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:

1. Partnership accounts: Dealing with the accounting aspects of partnerships, such as admission, retirement, or dissolution of partners.
2. Issue of shares and debentures: Recording and accounting for the issue of shares or debentures in a company.
3. Ratio analysis: Analyzing financial ratios to assess the performance and financial health of a business.
4. Comparative Statements: Filling the missing information.
5. 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

MCQs on Company Accounts Class 12

MCQs on Analysis of Financial Statements

The post Case Based Questions in Accountancy Class 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

All these questions have been taken from previous year CBSE examination question papers.

Question 1:

The Quick Ratio of a company is 1 : 2. Which of the following transactions will result in an increase in this ratio?

1. Cash received from debtors
2. *Sold goods on credit
3. Purchased goods on credit
4. Purchased goods on cash

Question 2:

Identify which of the following would result in inflow of cash from operating activities:

1. Payment to creditors
2. Interest received by a non-finance company
3. Dividend received by a non-finance company
4. *Amount received from debtors

Question 3:

Analysis of Financial Statements is useful and significant to different users. Which of the following users is particularly interested in firm's ability to meet their claims over a very short period of time?

1. Labour Unions
2. *Trade Payables
3. Top Management
4. Finance Manager

Question 4:

_____ ratios are calculated to determine the ability of the business to service its debt in the long run.

1. Liquidity
2. Turnover
3. *Solvency
4. Profitability

Question 5:

Acquisition of machinery by issue of equity shares will result in:

1. Cash inflow from financing activities
2. Cash outflow from financing activities
3. Cash outflow from investing activities
4. *No flow of cash

MCQs on Analysis of Financial Statements

Question 6:

The transaction "Capital gains tax paid on sale of fixed assets" is classified under which of the following:

1. Operating Activities
2. *Investing Activities
3. Financing Activities
4. Cash and Cash Equivalents

Question 7:

Which of the following is not an objective of Analysis of Financial Statements?

1. To assess the current profitability and operational efficiency of the firm.
2. To ascertain the relative importance of different components of the financial position of the firm.
3. *To consider the impact of price level changes.
4. To identify the reasons for change in the profitability/financial position of the firm.

Question 8:

_______ is also known as Acid-Test Ratio.

1. Current Ratio
2. *Quick Ratio
3. Gross profit Ratio
4. Operating Ratio

Question 9:

Current Ratio of Super Ltd. is 2 : 1. Which of the following transactions will result in decrease in this ratio?

1. Payment of ₹40,000 to creditors
2. Sale of furniture (book value ₹38,000) for ₹16,000 only
3. *Repayment of long-term loan of ₹7,00,000
4. Cash collected from debtors ₹1,18,000

Question 10:

Statement I: Issue of Debentures will result in inflow of cash.

Statement II: Issue of Debentures to the vendors for purchase of machinery will result in outflow of cash.

Choose the correct option from the following:

1. Both statements are correct.
2. Both statements are incorrect.
3. *Statement I is correct, and Statement II is incorrect.
4. Statement I is incorrect, and Statement II is correct.

MCQs on Analysis of Financial Statements

Question 11:

What will be the effect of “Purchase of Marketable Securities for cash” on Cash Flow Statement?

1. *No effect
2. Inflow from financing activities
3. Outflow from investing activities
4. Outflow from financing activities

Question 12:

₹5,00,000 to acquire shares in Neligare Industries and received a dividend of ₹30,000 after acquisition.

1. Cash outflow from financing activities ₹4,70,000
2. Cash inflow from investing activities ₹4,70,000
3. Cash inflow from financing activities ₹4,70,000
4. *Cash outflow from investing activities ₹4,70,000

Question 13:

The Debt-Equity Ratio of a company is 3 : 2. Which of the following transactions will result in increase in this ratio?

1. Purchase of goods on credit
2. *Issue of Debentures
3. Issue of Equity Shares
4. Cash received from Debtors

Question 14:

Statement I: Issue of fully paid bonus shares out of Securities Premium Account will result in inflow of cash.

Statement II: Cash withdrawn from bank will result in inflow of cash.

In the context of the above two statements, choose the correct option:

1. Both statement I and statement II are correct
2. *Both statement I and statement II are incorrect
3. Statement I is correct, and statement II is incorrect
4. Statement I is incorrect, and statement II is correct

Question 15:

Which of the following tools of Analysis of Financial Statements indicate the trend and direction of financial position and operating results?

1. *Comparative statements
2. Common size statements
3. Cash flow analysis
4. Ratio analysis

MCQs on Analysis of Financial Statements

Question 16:

________ indicate the speed at which activities of the business are being performed.

1. Liquidity ratios
2. *Turnover ratios
3. Solvency ratios
4. Profitability ratios

Question 17:

Which of the following transactions will result in cash flows from operating activities?

1. Cash receipts from sale of investments ₹60,000
2. *Cash receipts from sale of goods ₹94,000
3. Dividend received ₹31,000
4. Payment of cash for purchase of fixed assets ₹3,00,000

Question 18:

Dividend paid by a Finance Company is classified under which of the following:

1. Operating Activities
2. Investing Activities
3. *Financing Activities
4. Cash and Cash Equivalents

Question 19:

The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase of this ratio?

1. Purchase of inventory ₹1,50,000 through cheque
2. *Sold inventory on credit ₹ 50,000
3. Outstanding expenses of ₹ 40,000 paid
4. Machinery purchased for cash ₹50,000

Question 20:

Which of the following transactions will result in cash outflow from operating activities?

1. *Payment to creditors
2. Proceeds from sale of investments
3. Dividend received by a non-finance company
4. Depreciation charged on furniture

MCQs on Analysis of Financial Statements

Question 21:

Which of the following is not a limitation of ‘Analysis of Financial Statements’?

1. It is just a study of the reports of the company.
2. It does not consider price level changes.
3. *It ascertains the relative importance of different components of the financial position of the firm.
4. It may be misleading without the knowledge of the changes in accounting procedures followed by a firm.

