Class 12 Accountancy Sample Paper

Please refer to Class 12 Accountancy Sample Paper with solutions provided below. All sample papers for Accountancy Class 12 have been designed as per the latest paper pattern issued by CBSE for the current academic year. Students should practice these guess papers for Class 12 Accountancy as it will help them to gain more understanding of the type of questions that are expected to be asked in upcoming Class 12 Accountancy exams. Please click on the links below to access free CBSE Sample Papers for Class 12 Accountancy.

Class 12 Accountancy Sample Paper Set A

Class 12 Accountancy Sample Paper Term 1 Set A

Class 12 Accountancy Sample Paper Term 2 Set A

Class 12 Accountancy Sample Paper Term 2 Set B

Class 12 Accountancy Sample Paper Term 1 Set A

Part – I
Section – A

1. XYZ Ltd. purchased a machine of ₹ 57,500 from Indian traders, payment of ₹ 5,000, was made by issuing cheque and the remaining amount by issue of equity shares of the face value of ₹ 10 each fully paid at an issue price of ₹ 10.50 each. Amount of securities premium will be
(a) ₹ 3,000
(b) ₹ 3,500
(c) ₹ 2,500
(d) ₹ 2,000   

2. When partners’ capital accounts are fixed, which one of the following items will be written in the partner’s capital account?
(i) Partner’s drawings
(ii) Additional capital introduced by the partner in the firm
(iii) Loan taken by partner from the firm
(iv) Loan advanced by partner to the firm
(a) (i) and (ii)
(b) (iii) and (iv)
(c) Only (ii)
(d) (i) and (iii)   

3. When the new partner brings cash for goodwill, the amount is credited to
(a) revaluation account
(b) cash account
(c) premium for goodwill account
(d) realisation account   

4. ABC Ltd. forfeited 320 shares of ₹ 10 each on which the holder had paid only the application money of ₹ 2 per share. Out of these, 80 shares were reissued to Z as fully paid for ₹ 9 per share. Amount transferred to capital reserve will be
(a) ₹ 640
(b) ₹ 320
(c) ₹ 80
(d) None of these   

5. If equal amount is withdrawn by a partner at the end of each month during a period of 6 months, interest on the total amount will be charged for ……… months.
(a) 2.5
(b) 3
(c) 3.5
(d) 6   

6. New partner can be admitted into partnership with the consent of ……… partner(s).
(a) any one
(b) majority
(c) all
(d) 2/3rd of old   

7. PQR Ltd. forfeited 4,000 equity shares of ₹ 100 each issued at a premium of 10% for non-payment of first and final call of ₹ 30 per share. The maximum amount of discount at which these shares can be reissued will be
(a) ₹ 40,000
(b) ₹ 1,60,000
(c) ₹ 2,80,000
(d) ₹ 1,20,000   

8. P and Q are partners in the ratio of 3 : 2. Their capitals are ₹ 10,000 and ₹ 5,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹ 3,000 for the year ended 31st March, 2021. Interest on capital will be 
(a) P ₹ 800; Q ₹ 400
(b) P ₹ 400; Q ₹ 200
(c) P ₹ 720; Q ₹ 480
(d) No interest will be allowed   

9. Interest on capital will be paid to the partner only out of ……… if provided for in the partnership deed.
(a) profits
(b) reserves
(c) accumulated profits
(d) goodwill 

10. For which purpose, sacrificing ratio is used in case of admission of a partner?
(a) To distribute reserves
(b) To distribute goodwill
(c) To distribute revaluation profit
(d) To distribute balance in profit and loss account 

11. A and B are partners sharing profits in the ratio of 3 : 1. They admit C as a partner who pays ₹ 8,000 as goodwill, the new profit sharing ratio being 2 : 1 : 1 among A, B and C.  The amount of goodwill will be credited to
(a) A and B as ₹ 1,500 and ₹ 2,000
(b) ₹ 4,000 each
(c) Only B
(d) Only A   

12. X and Y were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st January, 2020, they decided to share profits and losses equally.
Individual partner’s gain or sacrifice due to change in the ratio will be

13. According to Companies Act, minimum subscription has been fixed at ……… of the issued amount.
(a) 25%
(b) 50%
(c) 90%
(d) 100%   

14. 

