Pre-Board Examination 2021-20

Class XII
Accountancy
General Instructions:
1. This question paper comprises two Parts - A and B. There are 32 questions in the
question paper. All questions are compulsory.
2. Part A is compulsory for all candidates.
3. Part B has two options, i.e., Analysis of Financial Statements and Computerized
Accounting. You have to attempt only one of the given options.
4. Question nos. 1 to 13 and 23 to 29 are very short answer type questions carrying 1 mark
each.
5. Question nos. 14 and 30 are short answer type-I questions carrying 3 marks each.
6. Question nos. 15 to 18 and 31 are short answer type-II questions carrying 4 marks each.
7. Question nos. 19, 20 and 32 are long answer type-I questions carrying 6 marks each.
8. Question nos. 21 and 22 are long answer type-II questions carrying 8 marks cach.
9. There is no overall choice. However, an internal choice has been provided in 2 questions
of three marks, 2 questions of four marks and 2 questions of eight marks.

PART-A

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS, PARTNERSHIP FIRMS AND

COMPANIES

1. P, Q and R are partners in a firm sharing profits in the ratio 3 : 2:1. R is guaranteed a
minimum profit of Rs. 20,000 as his share of profit every year. Firm earned a profit of Rs. Rs.
90,000. Partners will get:
(a) P Rs.40,000; Q Rs.30,000; Rs.720,000 (b) P Rs. 45,000; Q Rs.30,000; R Rs.15,000
(c) P Rs.42,000; Q Rs.28,000: R Rs.20,000 (d) None of these

2. Complete the following statement:

_____________________________is valued at the time of dissolution of partnership.

3. Section 43 of Indian Partnership Act 1932 deals with dissolution of firm by:
(a) Mutual agreement (C) Notice
(b) Compulsory Dissolution (d) Order of court

4. A and R are partners with respective capital of 1,50,000 and 1,30,000, C comes as a new
partner for 1/5th share and contribute ? 1,20,000 as his capital and necessary amount for his
share of goodwill 5 in cash. The goodwill brought by C will be:
(a) Rs.40,000 (c) Rs.1,00,000

(b)Rs.50,000 (d) Rs.80,000

5. Z is a manager in a partnership firm and is entitled to receive a salary of Rs.8,000 per month
and a commission of 5% on net profit after charging such commission. Profit for the year is ?
Rs.13,56,000 before charging salary and commission. The total remuneration of Z is:
(a) Rs.1,50,000 (c) Rs.1,66,000
(b) Rs.96,000 (d) Rs.1,56,000

6. Choose the correct order of payment of the following in case of dissolution of partnership firm.
i. To each partner proportionately what is due to him/her from the firm for advances
distinguished from capital (i.e. partner's loan)
ii. To each partner proportionately what is due to him on account of capital
iii. For the debt of the firm to the third parties
(a) (i), (ii), (ii) (c) (iii), (ii), (i)
(b) (iii), (i), (ii) (d) (ii), (iii), (i)

7. Rama, Shama and Raina were three partners in the firm sharing profits and losses in the ratio
of 5:2:3. Raina has advanced a loan to the firm on which the interest is payable @ 12% p.a. as
specified in the deed. Rama started an argument with Raina that she should be paid interest @
6% p.a. Is Rama right?

8. P,Q, R are partners sharing profits and losses in the ratio 5:3:2. They decided to share future
profits equally in future with the effect from 1st April of this year. On this date, the Balance Sheet
showed a balance of 24,000 in General Reserve. Pass journal entry for it.

9. A, B and C were partners sharing profits and losses in the proportions of 3/8, 1/2 and 1/8
respectively.A retired and surrendered 1/3rd of her share in favour of B and remaining in favour
of C. The gaining ratio of the partners is:
(a) 2:1 (b) 1:2
(c) 1:1 (d) None of these

10, Pass the necessary journal entry for issue of 1,000 shares of Rs.100 each to Promoters of
the company?

