[1st Term] Accountancy Sample Paper class 12 CBSE (2021-22)
Looking for 1st Term Accountancy Sample Paper of Class 12 for CBSE Board.
CBSE Sample Question Paper (Term – 1) 2021-22
Let’s Practice
Part – I (Section – A)
Goodwill may be defined as excess amount paid for a business over and above its __ .
a) Tangible Assets
b) Current Assets
c) Total assets
d) Net Worth
Ans – d)
Share Application/Share Allotment A/c is a:
a) Real A/c
b) Nominal A/c
c) Personal A/c
d) None of these
Ans – c)
The minimum subscription as per SEBI guidelines while issuing share is __ .
a) 50%
b) at least 50%
c) 90%
d) None of these
Ans – c)
On foreiture of shares, Share Capital A/c is debited with _ .
a) face value of sahres
b) market value of shares
c) Called up value of shares
d) Paid up value of shares
Ans – c)
If the amount of premium on shares to be forfeited is received partially, then Securities Premium Reserve A/c is debited with _
at the time of forfeiture of shares.
a) full amount of premium
b) amount of premium received
c) amount of premium not received
d) None of these
Ans – c)
A and B are partners in a firm sharing profits in ratio of 3:2. C is admitted as a partner. New profit sharing ratio of A, B
and C is 4:3:2. The sacrificing ratio of partners will be _ .
a) 7:3
b) 4:3
c) 3:2
d) 3:7
Ans – a)
Interest on Capital to partners at the agreed rate will be paid out of __ .
a) Profits of the current year
b) Accumulated Profits
c) Reserves
d) Average Profit of 3 years
Ans – a)
Unrecorded liabilities during course of admission are debited to _ .
a) Partner’s Current A/c
b) Partner’s Capital A/c
c) Revaluation A/c
d) Realisation A/c
Ans – c)
X, Y and Z are partners in a firm sharing profits and losses in ratio of 6:4:1. X guaranteed a minimum profit share of Z as
₹15,000. The net profit of the firm for the year ending 31st March, 2020 was ₹1,10,000. X’s share of profit will be __ .
a) ₹60,000
b) ₹55,000
c) ₹40,000
d) ₹35,000
Ans – b)
While preparing Balance Sheet of new firm after admission of a partner, assets are shown in new Balance Sheet at __ .
a) Historical cost
b) market cost
c) revalued value
d) None of these
Ans – c)
Pick the odd out of the followings __ .
a) Rent paid to Partner
b) Manager’s Commission
c) Interest on Partner’s Capital
d) Interest on Partner’s Loan
Ans – c)
A and B are partners in a firm sharing profits and losses equally. They decided to share profits in the ratio of 3:2 in future. A’s sacrifice
/gain will be __ .
a) sacrifice 1/10
b) Gain 1/10
c) Sacrifice 3/5
d) Gain 3/5
Ans – b)
Capital employed of a firm is ₹3,00,000. The annual profit earned by the firm during 2019 is ₹48,000. The money could be invested
in a bank for 5 years at 10% p.a. Considering 2% as fair compensation for the risk involved in the business, the goodwill of the firm on the
basis of capitalisation will be _ .
a) ₹1,00,000
b) ₹1,80,000
c) ₹1,20,000
d) None of these
Ans – a)
Share can not be issued at a discount but __ equity shares can be issued at discount as per Companies Act, 2013.
a) ESOP
b) Sweat
c) Preferential allotment of
d) Private placement of
Ans – b)
Securities Premium Reserve can be used for ____ .
a) payment of final dividend
b) payment of interim dividend
c) issuing shares to promoters
d) buy back of its equity shares
Ans – d)
X Ltd., purchased building from Y Ltd from ₹36,00,000. Company issued _ shares of ₹100 each to vendor at a premium of 20%.
a) 30,000
b) 36,000
c) 45,000
d) None of these
Ans – a)
A firm has assets worth ₹3,10,000 including ₹10,000 as fictitious assets. It has outside liabilities of ₹1,30,000. Average profit of the firm
is ₹30,000 and normal rate of return is 10%. Its goodwill based on 2 year’s purchase of Super Profit will be ₹_ .
a) 24,000
b) 26,000
c) 12,000
d) 13,000
Ans – b)
If any partner has advanced loan to the firm besides his capital, he has to right to receive interest on loan __ .
a) at the agreed rate
b) at 6% p.a. in the absence of written agreement
c) at the agreed rate or at 6% p.a. in the absence of partnership deed.