If provision is to be maintained @ 10%, amount debited/credited to the revaluation account will be
(a) ₹ 80,000 (Dr)
(b) ₹ 80,000 (Cr)
(c) ₹ 40,000 (Cr)
(d) ₹ 40,000 (Dr)   

15. ……… is transferred to capital reserve.
(i) Profit from sale of fixed assets
(ii) Premium on issue of shares
(iii) Profit on forfeiture of shares
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) (i), (ii) and (iii) 

16. A and B are partners sharing profits equally. Interest on A’s drawings is ₹ 3,250 and B’s drawings ₹ 2,750. 10% of distributable profit is transferred to reserve fund. Profit for the year is ₹ 10,00,000. Amount transferred to reserve fund will be
(a) ₹ 1,00,000
(b) ₹ 1,00,600
(c) ₹ 1,00,300
(d) ₹ 99,400   

17. Minimum subscription amount of 90% is related to which share capital?
(a) Authorised Capital
(b) Issued Capital
(c) Paidup Capital
(d) Reserve Capital   

18. If a share of ₹ 10 is issued at a premium of ₹ 2 on which the full amount has been called and ₹ 8 (including premium) paid is forfeited, the share capital account will be debited with
(a) ₹ 12
(b) ₹ 10
(c) ₹ 8
(d) ₹ 6 

Section – B

19. XYZ Ltd. had allotted 5,000 shares to the applicants of 7,000 shares on pro-rata basis. The amount payable on application is ₹ 2 per share. X applied for 210 shares.
The number of shares allotted to X will be
(a) 30 shares
(b) 160 shares
(c) 170 shares   
(d) 150 shares 

20. Total capital employed in the firm is ₹ 4,00,000, reasonable rate of return is 15% and profit for the year is ₹ 6,00,000. The value of goodwill of the firm as per capitalisation method would be
(a) ₹ 41,00,000
(b) ₹ 6,00,000
(c) ₹ 36,00,000
(d) ₹ 21,00,000 

21. Excess value of net assets over purchase consideration at the time of purchase of business is
(a) credited to capital reserve
(b) debited to goodwill account
(c) credited to the general reserve account
(d) credited to vendor’s account 

22. If X pays ₹ 75,000 as his share of goodwill privately to Y, an existing partner, the treatment will be
(a) goodwill account will be debited by ₹ 75,000
(b) goodwill account will be debited by ₹ 3,00,000
(c) goodwill account will be credited by ₹ 75,000
(d) No entry will be passed   

23. Assertion (A) Partnership agreement in writing is considered as desirable.
Reason (R) Written partnership agreement serves as a evidence in the court of law.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true     

24. If investment appear in the balance sheet at ₹ 15,000, investment fluctuation fund at ₹ 1,350 and if the market value of investments is ₹ 14,700, then the share of A, B and C in the Investment Fluctuation Fund (IFF) will be
(a) ₹ 525; ₹ 315; ₹ 210
(b) ₹ 675; ₹ 405; ₹ 270
(c) ₹ 500; ₹ 500; ₹ 350
(d) None of these   

25. First call amount received in advance from the shareholders before it is actually called-up by the director is
(a) debited to calls-in-advance account
(b) credited to share allotment account
(c) debited to first call account
(d) credited to calls-in-advance account   

26. X Ltd. forfeited 1,000 shares of ₹ 10 each, ₹ 7 called-up, issued at a premium of ₹ 2 per share to be paid at the time of allotment, for non-payment of first call of ₹ 2 per share.
Entry on forfeiture will be

27. Assertion (A) Revaluation account is debited on increase in value of assets.
Reason (R) Revalution account is a real account in nature.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true     

28. X and Y are partners sharing profits in the ratio of 2 : 3. Their balance sheet shows machinery at ₹ 1,00,000; stock at ₹ 40,000 and debtors at ₹ 80,000. Z is admitted and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at ₹ 70,000 and a provision is made for doubtful debts @ 5%. X’s share in loss on revaluation amount to ₹ 10,000. Revalued value of stock will be
(a) ₹ 31,000
(b) ₹ 50,000
(c) ₹ 30,000
(d) ₹ 49,000 

