Class 12 PT II Question Paper 2025-26 Accountancy

CBSE CLASS 12
PT II Question Paper
Session 2025-26

ACCOUNTANCY

Exam CBSE Class 12
Subject Accountancy
Session 2025-26
Document Type PT II Question Paper

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Question Paper
SECOND UNIT TEST
SESSION: 2025-2026 ag
CLASS – XII MAXIMUM MARKS- 40
SUBJECT – ACCOUNTANCY (055) TIME – 1HOUR 30 MINS
General Instructions:
(a)� This question paper contains two parts PART A & PART B, 18 questions and contains 6 pages.
(b)�Marks are indicated against each question.
(c)� Answers to the Question no 1 to 7 and 11 to 14 carrying 1 mark each.

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(d)�Answers to the Question no 8, 15 and 16 carrying 3 marks each.

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(e)� Answers to the Question no 9 & 17 carrying 4marks each.

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(f)� Answers to the Question no 10 & 18 carrying 6 marks each.

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(g)�Attempt all parts of the question together.
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1. Ajay, Vijay and Sanjay were partners in a firm sharing profits and losses in the ratio of 1
7:5:8. Vijay dies on 28th August, 2025. His share in the profits of the firm till the date of
his death was determined at ₹75,000. It will be debited to which of the following
accounts
A)�Profit & Loss Suspense Account.
B)� Profit & Loss Account.
C)� Profit & Loss Appropriation Account.
D)�Profit & Loss Adjustment Account.
2. Assertion (A): General Reserve is not distributed among the old partners but is carried 1

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forward in the Balance Sheet prepared after admission of a partner.
Reason (R): General Reserve is set aside out of past profits and therefore, it is not

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distributed among old partners.

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A)� Assertion (A) and Reason(R) are correct but the Reason(R) is not the correct

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explanation of Assertion (A).
B) Both, Assertion (A) and Reason(R) are correct and Reason(R) is the correct
explanation of Assertion (A).
C) Assertion (A) is correct but the Reason(R) is not the correct.
D)� Both, Assertion (A) and Reason(R) are incorrect.
OR
X and Y are partners with capitals of ₹39,000 and ₹27,000. They admit Z as a partner
with 1/5th share in profit of the firm. Z brings ₹24,000 as capital. What is the value of
hidden goodwill of the firm?

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A)� ₹ 60,000

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B) ₹ 30,000

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C) ₹ 70,000

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D)� ₹ 42,000
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3. A, B and C are partners sharing profits and losses in the ratio of 5:4:3. C retires and is 1

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credited for ₹9,000 as goodwill. How much will be debited to A in respect of goodwill

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A)�₹20,000.
B)� ₹16,000.
C)� ₹5,000.
D)�₹4,000.
OR
A, B and C were partners sharing profits and losses in the ratio of 4:3:1. B retires and
gives her share of profit to A for ₹3,600 and to C for ₹3,000. The gaining ratio will be:

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A)�4:5

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B)� 2:1

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C)� 6:5

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D)�4:1

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4. X and Y are partners sharing profits in the ratio of 3:2. They admitted Z as a new partner 1
by giving him 1/3rd share in future profits. The new profit sharing ratio will be :
A)�12:8:5
B)� 5:5:12
C)� 8:12:5
D)�6:4:5
From the given hypothetical situation, answer Q5 – Q7
Green Earth Ventures, a partnership firm, was formed by three partners: Amit, Banti, and
Chandan. The firm was established to undertake a specific venture: "Installation and
Maintenance of Solar Power Plants in Rural Areas". After completing the venture, the
partners decided to dissolve the firm.
The partnership deed specifies that Section 48 of the Indian Partnership Act, 1932, will
govern the settlement of accounts upon dissolution.
During the dissolution process, Amit paid ₹3,000 towards dissolution expenses, which
were to be borne by Chandan.
5. Choose the correct mode of dissolution for the above case: 1
A)�Dissolution by agreement
B)� Dissolution by notice
C)� Dissolution by completion of the venture
D)�Compulsory dissolution
6. What is the correct sequence for settlement of accounts when there is an application of 1
assets under Section 48(b)?
A)�Partner's capital, partner's loans, third-party debts.
B)� Third-party debts, partner's capital, partners loans.
C)� Third-party debts, partner's loans, partner's capital.
D)�Partner's loans, third-party debts, partner's capital.
7. Choose the correct entry for the above realization expenses: 1
A)� Realisation A/c Dr. ₹3,000 To Amit's Capital A/c ₹3,000
B) Chandan's Capital A/c Dr. ₹3,000 To Realisation A/c ₹3,000
C) Realisation A/c Dr. ₹3,000 To Cash A/c ₹3,000
D)� Chandan’s Capital A/c Dr. ₹3,000 To Amit’s Capital A/c ₹3,000
8. Pass necessary journal entries for the following transactions on the dissolution of a 3
partnership firm of Rita and Gita on 31st March 2025 after the various assets other than
cash and third-party liabilities have been transferred to the Realisation Account.
(a)�Creditors of ₹90,000 took over land and building of ₹2,00,000 in full settlement of
their claim.
(b)�Gita took over debtors amounting to ₹50,000 at ₹40,000.
(c)�Realisation expenses ₹1,800 were paid by Gita.
OR
P, Q and R share profits in the ratio of 5 : 3 : 2. S was admitted into partnership with
₹30,000 as his capital. S is entitled for 1/5th share in profits which he acquires equally
from P, Q and R. Goodwill of the firm is valued at three years’ purchase of last four
years’ average profits. The profits of the last four years were ₹32,000; ₹38,000; ₹35,000
and ₹31,000 respectively. S cannot bring goodwill in cash. Goodwill already appears in
the books at ₹50,000. Give journal entries for the treatment of goodwill in the firm.
9. Rupesh, Hardeep and Sahil were partners in a firm sharing profits in the ratio of 2: 2: 1. 4
The firm closes its books on 31st March every year. On 30th June, 2025 Hardeep died.
The partnership deed provided that on the death of a partner his executors will be entitled
to the following:
(a)�Balance in his capital account which amounted to ₹1,15,000 and interest on capital
till date of death which amounted to ₹5,000.
(b)�His share in the profits of the firm till the date of his death amounted to ₹20,000.
(c)�His share in the goodwill of the firm. The goodwill of the firm on Hardeep’s death
was valued at ₹1,50,000.
(d)�Loan to Hardeep amounted ₹20,000.

