CBSE Class 12 2025 Accountancy 67-5-1 Question Paper Set-1: Download Solutions with Answer Key

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : The partners’ fixed capital accounts always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital.

Reason (R) : When capitals are fixed, then various items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in partners’ capital accounts.

Choose the correct option from the following :

• (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
• (B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
• (C) Assertion (A) is correct, but Reason (R) is incorrect.
• (D) Assertion (A) is incorrect, but Reason (R) is correct.

Rani, Maharani and Laxmi were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. On 1^st April, 2024 they admitted Reena as a new partner for \( \frac{1}{5} \) share in the profits of the firm. Reena acquired her share from Rani and Maharani in the ratio of 3 : 2. The new profit sharing ratio between Rani, Maharani, Laxmi and Reena will be :

• (A) 51 : 59 : 40 : 50
• (B) 51 : 59 : 50 : 40
• (C) 59 : 51 : 50 : 40
• (D) 40 : 51 : 59 : 50

Ravita, Savita, Kavita and Babita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 : 2. On 1^st April, 2024 Savita retired and her share was acquired equally by the remaining partners. The new profit sharing ratio between Ravita, Kavita and Babita will be :

• (A) 2 : 1 : 1
• (B) 1 : 2 : 1
• (C) 1 : 1 : 2
• (D) 3 : 3 : 2

On dissolution of a firm, there was an unrecorded asset of \(Rs.~15,000\) which was taken over by a partner at \(Rs.~13,000\). Partner’s capital account will be debited by :

• (A) \(Rs.~15,000\)
• (B) \(Rs.~28,000\)
• (C) \(Rs.~2,000\)
• (D) \(Rs.~13,000\)

Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were \(Rs.~5,00,000\) each. After the accounts for the year ended 31^st March, 2024 were prepared, it was discovered that interest on capital @ 10% p.a. was not credited to the partners’ current accounts as provided in the partnership deed.

The rectifying adjustment entry for the same will be :

Particulars & Debit Amount (\(Rs.\)) & Credit Amount (\(Rs.\))

(A) No Entry & 
(B) Sun’s Current A/c Dr. & 50,000 &

To Moon’s Current A/c & & 50,000

(C) Moon’s Current A/c Dr. & 50,000 &

To Sun’s Current A/c & & 50,000

(D) Sun’s Current A/c Dr. & 50,000 &

Moon’s Current A/c Dr. & 50,000 &

To Profit and Loss Appropriation A/c & & 1,00,000
 

John and Harry were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1^st April, 2023, they admitted Dinesh as a new partner for \(\frac{1}{4}\) share in the profits of the firm with a guarantee that his share in the profits shall be at least \(Rs.~1,00,000\). The net profit of the firm for the year ended 31^st March, 2024 was \(Rs.~2,80,000\). John’s share in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be :

• (A) \(Rs.~1,40,000\)
• (B) \(Rs.~1,20,000\)
• (C) \(Rs.~1,00,000\)
• (D) \(Rs.~70,000\)

(a) Jeeta Ltd. forfeited 300 shares of \(Rs.~100\) each for the non-payment of final call of \(Rs.~10\) per share. The amount credited to share forfeiture account will be :

• (A) \(Rs.~30,000\)
• (B) \(Rs.~27,000\)
• (C) \(Rs.~9,000\)
• (D) \(Rs.~3,000\)

(b) Meeta Ltd. invited applications for issuing 30,000 equity shares of \(Rs.~10\) each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of \(Rs.~2\) per share. His shares were forfeited. The second call of \(Rs.~3\) per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be :

• (A) \(Rs.~3,00,000\)
• (B) \(Rs.~2,95,000\)
• (C) \(Rs.~700\)
• (D) \(Rs.~300\)

The debentures that can be transferred by way of delivery and the company does not keep any record of the debenture holders are called :

• (A) Redeemable debentures
• (B) Convertible debentures
• (C) Zero Coupon Rate debentures
• (D) Bearer debentures

(a) Sudha, a partner withdrew \(Rs.~12,000\) on 31^st October, 2023 for her personal use. Interest on drawings is charged @ 6% p.a. The interest on Sudha’s drawings for the year ended 31^st March, 2024 will be :

• (A) \(Rs.~300\)
• (B) \(Rs.~30\)
• (C) \(Rs.~3,000\)
• (D) \(Rs.~150\)

(b) The partnership deed should be prepared as per the provisions of which of the following Acts ?

