# Class 12 Accountancy Sample Paper

We have provided Class 12 Accountancy Sample Paper as per the latest CBSE examination pattern for the current academic year. The following CBSE Sample Papers for Class 12 Accountancy has been prepared based on the guess papers issued recently. Students will be able to practice these papers and get good marks in upcoming Accountancy exams for Class 12.

## Class 12 Accountancy Sample Paper Term 1 With Solutions Set A

Part – I
Section – A

1. In case of private placement of shares, a company â€¦â€¦â€¦ to raise the amount of capital.
(a) invites the public through prospectus
(b) does not invite the public
(d) invites the public through memorandum of association

B

2. In a firm, 10% of net profit after deducting all adjustments, including reserve is transferred to general reserve. The net profit after all adjustment but before transfer to general reserve is â‚¹ 22,000. Calculate the amount which is to be transferred to reserve.
(a) â‚¹ 1,250
(b) â‚¹ 2,000
(c) â‚¹ 2,200
(d) â‚¹ 1,100

B

3. Existing goodwill written-off at the time of admission of a partner, is transferred to partnersâ€™ capital accounts in their â€¦â€¦â€¦ .
(a) old profit sharing ratio
(b) new profit sharing ratio
(c) sacrificing ratio
(d) gaining ratio

A

4. Reserve capital is
(i) subscribed capital
(ii) capital reserve
(iii) uncalled capital
(iv) part of the uncalled capital which may be called only at the time of liquidation of the company
(a) (i) and (iv)
(b) (ii) and (iv)
(c) Only (iv)
(d) (ii) and (iii)

C

5. An Extract of Balance Sheet

Provision to be maintained @10%at the time of change in profit sharing ratio. What is the amount credited/debited in revaluation account?
(a) Debit â‚¹ 80,000
(b) Credit â‚¹ 80,000
(c) Credit â‚¹ 40,000
(d) Debit â‚¹ 40,000

D

6. A company issued 25,000 shares of â‚¹ 20 each at 5% premium, â‚¹ 10were payable on application and balance on allotment. What will be the allotment amount?
(a) â‚¹ 2,50,000
(b) â‚¹ 2,37,500
(c) â‚¹ 2,75,000
(d) â‚¹ 2,62,500

C

7. Unrecorded assets or liabilities are transferred to
(a) partnersâ€™ capital account
(b) partnersâ€™ current account
(c) revaluation account
(d) profit and loss account

C

8. On an equity share of â‚¹ 20, the company called-up â‚¹ 16 but â‚¹ 14 has been received by the company, equity share capital account will be credited by
(a) â‚¹ 20
(b) â‚¹ 16
(c) â‚¹ 14
(d) â‚¹ 2

B

9. On 1st April, 2020 Pâ€™s capital was â‚¹ 10,000. On 1st October, 2020, he introduces additional capital of â‚¹ 5,000. Interest on capital @ 6% p.a. on 31st March, 2021 will be
(a) â‚¹ 450
(b) â‚¹ 900
(c) â‚¹ 525
(d) â‚¹ 750

D

10. As per SEBI guidelines, application money should not be less than â€¦â€¦â€¦ of the issue price of each share.
(a) 10%
(b) 15%
(c) 25%
(d) 50%

C

11. A partner withdraws â‚¹ 1,600 each on 1st April and 1st October. Interest on his drawings @ 6% p.a. on 31st March will be
(a) â‚¹ 96
(b) â‚¹ 144
(c) â‚¹ 48
(d) â‚¹ 192

B

12. â€¦â€¦â€¦â€¦ is also known as articles of partnership.
(a) Partnership prospectus
(b) Partnership deed
(c) Principles of partnership
(d) None of these

B

13. X and Y are partners sharing profits in the ratio of 3 : 2. They admit Z as a new partner. After his admission, the profit sharing ratio becomes 5 : 5 : 3. On the date of Z â€™s  admission, goodwill of the firm is valued at â‚¹ 26,00,000. The amount of goodwill brought in by Z will be
(a) â‚¹ 10,00,000
(b) â‚¹ 20,00,000
(c) â‚¹ 6,00,000
(d) â‚¹ 26,00,000

C

14. If a partner withdraws consistently at the end of each quarter for a year, average period will be â€¦â€¦â€¦ .
(a) 4.5
(b) 5.5
(c) 6.5
(d) 7.5

