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Overview of AHSEC Class 12 Accountancy 2025 Question Paper
Board: AHSEC (Assam Higher Secondary Education Council)
Subject: Accountancy (New Course)
Class: 12th / HS 2nd Year
Exam Year: 2025
Total Marks: 80
Passing Marks: 24
Time: 3 Hours
This paper follows the latest ASSEB/AHSEC pattern and covers all expected types of questions – objective, short answer, numerical, journal entries, and practical accounting.
AHSEC Class 12 Accountancy Solved Question Paper 2025
2025
ACCOUNTANCY
(For New Course Students)
Full Marks: 80
Pass Marks: 24
Time: Three hours
The figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks with appropriate word/ words: (any four) 1x4=4
(i) New Ratio – Old Ratio = __________.
Answer: Sacrificing Ratio
(ii) Closing Stock is valued at cost or market price whichever is ________.
Answer: Lower
(iii) _________statement is also known as Profit and Loss Account.
Answer: Income
(iv) ________is the extra earning capacity of a partnership firm.
Answer: Goodwill
(v) Balance Sheet shows financial ________of an enterprise.
Answer: Position
(b) State whether the following statements are ‘True’ or ‘False’: 1x2=2
(i) Company is an artificial person.
Answer: True
(ii) Debt-Equity ratio is a kind of liquidity ratios.
Answer: False
(c) Choose the correct alternative: 1x2=2
(i) When a new partner is admitted, the increase in the value of assets is debited to:
(a) Profit and Loss Account
(b) Assets Account
(c) Capital account of old partners
(d) None of the above
Answer: (b) Assets Account
(ii) As per Companies Act, 2013, the maximum rate of interest on calls-in-arrears is:
(a) 11%
(b) 10%
(c) 6%
(d) 12%
Answer: (b) 10%
2. Name two types of shares which a company can issue.
Answer:
Equity Shares
Preference Shares
3. Mention any two items which are recorded on the debit side of Profit and Loss Appropriation Account.
Answer:
Transfer to General Reserve
Proposed Dividend
4. Which is a Partner's Current Account?
Answer: Partner’s Current Account is the account used to record all transactions between the partner and the firm, excluding capital contributions. It includes items like salary, interest on capital, drawings, share of profit or loss, etc.
Or
What is meant by guarantee of profit to a partner?
Answer: Guarantee of profit to a partner means assuring a minimum amount of profit to a particular partner by other partner(s) or by the firm. If the partner’s share of profit is less than the guaranteed amount, the deficiency is borne by the guaranteeing partner(s).
5. What is the paid-up capital of a company?
Answer: Paid-up capital is the portion of the subscribed capital for which the company has received payment from the shareholders. It is the actual capital received by the company from shareholders in exchange for shares issued.
Or
What is meant by a computerised accounting system?
Answer: A computerised accounting system is an accounting system that uses computer software to record, store, and analyze financial data. It increases efficiency, accuracy, and speed in processing financial transactions.
6. Give two limitations of financial statement analysis.
Answer:
It is based on historical data and may not reflect the current financial condition.
Different firms may use different accounting policies, making comparison difficult.
Or
What is data verification?
Answer: Data verification is the process of ensuring that the data entered into a system is accurate, consistent, and conforms to the desired format. It helps maintain data integrity and reliability.
7. Write two features of cash flow statement.
Answer:
It shows the inflows and outflows of cash and cash equivalents during a specific period.
It classifies cash flows into operating, investing, and financing activities.
Or
Write two uses of an electronic spreadsheet.
Answer:
It helps in performing complex calculations quickly using formulas and functions.
It is used for creating charts and graphs to analyze and present data visually.
8. A, B and C are partners sharing profits in the ratio of 2: 2: 1 respectively. They admit D as a new partner for 1/6th share in the profits. Calculate the sacrificing ratio. 3
Answer:
Old Ratio = 2:2:1 = 12/30 : 12/30 : 6/30
New Share of A = 5/6 × 2/5 = 10/30
New Share of B = 5/6 × 2/5 = 10/30
New Share of C = 5/6 × 1/5 = 5/30
Sacrifice of A = 12/30 − 10/30 = 2/30
Sacrifice of B = 12/30 − 10/30 = 2/30
Sacrifice of C = 6/30 − 5/30 = 1/30
Sacrificing Ratio = 2 : 2 : 1
Or
Explain the super profit method of valuation of goodwill.
