Students must start practicing the questions from CBSE Sample Papers for Class 12 Accountancy with Solutions Set 9 are designed as per the revised syllabus.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Time : 3 Hr.
Max. Marks : 80

General Instructions:

  • This question paper contains 34 questions. All questions are compulsory.
  • This question paper is divided into two parts, Part A and B.
  • Part – A is compulsory for all candidates.
  • Part – B has two options i.e.
    • Analysis of Financial Statements and
    • Computerised Accounting. Students must attempt only one of the given options.
  • Question 1 to 16 and 27 to 30 carries 1 mark each.
  • Question 17 to 20, 31 and 32 carries 3 marks each.
  • Question from 21, 22 and 33 carries 4 marks each.
  • Question from 23 to 26 and 34 carries 6 marks 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.

PART – A (60 Marks)
(Accounting For Partnership Firms & Companies)

Question 1.
A and B are partners sharing profits in the ratio of 3 : 1. They admit C for 1/4 share in the future profits. The new profit sharing ratio will be:
(a) A 9/16, B 3/16, C 4/16
(b) A 8/16, B 4/16, C 4/16
(c) A 10/16, B 2/16, C 4/16
(d) A 8/16, B 9/16, C 10/16 (1)
Answer:
(a) A 9/16, B 3/16, C 4/16
Explanation: C’s share = 1/4
= 1/4 x 4/4 = 4/16
Remaining share = 1 – 1/4 = 3/4
A’s new share = 3/4 of 3/4 = 9/16
B’s new share = 1/4 of 3/4 = 3/16

Question 2.
X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2.They decide to share the future profits in the ratio of 3 : 2 : 1. Workmen compensation reserve appearing in the balance sheet on the date if no information is available for the same will be:
(a) Distributed among the partners in old profit sharing ratio
(b) Distributed among the partners in new profit sharing ratio
(c) Distributed among the partners in capital ratio
(d) Carried forward to new balance sheet without any adjustment (1)
Answer:
(a) Distributed among the partners in old profit sharing ratio

Explanation: If there is any reserve in the balance sheet with no further information, then it is distributed among the partners in their old ratio.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 3.
E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was 72. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustments against allotment money due from F will be:
(a) 60 shares; ₹ 7120
(b) 340 share; ₹ 7160
(c) 320 shares; ₹ 7200
(d) 300 shares; ₹ 7240

OR

Debentures are shown in the Balance Sheet of a company under the head of
(a) Non-current Liabilities
(b) Current Liabilities
(c) Share Capital
(d) None of these (1)
Answer:
(d) 300 shares; ₹ 240
Explanation:
No. of shares allotted to F
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-41
= 300 shares
Amount received on application by F
= 420 shares x ₹ 2 = ₹ 840
Less: Amount transferred to application
= 300 shares x ₹ 2 = ₹ 600
Due amount transferred to allotment ₹ 240

OR

(a) Non-current Liabilities

Explanation: Debentures are issued as long term borrowing. That’s why it is considered as non-current liabilities.

Question 4.
A and B were partners in a firm sharing profit or loss equally. With effect from 1st April, 2019 they agreed to share profits in the ratio. of 4 : 3. Due to change in profit sharing ratio, B’s gain or sacrifice will be:
(a) Gain 1/14
(b) Sacrifice 1/14
(c) Gain 4/7
(d) Sacrifice 3/7

OR

Interest on drawings of the Partners is a :
(a) Loss to business
(b) Profit to business
(c) Profit to partners
(d) Loss to Bank (1)
Answer:
(b) Gain 1/14
Explanation:
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-6

OR

(b) Profit to business

Explanation: Interest on drawing is income/ Profit of the business because it is given by partners to the firm for their drawings.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 5.
When Goodwill is not purchased goodwill account can:
(a) Never be raised in the book
(b) Be raised in the book
(c) Be partially raised in the books
(d) Be raised as per the agreement of the partners. (1)
Answer:
(a) Never be raised in the book

Explanation: Goodwill which is generated by the owners of the firm by their operations are known as self-generated goodwill. It is not shown in the balance sheet of the business. Only purchased goodwill shown in the balance sheet.

Question 6.
Premium on redemption of debentures is provided at the time of
(a) After 10 years.
(b) Issue of debentures.
(c) Writing off.
(d) Redemption of debentures

OR

Identify the false statement.
(a) Debentures can be issued for cash.
(b) Debentures can be issued as collateral security.
(c) Debentures can be issued instead of dividends.
(d) Debentures can be issued for consideration other than cash. (1)
Answer:
(c) Writing off

Explanation: Premium provided on redemption of debentures are considered loss for the company so it is written off during the years.