d) at the market rate
Ans – c)
Section – B
Heena and Sudha share profits and losses equally. Their capitals were ₹1,20,000 and ₹80,000 respectively. There was also a balance of ₹60,000 in General Reserve and revaluation gain amounted to ₹15,000. They admit their friend, Teena with 1/5th share. Teena brings ₹90,000 as capital. calculate the amount of goodwill of the firm_____________ .
a) ₹85,000
b) ₹1,00,000
c) ₹20,000
d) None of these
Ans – a)
X and Y are partners in a firm having capital balances of ₹60,000 and ₹40,000 respectively. C is admitted as partner for 1/5th share in the profit. If C brought proportionate capital in the firm, his share of capital would be _ .
a) ₹25,000
b) ₹20,000
c) ₹30,000
d) None of these
Ans – a)
X and Y are partner sharing profits in the ratio of 5:3. They admitted Z as a new partner for 1/5th share in profit. If he brought ₹1,00,000 as his capital and ₹60,000 as goodwill, the capital of each partner, taking Z’s capital as base will be ________.
a) ₹2,50,000, ₹1,50,000 and ₹1,00,000
b) ₹3,00,000, ₹2,00,000 and ₹1,00,000
c) ₹2,20,000, ₹1,32,000 and ₹88,000
d) ₹2,22,000, ₹1,48,000 and ₹74,000
Ans – a)
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): Sacrificing Ratio = Old Profit Ratio – New Profit Ratio of a partner
Reason (R): A partner whose share of profit has reduced due to change in profit sharing ratio is called a sacrificing partner.
In the context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – b)
Amit and Sumit are partners in a firm with the following balances in their capital and current accounts:
| Capital A/cs | Current A/cs | |
| Amit | ₹3,00,000 | ₹60,000 |
| Sumit | ₹2,00,000 | ₹10,000 (Dr) |
The profit earned by the firm for the year ending 31st March, 2020 was ₹80,000. Find the value of goodwill of the firm if normal rate of return is 10%.
Options
a) ₹2,40,000
b) ₹2,50,000
c) ₹25,000
d) ₹24,000
Ans – b)
X, Y and Z are partners in a firm having fixed capitals of ₹3,00,000; ₹2,00,000 and ₹1,00,000 respectively. Interest on Capital payable @ 10% p.a. was omitted while distributing profits.
Identify the correct option to rectify the above Omission:
a) Dr. Z current A/c by ₹10,000 and Cr. X’s Current A/c by ₹10,000
b) Dr. Z Capital A/c by ₹ 10,000 and Crs. X’s Capital A/c by ₹10,000
c) Dr. X current A/c by ₹10,000 and Cr. Z’s Current A/c by ₹10,000
d) Dr. X capital A/c by ₹10,000 and Cr. Z’s Capital A/c by ₹10,000
Ans – a)
Partner, Q drew a fixed amount at the end of each month during 2020. If interest on drawing at 8% p.a. amounts to ₹2,200, his monthly drawing was __________ .
a) ₹ 5,500
b) ₹ 5,000
c) ₹ 6,000
d) None of these
Ans – b)
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): On admission of a partner, Workmen Compensation Fund is ₹50,000 but claim against it is given as ₹ 30,000 so free compensation fund be distributed among all the partners in their new profit sharing ratio.
Reason (R): Free portion of Workmen Compensation Fund belongs to old partners.
In the context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – d)
If a shareholder fails to pay Share 1st Call of ₹2 per share, there will be ____________ .
a) Dr. balance of share 1st Call
b) Cr. balance of Share 1st Call
c) Dr. balance of Share Capital
d) Cr. balance of Share Capital
Ans – a)
X Ltd. issued 10,000 equity shares of ₹10 each at a premium of 20%, Ram did not pay share first call of ₹ 4 (including ₹1 as premium). At the time
of forfeiture of shares, securities premium reserve A/c will be debited by __ .
a) ₹ 2
b) ₹ 1
c) ₹ 4
d) ₹ 10
Ans – b)
X and Y are partners sharing profits in the ratio of 3:2. Z is admitted as a new partner for 1/3rd share in the profit, 1/3rd share of Z is gifted to him by X and balance share was given to him by X and Y equally. Their new profit sharing ratio will be _______.
a) 17:13:15
b) 22:8:15
c) 6:4:5
d) 400
Ans – a)
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): When a company makes an offer to public in general to subscribe the shares for the first time it is called Initial Public Offer (I.P.O).
