CBSE Accountancy Class 12 Sample Paper 7 Page 1

Sample Paper 7
Accountancy
Class XII Session 2023-24
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 Firms and Companies
1. A Debenture of ` 100 each, issued at ` 40 premium, to be redeemed at half of the premium received on
issue, out of which ` 70 (including ` 10 premium) was called up and paid up. The uncalled Capital will
be_______.
(a) ` 40
(b) ` 30
(c) ` 80
(d) ` 20
o
_______can be issued at discount but______cannot be issued at discount except Sweat Equity
Shares.
(a) Loan, Shares
(b) Debentures, Shares
(c) Debentures, Bonds
(d) Shares, Debentures

2. Asha and Nisha are partner’s sharing profits in the ratio of 2:1. Kashish was admitted for 1/4 share of which
1/8 was gifted by Asha. The remaining was contributed by Nisha.
Goodwill of the firm is valued at ` 40,000. How much amount for goodwill will be credited to Nisha’s Capital
account?
(a) ` 20,000
(b) ` 2,500
(c) ` 40,000
(d) ` 5,000
o
On reconstitution of a firm, any deferred revenue expenditure appearing in the Balance Sheet is:
(a) Realised in Cash (b) Debited to Revaluation A/c
(c) Debited to Partners’ Capital A/cs in old ratio (d) Credited to Partners’ Capital A/cs in new ratio

3. At the time of admission of Sunder, a new partner, Land appearing in the book at ` 2,70,000 which was
found undervalued by 10%. Entry will be:
(a) Dr. Revaluation A/c and Cr. Land A/c by ` 27,000
(b) Dr. Land A/c and Cr. Revaluation A/c by ` 30,000
(c) Dr. Revaluation A/c and Cr. Land A/c by ` 30,000
(d) Dr. Land A/c and Cr. Revaluation A/c by ` 27,000

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4. Out of the following which one is not a mode of Dissolution by order of Court:
(a) A partner is found guilty of misconduct.
(b) A partner becomes a person of unsound mind.
(c) When business of the firm becomes unlawful.
(d) The business of firm cannot be carried on except at a loss.

5. ABN India Private Limited decided to issue 50,000 Equity shares. It gave its directors and employees right
to buy 10,000 of the above shares. The type of issue is:
(a) Private Placement
(b) Rights Issue
(c) Public Issue
(d) ESOP

6. Rajesh and Ramesh are sharing profit and losses in the ratio 4:3. They agreed to share profits in the ratio
3:2 in future. Which statement is correct in this regard?
(a) A gained 2/35th share and B sacrificed 2/35th share of profit.
(b) A sacrificed 1/35th share and B gained 1/35th share of profit.
(c) A and B sacrificed 1/35th of their share of profit.
(d) A gained 1/35th share and B sacrificed 1/35th share of profit.

7. Newskart Information Limited issued 40,000, 10% Debentures of ` 100 each at certain rate of discount and
were to be redeemed at Par. Securities Premium of ` 1,50,000 and Current year profit of ` 50,000 were used
to write off Discount on Issue of Debentures. What is the rate of issue per debenture ?
(a) 95% (b) 5%
(c) 6% (d) 10%
o
Ecom Logistics Limited issued 40,000, 11% Debentures of ` 100 each at 10% premium and to be redeemed
at a certain rate of premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and
Loss was debited with ` 2,00,000. At what rate of premium, these debentures are redeemed?
(a) 5% (b) 15%
(c) 11% (d) 10%

8. Assertion (A): When a new partner is admitted, partnership firm remains continuous. The old partnership
comes to an end and a new partnership agreement comes into existence.
Reason (R): At the time of admission of a partner, the partnership firm dissolves.
(a) Both (A) and (R) are incorrect.
(b) (A) is correct but (R) is wrong.
(c) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(d) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

9. A, B and C are partners sharing profits in the ratio 5:3:2. As per the new agreement, A agreed to give 1/2
of his share to B and C in the ratio 3:2. The new profit sharing ratio will be:
(a) 6 : 3 : 3
(b) 5 : 9 : 6
(c) 3 : 2 : 1
(d) None of these
o
Anita and Aliya are partners in a firm. They admit Anandi as a new partner for 1/4th share. They have
a General Reserve of ` 20,000 which they want to continue in the books. The journal entry on Anandi’s
admission will be:

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

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CBSE Accountancy Class 12 Sample Paper 7 Page 3

