Model Paper 1 - CBSE STD 12 Commerce Accountancy Questions

Q 1M.C.Q (1 Marks)1 Mark

At the time of dissolution of a firm, Debtors were ₹ 17,000 out of which ₹ 500 became bad and the rest realised 60%. Which account will be debited and by how much amount?

A
Debtors Account by ₹ 7,100
B
Realisation Account by ₹ 16,500
C
Profit and Loss Account by ₹ 500
✓
Cash Account by ₹ 9,900

Answer: D.

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Q 2M.C.Q (1 Marks)1 Mark

Partner's capital account is debited:

✓
to record the P and L account (Dr.)
B
to record the general reserve
C
to record the shortage of capital brought in
D
to record the profit on revaluation

Answer: A.

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Q 3M.C.Q (1 Marks)1 Mark

Which of the following statement is incorrect?
i. Debit the gainer and credit the sacrificing partner
ii. It is not necessary for a new partner to bring premium for goodwill in cash
iii. Both new partner and gainer partner will compensation the sacrificing partner
iv. It is not necessary to value the goodwill when a new partner is admitted

✓
Option (iv)
B
Option (iii)
C
Option (ii)
D
Option (i)

Answer: A.

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Q 4M.C.Q (1 Marks)1 Mark

How drawing against capital is differ from drawings against profit:

A
Drawings against capital will not be recorded at all
✓
Drawings against capital will reduce the capital
C
Drawings against capital will effect current account
D
Drawings against capital will reduce the profit

Answer: B.

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Q 5M.C.Q (1 Marks)1 Mark

The directors of Neelkamal Ltd. forfeited 70,000 equity shares of ₹ 10 each, ₹ 10 called-up, for non-payment of final call of ₹ 1 per share. Half of the forfeited shares were reissued at ₹ 20 per share Fully Paid-up. On reissue of forfeited shares, the following amount will be transferred to the Capital Reserve Account:

✓
₹ 3,15,000
B
₹ 4,20,000
C
₹ 1,40,000
D
₹ 70,000

Answer: A.

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Q 63 Marks Question3 Marks

A and B are partners sharing profits equally. They agree to admit C for equal share. For this purpose goodwill is to be valued at 150% of the average annual profits of the last 5 year's profits.
Profits were:

Year ended	₹
31^st March 2019	40,000
31^stMarch 2020	60,000
31^st March 2021	1,00,000
31^st March 2022	20,000 (Loss)
31^st March 2023	1,50,000

It was observed that:
i. During the year ended 31^st March 2020, an asset of the original cost of ₹ 2,00,000 with book value of ₹ 1,50,000 was sold for ₹ 1,24,000.
ii. On 1^stApril, 2021, 2 Computer's costing ₹ 1,00,000 were purchased and were wrongly debited to Travelling Expenses. Depreciation on Computers was to be charged @ 20% p.a. on written down value basis.
Calculate the value of goodwill.

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Q 73 Marks Question3 Marks

Can the forteited shares be reissued at a discount?

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Q 83 Marks Question3 Marks

Blue Ltd. purchased the assets of Shine Ltd. for ₹ 40,00,000 and took over liabilities of ₹ 7,00,000 for ₹ 32,40,000. Payment was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Blue Ltd.

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Q 93 Marks Question3 Marks

On March 31, 2017 after the close of accounts, the capitals of Mountain, Hill, and Rock stood in the books of the firm at ₹ 4,00,000, ₹ 3,00,000 and ₹ 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to ₹ 1,50,000 and the partner's drawings had been Mountain: ₹ 20,000, Hill ₹ 15,000 and Rock ₹ 10,000. Calculate interest on capital.

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Q 103 Marks Question3 Marks

A and B are partners in a firm. A is entitled to a salary of ₹ 15,000 p.m. and a commission of 10% of net profit before charging any commission. B is entitled to a commission of 10% of net profit after charging his commission. Net profit for the year ended 31^st March 2023 was ₹ 4,40,000.
You are required to show the distribution of profit.

