CBSE Accountancy Past year paper All India (Set - 2) - 2017, Class 12 | Additional Study Material for Commerce PDF Download

 Page 1


  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
CBSE 
Class XII Accountancy 
All India Board Paper Set 2 – 2017 
 
Time: 3 Hours Max. Marks: 80 
  
General Instructions: 
1) This question paper contains two parts A and B 
2) Part A is compulsory for all 
3) All parts of a question should be attempted at one place 
Section A 
(i) This section consists of 17 questions 
(ii) All the question are compulsory 
(iii) Question Nos. 1 to 6 are very short – answer questions carrying 1 mark each. 
(iv) Question Nos. 7 to 10 carry 3 marks each 
(v) Question Nos. 11 and 12 carry 4 marks each 
(vi) Question Nos. 13 to 15 carry 6 marks each 
(vii) Question Nos. 16 and 17 Carry 8 marks each 
Section B 
(i) This section consists of 6 questions 
(ii) All questions are compulsory 
(iii) Question Nos.18 and 19 are very short – answer carrying 1 mark each 
(iv) Question Nos. 20 to 22 carry 4 marks 
(v) Question No.23 carries 6 marks 
 
SECTION A 
 
1. Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any 
two categories of individuals other than minors who cannot be admitted by them. 
 
2. Z. Ltd forfeited 1,000 equity shares of `10 each for the non-payment of the first call of `2 per share. The final 
call of `3 per share was yet to be made. 
Calculate the maximum amount of discount at which these shares can be reissued. 
 
3. X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These 
debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-
rata allotment was made to all the applications. 
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable 
with application. 
 
4. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were `2,00,000 and 
`3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the 
year ended 31
st
 March, 2016, the profits of the firm were distributed without providing interest on capital 
Pass necessary adjustment entry to rectify the error. 
 
5. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new 
partner. The new profit sharing ratio between A, B and C was 3:2:3. A surrendered 
1
th
5
 of his share in 
favour of C. Calculate B’s sacrifice. 
 
Page 2


  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
CBSE 
Class XII Accountancy 
All India Board Paper Set 2 – 2017 
 
Time: 3 Hours Max. Marks: 80 
  
General Instructions: 
1) This question paper contains two parts A and B 
2) Part A is compulsory for all 
3) All parts of a question should be attempted at one place 
Section A 
(i) This section consists of 17 questions 
(ii) All the question are compulsory 
(iii) Question Nos. 1 to 6 are very short – answer questions carrying 1 mark each. 
(iv) Question Nos. 7 to 10 carry 3 marks each 
(v) Question Nos. 11 and 12 carry 4 marks each 
(vi) Question Nos. 13 to 15 carry 6 marks each 
(vii) Question Nos. 16 and 17 Carry 8 marks each 
Section B 
(i) This section consists of 6 questions 
(ii) All questions are compulsory 
(iii) Question Nos.18 and 19 are very short – answer carrying 1 mark each 
(iv) Question Nos. 20 to 22 carry 4 marks 
(v) Question No.23 carries 6 marks 
 
SECTION A 
 
1. Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any 
two categories of individuals other than minors who cannot be admitted by them. 
 
2. Z. Ltd forfeited 1,000 equity shares of `10 each for the non-payment of the first call of `2 per share. The final 
call of `3 per share was yet to be made. 
Calculate the maximum amount of discount at which these shares can be reissued. 
 
3. X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These 
debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-
rata allotment was made to all the applications. 
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable 
with application. 
 
4. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were `2,00,000 and 
`3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the 
year ended 31
st
 March, 2016, the profits of the firm were distributed without providing interest on capital 
Pass necessary adjustment entry to rectify the error. 
 
5. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new 
partner. The new profit sharing ratio between A, B and C was 3:2:3. A surrendered 
1
th
5
 of his share in 
favour of C. Calculate B’s sacrifice. 
 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
6. Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance. 
 
7. Ganesh Ltd. is registered with an authorised capital of `10, 00, 00,000 divided into equity shares of `10 each. 
Subscribed and fully paid up capital of the company was `6,00,00 ,000. For providing employment to the 
local youth for the development of the tribal areas of Arunachal Pradesh the company decided to Set up a 
hydro power plants there. The company also decided to Open skill development centres in Itnaagar, 
pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity 
shares of `10 each and 1,00,000, 9% debentures of `100 each. The debentures were redeemable after five 
years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares 
failed to pay the final call of `2 per share. 
Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the 
companies Act, 2013; also identify any two values that the company wishes to propagate. 
 
8. Disha Ltd purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows : 
(i) By issuing 10,000 equity shares of `10 each at a premium of 10% 
(ii) By issuing 200, 9% debentures of `100 each at a discount of 10%. 
(iii) Balance by accepting a bill of exchange of `50,000 payable after one month. 
             Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payment 
to Nisha Ltd. 
 
9. Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1.2.2017, Guru 
retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3:1:1. On Guru’s 
retirement the goodwill of the firm was valued at `3, 60,000. 
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment 
of goodwill on Guru’s retirement 
 
10. BPL Ltd. converted 500, 9% debentures of `100 each issued at a discount of 6% into equity shares of `100 
each issued at a premium of `25 per share. Discount on issue of 9% debentures has not yet been written off.  
Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into 
equity shares. 
 
11. Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books 
on 31
st
 March every year. On 31
st
 December, 2016 Ashok died. The partnership deed provided that on the 
death of a partner his executors will be entitled for the following: 
(i) Balance in his capital account. On 1.4.2016, there was a balance of `90,000 in Ashok’s Capital Account. 
(ii) Interest on Capital @12% per annum 
(iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net 
profit on sales of the previous year, which was 25%. The sales of the firm till 31
st
 December, 2016 were 
`4, 00,000. 
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at 4,50,000. 
The partnership deed also provided for the following deduction from the amount payable to the executor of 
the decreased partner: 
(i) His drawings in the year of his death, Ashok’s drawings till 31.12.2016 were `15,000. 
(ii) Interest on drawings @12 % per annum which was calculated on `1,500. 
The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok but in 
a hurry he left it incomplete. Ashok’s Capital Account as prepared by the firm accountant is given below 
 
Ashok Capital Account 
Dr.     Cr. 
Date Particulars ` Date Particulars ` 
2016   2016   
Dec 31 …………… 15,000 April 1 ……………… 90,000 
Page 3


  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
CBSE 
Class XII Accountancy 
All India Board Paper Set 2 – 2017 
 
Time: 3 Hours Max. Marks: 80 
  
General Instructions: 
1) This question paper contains two parts A and B 
2) Part A is compulsory for all 
3) All parts of a question should be attempted at one place 
Section A 
(i) This section consists of 17 questions 
(ii) All the question are compulsory 
(iii) Question Nos. 1 to 6 are very short – answer questions carrying 1 mark each. 
(iv) Question Nos. 7 to 10 carry 3 marks each 
(v) Question Nos. 11 and 12 carry 4 marks each 
(vi) Question Nos. 13 to 15 carry 6 marks each 
(vii) Question Nos. 16 and 17 Carry 8 marks each 
Section B 
(i) This section consists of 6 questions 
(ii) All questions are compulsory 
(iii) Question Nos.18 and 19 are very short – answer carrying 1 mark each 
(iv) Question Nos. 20 to 22 carry 4 marks 
(v) Question No.23 carries 6 marks 
 
SECTION A 
 
1. Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any 
two categories of individuals other than minors who cannot be admitted by them. 
 
2. Z. Ltd forfeited 1,000 equity shares of `10 each for the non-payment of the first call of `2 per share. The final 
call of `3 per share was yet to be made. 
Calculate the maximum amount of discount at which these shares can be reissued. 
 
3. X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These 
debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-
rata allotment was made to all the applications. 
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable 
with application. 
 
4. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were `2,00,000 and 
`3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the 
year ended 31
st
 March, 2016, the profits of the firm were distributed without providing interest on capital 
Pass necessary adjustment entry to rectify the error. 
 
5. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new 
partner. The new profit sharing ratio between A, B and C was 3:2:3. A surrendered 
1
th
5
 of his share in 
favour of C. Calculate B’s sacrifice. 
 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
6. Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance. 
 
