Accountancy Board Sample Paper - Analysis of Financial Statements 2025-2026 Commerce (English Medium) Class 12 Question Paper Solution

A partner’s capital account was credited with ₹ 80,000 during the year. Which of the following can be the possibility for such a credit in his capital account?

Opening Balance

Drawings during the year

Loss during the year

Capital introduced

Assertion (A): Fluctuating Capital Account can show debit balance.

Reason (R): Losses and Drawings can be more than Capital Balance.

Both A and R are correct and R is the correct explanation of A.

Both A and R are correct but R is not the correct explanation of A.

A is correct but R is incorrect.

Both A and R are incorrect.

On 1^st July, 2024, A, B and C entered into partnership sharing Profits & Losses in the ratio 5 : 3 : 2. C was guaranteed that his share of profits will not be less than ₹ 60,000 p.a. Deficiency if any will be borne by A and B equally. For the year ended March 31, 2025, firm incurred loss of ₹ 1,25,000. Deficiency will be borne by A and B will be:

A ₹ 30,000 and B ₹ 30,000

A ₹ 43,750 and B ₹ 26,250

A ₹ 42,500 and B ₹ 42,500

A ₹ 35,000 and B ₹ 35,000

Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for 1,95,000 shares, which were duly allotted. The amount was payable as ₹ 3 on Application (including ₹ 1 premium), ₹ 6 on Allotment (including ₹ 1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share as fully paid up. The amount of Capital Reserve will be:

₹ 16,000

₹ 12,000

₹ 8,000

₹ 18,000

Prafful Limited forfeited 15,000 shares of ₹ 20 each on which ₹ 8 (including ₹ 2 premium) was paid. Out of these 13,000 shares were re-issued @ ₹ 19 per share as fully paid up. Determine the amount of Share Forfeited balance.

₹ 90,000

₹ 91,000

₹ 12,000

₹ 16,000

Pista Ltd. took over running business of Vista Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 7,50,000 and in consideration issued them 30,000, 9% debentures of ₹ 100 each at 5% discount and a cheque of ₹ 10,00,000. Determine the amount of Goodwill or Capital Reserve.

Goodwill ₹ 9,00,000

Capital Reserve ₹ 9,00,000

Goodwill ₹ 1,00,000

Capital Reserve ₹ 1,00,000

Dawn Ltd. purchased Equipment and paid ₹ 2,20,000 by cheque and issued 16,000 equity shares of ₹ 10 each at 25% premium. The purchase consideration will be:

₹ 3,40,000

₹ 4,20,000

₹ 3,80,000

₹ 2,00,000

Bala and Lala were partners in a firm with Capitals of ₹ 24,00,000 and 16,00,000. They admitted Mala as a new partner for 1/3 share for which Mala brings ₹ 20,00,000 as capital. There was Investment and Investment Fluctuation Reserve appearing in the books of ₹ 2,50,000 and ₹ 50,000 respectively. Bala took over 40% of the Investments at ₹ 80,000 and remaining Investments were valued at ₹ 1,10,000. By what amount Revaluation account will be affected for the above information?

Debited ₹ 60,000

Credited with ₹ 60,000

Debited ₹ 10,000

Credited ₹ 10,000

Jai and Veeru were in a partnership sharing Profit & Loss in the ratio 5 : 3. Their Capitals were ₹ 10,00,000 and ₹ 8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of return was 10%. Firm made average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after adjustment of loss of machinery of book value of ₹ 2,00,000 by fire against which insurance claim of ₹ 1,50,000 was admitted). Value of goodwill as per Capitalisation of super profits will be:

₹ 10,00,000

₹ 3,00,000

₹ 18,00,000

Nil

On 1^st August, 2024 Tom, Jerry and Tyke entered into partnership with capitals of ₹ 5,00,000 each. Interest on Drawings was to be charged @ 6% p.a. For the year ended March 31, 2025, Tyke withdrew ₹ 80,000. What amount of interest on drawings will be charged from Tyke?

₹ 4,800

₹ 1,600

₹ 3,200

₹ 2,400

A, B and C were partners sharing Profits & Losses in the ratio 7 : 2 : 1. B died. A took over `1/20` from his share and remaining share was taken over by C. Determine the new Profit sharing Ratio.

4 : 1

7 : 1

71 : 29

3 : 1

X, Y and Z were partners sharing Profit & Losses in the ratio 5 : 3 : 2. Y retired, and he gifted half of his share to X and remaining half was taken over equally by X and Z. Determine the new Profit-sharing Ratio.

29 : 11

13 : 7

1 : 1

5 : 2

X, a partner was assigned to look after the dissolution process and was allowed remuneration of ₹ 15,000. Actual realisation expenses amounted to ₹ 20,000, being paid by another partner Y. By what amount Realisation account will be debited for the above-mentioned information?

₹ 20,000

₹ 35,000

₹ 5,000

₹ 15,000

Arun and Barun were partners sharing Profits & Losses in the ratio 3 : 2. They admitted Charan into partnership for 20% share. Charan was to bring proportionate Capital and he brought ₹ 3,50,000 (including ₹ 50,000 for goodwill share) in firm. If adjusted capital of Arun after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment was ₹ 8,40,000. What was Barun’s Capital after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment?

₹ 5,60,000

₹ 3,60,000

₹ 12,00,000

₹ 6,60,000

Raghav and Sahil were partners sharing Profit & Loss in the ratio 5 : 3. Their capital balances were ₹ 7,20,000 and ₹ 2,80,000 respectively. There were balances of General Reserve of ₹ 5,00,000 and Deferred Revenue Expenditure of ₹ 4,00,000 in the books of the firm. They admitted Ojasv into partnership for 20% share for which he brings ₹ 4,00,000 as capital. Determine the goodwill share of Ojasv.

₹ 5,00,000

₹ 1,00,000

₹ 1,20,000

₹ 60,000

Building was appearing in the books at ₹ 20,00,000 which was overvalued by 25%. What amount will be shown in the Balance Sheet of a reconstituted firm for building?

₹ 25,00,000

₹ 16,00,000

₹ 24,00,000

₹ 15,00,000

Loss on Issue of Debentures is to be written off as ______ out of Securities Premium and ______ out of Statement of Profit and Loss.

₹ 4,50,000; ₹ 4,50,000

₹ 6,00,000; ₹ 3,00,000

₹ 8,00,000; ₹ 1,00,000

₹ 4,00,000; ₹ 5,00,000

After writing off Loss on Issue of Debentures, ______ balance in Statement of Profit and Loss will be ______.

Debit; ₹ 6,00,000

Credit; ₹ 6,00,000

Debit; ₹ 4,00,000

Credit; ₹ 4,00,000

Premium on Redemption of Debentures account will have a balance of ______ to be treated as ______ in the first year.

₹ 9,00,000; Non-Current Liabilities

₹ 9,00,000; Current Liabilities

₹ 6,00,000; Non-Current Liabilities

₹ 6,00,00; Current Liabilities

Arun, Basu and Tarun were partners sharing Profit & Loss in the ratio 5 : 3 : 2. Their firm was dissolved on March 31, 2025. On this date following assets and liabilities were appearing in their books of accounts.

Building ₹ 2,00,000; Furniture ₹ 80,000; Stock ₹ 70,000; Goodwill ₹ 10,000; Debtors ₹ 40,000; Cash ₹ 20,000; Creditors ₹ 50,000; Arun’s Loan ₹ 60,000; Tarun’s Brother Loan ₹ 30,000. Assets realised at for ₹ 3,40,000. Determine the amount of Realisation Gain/Loss.

Realisation Loss ₹ 80,000

Realisation Gain ₹ 60,000

Realisation Loss ₹ 60,000

No Gain or Loss on Realisation

John and Sourabh were partners sharing Profit & Loss equally. They decided to share future Profit & Loss in the ratio 3 : 2. Their manager Arya met with an accident in the office itself and his claim for compensation amounted to ₹ 50,000. The firm had a Workmen Compensation Reserve of ₹ 80,000. Which of the following statement holds true at the time of reconstitution?

₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in old ratio.

₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in new ratio.

₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be credited to Revaluation Account.

₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be carried forward in the books of the firm without any treatment.

Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio 3 : 1 : 1. They admitted Chunni into partnership for `1/5` share. It was decided that Munni will have `1/4` share in future profits. Goodwill of the firm was valued at ₹ 3,20,000 and Chunni was unable to bring anything. Calculate New Ratio, Sacrificing Ratio and journalise for goodwill at the time of admission of Chunni.

Yashasvi, Nitish and Harshit were partners sharing Profit & Loss in the ratio 5 : 3 : 2. W.e.f 01 April, 2025, they decided to share future Profit & Loss in the ratio 4 : 3 : 2. On the date of reconstitution Goodwill was appearing in the books of ₹ 4,00,000. Goodwill of the firm was valued at ₹ 7,20,000 on the date of reconstitution. Determine gain or sacrifice for each partner and pass necessary entries.

Hemant and Pankaj were partners sharing Profit & Loss in the ratio of 3 : 2. The firm was dissolved on March 31, 2024 and the following balances were appearing in the books of the firm.

1. Hemant’s Loan: ₹ 80,000
2. Ruby’s Loan ₹ 50,000
3. Creditors ₹ 1,00,000
4. Capital Balances after all adjustments - Hemant - ₹ 1,60,000 and Pankaj - ₹ 1,40,000

Assets of the firm realised at ₹ 6,00,000. You are required to show the amounts and order of payments as per section 48 of Indian Partnership Act 1932 at the time of dissolution of the firm.

On January 01, 2025 Ritu Ltd. Issued ₹ 40,00,000, 8% Debentures of ₹ 100 each at 5% discount to be redeemed at 10% premium at the end of 5 years. Balance in Securities Premium on the date of such issue was of ₹ 2,70,000. Pass entries for Issue of debentures.

Ankur and Vikram were partners sharing Profits & Losses in the ratio 3 : 2. They decided to share future Profits & Losses equally. On the date of reconstitution there was Investment Fluctuation Reserve of ₹ 4,00,000 in the books of accounts. Pass entries in the following cases

1. Value of Investment reduced by ₹ 2,50,000.
2. Value of Investment increased by ₹ 5,00,000.
3. There was no change in value of investments.

Sapphire Ltd. was registered with an authorised capital of ₹ 80,00,000 divided into 4,00,000 shares of ₹ 20 each. Company offered and issued 1,50,000 shares at a premium of ₹ 4 per share payable as ₹ 7 on application (including ₹ 1 premium), ₹ 12 on allotment (including ₹ 2 premium) and balance on first call. Rancho, holding 10,000 shares failed to pay allotment and call money. Another shareholder Sultan holding 5,000 shares failed to pay the call money. All the shares held by Rancho were forfeited and of these 8,000 were reissued at ₹ 22 per share as fully paid.

Show Share Capital sub head as it would in the Balance Sheet of Sapphire Ltd. along with notes to Account as per the Companies Act 2013.

Amit, Sumit and Pulkit were partners sharing Profit & Loss in the ratio 5 : 3 : 2. Their Capitals were ₹ 8,00,000; ₹ 7,00,000 and ₹ 5,00,000 respectively. According to Partnership Deed:

1. Interest on Capital @ 10% p.a.
2. Salary to Amit ₹ 10,000 p.m and Pulkit ₹ 15,000 per quarter.
3. Commission to Sumit ₹ 70,000.
4. Sumit was being guaranteed that his share of profits will not be less than ₹ 65,000. Deficiency if any will be borne by Amit and Pulkit equally.

Ignoring the above terms the profits of ₹ 6,00,000, for the year ended March 31, 2025 were divided equally between partners. You are required to pass necessary adjustment entry. Show your workings clearly.

Extract of Financial statements of Alexa Ltd. are produced below.

