Class 12 Accountancy Official Sample Question Paper (2021-22- Term II) | Accountancy Class 12 - Commerce PDF Download

 Page 1


 
SAMPLE QUESTION PAPER  
Class -XII 
Term -II (2021-22) 
  Subject: Accountancy (055) 
 
Time Allowed: 2 Hours   Max.Marks:40 
General Instructions: 
1. This question paper comprises two Parts – A and B. There are 12 
questions in the question paper. All questions are compulsory.  
2. Part-A is compulsory for all candidates. 
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial 
Statements and (ii) Computerized Accounting. Students must 
attempt only one of the given options. 
4. Question nos. 1 to 3 and 10 are short answer type–I 
questions carrying 2 marks each. 
5. Question nos. 4 to 6 and 11 are short answer type–II questions 
carrying 3 marks each. 
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 
5 marks each. 
7. There is no overall choice. However, an internal choice has been 
provided in 3 questions of three marks and 1 question of five marks.  
 
Part A 
(Accounting for Not-for-Profit organizations, 
Partnership firms and Companies) 
1. Following information has been provided by M/s Achyut Health Care. 
You are required to calculate the amount of medicines consumed 
during the year 2020-21: 
Particulars Amount (?) 
Stock of medicines as on April 1, 2020 
Creditors for medicines as on April 1, 2020 
Stock of medicines as on March 31, 2021 
Creditors for medicines as on March 31, 2021 
Cash purchases of medicines during              the year 
2020-21 
Credit purchases of medicines during the year 
2020-21 
 
15,00,000 
  3,50,000 
10,00,000 
  4,20,000 
 
2,00,000 
 
6,00,000 
           (2) 
 
2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of 
Partnership Firm’ based on: 
(i) Settlement of assets and liabilities  
(ii) Economic relationship       (2) 
 
Page 2


 
SAMPLE QUESTION PAPER  
Class -XII 
Term -II (2021-22) 
  Subject: Accountancy (055) 
 
Time Allowed: 2 Hours   Max.Marks:40 
General Instructions: 
1. This question paper comprises two Parts – A and B. There are 12 
questions in the question paper. All questions are compulsory.  
2. Part-A is compulsory for all candidates. 
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial 
Statements and (ii) Computerized Accounting. Students must 
attempt only one of the given options. 
4. Question nos. 1 to 3 and 10 are short answer type–I 
questions carrying 2 marks each. 
5. Question nos. 4 to 6 and 11 are short answer type–II questions 
carrying 3 marks each. 
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 
5 marks each. 
7. There is no overall choice. However, an internal choice has been 
provided in 3 questions of three marks and 1 question of five marks.  
 
Part A 
(Accounting for Not-for-Profit organizations, 
Partnership firms and Companies) 
1. Following information has been provided by M/s Achyut Health Care. 
You are required to calculate the amount of medicines consumed 
during the year 2020-21: 
Particulars Amount (?) 
Stock of medicines as on April 1, 2020 
Creditors for medicines as on April 1, 2020 
Stock of medicines as on March 31, 2021 
Creditors for medicines as on March 31, 2021 
Cash purchases of medicines during              the year 
2020-21 
Credit purchases of medicines during the year 
2020-21 
 
15,00,000 
  3,50,000 
10,00,000 
  4,20,000 
 
2,00,000 
 
6,00,000 
           (2) 
 
2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of 
Partnership Firm’ based on: 
(i) Settlement of assets and liabilities  
(ii) Economic relationship       (2) 
 
3. Suresh, Ramesh and Tushar were partners of a firm sharing profits in 
the ratio of 6:5:4. Ramesh retired and his capital after making 
adjustments on account of reserves, revaluation of assets and 
reassessment of liabilities stood at ? 2,50,400. Suresh and Tushar 
agreed to pay him ? 2,90,000 in full settlement of his claim.  
Pass necessary journal entry for the treatment of goodwill. Show 
workings clearly.                                                (2) 
 
4. From the following information given by Modern Dance Academy, 
calculate the amount of Subscription received during the year 2020-
21.  
 
