NBSE Question Papers Accountancy Term-1 (Set-2) for Class 12

Class 12  TERM-I SET-2 Series NBSE/XII/2021 Code No. 055/12/2 Roll No.  Candidates must write the Code No. on the title page of the OMR sheet. l Please check that this question paper contains 12 pages. l Code number given on the right hand side of the question paper should be written on the title page of the OMR sheet. l Please check that this question paper contains 55 questions. l 15 minutes time has been allotted to read this question paper. ACCOUNTANCY Time Allowed : 90 Minutes Maximum Marks : 40 General Instructions: 1. This question paper comprises two PARTS – I and II. There are 55 questions in the question paper. 2. Both Part–I and Part–II are compulsory for all students. 3. Part–II is based on Analysis of Financial Statement. 4. There is an internal choice provided in each Section. • Part–I contains three Sections–A, B and C. Section A has questions from 1 to 18 and Section B has questions from 19 to 36, you have to attempt any 15 questions each in both the sections. • Part–I, Section C has questions from 37 to 41. You have to attempt any four questions. • Part–II contains two Sections–A and B. Section A has questions from 42 to 48, you have to attempt any five questions and Section B has questions from 49 to 55, you have to attempt any six questions. 5. All questions carry equal marks. There is no negative marking. 6. Specific Instructions related to each Part and subdivisions (Section) is mentioned clearly before the questions. Candidates should read them thoroughly and attempt accordingly. NBSE 2021 1 [P.T.O.

PART-I Section-A Instructions: From question number 1 to 18, attempt any 15 questions. 1. Partners are collectively called:  (a) Company (b) Registered Business (c) Firm's name (d) Firm 2. A and B are partners. B has given a loan of ` 40,000 to the firm on 1st July 2020. The partnership deed is silent upon the interest on loan. B claims 10% p.a. interest on his loan. What amount of interest is payable to B on 31st March 2021?  (a) ` 4,000 (b) ` 3,000 (c) ` 2,400 (d) ` 1,800 3. Money withdrawn against the anticipated profits by a partner for personal use on 1st July 2020 ` 10,000 and interest on drawings is 6% p.a. Books are closed on 31st March. The amount of interest for the year ending on 31st March 2021 will be:  (a) ` 600 (b) ` 450 (c) ` 350 (d) No interest will be charged 4. X and Y are partners in a firm sharing profits in 3:2. They are entitled to interest on their capitals but the net profit was not sufficient for this interest. The net profit will be distributed between partners in:  (a) Ratio of Appropriation (Ratio of Interest on capital payable to them) (b) Agreed Ratio (c) Equally (d) Profit Sharing Ratio 5. Goodwill can be sold only when:  (b) At the time of merger (a) New partner is admitted (c) Business is earning profits (d) Entire business is sold or purchased 6. SK and PK were partners in a firm sharing profits in 3:2 ratio. From 1st April 2021, they decided to change it to 3:1. For this purpose the goodwill of the firm was valued at ` 1,20,000. PK's Capital Account will be: (b) Debited with ` 30,000 (a) Debited with ` 48,000 (d) Debited with ` 18,000 (c) Credited with ` 18,000 7. X, Y and Z sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. Investment Fluctuation Reserve of ` 4,000 was available at the time of change in profit sharing ratio, and investment (market value ` 19,000) appears at ` 20,000. Y's Capital Account will be:  (b) Credited by ` 1,500 (a) Debited by ` 1,500 (d) Credited by ` 600 (c) Credited by ` 900 NBSE 2021 2

