DELHI PUBLIC SCHOOL, JODHPUR

Half Yearly Examination (2011 - 12)

Subject – Accountancy
Class – XII
Time: 3 hours M.M. 80

General Instructions :–
i. ) Please check that this question paper contains 5 printed pages and 23 questions.
ii. ) All parts of questions should be attempted at one place.
iii. ) Please write down the serial number of the question before attempting it.
iv. ) All questions are compulsory.

1. How would you treat ‘Grant From Government’ in Not for profit organisation. [1]
2. List the any two items that may appear on the debit side on a Partner’s Fixed Capital account. [1]
3. Define Goodwill ? [1]
4. Give any one reason for revaluation of assets and reassessment of liabilities at the time of [1]
change in profit sharing ratio amongst existing partners.
5. State the name of methods of calculating deceased partner’s share of profit from the date of [1]
last balance sheet to the date of death.
6. A and B are partners sharing profit in the ratio of 5:3. They admit C and he takes ¼ of A’s [1]
share. Calculate new profit sharing ratio.
7. What is meant by pro-rata allotment? [1]
8. State any one conditions for issue of shares at discount. [1]
9. From the following information calculate amount of subscription to be credited to Income [3]
and Expenditure A/c for the year ended on 31st December, 2010 : –
Subscription received during the year 2010 ` 90,000 (including `8,000 for 2009, ` 4,000 for 2011. and `
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3,000 for 2012). Subscription outstanding on 31 December, 2009 ` 10,000. Subscription outstanding on 31
December, 2010 ` 14,000. Subscription Received in advance on 31st December, 2009 ` 15,000 (including `
3,000 for 2011)
10. Show the following information in Income and Expenditure A/c for the year ended on 31st [3]
December, 2008 : –
Creditors for stationery on 01.01.2008 ` 15,000
Stock of stationery on 01.01.2008 ` 7,500
Amount paid for stationery during the year ` 52,000
Creditors for stationery on 31.12.2008 ` 8,000
Advance paid for stationery on 31.12.2008 ` 3,000.
11. Explain any three differences between Reserve Capital and Capital Reserve. [3]
12. Palak Ltd. issued 80,000 equity shares of ` 100 each at 10% discount. The whole amount was [3]
payable on application. Applications were received for 1,00,000 shares and pro-rata
allotment was made. Give Journal entries in the books of Palak Ltd.
13. P, Q and R are partners with fixed capital of ` 2,00,000, ` 1,60,000 and ` 40,000 respectively on [4]
1st April, 2008. The partnership agreement provides : –
a) P will be entitled a salary of ` 1,000 per month.
b) After providing for P’s salary, 10% Interest on Capital and extra remuneration provided in

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 this paragraph R will be entitled to 1/4 of all the profit in excess of ` 48,000.
c) The balance of profit is to be divided in their capital ratio.
The profits for the year ended 31st March, 2009 before making any provision for the above
were ` 2,00,000.
Prepare Profit and Loss Appropriation Account.

14. X, Y and Z are partners sharing profit or loss in the ratio of 5:3:2. Their Fixed capital stood [4]
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at `1,50,000, ` 1,00,000 and ` 50,000 respectively on 31 December, 2010. As per provisions
of the partnership deed : –
(i) Y is entitled for a Salary of ` 2,000 per month,
(ii) Interest on capital is to be allowed @ 10% p.a.
The net profit for the year ended on 31st December, 2010 was ` 60,000, which was divided among the
partners equally after providing interest on capital @ 8% p.a. but without providing Salary to Y.
Give an adjustment entry.
15. A partnership firm has earned profits or losses during the last three years 2008 ` 50,000, 2009 ` [4]

20,000 (loss) and 2010 ` 60,000. The capital investment of the firm is ` 1,00,000. A fair return
on capital in the market is 10%. Calculate the value of goodwill on the basis of capitalisation
of average profit if remuneration of the partners is estimated to be ` 10,000 p.a.
16. X, Y and Z are partners in a firm. A died on 1st January, 2009 and on that date his capital [4]
account showed a balance of Rs 70,000. Goodwill of the firm be valued at Rs 60,000. A’s
executor is paid in kind a Equipment valued at Rs 24,000 unrecorded in the books of the firm on
the date of death and balance in cash. Give Journal entries for above in the books of the firm.
17. Pass Journal entries for the following transactions on dissolution in the books of the firm, [4]
where A and B were sharing profits and losses in the ratio of 3:2, assuming that assets and
third party liabilities have been transferred to Realisation A/c.
i) X’s loan of ` 20,000 was settled at ` 14,000.
ii) B has taken an unrecorded asset of ` 5,000 at `2,000.
iii) Realisation expenses paid by the firm amounted to ` 6,000 out of which 20% is to be borne by A.
iv) Deferred revenue expenditure appeared at ` 20,000
18. From the following particulars relating to Royal Club. Prepare Income and Expenditure [ 6 ]
Account for the year ended on 31st Dec., 2009 and calculate Capital Fund on 1st Jan., 2009.
Receipts and Payments A/c
Receipts ` Payments `
Cash in hand 74,000 Salary 30,000
Subscription Postage 4,000
2008 4,000 Insurance (on 01.07.09 for one year) 6,000
2009 85,000 Books 20,000
2010 6,000 95,000 Tournament expenses 17,000
Sale of Investments 50,000 Upkeep of ground 10,000
Donation 20,000 Office expenses 15,000
Sale of old news paper 5,000 Cash in hand 1,82,000
Locker Rent 30,000
Tournament Fund 10,000
2,84,000 2,84,000
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Subscription for 2009, still owing ` 10,000, locker rent was outstanding on 31 December, 2008 ` 2,000 and
still in arrear for 2009 ` 1,500. The book value of investment sold was ` 60,000, ` 40,000 of the investments
were still in hand. Subscription received in 2009 included ` 5,000 from a life member. Stock of postage on 1st

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 January, 2009 ` 2,000. Interest on investments was accrued for one year @ 10% on opening balance of
investments. Depreciate Books @ 10% and write off postage by 20%.
19. A, B and C are partners sharing profits or losses in the ratio of 5:3:2. Their Balance sheet on [ 6 ]
31st March, 2009 was as follows : –
Balance Sheet
Liabilities (`) Assets (`)
Capital : Building 7,00,000
A 5,00,000 Plant & Machinery 5,00,000
B 6,00,000 Stock 2,50,000
C 4,00,000 15,00,000 Debtors 3,00,000
Reserve 2,00,000 Bill Receivables 20,000
Profit & Loss A/c 40,000 Cash at Bank 30,000
Creditors 60,000
18,00,000 18,00,000

It was decided that with effect from 1st April, 2009 profit and loss sharing ratio will be 2:5:3. They
agreed on the following terms : –
i) Goodwill of the firm is valued at `3,00,000.
ii) Building is to be appreciated by 20% and Plant & Machinery is to be depreciated to 80%.
iii) A provision of 10% on debtors is to be made.
iv) An item of ` 5,000 included in creditors is not likely to be claimed.
Partners do not want to record the altered value of assets and liabilities in the books. They also do
not want to distribute the Reserve.
Prepare Partners Capital Accounts and revised Balance Sheet.
20. M, N and O were partners in a firm sharing profits in the ratio of 2:2:1. Their Balance Sheet [ 6 ]
on 31st December, 2009 was as follows : –
Balance Sheet
Liabilities (`) Assets (`)
Creditors 40,000 Cash at Bank 50,000
Mrs M’s Loan 30,000 Debtors 36,000
O’s Loan 20,000 Less: Provision 1,000 35,000
Investments Fluctuation Fund 10,000 Stock 20,000
Reserve Fund 30,000 Investments 45,000
Capital : Furniture 40,000
M 70,000 Plant & Machinery 1,00,000
N 60,000 Goodwill 10,000
O 40,000 1,70,000
3,00,000 3,00,000

Partners agreed to dissolve the firm on that date on following terms : –

i) M agreed to take half of the Investments at 20% less.
ii) Stock of ` 10,000 were taken by O at 10% less than the book value.
iii) Furniture of ` 20,000 was taken by a creditor at ` 15,000.
iv) Amount realized from Plant & Machine at 30% more, Debtors realized at Full, remaining
investments and Furniture realized at ` 20,000 and ` 22,000 respectively.
v) A Bill Receivable for ` 5,000 under discount was dishonored as the acceptor become insolvent and
only 20 paisa in rupee realized from him.
vi) Realisation expenses were ` 2,000.
Prepare Realisation A/c and Partners Capital Accounts.
21. X, Y and Z were partners sharing profit 5:3:2. Their Balance Sheet as on 31st Dec., 2009 was [ 6 ]
as follows : –
Liabilities ` Assets `
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 Bills Payable 25,000 Cash at Bank 30,000
Creditors 35,000 Stock 10,000
Workmen Compensation Fund 8,000 Debtors 35,000
General Reserve 25,000 Less: Provision 5,000 30,000
Capital Furniture 38,000
X 75,000 Building 1,00,000
Y 45,000 Profit & Loss A/c 20,000
Z 15,000 1,35,000
2,28,000 2,28,000

X retired on 1st January, 2010 on following terms :

i) Goodwill of the firm is valued at ` 20,000.
ii) The provision for bad and doubtful debts to be maintained at 10% on debtors.
iii) That out of the amount of insurance premium which was debited entirely to profit & loss accounts,
` 2,000 be carried forward for unexpired insurance.
iv) The liability regarding workmen compensation is determined at ` 3,000.
v) Part of the stock which had been included at cost of ` 5,000 had been badly damaged in storage
and could be expected to realise ` 1,000 only.
vi) Furniture is to be depreciated to 80% and Building is to be appreciated to 125%.

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 vii) X is to be paid through cash brought in by Y and Z in such a way as to make their capital in the ratio of 2:3.
Prepare Revaluation Account and Partner’s Capital Accounts .

22. Shalabh Ltd. has been registered with an authrised capital of ` 10,00,000 divided into [ 8 ]
1,00,000 shares of ` 10 each. Out of which, 60,000 shares were offered for public subscription
at a premium of ` 2 per share, payable on application ` 3 per share, on allotment ` 5 per share
(including premium), on first call ` 2 per share and balance on final call.
Applications were received for 1,00,000 shares out of which 10,000 shares were rejected and
remaining were allotted on pro rata basis. Ruchit to whom 2,000 shares were allotted failed
to pay allotment and calls money and his shares were forfeited. Out of forfeited 1,500 shares
were reissued at ` 8 per share as fully paid.
Give Journal entries in the books of company.
OR
Komal Ltd. issued 1,00,000 shares of ` 100 each at 10% discount, payable as ` 30 on
application, ` 50 on allotment and balance on first and final call. Applications were received for
1,20,000 shares. Ankit who had applied for 20,000 shares, was allotted 12,000 shares. He failed
to pay allotment money and his shares were forfeited immediately after allotment. Arvind who
had applied for 20,000 shares and was allotted 8,000 shares, failed to pay the first and final call
money.
Out of forfeited shares, 8,000 shares were reissued at ` 80 per share as fully paid. Give journal
entries in the books of company.
23. A and B are partners sharing profits and losses in the ratio of 3:2. The Balance Sheet on 31st [8]
March, 2009 was as follows : –
Liabilities ` Assets `
Account Payable 40,000 Cash at Bank 25,000
Investments Fluctuation Fund 10,000 Debtors 50,000
Reserve Fund 20,000 Less: Provision 5,000 45,000
Employees Provident Fund 30,000 Stock 30,000
Capital Investments 20,000
A 80,000 Machinery 1,00,000
B 70,000 1,50,000 Goodwill 10,000
Advertisement Suspense A/c 20,000
2,50,000 2,50,000

On this date C is admitted as a partner on the following terms :

i) C brings ` 50,000 as capital for his 1/5 share in profit which he acquires equally from A and B.
ii) Goodwill of the firm is valued at ` 1,00,000.
iii) 25% of the reserve Fund is to be kept for provision for bad debts.
iv) Stock was overvalued by 25% and investments were valued at ` 5,000 which were taken by A
and B in their profit sharing ratio.
v) Machinery is to be depreciated to 90%.
vi) Account payable include a contingent liability of ` 5,000, which has been decided by the court at
` 3,000.
vii) The capital of the firm is to be adjusted on the basis of C’s capital by opening current accounts.

Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet after admission.
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 OR
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On 31 March, 2009, the Balance Sheet of A, B and C who were partners in a firm sharing
profits or losses in the ratio of 4:3:3, was as under :–

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 Balance Sheet
Liabilities ` Assets `
Sundry Creditors 35,000 Bank 15,000
Employee’s Provident Fund 15,000 Debtors 42,000
Workmen Compensation Reserve 10,000 Less: Provision 2,000 40,000
Reserve fund 15,000 Stock 40,000
Capital B’s Loan 10,000
A 50,000 Patents 10,000
B 25,000 Building 50,000
C 35,000 1,10,000 Goodwill 20,000
1,85,000 1,85,000

The partnership deed provides that in the event of death of any partner, his executors will be
entitled to be paid out : –
i) The capital of his credit at the date of last Balance Sheet.
ii) Interest on capital @ 10% p.a. and Interest on drawing @ 6% per annum.
iii) His share in goodwill which is to be valued on the basis of average profit of preceding 3 years plus 20%.
iv) His proportion of profits to the date of death based on the basis of last years profit, less 10%.
v) The Net Profit for the last three years were : 31st March, 2007 ` 50,000, 31st March, 2008 ` 60,000
and on 31st March, 2009 ` 40,000.
vi) Salary is allowed to B at ` 30,000 per annum.

B died on 31st July, 2009. He had withdrawn ` 6,000 at beginning of the every month to the date of his
death. Stock is to be valued at 25% more and Patents are value less.
Prepare B’s Capital Account and B’s Executors Account if half of the due amount was paid
immediately to B’s Executors.

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