1. Std XII Page 4 of 6 Prelim_I._Accountancy
Sarvanaman Vidya Mandir
I - Preliminary Examination 2014-15
Std.: XII Com Marks: 80
Duration: 3 hours Accountancy (055) Date:25 /12/2014
Name: Roll No.:
General instructions:
1. This question paper has two parts- A and B.
2. Part A is compulsory for all.
3. All parts of the questions should be attempted at one place only.
4. This paper consists of 3-5 marks of value based questions.
PART – A
(Accounting for partnership Firms and Companies)
1. When a new partner gives cash for goodwill, the amount is credited to : 1
(a) Cash account
(b) Capital accounts of the new partner
(c) Premium for goodwill account
2. Give one purpose for which the amount received as securities premium may be utilized. 1
3. When Amitabh and Bharatsingh sharing profit and losses in the ratio of 5 : 3, admit Chandra Kant
as a partner giving him 1/5th share of profits, this will be given by Amitabh and Bharatsingh
a. In equal ratio.
b. In the ratio of their profits.
c. In the ratio of their capital. 1
4. Debenture holders are owners of a company. True or false? Why? 1
5. Which values are shown by a company which opts for a Right issue of shares? 1
6. Amar and Bhīma are partners in a firm sharing profits in the ratio of 4: 3. On 1st January 2012, they
admitted Chita as a new partner who joins the firm for 1/3rd share in profit & is to pay Rs. 1, 00,000
as a capital and Rs. 25,000 as a premium for goodwill. C could not bring the premium in cash. As
between Amar and Bhīma, they decided to share profits and losses equally. On the date of C’s
admission, the Balance sheet of Amar and Bhīma showed a General reserve of Rs. 70,000 and debit
balance of Rs. 7,000 in their profit and loss account. Pass necessary journal entries. 3
7. A, B and C were partners in a partnership firm. On 1st April 208, their fixed capital accounts stood at
Rs. 50,000, Rs. 25,000 and Rs. 25,000 respectively. As per the provisions of the partnership deed:
a. C was entitled to a salary of Rs. 5,000 p.a.
b. All the partners were entitled to Interest on capital @ 5 %.
c. Profits were to be shared in the ratio of capitals.
The net profit for the year ending 31st March 2009 was Rs. 33,000 and 31st March 2010 was of
Rs. 45,000 was divided equally without providing for the above items.
Pass adjustment journal entry to rectify the above error. 3
8. Anita, Asha and Amrita are partners sharing profits in the ratio of 3:2:2 respectively. From 1st
January 2010, they decided to share profits in the ratio of 1:3:2. The partnership deed provides that in
the event of any change on the profit sharing ratio, the goodwill should be valued at three years’
purchase of the average profit of five years profits. The profits and losses for the preceding five years
are: 2005: Rs. 1,20,000; 2006: Rs. 3,00,000; 2007: Rs. 3,40,000; 2008: Rs. 3,80,000; loss of 2009:
Rs. 1,40,000.
Showing the working clearly, give the necessary journal entries to record the change. 3

2. Std XII Page 4 of 6 Prelim_I._Accountancy
9. Mamta and Seema are partners in a firm with capitals of Rs. 5, 00,000 each. They admit Rakhee as a
partner for 1/4th share in the profits of the firm. She brings Rs. 8, 00,000 as her share of capital. Their
profits and loss account shows a credit balance of Rs. 4, 00,000 as on the date of admission.
Give journal entries to record goodwill on Rakhee’s admission. 4
10. On 1st April 2012, Janta Ltd was formed with authorized capital of Rs. 50, 00,000 divided into 1, 00,000
equity shares of Rs. 50 each. The company issued prospectus inviting applications for 90,000 shares.
The issue was priced as under.
On application- Rs. 15; on allotment- Rs. 20; on call- balance amount.
The issue was fully subscribed and the company allotted shares to all the applicants. The company did
not make the call during the year.
