Accountancy 67/5/1 2025-2026 Commerce (English Medium) Class 12 Question Paper Solution

Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1^st October, 2024 Arora withdrew 30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora’s drawings for the year ended 31^st March, 2025 was:

₹ 1,800

₹ 2,700

₹ 450

₹ 3,600

Assertion (A): At the time of admission of a new partner in a partnership firm, the newly admitted partner brings an agreed amount of capital either in cash or in kind.

Reason (R): On admission, the new partner gets the right to acquire share in the assets and profits of the partnership firm.

Choose the correct option from the following:

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

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.

Merak Ltd. forfeited 6,000 equity shares of ₹ 10 each for non-payment of final call of ₹ 3 per share. The minimum amount per share at which these shares can be reissued will be:

₹ 3

₹ 7

₹ 10

₹ 6

Nori Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%. Loss on issue of debentures account will be debited by:

₹ 20,00,000

₹ 1,00,000

₹ 3,00,000

₹ 2,00,000

Guru and Prakash were partners in a firm sharing profits and losses in the ratio of 7 : 3. They admitted Anu as a new partner for 1/4^th share in the profits of the firm. On the date of Anu’s admission, the Profit and Loss Account of Guru and Prakash showed a credit balance of ₹ 40,000. The necessary journal entry for its treatment will be:

Samta, Mamta and Geeta were partners in a firm sharing profits and losses in the ratio of 11 : 5: 4. On 31^st March, 2025 Samta died. On Samta’s death, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry for the treatment of goodwill on Samta’s death will be:

Mansi and Uma were partners in a firm and their capitals were ₹ 4,00,000 and ₹ 2,00,000 respectively. Normal rate of return in a similar business was 15% and the goodwill of the firm was valued at ₹ 4,00,000. If goodwill was calculated at four years purchase of super profits, the average profits of the firm were:

₹ 90,000

₹ 60,000

₹ 1,00,000

₹ 1,90,000

Reserve capital is that portion of the ______ capital that can be called only in the event of winding up of the company.

called-up

uncalled

paid-up

subscribed

The debentures which do not carry a specific rate of interest are known as ______.

Irredeemable debentures

Bearer debentures

Specific coupon rate debentures

Zero coupon rate debentures

John, Honey and Racob were partners in a firm sharing profits and losses equally. On 31^st July, 2025 John died. His share in the profits of the firm from the date of last balance sheet till the date of his death will be:

Debited to Profit and Loss Account

Credited to Profit and Loss Account

Debited to Profit and Loss Suspense Account

Credited to Profit and Loss Suspense Account

Shashi, Maya and Komal were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31^st March, 2025 Komal retired. The new profit sharing ratio between Shashi and Maya was decided as 3: 5. The gain or sacrifice of Shashi and Maya on Komal’s retirement was:

Shashi’s sacrifice `1/8`; Maya’s gain `13/40`

Shashi’s gain `1/8`; Maya’s sacrifice `13/40`

Shashi’s sacrifice `1/8`; Maya’s sacrifice `13/40`

Shashi’s gain `1/8`; Maya’s gain `13/40`

Alok, Sarah and Aditya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1^st January, 2025 Alok advanced a loan of ₹ 2,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on loan due to Alok on 31^st March, 2025 will be:

₹ 20,000

₹ 12,000

₹ 3,000

₹ 5,000

Sudama, Sharma and Varun were partners in a firm sharing profits and losses in the ratio of 6 : 4 : 3. Sharma retired from the firm on 31^st March, 2025. The gaining ratio of Sudama and Varun will be:

3 : 2

2 : 1

1 : 2

2 : 3

Hari, Murari and Abhi were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 4. Murari retired from the firm on 31^st March, 2025. Hari and Abhi decided to share profits in the future in the ratio of 2 : 1. The gaining ratio of Hari and Abhi was:

1 : 2

8 : 7

2 : 1

7 : 4

Munna and Sonu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their fixed capitals were ₹ 40,00,000 and ₹ 30,00,000 respectively. During the year ended 31^st March, 2025, Munna withdrew ₹ 50,000 for personal use. Interest on drawings was to be charged @ 6% p.a. The journal entry for charging interest on Munna’s drawings will be:

Sujata and Laxmi were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1^st April, 2025, they admitted Raghu as a new partner for 1/5^th share in the profits of the firm. On the date of Raghu’s admission, it was found that the equipment is undervalued by ₹ 90,000. After revaluation, the Balance Sheet of Sujata, Laxmi and Raghu showed equipment at ₹ 3,00,000. The value of equipment shown in the books of the firm of Sujata and Laxmi before Raghu’s admission was:

