ICSE Accountancy Sample Paper with Solutions - 2025 | ICSE Commerce Class 12 Sample Papers PDF Download

 Page 1


 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
1                                        
 
 
 
ACCOUNTS 
___________________________________________________________________ 
Maximum Marks: 80 
Time Allowed: Three Hours 
Reading Time: Additional 15 Minutes  
___________________________________________________________________ 
 
Instructions to Candidates 
? You are allowed an additional 15 minutes for only reading the paper. 
? You must NOT start writing during reading time. 
? The question paper has 17 printed pages. 
? The Question Paper is divided into three sections and has 18 questions in all. 
? Section A is compulsory and has ten questions. 
? You are required to attempt all questions either from Section B or Section C. 
? Section B and Section C have four questions each. 
? Internal choices have been provided in five questions in Section A and in                      
two questions in Section B and Section C. 
? While attempting Multiple Choice Questions in Sections A, B and C, you are 
required to write only ONE option as the answer. 
? The intended marks for questions or parts of questions are given in the brackets []. 
? All calculations should be shown clearly. 
? All workings, including rough work, should be done on the same page as, and 
adjacent to, the rest of the answer. 
Instruction to Supervising Examiner  
? Kindly read aloud the instructions given above to all the candidates present in 
the examination hall. 
 
 
 
Page 2


 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
1                                        
 
 
 
ACCOUNTS 
___________________________________________________________________ 
Maximum Marks: 80 
Time Allowed: Three Hours 
Reading Time: Additional 15 Minutes  
___________________________________________________________________ 
 
Instructions to Candidates 
? You are allowed an additional 15 minutes for only reading the paper. 
? You must NOT start writing during reading time. 
? The question paper has 17 printed pages. 
? The Question Paper is divided into three sections and has 18 questions in all. 
? Section A is compulsory and has ten questions. 
? You are required to attempt all questions either from Section B or Section C. 
? Section B and Section C have four questions each. 
? Internal choices have been provided in five questions in Section A and in                      
two questions in Section B and Section C. 
? While attempting Multiple Choice Questions in Sections A, B and C, you are 
required to write only ONE option as the answer. 
? The intended marks for questions or parts of questions are given in the brackets []. 
? All calculations should be shown clearly. 
? All workings, including rough work, should be done on the same page as, and 
adjacent to, the rest of the answer. 
Instruction to Supervising Examiner  
? Kindly read aloud the instructions given above to all the candidates present in 
the examination hall. 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
2                                        
 
SECTION A (60 Marks) 
Answer all questions. 
Question 1  
In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions 
as instructed.  
 
(i) The commission due to a partner is closed by:                                 (Understanding)  [1] 
 (a) Debiting it to Partner’s Capital A/c  
 (b) Crediting it to Partner’s Capital A/c  
 (c) Debiting it to P/L Appropriation A/c  
 (d) Crediting it to P/L Appropriation A/c  
(ii) On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all 
adjustments, were ? 50,000 and ? 40,000. Their capitals before Adil’s admission were     
? 45,000 and ? 48,000.  
The capital account of the partner having surplus capital was adjusted through his 
current account by passing the journal entry:                                          (Application) 
[1] 
 
 (a) Debit Rohan’s Capital A/c ? 5,000; Credit Rohan’s Current A/c ? 5,000  
 (b) Debit Pavan’s Capital A/c ? 8,000; Credit Pavan’s Current A/c ? 8,000  
 (c) Debit Rohan’s Current A/c ? 5,000; Credit Rohan’s Capital A/c ? 5,000  
 (d) Debit Pavan’s Current A/c ? 8,000; Credit Pavan’s Capital A/c ? 8,000  
(iii) Choose the components required to calculate goodwill of a firm by Capitalisation of 
Average Profits Method.                                                                                        (Recall) 
[1] 
 P The normal profits of a similar firm in the industry  
 Q The average profits of the firm  
 R The number of years’ purchase  
 S The actual capital employed in the business  
  (a) P, Q, R 
 
  (b) Q, R, S 
 
  (c) P, Q, S 
 
  (d) P, R, S 
 
 
 
 
 
Page 3


 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
1                                        
 
 
 
ACCOUNTS 
___________________________________________________________________ 
Maximum Marks: 80 
Time Allowed: Three Hours 
Reading Time: Additional 15 Minutes  
___________________________________________________________________ 
 