During the year Alexa ltd. purchased business of Gloria Ltd. with assets of Rs. 50,00,000 and liabilities of Rs. 20,00,000. With regards to the following additional Information:

1. During the year 40,000 Equity Shares were issued at a premium of Rs. 4 per share for cash.
2. Besides this no shares were issued as sweat equity, bonus or as ESOP or in any other form.

Give journal entries for issue of shares for cash and consideration other than cash. Also, prepare Share Capital A/c and Securities Premium Account in the books of Alexa Ltd.

Alok, Deepak and Manish were partners sharing Profit & Loss in the ratio 5 : 3 : 2. Deepak retired on March 31, 2025. On this date his dues after all adjustments related to Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment came out to be ₹ 6,40,000. He was paid ₹ 40,000 through Furniture on retirement and it was agreed to pay balance in three equal annual instalments together with interest as per the rate permissible by act, in the absence of any agreement. First instalment being paid on March 31, 2026. You are required to pass entry for immediate payment to Deepak on retirement and prepare Deepak’s Loan Account till it is finally closed.

Dhwani and Iknoor were partners sharing Profits & Losses in the ratio 3 : 2. Their Balance Sheet on March 31, 2025 was as follows:

On the above date, they admitted Ishaya into partnership for 25% share. Ishaya brings ₹ 2,50,000 as capital and ₹ 40,000 for goodwill. Goodwill of the firm was valued at ₹ 2,00,000. Following agreements were agreed upon:

1. Bad Debts amounted to ₹ 5,000 and Provision for doubtful debts to be created at same existing rate.
2. Investments were valued at ₹ 1,00,000.
3. Accrued Income was recovered only of ₹ 14,500 in settlement.
4. Building was overvalued by 20%.
5. Capital of Dhwani and Iknoor were to be adjusted on the basis Ishaya’s capital contribution. Necessary adjustment to be done by opening current accounts.

You are required to prepare Revaluation Account and Partner’s Capital Account at the time of admission of partner.

Aman, Barman and Raman were partners sharing Profits & Losses in the ratio 5 : 3 : 2. Their Balance Sheet on March 31, 2025 was as follows

On the above date Barman retired and his share was acquired by Aman and Raman equally. Following agreements were agreed upon:

1. Create Provision for doubtful debts @ 10%.
2. Market value of Building is ₹ 1,00,000 and Furniture was overvalued by 20%.
3. Stock was valued at ₹ 55,000. Creditors of ₹ 15,000 took over stock of ₹ 10,000 in settlement of their claims.
4. Goodwill of the firm was valued at ₹ 80,000.
5. Prepaid Expenses are worthless and Outstanding Expenses are now ₹ 20,000.
6. ₹ 20,000 was immediately paid to Barman on retirement brought in Aman and Raman in ratio 3 : 2.

Prepare Revaluation Account and Partner’s Capital Account at the time of retirement of partner.

Space Ventures Limited was registered with an authorised capital of ₹ 20,00,000 divided into 2,00,000 shares of ₹ 10 each. The company offered 80,000 shares for public subscription payable ₹ 4 on application and ₹ 7 on allotment (including ₹ 1 premium). Public had applied for 1,10,000 shares and pro-rata allotment was made in the ratio of 5 : 4. Remaining applications were rejected. Mukta, holding 6,000 shares failed to pay allotment money. Her shares were being forfeited and later re-issued 4,000 shares at a discount of ₹ 2 per share. Pass necessary entries in the books of Space Ventures Ltd.

Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment (including ₹ 1 premium) and balance on call. Applications were received for 3,00,000 shares out of which 20% applications were rejected and remaining were allotted on pro-rata basis. Rohan, an applicant of 12,000 shares failed to pay allotment money and Mohan holding 8,000 shares paid the entire money along with allotment. Subsequently the call was made, all the money was duly received except from Rohan. Later on, company issued a notice to Rohan to pay the balance in 15 days failing which his shares would be forfeited.

Rohan cleared his dues within the stipulated time period.

Journalise.