Question 22:

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilization of resources are known as:

1. Liquidity ratios
2. *Turnover ratios
3. Solvency ratios
4. Profitability ratios

Question 23:

Sale of patents of ₹50,00,000 will result in:

1. Cash inflow of ₹50,00,000 from financing activities
2. Cash outflow of ₹50,00,000 from financing activities
3. Cash outflow of ₹50,00,000 from investing activities
4. *Cash inflow of ₹50,00,000 from investing activities

Question 24:

Income tax paid is classified under:

1. *Operating activities
2. Investing activities
3. Financing activities
4. Cash and cash equivalents

Class 12 Accountancy MCQs Financial Statements Analysis

Class 12 Accountancy MCQs Comparative Statements

Class 12 Accountancy MCQs Ratio Analysis

Class 12 Accountancy MCQs Cash Flow Statement

MCQs on Company Accounts Class 12

MCQs on Partnership Accounting Class 12

Case Based Questions in Accountancy Class 12

The post MCQs on Analysis of Financial Statements appeared first on Commerceatease - Website for 11th & 12th Commerce.

The following questions are all from the previous year CBSE question papers. Students can have idea of the level and type of questions asked in examination, to prepare well for the coming final exam.

Question 1:

Alfa Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was:

1. ₹32,50,000
2. ₹15,60,000
3. ₹39,00,000
4. *₹26,00,000

Question 2:

Reserve capital is that part of _________ capital which cannot be called except at the time of winding up of the company.

1. Issued
2. Called up
3. *Uncalled
4. Nominal

Question 3:

Xeno Ltd. issued 25,000 equity shares of ₹0 each. The amount was payable as follows: On Application ₹4 per share, On Allotment ₹5 per share, On First and Final call Balance All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment. First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by:

1. ₹15,000
2. ₹24,000
3. *₹13,500
4. ₹18,000

Question 4:

Assertion (A) : Irredeemable debentures are also known as perpetual debentures.

Reason (R) : The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company or on the expiry of a long period.

1. *Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is incorrect, but Reason (R) is correct.
4. Assertion (A) is correct, but Reason (R) is incorrect.

Question 5:

Money received in advance from shareholders before it is actually called up by the directors is:

1. *debited to calls in advance account
2. credited to calls in advance account
3. debited to share capital account
4. credited to share capital account

MCQs on Company Accounts

Question 6:

An offer of securities or invitation to subscribe securities to a select group of persons is termed as:

1. Buy back of shares
2. Employee stock option plan
3. *Private placement of shares
4. Sweat Equity

Question 7:

A share of ₹100 on which ₹80 is received is forfeited for non-payment of final call of ₹20. The minimum price at which this share can be reissued is:

1. ₹120
2. ₹100
3. ₹80
4. *₹20

Question 8:

Shiv Ltd. forfeited 500 shares of ₹10 each on which ₹7 per share was paid. These shares were reissued for ₹9 per share fully paid. Amount transferred to Capital Reserve Account will be:

1. *₹3000
2. ₹5000
3. ₹4500
4. ₹3500

Question 9:

If a share of ₹100 on which ₹70 has been paid is forfeited, then at which minimum price can it be re-issued ?

1. ₹100
2. *₹30
3. ₹70
4. ₹130

Question 10:

If a share of ₹10 issued at a premium of ₹2 per share, on which ₹8 (including premium) has been called and ₹6 (including premium) has been paid by the shareholder, is forfeited, then Share Capital Account will be debited with :

1. ₹10
2. ₹4
3. ₹8
4. *₹6

MCQs on Company Accounts

Question 11:

On 1st April 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹100 each at a discount of 10%. The total amount of interest due on debentures for the year ending 31st March 2023 will be:

1. ₹2,70,000
2. *₹3,00,000
3. ₹27,000
4. ₹30,000

Question 12:

Maharaja Ltd. took over assets of ₹15,00,000 and liabilities of ₹2,00,000 of Dolphin Ltd. for an agreed purchase consideration of ₹12,60,000. It was agreed that the purchase consideration will be paid by issuing 11% Debentures of ₹100 each at 10% discount. The number of debentures issued will be:

1. 13,000
2. 12,600
3. 10,000
4. *14,000

Question 13:

Misha Ltd. issued 6,000, 8% Debentures of ₹100 each at ₹96 per debenture. 8% Debentures Account will be credited by:

1. ₹5,76,000
2. ₹24,000
3. *₹6,00,000
4. ₹60,000

Question 14:

Nominal/Authorized share capital is:

1. that part of the share capital which is issued by the company.
2. the amount of share capital which is actually applied for by the prospective shareholders.
3. *The maximum amount of share capital which a company is authorized to issue.
4. the amount actually paid by the shareholders.

Question 15:

The debentures which do not have a specific charge on the assets of the company are called:

1. Redeemable Debentures
2. *Unsecured Debentures
3. Zero Coupon Rate Debentures
4. Non-Convertible Debentures

MCQs on Company Accounts

Question 16:

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹10 each at ₹110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be:

1. *₹52,80,000
2. ₹55,00,000
3. ₹50,00,000
4. ₹48,00,000

Question 17:

Assertion (A): When the shares are forfeited, share capital account is debited with the amount called up and credited to (i) respective unpaid calls account i.e., calls in arrears and (ii) share forfeiture account with the amount already received on shares.

Reason (R): When the shares are forfeited, all entries relating to the shares forfeited, except those relating to securities premium, already recorded in accounting records must be reversed.

Choose the correct option from the following:

1. *Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is incorrect, but Reason (R) is correct.
4. Assertion (A) is correct, but Reason (R) incorrect.

