RBSE 12th Accountancy Model Paper Set 2 with Answers in English 

Students must start practicing the questions from RBSE 12th Accountancy Model Papers Set 2 with Answers in English Medium provided here.

RBSE Class 12 Accountancy Model Paper Set 2 with Answers in English

Time: 2:45 Hours
Maximum Marks: 80

General Instructions for the Examinees:

• Candidate must first write his/her Roll No. on the question paper compulsorily.
• All the questions are compulsory.
• Write the answer to each question in the given answer-book only.
• For questions having more than one part the answers to those parts must be written together in continuity.
• If there is any error/difference/contradiction in Hindi & English version of the question paper, the question of the Hindi version should be treated valid.

Section – A

Question 1.
Multiple Choice Questions [1 × 12 = 12]

(i) Which of the following is a capital receipt? [1]
(a) Subscriptions
(b) Sale of used sports material
(c) Endowment fund
(d) Entrance fees
Answer:
(c) Endowment fund

(ii) Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit’s share in the profit will be: [1]
(a) ₹ 20,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) ₹ 18,000
Answer:
(c) ₹ 15,000

(iii) Ashok and Sudha were partners in a firm sharing profits and losses in the ratio of 3 : 1. They admitted Bani as a new partner. Ashok sacrificed \(\frac{1}{4}\)th of his share and Sudha sacrificed \(\frac{1}{4}\)th of her share is favour of Bani. Bani’s share in the profits of the firm will be:
(a) \(\frac{5}{8}\)
(b) \(\frac{1}{8}\)
(c) \(\frac{1}{4}\)
(d) \(\frac{7}{16}\)
Answer:
(c) \(\frac{1}{4}\)

(iv) Nominal share capital is: [1]
(a) that part of the authorised capital which is issued by the company.
(b) the amount of capital which is actually applied for by prospective shareholders.
(c) the maximum amount of share capital which a company is authorised to issue.
(d) The amount actually paid by the shareholders.
Answer:
(d) The amount actually paid by the shareholders.

(v) X Co. Ltd. purchased assets worth ₹ 28,80,000. It issued debentures of ₹ 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is: [1]
(a) 30,000
(b) 28,800
(c) 32,000
Answer:
(a) 30,000

(vi) Convertible debentures cannot be issued at a discount if: [1]
(a) they are to be immediately converted
(b) they are not to be immediately converted
(c) None of the above
Answer:
(a) they are to be immediately converted

(vii) When debentures are issued at par and are redeemable at a premium, the loss on such an issue debited to: [1]
(a) Statement of profit and loss
(b) Debentures application and allotment account
(c) Loss on issue of debentures account
Answer:
(c) Loss on issue of debentures account

(viii) Excess value of net assets over purchase consideration at the time of purchase of business is credited to: [1]
(a) General reserve
(b) Capital reserve
(c) Vendor’s account
Answer:
(b) Capital reserve

(ix) Which of the following is not a limitation of‘Financial Statements Analysis’? [1]
(a) Cash and Cash Equivalents
(b) Trademarks
(c) Short-term Loans and Advances
(d) Inventories
Answer:
(b) Trademarks

(x) Which of the following is not a limitation of analysis of financial statements? [1]
(a) Window Dressing
(b) Price level changes ignored
(c) Subjectivity
(d) Intra firm comparison possible
Answer:
(d) Intra firm comparison possible

(xi) Which of the following is not a sub-head under the current Assets? [1]
(a) Comparative income statement
(b) Comparative position statement
(c) Statement of profit and loss
(d) Cash flow statement
Answer:
(c) Statement of profit and loss

(xii) The objective of ratio analysis is: [1]
(a) Knowledge of liquidity position
(b) Knowledge of profitability
(c) Knowledge of solvency position
(d) All of the above
Answer:
(d) All of the above

Question 2.
Fill in the blanks: [1 × 6 = 6]