₹ 3,90,000

₹ 2,10,000

₹ 3,00,000

₹ 90,000

On 1^st April, 2024, DD Ltd. issued 2,000, 9% Debentures of ₹ 50 each at a premium of 5%, redeemable at a premium of ₹ 10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30^th September and 31^st March. Interest on the debentures for the year ended 31^st March, 2025 will be:

₹ 4,500

₹ 9,000

₹ 9,450

₹ 4,725

Universal Ltd. took over machinery of ₹ 3,30,000, furniture of ₹ 1,60,000 and liabilities of ₹ 80,000 from Amol Ltd. for a purchase consideration of ₹ 4,50,000. The payment to Amol Ltd. was made by issue of 10% Debentures of ₹ 50 each at a discount of 10%. The number of debentures issued to Amol Ltd. was:

1,000

4,500

45,000

10,000

At the time of forfeiture of shares, ‘Share Capital Account’ is debited with ______.

Paid-up amount on forfeited shares

Called-up amount on forfeited shares

Face value of shares forfeited

Unpaid amount on forfeited shares

Sushil and Sapna were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31^st March, 2025, the firm was dissolved. On the date of dissolution there existed a balance of 1,20,000 in sundry creditors account. The sundry creditors were payable after three months. They were paid immediately at a discount of 12% p.a. The amount paid to sundry creditors was:

₹ 1,20,000

₹ 1,23,600

₹ 1,16,400

₹ 1,34,400

Raha, Naveen and Vandana were partners in a firm sharing profits and losses equally. Naveen retired on 31^st March, 2025. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and reassessment of liabilities was ₹ 1,27,000. Naveen was paid ₹ 1,50,000 in full settlement of his claim. The value of goodwill of the firm on the date of Naveen's retirement was:

₹ 1,50,000

₹ 23,000

₹ 69,000

₹ 4,50,000

Namita, Narendra and Kunwar were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. The firm closes its books on 31^st March every year. Kunwar died on 30^th September, 2025. His share in the profits of the firm from 1^st April, 2025 to 30^th September, 2025 was calculated as per the provisions of the partnership deed which amounted to ₹ 15,600. On the date of Kunwar’s death, the Balance Sheet of the firm showed General Reserve of ₹ 40,000 and Profit and Loss Account (Dr.) ₹ 80,000.

Pass the necessary journal entries on Kunwar’s death in the books of the firm.

Naik, Vinay and Vibhuti were partners in a firm sharing profits and losses in the ratio of 4 : 2 : 3. On 31^st March, 2025, their Balance Sheet was as follows:

Balance Sheet of Naik, Vinay and Vibhuti as at 31^st March, 2025

Naik retired from the firm on the above date on the following terms:

1. Goodwill of the firm was valued at ₹ 1,80,000 and the same was to be treated without opening goodwill account.
2. Revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 18,000.
3. Amount payable to Naik was transferred to his loan account.

Pass necessary journal entries for general reserve, revaluation of assets and reassessment of liabilities and goodwill on Naik’s retirement.

Kiara Ltd. purchased assets worth ₹ 12,40,000 and took over liabilities of ₹ 3,40,000 of Amrex Ltd. for a purchase consideration of ₹ 11,00,000. Kiara Ltd. paid half the amount by cheque. The balance amount was settled by issuing 9% debentures of 100 each at a premium of 10%.

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

On 1^st April, 2024, Zara Ltd. issued 8,000, 9% Debentures of ₹ 100 each at a discount of 10%. The company had a balance of ₹ 50,000 in the Securities Premium Account on the same date.

Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.

Pass necessary journal entries for the issue of debentures for the following transactions:

1. XS Ltd. issued 40,000, 9% Debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
2. YG Ltd. issued 50,000, 9% Debentures of ₹ 100 each at par, redeemable at a premium of 10%.

Jain and Gupta were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 1^st April, 2024, Agarwal was admitted as a new partner for 1/5^th share in the profits of the firm with a minimum guaranteed amount of ₹ 75,000. Any deficiency arising out of this account will be borne by Jain and Gupta in the ratio of 1 : 3. During the year ended 31^st March, 2025, the firm earned a net profit of ₹ 3,00,000.

Prepare Profit and Loss Appropriation Account of Jain, Gupta and Agarwal for the year ended 31^st March, 2025.