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It was agreed that the amount will be paid to his executor in three equal yearly

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instalments with interest @10% p.a. The first instalment was to be paid on 30th June,
2025.
Prepare Hardeep’s Capital Account.
10. J, K and L are partners in a firm, sharing profits and losses in the ratio 5:3:2 respectively. 6
The Balance Sheet of the firm as on 31st March 2025.
Liabilities Amt. (₹) Assets Amt.(₹)
Creditors 26,500 Bank 10,000
Outstanding Expenses 3,500 Debtors 45,000
General Reserve 15,000 Stock 55,000

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Capital: Fixed Assets 1,25,000

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J 1,00,000

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K 50,000

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L 40,000

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2,35,000 2,35,000
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K retires on 1 April, 2025 with following conditions:
(a)�Fixed Assets are to be appreciated by 20%.
(b)�Stock overvalued by 10%.
(c)�Goodwill of the firm was valued at ₹75,000.
(d)�K is to be paid in cash brought by J and L in such a way to make their capitals
propotionate to their profit sharing ratio 3:2.
Prepare Partners capital Account and Balance Sheet.
OR

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X & Y were partners in a firm sharing profits and losses in the ratio of 3:1.Their Balance
Sheet as at 31st March 2025 was as follows:

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Balance Sheet of X&Y

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31st March 2025
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Liabilities ₹ Assets ₹
Capital Accounts: Machinery 4,70,000
X 3,00,000 Investment 1,10,000
Y 2,00,000 5,00,000 Debtors 1,20,000
Workmen Compensation 60,000 Less: provision for
Fund doubtful debts 10,000 1,10,000
Creditors 1,90,000 Stock 1,40,000
Employees Provident Fund 1,10,000 Cash 30,000
8,60,000 8,60,000

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On 1st April 2025, they admitted Z into partnership for ¼th share in the profits of the

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firm. Z brought ₹1,86,000 as her capital and ₹40,000 as her share of goodwill premium

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in cash. The following terms were agreed upon:

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(a)�Stock was found undervalued by ₹23,000.
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(b)�20% of the investments were taken over by Y at book value.

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(c)�Claim on account of workmen’s compensation amounted to ₹70,000, which was to be

a paid later.
(d)�Creditors included a sum of ₹27,000 which was not likely to be claimed.
Prepare Revaluation Account and Partners’ Capital Accounts on Z’s admission.
PART-B
11. When an analyst analysis the financial statements of an enterprise over a number of 1
years, the analysis is called ______________analysis.
A)�Static
B)� External

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C)� Horizontal

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D)�Vertical

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12. The ratio of Current Assets (₹6,00,000) to Current Liabilities (₹4,00,000) is 1.5:1. The
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accountant of the firm is interested in maintaining a Current Ratio of 2:1, by paying a