Question 18:

Lexa Ltd. issued 50,000 equity shares of ₹10 each at a premium of ₹2 per share. The amount was payable as follows:

On application and allotment ₹7 per share (including premium)

On first and final call Balance

The issue was fully subscribed. All the money was duly received except the first and final call on 1,000 equity shares. These shares were forfeited. On forfeiture of these shares Calls in Arrears Account will be:

1. credited by ₹7,000
2. debited by ₹5,000
3. *Credited by ₹5,000
4. debited by ₹7,000

Question 19:

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of which of the following capital?

1. Reserve Capital
2. Nominal Capital
3. Subscribed Capital
4. *Issued Capital

Question 20:

KLB Ltd. forfeited 3,000 shares of 10 each, ₹8 per share called up for non-payment of first call of ₹2 per share. All these shares were reissued at ₹7 per share, ₹8 paid up. The amount transferred to Capital Reserve Account will be:

1. ₹18,000
2. ₹24,000
3. *₹15,000
4. ₹3,000

MCQs on Company Accounts

Question 21:

NUK Ltd. forfeited 1,000 shares of ₹10 each, fully called up for non-payment of final call of ₹2 per share. 800 of these shares were reissued at ₹11 per share fully paid. The amount credited to Capital Reserve Account will be:

1. *₹6,400
2. ₹8,000
3. ₹7,200
4. ₹10,000

Question 22:

The debentures which do not carry a specific rate of interest are called:

1. *Zero Coupon Rate Debentures
2. Specific Coupon Rate Debentures
3. Unsecured Debentures
4. Secured Debentures

Question 23:

Beeta Ltd. offered for subscription 1,00,000 equity shares of ₹ 10 each at a premium of 100% payable entirely on application. Applications were received for 5,00,000 equity shares. The company decided to allot the shares on pro-rata basis to all the applicants. The amount received by the company on application was:

1. *₹ 1,00,00,000
2. ₹ 20,00,000
3. ₹ 1,20,00,000
4. ₹ 80,00,000

Question 24:

The amount of share capital which a company is authorized to issue by its Memorandum of Association is called:

1. Issued capital
2. Subscribed capital
3. Reserve capital
4. *Nominal capital

Question 25:

Sinoy Ltd. issued 20,000 shares of ₹ 10 each at a premium of ₹ 6. The amount was payable as follows:

On Application – ₹ 7 per share (Including Premium ₹ 1 per share)

On Allotment – ₹ 5 per share (Including Premium ₹ 2 per share)

On First and Final call – Balance

The issue was fully subscribed. All the money was duly received except the allotment and first and final call on 1,000 shares. These shares were forfeited. On forfeiture of these shares, the ‘Securities Premium Account’ will be debited by:

1. ₹ 2,000
2. ₹ 3,000
3. *₹ 5,000
4. ₹ 20,000

MCQs on Company Accounts

Question 26:

Money not received from shareholders on allotment or calls is:

1. debited to calls in advance account.
2. credited to calls in advance account.
3. *Debited to calls in arrears account.
4. credited to calls in arrears account.

Question 27:

Those debentures where a charge is created on the assets of the company for the purpose of payment in case of default are known as:

1. *Secured Debentures
2. Registered Debentures
3. Specific Coupon Rate Debentures
4. Redeemable Debentures

Question 28:

Nagar Ltd. issued 6,000, 11% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium. ‘Discount on issue of debentures’ and ‘Premium on redemption of debentures’ were accounted for through ‘Loss on issue of debentures account’. If the amount of ‘Loss on issue of debentures’ was ₹90,000, then the amount of premium on redemption of debentures was:

1. ₹ 60,000
2. ₹ 90,000
3. ₹ 1,20,000
4. *₹ 30,000

Question 29:

On 1st April 2022 Surya Ltd. issued 10,000, 12% Debentures of ₹ 100 each at a premium of 5%. The total amount of interest on debentures for the year ended 31st March 2023 will be:

1. *₹ 1,20,000
2. ₹ 50,000
3. ₹ 1,00,000
4. ₹ 1,26,000

Class 12 Accountancy MCQs Share Capital

Class 12 Accountancy MCQs Debentures

Case Based Questions in Accountancy Class 12

The post MCQs on Company Accounts Class 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

Question 1

Atul, Beena and Sita were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 5. Damini was admitted as a new partner for 1/5th share in the profits which she acquired entirely from Atul. The NPSR after Damini's admission will be:

7 : 7 : 5 : 1

*4 : 7 : 5 : 4

8 : 7 : 5 : 4

7 : 5 : 8 : 4

Question  2

Rushil and Abheer were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Sunil as a new partner for 3/7th share in the profits of firm, which he acquired 2/7th share from Rushil and 1/7th share from Abheer. The new profit-sharing ratio of Rushil, Abheer and Sunil will be:

4 : 3 : 3

2 : 1 : 3

*2 : 2 : 3

4 : 3 : 1

Question 3

Abhay, Boris and Chetan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Boris was guaranteed a profit of ₹95,000. Any deficiency on account of this was to be borne by Abhay and Chetan equally. The firm earned a profit of ₹2,00,000 for the year ended 31st March, 2023. The amount given by Abhay to Boris as guaranteed amount will be:

*₹17,500

₹35,000

₹25,000

₹10,000

Question 4

Aavya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be:

₹ 10,000

₹ 50,000

₹ 45,000

*₹ 15,000

Question 5

Piyush, Rajesh and Avinash were partners in a firm sharing profits and losses equally. Shiva was admitted as a new partner for an equal share. Shiva brought his share of capital and premium for goodwill in cash. The premium for goodwill amount will be divided among:

Old partners in old ratio

New partners in new ratio

New partners in sacrificing ratio

*Old partners in sacrificing ratio

MCQs on Partnership Accounting

Question 6

Alex, Benn and Cole were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Dona as a new partner for 1/5th share in the future profits. Dona agreed to contribute proportionate capital. On the date of admission, capitals of Alex, Benn and Cole after all adjustments were ₹1,20,000; ₹80,000 and ₹1,00,000 respectively. The amount of capital brought in by Dona will be:

*₹75,000

₹60,000

₹65,000

₹70,000

Question 7

Assertion (A) : Each partner is a principal as well as an agent for all the other partners.