11. Rishabh Ltd, took over assets of Rs.24,60,000 and liabilities of Rs.4,60,000 of JCV Ltd. at
an agreed value of Rs.22,00,000 payable Rs.5,08,000 by a bank draft and balance by the issue
of 9% Debentures of Rs.100 each at a premium at 20%.
The number of debentures issued by Rishabh Ltd. to settle the above transaction is:
(a) 13,800 (b) 14,200
(c) 14,100 (d) 14,600
12. Every receipt and payment, whether capital or revenue and irrespective of the period is
recorded in receipts and payments account. Why? Give reasons.

13. _______________ Account is an extension of profit and Loss A/c.

14. From the following particulars of Champion Club, prepare Receipts and Payments Account
for the year ended 31st March, 2020.

Particular Rs.

Cash at Bank as on 1st April 2019 28,000

Subscription received 1,52,000

Entrance Fee 35,000

Legacy 12,000

Secretary Honorarium 12,000

Sports Material sold off 25,000

Sale of Old Newspaper 18,000

Interest on Investment 3,000

Investment purchased 23,300

Donation for Match Fund 1,95,000

General Donation 17,000

Also find the Bank balance of the club on this day.
OR
On the basis of following information, calculate the amount of medicines to be debited to the
Income and Expenditure Account of Medicare Hospital for the year ended 31st March 2020:

Particulars 1st April 2019 (Rs.) 31st March 2020 (Rs.)

Stock of Medicines 1,32,500 1,70,400

Creditors for Medicines 2,72,800 3,52,600

Medicines purchased during the year ended 31st March 2020 were 16,94,000.

15. On 31st March 2020, the balances in the Capital Accounts of Raman, Naman and Chaman
after making adjustments for profits were Rs.1,60,000, Rs.1,20,000 and Rs.1,60,000
respectively. Subsequently,it was discovered that interest on capital had been omitted.
 i. The profit for the year ended 31st March 2020 was Rs.60,000.
ii. The interest on capital is to be allowed @ 10% p.a.
iii. The profit sharing ratio among the partners was 1:2:1.
iv. Show your working notes clearly, pass the necessary rectifying entry.

16. Tanya, Prisha and Divya were partners sharing profits in a ratio of 2:1:1. During the year,
Tanya's drawings were Rs.8,000 in the beginning of each quarter, Prisha's drawings were
Rs.5,000 per month at the end of every month and Divya's drawings were Rs.6,000 in the
middle of every month in the year. Calculate the interest on drawings @ 10% p.a. and pass
necessary journal entries for interest on drawings in case of fixed capital.

17. VKR Ltd. issued 900, 8% debentures of 50 each on 1st April 2020. Pass the necessary
journal entries of fixed capital method.in the following situations, assuming the whole amount is
called in lumpsum.
(a) When debentures were issued at a premium of 10% redeemable at a premium of 6%.
(b) When debentures were issued at par redeemable at a premium of 9%. 18.

18.Karan, Amish and Aman were partners in the firm sharing profits and losses in a particular
ratio. They decided to dissolve their firm on 31" March, 2020. Complete the following books of
accounts as prepared by them as on that date.

Dr. Realisation A/c Cr.

Particular Rs. Particular Rs.

To Sundry Assets: By Provision for doubtful debts 2,000

Machinery 50,000 By Trade Payables 30,000

Land & Building 1,00,000 By Karan's Capital A/c (Land & Building)
1,20,000
Debtors …….. By Bank:
2,20,000
Goodwill …….. Machinery …………….
29,000
To Aman's Capital A/c (Trade Payables) To Karan's Debtors (90% of the book value) 27,000
Capital A/c (Realisation …….
Goodwill (realised 50% less) ………... 92,000
Expense)
By Loss transferred to Capital A/cs:

Karan …………....

Amish …………….

Aman …………....
 Partner’s Capital A/c

Dr. Bank A/c Cr.

