Accounts Specimen Paper 2024-2025 ISC (Commerce) Class 12 Question Paper Solution

The commission due to a partner is closed by:

Debiting it to Partner’s Capital A/c

Crediting it to Partner’s Capital A/c

Debiting it to P/L Appropriation A/c

Crediting it to P/L Appropriation A/c

On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all adjustments, were ₹ 50,000 and ₹ 40,000. Their capitals before Adil’s admission were ₹ 45,000 and ₹ 48,000.

The capital account of the partner having surplus capital was adjusted through his current account by passing the journal entry:

Debit Rohan’s Capital A/c ₹ 5,000; Credit Rohan’s Current A/c ₹ 5,000

Debit Pavan’s Capital A/c ₹ 8,000; Credit Pavan’s Current A/c ₹ 8,000

Debit Rohan’s Current A/c ₹ 5,000; Credit Rohan’s Capital A/c ₹ 5,000

Debit Pavan’s Current A/c ₹ 8,000; Credit Pavan’s Capital A/c ₹ 8,000

Choose the components required to calculate goodwill of a firm by Capitalisation of Average Profits Method.

P: The normal profits of a similar firm in the industry

Q: The average profits of the firm

R: The number of years purchase

S: The actual capital employed in the business

P, Q, R

Q, R, S

P, Q, S

P, R, S

Bhim International Ltd., in order to raise additional funds for expansion purpose, took a loan of ₹ 10,00,000 at a rate of 12% per annum from NZ Bank on 1st July, 2023, against which it offered ₹ 15,00,000, 8% Debentures of ₹ 100 each as a collateral security.

Calculate the finance cost to the company for the year 2023-24.

₹ 1,20,000

₹ 2,40,000

₹ 90,000

₹ 1,80,000

Ira (a partner in a firm) was allowed to retain the whole of the stock as her remuneration for services rendered by her in the course of dissolution of the firm. The value of stock was ₹ 10,000 which had been transferred to the Realisation Account.

Complying with the accounting principle of full disclosure, record the above transaction in the books of the partnership firm at the time of its dissolution.

Aman and Vinod are partners in a firm. Their Balance Sheet showed:

Gross Debtors: ₹ 1,52,000

Provision for doubtful debts: ₹ 1,000

On Milin’s admission as a new partner, the assets and liabilities are to be revalued as:

1. Unaccounted accrued income of ₹ 10,000 to be provided for.
2. Bills Payable of ₹ 10,000 which were recorded, to be discharged at a rebate of 10%.
3. Debtors of ₹ 2,000 to be irrecoverable.
4. Provision for doubtful debts to be provided @ 2% of the debtors.

What is the net effect of revaluation of assets and liabilities?

Assertion: A company can reissue a forfeited share at an amount which is less than the amount not received on it.

Reason: A company can write off the net loss made on the reissue of a forfeited share from its capital reserve.

Which one of the following is correct?

Both Assertion and Reason are true and Reason is the correct explanation for Assertion.

Both Assertion and Reason are true but Reason is not the correct explanation for Assertion.

Assertion is false and Reason is true.

Both Assertion and Reason are false.

Mention the liability of a partnership firm which is not shown in its Balance Sheet, but is paid off at the time of the dissolution of the firm.

The Adani family has raised their stake in Ambuja Cements by the conversion of 21.20 crore warrants into shares in a transaction that will see them infusing nearly ₹ 6,661 crore.

1. What is a share warrant?
2. Mention the head under which Money received against Share Warrants is shown in the Balance Sheet of a company prepared as per Schedule III of the Companies Act, 2013.

On 1st April, 2023, Zara Ltd. issued 10,000, 6% Debentures of ₹ 100 each at a discount of 5%. On 31st March, 2024, the company had ₹ 40,000 in its Capital Reserve A/c and ₹ 30,000 as balance of Securities Premium.

Give the journal entry to write off the discount on issue of issue of debentures on 31st March, 2024.

Mita, Sita and Rita are partners in a firm. Rita retires from the firm on 31st March, 2024. Her claim, including her capital and her share of goodwill, is determined at ₹ 2,50,000. On this date the firm’s books showed:

1. An unrecorded investment valued at ₹ 60,000 which was given to an unrecorded creditor of ₹ 1,16,000 in settlement of his claim of ₹ 70,000.
2. An unrecorded vehicle which was given to Rita at the market value of ₹ 46,000 in part settlement of her claim.

The balance of Rita’s claim was discharged by cheque.

You are required to pass journal entries to record the above transactions in the books of the firm on 31st March, 2024.

Akshat, Javed and Gaurav are partners in a firm sharing profits in the ratio of 5 : 3 : 7. Akshat died on 31st March, 2024. Javed and Gaurav decided to share the profits in reconstituted firm in the ratio 2 : 3. The capital accounts of the partners on 31st March, 2024, before considering the firm’s goodwill were:

After considering the adjustment for goodwill, Akshat’s share was determined to be ₹ 1,81,000. It was decided that this amount would be paid to Akshat’s executor immediately by the firm through a cheque, the amount being contributed by Javed and Gaurav in such a manner that their capitals would become proportionate to their new profit-sharing ratio.

You are required to pass journal entries to record:

1. The adjustment for self-generated goodwill of the firm.
2. Cash brought in by Javed and Gaurav to pay off Akshat’s executor.
3. Payment made to Akshat’s executor.

On 1st April, 2023, Ruth Ltd. purchased Plant and Machinery for ₹ 11,00,000 from Pablo Ltd. payable as to ₹ 1,00,000 by accepting a promissory note and the balance by an issue of 11% Debentures of ₹ 100 each at a premium of 10% to be redeemed at a premium of 2 % after six years. You are required to pass journal entries in the books of Ruth Ltd. only to record the payment made to Pablo Ltd.

A limited company made an issue, which was fully subscribed, of 2,000, 5% Debentures of ₹ 100 each at ₹ 96, to be redeemed at par after five years. The debentures were allotted on 31st May 2023, subscriptions being payable:

15% on application
30% on allotment
30% on 30th June, 2023
Balance on 30th September 2023

One debenture holder holding 100 debentures paid the allotment with the first call along with interest on calls-in-arrears @ 10% per annum.

You are required to:

1. Give the amounts in rupees payable with:
   1. Allotment
   2. Second and Final Call
2. Prepare the Interest-on-Calls in Arrears A/c.

Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹ 100 each at a premium of 5% in instalments, as follows:

You are required to prepare for the year 2023-24:

1. General Reserve Account.
2. Debenture holders’ Account. (Ignore interest on Debentures).

Kriti and Atif are partners sharing profits and losses equally. On 31st March, 2024, they admitted David as a third partner for `1/5` share in the profits.

It is decided that on David’s admission:

• Atif would retain his original share
• Goodwill would be valued by the super profit method on the basis of the following information:

1. Balance Sheet of Kriti and Atif (an extract)
   As at 31st March, 2024
   Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
   General Reserve		25,000	Current A/c:
   Capital A/c:		4,25,000	Atif	10,000
   Kriti	2,50,000
   Atif	1,75,000
   Current A/c:
   Kriti		40,000

2. The normal rate of return is 12% per annum.
3. Average profits of the firm for last four years are ₹ 74,000.

You are required to calculate:

1. The sacrificing ratio of the partners.
2. The value of goodwill of the firm at four years’ purchase of the super profit.

The following balances have been extracted from the books of Nirvana Ltd, as at 31^st March, 2024:

You are required to show the above items in Notes to Accounts accompanying the Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013 as at 31^st March, 2024.

Anita and Anil are partners in a firm. On 1st April, 2024, they admitted Jia as a third partner. The capital accounts of the partners after considering the following adjustments on Jia’s admission are given below:

1. Loss on revaluation due to depreciation on machinery @ 20% per annum.
2. The General Reserve maintained in the old firm was not to be disturbed in the reconstituted firm.

Partners’ Capital Accounts

Additional information:

On 31st March, 2024, the firm of Anita and Anil, apart from plant and machinery and a bank balance of ₹ 2,15,000, had no other asset. You are required to prepare the Balance Sheet of the reconstituted firm on the date of Jia’s admission after considering the information given above.

Alfa and Beta are partners in a firm. Their Balance Sheet as at 31st March, 2024, is given below:

On 1st April, 2024, they admit Beta’s son Gama, as a partner on the following terms:

1. Gama to have `1/4` share of profits, half of which is to be gifted to him by his father and the remaining half to be purchased from Alfa.
2. Gama to bring in ₹ 60,000 as his capital but would be unable to bring in cash his share of goodwill.
3. Goodwill of the firm to be valued at ₹ 40,000.
4. 50% of the investment to be taken over by Alfa and Beta in their profit-sharing ratio.
5. The liability on account of Workmen’s Compensation Claim to be ₹ 30,000.

You are required to:

1. Calculate the new profit-sharing ratio of all the partners.
2. Prepare the Partners’ Capital Accounts.

Atul and Peter were partners in a firm sharing profits and losses in the ratio of 3 : 5. They dissolved their firm on 31st March, 2024, when their Balance Sheet showed the following balances:

On the date of dissolution of the firm:

1. Peter paid the realisation expenses of ₹ 2,000 on behalf of the firm.
2. Atul discharged his wife’s loan of ₹ 5,000 which she had given to the firm.
3. The dissolution resulted in a profit of ₹ 24,000 from the realisation of assets and settlement of liabilities.

You are required to pass journal entries to close the books of the firm (including the entries to show the final settlement of the amount due from the partners/due to the partners by the firm).