Reason (R) : As per the definition of Partnership Act, partnership business may be carried on by all the partners or any of them acting for all.

Pick the correct option:

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Assertion (A) is correct, but Reason (R) is incorrect.

Assertion (A) is incorrect, but Reason (R) is correct.

Question 8

Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2 : 1. On 1st April, 2023, their capital accounts showed balances of ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for interest on capital @ 10% p.a. The firm earned a profit of ₹90,000 during the year. The amount of interest on capital allowed to Abha will be:

₹50,000

₹60,000

*₹30,000

₹1,00,000

Question 9

Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2 : 1. On 1st April, 2023, their capital accounts showed balances of ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for interest on capital @ 10% p.a. The firm earned a profit of ₹90,000 during the year. Babita's share in profit will be:

₹60,000

₹30,000

*Nil

₹1,00,000

Question 10

Mita, Veena and Atul were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Atul retired and his share was taken over by Mita and Veena in the ratio of 1 : 4. The new profit sharing ratio between Mita and Veena after Atul's retirement will be:

3:2

*8:7

7:3

2:3

MCQs on Partnership Accounting

Question 11

Which of the following items cannot be recorded in the capital account of partners if the capital accounts of partners are fixed?

*Drawings

Withdrawal of capital

Introduction of additional capital

Opening balance of capital

Question 12

Ashu and Basu are partners sharing profits and losses in the ratio of 2 : 1. Chetan is admitted as a new partner with 1/4th share in the profits which he acquires equally from Ashu and Basu. The new profit sharing ratio between Ashu, Basu and Chetan will be:

*13 : 5 : 6

13 : 2 : 1

2 : 13 : 5

1 : 1 : 1

Question 13

On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31st March, 2023 will be:

₹18,000

*₹4,500

₹9,000

NIl

Question 14

If a partner withdraws a fixed amount at the end of each quarter, interest on drawings will be charged for _____ months.

9

7.5

6

*4.5

Question 15

Bhim, Arjun and Nakul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they agreed to share profits equally. Due to change in the profit sharing ratio, Arjun's sacrifice or gain will be:

Sacrifice 1/30

*Gain 1/30

Sacrifice 1/15

Gain 1/15

MCQs on Partnership Accounting

Question 16

Neeru and Meetu are partners in a firm with capitals of ₹2,00,000 and ₹1,50,000 respectively. If the firm earned a profit of ₹17,500 for the year ended 31st March, 2023, then interest on capital @ 10% p.a. would be:

Neeru ₹ 15,000; Meetu ₹ 20,000

Neeru ₹ 8,750; Meetu ₹ 8,750

Neeru ₹ 20,000; Meetu ₹15,000

*Neeru ₹10,000; Meetu ₹ 7,500

Question 17

At the time of dissolution of a firm, the total assets were ₹6,00,000 and outside liabilities were ₹2,40,000. If assets realised ₹7,20,000 and realisation expenses of ₹ 8,000 were paid, the profit or loss on realisation will be:

Loss ₹1,20,000

Profit ₹ 1,20,000

Loss ₹ 1,12,000

*Profit ₹ 1,12,000

Question 18

Kishore and Bimal are partners in a firm sharing profits and losses in the ratio of 4 : 3. Nand is admitted as a new partner in the firm for 1/4th share in the profits. Kishore and Bimal decide to share profits and losses equally in the future. The sacrificing ratio of Kishore and Bimal will be:

1 : 1

4 : 3

*11 : 3

3 : 11

Question 19

Raju, Sohan and Tina are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Tina is guaranteed a minimum amount of ₹40,000 as share of profit every year. Any deficiency arising on that account shall be borne by Raju. If profit of the firm for the year ended 31st March, 2023 is ₹1,60,000, Raju will bear a deficiency of:

*₹8,000

₹40,000

₹48,000

₹4,000

Question 20

Assertion (A) : The court does not intervene when dissolution of partnership takes place.

Reason (R) : Dissolution of partnership takes place by mutual agreement between the partners.

Choose the correct option from the following:

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is incorrect, but Reason (R) is correct.

Assertion (A) is correct, but Reason (R) is incorrect.

MCQs on Partnership Accounting

Question 21

Manas and Ranvir are partners in a firm having capital balances of ₹1,20,000 and ₹ 80,000 respectively. Sanju is admitted as a new partner in the firm for 1/5th share in future profits. Sanju brought ₹1,00,000 as his capital. The goodwill of the firm on Sanju's admission will be:

₹5,00,000

*₹2,00,000

₹3,00,000

₹1,00,000

Question 22

Assertion (A) : In a partnership firm, at the time of admission, the new partner brings in an agreed amount of capital either in cash or in kind.

Reason (R) : In a partnership firm, at the time of admission, the new partner acquires the right to share the assets and the profits of the partnership firm. Choose the correct option from the following:

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is incorrect, but Reason (R) is correct.

Assertion (A) is correct, but Reason (R) is incorrect.