(i) Subscription credited to Income & Expenditure A/c for the year 
ending 31
st
 March ,2021 amounted to ?3,00,000 and each 
member is required to pay an annual subscription of ? 3,000. 
(ii) Subscription in arrears as on 1
st
 April 2020 amounted to ? 16,000. 
(iii) During the year 2020-21, 10 members made partial payment of       
?26,000 towards subscription, 8 members failed to pay the 
subscription amount and 5 members paid the subscription amount 
for the year2021-22. 
(iv) During the year 2019-20, 12 members paid the subscription 
amount for the year 2020-21. 
OR 
Following information is given by Alchemy Medical College, Library 
department for the year 2020-21. 
 
 
 
 
 
           
 
 
 
 
  
Show the accounting treatment of the above-mentioned items in the 
Balance Sheet of the Alchemy Medical College as at 31st March,2021.
                     (3) 
 
Particulars Amount (?) 
Books and Journals Fund as on 1.4.2020 
 
7% Books and Journals Fund Investments as on 
1.4.2020 
 
Interest on Books and Journals Fund 
Investments 
 
Donations for Books and Journals 
 
Books Purchased 
 
General Fund as on 1.4.2020 
4,50,000 
 
    
4,00,000 
 
    
13,000 
 
20,000 
 
70,000 
 
10,00,000  
 
Page 3


 
SAMPLE QUESTION PAPER  
Class -XII 
Term -II (2021-22) 
  Subject: Accountancy (055) 
 
Time Allowed: 2 Hours   Max.Marks:40 
General Instructions: 
1. This question paper comprises two Parts – A and B. There are 12 
questions in the question paper. All questions are compulsory.  
2. Part-A is compulsory for all candidates. 
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial 
Statements and (ii) Computerized Accounting. Students must 
attempt only one of the given options. 
4. Question nos. 1 to 3 and 10 are short answer type–I 
questions carrying 2 marks each. 
5. Question nos. 4 to 6 and 11 are short answer type–II questions 
carrying 3 marks each. 
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 
5 marks each. 
7. There is no overall choice. However, an internal choice has been 
provided in 3 questions of three marks and 1 question of five marks.  
 
Part A 
(Accounting for Not-for-Profit organizations, 
Partnership firms and Companies) 
1. Following information has been provided by M/s Achyut Health Care. 
You are required to calculate the amount of medicines consumed 
during the year 2020-21: 
Particulars Amount (?) 
Stock of medicines as on April 1, 2020 
Creditors for medicines as on April 1, 2020 
Stock of medicines as on March 31, 2021 
Creditors for medicines as on March 31, 2021 
Cash purchases of medicines during              the year 
2020-21 
Credit purchases of medicines during the year 
2020-21 
 
15,00,000 
  3,50,000 
10,00,000 
  4,20,000 
 
2,00,000 
 
6,00,000 
           (2) 
 
2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of 
Partnership Firm’ based on: 
(i) Settlement of assets and liabilities  
(ii) Economic relationship       (2) 
 
3. Suresh, Ramesh and Tushar were partners of a firm sharing profits in 
the ratio of 6:5:4. Ramesh retired and his capital after making 
adjustments on account of reserves, revaluation of assets and 
reassessment of liabilities stood at ? 2,50,400. Suresh and Tushar 
agreed to pay him ? 2,90,000 in full settlement of his claim.  
Pass necessary journal entry for the treatment of goodwill. Show 
workings clearly.                                                (2) 
 
4. From the following information given by Modern Dance Academy, 
calculate the amount of Subscription received during the year 2020-
21.  
 
(i) Subscription credited to Income & Expenditure A/c for the year 
ending 31
st
 March ,2021 amounted to ?3,00,000 and each 
member is required to pay an annual subscription of ? 3,000. 
(ii) Subscription in arrears as on 1
st
 April 2020 amounted to ? 16,000. 
(iii) During the year 2020-21, 10 members made partial payment of       
?26,000 towards subscription, 8 members failed to pay the 
subscription amount and 5 members paid the subscription amount 
for the year2021-22. 
(iv) During the year 2019-20, 12 members paid the subscription 
amount for the year 2020-21. 
OR 
Following information is given by Alchemy Medical College, Library 
department for the year 2020-21. 
 
 
 
 
 
           
 
 
 
 
  
Show the accounting treatment of the above-mentioned items in the 
Balance Sheet of the Alchemy Medical College as at 31st March,2021.
                     (3) 
 
Particulars Amount (?) 
Books and Journals Fund as on 1.4.2020 
 
7% Books and Journals Fund Investments as on 
1.4.2020 
 
Interest on Books and Journals Fund 
Investments 
 
Donations for Books and Journals 
 
Books Purchased 
 
General Fund as on 1.4.2020 
4,50,000 
 
    
4,00,000 
 
    
13,000 
 
20,000 
 
70,000 
 
10,00,000  
 
5. Harihar, Hemang and Harit were partners with fixed capitals of 
?3,00,000, ? 2,00,000 & ? 1,00,000 respectively. They shared profits 
in the ratio of their fixed capitals. Harit died on 31
st
 May, 2020, 
whereas the firm closes its books of accounts on 31
st
 March every 
year. According to their partnership deed, Harit’s representatives 
would be entitled to get share in the interim profits of the firm on the 
basis of sales. Sales and profit for the year 2019-20 amounted to 
?8,00,000 and ?2,40,000 respectively and sales from 1
st
 April, 2020 
to 31
st
 May 2020 amounted to ? 1,50,000. The rate of profit to sales 
remained constant during these two years. You are required to:  
(i) Calculate Harit’s share in profit. 
(ii) Pass journal entry to record Harit’s share in profit.   
                                                               (3) 
      
6. Vedesh Ltd. purchased a running business of Vibhu Enterprises for a 
sum of ? 12,00,000. Vedesh Ltd. paid ? 60,000 by drawing a 
promissory note in favour of Vibhu Enterprises., ?1,90,000 through 
bank draft and balance by issue of 8% debentures of ? 100 each at a 
discount of 5%. The assets and liabilities of Vibhu Enterprises 
consisted of Fixed Assets valued at ? 17,30,000 and Trade Payables 
at ? 3,20,000. 
 You are required to pass necessary journal entries in the books of 
Vedesh Ltd.                                                  
                OR 
Youth Ltd. took a loan of ? 15,00,000 from State Bank of India against 
the security of tangible assets. In addition to principal security, it 
issued 10,000 11% debentures of ? 100 each as collateral security. 
 
Pass necessary journal entries for the above transactions, if the 
company decided to record the issue of 11% debentures as 
collateral security and show the presentation in the Balance Sheet 
of Youth Ltd.                                    (3) 
 
 
7. Madhav, Madhusudan and Mukund were partners in Jaganath 
Associates. They decided to dissolve the firm on 31
st
 March 2021.  
Pass necessary journal entries for the following transactions after 
various assets (other than cash) and third-party liabilities have been 
transferred to realization account: 
(i) Old machine fully written off was sold for ? 42,000 while a 
payment of ? 6,000 is made to bank for a bill discounted being 
dishonoured. 
(ii) Madhusudan accepted an unrecorded asset of ?80,000 at 
?75,000 and the balance through cheque, against the payment 
of his loan to the firm of ?1,00,000. 
(iii) Stock of book value of ?30,000 was taken by Madhav, 
Madhusudan and Mukund in their profit sharing ratio. 
Page 4


 
SAMPLE QUESTION PAPER  
Class -XII 
Term -II (2021-22) 
  Subject: Accountancy (055) 
 
Time Allowed: 2 Hours   Max.Marks:40 
General Instructions: 
1. This question paper comprises two Parts – A and B. There are 12 
questions in the question paper. All questions are compulsory.  
2. Part-A is compulsory for all candidates. 
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial 
Statements and (ii) Computerized Accounting. Students must 
attempt only one of the given options. 
4. Question nos. 1 to 3 and 10 are short answer type–I 
questions carrying 2 marks each. 
5. Question nos. 4 to 6 and 11 are short answer type–II questions 
carrying 3 marks each. 
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 
5 marks each. 
7. There is no overall choice. However, an internal choice has been 
provided in 3 questions of three marks and 1 question of five marks.  
 
Part A 
(Accounting for Not-for-Profit organizations, 
Partnership firms and Companies) 
1. Following information has been provided by M/s Achyut Health Care. 
You are required to calculate the amount of medicines consumed 
during the year 2020-21: 
Particulars Amount (?) 
Stock of medicines as on April 1, 2020 
Creditors for medicines as on April 1, 2020 
Stock of medicines as on March 31, 2021 
Creditors for medicines as on March 31, 2021 
Cash purchases of medicines during              the year 
2020-21 
Credit purchases of medicines during the year 
2020-21 
 
15,00,000 
  3,50,000 
10,00,000 
  4,20,000 
 
2,00,000 
 
6,00,000 
           (2) 
 
2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of 
Partnership Firm’ based on: 
(i) Settlement of assets and liabilities  
(ii) Economic relationship       (2) 
 
3. Suresh, Ramesh and Tushar were partners of a firm sharing profits in 
the ratio of 6:5:4. Ramesh retired and his capital after making 
adjustments on account of reserves, revaluation of assets and 
reassessment of liabilities stood at ? 2,50,400. Suresh and Tushar 
agreed to pay him ? 2,90,000 in full settlement of his claim.  
Pass necessary journal entry for the treatment of goodwill. Show 
workings clearly.                                                (2) 
 
4. From the following information given by Modern Dance Academy, 
calculate the amount of Subscription received during the year 2020-
21.  
 
(i) Subscription credited to Income & Expenditure A/c for the year 
ending 31
st
 March ,2021 amounted to ?3,00,000 and each 
member is required to pay an annual subscription of ? 3,000. 
(ii) Subscription in arrears as on 1
st
 April 2020 amounted to ? 16,000. 
(iii) During the year 2020-21, 10 members made partial payment of       
?26,000 towards subscription, 8 members failed to pay the 
subscription amount and 5 members paid the subscription amount 
for the year2021-22. 
(iv) During the year 2019-20, 12 members paid the subscription 
amount for the year 2020-21. 
OR 
Following information is given by Alchemy Medical College, Library 
department for the year 2020-21. 
 
 
 
 
 
           
 
 
 
 
  
Show the accounting treatment of the above-mentioned items in the 
Balance Sheet of the Alchemy Medical College as at 31st March,2021.
                     (3) 
 
Particulars Amount (?) 
Books and Journals Fund as on 1.4.2020 
 
7% Books and Journals Fund Investments as on 
1.4.2020 
 
Interest on Books and Journals Fund 
Investments 
 
Donations for Books and Journals 
 
Books Purchased 
 
General Fund as on 1.4.2020 
4,50,000 
 
    
4,00,000 
 
    
13,000 
 
20,000 
 
70,000 
 
10,00,000  
 
5. Harihar, Hemang and Harit were partners with fixed capitals of 
?3,00,000, ? 2,00,000 & ? 1,00,000 respectively. They shared profits 
in the ratio of their fixed capitals. Harit died on 31
st
 May, 2020, 
whereas the firm closes its books of accounts on 31
st
 March every 
year. According to their partnership deed, Harit’s representatives 
would be entitled to get share in the interim profits of the firm on the 
basis of sales. Sales and profit for the year 2019-20 amounted to 
?8,00,000 and ?2,40,000 respectively and sales from 1
st
 April, 2020 
to 31
st
 May 2020 amounted to ? 1,50,000. The rate of profit to sales 
remained constant during these two years. You are required to:  
(i) Calculate Harit’s share in profit. 
(ii) Pass journal entry to record Harit’s share in profit.   
                                                               (3) 
      
