MP Board Class 12 Accountancy PY Paper 2024: Solved Guide

MP Board Class 12 Accountancy Previous Year Paper 2024 — Complete solved paper with detailed answers for all sections including Part A (Accounting for Partnership Firms & Companies) and Part B (Financial Statement Analysis). This solved paper covers all 20 questions from the 2024 MP Board Accountancy exam, providing step-by-step solutions following the latest marking scheme and exam pattern. Perfect for Class 12 students preparing for the 2027 MP Board exams.

📊 Paper Overview & Exam Pattern 2024

The MP Board Class 12 Accountancy 2024 paper was divided into two parts — Part A (Accounting for Partnership Firms & Companies) and Part B (Financial Statement Analysis). The total marks were 80, with 20 marks allocated for internal assessment/project work. Below is the detailed marks distribution:

Section Topic Area Marks Question Type
A Accounting for Partnership Firms 35 MCQ + SA + LA
A Accounting for Companies 15 SA + LA
B Financial Statement Analysis 20 SA + LA
B Ratio Analysis & Cash Flow 10 Numerical + Theory
Total Theory + Numerical 80

📝 Part A — Accounting for Partnership Firms & Companies

Q1. Multiple Choice Questions (1 mark each)

(i) When a partner is admitted, the old partnership deed is:

(a) Revoked   (b) Renewed   (c) Dissolved   (d) Continued

✅ Answer: (a) Revoked

(ii) In the absence of partnership deed, interest on capital is paid at:

(a) 6% p.a.   (b) 8% p.a.   (c) No interest   (d) 10% p.a.

✅ Answer: (c) No interest — According to the Partnership Act, 1932, no interest on capital is payable in the absence of a partnership deed.

(iii) Goodwill of a firm is classified as:

(a) Current Asset   (b) Tangible Asset   (c) Intangible Asset   (d) Fictitious Asset

✅ Answer: (c) Intangible Asset — Goodwill has no physical form but has monetary value.

(iv) Share forfeiture account is shown in the Balance Sheet under:

(a) Reserves & Surplus   (b) Share Capital   (c) Current Liabilities   (d) Provisions

✅ Answer: (b) Share Capital — Share Forfeiture Account is added to the share capital under Schedule III of Companies Act.

Q2. Very Short Answer Questions (2 marks each)

(a) What is meant by ‘Revaluation Account’ in partnership accounting?

✅ Answer: Revaluation Account is a nominal account prepared at the time of admission, retirement, or death of a partner to record the change in value of assets and liabilities. Profit on revaluation is transferred to old partners’ capital accounts in their old profit-sharing ratio.

(b) What is ‘Calls in Arrears’? How is it shown in the Balance Sheet?

✅ Answer: Calls in Arrears refers to the amount called up by the company but not yet paid by shareholders. It is deducted from the ‘Subscribed Capital’ under Share Capital in the Equity & Liabilities section of the Balance Sheet as per Schedule III.

📝 Part B — Financial Statement Analysis

Q3. State with reason whether the following statements are TRUE or FALSE (1 mark each):

(a) Debentures are considered as part of shareholders’ funds.

✅ Answer: FALSE. Debentures are debt instruments and are shown under ‘Non-Current Liabilities’ in the Balance Sheet. They are not part of shareholders’ funds.

(b) Operating activities include cash received from sale of fixed assets.

✅ Answer: FALSE. Sale of fixed assets is an Investing Activity, not an Operating Activity. Operating activities include cash from principal revenue-generating activities.

(c) Current Ratio measures the long-term solvency of a business.

✅ Answer: FALSE. Current Ratio measures short-term liquidity (ability to pay short-term obligations), not long-term solvency.

Q4. Calculate Gross Profit Ratio from the following data (3 marks):

Revenue from Operations: ₹8,00,000
Cost of Revenue from Operations: ₹5,60,000
Sales Returns: ₹40,000

✅ Solution:
Gross Profit = Revenue from Operations − Cost of Revenue from Operations
Gross Profit = ₹8,00,000 − ₹5,60,000 = ₹2,40,000

Gross Profit Ratio = (Gross Profit / Net Revenue from Operations) × 100
Net Revenue from Operations = ₹8,00,000 − ₹40,000 = ₹7,60,000
Gross Profit Ratio = (₹2,40,000 / ₹7,60,000) × 100 = 31.58%

📋 Short Answer Questions (3-4 Marks Each)

