XII Accountancy UT - 2 (September 2021)

Shriji Baba Saraswati Vidya Mandir, Mathura
ACCOUNTANCY CLASS - XII

Time allowed: 90 minutes (Unit Test- I1) Maximum Marks: 40

General Instructions:

1. This paper contains Multiple Choice Questions of 40 marks.

2. All questions are compulsory.

3. All parts of the question to be marked at its specific serial number.

4. No negative marking

5. The paper consists of three parts:

Part 1 of 20 marks, Part 2 of 14 marks and Part 3 of 6 Marks.

PART- 1 (20 Marks)

( (Fundamentals of Partnership, Change in Profit Sharing Ratio and Admission of a New Partner)

The following question consist of two statements, one labelled as the ‘Assertion (A)’ and the other as ‘Reason (R)’. You are to examine these two statements carefully and select the answers using the code given below:

Assertion (A): A partnership deed covers all matters relating to mutual relationship among the partners.

Reason (R): But, in the absence of agreement, the following provisions of the Indian Partnership Act, 1932 shall apply for accounting purposes.

Code

(a) Both (A) and (R) are true and (R) is the correct explanation of (A).

(b) Both (A) and (R) are true and (R) is not the correct explanation of (A).

(d) (A) is false, but (R) is true.

On 1st April, 2021, an existing firm had Assets of ₹ 7,50,000 including Cash of ₹ 50,000. Its Creditors amounted to ₹ 50,000 on that date. The firm had a Reserve of ₹ 1,00,000 while Partners’ Capital Accounts showed a balance of ₹ 6,00,000. If normal rate of return is 20% and Goodwill of the firm is valued at ₹ 2,40,000 at four years purchase of super profits.

The Average Profit per year of the existing firm will be_________________.

(a) ₹ 1,80,000 (b) ₹ 2,40,000

Kothari Bros. (a partnership firm) earned divisible profit of ₹. 5,00,000, Interest on Capital is to be provided to PartnerS is ₹. 3,00,000, Interest on Loan taken from a Partner is ₹. 50,000 and profit sharing ratio of partners is 5 : 3 sequence the following in correct way:

I. Distribute profits between partners

II. Charge interest on loan to Profit and Loss A/c

III. Calculate the net profit Transfer to Profit and Loss appropriation A/c

IV. Provide interest on capital

(a) iv, i, ii, iii (b) ii, iii, iv, i

Tushar, Vishal, and Raghav are partner’s sharing profits in the ratio of 5:3:2. According to the partnership agreement Raghav is to get a minimum amount of ₹. 10,000 as his share of profits every year. The Net Profit for the year ended 31^st March, 2021 amounted to ₹. 40,000. How much amount contributed by Tushar ?

(a) ₹ 1,350 (b) ₹ 1,250

Ankit and Love were in partnership sharing profits and losses in the ratio of 2:1. They admitted Kunal as a new partner. Kunal brought ₹ 1,00,000 as his share of goodwill premium, which was entirely credited to Ankit’s Capital Account. On the date of admission, Goodwill of the firm was valued at ₹ 5,00,000. The new profit sharing ratio of Ankit, Love and Kunal will be:

(a) 7 : 5 : 3 (b) 7 : 3 : 5

Which section of the partnership act defines partnership “as the relation between person who have agreed to share the profit of the business carried on by all or any of them acting for all”?

(a) Section 61 (b) Section 130

Pick the odd one out from the following:

(a) Interest allowed on a loan taken by the firm from a partner

(b) Rent due to a partner of the firm for using his premises for business purposes

(d) Salary due to a partner of the firm

Sirya and Riya are partners sharing profits and losses in the ratio 4 : 1. Mariya was manager who received the salary of ₹ 4,000 p.m. in addition to a commission of 5% on Net Profits after charging such commission. The Profit of firm for the year ended 31^st March, 2021 were ₹ 6,78,000 before charging salary.

Find the total remuneration of Mariya.

(a) ₹ 78,000 (b) ₹ 88,000

X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new partner. The new profit sharing ratio will be 4 : 3 : 2. The firm‘s goodwill on Z‘s admission was valued at ₹. 1,26,000. But Z could not bring any amount of goodwill in

Cash. Credit will be given to:

(a) X ₹. 17,500; Y ₹. 10,500 (b) X ₹. 16,000; Y ₹. 12,000

A and B are partners sharing profits and losses in the ratio 5 : 3. On admission, C brings by cheque ₹. 70,000 as Capital and ₹. 48,000 as Goodwill. New Profit-sharing Ratio among A, B and C is 7 : 5 : 4. Sacrificing ratio between A and B is :

(a) 3 : 1 (b) 4 : 7

Closing entry for Interest on Loan allowed to partners is………….

(a). Interest on Partner’s loan …Dr.

