Class 12 (CBSE) · Board Sample Papers (CBSE)

Class 12 Accountancy — CBSE Board Sample Paper

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Class 12 Accountancy — CBSE Board Sample Paper — solved practice questions

8 Class 12 Board Sample Papers (CBSE) questions with step-by-step solutions. Attempt each, then reveal the answer.

  1. Q1hard

    Anthony, a partner, was being guaranteed that his share of profits will not be less than Rs.60,000 p.a. Deficiency, if any, was to be borne by other partners Amar and Akbar equally. For the year ended 31st March, 2024 the firm incurred a loss of Rs.1,80,000. What amount will be debited to Amar's Capital Account in total at the end of the year?

    • ARs.60,000
    • BRs.1,20,000
    • CRs.90,000
    • DRs.80,000
    Show answer & solution

    Correct answer: (B) Rs.1,20,000

    Loss Rs.1,80,000 is shared equally = Rs.60,000 each. Anthony is guaranteed a profit of Rs.60,000, so his deficiency (Rs.60,000 loss + Rs.60,000 guaranteed profit = Rs.1,20,000) is borne by Amar and Akbar equally, i.e., Rs.60,000 each. Amar's total debit = Rs.60,000 (own loss) + Rs.60,000 (deficiency) = Rs.1,20,000.

  2. Q2easy

    Assertion (A): Partner's current accounts are opened when their capitals are fluctuating. Reasoning (R): In case of Fixed capitals, all the transactions other than Capital are done through the Current account of the partner.

    • ABoth A and R are true and R is the correct explanation of A.
    • BBoth A and R are true but R is not the correct explanation of A.
    • CA is true but R is false.
    • DA is false but R is true.
    Show answer & solution

    Correct answer: (D) A is false but R is true.

    Current accounts are opened when capitals are fixed, not fluctuating, so the Assertion is false. The Reasoning correctly states that under fixed capitals all non-capital transactions are routed through the Current account, so R is true.

  3. Q3easy

    Forfeiture of shares leads to reduction of _________________ Capital.

    • AAuthorised
    • BIssued
    • CSubscribed
    • DCalled up
    Show answer & solution

    Correct answer: (C) Subscribed

    Forfeiture cancels the allotment of shares to defaulting shareholders, reducing the number of shares actually subscribed, hence Subscribed Capital is reduced.

  4. Q4medium

    At the time of admission of new partner Vasu, old partners Paresh and Prabhav had debtors of Rs.6,20,000 and a provision for doubtful debts (PDD) of Rs.20,000 in their books. As per terms of admission, assets were revalued, and it was found that debtors worth Rs.15,000 had turned bad and hence should be written off. Which journal entry reflects the correct accounting treatment of the above situation?

    • ABad Debts A/c Dr. 15,000 / To Debtors A/c 15,000; Prov. for Doubtful Debts A/c Dr. 15,000 / To Bad Debts A/c 15,000
    • BBad Debts A/c Dr. 15,000 / To Debtors A/c 15,000; Revaluation A/c Dr. 15,000 / To Prov. for Doubtful Debts A/c 15,000
    • CRevaluation A/c Dr. 15,000 / To Debtors A/c 15,000
    • DBad Debts A/c Dr. 15,000 / To Revaluation A/c 15,000
    Show answer & solution

    Correct answer: (A) Bad Debts A/c Dr. 15,000 / To Debtors A/c 15,000; Prov. for Doubtful Debts A/c Dr. 15,000 / To Bad Debts A/c 15,000

    A provision for doubtful debts already exists, so the bad debts of Rs.15,000 are first written off (Bad Debts A/c Dr. To Debtors A/c) and then adjusted against the existing provision (Prov. for Doubtful Debts A/c Dr. To Bad Debts A/c), not through the Revaluation Account.

  5. Q5medium

    The profit earned by a firm after retaining Rs.15,000 to its reserve was Rs.75,000. The firm had total tangible assets worth Rs.10,00,000 and outside liabilities Rs.3,00,000. The value of the goodwill as per capitalization of average profit method was valued as Rs.50,000. Determine the Normal Rate of Return.

    • A10 %
    • B5 %
    • C12 %
    • D8 %
    Show answer & solution

    Correct answer: (C) 12 %

    Capital employed = 10,00,000 - 3,00,000 = 7,00,000. Capitalised value of business = Capital employed + Goodwill = 7,50,000. Average profit = 75,000 + 15,000 = 90,000. Normal Rate of Return = 90,000 / 7,50,000 x 100 = 12%.

  6. Q6hard

    Mohit had applied for 900 shares, and was allotted in the ratio 3:2. He had paid application money of Rs.3 per share and couldn't pay allotment money of Rs.5 per share. First and Final call of Rs.2 per share was not yet made by the company. His shares were forfeited. The following entry will be passed: Share Capital A/c Dr. X; To Share Forfeited A/c Y; To Share Allotment A/c Z. Here X, Y and Z are:

    • ARs.6,000; Rs.2,700; Rs.3,300
    • BRs.4,800; Rs.2,700; Rs.2,100
    • CRs.4,800; Rs.1,800; Rs.3,000
    • DRs.6,000; Rs.1,800; Rs.4,200
    Show answer & solution

    Correct answer: (B) Rs.4,800; Rs.2,700; Rs.2,100

    Shares allotted = 900 x 2/3 = 600. Called-up value = Rs.8 (application 3 + allotment 5); Share Capital debit X = 600 x 8 = 4,800. Forfeited (application received) Y = 900 x 3 = 2,700. Allotment due 600 x 5 = 3,000 less excess application (900 - 600) x 3 = 900, so Z = 2,100.

  7. Q7medium

    On 1st April 2019 a company took a loan of Rs.80,00,000 on security of land and building. This loan was further secured by issue of 40,000, 12% Debentures of Rs.100 each as collateral security. On 31st March 2024 the company defaulted on repayment of the principal amount of this loan; consequently on 1st April 2024 the land and building were taken over and sold by the bank for Rs.70,00,000. For the balance amount debentures were sold in the market on 1st May 2024. From which date would the interest on debentures become payable by the company?

    • A1st April 2019.
    • B31st March 2024.
    • C1st April 2024.
    • D1st May 2024.
    Show answer & solution

    Correct answer: (D) 1st May 2024.

    Debentures issued as collateral security do not carry interest while they merely back the loan. Interest becomes payable only when they are actually sold/enforced in the market, i.e., from 1st May 2024.

  8. Q8medium

    Rama, a partner, took over Machinery of Rs.50,000 in full settlement of her Loan of Rs.60,000. Machinery was already transferred to Realisation Account. How will it affect the Realisation Account?

    • ARealisation Account will be credited by Rs.60,000
    • BRealisation Account will be credited by Rs.10,000
    • CRealisation Account will be credited by Rs.50,000
    • DNo effect on Realisation Account
    Show answer & solution

    Correct answer: (A) Realisation Account will be credited by Rs.60,000

    Rama's loan of Rs.60,000 (a liability) is settled by her taking over the machinery. The Realisation Account is credited with the full amount of the loan settled, i.e., Rs.60,000.

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