Q. Explain the super profit method of valuation of goodwill.
Answer: Super Profit Method calculates goodwill based on excess profit earned by a firm over normal profit.
Formula:
Goodwill = Super Profit × Number of Years’ Purchase
Where,
Super Profit = Actual Average Profit − Normal Profit
Normal Profit = Capital Employed × Normal Rate of Return / 100
This method assumes that goodwill arises due to the firm’s ability to earn more than the normal return.
Q. 9. Write three uses of financial statement analysis.
Answer:
It helps in assessing the profitability and financial position of a business.
It aids investors and creditors in making informed decisions.
It assists management in planning, decision-making, and controlling business operations.
Or
Seru Ltd. has a liquid ratio of 2:1. The values of inventory, prepaid expenses and current liabilities are Rs. 50,000, Rs. 10,000 and Rs. 2,00,000 respectively. Find out the value of current assets.
Answer:
Liquid Ratio = Liquid Assets / Current Liabilities
Given:
Liquid Ratio = 2:1
Current Liabilities = Rs. 2,00,000
Liquid Assets = 2 × 2,00,000 = Rs. 4,00,000
Current Assets = Liquid Assets + Inventory + Prepaid Expenses
= 4,00,000 + 50,000 + 10,000
= Rs. 4,60,000
Or
Mention the steps for creating graphs using Excel.
Answer:
Enter the data in rows and columns.
Select the data range to be used for the graph.
Go to the 'Insert' tab on the ribbon.
Choose the desired chart type (e.g., Column, Line, Pie).
Customize the chart using Chart Tools (e.g., title, labels, colors).
Q. 10. What is buyback of shares?
Answer: Buyback of shares refers to the process by which a company repurchases its own shares from the existing shareholders, usually at a price higher than the market price. It is done to reduce the number of outstanding shares, increase the value of remaining shares, and utilize surplus cash.
Or
Give three examples of cash inflow from operating activities.
Answer:
Cash received from customers.
Cash received as commission and fees.
Cash refund of income tax.
Or
Write in brief about Accounting Information System (AIS).
Answer: Accounting Information System (AIS) is a computer-based system that collects, stores, processes, and reports financial data used by decision-makers. It helps in recording transactions, preparing reports, ensuring accuracy, and supporting financial analysis.
Q. 11. Write three distinctions between Revaluation Account and Realisation Account.
Answer:
Or
Q. Why is a retiring partner entitled to a share of goodwill of the firm?
Answer: A retiring partner is entitled to a share of goodwill because they have contributed to building the reputation and earning capacity of the firm. Goodwill represents the firm's ability to earn super profits, and the retiring partner should be compensated for their share in this value, which benefits the remaining partners after their retirement.
12. Prepare a Comparative Income Statement from the following particulars of BP Ltd. 6
Answer:
Comparative Income Statement of BP Ltd. for the Years 2022 and 2023
Note:
COGS = 60% of Sales
Indirect Expenses = 5% of Sales
Income Tax = 50% of Net Profit before Tax
Or
Q. Explain the nature of financial statements.
Answer: The nature of financial statements refers to their key characteristics and the role they play in presenting the financial position and performance of a business. The main points highlighting their nature are:
Recorded Facts: Financial statements are based on actual transactions recorded in the books of accounts. They reflect historical data like purchase cost, sales, expenses, and revenues.
Accounting Conventions: These statements follow specific accounting principles and conventions such as consistency, conservatism, materiality, and full disclosure, which influence the way data is presented.
Personal Judgments: Preparation of financial statements involves judgments and estimates like provision for doubtful debts, depreciation methods, and valuation of inventory, which can vary from person to person.
Artificial Periodicity: Financial statements are prepared for a specific accounting period (e.g., annually), although business operations are continuous. This helps in performance comparison over time.
Financial Position and Performance: They reflect the financial health of a business through Balance Sheet (financial position) and Profit and Loss Account (financial performance).
Means of Communication: Financial statements act as a primary tool to communicate financial information to stakeholders like investors, creditors, management, and regulatory authorities.
Thus, financial statements are structured representations of a company’s financial data that are shaped by principles, estimates, and reporting standards.
Or
Discuss the features of Database Management System.
Answer: The features of a Database Management System (DBMS) are:
Data Redundancy Control: DBMS minimizes data duplication by integrating data in a centralized system, ensuring consistency.
Data Sharing: It allows multiple users to access the same database simultaneously without conflict.
Data Security: DBMS ensures that only authorized users can access or manipulate the data by implementing security permissions.
Data Independence: Data is stored separately from the application programs, allowing changes in the database structure without affecting the application code.
Backup and Recovery: DBMS provides automatic backup and recovery mechanisms in case of system failure or data loss.
Improved Data Access: DBMS provides flexible querying tools (like SQL) to retrieve and manipulate data efficiently.
13. What is meant by debenture? Explain the types of debentures. (1+5=6)
Answer: Meaning of Debenture : A debenture is a long-term debt instrument issued by a company to borrow funds from the public. It is a written acknowledgment of debt under the company’s seal, usually with a fixed rate of interest payable at regular intervals.
Types of Debentures:
Secured and Unsecured Debentures:
Secured Debentures are backed by company assets.
Unsecured Debentures have no collateral and rely on the creditworthiness of the issuer.
Convertible and Non-Convertible Debentures:
Convertible Debentures can be converted into equity shares after a specified period.
Non-Convertible Debentures cannot be converted into shares.
Registered and Bearer Debentures:
Registered Debentures are issued in the name of a specific holder and require registration.
Bearer Debentures are transferable by delivery and do not need registration.
Redeemable and Irredeemable Debentures:
Redeemable Debentures are repaid by the company after a certain period.
Irredeemable Debentures are not repayable during the lifetime of the company (rare now).
Participating and Non-Participating Debentures:
Participating Debentures allow holders to share in surplus profits.
Non-Participating Debentures are limited to fixed interest only.
Or
Give journal entries in the books of MB Ltd. for issue and redemption of debentures under the following situations: 2x3=6
(a) Rs. 4,50,000, 12% Debentures issued at a discount of 5% and redeemable at a premium of 5%.
(b) 10,000, 15% Debentures of Rs. 100 each issued at a premium of 10% and redeemable at par.
(c) 2,000, 8% Debentures of Rs. 100 each issued at a discount of 4% and redeemable at par.
14. Explain how the amount due to a retiring partner is ascertained.
Answer:The amount due to a retiring partner is determined by settling all claims and contributions related to their share in the partnership. The following adjustments are made:
Capital Account Balance: The closing balance of the retiring partner’s capital account is the base amount.
Share of Goodwill: The retiring partner is entitled to their share of the firm’s goodwill, which is credited to their account and debited to the remaining partners in the sacrificing ratio.
Share of Reserves and Accumulated Profits/Losses: The retiring partner’s share in general reserve, profit and loss account, or revaluation gains/losses is adjusted.
Revaluation of Assets and Liabilities: Any increase or decrease in asset or liability values is adjusted through the Revaluation Account and affects the partner’s capital.
Share of Current Year’s Profit (if applicable): The retiring partner may be given a share of profit up to the date of retirement based on previous year’s profit or actual profit for the period.
Interest on Capital/Drawings and Salary (if applicable): Interest or salary payable to the partner is added, and any drawings are deducted.
After all these adjustments, the final amount due is either paid to the retiring partner or transferred to a loan account if not paid immediately.
Or
Babatu, Cintu and Montu were partners in a firm sharing profits and losses in the ratio of their capitals. Their Balance Sheet on 31-03-2022 was as follow:
Balance Sheet
Babatu died on 30-06-2022. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:
(i) Amount standing to the credit of deceased partner’s capital account.