Show the following:
a. Share capital in the Balance sheet of the company as per Revised schedule VI, Part I of the
companies Act 1956.
b. Also prepare notes to the accounts for the same. 4
11. Mudra Ltd had 10,000, 12 % Debentures of Rs. 100 each, due for redemption at a premium of 5 % on
March 31, 2009. The Board of directors of the company decided to follow SEBI guidelines for
maintaining Debenture Redemption Reserve. They transferred the required amount of DRR and
redeemed the debentures fully. Pass necessary journal entries. 4
12. Following is the Balance sheet of Pushpa, Rushi and Sheema who were sharing profits in the ratio of
2:1:2 as on 31-03-2012.
Liabilities Amount Assets Amount
Sundry creditors
Employees Provident fund
Profit and loss account
Capital:
Pushpa: 1,20,000
Rushi: 80,000
Sheema: 1,00,000
Total
38,000
2,000
60,000
3,00,000
4,00,000
Goodwill
Land and building
Stock
Debtors
Bank balance
Total
40,000
2,00,000
65,000
30,000
65,000
4,00,000
Pushpa died 12th June 2012 and the partnership Deed provided, the executor of Pushpa was entitled to:
a. Amount standing to the credit of her capital account.
b. Interest on capital @ 8 5 p.a up to the date of death.
c. Her share of profit up to the date of death on the basis of average profit of past three years.
d. Her share of goodwill valued on the basis of two times the average profits of last three years.
e. Total Profits for the past three years was 1, 80,000.
f. Rushi and Seema acquired Puspa’s share in the ratio 1: 5.
Prepare Pushpa’s capital a/c to be rendered to her executor. Also calculate new profit sharing ratio. 6
13. Jayant and Ramakant were partners in a firm. On 31st March 2013 their Balance Sheet was as follow.
Liabilities Amount Assets Amount
Capital a/cs
Jayant : Rs. 3,00,000
Ramakant :Rs. 2,00,000
Creditors
Workmen Compensation fund
Jayant’s Current account
5,00,000
75,000
45,000
15,000
Bank
Debtors
Stock
Furniture
Machinery
Ramakant’s Current a/c
70,000
2,00,000
20,000
20,000
3,12,000
13,000
Total 6,35,000 Total 6,35,000

3. Std XII Page 4 of 6 Prelim_I._Accountancy
The firm was dissolved on that date and the following arrangements were decided up on:
a. Jayant took over 40 % of the stock at 20 % less than its book value and the remaining stock was
sold for Rs. 15,000.
b. Furniture realized Rs. 20,000.
c. An unrecorded asset was sold for Rs. 3,000
d. Machinery was sold at a loss of Rs. 75,000.
e. Debtors were realized at a discount of Rs. 10,000.
f. There was an outstanding bill for repairs for which Rs. 38,000 were paid.
Prepare Realization account. 6
14. (a) On 1.4.2005, ship Ltd had made an issue of 2,500, 6 % debentures of Rs. 100 each. The company
during the year 2006-07 purchased for cancellation 500 of these debentures. The company paid Rs. 90
per debenture for 400 debentures and Rs. 94 per debenture for the rest. The expenses on purchase
amounted to Rs. 700. Pass journal entries in the books of the company for the period 2006-07. 3
(b) X Ltd obtained a loan of Rs. 4, 00,000 from IDBI Bank. The company issued 5,000, 9 % debentures
of Rs. 100 each as a collateral security for the same. Show how these items will be presented in the
Balance sheet of the company. 3
15. A, B and C were partners sharing profits and losses in the ratio of 2:2:1. C retired on 31st March 2012.
The Balance Sheet of the firm on 31st December 2011 stood as follows:
Balance sheet
Liabilities Amount Assets Amount
Capital
A:
B:
C:
General reserve
Sundry creditors
6,00,000
6,00,000
4,00,000
4,00,000
1,00,000
Land and building
Investments
Stock
Sundry debtors
Cash in hand
Cash in bank
10,00,000
1,25,000
2,50,000
4,00,000
1,00,000
2,25,000
Total 21,00,000 Total 21,00,000
In order to arrive at the balance due to C, it was mutually agreed that:
a. Land and building be valued at Rs. 12, 00,000.