Deb, Riza and Ved entered into a partnership on 1st July, 2023, without any agreement as to profit sharing, except that Deb guaranteed that Ved’s share of profit, after considering interest into account, would not be less than ₹ 8,500 per annum. The initial capital provided by the partners was as follows:

In addition to the above capital, Deb and Riza gave temporary loans to the partnership firm as follows:

• Deb advanced ₹ 18,000 on 1st October, 2023, and was repaid on 1st April following.
• Riza advanced ₹ 40,000 on 1st September, 2023, and was repaid along with interest, on 1st December, 2023.

The profit of the firm for the year ended 31st March, 2024, before providing for any interest was ₹ 21,000.

You are required to prepare for the year 2023-24:

1. Profit and Loss Appropriation Account.
2. Riza’s Loan Account.
3. Ved’s Capital Account.

Krish and Tarun are partners in a firm with capitals of ₹ 40,000 and ₹ 60,000. As per their partnership deed:

1. Interest on capital is to be allowed to them @ 5% per annum.
2. Profits are to be shared in the ratio of 3 : 2.

The trading profits for the year 2023-24 was ₹ 3,600. You are required to calculate the interest on capital allowed to the partners in the year 2023-24.

Deepa, Ridhi and Adit are partners in a firm. Following are the particulars of their Capital and Drawings Accounts for the year 2023-24:

According to their partnership deed:

• Profits were to be shared in the ratio of 2 : 2 : 1
• Interest on capital to be allowed @ 5% per annum
• Interest on drawings to be charged @ 8% per annum

The trading profits of the firm for the financial year 2023-24 were ₹ 50,000, before considering the discrepancy of having recorded the inventory at ₹ 10,000 when its realisable value was ₹ 4,000.

1. You are required to give:
   1. The adjusting entry and closing entry for Drawings made by Ridhi
   2. The adjusting entry and closing entry for Interest on Drawings
   3. The adjusting entry and closing entry for Interest on Capital
   4. The entry to close the Adit’s Loan A/c
2. The accountant of the firm distributed the divisible profit among the partners in the ratio 2 : 1 : 2 instead of in the ratio mentioned in the deed.

You are required to rectify the lapse in accounting by passing a single adjusting entry.

Hero Ltd. was registered with a capital of ₹ 5,00,000 divided into 20,000 shares of ₹ 25 each, payable as:

The company offered to the public for subscription 10,000 shares. It received applications for 11,100 shares.

From amongst the applicants:

1. Vimal, who had applied for 1,200 shares, paid ₹ 6,000 on application. but was allotted only 600 shares.
2. Mohan applied for 1,000 shares, paid the full amount of ₹ 25,000 with his application but was allotted only 500 shares.
3. Vineet, who had applied for 1,500 shares, paid his application and allotment money in order but did not pay the call money.
4. The remaining applicants paid as and when due.

The surplus money paid by both Vimal and Mohan was used towards allotment and call and any surplus beyond the call was refunded. The company forfeited Vineet’s shares and later re-issued 500 of the forfeited shares @ ₹ 20 per share fully paid up.

You are required to pass journal entries in the books of Hero Ltd.

Stem Ltd. came up with an IPO inviting the public to subscribe to its Equity shares of ₹ 10 each. The issue was over-subscribed. The company allotted 80,000 shares to all the applicants making a pro-rata allotment in the ratio of 3 : 2. The face value of the share was payable in three instalments.

Based on the information given above and the following extract of ledger accounts and Cash Book (Bank Column), answer the questions that follow:

1. What are the number of shares applied for by the public?
2. What is the amount payable per share with application?
3. What is the amount payable per share with first and final call?
4. Stem Ltd. did not receive the allotment money and call money due from the shareholder Rehan, who had applied for 3,000 shares. What is the amount received by Stem Ltd. with allotment?
5. Stem Ltd. forfeited Rehan’s shares after the final call. It reissued 1,500 forfeited shares fully called up @ ₹ 13 per share
   Give the journal entries passed by the company for:
   1. Forfeiture of these shares
   2. Reissue of the forfeited shares

According to the ratings agency Chrisil, healthy demand for grocery items and expansion into tier II and III cities will help organized brick-and-mortar food and grocery (F&G) retailers log a revenue of 14-15% in FY25. The agency further said the debt raising will be capped to ensure healthy key debt protection metrics.

From the following ratios:

• Choose the formula of the ratio to be used by the F&G retailers as a debt protection metrics
• Mention the name of the ratio so chosen

`"Revenue from Operations"/"Working Capital"`

`"Cost of Revenue from Operation + Operating Expenses"/"Revenue from Operations"xx 100`

`"Net Profit before interest and taxes"/"Fixed Interest Charges"`

`"Net Profit after Tax and Preference Dividend"/"No. of Equity Shares"`

Read the following news item of ITC Ltd. and answer the question that follows:

Which of the following are the attributes of interim dividend?