8. At the time of admission of a new partner in the firm, the new partner compensates the old partners for their loss of share in the super-profits of the firm for which he brings in an additional amount which is known as: (a) New Partner's Capital (b) Premium for Goodwill (c) Sacrifice Share (d) Revaluation Gain 9. M and N are partners sharing profits in the ratio of 5:3. They admit Q as a new partner for 20% share in the future profits of the firm. New profit sharing ratio will be:  (a) 1:1:1 (b) 3:2:1 (c) 5:3:3 (d) 5:3:2 10. A and B are partners sharing profits in the ratio of 5:3. They decided to admit C as a new partner and profit sharing ratio becomes 3:2:3. On the date of admission C's share of goodwill is ` 24,000 out of which C only bring 9,000 in cash. Capital Accounts of A and B credited with :  (b) A = ` 8,000; B = ` 16,000 (a) A = ` 16,000; B = ` 8,000 (d) A= ` 3,000; B = ` 6,000 (c) A = ` 6,000; B = ` 3,000 11. X and Y are partners sharing profits equally. They admit Z for 1/3rd share in profits. Following information is available at the time of admission of Z. Liabilities Amount (`) Assets Amount (`) Machinery 2,75,000 Furniture 51,000 Additional information: Machinery was overvalued by 10% and Furniture was undervalued by 15%. Revaluation Gain/Loss will be: (a) Gain ` 19,850 (b) Loss ` 19,850 (c) Gain ` 16,000 (d) Loss ` 16,000 12. As per SEBI Guidelines, minimum subscription shall be fixed at: (a) 90% of the issued amount (b) 90% of the authorized capital (c) 85% of the issued amount (d) 85% of the authorized capital 13. Rishi Ltd. invited applications for issuing 1,000 equity shares of ` 100 each at a premium of 20%. The whole amount was payable on application. The issue was fully subscribed. Amount received on application will be: (a) ` 1,00,000 (b) ` 1,20,000 (c) ` 80,000 (d) ` 1,10,000 NBSE 2021 3 [P.T.O.

14. 2,000 shares of `10 each issued at a premium of ` 2 per share, were forfeited for non-payment of ` 2 per share on final call. Share Capital Account will be Debited with (At the time of forfeiture): (a) ` 4,000 (b) ` 16,000 (c) ` 20,000 (d) ` 24,000 15. Discount allowed on reissue of forfeited share is debited to :  (a) Discount on issue of share A/c (b) Share forfeiture A/c (c) Profit & Loss A/c (d) General reserve A/c 16. Vinod Ltd. purchased a running business from Tata Ltd. for a sum of ` 22,00,000 by issuing 20,000 fully paid Equity Shares of ` 100 each at a premium of 10%. Total Assets were ` 26,00,000 and Bills payable were ` 2,50,000. Amount of Goodwill/Capital Reserve will be:  (a) ` 4,00,000 Capital Reserve (b) ` 4,00,000 Goodwill (c) ` 1,50,000 Capital Reserve (d) ` 1,50,000 Goodwill 17. Gagan Ltd. forfeited 600 shares on non-payment of Allotment amount, final call is not yet called up. Amount payable as : On Application ` 40 (including full premium of ` 10); Allotment ` 40; first and final call ` 30. At the time of forfeiture of shares, Share Capital Account is to be debited with the called up amount per share of: (a) ` 30 (b) ` 80 (c) ` 70 (d) ` 100 18. Vinod Ltd. purchased a machine from Luxmi Machines Ltd. for ` 3,80,000. As per purchase agreement ` 20,000 were paid in cash and balance by issue of shares of ` 100 each. How many shares to be issued to Luxmi Machines Ltd. if shares are issued at a premium of 20%? (a) 4,000 (b) 3,000 (c) 3,800 (d) 3,600 PART-I Section-B Instructions: From question number 19 to 36, attempt any 15 questions. 19. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Assertion (A): In the absence of provision in the partnership deed, loan given to a partner by the firm without any agreement to interest on loan. It is treated as interest free loan. Reason (R): In the absence of provision in the partnership deed, interest on loan to partner should be charged @ 6% p.a. In the context of the above statements, which one of the following is correct? NBSE 2021 4

Codes:  (a) (A) and (R) both are correct and (R) is the correct explanation of (A). (b) (A) and (R) both are correct but (R) is not the correct explanation of (A). (c) Only (A) is correct. (d) Only (R) is correct. 20. X and Y are partners in a firm and sharing the profit & loss in the ratio of 2:3 with a capital of ` 1,00,000 and ` 80,000 respectively. If partnership deed provides interest on capital (charge) @ 10% p.a. and loss for the year is ` 52,000, loss distributed between the partners will be:  (a) X = ` 20,800 Y = ` 31,200 (b) X = ` 28,000 Y = ` 42,000 (c) X = ` 42,000 Y = ` 28,000 (d) X = ` 31,200 Y = ` 20,800 21. X and Y are partners sharing profits in the ratio of 3:2. On 1st January 2021 they admit Z (new partner) during the year and profit sharing ratio was decided 5:3:2. Y personally guarantee that Z's share in a year will not be less than ` 40,000. Profit at the end of the year 31st March 2021 was ` 70,000 (out of which 30,000 was earned in last 3 months). How much deficiency is borne by Y? (a) ` 34,000 (b) ` 26,000 (c) ` 4,000 (d) no deficiency 22. X and Y are partners. They have provided the following information: Manager salary = ` 20,000 per Quarter Manager commission = 10% of the profit after charging such commission Total Remuneration (Salary + commission) to manager = ` 1,40,000 Profit for the year before charging salary & commission was: (a) ` 8,00,000 (b) ` 6,80,000 (c) ` 7,40,000 (d) ` 6,60,000 23. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Assertion (A): Personal assets of the partners can be used to meet the firm's liability, if firm's assets are insufficient to meet its liabilities. Reason (R): As per Law, a partnership firm is not a separate legal entity from its partners. In the context of the above statements, which one of the following is correct? Codes:  (a) (A) and (R) both are correct and (R) is the correct explanation of (A). (b) (A) and (R) both are correct but (R) is not correct explanation of (A). (c) Only (A) is correct. (d) Only (R) is correct. NBSE 2021 5 [P.T.O.