To Profit and Loss A/c

(b). Interest on Partner’s Loan …Dr.

To P & L Appropriation A/c.

(c). P & L Appropriation A/c …Dr.

To Interest on partner’s loan A/c

(d). P & L A/c ……………….Dr.

To Interest on loan A/c

Heena and Sudha share Profit & Loss equally. Their capitals were ₹.1,20,000 and

₹. 80,000 respectively. There was also a balance of ₹. 60,000 in General Reserve and Revaluation gain amounted to ₹. 15,000. They admit friend Teena with 1/5 share. Teena brings ₹. 90,000 as capital.

Calculate the amount of goodwill of the firm.

(a) ₹. 85,000 (b) ₹. 1,00,000

Answer Question 13 to 20 on the basis of formation given below:

Aman and Vinay share profits in the ratio of 3 : 1. Their Balance Sheet as on 31st March, 2021 was as under:

Liabilities		Amount (₹)	Assets		Amount (₹)
Capitals: Aman	60,000		Machinery Goodwill Patent Furniture Sundry Debtors (–) Prov. for D/d Stock Cash	30,000 (4,000)	50,000 16,000 6,000 10,000 26,000 25,000 5,500
	29,000	89,000 9,000 24,000 1,500 15,000
Workmen Compensation	Fund
Creditors
Outstanding Expenses
Bills Payable


		1,38,500			1,38,500

They admitted Kaveri as partner on this date. New profit sharing ratio agreed to be

2 : 1 : 1. All partners agreed that:

(a) Kaveri will bring ₹ 33,000 as Capital.

(b) Kaveri will also bring ₹ 14,000 as his share of goodwill.

(d) 5% of the creditors are untraceable and hence to be written back.

(e) Outstanding expenses shown in Balance Sheet are to be reduced to ₹ 1,200.

(f) Accrued income of ₹ 1,000 is to be brought in books.

(g) Provision for bad debts was found in excess by ₹ 1,500.

Answer the following questions:

Creditors of ₹ 1,200 will be:

(a) Debited to Revaluation A/c

(b) Credited to Revaluation A/c

(d) Shown on Asset side of the Balance Sheet

Accrued income of ₹ 1,000 to be:

(a) Debited to Revaluation A/c

(b) Credited to Revaluation A/c

(d) Not recorded anywhere

Excess of Provision for Doubtful Debts of ₹ 1,500 will be:

(a) Credited to Revaluation A/c

(b) Debited to Revaluation A/c

(d) Not recorded anywhere

What journal entry will be passed for Workmen’s Compensation Fund?

(a) Workmen’s Comp. Fund Dr. ₹ 9,000

To Claim for W. Comp. ₹ 1,000

To Aman’s Capital A/c ₹ 6,000

To Vinay’s Capital A/c ₹ 2,000

(b) Workmen’s Comp. Fund ₹ 9,000

To Aman’s Capital A/c ₹ 6,000

To Vinay ’s Capital A/c ₹ 3,000

Vinay’s Capital A/c ₹ 2,000

Claim for W.’s Comp. ₹ 1,000

To. Workmen’s Comp. Res. A/c ₹ 9,000

(d). Revaluation ₹ 1,000;

To Claim for W Comp. ₹ 1,000

What journal entry is passed for premium for goodwill?

(a) Prem. for Goodwill A/c ₹ 14,000

To Aman’s Capital A/c ₹ 10,500

To Vinay’s Capital A/c ₹ 3,500

(b) Prem. for Goodwill A/c ₹ 14,000

To Vinay’s Capital A/c ₹ 14,000

To Aman’s Capital A/c ₹ 14,000

(d). Premium for Goodwill A/c ₹ 14,000

To Revaluation A/c ₹ 14,000

Profit (gain) on Revaluation of Assets and Reassessment of Liabilities is:

(a) ₹ 2,500 (b) ₹ 3,000

The new Capital Balances of all the partners will be:

(a) Aman – ₹ 71,000, Vinay – ₹ 28,000, Kaveri – ₹ 33,000

(b) Aman – ₹ 83,000, Vinay – ₹ 32,000, Kaveri – ₹ 33,000

(d) Aman – ₹ 69,000, Vinay – ₹ 32,000, Kaveri – ₹ 33,000

Cash balance would appear in the new Balance Sheet at:

(a) ₹ 19,500 (b) ₹ 38,500

PART 2 (14 Marks)

(Accounting for Share Capital)

Reserve Capital means:

(a) Part of authorised capital to be called at the beginning

(b) Portion of uncalled capital to be called only at liquidation

(d) Under subscribed capital

Jagdambika Ltd. purchased a machinery for ₹ 1,80,000 for which it is paying by issue of Shares of ₹ 100 Rs. each at 20% premium. How many shares will be issued as

Consideration?