A company had following balances in their books of Accounts.

Determine the amount of Change in Inventories to be shown in Statement of Profit and Loss Account.

₹ 20,000

₹ (20,000)

₹ (10,000)

₹ 10,000

Inventory Turnover Ratio of company was 5 times. The firm had Revenue from operations of ₹ 5,00,000 and Gross Profit was 25% of Cost of Revenue from Operations. Determine the amount of Opening Inventory if Closing Inventory was ₹ 60,000.

₹ 80,000

₹ 60,000

₹ 1,00,000

₹ 50,000

Assertion (A): Gross Profit Ratio is always higher than Net Profit Ratio.

Reason (R): To calculate Net Profit, Indirect Expenses are subtracted from Gross Profit and Indirect Incomes are added to Gross Profit.

Both A and R are correct, and R is the correct explanation of A.

Both A and R are correct, but R is not the correct explanation of A.

A is correct but R is incorrect.

A is incorrect but R is correct.

Proposed Dividend for the year ended March 31, 2025 and March 31, 2024 were ₹ 2,50,000 and ₹ 2,00,000 respectively. Shareholders finalised the dividend amount at ₹ 1,80,000 during the year ended March 31, 2025 in AGM held in June-July 2024. Unclaimed dividend as at March 31, 2025 was ₹ 10,000.

Choose the correct option while preparing Cash Flow Statement for the year ended March 31, 2025:

Proposed Dividend added in Net Profit after tax will be ₹ 2,00,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.

Proposed Dividend added in Net Profit after tax will be ₹ 2,50,000 and outflow of Dividend paid in financing activities will be ₹ 2,00,000.

Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.

Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,70,000.

Provision for Tax for the year ended March 31, 2025 and 31 March 2024 were ₹ 3,00,000 and ₹ 2,80,000 respectively. During the year Tax paid was ₹ 2,50,000. Determine the amount of Tax proposed during the year by the firm.

₹ 3,00,000

₹ 2,30,000

₹ 2,80,000

₹ 2,70,000

Which of the following is cash flow from Operating activities for a finance company:

Conversion of debentures into shares

Dividend received

Building purchased

Dividend paid

Complete the following Comparative Balance Sheet as at March 31, 2024 and Match 31, 2025.

Prepare Common Size Statement of Profit and Loss for the year ended March 31, 2025.

Give two examples of Inventory except Raw Materials, Work in Progress, Finished Goods and Stock in Trade.

Where will you disclose the amount of loss on issue of debentures written off out of Statement of Profit and Loss?

Where will you disclose Purchase of Raw Materials in Financial Statement of Company?

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transaction will increase, decrease or will have no change on the ratio.

Goods purchased on Credit

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transaction will increase, decrease or will have no change on the ratio.

Outstanding Expenses paid

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transaction will increase, decrease or will have no change on the ratio.

Sale of Fixed Assets a 20% loss

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transaction will increase, decrease or will have no change on the ratio.

Issue of Debentures at Premium to Vendors

From the following information, calculate Trade Receivables Turnover Ratio:

Cost of Revenue from Operations (Cost of Goods Sold): Rs. 6,00,000 Gross Profit on Cost: 25% Cash Sales: 20% of Total Sales Opening Debtors: Rs. 1,00,000 Closing Debtors: Rs. 2,00,000. Provision for Doubtful Debts: Opening Rs. 10,000 and Closing Rs. 20,000.

Extracts of the Balance Sheets of M/s Agrawal Ltd. as on 31st March, 2024 and 31st March 2025 along with additional information are given below. You are required to calculate:

1. Operating profit before changes in working capital.
2. Cash Flows from Financing Activities.

Additional Information:

1. New equity shares and debentures were issued on last day the current accounting year ended 31st March, 2025. Debentures were issued at a discount of 5% which was written off at the end of the year.
2. Dividend on preference shares and interim dividend @ 15% were paid on equity shares on 31st March, 2025
3. Preference Shares were redeemed on 1st April, 2025 at a premium of 5%. The premium was provided out of profits.