ISC 2026 Accounts Improvement Examination Question Paper for Class 12

About this paper

This is the ISC Class 12 Accounts paper from the 2026 Improvement Examination, code 1226-858-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. The questions cover revaluation on admission, interest on calls-in-advance, settlement of a retiring partner, debentures, dissolution, issue of shares for a purchase, and partnership appropriation. Candidates then answer every question in either Section B, on cash flow, a common-size balance sheet and ratios, or Section C, on SQL, Excel and a regional sales sheet for Bright Televisions Ltd. Each alternative section has an internal choice in two questions. This copy has the questions only.

Exam

ISC Class 12

Subject

Accounts

Year

2026

Paper code

1226-858-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 ratios, a common-size balance sheet and cash flow. Section C (Questions 15–18) is spreadsheets, DBMS and SQL

Topics covered

• Admission and retirement of a partner
• Interest on drawings
• Interest on calls-in-advance
• Goodwill
• Issue and redemption of debentures
• Issue of shares
• Dissolution of partnership
• Partnership appropriation
• Company balance sheet
• Accounting ratios
• Common-size balance sheet
• Cash flow statement

Questions from this paper

1. Aarti and Kriti share profits in the ratio 2:1. On Leena's admission, equipment shown at ₹40,000 is found to be undervalued by 20%. At what value is it shown in the reconstituted balance sheet?
2. Aashi holds 3,600 shares and pays the first and final call of ₹5 per share on 1 November 2024, although it is due on 1 March 2025. Calculate interest on calls-in-advance as per Table F of the Companies Act, 2013.
3. Rina withdrew ₹3,300 at the end of each quarter in the year ended 31 March 2025. Calculate interest on drawings at 8% per annum.
4. On dissolution, Rohit paid realisation expenses of ₹5,000 which were to be borne by Ali. How is the transaction recorded?
5. On 1 April 2024, JP Ltd., an unlisted construction company, had 25,000, 6% debentures of ₹100 each, to be redeemed on 31 December 2024 at a premium of 10%. Calculate the amount to be invested in Debenture Redemption Investment.
6. Why is a DBMS better than a file system? Give two reasons.