(a) 2,500 (b) 2,000

Match the following

1. Purchase consideration is more than net worth 2. Purchase consideration is less than net worth	(i) Capital Reserve
	(ii) Assets
	(iii) Goodwill
	(iv) Vendor

(a) 1 (i); 2 (iii) (b) 1 (i); 2 (iv)

Arrange the following in proper sequence as types of “Share Capital”

(i) Paid-up Capital

(ii.) Issued Capital

(iii) Subscribed Capital

(iv.) Called-up Capital

(a) (i) ; (ii); (iii) and (iv) (b) (ii) ; (i); (iv) and (iii)

250 shares of ₹ 20 each on which first and final call of ₹ 6 per share is not paid is forfeited. Out of these, 200 shares are reissued for ₹ 14 per share fully paid up. The amount transferred to capital reserve will be:

(a) ₹ 1,800 (b) ₹ 1,200

Shorasth Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, application money on another 6,000 shares was refunded. The amount payable on the application was ₹. 2. Aman applied for 420 shares. The number of shares allotted to him will be:

(a.) 60 shares (b.) 340 shares

(c.) 320 shares (d.) 300 shares

On the basis of the information given below answer the following questions (Q. 27 to 34)

Kaushik Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Amount per share was payable as follows:

On Application — ₹ 4 (including premium ₹ 1)

On Allotment — ₹ 4 (including premium ₹ 1)

On First and Final Call — Balance

Applications were received for 1,50,000 shares and allotment was made to the applicants as follows:

(i) Applicants of 80,000 shares were allotted 60,000 shares.

(ii) Applicants of 50,000 shares were allotted 40,000 shares.

(iii) No shares were allotted to the remaining applicants and their application money was returned.

Yogesh, who belonged to category (ii) and who had applied for 5,000 shares failed to pay the allotment and call money. His shares were forfeited. Later, half of Yogesh’s forfeited shares were reissued @ ₹ 18 per share as fully paid up.

Answer the following questions:

State the amount of excess application money refunded to the applicants.

(a) ₹ 2,00,000 (b) ₹ 80,000

State the excess application money being adjusted to share allotment account to whom pro-rata allotment has been made.

(a) ₹ 2,00,000 (b) ₹ 80,000

State the amount of calls-in-arrears at the time of receipt of allotment money?

(a) ₹ 12,000 (b) ₹ 16,000

The amount of calls-in-arrear at the time of receipt of first call is:

(a) ₹ 12,000 (b) ₹ 16,000

The amount forfeited on 4,000 shares is:

(a) ₹ 12,000 (b) ₹ 14,000

At the time of forfeiture of shares, Securities Premium Reserve Account will be debited with:

(a) ₹ 4,000 (b) ₹ 6,000

State the amount received at the time of reissue of forfeited shares.

(a) ₹ 20,000 (b) ₹ 16,000

State the amount to be transferred to Capital Reserve Account.

(a) ₹ 6,000 (b) ₹ 8,000

PART 3 (6 Marks)

(Financial Statements of Company and Ratio Analysis)

Which of the following transactions will increase the Debt of Equity ratio, which is 1 : 2?

(a) Issue of shares for cash (b) Redemption of Preference shares

The following questions consist of two statements, one labelled as the ‘Assertion (A)’ and the other as ‘Reason (R)’.

Assertion (A) – Ratio analysis are useful for assessing the financial health and performance of an enterprise.

Reason (R) – It is assessed by evaluating liquidity, solvency, profitability etc.

You are to examine above two statements carefully and select the answers using the code given below:

(a) Both A and R are individually true and R is the correct explanation of A

(b) Both A and R are individually true but R is not the correct explanation of A

(d) A is false but R is true

A firm’s current ratio is 3.5: 2. Its current liabilities are Rs. 80,000. Its working capital will be:

(a) ₹ 1,20,000 (b) ₹1,60,000

On the basis of the information given below answer the following questions (Q. 38 to 40)

Accounts Gunjan Ltd. want to analyses its liquidity position along with assessment of Inventory position from the given information:

1. Inventory Turnover Ratio : 4 times,

2. Inventory in the beginning was ₹ 20,000 less than Inventory at the end, Revenue from

Operations ₹ 6,00,000,

3. Current Liabilities ₹ 60,000.

4. Gross Profit Ratio 25%, Quick Ratio 0.75 : 1

Answer the following questions:

State the amount of Cost of Revenue from Operations.

(a) ₹ 4,50,000 (b) ₹ 4,90,000

State the amount of Average Inventory.

(a) ₹ 1,25,000 (b) ₹ 1,12,500

State the Current Ratio of Accounts Gunjan Ltd.

(a) 2.4 : 1 (b) 2.5 : 1

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