OR

(c) Debentures can be issued instead of dividends.

Explanation: Debentures can issued for cash, as collateral security for loan or for consideration other than cash but can’t for dividend.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 7.
Assertion (A): Cumulative preference share capital is the share capital in which unpaid amount of dividend to be paid in the next year along with unpaid amount of dividend of previous year.
Reason (R): Participative preference share capital holders have right to participate in the decision making activities relating to their interest. (11)
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false (1)
Answer:
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

Explanation: Both Assertion and Reason are true but both are bot interrelated. Both explains about the different types of preference shares

Question 8.
For the distribution of revaluation profit in case firm is following Fixed Capital Accounts method is transferred to ……………… accounts
(a) Current account
(b) Capital Account
(c) Any of A and B
(d) None of these
Answer:
(a) Current account

Explanation: if a firm is maintain fixed capital accounts so all the entries other than capital recorded in current account.

Read the following paragraph and answer the following Question.
Bhavya and Naman were partner in a firm carrying on a tiffin service in Hyderabad. Bhavya noticed that a lot of food is left at the end of the day. To avoid wastage, she suggested that it can be distributed to the needy. Naman wanted that It should be mixed with the food being served the next day.

Naman then give a personal that if his share in the profit increased, he will not mind free distribution of leftover food. Bhavya profit sharing ratio 1:2 with immediate effect. On that date revaluation of assets and reassessment of liability was parried out that resulted into a gain of Rs. 18,000. On that day at the Goodwill of the firm was valued at Rs. 1,20,000 (1)

Question 9.
Sacrificing ratio equal to:
(a) Old ratio minus new ratio
(b) New share minus old share
(c) Old share plus new share
(d) Old share (1)
Answer:
(a) Old ratio minus new ratio

Explanation: Sacrificing ratio is the difference between old ratio and new ratio.

Question 10.
Pass the journal entry for adjustment of Good will.
(a) Naman’s Capital a/c Dr. 1,20,000 To Bhavya’s Capital a/c 1,20,000
(b) Bhavya’s Capital a/c Dr. 60,000 To Naman’s Capital a/c 60,000
(c) Naman’s Capital a/c Dr. 20,000 To Bhavya’s Capital a/c 20,000
(d) Naman’s Capital a/c Dr. 1,00,000 To Bhavya’s Capital a/c 1,00,000 (1)
Answer:
(a) Namans Capital a/c Dr. 1,20,000
To Bhavya’s Capital a/c 1,20,000

Explanation: Due to change in profit sharing ratio, Naman gain and Bhavya sacrifice.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 11.
What is the sequence of Share capital which is shown in notes to accounts:
(a) Authorized Capital, Issued capital, Subscribed capital
(b) Issued capital, Subscribed capital, Authorized Capital
(c) Subscribed Capital, Authorized Capital, Issued capital
(d) None of these (1)
Answer:
(a) Authorized Capital, Issued capital, Subscribed capital

Question 12.
AB Ltd purchased a Machinery from XY Ltd for ₹ 4,50,000. AB Ltd immediately paid ₹ 90,000 by Bank Draft and the balance by issue of preference share of ₹ 100 each at 20% premium for the purchase consideration of Machinery to XY Ltd. Shares issued by AB Ltd?
(a) 3,000 preference shares
(b) 30,000 preference shares
(c) 3,600 preference shares
(d) 36,000 preference shares (1)
Answer:
(a) 3,000 preference shares

Explanation:
Remaining balance = ₹ 4,50,000 – ₹ 90,000 = ₹ 3,60,000
No. of shares issued = ₹ 3,60,000 / ₹ 120
= 3,000 Preference Shares

Question 13.
12,000 shares of ₹ 100 each forfeited due to nonpayment of allotment of ₹ 40 per share and first & final call of ₹ 30 per share. Out of the forfeited shares, 9,000 shares were reissued at ₹ 80 per share fully paid. Which of the following amount of share forfeiture account will be transferred to Capital Reserve Account?
(a) 90,000
(b) 1,80,000
(c) 3,60,000
(d) 2,70,000 (1)
Answer:
(d) 2,70,000
Explanation: Amount transferred to share forfeiture account during forfeiture = 12,000 shares x ₹ 30 per share = ₹ 3,60,000
Amount transferred to share forfeiture account during reissue = 9000 shares x ₹ 20 per share = ₹ 1,80,000 Capital reserve balance = ₹ 3,60,000 – ₹ 1,80,000 = ₹ 2,70,000