P: It is a charge against profits.

Q: It is an appropriation of profits.

R: Its declaration and payment will decrease the company’s Current Ratio.

S: Its declaration and payment will increase the company’s Debt Equity Ratio.

Only P

Only Q

P, R and S

Q, R and S

Bajaj Hindustan Sugar, one of the largest sugar and ethanol producers, in order to revive the company, has offered to invest ₹ 2,500 crore as fresh equity of which ₹ 1,000 crore has already been infused.

What will be the effect of this decision of Bajaj Hindustan Sugar on its DebtEquity Ratio?

Jubilant Food Works Ltd., the company that operates Domino’s restaurants in India, reported a net profit of ₹ 65.7 crore for the three months ending, 31st December, 2023, against ₹ 80 crore for the three months ending, 31st December, 2022.

You are required to give, for the three months ending, 31st December, 2023, as compared to the same period ending, 31st December, 2022:

1. The formula to calculate the percentage change in net profit of the company.
2. The percentage change in the net profit of Jubilant Food Works Ltd. of the three months ending 31st December, 2023 vis-a-vis the three months ending, 31st December, 2022, mentioning the increase/decrease.

Read the news item given below and answer the questions which follow:

How would the Cash Flow from Investing Activities of TCS be affected, if instead of buying back its shares, the company had proceeded with its investing programme? 

From the following information, you are required to prepare a Common Size Balance Sheet of Super Ltd. as at 31st March, 2024.

Anand Ltd. reported a loss of ₹ 80,000 for the year ended 31st March, 2024, after considering the depreciation charged on Plant & Machinery represented by ‘??’ and the following items:

Additional information:

1. During the year 2023-24:

• A machine having a book value ₹ 40,000, was disposed of for ₹ 25,000 and a machine costing ₹ 2,20,000 was purchased.
• Credit sales were ₹ 1,00,000

2. An extract of the balance sheet of the company as at 31st March, 2023, and as at 31st March, 2024:

1. You are required to calculate for the year 2023-24: (Show the workings clearly)
   1. The net operating profit of the company before working capital changes.
   2. Cash from Investing Activity.
2. Taking the information of credit sales into consideration, state with reason, whether the increase in Trade Receivables in the year 2023-24 over the year 2022-23 will cause the cash from operating activities before tax paid to be more or less then the net operating profit of the company before its working capital changes.

From the following Balance Sheets of Ronald Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2023-24.

Additional information:

1. The Debentures of Violet Ltd. were purchased on 31st March, 2024.
2. During the year 2023-24:
   1. Tax of ₹ 20,000 was paid.
   2. Interest on all borrowings due and paid was ₹ 25,000.

Calculate Interest Coverage Ratio of Criss Cross Ltd. (up-to two decimal places) from the following information:

Calculate the Operating Ratio of Zen Ltd. (up-to two decimal places) from the following information:

A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50,000, having a current Ratio of 2 : 1. What will be its revised Current Ratio after it endorses a bills receivable of ₹ 40,000 to one of its creditors?

From the following particulars of NB Ltd., calculate its Cost of Revenue from Operations for the year 2023-24.

The fill function can be ______ to complete formulas in a range.

Single clicked

Double clicked

Triple clicked

Right clicked

An index is clustered if:

it is on a set of fields that form a candidate key.

it is on a set of fields that form a primary key.

the data records of the file are organized in the same order as the data entries of the index.

the data records of the file are organized not in the same order as the data entries of the index.

Mention the symbol which specifies the fixed columns or rows in a formula.

Give the shortcut that is used to select a row in Excel.

What is meant by the term Back-end as used in data applications?

How is a Formula different from a Function in Excel?

Why is database testing important?

Give any two reasons to show that a blank space or zero is not the same as NULL value in SQL.

List any two types of storage devices in DBMS.

What are the SQL statements used in Database testing to manipulate the test table?

What is meant by date-transfer rate?

The spreadsheet below shows the sales of Jupiter Ltd. made by four salesmen in the four quarters of the financial year 2022-23:

Based on the above transactions and the information given in the spreadsheet, answer the following question:

1. Write the formula to calculate the cost of the goods sold by Salesman No. S2 in Qtr 2, if he had sold the goods at a profit of 10% of the sales.
2. Write the formula to calculate the sales made by Salesman No. S2 in Qtr 3 in cell D3, if he had sold the goods at a profit of 10% of the cost.
3. In Qtr 1, Salesman No. S4 sold goods costing ₹ 8,800 at a loss of 10% of the sales. What is the selling price of the goods in cell B6.
4. The company gives a commission of 10% on its total sales. Write the formula to calculate the commission earned by Salesman No. S3 in cell G5.