7. Ganesh Ltd. is registered with an authorised capital of `10, 00, 00,000 divided into equity shares of `10 each. 
Subscribed and fully paid up capital of the company was `6,00,00 ,000. For providing employment to the 
local youth for the development of the tribal areas of Arunachal Pradesh the company decided to Set up a 
hydro power plants there. The company also decided to Open skill development centres in Itnaagar, 
pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity 
shares of `10 each and 1,00,000, 9% debentures of `100 each. The debentures were redeemable after five 
years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares 
failed to pay the final call of `2 per share. 
Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the 
companies Act, 2013; also identify any two values that the company wishes to propagate. 
 
8. Disha Ltd purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows : 
(i) By issuing 10,000 equity shares of `10 each at a premium of 10% 
(ii) By issuing 200, 9% debentures of `100 each at a discount of 10%. 
(iii) Balance by accepting a bill of exchange of `50,000 payable after one month. 
             Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payment 
to Nisha Ltd. 
 
9. Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1.2.2017, Guru 
retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3:1:1. On Guru’s 
retirement the goodwill of the firm was valued at `3, 60,000. 
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment 
of goodwill on Guru’s retirement 
 
10. BPL Ltd. converted 500, 9% debentures of `100 each issued at a discount of 6% into equity shares of `100 
each issued at a premium of `25 per share. Discount on issue of 9% debentures has not yet been written off.  
Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into 
equity shares. 
 
11. Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books 
on 31
st
 March every year. On 31
st
 December, 2016 Ashok died. The partnership deed provided that on the 
death of a partner his executors will be entitled for the following: 
(i) Balance in his capital account. On 1.4.2016, there was a balance of `90,000 in Ashok’s Capital Account. 
(ii) Interest on Capital @12% per annum 
(iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net 
profit on sales of the previous year, which was 25%. The sales of the firm till 31
st
 December, 2016 were 
`4, 00,000. 
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at 4,50,000. 
The partnership deed also provided for the following deduction from the amount payable to the executor of 
the decreased partner: 
(i) His drawings in the year of his death, Ashok’s drawings till 31.12.2016 were `15,000. 
(ii) Interest on drawings @12 % per annum which was calculated on `1,500. 
The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok but in 
a hurry he left it incomplete. Ashok’s Capital Account as prepared by the firm accountant is given below 
 
Ashok Capital Account 
Dr.     Cr. 
Date Particulars ` Date Particulars ` 
2016   2016   
Dec 31 …………… 15,000 April 1 ……………… 90,000 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
Dec 31 …………... …………. Dec 31 .…………….. 8,300 
Dec 31 …………… ………….. Dec 31 .…………….. 40,000 
   Dec 31 ..……………. 90,000 
   Dec 31 ……………… 90,000 
      
 3,18,100   3,18,000 
Your are required to complete Ashok’s Capital Account. 
 
12. Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3: 5. Their fixed capitals 
were `4, 00,000 and `6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 
1
th
4
 
share in the profits. Tina acquired her share of profit from Neha. Tina brought `4, 00,000 as her capital 
which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's 
admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for 
the treatment of goodwill on Tina's admission considering that Tina did not bring her share of goodwill 
premium in cash 
 
13. Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2:2:3:3. On 
1.4.2016 their Balance Sheet was as follows : 
 
Balance Sheet of Suresh, Ramesh, Mahesh and Ganesh 
as on 1.4.2016 
Liabilities  ` Assets ` 
Capitals :   Fixed Assets 6,00,000 
Suresh 
1,00,000 
 Current Assets 3,45,000 
Ramesh 
1,50,000 
   
Mahesh 
2,00,000 
   
Ganesh 
2,50,000 
7,00,000   
Sundry Creditors  1,70,000   
Workmen Compensation Reserve  75,000   
     
 9,45,000  9,45,000 
      From the above date the partners decided to share the future profits equally. For this purpose the goodwill of 
the firm was valued at `90,000.  
It was also agreed that: 
(i) Claim against Workmen Compensation Reserve will be estimated at `1,00,000 and fixed assets will be 
depreciated by 10%. 
(ii) The capitals of the partners will be adjusted according to the new profit sharing ratio. For this, necessary 
cash will be brought or paid by the partners as the case may be. 
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm. 
 
14. On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of `100 each at a discount of 7%, redeemable at a 
premium of 10% after 10 years. The company closes its books on 31
st
 March every year. Interest on 
9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source 
is 10%. 
Pass necessary journal entries for the issue of 9% debentures and debenture interest for the year ended 
31.3.2016. 
 
15. Pass necessary journal entries on the dissolution of  a partnership firm in the following cases : 
Page 4


  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
CBSE 
Class XII Accountancy 
All India Board Paper Set 2 – 2017 
 
Time: 3 Hours Max. Marks: 80 
  
General Instructions: 
1) This question paper contains two parts A and B 
2) Part A is compulsory for all 
3) All parts of a question should be attempted at one place 
Section A 
(i) This section consists of 17 questions 
(ii) All the question are compulsory 
(iii) Question Nos. 1 to 6 are very short – answer questions carrying 1 mark each. 
(iv) Question Nos. 7 to 10 carry 3 marks each 
(v) Question Nos. 11 and 12 carry 4 marks each 
(vi) Question Nos. 13 to 15 carry 6 marks each 
(vii) Question Nos. 16 and 17 Carry 8 marks each 
Section B 
(i) This section consists of 6 questions 
(ii) All questions are compulsory 
(iii) Question Nos.18 and 19 are very short – answer carrying 1 mark each 
(iv) Question Nos. 20 to 22 carry 4 marks 
(v) Question No.23 carries 6 marks 
 
SECTION A 
 
1. Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any 
two categories of individuals other than minors who cannot be admitted by them. 
 
2. Z. Ltd forfeited 1,000 equity shares of `10 each for the non-payment of the first call of `2 per share. The final 
call of `3 per share was yet to be made. 
Calculate the maximum amount of discount at which these shares can be reissued. 
 
3. X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These 
debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-
rata allotment was made to all the applications. 
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable 
with application. 
 
4. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were `2,00,000 and 
`3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the 
year ended 31
st
 March, 2016, the profits of the firm were distributed without providing interest on capital 
Pass necessary adjustment entry to rectify the error. 
 
5. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new 
partner. The new profit sharing ratio between A, B and C was 3:2:3. A surrendered 
1
th
5
 of his share in 
favour of C. Calculate B’s sacrifice. 
 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
6. Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance. 
 
7. Ganesh Ltd. is registered with an authorised capital of `10, 00, 00,000 divided into equity shares of `10 each. 
Subscribed and fully paid up capital of the company was `6,00,00 ,000. For providing employment to the 
local youth for the development of the tribal areas of Arunachal Pradesh the company decided to Set up a 
hydro power plants there. The company also decided to Open skill development centres in Itnaagar, 
pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity 
shares of `10 each and 1,00,000, 9% debentures of `100 each. The debentures were redeemable after five 
years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares 
failed to pay the final call of `2 per share. 
Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the 
companies Act, 2013; also identify any two values that the company wishes to propagate. 
 
8. Disha Ltd purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows : 
(i) By issuing 10,000 equity shares of `10 each at a premium of 10% 
(ii) By issuing 200, 9% debentures of `100 each at a discount of 10%. 
(iii) Balance by accepting a bill of exchange of `50,000 payable after one month. 
             Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payment 
to Nisha Ltd. 
 
9. Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1.2.2017, Guru 
retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3:1:1. On Guru’s 
retirement the goodwill of the firm was valued at `3, 60,000. 
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment 
of goodwill on Guru’s retirement 
 
10. BPL Ltd. converted 500, 9% debentures of `100 each issued at a discount of 6% into equity shares of `100 
each issued at a premium of `25 per share. Discount on issue of 9% debentures has not yet been written off.  
Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into 
equity shares. 
 
11. Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books 
on 31
st
 March every year. On 31
st
 December, 2016 Ashok died. The partnership deed provided that on the 
death of a partner his executors will be entitled for the following: 
(i) Balance in his capital account. On 1.4.2016, there was a balance of `90,000 in Ashok’s Capital Account. 
(ii) Interest on Capital @12% per annum 
(iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net 
profit on sales of the previous year, which was 25%. The sales of the firm till 31
st
 December, 2016 were 
`4, 00,000. 
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at 4,50,000. 
The partnership deed also provided for the following deduction from the amount payable to the executor of 
the decreased partner: 
(i) His drawings in the year of his death, Ashok’s drawings till 31.12.2016 were `15,000. 
(ii) Interest on drawings @12 % per annum which was calculated on `1,500. 
The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok but in 
a hurry he left it incomplete. Ashok’s Capital Account as prepared by the firm accountant is given below 
 
Ashok Capital Account 
Dr.     Cr. 
Date Particulars ` Date Particulars ` 
2016   2016   
Dec 31 …………… 15,000 April 1 ……………… 90,000 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
Dec 31 …………... …………. Dec 31 .…………….. 8,300 
Dec 31 …………… ………….. Dec 31 .…………….. 40,000 
   Dec 31 ..……………. 90,000 
   Dec 31 ……………… 90,000 
      
 3,18,100   3,18,000 
Your are required to complete Ashok’s Capital Account. 
 
12. Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3: 5. Their fixed capitals 
were `4, 00,000 and `6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 
1
th
4
 
share in the profits. Tina acquired her share of profit from Neha. Tina brought `4, 00,000 as her capital 
which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's 
admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for 
the treatment of goodwill on Tina's admission considering that Tina did not bring her share of goodwill 
premium in cash 
 
13. Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2:2:3:3. On 
1.4.2016 their Balance Sheet was as follows : 
 
Balance Sheet of Suresh, Ramesh, Mahesh and Ganesh 
as on 1.4.2016 
Liabilities  ` Assets ` 
Capitals :   Fixed Assets 6,00,000 
Suresh 
1,00,000 
 Current Assets 3,45,000 
Ramesh 
1,50,000 
   
Mahesh 
2,00,000 
   
Ganesh 
2,50,000 
7,00,000   
Sundry Creditors  1,70,000   
Workmen Compensation Reserve  75,000   
     
 9,45,000  9,45,000 
      From the above date the partners decided to share the future profits equally. For this purpose the goodwill of 
the firm was valued at `90,000.  
It was also agreed that: 
(i) Claim against Workmen Compensation Reserve will be estimated at `1,00,000 and fixed assets will be 
depreciated by 10%. 
(ii) The capitals of the partners will be adjusted according to the new profit sharing ratio. For this, necessary 
cash will be brought or paid by the partners as the case may be. 
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm. 
 
14. On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of `100 each at a discount of 7%, redeemable at a 
premium of 10% after 10 years. The company closes its books on 31
st
 March every year. Interest on 
9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source 
is 10%. 
Pass necessary journal entries for the issue of 9% debentures and debenture interest for the year ended 
31.3.2016. 
 
15. Pass necessary journal entries on the dissolution of  a partnership firm in the following cases : 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
(i) Expenses of dissolution were `9,000. 
(ii) Expenses of dissolution `3,400 were paid by a partner, Vishal. 
(iii) Shiv, a partner, agreed to do the work for dissolution for a commission of `4,500. He also agreed to 
bear the dissolution expenses. Actual dissolution expenses `3,900 were paid from the firm's bank 
account. 
(iv) Naveen, a partner, agreed to look after the dissolution work for which he was allowed a remuneration 
of `3,000. Naveen also agreed to bear the dissolution expenses. Actual expenses on dissolution `2,700 
were paid by Naveen. 
(v) Vivek, a partner, was appointed to look after the dissolution work for a remuneration of `7,000. He 
agreed to bear the dissolution expenses. Actual dissolution expenses `6,500 were paid by Rishi, 
another partner, on behalf of Vivek. 
(vi) Gaurav, a partner, was appointed to look after the work of dissolution for a commission of `12,500. He 
agreed to bear the dissolution expenses. Gaurav took over furniture of `12,500 as his commission. The 
furniture had already been transferred to realisation account. 
 
 
16. VXN Ltd invited application for issuing 50,000 equity shares of `10 each as a premium of 8 per share. The 
amount was payable as follows : 
                 On Application: `4 per share (including `3 premiums) 
                 On Allotment: `6 per share (including `3 premiums) 
                 On First Call: `5 per share (including `1 premium) 
                 On second and final Call: Balance Amount 
The issue was fully subscribed Gopal a shareholder holding 200 shares did not pay the allotment money and 
Madhav, a holder of 400 shares paid his entire share money along with the allotment money. Gopal’s Shares 
were immediately forfeited after allotment, Afterwards, the first call was made Krishna, a holder of 100 
shares, failed to pay the first call money and Giridhar, a holder of 300 shares, paid the second call money also 
along with the first call. Krishna’s shares were forfeited immediately after the first call. Second and final call 
was made afterwards and was duly received. All the forfeited shares were reissued at `9 per share fully paid 
up. 
Pass necessary journal entries for the above transaction in the books of the company. 
OR 
JJK Ltd invited application or issuing 50,000 equity shares of 10 each at par. The amount was payable as 
follows: 
                     On Application: `2 per share 
                    On Allotment: `4 per share 
                    On first and Final Call: Balance Amount 
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. 
Allotment was made to the remaining applicants as follows: 
Category No. of Shares Applied No. of shares Allotted 
I 80,000 40,000 
II 25,000 10,000 
 