Question 23:

Shrikant and Ajay were partners in a firm sharing profits and losses in the ratio of 5 : 3. Shrikant withdrew ₹10,000 in the beginning of each quarter during the year ended 31st March, 2023. Interest on Shrikant’s drawings @ 6% p.a for the year ended 31st March, 2023 will be :

(A) ₹2,400

(B) ₹1,200

*(C) ₹1,500

(D) ₹900

Question 24:

Abha, Manju and Rhea were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. During the year ended 31st March, 2023, Rhea withdrew ₹30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10% p.a. for the year ended 31st March, 2023 will be :

(A) ₹6,000

*(B) ₹4,500

(C) ₹3,000

(D) ₹1,500

Question 25:

Seema and Laksh were partners in a firm sharing profits and losses in the ratio of 2 : 1. Their capitals were ₹2,00,000 and ₹1,80,000 respectively. They admitted Aadi as a new partner on 1st April, 2023 for 1/5th share in future profits. Aadi brought ₹1,50,000 as his share of capital. The goodwill of the firm on Aadi s admission will be :

(A) ₹7,50,000

*(B) ₹2,20,000

(C) ₹3,70,000

(D) ₹1,50,000

MCQs on Partnership Accounting

Question 26:

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹80,000 at 80%, in part settlement of their amount of ₹90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be :

*(A) ₹26,000

(B) ₹64,000

(C) ₹80,000

(D) ₹1,44,000

Question 27:

Sanya, Sarthak and Nitya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. They decided to dissolve the firm on 31st March, 2023. On this date, the firm had debtors amounting to ₹3,00,000 and provision for doubtful debts of ₹30,000. On dissolution, debtors for ₹20,000 proved bad and the remaining debtors realised 90%. Amount realised from the debtors will be :

(A) ₹3,00,000

(B) ₹2,25,000

(C) ₹2,80,000

*(D) ₹2,52,000

Question 28:

Geeta and Hari were partners in a firm sharing profits and losses in the ratio of 3 : 2. Krish was admitted as a new partner for 1/5th share in profits of the firm which he acquired from Geeta and Hari in the ratio of 2 : 3. Krish brought ₹1,00,000 as his share of capital and ₹50,000 as premium for goodwill in cash. The sacrificing ratio of Geeta and Hari will be :

(A) 3 : 2

(B) 1 : 1

*(C) 2 : 3

(D) 13 : 7

MCQs on Partnership Accounting

Question 29:

Manu, Sonu and Rahul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2023, they decided to share profits and losses in the future in the ratio of 3 : 2 : 1. Their Balance Sheet showed Workmen Compensation Reserve of ₹84,000. The claim on account of Workmen Compensation is estimated at ₹75,000. The journal entry to give effect to the above transaction will be :

*(A) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 4,000

To Sonu’s Capital A/c 3,000

To Rahul’s Capital A/c 2,000

(B) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 4,500

To Sonu’s Capital A/c 3,000

To Rahul’sCapital A/c 1,500

(C) Manu’s Capital A/c Dr 500

To Rahul’s Capital A/c 500

(D) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 3,000

To Sonu’s Capital A/c 3,000

To Rahul’s Capital A/c 3,000

Question 30:

Assertion (A) : Partner current accounts under Fixed Capital Method may show a debit or a credit balance.

Reason (R) : In the Fixed Capital , all items like share of profit or loss, interest on capital, drawings, interest on drawings etc. are recorded in the partners capital accounts.

Choose the correct option from the following :

(A) Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

*(C) Assertion (A) is correct, but Reason (R) is not correct.

(D) Both Assertion (A) and Reason (R) are not correct.

MCQs on Partnership Accounting

Question 31:

Read the following hypothetical situation and answer questions No. 1 and 2 on the basis of the given information :

Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Richa, Sheena and Tapti during the year ended 31st March, 2023 amounted to ₹50,000, ₹40,000 and ₹30,000 respectively. The net profit for the year ended 31st March, 2023 was ₹57,000.

(a) Sheena’s interest on drawings will be :

(A) ₹5,000

(B) ₹4,000

(C) ₹3,000

*(D) ₹2,000

(b) Tapti’s share of profit will be :

(A) ₹11,500

(B) ₹34,500

*(C) ₹10,500

(D) ₹23,000

Question 32:

Nicku, Mala and Ritu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nicku died on 30th September, 2023. The deceased partner was entitled to his share of profit up to the date of death which was to be calculated on the basis of previous year profit. ₹80,000. Nicku s share of profit will be :

(A) ₹10,000

*(B) ₹20,000

(C) ₹30,000

(D) ₹40,000

Question 33:

Nikhil, Arun and Mansi were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they decided to share profits and losses in the ratio of 5 : 3 : 2. Due to change in the profit s gain or sacrifice will be :

(A) Gain 1/10

(B) Sacrifice 3/10

*(C) Sacrifice 1/10

(D) Gain 3/10

Question 34:

Hema and Tara were partners in a firm sharing profits and losses in the ratio of 2 : 3. They admitted Ojas as a new partner. Hema surrendered 1/3rd of her share and Tara surrendered ½  of her share in favour of Ojas. The new profit sharing ratio of Hema, Tara and Ojas will be :

*(A) 8 : 9 : 13

(B) 3 : 2 : 5

(C) 2 : 3 : 5

(D) 2 : 3 : 25

Question 35:

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu’s share in 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death would be:

(A) 2 : 1

(B) 1 : 2

*(C) 5 : 4

(D) 4 : 5

MCQs on Partnership Accounting

Question 36:

Renu, Trilok and Mansi were partners in a firm sharing profits and losses in the ratio of 9 : 6 : 5. Hina was admitted as a partner for 1/10th share in the profits which she acquired equally from Renu and Trilok. The new profit sharing ratio after Hina’s admission will be :

(A) 5 : 5 : 2 : 8

(B) 5 : 5 : 8 : 2

(C) 8 : 2 : 5 : 5

*(D) 8 : 5 : 5 : 2

Question 37:

Ashu and Ria were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Nitu for a 3/7th share in the profits of the firm, which she took 2/7th from Ashu and 1/7th from Ria. The new profit sharing ratio between Ashu, Ria and Nitu will be :

(A) 4 : 3 : 3

(B) 2 : 1 : 3

*(C) 2 : 2 : 3

(D) 4 : 3 : 2

Question 38:

Nikhil and Sharat were partners in a firm sharing profits and losses in the ratio of 4 : 3. Nikhil withdrew ₹ 6,000 on the first day of every quarter for the year ended 31st March, 2023. Interest on drawings is to be charged @ 5% p.a. Interest on Nikhil’s drawings will be calculated for :

(A) 6 months

(B) 4.5 months

*(C) 7.5 months

(D) 3 months

Question 39:

Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be :

(A) ₹ 5,000

*(B) ₹ 6,000

(C) ₹ 54,000

(D) Nil

Question 40:

Kamini, Lata and Meera were partners in a firm sharing profits and losses equally. Neel was admitted as a new partner for an equal share in the profits of the firm. Neel brought his share of capital and premium for goodwill in cash. On the date of admission of Neel, goodwill appeared in the books at ₹ 1,20,000. The existing goodwill is to be written off among :

*(A) Old partners in old ratio.