Instructions to Candidates 
? You are allowed an additional 15 minutes for only reading the paper. 
? You must NOT start writing during reading time. 
? The question paper has 17 printed pages. 
? The Question Paper is divided into three sections and has 18 questions in all. 
? Section A is compulsory and has ten questions. 
? You are required to attempt all questions either from Section B or Section C. 
? Section B and Section C have four questions each. 
? Internal choices have been provided in five questions in Section A and in                      
two questions in Section B and Section C. 
? While attempting Multiple Choice Questions in Sections A, B and C, you are 
required to write only ONE option as the answer. 
? The intended marks for questions or parts of questions are given in the brackets []. 
? All calculations should be shown clearly. 
? All workings, including rough work, should be done on the same page as, and 
adjacent to, the rest of the answer. 
Instruction to Supervising Examiner  
? Kindly read aloud the instructions given above to all the candidates present in 
the examination hall. 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
2                                        
 
SECTION A (60 Marks) 
Answer all questions. 
Question 1  
In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions 
as instructed.  
 
(i) The commission due to a partner is closed by:                                 (Understanding)  [1] 
 (a) Debiting it to Partner’s Capital A/c  
 (b) Crediting it to Partner’s Capital A/c  
 (c) Debiting it to P/L Appropriation A/c  
 (d) Crediting it to P/L Appropriation A/c  
(ii) On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all 
adjustments, were ? 50,000 and ? 40,000. Their capitals before Adil’s admission were     
? 45,000 and ? 48,000.  
The capital account of the partner having surplus capital was adjusted through his 
current account by passing the journal entry:                                          (Application) 
[1] 
 
 (a) Debit Rohan’s Capital A/c ? 5,000; Credit Rohan’s Current A/c ? 5,000  
 (b) Debit Pavan’s Capital A/c ? 8,000; Credit Pavan’s Current A/c ? 8,000  
 (c) Debit Rohan’s Current A/c ? 5,000; Credit Rohan’s Capital A/c ? 5,000  
 (d) Debit Pavan’s Current A/c ? 8,000; Credit Pavan’s Capital A/c ? 8,000  
(iii) Choose the components required to calculate goodwill of a firm by Capitalisation of 
Average Profits Method.                                                                                        (Recall) 
[1] 
 P The normal profits of a similar firm in the industry  
 Q The average profits of the firm  
 R The number of years’ purchase  
 S The actual capital employed in the business  
  (a) P, Q, R 
 
  (b) Q, R, S 
 
  (c) P, Q, S 
 
  (d) P, R, S 
 
 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
3                                        
 
(iv) Given below is a fictitious scenario. Read the information and answer the question 
that follows: 
Bhim International Ltd., in order to raise additional funds for expansion purpose, took 
a loan of ? 10,00,000 at a rate of 12% per annum from NZ Bank on 1
st
 July, 2023, 
against which it offered ? 15,00,000, 8% Debentures of ? 100 each as a collateral 
security.  
Calculate the finance cost to the company for the year 2023-24. 
(Application) 
[1] 
 (a) ? 1,20,000  
 (b) ? 2,40,000  
 (c) ? 90,000  
 (d) ? 1,80,000  
(v) Ira (a partner in a firm) was allowed to retain the whole of the stock as her 
remuneration for services rendered by her in the course of dissolution of the firm. The 
value of stock was ? 10,000 which had been transferred to the Realisation Account.  
Complying with the accounting principle of full disclosure, record the above 
transaction in the books of the partnership firm at the time of its dissolution.   
(Application) 
[1] 
 
 
 
(vi) Aman and Vinod are partners in a firm. Their Balance Sheet showed: 
Gross Debtors: ? 1,52,000 
Provision for doubtful debts: ? 1,000  
On Milin’s admission as a new partner, the assets and liabilities are to be revalued as: 
• Unaccounted accrued income of ? 10,000 to be provided for 
• Bills Payable of ? 10,000 which were recorded, to be discharged at a rebate of 
10% 
• Debtors of ? 2,000 to be irrecoverable 
• Provision for doubtful debts to be provided @ 2% of the debtors 
What is the net effect of revaluation of assets and liabilities?           (Application)     
[1] 
(vii) Assertion: A company can reissue a forfeited share at an amount which is less than 
the amount not received on it.  
[1] 
 Reason: A company can write off the net loss made on the reissue of a forfeited share 
from its capital reserve. 
 
 Which one of the following is correct?  
 (a) Both Assertion and Reason are true and Reason is the correct explanation for 
Assertion. 
 
 (b) Both Assertion and Reason are true but Reason is not the correct explanation 
for Assertion. 
 