A

15. P and Q are partners with the profit sharing ratio of 1 : 2. They decided to change this ratio to 2 : 1 with effect from 1st April, 2021. In adjustment entry, Qâ€™s account will be â€¦â€¦ by â€¦â€¦â€¦ assuming goodwill of firm is valued at â‚¹ 15,000.
(a) debited , â‚¹ 10,000
(b) credited, â‚¹ 10,000
(c) credited, â‚¹ 5,000
(d) debited, â‚¹ 5,000

C

16. Out of the following, which is not shown under the heading â€˜Share Capitalâ€™ in a balance sheet.
(a) Subscribed capital
(b) Issued capital
(c) Reserve capital
(d) Authorised capital

C

17. Goodwill can be â€¦â€¦â€¦ .
(a) purchased
(b) self-generated
(c) Both (a) and (b)
(d) None of these

C

18. A company issued 12,500 shares and received applications for 25,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment?
(a) 2 : 1
(b) 1 : 2
(c) 1 : 1
(d) 5 : 1

B

Section – B

19. XYZ Ltd. issued 5,000 equity shares of â‚¹ 100 each at a premium of 20%. Ben who has been allotted 1,000 shares did not pay first and final call of â‚¹ 5 per share. On forfeiture of Ben shares, amount debited to securities premium reserve account will be
(a) â‚¹ 2,500
(b) â‚¹ 5,000
(c) â‚¹ 7,500
(d) Nil

D

20. X, Y and Z are partners is a firm sharing profits and losses in 5 : 3 : 2 ratio. They decided to share future profits and losses in 3 : 2 : 1. Each partnerâ€™s gain/ sacrifice due to change in the ratio will be
(a) X Sacrifice-1/30, Y Gain-1/30, Z-Nil
(b) X Gain-1/30, Y-Nil, Z Sacrifice-1/130
(c) X-Nil, Y Sacrifice-1/130, Z Gain-1/130
(d) X-Nil, Y Gain-1/130, Z Sacrifice-1/130

D

21. Which of the following is true in regards to securities premium reserve?
(i) Securities premium reserve can be utilised for writing-off the preliminary expenses of the company
(ii) Securities premium reserve can be utilised for issuing bonus shares to be shareholder of the company
(iii) Securities premium reserve can be utilised for buy-back of its own shares
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (ii) and (iii)
(d) All of these

D

22. Assertion (A) Gaining ratio is the ratio in which one or mare partners gain some portion of other partners share of profit.
Reason (R) New ratio plus sacrificing ratio is gaining ratio.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

C

23. A company forfeited 400 shares of â‚¹ 10 each, called up â‚¹ 9 per share, paid up â‚¹ 7 per share, journal for forfeiture will be

C

24. X and Y are sharing profits and losses in the ratio of 3 : 2. They admit Z as a partner and give him 2/10th share in the profits. The new profit sharing ratio will be
(a) 12 : 8 : 5
(b) 3 : 2 : 2
(c) 3 : 2 : 5
(d) 2 : 1 : 2

A

25. At the time of admission, increase in the value of liabilities is â€¦â€¦â€¦ .
(a) debited to revaluation account
(b) credit to revaluation account
(c) credited to partnerâ€™s capital account
(d) debited to partnerâ€™s capital account

A

26. Goodwill of firm is â‚¹ 53,750. Find the number of yearsâ€™ purchased if the average profits are â‚¹ 21,500.
(a) 1
(b) 1.5
(c) 2
(d) 2.5

D

27. X and Y were partners in a firm sharing profits in the ratio of 3 : 2. Naina was admitted with 1/6th share in the profits of the firm. At the time of admission, workmenâ€™s  compensation reserve appeared in the balance sheet of the firm at â‚¹ 16,000. The claim on account of workmenâ€™s compensation was determined at â‚¹ 20,000. Excess claim of
(a) â‚¹ 4,000 will be credited to revaluation account
(b) â‚¹ 4,000 will be debited to revaluation account
(c) â‚¹ 4,000 will be credited to old partnerâ€™s capital account
(d) â‚¹ 4,000 will be debited to old partnerâ€™s capital account

B

28. Assertion (A) Partnership firm has no separate legal entity.
Reason (R) Partnership firm is affected by the retirement, death or insolvency of its partners.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

A

29. If vendors are issued fully paid shares of â‚¹ 62,500 in consideration of net assets of â‚¹ 75,000, the balance
(a) â‚¹ 12,500 will be credited to statement of profit and loss
(b) â‚¹ 12,500 will be credited to goodwill account
(c) â‚¹ 12,500 will be credited to securities premium reserve account
(d) â‚¹ 12,500 will be credited to capital reserve account

C

30. P and Q were partners in a firm. They share profits in the ratio of 2 : 3. Their capital account balance as on 1st April, 2020 was â‚¹ 5,00,000 and â‚¹ 10,00,000. Additional capital
introduced by them, P = â‚¹ 1,50,000, Q = â‚¹ 1,00,000. Entry for the additional capital introduced is
Bank A/c                     Dr   X
To Pâ€™s Capital A/c               Y
To Qâ€™s Capital A/c              Z
Here X, Y, Z are
(a) â‚¹ 2,50,000, â‚¹ 1,50,000, â‚¹ 1,00,000
(b) â‚¹ 2,50,000, â‚¹ 1,00,000, â‚¹ 1,50,000
(c) â‚¹ 5,00,000, â‚¹ 3,00,000, â‚¹ 2,00,000
(d) â‚¹ 5,00,000, â‚¹ 2,00,000, â‚¹ 3,00,000

A

31. X and Y contribute â‚¹ 50,000 and â‚¹ 30,000 respectively in a partnership firm by way of capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 : 2. The profit at the end of the year was â‚¹ 1,400 before allowing interest on capital. If there is a clear agreement that interest on capital will be paid even in case of loss, then Yâ€™s share of profit or loss will be
(a) profit â‚¹ 3,000
(b) profit â‚¹ 2,000
(c) loss â‚¹ 3,000
(d) loss â‚¹ 2,000

D

32. Assertion (A) A private company restricts the right to transfer its shares.
Reason (R) A private company limits the number of its members to 300.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

C

33. If a shareholder does not pay his dues on allotment, for the amount due, there will be a
(a) credit balance in the shares allotment account
(b) debit balance in the shares forfeiture account
(c) credit balance in the shares forfeiture account
(d) debit balance in the shares allotment account

D

34. P has given guarantee to Q for minimumâ‚¹ 5,000 profit. At year end, the firm suffered loss and Qâ€™s share in the loss was â‚¹ 1,000. Calculate amount of deficiency to be borne by P.
(a) â‚¹ 1,000
(b) â‚¹ 5,000
(c) â‚¹ 6,000
(d) None of these

C

35. If applicants for 40,000 shares were allotted 30,000 shares on pro-rata basis, the shareholder who was allotted â‚¹ 600 shares must have applied for
(a) â‚¹ 450 shares
(b) â‚¹ 1,800 shares
(c) â‚¹ 800 shares
(d) â‚¹ 2,400 shares

C

36. Commission to partners will be given from â€¦â€¦â€¦ in a partnership.
(a) current yearâ€™s profit
(b) reserves
(c) goodwill
(d) All of these

A

Section – C

Raju and Bablu are partners in a firm engaged in the production and sale of woolen clothing. This capital contribution was â‚¹ 5,00,000 each with profit sharing ratio of 1 : 1. Gita joined as a partner without capital for 1/3rd share in the profits of the firm. She is blind by birth but having good management qualities.
They decided to sold products at a discount of 15% on maximum retail price to the people living below poverty line. They also decided to open new retail shops in the naxal affected areas of the country.
New jobs of sales persons will be reserved for the girls belonging to scheduled castes and scheduled tribes.
The new partnership agreement provides for the following.
(i) 10% of the trading profit will be donated to Prime Minister Relief Fund.
(ii) 10% of the trading profit will be donated to National Blind Relief Fund.
(iii) Raju withdrew â‚¹ 2,500 per month at the beginning of every month and Bablu withdrew â‚¹ 2,500 per month at the end of every month. Interest is charged on Rajuâ€™s and Babluâ€™s  drawings @ 10% p.a.
(iv)10% of distributable profit will be transferred to Reserve Fund. Trading profit for the year 31st March, 2021 was â‚¹ 5,00,000.

37. Interest charged on Rajuâ€™s and Babluâ€™s drawing will be
(a) â‚¹ 1,375, â‚¹ 1,625
(b) â‚¹ 3,000, â‚¹ 3,000
(c) â‚¹ 1,625, â‚¹ 1,375
(d) â‚¹ 1,500, â‚¹ 1,500

C

38. Amount transferred to reserve fund will be
(a) â‚¹ 90,000
(b) â‚¹ 44,700
(c) â‚¹ 45,300
(d) â‚¹ 42,800

D

Glamour Ltd was incorporated on 1st April, 2020 with its registered office at Mumbai. It issued 10,000 shares of â‚¹ 100 per share for public subscriptions at 20% premium. Amount  payable as under on application â‚¹ 40 per share (including 10% premium), on allotment â‚¹ 40 per share (excluding 10% premium), on first and final call Balance.
Application were received for 15,000 shares. Allotment was made to 12,000 applicants. All money due was duly received except from a shareholder Vivek to whom 2,400 shares were  allotted. He failed to pay allotment and calls. His shares were forfeited.

