Class 12 Accountancy: CBSE Sample Question Papers (2024-25) | Accountancy Class 12 - Commerce PDF Download

 Page 1


SAMPLE QUESTION PAPER 2024 – 25 
SUBJECT:- ACCOUNTANCY 055 
CLASS XII 
TIME 3 HOURS                                                                                                                              MAX. MARKS 80 
GENERAL INSTRUCTIONS: 
1. This question paper contains 34 questions. All questions are compulsory. 
2. This question paper is divided into two parts, Part A and B. 
3. Part - A is compulsory for all candidates.  
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. 
Students must attempt only one of the given options.  
5. Question 1 to 16 and   27 to 30 carries 1 mark each. 
6. Questions 17 to 20, 31and 32 carries 3 marks each. 
7. Questions from 21 ,22 and 33 carries 4 marks each 
8. Questions from 23 to 26 and 34 carries 6 marks each  
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 
questions of three marks, 1 question of four marks and 2 questions of six marks.  
PART A 
(Accounting for Partnership Firms and Companies) 
 
S.No. Question Marks 
Part A :- Accounting for Partnership Firms and Companies  
1.  Anthony a partner was being guaranteed that his share of profits will not be less than ? 
60,000 p.a. Deficiency, if any was to be borne by other partners Amar and Akbar 
equally. For the year ended 31st March, 2024 the firm incurred loss of ? 1,80,000. 
What amount will be debited to Amar’s Capital Account in total at the end of the year? 
A. ? 60,000 
B. ? 1,20,000 
C. ? 90,000 
D. ? 80,000 
1 
2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. 
Reasoning: In case of Fixed capitals all the transactions other than Capital are done 
through Current account of the partner. 
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 
D. A is false but R is true 
1 
3. Forfeiture of shares leads to reduction of _________________Capital. 
A. Authorised 
B. Issued 
C. Subscribed 
D. Called up                                                       
1 
Page 2


SAMPLE QUESTION PAPER 2024 – 25 
SUBJECT:- ACCOUNTANCY 055 
CLASS XII 
TIME 3 HOURS                                                                                                                              MAX. MARKS 80 
GENERAL INSTRUCTIONS: 
1. This question paper contains 34 questions. All questions are compulsory. 
2. This question paper is divided into two parts, Part A and B. 
3. Part - A is compulsory for all candidates.  
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. 
Students must attempt only one of the given options.  
5. Question 1 to 16 and   27 to 30 carries 1 mark each. 
6. Questions 17 to 20, 31and 32 carries 3 marks each. 
7. Questions from 21 ,22 and 33 carries 4 marks each 
8. Questions from 23 to 26 and 34 carries 6 marks each  
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 
questions of three marks, 1 question of four marks and 2 questions of six marks.  
PART A 
(Accounting for Partnership Firms and Companies) 
 
S.No. Question Marks 
Part A :- Accounting for Partnership Firms and Companies  
1.  Anthony a partner was being guaranteed that his share of profits will not be less than ? 
60,000 p.a. Deficiency, if any was to be borne by other partners Amar and Akbar 
equally. For the year ended 31st March, 2024 the firm incurred loss of ? 1,80,000. 
What amount will be debited to Amar’s Capital Account in total at the end of the year? 
A. ? 60,000 
B. ? 1,20,000 
C. ? 90,000 
D. ? 80,000 
1 
2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. 
Reasoning: In case of Fixed capitals all the transactions other than Capital are done 
through Current account of the partner. 
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 
D. A is false but R is true 
1 
3. Forfeiture of shares leads to reduction of _________________Capital. 
A. Authorised 
B. Issued 
C. Subscribed 
D. Called up                                                       
1 
OR 
Moon ltd. issued 40,000, 10% debentures of ?100 each at certain rate of discount and 
were to be redeemed at20% premium. Exiting balance of Securities premium before 
issuing of these debentures was ?12,00,000 and after writing off loss on issue of 
debentures , the balance in Securities Premium was ?2,00,000. At what rate of discount 
these debentures were issued? 
A. 10% 
B. 5% 
C. 25% 
D. 15% 
4. At the time of admission of new partner Vasu, Old partners Paresh and Prabhav had 
debtors of ? 6,20,000 and a provision for doubtful debts (PDD) of ? 20,000 in their 
books. As per terms of admission, assets were revalued, and it was found that debtors 
worth ? 15,000 had turned bad and hence should be written off. Which journal entry 
reflects the correct accounting treatment of the above situation?  
A.  Bad Debts A/c Dr. 
    To Debtors A/c 
Prov for D. debts  A/c Dr. 
    To Bad Debts A/c 
15,000 
 