Question 14.
Sacrificing ratio is used to distribute in case of admission of a partner:
(a) Reserves
(b) Goodwill
(c) Revaluation Profit
(d) Balance in Profit and Loss Account (1)
Answer:
(b) Goodwill

Explanation: Share of goodwill brought by new partner distributed among old partners in sacrificing ratio as compensation

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 15.
In the absence of an express agreement as to who will contribute to new partners’ share of profit, it is implied that the old partners will contribute:
(a) Equally
(b) In the ratio of their capitals
(c) In their old profit-sharing ratio
(d) In the gaining ratio

OR

Revaluation Account is a:
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the Above (1)
Answer:
(a) Equally

Explanation: If there is no agreement then, it will shared by old partner in equal ratio.

OR

(b) Nominal Account

Explanation: Revaluation account is opened by the firm to record the gains and Losses arising from revaluation of assets and reassessment of liabilities at the time of reconstitution of the firm. Hence, the output is either a profit or a Loss, so it is a nominal account.

Question 16.
Which of the following is correct profit or loss in case the amount received from the sale of assets is 7 50,000, total assets is ₹ 60,000, total liabilities ₹ 20,000 and realisation expenses % 2,000 ?
(a) ₹ 12,000 Loss
(b) ₹ 32,000 Profit
(c) ₹ 30,000 Loss
(d) ₹ 12,000 Profit (1)
Answer:
(b) ₹ 32,000 Profit

Question 17.
Write the various matters that need adjustments at the time of retirement of a partners. (3)
Answer:
The various matters that need adjustments at the time of retirement of a partners are as follows:

  • Calculation of new profit sharing ratio and gaining ratio
  • Calculation of goodwill and prepare the necessary entries in the books.
  • Revaluation of assets and re-assessment of the liabilities
  • Adjustment in respect of unrecorded assets and liabilities
  • Distribution of accumulated profits and losses among all the partners
  • Ascertainment of share of profit or Loss tiLL the date of retirement/death
  • Adjustment of capital, if necessary
  • Settlement of the amounts due to retired/ deceased partner

Question 18.
Reena and Raman are partners with capitals, of ₹ 3,00,000 and ₹ 1,00,000 respectively. The profit for the year ended March 31, 2017 was ₹ 1,80,000, before paying rent for her personat building to be used as godown for firm to Reena payable at ₹ 5000 per month. Interest on capital is to be allowed at 6%

p.o. Roman was entitled to a saLary of ₹ 30,000 p.a. The drawings of partners were ₹ 30,000 and 20,000. The interest on drawings to be charged to Reena was ₹ 1,000 and to Raman, ₹ 500. Assuming that Reena and Raman are equal partners. State their share of profit after necessary appropriations.

OR

Govind is a partner in a firm. He withdrew the following amounts during the year 2015 – 16:
April 30, 2019 6,000
June 30, 2019 4,000
Sept. 30, 2019 8,000
Dec. 31, 2019 3,000
Jan. 31, 2020 5,000

The interest on drawings is to be charged @ 6% p.a. The books are closed on March 31, every year. Calculate interest on drawing. (3)
Answer:
Dr. Profit and Loss Appropriation A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-7

Working Notes:
Interest Calculation:
Interest on Reena’s capital @ 6% p.a. = 3,00,000 x 6/100= ₹ 18,000
Interest on Raman’s capital @ 6% p.a.= ₹ 1,00,000 x 6/100 = ₹ 6,000
Annual Rent paid to Reena’s personaL building = ₹ 5,000 x 12 = ₹ 60,000

OR

In this case, varying amounts are withdrawn at different intervals
When the partners withdraws varying amounts of money at different time intervals, the interest is computed using the product method. In this method, for each withdrawal, the money withdrawn is muLtipLied by the period (usuaLLy expressed in months) for which it remains withdrawn during the financiaL year.