Q5. A and B are partners sharing profits in 3:2 ratio. They admit C for 1/4th share. Calculate the new profit-sharing ratio. (3 marks)

✅ Solution:
Let total profit = 1
C’s share = 1/4
Remaining share = 1 − 1/4 = 3/4

A’s new share = 3/4 × 3/5 = 9/20
B’s new share = 3/4 × 2/5 = 6/20
C’s share = 1/4 = 5/20

New Ratio = 9 : 6 : 5

Q6. Distinguish between ‘Reserves’ and ‘Provisions’ with four points of difference. (4 marks)

Basis Reserves Provisions
Purpose Strengthen financial position, meet future needs Meet known liability or contingency
Nature Appropriation of profit Charge against profit
Disclosure Shown under Reserves & Surplus Shown separately under liabilities
Profit Distribution Can be distributed as dividend Cannot be used for dividend distribution
✅ This is a frequently asked distinction in MP Board exams. Memorize all 4 points.

📚 Long Answer Questions (5-6 Marks Each)

Q7. X, Y and Z are partners sharing profits in 3:2:1 ratio. Y retires and his share is taken over by X and Z in 3:2 ratio. Pass necessary journal entries for treatment of goodwill if Y’s share of goodwill is valued at ₹60,000. (5 marks)

✅ Solution:

Step 1: Calculate Gaining Ratio
X’s gain = 3/5 × 2/6 = 6/30
Z’s gain = 2/5 × 2/6 = 4/30
Gaining Ratio = 6:4 = 3:2

Step 2: Journal Entry:

X’s Capital A/c Dr. ₹36,000
Z’s Capital A/c Dr. ₹24,000
To Y’s Capital A/c   ₹60,000
(Being Y’s share of goodwill adjusted in gaining ratio)

Working Note: X’s contribution = ₹60,000 × 3/5 = ₹36,000; Z’s contribution = ₹60,000 × 2/5 = ₹24,000

Q8. From the following Balance Sheet of ABC Ltd., prepare Cash Flow Statement for the year ended 31st March 2024: (6 marks)

Particulars: Share Capital ₹5,00,000; Reserves ₹1,20,000; Long-term Borrowings ₹1,50,000; Trade Payables ₹80,000; Fixed Assets ₹4,00,000; Inventory ₹2,00,000; Trade Receivables ₹1,50,000; Cash & Bank ₹1,00,000.

Additional Info: Depreciation charged ₹40,000. Dividend paid ₹30,000.

✅ Cash Flow from Operating Activities:
Net Profit before Tax: (Reserves increase + Dividend) = ₹30,000 + ₹30,000 = ₹60,000
Add: Depreciation ₹40,000
Operating Profit before Working Capital Changes: ₹1,00,000
Less: Increase in Inventory (₹2,00,000)
Less: Increase in Trade Receivables (₹1,50,000)
Add: Increase in Trade Payables ₹80,000
Cash from Operations: (₹1,70,000)

Cash Flow from Investing Activities:
Purchase of Fixed Assets: (₹4,00,000)

Cash Flow from Financing Activities:
Proceeds from Share Capital: ₹5,00,000
Proceeds from Long-term Borrowings: ₹1,50,000
Dividend Paid: (₹30,000)
Net Cash from Financing: ₹6,20,000

Net Increase in Cash: ₹50,000
Opening Cash: ₹50,000
Closing Cash: ₹1,00,000

💡 Preparation Tips for 2027 Exam

⭐ Key Takeaways from 2024 Paper

  • Partnership accounts carry the highest weightage (35 marks) — practice admission, retirement, and death problems thoroughly.
  • Journal entries for goodwill treatment and revaluation are almost guaranteed to appear every year.
  • Cash Flow Statement is the most common 6-mark numerical question — master the indirect method format.
  • Ratio Analysis (Gross Profit Ratio, Current Ratio, Liquid Ratio) frequently appears as 3-4 mark questions.
  • Share Capital & Debentures topics from the Companies chapter are asked as journal entry questions.
  • Practice full balance sheet preparation in Schedule III format — at least 5-6 times before the exam.
  • Time management: Complete numerical questions first (they carry more marks), then theory questions.

Practice this solved paper alongside your textbook and refer to the marking scheme to understand how examiners award marks. Focus on presentation — neat format with proper headings and working notes fetches extra marks in MP Board Accountancy exams. Good luck with your 2027 preparation!

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