b. Investment to be valued at Rs. 1, 00,000.
c. Stock to be taken at Rs. 3, 00,000.
d. Goodwill is valued at two year’s purchase of the average profit of the last five years.
e. C’s share of profit up to the date of retirement be calculated on the basis of the average profit of
the preceding three years.
f. The profits of the preceding five years were as under:
Year 2007 2008 2009 2010 2011
Profit Rs. 2,00,000 2,34,900 3,00,100 2,75,500 3,24,500
g. Amount payable to him is to be transferred to his Loan account, carrying 10 % interest p.a.
You are required to prepare the revaluation account, partners’ capital account and balance sheet as on
31st March 2012. 8
OR
Raghu and Rishu are partners sharing profits in the ratio of 3:2. The Balance Sheet of the firm on 31st
March 2009 was as follows:
Balance Sheet
Liabilities Amount Assets Amount
Creditors
Employee Provident Fund
Investment Fluctuation Fund
Capital
Raghu: 1,19,000
Rishu: 1,12,000
86,000
10,000
4,000
2,31,000
Cash in hand
Sundry debtors………….. 42,000
-provision for bad debts… 7,000
Investment
Building
Plant and machinery
77,000
35,000
21,000
98,000
1,00,000
Total 3,31,000 Total 3,31,000
Rishabh was admitted on that date for 1/4th share of profit on the following terms:

4. Std XII Page 4 of 6 Prelim_I._Accountancy
a. Rishabh will bring Rs. 50,000 as his share of capital.
b. Goodwill of the firm is valued at Rs. 42,000 and Rishabh will bring his share of goodwill in cash.
c. Building was appreciated by 20 %.
d. All debtors were good.
e. There was a liability of Rs. 10,800 included in creditors which was not likely to arise.
f. New profit sharing ratio will be 2:1:1.
g. Capital of Raghu and Rishu will be adjusted on the basis of Rishabh’s share of capital and any
excess or deficiency will be made by withdrawing or bringing in cash by the concerned, as the case
may be.
You are required to prepare the Revaluation account, Partners’ capital account and Balance sheet of new
firm.
16. AB Ltd invited applications for issuing 75,000 equity shares of Rs. 100 each at a premium of Rs. 30 per
share. The amount was payable as follows:
On Application and allotment Rs. 85 per share including premium.
On First and final call - the balance amount.
Applications for 1, 27,500 shares were received. Applications for 27,500 shares were rejected and
shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application
and allotment was adjusted towards sums due on first and final call. The calls were made. The amount
was duly received except first and final call money for 1000 shares applied by Bhargav. His shares were
forfeited. All the forfeited shares were reissued at Rs. 150 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of AB Ltd. 8
OR
Money well Ltd invited applications for 50,000 equity shares of Rs. 10 each at a discount of 10 %
payable as follows:
Rs. 2 On application
Rs. 3 On allotment
Rs. 2 On the first and
Rs. 2 on final call.
Company received applications for 1, 25,000 shares. The allotment was done as follows:
a. Applicants for 15,000 shares were refunded the application money.
b. Applicants for 60,000 shares were allotted 30,000 shares.
c. The remaining applicants were allotted 20,000 shares.
The excess application money was adjusted towards sum due on allotment and calls if any.
Mohan who had applied for 3000 shares in (group-b) failed to pay the allotment money and both
the calls.
Ramesh who was allotted (group-c) 1,500 shares paid the calls money along with the allotment money.
Pass the necessary journal entries to record the above.
