Accountancy Solved Question Paper 2025 [AHSEC Class 12 Solved question Papers]

Accountancy Solved Question Paper 2025
AHSEC Class 12 Solved Question Papers

Full Marks: 80

Pass Marks: 24

Time: Three hours

The figures in the margin indicate full marks for the questions.

Q. No. 1 (a) ... 1x4 = 4

Q. No. 1 (b) ... 1x2 = 2

Q. No. 1 (c) ... 1x2 = 2

Q. Nos. 2-7 carry 2 marks each... 2x6 = 12

Q. Nos. 8-11 carry 3 marks each... 3x4 = 12

Q. Nos. 12-15 carry 6 marks each... 6x4 = 24

Q. Nos. 16-18 carry 8 marks each... 8x3 = 24

Total = 80

The figures in the margin indicate full marks for the questions.

1. (a) Fill in the blanks with appropriate word/words: (any four) 1x4=4

(i) New Ratio - Old Ratio = Gaining Ratio?

(ii) Closing Stock is valued at cost or market price whichever is Lower.

(iii) Income statement is also known as Profit and Loss Account.

(iv) Goodwill is the extra earning capacity of a partnership firm.

(v) Balance Sheet shows financial position of an enterprise.

(b) State whether the following statements are 'True' or ‘False': 1x2=2

(i) Company is an artificial person.

Ans: True

(ii) Debt-Equity ratio is a kind of liquidity ratios.

Ans: No, it is a solvency ratio

(c) Choose the correct alternative: 1x2=2

(i) When a new partner is admitted, the increase in the value of assets is debited to:

(a) Profit and Loss Account

(b) Assets Account

(d) None of the above

Ans: (b) Assets Account

(ii) As per Companies Act, 2013, the maximum rate of interest on calls-in-arrears is:

(a) 11%

(b) 10%

(d) 12%

Ans: (b) 10%

2. Name two types of shares which a company can issue. 2

Ans: Equity Shares and Preference Shares

3. Mention any two items which are recorded on the debit side of Profit and Loss Appropriation Account. 2

Ans: Interest on Capital and Partner’s Salary

4. What is Partner's Current Account? 2

Ans: When capital account is fixed, then current account is opened for each partner separately to record all the transactions, other than capital contribution and withdrawal of capital, between the firm and the partner. It is credited with partner’s salary, fees, bonus, commission, interest on capital, share in profits, partners’ share in reserves and goodwill and debited with Drawings out of profit, interest on drawings and share in losses. Current account of the partners may show both credit or debit balance.

What is meant by guarantee of profit to a partner?

Ans: Guarantee in partnership: A new partner may be admitted into the firm for the promotion and expansion of business. Sometimes on the admission of a new person into a partnership the old partner may agree that the new partner would be entitled to receive a minimum amount of profits, irrespective of the actual profit earned by the business. This is called guarantee of share of profit in partnership.

5. What is paid-up capital of a company? 2

Ans: This represents that part of the called up capital, which is actually received by the company. The amount of the called-up capital, which not paid by the shareholders, is called as unpaid capital or calls in arrears.

What is meant by computerised accounting system?

Ans: A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements. Every accounting system, manual or computerised, has two aspects.

6. Give two limitations of financial statement analysis. 2

Ans: Financial analysis suffers from various limitations which are given below:

a) Historical Analysis: Financial statements are historical in nature. Financial analysis is simply a rearrangement of historical data. It analysed what has happened till date but it does not reflect the future.

b) Ignores Price Level Changes: Change is price level affects the comparability of financial statements. A change in the price level makes financial analysis of different accounting years invalid because accounting records ignores change in value of money.

What is data verification?

Ans: Data verification refers to the process of ensuring that data is accurate, complete, and consistent. It is a critical step in data quality management and involves comparing data against a known and trusted source to check for errors and inconsistencies.

7. Write two features of cash flow statement. 2

Ans: Features of Cash flow statement:

a. It shows movement of cash in between two balance sheet dates.

b. It establishes the relationship between net profit and changes in cash position of the firm.

c. It does not involve matching of cost against revenue.

d. It records the changes in fixed assets as well as current assets

Write two uses of electronic spreadsheet.

Ans: The Main use of electronic spreadsheet are:

a. It helps in organising, calculating, analyzing and visualising data.

b. It automatically perform numerical calculations.