Reason (R): Further public subscription of shares are called Follow Public Offer (F.P.O)
In the Context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – b)
Ram withdrew a fixed amount at the beginning of each Quarter. If interest on his drawings during 2020-21 @ 10% p.a. amounts to ₹ 6,000, his quarterly drawing was ___________ .
a) ₹24,000
b) ₹8,000
c) ₹40,000
d) ₹30,000
Ans – a)
A company forfeited 400 shares of ₹10 each for the non payment of ₹ 3 on Share 1st Call and ₹ 2 on share Final call. It reissued 300 shares at a 10% discount per share. The amount transferred to Capital Reserve will be ₹ __________ .
a) 1,500
b) 1,200
c) 2,000
d) 1,600
Ans – b)
On reissue of forfeited shares, the amount of discount or loss on reissue can not exceed __ .
a) 10% of face value
b) amount not called on shares
c) the amount received on forfeiture of shares
d) the face value of shares
Ans – c)
A and B are equal partners in a firm. C advanced loan to firm @ 5% p.a. Later, he was admitted as a partner for 1/4th share in the profit. He contributed capital and goodwill share in cash. Interest on C’s Loan after admission as a partner be ____.
a) 6% p.a.
b) 5% pa.a
c) at market rate
d) no interest
Ans – b)
X Ltd issued 6,000 shares of ₹10 each payable ₹3 on application, ₹2 on allotment and balance on call. It received applications for 10,000 shares and allotment was made by the company on pro-rata basis. Money received on Share Allotment will be _______.
a) ₹ 12,000
b) ₹ 8,000
c) ₹ nil
d) ₹ 18,000
Ans – c)
Section – C
Note:- From question numbers 37 to 41, attempt any 4 questions.
Questions no. 37 and 38 are based on hypothetical situations.
Case Study
Tractor India Ltd. is registered with an authorised capital of ₹20,00,000 divided into equity shares of ₹10 each.
It took over assets of ₹ 13,00,000 and liabilities of ₹ 2,00,000 and paid the purchase consideration by issuing equity shares @ a premium of 10%.
It also issued 50,000 shares at a premium of ₹ 5 each payable ₹ 2 on application, ₹ 8 on allotment including premium and balance on first and final call. The issue was fully subscribed and all amount was received except first and final call on 500 shares allotted to Ram. His shares were forfeited. The amount of Preliminary Expenses paid was ₹ 50,000.
Select the correct option to the following questions:
a) ₹24,000
b) ₹8,000
c) ₹40,000
d) ₹30,000
Ans – a)
A company forfeited 400 shares of ₹10 each for the non payment of ₹ 3 on Share 1st Call and ₹ 2 on share Final call. It reissued 300 shares at a 10% discount per share. The amount transferred to Capital Reserve will be ₹ _______.
a) 1,500
b) 1,200
c) 2,000
d) 1,600
Ans – b)
On reissue of forfeited shares, the amount of discount or loss on reissue can not exceed __ .
a) 10% of face value
b) amount not called on shares
c) the amount received on forfeiture of shares
d) the face value of shares
Ans – c)
A and B are equal partners in a firm. C advanced loan to firm @ 5% p.a. Later, he was admitted as a partner for 1/4th share in the profit. He contributed capital and goodwill share in cash. Interest on C’s Loan after admission as a partner be ______ .
a) 6% p.a.
b) 5% pa.a
c) at market rate
d) no interest
Ans – b)
X Ltd issued 6,000 shares of ₹10 each payable ₹3 on application, ₹2 on allotment and balance on call. It received applications for 10,000 shares and allotment was made by the company on pro-rata basis. Money received on Share Allotment will be ________ .
a) ₹ 12,000
b) ₹ 8,000
c) ₹ nil
d) ₹ 18,000
Ans – c)
Case Study
On 1st June, 2020, ten friends started partnership firm for selling masks in view of covid-19. All of them agreed to invest ₹ 10,000 each as their capital. The books were closed on 31st March 2020 and the following information is given to you:
| Particulars | Amount (₹) |
| Sale of Marks Cost of Goods Sold Remuneration of each partner Rent to a partner Manager’s Commission Closing Stock as on 31st March 2021 9% Bank Loan (1st August 2020) A partner, Ram also advanced Loan on 1st December, 2020 | 5,00,000 3,00,000 1,000 pm 2,000 pm 8,000 12,000 1,00,000 50,000 |
Compute the amount of profit to be transferred to Profit and Loss Appropriatoin A/c
a) ₹ 65,000
b) ₹ 1,85,000
c) ₹ 1,65,000
d) ₹ 1,77,000
Ans – c)
Interest paid on Ram’s Loan will be __ .
a) ₹ 3,000
b) ₹ 1,000
c) ₹ 1,667
d) ₹ 5,000
ans – b)
Rent to Partner has not yet been paid, it will be credited to _ .
a) his capital A/c
b) his current A/c
c) Rent Outstanding A/c
d) None of these
Ans – c)
Part – II
Section – A
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): In a statement of Profit and Loss, Change in Inventories of Work in Progress, Finished Goods and Stock in Trade refers to Opening Stock – Closing Stock.