(a) Anandi’s Capital A/c Dr. 5,000

To Anita’s Capital A/c 2,500
To Aliya’s Capital A/c 2,500
(b) Anita’s Capital A/c Dr. 2,500
Aliya’s Capital A/c Dr. 2,500
To Anandi’s Capital A/c 5,000
(c) General Reserve A/c Dr. 20,000
To Anita’s Capital A/c 10,000
To Aliya’s Capital A/c 10,000
(d) General Reserve A/c Dr. 20,000
To Anita’s Capital A/c 7,500
To Aliya’s Capital A/c 7,500
To Anandi’s Capital A/c 5,000

10. Harish and Ritesh are equal partners in a firm with capitals of ` 3,00,000 and ` 2,00,000 respectively. As
per the deed, interest on capital @ 10% p.a. is allowed to the partners. During the year firm earned a profit
of ` 25,000.
The profit will be appropriated to the partners as:
(a) ` 30,000 and ` 20,000
(b) ` 15,000, and ` 10,000
(c) ` 12,500 each
(d) None of these
o
Which of the following is distributed among partners on reconstitution of partnership firm?
(a) Taxation Reserve
(b) Provident fund
(c) Provision for doubtful debts
(d) Employees

11. A and B are partners in a firm. The net divisible profit as per Profit and Loss Appropriation A/c is `
2,50,000. The total interest on partner’s drawings were ` 4,000. A is entitled to a salary of ` 4,000 per quarter
and B ` 40,000 per annum. The net profit/loss earned during the year as:
(a) ` 2,10,000
(b) ` 2,90,000
(c) ` 3,08,000
(d) ` 3,02,000

12. Raman, Tapan and Naman are partners in a firm with profit sharing ratio 3 : 2 : 1 respectively. The extract
of their Balance Sheet is as follows

Liabilities Amount (`) Assets Amount (`)

Workmen Compensation Reserve 48,000
At the time of retirement of Naman, if liability for workmen compensation to the extent of ` 24,000 is to be
created, then at what amount will workmen compensation reserve be shown in new balance sheet?
(a) ` 56,000 (b) ` 24,000
(c) ` 52,000 (d) Not to be shown in new balance sheet
o
Mukesh and Rakesh are partners in a firm sharing profits and losses in the ratio of 5 : 1.

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An Extract of Balance Sheet

Liabilities Amount (`) Assets Amount (`)
Machinery 4,000
If value of machinery in the balance sheet is undervalued by 20%, then at what value will machinery be
shown in new balance sheet?
(a) ` 3,200
(b) ` 5,000
(c) ` 4,400
(d) ` 4,800

13. Out of 8,000 shares of ` 10 each issued by X Ltd. to public, a holder of 300 shares did not pay the allotment
money @ ` 5 each and another shareholder of 800 shares did not pay first and final call money of ` 2 each.
The company forfeited shares of both these shareholders. The amount to be credited to share forfeiture is:
(a) ` 7,300
(b) ` 6,300
(c) ` 7,200
(d) ` 5,800

14. Paper and Pen are partners. Paper draws a fixed amount at the beginning of every month. Interest on
drawings is charged @6 % p.a. At the end of the year 31 March 2022 interest on Paper’s drawings amounts
to ` 1,560. Monthly drawings of Paper were:
(a) ` 7,000
(b) ` 4,000
(c) ` 8,000
(d) ` 60,000
o
Vishu, a partner withdrew ` 4,000 at the end of each quarter and interest on drawings was calculated as `
360 at the end of accounting year 31 March 2022. What is the rate of interest on drawings charged?
(a) 10% p.a.
(b) 12% p.a.
(c) 6% p.a.
(d) 8% p.a.

DIRECTION : Read the following hypothetical situation and answer Q. No. 15 and 16
Amex Export Limited was incorporated on 1st April, 2020 with registered office in Jaipur. The capital clause
of memorandum of association reflected a registered capital of ` 2,00,000 equity shares of ` 10 each and
25,000 preference shares of ` 50 each.
Since some large investments were required for building and machinery, the company in consultation with
vendors, M/s Sultan International Limited issued 25,000 equity shares and 5,000 preference shares at par to
them in full consideration of assets acquired. Besides this the company issued 50,000 equity shares for cash
at par payable as 3 on application, ` 2 on allotment, ` 3 on first call and ` 2 on second call.
Till date, second call has not yet been made and all the shareholders have paid except Rishant who did
not pay allotment and calls on his 75 shares and Sonu who did not pay first call on his 50 shares. Shares of
Rishant were then forfeited and out of them 25 shares were reissued at ` 12 per share.