6. Vedesh Ltd. purchased a running business of Vibhu Enterprises for a 
sum of ? 12,00,000. Vedesh Ltd. paid ? 60,000 by drawing a 
promissory note in favour of Vibhu Enterprises., ?1,90,000 through 
bank draft and balance by issue of 8% debentures of ? 100 each at a 
discount of 5%. The assets and liabilities of Vibhu Enterprises 
consisted of Fixed Assets valued at ? 17,30,000 and Trade Payables 
at ? 3,20,000. 
 You are required to pass necessary journal entries in the books of 
Vedesh Ltd.                                                  
                OR 
Youth Ltd. took a loan of ? 15,00,000 from State Bank of India against 
the security of tangible assets. In addition to principal security, it 
issued 10,000 11% debentures of ? 100 each as collateral security. 
 
Pass necessary journal entries for the above transactions, if the 
company decided to record the issue of 11% debentures as 
collateral security and show the presentation in the Balance Sheet 
of Youth Ltd.                                    (3) 
 
 
7. Madhav, Madhusudan and Mukund were partners in Jaganath 
Associates. They decided to dissolve the firm on 31
st
 March 2021.  
Pass necessary journal entries for the following transactions after 
various assets (other than cash) and third-party liabilities have been 
transferred to realization account: 
(i) Old machine fully written off was sold for ? 42,000 while a 
payment of ? 6,000 is made to bank for a bill discounted being 
dishonoured. 
(ii) Madhusudan accepted an unrecorded asset of ?80,000 at 
?75,000 and the balance through cheque, against the payment 
of his loan to the firm of ?1,00,000. 
(iii) Stock of book value of ?30,000 was taken by Madhav, 
Madhusudan and Mukund in their profit sharing ratio. 
(iv) The firm had paid realization expenses amounting to ?5,000 on 
behalf of Mukund. 
(v) There was a vehicle loan of ? 2,00,000 which was paid by 
surrender of asset to the bank at an agreed value of ? 1,40,000 
and the shortfall was met from firm’s bank account. 
 
OR 
Gini, Bini and Mini were in partnership sharing profits and losses 
in the ratio of 5:2:2. Their Balance Sheet   as at 31
st
 March, 2021 
was as follows: 
 
Balance Sheet as at 31
st
 March,2021 
  Liabilities Amount 
(?) 
Assets Amount 
(?) 
Sundry Creditors 
Bank Overdraft 
Workmen’s 
Compensation Reserve 
Capitals: 
Gini       4,60,000 
Bini       3,00,000 
Mini     2,90,000 
      56,500 
       61,500 
       
      32,000 
     
 
 
 10,50,000 
Cash 
Debtors      38,000       
Less: Provision For  
Doubtful Debts      (2,300) 
Inventories 
Machinery 
Furniture 
Building 
Goodwill 
1,17,300 
 
 
 