 (c) Assertion is false and Reason is true.  
 (d) Both Assertion and Reason are false.                                                 (Evaluate)  
(viii) Mention the liability of a partnership firm which is not shown in its Balance Sheet, 
but is paid off at the time of the dissolution of the firm.                              (Understanding) 
[1] 
Page 4


 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
1                                        
 
 
 
ACCOUNTS 
___________________________________________________________________ 
Maximum Marks: 80 
Time Allowed: Three Hours 
Reading Time: Additional 15 Minutes  
___________________________________________________________________ 
 
Instructions to Candidates 
? You are allowed an additional 15 minutes for only reading the paper. 
? You must NOT start writing during reading time. 
? The question paper has 17 printed pages. 
? The Question Paper is divided into three sections and has 18 questions in all. 
? Section A is compulsory and has ten questions. 
? You are required to attempt all questions either from Section B or Section C. 
? Section B and Section C have four questions each. 
? Internal choices have been provided in five questions in Section A and in                      
two questions in Section B and Section C. 
? While attempting Multiple Choice Questions in Sections A, B and C, you are 
required to write only ONE option as the answer. 
? The intended marks for questions or parts of questions are given in the brackets []. 
? All calculations should be shown clearly. 
? All workings, including rough work, should be done on the same page as, and 
adjacent to, the rest of the answer. 
Instruction to Supervising Examiner  
? Kindly read aloud the instructions given above to all the candidates present in 
the examination hall. 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
2                                        
 
SECTION A (60 Marks) 
Answer all questions. 
Question 1  
In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions 
as instructed.  
 
(i) The commission due to a partner is closed by:                                 (Understanding)  [1] 
 (a) Debiting it to Partner’s Capital A/c  
 (b) Crediting it to Partner’s Capital A/c  
 (c) Debiting it to P/L Appropriation A/c  
 (d) Crediting it to P/L Appropriation A/c  
(ii) On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all 
adjustments, were ? 50,000 and ? 40,000. Their capitals before Adil’s admission were     
? 45,000 and ? 48,000.  
The capital account of the partner having surplus capital was adjusted through his 
current account by passing the journal entry:                                          (Application) 
[1] 
 
 (a) Debit Rohan’s Capital A/c ? 5,000; Credit Rohan’s Current A/c ? 5,000  
 (b) Debit Pavan’s Capital A/c ? 8,000; Credit Pavan’s Current A/c ? 8,000  
 (c) Debit Rohan’s Current A/c ? 5,000; Credit Rohan’s Capital A/c ? 5,000  
 (d) Debit Pavan’s Current A/c ? 8,000; Credit Pavan’s Capital A/c ? 8,000  
(iii) Choose the components required to calculate goodwill of a firm by Capitalisation of 
Average Profits Method.                                                                                        (Recall) 
[1] 
 P The normal profits of a similar firm in the industry  
 Q The average profits of the firm  
 R The number of years’ purchase  
 S The actual capital employed in the business  
  (a) P, Q, R 
 
  (b) Q, R, S 
 
  (c) P, Q, S 
 
  (d) P, R, S 
 
 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
3                                        
 
(iv) Given below is a fictitious scenario. Read the information and answer the question 
that follows: 
Bhim International Ltd., in order to raise additional funds for expansion purpose, took 
a loan of ? 10,00,000 at a rate of 12% per annum from NZ Bank on 1
st
 July, 2023, 
against which it offered ? 15,00,000, 8% Debentures of ? 100 each as a collateral 
security.  
Calculate the finance cost to the company for the year 2023-24. 
(Application) 
[1] 
 (a) ? 1,20,000  
 (b) ? 2,40,000  
 (c) ? 90,000  
 (d) ? 1,80,000  
(v) Ira (a partner in a firm) was allowed to retain the whole of the stock as her 
remuneration for services rendered by her in the course of dissolution of the firm. The 
value of stock was ? 10,000 which had been transferred to the Realisation Account.  
Complying with the accounting principle of full disclosure, record the above 
transaction in the books of the partnership firm at the time of its dissolution.   
(Application) 
[1] 
 
 
 
(vi) Aman and Vinod are partners in a firm. Their Balance Sheet showed: 
Gross Debtors: ? 1,52,000 
Provision for doubtful debts: ? 1,000  
On Milin’s admission as a new partner, the assets and liabilities are to be revalued as: 
• Unaccounted accrued income of ? 10,000 to be provided for 
• Bills Payable of ? 10,000 which were recorded, to be discharged at a rebate of 
10% 
• Debtors of ? 2,000 to be irrecoverable 
• Provision for doubtful debts to be provided @ 2% of the debtors 
What is the net effect of revaluation of assets and liabilities?           (Application)     
[1] 
(vii) Assertion: A company can reissue a forfeited share at an amount which is less than 
the amount not received on it.  
[1] 
 Reason: A company can write off the net loss made on the reissue of a forfeited share 
from its capital reserve. 
 