15. How many equity shares of the company have been subscribed?
(a) ` 71,475 (b) ` 74,950
(c) ` 78,340 (d) None of these

16. The amount of security premium reflected in the balance sheet at the end of the year will be_______.
(a) ` 100

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CBSE Accountancy Class 12 Sample Paper 7 Page 5

(b) ` 250
(c) ` 50
(d) ` 150

17. Kiyansh, Ansh and Sriansh are partners in a firm. On 1st April, 2021 the balance in their capital accounts
stood at ` 6,00,000, ` 5,00,000 and ` 4,00,000 respectively. They shared profits in proportion of 4:2:3.
Partners are entitled to interest on capital at 7% p.a. and salary to Ansh and Sriansh at ` 10,000 per
quarter and ` 2,000 per month respectively as per the provisions of the partnership deed. Ansh’s share of
profit excluding interest on capital and salary, is guaranteed at not less than ` 30,000 p.a. Sriansh’s share
of profit including interest on capital but excluding salary is guaranteed at a minimum of ` 60,000 p.a. Any
deficiency arising on that account shall be met by Kiyansh. The profits of the firm for the year ended 31st
March, 2022 amounted to ` 2,59,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2022.

18. The Balance Sheet of Farha and Safia who were sharing profits and losses in the ratio of 3:2 as at 31st
March, 2022 was:

Liabilities Amount (`) Assets Amount (`)

Sundry Creditors 1,00,000 Cash at Bank 10,000
Profit and Loss A/c 85,000 Debtors 50,000
Farha’s Capital A/c 48,000 Stock 70,000
Safia’s Capital A/c 32,000 Furniture 20,000
Plant and Machinery 1,00,000
Advertisement Suspense 15,000
2,65,000 2,65,000
They admit Razia as a partner from 1st April, 2022 with 1/5th share in the profits of the firm. Razia brings
in ` 50,000 as her capital. Calculate the amount of goodwill and pass necessary journal entries on admission
of new partner.
o
Banny and Daniel are partners in a firm sharing profits in the ratio of 2:1. Their capitals were ` 4,40,000
and ` 2,20,000 respectively. On 1st April, 2021 they admit Zubin as a new partner. The new profit sharing
ratio of Banny, Daniel and Zubin is decided to be 4:2:1. Zubin brings ` 1,20,000 as his capital and ` 60,000
for his share of goodwill. Partners are allowed interest on capitals @ 10% p.a. and are charged interest on
drawings @ 12% p.a. Profits for the year ending 31st March, 2022 before allowing or charging interest was
` 2,40,000. The drawings of the partners were Banny ` 5,000 per month in the beginning of each month,
Daniel ` 15,000 at the end of each quarter and Zubin ` 60,000. Prepare Partners’ Capital accounts for the
year ending 31st March, 2022.

19. Jaswant Enterprises Limited took over assets of ` 7,00,000 and liabilities of ` 2,00,000 from Nexon Private
Limited for a purchase consideration of ` 4,59,500. ` 8,500 were paid through a bank draft of three months
and balance by the issue of equity shares of ` 10 each at a premium of 10%.
Pass necessary journal entries for the above transaction.
o
Flip Photo India Private Limited issued 7,500 11% Debentures of ` 100 each at a premium of 50%. The whole
of the amount was payable on application. Applications for 20,000 Debentures were received. Applications
for 5,000 Debentures were rejected and Debentures were alloted to the remaining applicants on prorata basis.
Pass necessary journal entries for the above transactions.

20. Samson and Ted are partners in a firm sharing profits in the ratio of 3:1. On 1.4.2022 they admitted Patrick
into partnership for 1/4th share in the profits of the firm. Patrick brought his share of goodwill (premium)

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Page 6 Sample Paper 7 CBSE Accountancy Class 12

in cash. Goodwill of the firm was valued on the basis of 2 years purchase of last three years average profits.
The profits of last three years were:
2019-20 ` 90,000
2020-21 ` 1,30,000
2021-22 ` 86,000
During the year 2021-22 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. Complete the following journal entries for issue of Debentures in the following cases:

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

(a) Bank A/c Dr. ...(1)...
To Debenture Application and Allotment A/c ...(2)...
(Being money received on 200, 7% Debentures at ` 165 each
including ` 15 premium)
Debenture Application and Allotment A/c Dr. ...(3)...
.........................(4).......................A/c Dr. 10,000
To 7% Debenture A/c 30,000
To ....................(5).......................A/c ...(6)...
To Premium on Redemption of Debentures A/c 10,000
(Being issue of 200 Debentures of ` 150 each at a premium
of 10%, redeemable at a premium of ` 50)
(b) Bank A/c Dr. ...(7)...
To Debenture Application and Allotment A/c ...(8)...
(Being application and allotment money received on 900
debentures @ ` 95 each)
.........................(9).........................A/c Dr. ...(10)...
.........................(11).......................A/c Dr. ...(12)...
To 15% Debenture A/c ...(13)...
To Premium on Redemption of Debenture A/c 9,000
(Being issue of debentures at discount of 5%, redeemable at
premium of 10%)

