ISC Std-12 Commerce Accountancy — Practice Paper
ISC Std 12 Commerce · Accountancy
General instructions: Attempt all questions. Marks for each question are shown in the right margin. Internal choice, where given, is indicated by “OR”.
Section A
- 1.
State two essential characteristics of a partnership firm as per the Indian Partnership Act, 1932.
[2] - 2.
Define goodwill. What is one method of valuing goodwill?
[2] - 3.
When a new partner is admitted to a firm, how is the goodwill premium amount treated in the books of accounts?
[2] - 4.
Distinguish between authorized capital and issued capital of a company.
[2] - 5.
State the meaning of redemption of debentures. Name one method of redemption.
[2] - 6.
A and B are partners sharing profits in the ratio 3:2. The capital account balance of A is ₹60,000 and B is ₹40,000. The firm earned a profit of ₹25,000 during the year. Show how this profit will be distributed between A and B.
[4] - 7.
X, Y and Z are partners in a firm for 5 years. Their average profits are ₹1,20,000 per annum. The normal rate of return on capital is 10%. Calculate goodwill using the average profit method, assuming goodwill is valued at 2 years' purchase of average profit.
[4] - 8.
On retirement of a partner, a firm has Reserves of ₹50,000 and an Investment Fund of ₹30,000. The retiring partner's share in profits is 2/5. Calculate the share of the retiring partner in both Reserves and Investment Fund, and pass the necessary journal entries.
[4]
Section B
- 9.
P and Q are partners sharing profits in the ratio 3:2. The balance sheet as on 31st March 2024 shows: Capital (P) ₹1,20,000, Capital (Q) ₹80,000, Reserve Fund ₹40,000. R is admitted as a new partner for 1/4 share in future profits. R brings ₹75,000 as capital and ₹15,000 for goodwill premium. The remaining goodwill is credited to P and Q in their existing ratio. Pass the necessary journal entries and prepare the new balance sheet after admission.
[5] - 10.
M and N are partners sharing profits in the ratio 2:1. Their balance sheet as on 30th June 2024 shows assets of ₹3,00,000 and liabilities of ₹80,000. On this date, they decide to dissolve the partnership. The assets realize ₹2,80,000 and liabilities are paid off at a cost of ₹85,000. Assuming capital account balances are M ₹1,60,000 and N ₹80,000, prepare the Realization Account and Partners' Capital Accounts.
[5] - 11.
P, Q and R are partners with capitals of ₹1,50,000, ₹1,00,000 and ₹50,000 respectively, sharing profits in the ratio 3:2:1. The assets are revalued, showing a gain of ₹60,000. At the same time, the firm's goodwill is valued at ₹1,80,000. Pass the necessary journal entries for revaluation and goodwill adjustments, and show the updated capital accounts.
[5] - 12.
ABC Limited issues 10,000 equity shares of ₹100 each at a premium of ₹20 per share. The company receives ₹11,00,000 only. Pass the necessary journal entries for the issue and receipt of shares. Also, calculate the discount/loss on issue and state the accounting treatment.
[5]