Annu, Bandhu, Sheelu and Golu were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2 : 1. On 1^st April, 2025, they decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ 4,00,000. Calculate gain or sacrifice of the partners on change in profit sharing ratio and pass a single adjustment journal entry for the treatment of goodwill.

Diwan Ltd. was registered with an authorised capital of ₹ 1,00,00,000, divided into 1,00,000 equity shares of ₹ 100 each. The company invited applications for issuing 50,000 shares. The amount was payable as follows:

On Application and Allotment - ₹ 30 per share
On First call - ₹ 40 per share
On Second and Final call - balance

The issue was fully subscribed. All amounts were duly received except from Nawal, a shareholder holding 700 shares, who failed to pay the second and final call. His shares were forfeited.

On the basis of the above information, answer the following questions:

(i) The Registered capital of Diwan Ltd. is:   (1)

1. ₹ 1,00,00,000
2. ₹ 1,00,000
3. ₹ 50,00,000
4. ₹ 50,000

(ii) The Issued capital of Diwan Ltd. is:   (1)

1. ₹ 1,00,00,000
2. ₹ 1,00,000
3. ₹ 50,00,000
4. ₹ 50,000

(iii) Calls in arrears of the company amounted to:   (1)

1. ₹ 21,000
2. ₹ 70,000
3. Nil
4. ₹ 49,000

(iv) ‘Share Forfeiture Account’ will appear in the ‘Notes to Accounts’ at:   (1)

1. ₹ 21,000
2. ₹ 70,000
3. Nil
4. ₹ 49,000

(v) The amount of ‘Share Capital’ presented in the Balance Sheet of Diwan Ltd. will be:   (1)

1. ₹ 49,30,000
2. ₹ 50,00,000
3. ₹ 49,79,000
4. ₹ 49,49,000

(vi) If all the forfeited shares are reissued at ₹ 30 per share, fully paid-up, the amount transferred to ‘Capital Reserve’ will be:   (1)

1. ₹ 49,000
2. ₹ 70,000
3. ₹ 21,000
4. Nil

Asha and Indra were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31^st March, 2025 was as following:

On 1^st April, 2025, Suraj was admitted for 1/4^th share in the profits of the firm on the following terms:

1. Suraj will bring capital proportionate to his share in the profits of the firm.
2. Goodwill of the firm was valued at ₹ 1,00,000 and Suraj will bring his share of goodwill premium in cash.
3. Furniture was taken over by Asha at ₹ 1,00,000.
4. A liability of ₹ 5,000 included in creditors was not likely to arise.
5. Plant and Machinery was revalued at ₹ 4,35,000.

Prepare Revaluation Account and Partners’ capital accounts on Suraj’s admission. Show the calculation of proportionate capital clearly.

Ajanta Ltd. invited applications for issuing 30,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows:

On Application and Allotment ₹ 10 per share (including premium) On first and final call - Balance

Applications for 50,000 shares were received. Applications for 10,000 shares were rejected and their application money was refunded. Pro-rata allotment was made to the remaining applicants. Excess money received with application was adjusted towards sums due on first and final call. Sonu, an applicant of 4,000 shares, paid his entire share money with application. Vedika, to whom 300 shares were allotted, failed to pay the first and final call. After giving her the mandatory notice, her shares were forfeited.

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

Rao Ltd. forfeited 750 equity shares of ₹ 10 each for non-payment of first call of ₹ 3 per share (including premium of ₹ 1 per share). The second and final call of ₹ 3 per share was not yet made. Of the forfeited shares, 500 were re-issued for ₹ 2,500, ₹ 7 per share paid-up.

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

Lily Ltd. forfeited 2,000 equity shares of ₹ 10 each for non-payment of first and final call of ₹ 2 per share. 750 of the forfeited shares were reissued to Ashok for ₹ 10,000 as fully paid-up. The remaining shares were reissued to Sudha at ₹ 9 per share fully paid-up.

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

Promil, Kamlesh and Ritika were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1^st April, 2025 they decided to share future profits in the ratio of 2 : 3 : 5. On 31^st March, 2025, their Balance Sheet was as follows:

It was agreed that:

1. Land and Building will be valued at ₹ 6,62,000.
2. A provision of 5% on debtors will be made for bad and doubtful debts.
3. Goodwill of the firm will be valued at ₹ 1,80,000 and the same will be treated without opening goodwill account.
4. The value of stock will be reduced to ₹ 2,00,000.