The period is calculated from the date of the withdrawal to the last day of the accounting year. The products thus caLcuLated are totaLLed. Then the totaL of the products interest at the specified rate is calculated as under:
Interest = Total of Products x Rate x 1/12

Statement Showing Calculation of Interest on Drawings

Date Amount Time Period Product
April 30, 2019 6,000 11 months 66,000
June 30, 2019 4,000 9 months 36,000
Sep 30, 2019 8,000 6 months 48,000
Dec 31, 2019 3,000 3 months 9,000
Jan 31, 2019 5,000 2 months 10,000
Total 1,69,000

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 19.
Rose Ltd. purchased assets of ₹ 9,90,000 from Bhagat. Payment was made by issuing 11% Debentures of ₹ 100 each.
The journal entries when debentures have been issued: (i) at par, (ii) at a premium of 10% and (iii) at a discount of 10% including writing off discount on Issue of Debentures.

OR

To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to set up a power plant. For raising funds the company decided to issue 8,50,000 equity shares of ₹ 10 each at a’ premium of ₹ 3 per share.

The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis. Pass necessary journal entries for the above transactions in the books of the company. (3)
Answer:
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-8

OR
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-9

Question 20.
The Profit & Loss account of a partnership firm of A.B and C disclosed the following net results

Year 2010-11 2011-12 2012-13 2013-14
Profit/Loss ₹1,25,000 ₹l.50.000 ₹ 12,500 ₹2,30,000
(Profit) (Profit) (Loss) (Profit)

Calculate the value of goodwill on the basis of 2 years’ purchase of the past 4 years’ simple average profit, considering the following points:

  • There was a profit of ₹ 50,000 from speculation in the year 2011-12 which is already included in the books of account.
  • In the year 2012-13, a machine was destroyed by fire causing a loss of ₹ 62,500. This being terminal depreciation, was set off against the profits of the year 2012-13.
  • The profit of the year 2013-14 includes a profit of ₹ 5,000 on sale of a fixed asset.
  • The total fair remuneration of the partners’ services is ₹ 25,000 p.a. which has not been charged to P&L a/c so far. (3)

Answer:
Computation of Net Profit

Year Profit/Less Adjustment Net Profit
2010-11 +1,25,000 Nil 1,25,000
2011-12 +1,50,000 -50,000 (Speculation loss) 1,00,000
2012-13 -12,500 +62,500 (Depreciation) 50,000
2013-14 +2,30,000 -5,000 (Profit on sale of fixed asset) 2,25,000
+4,92,500 +7,500 5,00,000

Average Profit (5,00,000 / 4) 1,25,000
Less: Fair remuneration for partners’ services 25,000
Actual Average Profit 1,00,000
Goodwill = Actual Average Profit x No. of years’ Purchase
Goodwill = ₹ 1,00,000 x 2 = ₹ 2,00,000

Question 21.
Journalize the following cases:
(A) A Ltd. Forfeited 200 shares of Rs. 10 each fully called up held by X for non payment of allotment money of Rs. 3 per share and First & Final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were reissued to Y for Rs. 8 per shares.

(B) A Ltd. Forfeited 100 shares of Rs. 100 each issued at a premium of 50% to be paid at time allotment on which first call of Rs. 30 per equity share was not received, final call of Rs. 20 is yet to be made. These shares were reissued at Rs. 70 per share at Rs. 80 paid up. (4)
Answer:
Case (i)
Journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-10

Case (ii)
Journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-11

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 22.
A – B and C commenced their partnership business on 1st April, 2020. They share profits and losses in the ratio of 3 : 2 : 1. They paid into bank ₹ 20,000, ₹ 14,000 and ₹ 10,000, respectively as their capitaL During the year ended 31st March, 2021, the partners had drawn ₹ 3,800, ₹ 3,400 and ₹ 2,800, respectively.

On 31st March, 2021, they dissolved the firm and A took at ₹ 10,000, B took over furniture at ₹ 4,000. Debtors were taken over by C at ₹6,000. There was a bank balance of ₹ 2,000 after having paid the creditors. Show necessary ledger accounts to close the books of the firm. (4)
Answer:
Memorandum Balance Sheet
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-12

Dr. Realisation A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-13

Dr. Partners Capital Account Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-14

Dr. Bank A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-15

Question 23.
Kishna Ltd. issued 15,000 shares of ₹ 100 each at a premium of ₹ 10 per share, payable as follows:
On application ₹ 30
On allotment ₹ 50 [including premium]
On first and final call ₹ 30
All the shares subscribed and the company received all the money due, with the exception of the allotment and call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share at an issue price of ₹ 120 each. Give journal entries in the books of the company.

