ISC Accounts Specimen Paper 2026 Class 12: CISCE Accounts Sample Paper, Download PDF

Particulars

Details

Conducting Body

Council for the Indian School Certificate Examinations (CISCE)

Exam Name

ISC Class 12 Accounts Board Exam 2026

Specimen Paper

ISC Accounts Specimen Paper 2026 Class 12

Exam Date

20 February 2026

Class

Class 12 (ISC)

Mode of Exam

Offline (Pen and Paper)

Official website

cisce.org

Question Number

Questions

Marks

SECTION A – 60 MARKS

1

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

(i) Anil and Sunil are partners in a firm. On 1st April 2024, their capital balances show as ₹3,00,000 and ₹2,00,000 respectively. On the same date, firm’s goodwill valued by Capitalisation of average profit method is determined at ₹3,50,000. Capitalised value of average profits and average profits are ₹8,50,000 and ₹1,70,000 respectively. What will be the normal commercial yield on capital invested in such business?

(a) 30% 

(b) 10% 

(c) 20% 

(d) 15%

(ii) Akhil, Viren and Sarla are partners in a firm who share profits in 4:3:3 ratio. On the date of Sarla’s retirement from the firm, the books show the Workmen Compensation Reserve of ₹ 12,000.

Akhil and Viren decide to share profit in equal ratio after Sarla’s retirement. Choose the correct journal for the treatment of Workmen Compensation Reserve if the continuing partners decide to show Workmen Compensation Reserve in the reconstituted Balance Sheet. 

(a) Debit Workmen Compensation Reserve A/c ₹ 12,000; Credit Akhil’s Capital A/c ₹4,800; Credit Viren’s Capital A/c ₹ 3,600 and Sarla’s Capital A/c ₹ 3,600 

(b) Debit Workmen Compensation Reserve A/c ₹ 3,600 and Credit Sarla’s Capital A/c ₹ 3,600. 

(c) Debit Sarla’s Capital A/c ₹ 3,600; Credit Akhil’s Capital A/c ₹ 1,200 and Credit Viren’s Capital A/c ₹ 2,400. 

(d) Debit Akhil’s Capital A/c ₹ 1,200; Debit Viren’s Capital A/c ₹ 2,400 and Credit Sarla’s Capital A/c ₹ 3,600.

(iii) On 1st April 2023, Anand Limited issued 10%, 50,000 Debentures of ₹ 100 each as collateral security to ABC Bank against a loan raised of ₹ 80,00,000. It also issued 12%, 40,000 Debentures of ₹ 100 each on 1st October, 2023 in the stock market to invest money in a new line of product. 

How much interest on Debentures become payable by the company on 31st March 2024? 

(a) ₹ 7,40,000 

(b) ₹ 2,40,000 

(c) ₹ 5,00,000 

(d) ₹ 4,80,000

(iv) Choose the correct sequence of various types of guarantees of profit used while preparing Profit and Loss Appropriation Account by a partnership firm. 

(P) Guarantee given by the firm to Partners 

(Q) Guarantee given by a Partner to the firm 

(R) Guarantee given by a Partner to another Partner

(a) P, Q, R 

(b) Q, P, R 

(c) R, P, Q 

(d) Q, R, P

(v) On dissolution of a firm, one of the partners, Abhi demands that his loan of ₹1,50,000 be paid before payment of capitals of the partners, whereas other partners, Bobby and Cathy demand that capitals should be paid before the payment of Abhi’s loan. State the correct order of payment. Give a reason for your answer.

(vi) Rahul and Nikhil are partners in a firm. They admit Tanvi for 1/5th share. On the date of her admission, the firm’s book shows the following balances: Rahul’s Capital: ₹ 2,80,000 Nikhil’s Capital: ₹ 2,20,000 

Tanvi contributes 20% of the adjusted capital of Rahul and Nikhil. She also contributes ₹20,000 as half of her share of goodwill. 

Pass the journal entry to record the capital contribution made by Tanvi. 

(vii) Priya was a partner in a firm. On the date its dissolution, her loan was appearing on the liability side of the Balance Sheet at ₹25,000. Priya accepted an unrecorded asset of ₹17,500 and the balance was paid to her in cash. 

Give the Journal entry for the above transaction. 

(viii) Enumerate two methods of redemption of debentures. 

(ix) Manilal Ltd.is a manufacturing company. Its operating cycle is 15 months. On 31st March, 2025, its trade receivable of ₹ 70,000 includes ₹ 20,000 which is due to be collected on 13th April, 2026 and the remaining after 30th June, 2026. You are required to calculate current and non-current assets of the company as at 31st March, 2025. 

(x) Assertion: Forfeited shares can be reissued at a discount. Reason: The amount received by a company on forfeited shares can be used to cover the discount on the reissues of forfeited shares. 

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 true and Reason is false. 

(d) Both Assertion and Reason are false. 