Reason (R): It is closing stock – Opening Stock.
In the context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – c)
General Profitability Ratios include ________________________ .
i) Gross Profit Ratio
ii) Operating Profit Ratio
iii) Net Profit Ratio
iv) Return on Investment
Options are:
a) i, ii, and iv
b) i, ii, and iii
c) ii, iii, and iv
d) i, ii, and iv
Ans – b)
Activity Ratios include _______.
i) Inventory Turnover Ratio
ii) ROI
iii) Trade Receivables Turnover Ratio
iv) Working Capital Turnover Ratio
Options are:
a) i, ii, and iii
b) i, iii, and iv
c) ii, iii, and iv
d) i, ii, and iv
Ans – b)
If the Debt-Equity Ratio of a company is 2:1, which options will increase the ratio:
i) Issue of Debentures
ii) Conversion of Debentures into Equity Shares
iii) Sale of Fixed Assets for ₹ 30,000 (Book Value ₹ 40,000)
iv) Redemption of Debentures
Options are:
a) i, and ii
b) ii and iii
c) iii and iv
d) i and iii
Ans – d)
Match the items given in Column I with the heading/sub-headings of Balance Sheet as explained in Schedule III of Companies Act, 2013.
| Column – I | Column – II |
| i) Calls in advance ii) Stores and Spares iii) Prepaid Expenses iv) Computer Software v) Vehicles | a) Fixed Assets – Intangible b) Other Current Assets c) Fixed Assets – Tangible d) Other Current Liabilities e) Inventories |
Options
a) i – b, ii – e, iii – d, iv – c, and v – a
b) i – d, ii – e, iii – b, iv – c, v – a
c) i – d, ii – e, iii – b, iv – a, v – c
d) i – b, ii – a, iii – d, iv – c, v – e
Ans – c)
Which of the following are the tools of Vertical Analysis?
i) Ratio Analysis
ii) Comparative Statements
iii) i and iii
iv) None of these
Options are:
a) ii and iii
b) i and ii
c) i and iii
d) None of these
Ans – c)
Working Capital refers to ________ .
a) Cash and Bank Balance
b) Fixed Assets – Current Assets
c) Current Assets – Current Liabilities
d) Shareholder’s Fund – Long term Debts
Ans – c)
Section – B
Which of the following transaction will reduce the Current Ratio but increase the Liquid Ratio?
a) Sale of Goods at par
b) Sale of Goods at a loss
c) Sale of Goods at a profit
d) Repayment of Debentures
Ans – b)
If Net Revenue from Operation of a Company is ₹ 20,00,000; Gross Profit is ₹ 9,00,000; Operating Expenses are ₹ 3,00,000 and Loss on Sale of Fixed Assets is ₹ 1,00,000. Its Operating Profit Ratio will be _______ .
a) 25%
b) 30%
c) 45%
d) 70%
Ans – b)
In ______ Analysis of Financial Statements, analysis uses only single set of Financial Statements in the process of analysis.
a) Horizontal
b) Vertical
c) Dynamic
d) External
Ans – b)
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): The inventory Turnover Ratio will decrease with the increase in value of the closing stock.
Reason (R): Increase in the value of the closing stock will increase the average stock.
In the context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – a)
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): If Average collection Period from Trade Receivables is 14 months, however, Operating Cycle is 15 months, it will be shown under, Current Assets.
Reason (R): Collection of Payment is expected within Operating Cycle.
In the context of the above two statements, which of the following is correct?
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and R is not the correct explanation of Assertion (A)
c) A is true and R is false
d) Both A and R are false
Ans – a)
The current Ratio of X Ltd. is 2.4:1. Which of the option will reduce the ratio?
i) Pay Bills Payable
ii) Purchase Goods on Credit
iii) Take Bank Overdraft
Options are:
a) i) and ii)
b) ii) and iii)
c) i) and iii)
d) None of the above
Ans – b)
Balance Sheet of a company is drawn as per Companies Act, 2013, vide __ .
a) Schedule I, Table F
b) Schedule III, Part – I
c) Schedule III, Part – II
d) Schedule III, Part – III
Ans – b)
Ans – b)