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ALSO READ (AHSEC ASSAM BOARD CLASS 12):

1. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE NOTES

2. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION (THEORY)

3. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION BANK (PRACTICAL)

4. AHSEC CLASS 12 ACCOUNTANCY PAST EXAM PAPERS (FROM 2012 TILL DATE)

5. AHSEC CLASS 12 ACCOUNTANCY SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)

6. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE MCQS

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8. A, B and C are partners sharing profits in the ratio of 2:2:1 respectively. They admit D as a new partner for 1/6th share in the profits. Calculate the sacrificing ratio. 3

Ans: Old profit sharing ratio of A: B: C = 2: 2: 1

D’s share = 1/6

Let total share of profit be = 1

Remaining share = 1 − 1/6 = 5/6

Now, New share of A, B and C

A’s new share = (5/6 × 2/5) = 10/30

B’s new share = (5/6 × 2/5) = 10/30

C’s new share = (5/6 × 1/5) = 5/30

D’s share = 1/6 = 5/30

Therefore, New Profit Sharing Ratio

A: B: C: D = 10: 10: 5: 5 = 2: 2: 1: 1

Again, Sacrifice made by partners

A’s sacrifice = 2/5 − 2/6 = (12 − 10) / 30 = 2/30

B’s sacrifice = 2/5 − 2/6 = (12 − 10) / 30 = 2/30

C’s sacrifice = 1/5 − 1/6 = (6 − 5) / 30 = 1/30

Sacrificing Ratio

A: B: C = 2: 2: 1

9. Write three uses of financial statement analysis. 3

Ans: Financial analysis serves the following purposes and that brings out the significance of such analysis:

a) To judge the financial health of the company: The main objective of the financial analysis is to determine the financial strength and weakness of the company. It is done by properly establishing the relationship between the various items of balance sheet and profit and loss account.

b) To judge the earnings performance of the company: Potential investors are primarily interested in earning efficiency of the company and its dividend paying capacity. The analysis and interpretation is done with a view to ascertain the company’s position in this regard.

c) To judge the Managerial efficiency: The financial analysis helps to pinpoint the areas wherein the managers have shown better efficiency and the areas of inefficiency. Any favourable and unfavourable variations can be identified and reasons thereof can be ascertained to pinpoint weak areas.

Seru Ltd. has a liquid ratio of 2:1. The values of inventory, prepaid expenses and current liabilities are Rs. 50,000, Rs. 10,000 and Rs. 2,00,000 respectively. Find out the value of current assets.

Solution:

Liquid Ratio = Liquid Assets / Current Liabilities

=> 2:1= Liquid Assets /2,00,000

= > Liquid Assets = 4,00,000

Now, Current Assets = Liquid Assets + Inventory + Prepaid Expenses

=4,00,000+50,000+10,000

=4,60,000

Therefore, Current Assets = Rs. 4,60,000

Mention the steps for creating graphs using Excel.

Ans: Steps to create graphs using excel:

a. Copy and paste data into a new spreadsheet.

b. Highlight the data for which graph is to be created.

c. Choose the type of graph from insert tab.

d. Modify and tweak what data is displayed.

e. Customize graph with custom titles, labels, and colours.

f. Finally Save the graph.

10. What is buyback of shares? 3

Ans: Buy-back means the repurchase of its own shares by the company. When a company has substantial cash resources, it may like to buy its own shares from the market, particularly when the prevailing rate of its shares in the market is much lower that the book value.

Objectives of Buy Back: Shares may be bought back by the company on account of one or more of the following reasons:

- To increase promoters holding

- Increase earnings per share

- Support share price in stock exchange

- To takeover bid

- To utilise surplus cash not required by business

Resources of Buy Back: A Company can purchase its own shares from

- Free reserves such as general reserve, revenue reserve, surplus.

- Securities premium account; or

- Proceeds of any shares or other specified securities.

Give three examples of cash inflow from operating activities.

Ans: Cash flow from operating activities: Operating activities are the principal revenue generating activities of the business. These are cash flows from regular course of operations such as manufacturing, trading etc. All activities that are not investing or financing activities are included under operating activities.

Examples of cash inflow from Operating Activities:

Ø Cash receipts from the sale of goods and rendering of services.

Ø Cash receipts from royalties, fees, commission and other revenue.

Ø Refunds of income taxes.

Write in brief about Accounting Information System (AIS).

Ans: An Accounting Information System (AIS) is a systematic process of collecting, storing, processing, and communicating financial and accounting information in an organization. The primary purpose of an AIS is to provide relevant and reliable information utilized by internal users for communicating information to investors, creditors, and tax authorities. AIS helps to support decision-making, facilitate day-to-day operations, and ensure the accountability of an organization’s financial resources. It is a computer-based approach that harmonizes conventional accounting methodologies, including adherence to Generally Accepted Accounting Principles (GAAP), with contemporary information technology tools.