Showing your working clearly, pass necessary journal entries for the above transactions in the books of the firm.

Mr. Rinku and Mrs. Pinky were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31^st March, 2025, their balance sheet was as follows:

On the above date the firm was dissolved and the following transactions took place:

1. Mr. Rinku agreed to pay Mrs. Rinku’s loan and took away stock for ₹ 16,000.
2. Mrs. Pinky took half of the investments at 10% less. Debtors realised ₹ 44,000, Building realised ₹ 4,00,000, Creditors were paid ₹ 5,000 less and the remaining investments were sold for ₹ 19,000. An old furniture not recorded in the books of the firm was taken over by Mrs. Pinky for ₹ 18,000. Realisation expenses amounted to ₹ 6,000.

Prepare Realisation Account.

20 : 17

1 : 1

18 : 17

19 : 17

Labour unions

Trade payables

Finance manager

Lenders

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

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

Choose the correct option from the following:

Both the statements are true.

Both the statements are false.

Statement I is true, but Statement II is false.

Statement I is false, but Statement II is true.

During the year ended 31^st March, 2025, H.P. Ltd. paid an interim dividend of ₹ 50,00,000.

From the following, choose the correct option for the purpose of preparing ‘Cash Flow Statement’:

₹ 50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and added back to net profit to calculate cash flows from operating activities.

₹ 50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and deducted from net profit to calculate cash flows from operating activities.

₹ 50,00,000 paid as interim dividend during the year will be shown as cash outflow from financing activities only.

₹ 50,00,000 paid as interim dividend during the year will be added back to net profit to calculate cash flows from operating activities only.

Which of the following is a financing activity for the purpose of preparing a Cash Flow Statement?

Interest received

Dividend received

Royalties received

Interest paid on debentures

The following information is obtained from the books of Devdutt Ltd.:

Working capital - ₹ 4,00,000
Trade Payables - ₹ 50,000
Other Current liabilities - ₹ 1,00,000

Current assets of Devdutt Ltd. are:

₹ 2,50,000

₹ 4,50,000

₹ 5,00,000

₹ 5,50,000

The following information was extracted from the Statement of Profit and Loss of Chaman Ltd. for the year ended 31^st March, 2025:

Prepare a Comparative Statement of Profit and Loss.

Under which major head and sub-head (if any) will the following item be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013?

1. Demand deposits with banks
2. Long-term loans
3. Livestock

‘Net Asset Turnover ratio’ of a company is 2 times. State with reason whether the following transaction will increase, decrease or not affect the ratio:

Issue of equity shares ₹ 10,00,000

‘Net Asset Turnover ratio’ of a company is 2 times. State with reason whether the following transaction will increase, decrease or not affect the ratio:

Issue of 9% debentures ₹ 5,00,000

‘Net Asset Turnover ratio’ of a company is 2 times. State with reason whether the following transaction will increase, decrease or not affect the ratio:

Credit purchase of goods ₹ 50,000

From the following information, calculate ‘Proprietary Ratio’ and ‘Debt-to-Equity Ratio’:

Which of the following is not a feature of Tailored accounting software?

Designed specially for large enterprises

Requires minimal or no support from system

Requires special training before use

Needs technical installation efforts

When an arithmetic expression or function is executed, the value produced is known as ______.

Horizontal value

Vertical value

Derived value

Basic value

How is navigation conducted from the first to the last cell in a cluster of data in a column by skipping all the cells in between?

END + Down arrow (↓)

HOME + Page down

HOME + Down arrow (↓)

CTRL + Down arrow (↓) successively

The PMT function in MS Excel is used to ______

Calculate the total interest on a loan.

Calculate the periodic payment for a loan or investment.

Calculate the future value of an investment.

Calculate the present value of a series of payments.

#NAME? Error indicates ______.

Syntax error in the formula

Missing data in the worksheet

Formula referring to a protected call

Excel does not understand the text used in the formula

Which of the following statements best describes the purpose of a data vault in an accounting software?

It helps in data analysis and reporting.

It is used to maintain audit trails.

It ensures data confidentiality and integrity through restricted access.

It is used to back up deleted vouchers automatically.

What is meant by codification?

Explain the meaning of mnemonic codes with the help of an example.

State any three limitations of Computerised Accounting System.

Give the meaning of the following:

Cell reference

Give the meaning of the following:

Relative cell reference

Give the meaning of the following:

Absolute cell reference

Give the meaning of the following:

Mixed cell reference

Explain Array form of LOOKUP function.