• (A) The Companies Act, 2013
• (B) The Indian Partnership Act, 1932
• (C) The Indian Stamp Act
• (D) The Cooperative Societies Act

Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were \(Rs.~10,00,000\), \(Rs.~8,00,000\) and \(Rs.~6,00,000\), respectively. The partnership deed provided for interest on partners’ drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners’ drawings ?

• (A) Partners’ Capital Account
• (B) Profit and Loss Appropriation Account
• (C) Interest on Drawings Account
• (D) Profit and Loss Account

On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses \(Rs.~17,000\) were paid by a debtor of \(Rs.~75,000\) on behalf of the firm. The remaining amount was received from him along with interest of \(Rs.~2,000\) for delayed payment. Realisation Account will be ___________ by ___________.

• (A) debited, \(Rs.~17,000\)
• (B) credited, \(Rs.~50,000\)
• (C) debited, \(Rs.~77,000\)
• (D) credited, \(Rs.~60,000\)

Paratigm Ltd. issued 40,000, 11% debentures of \(Rs.~100\) each at a discount of 5%, redeemable at a premium. On issue of these debentures ‘Loss on Issue of Debentures Account’ was debited with \(Rs.~4,00,000\). The amount of premium on redemption of debentures was :

• (A) \(Rs.~4,00,000\)
• (B) \(Rs.~2,00,000\)
• (C) \(Rs.~4,40,000\)
• (D) \(Rs.~20,000\)

On 1^st April, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31^st March, 2024 will be :

• (A) ₹ 2,000
• (B) ₹ 2,20,000
• (C) ₹ 2,00,000
• (D) ₹ 20,000

Radhya Ltd. issued 5,000, 9% debentures of ₹ 100 each at ₹ 97 per debenture. The 9% debentures account will be credited by :

• (A) ₹ 4,85,000
• (B) ₹ 5,00,000
• (C) ₹ 4,50,000
• (D) ₹ 50,000

X Ltd. invited applications for 90,000 equity shares of ₹ 100 each. Applications for 2,00,000 shares were received. 5,000 shares applicant paid full amount with application. Allotment = ₹50, Application = ₹20, Final Call = ₹30.

• (A) ₹ 44,00,000
• (B) ₹ 40,00,000
• (C) ₹ 18,00,000
• (D) ₹ 90,00,000

Old Ratio = 8:5:3, New Ratio = 6:5:5

A’s gain/sacrifice = ?

• (A) \( \frac{1}{8} \) gain
• (B) \( \frac{2}{8} \) gain
• (C) \( \frac{1}{8} \) sacrifice
• (D) \( \frac{2}{8} \) sacrifice

On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:

• (A) Realisation A/c
• (B) Mohan’s Capital A/c
• (C) Mohan’s Current A/c
• (D) Bank A/c

Which of the following events does not result in reconstitution?

• (A) Dissolution of partnership
• (B) Dissolution of firm
• (C) Death of a partner
• (D) Change in profit sharing ratio

Ajay and Parth sharing 2:1. Vinod admitted. New ratio = 2:1:1. What is Ajay’s sacrifice?

• (A) \( \frac{1}{12} \)
• (B) Nil
• (C) \( \frac{1}{6} \)
• (D) \( \frac{1}{4} \)

Suman & Lata’s capital = ₹1,50,000 & ₹2,00,000. Interest = 8%

(i) Profit = ₹14,000

(ii) Profit = ₹60,000

Abha & Sara capital: ₹3L, ₹2L.

Profits: ₹60k, ₹90k, ₹1.2L

(i) 4 years purchase of avg. profits

(ii) Super profit capitalisation @10%

KM Ltd. acquired assets worth ₹ 7,20,000 and took over liabilities of ₹ 2,00,000 of LS Ltd. for a purchase consideration of ₹ 9,60,000. KM Ltd. issued 12% debentures of ₹ 100 each at a discount of 4% in favour of LS Ltd. for payment of purchase consideration. Pass necessary journal entries for the above transactions in the books of KM Ltd.

