ALWARDAS PUBLIC SCHOOL
MVP COLONY VISAKHAPATNAM
CLASS 12TH ACCOUNTANCY EXAM
MAX MARKS: 40 TIME ALLOWED : 90 MIN
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Marking scheme:
Questions 1-5 carries one marks each
Questions 6-8 carries 4 marks each
Questions 10-12 carries 8 marks each
1) Goodwill is capitalized valued of ____.
Normal Profit
Super Profit
Capital employed
Gross Profit
2) A, B, and C were partners in a firm having no partnership agreement. A, B and C
contributed ₹2,00,000, ₹3,00,000 and ₹1,00,000 respectively. A and B desire that the
profits should be divided in the ratio of capital contribution. C does not agree to this.
How will the dispute be settled? Who is correct?
C
Both C and A
B
A
3) Which of the following is not a content of partnership deed?
Interest on Bank Loan
Interest on Drawings
Interest on Partner’s Loan
Interest on Capital
4) Money withdrawn by a partner on 1st July Rs. 20,000 and interest on drawings is
fixed @ 6% (Books are closed on 31st March.) The amount of interest will be Rupees:
900
No interest will be charged.
1,200
600
5) In the absence of Partnership deed profit sharing ratio will be:
Senior partner will get more profit
Capital Ratio
Equal ratio irrespective of partners capitals.
Profits will not be distributed
6) Calculate interest on drawings of Mr. X @ 10% p.a. if he withdrawn Rs. 1000 per
month (i) in the beginning of each Month (ii) In the middle each of month (iii) at end of
each month.
7) Distinguish Between Average Profit Method and Super Profit Method.
8) Azad and Benny are equal partners. Their capitals are Rs 40,000 and Rs 80,000,
respectively. After the accounts for the year have been prepared it is discovered that
interest at 5% p.a. as provided in the partnership agreement, has not been credited to
the capital accounts before distribution of profits. It is decided to make an adjustment
entry at the beginning of the next year. Record the necessary journal entry.
9) A, B and C sharing profits in the ratio 3:2:1 respectively. C wants that profits be
shared equally and it should be applicable retrospectively from the last three years.
Other partners have no objection to this. Profits for the last three years were Rs
1,20,000, Rs 94,000 and Rs 1,10,000 respectively. Record adjustment that means of a
journal entry and show the working notes.
10) Singh and Gupta decided to start a partnership firm to manufacture low cost jute
bags as plastic bags were creating many environmental problems. They contributed
capitals of Rs 1,00,000 and Rs 50,000 on 1st April, 2012 for this. Singh expressed his
willingness to admit Shakti as a partner without capital, who is specially abled but a
very creative and intelligent friend of his. Gupta agreed to this. The terms of
partnership were as follows
Singh, Gupta and Shakti will share profits in the ratio of 2: 2: 1.
Interest on capital will be provided @ 6% per annum.
Due to shortage of capital, Singh contributed Rs 25,000 on 30th September, 2012 and
Gupta contributed Rs 10,000 on 1st January, 2013 as additional capital. The profit of the
firm for the year ended 31st March, 2013 was Rs 1,68,900.
Prepare profit and loss appropriation account for the year ending 31st March, 2013.
Identify any two values which the firm wants to communicate to society.
(B) Average net profit expected in future by XYZ firm is ₹ 36,000 per year. Average
capital employed in the business by the firm is ₹ 2,00,000. The normal rate of return
from capital invested in this class of business is 10%. Remuneration of the partners is
estimated to be ₹ 6,000 p.a. Calculate the value of goodwill on the basis of two years'
purchase of super profit.
11)L, M, and N were partners in firm sharing profit in the ratio of 3 : 4 : 5. Their fixed
capitals were L Rs 4,00,000 , M Rs 5,00,000 and N Rs 6,00,000 respectively. The
partnership deed provided for the following:
Interest on capital @ 6% p.a.
Salary of Rs 30,000 p.a. to N.
Interest on partner’s drawings will be charged @ 12% p.a.
During the year ended 31.3.2009, the firm earned a profit of Rs 2,70,000. L withdrew Rs
10,000 on 1.4.2008. M withdrew Rs 12,000 on 30.09.2008. and N withdrew Rs 15,000 on
31.12.2008. Prepare profit and loss appropriation account for the year ended 31.3.2009.
(B) Purav and Purvi are partners in a firm sharing profits and losses in the ratio of 2 : 1.
They decide to take Parv into partnership for 1/4th share on 1st April, 2019. For this
purpose, goodwill is to be valued at four times the average annual profit of the
previous four or five years, whichever is higher. The agreed profits for goodwill
purpose of the past five years are:
Year 2014-15 2015-16 2016-17 2017-18 2018-19
Profits (₹) 14,000 15,500 10,000 16,000 15,000
Calculate the value of goodwill
12) Tej, Partho and Ginni are in partnership, sharing profits and losses in the ratio of
2:1:1. Throughout the half year ended 31st March, 2017, their capital accounts have
remained unchanged at ` 60,000, ` 40,000 and ` 30,000 respectively. Their current
account balances on
1st October, 2016, were:
Tej ` 8,500 Dr.
Partho ` 6,000 Dr.
Ginni ` 10,000 Cr.
During the six-month period in 2016-2017:
Tej withdrew ` 200 at the beginning of each month.
Partho withdrew ` 400 at the end of each month.
Ginni withdrew ` 1,800 during this period.
Their Partnership Deed provides that:
(a) Partners to be allowed interest on capital @ 5% p.a.
(b) Partners to be allowed or charged interest on current account balances @ 4% p.a.
(c) Interest on drawings to be charged @ 6% p.a.
(d) Partho to be entitled to a salary of ` 500 per month.
(e) Tej to be entitled to a commission of 5% of the correct net profit of the firm after
charging such commission.
During the half year ended 31st March, 2017, the net profit of the firm was ` 2,07,000
after charging Partho’s salary which had been debited to wages and salaries account.
You are required to prepare Profit and Loss Appropriation Account Profit and Loss
Appropriation Account for the half year ending 31st March, 2017.