 Which one of the following is correct?  
 (a) Both Assertion and Reason are true and Reason is the correct explanation for 
Assertion. 
 
 (b) Both Assertion and Reason are true but Reason is not the correct explanation 
for Assertion. 
 
 (c) Assertion is false and Reason is true.  
 (d) Both Assertion and Reason are false.                                                 (Evaluate)  
(viii) Mention the liability of a partnership firm which is not shown in its Balance Sheet, 
but is paid off at the time of the dissolution of the firm.                              (Understanding) 
[1] 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
4                                        
 
(ix) The Adani family has raised their stake in Ambuja Cements by the conversion of                
21·20 crore warrants into shares in a transaction that will see them infusing nearly                      
? 6,661 crore. 
(Source: The Telegraph, Kolkata, 29 March, 2024)                                        (Recall) 
[1] 
 (a) What is a share warrant?  
 (b) Mention the head under which Money received against Share Warrants is 
shown in the Balance Sheet of a company prepared as per Schedule III of the 
Companies Act, 2013. 
 
(x) On 1
st
 April, 2023, Zara Ltd. issued 10,000, 6% Debentures of ? 100 each at a discount 
of 5%. On 31
st
 March, 2024, the company had ? 40,000 in its Capital Reserve A/c and   
? 30,000 as balance of Securities Premium.  
Give the journal entry to write off the discount on issue of issue of debentures on                         
31
st
 March, 2024.                                                                                      (Application) 
[1] 
 
 
 
Question 2 [3] 
Mita, Sita and Rita are partners in a firm. Rita retires from the firm on 31
st
 March, 2024.  
Her claim, including her capital and her share of goodwill, is determined at ? 2,50,000.  
On this date the firm’s books showed:  
(a) An unrecorded investment valued at ? 60,000 which was given to an unrecorded 
creditor of ? 1,16,000 in settlement of his claim of ? 70,000. 
(b) An unrecorded vehicle which was given to Rita at the market value of ? 46,000 in part 
settlement of her claim.  
            The balance of Rita’s claim was discharged by cheque. 
You are required to pass journal entries to record the above transactions in the books 
of the firm on 31
st
 March, 2024.                                                                               (Application) 
 
OR  
Akshat, Javed and Gaurav are partners in a firm sharing profits in the ratio of 5:3:7.  
Akshat died on 31
st
 March, 2024.  
Javed and Gaurav decided to share the profits in reconstituted firm in the ratio 2:3. 
The capital accounts of the partners on 31
st
 March, 2024, before considering the firm’s 
goodwill were: 
Akshat     ? 1,66,000  
Javed       ? 66,000 
Gaurav    ? 1,41,000 
After considering the adjustment for goodwill, Akshat’s share was determined to be                               
? 1,81,000. It was decided that this amount would be paid to Akshat’s executor immediately 
by the firm through a cheque, the amount being contributed by Javed and Gaurav in such a 
manner that their capitals would become proportionate to their new profit-sharing ratio. 
 
You are required to pass journal entries to record:  
(i) 
The adjustment for self-generated goodwill of the firm.  
 
(ii) 
Cash brought in by Javed and Gaurav to pay off Akshat’s executor. 
 
(iii) 
Payment made to Akshat’s executor.                                                     (Application)  
 
 
 
Page 5


 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
1                                        
 
 
 
ACCOUNTS 
___________________________________________________________________ 
Maximum Marks: 80 
Time Allowed: Three Hours 
Reading Time: Additional 15 Minutes  
___________________________________________________________________ 
 
Instructions to Candidates 
? You are allowed an additional 15 minutes for only reading the paper. 
? You must NOT start writing during reading time. 
? The question paper has 17 printed pages. 
? The Question Paper is divided into three sections and has 18 questions in all. 
? Section A is compulsory and has ten questions. 
? You are required to attempt all questions either from Section B or Section C. 
? Section B and Section C have four questions each. 
? Internal choices have been provided in five questions in Section A and in                      
two questions in Section B and Section C. 
? While attempting Multiple Choice Questions in Sections A, B and C, you are 
required to write only ONE option as the answer. 
? The intended marks for questions or parts of questions are given in the brackets []. 
? All calculations should be shown clearly. 
? All workings, including rough work, should be done on the same page as, and 
adjacent to, the rest of the answer. 
Instruction to Supervising Examiner  
? Kindly read aloud the instructions given above to all the candidates present in 
the examination hall. 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
2                                        
 
SECTION A (60 Marks) 
Answer all questions. 
Question 1  
In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions 
as instructed.  
 
(i) The commission due to a partner is closed by:                                 (Understanding)  [1] 
 (a) Debiting it to Partner’s Capital A/c  
 (b) Crediting it to Partner’s Capital A/c  
 (c) Debiting it to P/L Appropriation A/c  
 (d) Crediting it to P/L Appropriation A/c  
(ii) On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all 
adjustments, were ? 50,000 and ? 40,000. Their capitals before Adil’s admission were     
? 45,000 and ? 48,000.  
The capital account of the partner having surplus capital was adjusted through his 
current account by passing the journal entry:                                          (Application) 
[1] 
 
 (a) Debit Rohan’s Capital A/c ? 5,000; Credit Rohan’s Current A/c ? 5,000  
 (b) Debit Pavan’s Capital A/c ? 8,000; Credit Pavan’s Current A/c ? 8,000  
 (c) Debit Rohan’s Current A/c ? 5,000; Credit Rohan’s Capital A/c ? 5,000  
 (d) Debit Pavan’s Current A/c ? 8,000; Credit Pavan’s Capital A/c ? 8,000  
(iii) Choose the components required to calculate goodwill of a firm by Capitalisation of 
Average Profits Method.                                                                                        (Recall) 
[1] 
 P The normal profits of a similar firm in the industry  
 Q The average profits of the firm  
 R The number of years’ purchase  
 S The actual capital employed in the business  
  (a) P, Q, R 
 
  (b) Q, R, S 
 
  (c) P, Q, S 
 
  (d) P, R, S 
 
 
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
3                                        
 
(iv) Given below is a fictitious scenario. Read the information and answer the question 
that follows: 
Bhim International Ltd., in order to raise additional funds for expansion purpose, took 
a loan of ? 10,00,000 at a rate of 12% per annum from NZ Bank on 1
st
 July, 2023, 
against which it offered ? 15,00,000, 8% Debentures of ? 100 each as a collateral 
security.  
Calculate the finance cost to the company for the year 2023-24. 
(Application) 
[1] 
 (a) ? 1,20,000  
 (b) ? 2,40,000  
 (c) ? 90,000  
 (d) ? 1,80,000  
(v) Ira (a partner in a firm) was allowed to retain the whole of the stock as her 
remuneration for services rendered by her in the course of dissolution of the firm. The 
value of stock was ? 10,000 which had been transferred to the Realisation Account.  
Complying with the accounting principle of full disclosure, record the above 
transaction in the books of the partnership firm at the time of its dissolution.   
(Application) 
[1] 
 
 
 
(vi) Aman and Vinod are partners in a firm. Their Balance Sheet showed: 
Gross Debtors: ? 1,52,000 
Provision for doubtful debts: ? 1,000  
On Milin’s admission as a new partner, the assets and liabilities are to be revalued as: 
• Unaccounted accrued income of ? 10,000 to be provided for 
• Bills Payable of ? 10,000 which were recorded, to be discharged at a rebate of 
10% 
• Debtors of ? 2,000 to be irrecoverable 
• Provision for doubtful debts to be provided @ 2% of the debtors 
What is the net effect of revaluation of assets and liabilities?           (Application)     
[1] 
(vii) Assertion: A company can reissue a forfeited share at an amount which is less than 
the amount not received on it.  
[1] 
 Reason: A company can write off the net loss made on the reissue of a forfeited share 
from its capital reserve. 
 
 Which one of the following is correct?  
 (a) Both Assertion and Reason are true and Reason is the correct explanation for 
Assertion. 
 
 (b) Both Assertion and Reason are true but Reason is not the correct explanation 
for Assertion. 
 
