Class 12 Accountancy Sample Paper Term 1 With Solutions Set A

Please refer to Class 12 Accountancy Sample Paper Term 1 With Solutions Set A provided below. The Sample Papers for Class 12 Accountancy have been prepared based on the latest pattern issued by CBSE. Students should practice these guess papers for class 12 Accountancy to gain more practice and get better marks in examinations. The Term 1 Sample Papers for Accountancy Standard 12 will help you to understand the type of questions which can be asked in upcoming examinations.

Term 1 Sample Paper for Class 12 Accountancy With Solutions Set A

Part – I
Section – A

1. When capitals of partners are fixed, drawings are recorded in ……… .
(a) partners’ capital account
(b) partners’ current account
(c) profit and loss appropriation account
(d) None of these   

2. Other than minors …………… categories of individuals cannot be admitted in a partnership firm.
(a) person of unsound mind
(b) person disqualified by the law
(c) Both (a) and (b)
(d) None of these 

3. If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the share capital account should be debited with
(a) ₹ 8
(b) ₹ 10
(c) ₹ 6
(d) ₹ 2.   

4. X and Y are partners in a firm sharing profits and losses in the ratio of 5 : 1. 

If value of machinery in the balance sheet is undervalued by 20%, then at what value will machinery be shown in new balance sheet?
(a) ₹ 4,400
(b) ₹ 4,800
(c) ₹ 3,200
(d) ₹ 5,000   

5. If vendors are issued fully paid shares of ₹ 1,00,000 in consideration of net assets of ₹ 1,20,000 the balance of ₹ 20,000 will be ……… .
(a) credited to Goodwill Account
(b) credited to Capital Reserve Account
(c) credited to Vendor’s Account
(d) credited to Profit & Loss Account   

6. Match the column.

Codes
       A   B  C 
(a) (iii) (i) (ii)
(b) (i)  (ii) (iii)
(c) (ii)  (i) (iii)
(d) (iii) (ii) (i)   

7. On the admission of a new partner
(a) old firm is dissolved.
(b) old partnership is dissolved.
(c) Both old partnership and firm are dissolved.
(d) Neither partnership nor firm is dissolved. 

8. XYZ Ltd. reissued 2,000 shares which where forfeited by crediting share forfeiture account by ₹ 3,000. These shares were reissued at ₹ 9 per share. The amount transferred to capital reserve will be
(a) ₹ 3,000
(b) ₹ 2,000
(c) ₹ 1,000
(d) Nil   

9. When a new partner does not bring his share of goodwill in cash, the amount is debited to
(a) Cash A/c
(b) Premium A/c
(c) Current A/c of the new partner
(d) Capital A/cs of the old partners

10. X and Y are partners in a firm sharing profits and losses in the ratio of 5 : 7 respectively. Their balance sheet shows creditors at ₹ 1,00,000. If creditors amounting to ₹ 12,000 are to be written-off as they are not likely to be claimed, what will be the new value of creditors to be shown in new balance sheet?
(a) ₹ 12,000
(b) ₹ 1,12,000
(c) ₹ 88,000
(d) None of these 

11. Mcvities International Ltd issued 2,50,000 shares of ₹ 10 each at a premium of ₹ 2 payable as on application ₹ 3, on allotment ₹ 4 (including premium), on first call ₹ 3 on second and final call ₹ 2. 
Ben who holds 1,000 shares failed to pay the first call money. The company has forfeited the 1,000 shares after the first call. On forfeiture, amount debited to share  capital account will be ……… .
(a) 8,000
(b) 4,000
(c) 3,000
(d) 2,000 

12. ……… of a new partner results in reconstitution of the firm.
(a) Admission
(b) Retirement
(c) Death
(d) Change in profit sharing ratio   

13. When shares offered to public are completely subscribed, it is ………………..
(a) full subscription of shares
(b) under subscription of shares
(c) no subscription of shares
(d) None of these   

14. What will be the amount of interest, if a partner withdrew ₹ 1,000 at the end of each month from 1st June, 2019 till the end of the accounting year upto 31st March, 2020?
Interest on drawings is 12% per annum.
(a) ₹ 550
(b) ₹ 600
(c) ₹ 575
(d) ₹ 700   

15. If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of ……… .
(a) ₹ 10 per share
(b) ₹ 8 per share
(c) ₹ 5 per share
(d) ₹ 2 per share   