OR

Naman Ltd. issued 20,000 shares of ₹ 100 each, payable ₹ 25 on application, ₹ 30 on allotment, ₹ 25 on first call and the balance on final calL All money duly received except Anubha, who holding 200 shares did not pay allotment and calls money and Kumkum, who holding 100 shares did not pay both the calls. The directors forfeited the shares of Anubha and Kumkum. Give journal entries. (6)
Answer:
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-16

Working Notes:
During Applications Phase:
Application money = ₹ 30 per share
No. of applications = 15,000
Total application money = 15,000 x ₹ 30 = ₹ 4,50,000

During Allotment Phase:
Premium = ₹ 10 per share
Allotment money (including premium) = ₹ 50 per share
Total allotment money due = 15,000 x ₹ 50 = ₹ 7,50,000
Total Premium money due = 15,000 x ₹ 10 = ₹ 1,50,000
Share Capital = ₹ 7,50,000 – ₹ 1,50,000 = ₹ 6,00,000
No. of shares in arrears = 150
No. of shares paid = 15,000 – 150 = 14,850
Total Allotment money received = 14,850 x ₹ 50 = ₹ 7,42,500
Calls in Arrears = 150 x ₹ 50 = ₹ 7,500

During First and Final Call Phase:
Total First and Final Call money due = 15,000 x ₹ 30 = ₹ 4,50,000
No. of shares (on which call money was not received) = 150
No. of shares = 15,000 – 150 (on which call Total First and Final money received) = 14,850
Total.First and Final money received = 14,850 x ₹ 30 = ₹ 4,45,500
Calls in Arrears = 150 x ₹ 30 = ₹ 4,500

During Forfeiture of shares:
No. of shares forfeited = 150
Share Capital of Forfeited shares = 150 x ₹100 = ₹ 1500
Premium not received = 150 x ₹ 10 = ₹ 1,500
Calls in Arrears during allotment = ₹ 7,500
Calls in Arrears during first and final call = ₹ 4,500
Total Calls in Arrears = ₹ 7,500 + ₹ 4,500 = ₹ 12,00
Amount paid for application = 150 x ₹ 30 = ₹ 4,500
Note: This amount will, be forfeited
.‘. Forfeited Amout = ₹ 4,500

During re-issue of shares:
Face Value of each share = ₹ 100
Premium collected = ₹ 20
Share Capital = 150 x ₹ 100 = ₹ 1500
Total Premium paid = 150 x ₹ 20 = ₹ 3,000

OR

Journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-17

Working Notes:
During Applications Phase:
Application money = ₹ 25 per share
No. of Shares = 20,000
Total. application money = 20,000 x ₹ 25 = ₹ 5,00,000

During Allotment Phase:
Allotment money = ₹ 30 per share
No. of shares in arrears = 200
No. of shares paid = 20000 – 200 = 19,800
Total allotment money received = 19,800 x ₹ 30 = ₹ 5,94,000
Call in Arrears = 200 x ₹ 30 = ₹ 6,000

During First Call Phase:
First Call Money = ₹ 25 per share
No. of shares in arrears = 200 + 1oo = 300
No. of shares paid = 20,000 – 300 = 19,700
Total first call money received = 19,700 x ₹ 25 = ₹ 4,92,500
Calls in Arrears = 300 x ₹ 25 = ₹ 7,500

During Second and Final Call Phase:
Second and Final Call Money = 20 per share
No. of shares ¡n arrears = 200 + 1oo = 300
No. of shares paid = 20,000 – 300 = 19,700
Total money received = 19,700 x ₹ 20 = ₹ 3,94,000
Calls in Arrears = 300 x ₹ 20 = ₹ 6,000

Forefeiture Amount:
Application money of (200 + 100) shares = 300 x ₹ 25 = ₹ 7,500
Allotment money of 100 shares = 100 x ₹ 30 = ₹ 3,000
Total. forfeited amount = ₹ 7,500 + ₹ 3,000 = ₹ 10,500
Calls in Arrears from allotment phase = ₹ 6,000
Calls in Arrears from first call phase = ₹ 7,500
CalLs in Arrears from second and final call phase = ₹ 6,000
Total. Calls in Arrears = ₹ 6,000 + ₹ 7,500 + ₹ 6,000 = ₹ 19,500
Share capital of 300 forfeited shares = 300 x ₹ 100 = ₹ 30,000

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 24.
Ajay and Subodh sharing profits in the proportion of 3/4 and 1/4 showed the following as their Balance Sheet on 31st March 2021
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-1
They admit Manoj into partnership on 1st April, 2021 on the following terms:
1. Manoj pays by cheque ₹ 14,000 as his capital for 1/5th share in the future profits.