(i) When all the adjustments are passed through the capital accounts, the method is called ………………. . [1]
Answer:
Fluctuating capital method

(ii) The minimum members required in case of public company are ………………….. . [1]
Answer:
seven

(iii) Debenture is a part of …………………….. capital. [1]
Answer:
borrowed

(iv) Non-convertible debentures cannot be converted into ……………………… . [1]
Answer:
shares

(v) Trade payables consist of …………………… and ………………….. [1]
Answer:
bills payable, sundry creditors

(vi) ……………………….. refers to the ability of the firm to meet its current liabilities. [1]
Answer:
Liquidity.

Question 3.
Very Short Answer Type Questions [1 × 12 = 12]

(i) State the basis of accounting of preparing ‘Income and Expenditure Account’ of a not-for-profit organisation. [1]
Answer:
Accrual Basis.

(ii) Puneet and Deepak were in partnership sharing profits and losses in the ratio of 2 : 1.
They admitted Manya as a new partner. Manya brought ₹ 1,00,000 as her share of goodwill premium, which was entirely credited to Puneet’s capital account. On the date of admission, goodwill of the firm was valued at ₹ 3,00,000. Calculate the new profit sharing ratio of Puneet, Deepak and Manya. [1]
Answer:
1 : 1 : 1 or \(\frac{1}{3}: \frac{1}{3}: \frac{1}{3}\)

(iii) What is meant by ‘Issue of Debentures for consideration other than cash’ ? [1]
Answer:
Sometimes, a company purchases some assets from the vendor and instead of paying the vendor in cash the company may decide to issue debentures to the vendor in payment of purchase consideration. Such an issue of debentures to vendors is known as issue of debentures for consideration other than cash.

(iv) What is meant by issue of debentures at discount and redeemable at premium? [1]
Answer:
When debentures are issued at price less than their face value but have to be redeemed at a price more than their face value, it is known as issue of debentures at discount and redeemable at premium.

(v) What is Capital Reserve ? [1]
Answer:
Capital reserve is reserve which is created out of capital profits. The gain on forfeiture of shares or any capital gain is transferred to capital reserve.

(vi) What is meant by ‘Irredeemable Debentures’ ? [1]
Answer:
Irredeemable debentures are those which are not repayable by the company during its lifetime. These debentures are repayable only at the time of liquidation of the company.

(vii) What is a‘Convertible Debenture’? [1]
Answer:
Convertible debentures are those which are convertible into equity shares or other securities at a stated rate of exchange either at the option of debentureholders or at the option of the company after a specified period.

(viii) What is meant by ‘Mortgaged Debentures’ ? [1]
Answer:
Mortgaged Debentures are those debentures that are secured against assets of a company.

(ix) What is meant by financial statements? [1]
Answer:
Financial statements are the end products of accounting process. They provide information about the profitability and financial position of an enterprise/business.

(x) What is meant by trend analysis? [1]
Answer:
Trend analysis determines the direction upwards and downwards and involves the computation of the percentage relationship that each item bears to the same item in the base year.

(xi) List the techniques of financial statement analysis. [1]
Answer:

1. Comparative Statements
2. Common S’ze Statements
3. Trend Analysis
4. Cash Flow Analysis
5. Ratio Analysis.

(xii) ‘Purchase of goods ₹ 35,000 for cash will increase the operating ratio’. Is the statement correct? Give reasons. [1]
Answer:
No.
Reason : Both purchases and Closing stock will increase by the same amount.