11. Write three distinctions between Revaluation Account and Realisation Account. 3

Ans: Difference between Revaluation Account and Realisation Account:

Basis	Revaluation Account	Realisation Account
Meaning	Revaluation account is prepared in order to work out the profit or loss on revaluation of assets and liabilities.	Realisation account is prepared to work out the profit or loss on realisation of assets and payment to liabilities.
Preparation	Revaluation account is prepared at the time of admission, retirement or death of a partner.	Realisation account is prepared at the time of dissolution of a partnership firm.
Closing of accounts	After preparing the revaluation account the firm’s business gets going with the same set of books.	After preparation of Realisation account, all the accounts of the firm are closed.

Why a retiring partner is entitled to a share of goodwill of the firm?

Ans: A retiring partner is entitled to a share of goodwill of the firm because goodwill represents the firm’s reputation and capacity to earn extra income, which has been built by the joint efforts of all the partners, including the partner willing to retire.

When a partner retires, the remaining partners continue to enjoy the benefits of goodwill. Since the retiring partner will no longer receive future profits and benefits of goodwill, it is fair and just to compensate them for their contribution to creating this goodwill during the period of partnership. Therefore, a retiring partner is entitled to his share of goodwill as a compensation for surrendering his right to future profits of the firm.

12. Prepare a Comparative Income Statement from the following particulars of BP Ltd. 6

Particulars	2022 (₹)	2023 (₹)
Sales	4,00,000	6,00,000
Cost of Goods Sold	60% of Sales	60% of Sales
Indirect Expenses	5% of Sales	5% of Sales
Rate of Income Tax	50% of Net Profit before tax	50% of Net Profit before tax

Solution:

Comparative Income Statement

Particulars	2022 (₹)	2023 (₹)	Absolute Change	Percentage Change (%)
1. Revenue from Operations (Sales)	4,00,000	6,00,000	2,00,000	50.00
2. Less: Cost of Goods Sold	2,40,000	3,60,000	1,20,000	50.00
3. Gross Profit (1 - 2)	1,60,000	2,40,000	80,000	50.00
4. Less: Indirect Expenses	20,000	30,000	10,000	50.00
5. Net Profit Before Tax (3 - 4)	1,40,000	2,10,000	70,000	50.00
6. Less: Income Tax (50%)	70,000	1,05,000	35,000	50.00
7. Net Profit After Tax (5 - 6)	70,000	1,05,000	35,000	50.00

Explain the nature of financial statements.

Ans: Nature of Financial Statements:

a) Accounting Conventions: Certain accounting conventions are followed while preparing financial statements such as convention of ‘Conservatism’, convention of ‘Materiality’, convention of ‘Full disclosure’, convention of ‘Consistency’.

b) Accounting Concepts: While preparing financial statements the accountants make a number of assumptions known as accounting concepts such as going concern concept, money measurement concept, realisation concept, etc.

c) Personal Judgement: Personal judgement also has an important bearing on financial statements. For example, selection of one method out of various methods of charging depreciation, inventory valuation etc., depends on the personal judgement of the accountant.

d) Legal implications: Financial statements are prepared following the legal obligations of the country. For example, while preparing the financial statement of an Indian company, the requirements as per the companies Act, 2013 and its amendments from time to time must be followed.

e) Recorded Facts: The Financial statements are statements prepared on the basis of recorded facts; they do not depict the unrecorded facts.

Discuss the features of Database Management System.

Ans: DBMS is a set of software programs that manages the database files. DBMS accesses the files, updates the records and retrieves the requested data. The DBMS is responsible for data security which is very important in a database environment because database will be accessed by number of users. The main features of a DBMS are discussed below:

a. Data Storage, Retrieval and Update: DBMS provides a systematic way to store large amounts of data. It allows users to retrieve required data quickly and update records whenever necessary without affecting other data.

b. Data Security: DBMS ensures data security by restricting unauthorized access.

c. Backup and Recovery: DBMS provides backup facilities to prevent data loss due to system failure or accidental deletion. It also helps in recovering data when required.

13. What is meant by debenture? Explain the types of debentures. 1+5=6

Ans: Meaning of Debentures: Debentures are debt instruments which are issued by company against the floating charge of its assets.

According to Sec. 2 (30) of the companies Act, 2013, debentures include “debenture stock, bonds and any other instruments of a company evidencing a debt, whether constituting a charge on the assets of the company or not.”

Types of Debentures: Debentures are classified as follows:

1. On the Basis of Repayment

a. Redeemable Debentures: These debentures are paid off or redeemed after the prescribed period.

b. Irredeemable or Perpetual Debentures: These debentures are permanent debentures of a company. They are paid back only in the event of winding up of a company.