22. Pass necessary journal entries for the following at the time of dissolution of partnership firm of Badri and
Balraj who are sharing profits and losses in the ratio of 3 : 2.
(a) Machinery costing ` 40,000 were taken over by Balraj at 10% less than the book value.
(b) There were unrecorded investment costing ` 30,000 which were taken over by creditors of ` 75,000 in
part payment, rest creditors were paid at 10% discount.
(c) Badri agreed to take ` 3,800 in full settlement of his loan of ` 4,000 given to the firm.
(d) Expenses of realisation ` 15,000 were paid by partner Balraj, of which ` 12,000 were borne by firm.

23. Mrinal Export Private Limited issued 10,000 equity shares of 100 each at a premium of 10 per share payable
as follows: ` 20 on application, ` 40 on allotment, ` 20 on first call and ` 30 on second and final call. 10,000
shares were applied for and allotted. All money due was received with the exception of both calls on 300
shares held by Emily. These shares were forfeited. Give necessary journal entries by opening Calls in Arrears
Account. Also state the minimum reissue price of forfeited shares.
o
Tanwar Private Limited issued 3,00,000 equity shares of ` 10 each at a premium of ` 2 per share, payable
as ` 3 on application, ` 5 on allotment (including premium) and the balance in two calls of equal amount.

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CBSE Accountancy Class 12 Sample Paper 7 Page 7

Applications were received for 4,00,000 shares and pro-rata allotment was made to all the applicants. The
excess application money was adjusted towards allotment. Baldev who was allotted 800 shares failed to pay
both the calls and his shares were forfeited after the second call. Record necessary journal entries in the
books of Tanwar Private Limited by opening Calls in Arrears Account.

24. Robin, Tanish and Lakshit were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet
as on 31st March, 2022 was as under:

Liabilities Amount (`) Assets Amount (`)

Capital Account : Plant and Machinery 30,000
Robin 30,000 Premises 20,000
Tanish 30,000 Investment 10,000
Lakshit 20,000 80,000 Goodwill 5,000
Contingency Reserve 8,000 Patent 6,000
Employee Provident Fund 4,000 Stock 13,000
Sundry Creditors 10,000 Sundary Debtors 6,000
Cash at Bank 10,000
Advertisement Suspense A/c 2,000
1,02,000 1,02,000
Lakshit died on 31-5-2022. The agreement between the executor of Lakshit and the partners stated that;
Goodwill of the firm was to be valued at 2 1 2 times of the average profits of last four years. The profits of
four years were: 2018-19 ` 13,000; 2019-20 ` 12,000, 2020-21 ` 16,000 and 2021-22 ` 15,000. The patents are
to be valued at ` 8,000, Machinery at ` 25,000 and Premises ` 25,000. The share of profit of Lakshit should
be calculated on the basis of the profit of last year.
Calculate Lakshit’s share of:
(a) profit for the period till the time of his death.
(b) goodwill.
(c) profit or loss on revaluation of assets and liabilities.
(d) accumulated profits and losses
Also pass necessary journal entries for the above settlement along with amount payable to Lakshit’s executor.
o
Lalit and Aditi were partners in a firm with capital of 1,20,000 and 1,60,000 respectively. On 1st April, 2022
they admitted Gurleen as a partner for 1/4th share in profits on his payment of 2,00,000 as his capital and
` 90,000 as his share of goodwill.
On that date the creditors of the firm were ` 60,000 and Bank overdraft was ` 15,000. Their assets apart
from Cash included Stock ` 10,000, Debtors ` 40,000, Plant and Machinery ` 80,000, Land and Building
` 2,00,000. It was agreed that Stock should be depreciated to 8,000, Plant and Machinery by 20%, ` 5,000
should be written off as bad debts and Land and Building should be appreciated by 25%.
Prepare the Revaluation Account and Capital Accounts of Partners.

25. Ranbir and Vishal are partners sharing profits in the ratio of 2 : 1. Gopal is admitted into the firm for 1/4
share of profits. Gopal brings in ` 20,000 in respect of his capital. The capitals of old partners Ranbir and
Vishal, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are ` 45,000 and
` 15,000 respectively. It is agreed that partners’ capitals should be according to the new profit sharing ratio.
Determine the new capitals of Ranbir and Vishal and record the necessary journal entries assuming that
the partner whose capital falls short, brings in the amount of deficiency and the partner who has an excess,
withdraws the excess amount.