24. X and Y are partners sharing profits and losses in the ratio of 3:2. With effect from 1st January 2020 they agreed to share future profits equally. The goodwill of the firm was valued at ` 30,000. How much amount is debited or credited to X?  (a) Debit X's Capital Account by ` 2,000 (b) Debit X's Capital Account by ` 3,000 (c) Credit X's Capital Account by ` 2,000 (d) Credit X's Capital Account by ` 3,000 25. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Assertion (A): When a new partner is admitted, all free reserves and accumulated profits/losses exist in the balance sheet, should be transferred to the old partners’ capital/current accounts in their old profit sharing ratio. Reason (R): Employees Provident Fund is a liability of the firm; hence it should not be distributed among the partners. In the context of the above statements, which one of the following is correct? Codes:  (a) (A) and (R) both are correct and (R) is the correct explanation of (A). (b) (A) and (R) both are correct but (R) is not the correct explanation of (A). (c) Only (A) is correct. (d) Only (R) is correct. 26. P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1. They admitted M as a new partner for 1/8th share in the profits, which he acquired 1/16th from P and 1/16th from Q. New Profit Sharing Ratio will be:  (a) 24:13:5:6 (b) 3:2:1:1 (c) 21:13:8:6 (d) 1:1:1:1 27. A and B are partners sharing profits in the ratio of 7:3. They decided to admit Rishi as a new partner and new profit sharing ratio is 4:3:3. Rishi paid ` 12,000 as his share of goodwill. Amount of goodwill transfer to the capital account of B will be:  (a) ` 1,200 (b) ` 4,800 (c) ` 3,600 (d) Nil 28. X and Y are partners sharing profits equally. They admit Z for 1/3rd share in profits. Following information is available at the time of admission of Z. Liabilities Amount (`) Assets Amount (`) Workmen compensation reserve 60,000 NBSE 2021 6

Additional information: There was a claim on account of Workmen Compensation for ` 30,000 out of which ` 24,000 was accepted by the firm. What is the impact on Y's Capital Account? (a) His Capital Account Credited with ` 15,000 (b) His Capital Account Credited with ` 18,000 (c) His Capital Account Credited with ` 30,000 (d) No impact at all 29. How would you show unrecorded liability towards suppliers of ` 4,000? (a) Dr. Revaluation A/c and Cr. Assets side of Balance Sheet (b) Cr. Revaluation A/c and Dr. Liabilities side of Balance Sheet (c) Dr. Revaluation A/c and Cr. Liabilities side of Balance Sheet (d) Cr. Revaluation A/c and Dr. Assets side of Balance Sheet 30. Vinod Ltd. Forfeited 200 shares of ` 10 each fully called up held by X for non-payment of allotment money of ` 3 per share & Final call of ` 4 per share. These shares were reissued to Y for ` 8 per share fully paid up. Journal entry for the transfer of Gain on reissue to Capital Reserve will be:  (a) Share Forfeiture A/c Dr. 200 200    To Capital Reserve A/c Dr. 300 300 Dr. 400 400 (b) Share Forfeiture A/c Dr. 800 800    To Capital Reserve A/c (c) Share Forfeiture A/c    To Capital Reserve A/c (d) Share Forfeiture A/c    To Capital Reserve A/c 31. Yash Ltd. took over the assets of ` 4,80,000 and Liabilities of ` 80,000 of Raj Ltd. for a consideration of ` 3,20,000. An amount of ` 20,000 paid by an acceptance in favour of Raj Ltd. payable after 3 months and the balance by issue of equity shares of ` 100 each at a premium of 50%. Number of Shares to be issued:  (a) 1,800 (b) 2,000 (c) 2,200 (d) 2,400 32. Amount received on shares as 'Securities Premium' can be utilized to: (a) Write off share issue expenses (b) Provide dividend (c) Both (a) and (b) (d) None of these NBSE 2021 7 [P.T.O.

