MBOSE Class 12 Question Paper 2023 for Accountancy

Total No. of Printed Pages—16
HS/XII/Com/Ac/23

2023

ACCOUNTANCY

( Commerce )

Full Marks : 80

Time : 3 hours

The figures in the margin indicate full marks for the questions

General Instructions :
(i) This question paper contains two Parts—A and B.
(ii) Part—A and Part—B are compulsory for all candidates.
(iii) All parts of the questions should be attempted at one
place.

PART—A
( Accounting for Partnership Firms and Companies )
( Marks : 60 )

1. Choose and write the correct answer (any seven) : 1×7=7

(a) Partners are not entitled to receive _____ in the
absence of partnership agreement.

(i) Salaries

(ii) Interest on Capital

(iii) Commission

(iv) All of the above

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(b) Profit or Loss on Revaluation Account at the time of
admission is transferred to _____ Partners’
Capital Account.

(i) old

(ii) new

(iii) all

(iv) continuing

(c) The old profit sharing ratio among Rajender, Satish
and Tejpal was 2 : 2 : 1. The new profit sharing ratio
after Satish’s retirement is 3 : 2. The gaining ratio is

(i) 3 : 2

(ii) 2 : 1

(iii) 1 : 1

(iv) 2 : 2

(d) Capital Reserve arises if shares are

(i) issued

(ii) forfeited

(iii) forfeited and reissued

(iv) All of the above

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(e) On dissolution of the firm, Partners’ Capital Accounts
are closed through

(i) Realization Account

(ii) Drawings Account

(iii) Bank Account

(iv) Loan Account

(f) Shareholders get

(i) interest

(ii) dividend

(iii) commission

(iv) fees

(g) The portion of the capital which can be called up only
on the winding up of the company is called

(i) Authorized Capital

(ii) Uncalled Capital

(iii) Reserve Capital

(iv) Issued Capital

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(h) Right issue of shares is issued to

(i) Directors

(ii) Employees

(iii) Existing Shareholders

(iv) Public

(i) The written document containing terms and
conditions of partnership is known as

(i) Partnership Contract

(ii) Agreement

(iii) Partnership Deed

(iv) None of the above

(j) Goodwill already appearing in the Balance Sheet at
the time of retirement of a partner is transferred to

(i) New Partners’ Capital Account

(ii) All Partners’ Capital Account

(iii) Revaluation Account

(iv) None of the above

2. Answer any seven of the following questions : 1×7=7

(a) What is forfeiture of shares?

(b) What do you mean by Issue of Debentures in
consideration other than cash?

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(c) Give one point of difference between Sacrificing Ratio
and Gaining Ratio.

(d) Name one situation where reconstitution of
partnership takes place.

(e) On what occasion sacrificing ratio is used?

(f) What is over-subscription of shares?

(g) What do you mean by Redemption of Debentures?

(h) What is Realization Account?

3. Ram, Raj and George are partners sharing profits in the
ratio of 5 : 3 : 2. According to the partnership agreement,
George is to get a minimum amount of R 10,000 as his
share of profits every year. The net profit for the year 2021
amounted to R 40,000.

Prepare the Profit & Loss Appropriation Account. 3

Or
P and Q are partners in a firm sharing profits and losses
in the ratio of 3 : 2. Their capitals were R 60,000 and
R 40,000 as on 1st January, 2021. During the year they
earned a profit of R 30,000. According to the partnership
deed, both the partners are entitled to R 1,000 per month
as salary and 5% interest on their capital. They are also to
be charged an interest of 5% on their drawings
irrespective of the period, which is R 12,000 for P and
R 8,000 for Q.

Prepare Profit & Loss Appropriation Account.

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4. National Heavy Chemicals Ltd. is registered with
an authorized capital of R 30,00,000 divided
into 300000 Equity Shares of R 10 each. The company
issued 200000 Equity Shares and the amount is
payable as follows :
On application—R 4
On allotment—R 3
On final call—Balance
The issue was fully subscribed and all the money received
except the final call on 2000 shares.
Present the ‘share capital’ in the Balance Sheet of the
company as per Schedule III, Part I of the Companies Act,
2013. Also prepare ‘Notes to Accounts’ for the same. 3
Or
The directors of a company forfeited 100 shares of R 10
each fully called up for non-payment of first call of R 2 per
share and final call of R 3 per share. 80 of these shares
were subsequently reissued at R 6 per share fully paid up.
Pass the necessary Journal Entries to record the above
transactions.

5. National Packaging Company purchased assets of the
value of R 1,90,000 from another company and agreed to
make the payment of purchase consideration by issuing
2000, 10% debentures of R 100 each at a discount of 5%.
Record necessary Journal Entries. 3

Or
Rai Ltd. purchased assets of the book value of R 2,20,000
from another company and agreed to make the payment
of purchase consideration by issuing 2000, 10%
debentures of R 100 each at a premium of 10%.
Pass necessary Journal Entries.

