Subject

Accountancy

Class

CBSE Class 12

Pre Boards

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Sample Papers

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 Multiple Choice QuestionsShort Answer Type

1.

For which share of Goodwill a partner is entitled at the time of his retirement?


At the time of retirement, a partner is entitled to his share of goodwill as per his profit share in the business. It is valued as per agreement among the partners and the retiring partner is compensated for his share of goodwill by the continuing partners in their gaining ratio. 

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2.

Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd. 


Date

Particulars

LF

Debit (Rs)

Credit (Rs)

 

Building a/c                                    Dr

                        To Gupta Ltd a/c

                        To bank a/c

(being building purchased from Gupta Ltd, Rs 1,00,000 paid by cheque and balance by equity share)

 

10,00,000

 

 

 

 

  9,00,000

1,00,000

 

9,00,000

1,00,000

 

 

 

 

10,00,000

Gupta Ltd a/c                                   Dr

Discount on issue of share a/c            Dr

                          To Equity share capital a/c

(Being 100000 shares of Rs 10 each issued at 10% discount)

 

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3.

From the following information, calculate the amount of income from subscriptions to be shown in the Income and Expenditure Account for the year ended 31-3-2011:  

Subscriptions received during the year 2010-2011

Rs

3,40,000

Subscriptions outstanding as on 31-3-2011

Rs

47,000

Subscriptions received in advance as on 31-3-2011

Rs

35,000

Subscriptions outstanding as on 1-4-2010

Rs

28,000

Subscriptions received in advance as on 1-4-2010

Rs

25,000


Calculation of Income from Subscription:

Details

Amount  (Rs.)

 

Subscriptions Received during the year 2010-2011

Add: Subscriptions outstanding on 31.3.2011                       47,000

Add: Subscriptions received in advance on 1.4.2010              25,000

3,40,000

 

72,000

 

     4,12,000

 

63,000

 

Less: Subscriptions outstanding on 1.4.2010                         28,000

Less: Subscriptions received in advance on 31.3.2011           35,000

 

Income from subscription for the year 2010-11

3,49,000

 

597 Views

4.

Narain Laxmi Ltd. invited applications for issuing 7500, 12% Debentures of Rs100 each at a premium of Rs 35 per Debenture. The full amount was payable on application.
Applications were received for 10,000 Debentures. Applications for 2500 Debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd. 


Date

Particulars

LF

Debit (Rs)

Credit (Rs)

 

Bank a/c Dr

          To 12% Debenture application a/c

Being application money received for 10000,12% debentures of Rs 100 each, issued at a premium of Rs 35 per debenture)

 

13,50,000

 

 

 

 

10,12,500

 

 

 

 

3,37,500

 

13,50,000

 

 

 

 

7,50,000

2,62,500

 

 

 

3,37,500

 

 

12% Debenture application a/c         Dr

          To 12% debenture a/c

          To debenture premium a/c

Transfer of application money of 7500 debentures on allotment)

12% debenture application a/c          Dr

           To Bank a/c

( being application money of 2500 applications oversubscribed refunded)

528 Views

5.

State the provisions of Indian Partnership Act regarding the payment of remuneration to a partner for the services rendered.


Under Indian Partnership Act 1932, Unless there is a provision in the partnership deed, no partner is entitled to get salary or other remuneration for taking part in the conduct of the business of the firm. 

588 Views

6.

Arjun, Bhim and Nakul are partners sharing profits & losses in the ratio of 14:5:6 respectively.
Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs 50,000, Rs 55,000 & Rs 60,000 respectively. The normal profits for the similar firm are Rs 30,000. Goodwill already appears in the books of the firm at Rs 75,000.
The profit for the first year after Bhim's retirement was Rs 1,00,000. Give the necessary Journal Entries to adjust Goodwill and distribute profits showing your workings.


                                     Journal Entries

Date

Particulars

LF

Debit ( Rs)

Credit (Rs)

 

Arjun’s  capital a/c          Dr

Bhim’s capital a/c            Dr

Nakul’s capital a/c           Dr

                To Goodwill a/c

(being decrease in the value of goodwill adjusted to the partners capital in their old profit sharing ratio)

 

14,000

5,000

6,000

 

 

 

 

1,00,000

 

 

 

25,000

 

 

 

 

76,000

24,000

 

Profit and loss appropriation a/c Dr

                To Arjun’s capital a/c

                To Nakul’s capital a/c

(Being new profit shared between remaining partners in their new profit sharing ratio)

 

 

Old profit sharing ratio =14:5:6

Computation of Goodwill:
Average profit =(50000+55000+60000)/3=55000/-
Normal profit = 30000
Super profit =25000
Good will = super profit *2 years purchase= 25000*2=50000/-
Good will already in the book= 75000
Difference in present and book value of goodwill to be adjusted=75000-50000=25000
Good will to be debited in old profit sharing ratio 14:5:6

Arjun 25000*14/25=14000
Bhim 25000* 5/25=5000
Nakul 25000*6/25=6000

Computation of new profit sharing ratio:
Arjun’s new share =14/25+5/25 =19/25
Nakuls new share= 6/25
New profit sharing ratio= 19:6
Appropriation of new profit
Arjun: (100000*19)/25=76,000
Nakul: (100000*6)/25=24,000

838 Views

7.

Arun and Arora were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals on 1-4-2010 were: Arun Rs 60,000 and Arora Rs 80,000. They agreed to allow interest on capital @ 12% p.a. And to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31-3 2011 before all above adjustments were Rs 12,600. The drawings made by Arun were Rs 2,000 and by Arora Rs 4,000 during the year. Prepare Profit and Loss Appropriation Account of Arun and Arora. Show your calculations clearly. The interest on capital will be allowed even if the firm incurs loss. 


Profit and Loss Appropriation Account:

Particulars

Amount (Rs)

Particulars

Amount(Rs)

Interest on Capital

Arun

Arora

 

 

7200

9600

 

 

Net Profit

Interest on Drawings

Arun:        150

Arora:       300

Loss transferred to partners current a/c

Arun:             Rs 2344

Arora:            Rs 1406

 

12,600

 

 

450

 

 

 

3750

 

16800

 

16800

 

Working note:
Interest on capital
Arun : (60000*12/100)= 7200
Arora: (80000*12/100) = 9600

Interest on drawings:
Arun: (2000*15/100)*6/12= 150
Arora: (4000*15%)*6/12= 300 

Loss transferred to partners current a/c
Arun (3750*5/8) Rs 2344
Arora(3750*3/8) Rs 1406

940 Views

8.

State any two occasions on which a firm can be reconstituted.


A firm can be reconstituted on
1) Retirement or
2) Death of a partner.

916 Views

9.

Give any one advantage for the redemption of debentures by purchase in the open market?


One of the advantages of redemption of debenture by purchase in the open market is that, the company can redeem at its convenience whenever it has surplus fund.

579 Views

10.

Name the financial statement prepared by a Not-For-Profit Organisation on accrual basis.


The financial statement prepared by a Not- For- profit organisation on accrual basis is Income and Expenditure Account.

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