 
 
Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on 
allotment. 
Deepak, a shareholder belonging the Category I, who had applied for 1,000 shares, failed to pay the 
allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju 
belonged to category II. Shares of both Deepak and Raju were forfeited immediately after allotment. 
Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju 
were reissued at 11 per share fully paid up 
Pass necessary journal entries for the above transactions in the books of the company 
Page 5


  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
CBSE 
Class XII Accountancy 
All India Board Paper Set 2 – 2017 
 
Time: 3 Hours Max. Marks: 80 
  
General Instructions: 
1) This question paper contains two parts A and B 
2) Part A is compulsory for all 
3) All parts of a question should be attempted at one place 
Section A 
(i) This section consists of 17 questions 
(ii) All the question are compulsory 
(iii) Question Nos. 1 to 6 are very short – answer questions carrying 1 mark each. 
(iv) Question Nos. 7 to 10 carry 3 marks each 
(v) Question Nos. 11 and 12 carry 4 marks each 
(vi) Question Nos. 13 to 15 carry 6 marks each 
(vii) Question Nos. 16 and 17 Carry 8 marks each 
Section B 
(i) This section consists of 6 questions 
(ii) All questions are compulsory 
(iii) Question Nos.18 and 19 are very short – answer carrying 1 mark each 
(iv) Question Nos. 20 to 22 carry 4 marks 
(v) Question No.23 carries 6 marks 
 
SECTION A 
 
1. Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any 
two categories of individuals other than minors who cannot be admitted by them. 
 
2. Z. Ltd forfeited 1,000 equity shares of `10 each for the non-payment of the first call of `2 per share. The final 
call of `3 per share was yet to be made. 
Calculate the maximum amount of discount at which these shares can be reissued. 
 
3. X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These 
debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-
rata allotment was made to all the applications. 
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable 
with application. 
 
4. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were `2,00,000 and 
`3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the 
year ended 31
st
 March, 2016, the profits of the firm were distributed without providing interest on capital 
Pass necessary adjustment entry to rectify the error. 
 
5. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new 
partner. The new profit sharing ratio between A, B and C was 3:2:3. A surrendered 
1
th
5
 of his share in 
favour of C. Calculate B’s sacrifice. 
 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
6. Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance. 
 
7. Ganesh Ltd. is registered with an authorised capital of `10, 00, 00,000 divided into equity shares of `10 each. 
Subscribed and fully paid up capital of the company was `6,00,00 ,000. For providing employment to the 
local youth for the development of the tribal areas of Arunachal Pradesh the company decided to Set up a 
hydro power plants there. The company also decided to Open skill development centres in Itnaagar, 
pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity 
shares of `10 each and 1,00,000, 9% debentures of `100 each. The debentures were redeemable after five 
years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares 
failed to pay the final call of `2 per share. 
Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the 
companies Act, 2013; also identify any two values that the company wishes to propagate. 
 
8. Disha Ltd purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows : 
(i) By issuing 10,000 equity shares of `10 each at a premium of 10% 
(ii) By issuing 200, 9% debentures of `100 each at a discount of 10%. 
(iii) Balance by accepting a bill of exchange of `50,000 payable after one month. 
             Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payment 
to Nisha Ltd. 
 
9. Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1.2.2017, Guru 
retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3:1:1. On Guru’s 
retirement the goodwill of the firm was valued at `3, 60,000. 
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment 
of goodwill on Guru’s retirement 
 
10. BPL Ltd. converted 500, 9% debentures of `100 each issued at a discount of 6% into equity shares of `100 
each issued at a premium of `25 per share. Discount on issue of 9% debentures has not yet been written off.  
Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into 
equity shares. 
 
11. Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books 
on 31
st
 March every year. On 31
st
 December, 2016 Ashok died. The partnership deed provided that on the 
death of a partner his executors will be entitled for the following: 
(i) Balance in his capital account. On 1.4.2016, there was a balance of `90,000 in Ashok’s Capital Account. 
(ii) Interest on Capital @12% per annum 
(iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net 
profit on sales of the previous year, which was 25%. The sales of the firm till 31
st
 December, 2016 were 
`4, 00,000. 
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at 4,50,000. 
The partnership deed also provided for the following deduction from the amount payable to the executor of 
the decreased partner: 
(i) His drawings in the year of his death, Ashok’s drawings till 31.12.2016 were `15,000. 
(ii) Interest on drawings @12 % per annum which was calculated on `1,500. 
The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok but in 
a hurry he left it incomplete. Ashok’s Capital Account as prepared by the firm accountant is given below 
 
Ashok Capital Account 
Dr.     Cr. 
Date Particulars ` Date Particulars ` 
2016   2016   
Dec 31 …………… 15,000 April 1 ……………… 90,000 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
Dec 31 …………... …………. Dec 31 .…………….. 8,300 
Dec 31 …………… ………….. Dec 31 .…………….. 40,000 
   Dec 31 ..……………. 90,000 
   Dec 31 ……………… 90,000 
      
 3,18,100   3,18,000 
Your are required to complete Ashok’s Capital Account. 
 
12. Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3: 5. Their fixed capitals 
were `4, 00,000 and `6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 
1
th
4
 
share in the profits. Tina acquired her share of profit from Neha. Tina brought `4, 00,000 as her capital 
which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's 
admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for 
the treatment of goodwill on Tina's admission considering that Tina did not bring her share of goodwill 
premium in cash 
 
13. Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2:2:3:3. On 
1.4.2016 their Balance Sheet was as follows : 
 
Balance Sheet of Suresh, Ramesh, Mahesh and Ganesh 
as on 1.4.2016 
Liabilities  ` Assets ` 
Capitals :   Fixed Assets 6,00,000 
Suresh 
1,00,000 
 Current Assets 3,45,000 
Ramesh 
1,50,000 
   
Mahesh 
2,00,000 
   
Ganesh 
2,50,000 
7,00,000   
Sundry Creditors  1,70,000   
Workmen Compensation Reserve  75,000   
     
 9,45,000  9,45,000 
      From the above date the partners decided to share the future profits equally. For this purpose the goodwill of 
the firm was valued at `90,000.  
It was also agreed that: 
(i) Claim against Workmen Compensation Reserve will be estimated at `1,00,000 and fixed assets will be 
depreciated by 10%. 
(ii) The capitals of the partners will be adjusted according to the new profit sharing ratio. For this, necessary 
cash will be brought or paid by the partners as the case may be. 
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm. 
 
14. On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of `100 each at a discount of 7%, redeemable at a 
premium of 10% after 10 years. The company closes its books on 31
st
 March every year. Interest on 
9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source 
is 10%. 
Pass necessary journal entries for the issue of 9% debentures and debenture interest for the year ended 
31.3.2016. 
 
15. Pass necessary journal entries on the dissolution of  a partnership firm in the following cases : 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
(i) Expenses of dissolution were `9,000. 
(ii) Expenses of dissolution `3,400 were paid by a partner, Vishal. 
(iii) Shiv, a partner, agreed to do the work for dissolution for a commission of `4,500. He also agreed to 
bear the dissolution expenses. Actual dissolution expenses `3,900 were paid from the firm's bank 
account. 
(iv) Naveen, a partner, agreed to look after the dissolution work for which he was allowed a remuneration 
of `3,000. Naveen also agreed to bear the dissolution expenses. Actual expenses on dissolution `2,700 
were paid by Naveen. 
(v) Vivek, a partner, was appointed to look after the dissolution work for a remuneration of `7,000. He 
agreed to bear the dissolution expenses. Actual dissolution expenses `6,500 were paid by Rishi, 
another partner, on behalf of Vivek. 
(vi) Gaurav, a partner, was appointed to look after the work of dissolution for a commission of `12,500. He 
agreed to bear the dissolution expenses. Gaurav took over furniture of `12,500 as his commission. The 
furniture had already been transferred to realisation account. 
 