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( 7 )

6. A firm has earned R 1,50,000 as average profit for the last
few years. Normal rate of return in the class of business is
15%. Find out goodwill according to capitalization of
super profit method, if the value of net assets amounts to
R 8,00,000. 3

7. Pass the Journal Entries to record the issue of debentures
in the following cases : 4

(i) 5000, 15% debentures of R 100 each issued at a
discount of 5% and redeemable at par

(ii) 10000, 15% debentures of R 100 each issued at a
premium of 10% and redeemable at premium of 5%

8. A and B are partners sharing profits in the ratio of 3 : 2.
Their books showed goodwill at R 19,000. C is admitted
for 1th share of profits and brings R 95,000 as his capital
4
but is not able to bring his share of goodwill R 28,500.

Give necessary Journal Entries. 4

9. A, B and C carried on business in partnership sharing
profits and losses in the proportion of 3 : 2 : 1. Their
capitals were as under as per the Balance Sheet as on
30th June, 2021 :
A—R 30,000
B—R 20,000
C—R 15,000

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( 8 )

On 31st March, 2022 C died, and you are instructed to
prepare an account for presentation to his executors
having regard to the following facts :

(i) Interest on Capital @ 12% per annum

(ii) C’s drawings from 1st July, 2021 to the date of his
death amounted to R 4,500

(iii) C’s share of profits for the portion of the current
financial year for which he lived was to be taken at
the sum calculated on the average of the last three
completed years and goodwill was to be raised on the
basis of two years’ purchase of the average profit of
those three years. The annual profit were R 19,000;
R 16,000 and R 19,000 respectively

Prepare C’s Capital Account. 4

10. The Balance Sheet of a firm on 30th June, 2022 was as
follows :
Balance Sheet
as on 30th June, 2022

Liabilities R Assets R
Sundry Creditors 14,000 Machinery 10,580
Reserve 500 Stock 4,740
Capital A/cs : Debtors 5,540
Sobers 4,000 Cash at Bank 640
Solomon 3,000 7,000

21,500 21,500

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The firm was dissolved on the above date and R 19,500
was realized from all assets except Cash at Bank.
Creditors were fully paid. The cost of winding up came to
R 440.
Sobers and Solomon shared profits in the ratio of 2 : 1
respectively.
Prepare Realization Account, Capital Accounts of partners
and Bank Account. 6

Or
A, B and C decided to dissolve the partnership. The
position as on 31st December, 2022, the date of
dissolution, was as follows :

Balance Sheet
as on 31st December, 2022
Liabilities R Assets R
Creditors 2,750 Furniture 50
A’s Loan A/c 300 Stock 1,750
Capital A/cs : Debtors 2,400
A 1,000 Bills Receivable 300
B 500 Cash 100
C 50 1,550
4,600 4,600

They shared profits and losses in the ratio of A— 1; B— 3
2 10
and C— 1. R 200 of the debtors proved bad; the Bills
5
Receivable were realized in full; the stock realized R 1,700;
furniture was taken over by B at book value and the
expenses of realization amounted to R 200.
Prepare Realization Account, Partners’ Capital Account
and Cash Account.

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( 10 )

11. Given below is the Balance Sheet of A and B, who are
carrying on partnership business as on March 31, 2022.
A and B share profits and losses in the ratio of 2 : 1 and
their Balance Sheet is as follows :

Balance Sheet of A and B
as on 31st March, 2022

Liabilities R Assets R
Bills Payable 10,000 Cash in Hand 10,000
Sundry Creditors 58,000 Cash at Bank 40,000
Outstanding Expenses 2,000 Sundry Debtors 60,000
Capital A/cs : Stock 40,000
A 1,80,000 Plant & Machinery 1,00,000
B 1,50,000 3,30,000 Building 1,50,000

4,00,000 4,00,000

C is admitted as a partner on the date of the Balance
Sheet on the following terms :

(i) C will bring in R 1,00,000 as his capital and R 60,000
as his share of goodwill for 1th share in profits
4

(ii) Plant is to be appreciated to R 1,20,000 and the value
of buildings is to be appreciated by 10%

(iii) Stock is found overvalued by R 4,000

(iv) A provision for Doubtful Debts is to be created at 5%
on debtors

(v) Creditors were unrecorded to the extent of R 1,000

Record Revaluation Account, Partners’ Capital Accounts
and the Balance Sheet of the firm after admission of the
new partner. 8

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( 11 )

Or

M, N and O were in partnership sharing profits and losses
in the proportion of 3 : 2 : 1. On 1st January, 2021,
N retires from the firm. On that date, their Balance Sheet
was as follows :

Balance Sheet
as on 1st January, 2021

Liabilities R Assets R
Trade Creditors 3,000 Cash in Hand 1,500
Bills Payable 4,500 Cash at Bank 7,500
Expenses Owing 4,500 Debtors 15,000
Reserve Fund 13,500 Stock 12,000
Capitals : Factory Premises 22,500
M 15,000 Machinery 8,000
N 15,000 Loose Tools 4,000
O 15,000 45,000

70,500 70,500

The terms were :

(i) Goodwill of the firm was valued at R 13,500

(ii) Expenses owing to be brought down to R 3,750

(iii) Unrecorded liability worth R 600 was paid

(iv) Machinery and loose tools are to be valued at 10%
less than their books’ values

(v) Factory premises are to be revalued at R 24,300

Show the Revaluation Account, Partners’ Capital
Accounts and prepare the Balance Sheet of the firm after
the retirement of N.

