RBSE 12th Accountancy Model Paper Set 3 with Answers in English 

Students must start practicing the questions from RBSE 12th Accountancy Model Papers Set 3 with Answers in English Medium provided here.

RBSE Class 12 Accountancy Model Paper Set 3 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 statements is not true for Receipts and Payments Account ? [1]
(a) It is a summary of the cash book.
(b) It records receipts and payments of revenue nature only.
(c) The receipts and payments may relate to current, preceding, or succeeding accounting periods.
(d) Depreciation is not shown in it.
Answer:
(b) It records receipts and payments of revenue nature only.

(ii) A withdrew ₹ 1,000 on last date of every month.The rate of interest is 5% p.a.What will
be the amount of interest on drawings: [1]
(a) ₹ 325
(b) ₹ 275
(c) ₹ 300
(d) ₹ 350
Answer:
(b) ₹ 275

(iii) Aditya and Shiv were partners in a-firm with capitals of ₹ 3,00,000 and ₹ 2,00,000,
respectively. Naina was admitted as a new partner for \(\frac{1}{4}\)th share in the profits of the firm. Naina brought ₹ 1,20,000 for her share of goodwill premium and ₹ 2,40,000 for her capital. The amount of goodwill premium credited to Aditya will be: [1]
(a) ₹ 40,000
(b) ₹ 30,000
(c) ₹ 72,000
(d) ₹ 60,000
Answer:
(d) ₹ 60,000

(iv) Pragya Ltd. forfeited 8,000 equity shares of ₹ 100 each issued at a premium of 10% for
non-payment of first and final call of ₹ 30 per share. The maximum amount of discount at which these shares can be reissued will be: [1]
(a) ₹ 80,000
(b) ₹ 3,20,000
(c) ₹ 5,60,000
(d) ₹ 2,40,000
Answer:
(c) ₹ 5,60,000

(v) Those debentures which can be paid only on winding up of company are called: [1]
(a) Redeemable debentures
(b) Irredeemable debentures
(c) Convertible debentures
(d) Non-convertible debentures
Answer:
(b) Irredeemable debentures

(vi) Those debentures which have assets of the companies as a security are called: [1]
(a) Secured debentures
(b) Unsecured debentures
(c) First debentures
(d) Secondary debentures
Answer:
(a) Secured debentures

(vii) Debentures which are transferable by mere delivery are: [1]
(a) Registered debentures
(b) First debentures
(c) Bearer debentures
Answer:
(c) Bearer debentures

(viii) The following journal entry appears in the books of X Co. Ltd.:

Debentures have been issued at a discount of: [1]
(a) 15%
(b) 5%
(c) 10%
Answer:
(b) 5%

(ix) Public Deposits appear in the company’s Balance Sheet under the head/sub-head: [1]
(a) Intangible Assets
(b) Current Liabilities
(c) Shareholders’Funds
(d) Non-Current Liabilities
Answer:
(d) Non-Current Liabilities

(x) Which of the following is a limitation of financial analysis ? [1]
(a) It is just a study of reports of the company.
(b) It judges the ability of the firm to repay its debts.
(c) It identifies the reasons for change in financial position.
(d) It ascertains the relative importance of different components of the financial
position of the. firm.
Answer:
(a) It is just a study of reports of the company.

(xi) Common size balance sheet is also called as: [1]
(a) Percentage Balance Sheet
(b) Percentage Income Statement
(c) Statement of Absolute Figures
(d) None of these
Answer:
(a) Percentage Balance Sheet

(xii) At the time of calculating ratio, one item is taken from balance sheet and other item is
taken from statement of profit and loss, then the ratio is called: [1]
(a) Balance Sheet Ratio
(b) Statement of Profit and Loss Ratio
(c) Composite Ratio
(d) None of these
Answer:
(c) Composite Ratio

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

(i) ………………….. Capital accounts always show credit balance. [1]
Answer:
Fixed

(ii) The minimum number of members in a private company are …………………… .[1]
Answer:
two

(iii) Listed Companies have to transfer ………………………. money in debenture redemption
Reserve to redeem its debentures. [1]
Answer:
no

(iv) Profit on purchase of own debentures is transferred to ……………………… . [1]
Answer:
Capital Reserve

(v) Fixed assets are classified into ………………….. and …………………. .[1]
Answer:
tangible assets, intangible assets

(vi) ROI stands for ……………………….. . [1]
Answer:
Return on Investment

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

(i) How are specific donations treated while preparing final accounts of a ‘Not-for-Profit’ organisation? [1]
Answer:
Specific donations are capitalized while preparing the final accounts of a Not-for-Profit organisation.