 
16. VXN Ltd invited application for issuing 50,000 equity shares of `10 each as a premium of 8 per share. The 
amount was payable as follows : 
                 On Application: `4 per share (including `3 premiums) 
                 On Allotment: `6 per share (including `3 premiums) 
                 On First Call: `5 per share (including `1 premium) 
                 On second and final Call: Balance Amount 
The issue was fully subscribed Gopal a shareholder holding 200 shares did not pay the allotment money and 
Madhav, a holder of 400 shares paid his entire share money along with the allotment money. Gopal’s Shares 
were immediately forfeited after allotment, Afterwards, the first call was made Krishna, a holder of 100 
shares, failed to pay the first call money and Giridhar, a holder of 300 shares, paid the second call money also 
along with the first call. Krishna’s shares were forfeited immediately after the first call. Second and final call 
was made afterwards and was duly received. All the forfeited shares were reissued at `9 per share fully paid 
up. 
Pass necessary journal entries for the above transaction in the books of the company. 
OR 
JJK Ltd invited application or issuing 50,000 equity shares of 10 each at par. The amount was payable as 
follows: 
                     On Application: `2 per share 
                    On Allotment: `4 per share 
                    On first and Final Call: Balance Amount 
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. 
Allotment was made to the remaining applicants as follows: 
Category No. of Shares Applied No. of shares Allotted 
I 80,000 40,000 
II 25,000 10,000 
 
 
 
Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on 
allotment. 
Deepak, a shareholder belonging the Category I, who had applied for 1,000 shares, failed to pay the 
allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju 
belonged to category II. Shares of both Deepak and Raju were forfeited immediately after allotment. 
Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju 
were reissued at 11 per share fully paid up 
Pass necessary journal entries for the above transactions in the books of the company 
  
 
CBSE XII  | Accountancy 
All India Board Paper Set 2 – 2017 
 
     
 
 
 
17. C and D are partner in a firm sharing profits in the ratio of 4:1. On 31.3.2016 their Balance Sheet was as 
follows : 
Balance Sheet of C and D 
As on 31.3.2016 
Liabilities  ` Assets  ` 
Sundry Creditors  40,000 Cash  24,000 
Provision for Bad debts  4,000 Debtors  36,000 
Outstanding Salary  6,000 Stock  40,000 
General Reserve  10,000 Furniture  80,000 
   Plant and Machinery  80,000 
Capitals      
 C 1,20,000     
 D 80,000 2,00,000    
  2,60,000   2,60,000 
      
On the above date, E was admitted for 
1
th
4
 share in the profits on the following terms: 
(i) E will bring 1, 00,000 as his capital and 20,000 for his share of goodwill premium half of which will be 
withdrawn by C and D. 
(ii) Debtors 2,000 will be written off as bad debts and a provision of 4% will be created on debtors for bad 
debts and doubtful debts. 
(iii) Stock will be reduced by `2,000, furniture will be depreciated by `4,000 and 10% depreciation will be 
charged on plant and machinery. 
(iv) Investments of 7,000 not shown in the Balance Sheet will be takes into account. 
(v) There was an outstanding repairs bill of `2,300 which will be recorded in the books. 
Pass necessary journal entries for the above transactions in the books of the firm on E’s admission. 
OR 
Sameer,Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4:3:3. On 
31.3.2016, their Balance Sheet was as follows: 
 
Balance Sheet of Sameer, Yasmin and Saloni 
As on 31.3.2016 
Liabilities  ` Assets  ` 
Creditors  1,10,000 Cash  80,000 
General Reserve  60,000 Debtors 90,000  
Capitals:   Less : Provision 10,000 80,000 
 Sameer 3,00,000  Stock  1,00,000 
 Yasmin 2,50,000  Machinery  3,00,000 
 Saloni 1,50,000 7,00,000 Building  2,00,000 
   Patents  60,000 
   
Profit and Loss 
Account  50,000 
      
  8,70,000   8,70,000 
On the above date, Sameer retired and it was agreed that: 
(i) Debtors of 4,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful 
debts will be maintained. 
(ii) An unrecorded creditor of 20,000 will be recorded. 
(iii) Patents will be completely written off and 5% depreciation will be charged on stock, machinery and 
building. 
(iv) Yasmin and Saloni will share future profits in the ratio of 3:2