Or
R, S and T were partners sharing profits and losses in the ratio of 5:3:2 respectively. On 31st
March, 2020 their Balance Sheet stood as under:

T died on 1st August, 2020. It was agreed that:

a. Goodwill to be valued at 2/2 years' purchase of last four years' average profits which
were: 2016-17 - Rs.65,000, 2017-18 - Rs.60,000, 2018-19 - Rs.80,000 and 2019-20 -
Rs.75,000.
b. Machinery to be valued at 1,40,000; Patents at 40,000; Leasehold at 1,25,000 on 1*
August 2020.
c. For the purpose of calculating T's share in the profits for 2020, the profits in 2020 should
be taken to have accrued on the same scale as in 2019-20.
Pass necessary journal entries for the above.

19. (a) S Ltd. issued 20,000 shares of 10 each at a premium of 5%:

Rs. 2.50 per share on application

Rs. 4.00 per share on allotment (including premium)

Rs. 4.00 per share on first call

Subscription list was closed on 1st January of the year, by which date applications for 45,000
shares had been received. Allotment was made as follows:
List A: Applications for 5,000 shares were allotted in full
List B: Applications for 10,000 shares were allotted 5,000 shares on pro-rata basis.
List C: Applications for 30,000 shares were allotted 10,000 shares on pro-rata basis.
Application money in excess of that required on allotment could be utilised for calls.
All the shareholders paid the amounts due on allotment and call except L (who was allotted 300
shares under list B) and T (who was allotted 300 shares under list C). Both of these
shareholders paid only the application money. Calculate the amount received on allotment.

(b) Spark Ltd. has 50,000, 9% debentures of 100 each redeemable at a premium of 10% after
five years. According to the terms of the issue, interest is payable on half-yearly basis. Pass
journal entries for interest on debentures for the year ended 31st March 2020.

20. Following is the Receipts and Payments account of Gaurav Cricket Club for the year ended
31st March,2020.

Additional information:
(i) 50% of the entrance fee is to be capitalised.
(ii) Donation for building includes 10% general donation.
(iii) Subscription outstanding as on 1st April 2019 and 31st March, 2020 are Rs. 4,000 and Rs.
2,400 respectively. Subscription received in advance as on 31st March, 2020 is Rs.18,000.
(iv) The club had the following assets and liabilities as on 31st March, 2019.

Building Rs.90,000

Sports Equipments Rs.70,000

Furniture Rs.8,000

Match Fund Building Fund Rs.20,000

Building Fund Rs.1,40,000

Prepare Income and Expenditure Account for the year ended 31" March, 2020.
 Receipts and Payments A/c
Dr. for the year ended 31st march, 2020 Cr.
Receipts Rs. Payments Rs.

To Balance b/d 27,000 By Building 2,00,000

To Donation for building 1,03,000 By Match Expenses 9,000
To Life Membership Fee 32,000 By Furniture 35,000
To Donation for Match Fund 45,000 By 10% Investments 1,20,000
To Subscription 1,84,000 (Purchased on 1st April 2019)
To Locker Rent 5,000 By Salaries 36,000
To Interest on Investments 8,000 By Insurance 5,000
To Sale of Furniture 4,200 By Miscellaneous Expenses 3,000
(Book value Rs.8,000) By Balance c/d 12,600

To Entrance Fee 13,200

4,21,400 4,21,400

Additional information:
i. 50% of the entrance fee is to be capitalised.
ii. Donation for building includes 10% general donation.
iii. Subscription outstanding as on 1 April 2019 and 31 March, 2020 are Rs.4,000 and
Rs.2,400 respectively. Subscription received in advance as on 31" March, 2020 is
Rs.18,000.
iv. The club had following assets and liabilities as on 31st March, 2019.
Building Rs.90,000
Sports Equipments Rs.70,000
Furniture Rs.8,000
Match Fund Rs.20,000
Building Fund Rs.1,40,000
Prepare Income and Expenditure Account for the year ended 31" March, 2020.

21. A, B and C were partners in a firm sharing profits in the ratio of 3:23. The Balance Sheet on
31st March 2020, the date of C's retirement was as follows:
 Liabilities Rs. Assets Rs.