2. On the Basis of Transferability 2023

a. Registered Debentures: These are debentures for which the company maintains record of debenture holders.

b. Bearer Debentures: These debentures are transferable by mere delivery. There is no need or registration of transfer with the company.

3. On the Basis of Security

a. Simple Debentures: These are debentures not secured by any asset of the company.

b. Mortgage Debentures: Mortgage debentures are issued on the security of certain assets of the company.

4. On the basis of Conversion

a. Convertible Debentures: These debentures are issued with an option to debenture holders to convert them fully or partly into shares after a fixed period. Where only a part of the debenture amount is convertible into equity shares, such debentures are known as ‘partly convertible debentures’. When full amount of convertible into equity shares, such debentures are known as ‘fully convertible debentures.’

b. Non-Convertible Debentures: These are debentures issued without conversion option.

5. On the Basis of Pre-Mature Redemption Rights:

a. Debenture with “Call” option: A callable debenture is one in which the issuing company has the option of redeeming the security before the specified redemption date at a pre-determined price.

b. Debenture with “Put” option: This is a debenture in which the holder has the option of getting it redeemed before maturity.

6. On the Basis of Coupon Rate (interest rate)

a. Fixed Rate Debentures: Most of the time debentures are issued with a prefixed rate interest. These debentures are called fixed interest debentures

b. Floating rate Debentures: Floating rate as the names suggests keeps changing.

c. Zero Coupon Bonds: These are debentures issued with no interest specified. They are issued at a substantial discount to compensate the investors. These bonds are known as deep discount bonds.

Give journal entries in the books of MB Ltd. for issue and redemption of debentures under the following situations: 2x3=6

(a) ₹4,50,000, 12% Debentures issued at a discount of 5% and redeemable at a premium of 5%.

(b) 10,000, 15% Debentures of ₹100 each issued at a premium of 10% and redeemable at par.

(c) 2,000, 8% Debentures of ₹100 each issued at a discount of 4% and redeemable at par.

Ans:

Journal Entries

In the books of MB Ltd.

No.

Particulars

L/f

Amount Dr.

Amount Cr.

At the time of Issue

Bank A/c Dr.

Loss on Issue of Debentures A/c Dr.

To 12% Debentures A/c

To Premium on Redemption of Debentures A/c

(Being the 4500 12% Debentures of Rs. 100 each issued at a discount of 5% and redeemed at premium of 5%)

4,27,500

45,000

4,50,000

22,500

At the time of Redemption

12% Debentures A/c Dr.

Premium on Redemption of Debentures A/c Dr.

To Bank A/c

(Being the 4500 12% Debentures of Rs. 100 each redeemed at a premium of 5%)

4,50,000

22,500

4,72,500

At the time of Issue

Bank A/c Dr.

To 15% Debentures A/c

To Securities Premium Reserve A/c

(Being the 10000 15% Debentures of Rs. 100 each issued at a premium of 10%, but redeemed at par)

11,00,000

10,00,000

1,00,000

At the time of Redemption

15% Debentures A/c Dr.

To Bank A/c

(Being the 10000 15% Debentures of Rs. 100 each redeemed at par)

10,00,000

At the time of Issue

Bank A/c Dr.

Discount on issue of debentures A/c Dr.

To 8% Debentures A/c

(Being the 2000 8% Debentures of Rs. 100 each issued at a discount of 4% but repayable at par)

1,92,000

8,000

2,00,000

At the time of Redemption

8% Debentures A/c Dr.

To Bank A/c

(Being the 2000 8% Debentures of Rs. 100 each redeemed at par)

2,00,000

14. Explain how the amount due to a retiring partner is ascertained. 6

Ans: Calculation of amount due to the retiring partner: The amount due to the retiring partner is paid according to the terms of partnership agreement. Amount due to the retiring partner is determined by preparing capital account of the retiring partner. Retiring partner’s capital account is debited with:

(a) The credit balance of Capital Account;

(b) His/her share in the Goodwill of the firm;

(d) His/her share in General Reserve and Accumulated Profit;

(e) His/her share of profit till the date of his retirement.

(f) Interest on Capital, partner’s salary and commission.

But, the following items are debited in capital account to find amount due:

(a) His/her share in the Revaluation loss.

(b) His/her Drawings and Interest on Drawings up to the date of retirement.

(d) Loan taken from the firm.

Payment of amount due to the retiring partners

The total amount so calculated is the claim of the retiring partner. He/she is interested in receiving the amount at the earliest. Total payment may be made immediately after his/her retirement. However, the resources of the firm may not be adequate to make the payment to the retiring partner in lump sum, then firm makes payment to retiring partner in installments together with interest.