(ii) Interest on capital @ 5% p.a.
(iii) Share of goodwill on the basis of twice the average of past three years’ profits.
(iv) Share of profit from the closing of the last financial year to the date of death on the basis of last year’s profits.
Profits for 2019-20, 2020-21 and 2021-22 were Rs. 6,000, Rs. 8,000 and Rs. 7,000 respectively.
Prepare Babatu’s capital account on the date of his death.
15. What is meant by dissolution of partnership firm by giving notice? Mention any four situations when a partnership firm may be dissolved by the court. (2+4=6)
Answer:
Dissolution by Giving Notice: In a partnership at will, any partner can dissolve the firm by giving a written notice of dissolution to all other partners. The firm stands dissolved from the date mentioned in the notice or the date of communication.
Situations When a Firm May Be Dissolved by the Court (4 Marks):
When a partner becomes of unsound mind.
When a partner becomes permanently incapable of performing his duties.
When a partner is guilty of misconduct affecting the business.
When the firm’s business cannot be carried on except at a loss.
Or
Tarun and Moni are two equal partners of a business. They decided to dissolved their firm on 31st March 2023. Their Balance Sheet on that date was as under:
Balance Sheet
(i) Fixed assets are realised at Rs. 27,600 and debtors realised at 60% of book value.
(ii) Investments are taken over by Tarun at book value.
(iii) Sundry Creditors agreed to accept 15% less.
(iv) Stock are realised at Rs. 40,000.
(v) Expenses on realisation are Rs. 500.
(vi) An unrecorded printer realised Rs. 500
Close the firm’s books by preparing a Realisation Account, Partner’s Capital Accounts and Cash Account.
16. Ayushi Ltd. issued 7,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows: 8
On Application – Rs. 3
On Allotment – Rs. 5 (including premium)
On First and Final Call – Rs. 4
Applications were received for 11,000 shares. The excess money was refunded and the allotment money was received in full. When the first and final call was made the amount due was received with the exception of 200 shares. These 200 shares were forfeited and subsequently reissued as fully paid up for a consideration of Rs. 6 per share.
Give Journal entries in the books of the company recording the transactions.
Or
Write short notes on: (any four) 2x4=8
Q. Write short notes on: (any four) 2×4=8
(a) Under Subscription
(b) Capital Reserve
(c) Pro-rata Allotment
(d) Securities Premium
(e) Convertible Debenture
Answer:
(a) Under Subscription: Under subscription occurs when the number of shares applied for by the public is less than the number of shares offered by the company. It indicates low investor interest in the issue.
(b) Capital Reserve: Capital Reserve is a reserve created out of capital profits (e.g., profit on sale of fixed assets or issue of shares at a premium). It is not available for distribution as dividend.
(c) Pro-rata Allotment: Pro-rata allotment means allotting shares in proportion to the number of shares applied for when applications exceed the number of shares issued. It ensures fair distribution.
(d) Securities Premium: Securities premium is the amount received by a company over and above the face value of its shares. It is credited to the Securities Premium Account and used for specific purposes under the Companies Act.
(e) Convertible Debenture: Convertible debenture is a type of debenture that can be converted into equity shares of the company after a specified period under certain conditions.
Or
Q. Write the limitations of a Computerised Accounting System.
Answer:The limitations of a computerised accounting system are as follows:
High Cost of Installation and Maintenance: Setting up a computerised accounting system involves significant costs for hardware, software, networking, and regular maintenance.
Risk of Data Loss: Data may be lost due to hardware failure, virus attacks, or accidental deletion if proper backups and security measures are not in place.
Dependence on Trained Personnel: Skilled personnel are required to operate the system. Lack of training can lead to errors and inefficiency.
System Failure Risk: In case of system crashes or technical issues, the entire accounting process can come to a halt, affecting business operations.
Security Concerns: Sensitive financial data is vulnerable to hacking, data theft, or unauthorized access if proper security controls are not implemented.
Limited Flexibility: Customizing reports or features beyond the system’s capability may require additional software development or third-party tools.
Resistance to Change: Employees accustomed to manual accounting may resist switching to a computerised system, creating operational challenges.
Regular Upgradation Needed: Software and hardware require frequent updates to remain efficient and secure, which can be costly and time-consuming.
These limitations must be carefully managed to ensure smooth functioning and reliability of the accounting process.
17. Sikha and Sneha are partners in a firm sharing profits in the ratio of 2:1. On 1st January, 2022, their Balance Sheet was as under: 8
On the above data, they admitted Anisha as a new partner on the following terms:
(i) Anisha will bring Rs. 1,00,000 as her capital and Rs. 60,000 as her share of goodwill for 1/4th share in the profits.
(ii) Plant is to be appreciated to Rs. 1,20,000 and the value of buildings is to be appreciated by 10%.
(iii) Stock is to be valued at Rs. 36,000.
(iv) A provision for bad and doubtful debts is to be created at 5% of debtors.
(v) Creditors will increase by Rs. 1,000 as an amount payable to Priyanka for goods purchased on credit was not taken into account.
Prepare Revaluation Account, Pass Journal Entries and prepare the Balance Sheet of the new firm.
Or
(i) Distinguish between Fixed Capital Account and Fluctuating Capital Account. 5
Answer:
(ii) How the adjustment of capitals is made at the time of admission of a new partner?
Answer: At the time of admission of a new partner, capital adjustments are made to bring the capitals of all partners (including the new one) in proportion to their new profit-sharing ratio. This can be done in two ways:
Adjustment of old partners' capitals: The existing partners may adjust their capitals (by bringing in or withdrawing capital) according to the new profit-sharing ratio.
Adjustment by new partner: The new partner may bring capital in proportion to his share of profit based on the total capital of the firm.
Goodwill adjustment: Any goodwill brought by the new partner is adjusted through the capital accounts of old partners in the sacrificing ratio.
18. Following is the Trial Balance of Arnab and Anvi as on 31st March, 2023: 8
Trial Balance
Prepare Profit and Loss Account, Profit and Loss Appropriation Account for the year ended 31st March, 2023 and a Balance Sheet as on that date after taking into consideration of the following adjustments:
(i) Partners are entitled to interest on capital at 5% p.a.
(ii) Transfer 10% of net profits to Reserve Fund.
(iii) Bad debts provision has to be increased to 5% on Debtors.
(iv) Interest on Investment accrued Rs. 500.
(v) Depreciate Machinery @10%.
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🔎 AHSEC Class 12 Accountancy 2025: Solved Questions Highlights
✍️ Objective Questions:
Fill in the blanks: e.g., “New Ratio – Old Ratio = Sacrificing Ratio”
True or False: e.g., “Company is an artificial person – True”
Multiple Choice Questions: e.g., Interest rate on calls-in-arrears as per Companies Act – 10%
📘 Short Answer Questions:
Two types of shares a company can issue: Equity & Preference Shares
Items on debit side of P&L Appropriation Account: Transfer to General Reserve, Proposed Dividend
Paid-up Capital: Capital actually received from shareholders
📊 Numerical Questions:
Sacrificing Ratio Calculation
Comparative Income Statement Preparation
Journal Entries for Issue and Redemption of Debentures
Final Account Adjustments
🧠 Conceptual Questions:
Difference between Fixed and Fluctuating Capital Account
Nature and Features of Financial Statements
Explanation of Goodwill Valuation, Debentures, and Cash Flow Statements
This paper provides an excellent model for practice and is extremely helpful for exam preparation.
📚 Who Should Use This Solved Paper?
HS 2nd Year (Class 12) students under AHSEC
Commerce stream learners looking for ASSEB Class 12 Accountancy Solved Question Paper 2025
Teachers preparing reference materials
Coaching institutes building mock papers (Only For Educational Purpose)
📌 How to Use This Solved Accountancy Paper Effectively?
Buy the PDF and take a printout.
Practice writing answers from memory, then check with the solution.
Focus on adjustment entries, ratios, and journal questions.
Use the questions to build your own model paper.
Final Words
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