29. Out of the following, for which purpose the securities premium amount cannot be used?
(i) Issuing fully paid bonus to shareholders
(ii) Issuing partly paid bonus shares to shareholders
(iii) Writing-off preliminary expenses of the company
(iv) By purchasing its own shares (Buy-back)
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) Only (ii)   

30. X, Y and Z are partners in the ratio of 5:3:2. Before Y’s salary of ₹ 3,400 firm’s profit is ₹ 19,400. How much in total, Y will receive from the firm?
(a) ₹ 3,400
(b) ₹ 8,000
(c) ₹ 4,800
(d) ₹ 8,200   

31. Assertion (A) A company is authorised by its articles of association to forfeit shares, if a company does not receive amount called by it on such shares.
Reason (R) A company can’t reissue forfeited shares.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

32. Need for valuation of goodwill arises for a partnership firm in which of the following situation(s)?
(i) At the time of change in profit sharing ratio
(ii) At the time of death/retirement of a partner
(iii) At the time of admission of a partner
(a) Only (i)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) All of these   

33. Which of the following is false in relation to reserve capital?
(i) Reserve capital is a part of uncalled capital of a company
(ii) Reserve capital cannot be used during the lifetime of a company
(iii) Reserve capital can be used for writing-off capital losses
(iv) Reserve capital is part of subscribed capital
(a) (ii) and (iii)
(b) (i) and (ii)
(c) Only (iii)
(d) (iii) and (iv) 

34. Red, Blue and White were partners in a firm sharing profits in the ratio of 1:2:2. They decided to share future profits in the ratio of 7:5:3 with effect from 1st April, 2021.
Their balance sheet as on that date showed a balance of ₹ 22,500 in deferred revenue expenditure account. Entry for writing-off deferred revenue expenditure is
Red’s Capital A/c                                          Dr   X
Blue’s Capital A/c                                         Dr   Y
White’s Capital A/c                                       Dr   Z
     To Defrerred Revenue Expenditure A/c                22,500
Here X, Y, Z are
(a) ₹ 7,500, ₹ 7,500 and ₹ 7,500
(b) ₹ 4,500, ₹ 9,000 and ₹ 9,000
(c) ₹ 10,500, ₹ 7,500 and ₹ 4,500
(d) ₹ 11,250, ₹ 9,000 and ₹ 9,000   

35. P and Q are partners in a firm with capital of ₹ 90,000 and ₹ 1,00,000. R was admitted for 1/3 rd share in profits and brings ₹ 1,70,000 as capital, calculate the amount of goodwill.
(a) ₹ 1,20,000
(b) ₹ 50,000
(c) ₹ 75,000
(d) ₹ 1,50,000   

36. X and Y are partners sharing profits and losses in the ratio of 5 : 3. On admission, Z brings ₹ 35,000 as cash and ₹ 21,500 against goodwill. New profit ratio between X, Y, Z is 7 : 5 : 4. The sacrificing ratio of X and Y will be
(a) 3 : 1
(b) 1: 3
(c) 4 : 5
(d) 5 : 9   

Section – C

Pia, Tia and Sia were partners in a firm trading in electrical appliances. They were sharing profits in the ratio of 5 : 3 :2. Their fixed capitals on 1st April, 2020 were ₹ 6,00,000, ₹ 8,00,000 and ₹ 16,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally. For this, Pia withdrew ₹ 40,000 from the firm on 15th September, 2020. On the same date, Tia instead of withdrawing cash from the firm, took some appliances amounting to ₹ 48,000 from the firm and distributed those to the flood victims. On the other hand, Sia withdrew ₹ 4,00,000 from her capital on 1st January, 2021 and provided a mobile medical van in the flood affected area.
The partnership deed provides for charging interest on drawings @ 6% per annum. Interest on capital was a allowed @ 10%.

37. Interest on Pia’s capital will be
(a) ₹ 60,000
(b) ₹ 80,000
(c) ₹ 1,00,000
(d) ₹ 1,60,000 

38. Interest on Tia’s drawings will be
(a) ₹ 1,300
(b) ₹ 1,560
(c) ₹ 2,880
(d) ₹ 1,440   

Firefox limited was incorporated in 1st April, 2020 with registered office in Delhi with an authorised capital of ₹ 20,00,000 divided into 20,000 shares of ₹ 100 each. It issues 10,000 shares of ₹ 100 each. Amount to be paid on application ₹ 30 per share; on allotment ₹ 40 per share and on first and final call ₹ 30 per share. All money was duly subscribed and paid towards the nominal value of shares except on 450 shares who failed to pay allotment and calls money. These shares were forfeited, 250 shares were reissued at ₹ 80 per share fully paid.