Babatu, Cintu and Montu were partners in a firm sharing profits and losses in the ratio of their capitals. Their Balance Sheet on 31-03-2022 was as follows:

Balance Sheet

As on 31-03-2022

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	3,000	Furniture	8,000
Reserve Fund	3,200	Stock	6,000
Capital :		Debtors	6,000
Babatu	10,000	Bill. Receivable	1,000
Cintu	5,000	Cash	5,200
Montu	5,000
Total	26,200	Total	26,200

Babatu died on 30-06-2022. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:

(i) Amount standing to the credit of deceased partner's capital account.

(ii) Interest on capital @ 5% p.a.

(iii) Share of goodwill on the basis of twice the average of past three years' profits.

(iv) Share of profit from the closing of the last financial year to the date of death on the basis of last year's profits.

Profits for 2019-20, 2020-21 and 2021-22 were ₹6,000, ₹8,000 and ₹7,000 respectively.

Prepare Babatu's capital account on the date of his death.

Ans:

Babatu’s Capital A/c

Particulars

Amount

Particulars

Amount

To Babatu’s Executors A/c

19,600

By Balance b/d

By Reserve Fund (3,200*2/4)

By Interest on capital

(10,000*5%*3/12)

By Cintu’s capital A/c

By Montu’s capital A/c

By P/L Suspense A/c

(7,000*3/12*2/4)

10,000

1,600

125

3,500

875

19,600

W/N: Calculation of Babatu’s share of goodwill

(i) Average profit = (6,000+8,000+7,000)/3 =7,000

Goodwill = 7,000*2 = 14,000

Babatu’s Share of Goodwill = 14,000*2/4 = 7,000

Cintu’s contribution = 7,000*1/2 = 3,500

Montu’s Contribution = 7,000*1/2 = 3,500

15. What is meant by dissolution of partnership firm by giving notice? Mention any four situations when a partnership firm may be dissolved by the court. 2+4=6

Ans: Dissolution by Notice of Partnership at Will (Sec. 43): Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm. The firm is dissolved as from the date mentioned in the notice as the date of dissolution or, if no date is so mentioned, as from the date of the communication of the notice.

Dissolution by Court (Sec. 44): A court may order a partnership firm to be dissolved in the following cases:

a) When a partner becomes of unsound mind.

b) When a partner becomes permanently incapable of performing his/her duties as a partner.

c) When partner deliberately and consistently commits breach of partnership agreement.

d) When a partner’s conduct is likely to adversely affect the business of the firm.

e) When a partner transfers his/her interest in the firm to a third party;

f) When the business of the firm cannot be carried on except at a loss in future also.

Tarun and Moni are two equal partners of a business. They decided to dissolve their firm on 31st March, 2023. Their Balance Sheet on that date was as under:

Balance Sheet

As on 31st March, 2023

Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	20,000	Cash	2,000
Loan from Manash	5,000	Debtors	20,000
Capitals :		Stock	25,000
Tarun	30,000	Investments	5,000
Moni	20,000	Fixed Assets	23,000
Total	75,000	Total	75,000

(i) Fixed assets are realised at ₹27,600 and debtors realised at 60% of book value.

(ii) Investments are taken over by Tarun at book value.

(iii) Sundry Creditors agreed to accept 15% less.

(iv) Stock are realised at ₹40,000.

(v) Expenses on realisation are ₹500.

(vi) An unrecorded printer realised ₹500.

Close the firm's books by preparing a Realisation Account, Partners' Capital Accounts and Cash Account.

Ans:

Realisation A/c

Particular

Amount

Particulars

Amount

To Debtors

To Stock

To Investments

To Fixed Assets

To Cash (Payment of Liabilities)

Creditors = 17,000

Loan from Mahesh = 5,000

- To Cash (Exp)

To Profit on realisation

- Tarun = 14,600*1/2

- Moni = 14,600*1/2

20,000

25,000

5,000

23,000

22,000

500

7,300

By S/creditors

By Loan from Mahesh

By Cash (Realisation of assets)

- Debtors = 12,000

- Stock = 40,000

- Fixed Assets =27,600

- Printer = 500

- By Tarun’s Capital A/c

- (Investment taken over)

20,000

5,000

80,100

5,000

1,10,100

Partner’s Capital A/c

Tarun

Moni

Tarun

Moni

To Realisation A/c

(Investment taken over)

To Cash (Final Payment)

5,000

32,300

27,300

By Balance b/d

By Realisation A/c

30,000

7,300

20,000

7,300

37,300

27,300

37,300

27,300

Cash A/c

Particular

Amount

Particulars

Amount

To Balance b/d

To Realisation A/c (Assets Realised)

2,000

80,100

By Realisation A/c (Liabilities paid off)

By Realisation A/c (Exp.)

By Tarun’s Capital A/c

By Moni’s Capital A/c

22,000

500

32,300

27,300

82,100

16. Ayushi Ltd. issued 7,000 equity shares of ₹10 each at a premium of ₹2 per share payable as follows: 8

On Application - ₹3

On Allotment - ₹5 (including premium)

On First and Final Call – ₹4

Applications were received for 11,000 shares. The excess money was refunded and the allotment money was received in full. When the first and final call was made the amount due was received with the exception of 200 shares. These 200 shares were forfeited and subsequently reissued as fully paid up for a consideration of ₹6 per share. Give Journal entries in the books of the company recording the transactions.

Ans:

Journal Entries

In the books of Ayushi Ltd.

Particulars	L.F.	Dr. (Rs.)	Cr. (Rs.)
Bank A/c Dr. To Equity Share Application A/c (Being application money received on 11,000 shares @ Rs. 3 each)		33,000	33,000
Equity Share Application A/c Dr. To Equity Share Capital A/c To Bank A/c (Being application money on 7,000 shares @ Rs. 3 each transferred to Equity Share Capital Account and excess application money of 4,000 shares refunded)		33,000	21,000 12,000
Equity Share Allotment A/c Dr. To Equity Share Capital A/c To Securities Premium Reserve A/c (Being the allotment money due on 7000 shares @ Rs. 5 per share including premium of Rs. 2 per share)		35,000	21,000 14,000
Bank A/c Dr. To Equity Share Allotment A/c (Being the balance allotment money received)		35,000	35,000
Equity Share First and Final Call A/c Dr. To Equity Share Capital A/c (Being first and final call money due on 7000 shares @ Rs. 4 each)		28,000	28,000
Bank A/c Dr. Calls-in-Arrear A/c Dr. To Equity Share First and Final Call A/c (Being first and final call money received on 6800 shares @ Rs. 4 per share. Money not received on 200 shares has been transferred to Call-in-Arrear Account)		27,200 800	28,000
Equity Share Capital A/c [200 x 10] Dr. To Calls-in-Arrear A/c To Forfeited Shares A/c (Being the forfeiture of 200 equity shares for non-payment of first and final call @ Rs. 4 each)		2,000	800 1,200
Bank A/c [200 x Rs. 6] Dr. Forfeited Shares A/c [200 x Rs. 4] Dr. To Equity Share Capital A/c (Being the re-issue of 200 equity shares of Rs. 10 each @ Rs. 6 per share)		1,200 800	2,000
Forfeited Shares A/c Dr. To Capital Reserve A/c (Being the profit on re-issue of 200 shares transferred to Capital Reserve Account)		400	400

Write short notes on: (any four) 2x4=8

(a) Under Subscription

Ans: Under subscription: When the number of shares applied is less than the number of shares issued by a company, the issue of shares is said to be under subscribed. In this case accounting entries are passed with the number of shares applied by the public.

(b) Capital Reserve

Ans: Capital Reserve: It is that part of reserves which is created out of capital profits and normally not available for distribution as dividend. Profits on reissue of shares, premium of issue of shares and debentures are examples of such reserves.

(c) Pro-rata Allotment

Ans: When the number of shares applied is more than the number of shares issued by a company, the issue of shares is said to be oversubscribed. The company cannot allot shares more than those offered for subscription. In case of over-subscription, there are three possibilities arise:

(a) Some applicants may not be allotted any shares. This is known as ‘rejection of applications’.

(b) Some applicants may be allotted less number of shares than they have applied for. This is known as partial or pro-rata allotment.

In such a situation if shares are allotted in proportion of shares issued to shares applied, then such an allotment is called partial or prorata allotment. For example, if company allots shares to the applicants of 70,000 shares. It is a pro-rata allotment in the proportion of 5:7. In such cases, excess application money is transferred to allotment.

(d) Securities Premium

Ans: When shares are issued at a price higher than the face value then it is called as the issue of shares at premium. The excess of issue price over the face value is the amount of Securities premium. The premium on issue of shares is treated as revenue profits and shown under the Reserves and surplus.

(e) Convertible Debenture

Ans: These debentures are issued with an option to debenture holders to convert them fully or partly into shares after a fixed period. Where only a part of the debenture amount is convertible into equity shares, such debentures are known as ‘partly convertible debentures’. When full amount of convertible into equity shares, such debentures are known as ‘fully convertible debentures.’

Write the limitations of Computerised Accounting System.