2

Amit, Karan and Rakhi were partners in a firm sharing profits and losses in the ratio of 2:2:1. Amit died on 30th June 2024 while the firm closed its books on 31st March. According to their partnership deed, Amit’s representative would be entitled to get a share in the interim profits of the firm calculated on the basis of turnover. Turnover and profit for the year 2023-24 were ₹3,00,000 and ₹90,000 respectively and turnover in the year 2024-25 till the date of his death amounted to ₹60,000.

You are required to: 

(i) Calculate Amit’s share of interim profit.

(ii) Pass the necessary Journal entry showing Amit’s share of interim profit.

OR

Pratik, Krish and Susan are partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31 st March, 2024, Krish retires and 1/3 of his share is taken by Pratik and the balance by Susan. 

The extract of the Balance Sheet as at 31.03.2024 is as follows: 

Balance Sheet (Extract) of Pratik, Krish and Susan

Other information:  

(a) Bad debts amounted to ₹3,000. 

(b) Remaining debtors are all good. 

(c) Market value of the investments is ₹40,000. 

(d) Krish was given investments in full settlement. 

You are required to pass the journal entries on the date of Krish’s retirement.

3

On 1st April, 2024, Zeba Ltd. purchased a running business having a net worth of ₹ 2,00,000 from Ajay Ltd. for a purchase consideration of ₹ 2,10,000. The payment was made as follows: 

(a) By issuing 9,000, 10% Debentures of ₹ 10 each at a premium of 20%. 

(b) Balance by accepting a Bills of Exchange payable after 3 months.

You are required to pass journal entries in the books of Zeba Ltd. (Ignore interest on Debentures).

OR

On 1st April, 2024, Zubin Ltd. issued 3,000, 8% Debentures of ₹ 100 each at a discount of 5% to be redeemed after two years at a premium of 6%. On 31st March, 2025, Zubin Ltd. had the following balances in its books before adjustments of capital losses: Securities Premium ₹ 23,000 Statement of Profit/Loss ₹ 18,000 General Reserve ₹ 20,000 The company writes off all its capital losses in the same year.

You are required to prepare the following for the year 2024-2025:

(i) Loss on Issue of Debentures A/c

(ii) Securities Premium A/c 

4

APL Ltd., an unlisted construction company has 50,000, 10% Debentures of ₹ 100 each due for redemption at par on 31st March, 2024. The Debenture Redemption Investment was purchased on 30th April, 2023 and was sold on the date of redemption at 104% less 0.7% commission. APL Ltd. had sufficient balance in its Debenture Redemption Reserve A/c as per the provisions of the Companies’ Act, 2013.

You are required to prepare the following Ledger Accounts for the year 2023-2024: 

(i) Debenture Redemption Reserve A/c

(ii) Debenture Redemption Investment A/c

5

From the following information, calculate Goodwill by Capitalisation of Super profit method for a firm run by Akshay and Baldev:

Other information: 

a) Normal rate of return is 10% p.a. 

b) Trading profits for the preceding four years are as follows: • 2021-2022 - ₹ 40,000

• 2022-2023 - ₹ 45000 

• 2023-2024 - ₹ 50,000 (including loss by theft 5,000) 

• 2024-2025 - ₹ 60000 (excluding depreciation on machinery ₹ 6,000)

6

On 31st March 2025, Rishiraj Ltd., an unlisted construction company, showed the following balances:

You are required to prepare an extract of Balance Sheet as at 31st March, 2025, showing the Equity and Liabilities. (Ignore Notes to Accounts) 

7

Anu and Binu were partners sharing profits and losses in the ratio of 4:1. Their Balance sheet as at 31 st March, 2025 was as follows:

On 1st April 2025, Tinu is admitted as a new partner on the following terms: 

(a) New profit-sharing ratio of the partners to be 2:1:1. 

(b) Tinu shall bring in ₹16,000 as his capital and the required amount of Goodwill in cash. 

(c) Bills payable was overvalued by ₹2,000. 

(d) The value of Goodwill of the firm to be calculated on the basis of Tinu’s share in profit and the capital contributed by him. 

(e) Provision for bad and doubtful debts ₹1,000 to be created out of General Reserve. 

Pass the journal entries for treatment of Goodwill and prepare Capital accounts of all the partners. 

OR

Tony and Sony are partners in a firm sharing profits and losses in the ratio of 4:3. On 1st April, 2025, they admit Ronny for 1/3rd share in the profits.

Other information: (a) Ronny brought in Land and Building worth ₹5,00,000 and Furniture worth ₹50,000 but was unable to contribute any amount for his share of Goodwill. (b) At the time of Ronny’s admission, the firm showed the following balances:

(c) Revaluation loss amounted to ₹7,000. 

(d) Goodwill of the firm valued at ₹21,000.

You are required to: 

i) Pass journal entries for the above transactions on the date of Ronny’s admission. 

ii) Pass journal entries regarding loan taken from Sony for the year 2024-25. (Interest on loan is still due to be paid.) 

ISC Accounts Specimen Paper 2026 Class 12