What are Competency Based Questions in Accountancy?
Meaning of Competency based questions
Competency-based questions are designed to assess specific skills, abilities, and behaviors that are key to success in a given job or role.
So, instead of focusing on what you would do in a hypothetical situation, there’s a question asking you to explain how you would respond in a given situation. Your skills required in real life would be judged like: leadership, teamwork, problem-solving, communication etc.
You can expect Competency-based questions in Accountancy focusing on the following:
- Analytical Skills
- Attention to Detail
- Ethical Judgment
- Communication Skills
- Simplification of financial data.
- Problem-Solving
- Resolving a financial issue successfully
Let’s see what type of questions you can have and the level of your preparation required as by circular, https://cbseacademic.nic.in/web_material/Circulars/2024/30_Circular_2024.pdf
issued by the CBSE, 50% questions in the Question Paper will be Competency Focused Questions in the form of MCQs/ Case Based Questions, Source-based Integrated Questions or any other type.
Instead of superficial knowledge of the terms, accounts and statements, Indepth knowledge of the concepts, rules and principles of Accountancy will be assessed.
So, it is not enough to just cram the items of Profit and Loss Appropriation Account, Revaluation Account, Comparative Statements or Cash Flow Statement only, to even pass the exam.
Thorough knowledge with your focus and attention coupled with practice and analytical skills is required to get through the Board Exam. With good score. Only ‘Last month’ study will not do any good for you.
Board has already uploaded its Sample Papers about six months in advance.
You can access these Sample Papers with their Marking Schemes easily.
Case-based questions have also been given to you for proper guidance.
Just a few questions are given here for your concern to have an idea, how these Competency Based Questions can be asked:
Question 1
Pritam, Manager of the firm drawing a remuneration of ₹30,000 per annum was admitted as partner w.e.f. 1st April 2024. However, he’ll keep on performing his duties as manager also. The remuneration should be debited to:
a) Profit & Loss Appropriation Account
b) Profit & Loss Account
c) Jetha's Capital Account
d) Jetha's Current Account
Answer
a) Profit & Loss Appropriation Account
Question 2
Indu and Bindu were partners in a firm sharing profits equally. Bindu retired and the amount due to her was determined as ₹80,000. After determining the amount payable to Bindu, it was noticed that Advertisement Suspense A/c ₹10,000 existing in the Balance Sheet was not considered. Will it be fine if Bindu is paid ₹70,000 now, after adjusting the Advertisement Suspense A/c?
Answer
No, Bindu should be paid ₹75,000 (₹80,000 - ₹5,000). Indu will also have to share the accumulated loss, in their Old Profit-Sharing Ratio.
Question 3
Manish, Rakesh and Rajesh are partners in a firm. Manish, has an adult son Danish who has recently graduated from a reputed college. He wants to admit Danish with capital ₹4,00,000 for an equal share in future profits and losses. Rakesh agrees but Rajesh has an objection to the conditions. Manish is adamant on admitting Danish as there is majority favouring this admission. You are required to resolve this issue.
Answer
If Rajesh does not agree, Danish cannot be admitted as the consent of all partners is required for new partner’s admission.
Important Legal Provisions In Accountancy Class 12
Question 4
On admission of Reena as a partner, capital of Meena and Teena after all adjustments were ₹4,00,000 and ₹3,00,000 respectively. Their capitals before admission of Reena were ₹4,50,000 and ₹2,80,000. Surplus in Capital Accounts was adjusted through her Current Account by passing a journal entry. Journal entry passed will be:
a) Meena's Capital A/c ₹50,000; Cr. Teena's Current A/c ₹50,000
b) Teena's Capital A/c ₹80,000; Cr. Teena's Current A/c₹ 80,000
c) Meena's Capital A/c ₹50,000; Cr. Meena's Current A/c ₹50,000
d) Teena's Current A/c ₹80,000; Cr. Teena's Capital A/c ₹80,000
Answer
c) Dr. Meena's Capital A/c ₹50,000; Cr. Meena's Current A/c ₹50,000
Question 5
Assertion (A): Unrecorded outstanding repair bill at time of death of partner is recorded on debit side of Revaluation a/c.
Reason (R): Increase in capital of partner is recorded on credit side of Capital account.
a) Assertion is correct, reason is incorrect.
b) Assertion is incorrect, reason is correct
c) Both Assertion and reason are correct and reason is correct explanation of Assertion.
d) Assertion and reason both are correct but reason is not the correct explanation of Assertion.
Answer
d) Assertion and reason both are correct but reason is not the correct explanation of Assertion.
Question 6
A Company’s liquid assets are ₹4,00,000 and its current liabilities are ₹2,00,000. Thereafter, it paid ₹1,00,000 to its trade payables. Quick ratio will be:
a) 33:1
b) 5:1
c) 67:1
d) 3:1
Answer
d) 3:1
Question 7
PKB Ltd. issued 20,000, 9% Debentures of ₹100 each at certain rate of premium to be redeemed at 10% premium. Loss on Issue of Debentures was written off from Statement of Profit & Loss debiting it by ₹80,000. Premium at which debentures were issued is:
a) 5%.
b) 6%
c) 8%
d) 10%
Answer
b) 6%
Question 8
Name Extra-ordinary Item each for (a) Operating Activity; (b) Investing Activity; and (c) Financing Activity.
Answer:
Operating Activity:
Preliminary Expenses/Voluntary Retirement Benefit Paid/Insurance Claim for Goods lost in fire.
Investing Activity:
Subsidy for Purchase of Machinery, Insurance Claim for loss of Fixed Asset in earthquake.
Financing Activity:
Buy back of Own Shares and Securities.