Creditors 20,000 Cash 90,000

Bills Payable 20,000 Debtors 80,000
Workmen Compensation Reserve 40,000 Stock 1,50,000
Capital Accounts: Furniture 50,000
A 2,00,000 Machinery 2,10,000
B 2,00,000 Goodwill 80,000
C 2,00,000 6,00,000 Deferred Revenue Expenditure 20,000
6,80,000 6,80000

The terms of agreement on C's retirement were as follows:

(i) Stock to be valued at Rs.2,00,000.

(ii) A provision of 5% for bad and doubtful debts to be made on debtors.
(iii) Machinery to be depreciated by 10%.
(iv) Furniture to be depreciated by Rs.6,200.
(v) Partners decided to share the profits equally in future.
(vi) Liability for workmen compensation amounted to Rs.40,000
(vii) Goodwill of the firm is valued at 80,000.
Prepare Revaluation Account and Partners' Capital Accounts after C's Retirement.
Or
Neetu and Shruti were partners in a firm sharing profits in the ratio 4:1. On 31st March, 2020
they admit Rashmi as a new partner for 1/4th share in profits of the firm and will bring Rs.35,000
as capital. On that date their Balance Sheet was as follows:

Liabilities Rs. Assets Rs.

Capitals: Investments 29,900
Neetu 54,000 Dentors 50,000
Shruti 35,000 89000 Less: Provision for bad debts (2,000) 48,000
Investment Fluctuation Reserve 4,000 Stock 10,500
Workmen Compensation Fund 6,000 Cash 10,600
99,000 99,000

It was agreed that:

i. Bad debts amounted to Rs.3,000 and Provision for doubtful debts is to be maintained at
same rate.
ii. Goodwill of the firm is valued at Rs.64,000 and Rashmi is able to bring half the amount
of her share of goodwill.
iii. Market value of Investments is Rs.27,400.
iv. Workmen compensation claim amounted to Rs.2,000.
v. Stock is overvalued by 5%. Half of the stock is taken over by Neetu and Shruti equally.
Prepare Revaluation A/c and Partners' Capital A/c.
22. Ojus Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.2 per share payable Rs.3
on application Rs.5 (including Rs.1 premium) on allotment and balance on first and final call.
Issue was oversubscribed to the extent of 23,000 shares. Applicants of 17,000 shares were
alloted only 5,000 shares. Applications for 11,000 shares were rejected. Rest were alloted
shares in full. Excess money received on application was applied towards allotment and the
balance was refunded. A shareholder holding 1,000 shares from full allotment category failed to
pay the allotment money and on his subsequent failure to pay first call money his shares were
forfeited. 600 shares were reissued at Rs.12 per share. Pass necessary Journal entries.

Best Venture India Ltd. invited applications for 30,000 shares of Rs.100 each at a premium of
Rs.20 per share payable as follows:
On Application Rs.40 (including Rs.10 premium)
On Allotment Rs.30 (including 10 premium)
On First call Rs.30
On Second & Final call Rs.20
Applications were received for 40,000 shares and pro-rata allotment was made on the
application for 35,000 shares. Excess application money is to be utilised towards allotment.
Rohan to whom 600 Shares allotted failed to pay the allotment money and his shares were
forfeited after allotment.
Armaan who applied for 210 shares failed to pay first call and his share were forfeited after first
call.Second and final call was not made. Out of Rohan's forfeited shares, 500 shares were
reissued as Rs.80 paid up for 60 per share.
Record necessary journal entries in the books of Best Venture India Ltd.