Varsha Ltd. invited applications for issuing 2,000, 12% debentures of ₹ 100 each at a premium of ₹ 30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 debentures were rejected and money refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.

Aman, Govind and Guru shared profits 3 : 2 : 1. Sudarshan admitted for \( \frac{1}{4} \) share. New ratio = 9 : 5 : 4 : 6. Total capital of new firm = ₹ 3,60,000. Sudarshan brings \( \frac{1}{4} \) of total as capital. Capitals of Aman, Govind and Guru adjusted accordingly. New capitals of Aman, Govind and Guru were ₹ 60,000, ₹ 80,000 and ₹ 45,000 respectively. Calculate the new capitals and pass necessary journal entries.

Sudha, Sudama and Sulochna were partners in a firm sharing profits equally. On 31st March, 2020, Sudha retired. On the date of retirement ₹ 2,40,000 became due to her. Sudama and Sulochana agreed to pay Sudha in four equal yearly instalments plus interest @ 10% p.a. on the unpaid balance starting from 31st March, 2021. The firm closes its books on 31st March every year.

Prepare Sudha’s loan account till it is fully paid.

On 1st April, 2023, GI Ltd. issued 40,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at par after five years. The company closes its books on 31st March every year. Interest on debentures is payable half-yearly on 30th September and 31st March every year. Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.

Radhika Ltd. invited applications for issuing 40,000 equity shares of ₹ 100 each at a premium of ₹ 50 per share. The amount was payable as follows:

On Application and Allotment – ₹ 40 per share (including ₹ 10 premium)

On First call – ₹ 45 per share (including ₹ 5 premium)

On Second and final call – Balance

Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at ₹ 70 per share fully paid up. The second and final call was not yet made. Pass necessary journal entries for the above transactions in the books of Radhika Ltd.

Sona Ltd. invited applications for issuing 60,000 equity shares of ₹ 50 each. The amount was payable as follows:

On Application – ₹ 20 per share

On Allotment – ₹ 25 per share

On First and final call – Balance

Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited. Pass necessary journal entries in the books of Sona Ltd. for the above transactions.

Kishore and Ranjan were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April, 2024, their Balance Sheet was as follows :

Balance Sheet of Kishore and Ranjan as at 1^st April, 2024

Liabilities & Amount (Rs.) & Assets & Amount (Rs.)

Sundry Creditors & 1,80,000 & Cash in hand & 30,000

General Reserve & 20,000 & Debtors & 1,20,000

Capitals: & & Stock & 1,50,000

Kishore & 6,00,000 & Furniture & 1,00,000

Ranjan & 4,00,000 & Land and Building & 8,00,000

& 12,00,000 & & 12,00,000

On the above date, Singh was admitted as a new partner on the following terms :

(i) Singh will bring \(Rs.~1,50,000\) as his capital and \(Rs.~50,000\) as his share of goodwill premium.

(ii) The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.

(iii) Furniture will be revalued at \(Rs.~90,000\).

(iv) A provision for doubtful debts will be created on sundry debtors at 5%.

(v) Investments worth \(Rs.~10,000\) not mentioned in the Balance Sheet will be taken into account.

(vi) A creditor of \(Rs.~1,000\) is not likely to claim his money and is to be written off.

Pass necessary journal entries for the above transactions in the books of the firm on Singh's admission.

Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31^st March, 2024, their Balance Sheet was as follows :

Balance Sheet of Madhavan, Chatterjee and Pillai as at 31^st March, 2024

Liabilities & Amount (Rs.) & Assets & Amount (Rs.)

Creditors & 1,10,000 & Cash at Bank & 4,05,000

Outstanding Expenses & 17,000 & Stock & 2,20,000

Mrs. Madhavan’s Loan & 2,00,000 & Debtors & 95,000

Chatterjee’s Loan & 1,70,000 & Less: Provision for Doubtful Debts 5,000 & 90,000

Capitals: & & Land and Building & 1,82,000

Madhavan & 2,00,000 & Plant and Machinery & 1,00,000

Chatterjee & 1,00,000 & &

Pillai & 2,00,000 & &

& 9,97,000 & & 9,97,000

On the above date, the firm was dissolved and the following transactions took place :
[(i)]
Debtors were taken over by the creditors in full settlement of their claim.
Madhavan agreed to pay Mrs. Madhavan’s loan.
50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
Land and Building was taken over by Pillai for \(Rs.~1,00,000\) and Plant and Machinery was sold as scrap for \(Rs.~20,000\).
Realisation expenses \(Rs.~17,000\) were paid by cheque.

