ISC Board Class 12 Accounts Sample Paper 2024-25: Download PDF Here

Question 1

In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the questions as instructed.

(i) The commission due to a partner is closed by:

(a) Debiting it to Partner’s Capital A/c

(b) Crediting it to Partner’s Capital A/c

(c) Debiting it to P/L Appropriation A/c

(d) Crediting it to P/L Appropriation A/c

(ii) 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:

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

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

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

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

(iii) 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

(a) P, Q, R

(b) Q, R, S

(c) P, Q, S

(d) P, R, S

(iv) Given below is a fictitious scenario. Read the information and answer the question

that follows:

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.

(a) ₹ 1,20,000

(b) ₹ 2,40,000

(c) ₹ 90,000

(d) ₹ 1,80,000

(v) 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. 

(vi) 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:

• Unaccounted accrued income of ₹ 10,000 to be provided for

• Bills Payable of ₹ 10,000 which were recorded, to be discharged at a rebate of

10%

• Debtors of ₹ 2,000 to be irrecoverable

• Provision for doubtful debts to be provided @ 2% of the debtors

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

(vii) 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?

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

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

(c) Assertion is false and Reason is true.

(d) Both Assertion and Reason are false. 

(viii) 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. 

(ix) 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.

(Source: The Telegraph, Kolkata, 29 March, 2024)

(a) What is a share warrant?

(b) 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.

(x) 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. 

Question 2

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:

(a) 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.

(b) 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. 

(OR)

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:

Akshat ₹ 1,66,000

Javed ₹ 66,000

Gaurav ₹ 1,41,000

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:

(i) The adjustment for self-generated goodwill of the firm.

(ii) Cash brought in by Javed and Gaurav to pay off Akshat’s executor.

(iii) Payment made to Akshat’s executor. 

Question 3

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.

(OR)

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:

(i) Give the amounts in rupees payable with:

1. Allotment

2. Second and Final Call

(ii) Prepare the Interest-on-Calls in Arrears A/c. 

Question 4

Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹ 100

each at a premium of 5 % in instalments, as follows:

Date of Redemption Debentures to be redeemed

31st March, 2022 2,000

31st March, 2023 3,000

31st March, 2024 2,000

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

(i) General Reserve Account.

(ii) Debenture holders’ Account. (Ignore interest on Debentures) 

Question 5

Kriti and Atif are partners sharing profits and losses equally. On 31st March, 2024, they

admitted David as a third partner for ⅕ 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:

Question 6

Question 7

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:

(a) Loss on revaluation due to depreciation on machinery @ 20% per annum.

(b) The General Reserve maintained in the old firm was not to be disturbed in the

reconstituted firm.

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

(a) Gama to have ¼ share of profits, half of which is to be gifted to him by his father and

the remaining half to be purchased from Alfa.

(b) Gama to bring in ₹ 60,000 as his capital but would be unable to bring in cash his share

of goodwill.

(c) Goodwill of the firm to be valued at ₹ 40,000.

(d) 50% of the investment to be taken over by Alfa and Beta in their profit-sharing ratio.

(e) The liability on account of Workmen’s Compensation Claim to be ₹ 30,000.

You are required to:

(i) Calculate the new profit-sharing ratio of all the partners. 

(ii) Prepare the Partners’ Capital Accounts. 

ISC Class 12 Accounts Sample Paper 2025 Download PDF