39. Excess application money adjusted on allotment is â€¦â€¦â€¦ .
(a) â‚¹ 2,00,000
(b) â‚¹ 120,000
(c) â‚¹ 80,000
(d) None of these

C

40. What is the amount received on allotment?
(a) â‚¹ 3,19,200
(b) â‚¹ 4,20,000
(c) â‚¹ 1,00,800
(d) â‚¹ 80,000

A

41. When forfeited shares are reissued, balance of share forfeiture money will be transferred to â€¦â€¦â€¦ .
(a) general reserve
(b) capital reserve
(c) reserve capital

B

Part – II
Section – A

42. Inventory Turnover Ratio is
(a) Average Inventory /Revenue from Operations
(b) Average Inventory/Cost of Revenue from Operations
(c) Cost of Revenue from Operations/Average Inventory
(d) Gross Profit/Average Inventory

C

43. â€¦â€¦â€¦ + operating profit ratio (%) = 100
(a) Operating ratio (%)
(b) Gross profit ratio
(c) Net profit ratio
(d) None of these

A

44. Share capital of a compnay consists of 10,00,000 shares of â‚¹ 10 each, â‚¹ 8 called-up. All the shareholders have duly paid the called-up amount. Share capital will be shown as
(a) subscribed and fully paid
(b) subscribed but not fully paid
(c) Either (a) or (b)
(d) None of these

B

45. Assertion (A) Quick ratio of a company will reduce when machinery is purchased for cash.
Reason (R) Purchase of machinery for cash will decrease the given assets, but the current liabilities remain unchanged.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

A

46. Which of the following is correct in regards to financial statement analysis?
(i) Financial statement analysis helps short-term creditors to determine whether their dues will be paid on time.
(ii) Financial statement analysis helps short-term creditors to determine when they should supply more materials to the firm.
(iii) Financial statement analysis helps short-term creditors to determine whether they should buy the shares in the firm.
(a) (ii) and (iii)
(b) Only (i)
(c) Only (iii)
(d) (i) and (iii)

B

47. Liquid ratio is equal to liquid assets divided by
(a) non-current liabilities
(b) current liabilities
(c) total liabilities
(d) contingent liabilities

B

48. Assuming that the current ratio is 2 : 1, cash paid against bills payable would
(i) increase current ratio
(ii) decrease current ratio
(iii) have no effect on current ratio
(iv) decrease gross profit ratio
(a) (i) and (iv)
(b) (ii) and (iv)
(c) (ii) and (iv)
(d) Only (i)

D

Section – B

49. Which of the following is correct?
(i) Issue of debentures against the purchase of fixed assets will decrease debt-equity ratio and increase current ratio
(ii) Issue of debentures for cash will decrease debt-equity ratio and increase current ratio
(iii) Redemption of preference shares of cash will decrease debt-equity ratio and increase current ratio
(iv) Issue of equity shares for cash will decrease debt-equity ratio and increase current ratio
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (i)
(d) Only (iv)

D

50. Assertion (A) Ratio is an arithmetical expression of relationship between two related or interdependent items.
Reason (R) Ratio is the qualitative relationship between two items/ variables.
Alterntives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

C

51. Calculate interest coverage ratio, if profit after interest and tax â‚¹ 1,05,000, rate of tax 40%, 15% debentures â‚¹ 1,50,000.
(a) 6 times
(b) 8.8 times
(c) 11 times
(d) 4 times

B

52. Assertion (A) Financial statement analysis ignore qualitative elements.
Reason (R) Financial statement analysis is confined to money matters only.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

A

53. Consider the following information.
Long-term borrowing â‚¹ 50,000        Long-term provision â‚¹ 25,000
Current liabilities â‚¹ 12,500              Non-current assets â‚¹ 9,000
Current assets â‚¹ 22,500
Proprietary ratio will be
(a) 22.2%
(b) 21.8%
(c) 36%
(d) None of these

A

54. Match the column.

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