 (c) Assertion is false and Reason is true.  
 (d) Both Assertion and Reason are false.                                                 (Evaluate)  
(viii) Mention the liability of a partnership firm which is not shown in its Balance Sheet, 
but is paid off at the time of the dissolution of the firm.                              (Understanding) 
[1] 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
4                                        
 
(ix) The Adani family has raised their stake in Ambuja Cements by the conversion of                
21·20 crore warrants into shares in a transaction that will see them infusing nearly                      
? 6,661 crore. 
(Source: The Telegraph, Kolkata, 29 March, 2024)                                        (Recall) 
[1] 
 (a) What is a share warrant?  
 (b) Mention the head under which Money received against Share Warrants is 
shown in the Balance Sheet of a company prepared as per Schedule III of the 
Companies Act, 2013. 
 
(x) On 1
st
 April, 2023, Zara Ltd. issued 10,000, 6% Debentures of ? 100 each at a discount 
of 5%. On 31
st
 March, 2024, the company had ? 40,000 in its Capital Reserve A/c and   
? 30,000 as balance of Securities Premium.  
Give the journal entry to write off the discount on issue of issue of debentures on                         
31
st
 March, 2024.                                                                                      (Application) 
[1] 
 
 
 
Question 2 [3] 
Mita, Sita and Rita are partners in a firm. Rita retires from the firm on 31
st
 March, 2024.  
Her claim, including her capital and her share of goodwill, is determined at ? 2,50,000.  
On this date the firm’s books showed:  
(a) An unrecorded investment valued at ? 60,000 which was given to an unrecorded 
creditor of ? 1,16,000 in settlement of his claim of ? 70,000. 
(b) An unrecorded vehicle which was given to Rita at the market value of ? 46,000 in part 
settlement of her claim.  
            The balance of Rita’s claim was discharged by cheque. 
You are required to pass journal entries to record the above transactions in the books 
of the firm on 31
st
 March, 2024.                                                                               (Application) 
 
OR  
Akshat, Javed and Gaurav are partners in a firm sharing profits in the ratio of 5:3:7.  
Akshat died on 31
st
 March, 2024.  
Javed and Gaurav decided to share the profits in reconstituted firm in the ratio 2:3. 
The capital accounts of the partners on 31
st
 March, 2024, before considering the firm’s 
goodwill were: 
Akshat     ? 1,66,000  
Javed       ? 66,000 
Gaurav    ? 1,41,000 
After considering the adjustment for goodwill, Akshat’s share was determined to be                               
? 1,81,000. It was decided that this amount would be paid to Akshat’s executor immediately 
by the firm through a cheque, the amount being contributed by Javed and Gaurav in such a 
manner that their capitals would become proportionate to their new profit-sharing ratio. 
 
You are required to pass journal entries to record:  
(i) 
The adjustment for self-generated goodwill of the firm.  
 
(ii) 
Cash brought in by Javed and Gaurav to pay off Akshat’s executor. 
 
(iii) 
Payment made to Akshat’s executor.                                                     (Application)  
 
 
 
 
 
------------------------------------------------------------------------------------------------------------------------ 
ISC SPECIMEN QUESTION PAPER 2025 
5                                        
 
Question 3 [3] 
On 1
st
 April, 2023, Ruth Ltd. purchased Plant and Machinery for ? 11,00,000 from Pablo Ltd. 
payable as to ? 1,00,000 by accepting a promissory note and the balance by an issue of 11% 
Debentures of ? 100 each at a premium of 10% to be redeemed at a premium of 2 % after six 
years. 
 
You are required to pass journal entries in the books of Ruth Ltd. only to record the 
payment made to Pablo Ltd.                                                                                 (Application) 
 
OR  
A limited company made an issue, which was fully subscribed, of 2,000, 5% Debentures of                     
? 100 each at ? 96, to be redeemed at par after five years. The debentures were allotted on                     
31
st
 May 2023, subscriptions being payable: 
15% on application 
30% on allotment 
30% on 30
th
 June, 2023  
Balance on 30
th
 September 2023  
One debenture holder holding 100 debentures paid the allotment with the first call along with 
interest on calls-in-arrears @ 10% per annum. 
You are required to: 
 
(i) Give the amounts in rupees payable with: 
1. Allotment 
2. Second and Final Call 
[2] 
(ii) Prepare the Interest-on-Calls in Arrears A/c.                                        [1] 
 (Application)  
 
 
Question 4 [3] 
1. Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ? 100 
each at a premium of 5 % in instalments, as follows: 
Date of Redemption Debentures to be redeemed 
31
st
 March, 2022  2,000 
31
st
 March, 2023  3,000 
31
st
 March, 2024  2,000 
You are required to prepare for the year 2023-24:  
 
(i) General Reserve Account.  
(ii) Debenture holders’ Account. (Ignore interest on Debentures)                           
(Application)