2. Goodwill of the firm to be valued at ₹ 20,000. Manoj is not able to pay any amount for goodwill.

3. Stock and Furniture be reduced by 10%, and a 5% Provision for Doubtful Debts to be created on Debtors.

4. The value of Land to be appreciated by 20%.

5. The Capital Accounts of all partners be readjusted on the basis of their new profit sharing arrangements and any additional amount be temporarily credited to their Current Accounts and be immediately withdrawn by them. Make Journal entries, Revaluation a/c, Partners’ Capital a/cs and the opening Balance Sheet of the new firm.

OR

The Balance Sheet of M,N and O who are sharing profits and losses in the propc-tion of 3 : 2 : 1 respectively was as follows on 31st March 2021:
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-2
M retires from the business on 1st April, 2021, and his share in the firm is to be ascertained on a revaluation of the assets as follows: Stock ₹ 20,000, Furniture ₹ 3,000, Plant and Machinery ₹ 9,000, Motor Bike ₹ 20,000, and ₹ 850 are to be provided for doubtful debts.

The Goodwill of the firm is agreed to be valued at ₹ 6,000 and M’s share of goodwill is to be adjusted in the accounts of N and O. M is to be paid ₹ 11,050 in cash on retirement and the balance in three equal yearly instalments with interest at 5% per annum on 1st April each year. Show the necessary accounts and Balance Sheet. (6)
Answer:
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-18

Dr. RealisationA/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-19

Dr. Partners CapitaL Account Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-20

Dr. Partners Capital Account Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-21

Working Notes
New profit sharing ratio:
Manoj’s share = \(\frac { 1 }{ 5 }\)
Bakincel 1 – \(\frac { 1 }{ 5 }\) = \(\frac { 4 }{ 5 }\)
Aja’s new share = \(\frac { 4 }{ 5 }\) x \(\frac { 3 }{ 5 }\) = \(\frac { 12 }{ 20 }\) = \(\frac { 3 }{ 5 }\)
Subodh’snewshare = \(\frac { 4 }{ 5 }\) x \(\frac { 1 }{ 4 }\) = \(\frac { 4 }{ 20 }\) = \(\frac { 1 }{ 5 }\)
Manoj’s share = \(\frac { 1 }{ 5 }\)
New ratio of Ajay, Subodh and Manoj = 3 : 1 : 1

Calculation of New Capital:
Manoj’s capital after adjustments for goodwill is ₹ 14,000 – ₹ 4,000 = ₹ 10,000
Therefore, on the basis of Manoj’s capital, the capital of the new firm should be: 10,000 x \(\frac { 5 }{ 1 }\) = ₹ 50,000
Thus, the proportionate capital of the three partners in the ratio 3 : 1 : 1 will be:
Thus, the proportionate capital. of the three partners in the ratio 3 : 1 : 1 will, be:
Ajay 50,000 x \(\frac { 3 }{ 5 }\) = 30,000
Subodh 50,000 x \(\frac { 1 }{ 5 }\) = 10,000
Manoj 50,000 x \(\frac { 1 }{ 5 }\) = 10,000
Excess of Ajay’s capital = ₹ 37,575 – ₹ 30,000 = ₹ 7,575.
Excess of Subodh’s capital = ₹ 18,525 – ₹ 10,000 = ₹ 8,525.

OR

Dr. Realisation A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-22
Dr. Partners CapitaL Account Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-23

Balance Sheet of N & O
as of 1st April 2021
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-24

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 25.
M, N and O were partners in a firm sharing profits and losses equally. Their Balance Sheet on 31 – 12.2014 was as follows:
Balance Sheet of M, N & O
as at 31st March 2020
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-3
N died on 14th March, 2015. According to the Partnership Deed, executers of the deceased partner are entitling to:
i. Balance of partner’s capital A/c

ii. Interest on capital @ 5% p.a.

iii. Share of goodwill calculated on the basis of twice the average of past three years’ profits.

iv. Share of profits from the closure of the last accounting year till the date of death on the basis of twice the average of three completed year’s profits before death. Profits for 2012, 2013 and 2014 were Rs. 80,000, Rs. 90,000, Rs. 1,00,000 respectively.