26. Navratna Limited (pharmaceutical company) appointed marketing expert, Ms Ankita as the CEO of the
company, with a target to penetrate their roots in the rural regions. Ms Ankita discussed the ways and

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Page 8 Sample Paper 7 CBSE Accountancy Class 12

means to achieve target of the company with financial, production and marketing departmental heads and
asked the finance manager to prepare the budget.
After reviewing the suggestions given by all the departmental heads, the finance manager proposed
requirement of an additional fund of 52,50,000.
Navratna Limited is a zero-debt company. To avail the benefits of financial leverage, the finance manager
proposed to include debt in the capital structure. After deliberations, on April 1, 2021, the board of directors
had decided to issue 6% Debentures of 100 each to the public at a premium of 5%, redeemable after 5 years
at 110 per share.
You are required to answer the following questions:
(i) Pass Journal entry for the allotment of debentures.
(ii) Pass Journal entry to write off loss on issue of debentures.
(iii) Prepare Loss on Issue of Debentures Account.

PART—B
Analysis of Financial Statements

27. What will be the effect of Issue of Bonus shares on Debt to Equity Ratio?
(a) Decrease
(b) Increase
(c) Neither increase nor decrease
(d) Either increase or decrease

28. Which of the following ratios is not a solvency ratio?

(a) Proprietary Ratio
(b) Total Assets to Debt Ratio
(c) Current Ratio
(d) Debt to Equity Ratio
o
What is the importance of financial statements analysis for creditors?
(a) to know long-term solvency
(b) to know profitability
(c) to know short-term solvency
(d) None of these

29. Nisaan Industries Limited is carrying on a mutual fund business. It invested ` 10,00,000 in shares of a
company and received a dividend of 10%. Cash Flow from Investing Activities will be.
(a) ` 1,00,000
(b) ` 10,00,000
(c) ` 2,000
(d) Nil
o
Issue of equity shares is shown under_______ in Cash Flow Statement.
(a) operating activities
(b) financing activities
(c) investing activities
(d) None of these

30. From the following information find out the amount of goodwill written off:
31st March, 2022 31st March, 2021
Goodwill ` 2,00,000 ` 3,00,000

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CBSE Accountancy Class 12 Sample Paper 7 Page 9

Additional Information:
Purchase of Goodwill during the year ` 30,000.
(a) ` 3,30,000
(b) ` 1,00,000
(c) ` 1,30,000
(d) ` 30,000

31. State the heads under which following items are depicted in Statement of Profit and Loss.
(i) Interest paid
(ii) Carriage inwards
(iii) Audit fee

32. State any three objectives of financial statements analysis?

33. From the following information, Compute Debt Equity Ratio and Current ratio.
Long-term Borrowings ` 3,00,000
Current Liabilities ` 50,000
Inventory ` 6,000
Prepaid Expenses ` 4,000
Non-current Assets ` 3,60,000
Current Assets ` 90,000
o
Under which of the major heads will the following items be shown while preparing Balance Sheet of a
company as per Schedule III of the Companies Act 2013:
(a) Stores and spares (b) Unclaimed dividend
(c) Interest accrued but not due on borrowings (d) Calls-in-advance
(e) Loose tools (f) Provision for tax
(g) Computer software (h) Current maturities of long-term borrowings

34. From the following Balance Sheets of Daksha Industries Limited as on 31st March, 2022 and 31st March,
2021, prepare Cash Flow Statement as per AS-3 (Revised).

Particulars Note 31 March 2022 31 March 2021

No. (`) (`)
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(a) Equity Share Capital 1 12,00,000 8,00,000
(b) Reserves and Surplus 4,00,000 3,50,000
2. Non-Current Liabilities :
(a) Long-term Borrowings 4,40,000 3,50,000
3. Current Liabilities :
(a) Short-term Borrowings (Bank Overdraft) 30,000 45,000
(b) Trade Payables 60,000 50,000
(c) Short-term Provisions 2 84,000 60,000
Total 22,14,000 16,55,000
II. ASSETS
1. Non-Current Assets :
Property, Plant and Equipments and Intangible Assets
Property, Plant and Equipments : Fixed Tangible Assets 12,00,000 9,00,000
2. Current Assets :

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(a) Current Investments (Marketable) 84,000 60,000

(b) Inventories 2,00,000 1,00,000
(c) Trade Receivables 3,10,000 2,30,000
(d) Cash and Cash Equivalents 4,20,000 3,65,000
Total 22,14,000 16,55,000
Additional Information:
(a) Depreciation charged on tangible fixed assets was ` 1,20,000.
(b) During the year, company paid interest ` 36,000 on its long term borrowings.

******

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