PART – B

5. Std XII Page 4 of 6 Prelim_I._Accountancy
(Financial statement Analysis)
17. Give one example of an activity which remains financial activity for every enterprise. 1
18. Give one difference between operating activity and investing activity. 1
19. The current ratio of Reliance Ltd is 2:1. State giving reasons whether sale of goods at loss would
improve, reduce or not change the ratio. 1
20. Under what heads and sub heads the following items will appear in the Balance sheet of a company
as per Revised Schedule VI, Part I of the companies Act, 1956?
(a) Tax reserve
(b) Interest on calls in advance
(c) Stores and spares. 3
21. Prepare a comparative Income statement from the following information: 4
Particulars Note
No.
2013-14 2014-15
Revenue From Operations 175% of Cost of
RFO
200 % of Cost of
RFO
Cost of RFO 3,00,000 5,00,000
Operating expenses 5 % of RFO 5 % of RFO
Income tax rate 5 % of Net Profit
Before Tax
5 % of Net Profit
Before Tax
22. Find the value of Current Liabilities and Current Assets, if Current Ratio is 2.5: 1 and Liquid Ratio is
1.2: 1 and value of inventory of the firm is 78,000. 4
23. From the following Balance sheet and additional information of Good Wood Ltd, prepare cash flow
statement. 6
Balance sheet of Good Wood Ltd
As at 31st March 2013
Particulars 2012-13 2013-14
I EQUITY AND LIABILITIES
(1) Shareholders’ Fund :
(a) Equity share capital………………………………..
(b) Reserve and surplus………………………………..
(2) Current Liabilities :
(a) Trade Creditors……………………………………
(b) Proposed dividend………………………………..
Total
II ASSETS
(1) Non-current Assets :
(a) Tangible fixed assets………………………….
(2)Current Assets :
Inventories ……………………………………..
Trade receivables ………………………………
Cash and cash equivalent ………………………
Total.
30,000
7,000
8,000
2,500
47,500
20,000
9,000
12,000
6,500
47,500
45,000
18,500
9,500
4,000
77,000
49,000
9,000
10,000
9,000
77,000
Additional information:1. Income tax paid during the year was Rs. 4500.
2. Dividend paid during the year was @ 12 %.

6. Std XII Page 4 of 6 Prelim_I._Accountancy
Sarvanaman Vidya Mandir
I - Preliminary Examination 2014-15
Std.: XII Com Marks: 20
Duration: ½ hour Accountancy (055) Date:25 /12/2014
Name: Roll No.:
Answer the following questions in one line or one word.
1. What is gaining ratio? How is it calculated?
2. Kavan and Pawan are partners. They admitted Sawan as 1/5th share in the firm. In which ratio old
Partners will sacrifice their share in favour of new partner?
3. Identify any two matters that need adjustment at the time of admission of a new partner.
4. When is partners’ executor account prepared?
5. What is public company?
6. What A/c entry will pass at the time of forfeiture of shares originally issued at discount?
7. How debentures are different than shares? Give any two points of difference.
8. Why are reserves and surplus distributed among the partners on reconstitution of the firm?
9. How dissolution of partnership firm is different from reconstitution of partnership?
10. How does ‘the location of businesses’ affect the goodwill of the business?
11. Give meaning and formula to find sacrificing ratio.
12. In case of dissolution of a firm which liabilities are to be paid first?
13. Why does a newly admitted partner bring goodwill in the firm?
14. State the meaning of calls in advance. What interest is allowed on such advances?
15. A partner who devotes more time to a business than others is entitled to get a salary.
16. Under which capital method, the Current Accounts of Partners are maintained?
17. Give four items that may appear on the credit side of Partners’ Current Accounts.
18. What do you understand by Reconstitution of a partnership Firm?
19. Do you distribute reserves at the time of Reconstitution of a firm? Why?
20. Can a partner be exempted from sharing the losses in a firm? If yes, under which circumstances?