(B) New partners in new ratio.

(C) Sacrificing partners in sacrificing ratio.

(D) Old partners in sacrificing ratio

MCQs on Partnership Accounting

Question 41:

Arjun, Babita and Charlie were partners in a firm sharing profits in the ratio of 2 : 2 : 1. They admitted Dheeraj for 1/5th share in the profits of the firm. He has to contribute proportionate capital to acquire 1/5th share in future profits. On the date of admission, the capitals after all adjustments relating to goodwill and revaluation of assets and liabilities, were : Arjun ₹ 62,000, Babita ₹52,000 and Charlie ₹36,000. The capital brought by Dheeraj will be :

*(A) ₹ 37,500

(B) ₹ 30,000

(C) ₹ 32,500

(D) ₹ 35,000

Question 42:

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : The maximum number of partners in a partnership firm are 50.

Reason (R) : The maximum number of partners are prescribed by the Partnership Act, 1932.

Choose the correct option from the following :

(A) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

*(C) Assertion (A) is correct, but Reason (R) is incorrect.

(D) Assertion (A) is incorrect, but Reason (R) is correct.

Question 43:

Read the following hypothetical situation and answer questions (a) and (b) on the basis of the given information :

Daksh and Ekansh are partners in a firm sharing profits and losses in the ratio of 3 : 1. Their capitals were ₹ 1,60,000 and ₹ 1,00,000 respectively. As per partnership deed, they were entitled to interest on capital @ 10% p.a. The firm earned a profit of ₹ 13,000 for the year ended 31st March, 2023.

(a) Daksh’s interest on capital will be :

(A) ₹ 5,000

*(B) ₹ 8,000

(C) ₹ 16,000

(D) ₹ 10,000

(b) Ekansh’s share of profit/loss will be :

*(A) Nil

(B) ₹ 9,750 (Loss)

(C) ₹ 3,250 (Loss)

(D) ₹ 9,750 (Profit)

MCQs on Partnership Accounting

Question 44:

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Court does not intervene in case of dissolution of partnership.

Reason (R) : Dissolution of partnership takes place by mutual agreement among partners.

Choose the correct option from the following:

(A) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

*(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(C) Assertion (A) is correct, but Reason (R) is incorrect.

(D) Assertion (A) is incorrect, but Reason (R) is correct.

Question 45:

Deepa, Elton and Frank were partners in a firm sharing profits in the ratio of 2 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio as 1 : 2 : 2. There existed a Debit Balance of Profit and Loss Account of ₹50,000 in the books of the firm on the date of change in profit sharing ratio. The partners decided to retain the Debit Balance of Profit and Loss Account in the books. The adjustment entry will be :

*(A) Deepa’s Capital A/c Dr. 10,000

To Frank’s Capital A/c 10,000

(B) Deepa’s Capital A/c Dr. 5,000

To Frank’s Capital A/c 5,000

(C) Frank’s Capital A/c Dr. 10,000

To Deepa’s Capital A/c 10,000

(D) Frank’s Capital A/c Dr. 5,000

To Deepa’s Capital A/c 5,000

MCQs on Partnership Accounting

Question 46:

Som, Pam and Ron were partners in a firm sharing profits in the ratio of 7 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio to 1 : 2 : 7. There existed a Credit Balance in the Profit and Loss Account of ₹ 1,00,000 on the date of change in profit sharing ratio in the books of the firm. The partners decided to retain the Credit Balance in Profit and Loss Account in the books. The adjustment entry will be :

(A) Ron’s Capital A/c Dr. 20,000

To Som’s Capital A/c 20,000

*(B) Ron’s Capital A/c Dr. 60,000

To Som’s Capital A/c 60,000

(C) Som’s Capital A/c Dr. 20,000

To Ron’s Capital A/c 20,000

(D) Som’s Capital A/c Dr. 60,000

To Ron’s Capital A/c 60,000

Question 47:

Anu, Bina and Roy were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Roy retired and his share was acquired by Anu. The new profit sharing ratio between Anu and Bina after Roy’s retirement will be :

(A) 3 : 2

(B) 3 : 1

(C) 1 : 1

*(D) 2 : 1

Question 48:

Asha, Yug and Zubin were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Zubin retired. Zubin’s share was acquired equally by Asha and Yug. The new profit sharing ratio between Asha and Yug after Zubin’s retirement was :

(A) 3 : 2

*(B) 5 : 4

(C) 4 : 3

(D) 2 : 1

Class 12 Accountancy MCQs Partnership Basic Concepts

Class 12 Accountancy MCQs Valuation of Goodwill

Class 12 Accountancy MCQs Reconstitution of Partnership Firm

Class 12 Accountancy MCQs Admission of Partner

Class 12 Accountancy MCQs Retirement of Partner

Class 12 Accountancy MCQs Death of Partner

Class 12 Accountancy MCQs Dissolution of Partnership Firm

Case Based Questions in Accountancy Class 12

The post MCQs on Partnership Accounting Class 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

This is an easy compilation of Important Legal Provisions in Accountancy Class 12 that students often find it difficult to learn.

Partnership Accounting

Indian Partnership Act, 1932

Section 4: Definition of Partnership

Section 464 of the Companies Act 2013 -  CG empowered to prescribe maximum number of partners in a firm subject to the maximum 100. Central government has actually prescribed 50.

Accounting Standard 26: Intangible Assets, Goodwill appearing in the balance sheet to be written off at the time of firm's reconstitution. Internally generated goodwill not to be recognized as an asset but adjusted by through partners’ capital accounts.