Section – B

Short Answer Type Questions 2 × 13 = 26

Question 4.
Subscriptions received by the health club during the year 2015 were as under:

Calculate the amount of subscriptions to be shown on the income side of Income and Expenditure A/c. [2]
Answer:

Question 5.
Following is the extract of the balance sheet of Neelkant and Mahadev as on March 31, 2017:

During the year, Mahadev’s drawings were ₹ 30,000. Profits during 2016-17 are ₹ 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending March 31,2017. [2]
Answer:
Interest on Capital:
Neelkant = ₹ 10,00,000 × \(\frac{5}{100}\) ₹ 50,000
Mahadev = ₹ 10,00,000 × \(\frac{5}{100}\) = ₹ 50,000

Question 6.
Super profit and average profit of a firm are ₹ 5,000 and ₹ 23,000 respectively. The normal rate of return is 18% and its capital employed is ₹ 1,00,000. Calculate the value of Goodwill by capitalisation of super profit and capitalisation of average profit and verify that there is no difference in the value of goodwill by using two different methods. [2]
Answer:
Super Profit = ₹ 5000
Goodwill = Super Profit ×
Normal Rate of Return
= 5000 × \(\frac{100}{18}\) = ₹ 27,778
Goodwill under capitalisation of super profit = ₹ 27,778
Goodwill under capitalisation of average profit:
Average profit = ₹ 23,000
Capitalised Value of Average Profit
= Average Profit ×
= 23000 × \(\frac{100}{18}[latex] = ₹ 1,27,778
Capital employed = ₹ 1,00,000
Goodwill = Capitalised Value of Average Profit – Actual Capital Employed
= ₹ (1,27,778 – 1,00,000)
= ₹ 27,778
Verification: There is no difference in the answer.

Question 7.
Giri and Shanta are partners in a firm sharing profits equally. They admit Kachroo into partnership who in addition to capital, brings ₹ 20,000 as goodwill for 1/5th share of profits in the firm. What shall be journal entries if:
(a) no goodwill appears in the books of the firm.
(b) goodwill appears in the books of the firm at ₹ 40,000. [2]
Answer:
Sacrificing ratio = 1 : 1
(a) No goodwill appears in the books of the firm:

Question 8.
A company forfeited 100 equity shares of ₹ 10 each issued at a premium of 20% for non payment of final call of ₹ 5 including the premium. Show the journal entry for forfeiture of shares. [2]
Answer:

Question 9.
A company forfeited 800 equity shares of ₹ 10 each issued at a discount of 10% for non-payment of first and final calls of ₹ 2 each. Calculate the amount forfeited by the company and pass the journal entry for forfeiture of the shares. [2]
Answer:

Working Notes:
Calculation of amount transferred to share forfeiture:
Amount received per share = Face Value of Share – Non Payment – Discount on Issue of Shares.
= ₹ (10 – 4 – 1) = ₹ 5
Amoimt of forfeiture = ₹ 5 × 800 = ₹ 4,000

Question 10.
Journalise:
The directors of a company forfeited 200 equity shares of ₹ 10 each on which ₹ 800 had been paid, the shares were reissued upon payment of ₹ 1,500. [2]
Answer:

Question 11.
D Ltd. purchased machinery worth ₹ 2,00,000 from E Ltd. on 1.4.2016. ₹ 50,000 were paid immediately and the balance was paid by issue of ₹ 1,60,000,12% Debentures in D Ltd. Record the necessary journal entries for recording the transactions in the books of D Ltd.’ [2]
Answer:

Question 12.
G. Ltd. has ₹ 80 lakh,. 10% debentures of ₹ 100 each due for redemption on March 31, 2017. Give journal entries for issue and redemption of debentures. [2]
Answer:

Question 13.
Under which major head will you show the following items in the Statement of Profit and Loss of a company ?
(1) Rent received, (2) Revenue from project consultancy, (3) Revenue from operations : Return, (4) Trade expenses, (5) Leave encashment expenses, (6) Refund of income tax, (7) Transfer fees, (8) Loss on sale of investment, (9) Sale of scrap, (10) Stores and spares parts used, (11) Salary and wages, (12) Manufacturing expenses, (13) Telephone and internet expenses, (14) Shares issued expenses written off, (15) Lease rent. [2]
Answer:

