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CBSE Sample Papers for Class 12 Accountancy

Class 12 Accountancy Sample Paper Set A

Class 12 Accountancy Sample Paper Term 1 Set A

Class 12 Accountancy Sample Paper Term 2 Set A

Class 12 Accountancy Sample Paper Term 1 Set A

Part – I
Section – A

1. Shares issued by a company to its employees or directors at a discount are called …… .
(a) Right equity shares
(b) Private equity shares
(c) Sweat equity shares
(d) Bonus equity shares   

2. Workmen Compensation Reserve (WCR) appears in the balance sheet of X and Y who share profits in the ratio of 2 : 3 at ₹ 40,000. Z is admitted and the new profit sharing ratio is 1 : 1 : 1. If the claim on account of WCR is estimated at ₹ 50,000, then
(a) the difference of ₹ 10,000 will be debited to revaluation account
(b) the difference of ₹ 10,000 will be debited to X’s capital account
(c) the difference of ₹ 10,000 will debited to Y’s capital account
(d) None of the above 

3. A and B are partners sharing profits and losses in the ratio 4 : 1. C was manager who received the salary of Rs. 2,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is Rs. 3,39,000 before charging salary.
What will be the total remuneration of C?
(a) Rs. 39,000
(b)Rs. 44,000
(c) Rs. 43,500
(d)v 38,000   

4. Subscribed capital ……… .
(a) is that part of authorised capital which is issued to the public for subscription
(b) is that part of issued capital which has been actually subscribed by the public
(c) is that part of subscribed capital which has been called-up on the shares
(d) is that part of subscribed capital which has not yet been called-up on the shares   

5. If a fixed amount is withdrawn by a partner on the first day of every month, interest on the total amount is charged for ……… months.
(a) 6
(b) 6 1/2
(c) 5 1/2
(d) 12   

6. A company has issued 5,000 equity shares of Rs. 10 each and it has called the total nominal (face) value. It has received the total amount, except the final call of Rs. 3 on 250 equity shares.
(a) 250 equity shares will be shown as subscribed and fully paid up
(b) 250 equity shares will be shown as subscribed but not fully paid up
(c) 250 equity shares will be shown as issued share capital
(d) None of the above   

7. On 1st January, 2020, a partner advanced a loan of Rs. 20,000 to the firm. In the absence of agreement, interest on loan on 31st March, 2020 will be
(a) Nil
(b) Rs. 300
(c) Rs. 600
(d) Rs. 1,200   

8. ‘P’, ‘Q’ and ‘R’ are partners sharing profits in the ratio of 3 : 2 : 3. They agree to admit ‘Z’ into the firm. P, Q and R agreed to give 1/3 rd, 1/4 th and 1/5 th share of their profit. The share of profit of ‘Z’will be
(a) 21/80
(b) 20/80
(c) 15/80
(d) 24/80   

9. D, E and F are partners sharing profits in the ratio of 5 : 3 : 2. They have admitted M into the partnership for 1/6 th share. An extract of their balance sheet on 1st April, 2021 is as follows

If the market value of investment is Rs. 1,45,000, then the investment fluctuation fund will be shown in the balance sheet of the firm at
(a) Rs. 13,500
(b) Rs. 10,000
(c) Rs. 5,000
(d) Rs. 6,500 

10. Share application account is a ………… in nature.
(a) real account
(b) personal account
(c) nominal account
(d) None of these   

11. Net profit of a firm is Rs. 9,900. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s commission will be
(a) Rs. 990
(b) Rs. 900
(c) Rs. 1,100
(d) Rs.970 

12. On an equity share of Rs. 50, the company has called-up Rs.40 but only Rs. 30 have been received by the company and the share is forfeited. In this case, share capital account should be debited by
(a) Rs. 50
(b) Rs. 40
(c) Rs. 30
(d) Rs. 10 

13. Raj is a partner in a firm. He withdraw regularly ₹ 4,000 every month for the six months ending 31st March, 2020. If interest on drawings is charged @ 8% p.a., the interest charged will be
(a) Rs. 960
(b) Rs. 560
(c) Rs. 400
(d) Rs. 480   

14. At the time of change in profit sharing ratio, accumulated …… are …… in partners’ capital account.
(a) profits; debited
(b) losses; credited
(c) Both (a) and (b)
(d) None of these   

15. L and M are partners in a firm sharing profits and losses in the ratio of 2 : 3. N is admitted for 1/5 th share in the profits of the firm. If N gets is wholly from L, the new profit sharing ratio after N’s admission will be
(a) 1 : 3 : 3
(b) 3 : 1 : 1
(c) 2 : 2 : 1
(d) 1 : 3 : 1   

16. 600 shares of Rs. 10 each were forfeited for non-payment of Rs.2 per share on first call and Rs.5 per share on final call. Share forfeiture account will be credited with
(a) Rs. 1,200
(b) Rs. 1,800
(c) Rs. 3,000
(d) Rs. 4,200   

17. ‘Profit and loss adjustment account’ is ……… in nature.
(a) real
(b) personal
(c) Both (a) an (b)
(d) nominal   

18. When a company issues shares at a premium, the amount of premium should be received by the company
(i) along with application money
(ii) along with allotment money
(iii) along with calls
(a) Only (i)
(b) (i) and (ii)
(c) Only (iii)
(d) Any of these     

Section – B

19. ABC Ltd. invited applications for 12,500 equity shares of Rs. 10 each and received 15,000 applications along with the application money of Rs. 3 per share. Which of the following  alternatives can be followed?
(i) Refund the excess application, full allotment to rest of the applications.
(ii) Not to alter any share to some applicants, full allotment to some of the applicants and pro-rata allotment to the rest of the applicants.
(iii) Not to allot any share to same applicants and make pro-rata allotment to other applicants.
(iv) Make pro-rata allotment to all the applicants ad adjust the excess money received towards call money.
(a) Only (i)
(b) (i) and (iii)
(c) (ii) and (iv)
(d) All of these   

20. The directors of PQR Ltd. forfeited 10,000 equity shares of Rs. 10 each, Rs. 8 per share called-up for non-payment of Rs. 2 per share. Final call of Rs. 2 per share has not been yet called. Half of the forfeited share where reissued as fully paid up for Rs. 15 per share.
The amount transferred to capital reserve will be
(a) Rs. 1,00,000
(b) Rs. 60,000
(c) Rs. 30,000
(d) Rs. 20,000   

21. A and B shared profits and losses in the ratio of 3 : 2. With effect from 1st April, 2021, they agreed to share profits equally. Goodwill of the firm was valved at Rs. 30,000. The  adjustment entry will be
(a) B’s Capital A/c                       Dr   3,000
          To A’s Capital A/c 3,000
(b) A’s Capital A/c                       Dr   3,000
         To B’s Capital A/c 3,000 
(c) A’s Capital A/c                       Dr    300
        To B’s Capital A/c 300 
(d) B’s Capital A/c                      Dr    300
       To A’s Capital A/c 300                             

22. Sacrificing ratio is determined at the time of change in profit sharing ratio so that
(i) assets and liabilities are shown at their present values.
(ii) gaining partner is not put to an advantage and sacrificing partner is not put to disadvantage and vice-versa.
(iii) gaining partner can compensate the sacrificing partner for the sacrifice of profit share.
(iv) assets and liabilities are shown at their current estimated values.
(a) Only (iii)
(b) (i) and (ii)
(c) (ii) and (iv)
(d) All of the above 

23. A company purchased a building for Rs. 1,80,000 and issued equity shares at 20% premium as payment. Journal entry will be

24. XYZ Ltd. issued 20,000 equity shares of Rs. 20 each payable as Rs. 5 on applications; Rs. 7 on allotment and Rs. 8 on final call. Company received the due amount but one shareholder  holding 125 shares did not pay the allotment money and another shareholder holding 75 shares failed to pay the amount due on final call. Total amount of calls in-arrear will be
(a) Rs. 875
(b) Rs. 1,600
(c) Rs. 3,000
(d) Rs. 2,475   

25. Sleeping partners ………… .
(a) take active part in the conduct of the business but provide no capital. However, salary is paid to them
(b) do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio
(c) take active part in the conduct of the business but provide no capital. However, share profits and losses in the agreed ratio
(d) do not take any part in the conduct of the business and contribute no capital. However, share profits and losses in the agreed ratio     

26. There are two partners in a firm X and Y. Z is admitted into the firm of 1/3 rd share of profit with the guaranteed profit of Rs. 900 p.a. The firm’s total profit is Rs. 2,100. If X stood as guarantor of guaranteed profit to Z, how much profit would be given to X?
(a) Rs. 1,000
(b) Rs. 750
(c) Rs. 500
(d) Rs. 900   

27. Assertion (A) Equity shareholders and preference shareholders are treated as owners of the company.
Reason (R) The liability of every shareholder of the company is unlimited.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

28. A and B are partners. A draws fixed amount at the end of every month. Interest on drawings is charged @ 15% p.a. At the end of the year, interest on drawings of B amounts to Rs. 2,062.5. Drawings of A will be
(a) Rs. 3,000 p.m.
(b) Rs. 2,500 p.m.
(c) Rs. 2,250 p.m.
(d)Rs. 2,000 p.m.     

29. Capital employed by a partnership firm is Rs. 2,50,000. Its average profit is Rs. 30,000. The normal rate of return in similar type of business is 10%. The amount of super profit will be
(a) Rs. 25,000
(b) Rs. 5,000
(c) Rs. 3,000
(d) Rs. 28,000   

30. Assertion (A) Manager’s commission is transferred to the debit of profit and loss account.
Reason (R) Managers commission is a charge against profit.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

31. X and Y are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit Z as a new partner, X sacrificed 1/7 th share of his profit and Y sacrificed 1/3 rd of his share in favour of Z. The new profit sharing ratio of X, Y and Z will be
(a) 3 : 1 : 1
(b) 2 : 1 : 1
(c) 2 : 2 : 1
(d) None of these   

32. Assertion (A) Goodwill is treated as an asset of the firm.
Reason (R) Goodwill helps a business to earn more profits and attract more customers.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

33. If discount on reissue of shares is less than the amount forfeited, the surplus is transferred to
(a) capital reserve
(b) general reserve
(c) securites premium reserved
(d) statement of profit and loss   

34. P and Q are partners in the ratio of 3 : 2. Their capitals are Rs. 1,00,000 and ₹ 50,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs. 7,500 for the year ended 31st March, 2021. As per partnership agreement, interest on capital is treated a charge on profits. Interest on capital will be
(a) P Rs. 8,000;Y Rs. 4,000
(b) P Rs. 4,500; Q Rs. 3,000
(c) P Rs. 5,000; Y Rs. 2,500
(d) No interest will be allowed   

35. D and E are two partners sharing profits in the ratio of 2 : 1. F, a new partner admitted for 1/4 ^th share. At the time of admission, loss from revaluation is Rs. 4,500. Journal entry for distribution of loss between the partners is
D’s Capital A/c                     Dr    X
E’s Capital A/c                     Dr     Y
            To Revaluation A/c                  Z
Here X, Y, Z are
(a) Rs. 3,000, Rs. 1,500, Rs. 4,500 respectively
(b) Rs. 1,500, Rs. 3,000, Rs. 45,000 respectively
(c) Rs. 6,000, Rs. 3,000, Rs. 9,000 respectively
(d) Rs. 3,000, Rs. 6,000, Rs.9,000 respectively   

36. Which of the following is not a capital profit?
(i) Profit prior to incorporation of the company
(ii) Profit from the sale of fixed assets
(iii) Premium on issue of shares
(iv) Compensation received on the termination of a contract
(a) (i) and (ii)
(b) (ii) and (iii)
(c) Only (iv)
(d) (iii) and (iv)     

Section – C

Goldee limited was incorporated on 1st April, 2020 with registered office in Ahmedabad. The  capital clause of memorandum of association reflected a registered capital of Rs. 2,00,000 equity  shares of Rs. 10 each and 25,000 preference shares of ₹ 50 each.
Since some large investments were required for building and machinery, the company in consultation with vendors, M/s Sultan Ltd. issued 25,000 equity shares and 5,000 preference
shares at par to them in full consideration of assets acquired. Besides this the company issued 50,000 equity shares for cash at par payable as ₹ 3 on application, ₹ 2 on allotment, ₹ 3 on first call and ₹ 2 on second call.
Till date, second call has not yet been made and all the shareholders have paid except Rishant who did not pay allotment and calls on his 75 shares and Sonu who did not pay first call on his 50 shares. Shares of Rishant were then forfeited and out of them 25 shares were reissued at ₹ 12 per share.

37. How many equity shares of the company have been subscribed?
(a) Rs. 75,000
(b) Rs. 71,875
(c) Rs. 74,950
(d) None of these   

38. The amount of security premium reflected in the balance sheet at the end of the year will be ……… .
(a) ₹ 50
(b) ₹ 150
(c) ₹ 100
(d) ₹ 250   

Riya, Piya and Tiya are partners engaged in the business of manufacturing readymade garments. Riya, Piya and Tiya share profits equally. As the firm required additional funds to purchase more raw material, Riya decided to bought additional capital of ₹ 75,000 in the firm. As Riya bought additional funds, she demanded that her share in profit should be increased.
From 1st April, 2020, Riya, Piya and Tiya decided to share profits in 2 : 1 : 1 ratio. Following assets and liabilities are revalued and reassessed at the time of reconstitution.

39. Gaining/Sacrificing share between partners will be
(a) Riya sacrifice = 1/12, Piya sacrifice = 1/12, Tiya gain = 1/6
(b) Riya gain = 1/6, Piya sacrifice = 1/12, Tiya sacrifice = 1/2
(c) Riya gain = 1/12, Piya gain = 1/12, Tiya sacrifice = 1/6
(d) Riya sacrifice = 1/6, Piya gain = 1/12, Tiya gain = 1/12   

40. Amount of profit on revaluation will be
(a) ₹ 3,750
(b) ₹ 46,250
(c) ₹ 8,750
(d) ₹ 9,250   

41. Journal for profit on revalution will be

Part – II
Section – A

42. Out of the following, which is not a limitation of financial statement analysis?
(i) Affected by personal bias
(ii) Inter-firm comparative study possible
(iii) Lack of qualitative analysis
(iv) Ignores prices level changes
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (ii) and (iv)
(d) Only (ii) 

43. Which of the following is true?
(i) Purchase of goods on credit would increase current ratio
(ii) Purchase of goods on credit would decrease current ratio
(iii) Purchase of goods on credit would have no effect on current ratio
(iv) Purchase of goods on credit would decrease gross profit ratio
(a) (i) and (iv)
(b) (ii) and (iv)
(c) Only (ii)
(d) Only (iii)   

44. Assertion (A) Objective of financial statement analysis is to measure the earning capacity and financial strength of a business and to facilitate comparative study.
Reason (R) Financial statements are to be prepared as per format prescribed in Indian Partnership Act.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

45. Ideal debt ratio is
(a) 1 : 2
(b) 2 : 3
(c) 3 : 2
(d) 2 : 1   

46. In a company’s balance sheet, under which sub-head ‘trade investments’ are shown?
(a) Current investment
(b) Non-current investments
(c) Intangible assets
(d) Short-term loans and advances 

47. Match the column.

Codes
      A    B   C 
(a) (i)  (ii) (iii)
(b) (ii) (iii) (i)
(c) (ii)  (i) (iii)
(d) (iii) (ii) (i)   

48. Operating ratio is
(a) Cost of Revenue from Operations + Selling Expenses/Net Revenue from Operations
(b) Cost of Production + Operating Expenses/Net Revenue from Operations
(c) Cost of Revenue from Operations + Operating Expenses/Net Revenue from Operations
(d) Cost of Production/Net Revenue from Operations   

Section – B

49. Out of the following, which is a tool of financial statement analysis?
(i) Comparative income statement
(ii) Comparative position statement
(iii) Statement of profit and loss
(a) (i) and (ii)
(b) Only (iii)
(c) (i) and (iii)
(d) (ii) and (iii) 

50. Assertion (A) Quick ratio shows the strength of liquidity of a business unit.
Reason (R) Quick ratio analysis quick assets and current liabilities of a business in order to assess the extent of liquidity.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

51. A firm’s current assets are ₹ 80,000, current ratio is 2 : 1, cost of revenue from operations is ₹ 1,20,000, its working capital turnover ratio will be
(a) 3 times
(b) 2 times
(c) 4 times
(d) 8 times 

52. Which of the following is true?
(i) Sale of goods for cash will improve quick ratio
(ii) Sale of goods on credit will improve quick ratio
(iii) Issue of new shares for cash will improve quick ratio
(a) Only (i)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) All ot these   

53. Assertion (A) Provision for doubtful debts is a provision made to meet the possible loss of bad debts as a percentage of net debtors.
Reason (R) Provision for doubtful debts is shown by way of addition to the amount shown under trade receivables.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false   

54. 50,000, 9% debentures redeemable within 12 months of the data of balance sheet will be shown under
(a) Short-term borrowings
(b) Short-term provision
(c) Other current liability
(d) Trade payables 

55. From the following, calculate current assets
Cash balance                        ₹ 2,500
Trade payable                      ₹ 20,000
Inventory                             ₹ 25,000
Trade receivable                  ₹ 32,500
Prepaid expenses                ₹ 5,000
Creditors                              ₹ 15,000
(a) ₹ 62,500
(b) ₹ 65,000
(c) ₹ 80,000
(d) ₹ 60,000