Section 30: A minor may be admitted for the benefit of partnership if all partners agree.

Section 31: A partner may be admitted either with the consent of existing partners or as per such agreement.

Section 32: A partner may retire from the firm either with the consent or such agreement among partners.

Section 69: Registration of the firm is optional and not compulsory.

Section 35: Unless otherwise agreed by the partners, death of a partner results in dissolution of firm.

Section 37: Option to outgoing partner to receive interest @ 6% p.a. or profits based on Capital Ratio, for the intervening period.

Section 39: Meaning of dissolution of the firm.

Section 48: Settlement of Accounts on Dissolution of Partnership Firm with

(a) Treatment of Losses

(b) Application of Assets

Section 49: Rules relating to Private Debts and Firm’s Debts

Accounting for Share Capital and Debentures

Companies Act, 2013

Section 43: Meaning of Preference Shares and Equity Shares

Section 42: Private Placement of Shares

Table F: Directors' authority to forfeit the shares for non-payment of amount due from shareholders.

Section 68: Rules relating to Buy Back of Shares.

Section 2(30): Meaning of Debenture.

Section 52(2): Utilization of Securities Premium and Writing off Discount or Loss on Issue of debentures.

American Institute of Certified Public Accountants (AICPA) - Nature of financial statements

Guidelines by SEBI - Minimum Subscription

Important Legal Provisions in Accountancy

Analysis of Financial Statements

Section 2 (40): Definition of Financial Statements and preparing Financial Statements as per revised Schedule III to the Companies Act, 2013, but does not apply to (i) Insurance or Banking Company, (ii) Company specified under any other Act.

Schedule III - Part I - Balance Sheet and Part II - Statement of Profit and Loss.

Accounting Standard- 4 (AS-4): Contingencies and Events Occurring after the Balance Sheet Date (Proposed dividend to be shown in the Notes to Accounts).

Accounting Standard- 3 (AS-3): For preparing Cash Flow Statement

Section 133: Accounting Standards Mandatory for True and Fair view in Financial Statements.

Important Legal Provisions Accountancy

Balance Sheet as per Schedule III of Companies Act ,2013

The post Important Legal Provisions in Accountancy appeared first on Commerceatease - Website for 11th & 12th Commerce.

Students often have a doubt whether they have to debit or credit a particular account while passing a journal entry. This process becomes easy when they know the nature of Account. They can understand it well with the following list (As per Modern Classification and Traditional Classification of accounts):

Nature of Accounts from Business Point of View

1. Cash/Bank A/c - Asset, Real
2. Interest on Capital A/c - Nominal
3. Interest on Drawings A/c - Nominal
4. Partner’s Capital/Current A/c - Capital, Personal
5. Profit and Loss Appropriation A/c - Nominal
6. Revaluation A/c - Nominal
7. Profit and Loss Suspense A/c - Nominal
8. Retiring Partner's Loan A/c - Liability, Personal
9. Deceased Partner's Executor Account - Liability, Personal
10. Realisation A/c - Nominal
11. Share Capital A/c - Capital, Personal
12. Share Application A/c - Liability, Personal
13. Share Allotment A/c - Asset, Personal
14. Share First Call A/c - Asset, Personal
15. Calls in Arrears A/c - Asset, Personal
16. Discount/loss on Issue of Debentures A/c - Nominal
17. Securities Premium A/c - Nominal
18. Premium on redemption of debentures A/c - Liability, Personal
19. Debentures A/c - Liability, Personal
20. Interest on Debentures A/c - Nominal
21. Calls in Advance A/c - Liability, Personal
22. Dividend A/c - Nominal
23. Bank A/c - Asset, Real
24. Tax A/c - Nominal
25. Provision for Taxation A/c - Liability, Personal
26. Share Application money pending allotment A/c - Liability, Personal

Nature of Accounts Class 12

Examination Guidance

The post Nature of Accounts Class 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

(Not in CBSE pattern now).

Accountancy Class 12 Viva Questions

C.B.S.E. had prescribed the weightage of marks from two units for Written Exam. of 12 Marks for these purposes but has not issued Class 12 Accountancy Practical Sample Papers.

• Ratio Analysis - 06 Marks
• Cash Flow Statement - 06 Marks

C.B.S.E. has discontinued Written Test for Accountancy Project Work Exam. as mentioned in curriculum of 2023-24.

Download these Sample Papers for Free:

(Not in CBSE pattern now).

Accountancy Class 12 Viva Questions

Solutions for the following sample papers have also been given below:

• Class 12 Accountancy Practical Sample Paper-1

• Class 12 Accountancy Practical Sample Paper-2

• Class 12 Accountancy Practical Sample Paper-3

• Class 12 Accountancy Practical Sample Paper-4

• Class 12 Accountancy Practical Sample Paper-5

• Class 12 Accountancy Practical Sample Paper-6

• Class 12 Accountancy Practical Sample Paper-7

• Class 12 Accountancy Practical Sample Paper-8

• Class 12 Accountancy Practical Sample Paper-9

• Class 12 Accountancy Practical Sample Paper-10

Questions for Class 12 Accountancy Practical

There will be no Written Test for Practical Exam. from March 2024 according to CBSE curriculum.

Accountancy Class 12 Viva Questions

The post Class 12 Accountancy Practical Sample Papers appeared first on Commerceatease - Website for 11th & 12th Commerce.

Following activities have been compiled separately. By clicking on the name of the activity, you will be taken to the article having activity/activities at its end.