(ii) Atul and Neera were partners in a firm sharing profits in the ratio of 3 : 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul’s capital account. Calculate the new profit sharing ratio. [1]
Answer:
Mitali’s share in profit = \(\frac{1}{10}\)
Atul’s new share = \(\frac{3}{5}-\frac{1}{10}\) = \(\frac{5}{10}\)
Neerds new share = \(\frac{2}{5}\)
Mitalfs share = \(\frac{1}{10}\)
New ratio = 5 : 4 : 1

(iii) Give the types of debentures on the basis of security. [1]
Answer:

1. Secured Debentures
2. Unsecured Debentures.

(iv) What account will be credited for receiving premium on issue of debentures? [1]
Answer:
Amount received as premium on issue of debenture is credited to securities premium reserve account.

(v) A company issued ₹ 10,000,6% debentures at 5% discount which are redeemable at 5% premium. Pass Journal entry on issue of debentures. [1]
Answer:

(Being debentures issued at discount and repayable on premium)

(vi) What is meant by Debenture ? [1]
Answer:
Debenture is a certificate under the seal of a company which contains a contract for the repayment of the principal sum after a fixed period of time and payment of interest. Debentures are issued by a company for acquiring long-term funds.

(vii) What does a Bearer Debenture mean ? [1]
Answer:
Bearer Debentures: Names and address of the holders of such debentures are not recorded in the books of the company and these debentures are transferable by mere delivery. Payment of principal and interest is made to the bearer of such debentures.

(viii) State the meaning of‘Debentures issued as a collateral security’. [1]
Answer:
Sometimes, when a company takes a loan from a bank or from some other party, the company may have to issue debentures as a subsidiary or secondary security in addition to the principal security. This type of issue of debentures is known as debentures issued as a collateral security.

(ix) Name the two financial statements prepared by a company. [1]
Answer:

1. Balance sheet
2. Profit and Loss statement.

(x) What is meant by common size balance sheet? [1]
Answer:
A common size balance sheet is a statement in which total of assets or equity and liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total.

(xi) What is meant by common size income statement?
Answer:
Common size income statement means in which revenue from operations (net sales) is taken as 100 and expenses are expressed as percentage of revenue from operations.

(xii) What will be the effect of purchase of goods for cash ₹ 3,000 on Gross Profit Ratio? [1]
Answer:
No effect.

Section – B

Short Answer Type Questions [2 × 13 = 26]

Question 4.
During the year 2015, subscriptions received by a sports club were ₹ 80,000. These included ? 3,000 for the year 2014 and ₹ 6,000 for the year 2016. On March 31,2016, the amount of subscriptions due but not received was ₹ 12,000. Calculate the amount of subscriptions to be shown in income and expenditure account as income from subscription. [2]
Answer:

Question 5.
Rishi is a partner in a firm. He withdrew the following amounts dining the year ended March 31, 2017:
May 01, 2017 – ₹ 12,000
July 31, 2017 – ₹ 6,000
September 30, 2017 – ₹ 9,000
November 30, 2017 – ₹ 12,000
January 01, 2018 – ₹ 8,000
March 31, 2018 – ₹ 7,000
Interest on drawings is charged @ 9% p.a. Calculate interest on drawings. 2
Answer:

Interest on Drawings = ₹ 3,06,000 × \(\frac{9}{100} \times \frac{1}{12}\) = ₹ 2,295

Question 6.
Aslam, Jackab and Hari are equal partners with capital of ₹ 1,500, ₹ 1,750 and ₹ 2,000 respectively. They agree to admit Satnam into equal partnership upon payment in cash of ₹ 1,500 for one-fourth share of the goodwill and ₹ 1,800 as his capital, both sums to remain in the business. The liabilities of the old firm amount ₹ 3,000 and the assets, apart from cash, consist of Motors ₹ 1,200, Furniture ₹ 400, Stock ₹ 2,650, Debtors of ₹ 3.780. The Motors and Furniture were revalued at ₹ 950 and ₹ 380 respectively, and the depreciation written-off. Ascertain cash in hand and prepare the balance sheet of the firm after Satnam’s admission. [2]
Answer:

Question 7.
Benu andSunil are partners sharing profits in the ratio of 3 :2 on April 1,2017. Ina was admitted for 1/4 share who paid ₹ 2,00,000 as capital and ₹ 1,00,000 for premium for goodwill in cash. At the time of admission, general reserve amounting to ₹ 1,20,000 and profit and loss account amounting to ₹ 60,000 appeared on the liabilities side of the balance sheet. Required : Record necessary journal entries to record the above transactions. [2]
Answer:

Question 8.
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 9.
Journalise :
A holds 100 shares of ₹ 10 each on which he has paid ₹ 1 per share on application. B holds 200 shares of ₹ 10 each on which he has paid ₹ 1 on application, ₹ 2 on allotment. C holds 300 shares of ₹ 10 each who has paid ₹ 1 on application, ₹ 2 on allotment and ₹ 3on first call. They all failed to pay their arrears and second call of ₹ 4 per share as well. All the shares of A, B and C were forfeited and subsequently reissued at ₹ 11 per share as fully paid-up. [2]
Answer:

Question 10.
nish Limited issued 30,000 equity shares of ₹ 100 each payable at ₹ 30 on application, ? 50 on allotment and ₹ 20 on 1st and final call. All money was duly received.
Record these transactions in the journal of the company. [2]
Answer:

Question 11.
R Ltd., issued 8,00,000,8% debentures of ₹ 50 each at a premium of 5% on July 1, 2014 redeemable at par by conversion of debentures into shares of ₹ 20 each at a premium of ₹ 2 pershareonJune 30,2017. Record necessary entries for redemption of debentures. [2]
Answer:

Working Notes: No. of equity shares issued = ₹ \(\frac{46,20,00,000}{(20+2)}\)
= \(\frac{46,20,00,000}{22}\) = 2,10,00,000

Question 12.
C. Ltd. has outstanding 11,00,000, 10% debentures of ₹ 200 each, on April 1, 2017. The Board of Directors have decided to purchase 20% of own debentures for cancellation at ₹ 200 each. Record necessary entries for the same. [2]
Answer:

Question 13.
From the following information, calculate Revenue from operations, Other Income and Total Revenue of a Non-financial Company:
Revenue from Sales ₹ 30,00,000; Sales Return ₹ 6,50,000; Sale of Scrap ₹ 1,50,000; Interest on Bank Deposit ₹ 2,00,000; Interest earned on Debentures ₹ 50,000. [2]
Answer:

Question 14.
Prepare common size balance sheet of Raj Co. Ltd. as at March 31, 2016 and March 31, 2017 from the given information: [2]


Answer:

Question 15.
Calculate debt-equity ratio from the following infos nation: [2]
Total Assets – ₹ 15,00,000
Current Liabilities – ₹ 6,00,000
Total Debts – ₹ 12,00,000
Answer:
Debt-Equity Ratio = \(\frac{\text { Debt }}{\text { Equity }}\)
Equity = Total Assets – Total Debts
= ₹ (15,00,000 – 12,00,000)
= ₹ 3,00,000
Long-term Debts = Total Debts – Current Liabilities
= ₹ (12,00,000 – 6,00,000)
= ₹ 6,00,000
Debt-Equity Ratio = \(\frac{6,00,000}{3,00,000}\) = 2 : 1

Question 16.
Calculate current, ratio if:
Inventory is ₹ 6.00,000; Liquid Assets ₹ 24,00,000; Quick ratio 2 : 1. [2]
Answer:

2 × \(\frac{24,00,000}{\text { Current Liabilities }}\)
Current Liabilities
2 × Current Liabilities = ₹ 24,00,000
Current Liabilities = ₹ \(\frac{24,00,000}{2}\)
= ₹ 12,00,000
Current Assets = Liquid Assets + Inventory
= ₹ (24,00,000 + 6,00,000)
= ₹ 30,00,000

= \(\frac{30,00,000}{12,00,000}\)
= 2.5 : 1

Section – C

Question 17.
Following is the information given in respect of certain items of a sports club. Show . these items in the income and expenditure account and the balance sheet of the club: [3]

Details	(₹)
Sports fund as on 1.4.2015	35,000
Sports fund investments	35,000
Interest on sports fund	4,000
Donations for sports fund investment	15,000
Sports prizes awarded	10,000
Expenses on sports events	4,000
General fund	80,000
General fund investments	80,000
Interest on general fund investments	8,000

Answer:

Question 18.
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2017:

Profit for the year ended March 31, 2017 was ₹ 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry. [3]
Answer:

Question 19.
Arti and Bharti are partners in a firm sharing profits in 3 : 2 ratio. They admitted Sarthi for 1/4 share in the profit of the firm. Sarthi brings ₹ 50,000 for his capital and ₹ 10,000 for his 1/4 share of goodwill. Goodwill already appears in the books of Arti and Bharti at ₹ 5,000. The new profit sharing ratio between Arti, Bharti and Sarthi will be 2 : 1 : 1. Record the necessary journal entries in the books of the new firm. [3]
Answer:


