Distinguish between 'Fixed Capital Account' and 'Fluctuating Capital Account' on the basis of credit balance.
Class 12 · Accountancy · CBSE Board · 2017
Class 12 Accountancy 2017 Board Exam
37 questions from the 2017 Class 12 exam, combined from all 3 question paper sets (Set 1–3) with duplicates removed.
37questions
3exam sets
10chapters covered
1 / 3 / 4 / 6 / 8mark values
Questions from the 2017 exam first 10 of 37 — free
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 2,00,000 and ₹ 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error.
Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any two categories of individuals other than minors who cannot be admitted by them.
A, B, C and D were partners in a firm sharing profits in the ratio of 3 : 2 : 3 : 2. On 1.4.2016, their Balance Sheet was as follows :
Balance Sheet of A, B, C and D as on 1.4.2016
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Fixed Assets | 8,25,000 | |
| A 2,00,000 | Current Assets | 3,00,000 | |
| B 2,50,000 | |||
| C 2,50,000 | |||
| D 3,10,000 | 10,10,000 | ||
| Sundry Creditors | 90,000 | ||
| Workmen Compensation Reserve | 25,000 | ||
| Total | 11,25,000 | Total | 11,25,000 |
From the above date the partners decided to share the future profits in the ratio of 4 : 3 : 2 : 1. For this purpose the goodwill of the firm was valued at ₹ 2,70,000. It was also considered that :
(i) The claim against Workmen Compensation Reserve has been estimated at ₹ 30,000 and fixed assets will be depreciated by ₹ 25,000.
(ii) Adjust the capitals of the partners according to the new profit sharing ratio by opening Current Accounts of the partners.
Prepare Revaluation Account, Partners' Capital Account and the Balance Sheet of the reconstituted firm.
Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1.4.2016 their Balance Sheet was as follows :
Balance Sheet of Suresh, Ramesh, Mahesh and Ganesh as on 1.4.2016
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Fixed Assets | 6,00,000 | |
| Suresh 1,00,000 | Current Assets | 3,45,000 | |
| Ramesh 1,50,000 | |||
| Mahesh 2,00,000 | |||
| Ganesh 2,50,000 | 7,00,000 | ||
| Sundry Creditors | 1,70,000 | ||
| Workmen Compensation Reserve | 75,000 | ||
| Total | 9,45,000 | Total | 9,45,000 |
From the above date the partners decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ 90,000.
It was also agreed that :
(i) Claim against Workmen Compensation Reserve will be estimated at ₹ 1,00,000 and fixed assets will be depreciated by 10%.
(ii) The capitals of the partners will be adjusted according to the new profit sharing ratio. For this, necessary cash will be brought or paid by the partners as the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
Kapil, Mohit, Roshan and Rakesh were partners in a firm sharing profits in the ratio of 5 : 2 : 2 : 1. On 1.4.2016 their Balance Sheet was as follows :
Balance Sheet of Kapil, Mohit, Roshan and Rakesh as on 1.4.2016
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Fixed Assets | 8,00,000 | |
| Kapil 3,50,000 | Current Assets | 4,00,000 | |
| Mohit 3,00,000 | |||
| Roshan 2,50,000 | |||
| Rakesh 2,00,000 | 11,00,000 | ||
| Sundry Creditors | 50,000 | ||
| Workmen Compensation Reserve | 50,000 | ||
| Total | 12,00,000 | Total | 12,00,000 |
From the above date the partners decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ 72,000.
It was also agreed that :
(i) Fixed assets will be depreciated by 10% and the claim against Workmen Compensation Reserve will be estimated at ₹ 70,000.
(ii) The capitals of the partners will be adjusted according to the new profit sharing ratio. For this, Partners' Current Accounts will be opened.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3 : 2 : 3. A surrendered 1/5th of his share in favour of C. Calculate B's sacrifice.
Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were ₹ 4,00,000 and ₹ 6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought ₹ 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admission considering that Tina did not bring her share of goodwill premium in cash.
C and D are partners in a firm sharing profits in the ratio of 4 : 1. On 31.3.2016, their Balance Sheet was as follows :
Balance Sheet of C and D as on 31.3.2016
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Sundry Creditors | 40,000 | Cash | 24,000 |
| Provision for Bad Debts | 4,000 | Debtors | 36,000 |
| Outstanding Salary | 6,000 | Stock | 40,000 |
| General Reserve | 10,000 | Furniture | 80,000 |
| Capitals : | Plant and Machinery | 80,000 | |
| C 1,20,000 | |||
| D 80,000 | 2,00,000 | ||
| Total | 2,60,000 | Total | 2,60,000 |
On the above date, E was admitted for 1/4th share in the profits on the following terms :
(i) E will bring ₹ 1,00,000 as his capital and ₹ 20,000 for his share of goodwill premium, half of which will be withdrawn by C and D.
(ii) Debtors ₹ 2,000 will be written off as bad debts and a provision of 4% will be created on debtors for bad and doubtful debts.
(iii) Stock will be reduced by ₹ 2,000, furniture will be depreciated by ₹ 4,000 and 10% depreciation will be charged on plant and machinery.
(iv) Investments of ₹ 7,000 not shown in the Balance Sheet will be taken into account.
(v) There was an outstanding repairs bill of ₹ 2,300 which will be recorded in the books.
Pass necessary journal entries for the above transactions in the books of the firm on E's admission.
Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3 : 2 : 2 : 1. On 1.2.2017, Guru retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3 : 1 : 1. On Guru's retirement the goodwill of the firm was valued at ₹ 3,60,000.
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment of goodwill on Guru's retirement.
Chapters covered in the 2017 exam
Accounting for Partnership – Basic Concepts
6 questions in 2017
Reconstitution of Partnership – Admission of a Partner
3 questions in 2017
Reconstitution of Partnership – Retirement / Death of a Partner
3 questions in 2017
Dissolution of Partnership Firm
3 questions in 2017
Accounting for Share Capital
4 questions in 2017
Issue and Redemption of Debentures
5 questions in 2017
Financial Statements of a Company
2 questions in 2017
Analysis of Financial Statements
3 questions in 2017
Accounting Ratios
1 question in 2017
Cash Flow Statement
7 questions in 2017
About the 2017 Class 12 Accountancy paper
CBSE conducted the 2017 Class 12 Accountancy board exam in 3 question paper sets — students in different regions received different sets of the same exam. This page combines every set and removes repeated questions, giving you all 37 unique questions actually asked that year. The 2017 questions drew from 10 chapters of the syllabus.