Case Based Questions in Accountancy Class 12
Case Based Questions in Accountancy Class 12 are designed to test your understanding of accounting concepts in real-world scenarios. They typically present a situation or a business case, and you're asked to analyze it, apply accounting principles, and make decisions based on the data provided. These questions often require a deeper level of thinking and problem-solving skills.
Common Topics for case-Based Questions:
Here are some common topics you might prepare for case study questions:
- Partnership accounts: Dealing with the accounting aspects of partnerships, such as admission, retirement, or dissolution of partners.
- Issue of shares and debentures: Recording and accounting for the issue of shares or debentures in a company.
- Ratio analysis: Analyzing financial ratios to assess the performance and financial health of a business.
- Comparative Statements: Filling the missing information.
- Cash Flow Statement: Analysis of different activities resulting in cash flows - inflows or outflows.
Case-Based Questions from CBSE Resources
Following are a few questions taken from CBSE resources for Case Based Questions:
Question 1: (Fundamentals of Partnership Accounting)
Read the following hypothetical text and answer the given questions:
Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹ 1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹.2,000 per half year to Mahesh. Such a promising performance for first year was encouraging, therefore, they decided to expand the area of operations. For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of ₹ 2,500. Sundaram was asked to introduce ₹1,30,000 for capital and ₹70,000 for premium for goodwill. Besides this Sundaram was required to provide Rs.1,00,000 as loan for two years. Sundaram readily accepted the offer. The terms of the offer were duly executed, and he was admitted as a partner.
Questions:
Q1 Remuneration will be transferred to .............. of Amit and Mahesh at the end of the accounting period.
(a) Capital account.
(b) Loan account.
(c) *Current account.
(d) None of the above.
Q2 Upon the admission of Sundaram the sacrifice for providing his share of profits would be done:
(a) by Amit only.
(b) by Mahesh only.
(c) by Amit and Mahesh equally.
(d) *by Amit and Mahesh in the ratio of 3:2.
Q3 Sundaram will be entitled to a remuneration of ...............at the end of the year. *(₹15,000)
Q4 While taking up the accounting procedure for this reconstitution the accountant of the firm Mr. Suraj Marwaha faced a difficulty. Solve it be answering the following:
For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at the rate of .............. *(6% p.a.)
Case Based Questions in Accountancy
Question 2: (Admission of Partner)
Sterling enterprises is a partnership business with Ryan, Williams and Sania as partners engaged in production and sales of electrical items and equipment. Their capital contributions were ₹50,00,000, ₹50,00,000 and ₹80,00,000 respectively with the profit the sharing ratio of 5:5:8. As they are now looking forward to expanding their business, it was decided that they would bring in sufficient cash to
double their respective capitals. This was duly followed by Ryan and Williams but due to unavoidable reasons Sania could not do so and ultimately it was agreed that to bridge the shortfall in the required capital a new partner should be admitted who would bring in the amount that Sania could not bring and that the new partner would get share of profits equal to half of Sania’s share which would be sacrificed by Sania only. Consequent to this agreement Ejaz was admitted and he brought in the required capital and ₹30,00,000 as premium for goodwill.
Based on the above information you are required to answer the following questions.
Q1 What will be the new profit-sharing ratio of Ryan, Williams, Sania and Ejaz?
(a) 1:1:1:1
(b) 5:5:8:8
*(c) 5:5:4:4
(d) None of the above
Q2 What is the amount of capital brought in by the new partner Ejaz?
(a) ₹50,00,000
*(b) ₹80,00,000
(c) ₹40,00,000
(d) ₹30,00,000
Q3 What is the value of the goodwill of the firm?
*(a) ₹1,35,00,000
(b) ₹30,00,000
(c) ₹1,50,00,000
(d) Cannot be determined from the given data.
Q4 What will be correct journal entry for distribution of Premium for Goodwill brought in by Ejaz?
(a) Ejaz Capital A/c ……………...Dr. ₹30,00,000
To Sania’s Capital A/c ₹30,00,000
*(b) Premium for Goodwill A/c….......…Dr. ₹30,00,000
To Sania’s Capital A/c ₹30,00,000
(c) Premium for Goodwill A/c…........…Dr. ₹30,00,000
To Reyan’s Capital A/c ₹8,33,333
To William’s Capital A/c ₹8,33,333
To Ejaz’s Capital A/c ₹13,33,333
(d) Premium for Goodwill A/c…......…Dr. ₹30,00,000
To Reyan’s Capital A/c ₹10,00,000
To William’s Capital A/c ₹10,00,000
To Ejaz’s Capital A/c ₹10,00,000
Case Based Questions in Accountancy
Question 3: (Accounting for Share Capital)
Nidiya limited was incorporated on 1stApril 2017 with registered office in Mumbai. The capital clause of memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹10 each and 1,00,000 preference shares of ₹50 each. Since some large investments were required for building and machinery the company in consultation with vendors, Ms. VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as ₹3 on application, ₹2 on allotment, ₹3 on first call and ₹2 on second call. Till date second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of them 100 shares were reissued at ₹12 per share.
Based on above information you are required to answer the following questions:
Q1 Shares issue to vendors of building and machinery, Ms. VPS Enterprises, would be classified as:
(a) Preferential Allotment
(b) Employee Stock Option Plan
(c) *Issue for Consideration other than cash
(d) Right Issue of Shares
Q2 How many equity shares of the company have been subscribed?
(a) 3,00,000
(b) 2,99,500
(c) *2,99,800
(d) None of these
Q3 What is the amount of security premium reflected in the balance sheet at the end of the year?
(a) ₹200
(b) ₹600
(c) *₹400
(d) ₹ 1,000
Q4 What amount of share forfeiture would be reflected in the balance sheet?
(a) *₹600
(b) ₹900
(c) ₹200
(d) ₹ 300
Case Based Questions in Accountancy
Question 4: (Cash Flow Statement)
Read the following hypothetical text and answer the given questions on the basis of the same:
Krishika an alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹31,25,000. This profit was arrived after taking into consideration the following items: -
1. Gain on sale of fixed tangible assets - ₹12,50,000
2. Goodwill written off - ₹7,80,000
3. Transfer to General Reserve - ₹8,75,000
4. Provision for taxation - ₹4,37,500
Additional Information: -
Particulars               31.03.2020 (in ₹)           31.03.2019 (in ₹)
Prepaid Expenses           7,50,000                    5,00,000
Inventory                 10,50,000                    8,20,000
Trade Payables             4,50,000                    3,50,000
Trade Receivables          6,20,000                     5,90,000
Questions:
Q1 Net Profit before tax will be ₹………….
(a)22,50,000 (b) 35,62,500 (c) 39,67,500 *(d) 44,37,500
Q2 Operating profit before working capital changes will be ₹…………                                                                 (a) 52,17,500 (b) 64,67,500 *(c) 39,67,500 (d) 39,69,500
Q3 Cash from operating activities before tax will be ₹………..
*(a) 35,57,500 (b) 40,67,500 (c) 37,87,500 (d) 35,67,300
Q4 Cash flow from Operating Activities will be ₹…………
(a) 39,95,000 *(b) 31,20,000 (c) 40,67,500 (d) 31,00,000
MCQs on Partnership Accounting Class 12