Subject

Accountancy

Class

CBSE Class 12

Pre Boards

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Sample Papers

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 Multiple Choice QuestionsShort Answer Type

1.

State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'


As per Section 71 (4) of the Companies Act, 2013 and Companies (Share Capital and Debentures) Rules, 2014, every company issuing Debentures is required to create Debenture Redemption Reserve of at least an amount equal to 25% of the value of debentures issued at the time of redemption of debentures.

1276 Views

2.

Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books 31st March every year. On 31-12-2015 Vaibhav died. On that date his Capital account showed a credit balance of ₹ 3,80,000 and Goodwill of the firm was valued at  ₹ 1,20,000. There was a debit balance of ₹ 50,000 in the profit and loss account. Vaibhav's share of profit in the year of his death was to be calculated on the basis of the average profit of last five years. The average profit of last five years was ₹ 75,000. Pass necessary journal entries in the books of the firm on Vaibhav's death.



Working Notes:
WN(1): Calculation of Vaibhav’s Share of Goodwill
Vaibhav's Share of Goodwill = Firm's Goodwill His Profit Share
                            equals 1 comma 20 comma 000 cross times 1 fifth equals 24 comma 000

24,000 will be borne by gaining partners in gaining ratio.
Since, nothing is specified; it is assumed that continuing partners gain in their old profit sharing ratio of 2:2
Vika apostrophe straight s space gain space equals space 24 comma 000 cross times 2 over 4 equals 12 comma 000
Vishal apostrophe straight s space gain equals 24 comma 000 space cross times 2 over 4 equals 12 comma 0000

WN2: Calculation of Share of Debit balance in P&L A/c
Vikas apostrophe straight s space Share space equals space 50 comma 000 space cross times 2 over 5 equals 20 comma 000
Vishal apostrophe straight s space Share equals 50 comma 000 cross times 2 over 5 equals 20 comma 000
Vaibhav apostrophe straight s space Share space equals space 50 comma 000 space cross times 1 fifth equals 10 comma 000

WN3: Calculation of Share in Profit (earned during the year)
Vaibhav apostrophe straight s space Share space equals space Average space Profits space cross times space Number space of space Months space Vaibhav space Remained space cross times space His space profit space Share
space equals space 75 comma 000 cross times 9 over 12 cross times 1 fifth equals 11 comma 250

WN 4: Calculation of Amount transferred to Vaibhav's Executor A/c
Amount due to Vaibhav = Capital + Credit Items - Debit Items
                                      =3,80,000 + 24,000 - 10,000 + 11,250=4,05,250
1402 Views

3.

A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profits sharing ratio of A,B, C and D.


Profit Sharing Ratio of A, B and C = 3:2:1
 straight D apostrophe straight s space Share equals 1 over 8 left parenthesis acquired 1 over 16 th space share space each space from space straight B space and space straight C right parenthesis
straight A apostrophe straight s space Share equals 3 over 6 left parenthesis retained space original space share right parenthesis
straight B apostrophe straight s space new space share space equals space 2 over 6 minus 1 over 16 equals 13 over 48
straight C apostrophe straight s space new space share space equals 1 over 6 minus 1 over 16 equals 5 over 48
New space Ratio space of space straight A comma space straight B comma space straight C space and space straight D equals 3 over 6 colon 13 over 48 colon 5 over 48 colon 1 over 8 space or space 24 colon 13 colon 5 colon 6

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4.

State any three circumstances other than (i) admission of a new partner; (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.


Valuation of goodwill also arises in the following cases:
(i) When the partnership firm is sold to some other concern on going concern basis.
(ii) When two firms amalgamate that is merger or acquisition of two businesses.
(iii) When the existing partners in the firm jointly agree to change the profit sharing ratio between them.

2826 Views

5.

P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1-4-2014 they admitted R as a new partner for 1/8th share in the profits with a guaranteed profit of ` 75,000. The new profit sharing ratio between P and Q will remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio 3:2. The profit of the firm for the year ended 31-3-2015 was ₹ 4,00,000.
Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended 31-3-2015.




Working Notes:
straight R apostrophe straight s space Share space in space Profit space equals 4 comma 00 comma 000 cross times 1 over 8 equals 50 comma 000
Minimum space Guaranteed space Profit space to space straight R equals 75 comma 000
Deficiency space equals 25 comma 000 thin space left parenthesis 75 comma 000 minus 50 comma 000 right parenthesis
Deficiency space to space be space borne space by space straight P space and space straight Q space in space the space ratio space of space 3 colon 2
Amount space to space be space borne space by space straight P space equals space 25 comma 000 cross times 3 over 5 equals 15 comma 000
Amount space to space be space borne space by space straight Q space equals space 25 comma 000 space cross times 2 over 5 equals 10 comma 000
therefore space space straight P apostrophe straight s space Profit space Share space equals 3 comma 25 comma 000 space cross times 5 over 8 equals 2 comma 03 comma 125
& space straight Q apostrophe straight s space Profit space Share equals 3 comma 25 comma 000 space cross times 3 over 8 equals 1 comma 21 comma 875
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6.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.


On the basis of Economic Relationship, the difference is given below:
In Dissolution of Partnership, Economic relationship continues and changes between the partners while in Dissolution of Firm, Economic Relationship ends amongst all the partners. 

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7.

On 1-1-2016 the first call of `Rs 3 per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money. Arjun a shareholder holding 1000 shares paid the second and final call of Rs 5 per share along with the first call. Pass the necessary journal entry for the amount received by opening 'Calls-in-arrears' and 'Calls-in-advance' account in the books of the company.


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8.

What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.


A partnership firm can have minimum two and maximum 50 partners as per the new Companies Act, 2013 and vide Rule 10 of the companies (Miscellaneous) Rules, 2014.

4236 Views

9.

KTR Ltd., issued 365, 9% Debentures of ₹ 1,000 each on 4-3-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at par redeemable at a premium of 10%.
(b) When debentures were issued at 6% discount redeemable at 5% premium.


1254 Views

10.

Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2. During the year ended 31-3-2015 Nusrat had withdrawn Rs 15,000. Interest on her drawings amounted to Rs 300. Pass necessary journal entry for charging interest on drawing assuming that the capitals of the partners were fixed.


1334 Views