Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 4 will help students in understanding the difficulty level of the exam.

CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 4 with Solutions

Time Allowed: 2 Hours
Maximum Marks: 40

General Instructions

  • This question paper comprises two Parts A and B. There are 12 questions in the question paper. All questions are compulsory.
  • Question nos. 1 to 3 and 10 are Short Answer Type I Questions carrying 2 marks each.
  • Question nos. 4 to 6 and 11 are Short Answer Type II Questions carrying 3 marks each.
  • Question nos. 7 to 9 and 12 are Long Answer Type Questions earning 5 marks each.
  • There is no overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.

Maximum Marks : 40
Time : 2 Hours

Part A
(Accounting for Not-for-Profit Organisations, Partnership Firms and Companies)

Short Answer (SA) Type I Questions (2 Marks)
Question 1.
From the following information of a club, show the amounts of match expenses and match fund in the financial statements of the club for the year ended on 31st March, 2021.
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 1
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 2
Note Expenses on account of match exceed the balance in match fund by ? 1,000. This amount will be debited to income and expenditure account.

Question 2.
Why a retiring partner is entitled to a share of goodwill of the firm?
Answer:
When an existing partner of a firm decides to retire from the firm, the remaining partner(s) will gain in future profits. The remaining partner who gains by acquiring an additional right to share future profits must compensate the outgoing partner who sacrifices by foregoing his right to share future profits. The amount of compensation must be equal to the proportionate value of firm’s goodwill.

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Question 3.
Kanu, Sunny and Richa are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. As per the terms of partnership deed, on the death of any partner, goodwill was to be valued at 3 years’ purchase of average profits of last 5 years which were 2016 – ₹ 40,000, 2017 – ₹ 40,000, 2018 – ₹ 30,000, 2019 – ₹ 40,000 and 2020 – ₹ 50,000. Kanu died on 29th May, 2020 and the new profit sharing ratio decided between Sunny and Richa is 1 : 1. Pass necessary journal entry to adjust Kanu’s share of goodwill and show your workings clearly.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 3
Working Notes
1. Calculation of Gaining Ratio
Gaining Ratio = New Share – Old Share
Sunny = \(\frac{1}{2}-\frac{3}{8}=\frac{4-3}{8}=\frac{1}{8}\) ; Richa = \(\frac{1}{2}-\frac{1}{8}=\frac{4-1}{8}=\frac{3}{8}\); Gaining Ratio = 1 : 3

2. Calculation of Goodwill
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 4
Goodwill = Average Profit × Number of Year’s Purchase = 40,000 × 3 = ₹ 1,20,000
Kanu’s share of goodwill = 1,20,000 × \(\frac{4}{8}\) = ₹ 60,000
₹ 60,000 will be contributed by Sunny and Richa in their gaining Ratio i.e., 1 : 3.

Short Answer (SA) Type II Questions (3 Marks)
Question 4.
A company purchased an asset of the book value of ₹ 11,000. Purchase consideration was paid by issuing 12% debentures of ? 100 each. Give journal entries assuming that debenture:: have been issued at (i) par (ii) premium of 10%.
Or
Pass the necessary journal entries for the following
(i) Goel Ltd. invited applications for issuing 6,000,12% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Application were received for 8,000 debentures.
Applications of 2,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.
(ii) Goel Ltd issued 2,000,10% debentures of ₹ 100 each at 10% premium which are redeemable at par.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 5
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 6
Working Note

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Number of Debentures Issued = \(\frac{11,000}{100+10}\) = 100 Debentures
Or
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 7

Question 5.
Krishna and Priyansh are partners sharing profits in the ratio of 1 : 1. They decided to dissolve their firm. Pass necessary journal entries for the following transactions
(i) Workmen compensation reserve stood at ₹ 6,000 and liability in respect of it was ascertained at ₹ 7,500.
(ii) Realisation expenses amounted to ₹ 15,000 were paid by the firm on behalf of a partner, Krishna.
(iii) There was an unrecorded furniture of ₹ 6,000 which was taken over by Krishna at ₹ 5,000.
Or
A, B and C are partners. They share profits in capital ratio. Their balance sheet is given below
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 8