15,000 
 
15,000 
 
15,000 
 
B.  Bad Debts A/c Dr. 
    To Debtors A/c 
Revaluation A/c Dr. 
    To Prov for doubt debtsA/c 
15,000 
 
15,000 
 
 
15,000 
 
15,000 
 
C.  Revaluation A/c Dr. 
    To Debtors A/c 
15,000  
15,000 
 
D.  Bad Debts A/c Dr. 
    To Revaluation A/c 
15,000  
15,000 
 
OR 
 
Ram and Shyam were partners sharing profits and losses in the ratio of 3:2. Their 
balance sheet shows building at ? 1,60,000. They admitted Mohan as a new partner for 
1/4th share. In additional information it is given that building is undervalued by 20%. 
The share of loss/gain of revaluation of Shyam is ____________ & current value of 
building shown in new balance sheet is _______.   
A. Gain ? 12,800, Value? 1,92,000 B. Loss ? 12,800, Value? 1,28,000 
C. Gain ? 16,000, Value? 2,00,000 D. Gain ? 40,000, Value? 2,00,000 
 
1 
5. The profit earned by a firm after retaining ? 15,000 to its reserve was ? 75,000. The 
firm had total tangible assets worth ? 10,00,000 and outside liabilities ? 3,00,000. The 
value of the goodwill as per capitalization of average profit method was valued as ? 
50,000. Determine the rate of Normal Rate of Return. 
A. 10 % 
B. 5 % 
1 
Page 3


SAMPLE QUESTION PAPER 2024 – 25 
SUBJECT:- ACCOUNTANCY 055 
CLASS XII 
TIME 3 HOURS                                                                                                                              MAX. MARKS 80 
GENERAL INSTRUCTIONS: 
1. This question paper contains 34 questions. All questions are compulsory. 
2. This question paper is divided into two parts, Part A and B. 
3. Part - A is compulsory for all candidates.  
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. 
Students must attempt only one of the given options.  
5. Question 1 to 16 and   27 to 30 carries 1 mark each. 
6. Questions 17 to 20, 31and 32 carries 3 marks each. 
7. Questions from 21 ,22 and 33 carries 4 marks each 
8. Questions from 23 to 26 and 34 carries 6 marks each  
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 
questions of three marks, 1 question of four marks and 2 questions of six marks.  
PART A 
(Accounting for Partnership Firms and Companies) 
 
S.No. Question Marks 
Part A :- Accounting for Partnership Firms and Companies  
1.  Anthony a partner was being guaranteed that his share of profits will not be less than ? 
60,000 p.a. Deficiency, if any was to be borne by other partners Amar and Akbar 
equally. For the year ended 31st March, 2024 the firm incurred loss of ? 1,80,000. 
What amount will be debited to Amar’s Capital Account in total at the end of the year? 
A. ? 60,000 
B. ? 1,20,000 
C. ? 90,000 
D. ? 80,000 
1 
2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. 
Reasoning: In case of Fixed capitals all the transactions other than Capital are done 
through Current account of the partner. 
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 
D. A is false but R is true 
1 
3. Forfeiture of shares leads to reduction of _________________Capital. 
A. Authorised 
B. Issued 
C. Subscribed 
D. Called up                                                       
1 
OR 
Moon ltd. issued 40,000, 10% debentures of ?100 each at certain rate of discount and 
were to be redeemed at20% premium. Exiting balance of Securities premium before 
issuing of these debentures was ?12,00,000 and after writing off loss on issue of 
debentures , the balance in Securities Premium was ?2,00,000. At what rate of discount 
these debentures were issued? 
A. 10% 
B. 5% 
C. 25% 
D. 15% 
4. At the time of admission of new partner Vasu, Old partners Paresh and Prabhav had 
debtors of ? 6,20,000 and a provision for doubtful debts (PDD) of ? 20,000 in their 
books. As per terms of admission, assets were revalued, and it was found that debtors 
worth ? 15,000 had turned bad and hence should be written off. Which journal entry 
reflects the correct accounting treatment of the above situation?  
A.  Bad Debts A/c Dr. 
    To Debtors A/c 
Prov for D. debts  A/c Dr. 
    To Bad Debts A/c 
15,000 
 