39. Which amount the following will be the amount of paid up share capital?
(a) ₹ 9,80,000
(b) ₹ 9,86,000
(c) ₹ 10,00,000
(d) ₹ 9,88,500   

40. Balance in share forfeiture account will be ……… .
(a) ₹ 20,000
(b) ₹ 7,500
(c) ₹ 6,000
(d) ₹ 2,500   

41. Share application money received towards application and allotment of shares will be credited to which of the following accounts?
(a) Share Application and Allotment A/c
(b) Share Application A/c
(c) Share Capital A/c
(d) None of these     

Part – II
Section – A

42. Satisfactory ratio between long-term debts and shareholder’s funds will be
(a) 1 : 1
(b) 3 : 1
(c) 1 : 2
(d) 2 : 1   

43. Which of the following will increase debt-equity ratio?
(i) Issue of new shares for cash
(ii) Redemption of debentures
(iii) Issue of debentures for cash
(iv) Goods purchased on credit
(a) (i) and (ii)
(b) Only (iii)
(c) (ii) and (iii)
(d) (iii) and (iv)   

44. Assertion (A) Provision for employee benefits is shown under the head ‘short-term provision’.
Reason (R) Provision against which liability is likely to arise within 12 months from the date of balance sheet is short-term provision.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

45. Match the column.

Codes
      A    B   C
(a) (i)  (ii) (iii)
(b) (iii) (ii) (i)
(c) (iii) (i)  (ii)
(d) (ii)  (i) (iii)   

46. Share forfeiture account appears in a company’s balance sheet under which sub-head?
(a) Share Capital
(b) Reserve and Surplus
(c) Contingent Liability
(d) Commitments   

47. From the following, which formula is correct for computing operating ratio?

48. Financial statement can be used for which of the following purpose?
(i) Security analysis
(ii) Credit analysis
(iii) Dividend analysis
(a) (i) and (ii)
(b) (ii) and (iii)
(c) Only (iii)
(d) All of these   

Section – B

49. Which of the following is true with regards to ratios?
(i) Purchase of stock-in-trade on credit will increase both current and quick ratio.
(ii) Sale of stock at loss will increase both current and quick ratio.
(iii) Cash payment of non-current liability will increase both current and quick ratio.
(iv) Sale of non-current asset for cash will increase both current and quick ratio.
(a) Only (iv)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (iii) and (iv)   

50. Assertion (A) Financial statement analysis measure the operating efficiency and profitability of the business.
Reason (R) Financial statement analysis measure only short financial position of business.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true   

51. Opening stock ₹ 5,000; purchases ₹ 60,000; revenue from operations ₹ 2,00,000; purchase returns ₹ 2500; returns from revenue from operations ₹ 7,500, selling expenses ₹ 35,000; administrative expenses ₹ 20,000; closing stock ₹ 30,000. Operating profit ratio will be
(a) 54.5%
(b) 62.8%
(c) 90.2%
(d) None of these   

52. As per Companies Act, the balance sheet of a company is required to be presented in
(a) horizontal form
(b) vertical form
(c) Either horizontal or vertical form
(d) None of the above 

53. For whom, analysis of financial statements is not significant?
(i) Political Advisor of Prime Minister
(ii) Investors
(iii) Management
(iv) Financial Institutions
(a) (i) and (ii)
(b) (i) and (iv)
(c) (i) and (iii)
(d) Only (i)   

54. A company’s quick ratio is 1.5 : 1; current liabilities are ₹ 1,00,000 and inventory is ₹ 90,000. Current ratio will be
(a) 0.9 : 1
(b) 1.9 : 1
(c) 1.4 : 1
(d) 2.4 : 1   

55. Assertion (A) Quick ratio will not change when debentures are converted into shares.
Reason (R) Debentures converted into shares do not effect either quick assets or current liabilities.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true