Show the working for deceased partner’s share of goodwill and profits till the date of his death. Pass the necessary journal entries and prepare N’s Capital A/c to be rendered to his executers. (6)
Answer:
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-25

Dr. N’s CapitaL A/c A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-26

Working Notes
1. Calculation of Goodwill
Average profit for 3 years (80,000 + 90,000 + 1,00,000)/3 = 90,000
Goodwill of the firm = Average Profit x No. of years of Purchase = 90,000 x 2 = 1,80,000
N’s Share in Goodwill = 1,80,000 x 1/3 = 60,000

2. Time from the date of last balance Sheet (31st December, 2014) to the date of death (14th March, 2015) = 31 days of January + 28 days of Feb (2015 is not a leap year) + 14 days of March = 73 days

Question 26.
On 1st April, 2019, Sun India Ltd., issued 10,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at par as follows:
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-4
Interest is paid annually on 31st March. You are required to pass the journal entries for issue of debentures, interest for the three years and prepare Discount on Issue of Debentures Account. (6)
Answer:
journal
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-27

Dr. Discount on Issue of Debentures Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-28

PART – B (20 Marks)
(Analysis of Financial Statements) Option – I

Question 27.
Which analysis considered as static:
(a) Horizontal analysis
(b) Vertical analysis
(c) External analysis
(d) Internal analysis

OR

When bad position of the business is tried to be depicted as good, it is known as
(a) Personal Bias
(b) Price Level Changes
(c) Window Dressing
(d) All of the above (1)
Answer:
(c) Window Dressing

Explanation: Some firms resort to window – dressing their financial statements to cover up bad financial, position on the eve of accounting date. For example, they may not record the purchases made at the end of the year or they may overvalue their closing stock. In such cases, the results obtained by analysis of financial statements will be misleading.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 28.
Assertion(A): A low Debt Equity ratio indicates a favorable position.
Reason (R): A low debt equity ratio indicates high safety cover and it shows that enterprise is depending more on shareholders funds than external equities.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false (1)
Answer:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) ¡s the correct explanation of Assertion (A)

Explanation: The assertion is true as a low Debt equity ratio indicates a favorable position. A low debt to equity ratio is advantageous from an investing standpoint since ¡t reduces risk during periods of rising interest rates. Reason is also true as a low debt to equity ratio indicates that a company has sufficient funds in the form of equity and does not require debt to fund its operations. It is more dependent on Shareholder’s fund than external equities.

Question 29.
From the following information what will be the amount of assets purchased during the year?

Particulars Closing Opening
Machinery (at cost) 6,90,000 6,00,000
Accumulated Depreciation 90,000 60,000

Additional information: During the year a machine costing ₹ 50,000 accumulated depreciation ₹ 32,000 was sold for ₹ 20,000.
(a) ₹ 1,40,000
(b) ₹ 1,20,000
(c) ₹ 1,55,000
(d) None of the above

OR

Following is the information relating to EXON Ltd.

Particulars 2021 2020
Provision for tax 26,000 18,000

If tax paid during the year is ₹ 14,400, what is the provisions for tax during the year?
(a) 21,500
(b) 21,400
(c) 22,400
(d) None of the above
Answer:
(a) 1,40,000

Explanation:
Dr. Machinery A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-29
OR

(c) 22,400

Explanation:
Provision for tax during the year
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-30

Question 30.

Particulars Purchases Sales
Machinery 2,00,000 20,00,000
Building 4,00,000
Investment 20,000 28,000
Goodwill 28,000
Patent and Trademarks 40,000 8,000

Calculate Cash Flow from investing activities:
(a) ₹ 20,36,000
(b) ₹ 6,48,000
(c) ₹ 7,40,000
(d) ₹ 13,88,000 (1)
Answer:
(d) 13,88,000

Explanation:
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-31

Question31.
How will you disclose the following items in the Balance Sheet of a company:
(i) Loose Tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures Redemption Reserve
(iv) 10% debentures
(v) Share forfeited account
(vi) Mining Rights (3)
Answer:

Items Main Head Sub-Head
(i) Loose Tools Current Assets Inventories
(ii) Uncalled liability on partly paid-up shares Contingent Liability and Capital Commitments Capital Commitments
(iii) Debentures Redemption Reserve Shareholders’ Funds Reserve and surplus
(iv) 10% debentures Non-Current Liabilities Long-Term Borrowings
(v) Share forfeited account Shareholders’ Funds Subscribed Capital (to be added)
(vi) Mining Rights Non-Current Assets Fixed Assets – Intangible assets

Question 32.
Explain the nature of the financial statements. (3)
Answer:
The financial statements are the end-products of the accounting process. The financial statements not only reveal the true financial position of the company but also help various accounting users in decision making and policy designing process. The nature of the financial statements depends upon the following aspects like recorded facts, conventions, concepts, and personal judgment

1. Recorded facts: The items recorded in the financial statements reflect their original cost i.e. the cost at which they were acquired. Consequently, financial statements do not reveal the current market price of the items. Further, financial statements fail to capture the inflation effects.