Ans: Some of the major limitations of the computerized accounting system are discussed below:

a. Costly: The computerized accounting is a costly system as it requires number of facilities and attachments to set up the system. This includes the computer, printers, scanner and other related accessories.

b. Chances of Loss of data: When a computer is used, it is possible that data can be lost because of hardware or software damage.

c. Fraud and embezzlement: Fraud and embezzlement are usually achieved on a computer system by altering data or programs. There are numerous techniques, varying from additions and deletions to input data, through changing the standing information, files, modifying the behavior of programs, to duplicating or suppressing output.

17. Sikha and Sneha are partners in a firm sharing profits in the ratio of 2:1. On 1st January, 2022, their Balance Sheet was as under: 8

Balance Sheet

As on 1st January, 2022

Liabilities	Amount (₹)	Assets	Amount (₹)
Bills Payable	10,000	Cash in hand	10,000
Creditors	58,000	Cash at bank	40,000
Outstanding Expenses	2,000	Debtors	60,000
Capitals :		Stock	40,000
Sikha	1,80,000	Plant	1,00,000
Sneha	1,50,000	Building	1,50,000
Total	4,00,000	Total	4,00,000

On the above date, they admitted Anisha as a new partner on the following terms:

(i) Anisha will bring ₹1,00,000 as her capital and ₹60,000 as her share of goodwill for 1/4th share in the profits.

(ii) Plant is to be appreciated to ₹1,20,000 and the value of buildings is to be appreciated by 10%.

(iii) Stock is to be valued at ₹36,000.

(iv) A provision for bad and doubtful debts is to be created at 5% of debtors.

(v) Creditors will increase by ₹1,000 as an amount payable to Priyanka for goods purchased on credit was not taken into account.

Prepare Revaluation Account, Pass Journal Entries and prepare the Balance Sheet of the new firm.

Ans:

Revaluation A/c

Particulars

Amount

Particulars

Amount

To Stock

To Provision for b/d

To Creditors

To Profit on Revaluation

- Sikha = 27,000*2/3

- Sneha = 27,000*1/3

4,000

3,000

1,000

18,000

9,000

By Plant

By Building

20,000

15,000

35,000

Journal Entries

In the Books of the Firm

Particulars	L/f	Amount (DR)	Amount (CR)
Bank A/c Dr. To Anisha’s Capital A/c To Premium for goodwill A/c (Being the Capital and premium for goodwill brought in cash)		1,60,000	1,00,000 60,000
Premium for goodwill A/c Dr. To Sikha’s Capital A/c To Sneha’s Capital A/c (Being the Premium for goodwill distributed between Sikha and Sneha in Sacrifice ratio)		60,000	40,000 20,000
Revaluation A/c Dr. To Stock A/c To Provision for d/d A/c To Creditors A/c (Being the loss on revaluation of assets transferred to revaluation A/c)		8,000	4,000 3,000 1,000
Plant A/c Dr. Building A/c Dr. To Revaluation A/c (Being the profit on revaluation of machinery transferred to revaluation A/c)		20,000 15,000	35,000
Revaluation A/c Dr. To Sikha’s Capital A/c To Sneha’s Capital A/c (Being the profit on revaluation distributed between the partners)		27,000	18,000 9,000

Balance Sheet of New Firm

As on 01-01-2022

Liabilities

Amount

Assets

Amount

Bills Payable

Sundry creditors

Outstanding Expenses

Capital:

Sikha

Sneha

Anshu

10,000

59,000

2,000

2,38,000

1,79,000

1,00,000

Cash in hand

Cash at Bank

Sundry Debtors 60,000

Less: Provision for d/d 3,000

Stock

Plant

Building

10,000

2,00,000

57,000

36,000

1,20,000

1,65,000

5,88,000

(i) Distinguish between Fixed Capital Account and Fluctuating Capital Account. 5

Ans: Difference between fixed capital accounts and fluctuating capital Accounts: 2018, 2022, 2024, 2025

Basic of difference	Fixed Capital Account	Fluctuating Capital Accounts
1. Opening and Closing balance	Opening and Closing balances normally remains the same.	Opening and Closing balance changed due to adjustment in capital account.
2. Current account	Current accounts of partners are opened in this case.	Current accounts of partners are not opened in this case.
3. Adjustment relating to capital	All adjustment relating to partners’ capital accounts are made in current account.	All such adjustments are made in capital account itself.
4. Closing capital	The closing balance of capital account always shows a credit balance.	The closing balances of partner’s capital account may be debit or credit.
5. Number of Accounts	Two accounts i.e. capital and current account is maintained.	Only one account i.e. capital account is maintained.
6. Specific mention	If capital is fixed, then it should be specifically mentioned in the deed.	It is not necessary to be mentioned in the deed.