16. Accumulated profits are transferred to…………… account at the time of change in profit sharing ratio.
(a) revaluation
(b) partner’s capital
(c) balance sheet
(d) None of these 

17. ……… days notice period is given to a defaulter on forfeiture.
(a) 7 days
(b) 14 days
(c) 21 days
(d) 28 days   

18. A and B are partners sharing profits and losses as 2 : 1. C is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at ₹ 94,500. C brings required goodwill in cash. Goodwill amount will be credited to
(a) A ₹ 14,000 and B ₹ 7,000
(b) A ₹ 12,000 and B ₹ 9,000
(c) A ₹ 21,000
(d) A ₹ 94,500   

Section – B

19. Which of the following is true in relation to a admission of a new partner in the firm?
(i) For procuring additional capital
(ii) For acquiring additional managerial skills
(iii) To benefit from the goodwill of the admitted partner
(iv) All of the above
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) (i), (ii) and (iii)   

20. On 28th February, 2020, the first call of ₹ 2 per share became due on 25,000 equity shares allotted by Walmart Ltd. Raju , a holder of 500 shares did not pay the first call money. Bhanu , a holder of 375 shares paid the second and final call of ₹ 4 per share along with the first call. Journal entry for the amount received will be ………… .

21. A firm having the assets of ₹ 2,00,000 and liabilities of ₹ 84,000 earns the annual profit of ₹ 18,000. The rate of normal profit being 12%, the amount of goodwill by capitalisation of super profit method, will be ……… .
(a) ₹ 13,290
(b) ₹ 36,000
(c) ₹ 34,000
(d) ₹ 4,080   

22. XYZ Ltd invited applications for issuing 600, shares of ₹ 100 each at a premium of ₹ 50 per share. The full amount was payable on application. Applications were received for 800 shares. Applications for 200 shares were rejected and application money was refunded. Shares were allotted to the remaining applicants. Journal entry for adjusting the application money received in the books of XYZ Ltd is as follows 
Share Application and Allotment A/c Dr  A
   To Share Capital A/c                                 B
   To Securities Premium Reserve A/c         C
   To Bank A/c                                               D
Here A, B, C, D are
(a) ₹ 1,20,000, ₹ 30,000, ₹ 30,000, ₹ 60,000 respectively
(b) ₹ 1,20,000, ₹ 60,000, ₹ 30,000, ₹ 30,000 respectively
(c) ₹ 60,000, ₹ 30,000, ₹ 15,000, ₹ 15,000 respectively
(d) ₹ 60,000, ₹ 15,000, ₹ 15,000, ₹ 30,000 respectively   

23. X, Y and Z are partners sharing profits in the ratio of 3 : 3 : 2. As per the partnership agreement, Z is to get aminimumamount of ₹ 8,000 as his share of profits every year and any deficiency on this account is to be personally borne by X. The net profit for the year ended 31stMarch, 2020 amounted to ₹ 31,200. Calculate the amount of deficiency to be borne by X.
(a) ₹ 100
(b) ₹ 400
(c) ₹ 800
(d) ₹ 200   

24. Authorised capital of a company is ₹ 2,50,000 which is divided in 1,750 equity shares of ₹ 100 each and 750, 10% preference shares of ₹ 100 each. The company issued 1,000  equity shares and 5,00 preference shares. The public subscribed for 450 equity shares and 225 preference shares out of the issued shares. Subscribed share capital will be … .
(a) ₹ 2,50,000
(b) ₹ 2,500
(c) ₹ 45,000
(d) ₹ 67,500   

25. X and Y were in partnership sharing profits and losses in the ratio of 2 : 1. They admitted Z as a new partner. Z brought ₹ 10,000 as her share of goodwill premium, which was entirely credited to X’s capital account. On the date of admission, goodwill of the firm was valued at ₹ 30,000. Calculate the new profit sharing ratio.
(a) 1:2:1
(b) 2:1:1
(c) 1:1:1
(d) 3:2:1   

26. Zenx Ltd is registered with a capital of 5,00,000 equity shares of ₹ 10 each. 3,00,000 equity shares were offered for subscription to public. Applications were received for 3,00,000 shares. All calls were made and amount was duly received except final call of ₹ 2 on 40,000 shares. What will be the amount of calls-in-arrear?
(a) ₹ 40,000
(b) ₹ 80,000
(c) ₹ 3,20,000
(d) ₹ 32,000   

27. A and B were partners in a firm sharing profits and losses in the ratio of 3 : 1. They admitted C as a new partner. A sacrificed 1/4th of his share and B sacrificed 1/4th of her share in favour of C. C’s share in the profits of the firm will be
(a) 5 / 8
(b) 1/ 8
(c) 1 / 4
(d) 7/ 16   

28. Zenplex Ltd issued 10,000 equity shares of ₹ 10 each at a premium of ₹ 2 payable along with application. All the shares were applied and duly allotted. Amount at the time of application will be ……… .
(a) ₹ 1,10,000
(b) ₹ 1,30,000
(c) ₹ 1,00,000
(d) ₹ 1,20,000   

29. Assertion (A) Interest on loan is recorded in profit and loss account.
Reason (R) Interest on loan is a charge against profit.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true 

30. A company forfeited 400 shares of ₹ 10 each on which application money of ₹ 3 has been paid. Out of these, 200 shares were reissued as fully paid up and ₹ 400 has been  transferred to capital reserve. The rate at which these shares were reissued is ……… .
(a) ₹ 10 per share
(b) ₹ 9 per share
(c) ₹ 11 per share
(d) ₹ 8 per share   

31. Assertion (A) Change in profit sharing ratio among existing partners results in reconstitution of partnership firm.
Reason (R) The relationship among partner changes at the time of change in profit sharing ratio.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

32. Amount of premium brought in by a new partner will be shared by the existing partners in ……… .
(a) old ratio
(b) new ratio
(c) gaining ratio
(d) sacrificing ratio   

33. Assertion (A) That portion of authorised share capital which is used for subscription whether subscribed or not is known as issued share capital.
Reason (R) Issued capital is always more than the authorised share capital.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

34. Which of the following is/are method(s) of valuation of goodwill?
(i) Average profit method
(ii) Super profit method
(iii) Capitalisation method
(a) Only (i)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii) 

35. Net profit is always taken after ……… in the profit and loss appropriation account
(a) interest on partner’s loan
(b) manager’s commission
(c) Both (a) and (b)
(d) None of these 

36. A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. If, C acquires 1/5 th share from A, then new profit sharing ratio will be ……… .
(a) 5 : 4 : 2
(b) 5 : 4 : 1
(c) 3 : 4 : 3
(d) None of these   

Section – C

Zara Ltd. is a partnership business with Sia, Tia and Mia as partners engaged in production and sales of readymade garments. Their capital contributions were ₹ 5,00,000, ₹ 5,00,000, ₹ 8,00,000 respectively with the profit sharing ratio of 5 : 5 : 8. As they are now looking forward to expanding their business, it was decided that they would bring in sufficient cash to double their respective capitals. This was duly followed by Sia and Tia, but due to unavoidable reasons, Mia could not do so and ultimately it was agreed that a new partner, Pia should be admitted who would bring in the amount that Mia could not bring and whose share of profits will be the half of Mia’s share which would be sacrified by Mia only. Consequent to this agreement, Pia was admitted and she brought in the required capital and ₹ 30,000 as premium for goodwill.

37. What will be the new profit sharing ratio of the partner?
(a) 1 : 1 : 1 : 1
(b) 5 : 5 : 8 : 8
(c) 5 : 5 : 4 : 4
(d) None of these   

38. What is the amount of capital brought in by the new partner Pia?
(a) ₹ 5,00,000
(b) ₹ 8,00,000
(c) ₹ 4,00,000
(d) ₹ 3,00,000 

Bentley Ltd. was incorporated on 1st April, 2020 with a nomial capital of ₹ 1,50,000 divided into 3,000 equity shares of ₹ 50 each. It purchased assets worth ₹ 50,000 from Dabur Ltd. In consultation with the vendors, it issued 1,000 shares as fully paidup to vendors for purchase consideration.
Also, the company offered 1,000 shares for public subscription at a premium of ₹ 5 per share payable as ₹ 15 on application, ₹ 15 (including premium) on allotments, ₹ 10 on first call and ₹ 15 on final call. Application were received for 975 shares which were duly alloted.
Till date final call has not yet been made and all the shareholders have paid except Raju who did not pay his first call money on 100 shares. Shares of Raju were forfeited. These shares were reissued @ 35 per share paid up.

39. What amount of shares have been issued to the vendors of assets?
(a) ₹ 1,50,000
(b) ₹ 50,000
(c) ₹ 1,50,000
(d) ₹ 2,00,000   

40. On forfeiture the amount debited to share capital account will be
(a) ₹ 2,500
(b) ₹ 1,000
(c) ₹ 3,500
(d) ₹ 2,000   

41. Amount transferred to capital reserve will be
(a) ₹ 2,500
(b) ₹ 3,500
(c) ₹ 1,000
(d) ₹ 1,500   

Part – II
Section – A

42. For a ………… financial statement analysis is not significant.
(a) taxing officer
(b) chief military officer
(c) shareholder
(d) share market   

43. Assertion (A) Higher proportion of shareholders’ funds in financing the assets is a positive feature as it provides security to creditors.
Reason (R) Proprietary ratio expresses relationship of proprietor’s (shareholders) funds to net assets.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true 

44. Which one of the following statements is/are not true?
(i) Conversion of debentures into preference shares will decrease debt-equity ratio.
(ii) Long-term liabilities due for payment within a year should be treated as current liabilities.
(iii) Higher operating ratio indicates higher profits.
(iv) Cost of sales is a better numerator than sales while calculating stock turnover.
(a) (i) and (ii)
(b) (ii) and (iii)
(c) Only (iii)
(d) (iii) and (iv)   

45. Assuming that debt to equity ratio is 2 : 1, which of the following transactions will have no effect on it?
(a) Purchase of fixed assets by taking loan of ₹ 10,00,000
(b) Sale of fixed assets at a loss of ₹ 30,000
(c) Issue of bonus shares
(d) Declaration of final dividend 

46. Which of the following is not an item of sub-head other current liabilities in balance sheet?
(a) Creditors
(b) Outstanding expenses
(c) Advance income
(d) Both (b) and (c)   

47. Licenses and franchise is a item of ……… assets under sub-head fixed assets and the major head non-current assets.
(a) intangible
(b) inventories
(c) trade receivables
(d) tangible 

48. Ratio analysis under financial statement analysis is significant as it
(i) helps in window dressing
(ii) does not requires any standards
(iii) ignores qualitative factors
(iv) helps in locating weak points of the firm
(a) (i) and (ii)
(b) (ii) and (iii)
(c) Only (iv)
(d) (i) and (iii) 

Section – B

49. What will be the value of shareholder’s fund, if 12% debentures are ₹ 2,50,000 and debt-equity ratio is 2.5 : 1?
(a) ₹ 2,50,000
(b) ₹ 1,00,000
(c) ₹ 2,00,000
(d) ₹ 1,50,000 

50. Assertion (A) Ratio analysis is a significant tool for financial statement analysis.
Reason (R) Analysis of financial statements with the help of accounting ratio is known as ratio analysis.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true 

51. Which of the following is true in regard to other names of liquid ratio?
(i) Quick ratio
(ii) Acid test ratio
(iii) Working capital ratio
(iv) Stock turnover ratio
(a) (i) and (ii)
(b) (i) and (iii)
(c) (iii) and (ii)
(d) (iii) and (iv)   

52. Under which head, calls-in-advance is shown in the balance sheet of the company?
(a) Current assets
(b) Long-term liability
(c) Current liability
(d) None of these 

53. Assertion (A) Inventory turnover ratio will improve when goods costing ₹ 10,000 are sold for ₹ 9,000.
Reason (R) When goods costing ₹ 10,000 are sold for ₹ 9,000, cost of revenue from operations  increases whereas average inventory decreases.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

54. If sales is ₹ 42,000 sales return is ₹ 2,000 and cost of revenue from operations ₹ 32,000, gross profit ratio will be
(a) 20%
(b) 25%
(c) 15%
(d) 10% 

55. If cash balance is given as ₹ 10,000; Trade payable ₹ 80,000; Inventory ₹ 1,00,000; Trade receivable ₹ 1,30,000; Prepaid expenses ₹ 20,000 and Creditors ₹ 60,000, what will be the amount of current assets?
(a) ₹ 2,50,000
(b) ₹ 2,60,000
(c) ₹ 3,20,000
(d) ₹ 2,40,000