Additional Information
(i) B takes retirement.
(ii) New ratio of A and C is 1 : 1.
(iii) Goodwill of the firm ₹ 1,20,000.
(iv) Make 5% provision for debtors.
(v) Building increased by 10%.
(vi) Make provision for claim for damages of ₹ 12,000.
(vii) ₹ 20,000 paid to B in cash. Balance transferred to his loan account.
Prepare revaluation account.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 9
Or
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 10

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Question 6.
The following is the receipts and payments account of Queen’s Club for the year ended 31st March, 2020
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 11
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 12
The following additional information is provided
(i) Subscription include ₹ 22,000 for 2018-19 and ₹ 8,000 for 2020-21.
(ii) Stock of stationery on 31st March, 2019 and 2020 was ₹ 4,200 and ₹ 6,400 respectively.
(iii) Stock of sports material at the beginning and end of the year were ₹ 18,000 and ₹ 31,000 respectively.
(iv) Rent includes ₹ 4,000 paid for March, 2019, rent for March, 2020 is outstanding.
(v) Telephone expenses include ₹ 3,000 as quarterly expenses upto 31st May, 2020.
(vi) The value of building as on 31st March, 2019 was ₹ 8,00,000 and you are required to write-off depreciation @ 5%.
(vii) The value of investments on 31st March, 2019 was ₹ 10,00,000 and the club made similar additional investment during the year on 1st October, 2019.

You are required to prepare income and expenditure account of the club for the year ended 31st March, 2020.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 13

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Working Note
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 14

Long Answer (LA) Type Questions (5 Marks)
Question 7.
X and Y were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2020, the balance sheet of the firm was as follows
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 15
The firm was dissolved on 1st April, 2020 and the assets and liabilities were settled as follows
(i) Building was taken over by creditors as their full and final payment.
(ii) Furniture was taken over by Y for cash payment at 5% less than the book value.
(iii) Debtors were collected by a debt collection agency at a cost of ₹ 5,000.
(iv) Stock realised ₹ 70,500.
(v) Y agreed to bear all realisation expenses. For this service, Y is paid ₹ 500. Actual expense of realisation amounted to ₹ 1,000.
Pass necessary journal entries for dissolution of the firm.
Or
A, B and C were partners in a firm sharing profit and loss in the ratio of 4 : 3 : 3. On 31st March, 2021, their balance sheet was as follows
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 16
On the above date, A retired and it was agreed that
(i) Debtors of ₹ 4,000 will be written-off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(ii) An unrecorded creditor of ₹ 20,000 will be recorded.
(iii) Patents will be completely written-off and 5% depreciation will be charged on stock, machinery and building.
(iv) B and C will share the future profit in the ratio of 3 : 2.
(v) Goodwill of the firm on A’s retirement was valued at ₹ 5,40,000.
Pass necessary journal entries for the above transactions in the books of the firm on A’s retirement.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 17

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Working Notes
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 18
Or
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 19
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 20
Working Notes
1. Calculation of Gaining Ratio
Gaining Ratio = New Share – Old Share
B = \(\frac{3}{5}-\frac{3}{10}=\frac{6-3}{10}=\frac{3}{10}\)
C = \(\frac{2}{5}-\frac{3}{10}=\frac{4-3}{10}=\frac{1}{10}\)
Gaining Ratio = 3 : 1
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 21
3. Calculation of Sameer’s Share of Goodwill Firm’s goodwill = ₹ 5,40,000; A’s share = 5,40,000 × \(\frac{4}{10}\) 2,16,000
To be contributed by B and C in their gaining ratio i.e., 3 : 1.

4. Loss on Revaluation
It can be ascertained by preparing revaluation account in the following manner
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 22

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Question 8.
Entertainment Tennis Club presented the following receipts and payments account for the year ended 31 March, 2020.
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 23
Additional Information

1st April, 2019 (₹) 31st March, 2020 (₹)
Tennis Balls on Hand (at cost) 1,600 3,600
Creditors for Refreshments 16,000 12,000
Subscriptions Outstanding 8,000 14,000
Club Courts 2,40,000

Prepare an income and expenditure account for the year ended 31st March, 2020 and show the balance sheet as on that date. Also prepare the relevant accounts for computation of various items.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 24
Working Notes
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 25
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 26

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Question 9.
Pass the journal entires in following cases
(i) Laxmi Ltd. purchased the assets of Shri Ram Ltd. for ₹ 5,00,000, payable ₹ 1,00,000 in cash and the balance by issue of 7% debentures of ₹ 100.
(ii) PQR Ltd. took over assets of ₹ 5,00,000 and liabilities of ₹ 60,000 of XYZ company for the purchase consideration of ₹ 6,60,000. PQR Company Ltd. paid the purchase consideration by issuing debentures of ₹ 100 each at 10% premium.
(iii) Ashima Ltd purchased furniture from Disha Ltd and paid to Disha Ltd as follows
(a) By issuing 20,000,10% debentures of ₹ 100 each at premium of 10%.
(b) Balance by accepting a bill of exchange of ₹ 40,000 payable after one month.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 27
Working Note
Number or Shares Issued = \(\frac{\text { Amount Due }}{\text { Issue Price }}=\frac{4,00,000}{100}\) = 4,000 Debentures
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 28
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 29
Working Note
Number of Debentures = \(\frac{6,60,000}{110}\) = 6,000 Debentures
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 30
Working Note
Purchase Consideration = 20,000 × 110 + 40,000 = ₹ 22,40,000

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Part B
(Analysis of Financial Statements)

Short Answer (SA) Type I Question (2 Marks)
Question 10.
State whether the following will result in inflow, outflow or no flow of cash.
(i) Old vehicle written-off.
(ii) Bills receivable endorsed to creditors.
Answer:
(i) No flow of cash. Writing-off old vehicle implies charging depreciation in the profit and loss
account. Here, no cash is involved as depreciation is a non-cash expense.
(ii) Bills receivable endorsed to creditors indicates neither an inflow or an outflow of cash. In this transaction, only current liabilities and current assets balance gets reduced in the balance sheet. Thus, cash balance remain unaffected.

Short Answer (SA) Type II Question (3 Marks)
Question 11.
Prepare comparative statement of profit and loss from the following information

Particulars 31st March, 2021 (₹) 31st March, 2020 (₹)
Revenue from Operations 20,00,000 16,00,000
Purchase of Stock-in-trade 8,80,000 6,20,000
Change in Inventories of Stock-in-trade 50,000 90,000
Other Expenses 10% of cost of Revenue from Operations 8% of Cost of Revenue from Operations
Tax Rate 30% 46%

8% of Cost of Revenue from Operations
46%
Or
Following are the balance sheets of Arihant Tiles Ltd. as at 31st March, 2019 and 31st March, 2020
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 30
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 32
Notes to Accounts
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 33

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Additional Information
During the year, a piece of machinery costing ₹ 18,000 on which accumulated depreciation was ₹ 12,000, was sold for ₹ 4,500. Prepare cash flow from investing activity.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 34
Working Note
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 35
Or
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 36

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Long Answer (LA) Type Question (5 Marks)
Question 12.
From the following balance sheets of Karunesh Ltd. as on 31st March, 2019 and 2020, . prepare a cash flow statement.
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 37
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 38
Notes to Accounts
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 39
Additional Information
(i) Depreciation charged on building ₹ 20,000 and plant ₹ 10,000.
(ii) Interest paid on debentures ₹ 14,400. New debentures of ₹ 36,000 were issued on 1st October, 2019.
(iii) Interest paid on deposits from public ₹ 19,200 for the year.
Answer:
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 40
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 41

CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions

Working Notes
CBSE Sample Papers for Class 12 Accountancy Term 2 Set 4 with Solutions 42