2. Conventions: The preparation of financial statements is based on some accounting conventions like, Prudence Convention, Materiality Convention, Matching Concept, etc. The adherence to such accounting conventions makes financial statements easy to understand, comparable and reflects the true and fair financial position of the company.

3. Accounting Assumptions: These basic accounting assumptions like Going Concern Concept, Money Measurement Concept, Realisation Concept, etc are called as postulates. While preparing financial statements, certain postulates are adhered to. The nature of these postulates is reflected in the nature of the financial statements.

4. Personal Judgments: Personal value judgments play an important role in deciding the nature of the financial statements. Different judgments are attached to different practices of recording transactions in the financial statements.

For example, recording stock either at market value or at the cost requires value judgment. Similarly, provision on various assets, method of charging depreciation, period related to writing off intangible assets depends on personal judgment. Thus, personal judgments determine the nature of the financial statements to a great extent.

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions

Question 33.
From the following information, calculate any two of the following ratios:
(i) Liquid Ratio
(ii) Debt-Equity ratio
(iii) Working Capital Turnover Ratio Information:
Net Revenue from Operations ₹ 3,00,000
Gross Profit ₹ 1,00,000
Total Current Assets ₹ 2,00,000
Closing Inventory ₹ 20,000
Prepaid Insurance ₹ 4,000
Total Current Liabilities ₹ 1,20,000
Share Capital ₹ 3,50,000
Reserves and Surplus ₹ 33,000
Non Current Assets 4,30,000 (4)
Answer:
(i)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-32
Quick Assets = Current assets – Closing Inventory – Prepaid Insu rance
= ₹ 2,00,000 – ₹ 20,000 – ₹ 4,000 = ₹ 17 6,000
Liquid Ratio = \(\frac { ₹ 17 6,000 }{ ₹ 1,20,000 }\) = 1.47 : 1

(ii)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-33
Long – term Debts = Total Current Assets + Non Current Assets – Current Liabilities – Share Capital – Reserves and Surplus
= ₹ 2,00,000 + ₹ 4,30,000 – ₹ 1,20,000 – ₹ 3,50,000 – 33,000
= ₹ 1,27,000
hareholder’s Funds = Share Capital + Reserves and Surplus
= ₹ 3,50,000 + ₹ 33,000 = ₹ 3,83,000
Debt – Equity Ratio = \(\frac { ₹ 1,27,000 }{ ₹ 383000 }\) = .33 : 1

CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-34
Working Capitcil Turnover Ratio = \(\frac { ₹ 3,00,000 }{ ₹ 80,000 }\) = 3 . 75 times

OR

(i)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-35
Current Ratio = \(\frac { ₹ 351000 }{ ₹ 17,500 }\) = 2 : 1

(ii)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-36
Liquid Assets = Current Assets – Inventories
= ₹ 35,000 – ₹ 15,000 = ₹ 20,000
Acid Test Ratio = \(\frac { ₹ 20,000 }{ ₹ 17,500 }\) = 1.143 : 1

(iii)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-37
\(\frac { ₹ 30,000 + 20,000 }{ ₹ 60,000 }\) x 100
\(\frac { ₹ 50,000 }{ ₹ 60,000 }\) x 100 = 83.33%

(iv)
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-38
Gross Profit = Net Revenue from Operations – Cost of Goods SoLd
= ₹ 60,000 – ₹ 30,000
Gross Profit Ratio = \(\frac { ₹ 30,000 }{ ₹ 60,000 }\) x 1oo = 50%.

Question 34.
From the following information, prepare cash flow statement:
Balance Sheet
as at 31 Mar. 2020 and 31 Mar. 2021
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-5
Additional Information:
Depreciation charge on Plant amount to ₹ 80,000. (6)
Answer:
Cash Flow Statement
for the year ended 31st March 2021 as per AS – 3
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-39

Dr. Fixed Account A/c Cr.
CBSE Sample Papers for Class 12 Accountancy Set 9 with Solutions img-40