33. Yes Ltd. issued 2,50,000 Equity Shares of ` 10 each at a premium of ` 3 each payable as ` 7 on Application & Allotment (including premium) and balance on First and final call. Applications were received for 3,50,000 shares and company allotted them 2,50,000 shares. Excess money was applied towards Call. Amount of last call on 1,000 shares not received and these shares were forfeited. Which of the following is not part of the above situation? (a) Over-subscription (b) Pro-rata Allotment (c) Forfeiture of Shares (d) Under Subscription 34. Gagan Ltd. reissued 900 (75% of Forfeited shares) equity shares of ` 10 each on non-payment of allotment money and first and final call, now reissued for ` 7,200 fully paid up. Amount transferred to capital Reserve ` 6,300. What was the amount credited to share forfeiture A/c at the time of forfeiture of shares? (a) ` 6,000 (b) ` 8,100 (c) ` 10,800 (d) ` 6,300 35. Through issue of shares, a company cannot raise fund beyond its  (a) Nominal Capital (b) Issued Capital (c) Subscribed Capital (d) Paid-up Capital 36. ABC Ltd. issued 10,000 shares @ ` 10 each payable as follows; On application ` 2; On allotment ` 4; on first call ` 3; and balance on final call All the shares were subscribed by the public and allotted by the company on time. All money due was received but one shareholder Ram to whom 1,000 share allotted failed to pay the first call and his shares were forfeited immediately after 1st call. Share forfeiture account is to be credited with: (a) ` 2,000 (b) ` 6,000 (c) ` 9,000 (d) Nil PART-I Section-C Instructions: From question number 37 to 41, attempt any 4 questions. Question no.’s 37 and 38 are based on the hypothetical situation given below. X and Y are partners since last 8 years. Y has provided office space to the firm on rent in his personal building. They share profits in the ratio of 3:2. Capitals are fixed, and their Balance of capital account on 1st April 2020 are: ` 5,00,000 and ` 2,50,000. Their Current Account balance on that date: X ` 1,00,000 Credit and Y ` 28,000 Debit. NBSE 2021 8

Rent of ` 1,000 per month is to be paid to Y. As per the partnership deed X to be paid a salary of ` 5,000 per month whereas Y was to get a commission of ` 30,000 per year. Interest on capital to be calculated @ 8% p.a. and interest on drawings @ 6% p.a. X withdrew ` 15,000 on 30th September 2020 and Y withdrew ` 30,000 on 1st September 2020. Profit was ` 1,32,000 before providing above: You are required to answer the following questions: 37. Net Profit to be transferred to Profit and Loss Appropriation Account: (a) ` 1,20,000 (b) ` 1,32,000 (c) ` 1,00,000 (d) ` 1,15,000 38. Profit share of Y will be: (b) ` 30,500 (a) ` 81,000 (d) None of these (c) ` 40,500 Question no.’s 39, 40 and 41 are based on the hypothetical situation given below. Vinod Ltd. forfeited 2,000 equity shares of ` 100 each for the non-payment of first call ` 20 per share and second and final call of ` 25 per share. You are required to answer the following questions: 39. These all forfeited shares can be reissued at:  (a) Par (b) Premium (c) Discount (d) Par, premium or discount 40. State the minimum amount at which these shares can be reissued: (a) At ` 45 after allowing maximum discount (b) At ` 100 without allowing maximum discount or issuing at premium (c) At ` 55 after allowing maximum discount (d) At ` 50 after allowing maximum discount 41. If all forfeited shares reissued at ` 50 per share fully paid-up, transfer to Capital reserve will be: (a) ` 12,000 (b) ` 10,000 (c) ` 8,000 (d) ` 9,500 PART-II Section-A Instructions: From question number 42 to 48, attempt any 5 questions. 42. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A): While preparing Notes to Accounts on Share Capital, Calls-in-Arrears is shown by way of deduction from the Subscribed Capital (Subscribed but not fully paid-up). NBSE 2021 9 [P.T.O.