Working Notes:
Sacrificing ratio = Old ratio – New ratio
Arti’s sacrifice = \(\frac{3}{5}-\frac{2}{4}=\frac{12-10}{20}=\frac{2}{20}\)
Bharti’s sacrifice = \(\frac{2}{5}-\frac{1}{4}=\frac{8-5}{20}=\frac{3}{20}\)
Sacrificing ratio of Arti and Bharti = \(\frac{2}{20}: \frac{3}{20}\) = 2 : 3
Arti’s share in the goodwill brought by Sarthi = ₹ 10,000 × \(\frac{2}{5}\) = ₹ 4,000
Bharti’s share in the goodwill brought by Sarthi = ₹ 10,000 × \(\frac{3}{5}\) = ₹ 6,000

Question 20.
From the following information, calculate the following ratios: [3]
(i) Liquid Ratio
(ii) Inventory turnover ratio
(iii) Return on investment

Answer:
(i)
Quick Assets = Cash + Trade Receivables
= ₹ (40,000 + 1,00,000)
= ₹ 1,40,000
Current Liabilities = Trade Payables + Other Current Liabilities
= ₹ (1,90,000 + 70,000)
= ₹ 2,60,000
Liquid Ratio = \(\frac{1,40,000}{2,60,000}\)
= 0.54 : 1

(ii)
Cost of Goods Sold = Revenue from Operations – Gross Profit
= ₹ (4,00,000 – 1,94,000)
= ₹ 2,06,000
Average Inventory = \(\frac{\text { Opening Inventory + Closing Inventory }}{2}\)
= \(\frac{50,000+60,000}{2}\)
= ₹ 55,000
Inventory Turnover Ratio = \(\frac{2,06,000}{55,000}\)
= 3.75 : 1 or 3.75 times

(iii)
Capital Employed = Share Capital + Money Received Against
Share Warrants + Statement of Profit & Loss
= ₹ (2,00,000 + 20,000 +1,20,000)
= ₹ 3,40,000
Profit before Interest and Tax = ₹ 1,40,000 (Reserves and surplus)
Return on Investment = \(\frac{1,40,000}{3,40,000}\) × 100= 41.17%

Section – D

Question 21.
Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 31^st March, 2019, their balance sheet was as follows:

On 1^st April, 2019, they admitted Vihaan as a new partner for 1/5^th share in the profits of the firm on the following terms :
(a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan’s capital; any surplus or deficiency was to be adjusted by opening current accounts.

(b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.

(c) Liability on account of workmen’s compensation amounted to ₹ 80,000.

(d) Achla took over stock at ₹ 35,000.

(e) Land and building was to be appreciated by 20%.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance sheet of the reconstituted firm on Vihaan’s admission. [4]
Or
Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3 : 2. On 31^st March, 2018 their balanc sheet was as follows:

On 1^st April, 2018, they admitted Nidhi as a new partner for 1/4^th share in the profits on the following terms:
(a) Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
(d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance sheet of the reconstituted firm on Nidhi’s admission. [4]
Answer:

Question 22.
Raunak Cotton Ltd. issued a prospectus inviting application for 6,000 equity shares of I ₹ 100 each at a premium of ₹ 20 per share, payable as follows :
On application – ₹ 20
On allotment – ₹ 50 [including premium]
On first call – ₹ 30
On final call – ₹ 20
Applications were received for 10,000 shares and allotment was made pro-rata to the : applicants of 8,000 shares, the remaining applications being refused. Money receive in
excess on the application was adjusted toward the amount due on allotment.

Rohit, to whom 300 shares were allotted failed to pay allotment and calls money, his shares were forfeited. Itika, who applied for 600 shares, failed to pay the two calls and her shares were also forfeited. All these shares were sold to Kartika as fully paid for ₹ 80 per share.
Give journal entries in the books of the company. [4]
Answer:
In the Books of Raunak Cotten Ltd.
Journal Entries


Working Notes:
(i) No. of shares applied by Rohit = \(\frac{8,000}{6,000}\) × 300 = 400 shares
(ii) No. of shares allotted to Itika = \(\frac{6,000}{8,000}\) × 600 = 450 shares.

Question 23.
A listed company issued debentures of the face value of ₹ 5,00,000 at a discount of 6% on January 01, 2014. These debentures are redeemable by annual drawings of ₹ 1,00,000 made on December 31 each year starting from December 31. 2014.

Give journal entries for issue of debentures, writing – off discount and regarding redemption of debentures. [4]
Or
B Ltd. issued 1,000,12% debentures of ₹ 100 each on April 01, 2014 at a discount of 5% redeemable at a premium of 10%.
Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2015 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 10%. [4]
Answer:



Working Notes:
Amount of discount on issue of debentures: ₹ 5,00,000 × \(\frac{6}{100}\) = ₹ 30,000
Calculation of discount to be written off: