Accountancy 67/1/3 2025-2026 Commerce (English Medium) Class 12 Question Paper Solution

The books of Ashish and Vishesh showed that their capital employed on 31^st March, 2025, was ₹ 4,00,000. If the normal profits are ₹ 60,000 and super profits are ₹ 40,000, the normal rate of return is ______.

10%

25%

15%

4%

₹ 1 per share

₹ 6 per share

₹ 8 per share

₹ 5 per share

Lalita, Shivani and Madhuri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Madhuri retired from the firm on 31st March, 2025. The balance in her capital account on the date of her retirement was ₹ 1,80,000. Lalita and Shivani agreed to pay her ₹ 2,25,000 in full settlement of her claim. The goodwill of the firm on Madhuri’s retirement was ______.

₹ 1,80,000

₹ 2,25,000

₹ 45,000

₹ 2,70,000

Chaman and Vatika were partners in a firm sharing profits and losses in the ratio of 4 : 5. They admitted Mohan as a new partner for 1/5^th share in the profits of the firm. Mohan acquired his share equally from Chaman and Vatika. The new profit-sharing ratio of Chaman, Vatika and Mohan will be ______.

2 : 2 : 1

31 : 41 : 18

41 : 31 : 18

7 : 8 : 5

Sidhi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 31st March, 2025, their firm was dissolved. At the time of dissolution, a debtor amounting to ₹ 25,000, whose debt had been previously written off as bad debt, paid 40% of the amount. The accounting treatment for the above transaction will be:

₹ 10,000 will be credited to the bad debts recovered account.

₹ 10,000 will be credited to the debtor’s personal account.

₹ 10,000 will be credited to the realisation account.

Nidhi and Kunal were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their capitals were ₹ 3,00,000 and ₹ 2,00,000, respectively. They were entitled to interest on capital @ 6% p.a. The firm earned a profit of ₹ 15,000 during the year. Interest on partners’ capitals will be ______.

Nidhi ₹ 18,000; Kunal ₹ 12,000

Nidhi ₹ 7,500; Kunal ₹ 7,500

Nidhi ₹ 9,000; Kunal ₹ 6,000

Nidhi ₹ 12,000; Kunal ₹ 3,000

Dharam, Karam and Raman were partners in a firm sharing profits and losses in the ratio of 7 : 8 : 5. On 31st March, 2025, Raman retired from the firm. Dharam and Karam decided to share profits in future in the ratio of 11 : 9. Their gaining ratio will be ______.

1 : 1

1 : 2

4 : 1

2 : 1

Deen, Raju and Hari were partners in a firm sharing profits and losses in the ratio of 7 : 6 : 7. On 31st March, 2025, Raju died. Deen and Hari decided to take over Raju’s share equally. The new profit sharing ratio between Deen and Hari will be ______.

1 : 1

7 : 6

6 : 7

3 : 2

Surya Ltd. issued 50,000 equity shares of ₹ 10 each. The amount was payable as follows:

on Application - ₹ 3 per share;

on Allotment - ₹ 2 per share;

on First and Final Call - the balance.

Usha, to whom 700 shares were allotted, paid her entire share money on allotment. Raj, to whom 300 shares were allotted, did not pay the first and final call. The amount to be debited to the bank account for first and final call after it becomes due will be:

₹ 2,50,000

₹ 2,48,500

₹ 2,45,000

₹ 2,52,000

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is correct, but Reason (R) is incorrect.

Assertion (A) is incorrect, but Reason (R) is correct.

credited, ₹ 3,000

debited, ₹ 3,000

debited, ₹ 3,600

credited, ₹ 3,600

T. D. Ltd. issued ₹ 10,00,000, 9% debentures at a discount of 10%, redeemable at a certain rate of premium. On the issue of these 9% debentures, the premium on redemption of debentures account was credited by ₹ 1,00,000. The amount of ‘loss on issue of debentures’ was ______.

₹ 1,00,000

₹ 2,00,000

₹ 3,00,000

Nil

On 1st April, 2024, Rajat Ltd. issued 6,000, 10% debentures of ₹ 100 each at a discount of 8%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be ______.

₹ 60,000

₹ 48,000

₹ 36,000

₹ 30,000

Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2024, Tej had given a loan of ₹ 50,000 to the firm. The net profit of the firm before charging interest on the loan was ₹ 3,75,000. The firm closes its books on 31^st March every year. The amount of profit transferred from profit and loss account to profit and loss appropriation account will be ______.

₹ 3,75,000

₹ 3,72,000

₹ 4,25,000

Ashok and Vasu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their capitals on 31^st March, 2025, were ₹ 3,00,000 and ₹ 3,75,000, respectively. During the year ended 31^st March, 2025, Vasu withdrew ₹ 40,000 for his personal use and introduced ₹ 1,50,000 as additional capital in the business. Profit of the firm for the year ended 31^st March, 2025 was ₹ 1,40,000. Vasu’s capital at the beginning of the year was ______.

₹ 2,75,000

₹ 4,25,000

₹ 2,05,000

₹ 3,45,000

Soni and Kush were partners in a firm sharing profits and losses in the ratio of 4 : 5. Hitesh was admitted as a new partner for a 1/5^th share in the profits of the firm. After all adjustments regarding general reserve, goodwill, and gain on revaluation of assets and reassessment of liabilities, the balances in capital accounts of Soni and Kush were ₹ 7,00,000 and ₹ 13,00,000, respectively. Hitesh brought in proportionate capital for his 1/5th share in the profits of the firm. The amount of proportionate capital brought in by Hitesh was ______.

₹ 25,00,000

₹ 20,00,000

₹ 5,00,000

₹ 10,00,000

It is a primary security.

It is an additional security.

It is a subsidiary security.

It is a secondary security.

Common Seal

Perpetual Succession

Body Corporate

Limited Liability

New profit-sharing ratio

Old profit-sharing ratio

Sacrificing/Gaining ratio

Equally

Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1^st April, 2025, they decided to share the profits equally. On that date, furniture was appearing in the books of the firm at ₹ 4,50,000. At the time of the change in the profit-sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at ______.

₹ 4,05,000

₹ 4,50,000

₹ 4,95,000

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners’ drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025, Madhvi withdrew ₹ 40,000 at the end of every month for her personal use. Interest on Madhvi’s drawings will be ______.

₹ 19,200

₹ 4,800

₹ 2,400

₹ 1,600

The average profit of a firm during the last few years is ₹ 8,00,000. In a similar business, the normal rate of return is 10% of the capital employed. Assets of the business were ₹ 60,00,000, and its external liabilities were ₹ 20,00,000. Calculate the value of goodwill by:

1. Capitalisation of super profits method
2. Super profit method if the goodwill is valued at four years’ purchase of super profits.

Raunak Cotton Ltd. purchased machinery of ₹ 6,80,000 from Heavy Machines Ltd. The payment to Heavy Machines Ltd. was made by issuing 10,500 equity shares of ₹ 50 each at a premium of 20% and the balance through a cheque.

Pass the necessary journal entries for the above transactions in the books of Raunak Cotton Ltd.

Neo Ltd. took over the assets of ₹ 25,00,000 and liabilities of ₹ 12,00,000 of Madura Ltd. for a purchase consideration of ₹ 18,00,000. Neo Ltd. issued 11% debentures of ₹ 100 each at a discount of 10% in full satisfaction of the purchase consideration.

Pass the necessary journal entries for the above transactions in the books of Neo Ltd.

Sameer and Manveer were partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st April, 2024, they admitted Sandeep as a new partner for 1/5th share in the profits with a guaranteed minimum amount of ₹ 80,000. Sameer and Manveer continue to share profits as before, but agreed to bear any deficiency on account of the guarantee to Sandeep in the ratio of 3 : 5. The net profit of the firm for the year ended 31st March, 2025 was ₹ 3,20,000. Prepare Profit and Loss Appropriation Account of Sameer, Manveer and Sandeep for the year ended 31st March, 2025.

Sudhir and Rajeev were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their partnership deed provided that Sudhir will be allowed a commission of 7% of the net profit.

The net profit of the firm for the year ended 31st March, 2025, was ₹ 1,00,000.

Pass necessary journal entries for allowing commission to Sudhir and transferring the same to Profit and Loss Appropriation Account.

On 1st April 2024, Yash Ltd. invited applications for issuing 20,000, 9% debentures of ₹ 100 each at a discount of 6%. These debentures were repayable at a premium of 10% after five years. The issue was fully subscribed, and the debentures were allotted in full to all the applicants. On 31st March, 2025, the company had a balance of ₹ 1,80,000 in its Securities Premium Account.

Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. As per the terms of the partnership deed, on the death of any partner, the goodwill of the firm will be calculated on the basis of four times the average profits of the last three years. Hina died on 1st July 2025. The Profits for the last three years were:

2022-23: ₹ 4,75,000

2023-24: ₹ 4,05,000

2024-25: ₹ 3,20,000

Hina’s share of profit up to the date of death was to be calculated on the basis of the previous year’s profit.

1. Calculate the goodwill of the firm and Hina’s share of goodwill.
2. Calculate Hina’s share in the profits of the firm till the date of her death.
3. Pass necessary journal entries for the treatment of goodwill without opening a goodwill account and for Hina’s share of profit at the time of her death.

Sanjay and Vijay were partners in a firm sharing profits and losses in the ratio of 4 : 3. On 1st April, 2025 they admitted Babul as a new partner for `2/5`th share in the profits of the firm. On Babul’s admission, the following was agreed upon:

1. The new profit sharing ratio of Sanjay, Vijay and Babul will be 3 : 3 : 4.
2. The goodwill of the firm will be valued at four years’ purchase of the average profits of the last three years. The profits of the previous three years were:
   

   Year	Profit (₹)
   2022-23	16,500
   2023-24	17,500
   2024-25	18,500

3. Babul will bring his share of goodwill premium in cash, half of which will be withdrawn by Sanjay and Vijay.
4. On Babul’s admission, revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 70,000.
5. At the time of Babul’s admission, the firm had a General Reserve of ₹ 28,000.
6. After making necessary adjustments relating to goodwill, loss on revaluation and general reserve, the capital accounts of Sanjay and Vijay showed balances of ₹ 3,50,000 and ₹ 2,50,000, respectively. Babul brought proportionate capital for his `2/5`th share in the profits of the firm.

Showing your workings clearly, pass the necessary journal entries for the above transactions in the books of the firm on Babul's admission.

Anuj, Divij and Shilpa were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their Balance Sheet as at 31st March, 2023 was as follows:

Anuj retired on the above date on the following terms:

1. Anuj’s share of goodwill was valued at ₹ 90,000, and the same was to be treated without opening a goodwill account.
2. Revaluation of assets and reassessment of liabilities resulted in a gain of ₹ 25,000.
3. Amount due to Anuj was transferred to his loan account, to be paid in two equal yearly instalments plus interest @ 12% p.a. on the unpaid balance starting from 31st March, 2024.

Prepare Partners’ Capital Accounts and Anuj’s Loan Account till it is fully discharged.

Answer the following questions on the basis of the above information:

1. The nominal capital of Dharma Ltd. is:
   1. ₹ 30,00,000
   2. ₹ 3,00,000
   3. ₹ 9,00,000
   4. ₹ 33,00,000
2. The issued capital of the company is:
   1. ₹ 3,00,000
   2. ₹ 30,00,000
   3. ₹ 9,00,000
   4. ₹ 33,00,000
3. Subscribed and fully paid capital of Dharma Ltd. will be:
   1. ₹ 9,00,000
   2. ₹ 8,30,000
   3. ₹ 8,56,000
   4. Nil
4. The amount of ‘Share Capital’ presented in the Balance sheet of Dharma Ltd. under ‘Shareholders' Funds’ will be:
   1. ₹ 8,30,000
   2. ₹ 8,59,000
   3. ₹ 9,00,000
   4. ₹ 30,00,000
5. In the Notes to Accounts, the amount to be shown under ‘Share Forfeiture Account’ will be:
   1. ₹ 32,000
   2. ₹ 12,000
   3. ₹ 44,00,000
   4. ₹ 29,000
6. Subscribed and not fully paid capital of Dharma Ltd. will be:
   1. ₹ 9,00,000
   2. ₹ 8,30,000
   3. ₹ 8,56,000
   4. Nil

Generic Pharma Ltd. invited applications for using 3,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:

on application and allotment – ₹ 4 per share (including premium of ₹ 2 per share)

on first and final call – balance

Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected, and the application money was refunded. Shares were allotted on a pro-rata basis to the remaining applicants. Excess money received on applications was adjusted towards sums due on the first and final call. Jain, an applicant for 3,600 shares, failed to pay the first and final call. His shares were forfeited.

Pass the necessary journal entries in the books of Generic Pharma Ltd. for the above transactions. Open ‘calls in arrears account’ and ‘calls in advance account’, wherever necessary.

Pass necessary journal entries for the forfeiture and reissue of forfeited shares in the following case:

Diksha Ltd. forfeited 3,000 shares of ₹ 10 each for non-payment of the final call of ₹ 2 per share. Out of these, 600 shares were reissued as fully paid up in such a way that ₹ 4,200 was transferred to the capital reserve.

Pass necessary journal entries for the forfeiture and reissue of forfeited shares in the following case:

Statement - I: In case of non-financial enterprises, receipts of interest and dividend are classified as financing activities.

Statement - II: In case of financial enterprises, receipts of interest and dividend are classified as investing activities.

Choose the correct option from the following:

Both the Statements are true.

Statement I is true, and Statement II is false.

Statement I is false, and Statement II is true.

Purchase of marketable securities or short-term investments is not considered for the preparation of the cash flow statement because ______.

These are current assets

These constitute cash equivalents

These are intangible assets

These are tangible assets

Which of the following will not amount to a cash outflow from operating activities?

Purchase of marketable securities

Cash payment to suppliers of goods

Payment of employee benefit expenses

Payment of insurance premium

Which of the following transactions will affect the ‘Gross Profit Ratio’of a company:

1. Revenue from operations ₹ 1,00,000.
2. Purchased goods worth ₹ 70,000.
3. Goods costing ₹ 15,000 withdrawn for personal use.
4. Goods costing ₹ 50,000 sold for ₹ 60,000.

(iv)

(i) and (ii)

(ii) and (iii)

(i) and (iii)

The process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of Balance Sheet and the Statement of Profit and Loss is called ______.

Comparative Statement Analysis

Cash Flow Analysis

Financial Analysis

Common Size Analysis

Ratios calculated to measure the ability of the business to pay the amount due to stakeholders as and when it is due are known as ______.

Solvency ratios

Liquidity ratios

Activity ratios

Profitability ratios

From the following Balance sheets of Royal Sugar Mills Ltd. as at 31st March, 2024 and 2025, prepare a Comparative Balance Sheet:

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013:

1. Stores and spare parts
2. Livestock
3. Public deposits

From the following information, calculate:

1. Current ratio and
2. Debt to capital employed ratio

From the following information, calculate:

1. Debt-Equity Ratio and
2. Total Assets to Debt ratio

For the year ending 31st March, 2025, Gavi Ltd. made a profit of ₹ 8,00,000 after charging depreciation of ₹ 50,000 on fixed assets and transferring ₹ 1,15,000 to the general reserve.

Goodwill written off during the year was ₹ 75,000. During the year, the company sold machinery of the book value of ₹ 2,00,000 at a gain of ₹ 30,000. During the year, the trade receivables decreased by ₹ 20,000 and trade payables increased by ₹ 25,000. Prepaid expenses decreased by ₹ 1,000, and outstanding rent increased by ₹ 5,000.