(ii) How the adjustment of capitals is made at the time of admission of a new partner? 3

Ans: At the time of admission of a new partner, it is often agreed that the capital of all partners should be adjusted in proportion to their new profit-sharing ratio. For this, the capital accounts of the existing partners are first adjusted after accounting for goodwill, general reserve, revaluation of assets, and liabilities. After these adjustments, the revised capital of each partner is compared with the capital they should maintain in the reconstituted firm. The excess, if any, may be withdrawn or transferred to the current account, and the deficiency, if any, is either brought in by the partner or adjusted through the current account. There are two main methods for making this capital adjustment:

1. Based on New Partner’s Capital (When new partner’s capital is given):

Under this method, the total capital of the new firm is determined on the basis of the capital brought in by the new partner and his share in the profit. Once the total capital of the firm is known, the capital of the existing partners is calculated according to the new profit-sharing ratio. These calculated capital amounts are then compared with their actual adjusted capital balances. If a partner’s existing capital is more than what it should be, the excess is either withdrawn or credited to his current account. If the capital is less, the partner has to bring in the shortfall or debit his current account.

2. Based on Existing Partners’ Capital (When new partner’s capital is not given):

In this method, the total capital of the firm is taken as the combined adjusted capital of the existing partners, after all necessary adjustments. Based on this total and the new profit-sharing ratio, the capital required from the new partner is calculated. The new partner is then asked to bring in an amount proportionate to his share of profit. This ensures that after admission, all partners (including the new one) have capital balances that are in line with the agreed profit-sharing ratio.

18. Following is the Trial Balance of Arnab and Anvi as on 31st March, 2023: 8

Trial Balance

As on 31st March, 2023

Particulars	Debit (₹)	Credit (₹)
Salary	16,000
Outstanding Wages		400
Taxes	800
Bad Debts Provision		1,400
General Expenses	1,000
Bills Payable		42,400
Bills Receivable	1,800
Sundry Creditors		13,200
Debtors	42,800
Charity	1,400
Gross Profit (Trading Account)		1,24,600
Investment	30,000
Discount		1,000
Bank Balance	15,000
Commission		400
Cash in hand	600
Machinery	3,00,000
Furniture	8,000
Drawings :
Arnab	12,000
Anvi	8,000
Copyright	10,000
Capital :
Arnab		2,40,000
Anvi		1,60,000
Closing Stock	20,000
Building	1,35,000
Reserve Fund		19,000
Total	6,02,400	6,02,400

Prepare Profit and Loss Account, Profit and Loss Appropriation Account for the year ended 31st March, 2023 and a Balance Sheet as on that date after taking into consideration of the following adjustments:

(i) Partners are entitled to interest on capital at 5% p.a.

(ii) Transfer 10% of net profits to Reserve Fund.

(iii) Bad debts provision has to be increased to 5% on Debtors.

(iv) Interest on Investment accrued ₹500.

(v) Depreciate Machinery @10%.

Profit & Loss Account

For the year ended 31st March, 2023

Particulars	Amount (₹)	Particulars	Amount (₹)
To Salary	16,000	By Gross Profit b/d	1,24,600
To Taxes	800	By Commission	400
To General Expenses	1,000	By Int. on Investment (Accrued)	500
To Charity	1,400	By Bad Debts Provision (Old)	1,400
To Depreciation on Machinery	30,000	By Discount	1,000
To Bad Debts Provision (New)	2,140
To Net Profit (to P&L App. A/c)	76,560
Total	1,27,900	Total	1,27,900

Profit & Loss Appropriation Account

For the year ended 31st March, 2023

Particulars	Amount (₹)	Particulars	Amount (₹)
To Interest on Capital:		By Net Profit b/d	76,560
— Arnab (5%)	12,000
— Anvi (5%)	8,000
To Transfer to Reserve Fund	7,656
To Share of Profit (1:1):
— Arnab	24,452
— Anvi	24,452
Total	76,560	Total	76,560

Balance Sheet

As on 31st March, 2023

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Machinery (Net)	2,70,000
Arnab	2,64,452	Furniture	8,000
Anvi	1,84,452	Building	1,35,000
Outstanding Wages	400	Copyright	10,000
Bills Payable	42,400	Bills Receivable	1,800
Sundry Creditors	13,200	Debtors (Net)	40,660
Reserve Fund (19k + 7.6k)	26,656	Investment (Incl. Accrued)	30,500
		Bank & Cash	15,600
		Closing Stock	20,000
Total	5,31,560	Total	5,31,560

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Accountancy Solved Question Paper 2025 [AHSEC Class 12 Solved question Papers]