56,000

Additional Information:
i) Investments costing Rs.8,000 were sold during the year for Rs.8,500
ii) Provision for Tax made during the year was Rs.9,000
iii) A part of the fixed assets costing Rs.10,000 was sold for Rs.12,000 during the year and profit was
included in the Statement of Profit and Loss
iv) Dividend paid during the year amounted to Rs.40,000