Item	Main Heading	Sub-Heading
1. Rent Received	Other Income
2. Revenue from Project Consultancy	Other Income
3. Revenue from Operations: Return	Revenue from Operations
4. Trade Expenses	Other Income
5. Leave Encasement Expenses	Expenses	Employee Benefit Exp.
6. Tax Refund	Other Income
7. Transfer Fees	Other Income
8. Loss on Sale of Investment	Other Income

Question 14.
From the Balance Sheets for the year ended March 31, 2016 and 2017, prepare the comparative Balance Sheet of Omega Chemicals Ltd: [2]

Answer:

Question 15.
Current Liabilities of a company are ₹ 75,000. If current ratio is 4 : 1 and liquid ratio is 1 : 1, calculate value of Current Assets, Liquid Assets and Inventory. [2]
Answer:

[latex]\frac{4}{1}=\frac{\text { Current Assets }}{75,000}\)
Current Assets Current Liabilities 4 _ Current Assets I “ 75,000
4 × 75,000 = Current Assets
Current Assets = ₹ 3,00,000

Liquid Assets = ₹ 75,000
Inventory = Current Assets – Liquid Assets
= ₹ (3,00,000 – 75,000)
= ₹ 2,25,000

Question 16.
Handa Ltd. has inventory of ₹ 20,000. Total liquid assets are ₹ 1,00,000 and quick ratio is 2 : 1. Calculate current ratio. [2]
Answer:

2 × Current Liabilities = ₹ 1,00,000
Current Liabilities = ₹\(\frac{1,00,000}{2}\)
= ₹ 50,000
Current Assets = Liquid Assets + Inventory
= ₹ (1,00,000 + 20,000)
= ₹ 1,20,000

= \(\frac{1,20,000}{50,000}\) = 24 : 1

Section – C

Question 17.
From the following particulars, prepare Income and Expenditure account: [3]

Details	Amount (₹)
Fees collected, including ₹ 80,000 on account of the previous year	5,20,000
Fees for the year outstanding	30,000
Salary paid, including ₹ 5,000 on account of the previous year	68,000
Salary outstanding at the end of the year	3,000
Entertainment expenses	8,000
Tournament expenses	25,000
Meeting expenses	18,000
Travelling expenses	7,000
Purchase of Books and Periodicals, including ₹ 31,000 for purchase of books	40,000
Rent	15,000
Postage, telegrams and telephones	6,000
Printing and stationery	18,000
Donations received	25,000

Answer:

Question 18.
The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 1, have existed for some years. Ali wants that he should get equal share in the profit with Harry and Porter and he further wishes that the change in the profit sharing ratio should come into effect retrospectively were for the last three year. Harry and Porter have agreement on this account.
The profits for the last three years were:

Show adjustment of profits by means of a single adjustment journal entry. [3]
Answer:

Working Notes:

Question 19.
Varma and Sharma are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Ghosh as a new partner for 1/5 share of profits. Ghosh is to bring in ₹ 20,000 as capital and ₹ 40,000 as his share of goodwill premium. Give the necessary journal entries-
(a) When the amount of goodwill is retained in the business.
(b) When the amount of goodwill is fully withdrawn.
(c) When 50% of the amount of goodwill is withdrawn.
(d) When goodwill is paid privately.
Answer:

Question 20.
From the following Balance Sheet and other information, calculate following ratios:
(i) Debt-Equity Ratio.
(ii) Working Capital turnover Ratio,
(iii) Trade Receivables Turnover Ratio. [3]

Answer:
(ii)
Debt = ₹ 12,00,000
Equity = Share Capital + Reserves and Surplus + Money Received Against Share Warrents
= ₹ (10,00,000+ 7,00,000+ 2,00,000)
= ₹ 19,00,000
Debt-Equity Ratio = \(\frac{12,00,000}{19,00,000}\) = 0.63 : 1