Reason (R): As per the Companies Act, 2013, Part I of the Schedule III, Calls in Arrears is the other current asset of the company. In the context of the above statements, which one of the following is correct? Codes: (a) (A) and (R) both are correct and (R) is the correct explanation of the (A). (b) (A) and (R) both are correct but (R) is not the correct explanation of (A). (c) Both (A) and (R) are not correct. (d) Only (A) is correct. 43. Which of the following is not presented under 'Current Liabilities' in the Balance Sheet of a Company?  (a) Short-term Borrowings (b) Trade Payables (c) Short-term Provision (d) Deferred Tax Liabilities 44. Which objective is useful for the external user of financial statements?  (a) Assessing the Earning Capacity or profitability (b) Assessing the Short-term and Long-term Solvency (c) Inter-firm Comparison of the Firm (d) All of these 45. Current Ratio is:  (a) Solvency ratio (b) Liquidity ratio (c) Activity ratio (d) Probability ratio 46. Net profit ratio will be:  (a) (Net profit) × 100 (Net profit) (Revenue from operation) (b) (Cost of Revenue from operation) × 100 (c) (Gross profit) × 100 (Gross profit) (Revenue from operation) (d) (Cost of Revenue from operation) × 100 47. Capital employed is equal to:  (a) Total asset – total debt (b) Total asset – current liability (c) Shareholders’ fund + Current liability (d) Shareholders’ fund + Non-current liability + current liability 48. Debt equity ratio = 2:1; Total asset to debt ratio = 2:1; Total asset = ` 4,00,000. Shareholders’ fund will be: (a) ` 1,00,000 (b) ` 2,00,000 (c) ` 4,00,000 (d) ` 8,00,000 NBSE 2021 10

PART-II Section-B Instructions: From question number 49 to 55, attempt any 6 questions. 49. Match the following: 1. Money received against share warrant A. Non-current liability 2. Deferred tax liability B. Fixed Intangible asset 3. Deferred tax asset C. Shareholders’ Fund 4. Computer software D. Non-current asset (a) 1-C, 2-A, 3-D, 4-B (b) 1-D, 2-A, 3-B, 4-C (c) 1-D, 2-C, 3-B, 4-A (d) 1-C, 2-B, 3-D, 4-A 50. Financial statement ignores: (a) Qualitative elements (b) Quantitative elements (c) Both (a) and (b) (d) Neither (a) nor (b) 51. A firm made credit Revenue from Operations of ` 8,20,000 during the year are ` 1,80,000. If the trade receivables turnover ratio is 10 times, closing trade receivables are ` 8,000 more than the opening trade receivables. Closing Trade Receivable will be: (a) ` 78,000 (b) ` 82,000 (c) ` 86,000 (d) ` 90,000 52. Current ratio of a firm is 5:2. Its current liabilities are ` 60,000 and inventory are ` 1,80,000. Its Liquid Ratio will be:  (a) 2:1 (b) 1:2 (c) 2:5 (d) 5:2 53. Given below are two statements. one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A): Debt Equity Ratio of Vinod Ltd. is 2:1. If a Machinery is purchased by the company by issuing 2,00,000 Equity Shares to the Vendors of Machinery, Debt Equity ratio will Decrease. Reason (R): No Change in Debt but Equity is increased. In the context of the above statements, which one of the following is correct? Codes:  (a) (A) and (R) both are correct and (R) is the correct explanation of (A). (b) (A) and (R) both are correct but (R) is not the correct explanation of (A). (c) Only (A) is correct. (d) Only (R) is correct. NBSE 2021 11 [P.T.O.

54. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A): While calculating the Current Ratio, Loose Tools and Stores & Spares are not included in the current asset. Reason (R): Loose Tools and Stores & Spares are not held for sale or conversion into cash. In the context of the above statements, which one of the following is correct? Codes: (a) (A) and (R) both are correct and (R) is the correct explanation of (A). (b) (A) and (R) both are correct but (R) is the not correct explanation of (A). (c) Only (A) is correct. (d) Only (R) is correct. 55. Total Debt ` 7,00,000; Share Capital ` 15,00,000; Reserve and Surplus ` 10,00,000; Current Liabilities ` 5,00,000; Working Capital ` 7,00,000. Total asset to debt ratio will be:  (a) 0.78:1 (b) 1.28:1 (c) 16:1 (d) 1:16 NBSE 2021 12