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Q 114 Marks Question4 Marks

Sumit, Amit and Vinit are partners sharing profit in the ratio of 5 : 3 : 2. Their Balance Sheet as on March 31, 2017 was as follows:

Balance Sheet of Sunit, Amit and Vinit as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capitals:			Machinery	80,000
Sumit	40,000		Investments	1,50,000
Amit	50,000		Stock	10,000
Vinit	40,000	1,50,000	Debtors	35,000
Profit and Loss		10,000	Cash at bank	15,000
Mr. Amit's loan		40,000
Sundry creditors		90,000
		2,90,000		2,90,000

The firm was dissolved on that date. Amit took over his wife's loan. One of the Creditors for ₹ 2,600 did not claim the amount. Assets realised as follows:
i. Machinery was sold for ₹ 70,000,
ii. Investments with book value of ₹ 1,00,000 were given to Creditors in full settlement of their account. The remaining Investments were taken over by Vinit at an agreed value of ₹ 45,000,
iii. Stock was sold for ₹ 11,000 and Debtors for ₹ 3,000 proved to be bad,
iv. Realisation expenses were ₹ 1,500.
Prepare ledger accounts to close the books of the firm.

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Q 124 Marks Question4 Marks

Starline Ltd. issued 10,000 shares of ₹ 10 each, payable as ₹ 3 on application, ₹ 4 on allotment, ₹ 2 on first call and balance on second and final call. Out of the total shares, 500 shares were forfeited.
Calculate the Maximum Permissible Discount and Minimum Reissue Price at the time of reissue in each of the following cases:
Case 1. If shares were forfeited for non-payment of Second and Final Call.
Case 2. If shares were forfeited for non-payment of First Call and Second and Final Call.
Case 3. If shares were forfeited for non-payment of Allotment, First Call and Second and Final Call.
Case 4. If shares were forfeited for non-payment of Allotment and First Call. Second and Final Call is not yet made.
Case 5. If shares were forfeited for non-payment of First Call. Second and Final Call is not yet made.

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Q 136 Marks Question6 Marks

Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from Gurnam Ltd. for a purchase consideration of ₹ 12,60,000. Satnam Ltd. paid the purchase consideration by issuing 10% debentures of ₹ 100 each. Pass the necessary journal entries in the books of Satnam Ltd. for the acquisition of assets and issue of 10% debentures when:
a. Debentures were issued at par.
b. Debentures were issued at premium of 25%.
c. Debentures were issued at a discount of 10%.

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Q 146 Marks Question6 Marks

Puneet, Pankaj and Pammy are partners in a business sharing profits and losses in the ratio of 2 : 2 : 1 respectively. Their balance sheet as on March 31, 2019 was as follows:

Books of Puneet, Pankaj and Pammy Balance Sheet as on March 31, 2019
Liabilities		Amount ₹	Assets	Amount ₹
Sundry Creditors		1,00,000	Cash at Bank	20,000
Capital Accounts:			Stock	30,000
Puneet	60,000		Sundry Debtors	80,000
Pankaj	1,00,000		Investments	70,000
Pammy	40,000	2,00,000	Furniture	35,000
Reserve		50,000	Buildings	1,15,000
		3,50,000		3,50,000

Mr. Pammy died on September 30, 2017. The partnership deed provided the following:
i. The deceased partner will be entitled to his share of profit up to the date of death calculated on the basis of previous year's profit.
ii. He will be entitled to his share of goodwill of the firm calculated on the basis of 3 years' purchase of average of last 4 years' profit. The profits for the last four financial years are given below:
for 2015-16; ₹ 80,000; for 2016-17, ₹ 50,000; for 2017-18, ₹ 40,000; for 2018-19, ₹ 30,000.
The drawings of the deceased partner up to the date of death amounted to ₹ 10,000. Interest on capital is to be allowed at 12% per annum. Surviving partners agreed that ₹ 15,400 should be paid to the executors immediately and the balance in four equal yearly instalments with interest at 12% p.a. on the outstanding balance.
Show Mr. Pammy's Capital account, his Executor's account till the settlement of the amount due.

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Q 156 Marks Question6 Marks

Radha, Manas and Arnav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31^st March, 2019 was as follows:

Manas retired on 1^stApril, 2019. It was agreed that:
i. Stock was to be appreciated by 20%
ii. Provision for doubtful debts was to be increased to ₹ 15,000.
iii. Value of furniture was to be reduced by ₹ 3,000.
iv. Market value of investments was ₹ 1,90,000.
v. Goodwill of the firm was valued at ₹ 2,00,000 and Manas's share was adjusted in the accounts of Radha and Arnav.
vi. Manas was paid ₹ 68,000 in cash and the balance was transferred to his loan account.
vii. Capitals of Radha and Arnav were to be in proportion to their new profit sharing ratio. Surplus/deficit, if any, in their capital accounts was to be adjusted through current accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

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Q 166 Marks Question6 Marks

The following is the balance sheet of A, B and C sharing profits and losses in proportion of 6 : 5 : 3 respectively:-

Liabilities		₹	Assets	₹
Creditors		18,900	Cash	1,890
Bills Payable		6,300	Debtors	26,460
General Reserve		10,500	Stock	29,400
Capitals:-			Furniture	7,350
A	35,400		Land & Building	45,150
B	29,850		Goodwill	5,250
C	14,550	79,800
		1,15,500		1,15,500

They agreed to take D into partnership and give him $\frac{1}{8}$ th share on the following terms:-
i. That Furniture be depreciated by ₹ 2,920.
ii. An Old Customer, whose account was written off as bad, has promised to pay ₹ 2,000 in full settlement of his full debt.
iii. That a provision of ₹ 1,320 be made for outstanding repair bills.
iv. That the value of land and building having appreciated be brought upto ₹ 56,910.
v. That D should bring in ₹ 14,700 as his capital.
vi. That D should bring in ₹ 14,070 as his share of goodwill.
vii. That after making the above adjustments, the capital accounts of old partners be adjusted on the basis of the proportion of D's Capital to his share in business, i.e., actual cash to be paid off or brought in by the old partners, as the case may be.
Pass the necessary journal entries and prepare the balance sheet of the new firm.

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Q 176 Marks Question6 Marks

Viswas Ltd. issued a prospectus inviting applications for 20,000 shares of ₹ 10 each at a premium of ₹ 4 per share, payable as follows:

On Application	₹ 4 (including premium ₹ 1)
On Allotment	₹ 3 (including premium ₹ 1)
On First Call	₹ 3 (including premium ₹ 1)
On Second and Final Call	₹ 4 (including premium ₹ 1)

Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. It was decided to utilise excess application money towards the sums due on allotment.
X, who was allotted 500 shares, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited.
Y, who applied for 1,800 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,700 shares were re-issued as fully paid up for ₹ 8 per share, the whole of Y's shares being included.
Prepare Cash Book, Journal and Balance Sheet.

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Q 18M.C.Q (1 Marks)1 Mark

While calculating the cash flow statement from investment activities following items should be added except?

✓
Cash paid for purchase of Non- current Investment
B
Interest received
C
Cash received from sale of fixed assets
D
Cash received from sale of investments

Answer: A.

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Q 19M.C.Q (1 Marks)1 Mark

If a machine whose original cost is ₹ 40,000 having accumulated depreciation ₹ 12,000, were sold for ₹ 34,000 then while preparing Cash Flow Statement its effect on cash flow will be:

✓
Cash flow from investing activities ₹ 34,000
B
Cash flow from financing activities ₹ 34,000
C
Cash flow from investing activities ₹ 6,000
D
Cash flow from financing activities ₹ 6,000

Answer: A.

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Q 20M.C.Q (1 Marks)1 Mark

Which of the following is not concerned with Financing Activity?

✓
Sale of Non-current investment
B
Increase in Securities Premium
C
Loan taken from bank
D
Issue of Equity Shares

Answer: A.

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Q 21M.C.Q (1 Marks)1 Mark

A Company's Current Ratio is 2.4 : 1 and Working Capital is ₹ 5,60,000. If its Liquid Ratio is 1.5, what will be the value of Inventory?

A
₹ 6,40,000
✓
₹ 3,60,000
C
₹ 6,00,000
D
₹ 2,00,000

Answer: B.

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Q 22M.C.Q (1 Marks)1 Mark

Which of the following is not a part of Finance Cost (in Statement of Profit and Loss)?

A
Loss on Issue of Debentures
B
Interest Paid on Debentures
✓
Bank Charges
D
Interest Paid on Public Deposits

Answer: C.

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Q 233 Marks Question3 Marks

From the following, calculate Debt to Capital Employed Ratio:

	₹
9% Debentures	2,00,000
8% Public Deposits	5,00,000
Long-term Provisions	2,00,000
Equity Share Capital	8,00,000
Reserves and Surplus	5,00,000

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Q 243 Marks Question3 Marks

Under what main heads and sub-heads, will the following items appear in the balance sheet of a company as per Schedule III, Part I of the Companies Act, 2013
i. Mining rights
ii. Encashment of employees earned leave payable on retirement
iii. Vehicles

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Q 254 Marks Question4 Marks

Convert the following particulars into Common Size Statement of Profit & Loss and interpret the changes in 2023:

Particulars	Note No.	31.3.2023	31.3.2022
Revenue from Operations		18,00,000	15,00,000
Other Income		72,000	45,000
Cost of Materials Consumed		8,64,000	6,60,000
Employee Benefit Expenses		1,80,000	1,80,000
Other Expenses		54,000	1,05,000

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Q 264 Marks Question4 Marks

From the following Statement of Profit and Loss of RJ Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2022:

RJ Ltd.Statement of Profit and Loss for the year ended 31st March, 2022
Particulars	Note No.	2021 - 22 ₹	2020 - 21 ₹
Revenue from Operations		20,00,000	15,00,000
Employee Benefit Expenses		8,00,000	4,00,000
Other Expenses		2,00,000	1,00,000
Tax Rate 50%

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Q 276 Marks Question6 Marks

Read the following hypothetical text and answer the given questions on the basis of the same.
In 2011, two young Indian entrepreneurs, Vaishali Bhatia and Vivek Bhatia decided to start an online auto portal. At that time, there were no major players in the market and they saw an opportunity to fill the gap. They used a user-friendly website and mobile app which made it easy for users to research and buy cars. It was converted into a company 'Car Easy Ltd.' in 2018.
From the following Balance Sheet of the company as on 31^st March, 2022, calculate 'Cash Flows From Operating Activities'.

Balance Sheet of 'Car Easy Ltd' as at 31st March, 2022
Particulars	Note No.	31.3.2022 (₹)	31.3.2021 (₹)
I Equity and Liabilities:
1. Shareholders' Funds
(a) Share Capital		9,00,000	3,00,000
(b) Reserves and Surplus	1	75,000	3,60,000
2. Non-Current Liabilities
Long-term Borrowings	2	2,40,000	1,80,000
3. Current Liabilities.
(a) Trade Payables		18,000	60,000
(b) Short-term Provisions	3	2,04,000	2,10,000
Total		14,37,000	11,10,000
II Assets:
1. Non-Current Assets
Fixed Assets	4	10,08,000	5,76,000
2. Current Assets
(a) Inventories		3,54,000	3,87,000
(b) Cash and Cash Equivalents		75,000	1,47,000
Total		14,37,000	11,10,000

Notes to Accounts:

Note No.	Particulars	31.3.2022 (₹)	31.3.2021 (₹)
1	Reserve and Surplus
	Surplus i.e. Balance in Statement of Profit and Loss	75,000	3,60,000
		75,000	3,60,000
2	Long-term Borrowings
	10% Debentures	2,40,000	1,80,000
		2,40,000	1,80,000
3	Short-term Provisions
	Provision for Tax	2,04,000	2,10,000
		2,04,000	2,10,000
4	Fixed Assets
	Machinery	11,52,000	6,45,000
	Accumulated Depreciation	(1,44,000)	(69,000)
	Total	10,08,000	5,76,000

Additional Information:
i. 10% Debentures were issued on 31st March, 2021.
ii. Tax of ₹ 80,000 was paid during the year.

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Q 28Assertion and Reason.1 Mark

Assertion (A): Reserve Capital and Capital Reserve are the same.
Reason (R): Reserve Capital is a part of Subscribed Capital which the Company may decide to call at the time of winding up of the Company.

A
Both A and R are true and R is the correct explanation of A.
B
Both A and R are true but R is not the correct explanation of A.
C
A is true but R is false.
✓
A is false but R is true.

Answer: D.

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Q 29Assertion and Reason.1 Mark

Assertion (A): A minor cannot be admitted in a firm as a partner.
Reason (R): A minor can participate in the profits of a firm.

✓
Both A and R are true and R is the correct explanation of A.
B
Both A and R are true but R is not the correct explanation of A
C
A is true but R is false.
D
A is false but R is true.

Answer: A.

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Q 30Statement based questions1 Mark

Sumit and Mohit are partners sharing profits and losses in the ratio of 2:1. Their capital Accounts as at 1st April, 2015 were ₹ 10,00,000 and ₹ 8,00,000 respectively. The partners are allowed interest on capital @ 5% p.a. Drawings of the partners during the year ended 31st March, 2016 were ₹ 1,44,000 and ₹ 1,00,000 respectively. Mohit is entitled to get a salary of ₹ 10,000 p.m.
Profit for the year before allowing interest on capital and salary was ₹ 16,00,000, 10% of the net profit is to be transferred to General Reserve.
Q.1. Find the amount which is to be transferred to General Reserve Account?
(a) ₹ 2,00,000 $\quad$ (b) ₹ 1,60,000
(c) ₹ 1,20,000 $\quad$ (d) ₹ 80,000
Q.2. What is the distributable amount of profit which is to be credited to Partners' Capital
Accounts?
(a) ₹ 12,30,000 $\quad$ (b) ₹ 16,00,000
(c) ₹ 14,40,000 $\quad$ (d) ₹ 10,00,000

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