(ii)
Net Revenue from Operations = ₹ 18,00,000
Working Capital = Current Assets – Current Liabilities
Current Assets = Inventories + Cash and Cash Equivalents + Trade Receivables
= ₹ (4,00,000 + 5,00,000 + 9,00,000) = ₹ 18,00,000
Current Liabilities = Trade Payables = ₹ 5,00,000
Working Capital = ₹ (18,00,000 – 5,00,000) = ₹ 13,00,000
Working Capital Turnover Ratio = \(\frac{18,00,000}{13,00,000}\)
= 138 : 1 or 1.38 times

(iii)
Average Trade Receivables
= \(\frac{18,00,000}{9,00,000}\)
= 2 : 1 or 2 times

Section – D

Question 21.
Ashish and Nimish were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31^st March, 2019 their Balance sheet was as follows:

On 1^st April, 2019, Geeta was admitted into the partnership for 1/4th share in the profits on the following terms :
(i) Goodwill of the firm was valued at ₹ 2,00,000.
(ii) Geeta brought ₹ 3,00,000 as her capital and her share of goodwill premium in cash.
(iii) Bad debts amounted to ₹ 2,000. Create a provision for doubtful debts @ 5% on debtors.
(iv) Furniture was found undervalued by ₹ 65,400.
(v) Stock was taken over by Nimish for ₹ 1,30,000.
(vi) The liability against workmen’s compensation fund was determined at ₹ 30,000.
(vii) After the above adjustments, the capitals of Ashish and Nimish were to be adjusted taking Geeta’s capital as the base. Excess or shortage was to be adjusted by opening current accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance sheet of the firm after Geeta’s admission. [4]
Or
Raman and Am an were partners in a firm and were sharing profits in 3 : 1 ratio. On 31-3-2019, their balance sheet was as follows:


On the above date, Suman was admitted as a new partner for 1/5^th share in the profits on the following conditions:
(i) Suman will bring ₹ 2,00,000 as her capital and necessary amount for her share of goodwill premium. The goodwill of the firm on Suman’s admission was valued at ₹ 1,00,000.
(ii) Outstanding expenses will be paid off. ₹ 5,000 will be wrtten off as bad debts and a provision of 5% for bad debts on debtors was to maintained.
(iii) The liability towards workmen compensation was estimated at ₹ 60,000.
(iv) Machinery was to be depreciated by ₹ 18,000 and Land and Building was to be depreciated by ₹ 54,000.
Pass necessary journal entries for the above transactions in the books of the firm. [4]
Answer:

Question 22.
Arushi Computers Ltd. issued 10,000 equity shares of ₹ 100 each at 10% premium. The net amount payable as follows :
On application – ₹ 20
On allotment – ₹ 50 (₹ 40 + premium ₹ 10)
On first call – ₹ 30
On final call – ₹ 10
A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at ₹ 75 per share.
Answer:



Working Notes : Profit on 200 shares = ₹ 18,000
Profit on 150 shares = ₹( \(\frac{18,000}{200}\) × 150) = ₹ 13,500
Money transferred to capital reserve = ₹ (13,500 – 3,750) = ₹ 9,750.

Question 23.
B. Ltd. purchased assets of the book value of ₹ 4,00,000 and took over the liability of ₹ 50,000 from Mohan Bros. It was agreed that the purchase consideration settled at ₹ 3,80,000 be paid by issuing debentures of ₹ 100 each.
What Journal entries will be made in the following three cases, if debentures are issued: (a) at par: (b) at 10% discount; (c) at premium of 10%? It was agreed that any fraction of debentures be paid in cash. [4]
(Note : Goodwill ₹ 30,000)
Or
A. Ltd. issued 50,00,000, 8% debentures of ₹ 100 at a discount of 6% on April 01, 2018, redeemable at premium of 4% by draw of lots as under :
20,00,000 debentures on March, 2020
10,00,000 debentures on March, 2021
Answer: