SUBJECT: ACCOUNTANCY

CLASS XII
MULTIPLE CHOICE QUESTIONS ( TERM I & II)
TERM I
Q1 When is the Partnership Act enforced?
(A) when there is no partnership deed
(B) where there is a partnership deed but there are differences of opinion between the
partners.
(C) when capital contribution by the partners varies
(D)When the partner’s salary and interest on capital are not incorporated in the
partnership deed.

Q2. Net profit of a firm is Rs.49,500. Manager is entitled to a commission of 10% on

Profits before charging his commission. Manager’s Commission will be:
(A) . ₹4,950 (B) . ₹4,500
( C) . ₹5,500 (D) ₹495

Q3. On 1st June ,2018 a partner introduced in the firm additional capital ₹50,000. In the
absence of partnership deed, on 31st March, 2019 he will receive interest on capital.
(A) ₹3,000 (B) Zero
(C ) ₹2,500 (D) ₹1,800
Q4. A and B are partners. B draws a fixed amount at the end of every month. Interest on
drawings is charged @15% p.a. At the end of the year interest on B’s drawings
amounts to ₹8,250. Drawings of B were :
(A) ₹12,000 p.m.
(B) ₹10,000 p.m.
(C) ₹9,000 p.m.
(D) ₹8,000 p.m.

Q5. When Goodwill is not purchased goodwill account can:

(A) Never be raised in the books
(B) Be raised in the books
(C ) Be partially raised in the books
(D ) Be raised as per the agreement of the partners.

Q6. A and B are partners sharing profits in the ratio of 2:3. Their Balance Sheet shows
Machinery ₹2,00,000; stock at Rs.80,000 and Debtors at ₹1,60,000. C is admitted
and new profit sharing ratio is agreed at 6:9:5. Machinery is revalued at . ₹1,40,000
and a provision is made for doubtful debts @5%. A’s share in loss on revaluation
amount toRs.20,000. Revalued value of Stock will be:
(A) . ₹62,000 (B) . ₹1,00,000
(C ) ₹60,000 (D) ₹98,000

Q7. B and N are partners in a firm sharing profits in the ratio of 3:2. They admit S as a
 partner for ¼ th share in the profits . S acquires his share form B and N in the ratio of
2:1. The new profit- sharing ratio will be:
(A) 2:1:4 (B) 19:26:15
( C) 3:2:4 (D ) 26:19:15

Q8 A, B, C, D are in partnership sharing profits and losses in the ratio of 9:6:5:5. E joins
the partnership for 20% share. A,B,C and D would in future share profit among
themselves as 3/10:4/10 :2/10:1/10. Calculate new profit sharing ratio .
(A)3:4:2:1:5 (B) 9:6:5:5:5
(C ) 6:8:4:2:5 (D) 8:6:4:2:5

Q9. A and B are partners sharing profits and losses as 2:1.C and D are admitted and profit
Sharing ratio becomes 3:2:4:1. Goodwill is valued at . ₹90,000. C and D bring
required goodwill in Cash. Credit will be given to:
(A) A ₹.30,000; B ₹15,000 (B) A ₹66,000 ; B . ₹24,000
(C) A ₹33,000 ; B ₹12,000 (D) A ₹27,000 ; B . ₹18,000

Q10. A and B are partners sharing profit or loss in the ratio of 4:1. A surrenders 1/6 from
his share and B surrenders 1/5 from his share in favour of C, a new partner. What will
be the C’s share?
(A) 2/11 (B) 1/5 (C) 11/30 (D) 1/30
Q11. The following statements apply to equity/preference shareholders. Which one of
them applies only to preference shareholders?
(A) Shareholders risk the loss of investment
(B) Shareholders bear the risk of no dividends in the event of losses
(C) Shareholders usually have the right to vote
(D) Dividends are usually given at a set amount in every’ financial year.
Q12. Which of the following statements is true?

(A) Authorised Capital = Issued Capital

(B) Authorised Capital > Issued Capital
(C) Paid up Capital > Issued Capital
(D) None of the above
Q13. Following amounts were payable on issue of shares by a Company : ₹3 on application,
₹3 on allotment. ₹2 on lirst call and ₹2 on final call. X holding 500 shares paid only
application and allotment money whereas Y holding 400 shares did not pay final call.
Amount of calls in arrear will be :
(A) ₹3,800

(B) ₹2,800
 (C) ₹1,800

(D) ₹6,200

Q14. The subscribed capital of a company is ₹80,00,000 and the nominal value of the share
is ₹100 each. There were no calls in arrear till the final call was made. The final call made
was paid on, ₹77,500 shares only. The balance in the calls in arrear amounted to ₹62,500.
Calculate the final call on share.

(A) ₹7

(B) ₹20

(C) ₹22

(D) ₹25

Q15. A Company invited applications for 1,00,000 shares and it received applications for
1,50,000 shares. Applications for 30,000 shares were rejected and the remaining were allotted
shares on prorata basis. How many shares an applicant for 3,000 shares will be allotted :

(A) 2,500 Shares

(B) 3,600 Shares

(C) 4,500 Shares

(D) 2,000 Shares

Q16. E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis.
The amount payable on application was ₹2. F applied for 420 shares. The number of shares
allotted and the amount carried forward for adjustment against allotment money due from F
will be :

(A) 60 shares; ₹120

(B) 340 shares; ₹160

(C) 320 shares, ₹200

(D) 300 shares; ₹240

Q17. P Ltd. forfeited 150 shares of ₹10 each, issued at a premium of ₹2, for non-payment of
the final call of ₹3. Out of these, 100 shares were re-issued at ₹11 per share. How much
amount would be transferred to capital reserve?

(A) ₹700

(B) ₹500

(C) ₹1,200

(D) ₹300

Q.18 Share Capital of a Company consists of 5,00,000 Shares of ₹10 each, ₹8 called up. All
the shareholders have duly paid the called up amount. Share capital will be shown as :
(A) Subscribed and Fully Paid
(B) Subscribed but not fully paid
(C) Any of the above
(D) None of the above

Q 19……………… appear in a Company’s Balance Sheet under the Sub-head Short-term

Provision
(A) Interest Accrued but not due on Borrowings
(B) Provision for Tax
(C) Unpaid Dividend
(D) Calls in Advance

Q20 A Company’s Current Ratio is 2.4 : 1 and Working Capital is ₹5,60,000. If its Liquid
Ratio is 1.5, what will be the value of Inventory?
(A) ₹6,00,000
(B) ₹2,00,000
(C) ₹3,60,000
(D) ₹6,40,000

Q21 Fixed Assets ₹5,00,000; Current Assets ₹3,00,000; Equity Share Capital ₹4,00,000;
Reserve ₹2,00,000; Long-term Debts ₹40,000. Proprietary Ratio will be :
(A) 75%
(B) 80%
(C) 125%
(D) 133%

Q22. On the basis of following information received from a firm, its Proprietary Ratio will be
: Fixed Assets ?3,30,000; Current Assets ₹1,90,000; Preliminary Expenses ₹30,000; Equity
Share Capital ₹2,44,000; Preference Share Capital ₹1,70,000; Reserve Fund ₹58,000.
(A) 70%
(B) 80%
(C) 85%
(D) 90%

Q23 On the basis of following data, the cost of revenue from operations by a company will
be : Opening Inventory ₹70,000; Closing Inventory ₹80,000; Inventory Turnover Ratio 6
Times.
(A) ₹1,50,000
(B) ₹90,000
C) ₹4,50,000
(D) ₹4,80,000

Q24. Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000;
Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts
₹60,000. Trade Receivables Turnover Ratio will be :
(A) 7.5 times
(B) 9 times
(C) 6 times
(D) 5 times

Q25. Purchases ₹7,20,000; Office Expenses ₹30,000; Selling Expenses ₹90,000; Opening
Inventory ₹1,40,000; Closing Inventory ₹80,000; Revenue from Operations ₹12,00,000.
Calculate operating ratio
(A) 60%
(B) 75%
(C) 70%
(D) 65%

TERM II

Q 26. There are 200 members, each paying an annual subscription of 7 1,000; subscription
received during the year 7 1,95,000; subscriptions received in advance at the beginning of the
year 73,000 and at the end of the year 72,000. – Amount shown in Income & Expenditure
Account will be :

(A) ₹2,00,000

(B) ₹1,96,000

(C) ₹1,94,000

(D) ₹2,01,000
Q27. The opening balance of Prize Fund was ₹32,800. During the year, donations reoeived
towards this fund amounted to ₹15,400; amount spent on prizes was 712,300 and interest
received on prize fund investment was ₹4,000. The closing balance of Prize Fund will be :

(A) ₹56,500

(B) ₹64,500

(C) ₹39,900

(D) ₹31,900

Q28. Salary paid in cash during the current year was ₹80,000; Outstanding salary at the end
was ₹4,000; Salary paid in advance last year pertaining to the current year was ₹3,200; paid
in advance during current year for next year was ₹5,000. The amount debited to Income and
Expenditure Account will be:

(A) ₹85,800

(B) ₹77,800

(C) ₹82,200

D) ₹74,200

Q29. How much amount will be shown in Income and Expenditure Account in the following
case: Payment made for medicines during 2009-10 was ₹2,5 0,000.

31st March 2009 31st March 2010

Unpaid medicines 10,000 12,000

Stock of medicines 8,000 13,000

(A) ₹2,53,000

(B) ₹2,47,000

(C) ₹2,57,000

(D) ₹2,43.000
Q30. X, Y and Z are partners sharing profits in the ratio of 2 : 3 : 5. Goodwill already
appearing in their books at a value of ₹60,000. X retires and Yand decided to share future
profits equally. Journal entry w ill be :

(A) F s Capital A/c To A’s Capital A/c Dr. 12,000 12,000

(B) Fs Capital A/c To/Fs Capital A/c Dr. 60,000 60,000

(C) Xs Capital A/c Dr. 2,400 Fs Capital A/c Dr. 3,600 Z’s Capital A/c To Goodwill A/c Dr.

6,000 12,000

(D) Xs Capital A/c Dr. 12,000 Fs Capital A/c Dr. 18,000 Z’s Capital A/c Dr. 30,000

Q31. A, B and C are partners in a firm sharing profit/loss in the ratio of 2 : 2 : 1. On March
31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018
was ₹6,00,000 and the profits were ₹60,000. The sales for the period from Jan. 1, 2019 to
March 31, 2019 were ₹2,00,000. The share of deceased partner in the current year’s profits
on the basis of sales is :
(A) ₹20,000

(B) ₹8,000

(C) ₹3,000

(D) ₹4,000

Q32. A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Books are
closed on 31st March every year. C dies on 5th November, 2018. Under the partnership deed,
the executors of the deceased partner are entitled to his share of profit to the date of death,
calculated on the basis of last year’s profit. Profit for the year ended 31st March, 2018 was
₹2,40,000. C’s share of profit will be :

(A) ₹28,000

(B) ₹32,000

(C) ₹28,800

(D) ₹48,000

Q33. A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The
capital balance are ₹50,000 for A, ₹70,000 for B, ₹35,000 for C. B decided to retire from the
firm and balance in. reserve on the date was ₹25,000. If goodwill of the firm was valued at
₹30,000 and profit on revaluation was ₹7,500 then, what amount will be payable to B:

(A) ₹70,820

(B) ₹76,000

(C) ₹75,000

(D) ₹95,000

Q34 Ram, Krishna and Ganesh were sharing profits and losses in the ratio of 5 : 3 : 2. Ram
retires and Krishna and Ganesh share the future profits and losses equally. Goodwill of the
firm is valued at ₹1,00,000. Calculate the amount of goodwill to be debited to Krishna’s and
Ganesha’s Capital A/c.

(A) ₹60,000 & ₹40,000

(B) ₹20,000 & ₹30,000

(C) ₹40,000 & ₹60,000

(D) ₹30,000 & ₹20,000

Q35. A, B and C are partners with profit sharing ratio 4 : 3 : 2. B retires and goodwill was
valued ₹1,08,000. If A & C share profits in 5 : 3, find out the goodwill shared by A and C in
favour of B.

(A) ₹22,500 and ₹13,500

(B) ₹16,500and ₹19,500

(C) ₹67,500 and ₹40,500

(D) ₹19,500 and ₹16,500

Q36 A, B and C are sharing profits in the ratio of 3 : 2 : 1. B retires and on the day of B’s
retirement Goodwill is valued at ₹60,000. A and C decided to share future profits in the ratio
of 3 : 2. Journal entry will be :
A) A’s Capital A/c Dr. 18,000 C’s Capital A/c Dr. 42,000 To B’s Capital A/c 60,000
(B) A’s Capital A/c Dr. 6,000 C’s Capital A/c Dr. 14,000 To B’s Capital A/c 20,000
(C) A’s Capital A/c Dr. 36,000 C’s Capital A/c Dr. 24,000 To B’s Capital A/c 60,000
(D) A’s Capital A/c Dr. 12,000 C’s Capital A/c Dr. 8,000 To B’s Capital A/c 20,000
Q37 . Investments valued ₹2,00,000 were not shown in the books. One of the creditors took
over these investments in full satisfaction of his debt of ₹2,20,000. How much amount will
be deducted from creditors?

A) ₹20,000
(B) ₹2,20,000
(C) ₹4,20,000
(D) ₹2,00,000
Q38 On dissolution .,Balance sheet revealed total creditor Rs. 50,000;total capital Rs.
48,000;cash balance Rs. 3000, assets realized at 12%less. Loss on realization :
(A) Rs. 6000 (B) Rs. 11,760 (C) Rs. 11,400 (D) 3,600

Q 39 Discount on issue of Debentures is in the nature of

(A) Revenue loss
(B) Capital loss
(C) Deferred Revenue Expenditure
(D) None of the above

Q 40 Premium received on issue of debentures may be utilised for

(A) For writing off discount allowed on issue of shares
(B) For writing off premium allowed on redemption of debentures
(C) For writing off preliminary expenses
(D) For All of the Above

Q.41 When debentures of ₹1,00,000 are issued as Collateral Security against a loan of
₹1,50,000, the entry for issue of debentures will be :
(A) Credit Debentures ₹1,50,000 and debit bank A/c ₹1,50,000
(B) Debit Debenture Suspense A/c ₹1,00,000 and Credit Bank A/c ₹1,00,000
(C) Debit Debenture Suspense A/c ₹1,00,000 and Credit Debentures A/c ₹1,00,000.
(D) Debit Cash A/c ₹1,50,000 and Credit Bank A/c ₹1,50,000

Q.42. Globe Ltd. issues 20,000, 9% debentures of ₹100 each at a discount of 5%

redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of
Debentures Account’ will be debited?
(A) ₹1,00,000
(B) ₹1,20,000
(C) ₹2,80,000
(D) ₹2,20,000
Q 43 Revenue from Operations ₹4,00,000; Cost of Revenue from Operations 60% of
Revenue from Operations, indirect expenses 15% of Gross Profit; Income Tax 40%.
Calculate net profit after tax
(A) ₹64,000
(B) ₹54,400
(C) ₹81,600
(D) ₹96,000

Q 44 Comparative Balance Sheet:

A) Provides a summarized view of the operations of the firm
(B) Presents the financial position of the firm
(C) Presents the change in various items of balance sheet
(D) None of the above

Q45 Dividend paid by a finance company is classified under which kind of activity while
preparing cash flow statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow

Q46. Which of the following statements are false?

A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis
C) Cash Flow Statement is helpful in estimating future cash flow
a) Both A and B
b) Both A and C
c) Both B and
d) None of the above

Q47. . Interest paid by an investment company will come under which kind of activity while
preparing cash flow statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow

Q48. How will you deal increase in the balance of ‘Securities Premium Reserve’ while
preparing a Cash Flow Statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) Cash Equivalent
Q 49 Fine Garments Ltd. is engaged in the export of readymade garments. The company
purchased a machinery of ₹10,00,000 for the use in packaging of such garments. Cash flow
due to the purchase of machinery will be cash flow from:
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) Cash Equivalent

Q50. If 6% Pref. share capital ₹2,00,000 were redeemed at a premium of 5%, while
preparing Cash Flow Statement its effect on cash flow will be :
(A) Cash used from financing activities ₹2,12,000
(B) Cash received from financing activities ₹2,12,000
(C) Cash used (Payment) from financial activities ₹2,10,000
(D) Cash used (Payment) from financial activities ₹2,00,000