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part of the current liabilities. How much amount of current liabilities should be paid so
the current ratio at the level 2:1 is maintained?
A)� ₹ 4,00,000
B) ₹ 3,00,000
C) ₹ 2,00,000
D)� ₹ 1,00,000
OR
Assertion (A): Higher the Gross Profit ratio, higher will be the profitability of the
company.
Reason (R): Profitability Ratio includes not only Gross Profit Ratio and net profit ratio
but also includes all ratios assessing the profitability.
Choose the correct option:
A)�Both Assertion (A) and Reason(R) are correct but the Reason(R) is not the correct
explanation of Assertion (A).
B) Both Assertion (A) and Reason(R) are correct and Reason(R) is the correct
explanation of Assertion (A).
C) Assertion (A) is correct but the Reason(R) is not the correct.
D)� Both, Assertion (A) and Reason(R) are incorrect.
13. Extract of Balance Sheet: 1
Equity And Liabilities 2025 (₹) 2024 (₹)
Provision For Tax 80,000 60,000
Choose the correct treatment in a Cash Flow Statement for the above transaction.
A)�Add ₹60,000 to calculate Net Profit before Tax and deduct ₹ 80,000 at end to asses
Cash Flow from Operating Activity.
B)� Add ₹80,000 to calculate Net Profit before Tax and deduct ₹ 60,000 at end to asses
Cash Flow from Operating Activity.
C)� Add ₹80,000 to calculate Net Profit before Tax and deduct ₹ 80,000 at end to asses
Cash Flow from Operating Activity.
D)�Add ₹20,000 to calculate Net Profit before Tax and deduct ₹ 20,000 at end to asses
Cash Flow from Operating Activity.
14. Cash equivalent consists of : 1
A)� Cash & Bank Balance
B) Marketable Securities
C) Short Term Investments
D)� All the above
OR
Which of the following statements is incorrect?
A)� Investments in shares are excluded from cash equivalents unless they are in
substantial cash equivalents.
B) Short-term marketable securities which can be readily converted into cash are treated
as cash equivalents
C) In case of a financial enterprise, interest received and dividend received are classified
as operating activities while dividend paid and interest paid are financing activities.
D)� Dividend tax, i.e., tax paid on dividend should be classified as financing activity
along with dividend paid.
15. Prepare Common-size Balance Sheet from the following information: 3
Particulars 31st March, 2024 31st March, 2025
(₹) (₹)
Shareholders’ Funds 12,00,000 18,00,000
Non-current Liabilities 6,00,000 6,00,000
Current Liabilities 2,00,000 6,00,000
Non-current Assets 14,00,000 21,00,000
Current Assets 6,00,0000 9,00,0000
OR

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Complete the following Comparative Statement of Profit and Loss.

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Particulars 2023-24 2024-25 Absolute Percentage
(₹) (₹) Change Change
(₹) (%)
Revenue from Operations 16,00,000 20,00,000 ……… ……
(-) Employees Benefit 8,00,000 …….. ………. 25%
Expenses
(-) Other Expenses 2,00,000 …….. (1,00,000) …..
Profit before Tax 6,00,000 …….. …….. 50%
Tax @30% ……. ……… 90,000 …..

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Profit after Tax 4,20,000 …….. 2,10,000 ……

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16. Give the major heading and sub heading (as per schedule III) for the following items to 3

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be shown in the balance sheet of a company.

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(i) Goodwill (iv) Loose tools

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(ii) Securities Premium Reserve (v) Provision for Tax
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(iii) 9% Debenture (vi) Computer Software
17. Calculate Inventory Turnover Ratio from the following information :
Revenue from Operations: ₹3,00,000
Gross Profit: 25% on cost
Opening Stock: 1/3 of Closing Stock
Closing Stock: 30% of Revenue from Operation
OR
Calculate Net Profit Ratio from the following information :
Revenue from Operations: ₹2,60,000

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Return Inward: ₹10,000
Gross Profit: ₹1,00,000

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Administrative Expenses: ₹18,000
Selling and Distribution Expenses: ₹12,000
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Interest on Debenture: ₹10,000
Loss by Fire: ₹12,500
Income from Investment: ₹2,500
18. Following are the balance sheets of GN Ltd. as on 31st March,2025 and 31st March,2024: 6
Particulars Note 31stMarch 2025 31stMarch 2024
No. (₹) (₹)
I. Equity and Liabilities
1. Shareholders’ Fund
(a)�Share Capital 7,00,000 4,00,000

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(b)�Reserve and Surplus 1 (3,20,000) (50,000)

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2. Non-Current Liabilities
Long Term Borrowings 2 4,00,000 2,00,000
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3. Current Liabilities
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1,20,000

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Total 9,50,000 6,70,000
II. Assets
1. Non Current Assets
(a)� Property, Plant & Equipment
-�Tangible Assets 3 5,00,000 3,00,000
(b)� Non Current Investments 1,40,000 2,00,000
2. Current Assets
Inventory 1,00,000 50,000
Debtors 1,70,000 1,00,000

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Cash & Cash Equivalents 40,000 20,000
Total 9,50,000 6,70,000
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Notes to Accounts : 31st March 2025 31st March 2024
(₹) (₹)
1: Reserve and Surplus
Statement of Profit & Loss (3,20,000) (50,000)
2: Long Term Borrowings
9% Debenture 4,00,000 2,00,000
3: Tangible Assets
Machinery 5,00,000 3,00,000

Additional Information:
(a)� A piece of machinery, costing ₹70,000 on which depreciation was charged ₹40,000
sold for ₹30,000.
(b)�During the year, depreciation charged on fixed assets was ₹1,40,000.
Prepare Cash Flow Statement.
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