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( 12 )

12. D Ltd. offered to the public 20000 Equity Shares of R 10
each, payable R 4 on application, R 2 on allotment, R 2 on
1st call and the balance on final call. Applications were
received for 35000 shares. Applications for 10000 shares
were rejected. Only 10000 shares were allotted out of the
total 15000 shares and the remaining applications were
accepted in full. Excess application money was utilized
towards the money due on allotment. Both the calls were
made. One shareholder, holding 500 shares, failed to pay
the two calls and as a consequence his shares were
forfeited. 200 of these shares were reissued as fully paid
at R 6 per share.
Pass necessary Journal Entries in the books of the
company. 8
Or
XYZ Ltd. invited the public to subscribe 50000 Equity
Shares of R 100 each at a premium of R 10 per share
payable on allotment. Payments were to be made as
follows :
On Application—R 20
On Allotment—R 40
On first call—R 30
On final call—R 20
Applications were received for 73000 shares, applications
for 3000 shares were rejected. Allotment was made
proportionately to the remaining applicants. Both the
calls were made and all the money were received except
the final call on 3000 shares which were forfeited after
due notice. Later on 2000 of the forfeited shares were
reissued as fully paid at R 85 per share.
Pass necessary Journal Entries in the books of the
company recording the above transactions.

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PART—B

( Analysis of Financial Statements )

( Marks : 20 )

13. Choose and write the correct answer : 1×3=3

(a) Cash flow statement is required for the financial
planning of

(i) short range

(ii) long range

(iii) medium range

(iv) very long range

(b) Debt-Equity Ratio measures _____ of the business.

(i) profitability

(ii) activity

(iii) short-term financial position

(iv) long-term financial position

(c) Cost of Goods Sold =

(i) Sales – Gross Profit

(ii) Sales – Net Profit

(iii) Sale proceeds

(iv) None of the above

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( 14 )

14. What do you mean by Ratio Analysis? 1

15. Name two ratios measuring profitability. 1

16. State the uses of Cash Flow Statement. 1

17. What do you mean by Financial Statement Analysis?
State any two of its limitations. 4

18. (a) If Current Liabilities are R 30,000; Current Ratio
2·25 times; Liquid Ratio 1·25 times, calculate Current
Assets, Liquid Assets and Stock-in-Trade. 2

(b) If average inventory is R 20,000 and closing inventory
is R 2,000 more than the opening inventory, then
calculate opening and closing inventory. 2

19. Following are the Balance Sheets of Wisben Ltd. as on
31st March, 2020 and 2021 :
Particulars 2021 2020
R R
I. Equity and Liabilities
1. Shareholders’ Funds :
(a) Share Capital 7,00,000 6,00,000
(b) Reserves and Surplus 2,00,000 1,10,000
2. Non-current Liabilities :
Long-term Borrowing 3,00,000 2,00,000
3. Current Liabilities :
Trade Payables 30,000 25,000
12,30,000 9,35,000

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( 15 )

Particulars 2021 2020
R R
II. Assets
1. Non-current Assets :
Fixed Assets
Tangible Assets 11,00,000 8,00,000
2. Current Assets :
(a) Inventory 70,000 60,000
(b) Trade Receivables 32,000 40,000
(c) Cash and Cash
Equivalents 28,000 35,000
12,30,000 9,35,000

Adjustments :

During the year a piece of machinery of the book value of
R 80,000 was sold for R 65,000. Depreciation provided on
tangible assets during the year amounted to R 2,00,000.

Prepare Cash Flow Statement. 6

Or

From the following Balance Sheets of S. M. Industries,
prepare a Cash Flow Statement :
Particulars 2021 2022
R R
I. Equity and Liabilities
1. Shareholders’ Funds :
(a) Share Capital 60,000 65,000
(b) Reserves and Surplus 34,000 26,000
2. Current Liabilities 12,000 13,000
1,06,000 104,000

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( 16 )

Particulars 2021 2022
R R
II. Assets
1. Non-current Assets :
Fixed Assets
(a) Tangible Assets
Plant & Machinery 60,000 50,000
(b) Intangible Assets
Goodwill 30,000 35,000
2. Current Assets :
(a) Inventories 10,000 9,000
(b) Cash and Cash
Equivalents 6,000 10,000
1,06,000 1,04,000

Additional Information :
Depreciation of R 20,000 on Plant and Machinery was
charged to Statement of Profit and Loss.

HHH

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