1. Nature of Accounts
2. Partnership Deed
3. Fundamentals of Partnership
4. Goodwill
5. Sacrifice/Gain in ratio
6. Change in Profit Sharing Ratio
7. Profit Sharing Ratio on Admission
8. Admission of Partner
9. Retirement/Death of Partner
10. Retirement/Death of Partner MCQs
11. Death of Partner
12. Dissolution of Firm
13. Dissolution of Partnership Firm MCQs
14. Concepts of Share Capital
15. Terms relating to Issue of Share Capital
16. Relating to Share Capital
17. Relating to Allotment of Shares
18. Share Capital-Theory MCQs
19. Issue of Debentures
20. Issue of Debentures MCQs
21. Company’s Balance Sheet - 2 Activities
22. Accounting Synonyms
23. Comparative Statements MCQs
24. Cash Flow Statement
25. Cash Flow Statement MCQs

NOTE: All these above activities are scattered here and there. Only the above links will take you to the concerned activity. Activities added after these have been directly posted with the concerned topic, without inserting link here.

Self-Learning Activities in Accountancy Class 12

Find more such Learning Activities.

Self-Test Series and other activities

The post Self-Learning Activities in Accountancy Class 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

As prescribed by CBSE 25% of the Question Paper will be in the form of MCQs.

Multiple Choice Questions can take the following form:

• True/false type.
• Fill in the blanks with or without options.
• Complete the sentence.
• Correct the sentence.
• Identification of a concept/term etc.
• Correct the sequence of steps in a process.
• Pass Journal Entry.
• Calculate the amount of ..........
• Fill in the blanks
• Assertion and reasoning
• or any other form of question not included above.

Whatever may be the form, the student must give required working notes shown immediately after the answer.

MCQs should not be taken lightly. The subjects must be prepared properly.

The students can check the One Mark Questions in C.B.S.E. Sample question papers issued recently for March 2025 Exams.

For practice, students can solve the quizzes and interactive activities given here:

Learning Games and Activities in Accountancy – Class 11

Learning Games and Activities in Accountancy – Class 12

MCQs in Accountancy Classes 11 and 12

MCQs in Accountancy Class 12

Class 12 Accountancy MCQs Partnership Basic Concepts

Class 12 Accountancy MCQs Valuation of Goodwill

Class 12 Accountancy MCQs Reconstitution of Partnership Firm

Class 12 Accountancy MCQs Admission of Partner

Class 12 Accountancy MCQs Retirement of Partner

Class 12 Accountancy MCQs Death of Partner

Class 12 Accountancy MCQs Dissolution of Partnership Firm

Class 12 Accountancy MCQs Share Capital

Class 12 Accountancy MCQs Debentures

Class 12 Accountancy MCQs Financial Statements Analysis

Class 12 Accountancy MCQs Comparative Statements

Class 12 Accountancy MCQs Ratio Analysis

Class 12 Accountancy MCQs Cash Flow Statement

MCQs on Partnership Accounting Class 12

MCQs on Company Accounts Class 12

MCQs on Analysis of Financial Statements

7 Tips to Attempt MCQs

What are Competency Based Questions in Accountancy?

MCQs Based Commerce Quizzes

How to Solve Case Studies?

How to Solve Case Studies in Business Studies?

4 Super Tips to Solve Case Studies in Business Studies Class 12

MCQs to Revise Business Studies Class 12

The post MCQs in Accountancy Classes 11 and 12 appeared first on Commerceatease - Website for 11th & 12th Commerce.

50% -Competency Focused Questions in the form of MCQs/Case Based Questions, Source-based Integrated Questions or any other type
20% - Select response type questions (MCQ)
30% - Constructed response questions (Short Answer/Long Answer Type Questions, as per existing pattern)

Blueprint of Accountancy Paper Class 12

This blueprint has been made on the basis of Sample Paper issued by CBSE on 5th September' 2024, for March 2025 Exam. vide 102_Notification_2024.pdf (cbseacademic.nic.in)

This sample paper contains 34 Questions:

• Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
• Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
• Questions Nos. from 21, 22 and 33 carries 4 marks each
• Questions Nos. from 23 to 26 and 34 carries 6 marks each
• Question No. 1 to 26 are from Partnership Accounting and Company Accounts
• Question No. 27 to 34 are from Analysis of Financial Statements.
• An internal choice has been provided in 7 questions of one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

Simple Break up showing Question wise Marks:

(16 Q) + (4 Q) i.e. 20 Questions of 1 Marks each= 20 Marks

(4 Q) + (2 Q) i.e. 6 Questions of 3 Marks each = 18 Marks

(2 Q) + (1 Q) i.e. 3 Questions 0f 4 Marks each = 12 Marks

(4 Q) + (1 Q) i.e. 5 Questions of 6 Marks each = 30 Marks

26 Questions of 60 Marks from Part A

8 Questions of 20 Marks from Part B

Grand Total       = 80 M

So, there are 46 Questions (Including 12 questions for choice) carrying 100 Marks (including 20 Marks choice)

Chapter wise Marks Distribution in the CBSE Sample Paper'2024-25

Blueprint of Accountancy Paper Class 12

It may be noted that second option of Q.No.18 is from Admission of partner but cannot be done without knowledge of Valuation of Goodwill. 

It is very important here to note that Board expects students to read and understand the books thoroughly, specially NCERT books. Most of the students think that all these will be MCQs with given options from which answer will be easily found but it is not like that.

MCQ type Questions can further be based on:

• True/false type.
• Fill in the blanks with options.
• Complete the sentence.
• Correct the sentence.
• Identification of a concept/term/process etc.
• Correct the sequence of steps in a process.
• Match the columns etc.
• Case study questions
• Source Based questions
• Assertion Reasoning questions

For Accountancy, students should not think that there will be theory questions only rather there can be detailed and numerical type questions for which solution must be shown in the form of working note, only then writing the answer to that particular question.

 Actual pattern can be seen only in Sample Question Papers issued by C.B.S.E.

10 Strategies to Learn Accountancy

Blueprint of Business Studies Paper, 2024-25

Check for important links for Accountancy Exam. on the following page:

Topper’s Checklist to Excel in Board Exams. 

The post Blueprint of Accountancy Paper Class 12, 2024-25 appeared first on Commerceatease - Website for 11th & 12th Commerce.