PART-B
ANALYSIS OF FINANCIAL STATEMENTS

23. Under which type of activity will you classify Commission and Royalty received' while
preparing Cash Flow Statement.

24. 2,000, 9% debentures of 100 each out of 8,000, 9% debentures the date of Balance Sheet.
They will be shown in the Current Liabilities as:
(a) Short-term Borrowings
(b) Other Current Liabilities
(c) Trade Payables
(d) Short-term Provisions

25. A company's revenue from operations is Rs.20,00.000, cost of revenue from operations is
Rs.14,00,000, closing inventories Rs.50,000 and indirect expenses are Rs.2,00.000. The
amount of gross profit on the basis of given information is:
(a) 40% (b) 25%
(c) 30% (d) 35%
26. Match the following activities of cash flow statement:

Column A Column B
(i) Proceeds from public deposits (a) Cash and Cash Equivalents
(ii) Furniture sold at a loss (b) Not recorded in cash flow statement
(iii) Purchase of machinery by issue of debentures (c) Investing Activities
(d) Financing Activities
27. How is cost of materials consumed calculated ?
28. What do you understand by intra-firm comparison?
29. Vertical Analysis is also known as _____________.
30. A company has a liquid ratio of 1 and current ratio of 2 and inventory turnover ratio of 5
times. It has a total current assets of 4,00,000. Find out the revenue from operations, if goods
are sold at a profit of 25% on cost.
Or
From the following information, find out the cost of revenue from operations; revenue from
operations and closing inventory.
Average Inventory Holdings (or Inventory Velocity) = 2 months
Gross Profit Ratio = 20%
Gross Profit = Rs.60,000
Closing inventory was Rs.5,000 in excess of opening inventory.

31. From the following Balance Sheets of PQR Ltd., prepare a Common-size Balance Sheet:

Particulars Note No. 31st March 31st March

2020 2019
Rs. Rs.

I. EQUITY AND LIABILITIES

1. Shareholder's Funds:
(a) Share Capital 2,00,000 99,000
(b) Reserve and Surplus 1,00,000 30,000
2. Current Liabilities:
(a) Trade Payables 50,000 25,000
Total 3,50,000 3,00,000
II.ASSETS
1. Non-Current Assets:
(a) Fixed Assets:
(i) Tangible Assets 87,500 99,000
(ii) Intangible Assets 35,000 30,000
2. Current Assets:
(a) Inventory 52,500 60,000
(b) Cash and Cash Equivalents 42,000 36,000
(c) Other Current Assets 1,33,000 75,000
Total 3,50,000 3,00,000
Under which headings and subheadings, the following items will be shown in the company's
Balance
Sheet:
(a) Loan payable on demand (b) Goods acquired for reselling
(c) Subsidy reserve (d) Commission received in advance
(e) Cash credits
(f) Premium payable on redemption of debentures
(g) Provision for gratuity
(h) Calls-in-arrears

32. From the following Balance Sheets of Grover Industries Ltd. as on 31st March, 2019,
prepare a 'Cash Flow Statement' as per AS-3 (revised):

Particulars Note 31st March 31st March

No. 2020 2019
Rs. Rs.

I. EQUITY AND LIABILITIES

1. Shareholder's Funds: 1 2,00,000 1,50,000

(a) Share Capital 50,000 70,000
(b) Reserves and Surplus
2. Current Liabilities: 25,000 70,000
Trade Payables Total 2,75,000 2,90,000

II.ASSETS

1. Non-Current Assets:
(a) Fixed Assets : 2
(i) Tangible Assets 80,000 1,05,000
(ii) Intangible Assets 60,000 70,000

2. Current Assets: 75,000 90,000

(a) Inventory 40,000 10,000
(b) Cash and Cash Equivalents 3 20,000 15,000
(c) Other Current Assets 2,75,000 2,90,000
Total
Notes to Accounts:
Particulars 31st March 2020 31st March 2019
Rs. Rs.

(1) Reserves and Surplus:

Surplus i.e. Balance in Statement of Profit and (50,000) (30,000)
Loss General Reserve 1,00,000 1,00,000
50,000 70,000
(2) Tangible Assets
Machinery 90,000 1,10,000
Less: Accumulated Depreciation (10,000) (5,000)
80,000 1,05,000
(3) Other Current Assets: Prepaid insurance
20,000 15,000

Additional Information:
(a) A machinery costing Rs. 20,000 (accumulated depreciation Rs.7000) is sold for Rs.
10,000.
(b) During this year, a patent was purchased for Rs. 50,000.