ISC 2025 Accounts Improvement Examination Question Paper for Class 12

About this paper

This is the ISC Class 12 Accounts paper from the 2025 Improvement Examination, code 1225-858-IE. It carries 80 marks, has 18 questions, and runs for three hours with fifteen minutes extra for reading. Section A, of 60 marks, is compulsory, with an internal choice in five questions. It covers calls-in-arrears, goodwill, a firm with no partnership deed, debentures, retirement, admission, issue of shares and appropriation. Candidates then answer every question in either Section B, on cash equivalents, a common-size statement, ratios and a cash flow statement of Venus Ltd., or Section C, on DBMS, SQL and a spreadsheet of sales by four salesmen of Cosmic Bricks. Each of those sections has an internal choice in two questions. This copy has the questions only.

Exam

ISC Class 12

Subject

Accounts

Year

2025

Paper code

1225-858-IE

Maximum marks

80

Time allowed

3 hours + 15 min reading

Questions

18

Pages

16

Answers included

No, questions only

Paper pattern

• Section A

  60 marks

  Questions 1–10, all compulsory; internal choice in five questions

• Section B or Section C

  20 marks

  Attempt all four questions from one section; internal choice in two questions in each. Section B (Questions 11–14) is cash flow, common-size statements and ratios. Section C (Questions 15–18) is spreadsheets, DBMS and SQL

Topics covered

• Interest on calls-in-arrears
• Goodwill
• Partnership without a deed
• Admission and retirement of a partner
• Issue and redemption of debentures
• Issue of shares
• Company balance sheet
• Dissolution of partnership
• Cash flow statement
• Common-size statement
• Accounting ratios
• Spreadsheets and DBMS

Questions from this paper

1. How is the Interest on Calls-in-Arrears Account closed at the end of the year?
2. Mini and Vini form a partnership without a partnership deed. Which provisions of the Indian Partnership Act, 1932, apply to interest on a partner's loan, drawings and the sharing of profits?
3. On dissolution, Ronald settled creditors of ₹55,000 at ₹51,000. The creditors had already been transferred to the Realisation Account at book value. Pass the journal entry.
4. Shiv, Ravi and Mahesh share profits in the ratio 1:2:3. Mahesh dies, and his share of profit to the date of death, on a time basis, is ₹30,000. The continuing partners will share in the ratio 1:3. Pass the journal entry for his share of profit.
5. An investment qualifies as a cash equivalent only when its maturity, from the date of acquisition, does not exceed what period?
6. What is the use of the Fill Handle in a spreadsheet?