Prepare Realisation Account.

ABC Ltd. was registered with authorised capital of \(Rs.~1,00,00,000\) divided into 10,00,000 equity shares of \(Rs.~10\) each. On 1^st April, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of \(Rs.~3\) per share.


Answer the following questions :

The authorised capital of the company is :

Operating ratio of a company is 63%. Its gross profit ratio is 20%. What will be its operating profit ratio?

• (A) 27%
• (B) 23%
• (C) 43%
• (D) 83%

(b) Which of the following is not a purpose of analysis of financial statements?

• (A) To assess the current profitability and the operational efficiency of the firm.
• (B) To ascertain the relative importance of different components of financial position of the firm.
• (C) To just study the reports of the company.
• (D) To judge the ability of the firm to repay its debt.

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :

• (A) Activity Ratios
• (B) Profitability Ratios
• (C) Solvency Ratios
• (D) Liquidity Ratios

(b) Which of the following transactions will not result in the inflow of cash ?

• (A) Cash deposited in the bank ₹ 80,000
• (B) Payment of salaries ₹ 50,000
• (C) Issue of 9% debentures ₹ 10,00,000
• (D) Purchase of machinery ₹ 2,00,000

Statement I: In case of non-financial enterprises, payment of interest and dividends are classified as financing activities, whereas receipt of interest and dividends are classified as investing activities.

Statement II: Investing and financing transactions that require the use of cash or cash equivalents, should be excluded from cash flow statement.

Choose the correct alternative from the following:

• (A) Both the statements are false.
• (B) Both the statements are true.
• (C) Statement I is false and Statement II is true.
• (D) Statement I is true and Statement II is false.

Under which major headings and sub-headings (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

• (a) Livestock
• (b) Loose Tools
• (c) Design

From the following Balance Sheet of Nayak Ltd., prepare a Comparative Balance Sheet as at 31^st March, 2024.

From the following information obtained from the books of KVK Ltd., calculate Net Assets Turnover Ratio and Debt Equity Ratio:

Information & Amount (Rupee)

Preference Share Capital & 8,00,000

Equity Share Capital & 12,00,000

General Reserve & 2,00,000

Balance in Statement of Profit and Loss & 6,00,000

15% Debentures & 4,00,000

12% Loan & 4,00,000

Revenue from Operations & 72,00,000

The following information has been extracted from the books of Ram Lal Ltd.:

Particulars & 31.3.2024 (Rupee) & 31.3.2023 (Rupee)

Surplus (P&L) & 17,00,000 & 8,00,000

Patents & -- & 50,000

Sundry Debtors & 5,80,000 & 4,20,000

Sundry Creditors & 1,40,000 & 60,000

Cash and Cash Equivalents & 2,00,000 & 90,000

Additional Information:
Interim dividend paid during the year was \textrupee{} 1,20,000.

Name the accounting information sub-system which deals with payment of wages and salaries of employees.

• (A) Costing sub-system
• (B) Expense accounting sub-system
• (C) Payroll accounting sub-system
• (D) Tax accounting sub-system

A cell reference that either holds row or column constant when the formula or function is copied to another location is known as:

• (A) Mixed cell reference
• (B) Relative cell reference
• (C) Ranges
• (D) Absolute cell reference

(a) ‘MAJN’ for Mangaluru Junction is an example of:

• (A) Secret code
• (B) Mnemonic code
• (C) Sequential code
• (D) Block code

In a graph, the area bounded by different axes is known as:

• (A) Data point
• (B) Axis title
• (C) Plot area
• (D) Legend

Explain the ways in which accounting software provides data security, safety, and confidentiality.

In an accounting software how many pre-defined account groups exist? State their further division with reference to number and type.

State the steps to prepare a chart.

Question: =SUM(B2B3) will give an error while using a spreadsheet. Identify the error and state the steps to correct it.