15,000 
 
15,000 
 
15,000 
 
B.  Bad Debts A/c Dr. 
    To Debtors A/c 
Revaluation A/c Dr. 
    To Prov for doubt debtsA/c 
15,000 
 
15,000 
 
 
15,000 
 
15,000 
 
C.  Revaluation A/c Dr. 
    To Debtors A/c 
15,000  
15,000 
 
D.  Bad Debts A/c Dr. 
    To Revaluation A/c 
15,000  
15,000 
 
OR 
 
Ram and Shyam were partners sharing profits and losses in the ratio of 3:2. Their 
balance sheet shows building at ? 1,60,000. They admitted Mohan as a new partner for 
1/4th share. In additional information it is given that building is undervalued by 20%. 
The share of loss/gain of revaluation of Shyam is ____________ & current value of 
building shown in new balance sheet is _______.   
A. Gain ? 12,800, Value? 1,92,000 B. Loss ? 12,800, Value? 1,28,000 
C. Gain ? 16,000, Value? 2,00,000 D. Gain ? 40,000, Value? 2,00,000 
 
1 
5. The profit earned by a firm after retaining ? 15,000 to its reserve was ? 75,000. The 
firm had total tangible assets worth ? 10,00,000 and outside liabilities ? 3,00,000. The 
value of the goodwill as per capitalization of average profit method was valued as ? 
50,000. Determine the rate of Normal Rate of Return. 
A. 10 % 
B. 5 % 
1 
C. 12 % 
D. 8 %  
6. Mohit had applied for 900 shares, and was allotted in the ratio 3 : 2. He had paid 
application money of ? 3 per share and couldn’t pay allotment money of ? 5 per share. 
First and Final call of ? 2 per share was not yet made by the company. His shares were 
forfeited. The following entry will be passed 
 
    Share Capital A/c Dr.                    X 
         To Share Forfeited A/c                        Y  
         To Share Allotment A/c                       Z 
  
Here X, Y and Z are: 
 
A. ? 6,000; ? 2,700; ? 3,300 B. ? 4,800; ? 2,700; ? 2,100 
C. ? 4,800; ? 1,800; ? 3,000 D. ? 6,000; ? 1,800; ? 4,200 
 
Or 
 
A company forfeited 6,000 shares of ? 10 each, on which only application money of ? 3 
has been paid. 4,000 of these shares were re-issued at ? 12 per share as fully paid up. 
Amount of Capital Reserve will be _______. 
 
A. ? 18,000 B. ? 12,000 
C. ? 30,000 D. ? 24,000 
 
1 
7. On 1st April 2019 a company took a loan of ?80,00,000 on security of land and building. 
This loan was further secured by issue of 40,000, 12% Debentures of ?100 each as 
collateral security. On 31st March 2024 the company defaulted on repayment of the 
principal amount of this loan consequently on 1
st
 April 2024 the land and building were 
taken over and sold by the bank for ?70,00,000. For the balance amount debentures 
were sold in the market on 1st May 2024. From which date would the interest on 
debentures become payable by the company? 
A. 1st April 2019.  
B. 31st March 2024.  
C. 1st April 2024.  
D. 1st May 2024. 
1 
8. Rama, a partner took over Machinery of ? 50,000 in full settlement of her Loan of ? 
60,000. Machinery was already transferred to Realisation Account. 
How it will effect the Realisation Account?  
A. Realisation Account will be 
credited by ? 60,000  
B. Realisation Account will be 
credited by ? 10,000 
C. Realisation Account will be 
credited by ? 50,000 
D. No effect on Realisation Account 
 
                                                                           OR 
  
Dada, Yuvi and Viru were partners sharing profits and losses in the ratio 3:2:1. Their 
1 
Page 4


SAMPLE QUESTION PAPER 2024 – 25 
SUBJECT:- ACCOUNTANCY 055 
CLASS XII 
TIME 3 HOURS                                                                                                                              MAX. MARKS 80 
GENERAL INSTRUCTIONS: 
1. This question paper contains 34 questions. All questions are compulsory. 
2. This question paper is divided into two parts, Part A and B. 
3. Part - A is compulsory for all candidates.  
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. 
Students must attempt only one of the given options.  
5. Question 1 to 16 and   27 to 30 carries 1 mark each. 
6. Questions 17 to 20, 31and 32 carries 3 marks each. 
7. Questions from 21 ,22 and 33 carries 4 marks each 
8. Questions from 23 to 26 and 34 carries 6 marks each  
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 
questions of three marks, 1 question of four marks and 2 questions of six marks.  
PART A 
(Accounting for Partnership Firms and Companies) 
 
S.No. Question Marks 
Part A :- Accounting for Partnership Firms and Companies  
1.  Anthony a partner was being guaranteed that his share of profits will not be less than ? 
60,000 p.a. Deficiency, if any was to be borne by other partners Amar and Akbar 
equally. For the year ended 31st March, 2024 the firm incurred loss of ? 1,80,000. 
What amount will be debited to Amar’s Capital Account in total at the end of the year? 
A. ? 60,000 
B. ? 1,20,000 
C. ? 90,000 
D. ? 80,000 
1 
2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. 
Reasoning: In case of Fixed capitals all the transactions other than Capital are done 
through Current account of the partner. 
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 
D. A is false but R is true 
1 
3. Forfeiture of shares leads to reduction of _________________Capital. 
A. Authorised 
B. Issued 
C. Subscribed 
D. Called up                                                       
1 
OR 
Moon ltd. issued 40,000, 10% debentures of ?100 each at certain rate of discount and 
were to be redeemed at20% premium. Exiting balance of Securities premium before 
issuing of these debentures was ?12,00,000 and after writing off loss on issue of 
debentures , the balance in Securities Premium was ?2,00,000. At what rate of discount 
these debentures were issued? 
A. 10% 
B. 5% 
C. 25% 
D. 15% 
4. At the time of admission of new partner Vasu, Old partners Paresh and Prabhav had 
debtors of ? 6,20,000 and a provision for doubtful debts (PDD) of ? 20,000 in their 
books. As per terms of admission, assets were revalued, and it was found that debtors 
worth ? 15,000 had turned bad and hence should be written off. Which journal entry 
reflects the correct accounting treatment of the above situation?  
A.  Bad Debts A/c Dr. 
    To Debtors A/c 
Prov for D. debts  A/c Dr. 
    To Bad Debts A/c 
15,000 
 
15,000 
 
15,000 
 
15,000 
 
B.  Bad Debts A/c Dr. 
    To Debtors A/c 
Revaluation A/c Dr. 
    To Prov for doubt debtsA/c 
15,000 
 
15,000 
 
 
15,000 
 
15,000 
 
C.  Revaluation A/c Dr. 
    To Debtors A/c 
15,000  
15,000 
 
D.  Bad Debts A/c Dr. 
    To Revaluation A/c 
15,000  
15,000 
 
OR 
 
Ram and Shyam were partners sharing profits and losses in the ratio of 3:2. Their 
balance sheet shows building at ? 1,60,000. They admitted Mohan as a new partner for 
1/4th share. In additional information it is given that building is undervalued by 20%. 
The share of loss/gain of revaluation of Shyam is ____________ & current value of 
building shown in new balance sheet is _______.   
A. Gain ? 12,800, Value? 1,92,000 B. Loss ? 12,800, Value? 1,28,000 
C. Gain ? 16,000, Value? 2,00,000 D. Gain ? 40,000, Value? 2,00,000 
 
1 
5. The profit earned by a firm after retaining ? 15,000 to its reserve was ? 75,000. The 
firm had total tangible assets worth ? 10,00,000 and outside liabilities ? 3,00,000. The 
value of the goodwill as per capitalization of average profit method was valued as ? 
50,000. Determine the rate of Normal Rate of Return. 
A. 10 % 
B. 5 % 
1 
C. 12 % 
D. 8 %  
6. Mohit had applied for 900 shares, and was allotted in the ratio 3 : 2. He had paid 
application money of ? 3 per share and couldn’t pay allotment money of ? 5 per share. 
First and Final call of ? 2 per share was not yet made by the company. His shares were 
forfeited. The following entry will be passed 
 
    Share Capital A/c Dr.                    X 
         To Share Forfeited A/c                        Y  
         To Share Allotment A/c                       Z 
  
Here X, Y and Z are: 
 
A. ? 6,000; ? 2,700; ? 3,300 B. ? 4,800; ? 2,700; ? 2,100 
C. ? 4,800; ? 1,800; ? 3,000 D. ? 6,000; ? 1,800; ? 4,200 
 
Or 
 
A company forfeited 6,000 shares of ? 10 each, on which only application money of ? 3 
has been paid. 4,000 of these shares were re-issued at ? 12 per share as fully paid up. 
Amount of Capital Reserve will be _______. 
 
A. ? 18,000 B. ? 12,000 
C. ? 30,000 D. ? 24,000 
 
1 
7. On 1st April 2019 a company took a loan of ?80,00,000 on security of land and building. 
This loan was further secured by issue of 40,000, 12% Debentures of ?100 each as 
collateral security. On 31st March 2024 the company defaulted on repayment of the 
principal amount of this loan consequently on 1
st
 April 2024 the land and building were 
taken over and sold by the bank for ?70,00,000. For the balance amount debentures 
were sold in the market on 1st May 2024. From which date would the interest on 
debentures become payable by the company? 
A. 1st April 2019.  
B. 31st March 2024.  
C. 1st April 2024.  
D. 1st May 2024. 
1 
8. Rama, a partner took over Machinery of ? 50,000 in full settlement of her Loan of ? 
60,000. Machinery was already transferred to Realisation Account. 
How it will effect the Realisation Account?  
A. Realisation Account will be 
credited by ? 60,000  
B. Realisation Account will be 
credited by ? 10,000 
C. Realisation Account will be 
credited by ? 50,000 
D. No effect on Realisation Account 
 
                                                                           OR 
  
Dada, Yuvi and Viru were partners sharing profits and losses in the ratio 3:2:1. Their 
1 
books showed Workmen Compensation Reserve of ? 1,00,000. Workmen Claim 
amounted to ? 60,000. How it will affect the books of Accounts at the time of 
dissolution of firm?   
A. Only ? 40,000 will be distributed amongst partner’s capital account 
B. ? 1,00,000 will be credited to Realisation Account and ? 60,000 will be paid 
off. 
C. ? 60,000 will be credited to Realisation Account and will be even paid off. 
Balance ? 40,000 will be distributed amongst partners. 
D. Only ? 60,000 will be credited to Realisation Account and will be even paid off 
 
9. Ikka, Dukka and Teeka were partners sharing profits and losses in the ratio of 2:2:1. 
Their fixed Capital balances were ? 5,00,000; ? 4,00,000 and ? 3,00,000 respectively. 
For the year ended March 31, 2024 profits of ? 84,000 were distributed without 
providing for Interest on Capital @ 10% p.a as per the partnership deed.  
While passing an adjustment entry, which of the following is correct? 
A. Teeka will be debited by ? 4,200  
B. Teeka will be credited by ? 4,200 
C. Teeka will be credited by ? 6,000 
D. Teeka will be debited by ? 6,000 
 
1 
10. At the time of dissolution Machinery appears at ? 10,00,000 and accumulated 
depreciation for the machinery appears at ? 6,00,000 in the balance sheet of a firm. 
This machine is taken over by a creditor of ? 5,40,000 at 5% below the net value. The 
balance amount of the creditor was paid through bank. By what amount should the 
bank account be credited for this transaction? 
A. ? 60,000. 
B. ? 1,60,000. 
C. ? 5,40,000. 
D. ? 4,00,000. 
1 
11. Rahul, Samarth and Ayaan were partners sharing profits and losses in the ratio of 5:4:3. 
Ayaan’s fixed Capital balance as on March 31, 2024 was ? 2,70,000. Which of the 
following items would have affected this Capital balance?  
A. Profit/Loss for the year B. Additional Capital introduced 
C. Reduction in Capital due to 
Capital Adjustment 
D. Both B and C 
 
1 
12. Shares issued as sweat equity can be  
(I) Issued at par.  
(ii) Issued at discount.  
(iii) Issued at a premium.  
Which of the following is correct? 
 
A. Only (i) is correct. 
B. Both (i) and (iii) are correct.  
C. All are correct.  
D. Only (ii) is correct. 
1 
13. 2,000 shares allotted to Ms. Regal, on which ? 80 each called up and ? 50 paid were 
forfeited and reissued for ? 70 each as ? 90 paid up. Amount transferred to capital 
1 
Page 5


SAMPLE QUESTION PAPER 2024 – 25 
SUBJECT:- ACCOUNTANCY 055 
CLASS XII 
TIME 3 HOURS                                                                                                                              MAX. MARKS 80 
GENERAL INSTRUCTIONS: 
1. This question paper contains 34 questions. All questions are compulsory. 
2. This question paper is divided into two parts, Part A and B. 
3. Part - A is compulsory for all candidates.  
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. 
Students must attempt only one of the given options.  
5. Question 1 to 16 and   27 to 30 carries 1 mark each. 
6. Questions 17 to 20, 31and 32 carries 3 marks each. 
7. Questions from 21 ,22 and 33 carries 4 marks each 
8. Questions from 23 to 26 and 34 carries 6 marks each  
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 
questions of three marks, 1 question of four marks and 2 questions of six marks.  
PART A 
(Accounting for Partnership Firms and Companies) 
 
S.No. Question Marks 
Part A :- Accounting for Partnership Firms and Companies  
1.  Anthony a partner was being guaranteed that his share of profits will not be less than ? 
60,000 p.a. Deficiency, if any was to be borne by other partners Amar and Akbar 
equally. For the year ended 31st March, 2024 the firm incurred loss of ? 1,80,000. 
What amount will be debited to Amar’s Capital Account in total at the end of the year? 
A. ? 60,000 
B. ? 1,20,000 
C. ? 90,000 
D. ? 80,000 
1 
2. Assertion: Partner’s current accounts are opened when their capital are fluctuating. 
Reasoning: In case of Fixed capitals all the transactions other than Capital are done 
through Current account of the partner. 
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 
D. A is false but R is true 
1 
3. Forfeiture of shares leads to reduction of _________________Capital. 
A. Authorised 
B. Issued 
C. Subscribed 
D. Called up                                                       
1 
OR 
Moon ltd. issued 40,000, 10% debentures of ?100 each at certain rate of discount and 
were to be redeemed at20% premium. Exiting balance of Securities premium before 
issuing of these debentures was ?12,00,000 and after writing off loss on issue of 
debentures , the balance in Securities Premium was ?2,00,000. At what rate of discount 
these debentures were issued? 
A. 10% 
B. 5% 
C. 25% 
D. 15% 
4. At the time of admission of new partner Vasu, Old partners Paresh and Prabhav had 
debtors of ? 6,20,000 and a provision for doubtful debts (PDD) of ? 20,000 in their 
books. As per terms of admission, assets were revalued, and it was found that debtors 
worth ? 15,000 had turned bad and hence should be written off. Which journal entry 
reflects the correct accounting treatment of the above situation?  
A.  Bad Debts A/c Dr. 
    To Debtors A/c 
Prov for D. debts  A/c Dr. 
    To Bad Debts A/c 
15,000 
 
15,000 
 
15,000 
 
15,000 
 
B.  Bad Debts A/c Dr. 
    To Debtors A/c 
Revaluation A/c Dr. 
    To Prov for doubt debtsA/c 
15,000 
 
15,000 
 
 
15,000 
 
15,000 
 
C.  Revaluation A/c Dr. 
    To Debtors A/c 
15,000  
15,000 
 
D.  Bad Debts A/c Dr. 
    To Revaluation A/c 
15,000  
15,000 
 
OR 
 
Ram and Shyam were partners sharing profits and losses in the ratio of 3:2. Their 
balance sheet shows building at ? 1,60,000. They admitted Mohan as a new partner for 
1/4th share. In additional information it is given that building is undervalued by 20%. 
The share of loss/gain of revaluation of Shyam is ____________ & current value of 
building shown in new balance sheet is _______.   
A. Gain ? 12,800, Value? 1,92,000 B. Loss ? 12,800, Value? 1,28,000 
C. Gain ? 16,000, Value? 2,00,000 D. Gain ? 40,000, Value? 2,00,000 
 
1 
5. The profit earned by a firm after retaining ? 15,000 to its reserve was ? 75,000. The 
firm had total tangible assets worth ? 10,00,000 and outside liabilities ? 3,00,000. The 
value of the goodwill as per capitalization of average profit method was valued as ? 
50,000. Determine the rate of Normal Rate of Return. 
A. 10 % 
B. 5 % 
1 
C. 12 % 
D. 8 %  
6. Mohit had applied for 900 shares, and was allotted in the ratio 3 : 2. He had paid 
application money of ? 3 per share and couldn’t pay allotment money of ? 5 per share. 
First and Final call of ? 2 per share was not yet made by the company. His shares were 
forfeited. The following entry will be passed 
 
    Share Capital A/c Dr.                    X 
         To Share Forfeited A/c                        Y  
         To Share Allotment A/c                       Z 
  
Here X, Y and Z are: 
 
A. ? 6,000; ? 2,700; ? 3,300 B. ? 4,800; ? 2,700; ? 2,100 
C. ? 4,800; ? 1,800; ? 3,000 D. ? 6,000; ? 1,800; ? 4,200 
 
Or 
 
A company forfeited 6,000 shares of ? 10 each, on which only application money of ? 3 
has been paid. 4,000 of these shares were re-issued at ? 12 per share as fully paid up. 
Amount of Capital Reserve will be _______. 
 
A. ? 18,000 B. ? 12,000 
C. ? 30,000 D. ? 24,000 
 
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7. On 1st April 2019 a company took a loan of ?80,00,000 on security of land and building. 
This loan was further secured by issue of 40,000, 12% Debentures of ?100 each as 
collateral security. On 31st March 2024 the company defaulted on repayment of the 
principal amount of this loan consequently on 1
st
 April 2024 the land and building were 
taken over and sold by the bank for ?70,00,000. For the balance amount debentures 
were sold in the market on 1st May 2024. From which date would the interest on 
debentures become payable by the company? 
A. 1st April 2019.  
B. 31st March 2024.  
C. 1st April 2024.  
D. 1st May 2024. 
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8. Rama, a partner took over Machinery of ? 50,000 in full settlement of her Loan of ? 
60,000. Machinery was already transferred to Realisation Account. 
How it will effect the Realisation Account?  
A. Realisation Account will be 
credited by ? 60,000  
B. Realisation Account will be 
credited by ? 10,000 
C. Realisation Account will be 
credited by ? 50,000 
D. No effect on Realisation Account 
 
                                                                           OR 
  
Dada, Yuvi and Viru were partners sharing profits and losses in the ratio 3:2:1. Their 
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books showed Workmen Compensation Reserve of ? 1,00,000. Workmen Claim 
amounted to ? 60,000. How it will affect the books of Accounts at the time of 
dissolution of firm?   
A. Only ? 40,000 will be distributed amongst partner’s capital account 
B. ? 1,00,000 will be credited to Realisation Account and ? 60,000 will be paid 
off. 
C. ? 60,000 will be credited to Realisation Account and will be even paid off. 
Balance ? 40,000 will be distributed amongst partners. 
D. Only ? 60,000 will be credited to Realisation Account and will be even paid off 
 
9. Ikka, Dukka and Teeka were partners sharing profits and losses in the ratio of 2:2:1. 
Their fixed Capital balances were ? 5,00,000; ? 4,00,000 and ? 3,00,000 respectively. 
For the year ended March 31, 2024 profits of ? 84,000 were distributed without 
providing for Interest on Capital @ 10% p.a as per the partnership deed.  
While passing an adjustment entry, which of the following is correct? 
A. Teeka will be debited by ? 4,200  
B. Teeka will be credited by ? 4,200 
C. Teeka will be credited by ? 6,000 
D. Teeka will be debited by ? 6,000 
 
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10. At the time of dissolution Machinery appears at ? 10,00,000 and accumulated 
depreciation for the machinery appears at ? 6,00,000 in the balance sheet of a firm. 
This machine is taken over by a creditor of ? 5,40,000 at 5% below the net value. The 
balance amount of the creditor was paid through bank. By what amount should the 
bank account be credited for this transaction? 
A. ? 60,000. 
B. ? 1,60,000. 
C. ? 5,40,000. 
D. ? 4,00,000. 
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11. Rahul, Samarth and Ayaan were partners sharing profits and losses in the ratio of 5:4:3. 
Ayaan’s fixed Capital balance as on March 31, 2024 was ? 2,70,000. Which of the 
following items would have affected this Capital balance?  
A. Profit/Loss for the year B. Additional Capital introduced 
C. Reduction in Capital due to 
Capital Adjustment 
D. Both B and C 
 
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12. Shares issued as sweat equity can be  
(I) Issued at par.  
(ii) Issued at discount.  
(iii) Issued at a premium.  
Which of the following is correct? 
 
A. Only (i) is correct. 
B. Both (i) and (iii) are correct.  
C. All are correct.  
D. Only (ii) is correct. 
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13. 2,000 shares allotted to Ms. Regal, on which ? 80 each called up and ? 50 paid were 
forfeited and reissued for ? 70 each as ? 90 paid up. Amount transferred to capital 
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reserve A/c is  
A. ? 1,00,000 B. ? 60,000 
C. ? 40,000 D. ? 20,000 
 
14. Joey, Sam and Tex were partners sharing profits and losses in the ratio 5:3:2. W.e.f 01 
April, 2024 they decided to share future profits and losses in the ratio 2:1:1. For which 
of the following balances Tex will be credited at the time of reconstitution of firm, if 
the firm decided to continue with available accumulated profits and losses balances.  
A. General Reserve ? 2,00,000 
and Profit and Loss (Dr.) ? 
1,20,000 
B. General Reserve ? 2,00,000 
and Profit and Loss (Cr.) ? 
2,50,000 
C. Deferred Revenue Expenditure 
? 50,000 and Profit and Loss 
(Cr.) ? 80,000 
D. Deferred Revenue Expenditure 
? 50,000 and Profit and Loss 
(Dr.) ? 80,000 
 
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15. Rohit, Virat and Shikhar were partners sharing profits and losses in the ratio 3:1:1. 
Their Capital balance as on March 31, 2024 was ? 3,00,000; ? 2,70,000 and ? 2,50,000 
respectively. On the same date, they admitted Hardik as a new partner for 20% share. 
Hardik was to bring ? 80,000 for his share of goodwill and 1/5 of the combined capital 
of all the partners of new firm. What will be the amount of capital brought in by Hardik 
on his admission as a new partner?   
A. ? 2,25,000 B. ? 1,80,000 
C. ? 2,60,000 D. ? 3,05,000 
 
                                                                 OR  
 
A, B and C were partners sharing profits and losses equally. B died on 31 August, 2023 
and total amount transferred to B’s executors was ? 13,20,000. B’s executors were 
being paid ? 1,20,000 immediately and balance was to be paid in four equal semi-
annual instalments together with interest @ 10% p.a.  Total amount of interest to be 
credited to B’s executors Account for the year ended March 31, 2024 will be? 
A. ? 70,000 B. ? 67,500 
C. ? 60,000 D. ? 77,000 
 
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16. String and Kite were partners sharing profits and losses in the ratio 5:3. They admitted 
spinner as a new partner. String sacrificed ¼ from his share and Kite sacrificed 1/6 of 
his share. What will be the new ratio?  
A. 6:5:5 B. 9:5:10 
C. 15:10:7 D. 35:21:40 
 
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17. Rusting, a partner of a firm under dissolution was to get a remuneration 2% of the total 
assets realised other than cash and 10% of the amount distributed to the partners. 
Sundry assets (including Cash ? 8,000) realised at ? 1,16,000 and sundry liabilities to be 
paid ? 31,340. Calculate Rustings’s remuneration and Show your workings clearly. Also 
pass necessary journal entry for remuneration. 
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 18. A, B and C were partners sharing profits, and losses in the ratio of 2:2:1. C died on 1st 
July, 2023 on which date the capitals of A, B and C after all necessary adjustments 
stood at  ?74,000, ? 63,750 and 42,250 respectively. A and B continued to carry on the 
business for six months without settling the accounts of C. During the period of six 
months from 1 -7-2023, a profit of ? 20,500 is earned using the firm’s property. State 
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