 35,700 
1,34,000 
1,00,000 
1,80,000 
5,70,000 
    63,000 
                     
12,00,000 
  
12,00,000 
 
 
On 31
st
 March, 2021, Gini retired from the firm. All the partners agreed to 
revalue the assets and liabilities on the following basis: 
(i) Bad debts amounted to ? 5,000. A provision for doubtful debts was 
to be maintained at 10% on debtors. 
(ii) Partners have decided to write off existing goodwill. 
(iii) Goodwill of the firm was valued at ? 54,000 and be adjusted into 
the Capital Accounts of Bini and Mini, who will share profits in future 
in the ratio of 5:4. 
(iv) The assets and liabilities valued as: Inventories ?1,30,000; 
Machinery ? 82,000; Furniture ?1,95,000 and Building   
? 6,00,000. 
(v) Liability of ?23,000 is to be created on account of Claim for 
Workmen Compensation. 
(vi) There was an unrecorded investment in shares of ? 25,000. It was 
decided to pay off Gini by giving her unrecorded investment in full 
settlement of her part payment of ? 28,000 and remaining amount 
after two months. 
Prepare Revaluation Account and Partners’ Capital Accounts as on 31
st
 
March, 2021.                                                            (5) 
 
Page 5


 
SAMPLE QUESTION PAPER  
Class -XII 
Term -II (2021-22) 
  Subject: Accountancy (055) 
 
Time Allowed: 2 Hours   Max.Marks:40 
General Instructions: 
1. This question paper comprises two Parts – A and B. There are 12 
questions in the question paper. All questions are compulsory.  
2. Part-A is compulsory for all candidates. 
3. Part- B h a s t w o o p t i o n s i . e . ( i ) Analysis of Financial 
Statements and (ii) Computerized Accounting. Students must 
attempt only one of the given options. 
4. Question nos. 1 to 3 and 10 are short answer type–I 
questions carrying 2 marks each. 
5. Question nos. 4 to 6 and 11 are short answer type–II questions 
carrying 3 marks each. 
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 
5 marks each. 
7. There is no overall choice. However, an internal choice has been 
provided in 3 questions of three marks and 1 question of five marks.  
 
Part A 
(Accounting for Not-for-Profit organizations, 
Partnership firms and Companies) 
1. Following information has been provided by M/s Achyut Health Care. 
You are required to calculate the amount of medicines consumed 
during the year 2020-21: 
Particulars Amount (?) 
Stock of medicines as on April 1, 2020 
Creditors for medicines as on April 1, 2020 
Stock of medicines as on March 31, 2021 
Creditors for medicines as on March 31, 2021 
Cash purchases of medicines during              the year 
2020-21 
Credit purchases of medicines during the year 
2020-21 
 
15,00,000 
  3,50,000 
10,00,000 
  4,20,000 
 
2,00,000 
 
6,00,000 
           (2) 
 
2. Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of 
Partnership Firm’ based on: 
(i) Settlement of assets and liabilities  
(ii) Economic relationship       (2) 
 
3. Suresh, Ramesh and Tushar were partners of a firm sharing profits in 
the ratio of 6:5:4. Ramesh retired and his capital after making 
adjustments on account of reserves, revaluation of assets and 
reassessment of liabilities stood at ? 2,50,400. Suresh and Tushar 
agreed to pay him ? 2,90,000 in full settlement of his claim.  
Pass necessary journal entry for the treatment of goodwill. Show 
workings clearly.                                                (2) 
 
4. From the following information given by Modern Dance Academy, 
calculate the amount of Subscription received during the year 2020-
21.  
 
(i) Subscription credited to Income & Expenditure A/c for the year 
ending 31
st
 March ,2021 amounted to ?3,00,000 and each 
member is required to pay an annual subscription of ? 3,000. 
(ii) Subscription in arrears as on 1
st
 April 2020 amounted to ? 16,000. 
(iii) During the year 2020-21, 10 members made partial payment of       
?26,000 towards subscription, 8 members failed to pay the 
subscription amount and 5 members paid the subscription amount 
for the year2021-22. 
(iv) During the year 2019-20, 12 members paid the subscription 
amount for the year 2020-21. 
OR 
Following information is given by Alchemy Medical College, Library 
department for the year 2020-21. 
 
 
 
 
 
           
 
 
 
 
  
Show the accounting treatment of the above-mentioned items in the 
Balance Sheet of the Alchemy Medical College as at 31st March,2021.
                     (3) 
 
Particulars Amount (?) 
Books and Journals Fund as on 1.4.2020 
 
7% Books and Journals Fund Investments as on 
1.4.2020 
 
Interest on Books and Journals Fund 
Investments 
 
Donations for Books and Journals 
 
Books Purchased 
 
General Fund as on 1.4.2020 
4,50,000 
 
    
4,00,000 
 
    
13,000 
 
20,000 
 
70,000 
 
10,00,000  
 
5. Harihar, Hemang and Harit were partners with fixed capitals of 
?3,00,000, ? 2,00,000 & ? 1,00,000 respectively. They shared profits 
in the ratio of their fixed capitals. Harit died on 31
st
 May, 2020, 
whereas the firm closes its books of accounts on 31
st
 March every 
year. According to their partnership deed, Harit’s representatives 
would be entitled to get share in the interim profits of the firm on the 
basis of sales. Sales and profit for the year 2019-20 amounted to 
?8,00,000 and ?2,40,000 respectively and sales from 1
st
 April, 2020 
to 31
st
 May 2020 amounted to ? 1,50,000. The rate of profit to sales 
remained constant during these two years. You are required to:  
(i) Calculate Harit’s share in profit. 
(ii) Pass journal entry to record Harit’s share in profit.   
                                                               (3) 
      
6. Vedesh Ltd. purchased a running business of Vibhu Enterprises for a 
sum of ? 12,00,000. Vedesh Ltd. paid ? 60,000 by drawing a 
promissory note in favour of Vibhu Enterprises., ?1,90,000 through 
bank draft and balance by issue of 8% debentures of ? 100 each at a 
discount of 5%. The assets and liabilities of Vibhu Enterprises 
consisted of Fixed Assets valued at ? 17,30,000 and Trade Payables 
at ? 3,20,000. 
 You are required to pass necessary journal entries in the books of 
Vedesh Ltd.                                                  
                OR 
Youth Ltd. took a loan of ? 15,00,000 from State Bank of India against 
the security of tangible assets. In addition to principal security, it 
issued 10,000 11% debentures of ? 100 each as collateral security. 
 
Pass necessary journal entries for the above transactions, if the 
company decided to record the issue of 11% debentures as 
collateral security and show the presentation in the Balance Sheet 
of Youth Ltd.                                    (3) 
 
 
7. Madhav, Madhusudan and Mukund were partners in Jaganath 
Associates. They decided to dissolve the firm on 31
st
 March 2021.  
Pass necessary journal entries for the following transactions after 
various assets (other than cash) and third-party liabilities have been 
transferred to realization account: 
(i) Old machine fully written off was sold for ? 42,000 while a 
payment of ? 6,000 is made to bank for a bill discounted being 
dishonoured. 
(ii) Madhusudan accepted an unrecorded asset of ?80,000 at 
?75,000 and the balance through cheque, against the payment 
of his loan to the firm of ?1,00,000. 
(iii) Stock of book value of ?30,000 was taken by Madhav, 
Madhusudan and Mukund in their profit sharing ratio. 
(iv) The firm had paid realization expenses amounting to ?5,000 on 
behalf of Mukund. 
(v) There was a vehicle loan of ? 2,00,000 which was paid by 
surrender of asset to the bank at an agreed value of ? 1,40,000 
and the shortfall was met from firm’s bank account. 
 
OR 
Gini, Bini and Mini were in partnership sharing profits and losses 
in the ratio of 5:2:2. Their Balance Sheet   as at 31
st
 March, 2021 
was as follows: 
 
Balance Sheet as at 31
st
 March,2021 
  Liabilities Amount 
(?) 
Assets Amount 
(?) 
Sundry Creditors 
Bank Overdraft 
Workmen’s 
Compensation Reserve 
Capitals: 
Gini       4,60,000 
Bini       3,00,000 
Mini     2,90,000 
      56,500 
       61,500 
       
      32,000 
     
 
 
 10,50,000 
Cash 
Debtors      38,000       
Less: Provision For  
Doubtful Debts      (2,300) 
Inventories 
Machinery 
Furniture 
Building 
Goodwill 
1,17,300 
 
 
 
 35,700 
1,34,000 
1,00,000 
1,80,000 
5,70,000 
    63,000 
                     
12,00,000 
  
12,00,000 
 
 
On 31
st
 March, 2021, Gini retired from the firm. All the partners agreed to 
revalue the assets and liabilities on the following basis: 
(i) Bad debts amounted to ? 5,000. A provision for doubtful debts was 
to be maintained at 10% on debtors. 
(ii) Partners have decided to write off existing goodwill. 
(iii) Goodwill of the firm was valued at ? 54,000 and be adjusted into 
the Capital Accounts of Bini and Mini, who will share profits in future 
in the ratio of 5:4. 
(iv) The assets and liabilities valued as: Inventories ?1,30,000; 
Machinery ? 82,000; Furniture ?1,95,000 and Building   
? 6,00,000. 
(v) Liability of ?23,000 is to be created on account of Claim for 
Workmen Compensation. 
(vi) There was an unrecorded investment in shares of ? 25,000. It was 
decided to pay off Gini by giving her unrecorded investment in full 
settlement of her part payment of ? 28,000 and remaining amount 
after two months. 
Prepare Revaluation Account and Partners’ Capital Accounts as on 31
st
 
March, 2021.                                                            (5) 
 
8. Yogadatra Ltd. (pharmaceutical company) appointed marketing expert, 
Mr. Kartikay as the CEO of the company, with a target to penetrate their 
roots in the rural regions. Mr. kartikay discussed the ways and means to 
achieve target of the company with financial, production and marketing 
departmental heads and asked the finance manager to prepare the 
budget. After reviewing the suggestions given by all the departmental 
heads, the finance manager proposed requirement of an additional fund 
of ?52,50,000.  
Yogadatra Ltd. is a zero-debt company. To avail the benefits of financial 
leverage, the finance manager proposed to include debt in the capital 
structure. After deliberations, on April1,2020, the board of directors had 
decided to issue 6% Debentures of ?100 each to the public at a premium 
of 5%, redeemable after 5 years at ?110 per share. 
     
  You are required to answer the following questions: 
(i) Calculate the number of debentures to be issued to raise additional 
funds. 
(ii) Pass Journal entry for the allotment of debentures. 
(iii) Pass Journal entry to write off loss on issue of debentures. 
(iv) Calculate the amount of annual fixed obligation associated with 
debentures. 
(v) Prepare Loss on Issue of Debentures Account.    (5) 
 
9. From the following Receipts and Payments Account and additional 
information provided by Ramanath Club, Prepare Income and 
Expenditure Account for the year     ending on 31st March 2021.  
Receipts and Payments Account 
for the year ending 31
st
 March, 2021 
Receipts Amount (?) Payments Amount(?) 
To Balance b/d 
To Subscription 
To Entrance Fee 
To Locker rent 
To Interest on 8% govt. 
Securities 
To Revenue from refreshment 
To Sale of old newspapers 
To Sale of furniture 
(Book value: ? 11,000) 
  48,000 
  95,000 
1,56,000 
  50,000 
           
5,400 
  52,000 
    4,600 
    
12,000 
By Salaries and Wages:                                    
2019-20               10,600 
 2020-21           1,03,200 
By Sundry expenses 
By Refreshment expenses 
By Telephone bill 
By Rent & Rates 
By Library Book 
By 8% Govt. Securities 
By Honorarium to Secretary 
By Balance c/d 
 
 
1,13,800 
  47,000 
  60,400 
    5,000 
  24,000 
  25,000 
  30,000 
    5,000 
1,12,800 
 4,23,000  4,23,000 
Additional Information: